Scope Creep
The gradual expansion of project requirements beyond the original agreement, often without corresponding budget or timeline adjustments. Scope creep is one of the leading causes of project overruns and profit erosion.
Definition
Related Terms
Statement of Work (SOW)
A detailed document that defines project scope, deliverables, timelines, milestones, and terms. A well-written SOW prevents scope creep and sets clear expectations for both agency and client.
Change Order
A formal document that modifies the original project agreement when scope, timeline, or budget changes. Change orders protect agencies from scope creep by making scope changes visible and billable.
Project Profitability
The financial performance of individual projects, measured by comparing revenue to total costs (labor, overhead, materials). Tracking project profitability helps agencies identify profitable vs. unprofitable work and improve pricing.
Related Resources
Frequently Asked Questions
How can agencies prevent scope creep?
Prevent scope creep by creating detailed statements of work with explicit inclusions and exclusions, getting client sign-off on project specifications, setting clear revision limits, and addressing scope changes immediately with change orders rather than letting them accumulate.
What should you do when scope creep occurs?
Document the additional work, explain how it differs from the original scope, and present options: approve a change order with additional fees, remove something else to make room, or defer to a future phase. Address it immediately rather than letting it accumulate.
Is some scope creep inevitable in agency work?
While some flexibility is normal, excessive scope creep indicates poor scope definition or boundary-setting. Successful agencies treat scope management as a core competency and use clear processes to handle changes professionally.
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