Regardless of the capacity assigned to contractors within your organization, whenever calculating utilization & capacity you should filter your reports to be based on Full-Time Employees and on your Contractors.
Contractors, by definition, are a more flexible workforce and we do not want them inflating the capacity of your full-time workforce.
We have seen contractors deployed in numerous different ways, but given their flexible nature, ensuring that their cost is specific to their contract is important as it will ensure better analysis of that contractor’s performance on the the project financials and the implication of their time versus the use of a FTE or potentially a new hire.
Cost should be used to measure the true margin and profitability of the project, while the Bill Rate on the project should reflect the team’s budget burn if applicable.
Schedules can be flexible with contractors and