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Re: Project over runs by 75% ... how do I charge 75% more..
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Re: Project over runs by 75% ... how do I charge 75% more..
by
Tim Kolb
on Jul 3, 2009 at 3:28:36 pm
It sounds as if the bid was based on a different project scope than what was delivered...it happens.
The biggest concept here is the one of "creep"...no, not the client.
I'm talking about the way that the scope of a project will slowly inflate until you realize that you're WAY out of your estimate or quote and now you have to go back and attempt a massive correction (I would characterize a 25% overage as 'massive' on most projects).
The key concept here is constant review of the definition of the boundaries of the agreement.
If the director has 3:30 of screen time and you spec'd 2:00, you ask which 2 minutes he/she would like you to do. When they say they need it all, you say "I can sure understand that...I'll even hold my per minute price for you, so as soon as you get that revised agreement signed, we'll get going straight away..."
If they started with 2 minutes and added during the project, you simply ask which 30 seconds he/she would like to cut out of the original agreement to make room for the add. If they don't want anything cut, you say "I can sure understand that...I'll even hold my per minute price for you, so as soon as you get that revised agreement signed, we'll continue with the project straight away..."
If you allow ANY scope creep, you now put yourself into a "How much is too much?" dilemma. If you immediately address the first scope creep that occurs, you can do it with courtesy and a smile and it becomes a very matter-of-fact, non-adversarial process.
Once you've allowed the work to be done, trying to figure out whether or not you can invoice it is kind of pointless. You have no leverage and the client may very well feel a little ambushed and betrayed regardless of their being the cause of the problem. If you haven't controlled the process and simply halted progress until the discrepancy was addressed-now you've become part of the problem, actually a bigger part than your client.
The time to renegotiate is when you're faced with the change, not after you've completed it.
It's like a salon trying to repossess a haircut...
I think you have potential to create a real problem with trying to bill out this type of overage. You'll need to ask yourself whether or not this person may make the entire invoice into a legal issue and you may be at the very least, significantly delayed in receiving even the fees under the original agreement.
If it makes you feel better, you could just show the overage on the invoice, discount it off, take the money and be done with it. As has been stated before, there is never a next time...and if there is, unfortunately the only two precedents you now can set with this client from their point of view are;
1.) "This guy billed us way over his quote and I feel it was bait and switch." or;
2.) "This guy has already proven he'll work at a massive discount and in the back of my mind, I've defined what he'll cost going forward by my past experience."
Unfortunately, there just isn't a good way to move from this stage of the game...
TimK,
Director, Consultant
Kolb Productions,
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Current Message Thread:
Project over runs by 75% ... how do I charge 75% more..
by Mark Burnstien on Jul 2, 2009 at 9:10:01 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Tim Baker on Jul 3, 2009 at 2:13:23 am
Re: Project over runs by 75% ... how do I charge 75% more..
by Mark Burnstien on Jul 3, 2009 at 12:30:11 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Tim Baker on Jul 3, 2009 at 1:50:41 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by grinner hester on Jul 3, 2009 at 2:14:34 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Mark Raudonis on Jul 3, 2009 at 3:08:10 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Ron Lindeboom on Jul 3, 2009 at 5:31:35 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Tim Kolb on Jul 3, 2009 at 3:28:36 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Mike Smith on Jul 3, 2009 at 3:06:11 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Tim Baker on Jul 3, 2009 at 3:30:26 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Mark Suszko on Jul 3, 2009 at 8:33:55 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Chuck Pullen on Jul 3, 2009 at 10:01:42 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Richard Herd on Jul 3, 2009 at 10:35:41 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Mark Raudonis on Jul 3, 2009 at 10:02:22 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by walter biscardi on Jul 3, 2009 at 10:09:55 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Richard Herd on Jul 3, 2009 at 10:34:39 pm
Re: Project over runs by 75% ... how do I charge 75% more..
by Patrick Ortman on Jul 6, 2009 at 10:51:28 pm
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