The costs incurred for the construction of a project can be as diverse as travel costs, costs of raw materials, cost of goods, cost of supplies, and so on. Each project would fail if not casserole, at the planning stage, the costs to be incurred. In this guide I will explain how to calculate the cost of any project.

Identifies the types of costs to be incurred. The cost of a project can be classified in costs for labor , costs for consultations, costs of purchase, costs of travel, costs for unexpected costs and mitigation of risks. The first are the costs of people in your company who work for the project. To calculate accurately, you need to know if people are permanent employees or leasing contracts. The former are made ​​by the company at any time while the latter has a temporary contract with a company temporary. Costs for advice are those who need support to pay for the companies that provide consulting services for the project. Costs for purchases can be divided into raw material costs, costs of materials, costs for intangible assets (for example, software licenses for operating systems), equipment costs, costs for supplies.

calculate-cost

The cost of raw materials are the costs that must be incurred for the purchase of the materials you need to make to get the finished product. For example, if you have to build a bridge, a raw material may be steel. The cost of the supplies are all those who need support to pay for the production of a work by an outside company. The travel costs are those incurred for personnel shall move for work related to the project. Remember, though, not to calculate the travel of staff of companies that provide supplies or consulting firms, if such trips are included in their contracts. The costs for unforeseen costs are allocated to support in case you risk events. Finally, the costs of mitigation are the costs to be incurred to reduce or eliminate the impact of risks.

Calculate the monthly costs of individual activities. It ‘necessary to calculate the costs that you incur every month in order to monitor the progress of the project. If you do not, you risk to find you at the end of the year, with high costs because you do not have checked the progress monthly. The calculation of the cost of permanent staff is calculated by multiplying the cost of labor for each professional figure for the number of hours a month to work on the project. You need to ask your manager the hourly rate to be applied because it is not the same for all employees, the company, in fact, apply an average cost for each professional.

The calculation of the cost of workers with temporary contracts is calculated by multiplying the hourly rate that you pay the company for the temporary number of monthly hours of work. The cost per hour, in this case, is obtained from the contract that the company has with the company Interim. The remaining costs must be included when it is expected to issue an invoice. The cost of the project, in fact, have economic value but not financial, and therefore should not be considered payments. In the case of supplies, you will have to agree on a billing plan with the supplier, driven by the release of evidence of delivery. The costs incurred for the provision must display the values ​​of these bills exactly in the months in which they are issued.

Add up your monthly costs. You have to add up the costs of each month. Get, therefore, the monthly cost of the project which, together, give the total cost of the project. These costs will be useful to verify the monthly trend and to take the necessary action to bring project costs to their initial values. For example, if you observe that the costs incurred in a month exceed those initially planned, you can take cost reductions in subsequent months to return to baseline. You now have all the tools to calculate the costs of your project and verify its performance.