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Small Business
Covering costs of travel
August 8, 2000: 11:39 a.m. ET

Consultant might raise hourly rate to compensate for expenses, lodging
By Jane Applegate
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NEW YORK (CNNfn) - Dear Jane: I am a database consultant who charges $90 an hour for my services. I'm starting to get requests to work out of state and wondered how to structure my fees to cover travel expenses and overnight stays.

It's tempting to charge clients for travel time and overnight stays, although most consultants don't charge for all the time they spend on the road or sleeping in hotels. Many consultants do charge a day rate if they have to fly across the country.

To make up for the time spent away from your home and office, I would suggest increasing your hourly rate from $90 to $120 an hour when you are working out of town or out of state.

Before you accept an assignment, make it clear that your clients must reimburse you for airline tickets, ground transportation to and from the airport, parking charges, hotel rooms and meals.

Make sure you include copies of all your expense receipts with your invoices. Establish a policy requiring reimbursement within three weeks so you will be paid before your credit card bills are due.

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