Out Of Money To Complete Project

Timeismoney08

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Join Date
Jul 2012
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United States
Posts
312
I hate to even ask the question, but I'm just curious here...

I have a machine that I took on and it has required much more than originally anticipated to get it running. On top of this, the customer has made change after change at now charge.

The problem is now I am getting to a point that I am so far upside down on this project, I will look at eating about another 50k more than what it was sold for just to finish it.

What are the repercussions if I tell them to just come pick it up and finish themselves? The machine currently runs, just not to their standard..
 
Is there a spec that was agreed upon? Contract? PO with terms? Etc. these are all details that would certainly drive a direction for an out, if any.
 
Charge them for the changes they made and take responsibility for your mistakes; if you can't then talk to them straight up and work out some arrangement that works for both. If the machine can not be manufactured for that amount of money by anyone then they're likely to be very flexible specially if they're pressed for time.
 
This is why you need very clear contractual terms, and when the changes were requested you should advise on change order costs to the customer to claw those back and not suck it up. Of course if the delay is your own fault that cost would sit squarely with you

I would advise calling them and explain your predicament and also calculate the cost of those requested changes. If you have email correspondence or design document changes from them asking for those it would help your case

Good luck
 
several issues to deal with.
the original contract, exactly what was in the contract? be very detailed, you don't have to tell us, just be detailed in your reading.
change orders, for past change orders that have been completed, you may be out of luck, get with the customer and explain.
NEW / current change orders, estimate the money required to do the job and submit a po added to the contract. if they agree, do the work. if they do not agree, you are not obligated to do the work since it was not in the original contract.
a change that results in a 2k addition on a 50k job will be up to you, but they add up very fast. that is why the boss at an oem i worked for had a change order form printed up in triplicate. it saved us several times.
james
 
I don't think I've ever had a job that didn't change from the original spec.
Some you take in your stride, some you don't do until it is agreed on extra charges.
To get 50k out of whack is bad. There must have been a point where you saw it was spiralling?
You have to be honest with them and explain what has happened.
If you've ****ed up on price, tell them.
 
This is an old topic that was bumped by a spammer. Id say he has resolved it one way or another by now id hope.
 

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