A: We invoice clients quarterly based on our hourly rates and time incurred. Please e-mail ClientService@Boschan.com to request a fee estimate based on our hourly rates.

 

We also require an up-front retainer of U.S. $10,000, which is our minimum fee and which we hold until we apply it to the final invoice(s) (of course if there is a retainer balance at the end of the engagement, we refund it to the client).

A: At Boschan Corp., we appreciate your desire to know with certainty what your audit or other engagement will cost, particularly the upper limit.

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However, we cannot agree to so-called "fee caps" because of the following reasons:

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• Boschan Corp. cannot control how cooperative the counterparty is.  Counterparties are more cooperative with some clients and less cooperative with others, the latter of which drives up engagement costs.
   

• Often the scope of the engagement changes during the engagement
   

• In certain cases, work in addition to what was originally contemplated may be merited based on preliminary findings

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Caveat emptor to clients who demand fee caps: when one agrees to a fee cap with a service provider, one is relinquishing control to the service provider to unilaterally decide where to cut corners if the budget cap is too low to cover everything that should be completed. These decisions are nearly always hidden from clients.  Or, because the engagement becomes unprofitable, it is de-prioritized by the service provider.

 

Instead, we like to put the power of knowledge in our clients' hands and work with our clients' teams to make smart, strategic decisions on where to focus limited resources (because all resources are limited).

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Therefore, our approach is to work in phases within reasonable budgets, report back to the client team after each phase and agree on what will be done (and what the budget will be for each phase).  We believe fees should be fair to both parties - the client and the service provider.