ABSTRACT
Immediately, we have a problem: there is no typical program. So, what we will do is discuss an example program. We will choose an example that can be applied to both design and production content so as to examine both major types of programs that you may encounter. Of course there are many more types of programs, all with their own particular issues; however, the design and fabrication of complex equipment has enough issues itself to be worthy of special consideration. Whether the anticipated contract is fixed price or cost plus, or time and material (T&M) much of the same process applies. While the risk of losing money is less, of course, on cost-plus contracts, failure to provide an accurate cost picture to your customer at the time of the proposal is an invitation to later problems and dissatisfaction with your company.
