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General Tabletop Discussion
D&D Older Editions
WotC, DDI, 4E, and Hasbro: Some History
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<blockquote data-quote="Nagol" data-source="post: 7648025" data-attributes="member: 23935"><p>Depends entiurely on the size of team and delivery contract. The two main methods of payment are time and materials basis (pay each month for the salaries and expenses -- customer eats cost overruns) and fixed price (developer eats costs overruns) with milestone payments (payments made upon reaching specific project delivery points).</p><p></p><p>For new development with limited requirements and no code basis is almost certainly going to be T&M. No development shop will commit to a confirmed price and milestone payments model because of uncertainties outside their control.</p><p></p><p></p><p>How much will T&M cost? This gets back to the size of the team. Typically, I see 20-30K per month on oversight (program/project management, architectural oversight, customer managment), plus development, documentation, and analysis salaries plus any internal salaries assigned to the project.</p><p></p><p>Typical bill-out rates are 2x-4x employee salary so a documentation specialist may be billed at $80/hr and receive $30/hr. Senior people especially in solution architecture and development get charged out at in the low thousands per day.</p><p></p><p>Depending on the engagement, spending over a million a month is notable, but not unheard of. Especially if the client wants it done fast; typically more bodies are thrown at the problem and paradoxically end up slowing the project down (everyone spends more communication and coordination).</p></blockquote><p></p>
[QUOTE="Nagol, post: 7648025, member: 23935"] Depends entiurely on the size of team and delivery contract. The two main methods of payment are time and materials basis (pay each month for the salaries and expenses -- customer eats cost overruns) and fixed price (developer eats costs overruns) with milestone payments (payments made upon reaching specific project delivery points). For new development with limited requirements and no code basis is almost certainly going to be T&M. No development shop will commit to a confirmed price and milestone payments model because of uncertainties outside their control. How much will T&M cost? This gets back to the size of the team. Typically, I see 20-30K per month on oversight (program/project management, architectural oversight, customer managment), plus development, documentation, and analysis salaries plus any internal salaries assigned to the project. Typical bill-out rates are 2x-4x employee salary so a documentation specialist may be billed at $80/hr and receive $30/hr. Senior people especially in solution architecture and development get charged out at in the low thousands per day. Depending on the engagement, spending over a million a month is notable, but not unheard of. Especially if the client wants it done fast; typically more bodies are thrown at the problem and paradoxically end up slowing the project down (everyone spends more communication and coordination). [/QUOTE]
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