Billing

[knoppdude]

Hello, I just did an hourly rate job for an asphalt plant, at a very reasonable labor rate. What I would like to know is to figure the hours to bill. Do I start from when I get the phone call, or when I leave to the sight? Also, do I charge to return from the job site. I think it can be one direction only, but my wife thinks it is both. This is a potential good customer, and I would like to establish a good working relation with them, but one that is fair to both of us. What do you guys think is the best way to do this. I have to be up front with them about it once I have established my method. This will only apply to service and repair call outs, not bid work. What do you guys think?

 

[dwellselectric]

I usually charge starting on my way to the job and end when I leave the job.

 

[chris1971]

I usually have the first hour at a higher rate with a one hour minimum.

 

[satcom]

Our on call service is from the time you leave, until you return, that is only if the job is under the four hour min charge.

 

[sparky=t]

one way travel + parts runs, if applicable, or if you have a parts runner or delivery just a mark up, treat them fair they will remember!

 

[notoriousdln]

we bill the first hour at 1.5 hours to account for travel. so theyre getting the hours worth of work with .5 accounting for travel.

 

[macmikeman]

"we bill the first hour at 1.5 hours to account for travel. so theyre getting the hours worth of work with .5 accounting for travel."

Great way to loose money. What do you then do when the job takes 1.25 hrs to travel to? (and 1.25 hrs to travel back from).:roll:

 

[Cow]

Our on call service is from the time you leave, until you return

This.........

 

[ksmith846]

I include my trip fees into the first hour and have a one hour minimum
($160). Then it's per quarter hour after that @ $23.75. And 40% markup on materials.

 

[satcom]

This.........

There is a difference with ON CALL and SERVICE CALLS on call is with our industrial and commercial accounts, this, may need someone on call, service calls are scheduled, so the cost will differ.

 

[Cow]

There is a difference with ON CALL and SERVICE CALLS on call is with our industrial and commercial accounts, this, may need someone on call, service calls are scheduled, so the cost will differ.

There's no difference in our shop, other than the OT for after hours. It's still portal-portal.

 

[TxShocker]

We bill from the time you leave to go to the site and keep the meter running until we get back.

 

[Sparky555]

Port - Port

 

[gadfly56]

Hello, I just did an hourly rate job for an asphalt plant, at a very reasonable labor rate. What I would like to know is to figure the hours to bill. Do I start from when I get the phone call, or when I leave to the sight? Also, do I charge to return from the job site. I think it can be one direction only, but my wife thinks it is both. This is a potential good customer, and I would like to establish a good working relation with them, but one that is fair to both of us. What do you guys think is the best way to do this. I have to be up front with them about it once I have established my method. This will only apply to service and repair call outs, not bid work. What do you guys think?

I'm a little concerned that you didn't hash this out with the customer before starting the work. Did someone sign a work ticket for you? Did the ticket include a provision for travel time? Or was the ticket for time-on-site only? He may reasonably expect that he'll be billed from when you crossed the gate on the way in and the way out unless you made it clear otherwise. Or, make it a line item where you can haggle the issue. Also consider discussing this with the customer before you actually send him the bill. Suggest that you bill portal-to-portal and see what he says. Be flexible. Consider eating the travel time on the first job.

In the future, it really doesn't matter what method you use, as long as you cover your expenses and the customer knows what's coming. My company uses zones. At a certain distance from the shop, travel time is considered zero. Then we have 1/2, 1, and 1-1/2 hour zones. Beyond that, it's actual travel time, one way. Not saying it's the best way, just our way. On e-calls however, it's portal-to-portal. Go figure.

 

[dejeud]

"we bill the first hour at 1.5 hours to account for travel. so theyre getting the hours worth of work with .5 accounting for travel."

Great way to loose money. What do you then do when the job takes 1.25 hrs to travel to? (and 1.25 hrs to travel back from).:roll:

And what do you do when the traveling is only 10 minutes between jobs.
If, on average, you have more than 1/2hr traveling you're doing something wrong with you schedule.

 

[petersonra]

We have a four hour minimum charge.

Any time associated wth the call gets billed. Includes time spent in the office getting prepared, travel time both ways, time on site, and time spent doing reports when back in office. Mileage, tolls, meals, and any other misc expenses are also billed.

 

[mtfallsmikey]

We have a four hour minimum charge.

Any time associated wth the call gets billed. Includes time spent in the office getting prepared, travel time both ways, time on site, and time spent doing reports when back in office. Mileage, tolls, meals, and any other misc expenses are also billed.

That's the way of it for most any commercial contractor, electrical or otherwise.....I charged portal to portal.