Don't blame developers. It's more likely a project runs over budget and over deadline because of optimistic cost planning or scope creep than poor developer skills. Following these rules ensures delivery of best product development team can achieve within a set budget or period of time. Even in an environment where scope creep becomes a factor, escalating requirements can be scheduled into minor versions so they never hold back launch of "functionally challenged" application.

Testing? Who needs testing? So you didn't follow six rules, you're past code freeze date, and you're supposed to be in final testing but there are still more things to implement. The user community and CEO want to know if you'll be able to launch on time regardless. That's when it hits you— if only we could "streamline" testing phase we could still make it. Very bad idea. The cost of backing out due to insufficient testing can cost more than project itself. Recently I witnessed a botched implementation of a customer service application that almost cost company in question its three largest clients—and millions of dollars.

Work your mediation magic. Application development managers have to be part negotiator and part magician. They need to keep all sides happy, even if product expectations and budget restrictions are in conflict. No one really wants 70% solution, but everyone can live with it. And when no one's 100% happy, you know you're probably doing it right.

Read more in Case in Point: "The Thursday Rule"

As soon as fixed price DBA determines that "it is not DB", client is on their own trying to correct an issue where a DBA could be invaluable in diagnosis and building a plan for corrective action.

Fixed pricing estimates are high. They are high on a per hour basis and on an hours spent basis. This is because fixed-price contractors have to back their estimate for a year. You are paying for risk that they have estimated another account improperly and need to make it up on yours. You are also paying for risk that you may develop chronic problems—and so they charge for that in advance whether it happens or not.

Once year is out, best case scenario is that you have managed to be a "problem account" for them and have actually received some bang for your buck. Now that they know what kind of hours it takes to manage your account, you will receive a new estimate that will be calculated as follows: (yearly hours)*(markup for risk)*(200/hr)/12=(monthly rate). You will most likely not be told this formula but I guarantee that it exists. You can never beat it. You will always pay premium rates, even if you make it through first year fighting for attention.

Fixed pricing never goes down, and it usually goes substantially up after first year. Whatever price is, fixed price contractor always has an hourly rate in mind, like $200/hour. Ask. If you have already hired a fixed rate contractor, ask for a monthly report of how many hours they spend on you. Ask. You will most likely be denied since hourly rate can be astronomical if they have successfully avoided doing work, but definitely ask.

And what happens if your technical needs are much greater than anticipated? At end of year, your fixed rate will be increased based on your hourly usage in previous year so that you are back at their target profitability level (which they will still not share with you). Since you can never know how many hours they are really spending, you will never know what you are buying.

No matter how good it might seem at outset, fixed pricing never adds up. You can never truly get best deal—and you may be putting valuable data at risk. Because with a fixed-price model, if it ain't broke, they won't fix it.