Our client is planning a big web-based cloud project. They have received funding via one of the European Union funding programmes, so they have a decent budget. We discuss every detail of a project and a timeline. It is a big project; it involves seven people from our team, and our projected time to complete this project is six to eight months.
We set up a budget and the client agrees. Based on European funding requirements, there is a thing called “funding intensity”, which means that the EU will fund a part of a project (in this case 80%), so the client needs to have 20% of the whole budget.
One day, we receive an email from a client, saying they’re choosing another supplier for this project. I call them and basically find out that the head of their commerce department has a relative who will do it for a small fraction of our budget with a template. I triple-check that they understand the scope of a project and that it requires a team of senior specialists if they want to have a quality product, and I warn them that a template will not be sufficient. They say their head of department has made a decision, so I simply wish them good luck with a project.
I think this is a corrupt move; they will try to “sell” this to the funding agency for a bigger amount, and then share the leftover amount.
About six months later, they call us to say that the EU funding agency is refusing to fund it, as it lacks essential functionality. We ask them to send us what they have.
They send a very simple template-based site, something you could get for about 500 Euros from a freelancer constructing template websites.
Me: “Well, what you have is simply nothing compared to what you really need based on your requirements.”
Client: “Can you do something? Can you tweak it?”
Me: “No, it is unusable. If you need what we discussed six months ago, you need to do it from scratch.”
Client: “Okay, can you do it from scratch?”
Me: “Sure, but that will take six months. Is that okay for you — and especially for the funding agency?”
Client: “What? No, the agency gave us one month.”
Me: “I am sorry, but there is nothing we can do.”
Client: “What? Do you understand that this means we will lose this entire funding and will have to return advance payment?”
The agency usually gives 25% of the whole funding as advance payment. My guess is that they have none of this money anymore.
Me: “Yes, I understand, but again, there is nothing we can do.”
They lost the funding, and they had to return the advance payment. To this day, they somehow think it is our fault.