by R. K. Bloom

Evaluation of the project labor costs in software development: the practice in Ukrainian reality

By writing this article, I have not pushed for a long time the project ended. As in any project, there were mistakes (including the assessment), and the problems and interesting solutions, and, in spite of everything, the morale of the team, and a desire to deliver the project on time, and the processing and the same Delivery of the project on time and long-awaited vacation. All this is worth a separate article. But the most important – was an invaluable experience, which was created on the basis of this article.
Very often, we evaluate the project and very wrong. And it seems like over small things that occur during the project, but which, in reality, it would be possible to detect and take into account in advance.
The article contains a simple and yet useful tips and method of calculating estimates labor projects and will be of interest to project managers, architects, systems analysts, vendors, IT solutions and everyone else who is assessing the project work with a fixed price (fixed price projects).
In this article we will only estimate labor to work on the project, estimated duration and cost of implementation – that’s another story.
In this article I describe my personal experience in evaluating projects and,
Of course, you could have other situations and their methods and
recommendations of the evaluation. Learn more about software company.
To understand the essence, the meaning and the “spirit” of Article I recommend to first review:

of Sergey Martynenko “Writing tests as a form of testing requirements” [1], which I will often refer to in this article. It is important to understand that properly defined objectives and requirements – this is a big and important step for the success of the project
and presentation of Sergei Berezhniy
«My Story:« The way overtime, “[2]. By and large, this presentation to the topic has not, but has to do with properly priced labor.

The article contains the following sections:

Ukrainian realities during the project
Problems and solutions
Preparation for assessment
The list of works to estimate
Rating Writing Code
The numbers and rates of practice
Example of calculation

Ukrainian realities during the project

In the domestic market is dominated by projects with a fixed price (when budget and time planned in advance, at the conclusion of the contract). In assessing the project team in addition to standard risk and problems should consider “modern and efficient” approach customers who want to combine:

On the one hand, to obtain accurate estimates of budget and time to writing TK, their inclusion in the contract, and then, during the project, strict control of the budget and deadlines.
The second – the flexibility of the design team, the implementation of all emerging during the project requirements of the customer (because the customer often to the middle of the project itself does not know what he wants.)
On the third – despite the lack of understanding of what and how it should be implemented, mercilessly “cut” of the problem of the project plan (to reduce costs), including features that still need to execute the command.

A failed management of the project (if the team is led by the customer) team easily exceed time and budget, as the contract is signed and the budget is agreed upon, then running a loss.
It is clear that only blame the customer in all – wrong. It must be understood that the evaluation of the project is often carried out without sufficient analysis of the requirements is not enough and properly painted task, and very often, in the evaluation included only programming, considered insufficient testing and management. When signing the contract sellers go towards the customer, reducing the price, and in the course of the project is not enough tough team defends its position (project manager in the first place, but in this case it is necessary to say “team”, since all participants must be focused on results and in case the participant will see / anticipate a problem it must inform the head).
In addition, there is another factor – the diversity of projects, systems and technologies, and a lack of skilled workers. This means that when planning the project architect or project manager can not take into account that the team can get a professional who has not previously served, or similar problems with insufficient professional qualifications. Clearly, in this case, the performance will be lower than expected.
How can you do in this situation? How to evaluate the project so that the estimated labor costs were sufficiently accurate?
First, let’s consider the problems and try to find a solution.