Establishing secure connection…Loading editor…Preparing document…

Project Management Hourly Addendum

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

PROJECT MANAGEMENT HOURLY ADDENDUM

Project Identification

Project Title:

Effective Date:    Reference Agreement No.:

Recitals and Purpose

This Hourly Addendum (the "Addendum") supplements and modifies the referenced agreement between Client Name: and Service Provider: . The parties agree that certain services will be provided on an hourly basis as set forth below. Terms in this Addendum prevail to the extent of any conflict with the referenced agreement.

Scope of Work (Hourly Services)

Hourly Rates and Billing

Provide standard hourly rates and billing increments for roles performing work under this Addendum. Rates apply only to authorized work and approved change orders.

Standard hourly billing increments shall be applied as indicated above; travel and administrative time shall be billed in accordance with the applicable rate and only when pre-approved in writing by Client.

Deliverables and Acceptance

Timeline and Milestones

Project Start Date:    Project End Date:

Target Date:

Target Date:

Budget, Estimates and Payment

Estimated Total Hours:    Not-to-Exceed Billing Cap (if any):

Invoicing Frequency:

Expenses and Reimbursements

Reimbursable expenses will be billed at cost and require prior written approval from Client where single-item expense exceeds .

Change Order Process

Any changes to scope, schedule or budget shall be effected only by a written change order signed by authorized representatives of both parties. Change orders must specify additional hours, updated rates if applicable, and impact to schedule and deliverables.

Confidentiality

Each party shall maintain in confidence all proprietary or confidential information received from the other party in connection with services under this Addendum. Confidential information shall not include information that is or becomes publicly available through no fault of the receiving party or that is rightfully received from a third party without restriction.

Intellectual Property; Work Product

Unless otherwise agreed in writing, all work product created specifically for Client pursuant to this Addendum shall be the property of Client upon full payment of all fees. Provider retains ownership of pre-existing tools, methodologies, templates and any general know-how not constituting Client Confidential Information.

Liability, Indemnification and Insurance

Each party agrees to indemnify and hold harmless the other from claims arising out of its negligent acts or willful misconduct in connection with performance under this Addendum. Except for liability arising from willful misconduct or gross negligence, neither party's aggregate liability shall exceed the fees paid under this Addendum during the prior 12 months.

Termination and Transition

Either party may terminate this Addendum upon written notice if the other party materially breaches and fails to cure within 30 days. Upon termination Provider shall deliver work in progress and reasonable transition assistance; Client will pay for all approved time and reimbursable expenses through the termination date.

Governing Law; Entire Agreement

This Addendum shall be governed by the laws of the jurisdiction indicated below and constitutes the entire understanding between the parties with respect to hourly billing for the referenced project.

Acknowledgement

The persons signing below represent that they are authorized to bind their respective parties to this Addendum and that the terms set forth herein shall be effective as of the Effective Date above.

Client

Party Label:

By:

Date:

Title:

Service Provider

Party Label:

By:

Date:

Title:

Enter text✕

What the Project Management Hourly Addendum Is

A Project Management Hourly Addendum is a contract attachment that defines hourly billing terms and related project controls when adding services to an existing agreement. It records parties, effective date, hourly rates, estimated hours or a not-to-exceed cap, payment timing, invoicing requirements, expense reimbursement, change-order procedures, approval workflows, and signature blocks so hourly work is billed consistently and disputes are minimized.

Why a Clear Hourly Addendum Matters

A precise hourly addendum reduces billing disputes, sets clear expectations for scope and approvals, and preserves audit-ready records for finance and compliance without changing the parent contract's main terms.

Why a Clear Hourly Addendum Matters

Who Typically Prepares and Signs This Addendum

The addendum is used by parties that need to formalize time-based project work outside the base contract.

  • Project Managers and PMOs who track time, approve change orders, and reconcile invoices against project budgets.
  • Independent contractors and freelance consultants who bill hourly and need clear invoicing and payment terms.
  • Procurement, finance, or legal teams that require standardized billing terms and documentation for audit and compliance.

Typical signers are authorized representatives with signing authority from each contracting party; distribution follows project approval workflows.

Core Elements to Include in a Professional Addendum

A well-constructed addendum groups commercial, operational, and administrative terms so hourly work is trackable, billable, and enforceable alongside the primary agreement.

Parties

Full legal names and business entities for all parties, including contact names and roles; ensures proper attribution and binding obligations.

Scope of Work

Concise description of services covered by hourly billing, deliverables, excluded tasks, and any assumptions that influence time estimates.

Hourly Rates

Specify rate per role or individual, overtime multipliers, travel rates, and currency; tie rates to invoicing and approval rules.

Billing and Invoicing

Define billing cycle, invoice contents, required backup (timesheets or activity logs), payment terms, late fees, and remittance instructions.

Change Orders

Describe how additional hourly work is requested, approved, priced, and documented, including required sign-offs before work begins.

Termination and Disputes

Include notice periods, final accounting procedures, dispute resolution and governing law to reduce ambiguity on closing and claims.

Step-by-Step: Completing the Addendum

Follow these sequential steps to prepare, approve, and finalize the hourly addendum accurately.

  • 01
    Draft: Populate parties, scope, rates, and caps before circulation.
  • 02
    Review: Legal and finance should confirm tax and billing language.
  • 03
    Approve: Obtain required internal approvals and signatory authorization.
  • 04
    Execute: Collect signatures and distribute signed copies to stakeholders.

Typical Routing and Approval Flow

The addendum usually follows an approval path aligned with procurement and project controls to ensure funding and authorization before work begins.

  • Originator: Project manager drafts addendum and attaches estimate.
  • Finance Review: Finance verifies budget availability and invoice terms.
  • Legal Review: Legal confirms contract conformity and risk language.
  • Execution: Authorized signers execute and copies are distributed.

Digital Workflow Settings to Configure

Configure eSignature workflow to match signer order, authentication strength, and required supporting fields before sending.

Field Configuration
Signer Order Sequential or parallel signer order per approvals.
Authentication Email link, SMS code, or stronger ID verification.
Required Documents Attach timesheet template or purchase authorizations.
Reminders Auto-reminders and escalation after X days.

Digital Signing and Technical Compatibility

Choose a platform that supports standard document formats, audit trails, and required signer authentication for your jurisdiction.

  • Document Formats: PDF, DOCX supported
  • Integrations: Connects to ERP/CRM systems
  • Authentication: Email, SMS, KBA options

Security and Compliance Considerations

Encryption: AES-256 at rest; TLS 1.2/1.3 in transit
Audit Trail: Comprehensive timestamps and IP logs
Authentication: Multi-factor and KBA options
Regulatory: ESIGN and UETA compliant
HIPAA: BAA available where required
Certifications: SOC 2 Type II and ISO 27001

Common Preparation Mistakes to Avoid

  • Ambiguous scope language that fails to specify tasks, leading to disputes about whether work is billable under the addendum.
  • Omitting overtime or premium rates, which creates disagreement when hours exceed standard thresholds during peak project phases.
  • Not requiring written pre-approval for additional hours or change orders, enabling unauthorized work and unexpected invoices.
  • Failure to include invoice backup requirements and approval contacts, causing payment delays and reconciliation problems.

Risks and Consequences of an Improper Addendum

Late Payment Risk: Delayed cash flow and interest claims
Enforceability: Missing signatures may render terms unenforceable
Tax Consequences: Incorrect payee info may trigger backup withholding
Regulatory Fines: HIPAA breaches can incur civil penalties
Scope Creep: Undefined scope increases project costs
Dispute Costs: Litigation or arbitration expenses

Key Dates and Timing to Track

Record and communicate dates that control billing cycles, dispute windows, and retention so all parties understand obligations and deadlines.

Effective Date:

Date obligations and hourly billing begin

Billing Cycle Start:

Specify day of month when invoices are generated

Payment Terms:

Net 30, Net 45, or specified payment deadline

Dispute Notice:

Timeframe to raise invoice disputes, often 30 days

Invoice Retention:

Keep invoices for audit per retention policy

Milestones in the Addendum Life Cycle

Track these sequential milestones from drafting through closeout to maintain billing accuracy and project control.

01

Drafting Complete

Addendum text finalized and internal approvals obtained

02

Budget Authorization

Finance confirms funds and cost center allocation

03

Signatures Collected

All authorized parties sign the addendum

04

Work Commences

Hourly work begins under the defined terms

eSignature Vendor Comparison for Executing Hourly Addenda

Comparison focuses on starting price, trial availability, bulk send capability, audit trail, HIPAA compliance, and envelope limits across common providers.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions About the Hourly Addendum

Answers to common questions on enforceability, eSigning, notarization, revisions, and revocation to help finalize the addendum correctly.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users