Quote:
Originally Posted by CornHusker4Life
I guess, I do not follow. I get billed weekly or every two weeks depending on the amount of work done on my car. I only pay when I see pictures of the work and progress so I know exactly where my $ went. I do not see how the spending could get out of hand if you see a bill weekly or bi weekly. If you see that bill and it is higher than you expect for the amount of work done...pull the car out and maybe you are out a couple thousand bucks and not 100s of thousands. Seems pretty simple
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For example.. you as a customer budgeted for 100k which was driven from an estimate which encompasses tasks 1-25. For simplicity sake lets assume the 100K is broken into equal tasks @ 4K per task and you put down 25%...... 25K.
You get an invoice after 1 month that indicates that 4 tasks are complete but all of the 25K is gone....... which based on the simple math.. your 100K project is now a 156K project... ~60% increase in cost with no increase in scope...
Edit: the same thing can happen in smaller increments.. (weekly invoice) in fact I would suggest that when it does the variance from estimate will be larger in the end... you will just know about it sooner.... Death of a thousand cuts :-)