This letter is being written to you to let you aware of my idea and seek your approval. I have been associated with XYZ construction company for many years and have worked in different departments to gain experience. I do not work as labor but mostly govern the work being done and take care of paperwork in the capacity of a manager.
The company takes many projects as it can be a house, mall, office, or any other building and several projects are underway simultaneously. It is not easy to manage such a huge team as every other day there is an issue with any machinery or any labor or a fight occurs among laborers but still, they manage to complete their work. There are several departments working under a contractor that takes care of everything and make the work happen.
After working for almost every department, I have decided to work permanently for the project cost department as it involves the mention of every penny that would be spent on any project entirely. Numbers are my game and I will be so happy around them.
Therefore, I seek the approval of higher management to include me in the cost of the project department and I have also arranged a proposal for a house project and attached it with the flowing letter.
Anxiously waiting for your positive response.
Project cost is defined as the cost required to complete the project till the end. It includes all the direct costs as well as an indirect cost. The project cost includes all or any expenditure made or estimated to be made. Every purchase or every deal that includes money, is a part of the project cost.
A complete project cost proposal is drawn and presented to the clients before starting work to let them be aware of all the expenditures and if they still want to continue with the project. The project cost includes everything from the start of the project to finalizing it.
Most of the projects require furnished homes with furniture and other accessories and that mount the cost a lot. It includes the estimation, budgeting, and controlling of costs throughout the project with the only goal of keeping the costs within the approved budget.
A project is considered successful if it is delivered on time with all necessary requirements within the approved budget because sometimes the actual cost is higher than the approved cost due to various reasons such as machinery malfunction, cost of raw materials may fluctuate, more damage than anticipated, etc.
While taking on a project of construction and furnishings, contractors add the cost of construction, plumbing, electrical and drainage systems, labor, paints, and every other cost in the proposal to aware the client of the construction budget on a total level.
The project cost for an empty space into a 5-bedroom house requires the following additions,
Before starting the construction or laying its foundation, a contactor follows a floor plan prepared by the architect for the desired space. Architects take everything into account while designing a house i.e., light, ventilation, wind, and other essentials to provide a comfortable living to their clients. These architects charge hefty amounts from their clients for designing a map of their house.
The first step in the process of building is construction which requires many laborers for digging soil, building a foundation with bricks, cement, and other materials, building walls, roofs, and floors, harden the brick walls with cement, and construct a complete grey structure.
Every raw material, machine, and equipment is purchased while laborers are paid thus, are included in the project cost.
Plumbers are hired for plumbing and installing drainage systems in the newly constructed houses. They require materials and equipment to carry out their tasks.
Every house is connected to the electrical system of its area to enjoy an uninterrupted supply of electricity before the completion of the grey structure. Every room is connected to the major PowerPoint of the house and experienced electricians perform this task. They require wires, switches, gadgets, tools, and equipment for the process.
Before painting, floors are tiled with ceramic tiles which takes a lot of time. Bathrooms are completed with the installation of sanitary accessories. Roofs are designed with different styles to overall enhance the look of the house.
All the woodwork of rooms, kitchen, and the lounge is done after the house is ready and requires theist step of paint.
After all the above-mentioned tasks, walls are painted at the end to give a final touch to the house and close the project.
Lights, locks, and other cabinets are installed.
Thus, every task requires money, and this is the reason clients are always worried about the budget before doing any major changes to the house because the making of a single room can cost a fortune because of the high rates of materials and labor costs. In addition, lights, pipes, wires, lanterns, and wood accessories, all add up to the project cost and make it difficult.
Every job or work has its positive and negative aspects. No matter how much hard work you put in, some jobs collapse, and your work is gutted. The significance of project cost management can be highlighted from the following points,