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Home Architecture, security and coding Estimation and politics
Estimation and politics
Written by Division by Zero   
Monday, 10 May 2010 09:01

A colleague, a lead-developer, asked me if it was a good idea to lower an estimate to get a job. We did an estimate, but our customer thought it was way too expensive. So we, a fellow architect and I, thought of a different solution: using ETL instead of .Net. A much better tool for this particular problem and way cheaper.

The estimate we originally did was based on a few requirements, since we made it in an early stage of the project. We could lower it a bit, but not nearly enough to meet the budget of our client. If we would have lowered the estimate to meet the budget we probably, almost certainly, would have to ask for more money later on. This isn't a good thing. Yes, we would have had the job, but, no, our customer wouldn't be happy and lose trust in us as a supplier.

It is possible to get jobs and turn jobs down by increasing or decreasing an estimate, but it is far better to be clear. Explain your customer what your worries are and what you are offering for this money. Budget mostly isn't a huge issue if your customer is getting value for it. If you deliver quality that will be cheaper in maintenance might be enough reason for your customer. Make sure you meet the requirements, don't deliver more quality of features than necessary. If the customer exactly knows what she/he is going to get and it's meeting the needs, she/he is willing to pay.

If budget is a problem, try to think outside of the box. Try to find a different tool or lower your quality. But always make sure your customer knows the risks she/he is taking.

It isn't a good idea to lower your estimate and present your customer with higher costs later on. Even if your customer is a different department in the same company it's a politically unhandy. Trust is a big issue in these company politics. And trust is easier to loose than to gain.

 

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