When client demands outstrip project resources, effective management of expectations is essential. Begin by clearly communicating with client, illustrating how their requests exceed the available resources and potential impact on the project’s scope, budget, and quality. This open discussion helps set realistic expectations and facilitates a cooperative approach to prioritizing feasible objectives. Then, work with client to identify compromise solutions that satisfy their most critical needs without overburdening your resources. Consider implementing project in phases or using cost-effective alternatives to meet these goals. Maintain consistent communication, providing updates and addressing any issues promptly to keep the client engaged.

Transparent Communication: Set clear expectations, discuss limitations openly, and address concerns proactively. Strategic Prioritization: Collaborate with the client to prioritize features and deliverables based on their needs and available resources. Resource Optimization: Maximize existing resources through efficient processes and explore alternative solutions or technologies. Negotiation and Flexibility: Find middle ground, propose phased implementations, or discuss timeline adjustments. Documentation: Document all agreements and changes to maintain transparency and manage expectations. By prioritizing communication, collaboration, and flexibility, you can effectively navigate demanding client requests while maintaining project success.

Proactive and regular updates, along with clear and transparent communication, and building rapport with clients can help prevent such situations. However, if such demands arise, whether related to machinery or human resources, it’s essential to: 1. Assess activities on the critical path. 2. Find alternatives. 3. Negotiate the scope. 4. Hire temporary resources. Finally, If expectations can be met considering the contingency reserve, then PM should proceed taking appropriate steps. If expectations cannot be met even considering the reserves, then provide the client with available options and let them decide. For either option, it’s important for PM to follow the change management process.

Breaking down the solution in below steps: 1. Assess new demands or requirements from client's perspective (Business unit or function which will reap Project Benefit). 2. Check if the new demands helps in meeting the Project objectives, which have been mentioned in the Charter & Business Case, else demands can be dropped. 3. Post completion of step 1&2, Prioritize the requirement (can use MoSCoW method). 4. Assess the available capacity (project resources) with the additional demands and only "MUST HAVE" can be kept & get the project baselined. 5. Optimize resources using techniques like leveling, lean methods etc. 6. Perform cost-benefit analysis. It always works if benefits outweighs the additional cost and present it to the Client.

When managing resource-limited projects, prioritize key deliverables that provide the most value to the client. Negotiate scope adjustments to align project goals with available resources, focusing on essential features. Maintain open communication about constraints and their impact on timelines and deliverables. Set realistic timelines based on current resources to avoid overpromising. Provide regular progress updates to keep clients informed and engaged. Offer alternative solutions to navigate resource challenges creatively and flexibly.