How to deal with project scope creep

Man saying 'stop'

Those of us trying to move away from charging an hourly rate can suffer when clients expect more than initially agreed. So how can you avoid project scope creep?

In an earlier article (Pricing strategies: Hourly Rates – no thanks!), some great questions were raised in the comments.

Readers were intrigued with the idea of moving away from an hourly rates mentality, but wanted to know:

What happens when your client asks you to do more than you had originally agreed and quoted on?
How do you escape working at an hourly rate when this happens?

This article aims to address these questions, which amount to something I call project scope creep.

As with most things in business, getting what you want comes down to communication. To ensure you're not susceptible to scope creep, you need to ask the following:

1. What protection do I have in my quotes?

Whenever you submit a quote for a piece of work, you should always make sure you include a statement that outlines what you will do if the scope of the work changes or increases. For example, you might say:

In the case that additional work is required beyond that outlined in this quote, <your business name> will provide a further quote based on the scope of this work.

In the event that the scope changes or increases materially, <your business name> will requote based on the new or additional scope.

This inclusion lets your clients know that your process is to requote formally, rather than just begin to work at an hourly rate. Set the expectation up front and you’ll have no trouble implementing it when you need to.

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2. What sort of relationship do I have with my clients?

Most soloists I know are very focused on providing service. Often it’s what sets them apart from their competition. But you want to be careful that this focus doesn’t result in you having a ‘servant-master’ relationship with your clients.

A relationship where they say ‘jump’, and you ask ‘how high?’

If you are stuck in this servant-master groove, your first instinct is to agree to the customer's wishes, regardless of their impact on you. So when they ask if you can spend just a couple more hours on a job, and charge them on an hourly basis, your first instinct might be to say yes.

Now imagine you have an equal relationship with your clients - they have a need which you are filling, they value your expertise, and you value their custom – equally. Under these circumstances you would respond to the same request differently.

Firstly, you would make a decision about whether you wanted to do the work, or whether you wanted to recommend someone else.

Sometimes our clients ask us to do things just because we are there, not because it’s actually our specialty or our desire! It’s okay to say no – you are actually reminding your clients about your niche, which is the very reason they hired you.

Assuming there are times when you do want to continue doing the work, you would remind the client of your process, which is clearly stated in your original quote. You might say:

"I am happy to do this work. I charge based on completing a specific job, not by the hour, so I will provide you with a new quote based on the job as you’ve described it."

If you are committed to moving away from hourly rates, then you need to be just as committed to finding ways to quote for a job, regardless of how small that job is. Even if it is only going to take a few hours to complete, it’s still more about the value you are providing than the time you are spending.

Megan Tough runs Complete Potential, a company that helps businesses solve their strategy and people problems. She loves being a solopreneur, and when she doesn't have her nose to the grindstone, is fulfilling her other passion of fitness and health.

12 Oct 05

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Excellent thoughts. Thank you. Karen C from Springwood NSW
Isn't it incredible how we can get sucked into 'scope creep' just by simply wanting to 'do the right thing' . I really like your suggestions, Megan, becaus 'the right thing' can only work both ways ! Grant Hyman from Sydney | Read my articles
Great concept Megan. However, once you are working as a consultant within an organisation it can be difficult to excise yourself from being asked to do all manner of little tasks (get the muffins for the roadshows, book the Xmas lunch etc), which inevitably makes it difficult to a) complete larger, strategic projects, b)demonstrate value to the organisation you are working with, c) complete tasks within the time allotment. Is it possible to re-affirm your role and value as a consultant and renegotiate your pricing half way through a relationship? How would you go about it, so that you don't come across as being prickly? Vicki E from N.Z
I completely agree with avoiding hourly rates - and this works well for me usually, except for client changes. I am in a design industry, and it is common to get additional changes than I have budgeted for. I have never come up with a solution for this as re-quoting doesn't work and a client wnats to know how long it will take... it doesn't take a genius to work out what the rate is then...? Any advice??? Justin from Sydney
Justin - I would have thought that in the case of client amendments, it is fine to state in your proposals something to the effect: "Any amendments over and above those allowed for in this quote will be recorded, itemised and charged at an hourly design rate of $xx or will re-quoted as a project fee". This does not imply that all your work is calculated at this rate, but at least alerts your client to the principle of charging for amendments. Robert Gerrish from Sydney, Australia
Scope creep is quite common in many IT projects such as software and website development. In my experience I have noted a few key points that have helped me with this problem such as: 1) Making sure that the client really understands what they want out of the project 2) Organising specifications and signing off on them 3) Being upfront about how you handle additional costs 4) Have milestones on the project and get the client to sign off on each one 5) Cummunicate with the client and don't guess what they might like 6) Have a wish list, sometimes you just can't do everything at once so it is better to prioritise your spending. Ian from Gold Coast, QLD

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