Here are some of the problems with large scope, large budget projects:
Most large projects can be broken down into smaller projects. This has the following benefits:
- Customers don't know what they want until they start using a product. A long project means customers only get feedback on their specifications only after a lot of investment has already been done in implementing the specifications.
- Stakeholders think they must "specify everything" to avoid change requests, so requirements are often bloated with unneeded requirements.
- Problems with requirements, design or code usually only found towards end, when users try the system. Larger projects mean much work has already been invested in wrong requirements, design or code. Rework is expensive and wasteful. Large codebase means problems are hard to find.
Most large projects can be broken down into smaller projects. This has the following benefits:
- Stakeholders are forced to prioritize requirements.
- Usable software is put in the hands of users earlier, resulting in early feedback.
- Migration and transition is easier and safer.
- Mistakes in requirements, technical design or implementation are easier to find and fix, since the volume of code that has been created or changed is manageable.
- Learnings from earlier small projects can be input for succeeding small projects.
For the Philippine setting, I'd recommend that no project exceed Php 4.5 million ($100k) in labor ("implementation") cost.
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