Fill in the Blank

An electrical contractor is evaluating the performance of a newly hired service manager who is running a $6,500 residential rewiring job. During the project, the customer requested two extra outlets in the home office. To prevent any customer friction and ensure a positive online review, the service manager verbally agreed and instructed the team to perform the extra work for free, arguing that 'absorbing a small cost builds unbeatable customer goodwill.'

In evaluating the financial and operational impact of the service manager's decision, the contractor must reject this action. Although building goodwill is important, absorbing extra costs without formal documentation is a failure of scope protection that gives away free labor and materials, leading to direct profit loss. To properly balance customer loyalty with business sustainability, the contractor must establish that any requested work beyond the original contract must be warmly acknowledged but strictly routed through a formal ____________ before any work is performed.

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Updated 2026-05-17

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