What's your approach to pricing complex or uncertain jobs?

We're seeing an increase in jobs where the full scope isn't clear until we're on-site—older systems, hidden damage, customer uncertainty about what they actually need. This creates tension between wanting to win the work and protecting margin.

I'm interested in how your teams structure pricing for this scenario. Specifically:

  • Do you lead with time-and-materials, or do you find ways to cap exposure while still quoting?
  • How do you communicate uncertainty to customers without undermining confidence?
  • What percentage of your revenue now sits in this "discovery" category?

Our current approach is creating friction between sales and operations. Sales wants to commit; operations wants contingency. I'd like to understand how others have resolved this tension.

Parents
  • okay so basically what we started doing is this thing where like if its commercial we just dont do fixed anymore for anything over i want to say 3k? and for residential we have these good better best options but the best one is basically time and materials with a soft cap that we discuss up front

    had a job last month where we quoted 4k and ended up at 11k because of how the building was wired. customer was mad but we had the emails where they declined the t&m option so. lesson learned for them i guess

    pro tip: always get it in writing which option they picked and make them initial it. saved us on that one

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  • okay so basically what we started doing is this thing where like if its commercial we just dont do fixed anymore for anything over i want to say 3k? and for residential we have these good better best options but the best one is basically time and materials with a soft cap that we discuss up front

    had a job last month where we quoted 4k and ended up at 11k because of how the building was wired. customer was mad but we had the emails where they declined the t&m option so. lesson learned for them i guess

    pro tip: always get it in writing which option they picked and make them initial it. saved us on that one

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