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ARTICLE · 18 DECEMBER 2025

Why IT Projects Fail: Price Revisions

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One of the major reasons that IT projects fail is due to commercial and pricing issues. Economic shifts that take place during the term of a contract can impact the cost of goods and services...

South AfricaMedia, Telecoms, IT, Entertainment
Wilmari Strachan
Wilmari Strachan
Naledi Ramoabi
Naledi Ramoabi
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One of the major reasons that IT projects fail is due to commercial and pricing issues. Economic shifts that take place during the term of a contract can impact the cost of goods and services, creating a need to revisit the agreed pricing structure. If the parties are unable to agree on fee adjustments, this often results in disputes or the termination of the project.

In the last part of this series, Why IT Projects Fail, we discuss the often overlooked, yet critical, price revision clause. To catch up on the other articles in the series, click here.

The purpose of a price adjustment clause is to facilitate discussion between the parties to ensure that fair and transparent price adjustments can be made during the term of a contract and/or on renewal. It enables the agreed price for services to be revised in response to specific changes or pre-determined instances. Price adjustments may be necessary for several reasons, including circumstances when:

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