PSO just told me they prefer working with auditors who charge flat fees rather than contingency arrangements. Said it eliminates potential conflicts of interest where auditors might be incentivized to inflate findings. Anyone else running into this kind of pushback? Contingency fees have been standard in Oklahoma for years.
Anyone else getting pushback on contingency fee arrangements?
RG&E mentioned something similar to me last month. They're concerned about auditors being overly aggressive with disputes when they have a financial stake in the outcome. I've started offering both fee structures and letting clients choose what works best for their situation.
This is actually a positive development for the industry. Some auditors have given contingency arrangements a bad name by pursuing frivolous claims. The utilities are trying to work with professionals who are motivated by accuracy rather than maximizing fees. We should embrace this trend.
TEP has been pushing flat fee structures for about two years now. Initially I was resistant but it's actually helped my business. Clients appreciate the predictable costs and I can focus on doing thorough work without worrying about fee negotiations.
PG&E requires flat fees for their preferred auditor program. The application process includes ethics screening and they specifically ask about fee structures. The utilities want to work with auditors who view themselves as consultants rather than bounty hunters.
Duke Energy told me flat out they won't work with contingency auditors anymore after some bad experiences. I've had to restructure my whole pricing model but it's working out better than expected. More predictable revenue stream too.
Entergy is moving the same direction. They want auditors who are focused on accuracy and professional service rather than maximizing recoveries. Had to adjust my approach but client relationships are actually stronger now.
Sounds like this is becoming the new normal across the industry. Going to need to rework my contracts and pricing structure. Thanks for the insights everyone - good to know I'm not the only one dealing with this shift.
Happy to share some contract language if it would help Rick. The transition was smoother than I expected once I made the commitment. Clients actually seem more confident in the audit process when they know you don't have a financial incentive to find problems that aren't there.