Solving Scope Creep and Underbilling with Automated Time Tracking
Working with a client often begins with a clear, well-defined project scope. You outline the deliverables, set a timeline, and agree on a budget. This initial estimation is a foundation built on the best of intentions. But what happens when that clean blueprint starts to blur?
A project that was initially a simple "brochure website" morphs into a complex, multi-page web application with custom integrations. The client, who initially wanted a new logo, now needs a full brand guide, a social media kit, and a comprehensive content strategy. For agencies, this is the all-too-common experience of scope creep.
Scope creep is a silent killer of profitability. It can directly lead to underbilling, where the final invoice doesn't reflect the true cost of the work delivered and the team’s hard work goes uncompensated. In fact, the Agency Management Institute reports that a “Deltek study found that nearly 40 percent of agencies exceed their budgets because of scope creep.”
Teams struggle with a core question: how can we confidently create a project scope and budget, and more importantly, how can we prove when that scope has changed?
The answer lies in moving beyond manual time logs and gut feelings to a system of detailed, automated time data that provides your team the tools to capture a true picture of their work.
Identifying Scope Creep with Data
When time tracking is automated and granular, every minute spent on a project is logged and categorized. This creates a clear, undeniable record of where resources are being allocated. For example, Rize's automatic time tracking and AI-powered tagging ensures that time spent on your clients is accurately captured and documented with detailed time entries without requiring your team members to take their attention away from their work.
If a project's original estimate was 20 hours for "content creation" and Rize shows a total of 35 hours logged, you have a red flag—and the data to back it up. Instead of a vague conversation about a project taking "longer than expected," you can say: "Our team has spent an additional 15 hours on content creation due to an expanded list of deliverables. Here is the data breakdown showing the time spent on the new assets." This level of detail validates your work with objective, data-backed evidence.
The Strategy for Fair Compensation
So, how can you ensure fair compensation for all the work your team puts in? Ignition's 2025 Agency and Cash Flow Report found that "78% of agencies state they rarely or only sometimes charge for scope creep." The key to moving past this common industry challenge is leveraging accurate time tracking data.
- Real-time Visibility: Rize provides a centralized dashboard with real-time visibility into your team's project allocations and client work. This allows you to spot scope changes as they happen, not just at the end of the month. A quick glance can reveal if a team member is spending an unexpected amount of time on a single task, allowing you to proactively diagnose the issue with your team.
- Transparency with Clients: With Rize’s ability to export PDF reports, you can share your insights directly with your client. These reports can be a visual representation of the time spent on a project, broken down by task, client, or team member. This not only justifies your invoices but also builds a foundation of transparency and trust. You can show, not just tell, how a project’s budget was spent.
- Proactive Change Order Management: Don't wait until the project is over to discover you've been underbilling. Rize's real-time data allows you to have proactive, evidence-based conversations with your client as soon as scope creep begins. When a new request pushes a task significantly past its original estimate, you can present a data-driven case for a change order. This approach ensures you're compensated fairly and promotes a stronger working partnership.
In an industry where time is the most valuable asset, the ability to track it accurately, automatically, and with purpose is non-negotiable. Rize provides the "science" to your "art" of estimation, giving you the power to not only deliver exceptional work but also to ensure your business remains profitable and sustainable.
Ready to see how Rize can solve underbilling and boost your agency's profitability?
Sign up for your free Rize trial today.
