When the contractor prepares an estimate for a project it's important to diligently prepare a schedule (program) for the project. This schedule will provide the duration of the project which normally dictates the amount of overhead costs that should be included in the price.
Some clients provide a schedule or milestone dates with their tender documents which the contractor must comply with. However, in some cases the dates may be too optimistic and unachievable. It's therefore imperative that the contractor prepares their own schedule to ensure they can meet the stipulated dates. Should the contractor agree to dates they cannot meet they may find themselves incurring penalties because they completed the project late.
Preferably the contractor should resource their schedule so that they allow the costs for the resources required in their price. In addition they can ensure that they will have sufficient of the required resources for the project.
Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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