Fee Methods

A project's fee method determines how Deltek extends fee charges and formats these charges on invoices for the project.

Specify a fee method on the Fees tab of the Billing Terms form.

Part of choosing the appropriate fee method for a project is deciding whether you want to mark up fees explicitly using the Add-on feature.

Fee Methods

Method	Summary
No Fee Billing	Do not bill fees for the project. Companies typically choose this option when billing time and materials.
Overall Percent Complete	Bill fees for the project based on the completed portion of the total project. Use this method to bill a single fee based on a percentage of the total project’s fee. Use this method to bill an agreed-upon percentage of a lump sum or fixed price contract. The contract fee is based on the fee basis you choose.
Percent complete by Phase, as Percent of Fee	Bill fees for the project based on the percent complete of each billing phase. You must manually update the percent complete of each billing phase. Each phase fee is determined as a percentage of the total fee. Each billing phase must be defined in the project’s billing terms. You can have an unlimited number of billing phases.
Percent Complete by Phase, as Fixed Amount	Bill fees for the project based on the percent complete of each billing phase. For this method, you must enter the fee amount for each phase.
Cumulative Unit or Fee	Bill fees for the project based on a portion of the contract fee and fee basis you choose. This method tracks previous fee billings. In other words, each month you determine the dollar amount to be billed, by adding the current billing amount to the previous billed amounts. Use the cumulative unit or fee method to bill a portion of the contract fee. The contract fee is based on the fee basis you choose. For this method, you would most likely use the Unit based fee basis. For example, you update the total number of units that are complete times the unit price. Deltek computes the current fee billing as the total earned minus any previous fee billings. Therefore, for each billing period, you enter the fee as the previous amount billed plus the current earned.
Current Unit or Fee	This method bills fees for the project based on a specific fee and the fee basis you choose. This method does not track previous fee billings. In other words, each month you determine the current fee. Deltek does not take into account any prior billings. Use the current unit or fee method of calculating fees to bill a specific fee. The contract fee is based on the fee basis you choose. The current amount due for this method is based on the information you enter when you process invoices, such as lump sum, units to bill, or a percentage of the estimated construction cost.