Project cost

What it means

For knowledge work, time is most of the cost. Pricing a project means adding up each person's hours × their hourly value.

With that number in hand, any budget can be checked for profit or loss before work starts.

Example

A team of five with salaries from $110,000 to $150,000.

Team of five, 200 hours	$12,212
+ 40% margin	$4,885
Quote	$17,096
A flat $10,000 bid would lose	$2,212

In Time Valuer

Time Valuer prices a project from each team member's profile, adds your margin, and shows the result against a budget as a saving or a loss.

Related terms

• Cost-plus pricing
• Margin
• Fully loaded cost
• Cost of delay

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