Dealing with scope creep is difficult, but it feels nearly impossible when working under a fixed-price contract. We keep getting "small" requests from the client that are starting to add up to significant overages. How do you draw the line without damaging the client relationship, and what specific documentation or change control processes do you recommend to protect the project margin?
3 answers
Fixed-price contracts require a very rigid Change Control Board (CCB) process. You must have a clearly defined "Statement of Work" before the project kicks off. Whenever a "small" request comes in, I use the phrase: "That's an excellent feature; let’s evaluate its impact on the current timeline and budget." By quantifying the cost of every small change, the client quickly realizes that nothing is truly free. Documentation is your best friend here; never agree to a change over a phone call without a follow-up email and a signed Change Request form.
Jennifer, do you find that being too rigid with the Change Request form at the start of a project can sometimes create a hostile 'us vs. them' dynamic with a brand-new client?
I always suggest keeping a "Phase 2" list. It acknowledges the client's ideas without letting them derail the current fixed-price sprint or delivery phase.
Great point, Laura. A Phase 2 list is a psychological win because the client feels heard, but the project's current scope stays protected and on track for the deadline.
David, it's all about the delivery. If you frame it as "protecting the project's quality and deadline" rather than "charging more money," clients usually respect the discipline. I explain that every undocumented change adds risk to the final delivery date, which they care about.