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21/08/15
12:03
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Originally posted by akon786
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A little bit I know about project costing, that turn into a contract win is here below;
Proposing a solution includes the proposition and costs are calculated based on the scope of work.
Every opportunity has a Opportunity value and a real cost.
No company bids for a project unless it is Green (means you have to make money) Calculations on project cost ( Resources, Infrastructure and all other perceivable business expenses are taken into account) and the CFO along with the Business leaders determine how much Gross and PAT the deal should be making.
So you go with eyes wide open on what PROFITABILITY you want out of the contract over the period of execution even before you win the business.
There is Risk and Mitigation strategies and revenue buffer also in place, which protects the PAT almost at all times unless the BDM and the CFO has missed out something really crucial which does not happen generally with well run businesses.
So, It is reasonable to say that Cos. do know how much money there are going to make.. in due course.
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agreed - this is obvious, but well put; and it's clear some are just looking for any kind of negative that they can spin (even if it makes no rational sense).
shorters, dereampers looking at cheaper buy in, etc...