Prospect in Des Moines says he'll sign my engagement agreement but only after I tell him what errors I've found. He wants me to do the audit first, present findings, and then he'll decide whether to engage. Basically wants the work for free to evaluate whether it's worth paying for. How do you handle this?
Client wants my findings in writing before signing the engagement
Don't do it. If you present findings without a signed agreement, you have zero contractual protection. The client can take your findings and act on them without paying you. I offer the free preliminary review — a quick look at 2-3 recent bills where I give a general assessment like 'I see potential issues with your rate classification and demand charges that warrant a full audit.' That's enough to show value without giving away specific findings. The details come after the agreement is signed.
Norm gives the right approach. Never deliver specific findings without a signed engagement agreement. The preliminary review — a high-level assessment that identifies areas of concern without quantifying them — is the appropriate middle ground. You're showing the client you have expertise and that there are likely findings, without giving away the specific information that has monetary value. Once the agreement is signed, you deliver the full analysis.
Offered the preliminary review approach. Looked at 3 bills, told him I see red flags on his rate classification and a possible tax exemption but that I need 24 months of data to quantify the recovery. He signed the agreement the next day. Full audit found $22,000 in combined errors. Norm's advice saved the deal.