[thelist] development time cost on new functionality

[Martin Burns]

On 19 Jul 2011, at 16:20, Matt Warden wrote:

> That's just the way T&M works? The way T&M works is to leave money on
> the table? It undervalues your offering? Does that really sound right
> to you? Am I the only one who thinks this is all ludicrous?

T&M is just plain stupid[1] for all concerned except for the most uncertain of projects.

It trains you to be highly inefficient (see yesterday's Dilbert for detail)
It trains the client to demand that you cut corners 
It encourages the client to meddle in your resourcing and demand veto power over who you're bringing in
It limits the profit you can make

The only justification is for the initial discovery phase where you really don't know what you're in for - so limit it, and have its defined deliverables as being plans for a fixed price delivery.

Cheers
Martin


[1] Actually - there is a worse model: cost+

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