Problems
What will AGI do for Fixed Fee Engagement Overruns?
Professional services firms and agencies routinely lose their profit margins on fixed-fee contracts when the actual hours required to deliver the work exceed initial estimates. Engagement managers and agency owners secure these contracts to offer clients predictable pricing, but assume all the execution risk. When client revisions multiply or internal delivery stalls, the fixed revenue remains static while labor costs compound, effectively turning a profitable project into a net loss.