A budget needs prices that correspond to the date and conditions under which the work will be executed. KOSAN has tools to update resources, review the impact before applying an adjustment, and recalculate linked APUs. This allows us to study a change while identifying which resources cause it.
The update is especially useful before submitting a new bid or reviewing the expected cost of pending work. If there is a contract, the internal update of the budget and the modification of the agreed price require separate treatments.
What should be checked before changing prices
Start by identifying the reference budget and the date of your resources. Then gather quotes or data that correspond to the unit, specification, location and quantity you need.
Maintain consistent economic criteria: currency, taxes, freight, and scope of supply must represent the same before and after the upgrade.
GAO's cost estimating guidance highlights documenting assumptions and updating estimates when information changes. Methodological reference on cost estimates.
Example: resources change in different proportions
Let's assume three resources for a work, all with amounts before VAT. Steel goes from $18 to $19.80 per kg; cement, from $200 to $210 per bag; labor remains at $450 per workday. The values are hypothetical and not current quotes.
| Resource | Quantity | Previous price | Updated price | Previous amount | Updated amount |
|---|---|---|---|---|---|
| Steel | 2,000 kg | $18.00 | $19.80 | $36,000 | $39,600 |
| Cement | 100 bags | $200.00 | $210.00 | $20,000 | $21,000 |
| Labor | 120 workdays | $450.00 | $450.00 | $54,000 | $54,000 |
| Total of these resources | — | — | — | $110,000 | $114,600 |
Steel increases 10% and the cement, 5%. The difference of this set is $4,600, equivalent to approximately 4.18% about $110,000.
The total effect depends on the weight of each resource. An increase of 10% in steel does not mean that the entire work increases 10%.
If you applied 10% to all three resources, the total would be $121,000. That would remain $6,400 above of the selective update of the example. The comparison shows why it is advisable to review prices by resource or by groups with a common justification.
How the change is transmitted to a unit price
Suppose that a unit price analysis uses 5 kg of steel per unit of work. Its steel component changes 5 × $18 = $90 to 5 × $19.80 = $99. The effect is $9 per unit for that component, keeping the quantity and other resources the same.
The total direct cost and the integration components of the selling price must then be reviewed. If you also changed the productivity rate or the build solution, document that additional change; A price change and a consumption change have different effects.
What KOSAN lets you review before applying a change
The module Cost adjustment allows you to capture a percentage and select the type of resource you target. KOSAN prepares a preview with impact information and requests to confirm the application.
When the adjustment is applied, the APUs linked to the affected resources are recalculated. The system identifies blocked resources for review and has adjustment tools on selected resources.
For a set with different variations, like the example, you can update the resources with their specific prices or prepare separate adjustments. In Suppliers and quotes You can also register an offer and apply the chosen price to resource.
The practical advantage is to carry the update from the changed resource to the unit price analysess that use it, and review the result before closing the new budget reference.
How to preserve a useful comparison
- Identifies and maintains the version of the starting budget.
- Gather comparable price references and document their date.
- Defines which resources change and which remain the same.
- Check out the tweak preview in KOSAN.
- Checks blocked prices and resources that require other treatment.
- Apply the change and review the affected APUs.
- Compare the totals and integration of selling price.
The module Versions and scenarios Helps keep budget references and compare differences. Use names and dates that explain the purpose of each version: a new quote, a purchasing scenario, or a revision for an offer.
Frequently asked questions
Is it appropriate to apply a single percentage to all resources?
Only when the data and purpose of the scenario justify it. For an update supported by different quotes, review each comparable resource or group.
Does updating the cost automatically change the price of a contract?
The update allows you to study the budget data. The recognition of a modification to the client requires reviewing the contract, procedure and applicable authorizations.
Can I use the example as current market prices?
The figures are didactic. Use references from your region, date, specification and purchase conditions for a real quote.
KOSAN allows you to update resources and review their effect on unit price analyses, preserving a concrete explanation of why the cost of the project changed.
To identify how much each resource participates in the work, consult the resource breakdown guide.