“Contract or Scope Change Management”:
Changes that increase or decrease scope (work), require increased estimating effort, increase or decrease in work effort hours, increase or decrease in equipment or supplies, increase or decrease in equipment supply usage or require increase or decrease of money being spent.
Scope Change or Scope Creep if uncontrolled and unpaid for can be very costly in time and money to all size business. Before a company realizes, the profits begin to slip away and more effort is spent with less net income to show for the hard work.
In order to avoid unrealized scope creep (work being executed without being paid for) a base must be set for the changes to be measured against. This base is called “The Contract”. Regardless of business size, contracts are an important part of running a profitable and efficient business. Lack of pertinent content in a contract can have negative monetary impact on a business – be it actual dollar amount or time spent (converted into dollars).
Contract Change Management starts with first establishing a solid contract. In order to quickly identify changes, cost impacts and who is responsible, you need to ensure all contracts contain specific expectations and remedies. Along with the legal statements on a contract, I believe all contracts should contain a Task Definition Statement, Assumptions and Exceptions.
Regards,