1)Is the above statement is correct?
2) how should I deal with such costs?
I still remember that I estimated the the cost of rental tent for event part project during my studies of PM, however here I have a conflict.
Is the tent rental is one of (facilities category and not equal Equipment rental?)
Please your contribution as my background is IT not Finance.
BR,
Mansour Saving Changes...
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RAJESH K LProject Manager, PMP| Bharat Electronics, Bengaluru, IndiaBengaluru, Karnataka, India
Costing shall & should include all possible expenditure foreseen including the once you mentioned. However one point to keep in mind. "When is the expenditure likely to be incurred?" Saving Changes...
In general, any directly attributable costs would be included as part of the cost estimation and budget development exercise.
Equipment rentals feels pretty clear as a directly attributable cost.
License costs may or may not be - for example, if there is an enterprise license for something which the project team will be using, they may not need to budget for that.
If the insurance costs related directly to the services or products created or provided then those should be included, otherwise those might be considered overhead costs for the company and you might need to consider them as part of the indirect costs of the project.
Specific license and insurance for the project are accounted in project cost, a corporate fee related to licensing and insurance will be transferred to project according to company rules with other fees. Saving Changes...
Keep the basic rule of business in mind that " nothing comes free of cost". Which means that all/any cost incurred at any/all stages irrespective of whether it is happening at the corporate level or project level itself need to be accommodated in the cost of the project.
If the cost is already included in the Corporate level, it would sure to be apportioned and levied to the project in the form of corporate expenses /overheads. If it is in the project level, it will be accounted in the form of Direct or Indirect cost as per the contractual norms of the specific project. Saving Changes...
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