Do any of you have any information about how consulting companies reimburse their contract consultants for client-related travel?

We generally reimburse our consultants when the client pays us. Are you aware of any other practices?

Thanks,
Kathy Miller

Hi Kathy -- It varies from company to company, and you should be sure to stipulate whatever the reimbursement policy is very clearly in the contract you have with the contractor. That said, if you want to keep good consultants on your roster, you should not make them wait until you get paid in order for them to get paid. A well run company has a line of credit with a bank that enables them to pay their employees (for work AND expenses) in a timely manner. It is completely unsat to have to wait 2 months to get reimbursed for a trip taken specifically to support your client (for example). Remember - these consultants you have on your books may be independent, but when they are with the clients you acquire, they're doing it to make you and your company look good and get the work done. The best way to keep those good folks on and keep them and your clients happy is to ensure they do not have loads of out-of-pocket expenses up front.

An even better option is to provide a company expense card so that all travel expenses are put on a credit card and the bill goes directly to you, not the contractor. The contractor must supply receipts, of course, and all expenses must be legit, however, it's best not to force good consultants to have those out of pocket expenses while you wait for your client to pay you. (Think of your contractors as customers, too.)

JMNSHO, speaking from personal experience.

I am a contract consultant. Some of my work is through a consulting company. They pay airfare and hotels directly (direct bill of hotel expenses). They also reimburse taxis and pay a per diem for meals, etc. They pay the per diem and reimbursements on a pre-announced schedule, so it is generally about two weeks after I invoice.

Another organization for whom I've worked pays a flat fee for airfare, travel and expenses allowing consultants to choose where they want to spend their money. They do pay a premium for some destinations. I have one friend who goes low-end all the way in order to pocket some of the fees. I tend to get a slightly nicer hotel and have good meals.