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January 10, 2010

Financing Home Remodeling Projects- The Danger of Requirements Creep

Creep is a structural engineering term that basically describes a slow slide or change.  Under stress, over time, solid materials tend to slowly deform.  The simplest example is an icicle under the influence of gravity.  It's not a sudden fracture, but rather a slow and steady creep.

There is another term called requirements creep that descibes the tendency of project requirements to also undergo this same slow erosion.  Suppose you are on an engineering team that wants to build a digital clock.  Seems pretty simple, right?  It needs to be large enough to read but small enough to fit on a desk.  But, your team meets and at the first meeting, the idea of adding an alarm sounds good, so that gets added.  At meeting #2, the alarm isn't enough, but it needs to have the option of the buzzer or radio.  Then, CDs and MP3s get added to the alarm options.  Subsequent meetings add battery backups, a hand crank option for emergency use, color options (not everyone like red numbers), automatic detection of daylight savings time, a date, then a calendar, etc., etc., etc..

You get the idea.  Every time you get together, another "good" idea enhances the project, making it more complicated, more costly, and it will take more time to complete.  The solution in engineering firms is a well defined requirements document.  Once proposed, debated, revised, discussed, and finally signed, it becomes harder and harder to change it.  That's because a requirements change, we have learned, is so costly and so risky that it simply isn't done as projects move forward.  There are exceptions, but generally, the idea is to build to the requirements, and nothing more.

The same idea, perhaps without the formal document, is needed when you are planning a home remodeling project, especially if you are doing it yourself.  At some point, you are going to reach a point when you think you know what you want to accomplish.  The best advice I can give is to review what you want to do, and then do it again.  Turn it over from every angle-- will removing that wall impact anything upstairs?  If we use laminate flooring, what about the stairs?  How important is it to really have that corian countertop with the integrated sink?  Where is the stopping line?

Once you decide the requirements are in place and you start moving forward, be very, very cautious about taking anything else on.  Yes, it may be that it'll be best to extend the flooring in that direction too.  Yes, it's a good idea to also replace the appliances.  Yes, it turns out that running the piping that direction allows for the addition of A, B or C.  But, if you can, don't change the plan at this point.  You run the risk of running into time delays, lack of funds, or both.  Don't do something you hate just because you decided upon it a few weeks ago, but don't change everything either. 

To the degree you can stick with the plan and avoid requirements creep, you'll find yourself on-time, under-budget, and confident you can plan and finance the next project accurately as well.


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