Scope Creep, Contractual Time, and Billable Work in the UK for Contractors Operating Outside IR-35

Scope Creep, Contractual Time, and Billable Work in the UK for Contractors Operating Outside IR-35

Introduction

For contractors operating outside IR-35, defining billable work is crucial to maintaining fair compensation and project efficiency. While some clients may assume that only visible deliverables count, experienced professionals know that thinking time, planning, research, and problem-solving are just as valuable as execution. Without this, quality service wouldn’t exist.

This article explores scope creep, contractual time, and billable work within the UK contracting landscape—clarifying what is chargeable and ensuring clients respect time and expertise.


Understanding Scope Creep: The Silent Revenue Killer

What Is Scope Creep?

Scope creep occurs when a project expands beyond its original agreement, often without adjusting timelines or fees. While small requests may seem insignificant, they can quickly snowball into major unpaid work.

How Scope Creep Happens

🚨 “Since you’re already doing this, could you just…?”
🚨 “This wasn’t in the original brief, but it’s only a small change.”
🚨 “We didn’t realize we needed this. Can you include it?”

Sound familiar? These incremental requests add up, often costing contractors weeks of unpaid time.

How to Prevent Scope Creep

✅ Define Scope Clearly in Contracts – List deliverables, expectations, and exclusions.
✅ Flag Extra Requests Immediately – Inform clients when something falls outside the contract.
✅ Offer Change Requests as Billable – Any work outside the original scope should be charged appropriately.
✅ Use Sign-Off Milestones – Formal approvals at each stage prevent last-minute add-ons.


Contractual Time: What’s Billable?

For UK contractors working outside IR-35, it’s essential to outline what counts as chargeable work. Many clients mistakenly assume that only hands-on execution matters, but professional services involve thinking, strategizing, troubleshooting, and communication—all of which are billable.

1. Thinking Time Is Billable Time

Some clients struggle to understand why contractors bill for thinking time. The reality is:

“If I didn’t think, I wouldn’t be able to serve you so well.”

✅ Problem-solving is work – Deep thinking is how solutions are created.
✅ Creative strategy is work – Ideas don’t appear out of nowhere. They require time.
✅ Project planning is work – Structuring tasks efficiently saves execution time later.

2. Meetings, Calls & Emails Are Billable

Many clients expect free consultations, discussions, and follow-ups without realizing they take time away from actual delivery.

✅ Scheduled calls and meetings should be outlined as part of the contract.
✅ Excessive communication beyond the agreed scope must be chargeable.
✅ Time spent clarifying vague client requests should not be at the contractor’s expense.

3. Research & Investigation Are Billable

  • Not every problem has an instant answer—contractors spend time investigating solutions.
  • Custom work often requires researching new techniques or troubleshooting issues.
  • Just because it happens behind the scenes doesn’t mean it’s free.

4. Last-Minute & Rush Work Commands a Premium

🚀 “Can you do this urgently?” means rescheduling other commitments. That time is valuable.

✅ Rush rates should be clearly documented in contracts.
✅ Emergency requests affect workflow and should be compensated accordingly.


How to Handle Scope, Time, and Billing Discussions

1. Have a Clear Contract from Day One

A well-defined Statement of Work (SOW) should include:

  • Deliverables & Exclusions
  • Communication Expectations
  • Hourly or Daily Rates
  • Extra Work Charges & Change Requests
  • Rush & Overtime Fees

2. Educate Clients on Billable Time

When clients question what’s billable, be direct:

  • “Thinking is part of the work. Without it, the execution would be meaningless.”
  • “Meetings, calls, and problem-solving are an essential part of delivering results.”
  • “Every change or addition requires time. That time needs to be accounted for.”

3. Stop Work When Scope Creep Occurs

If a client tries to expand the project without additional payment, politely pause the work and ask:

  • “Would you like me to send over a proposal for this additional work?”
  • “We can accommodate this as an extra. Here’s the adjusted cost.”
  • “That’s outside the agreed scope, but I’m happy to discuss adding it in.”

4. Set Payment Terms That Reflect Reality

✅ Define payment schedules (e.g., weekly, monthly, or per milestone).
✅ Charge in advance for high-commitment work.
✅ Include late payment fees to protect against slow payers.


Conclusion: Know Your Worth, Bill Your Time

Contractors outside IR-35 must be firm in defining billable work. Thinking, planning, problem-solving, and communication are all chargeable activities—just because something isn’t a physical deliverable doesn’t mean it’s free.

By setting clear contracts, scope boundaries, and payment terms, contractors ensure that every hour worked is an hour paid. 🚀