My Project Management Lessons » Cost http://www.myprojectlessons.com Lessons learned in Project Management Sat, 28 Nov 2009 02:34:57 +0000 http://wordpress.org/?v=abc en hourly 1 Allow For Inflation http://www.myprojectlessons.com/2008/11/allow-for-inflation/ http://www.myprojectlessons.com/2008/11/allow-for-inflation/#comments Wed, 26 Nov 2008 09:05:26 +0000 michael http://www.myprojectlessons.com/?p=114 Related Posts
  1. Treat Restarted Projects as New Projects
  2. Check the Status of the Supplier
  3. Addition Clause in Contract
]]> Make sure to allow for inflation in cost estimates.
Particularly allow for large increases in raw material costs (e.g. stainless steel, copper).

This is important in the tender preparation process. You don’t want to offer a fixed price and find that your material costs go up dramatically.

It is common to put a clause in your contract/offer conditions that allow for price increases on certain parts of your work if the material costs increase above a set percentage.

Related Posts

  1. Treat Restarted Projects as New Projects
  2. Check the Status of the Supplier
  3. Addition Clause in Contract
]]> http://www.myprojectlessons.com/2008/11/allow-for-inflation/feed/ 0 Scope Creep http://www.myprojectlessons.com/2008/10/scope-creep/ http://www.myprojectlessons.com/2008/10/scope-creep/#comments Thu, 30 Oct 2008 10:40:50 +0000 michael http://www.myprojectlessons.com/?p=43 Related Posts
  1. Document Changes in Scope
  2. Get Instructions in Writing
  3. Document all Changes, Variations, and Agreements
]]> Be careful of scope creep.

Scope creep is where small additions or changes add up to contribute a larger and larger change in the scope of the project, often affecting delivery time and costs.

A few lessons I learnt:

  • If scope is changed or more is asked for, submit variations before proceeding.
  • If scope is changed you should ask for more money and more time.
  • Always be aware that the time to completion may change with a changed scope.
  • Even small additions add up to enough to increase the time to completion.
  • Make sure to get written approval from the client before additions, variations, or scope change.

Related Posts

  1. Document Changes in Scope
  2. Get Instructions in Writing
  3. Document all Changes, Variations, and Agreements
]]> http://www.myprojectlessons.com/2008/10/scope-creep/feed/ 0