The contract is profitable in isolation. Compare a narrower offer, the reusable work it displaces and the customer's acceptance terms before trading away the roadmap.
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Fictional warranty-claim assistant. Broad scope includes automatic submission and custom forms; narrow scope drafts evidence-linked claims for human submission. Neither offer is signed. Compare one year in USD before tax and company-wide overhead. Assume annual payment is collected and twelve months of service delivered. Monthly costs include ongoing maintenance; initial engineering is separate.
| Contract payment | Broad: 120000. Narrow: 60000. |
|---|---|
| Initial engineering weeks | Broad: 8. Narrow: 3. |
| Loaded cost per engineering week | Broad: 5000. Narrow: 5000. |
| Monthly delivery and support cost | Broad: 3000. Narrow: 1000. |
| Paid months in this comparison | Broad: 12. Narrow: 12. |
| Displaced shared feature | The extra engineering time would otherwise deliver a permissions feature forecast to contribute 45000 USD over the same period, after its own costs. This forecast is uncertain. |
Your task. Calculate both first-year contributions, compare the displaced work, recommend a commercial scope and define acceptance. Explain what would change the choice, including renewal and cash timing.
The contract is profitable in isolation. Compare a narrower offer, the reusable work it displaces and the customer's acceptance terms before trading away the roadmap.
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