SECTIONSCalculating a Role Request's Bill or Cost Amount When Using Dated Resource Rates
When a "Time and Materials" role request is linked to a rate card that has dated resource bill or cost rates, a series of rates can apply across the role request's duration. All the rates that apply are taken into account when calculating the role request's bill or cost amount. The role request's schedule defines its start and end dates, scheduled hours, and any schedule exceptions. The bill or cost amount is calculated by working out the proportion of scheduled hours to be charged at each applicable rate. This is illustrated in the examples below. The examples show the calculation of a role request's cost amount, but bill amount is calculated in exactly the same way.
Once the bill or cost amount is calculated, it is recalculated if any of the following fields on the role request change: Start Date, End Date, Hours, Bill Rate Card, Cost Rate Card.
Differences for "Fixed Price" Role Requests
"Fixed Price" role requests can use dated resource cost rates but not dated resource bill rates.
When a "Fixed Price" role request is using dated resource cost rates:
- Its cost amount is calculated as described on this page. Any cost rate associated with a suggested resource is ignored.
- Its bill amount is calculated as the cost amount uplifted by a fixed price margin. The formula used is: Cost Amount / (1 - margin). The fixed price margin is derived from the estimate line set or estimate product as explained in Estimate Role Requests Overview.
Example Where the Schedule Has No Exceptions
A role request's schedule starts on February 1, 2025 and ends on February 28, 2025. Five hours are scheduled daily Monday - Thursday, and no hours are scheduled Friday - Sunday. This means that the total hours for a week is 20. The total hours for the whole schedule is therefore 80. The value in the Scheduled Hours field is 80.
The role request is using a cost rate card with dated resource rates. Initially the rate is 200 per hour, but on February 10, 2025 it increases to 220 per hour.
| Dates | Hours per Week | Rate | Hours per Rate | Number of Hours as a Proportion of the Scheduled Hours | Cost Amount for each Rate |
|---|---|---|---|---|---|
| February 3 - 7, 2025 | 20 | 200 | 20 | 20 / 80 * 80 = 20 | 20 * 200 = 4,000 |
| February 10 - 14, 2025 | 20 | 220 | 60 | 60 / 80 * 80 = 60 | 60 * 220 = 13,200 |
| February 17 - 21, 2025 | 20 | ||||
| February 24 - 28, 2025 | 20 | ||||
| Total | 80 | 80 | 80 | 17,200 |
If we apply the formula to the table for Example 1:
- When the rate is 200, the cost amount is: (20/80) * 80 * 200 = 4,000
- When the rate is 220, the cost amount is: (60/80) * 80 * 220 = 13,200
The role request's total cost amount is therefore: 4,000 + 13,200 = 17,200
For a "Time and Materials" role request, the bill amount is calculated in the same way.
For a "Fixed Price" role request, the bill amount is calculated as the cost amount uplifted by a fixed price margin. For example, if the fixed price margin is 40%, the bill amount in this case will be: 17,200 / (1 - 0.4) = 28,666.67
Example Where the Schedule Has an Exception
A role request's schedule starts on February 1, 2025 and ends on February 28, 2025. Eight hours are scheduled daily Monday - Thursday, and no hours are scheduled Friday - Sunday. This means that the total hours for a week is 32. However, there is a schedule exception for February 17, 2025 - February 21, 2025 so no hours are scheduled that week. The total hours for the whole schedule is therefore 96. The value in the Scheduled Hours field is 96.
The role request is using a cost rate card with dated resource rates. Initially the rate is 100 per hour, but on February 10, 2025 it increases to 105 per hour.
| Dates | Hours per Week | Rate | Hours per Rate | Number of Hours as a Proportion of the Scheduled Hours | Cost Amount for each Rate |
|---|---|---|---|---|---|
| February 3 - 7, 2025 | 32 | 100 | 32 | 32 / 96 * 96 = 32 | 32 * 100 = 3,200 |
| February 10 - 14, 2025 | 32 | 105 | 64 | 64 / 96 * 96 = 64 | 64 * 105 = 6,720 |
| February 17 - 21, 2025 | 0 | ||||
| February 24 - 28, 2025 | 32 | ||||
| Total | 96 | 96 | 96 | 9,920 |
If we apply the formula to the table for Example 2:
- When the rate is 100, the cost amount is: (32/96) * 96 * 100 = 3,200
- When the rate is 105, the cost amount is: (64/96) * 96 * 105 = 6,720
The role request's total cost amount is therefore: 3,200 + 6,720 = 9,920
For a "Time and Materials" role request, the bill amount is calculated in the same way.
For a "Fixed Price" role request, the bill amount is calculated as the cost amount uplifted by a fixed price margin. For example, if the fixed price margin is 40%, the bill amount in this case will be: 9,920 / (1 - 0.4) = 16,533.33