Download project cost management template in excel for estimation and forecasting. During project-phases, you require where your project stand in terms of budgeting. Project cost estimation by functional point analysis.
- Project costing at completion stage
- Actual VS Budgeted Costing Planning
- Useful Charts and diagram, easy to allocate costing and tracking in each department
- Download Template in XLS format
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How to calculate project Expense costing?
Project costing or cost estimation is basically total cost expense on the completion of the project. Professional estimators are used in the cost estimation but there are still chances of minor variation in the actual cost. The cost estimation process is done in the pre planning phases of the project and can be altered as the project progresses and get better vision.
The accuracy of cost estimation is directly related to the clarity of the scope of the project to the estimators and the on-ground team. There are a number of different activities happening simultaneously which can be put together and the total of them can be used for the estimation purpose.
Project Cost Estimation Template
Few major ones are labor, travel, equipment or raw material cost, training costs, supplies and miscellaneous. It is good to define a proper budget for each and then monitor their expenses.
Different project cost estimating techniques are used widely few are mentioned below;
- Analogous estimating: In this technique advice from the experts is taken along with the cost analysis of the past similar project done. To get a margin for expense add or subtract 10 or 20 percent from the total estimated cost.
- Parametric estimating: Estimate is done mainly from the previous records of the actual project.
- Bottom-up estimating: This is the most achievable cost estimating technique as it is done after the scope is defined. After the clear scope, work breakdown is done and cost estimation is carried out according to the work breakdown.
So, it is better to have work breakdown structure for the cost estimation. The budget is allocated according to the expected expense required to finish a task. Task owners are defined in the work breakdown hence it is easier to manage the budget and there are lesser chances of deviation for the estimated cost. However, variance can be calculated by comparing actual and estimated cost.
Key Features of Costing Template.
Project costing is the overall expense on the project. There are ways to categorize the cost expense of the project but the simplest one is division into direct and indirect cost.
Direct Cost: It is basically the main expense with all the invoices and is already present on the estimation list. Mostly the listed expenses are;
- Labor cost– The workforce expense for the achievement of the project objectives.
- Materials/ Resources- The cost investment in the raw materials required for the final product/ outcome.
- Equipment cost– In large scale projects, technical or mechanical help is required for that some equipment is required to keep the project running smoothly.
- Transport expense– Always keep a separate budget for the travelling during a project.
- Software– At times you need to buy some software for project management or even to attain project goals.
Indirect Cost: The expenses which can’t be further categorized in the above mentioned list is termed as indirect cost. Some indirect expenses are quality control cost, security and utilities. These expenses do not fall in any of the categories so separate cost estimation is done to keep up with the budget. There are always chances of variation but that can easily be calculated with the comparison of actual and estimated cost.
Example of Project Cost Estimation:
Project cost estimation can be carried out in number for projects both small and large scale. But cost estimation is a great tool in the project management of the construction project which is explained further.
Construction Cost Estimation:
There are a number of expense components in construction projects and to keep them aligned is a tough task. So, it is better to line up your expenses and categorize them before the start. Capital cost or expenses are land acquisition, architectural planning, engineering, construction cost, taxes, insurance and office dues.
Related Template: Construction Cost Estimation Template
Project Cost Breakdown Template Excel
And another set of expenses that goes along with the life-cycle of the project are pays of the operating staff, labor expense, material cost, utilities and transportation. Total of all of these expenses concludes the total cost spent on a construction project.
Related Template: Cost BreakDown Template
There is always a room for variation so always keep the estimated budget high. By adopting this way you’ll end up smoothly achieving your targets.
This is premium Project Cost Estimation Template, so you need to purchase this template.