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57294RE: How to perform estimation for custom (billable) work

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  • dutadoralin
    Oct 16, 2013
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      Hi Alex,

      Using/under the following assumptions:

      1. the Dev Team worked previously together and they know what it brings them together (their strengths and weaknesses)

      2. the Dev Team worked previously with (a similar) technology

      3. per week, the Dev Team knows its Velocity for the best, worst and average case scenario (B,W,A)

      4. there is a Product Backlog available and a Product Owner that can explain each Product Backlog Items

      5. the Scrum Team agrees and commits to an initial DoD that guarantees the Quality of the product/service that the project delivers 

      6. the Product Backlog (= Scope) remains unchanged during the project

      the Dev Team can come with a relatively good and realistic estimation in Time and $'s for the project as using the DoD and the known velocities (B,W,A) , the Dev Team forecasts the entire Product Backlog and they determine 

      a) the Total time (# weeks) that they need to accomplish the project in the best, worst and average case scenario

      b) the Total $'s = # weeks * 40 hours * SUM(hourly tariff per Dev Team member) 

      ---In scrumdevelopment@yahoogroups.com, <vilson_a@...> wrote:

      Hello everyone,


      I was wondering if you guys could help me out with this problem. Although I have worked in an Agile environment before, even as an Scrum Master, this is actually the first time I’m working in a company (currently implementing Agile) that does custom (billable) work.

      I am sure most of you have had the opportunity to deal with this situation, and I was wondering how you have worked it out.


      Estimation to price the “project” is currently done in hours, and of course it is a completely unrealistic number. Since I have been a Scrum master before, I am trying to help the Dev Manager figure this out.

      Just to clarify, for regular product roadmap items we do estimate in points (Fibonacci).


      Please let me know if any more detail is required.



      Alex Pereira





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