Use Rate Factors to adjust hourly billing calculations for individual project tasks. Apply a multiplier to existing project billing rates, or use a $1/hour project-rate setup to assign specific hourly amounts by task. This guide explains both methods, preparing an editable budget, and saving and contracting your changes before entering time.

Step-by-Step Guide

1. Open the project budget.

   Go to Mega Menu → Clients and Projects → Projects, select the project, and open Budget.

   Before configuring Rate Factors:

   • Add the project staff and labor tasks you need. For help, see Creating Project Budgets.
   • If you need to add tasks to an already contracted project, create a budget modification first. See Modifying a Budget.
   • If your changes require reopening an existing contracted budget, review the eligibility rules in Contracting/Uncontracting a Budget.

2. Choose how you want to calculate task rates.

   Use the following table to choose the setup that matches your project.

   Method	Use it when	Project billing rate	Task Rate Factor
   A. Adjust existing rates	Employees keep their existing project rates, with a discount or premium for particular tasks.	Each employee’s project billing rate	A multiplier such as 0.80 or 1.50
   B. Assign hourly amounts by task	The task determines the hourly amount charged for staff using this setup.	$1/hour for the applicable project staff	The intended hourly amount, such as 90 or 125

   Both setups use the same calculation:

   Calculated labor amount = Hours × Project billing rate × Task Rate Factor

   The examples below show hourly labor calculations. For help choosing T&M or Lump Sum billing for tasks and expenses, see Combined Billing Types.

3. Configure the method you selected.
   

   Method A: Adjust existing project rates with a multiplier

   1. Review the employees’ billing rates in the project’s Staff & Rates tab.
   2. Open the editable Budget tab and locate the Rate Factor column for the labor tasks.
   3. Enter the multiplier for each task that needs an adjustment.

   4. Save your changes.

      Rate Factor	Effect on the project billing rate
      1.00	Uses the project billing rate without adjustment
      0.80	Applies a 20% discount
      1.50	Applies a 50% premium

      Example: An employee’s project billing rate is $125/hour. They record 4 hours against a task with a 0.75 Rate Factor.

      4 × $125 × 0.75 = $375

      The calculated hourly rate for that task is $93.75.

   Method B: Assign an hourly amount to each task

   1. Open the project’s Staff & Rates tab.

   2. In the New rate field, enter $1/hour for each employee who will use this setup, then save the staff/rate changes.

      These values are the employees’ project billing rates. Their standard billing rates in their employee profiles are managed separately.

   3. Return to the editable Budget tab.
   4. Enter the intended hourly amount in each applicable task’s Rate Factor field. For example, use 90 for a $90/hour task or 125 for a $125/hour task.

   5. Review every task that will use the $1/hour project rates, then save your changes.

      Important: With a $1/hour project billing rate, a task left at the default 1.00 Rate Factor calculates $1/hour. Assign the intended factor to each applicable task.

      Task example	Calculation	Calculated labor amount
      Field Survey	8 hours × $1 × 90	$720
      Construction Staking	6 hours × $1 × 125	$750

4. Review, save, and contract the budget.
   

   Review the project billing rates, task Rate Factors, and calculated budget amounts.

   Save your changes using the Save button in the budget or the Save icon in the upper-right corner. When the budget or modification is ready, select Contract Budget.

   For an existing project, review the intended effective dates of the budget and any staff/rate changes before contracting, especially when time has already been recorded.

5. Enter time against the configured tasks.
   

   Open Timesheets, select the project and task, and enter the hours worked.

   SQUAVA uses the applicable project billing rate and task Rate Factor to calculate the hourly labor amount. Check the calculation against the method you selected, then follow your normal time submission and approval process.

SUCCESS!!!

You have configured Rate Factors for your project tasks. The project billing rate and the task’s Rate Factor now work together to calculate hourly labor amounts.

Related articles:

• Creating Project Budgets
• Combined Billing Types
• Modifying a Budget
• Contracting/Uncontracting a Budget