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Budget planning examples3/12/2023 ![]() Employer’s social security charges per year per employee.To do this you need to have the following information for each person: Once that is taken care of, it is time to estimate the hourly rate. With the number of hours per day (8) and the number of working days (around 210) then you can calculate the hours worked per year. That gives you the number of working days per year your resource will be available. In summary, you work out the working days per year, then take off annual holidays, bank holidays and an estimate for sickness absence and other days out of the office e.g. You’re combining resource management, schedule management and project financial management (important project management Knowledge Areas) to prepare a package for your proposal that no one will be able to resist! Step 5: Bring It All TogetherĪs mentioned in the beginning, presenting everything in a clear and simple way is the number one requirement of a good budget. Remember to note what work package each travel is grouped under.įor subcontracting you merely need to indicate who you will hire, in what work package and for what. If you don’t have estimates for daily allowances you can refer to the official ones used for the OECD staff (available here). After you have that, add a daily allowance for each traveler. Slightly overestimating the costs is a good idea. purchasing specific equipment).įor Travel Costs, multiply the number of travelers by the cost of a return ticket to their destination. You can add a third category “other” to use for whatever costs are still left out (e.g. Subcontracting and travel costs are the two other categories of costs you need to take care of. Step 4: Add Subcontracting and Travel Costs In the example below, Almira has been allocated 656 person-days for work package 1. If you are part of a consortium, remember to separate these estimates per company, as you will also need to present the budget broken down per company. Is it developers? Is it marketers? Is it researchers? Each one has a different hourly rate and a different pace of work. I don’t mean who personally (name and surname), I mean what type of person or role will work on each task. ![]() ![]() Not only that: you need to estimate who will do the work. In order to estimate costs well, you first need to estimate the amount of work you need to put into each activity you have planned. The Gantt chart is one of the documents every project needs - but for now, at this point in the work, you won’t need to complete every one of those in detail. This will also tell them that you have thought that part out carefully. If you’re trying to convince the evaluator, then plot every work package and task on a Gantt chart and provide him or her with a clear picture of what will happen when. It is undeniable, however, that they are the clearest overview you can get of a project in its entirety. In this article, I will show you exactly how to do that. In a nutshell: the evaluator needs to be able to read a one-to-two-page document and feel reassured enough to give you the £600k you need. Not only a solid justification, actually, but also a synthetic one. Second, you need to provide solid justification for the costs you will incur in each phase. This is key to doing a presentation to management. So, how do you convince an evaluator that your idea will work?įirst, you need to explain your project and process well in the narrative of your proposal. (For more on how to create a project budget, this article has all the info you need.) Granted, if the budget you build in the proposal phase is carefully put together and everything goes according to plan, you will end up using that directly as your project budget, but for the purposes of this article, let’s just stick to the proposal phase. Worked Example: Hourly Rate CalculationĪ proposal budget is similar to a project budget, but with a very different goal.Ī project budget is meant to guide you step-by-step throughout the project phases, and is meant to be changed and adapted (within limits, of course) to what happens during the project itself.Ī proposal budget instead aims to convince the evaluator that reads your proposal that you have a solid grasp of your plan and that you are worthy of being trusted with funding.Step 4: Add Subcontracting and Travel Costs.
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