Where were mistakes made in the project initially?

Lavasoft Company is developing new website software for a corporate client. The project starts out when a few Lavasoft staffers meet with the client to create a list of user needs and requirements, which they then turn over to the Lavasoft design team.
The project manager, Lakshmi Singh, feels that the kind of system best suited to the user’s needs is more or less obvious, and to address the needs, she creates some bullet points and flowcharts.
She then presents these to the design team and asks if anyone has questions. Some people are concerned that the approach as stated by the bullets and charts is too vague, but Lakshmi assures them that the vagueness will subside as details of the system are defined.