When I price a project, the last thing I want to do is inform the customer that we need additional money to deliver the same scope. It somehow defies logic to pay additional money before seeing any benefits from an initial investment. However, repeatedly this is what happens in information technology (IT) projects.
IT projects are complex; there are many variables that make it almost impossible to predict the cost of a project. Unclear requirements, innovative technologies, departmental silos, and limited experience are some of the variables that hold sway over the effort estimate, and thus the project costs.
In Issue 10 of Today Software Magazine, I present excerpts from different chapters in my book Going Agile Project Management Practices (updated 3rd edition, 2020) that describe the considerations for pricing projects. This overview should give program managers and financial controllers the insights needed to review the project budgets. It should give project teams insights on using several agile practices to help define the budget and then deliver capabilities within the agreed budget.