Cost of project–
The cost of the project can be broadly classified into the following
–Â Â Â Â Â Â Â Â Â Land and site development
–Â Â Â Â Â Â Â Â Â Building
–Â Â Â Â Â Â Â Â Â Plant and machinery
–Â Â Â Â Â Â Â Â Â Transportations erections and commissioning
–Â Â Â Â Â Â Â Â Â Miscellaneous assets
–Â Â Â Â Â Â Â Â Â Preliminary and pre- operative expenses
–Â Â Â Â Â Â Â Â Â Contingency expenses
–Â Â Â Â Â Â Â Â Â Working capital margin
Though the cost of machinery often constitutes a major element in the total project cost, its estimation need not pose problems since this can be based on competitive quotations. On the other hand, cost of items such as land, site development expenses, ancillary facilities like power and water connections, intangibles like preliminary expenses and preoperative expenses, necessitates a careful inquiry and assessment. A realistic assessment of project cost with built in cushions (a reasonable contingency margin) for absorbing normal cost escalations could take care of the consequences of delay and cost overrun. Inflation factors are also considered.
Please let me know if you’re looking for a article writer for your weblog.
You have some really good posts and I think I would
be a good asset. If you ever want to take some of the load off, I’d
really like to write some articles for your blog in exchange for a link back
to mine. Please blast me an email if interested.
Cheers!