Re: Contracting moral dilemma

Subject: Re: Contracting moral dilemma
From: Sella Rush <SellaR -at- APPTECHSYS -dot- COM>
Date: Wed, 5 Feb 1997 16:06:36 -0800

A couple of comments:

1) I agree that you shouldn't do anything until you finish the project
and see exactly how much discrepancy.

2) Previous posts have made it clear that this is less of an ethical
issue and more of a business one. Also, the situation depends a lot on
the client and your relationship with them.

From an ethical standpoint, I think you need to evaluate where your
client is coming from in negotiating a fixed price bid. If you feel
that they were gambling on getting more work out of you than they're
paying for, then feel free to take you winnings and scram. If there are
other reasons, if you think they truly want to pay a fair price for a
service and are the type to come up with more money if a situation
changes, then you might want to respond in kind.

From a business standpoint, you can look at the extra payment as a
potential investment. Who is this client to you? Are you hoping to win
a lot more work from them, maybe a formal commitment or alliance? Have
their dealings with you (and vice versa) always been professional and
straightforward? If so, then readjusting your bid might actually be a
long-term investment. On the other hand, many larger businesses
separate their technical and financial people. Changing your cost might
go completely unnoticed or unappreciated by the people who hand out
contracts. In this case lowering your bid would be a bad investment.

Sella Rush
Applied Technical Systems, Inc. (ATS)
Bremerton, Washington USA
Developers of the CCM Database

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