One of the essential components of any project is the establishment of a budget in which all the related expenses must be included. In this way, the eventual need to access financing or the possibility to develop the project through the use of own resources can be determined.
Before starting a project it is necessary to establish how the project budget will be distributed, the categories of costs involved, as well as to develop a time projection of the project cost flow (cash-flow) so that the investor to have throughout the period of the project deployment a clear vision of the amounts spent and the times when they must be available. In this way, also, the financing costs are optimized, in case they are necessary.
One of the means by which the investor can optimize its project costs is to identify potential suppliers of services, materials and equipment, assess their creditworthiness and select the most suitable for participation in the selection procedure in order to obtain the most advantageous conditions. After the completion of the selection phases, the conditions of collaboration with the selected suppliers are negotiated and the contracts related to the services to be provided and the acquisitions to be performed are signed.
Its role is to ensure the follow-up of contracts according to the conditions established with each provider of services, equipment or materials so that the project is carried out according to financial parameters and established schedule, both in terms of costs and in terms of service delivery, equipment and materials at the terms and conditions of the contractual framework.
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