Cost of Project and Component

theoretically the cost of project correspond to the total of all items of outlay associated with a project which are supported by extensive. component:1.land and site development 2. building and civil works 3. plant and machinery 4.technical know – how and engineering fees 5. Expenses on foreign technicians and training of technicians aboard 6. Miscellaneous fixed assets 7. preliminary and capital issue expenses 8. pre- operative expense 9. margin money for working capital 10. initial cash losses.     

1.land and site development: a) the cost and site development is the sum of the following b) cost of laying approach roads development c) cost of gates d) cost of tube wills e) cost of leveling and development.

 2. building and civil works: building and civil works over the following b) building for the main plant and equipment c) garages d) sewers, drainage etc. e) building for auxiliary service like steam supply, workshops, laboratory, water supply etc. f) other civil engineering works.

3. plant and machinery: the cost of the plant and machinery, typically the most significant component of the project cost, a) cost of imported machinery b) cost of indigenous machinery c) cost of stroes and spares d) foundation and installation charges. 4.technical know – how and engineering fees: often it is necessary to engage technical consultants to collaborators from Bangladesh and abroad for advice and help in various technical matters like preparation of the project report, choice of technology, selection of the plant and machinery, detailed engineering and so on.

5. Expenses on foreign technicians and training of technicians aboard:

6. Miscellaneous fixed assets: the include item like furniture, office machinery and equipment, tools and so on.

7. preliminary and capital issue expenses:  

8. pre- operative expense: a) establishment expenses b) rent rates and taxes c) interest on deferred payments d) start up expenses e) misc. expense.

9. margin money for working capital:  referred to as the margin money for working capital this is an important element of the project cost

10. initial cash losses.: Most of the project incur cash losses in the initial.