Symptom: There are repeated disagreements with clients over mutual expectations (unclear contracts).
If the organization produces just what the customer needs, with quality, on time, at a fair cost, and the customer is still not satisfied, a communications problem is indicated. Perhaps the customer thought he or she was buying one thing, and the organization did a brilliant job of producing something else.
In such cases, the root of the problem occurs in the communications very early in the formation of the project. Before any work begins, the customer and provider should form a clear agreement about mutual expectations, i.e., a "contract." If the contract is unclear, even the best work will go unappreciated.
All commitments should be documented in clear contracts which specify deliverables, the price and terms, due dates, and the customer's responsibilities. This includes internal contracts with others in the organization, i.e., subcontracts that are part of your cost structure.
If requirements change, the organization should renegotiate the contract (especially the time and price).
Ideally, contracts are written and maintained in a central contracts database.
Clear understandings are the basis of healthy partnerships. Every effort should be made to ensure an explicit contract at the very beginning of a project.