Project Performance is shown differently depending on the project type - Fixed Priced or Time & Materials (T&M). The Project Performance chart helps you see how your project is tracking, and your past and future revenue.
However, both allow you to see how you are tracking against your budget, when you may go over budget and, if you are using timesheets, are automatically adjusted based on timesheet entries (actuals).
Fixed Priced Projects
We use a Time & Materials benchmark to help you understand if a project is performing better or worse than if it was charged as T&M. Ideally, every Fixed Priced Project would come in under the T&M Benchmark, meaning you earned more than your standard hourly rate.
For Fixed Price Projects, performance can be viewed as:
- Money - Fixed Price
- Money - T&M Benchmark
Time will show you how many billable hours have been completed, how many hours are still to come, the total, and the budget.
Money - Fixed Price will show the amount earned in the past, future, and total based on the budget. To ensure the projected revenue always equals the budget, the rates for each role are adjusted. This is viewable as an 'Adjusted rate'.
On the graph, you will also see the Benchmark. This is what would have been charged if this was a T&M project. It is calculated by simply not adjusting the rates, and charging every hour at the project rate.
Money - T&M Benchmark will show what would have been earned if this were a T&M project. It also shows you where the fixed price project crossed over the T&M equivalent.
Time and Materials Projects
For Time and Material projects, the Project Performance Card will help you keep track if you are going over budget, and will need to adjust the budget.
It can be used to help predict your project performance and see where the money is being spent.
It also helps you see what has already been completed or earned, and what is still do be done / how much is still to be earned.