Billable hours are the time a technician spends performing work that is directly charged to a customer. This excludes travel time, breaks, administrative tasks, and equipment maintenance. The ratio of billable to total hours (utilization rate) is a key efficiency metric. Most field service businesses target 65-80% utilization — below that, you are paying people to not generate revenue.
A technician works an 8-hour day: 5.5 hours on customer sites (billable), 1.5 hours driving between jobs, 0.5 hours on paperwork, and 0.5 hours on lunch. Their utilization rate is 5.5/8 = 69%.
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