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I see by the comments that a lot of intelligent people do not understand billing ethics.

There are many layers of relationship, and your relationship will truly define the nuances of your billing process.

However regarding your question, there are a few considerations which determine when you are being “flexible” and when billing becomes corrupt (if you are not objectively providing value you are stealing.)

Are you in the office? On call? Devoting exclusive attention? Or otherwise billing for full days (with hours as increments?) If you’re in the office or real time “available” then it’s a billable hour even if you check HN or eat at your desk or wander around wondering what everyone else is up to (some call it insight.)

If you’re really billing hourly and your not working, you shouldn’t bill for those hours you are not working (like playing hooky.)

Fifteen minute increments are the floor for technical work (more common once you’re over $100/hr)

It’s okay to round up (or down) one total hour if you do not want to split hairs on an invoice (sic. 45 minutes of hand holding.) put a foot note on the invoice (total hours round up) if you want to be transparent.

You should be billing for all one off tasks. Talking about the project. Doodling about the project in your notes. Fastidiously rolling up and double checking your work/time spent. Email. Chat. Learning something new that evaluates into what you are doing can often be included (if not abused.)

I usually budget in 25% of project hours for one off tasks.

If you have a full time relationship (40 actual hours), you should fill the time with something, even if doodling in your journal about observations.

Hourly is a great way to build if your a “lone ranger” contractor.

Usually I like to only bill 15 hours a week! True liberation.

You shouldn’t lower your rate (unless you must.) Work fewer hours! That’s the real dream. Independent and gainful.



Here's a thought exercise I would like to put to test sometime. Let's say I would like to make USD 200 000 a year as a contracted sotware engineer. And I would like to try billing 10 hours a week. Take 6 weeks off a year, so this is 46 weeks. And that's 460 hours I will try to bill. To make 200 000, I must bill USD 435 per that hour.

The deal would be: I bill you for 10 hours, and you can be sure I worked hard for those 10 hours. I probably worked 40 hours, but I bill you 10. But that's the going rate.




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