{ "media_type": "text", "post_content": "Who pays for per diem, flights. Is it Client or the firm ?", "post_id": "614427cddf62a0001fb0a983", "reply_count": 8, "vote_count": 1, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

Who pays for per diem, flights. Is it Client or the firm ?

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Depends on the project billing structure. Often clients will pay expenses, but some projects build the expenses into the margin and can save money by slashing travel (more common in fixed fee engagements).

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As a rule of thumb, the client pays for everything (eventually).

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True, but those situations are rare. Usually every contract has a buffer built in because Partners won't look kindly to another partner whose project burns firm cash.

How would we know your firm’s policies and contracting terms?

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Technically, client pays for everything or else company won’t make money

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At MBB engagements are fixed rate, so technically your per diems are paid by the partners.

Smart companies pay for those, not only to control those costs but also because if it is inside the project billing the consulting company margin will go over it.

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