Understanding and Preventing Scope Creep in Contracting

Scope creep is a problem that contractors in many trades have to deal with. It happens when the project's goals become bigger than what was agreed upon at the start. This usually means higher costs and longer completion times.

What is Scope Creep?

Scope creep happens when additional tasks and requirements are added to a project after it has begun, often without corresponding increases in budget or time. This can force workers to do more work for the same pay, which cuts into their profits and makes projects take longer to finish.

Common Causes of Scope Creep

1. Improper Expectations: Failing to set clear expectations with clients at the beginning of a project can lead to misunderstandings and additional work.

2. Problems on the Job: Unforeseen issues, such as termite damage discovered after opening a wall, can necessitate additional work.

3. Indecisive Clients: Clients who are unsure of what they want can cause delays and changes that lead to scope creep.

4. Clients Wanting Freebies: Clients may ask for small favors that add up over time, leading to significant additional work.

5. People-Pleasing Contractors: Contractors who aim to make clients happy at all costs may agree to additional tasks without proper compensation.

How to Prevent Scope Creep

1. Set Clear Expectations

It's important to make sure your clients know what to expect during the sales process. This includes talking about deadlines, the scope of the job, and any problems that might come up. For instance, if you're remodeling a bathroom, let the homeowner know that there might be problems like wood rot around the toilet flange that were not planned for and how they will be fixed.

2. Provide a Detailed Scope of Work

A clear scope of work should spell out everything that is part of the job. In this way, there are no mistakes and everyone is on the same page. Instead of saying "Remodel bathroom," say something like "Remove all trim, appliances, fixtures, and drywall down to the studs; replace all plumbing and electrical from the subfloor up."

3. Charge for Change Orders

Implement a policy of charging for change orders. This not only covers the cost of additional work but also discourages clients from making frequent changes. For example, if a client decides to switch from quartz to granite countertops mid-project, charge a fee for the change order in addition to the cost difference.

Action Steps

1. Create a Detailed Scope of Work Template: Develop a template that includes all possible tasks and materials for your projects. This will save time and ensure consistency in your estimates.

2. Educate Your Clients: Take the time to explain the scope of work and set expectations during the initial consultation. Make sure clients understand what is included and what will incur additional costs.

3. Implement a Change Order Policy: Establish a clear policy for handling change orders, including a fee for making changes mid-project. Communicate this policy to your clients upfront to avoid misunderstandings.

By following these steps, you can significantly reduce the likelihood of scope creep, ensuring that your projects stay on time and within budget. Remember, the key to preventing scope creep is clear communication and detailed planning from the outset.

Resources

Join my free Facebook group for Contractors: https://www.facebook.com/groups/contractorprofitblueprint

Free Sales Guide: https://theprofitclub.hammerandgrindpodcast.com/sales-training-optin

Profit Journal: https://www.lulu.com/shop/brad-huebner/profit-journal/paperback/product-ype4j9.html?q=profit+journal&page=1&pageSize=4