Ultimate Guide Project Cost Estimating
Ultimate Guide Project Cost Estimating.
Price analysis is the process of examining and evaluating a proposed price to determine whether it is fair and reasonable, without evaluating its separate cost elements and proposed profit. price analysis always involves some form of comparison with other prices.
Perform price analysis even when you perform cost analysis. assuring the reasonableness of individual elements of cost does not always assure overall price reasonableness. as appropriate, use the following techniques and procedures to perform cost analysis verify cost or pricing data or information other than cost or pricing data.
Cost and price analysis are two interdependent methods of projecting project and program costs. price analysis looks purely at the unit price from a vendor, while cost analysis incorporates the reasonable cost to the vendor of producing the item to determine the fairness and appropriateness of the price quoted.
Jul, price analysis shall be used when certified cost or pricing data are not required see paragraph b of this subsection and. cost analysis shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing data are required.
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