What is Project-Based Billing?
Project-Based Billing is a pricing model where clients are charged a fixed or scoped fee for a specific project, rather than on an hourly or retainer basis. Payment is typically tied to milestones, deliverables, or project completion.
Table of Contents
Full Definition
This model provides clarity on costs for clients and aligns payments with tangible outcomes.
It reduces billing disputes and incentivizes agencies to deliver efficiently.
Project scope and timeline must be well-defined to avoid budget overruns.
Examples
Clear client expectations
Aligned payments to deliverables
Encourages efficient execution
Benefits
Risk of scope creep
Requires detailed planning
Less flexible for changes
Common Mistakes
Include change management clauses and milestones in contracts.
Conclusion
Include change management clauses and milestones in contracts.