01 / FREE AGENCY TOOL
Separate a scope change from an estimation mistake
An extra hour is not automatically chargeable to the client. The original agreement may already include the work, or the agency may have underestimated its effort. A change request should describe a new deliverable, requirement or constraint relative to the agreed baseline. Use this tool to understand the economics first, then decide who owns the change and how it should be handled commercially. The output does not create client approval or a contractual entitlement.
02 / FREE AGENCY TOOL
Include the downstream delivery effects
A small request can trigger more than the production task itself. Consider testing, project management, a new review round, documentation and a delayed handoff. Estimate the incremental hours across all affected roles and use an appropriate blended cost. Avoid exaggerating the impact, but do not omit coordination simply because it is less visible. If the change also adds a supplier bill, include that expense in the wider revised project model.
03 / FREE AGENCY TOOL
Work through a concrete example
The prefilled example is a planning scenario, not a customer result. Agreed project fee: $12,000; Original delivery hours: 120 hours; Unpriced extra hours: 30 hours; Average hourly delivery cost: 50 $/hour; Other direct costs: $1,000. Change these values to match your situation, then calculate again. Save the CSV if you want a record to discuss with a colleague or compare with a later review.
Extra cost = extra hours × hourly cost. Revised profit = fee − original cost − extra cost. To preserve the original margin, additional fee = extra cost ÷ (1 − original margin).
| Result | Example output |
|---|---|
| Cost of unpriced extra work | $1,500.00 |
| Revised direct profit | $3,500.00 |
| Revised direct margin | 29.17% |
| Fee increase to preserve original margin | $2,571.43 |
04 / FREE AGENCY TOOL
Understand the margin-preserving fee
Recovering only the extra cost restores the original absolute profit, but it usually lowers the margin percentage because revenue has increased. Preserving the original percentage requires dividing extra cost by the original cost-to-revenue ratio. The calculator shows that fee increase when the original cost is positive. This is a reference point for negotiation, not a mandatory price; value, timing, risk and the existing agreement still matter.
05 / FREE AGENCY TOOL
Offer a specific choice rather than a vague objection
Describe the requested change and its effect on budget or schedule. The client can approve an additional fee, exchange an existing deliverable for the new work, defer it to another phase or decline it. Give each option a clear consequence. A calm, bounded decision is easier to approve than a complaint about excessive revisions. Capture the decision where the delivery team can find it before assigning the changed work.
06 / FREE AGENCY TOOL
Feed the learning into the next project
After delivery, compare the changes with the original proposal and review process. Repeated requests may reveal a missing discovery question, unclear acceptance criteria or a service package that needs to be redesigned. Improve the scope language and estimate instead of assuming every future client will be more disciplined. Track unpriced changes separately from approved additions so that a higher final invoice does not obscure how much unplanned work remained unfunded.
THE PRACTICAL DETAILS
Questions, answered.
Can I send the result as an invoice?
No. Obtain approval through your agreed change process, then invoice the approved amount using the appropriate workflow.
Does this include extra supplier costs?
The extra-work field models hours. For a supplier-cost change, also review the project-profit calculator with revised direct expenses.
Why is the suggested fee above the extra cost?
It preserves the original margin percentage. Charging only the extra cost preserves absolute profit but reduces the percentage of revenue retained.
What if the original project has zero cost?
A 100% original margin cannot be preserved at a finite fee after adding cost. The tool marks that result as undefined.
What if we deliberately absorb the change?
Record the decision and its cost. A deliberate relationship investment should still be visible in the project economics.