Today’s video is What To Do When Your Client Removes Scope of Work, it explains what happens when other businesses start doing the work you’ve been paid to do.
Here’s a case study involving a directional drilling company.
As the name suggests their job was drilling and they were engaged to do drilling on a site.
This project involved kilometres of drilling– it was a big job.
They had agreed on how much was expected… so they began the work.
Then things started getting tricky because the client changed their mind several times.
At a certain point in the project, another contractor appeared. This company was also a directional drilling company.
Communication was poor so the first drilling company didn’t really know what was going on. After a while, they were told that they didn’t need to do 100% of the work.
Literally, nothing was said about transferring this to the other company.
At no point were they told that they were slow or doing a bad job.
The original company was blindsided and about to lose a lot of money that they’d relied on.
What needs to be understood is that if the client has agreed to
- Contract
- Rates
- Work
Then they have to Agree to PAY THE COSTS. If they find someone cheaper after the fact then they can’t just get rid of the original contractor.
Being UPSET is not an excuse not to pay.
YOU ARE ENTITLED TO BE PAID FOR WHAT WAS AGREED IN THE CONTRACT AND FOR THE WORK THAT’S BEEN DONE.
Contractors prepare to complete a job so if you change the job you are costing them money.
To prepare for unexpected Scope Creep make sure that you remember these clauses in every contract:
- Termination clauses
- Variation clauses
You want to protect yourself from paying for costs that aren’t yours to pay.
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