Validating software estimates

validating software estimates-33
This paper discusses some important aspects of validation, with strong appreciation for the constraints of the business development or sales department during the preparation of original estimate for the bid. They always see the big picture close, and work towards achieving the strategic objectives of the company.

This paper discusses some important aspects of validation, with strong appreciation for the constraints of the business development or sales department during the preparation of original estimate for the bid. They always see the big picture close, and work towards achieving the strategic objectives of the company.

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On cost-plus projects, the direct economical risk is less, but can severely damage a contractor's reputation. Validation — success key in lump-sum projects: contractor's perspective.Cost starts with estimation, so estimation has major significance in the entire project life cycle.Experienced project managers agree that it's very difficult to win when change control becomes a political battle escalated to upper management.So the success of any project is highly dependant on the clarity of the design basis.Some could even be attributed to the strategic importance of the particular project to the company.Reconciliation can be generally presented at a higher level, with supporting documentation made available for better comprehension by the project team, if required.Benchmarking and reconciliation with past similar projects during estimating will ensure credibility.Major discrepancies need be to be explained in detail or attributed to the peculiarity of the project.Design Basis: This section needs to cover the overall scope of the project in summary.Specific inclusions, and more importantly, specific exclusions of items or facilities need to be clearly documented.

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