14.0 Introduction 511
14.1 Global Pricing Strategies 512
14.2 Types of Estimates 513
14.3 Pricing Process 516
14.4 Organizational Input Requirements 519
14.5 Labor Distributions 520
14.6 Overhead Rates 524
14.7 Materials/Support Costs 526
14.8 Pricing Out the Work 529
14.9 Smoothing Out Department Man-Hours 530
14.10 The Pricing Review Procedure 532
14.11 Systems Pricing 534
14.12 Developing the Supporting/Backup Costs 535
14.13 The Low-Bidder Dilemma 539
14.14 Special Problems 539
14.15 Estimating Pitfalls 540
14.16 Estimating High-Risk Projects 541
14.17 Project Risks 542
14.18 The Disaster of Applying the 10 Percent Solution to Project Estimates 546
14.19 Life-Cycle Costing (LCC) 548
14.20 Logistics Support 553
14.21 Economic Project Selection Criteria: Capital Budgeting 554
14.22 Payback Period 554
14.23 The Time Value of Money 555
14.24 Net Present Value (NPV) 556
14.25 Internal Rate of Return (IRR) 557
14.26 Comparing IRR, NPV, and Payback 558
14.27 Risk Analysis 558
14.28 Capital Rationing 559
Problems 560
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.
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