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I read through the post, is there something about how to make sure this doesn't happen? How to catch yourself falling down that slope? They suggested using Freelancers instead of agencies, and that seems like good advice in this context, but I am looking for frameworks that make sure this doesn't happen even in a different situation

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The two things that stand out for me would be:

1. Set deadlines, and hold people to them. Repeatedly missing deliveries means an end to the engagement.

2. Sunk cost. He should have fired this agency much earlier instead of throwing good money after bad.

For such a small project with such a tight scope I'd absolutely insist on a firm fixed price contract.

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