Project Management

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Pricing for POC/Discovery

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Rajan Hariramabadran Varada Delivery Manager| Talisma Corporation Bangalore, Karnataka, India
Hi,

What is the recommended pricing model for POC/Discovery kind of projects where both the performing organization and the receiving organization are not sure what the end result/product that they are working for and where there is ever changing scope? Please share your thoughts...
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AKSHAY JAIN Planning Group Leader| YOKOGAWA, Bahrain Gwalior, Mp, India
For such projects better to charge based on actual man-hours rates. Man-hours rates must include most of overheads and profits. Also charge other heads based on actuals if cant be included in man-hours like all material purchased, equipment's hired etc with some mark up.
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Mauro Sotille Chair, Senior Consultant / Project Manager| PM Tech Consulting Porto Alegre, Rs, Brazil
I agree. "Time-material" seems the best option.
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Rami Kaibni
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Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
It is always best to have a defined scope but when this is not possible then Time - Material (T&M) or Time - Labor (T&L) are the best options in that case.
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Stéphane Parent Self Employed / Semi-retired| Leader Maker Prince Edward Island, Canada
If your scope is not easily known and managed, I suggest you use an agile approach and fix the price of a sprint, based on a set number of team members and a fixed duration. Then the client will simply have to decide how many sprints they can/want to purchase.
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Anupam India
Time & Material :)
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Mauro Sotille Chair, Senior Consultant / Project Manager| PM Tech Consulting Porto Alegre, Rs, Brazil
Anupam is right: Time and Material Contracts (T&M).

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