Principle 3: Human Relationships and Communication Over Contracts
Assessing the labor costs for developing unique software is undeniably a challenging task. Project management introduces the concept of the "Cone of Uncertainty."
For instance, when a client presents a technical specification for creating a marketplace and seeks an estimate of its cost, providing a precise evaluation for such a unique project is exceedingly complex. If the developers have never tackled a similar task before, estimating the effort accurately becomes extremely difficult. A manager may offer an initial estimation, but according to the Cone of Uncertainty, statistical data suggests that the final estimate at the project's completion can deviate from -25% to +150%.
We believe this approach is fundamentally flawed. To prevent clients from overpaying in situations where we cannot provide an exact estimate, we execute evaluations iteratively, step by step, from task to task, from release to release. This ensures clarity and transparency. To achieve this, we must maintain constant and transparent communication with clients, and our productive communication (meetings, correspondence, discussions) is the key to project success.