Costing and Budgeting

1. Tender & bidding
 1) Tendering: the process of bidding for work
  - "Private treaty" is probably the most widely used alternative

 2) Bidding process for contracts: normally conventional, closed auction
  - "Non-standard" bidding behaviour: factors outside the particular contract come into play
   => The theory doesn't always make sense
   => You want to submit a tender, how do you work out a price?
   => Decide what the work will cost / Estimate what others may bid, and what the client will pay

2. Costing
 ! Best guide is actual cost of similar activities in the past
 - how? divide activity up into parts and estimate for each and sum to get a total
  e.g. Empirical Costing models, Constructive Cost Model (CoCoMo)

http://www.mtisystems.com/cost-estimating-software-blog/cost-estimating-empirical-comparative-statistical-and-standards/

3. Budgeting
 - In outline, to use budgetary control is to allocate resources to activities/tasks, then monitor consumption of the resource as the task progresses
 - Classically everything is converted into money, but there are other possibilities (man-months, for example)