Software development and construction work both face some key challenges. A common challenge in both industries is staying within the project’s defined scope while ensuring the project is profitable.
At the outset of a construction project, there’s often considerable uncertainty for both the builder and the client. As time goes on, the client may change or have new requirements. If the adjustments are minor, the builder or contractor is usually happy to accommodate the changes, even if they’ve agreed to a fixed price. However, it will be different if clients decide they want something like high-end bathroom fittings or extensive alterations to the porch. Changes like this, made after the project has begun, will affect the amount of labour needed to complete the project, the resources, the project timeline – and, of course, costs.
In software development, things are similar. Clients might introduce new ideas or additional features once the development is in progress. For example, they might want to add two-factor authentication for security or a ‘Sign-In With Google’ option even if these weren’t part of their initial plan. Such changes can extend the project’s timeline, strain resources, and increase costs.
It’s clear that, in both scenarios, major changes can pose challenges for the construction or software company. The companies initially provide clients with a cost estimate that includes an extra amount to cover minor adjustments. This flexibility can handle small changes in the project’s early stages. However, significant changes later on can squeeze the budget to breaking point. In such cases, the company might need to reject client requests or impose additional charges, and both outcomes can harm the company’s relationship with the customer.
To prevent this potential conflict, the company and client should establish clear guidelines that both parties understand from the outset. This agreement should outline the project scope, detailing precisely what it includes and doesn’t include. In addition, it should explain what happens if a client asks for significant changes. If the company decides to undertake these without charging extra, it can inform the client that this is a goodwill gesture.