Why Specification Ambiguity, Not Scope Creep, Kills Fixed-Price Software Projects
Decades of Standish Group research show only 31% of software projects succeed on time and on budget, with scope disputes frequently to blame. Industry experts argue the real culprit is not scope creep but specification ambiguity — where both parties believe they agreed on the same thing but interpreted vague requirements differently. PMI data supports this, with 37% of organizations citing inaccurate requirements as the primary driver of project failure. Fixed-price contracts worsen the problem by creating opposing incentives: vendors favor narrow interpretations to protect margins, while clients push for broader ones to maximize value. Software delivery leader Paweł Brodziński notes that freezing the price structurally pits both parties against each other, making genuine collaboration difficult from the outset.
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