Break bad news? IMMEDIATELY! The truth will always, always, surface...it's only a matter of time. Suppose your client finds out before you tell them? Does that increase their trust in you, or might it get dinged a little bit?

Life is full of ups and downs. We're all big girls and boys here. We know that. Explain that you just became aware of whatever is wrong, and that informing them immediately was the only thing to do.

You might soften the blow with: "Do you want me to sugar coat this for you, or did you just want me to tell you straight out.?" (straight out is the most common answer, but be prepared either way.)

As for the bad news itself...if it was something that you did wrong, then admit it, apologize sincerely, and tell them what you are going to do to make it up to them...then do it! Listen, we may have to suffer some consequences for out actions. You might even fracture your relationship, but it most cases you can end up strengthening it. Good luck.