Do you want to implement your new idea and do not know where to start? For the practical implementation of your idea, you will definitely need a project. However, in order to put your project into practice and make a profit, you need to really estimate the amount of investments required for its implementation. The main criterion for evaluating a project is its cost. It includes the likely total resource cost for all types of work envisaged by your project.
Instructions
Step 1
Costing calculations are performed for each stage of the project. The first stage is the pre-project (preliminary) estimate of the project cost. It is necessary to assess the "order of magnitude" of the costs, since it is not yet possible to really determine all the necessary scope of work for the implementation of the project. The difference from the real cost here can range from? 25% to + 75%, it is impractical to determine a more accurate cost at this stage.
Step 2
Further in the course of the project, you will need a more accurate estimate, the so-called estimated cost. You can accept this estimate with an error of? 10% to +25%.
Step 3
The final stage is the final cost estimate of the project, i.e. acceptance of the agreed base price. This selling price cannot be reduced by more than 5% and exceeded by more than 10%.
Step 4
There are several generally accepted methods for calculating the cost of a project, you can choose them depending on the required accuracy and your capabilities regarding the cost of calculating. Let's consider them in more detail.
Step 5
The preliminary method for estimating the project cost of work can be designated "from top to bottom". You can use it for aggregated expert estimates of costs required at the early stages of a project, when you do not yet have a sufficient amount of information about the project. With this method, the project can be evaluated according to one of the performance indicators, which does not require large costs, but also does not give a high degree of accuracy, which can only be calculated with a more detailed assessment.
Step 6
It is possible to determine the final cost estimate of the project using the “bottom up” method. The method allows you to estimate costs at the detailed levels of the project, and then sum them up at more generalized levels with the final stage - obtaining the total estimated cost of the entire project. When using this method, the more details you add to the consideration, the more accurate the results will be. However, the costs of carrying out the above assessment will, of course, be higher.
Step 7
A variation of top-down valuation is the “analog” method. The name speaks for itself, i.e. it is possible to use existing data on the cost of previously implemented projects. The higher the similarity between projects, the more accurate the estimate.
Step 8
Another variation is the parametric method. It is necessary to find such a parameter of the project, which, if changed, will entail a proportionally equal change in the cost and the entire project
