How to Stop Open Ended Contracts

What do you do if the client keeps changing their mind and the end just seems to keep extending outwards?

This is a common problem where the project just goes on for longer than you expect. The following tips should help, depending on the specifics:

1. Have very clear completion criteria agreed with the client. There should be no ambiguity about whether you have finished or not. If the client changes their mind having agreed the completion criteria, then you need to invoke your change management procedures and bill the client extra accordingly.
2. Be clear about the risks on your side of the contract. For instance, if you are dependent on a contribution from the client for you to be successful, then this needs to be clearly defined and if they don’t honour their side then you should have escalating fees to reflect the extra work that you must do.
3. I also like to stage large contracts so that there is room to negotiate higher fees for later deliverables if there are uncertainties upfront. For instance, I deliver the first deliverable for the agreed fixed price. If during this stage I resolve an uncertainty that will suggest that the next stage could be a higher cost, then I negotiate that before starting the next stage.

It is important to always have in mind the client’s best interests. I have always found that with this attitude firmly in place, the client has always respected that difficulties may arise and is open to re-negotiation where you have been open and honest.

Tags: Contracts, Deliverable, Negotiation