Gold Plating

As you said, in theory, PM should not allow scope creep. However, in order to enhance stakeholder satisfaction, especially the customer/client, I won't mind some gold plating if it does not cause major impact to the budget and delivery outcome. If it causes big impact to outcome, then "NO" because it is deemed to failure if "Yes" anyway. I believe people normally respect professionalism of a PM; otherwise it is a bully! Well, it is an art of management, isn't it?

Dominic, I wouldn't certainly call it bully, these are more cultural things. If it is bullying we were easily able to solve it via the management as usually bullies are 1/ 2 persons. Sometimes it is a cultural thing, and it very common in some places of the world. So as you start a new project you are mostly notified by your management of the issues and you always keep an eye out for it.

Rami, on this front, it is just not gold platting, because you go into these places to do projects, the PM's usually tend to add lot of buffers (cost and time) so that even if there is gold platting it can be covered. So you see one issue leads to another and spoils the whole thing

To me, gold plating is when you deliver more than what you are paid for. Usually, the additional scope is not something requested by the client.

In the software development world, it's a fine line between hard-coding functionality and abstracting some of the code or data.

In the first case, you are doing the bare minimum which reduces the project costs. In the second case, you are making your solution more flexible, thus cheaper in the long run - often beyond the project itself.

Gold Plating is adding value without the customer asking for it, but it the effort from the team.
"Accepting any additional scope outside the original scope under special circumstances" I would say can be accepted only on the approval from the CCB.

Don't forget gold plating can be done unbeknownst to the project manager. It is important that project team members are properly aware and warned. If gold plating is detected during the internal review phase, it may be expensive to pull it out. And, of course, if the client becomes aware, you probably cannot pull it out without looking like a cheapskate.

Rami,

You already received a lot of good feedback from the group. I just wanted to add some perspectives - sorry for the long post. (I will also preface all my comments by indicating that this is my understanding and my opinion):

1. PMI (from what I understand) is not in the business of allowing or not allowing anything of the sort. Even the PMBOK is a guideline based on best practices.

2. Gold Plating - by definition - is really giving something out of scope without a change request to bring it into scope.
- as a supplier, Gold Plating costs me money and I don't want to do it.
- from a client, I want as much Gold Plating as I can get. Think about it. Purchasing a car with an Sport XLE Premium package for the price of an LE Base package. The supplier doesn't want to, but the purchase would be happy to.

Now I think the important information is this:
When(why) to Gold Plate and why? and most importantly How.

a. When/Why?
In my personal experience in many countries that I have worked contracts, there is scope creep. It is part and parcel because I have never been in a project that finished exactly the same as it started.

- Gold Plating when the cost/schedule impact is minimal
For example in software, if the client wants the screen background to be red, not blue. This is typically a single subroutine that may need to be changed, it will make the client happy and does not impact cost or schedule. So, why not?

- Gold Plating in exchange or trade with something else already in scope.
For example in a new building construction, if the client wants higher quality security cameras, maybe you can negotiation for lower quantity. So increasing scope on one side, reduce it on another side.

And my favorite:
- The client asks for 5 new out of scope items (gold plating)
I have used this countless times. Especially when one or two of these items are critical and required. What I do is bundle. Pay for the critical items that you need, and I will 'throw in' the other 2-3 items at discount pricing.

b. How:
Finally, regardless of all of this, I understand for the most part the whole concept of Gold Plating is for the customer to get something that is NOT in the contract. However, for all my comments and suggestions, even if it's for zero cost, DOCUMENT WHAT YOU ARE DOING/GIVING/TAKING. Somewhere you need this evidence to show exactly what has transpired. Even if it is just email thread.

If you upgrade something even for free and lose money; a year later, if support (especially for software or hardware) is required and called up....the supplier better know the real model number of what was delivered, not just what was sold.

I do hope this was useful information.

Regards,

DanM