Hourly billing
Also called: at an hourly rate or subsequent costing
When working on the basis of 'hourly billing', a client does not receive a quotation with a quote in advance, but the actual time spent is charged to the client. The number of hours spent is multiplied by the hourly rate agreed upon.
This is often applied to relatively small projects, assignments where it is difficult to determine the number of hours in advance, and for additional work on top of a quote already issued.
Working at an hourly rate is an interesting basis for the provision of services, especially with the performing party. After all, all hours spent can be declared to the client.
However, it can also be a pleasant way of working for the client. There is a direct relationship between work and the consideration, which means that the assignment does not have to be laid down in detail in a quotation. For example, it is easy to steer on advancing insight in the interim.