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Honestly you hit the nail on the head here:

> If you're an agency and your dev went wild doing random stuff, you don't pass that on to the client (unless you're an unethical outfit like this one), you eat the costs and talk to the dev about better structuring their work.

Additionally, if he was “such a small % of their total revenue” it should have been nothing at all to eat the inappropriately high costs on this project.



Exactly. There are 'billable hours' and 'non-billable hours'.

Work outside of a contract scope is not billable.




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