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4. Suppose you are a project manager who is preparing a request for a proposal on a cost-and- materials systems development project. What can you do to prevent buy-ins? Ethics Guide Estimation Ethics A buy-In occurs when a company agrees to produce a system or product for loss money than it knows the project will require. For example, when a vendor of development services agrees to build a system for, say, $50,000, when good estimating tochniquos indicato it would tako $75,000. If the contract for the system or product is written for time and materials." the project's sponsors will ultimately pay the $75,000 for the finished system. Or the project will fail once the true cost is known. If the contract for the system or product is written for a fixed cost, then the developer will absorb the extra costs. A vendor would use the latter strategy if the contract opens up other business opportunities that are worth the $25,000 loss. Buy-ins always involve deceit. Most would agree that buying-in on a time-and-materials project, planning to stick the customer with the full cost later, is wrong. Opinions on buying in on a fixed-priced contract vary. You know you'll take a loss, but why? To build intellectual capital for sale elsewhere? For a favor down the road? Or for some other unethical reason? What about in-house projects? Do the othics change if an in-house development team is building a system for use in-house? If team members know there is only $50,000 in the budget should they start the project if they believe that its true cost is $75.000? If they do start, at some point senior management will other have to admit a mistake and cancel the project with a loss or find the additional $25.000. Project sponsors can stato all sorts of reasons for such buyins. For example, "I now the corroany needs this system. It management doesn't realize it and fundit appropriately, then we'll just force their hand." These issues become av istickier i team members disagree about how much the project witcost. Suppose one faction of the team boloves the project will cost $35.000, another faction estimates $50,000, and a third thinks S65 000. Can the project sponsors justify taking the average? Or should they describe the range of estimates Other buying are more subito Suppose you are a project manager of an exciting new project that is possibly a careermaker for you. You are incredibly busy working 6 days a week and long hours och cay You has developed an estimate for $50,000 for the project Avoin the back of your mind says that maybe not all costs for every spect of the sective included in that estimate Your mon to follow go on that thought, but more prossimaro schedule to recedence Soon you find yourself in front of monedemont presenting the $50.000 estimate You probably should have found the time to investigate the estimato, but you didn't Thoranthic Gre? Os you approach and senior manager wake your doma tik the COS w that 500.000 What co loward Wodoc WOR Wind wordt wets