7th June 2007, 02:21 PM
Just been having an interesting discussion with a client who wanted to know why a programme of p/x is going to cost more money despite a reduction in the scope of work following the initial submission of programme and costs.
Close examination of cost breakdown and discossuion with the contracting organisation in question reveals that the overall increase is because the new costs are based on 2007/8 rates whereas the inital submission was based on 2006/7 rates - acceptable so far.
However some day rates have gone up by as much as 20% (this is charge to client, presumably not salary). Client is not at all happy, claiming that uplift due to a new financial year should be 'reasonable'. Perhaps the client will want to tender out the p/x (against my advice), and the contractor will lose out - see alternate thread). Remember, if salaries go up by 5% then charge out is likely to go up more than that.
Beamo
Close examination of cost breakdown and discossuion with the contracting organisation in question reveals that the overall increase is because the new costs are based on 2007/8 rates whereas the inital submission was based on 2006/7 rates - acceptable so far.
However some day rates have gone up by as much as 20% (this is charge to client, presumably not salary). Client is not at all happy, claiming that uplift due to a new financial year should be 'reasonable'. Perhaps the client will want to tender out the p/x (against my advice), and the contractor will lose out - see alternate thread). Remember, if salaries go up by 5% then charge out is likely to go up more than that.
Beamo