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Symptom: The organization makes unrealistic promises, which, of course, it fails to fulfill (poor project estimating).

Before deciding to make a purchase decision, a client has a right to know how much it will cost. For custom projects, this requires an estimate of the required effort. Then, whether the deal is based on a fixed price or time and materials, the organization is expected to deliver the work within the estimated cost.
If its costs are higher than estimated, either the client or the organization will have to absorb the difference.
In either case, the quoted price does not cover the actual full cost of the project.


Another (more generic) way to state the problem is as follows:
Symptom: Our bids don't cover all of our costs.


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