Throwing Money

Years ago I lost my shirt on a large project. It involved a Canadian company, they were already a customer of mine, a large US company and the US government. The contract was to be a 5 year contract with at least $250+ thousands/year for me. There were another 4 other guys in it. We all drooled at the possibilities. Think about it, a quarter million dollars per year each. I was the West Coast, one was Central Canada, another the US East Coast…

Because we were so diversified in place, style and work, we had to meet in Chicago, Toronto, and Ottawa… Then 11-Sep-2001 came, and the role the US government in the project changed¹! First they put a delay on the project until they figured what they wanted. Then every month at every meeting, they changed their position, their technical requirements²...

Meanwhile my expenses kept on climbing: hotel, airfares, equipment upgrade and new equipment... 2003 and still no contract. One guy, obviously the smartest of all of us, dropped. 2004 and still no contract, but more meetings... $$$$$

At the end of 2004, the "Boss" aka SWMBO³ wanted me to pull the plug, this was draining our financial resources. I still wanted to stay in, the quarter million dollars per year is still too good of a carrot. Finally in January 2005, I took a customer of mine, John, for lunch to discuss my situation and ask for his advice. It came to:

John: Can you see an end to the run around and a beginning date to the start of this work?
Me: No, not right now
John: Then stop throwing good money after bad. You'll never get that contract.

I thought about it, and the next week I did quit.

1. I just phoned one of the guy that stayed to ask him if the project ever went ahead and he said no.
2. Was this a scam? No, it was not a scam, but a very bad business decision. I refused to see the early warning signs of when they, the US Government started to change their requirements.
3. I can't give any detail of this project because of the contract/settlement. I got less than $10 000 US when I left the project under the condition that I wouldn't discuss the details of it.
4. I lost around $75 000 on this "stupid" project.