🇦🇺Australia

Unbilled Out-of-Scope Services

2 verified sources

Definition

Scope creep occurs when client requests exceed the defined project scope without updated billing, resulting in unpaid work for professional services firms.

Key Findings

  • Financial Impact: AUD 10-20% project revenue loss per engagement due to unbilled extras
  • Frequency: Per project with dynamic client requests
  • Root Cause: Manual scoping and lack of real-time billing adjustments

Why This Matters

The Pitch: Business Intelligence Platforms in Australia 🇦🇺 lose 10-20% of project revenue to unbilled scope creep. Automation of scope tracking and instant billing eliminates this risk.

Affected Stakeholders

Project Managers, Accountants, Billing Teams

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Superannuation Guarantee Shortfalls

200% SG Charge on shortfalls (e.g., AUD 23,000 on AUD 11,500 unpaid super)

STP Phase 2 Payroll Reporting Delays

AUD 300-3,300 failure-to-report penalty per employee + 10-15 extra Accounts Receivable days

Delayed Invoicing GST Compliance Errors

AUD 200-1,100 late lodgement penalty per BAS + 2-5% revenue delay impact

Customer Friction Churn

2-5% annual revenue churn (industry standard for SaaS/BI platforms with manual retention processes)

Decision Errors

AUD 50,000-200,000 per major contract (based on typical BI deal sizes and 10-20% error margin in manual renegotiations)

Revenue Leakage

1-3% of annual recurring revenue (ARR) from missed billing and upsells

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