Costs to consider when you’re preparing your project budget

Looking back on all the projects I’ve managed, I’ve found that there are usually the same types of costs being budgeted for.  So when you’re planning your next project, hopefully this checklist below will be of help.

  1. People costs. This includes internal staff, freelancers, contractors, offshore developers.
  2. Equipment costs. This can include hardware, software, machinery, projectors – anything that is purchased or hired to help deliver the project.
  3. Research costs. Many projects require up front time by the team to research appropriate solutions.
  4. Facilities that are required for use by your project team e.g. rented temporary workspace or accommodation
  5. Quality Assurance. The time and cost for this should always be included along with time and budget for any corrections/amends.
  6. Handover/deployment costs such as client or staff training, marketing, de-briefs or preparing DVDs to showcase the end product.
  7. Project specific costs – e.g. translations, the purchase of a particular font, flights, sundries
  8. Licensing/Royalties. Some projects, especially online ones, will need to cater for costs to cover licensing fees or royalties.
  9. Overheads such as lighting, heating. Sometimes this is an agreed fixed percentage per project based on the number of project hours or duration.
  10. Administrative costs e.g. additional insurances, additional telephone/internet costs for remote workers.

If there are other costs you can think of to add to the list, I’d be happy to hear from you.

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