Real/Practical experience and need suggestions/option outside PMP world

Submitted by sgadewar on Mon, 03/11/2013 - 16:07

 How do you close  down discussion with a client when he gives one line requirment stating I need a solution for my sales representatives who could buy promotional items online and place orders for them.

He needs a fixed cost for same and is not ready for further discussion.
 
Here is what I thought of my approach
Option 1
Provide him WBS with the various components to be developed and asuumptions and provide him fixed bid cost with a ROM estimate. But again this is Fixed bid project I dont want to give him a range so I am thinking of going ahead with PERT estimate, allthough that would also not be correct however I dont want to loose the deal. High risk involved but cant help
 
Option 2
Run a Agile project in series such as Scrum and provide a monthly run cost. All though this is not helpfull for him becuase he looks forward to convience his stakehloders the cost that I gave and get approval for budjet.
Client is very strict and not ready to adjust one the fixed bid cost is proposed. Not even a formal Change request board is encouraged. he expects us to provide solution in that fixed price
 
Any suggestions how to handle? I thought of above 2 ways
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admin

Tue, 03/12/2013 - 03:49

What you need to explain the client is that just transfereing the risk to vendor will not help him, Since you are not clear on what needs to be developed, whatever is built will not meet his requirements, then it will result in rework, more effort and more cost for him. If this is understood by client then the job is done.

Its best to have a clear requirements in detail else fixed price contract will have no meaning. You can show him the data that most projects fail because the requiremetns are not clear and client looks to transfer the risk to vendor. Ultimately the vendor has to succeed only then the client will succeed.

  1. You can propose to have requirements detailed out enough for you to give a fixed price quote
  2. You can give a fixed price quote only upto High Level design, and then propose to have other phases in T&M OR you can propose that estimates will be revisited after high level design
  3. Agile method works best when client is not sure of what they want , yet want to see quick resutls.

You can always go to higher level within client org and I am sure they will buy your arguments.

 

 

sgadewar

Tue, 03/12/2013 - 13:14

 Thanks, I did proposed them option 2 which is Agile where in because they did not know what is the end product needed however they wanted a budjet

It got backfired :). Client says we are not working as partners. He mentioned that I am bringing him to a uncomfortable position by not giving him the budje for entire project. I have again explained him without requirments it is difficult. Also there is a pressure on me from my seniors that no matter what happens we should not loose client and they have mentioned to me that I should be able to handle such situations through fixed bid projects. In short my seniors want me to commit me for the project with a amount and hold responsible. 

I will try your another suggestion which is breaking the project into stages that is upto requirment phase the T&M. The problem is that I know he might not accept as he is looking for securing a confirmed budjet from his stakeholders and do not want to go back for additional budjet to them.