How to deal with the profit drain of scope creep

You may not have heard of the term “scope creep”, but if you’ve been running a business for any length of time, you’ve almost certainly experienced it.

It starts off as a little ask. “Could you just…?” It seems reasonable enough, so you do it. Then it develops into more work: can we add….? Could you change…? Let’s amend…?

When there are multiple requests that come without any consideration of the extra time it will take you and without any mention of additional payment, then you’re dealing with scope creep.

What is scope creep?

The term “scope creep” comes from the world of project management and is used to describe a situation where the customer keeps expanding the parameters of the job or asking for additional work that wasn’t in the original brief, without offering payment for the extra time that this will take you.
So, how can you spot scope creep, what you can do to avoid it, and how can you manage it when it arises?

1 – Work to a clear brief and contract

A lot of headaches can be avoided if you lay the groundwork for preventing scope creep while the job is still in the negotiation stage. Make sure you get a clear brief from your customer, and that it has clear limitations (e.g. you will install a new toilet, build a garden pergola, replace a window, or that you will work an agreed number of days on the project).

Set out the job and each side’s responsibilities in a contract which both parties should sign. You can even include a clause in your contract that covers the eventuality of scope creep by specifying your rate (per hour or day) for any work that exceeds the parameters of the job. Even if you never have to use it, this is a helpful reminder to customers that your time has value and needs to be paid for.

2 – Is the request reasonable?

Sometimes a request comes in and it seems like such a small job that you feel harsh to say no to it. If the request is reasonable and you can take care of it relatively quickly, the easiest thing to do might be to go ahead and do it. Indeed, many tradespeople include some contingency hours in their contracts, so that they have space to adapt the project to the client’s feedback, without this turning into an endless back-and-forth of spiralling work hours.

Quick fix jobs may be acceptable in order to keep your customer on side, but it doesn’t hurt to remind them that this was outside the original brief and that in future you would be charging for your time. This helps the customer out of their immediate need and shows a willingness to compromise, but also doesn’t let them take you for a ride.

It’s tricky to find a balance between keeping customers happy whilst not being a doormat and working lots of hours for free – no one can afford to do that!

3 – Respond to the request with a quotation

If the job looks to be getting bigger and bigger or a request is made that is obviously outside the scope of what was initially agreed, it’s best not to just do it for free. This sets up a dynamic in your relationship with the customer where they expect you to undertake extra work for free, which is not a pattern that you want to encourage.

Let your customer know that, yes, you’d be delighted to help them, and this will be the fee for the extra work. Be polite but firm on this – a legitimate business should never ask a tradesperson to do extra work for free. If they have a quote for the job, they can evaluate how much it’s worth to them and decide whether to give you the extra work (and money) or to sort out the problems themselves.

4 – Just say no

If you’ve completed your assigned tasks and held up your end of the bargain, you’re completely within your rights to say no and refuse the extra work, especially if it looks like no further payment will be forthcoming, or you have work for other customers that needs taking care of.

It can be nerve-racking saying no to a customer, particularly if it’s someone that you are hoping to work with again. If you’re polite but firm, a good customer will be respectful of your time and your need to earn a living.

Almost every tradesperson will face scoop creep at some point in their career. Often it’s down to a misunderstanding, but sometimes the client might have unrealistic expectations. But hopefully this guide will help you to avoid the dreaded scope creep in the future!

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