Interpreter fees and costs. Avoid misunderstandings.

March 1, 2017 § 7 Comments

Dear Colleagues:

Many interpreters complain that clients do not want to cover their expenses; that they do not understand why we charge for costs separately when we are already asking for a well-deserved hefty fee.  The complaining seems to include agencies and direct clients alike, and it makes many of our colleagues uncomfortable.

Interpreters dislike the subject because they do not how to charge fees and costs, or because they do not really understand why we must be paid for both of these items.  As for the client, many agencies just do not want to pay because their business plan is to profit as much as they can get away with, and to keep the interpreter from the money for as long as possible, or for as long as the interpreter allows it. Direct clients have different reasons, but they can all be summarized in one: lack of knowledge. They do not know what the interpreter does.

As we just saw, they may have different reasons to dislike, and frankly avoid, paying for interpreter fees and costs, but most of their hesitation and reluctance to pay can be eliminated with some clarity and a simple system.

In the past, I have discussed the items we must consider when calculating our professional fee and what costs we need to pass on to our client. You can read these blog entries somewhere else in my blog.  Today we will explore a system that will help you educate the ignorant client and will protect you from the Draconian one-sided “job opportunities” that some agencies put on your table.

The first thing I do when I am contacted by a serious client who wants to retain my professional services, is to find out as much about the assignment as possible: type of interpretation that will be required, subject matter, name of the individuals giving the speeches or presentations, dates when my work will be needed, duration of the project, place where the services will be provided, work conditions, equipment to be used, languages provided, name of the other interpreters already retained or prospective interpreters who are being considered for the assignment, and I always want to know what it I exactly that the client expects to be covered by my professional services.

After a good chat, and sometimes more than one when the project is big and the client needs to get the answers to some of my questions, I inform them that they will hear from me within 24 hours. I explain that they will receive an email with an estimate for the professional fees and costs I would charge for the assignment as presented to me. Then I get to work.

I already have a format that matches my professional style and personality. This gives me the organization and coherence needed to be able to explain what I do and how much I charge.

I suggest you develop your own format for your estimates, and as always, everything that I suggest in this entry, and anywhere else in the blog, is not intended as legal or financial advice; these are just mere suggestions that in no way guarantee you any result. If you need to know financial, legal, or other consequences, please retain a professional.

Whether you prepare your estimate form on your own, or with professional help, I strongly encourage you to at least include the following:

On a nice document, formatted to your taste as far as font size and style, letterhead and logo, and color of both, background and font, start with your document’s personalized title: Something like “Estimate of Professional Interpreter Fees and Costs Submitted to XX Corporation for the XX Conference in XX City from X date to X date”.

Next, inset an introductory section where you go into more detail about the service you would provide to the client. Something like this: “This estimate is submitted at the request of XX Corporation, with its address at XX Avenue in XX City, regarding professional interpreting services XX language<>YY language in XX City, on the following dates: from X date to Y date, during the XX Conference of XYZ Topic”.

On the next section of your estimate, you need to talk about your professional fees, so start by including a section title such as: “Professional Fees”, or “Professional Interpreter Fees”, or something similar. I would always include the term “professional” to underline the fact that, if you are hired, they would be retaining the services of a professional just like a physician or an accountant, not an unskilled laborer. Then, I would describe my work with words like: “My professional daily (or hourly) fees for simultaneous interpreting, consecutive interpreting, and sight translation (depending on the service you are about to provide) is $XX (per day or hour) for a total of XX days (or hours). The total amount would be: $XX (unless there are other interpreting fees for additional hours (days) as described below. The professional fee for hours of service in excess of 8 per day would be $XX per hour in XX amount of minute increments.” After that paragraph, you can add:

“This professional service includes (telephonic) (in person) interpreting at the convention center (hotel, plant, law office, etc.) Other than the professional tasks above, I will not provide any other services such as (answering phones, making tea, hussle for customers, technical support), or any other service that goes beyond interpreting services and the cultural adviser function implicit in conference interpreting. Under no circumstance I will drive a vehicle for you or any of your clients, customers, associates, etc.”

At this point you will be ready to move on to your “expenses section” of the document. Start with the most expensive ones that the client has to advance you or reimburse you for. I always start with transportation expenses: Airfare or train tickets. Maybe something similar to this: Payment in advance for the flight from XX City to YY City and back”. If possible, do your research so you can include the total cost, including taxes and incidentals such as luggage, priority boarding, and similar services unless your frequent flyer status allows all those things for free. Always get suggestions based on the Airlines you want to fly, the airports you prefer, and the time of the day when flying is more convenient to your Schedule. Make sure to include something in case airfare or train ticket prices change because the client takes too long to approve the estimate and sign a contract. Saying something like this may come in Handy: “The ticket prices above are not guaranteed until purchased. For that reason, prices could increase. If this happens, it is your responsibility to advance the correct amount according to the price on the day the ticket is purchased”.  You can also include your arrival time and your departure time from the city where the assignment will take place. This way the client does not get any ideas about putting you to work before you get there, or up to 10 minutes before your flight leaves. You know your clients, and everybody is different, but for long trips I would require a business or first class seat in order to get to work fresh instead of tired from the trip.

I would then insert my ground transportation expenses. Many interpreters do not include these expenses. They should. Your client needs to pay for your ground transportation back at home from your office to the airport, and back; for your transportation from the airport to the hotel, and back, at your destination, and from all trips to and from the hotel to the venue where you will be interpreting. I do not believe that you have to charge for a stretch limo, but do not use the airport shuttle or the subway either.  Travel by Taxi, Uber, or something similar. Based on prior experience, include an estimated total amount for ground transportation, but explain to the client that this is an expense they will have to reimburse because at this time you have no way to know the exact amount of the expenses; unless you both agree to set a fixed amount ahead of time and that lump sum would be all you get. You may lose some money, you may end up with a little more than the expenditure, but at least you would include ground transportation in the same check with your fees and all other expenses.

Once you covered transportation, the next big expense is lodging. I would demand a room in the same hotel where the event is to take place, and I would never accept sharing the room with another person. No roommates, no motels of dubious reputation, not cheaper hotels outside the county an hour away from the venue. Besides the hotel room, I always ask for the internet service. As you know, must budget hotels include internet service (and breakfast) in the price of the room, but most top hotels (where you will be staying during the assignment) have an extra charge. The client must pay for it, as you will need access to the internet for professional reasons. I would insert something like this under “lodging expenses” on my estimate form: “Payment of hotel room for the following nights: XX, YY, and ZZ at ‘XX Hotel’ in XX City, plus any charges for internet access. As of today, the hotel rate for a single one bed room is $XX (plus taxes and internet service charges) but said amount is subject to change. If so, you must cover the hotel fare applicable at the time of the reservation”.  You can also agree with your client that they will directly take care of the hotel and internet service. This is common in big events because the client already has a hotel group rate and they will just add you to the same package.

An estimate can include many other things, but there is at least one more expense that is usually forgotten and should be included in all estimates. I am talking about your Per Diem.

Meals during professional trips are expensive.  Most venues offer costly restaurants, and many times interpreters have to eat at airports or order room service late at night when they finally finish work. These meals have to be paid by the client. In the United States, and in many other countries, the federal government has pre-set fixed Per Diem rates based on the particular city or town’s cost of living. In the United States, the IRS has a list on line for all towns and cities in the country, and the U.S. Department of State has the same thing for all destinations overseas. I usually inform the client that I have calculated my Per Diem based on said rates. It would be very hard for the client to argue against a Per Diem already established that is continuously adjusted and universally accepted.  I would put the following under “Per Diem”: “I will receive as Per Diem, the daily amount established by the IRS for XX City. This amount for the year of XX is $XX per day, for a total of $XX for XX days.”

The next section of my estimate would deal with cancellation charges, and I would spell it out in detail, even if it turns repetitive, and ugly for a language lover. I would cover different possibilities because the more advanced the notice of cancellation, the better chances I will have to get my income on another assignment somewhere else; the closer to the date of the event, the more money I need to get as compensation from the cancelling client.

Expenses are different. Regardless of the advanced notice, a client would always be obligated to reimburse me for all expenses already made up to that time, including cancellation fees in those cases where an expense allows cancellation, but this will generate a penalty or fee. For this reason, it is always better to get part of the fee and expenses in advance. It is better to prepare a statement explaining the client how much money you will return (if applicable) than turning into a detective and chase the morose, and now uninterested client half way around the world to get paid and reimbursed.

I would include something along these lines:

“Cancellation Policy:

Notice of cancellation XXX or more weeks before the event: No professional fees, but the client must reimburse me for all expenses already made, and for all expenses generated for returning the rest of the advanced payment to the client (because some banks charge for this service).  Said amount will be deducted from the amount to be returned to the client if there are enough funds available. Otherwise, the client must provide payment for the amount in excess of the advanced payment.

Notice of cancellation XX or more weeks before the event: XX Percentage of the total professional fee, and all expenses already made, and for all expenses generated for returning the rest of the advanced payment to the client (because some banks charge for this service).  Said amount will be deducted from the amount to be returned to the client if there are enough funds available. Otherwise, the client must provide payment for the amount in excess of the advanced payment…” And so on.

The next thing I include on my estimates is a table or a graphic with a summary of my fees and expenses, including totals. This makes it clear for the client. Besides the table, I would add the following so the estimate is crystal clear:  “The client must pay the total amount indicated, unless there are any changes due to an increase on interpretation hours (days) or changes to any of the transportation or lodging prices. Please keep in mind that some taxes and additional charges are yet to be included, and they must be reimbursed to me as soon as I inform you of their existence”.

Then comes the terms of payment. This is crucial and when you spell it out for the client to see from day one, you are saving yourself some headaches and extra expenses due to late payments or disputed amounts. Payment should be prompt and non-compliance should carry consequences. How about something that brings up important points like these ones:

“The client must pay all professional fees and expenses as follows:

Advanced payment: Once this estimate is approved, the client will have 48 hours to make the advance payment, which will include XX percentage of the total professional fees, airfare (according to the applicable rate) hotel charges at the applicable rate (including taxes and internet service) unless the client directly pays for the hotel and related charges, including internet access. The advance payment must be in cashier’s check or by electronic transfer to my account. The remaining professional fees and expenses must be paid in full no later than XXX date. Any delays on this payment will generate a XX percent late payment interest”.

Finally, I would include the date and a place on the document for me and the client to sign as proof of agreement to the terms of this estimate. Like this: “Delivered to the client for review and acceptance on this date XX”, followed by both of our signatures.

Dear friends and colleagues, I believe that there is much to be done. We have to educate the direct client and identify and exclude corrupt greedy agencies, but we can also make our lives a little less complicated by adding some clarity to our charges. I have found that it is easier to explain my fees, expenses, and the scope of my professional services to those clients who have seen my estimate on paper. It allows them to understand and ask questions, and it gives us a road map to organize all those items that perhaps we have been paying for when in reality it is the client who has to cover them.

I hope that you find this explanation useful, and it motivates you to be more organized, assertive, and (because the contents of this blog post are not legal advice) to visit your attorney or accountant if you need professional help to develop your unique, tailor-made estimate of professional fees and costs. I now ask you to please share with the rest of you any tips you may have to make this process smoother and faster.

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§ 7 Responses to Interpreter fees and costs. Avoid misunderstandings.

  • hcazes says:

    Tony, this article is amazingly useful!!
    Thank you for sharing this information.
    It is one of those recommendations that once you know, you just go “Ah, of course!”
    It is all basically “common sense,” but obviously the result of years of experience and trial and error.
    This will definitely benefit all our colleagues, and also maintain the standards we are already following as professionals.

  • Alina Salvat says:

    Thank you Tony. This is invaluable to anyone who provides interpretation services — especially to potentially new clients.

  • Rosemary Dann says:

    Thanks for this succinct, yet comprehensive guide, Tony! This would make a great conference presentation.

  • zinnesther says:

    Thank you, Tony. This is so great to have on hand as a reference guide. I’ve learned the hard way to outline all the expenses to be reimbursed, but you give excellent suggestions.

  • Maria Galetta says:

    A very useful recap Tony: thank you!
    Let me just note that the established government per diem rates can be very unfair.
    If one has to stay in a conference area (as around the UN in NYC, during high season), there is no way that those rates can be found. And the same goes for the meals, especially the breakfast.
    So those per diem must be considered as a quoting tool only after one checks the actual costs.

    • Maria, thank you for your comment. You are right. Cases like New York City, Chicago, San Francisco, Tokyo and London (to name some of the most common ones) do require some research by the interpreter before sending an estimate to the client.

  • Inder says:

    Thanks for the details…

    God bless!

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