🇦🇺Australia

Pricing Errors in Estimates

2 verified sources

Definition

Estimation errors in system design proposals result in bad pricing decisions, leading to financial losses through unbilled services or rejected bids.

Key Findings

  • Financial Impact: 1-3% revenue leakage (AUD 139m - 417m industry-wide) from misestimated proposals
  • Frequency: Per project proposal
  • Root Cause: Lack of data visibility in manual design and costing

Why This Matters

The Pitch: Security firms waste AUD 139m+ (1%+ of $13.9bn revenue) on pricing mistakes in proposals. Automation ensures accurate estimation.

Affected Stakeholders

Proposal Estimators, Project Managers, Directors

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Unbilled Custom Design Services

AUD 20-50k per major proposal in unbilled services (scales to 1% industry revenue)

Maintenance Scope Documentation Penalties

AUD 2,200 per Fair Work breach; full claim denial (AUD 50,000+ avg security incident).

Non-Compliant Migration Rework

AUD 5,000-20,000 per site rework + denied insurance claims; 10-20 hours delay per migration.

Gewährleistungs- und Garantieprobleme durch mangelhafte Seriennummern-Dokumentation

Quantified: 20–50 nicht anerkannte Garantiefälle pro Jahr × (AUD 400–1.000 Material + 2–3 Technikerstunden) ≈ AUD 20.000–50.000 p.a.

Überstunden und Expressbeschaffung durch fehlende Transparenz im Serien- und Projektbestand

Quantified: Jährlich ca. 10–20 Expresssendungen mit je AUD 150–400 Expressaufschlag (≈ AUD 3.000–8.000) plus 100–200 Überstunden Lager/Disposition (AUD 7.000–32.000) = AUD 10.000–40.000 p.a.

Municipal False Alarm Fines

AUD 500–2,000 per false alarm incident; potential account suspension after 3–5 repeats

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