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System Development - Quotations/Estimates

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by george.turner

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System Development - Quotes/Estimates
We are currently implementing an ERP system which is not completely meeting our users' needs and requirements. We would like to modify the system to help raise user satisfaction and make the system more productive and efficient in our business environment.

In submitting our request for development in 6 very specific areas with detailed requirements, the ERP manufacturer has responded with quotes which give range estimates for the cost, a minimum and a maximum, where the maximum often is double the minimum. Their expectation is that we would then commit to the development per this quotation, and be charged where the actual time/materials charge falls within that range.

Is this standard practice? Shouldn't I expect a firm $ figure for each of the modifications to the system we have requested instead of these "ranges" where we are really just opening ourselves up to be charge the maximum?

Thanks.

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by tangi

Yes, it is possible that you may open up for max charges. But on the other hand, my experience in implementing ERP systems is that cost tends to be higher than original planned for due to many reasons (scope creep, new functionality, user req. etc). By fixing you may in fact be protecting yourself from paying too much in the end.

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