[Sigia-l] what cost overrun is too much? when do you cut your losses?

[Scott Nelson]

On Jan 18.2005, at 10:44, tOM Trottier wrote:

> Operating costs are definitely not 20x "original full cost".

So Tom got me thinking, and trying to glean some good information from 
this post.

I worked on a project that spiralled wildly out of control; the lawyer 
who ran the show kept promising payment, and not getting it. Suppliers 
would charge interest, project would stop and start again (read: new 
fees) and the thing just kept going up and up and up.

This guy ordered #300,000 worth of Sun equipment without putting down a 
penny. That kind of project.

At what point do you burn and build again? Ever? Never?

I realize there's an answer which is "depends on the project" but I'm 
wondering if there are any general guidelines. I suggested it on this 
project, and it would have gotten completed for much less money (this 
just means that different people would have been screwed out of less 
money, not that it would have launched.)

I'm happy to take the conversation off list, and maybe willing to 
disclose more information about what led me to that specific 
recommendation at the time. But thoughts from the list would be 
interesting.
--
Skot Nelson
skot at penguinstorm.com