How do you guys charge hours? Are your hours tied to comp in your organization? e.g., if one engagement is lump sum, are you supposed to charge however many hours your worked, or with a cap?

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On paper and ideally , you should be charging your actual hours worked. If it’s a fixed fee engagement, then any overage will dent the margin and the partner will need to eat it (or they negotiate additional fee).

In practice, you may need to eat the hours -depending on how toxic your partner is. Unless you are a contract worker, your hours shouldn’t be tied to comp

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There are places that tie comp to hours to varying degrees. In a number of practices at FTI, people get a bonus per hour for exceeding certain monthly targets. A&M ties comp for a lot of people to collections, which can be driven by hours.

In my practice at Accenture we charge flat 40 hours/week regardless of actual hours worked. Rarely/never get approval to charge overtime which would impact project profitability

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Are you consulting or AFS?

We either charge 10 hours per day (if the client pays weekly) or we charge actual hours to track firm profitability. The bankruptcy guys charge in 6 minute intervals 🤢

I'm not now, but I did work there and at PwC at different times.

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