How to Bill for Travel Time as a Contractor

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As a contractor, billing for travel time can be a tricky subject. You want to be paid for the time you spend on the road, but you also want to be fair to your clients. Here are some tips for billing for travel time as a contractor.

1. Set a clear rate

Before you start billing for travel time, you need to set a clear rate. This should be an hourly rate or a flat fee. Make sure your clients understand what the rate is and how it will be applied. You should also include this information in your contract.

2. Keep accurate records

It`s important to keep accurate records of your travel time. This can include the time it takes to drive to the client`s location, time spent on flights, and time spent waiting for transportation. You can use a mileage tracker app or a time tracking app to keep track of your hours.

3. Be transparent with your clients

When you bill for travel time, be transparent with your clients about how much time you spent traveling and what your rate is. You can include this information on your invoice or in a separate document. If your client has any questions about your billing, be prepared to explain your process.

4. Consider a cap

Some contractors choose to cap their travel time billing. For example, you might charge a flat fee for up to four hours of travel time and then charge an hourly rate after that. This can help your clients budget for your services and give them a clear understanding of what they will be paying.

5. Don`t forget to include expenses

When you travel for work, you will also incur expenses such as gas, tolls, and parking. Make sure you include these expenses in your billing. You can either include them as a separate line item on your invoice or include them in your hourly rate.

In conclusion, billing for travel time as a contractor requires clear communication, accurate record-keeping, and transparency with your clients. By setting a clear rate, keeping accurate records, and being transparent with your clients, you can ensure that you are paid fairly for your time on the road.