Setting up project pricing

Not all projects are structured the same so we have three different options available for establishing your project budget.

Projectworks offers 3 ways to build a project:

• Budget level – Fee-based pricing
• Timecode level – Fee-based pricing
• Timecode level – Hourly-based pricing (hours x rate)

Lets' clarify one thing before we look at the pricing options

Before we get started, it is important to understand the difference between the budget amount and the expected amount. You will see both of these terms when creating your project.

What will the budget for the project be

Regardless of which pricing method is used, the budget amount is what determines the overall budget for the project. In most cases this is the figure your customer would refer to as the project budget, the amount they will be charged for the work.

Expected Hours and Amount

Regardless of which pricing method is used, you are able to add expected hours to people at a timecode level. You may want to refer to this as the amount of effort you are anticipating from a person to perform that activity. I don't want to say it is the budget for that individual, but it sort of is.

There doesn't have to be a direct correlation between the budget amount and the expected hours amount. There are many instances where these will be different.

Budget-level – Fee-based pricing

In this mode, you can still create as many timecodes as you like, and choose to allocate timecode hours to people at a given rate. Note that these won't 'bubble up' - your project budget will always be based on the fee's set at each budget line.

• This is the simplest mode for creating your project budget
• Build your project budgets by setting a fixed fee amount for each budget line

Timecode level – Fee-based pricing

In this mode, you can still allocate timecode hours to people at a given rate. Note that these won't 'bubble up' - your project budget will always be based on the fee's set at each budget line.

• Set the budget amount for each timecode
• Timecodes within each budget line are added together, setting the budget amount

Timecode level – Hourly-based pricing (hours x rate)

In this mode everything is 'bottom-up', with the budgets being driven by the hours and rates used for setting the budget. Any change you make to the hours or rates will impact the budget for the timecode, budget line and of course the overall project.

Ability to allocate hours against certain roles within timecodes using standard or customized billable rates.

• Within each timecode, pricing is calculated based on the number of hours budgeted for each role multiplied by the billable rate.