On a fixed fee client project the client budget rate should be the sum of the consultants budget rates multiplied by their expected hours required to complete the project plus the EIC overhead. On some proposals where there is a large degree of uncertainty or the client budget is expected to accommodate some flexibility a project budget buffer can be added. The buffer is usually calculated as a proportion (e.g., 10%) of the total budget. As a result, the client fee is limited by the maximum consultant rate and the uncertainty related to the project.
Where the client’s preferred fee structure is unclear or the client is open to a variable fee structure the project manager can use their discretion in determining the client fee. In doing so the project manager should consider EIC’s remuneration policy and take steps to ensure the project has net-zero risk for the consortium (i.e., that consultants fees will not exceed client fees).