Agile Development: Litigation Risks for Contractors and Practical Precautions (Part 3 — Kickoff)
Jul 04, 2025
- Blog
- IT Contracts
- Project Failure
- Project Management
- Risk Management
- Scope Creep
- System Development
System Development Hell: 5 Practical Tips to Prevent Project Failure
The primary cause of “flaming” system development projects is a flawed structure and poor management. Have you ever been blindsided on a project, only to hear “I was never told” as your deadline collapses? This is a classic sign of ambiguous responsibility. This article provides practical, in-depth know-how on the specific ‘development structures’ and ‘schedule management’ techniques required to prevent your IT project from failing. We will cover documentation, scope control, and team roles.
1. Defining the Development Structure: The Core of Project Management
[Key Takeaway]
The key to preventing failure is clarifying who is responsible. An ambiguous reporting structure inevitably leads to claims of “I wasn’t told” and causes project flameouts. Recognizing “We’re leaving it to another vendor” as a dangerous sign of ambiguous responsibility is crucial.
The Importance of Clarifying Responsibility
In system development, clarifying responsibility is paramount. The reporting structure determines the project’s success or failure. How and to whom reports are made becomes the development vendor’s discipline.
When this arrangement is vague, problems arise. Someone will inevitably claim, “I was never told.” If this comes from the product owner, it’s a dangerous sign of a deteriorating relationship—a “flameout.”
The Danger Sign: “We’re leaving it to another vendor”
Be especially wary when the client says, “We’re leaving it to another vendor.” This phrasing obscures the lines of responsibility. It can become an escape hatch to later claim, “I wasn’t told.”
Often, that vendor will be accommodating to the client but uncooperative in coordination, prioritizing their own development. As a result, reports from the development vendor never reach the owner. And just like that, the rug is pulled out from under you.
2. Protect Yourself with Minutes and Records
The kickoff meeting often determines the practical project direction more than the contract itself. Objectively recording “what was decided and how” in minutes or recordings is your shield against future “he said/she said” disputes and legal trouble.
The Importance of the Kickoff Meeting
The kickoff meeting is critically important. It’s where the real power dynamics and policies are set, even more so than in the contract. Trusting only the contract and ignoring the operation is dangerous.
Maintain Objective Records
Objective records are vital for operations. Document “what was decided and how” in minutes or via recordings. The company that handled the basic design often has a strong voice. If you blindly follow their instructions, you may have responsibility shifted onto you later. It is essential to keep records.
Expert’s Perspective:
“When a client who told you to ‘handle it’ later claims they ‘weren’t told,’ you can respond based on your records. ‘We reported this in advance and received confirmation of receipt.’ This self-defense measure prevents disputes. Handle unreasonable demands politely, but always while documenting. This documentation will be crucial if the worst happens.”
3. Schedule Management: Adjusting Expectations and Clarifying Scope
Managers must not bow to client pressure; they must “adjust expectations.” It is vital to visualize that increased work means changes in delivery time and cost, and to form agreements at each step. Furthermore, any gaps in specifications must be noted in the minutes, demonstrating a commitment to sharing risks.
The Manager’s Role
Managers must not cave to client pressure. Easy compromises lead to team burnout. What’s important is “adjusting expectations.” If the workload increases, the delivery date and cost will change. Visualize this situation and gain agreement each time. This process stabilizes the project.
Responding to Specification Gaps
Specification gaps will always occur in projects, often leading to finger-pointing. To prevent this, precise documentation in the minutes is effective.
For example, state: “This item will require about 15 days of investigation.” Clarify your findings and the next actions. If you find one gap, point out other potential risks. A posture of shared risk is important. For more on defining scope, refer to industry standards like those from the Project Management Institute (PMI).
4. Test Specifications and Role-Sharing
Agreeing on test specifications (“who” and “what specs”) is essential at the kickoff stage. Trying to agree on this late in the project causes delays. Ideally, the development and schedule management roles should be separate, creating a structure that can act as a buffer and provide mental support.
Early Agreement on Testing is Essential
Agreement on testing is mandatory at the kickoff. Clarify “who” will do it and “what” the specifications are. If you start defining test specs near the end, problems will multiply. It’s not uncommon for this to require an additional 30 days or more.
Separate Development and Schedule Management
The roles of development and schedule management should be separate. The schedule manager acts as a team buffer. An ideal system also provides mental care.
Additionally, the client may fail to provide necessary materials. In such cases, it’s necessary to point out the delay and negotiate for an extension.
5. Negotiation Tactics to Avoid Litigation
Simply recording items in a project log may be insufficient as evidence. You must have proof that you “communicated” this in “writing,” even if it risks annoying the client. This is the smart negotiation tactic to avoid the worst-case scenario (a lawsuit).
A project log entry alone is not enough. It’s crucial to leave evidence that you “communicated” the information in writing. This may annoy the client, but a lawsuit will be far worse.
To avoid the worst-case scenario, it is wiser to negotiate advantageously. This should be understood as a high return on investment.
Summary: 5 Practical Points to Prevent Project Failure
To prevent a system development project from failing, the following five points are essential:
- ① Establish a structure with clear lines of responsibility.
- ② Build thorough consensus at the kickoff meeting.
- ③ Maintain objective records (minutes, recordings).
- ④ Adjust expectations and visualize project scope.
- ⑤ Secure evidence of communication in writing.
Putting these points into practice will lead your project to success and serve as your shield against potential disputes.
You are welcome to contact us via the Contact Form to discuss and for more information.