The Role of Function Points in Software Development Contracts

Abstract

Software development contracts often lead to disputes between the software service supplier and the client commissioning the development. A chief cause of the disputes is the cost of the software development exceeding initial estimates. Software development pricing is based on a ‘fee per unit’ basis. This paper examines 3 key ‘fee per unit’ pricing approaches Time and Materials, Fixed Price for Total Delivery and Fixed Priced per Function Point outlining the advantages and disadvantages of each to the supplier and the client. The paper also suggests other items to be recorded in the software contract to help ensure a controlled but fair and consistent approach to software development pricing.

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Cite this paper

@inproceedings{Radford2000TheRO, title={The Role of Function Points in Software Development Contracts}, author={Paul Radford and Robyn Lawrie}, year={2000} }