Identify and Account for All Project Costs

What happens here

The speaker clarifies that pricing is not about 'throwing darts at a dartboard' but about knowing exactly what each component costs. He breaks down costs into two primary categories: materials and labor. He further explains that labor encompasses many indirect costs such as trucking, equipment, insurance, truck payments, fuel, and the salaries of office personnel. He stresses that all these overheads must be accounted for and recovered in the project price.

Goal: Accurately calculate all direct and indirect costs associated with a project.