Project Estimation Methods: How to Implement it Wisely

By Editor
Guest Post
  Published 21 Oct 2018
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It is impossible to create a project without a proper cost estimation. This stage is always mandatory in any software development company. Entrepreneurs which count every cent will never let themselves be so oversight.

It is worth mentioning first that you cannot estimate an app or website development cost for a few minutes. There are a lot of different nuances that should be taken into account, the cost may depend on users’ needs and the purpose of the app. So let’s dive into this topic more deeply!

Man-hours: the first thing you should consider

Cost estimation in man-hours is very important for software development, and it helps a customer get a complete understanding of how much money they will have to spend.

Software development company evaluates the complexity of each task you need to be implemented. Then, it can provide you with a full estimation so you will see your VR app development cost, for example, or the cost of real estate app development.

What is a man-hour, by the way? Let’s check it out. Man-hour means the volume of performed work along with the time spent on it. We will single out each component separately:

Man. The more experienced specialist is, the less time he/she will spend on each task. Whereas young specialists perform one task for 3 hours, a more skilled colleague will do this job for one hour, for example.

Hour. An hour doesn’t mean that if a developer’s usual working day is equal to 8 hours, man-hours will also be estimated at 8 hours per each day. If the work was done for one week, but the actual work time was 20 hours, it means that you will pay for 20 hours, not for 40. That is project managers often pay a lot of attention to the time optimization to increase the productivity of a developer.

As you can see, it is highly necessary to consider both these components to get accurate cost and time estimation. During the planning stage, project managers spend a lot of time to allocate different tasks for each specialist evenly.

Agile methodology for project estimation

Agile methodology has some strong reasons why software development companies should use it during software development. Moreover, traditional project management has a lot of weak sides, and we will show you some of them:

  • It is highly possible that some changes will have to be made during the project development, but if it is done under fixed-price terms, changes will be impossible;
  • Variable costs become the reason for unexpected costs that will lead to changes in requirements, and PMs will have to add new members to the team;
  • Time is not controlled. When it is impossible to control the time for software development, a customer doesn’t have specific time frames and he/she cannot be ahead of their competitors.

So the usage of Agile methodology can be much more beneficial. Agile principles will let you create your own software faster and more efficient.

Let’s look through the main advantages of Agile methodology:

  • Sprints with a fixed price. The project is divided into cycles, and the next cycle isn’t launched until the previous one wasn’t completed. It means that when the development cycle is completed, it is sent to the customer, and only after testing and customer’s approval, the cycle can be considered as finished. The probability of unexpected costs will come to naught in this case.
  • Flexible approach. Changes are possible, and each cycle can be changed if there are requirements from the customer. If changes are not larger than the previous feature, the price will remain the same.
  • Additional features can be added anytime. If the market situation has changed, you can ask software developers to modify your app and make it better. Some sprints will be added - no problem.

Well, that is a short guide on how to estimate project better and how software development companies do their planning stage wisely. The main thing you should remember - be clever and follow the right road!

About the Author
Nataliia Kharchenko is a Technical Writer atCleveroad. It is a web and mobile app development company in Ukraine. We are focused on helping startups, small, and medium businesses create competitive and winning software. I enjoy bringing a digital world closer to people and writing about technology, mobile apps, innovations, and progressive management models. You can contact with Nataliia onLinkedin.

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The views, positions, and opinions expressed by the guest writer are those of the writer alone and do not reflect those of the iHub or any employee thereof. The accuracy and validity of the information supplied by the guest writer are not guaranteed by the iHub. The copyright of this content belongs to the author and any liability with regards to infringement or intellectual property rights remains with them.

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