Non-billable Hours Clause Samples
The Non-billable Hours clause defines which hours worked by a service provider will not be charged to the client. Typically, this clause specifies certain activities or time periods—such as administrative tasks, training, or travel—that are excluded from invoicing, ensuring the client is only billed for direct, productive work. Its core function is to provide transparency and prevent disputes by clearly outlining which services are not subject to payment, thereby protecting the client from unexpected charges.
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Non-billable Hours. Non-billable hours shall be defined as any hours set forth on time sheets completed by the Assigned Employee, which have been allocated to any category or function other than services performed for the individual Project. Non-billable hours shall include without limitation: compensated absence time, including without limitation vacation time, sick time, personal time, and holidays; performance of indirect administrative tasks, or any other time keeping category consistent with standard accounting practices.