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1- Do you refuse to take this deal.2- Do you enforce him to get the full requirements to sign the contract.3- Do you ask him to sign a contract where the scope will be agreed later with a condition that it should not exceed the budget in the contract.4- Do you insist on signing phase one only of the contract where the deliverable will be only the detailed design document,and phase2 cost will be calculated based on the detailed design document provided.
If customer have requirements on high level only , I will accept to take the project and I will add a this issue as a risk and calculate the possible value of this risk and added to my price.
Hi, I do this on a day to day basis with my current company. We have very vague requirements yet have a need to put a budget together as this will then form part of a larger tender for a contract we are performing.
The key is to clearly articulate your assumptions & the risks associated with the budget. Also clearly identify your contingency & what this is calculated from.
Very little that we do in IT is truely new and costs are normally able to be derived from past experiences.
High Level Project Planning is done at the Project Initiation Phase only and you have to advice your customer that at this stage it is only possible to have a project Charter and not to sign a Fixed Cost Contract. The same can only be done during Project Execution Phase which is after the Planning Phase is over. The reason is as follows :
1) Detailed Statement of Work (Scope) is finalised in Planning Stage.
2) WBS, Activities and Schedule & Cost estimation is done in Planning Stage.
3) Risk Planning and Cost Contigencies are estimated during Planning Stage.
4) Costs of Accounts and Budget can only be arrived at in Planning Stage.
5) The Project Management Plan has to be finalised and Signed by the Stakeholders in the Kickoff Meeting before moving to Project Execution Stage.
Without arriving at the Project Execution Stage, you are not in a position to award any Contract (Fixed or Variable) for execution.
.4- Do you insist on signing phase one only of the contract where the deliverable will be only the detailed design document,and phase2 cost will be calculated based on the detailed design document provided.
