How to calculate the price of a project

The precise estimate of the costs and the time of a project is crucial to make sure you will stay within the limits of a budget. A miscalculation can lead to financial losses and ultimately make it  impossible to complete the project. Therefore it is necessary to dedicate special attention to detailed planning and to try and foresee possible complications. But how to know what price is reasonable and appropriate based on the quality and complexity of the work to be performed? Or how to estimate the time it will consume? Here are some tips to resolve these issues:

1. Review the process

Make a list of all the necessary steps to carry out your project. This can range from items such as obtaining permits, setting or changing working hours or even more simple things like preparing equipment, etc. If possible, ask a colleague who has more experience in particular parts of the process to assist and provide a second opinion, which will help ensure that you did not leave anything important out.

2. Estimate how much time each part of the process requires.

If you already have in place some sort of time tracking system to follow up on the time devoted to each task or activity, you can use information generated previously to make a more accurate estimate of how long each step is likely to take. If you still do not have a system like this, it would be advisable to implement one soon. Knowing the time it usually takes to perform specific activities or the cost in time of certain projects, will allow you to have a better idea of how long it should take to develop similar ones in the future. Keep in mind that working time represents a large part of any budget.

Time Tracking by primaERP


3. Estimate internal work costs

This is the cost of your time and that of your employees (if you have them). To determine the value of your work is to maintain the balance between the market price, business costs and the amount you will bring to your customers. Begin by answering the following questions:

  • What is the market price for a job like you do in your type of industry and in your area?
  • How much experience do you have? Not only in your area of ​​work, but also as the owner of your business. Being good at what you do is one thing, being able to manage a business, meet deadlines and be reliable for customers is another, and very important, one.
  • What hourly rate are you willing to accept to cover your expenses and also feel comfortable and well-paid? How much are you willing to pay your employees for the work to be done?
Use a time tracking system to follow up on the costs of your staff. This will make it possible to identify where time costs are going beyond what has been planned and thus make it possible to prevent things from getting out of control.

4. Calculate external labor costs

These are the costs of sub-contracts you need to perform specialized jobs as in the case of an electrician, a plumber or a consultant. For your calculation to be more accurate you can ask them to provide you with a  budget in advance.

5. Material costs

Make a list of the material you will need for the project. It includes from things as simple as chairs and tables to obtaining higher capacity servers or rebuilding a whole computer network. Again, remember you can check with some of your colleagues to make sure you have not forgot anything.

6. The margin of error

Once you have an approximate price, add an extra percentage to cover unexpected expenses that may arise during the project. This margin can be between 10 and 30 percent, depending on the type of project and industry: the longer the project runs the bigger the risk of having some kind of extra cost and some industries, such as construction, often have greater fluctuation in the price of material and personnel.

7. Follow up on your costs

Establish a system to record and track project costs during its realization. You can for example ask for regular reports from your sub-contractors and enter them into a spreadsheet where you enter all your costs.

Is it better to charge by project or per hour?

If you're a consultant, designer or any other type of independent worker and if you have a small or medium business, you will surely be faced with the need to determine the costs and prices of labor. Nevertheless, you will probably also face another important question about which we wrote an article that might interest you: Charge per hour or per project?


Oliver Maurice said…
Some information about homework and how it was originated you can found here. I think you should definitely check out this blog
Sophie Grace said…
I am impressed with your work and skill. Thank you so much for sharing and keep on shearing that types of interesting articles.
After completing all ordered buy nursing papers assignments, our best nursing paper writing service team is keen on uploading them to a platform where clients can access them with ease.
VRS Software said…
It can be difficult to estimate and control project expenses. And because keeping them within the original budget is generally difficult, executives need an effective tool at any stage in time to monitor expenses. To be sure, the industry today has plenty of instruments. By using large-scale software alternatives, such as Microsoft Project and the like, some companies overcome this issue. This does not work for everyone, of course, so we suggest looking at a cheaper and simpler manner to monitor expenses.
Here i recommended How to buy Retail Software or ERP Software at very affordable price.
Devi.Angularjs said…
The effectiveness of IEEE Project Domains depends very much on the situation in which they are applied. In order to further improve IEEE Final Year Project Domains practices we need to explicitly describe and utilise our knowledge about software domains of software engineering Final Year Project Domains for CSE technologies. This paper suggests a modelling formalism for supporting systematic reuse of software engineering technologies during planning of software projects and improvement programmes in Final Year Project Centers in Chennai.

Spring Framework has already made serious inroads as an integrated technology stack for building user-facing applications. Spring Framework Corporate TRaining the authors explore the idea of using Java in Big Data platforms.
Specifically, Spring Framework provides various tasks are geared around preparing data for further analysis and visualization. Spring Training in Chennai
Linda said…
Thanks for sharing your info. I really appreciate your efforts and I will be waiting for your further write
driving games
amyjones said…
Thanks for sharing this type of interesting information. I have bookmarked it to read again. The organization named Essays-Writers.com has evolved over the years to prove its capability to the clients. The analyze paper outline has changed over the years according to the requirements of the academic demands. In view of the above, the writers of Essays Writers.com have learned the needs and changed their writing styles to cope with the modern demands of academic institutions.
phamyen said…
Thanks for sharing. I hope it will be helpful for too many people that are searching for this topic click here cool math games
Software Base said…
This is the great blog which is explaining very well about the calculation of the project. buy microsoft office for mac UK at softwarebase.uk.
alicetaylor said…
How to Calculate Project Costs. Accurately estimating project costs is crucial to staying within budget. Get your estimate wrong and you could end up in the red ...

this article
saivenkat said…
Your very own commitment to getting the message throughout came to be rather powerful and have consistently enabled employees just like me to arrive at their desired goals.
Ciana Langham said…
Hello! If you see that you have no time for writing your papers then you can apply to the writing service such as https://elitewritings.com/high-school-essay.html There you can get professional help and guidance.
Qasim Khan said…
Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Buy Essay Online Cheap
Alex Zhen said…
It's good steps to calculate the price of project. It's useful mapquest driving directions
Jacob Oram said…
These tips are very useful for project managers, and they can calculate the price of their project and run their business easily. This strategy is the best for a successful project. Dissertation writing services.
Scott Stayris said…
Quickbooks is the advanced accounting software to track and manage business records. The software has multiple accounting features to grow your business. This is cloud based so you can create online backups to save your financial data. Transfer Quickbooks to new computer
Liza James said…
Precisely assessing project costs is urgent to remain inside the Furnished Office Dubai spending plan. This is an incredible blog which is clarifying very well the count of the task.
Your own special obligation to getting the message all through came to be somewhat groundbreaking. Very great post about Best Logistics Software in Dubai. I just unearthed your blog and needed to state that I have truly appreciated pursuing your blog entries.
Shaikh Zahid said…
To utilize parametric assessing, Auto Care Workshop In Dubai first separation an undertaking into units of work. At that point, you should decide the expense per unit, and afterward duplicate the quantity of units by the expense per unit to gauge the absolute expense.
John Kim said…
The superior accounting software to track and control business records. the software program has more than one accounting capabilities to develop your business. those recommendations are very beneficial for challenge managers, and they can calculate the fee in their project and run their business without difficulty. this approach is the quality for a a hit mission.
shaikhsalman said…
Business defense is first surveyed before an undertaking being started and is persistently confirmed all through the venture lifecycle. ERP Software Development Company This is a vital advance in Scrum structure. The undertaking should bode well in every single piece of its lifecycle. Assessment of the undertaking esteem is a significant method of setting up business avocation.
In a world of limited funds, as a project manage you’re constantly deciding how to get the most return for your investment
junaid said…
Venture cost assessments figure the assets and monetary speculation expected to execute an undertaking effectively. Customer Relationship Management Software Pakistan The objective of assessment is to recognize all the expenses related with the venture to make an exact spending plan and timetable. The better the assessment, the better you will actually want to outline your undertaking.
Alfarajioiluae said…
To use parametric estimating, first divide a undertaking into units of labor. Then, you must decide the value in step with unit, and then Kerosene Suppliers In Sharjah multiply the number of gadgets by the price in line with unit to estimate the whole fee.