For the success of any project, cost estimates are very important. So reliable and the accurate estimates must be produced by the teams during the conception and definition phase of a project. Though it is a tough calculation to make, it is absolutely business’ bottom line. In fact, cost estimation is an ongoing process, and estimate revisions are common in order to ensure accuracy throughout project execution. However, you may put yourself at major risk, if you aren’t thorough with Total Cost of Ownership (TCO) analysis before investing in new technology.
In this article, we will provide you with some key parameters that will help you in assessing technology costs in construction.
Licensing and subscription fees: Each software programme has its own pricing models, and comes along with its own advantages and disadvantages.
- Per-seat licensing fee: If you are looking forward to purchasing software that requires being installed locally, per-seat licensing is an ideal option. This is because, as a contractor, you will know what the exact cost of the software is. However, one of the biggest backdrops is that the cost may begin to skyrocket if you add employees. Furthermore, in order to cover the upgrades, licensing fee must be paid on an annual basis.
- Subscription fees: You may have to pay monthly or yearly charges if you are opting for Software as a Service (SaaS). Usually, there is a cap on how much you will be charged. However, if you plan to choose any additional feature you may have to pay extra charges.
If you are examining the licensing and subscription fees, never overlook the support and upgrades. Ignoring the hidden cost might lead you to pay extra.
Maintenance and administration: Maintenance and administration costs are inevitable when you undertake a construction project. In order to determine the approximate cost that needs to be invested in the maintenance and administration, you must know who the maintenance services provider would be and do you have a skilled employee available with the inclination, skills, and time to maintain or control access. Besides, you must also identify if the vendor applies patches and upgrades or will you need to hire a trained employee to do that. You must also analyze the cost if you select external agents to have these tasks done.
Design, installation, and configuration: It is important for you to analyze how much will the design cost, if you’re having a custom piece of software designed for your business. You must also study what is the cost of changes that are made during the design phase. This is because nearly all software is going to have installation costs of some sort. Besides the design and installation costs, the configuration can be a significant cost. Testing to ensuring that the software works with your existing systems and workflows is one of the critical components of configuration.
Besides the aforementioned factors, it is infrastructure, efficiency and productivity gains, and training and support demand you to identify the true cost of software or hardware for your business. These factors further help you to uncover any hidden or unexpected costs before you start the construction project. To know more about the trending updates of the construction industry, stay logged into A F Alber.