Posted by: ahmedashfaque | April 21, 2014

Why cost calculation is so difficult on projects?


Ashfaque Ahmed's Blog

If you have made project schedule and effort estimate correctly, even then estimated cost calculations can go haywire. Notwithstanding other factors do not change, costing can still create problems for you.

Let me explain. There are many factors which affect costs on a project. You may need to give raise to your project team due to increase in pay scales of engineers across the IT sector. So even though effort put in by your project team, the cost goes higher than you expected.

When you had selected your team then you may not have imagined that salary of some of your team members was much higher than the average salary scale. In this case again your cost will be on higher side than expected. Then a team member has decided to pursue better opportunity with another company midway through the project. You have no option but to make a replacement…

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