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Monday, April 21, 2014

#041 - All I want is a little change to the Project Scope...

The Cost of Change

We have all heard about how the cost of change increases exponentially the further you are along the path of project delivery. If the unit of effort is, say, (1) at requirements stage to accommodate a feature change, in design it increases to (10x), in development it increases to (100x) and once delivered it may increase again to (1000x) or more. Or perhaps a different scale applies to your project, but you get the idea.

The same rules apply when you are doing construction, when scope becomes set in stone - or at least in concrete. Changes are easiest when you are still talking with the architect and drawing up the first set of plans on a napkin, but after they have been formally submitted for review and approved by Council, it gets more complicated and costly. Any changes to the approved plans require rework by the architect, then a review by another dozen or so eyes, and when that is done, it needs to get re-approved by the city planning department. Oh, and to top it all off, yet another cheque written out to the builder to pay for the change in scope.

Listen to the podcast or read the full article on Gazza's Corner Blog.

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