>>>As in the quoted text, this is exactly what I've done since the beginning. However, for this client, this does not apply. Of course, if this would have been a fix cost, I would have not went for it. As we are all on site, if they want to change something, we change it and are all paid for it. It's not pratical as mention in the original message, but we have to live with it. The good side is the contracts are usually extended several times because of that. In a short scale, something planned for 3 months is usually done in 15 months.
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>>I had a project like that and, in the end, the client became frustrated with us and did not trust our judgement. We eventually lost the contract. It's a no win.
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>In overall, there is no winner in that type of project. After a while, the resources are usually moved elsewhere, the project is either transferred or cancelled, etc.
>

I have been in this situation, and can say too that the big project of this kind will probably never be finished. Small and simple projects could be just delayed and that's all.
But from most of such clients with no specs you usually cannot squeeze any good specification even if you trample them down... :)