Eversource client in Connecticut wants me to guarantee savings or they don't pay anything. They've been burned by another auditor apparently. Should I walk away or is there a way to structure this?
Client wants refund guarantee - red flag?
I'd be very careful. What if SCE&G has correct billing but the client expected errors? You can't guarantee what you'll find. Maybe offer lower contingency rate instead?
Had similar request from South Carolina Electric & Gas client. I offered to reduce my fee to 25% if savings were under $10K, but no guarantee of finding anything.
Guarantee is unreasonable. You're auditing, not creating savings. Could offer "no savings, reduced fee" but never "no savings, no payment."
Black Hills Energy audits in South Dakota rarely yield savings under $5K. Maybe guarantee minimum $5K or fee drops to hourly rate?
PPL clients in Pennsylvania sometimes ask this. I explain that utility billing accuracy has improved dramatically. Can't guarantee errors exist.
Never guarantee savings you cannot control. A professional auditor reviews billing accuracy and identifies opportunities - the utility's billing practices determine what you find. Consider offering performance tiers instead of guarantees.