Partner Value Calculator
Compare two options across four dimensions

How to use this calculator

Enter numbers for two options you are comparing. The scorecard updates as you work.
Start with the expected value capture picker below. Pick where each partner sits relative to average on three factors. The calculator derives a capture percentage for you. Then fill in the cost dimensions. If you know the total business value of the project, enter it in the optional "Projected value" field to see net value.
OPTIONALProjected value
What is this project worth to the business if it ships and works? This is the same number for both options since the outcome is the same. When filled in, the calculator uses expected value capture to discount this value.
Total business value ($) iThe total value the project creates if it succeeds: revenue generated, costs saved, contracts won, etc. Use your best estimate. It does not need to be perfect. It needs to exist.
D1Expected value capture
The share of the project's upside each partner is expected to deliver, across the realistic range of outcomes. Not a bet on perfection, an honest average of likely results.
How we got the 60% baseline

The baseline comes from the Standish Group's CHAOS 2020: Beyond Infinity report, the most recent (and final) in a series that has tracked software project outcomes since 1994. CHAOS 2020 analyzed more than 50,000 project profiles and classified outcomes as follows (see the OpenCommons summary of CHAOS results):

OutcomeRateValue delivered
Successful (on time, on budget, on scope)31%~100%
Challenged (ships late, over budget, or reduced scope)50%~50% (our assumption)
Failed or cancelled19%0%

Weighted expected value capture across the full distribution:

(0.31 × 100%) + (0.50 × 50%) + (0.19 × 0%) = 31 + 25 + 0 = 56%

Round to 60% to account for the shortlisting lift: buyers who run a real evaluation screen out the weakest partners before they ever score this stack. Shortlisted partners sit above the raw industry average.

Note on the 50% value estimate for challenged projects: Standish categorizes outcomes by delivery (time, budget, scope), not by business value delivered. The 50% is our assumption, not Standish data. Adjust it if your experience says challenged projects usually deliver most of the business outcome (raise it) or that scope cuts typically kill the ROI (lower it).

Ceiling at 95%: The last 5% is reserved for factors the partner cannot control: your team's capacity, requirement changes discovered during build, market timing. No partner honestly earns 100%.

Project size matters: This baseline is closest to a shortlisted mid-size engagement. CHAOS data shows large enterprise projects run closer to 20-30% success, while small projects run 80-90%. If your project sits at either end of that spectrum, adjust the baseline to match.

A note on the source: Researchers have questioned Standish methodology, most notably Eveleens and Verhoef (The Rise and Fall of the Chaos Report Figures, IEEE 2010). We use the numbers as a directional baseline, not a precise prediction.

Track record
Have they shipped similar work in your market before? Will they let you talk to those clients, and what do those clients say about quality, communication, and outcomes (not just delivery)?
Option 1
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Option 2
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Process
Do they run real discovery, testing, and feedback loops? If you are in a regulated industry, do they actually understand the standards, or are they learning on your dime?
Option 1
0
Option 2
0
Access
Can you reach the team and their leadership directly? Are they in a timezone, culture, and geography where fast, honest communication is realistic, or are there gaps that will cost you later? And is the geography itself stable, or is there a real chance political or operational disruption stalls the work?
Option 1
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Option 2
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Expected value capture
60% baseline + factors (capped at 95%)
Option 1
60%
Option 2
60%
D2Cash cost to ship
The quoted price plus any rework the budget does not account for. Enter the budget and an estimated rework percentage for each option.
Option 1
Option 2
Budget ($) iThe quoted project price from each option. If one budget includes PM and QA and the other does not, note that the cheaper budget may have higher rework.
Rework % iPercentage of the budget spent fixing defects and reworking deliverables. 15-30% is typical. Teams with weak QA or unclear requirements can hit 40-50%. A partner with strong testing baked in may be near 0%.
D3Internal time cost
How much of your team's time each option will consume. This is the cost that never shows up on the proposal but shows up on your calendar.
Option 1
Option 2
Senior sponsor hrs/wk iHours per week your senior people (CEO, CTO, VP) will spend coordinating, clarifying requirements, and reviewing work. Ask each option directly: "How much of my time will this take?"
Sponsor opportunity cost ($/hr) iNot salary. The opportunity cost of what that person could be doing instead. C-suite: $300-500/hr. VP: $200-300. Director: $150-200.
PM / coordinator hrs/wk iHours per week your PM or coordinator will spend managing the engagement. Some partners require you to provide your own PM. Others bring their own. The difference adds up fast.
PM opportunity cost ($/hr) iOpportunity cost of a PM or coordinator. Typically $100-150/hr. Lower than sponsor rate, but the hours often add up faster.
Quoted duration (months) iThe timeline each partner quoted. Not what you expect to actually happen — what they promised.
Expected slip (months) iHow many months past their quote you expect each partner to run. Be honest. Look at references and past performance. Teams with timezone gaps or thin project management tend to slip 2-4 months on a 6-9 month project. This is slip against their quote, not against your business deadline — that is measured in D4.
Actual engagement (months) iQuoted duration plus expected slip. Internal time cost scales with this number, because a project that runs longer is more sponsor and PM hours on your side of the ledger.
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D4Time to value
What it costs the business when the project ships late against your deadline — not the partner's quote. Most buyers have never put a dollar figure on this. It changes the conversation immediately.
Option 1
Option 2
Cost of 1 month delay ($) iLost revenue, delayed savings, missed contract deadlines, competitive window closing. If you cannot answer this question, it is worth stopping to figure it out before comparing budgets.
Target completion (months from kickoff) iWhen the business needs this done. Compared against each option's actual engagement to compute months late. If you leave this blank, no delay cost is charged. Early delivery is upside not modeled here.
Months late against target iActual engagement minus target completion, clamped at zero. This is what drives the delay cost.
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Scorecard

DimensionOption 1Option 2
Enter numbers for both options to see the analysis.
Partner Value Calculator · Atomic Object