The cocomo model takes into account different approaches to software development, reuse, etc12/27/2022 ![]() After the contract is awarded, high prices can be charged fo r changes to the requirements.ĭevelopers in financial difficulty may lower their price to gain a contract. If the requirements are likely to change, an organisation may lower its price to win a contract. The price charged may then be less than if the soft ware source code is handed over to the customer. If an o rganisation is unsure of its cost estimate, it may increase its price by some contingency over and above its normal profit.Ī c ustomer may be willing to allow the developer to retain ownership of the source code and reuse it in other projects. The experience gained may allow new products to be developed. Accepting a low profit on one project may give the opportunity of more profit later. Software pricing factors Market opportunityĪ development organisation may quote a low price because it wishes to move into a new segment of the soft ware market. Broader organisational, economic, political and business considerations influence the price charged.There is not a simple relationship between the development cost and the price charged to the customer.Estimates are made to discover the cost, to the developer, of producing a software system.– Costs of shared facilities (e.g library, staff restaurant, etc.). – Costs of networking and communications. Effort costs must take overheads into account – Costs of building, heating, lighting.Effort costs (the dominant factor in most projects) – The salaries of engineers involved in the project – Social and insurance costs.Project estimation and scheduling are interleaved management activities.What is the total cost of an activity?.How much calendar time is needed to complete an activity?.How much effort is required to complete an activity?.Software productivity Estimation techniques Algorithmic cost modelling Project duration and staffing To describe the principles of the COCOMO 2 algorithmic cost estimation model © ITU, April 10.To explain why different techniques should be used for software estimation. ![]()
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