> For the complete documentation index, see [llms.txt](https://docs.allshore.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.allshore.ai/clients-and-pipeline/budgets-and-caps.md). # Budgets & caps A **budget** is a not-to-exceed cap on a contract — either a **fee** cap (an amount of money) or an **hours** cap. One budget per contract; setting it again replaces the previous cap. ## Burn-down Burn-down shows what's been consumed against the cap and what remains. Consumption is computed from the **billable time logged against the contract's placements**, priced entry by entry at the bill rate in force on each entry's own date — so a rate change mid-engagement is reflected correctly. Two details worth reading carefully, because they decide what the number means: * **It counts logged time, not approved or invoiced time.** A cap is about work done against the contract, not revenue recognized — so burn-down moves the moment a consultant logs an hour, before any client sign-off. Invoicing and margin, by contrast, wait for approval. * **Remaining goes negative once you're over.** The cap is a signal, not an enforcement barrier: nothing stops work from continuing past it. ## The entry-time warning When a consultant (or a partner logging on their behalf) saves time against a placement on a capped contract, the response can carry a budget warning. Three things to expect: * **It starts at about 80% consumed.** The threshold is measured in whole percent, so it can fire from 79.5%. Below that there's no warning — silence means "not close yet", not "no cap". * **It reflects the state after the save.** A single large entry can take a contract from under the threshold to over the cap, and the first warning you see is the one reporting that. * **It is a warning, not a block** — the time is saved either way. Refusing the entry would just push the truth out of the system; the cap is a signal for you to act on. A contract with a zero cap never warns. ## Where else caps surface The budget-burn agent projects consumption forward and raises **Radar** findings when a contract is trending toward its cap, so a slow overrun gets attention without anyone watching the screen. **Reports → Engagement billing lifecycle** shows billed-to-date against cap and projection per engagement. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.allshore.ai/clients-and-pipeline/budgets-and-caps.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.