How to estimate the project cost

When ordering and completing any project, the question arises of its evaluation. In most cases, correctly assessing the cost of a project is possible only at its completion. Both the customer of the project and its executor must participate in this procedure. Structural complexity, manufacturability of the work performed, compliance with the established design timelines and much more are subject to assessment.

Instruction manual

1

Before entrusting the contractor with the project or undertaking it yourself, develop a contract agreement. This document should take into account all situations that may arise during the implementation of the project, including criteria for evaluating the work performed.

2

Discuss in advance with the contractor and / or customer the cost of certain types of work. It is determined by the average current prices for project activities in this industry and a specific region. If necessary, refer to the existing collections of quotations for design work.

3

If it comes to the implementation of a complex project, the price must certainly be set by agreement of the parties, taking into account real labor costs. It is convenient to proceed from the base cost regarding normal design conditions, and then adjust for additional work. In some cases, the correction may include decreasing or increasing factors.

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 implementation of the project and penalties in case of violation of terms and obligations.

5

When evaluating the project, also consider the possible changes that will need to be made to the project in connection with 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.

6

In the case when the project involves 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 to be reconstructed is determined by calculating the cost in accordance with real costs or according to relevant industry directories.