Project Management, Cash flow analysis, project cost estimation

1. Cost Estimation of a Project
Mangesh S Kulkarni
Sharad Institute of Technology, College of Engineering,
Yadrav-Ichalkaranji

2. Preliminary Expenses
● Market survey cost
● Equipment purchase
● Early payroll
● Initial inventory investment
● Registration fees

3. Technical Knowledge
● Cost of Technology development or purchase.
● Employee training cost

4. Land and Site Development
● Land Purchase cost
● Legal and registration fees
● Land development cost

5. Utility
● Expenses for common facilities in the project

6. Plant & Machinery
● Basic cost of equipments
● Tax
● Transportation cost
● Erection & foundation cost
● Installment cost

7. Construction Cost
● Construction of factory Building ( Higher rate of depreciation)
● Non factory building (Lower rate of depreciation)

8. Other Expenses
● Preoperative Expenses
● Contingency
● Margin Money for Working Capital

9. Reference
● Project Management by Sanjiv Marwah