Last updated on September 8th, 2022.

You’ve just started working with a software development company.

It took you some time to find them. Detailed research, dozens of requests for proposal (RFP), three interviews, and countless sleepless nights, to be exact.

Finally, you decided to trust one team with your project. And with the further fate of your business. It wasn’t easy; I get it.

So, it’s only natural that you define the scope of work, set deadlines, and propose the budget. Or is it?

It might feel natural, but you’re not the right person to predict the exact duration of the project.

Let’s be honest, do you know all the details? Are you aware of all the to-dos? Do you have deep technical knowledge? Here’s the ugly truth — even the employees delegated to the project can’t estimate the time 100% accurately.

In most cases, the tech team sees whether they can complete the task on schedule when it gets close to the deadline. And what happens when they can’t?

Get ready for scope negotiations.

What is scope negotiation?

Scope negotiation is a talk you, as a client, have with a software vendor or contractor. The goal is to share insights and set realistic expectations for your project.

During this meeting, you’ll repetitively hear words such as time, scope, and cost — collectively called the iron triangle. It’s essential to go through them and write the conclusions in your agreement.

The golden rule of scope negotiation is to make yourself heard and listen to your partner.

Both sides matter and should be active participants. You come up with your original idea and know the business context of your project. The software development team has the experience and knows what it takes to bring your concept to life.

You get the complete picture only when you combine these two worlds.

Why should you be flexible with the scope of work?

So, out of all the possibilities, why should you be flexible with the scope of work? Because it’s usually the only reasonable approach.

Let’s go back to the story from the beginning.

You’re finally working on your project with the carefully selected software development team by your side. You set the deadline — the beginning of the next quarter.

The deadline is approaching. And you learn that the software vendor won’t deliver the product according to its scope on time.

It’s a disaster. You’ve built your whole marketing plan around it. There are launch graphics ready. Your social media campaign is running. So much money and effort have been put into this process.

In this case, time is not negotiable.

Remember the iron triangle? Now you’re left with the cost and scope.

Ok! Easy-peasy, you’ll just increase your budget. This project is supposed to be your breakthrough, and you’re ready to invest more.

Not a good idea. Hiring extra software engineers won’t improve your situation in the short term. Late changes disrupt team harmony and slow production down. I described how it works in another blog post — What to look for in an external team?

And this is how the iron triangle comes down to the last side — the scope.

Every digital platform has essential features and additional components. Bear it in mind when you look at your product. What are its key features?

Now it gets tricky. Every feature seems critical to the project. After all, it’s your vision.

Your software vendor is the best remedy here. Ask them to sort the features and help you see which are truly indispensable for the launch and which can be added later.

Of course, you don’t need to take their word for it.

The project manager’s job is to explain it to you from a technical point of view. If something is not clear, demand answers. Get to know the reasoning behind all the decisions. Listen to the arguments and justifications.

Your job here is to think analytically and be open-minded.

What are the rules of scope negotiation?

As you see, sometimes there’s no other choice, and it comes to scope negotiations.

How to make the best of it?

1. Prepare for the discussion

Prepare for the meeting to avoid chaotic and unproductive sessions. Sort your priorities and write down all the points you want to discuss.

Expect the software development team to come up with a list too.

2. Offer the business context

You know your business and its context best, and this knowledge is absolutely necessary to reach correct conclusions and make informed decisions.

Share it with the software vendor. Describe business value, drivers, and risks. Make the tech team see through your eyes.

3. Try to understand the technical point of view

As I said, the project manager must keep you in the loop. You decided to go for a software development company so they can bring their expertise to the table. Let them.

Try to understand what the team is dealing with. There are some limitations that you probably didn’t think through. Allow the engineers to guide you through the technical nuances.

Consider their arguments and trust their decisions.

4. Appreciate the honesty

The software vendor has to bring some bad news sometimes.

And it’s a good thing when they are upfront and tell you about the roadblocks. You want them to be transparent about the process.

This way, you can brainstorm the solutions together and find the optimal one.

5. Base your estimates on the team’s capacity

At this point, you understand why it’s important to hear both sides.

Put this knowledge to use and give your estimates a second look. Make sure your expectations are not unrealistic. Don’t go beyond the capacity of the tech team.

And don’t guess what this capacity is. Ask.

Here’s a note to remember: treat the software development company as your partner, not just a commissioning party. When it gets heated, talk the issue through.

Remember, there are always some features that can wait a little longer. Especially when time is of the essence, and the budget can’t be exceeded.