|
Project Plan - Identify all project tasks
For example:
1. Do I charge for every email, every meeting, every conference call...?
2. Every phone call?
3. Where do you draw the line?
In other words, do you charge for activities not related to the actual writing?
Examples of such areas include scheduling, requirements gathering, meetings, email
queries, phone calls, phone calls, and more phone calls. Billing Clients - What Can You Bill For?
What to do when a client demands time on issues not directly related to the project?
How do you say, "I don't think another meeting is necessary?"
Are Administration Tasks Billable?
Well, Yes and No.
When you first start with a client, you need to build up some rapport and develop
trust. This takes time and doesn't happen overnight.
At some point in your relationship,
you need to brief your client on how you operate.
For example, if the project is for a fixed fee, then you need to schedule your time (and
the clients) so that you come in on time... and generate some income. If you go
over-schedule, you both lose.
For long-term projects, you need to discuss with your client how work with items such
as reports and meetings.
Obviously, you need to keep your client onside, but at some point you need explain that
these take time, and time is money etc.
Once you've both discussed this --- and are in agreement --- then if the client
requests another meeting/report, remind them in a nice way that this will be invoiced (or
factored into the final invoice).
Note: Unethical though it may be, it is not unusual for companies to
side step this thorny issue by increasing charges for the documentation and burying the
admin costs inside.
We've all encountered clients who genuinely believe that non-documentation tasks should
not billable, i.e. that you should take the hit for visiting their offices, creating
reports, giving free advice and so forth.
During a project,
keep everything transparent by sending them a line-item invoice for the time you have
spent to date. This will build trust and establish your credibility.
What to do when Clients Phone Phone Phone
We can all get frustrated when clients call up every day wanting to know how the
document is going. Calls, emails, more calls. But, if you understand why they do this, and
how to manage it, it gets easier.
Some clients are simply interested in the process of how documentation is produced.
Others will try to micro-manage *you* as they are unsure of your abilities, especially
during your first project.
Or it could be something very different that you are unaware of.
One approach to remedy this is to
send a Project Progress Report (aka Status
Reports) at the end of each week. Any question they have can be checked against
the report. Of course, if you don’t have a schedule or send status reports, you are
inviting all of this on yourself.
When they call, explain that you are progressing according to the schedule and
everything is on track (assuming that it is!).
There won’t be too many queries then, unless they want to change the project
specs, which is a change control issue.
Gentle Reminders
If the client persists with queries, ask them very politely which is more critical:
another meeting or completing the work on time.
Suggest (i.e. hint) that another set of meetings could put the project over-budget.
Most managers will want to avoid this happening.
Your Time Versus Client's Time
If you’re still confused when to bill for admin work, consider the following:
- Writing the project schedule is part of the project – it's for the client.
- Preparing a status report is billable if the client requested it.
- All meetings are billable, providing that your client has agreed to this.
Note: Never bill for the initial consultation meeting
Lastly, make sure that you have covered all this in your proposal, and that they have
agreed to it. If not, you need to consider if this is a risk worth taking.
Action Plan Template
What do you think about billing clients? Can you think of any other areas that need to
be covered?
Drop me a line at ivan
at klariti dot com |
