Dual XPR522 Technical Information PDF herunterladen (Seite 8)

Revised May 15, 2006

This kind of budget estimating is well suited to computer spreadsheet

software. You should have a standard template for performing these cost

estimates efficiently. For the labor cost, you could provide a table of the

key staff, each person's hourly charge rate, and the number of hours each

person will spend on the project. It is also useful to provide a table that is

subdivided by task so that the total cost per task is shown.

A spreadsheet is helpful for both the client and your project team as it

presents costs broken down in several useful categories. The client can

readily see how the resources are allocated and which tasks are receiving

priority. This format is also a valuable planning aid once you win the

contract. Each task leader can easily see who is assigned to the task and

how many hours are allocated. Each person can also see the total hour

commitment to this project and can integrate this information with the

other project requirements.

The fixed fee or the ceiling price should be clearly shown; under no

circumstances should the reader have to search for these key numbers. It

will aid the reader if there is a summary table, which lists each of the cost

categories with their estimated budget. Other summary tables might also

be included.

If it has not been specified in the RFP, it is important that you tell your

future client how you expect to be paid. The payment method depends on

a number of factors such as the nature of your business, your relationship

with the client, your cash-flow position, etc. One common method is to

request payment on a monthly basis, with your invoice submitted shortly

after the month end. Another common method of payment is based on

milestones, that is, the client releases certain fractions of the payment as

you reach specified milestones in the project.

In some cases, when the project is of a relatively short duration, a single

payment on completion of the project may be appropriate. Alternatively, if

the client is a new one, or one whose credit worthiness is suspect, you

may wish to collect all or some of your fees in advance. Because of the

large variation in how the payment can be made, it is essential that an

understanding be established in advance and that you clearly note your

preference in the proposal.

Your proposal should define the terms of payment that you expect and the

penalty if those terms are not met. For example you might specify that

your invoice is due within a certain period of its receipt, say 30 days, or

you might request that payment be issued immediately upon receipt of the

invoice. In either case, you may also wish to include a statement that a

penalty of, say, 1-5% per month, will accrue to overdue accounts.

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Dual XPR522 Technical Information Seite 8