How do you price and structure a market entry study when the client wants a go or no-go answer?
Say a regional operator asks a consultant to scope a study on whether they should enter a secondary metro with a 200-unit build-to-rent pipeline. They want a recommendation rather than a data dump. A sensible draft scope has rent comps, absorption from the last three delivery cycles, permit pipeline, and interviews with two local brokers and a municipal planner. Priced out, that lands near 28k, roughly 90 hours at 300 plus data costs around 2.5k for the CoStar pull and a demographic subscription. The part that is hard to settle is the liability shape of a go or no-go. If the consultant hands over a recommendation and the client commits 40m and absorption comes in at half of what the permit pipeline implied, the consultant owns the memo. If the consultant hands over a range and lets the client decide, the client will say they paid for judgment and got a spreadsheet. How are people structuring the deliverable so the recommendation is real but the conditions under which it holds are on the page? Some engagement letters list explicit assumptions with a clause saying the conclusion is void if any of them moves more than a stated threshold. That feels like it works until the client's lender reads it. Also worth knowing whether anyone prices the go or no-go higher than the same work delivered as a findings memo, and by how much.