Litigation Risks and Practical Safeguards for Contractors in Agile Development (Part 4): The Critical Importance of Communication and Expectation Management with Users
Jul 04, 2025
Introduction
Agile is a flexible approach. It helps teams respond quickly to change. But workloads often grow. Projects can miss their deadlines.
Explaining this to users is hard. Poorly handled, it causes disputes. This article covers the root causes. It offers solutions to build user trust.
Agile is popular for its adaptability. But many projects still fail. These failures come from misaligned goals. Lack of transparency is a key cause.
1. Structural Challenge: The User–Vendor Perception Gap
What Users Really Care About
Clients don’t care about Agile itself. They care about practical things:
- Keeping the project on budget.
- Getting results on time.
- Avoiding complex process details.
- Showing little interest in meetings.
Typical Misunderstandings on the Vendor Side
Vendors make risky assumptions:
- “They attend meetings, so they get it.”
- “They see the backlog, so they trust us.”
- “Agile means they’ll accept any change.”
This gap is the first step to failure.
2. Common User Behaviors That Trigger Problems
Some user behaviors create risk. These include:
- After-the-fact Changes & Shifting Blame
“We didn’t know it would be like this.”
“Why didn’t you confirm with us?” - Concealed Assumptions & Decision-making Contexts
They hide key facts. Then they demand rework. - Low Cost Awareness for Rework
Users assume rework is free. They forget the impact on cost and time.
Why Does This Happen?
- The client’s own specs are often unclear.
- Internal politics can hurt vendor trust.
- They think Agile means no final specs.
This behavior exploits Agile’s flexibility.
3. Why Legal Arguments Alone Don’t Work
If a project fails, vendors use legal talk. They might say, “results aren’t guaranteed.” This is very dangerous.
User’s Mindset:
- If clients see no results, trust fails.
- They are likely to claim, “We didn’t know.”
- They can blame the vendor. They might refuse payment or sue.
Legal talk is a last resort. Relationships and transparency must come first.
4. Solution: Using Velocity and Story Points
Basic Concepts:
- Story Points: A unit to size up a task.
- Velocity: The points a team finishes per sprint.
Improving Conversations:
Using these concepts helps you:
- Show users that changes have a cost.
- Explain the team can’t do unlimited rework.
- Show why confirming specs is vital.
Practical Tips:
- Teach users about points and velocity.
- Show rework’s impact with numbers.
- If rework happens, estimate its cost. Then get the user’s approval.
5. Creating a Structure for Trustworthy Billing
Five Key Elements:
- Pre-Agreed Unit Labor Rates
Agree on prices upfront. - Transparency of Tasks and Deliverables
Show progress clearly. Make it easy for non-tech users to get. - Change Records and Accountability
Share notes and impact data for all changes. - Leveraging Velocity and Story Points
Improve talks. Make costs clear. - Communicating Estimation Uncertainty
Be open about estimates. This sets real expectations.
Conclusion
Agile embraces change. But it can’t stop bad-faith changes. Manage surprise claims and hidden facts. You need governance from day one.
Three Principles for Success:
- Legal arguments are a last resort.
- Use numbers and visuals daily.
- Intentionally teach the user these things.
This governance is key to success. Without it, trust is lost before any lawsuit. A clear, high-level estimate is vital.
You are welcome to contact us via the Contact Form to discuss and for more information.