Saturday, March 27, 2010

Ignocharlabidding (Cheat 'em to Win 'em)

Charlabidding is the act of underbidding a contract, landing the client, and then over the course of the project asking for more money to cover the costs of what the customer really wanted/needed.

Ignocharlabidding is doing this ignorantly.

While ignocharlabidding is not as ethically wrong a charlabidding it is still very devastating to the community. This usually occurs when a contractor ignorantly underbids a project, and by the time it is recognized by either party the money is gone and the customer has to decide whether to put more money into the project or try to find another vendor. Since this is usually a small business transaction, the owner doesn't have the money to start over so he puts more money in hoping that will be the end of the over-run. This cycle usually repeats itself until a poor product is release or the customer becomes too frustrated to continue the engagement.

The harm done by ignocharlabidding is usually two fold: It sours the customer, and it puts money in the pocket of an ignorant charlatan rather than a legitimate knowledgeable contractor. So the bidders that knew what they were doing, and could have produced a good result, are left with nothing. The ignorant contractor has just survived for another couple months to live and bid again. And finally there is poison in the community that prevents or discourages other business owners to try to enter a new technologicaly realm.