Which term refers to billing that only covers fees for architect's labor?

• A. Net Profit
• B. Net Billing
• C. Profit Earnings Ratio
• D. Prospect/Suspect

Answer: (B)

Net billing refers to billing that covers fees for the architect’s labor only, excluding reimbursable expenses and other costs. This distinction matters because the invoice separates the professional services you performed (the hours of the architect and staff) from materials, subcontractors, travel, and other out-of-pocket expenses that may be billed separately. Understanding this helps you track how much you’re charging for your labor versus how much is charged for other project costs.

Net profit, by contrast, is the amount of money remaining after all expenses are subtracted from revenue, not a billing term for labor alone. The profit earnings ratio is a financial metric, not a billing category. Prospect/Suspect relates to the sales process and refers to potential clients, not billing for services.