Starting today, there will be three types of projects in Paymo (by billing type):
- Time & Materials – these are generally used for service contracts or any other type of work in which the client agrees to pay the contractor based upon the time spent to perform the work, and for materials/expenses incurred during the project.
- Flat rate – used when the client agrees to pay the contractor a lump sum for the fulfillment of the project (no matter how much time is spent in order to deliver the project).
- Non-billable – for projects that you’re not going to bill (eg. internal projects)
When creating/editing a time & materials project, you can choose the rate that has priority. If the hourly rate for the selected option is not set, the system will use the next rate that has been set in this specific order: user rate, task rate, project rate, company rate.
A time & materials project can have three types of tasks (by billing type): time-based tasks, flat rate tasks, and non-billable tasks. The time-based tasks are based on time spent to perform the work, the flat rate tasks have a fixed price associated with them and non-billable tasks for activities that won’t be invoiced.
Accurate price estimates for your clients
You can set up task hourly rates, estimated hours and flat task rates by switching to the table view (click on the “Table view” icon in the top right corner of the tasks section for the project). Once they are set Paymo will calculate price estimates for each task and a total for the project (shown at the bottom of the screen).
In future updates for project billing, we’ll be adding a feature that will allow you to convert the price estimate calculation into a shareable Paymo Estimate.
You can find out more about these features in our knowledge base.