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Implementation cost % of project cost

Posted on 2013-06-26
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Last Modified: 2013-07-11
Hi guys

question re: what my implementation costs should be vs total project cost.

We've recently had a business model change were we are now actively chasing project work vs maintenance contracts and thus ...

Ive got a project we are looking to:

install APs
couple switches
couple fibre links
configure all logical network and security (NPS + VLANS + WiFi controller config)
VOIP handsets (15) install and config (+vlan)
+ ancillary stuff (IE everything IT related)


total cost of materials is around 40K (licensing incl) and Im calculating my usual implementatoin costs @ < 5k. This makes implementation costs about 20% of "materials".

Does this sound about right? Looking for averages or percentages.

Many thanks

Edit: Because i don't know how to use bullets correctly.
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Question by:CNCS_AUS
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LVL 47

Expert Comment

by:dlethe
ID: 39280230
You really need to do a statement of work.   Installation of a switch could be anything from plugging it in to spending a whole day setting up sophisticated zoning, lun mapping, and security.  Example, it is 10x more time consuming to configure only what is allowed from specific ports vs. making it more open and limiting just a few things.  

There could be dozens of entries for every single port if you want to have a SAN where nothing is trusted and you only enable bare minimum.

 Same for everything else.
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Author Comment

by:CNCS_AUS
ID: 39280269
Great point Friend --

Id rate this install as low-medium in regards to installation difficulty. VLANS yes, Aggregated Links yes but other then that straight forward being a small site.

Again just looking for average implementation cost %.

Many thanks again
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LVL 47

Accepted Solution

by:
dlethe earned 250 total points
ID: 39280281
in similar situations best to not so much look at cost as percentage of items, but average number of hours it takes to install things.  

Make it easy on yourself and contact two vendors who are listed as resellers/VARS for the equipment and have them quote their "standard" security config.  They probably already have a document that says what they will do and estimated hours & hourly rate.

Then compare.   Dont get hung up on hourly rate as much, because there are some people who charge $250/hr and get the same work done in 2 hrs that might take somebody who charges $150/h 4-6 hours.

Some of the work can be done by high school kids who'll gladly do it for $10/hr as example.
Other things like setting up wireless router best done by somebody who's done it many times before because they never even need to look at a manual and may even have some config files pre-built they take with them.

Such is the advantage of hiring a company who does this type of stuff all the time.
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Assisted Solution

by:madunix
madunix earned 250 total points
ID: 39286302
I think 20% of the material is fine, however the implementation costs are usually more tied to number of hours than to cost of equipment. I would calculate the time it takes for the job, to make sure you are within a margin that is fair to you. It would be higher than a normal job.. in some places $100 - $150/hour, if it is a stress or rushed job higher.
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