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Scope Creep is a Pricing Problem

Scope creep does not happen because clients are difficult. It happens because projects are priced incorrectly.

The Real Cause of Scope Creep

In five years of client projects, scope creep has never been caused by a difficult client. It has always been caused by a pricing model that did not align incentives. When you charge hourly, the client has every incentive to add features ÔÇö it is your time, not their money at risk. When you charge fixed-price, you have every incentive to do the minimum ÔÇö over-delivery hurts your margin.

The Phase Model

We price in phases. Phase 1 is a discovery and scoping engagement (fixed price, short duration, ends with a detailed spec). Phase 2 is the first working version (fixed price, based on the spec). Phase 3+ is iteration (monthly retainer or per-sprint fixed price).

Why Phases Solve Scope Creep

Each phase has a clear deliverable and a clear price. Adding something new means adding a new phase or renegotiating the current one. Clients understand this intuitively ÔÇö it mirrors how they buy everything else.

The Discovery Phase as Insurance

The discovery phase (Phase 1) is the most valuable thing we sell. It forces clients to articulate what they actually want before we start building. It forces us to understand the domain before we price the build. Projects with a discovery phase have 3x fewer scope disputes than those without.

When to Allow Scope Changes Mid-Phase

Small clarifications (something was ambiguous in the spec) are absorbed. Feature additions trigger a change order. The rule of thumb: if implementing it takes more than 4 hours, it needs a change order. This threshold is documented in every contract.

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