Whether a software development, creative design, implementation or migration project, scope creep is a fact of digital life.
Handling it properly can cement client relationships and help build trust; ignoring it can lead to soured relations and a heck of an uphill struggle to win back client confidence.
If not handled properly, scope creep can either lead to:
The provider carrying out extra work outside any fixed price quoted without getting paid, or the anticipated project margins decreasing, and/or
The client is hit by a bill or delays that it wasn’t expecting, which can irreversibly damage relationships.
Having solutions in place to manage this inevitability can save time and increase revenues.
The best solution will comprise both contractual and commercial measures.
Contractual measures
A good contract will have a change control process in place, which is workable for the provider to manage. The benefit of a contractual change control process is that it anticipates the inevitability of change and sets out a way in which the parties agree to contractually handle that change.
Change control process
A change control procedure provides a way to assess, document and prioritise changes to the original services. It should allow the provider to stop, consider and document the change requested by the client – particularly in relation to original timings, price and priorities.
While following a change control procedure for small changes may seem over the top, it’s important to remember that numerous small changes can have a big overall impact on timescales and fees.
Scoping and pricing
Unless the services that are being provided for a stated price are clearly defined, it will not be easy for the provider to identify or for the client to understand why a change control has been triggered. The more clarity in the contract, the easier for the provider to manage and the harder for the client to argue! (It is also important that the contract clearly sets out what is included within the price and any assumptions/parameters on which the price is given).
Commercial measures
Roles and responsibilities
The relevant people on the front line need to be able to identify when a “can you just…?” from the client triggers a “change control” under the contract, and then they need to know how to handle it (i.e. are they trained to immediately raise with a nominated contact at the clients, or is it escalated for someone else internally at the provider’s to assess and manage client expectation). This will be bespoke to the provider, depending on the size and structure of both provider and client.
Knowing the parameters of contractual service scope
This does mean that the relevant personnel of the provider will require a level of understanding of the contractual parameters of the scope of the service, along with an understanding of price and perhaps some common triggers or “can you just…?” requests that trigger a change control.
Can you make the zeros work for you?
Even if a provider decides not to charge for a change as it does not impact the price, timescales or any other aspect of the project, there may be some merit in letting the client know. As well as building up goodwill, it will familiarise the client with the concept of change – making it easier to raise a chargeable one later down the road.
Whatever solutions a provider chooses, the entire legal-commercial hybrid should be proportionate to the contract. It needs to facilitate change – not hinder it.
If you have any questions, please contact tracey@law-point.co.uk or call 01202 729444.
