Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 6 · Rate Schedules and Pricing
Cost rates and bill rates
Lesson 57 of 198 · 2 min
Two different numbers for the same hour. The cost rate is what that hour costs the business. The bill rate is what the client pays for it. The difference is gross margin — which is the number the business runs on. Cost rates price expenditure items for costing and the project P&L. Bill rates price them for invoicing and revenue. A schedule can carry cost rates, bill rates, or both. That is a design decision — and clients often want them separate for confidentiality. The people who maintain bill rates and the people who maintain cost rates are frequently different, and one should not see the other's numbers. COST RATES REVEAL SALARIES. BILL RATES REVEAL COMMERCIAL TERMS. TOGETHER THEY REVEAL MARGIN. All three of those are sensitive, and the third is the one people forget — you can restrict each list and still hand somebody the margin by giving them…
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue, with a certificate on completion and a fourteen-day refund window.