Project Management

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What is your experience with using story points or function points in cost estimation and contracts?

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Stelian ROMAN Project Manager| MicroSafety Carlingford, New South Wales, Australia

In software development, regardless of the delivery approach, accurately sizing work is crucial for planning, budgeting, and delivery. Nowadays, product and project teams are most of the time temporary, unlike the 1990s internal development teams with members working together for decades, and sometimes retiring from the same organisation that they joined as university graduates. Two widely discussed approaches are Story Points—a team-relative, semiquantitative Agile metric—and Function Points (FP), a more standardised, objective sizing method. While both have their place, the choice between them becomes critically important when organisations use these metrics for high-stakes decisions, such as hard fixed-price contractual cost estimates. This blog post looks at the Story Points and Function Points, highlighting the systemic risks of misapplication, and why using team-relative measures for contracts can be a recipe for disaster.

-What is your experience with using story points or function points in cost estimation and contracts?

-Have you encountered challenges or successes with these metrics in real-world projects?

Blog post

https://www.projectmanagement.com/blog-pos...ive-sizing-

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