What is Scope Change Procedure? Scope Change Versus Scope Creep.

This article is about scope change procedure in project management related to Construction EPC Plant Projects in Plants, commercial buildings and Petrochemical Plants as per International Procedures, Codes & Standards.

The scope change procedure outlines the steps and processes to be followed when a change to the project scope is requested, evaluated, and approved. It ensures that changes are managed effectively, documented properly, and implemented in a controlled manner to prevent scope creep and maintain project alignment with objectives.

Scope Change Versus Scope Creep Comparison.

Following is the comparison between scope change and scope creep.

Aspect	Scope Change	Scope Creep
Definition	Intentional modifications to project scope, objectives, or deliverables.	Unauthorized, gradual expansion of project scope beyond original boundaries.
Reasoning	Due to new requirements, stakeholder feedback, changes in priorities, etc.	Occurs incrementally over time due to stakeholder requests or unclear requirements.
Process	Managed through formal change control process.	Often occurs without proper approval or control mechanisms.
Impact Assessment	Evaluated for impact on timelines, budget, resources, and quality.	May lead to scope ambiguities, increased complexity, and project risks.
Control Mechanisms	Controlled and documented process.	Often lacks proper documentation and approval processes.
Risk	Managed effectively with proper evaluation and communication.	Poses risks to project success and can lead to project challenges.
Prevention	Established project scope boundaries, realistic expectations, and robust change management processes.	Clear communication, stakeholder engagement, and effective change control mechanisms.

This table provides a concise comparison of scope change and scope creep across various aspects.

How to Manage Scope Change Procedure?

Company may initiate consideration of a possible change in the scope of services provided by the Engineering Contractor by issuing a “scope change enquiry.” In response, the Engineering Contractor shall issue a “scope change proposal” to Company within five working days. The Engineering Contractor may also initiate consideration of possible scope changes. These could be for cost saving, simplification, or energy efficiency improving ideas by the Engineering Contractor for example. The scope change procedure followed would be similar to that for an Company-initiated scope change, except that the EC would be the initiator. The Engineering Contractor would provide the information required, etc. as noted below.

The Engineering Contractor shall promptly notify Company if they cannot respond to a scope change enquiry by submitting a scope change proposal to Company within five working days. The response shall give the reason(s) for the delay and provide the date when the scope change proposal will be submitted.

The scope change proposal shall propose any reasonable adjustment(s) to the price of services provided and/or time schedule as deemed appropriate by the EC. Any such schedule impact shall be fully explained and any price adjustment shall be consistent with agreed to labor rates or other reasonable basis if these are not applicable. The Engineering Contractor shall state how long the scope change proposal is valid. This shall be no less than five working days.

In addition, each scope change proposal shall contain the following information:

• A brief description of the scope change involved, including appropriate identifying references.
• Who requested the scope change and the reason for it (safety, operability, etc.).
• Any effect on the cost of equipment and material purchases or of construction works separately identified against relevant cost sections.
• A statement of the effect, if any, of the scope change on EC’s warranty.

Company is not obligated to accept any change proposal. If any change proposal is not accepted, Company may negotiate further with the Engineering Contractor on the variation in question.

The Engineering Contractor shall not proceed (unless directed otherwise) with any detailed work associated with a proposed scope change until it has been accepted by Company. Further instructions will be provided in writing to the Engineering Contractor whether Company decides to proceed with a scope change or not.

If Company submits a scope change enquiry and the Engineering Contractor issues a scope change proposal in response, but Company then decides not to proceed with the scope change, Company may adjust the purchase order price to cover any reasonable costs incurred by the Engineering Contractor in preparing the scope change proposal. This will depend on the magnitude of the change. Such costs shall be consistent with the agreed to labor rates.

The preparation of any scope change proposal shall not justify an extension to the scheduled completion or intermediate milestone dates.

Within two weeks from starting the execution of these services, the Engineering Contractor shall prepare and issue a detailed procedure(s) for handling any scope change for Company approval. This procedure(s) may be compatible with the EC’s normal methods if these satisfy the requirements of this scope of work and include appropriate control measures. This procedure(s) shall cover the entire process from receipt of a scope change enquiry through to its implementation.

The ENGINEERING CONTRACTOR shall maintain a scope change enquiry summary that includes the following in tabular form:

• Scope change enquiry number and issue date.
• Brief description of proposed scope change.
• Date on which the scope change proposal is submitted to Company.
• Date on which the scope change proposal is approved or rejected by Company (with appropriate reference to correspondence).
• Effect on the price of services provided by the EC.
• Effect on the scheduled completion date for scope changes that are implemented.
• Remarks.

The Engineering Contractor shall keep this summary current and issue a copy of it each month with the progress report.

Here are the steps for scope change control presented in a table format:

What are Steps for Scope Change Control?

Steps for Scope Change Control
1. Focus on the Foundation
Implement a process to define scope.
Limit the scope of change and define a basic process.
2. Create a Structured Approach
Define, evaluate, and approve the preliminary scope of work.
Document approvals to establish a foundation for planning.
3. Understand Project Completion
Define final client acceptance criteria and project completion.
Ensure that initial objectives and approved changes are met.
4. Define the Process
Document a structured approach for managing change requests.
Determine decision points, levels of authority, and escalation.
5. Create a Work Breakdown Structure (WBS)
Define all work required to reach project goals.
Document and validate the full scope of work.
6. Continuously Manage Change
Manage change requests according to established policies.
Know when to reject unreasonable scope changes.
7. Consider the Implications and Get Changes Approved
Evaluate and approve change requests, and seek necessary approvals.
Follow the scope change approval process and escalate as needed.
8. Communicate to the Team
Involve and inform the team of scope changes promptly.
Provide clear reasons and explanations for scope changes.
9. Use Project Management Software
Utilize project management software for visibility and tracking.
Seamlessly manage time, costs, progress, and reporting.
Use real-time insights to keep projects on track.

By following these steps and utilizing project management software, organizations can effectively control scope changes and minimize the impact on project outcomes.