How To Estimate The Cost Of A Project

Table of contents:

How To Estimate The Cost Of A Project
How To Estimate The Cost Of A Project

Video: How To Estimate The Cost Of A Project

Video: How To Estimate The Cost Of A Project
Video: How to Estimate Project Costs: A Method for Cost Estimation 2024, December
Anonim

When ordering and executing any project, the question of its assessment arises. In most cases, it is possible to correctly estimate the cost of a project only after its completion. Both the customer of the project and its executor must participate in this procedure. The design complexity, manufacturability of the work performed, adherence to the established design deadlines and much more are subject to assessment.

How to estimate the cost of a project
How to estimate the cost of a project

Instructions

Step 1

Before you entrust the executor with the implementation of the project or take on it yourself, develop a work contract. This document should take into account all situations that may arise during the performance of work on the project, including the criteria for evaluating the work performed.

Step 2

Discuss in advance with the contractor and / or the customer the cost of certain types of work. It is determined by the average current prices for project activities in a given industry and a specific region. Refer to existing design quotation books, if necessary.

Step 3

If we are talking about the implementation of a complex project, the price must certainly be set by agreement of the parties, taking into account the real labor costs. It is convenient to start with a baseline cost related to normal design conditions and then adjust for additional work. In some cases, the amendment may include decreasing or increasing factors.

Step 4

Include in the cost of work on the project the salary of the team taking the contract, also indicating this in the contract. Do not forget to provide additional remuneration in case of early completion of the project and penalties in case of violation of terms and obligations.

Step 5

When evaluating the project, take into account the possible changes that will need to be made to the project due to the emergence of new regulatory documents, obsolescence of technology, and so on. If necessary, include these points in a separate order of the customer, which will be paid additionally.

Step 6

In the case when the project provides for the development, installation and commissioning of complex high-tech structures, their prices are determined by the manufacturer and are included in the total cost of the project. Research work in relation to objects subject to reconstruction is determined by calculating the cost in accordance with real costs or according to the relevant industry reference books.

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