- The costs become uncapped and always end up more, with no accountability. After a certain while, sunk cost factor kicks in and it's too late to back out when

- The costs become uncapped and always end up more, with no accountability. After a certain while, sunk cost factor kicks in and it's too late to back out when you realize this developer is slow or not so great. Good confident developers will be able to estimate costs for projects upfront. - You either lose the payment or ask for refund. I have done both. That's the risk. You can perhaps lower the risk by giving a much smaller initial milestone or negotiating first payment after some work. - With crazy claims, the suspicion is already high. I talked to him for a few mins and it was clear there was no sophistication present and the guy was trying to attract clients with little to no experience. Are you already working on a project or planning to?