Project Management: Cost vs. Price

Abstract

This article will present a review of how cost and price can be related to project management, what is the importance of each one separately and of a good "relation" between these two "indicators". A good "relation" between them might be a key of the project success and at the same time the cause for unsuccess. Therefore, in this article there will be a reflection about how cost and price relation can be interpreted and support a good decision making. Decisions factors and methods for a company pricing a project or select which costs are avoidable and which ones are necessary will also be explained along the article. The project's quality and profit are also two "factors" directly related to the relation between cost and price, the way the customers evaluate a value from a project from its price and the costs that are necessary to incur to sustain a certain quality of the outcome are also relations that will be further discussed here.