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12 votes
Accepted

How to estimate a project budget using story points?

TL;DR For agile projects, a basic formula for estimating budget is: (totalStoryPoints / velocity * teamHoursPerSprint) + nonLaborCosts = budgetEstimate The results should be reported as an ...
Todd A. Jacobs's user avatar
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6 votes

What can I do when I can't adjust scope, resources, or schedule and a team member wants a raise?

TL;DR Your job as a Product Owner (PO) or Project Manager (PM) is not to have all the answers. Your job is to have a vision, and to communicate options to stakeholders and business decision-makers. ...
Todd A. Jacobs's user avatar
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4 votes

Dealing with an agency who can't give a definite quote

TL;DR There's nothing wrong with your vendor's model. The problems are: There's a mismatch between their business model and yours; and Your budget doesn't account for the known costs and business ...
Todd A. Jacobs's user avatar
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4 votes

How can you make a project succeed by raising budget?

The answer will be peculiar to the individual project. Wallace's law of project management the PM's primary job is to inform stakeholders of the effect of any change on Scope, Schedule, and Quality. ...
MCW's user avatar
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3 votes

What can I do when I can't adjust scope, resources, or schedule and a team member wants a raise?

Let's simplify your question down. Feature A is expected to cost $X to deliver and in reality costs $1.2X to deliver. This can be because of a raise, inflation, change in needs, or a ton of other ...
Daniel's user avatar
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3 votes

Project Management without access to budget or deadlines

So my question: how can I a) work around not having crucial information, or b) explain to my boss that in order to do my job properly, I need that crucial information? In the absence of budget and ...
Kempeth's user avatar
  • 1,633
3 votes

A project manager should know how much his/her project members earn monthly?

This situation is unfortunately more common than logic would suggest. It all arises from the projects culture, in general when transparency is part of the business culture, and of course there is a ...
Álex's user avatar
  • 131
3 votes

Pricing risks when developing a project's budget

You need to calculate risk exposure for each of the identified risks then compute a work buffer to cover them. This is part of the Risk Analysis and Management practice. Since this is a fixed price ...
Bogdan's user avatar
  • 15.2k
3 votes
Accepted

What is a budget of an outsource fixed-price project

Don't confuse budget with price. You set a price, but you build a budget. A price is usually a number that reflects an amount of money you pay on some product. The price includes the cost of ...
Bogdan's user avatar
  • 15.2k
3 votes

How to ask a developer for the cost of building my website?

David Espina expressed it very pragmatically in his comment "Can you provide me a quote for this work?" The fancy name for that is a Request For Proposal. That's a document that outlines the ...
Bogdan's user avatar
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2 votes

How to estimate a project budget using story points?

I will start by saying that doing Scrum in a consulting environment is a real challenge. With Scrum we are continually looking for feedback from the Product Owner and Stakeholders and adjust our ...
Barnaby Golden's user avatar
2 votes

Dealing with an agency who can't give a definite quote

The agency is avoiding risk. What they seem to be doing is accepting work as if they are working under a fixed price arrangement but dealing with payment as if under a time and materials arrangement. ...
David Espina's user avatar
  • 37.2k
2 votes

Estimating and Project budgets

Assuming you've done the work before on similar engagements, you and your team's experience should be able to arrive at a probabilistic estimate for the work ahead in a range from best to worst case. ...
David Espina's user avatar
  • 37.2k
2 votes

Project Management without access to budget or deadlines

If you do not know what your targets are to which to plan and to work, then you have zero accountability and responsibility for those targets. None. Focus on doing the job and doing the job well. ...
David Espina's user avatar
  • 37.2k
2 votes

Dealing with an agency who can't give a definite quote

A part of the equation not obvious is the agency's experience with the existing code and your client. That factor could be significant. Or simply it could be a typical vendor relationship, money in, ...
stevejohn336's user avatar
2 votes
Accepted

How can I produce more reliable estimates for technology refresh projects?

I don't have enough experience to confirm or rebut this hypothesis. That said, if I were in the position, I would propose the minimum possible refactor project (kind of like my academic colleagues ...
MCW's user avatar
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2 votes

What is 'overhead' in a research project budget?

I will try myself at this answer. Basically, "overhead" can have two meanings: Negatively connoted: When negatively connoted, overhead describes excess and UNNECCESARY effort or costs, that incure ...
BenjaminGG's user avatar
2 votes

CPI value at project closure

At completion, your BCWP or EV will equal your BAC. So your CPI formula will be BAC / CAC (cost at completion). So, unless your CAC = your BAC, meaning you neither over- nor under-ran your budget, ...
David Espina's user avatar
  • 37.2k
2 votes

Project budgeting by financial year vs lifetime?

Your business is an operations that make money performing projects. Your business is based on its fiscal year and, if public, to the fiscal quarter. The project's year is irrelevant to the business. ...
David Espina's user avatar
  • 37.2k
2 votes

What can I do when I can't adjust scope, resources, or schedule and a team member wants a raise?

If you want a salary increase, I need to be able to justify it by showing that your your work saves costs on other elements of the project. Is your code of sufficient quality that the total cost of ...
MCW's user avatar
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2 votes
Accepted

Can code base metrics be used for budgeting for software engineering or code maintenance?

TL;DR Level of effort and complexity are much better metrics for estimating work than lines of code (LOC). Furthermore, they can only be effectively estimated by the people who will be doing the ...
Todd A. Jacobs's user avatar
  • 50.2k
2 votes
Accepted

Pricing risks when developing a project's budget

You can calculate the expected monetary value (probability x financial impact) for those risks you identify in advance of proposal submission and add that to the price. The issue with this approach ...
David Espina's user avatar
  • 37.2k
2 votes
Accepted

What does it technically mean to be a budget owner?

The Budget Holder is the individual who is ultimately accountable for ensuring that the budget is followed. Budget holders are usually the company's managers and operational directors, who are tasked ...
Olivia Wami's user avatar
1 vote

Project budgeting by financial year vs lifetime?

To extend slightly on David's comment – every company of any size has both "the financial strategists who take a long-term view" and ... ... ... "the Corporate Tax Accountants.™" :-D Therefore – ...
Mike Robinson's user avatar
1 vote

How to negotiate a software proposal?

You have no leverage and have already lost your position. Negotiation is about information: an independent estimate of cost and price (best and worst case), mutual objectives, a list of alternative ...
David Espina's user avatar
  • 37.2k
1 vote

CPI value at project closure

As @David Espina said, CPI is always derived from the same formula EV/AC. This is true whether the project is closed or not. What should the CPI be? What is your EV? What is your AC? The CPI is the ...
MCW's user avatar
  • 8,728
1 vote

Time-budget tracking monitoring for PM and client

I think you want to use the Earned Value Management technique in order to keep updated the budget. See the wiki link to understand why I refer to.
jaloplo's user avatar
  • 113
1 vote

QA time budgetting

I always found the historical information the most valuable when I estimate QA and support costs. Depending on the project, if you are re-using a lot of code, you'll probably need less time for QA. ...
Dule's user avatar
  • 74
1 vote

QA time budgetting

What do you regard as QA time? If a bug is found and a developer needs to fix it, do you count the fix time as QA time? What about re-testing to confirm the bug is fixed? How about if it is unclear ...
Barnaby Golden's user avatar
1 vote
Accepted

QA time budgetting

AFAIK, there is no such thing as accepted industry standards for QA estimation. This is because it would vary based on the parameters such as complexity, understanding of functionality, technical ...
Devasuran's user avatar
  • 332

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