The scope changed four times. The price changed once.
Most service businesses have a contractual right to charge for scope changes and lose most of the money anyway. The leak is rarely in the contract.
SBy Steve··5 min read
A project is quoted at £86,000. It delivers at £86,000. Along the way the client adds a second site, moves a deadline forward by three weeks, asks for a revised report format, and swaps out a specification. One of those four became a variation. The other three were absorbed, not because anyone decided to absorb them, but because nobody decided anything at all. This is one of the most reliable margin leaks in project-based businesses, and it is almost never a contract problem. The right to charge for changed scope…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.