Rate structures
How an engagement sets its bill rate — inherit the rate card, or override it flat, by person, by task type, or blended.
An engagement's rate structure decides how the bill rate is set for its hours. It's separate from the billing model (which decides when revenue is recognized) — you pick one of each.
By default an engagement inherits your rate card, so most engagements need no rate structure at all. Choose one on the Billing step only when this contract bills differently.
The structures
| Structure | The bill rate is… | Reach for it when… |
|---|---|---|
| Inherit rate card | Whatever your rate hierarchy resolves | The engagement bills like everything else |
| Flat | One headline rate for every hour | This contract has a single agreed rate |
| By person | Each person's rate (override per row) | Senior and junior time bill differently |
| By task type | The rate for that kind of work | Design, dev, and strategy bill differently |
| Blended (person / task) | A headline rate billed flat, with a target mix tracked | You bill one rate but want to watch realization |
Inherit vs. override
For by person and by task type, each row shows the rate you'd inherit (and where it comes from) with a blank override field — leave it blank to keep inheriting, or type a number to pin an engagement-specific rate. You can even add a new task type inline. Overrides are saved as engagement-scoped rate rules, so they sit at the top of the hierarchy for this engagement only.
Blended rates and realization
A blended structure bills one headline rate for every hour, while you enter a target mix (a percentage and target rate per person or task type). The mix is guidance only — it never bills; ProjectPacer uses it to show your realization: what you're actually earning per hour versus the plan. It's how you catch a flat-rate engagement quietly slipping underwater. A warning appears if your target blend drifts from the headline.
By person, by task type, and blended all resolve missing values from your rates — so a person or task type with no rate prices that slice at zero. Flat and fixed-fee engagements don't need per-row rates. Check Coverage if numbers look low.
How the underlying rate card resolves every rate.