Explore Detailed Billing Options and Customer Portal Functions to Enhance Your Experience with BS LLC
At BS LLC, our projects are framed in one of the following financial frameworks: Advance Payment (Retainer), Stipulated Sum (Milestone), and Time-Based Billing (Hourly). .
1. Definitions
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Do Not Exceed (DNE) Limit: A cap on hourly engagements, ensuring you won’t be billed beyond an agreed amount without approval.
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Retainer: A monthly agreement for a set block of hours at a fixed rate, providing flexibility for ongoing support.
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Milestone-Based Billing: Payments are tied to specific project phases, and they are due only after each milestone is completed and approved.
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Change Request: Any extra work beyond the original project scope, billed at the applicable hourly rates.
2. Time-Based Billing (Hourly)
Our standard rate for blended services for hourly engagements is $250 per hour. Different roles have specific rates:
- Partners: $500 per hour
- Strategy: $300 per hour
- Design: $175 per hour
- Project Management: $125 per hour
- Intern: $75 per hour
When to Use Hourly Billing: This option is ideal if your project scope is undefined or if flexibility is important. To ensure cost control, you can also set a Do Not Exceed (DNE) limit.
Example Scenario:
You hire us for consulting services with a DNE limit of $5,000 (20 hours). We track hours and let you know before we reach that limit, so there is no surprise costs.
3. Stipulated Sum (Milestone-Based Billing)
Milestone-Based Billing is designed for projects with clearly defined phases. This billing structure ties payments to specific project deliverables, ensuring you only pay after key project milestones are completed and approved.
Typically, milestone projects require:
- 25% downpayment upfront to initiate the project.
- The remaining balance is split into equal monthly payments over the project, typically over three to four months, depending on the size and scope.
Example Scenario:
For a website build with an estimated total cost of $30,000:
- Total Project Cost: $30,000
- Downpayment (25%): $7,500
- Remaining Balance: $22,500, divided into even monthly payments based on project duration.
Project Duration: If the project is expected to take 6 months, the remaining $22,500 would be divided into six equal monthly payments of $3,750 each.
The downpayment ensures that resources are secured and allocated to your project, while the equal monthly payments spread out the cost over time, providing predictability and transparency.
4. Advance Payment (Retainer)
For ongoing support, retainers offer predictable pricing and flexibility. You pre-purchase a block of hours each month, which gives you priority access to our services. If you don’t use all your hours in one month, up to 50% can roll over to the next month.
Example:
- Monthly Retainer: 20 hours at $5,000/month
- Unused Hours in Month 1: 10 hours roll over to Month 2.
- Total Hours Available in Month 2: 30 hours (20 monthly + 10 rollover).
- If 35 hours are worked in Month 2, 5 additional hours are billed as overages at $250/hour.
Account Reconciliation: At the end of every second month or contract term, any overages will be billed to make the account whole. This ensures transparency, and we’ll notify you if more hours are needed so you can approve before proceeding.
When to Use Retainers: Retainers are perfect for ongoing services like marketing, consulting, or technical support. You get predictable billing and priority access to our team.
Retainer Benefits:
- Flexibility: Up to 50% of unused hours can roll over.
- Predictability: Fixed monthly rate.
- Priority Access: Retainer clients receive priority scheduling.
5. Change Request Pricing
If your project needs to change scope after starting, we handle this through formal Change Requests. These changes are quoted at the applicable hourly rate for the required role, and you will need to approve the quote before we begin extra work.
Example:
You request additional features for your website beyond the original scope. Based on the extra work required, we'll send you a new quote and, once approved, proceed with the changes.
--> Click here to Learn More about Change Requests
6. Payment Terms & Methods
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Invoice Schedule: Retainer invoices are issued at the start of each month. Payment is due within 15 days of the invoice date (Net 15).
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Late Fees: A 5% late fee will be added after a 5-day grace period.
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Payment Methods: We accept checks, wire transfers, and credit cards (credit card payments are subject to a 3% processing fee).
7. Rollover & Overage Billing Policies
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Rollover Hours: Up to 50% of unused hours from a monthly retainer can roll over to the next month. However, these hours must be used within the next month, or they will expire.
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Overages: Any hours exceeding the monthly retainer and rollover will be billed at the standard hourly rate.
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End-of-Month Account Reconciliation: We'll reconcile your account at the end of each second month or the end of the contract term. If overages occur, we’ll issue an invoice for the extra hours.
Example:
You have a 20-hour monthly retainer. If you only use 10 hours in Month 1, those ten unused hours roll over into Month 2. If 35 hours are needed in Month 2, we’ll use the 20 monthly hours + the ten rolled-over hours and bill for the extra 5 hours at $250/hour.
8. Refund & Cancellation Policy
At BS LLC, we commit significant resources and time to your project from the moment work begins. Because of this, payments made as part of the agreed payment schedule are non-refundable. If you decide to cancel the project before completion, you will be responsible for covering the work completed up to the cancellation date.
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Payments and Work Completion:
Any payments made that exceed the percentage of work completed will be retained and will not be refunded in the event of cancellation. Similarly, if additional work has been completed beyond the payments made, you will be responsible for covering that difference. -
Example:
If the project is 60% complete and you have already paid 70% of the total project cost, the remaining balance will be adjusted to reflect the work completed, and no further payments will be required. However, if 60% of the project has been completed and only 50% of the total cost has been paid, we will request payment for the remaining 10% to cover the work that has been completed up to that point. -
Completed Work:
No cancellations or refunds will apply for any work that has been fully completed and delivered.
By agreeing to these terms, you understand that payments made are final, and in the case of cancellation, you will be responsible for the cost of work completed up to that point.
9. Timeline Delays
If delays occur due to the client (e.g., not providing necessary materials or feedback), the following fees apply:
- Initial Delay (15 days): $500 fee
- Extended Delay (30 days): Additional $1,000 fee
- Significant Delay (90 days): The project will be considered complete, and further work will require a new agreement.
10. Non-Solicitation
Clients agree not to solicit or hire BS LLC employees for one year after contract termination. Breaching this clause results in a penalty equal to six months of the employee’s salary.
FAQs
Q: What happens if I don’t use all my retainer hours?
A: Up to 50% of unused hours will roll over to the next month. However, if those rolled-over hours are not used within the following month, they will expire.
Q: How does milestone billing reduce risk?
A: Milestone billing ties payments to deliverables. You only pay when key project phases are completed, ensuring transparency and keeping the project on track.
Q: What happens if I request additional services outside the original scope?
A: Any extra work is managed via Change Requests. We’ll provide a new quote, and once you approve it, we proceed with the changes.
Q: What are your payment terms?
A: We issue invoices at the beginning of each month, and payment is due within 15 days (Net 15). After the 5-day grace period, a 5% late fee applies.
Q: How does rollover work with retainers?
A: If you don’t use all your monthly hours, up to 50% can roll over to the next month. Any unused rolled-over hours expire after that month.