My engagement agreement with a manufacturing client in Milwaukee ran for 12 months and expired last October. I delivered my report finding two billing errors which were corrected. While cleaning up my files last week I realized I overlooked a third error — a power factor penalty that's been applied incorrectly. It's worth about $2,200/month. The engagement is over. Am I entitled to a fee if I bring this to the client now, or did I miss my window?
Engagement expired but I just found an error in the old data
Ethically you should inform the client regardless of whether you get paid. You identified an error in their billing using data obtained during your engagement. Withholding that information would be unprofessional. As for compensation, your expired engagement agreement may not cover this finding unless it has a tail provision. My recommendation: contact the client, disclose the finding, and propose a new engagement specifically for this error at your standard contingency rate. Most clients will sign because you're delivering immediate value. The goodwill from your honesty strengthens the relationship more than any contract clause would.
Told the client about the power factor error and proposed a new agreement at 35% to handle the claim. She signed the same day and thanked me for the follow-through. We Energies corrected the penalty and issued a 12-month credit of about $26,000. My fee was $9,100. Honesty paid off — literally.