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At Arm's Length

Rework, and Who Pays for It

Who absorbs the cost of doing something again is decided in every engagement, including the many where nobody decides it, and the answer shows what was sold.

Rework at their own costRejection against specificationA performance processWithholding payment

Reads as a businessReads as employmentCuts both waysDepends where you are

Four factors, and no total. Every bar is the same length: the side is the claim, the size is not. Correction is commercial here, and it is slower and blunter than the thing it replaces.

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Who absorbs the cost of doing something again is decided in every engagement, including the ones where nobody decides it. The answer reveals what was actually bought more clearly than any document.

The commercial issue in “Rework, and Who Pays for It” is easier to resolve when scope, time and approval records can be checked by both parties. When reviewing consult the appropriate landing page for how to handle multiple clients, use those records to reconcile delivery and invoicing, while keeping tax status and contractual remedies with the people responsible for them.

It is also where the greatest number of commercial arguments between buyers and suppliers actually occur.

The Forrester business-technology articles offers useful outside context for “Rework, and Who Pays for It”. Its value is in producing better questions about scope, ownership and evidence, not in deciding a contractor’s legal status.

The three causes, which have different answers

Work gets done again because it did not meet the specification, because the specification changed, or because somebody in your business changed their mind.

The first is the supplier's cost. The second and third are yours. Most disputes are really disagreements about which of the three happened, and they are unresolvable when nothing was written down.

Why the supplier carrying it matters

A supplier who redoes substandard work at their own cost is carrying the risk of their own quality. That is close to the centre of what operating a business means, and it is one of the few factors that is hard to argue about afterwards because the money either moved or it did not.

It is also, from your side, the thing that makes a fixed price worth paying: you are buying the outcome, including the risk of it taking two attempts.

The buyer who absorbs it anyway

Very common, and it happens out of decency. The work was nearly right, the supplier is good, nobody wants a fight over two days.

Done once, that is a sensible commercial judgement. Done as a pattern, the supplier never actually carries quality risk, which means the arrangement has quietly moved and you have been paying for days all along.

The buyer who will not absorb anything

The opposite, and it costs more than it saves. A supplier made to redo work caused by your own changed mind, twice, prices the next job to cover it or declines it.

The cost of being unreasonable about rework is invisible because it arrives as higher quotes from the suppliers who have learned, and as good suppliers quietly becoming unavailable.

Putting it in writing

One sentence in the engagement settles nearly all of it:

Work that does not meet the specification is corrected at the supplier's cost. Changes to the specification, including changes of mind, are agreed and priced before the work is redone.

That is not legal drafting and it does not need to be. It is a shared statement of which of the three causes falls where.

The grey case: ambiguous specification

The honest hard one. The specification could be read two ways, the supplier read it reasonably, and the result is not what you wanted.

Neither side is wrong, and the fair answer is usually to split it. The useful thing is to treat it as a defect in the specification and fix the wording, because a specification that can be read two ways will be read the other way again.

Rework as a quality signal

Across a year, how often did a supplier's work need doing again at their cost? It is a crude measure and it is the only objective one most buyers have.

A supplier with none has either been exceptional or has never been held to the specification. A supplier with a great deal is telling you something that no amount of feedback is going to change, and the instrument for that is in the next articles.

The limit of the instrument

Rework at the supplier's cost makes them bear the consequence. It does not make the work better next time, and that distinction matters.

An employer can correct and develop; you can only decline to pay. Where a supplier's work is consistently wrong, the available response is not improvement but selection, and the earlier you accept that the cheaper it is.

When it is too late to redo

Some work cannot be corrected: the campaign ran, the deadline passed, the thing was already used.

That is what remedies other than rework exist for, and they belong in the engagement rather than in a conversation afterwards. A buyer whose only remedy is rework has no remedy at all for the work that mattered most.

The last three times it happened

For the last three things that had to be redone, establish which of the three causes it was and who ended up paying.

Most businesses find they cannot answer the first question, which is the whole problem, and that they paid in all three cases, which is the consequence of not being able to answer it.