Dear Ash,
1. I wish you had given complete information while raising the query. What kinds of projects does your company handle? Are they civil construction projects, EPC projects, IT projects or still something else? This information would have helped in giving you a focused reply.
2. Anyway, the total project costs comprise the following:
a) Material costs: - These include supplier selection costs, transportation costs, material handling costs, material inspection costs, and the cost of material itself.
b) Manpower costs: - These include the wages and salaries paid to the regular and contract employees, statutory payments, training costs, costs incurred to acquire labour licenses, costs incurred during visits by the labour authorities, etc.
c) Operational costs: - These include fuel expenses, transportation expenses, energy expenses, office rent at the site, etc.
d) Other expenses.
3. Calculation of manpower count during the project period: - Measure the total project span in months. Note the manpower count at the end of each month and then take the average.
4. Project cost per employee = (Total of paragraph 2)/Paragraph 3
Thanks,
Dinesh Divekar