IT fixed price: when it's taking a long time

[borstein]

My fault for getting into this situation, but...

Suppose you take on a fixed price contract. You don't ask for enough contingency padding and quote for how long you think it will take. It turns out to take longer, because the job was poorly spec'd and complicated.

At what point, if any, do you go back to the client and say "I'm getting there. But will you please consider paying me a little more?". I've been busting my balls. By the time I'm finished this job will have taken about twice the original estimated time (their estimate, btw, which I gave too much credence to.).

Or should I just put it down to experience?

[pmeswani]

My fault for getting into this situation, but...

Suppose you take on a fixed price contract. You don't ask for enough contingency padding and quote for how long you think it will take. It turns out to take longer, because the job was poorly spec'd and complicated.

At what point, if any, do you go back to the client and say "I'm getting there. But will you please consider paying me a little more?". I've been busting my balls. By the time I'm finished this job will have taken about twice the original estimated time (their estimate, btw, which I gave too much credence to.).

Or should I just put it down to experience?

You need to raise the issue of funding as early as possible. You will either get the funding, get shown the door or be required to complete the project at the agreed rate. You can take the approach of learning from your mistakes, but if you don't make them, you won't learn from them.

[BolshieBastard]

My fault for getting into this situation, but...

Suppose you take on a fixed price contract. You don't ask for enough contingency padding and quote for how long you think it will take. It turns out to take longer, because the job was poorly spec'd and complicated.

At what point, if any, do you go back to the client and say "I'm getting there. But will you please consider paying me a little more?". I've been busting my balls. By the time I'm finished this job will have taken about twice the original estimated time (their estimate, btw, which I gave too much credence to.).

Or should I just put it down to experience?

If you want fixed price you deliver fixed price. Would you complain if having agreed your fixed price the client wanted it delivered cheaper part way through?

Surely 'not specc'd properly' and any other reason is something you'd factor into your price? If you have as you say 'padded' enough, that's your problem.

However, if you dont ask you dont get so no harm at least asking is there? I think you'd have to be professional and organised about this and show quantatively how the poor spec and any other issues has lead to increased costs to deliver on your behalf.

[TestMangler]

If you want fixed price you deliver fixed price. Would you complain if having agreed your fixed price the client wanted it delivered cheaper part way through?

Surely 'not specc'd properly' and any other reason is something you'd factor into your price? If you have as you say 'padded' enough, that's your problem.

However, if you dont ask you dont get so no harm at least asking is there? I think you'd have to be professional and organised about this and show quantatively how the poor spec and any other issues has lead to increased costs to deliver on your behalf.

It would not be unusual to have to renegotiate a fixed price deal part way through.

Once upon a time, there was a large IT consultancy firm who's name was something like Accident-Sure who, due to previous f**king up of projects for a large banking client, who's name was something like BHOS, took on a project to replace the operating platform of every windows based client and server in the organisation, at a fixed cost. Half way through, Accident-Sure decided that they were well off target and simply told BHOS that they weren't going to be able to deliver at the fixed cost. They carried on working until the fixed budget had run out, got some more, spent that and still didn't complete the job and then just disappeared into the ether. The client got someone else to finish the job on a time and materials basis.

Everything is negotiable

[northernladuk]

Raise a business case with them as to why it is taking longer being very careful to identify situations that are out of your control and are not in keeping with the origianal contract/quote. Even though it is fixed price, if you can demonstrate the client has moved the goal posts it would be unreasonable to not expect an extra bill.

The key is to prove it. If you go in with no proof you are on a wish and a prayer, if it is there in black and white and cannot be argued they can't say no.

[Notascooby]

Do what the big boys do - bid cheap and change control EVERYTHING to pad out what was an unachievable bid in the first place.

Which is just short for what NLUK just posted.

[TheFaQQer]

Always use the 80/20 rule.

Nothing in IT takes less than 80 days. Think of how long it might take and multiply it by 20.

[Notascooby]

Always use the 80/20 rule.

Nothing in IT takes less than 80 days. Think of how long it might take and multiply it by 20.

or the 2+2=1/2

Twice the time & twice the budget to deliver 1/2 the functionality...but I do like the 80/20 rule

[jmo21]

Always use the 80/20 rule.

Nothing in IT takes less than 80 days. Think of how long it might take and multiply it by 20.

Was that from the DailyWTF recently?

[northernladuk]

Always use the 80/20 rule.

Nothing in IT takes less than 80 days. Think of how long it might take and multiply it by 20.

That made I larf.....