When something will cost more or take longer.
WHAT TO DO FIRST
Tell them, as soon as you know.
WHY IMMEDIATELY
The value of the warning decreases with every day.
WHAT TO INCLUDE
What has changed The new position Why What you are doing about it What you need from them
WHAT TO AVOID
Presenting the new estimate with no explanation Repeated small revisions Optimistic figures you do not believe
WHY REPEATED REVISIONS ARE WORST
Each one destroys confidence in the next.
WHAT TO DO INSTEAD
Give a figure you are confident of, once.
WHAT THAT MEANS
Including contingency you can defend.
WHAT TO DO ABOUT SCOPE-DRIVEN OVERRUNS
Separate them from estimation errors.
WHY
They are the client's decision, not your mistake.
WHAT TO SHOW
What was in the original scope, and what was added.
WHY THAT REQUIRES RECORDS
You cannot demonstrate it otherwise.
WHAT TO DO ABOUT YOUR OWN ERRORS
Own them plainly.
WHAT TO OFFER
Options: reduce scope, extend time, or increase budget.
WHY OPTIONS
They restore some control to the other party.
WHAT TO CONFIRM
Whichever is chosen, in writing.
WHAT TO DO AFTERWARDS
Establish why the estimate was wrong, for next time.