Giving Estimates

[youwhut]

Coming to the end of a 6 month contract.

The project is a beast including responsibility for data warehousing (100 GB database) and a web based reporting system. Hardware is currently being upgraded which ultimately means the way the whole system works will have to change.

Solution 1 is a bodge and they know it. It will include changes to 50% of the datawarehousing process.
Solution 2 is desired but will take much longer. Includes changes to all of the datawarehousing and web based reporting system.

Budgets appear to be tight so they are reluctant to renew but it will be unavoidable if they want me to see this additional stage of the project through to completion.

I have been asked to give estimates on time for both solutions by the end of the day.

Whenever asked to give time estimates I feel very much 'on the spot'. I do not mind being 'on the spot' but always want to give the best answer. This is my first contract, I am 24, and want to appear as professional as possible when delivering my estimates later today. I want the extension.

Another reason I find it difficult to give time estimates: I work fast. I often receive the response "wow, you are done already". I do not want to shoot myself in the foot and say it will take x weeks when actually it takes x + 4 weeks and make myself look stupid.

Any tips on this would be great. I see this as a very important day in my contracting life.

Thanks.

[oracleslave]

Coming to the end of a 6 month contract.

The project is a beast including responsibility for data warehousing (100 GB database) and a web based reporting system. Hardware is currently being upgraded which ultimately means the way the whole system works will have to change.

Solution 1 is a bodge and they know it. It will include changes to 50% of the datawarehousing process.
Solution 2 is desired but will take much longer. Includes changes to all of the datawarehousing and web based reporting system.

Budgets appear to be tight so they are reluctant to renew but it will be unavoidable if they want me to see this additional stage of the project through to completion.

I have been asked to give estimates on time for both solutions by the end of the day.

Whenever asked to give time estimates I feel very much 'on the spot'. I do not mind being 'on the spot' but always want to give the best answer. This is my first contract, I am 24, and want to appear as professional as possible when delivering my estimates later today. I want the extension.

Another reason I find it difficult to give time estimates: I work fast. I often receive the response "wow, you are done already". I do not want to shoot myself in the foot and say it will take x weeks when actually it takes x + 4 weeks and make myself look stupid.

Any tips on this would be great. I see this as a very important day in my contracting life.

Thanks.

I don't think I can give any specific advice as this sounds like you need to be aware of the exact ins/outs of the project. A couple of general pointers though:

1) Include a whole load of assumptions in your estimates

For example: This estimate is valid assuming XYZ gets done in XXX number of days and to XXX standard blah blah

Basically word it so that if these are not met then you estimate is not valid and you cannot be held responsible.

2) Give a best and worst case scenario

This means it becomes more difficult for them to point any fingers when your specific figure is proven to be off the mark sometime down the line.

3) I tend to include a 20% contingency in most estimates I give. Your choice as to whether you make the contingency 'visible' to the client or hidden in the tasks that make up the overalll estimate.

Good luck.

[TheFaQQer]

Budgets appear to be tight so they are reluctant to renew but it will be unavoidable if they want me to see this additional stage of the project through to completion.

Doesn't that go without saying? If they want you to see the rest of the project through, they need to renew the contract

Think of a number and double it - work out how long you think you can reasonably do it in, and then add a whole load of contingency. Quantify your estimates on the assumptions that there is no scope creep and that if there is a reduction in scope then there may well be a chance that you will be able to deliver early.

If timing is not an issue, you could try to negotiate a fixed price deal - I will hit milestone X and you will pay me £Y for it. That helps IR35, you can get it done quickly and make some money that way. Staggered payments - 40% on contract signing, 30% on successful testing, 30% on go-live for example to help cashflow. It also gives you more flexibility about when you work - it's fixed price so you can come and go as you please

[Zippy]

You have been asked today to produce an estimate by the end of today on two projects? IMO the best you'll be able to do is make a wild guess unless you have previously thought hard about both options (broken down into tasks and deliverables etc.).

If possible I would give them your best guess at the moment and explain that you would like to confirm this when you have had some more time to analyse.

Good luck with the extension!

[gadgetman]

Agree with all of the above.

They generally expect you to add some padding^h^h^h^h contingency and your estimates will inevitably get cut back. Factor this in to your figures.

Definitely get all dependencies and assumptions spelt out up front, in bold if necessary.

[KathyWoolfe]

Agree with all the above.

Don't forget that the person(s) who see your estimates will have their own idea as to what they want to see.

Above all don't forget that an estimate is just a "best guess" and can easily go wrong when factors not previously considered rear their ugly head.

[youwhut]

If timing is not an issue, you could try to negotiate a fixed price deal - I will hit milestone X and you will pay me £Y for it. That helps IR35, you can get it done quickly and make some money that way. Staggered payments - 40% on contract signing, 30% on successful testing, 30% on go-live for example to help cashflow. It also gives you more flexibility about when you work - it's fixed price so you can come and go as you please

I really like this idea and I will discuss this as an option.

[youwhut]

You have been asked today to produce an estimate by the end of today on two projects?

I wasn't entirely clear. When I talk about solution 1 and 2, these are options. Option 1 is the intial idea because they thought (haha) it could be done in the 4 weeks remaining on my contract. Option 2 has become the desirable but will take much longer.

[youwhut]

I appreciate the speed and quality of responses. Thanks!

[oracleslave]

I appreciate the speed and quality of responses. Thanks!

Where do I send my invoice?