Billing rates for consultants

Some agencies bill diferent level employees at different corresponding rates providing control and efficiency, others agrigate the rate to one hourly billing rate and use the constant to average out highs and lows, creating internal simplicity.


Traditionally it is big consultant’s using the multiple rate model. It is presented as value to the client, transparent, and for the consultant internally used to supposedly better track project budgets and calculate expected profit.

Both are wrong in practice, and cause extra work for the project managers.

When the senior designer / manager charges 1 extra hour, 2 or more junior designer hours must be deducted from the budget by the project manager. Extra work and not delivering real or perceived value to the client.

Big consultant’s usually have lost real understanding of their client’s concept of outsourced work, regularly go overbudget and scramble for extra money, change orders, etc.

Historical studies (Project Management Institute) show that fixed rate - aggregate rate, fixed fee projects are more consistently delivered on time and on budget; multiple rate time and materials contracts almost never are.