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TABLE OF

CONTENT
INTRODUCTION

FAMILIARIZING WITH PROJECT REQUIREMENTS

COST ORDER OF MAGNITUDE AND APPROXIMATE COST

PROPOSAL PREPARATION ORGANIZATION

MAN-HOUR WEIGHT DISTRIBUTION

UNIT COST CALCULATION

MISCELLANEOUS COSTS

CHANGES/VARIATION ORDERS

CONCLUSION 1
INTRODUCTION

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FAMILIARIZING WITH PROJECT REQUIREMENTS

PROJECT REQUIREMENTS
To know client organization
FAMILIARIZING WITH

as a whole

To know project’s major


team members in client
organization

To know project specific


équipements
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FAMILIARIZING WITH PROJECT REQUIREMENTS

Category I

Clients may
be grouped Category II
into three
categories

Category III
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COST ORDER OF MAGNITUDE AND APPROXIMATE COST

Project engineering consists of several stages, including:

Conceptual Engineering

Basic Design (FEED)

Construction Engineering

Transportation and Installation Engineering

Commissioning and Hookup Engineering


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COST ORDER OF MAGNITUDE AND APPROXIMATE COST

several factors shall be considered


. Client
Client approach in
Client approach in representatives
document
invoice payment knowledge of the
evaluation/approval
job.

Typicality of the
Consultant need for Market situation
project and
the project and and competitors
availability of Goby
present workload approach.
documents

Consultant plan for


future expansion 6
PROPOSAL PREPARATION ORGANIZATION

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MAN-HOUR WEIGHT DISTRIBUTION
• Example 6.1. The following observations are made :

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UNIT COST CALCULATION
A - Statuary Costs

1.Direct tax on the salary


2.Tax on the contracts 5.Health insurance
3.Leave payment 6. Hospitalization insurance
4.Contract stoppage payment 7. Training during job
5.Retirement deductions 8. Retirement deductions

B - Consumables/Indirect Costs
• 1. Reproduction/stationery
• 2. Lunch, refreshments, and housekeeping
• 3. Team building
• 4. Bonuses
• 5. Indirect costs 10
UNIT COST CALCULATION

C - Mobilization Costs
1. Office rent
2. Office utilities like electricity, telephone, etc
3. Desk, chair, filing
4. Computer
5. Printer, fax, scanner
6. Software

D Profit

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UNIT COST CALCULATION

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MISCELLANEOUS COSTS

CHANGES/VARIATION ORDERS

change Order Cost Estimate

Contractual Obligations for Change

Change Order Payment

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CONCLUSION

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