Para 2.3.2 — NONCONSULT_MANUAL

a) Remunerations for Personnel deployed; b) Reimbursable: (Travel, logistics, Consumables, Materials, Tools, Hiring of third-party services, etc.); c) Administrative and Miscellaneous (Mobilisation, demobilisation, Temporary Structures, Administrative expenses, office and IT equipment, contingencies, financing costs, Costs for hiring/ depreciation/ financing of machinery and equipment, etc)

2. Rates: Costs are normally estimated using unit rates (staff remuneration rates, reimbursable expenses) and quantities (exceptionally some items may be estimated on the lump-sum basis or percentage basis – Contingencies and support services).

3. Staff Costs: The estimate of staff cost is based on an estimate of the personnel time (staffmonths/ weeks/ days) required for delivering the services considering time required by each staff, his remuneration rate (or the minimum wage rate, if applicable), and the related direct cost component. In general, staff remuneration rates include basic salary, social charges, overheads, fees or profit and allowances.

2.3.2. Estimating Costs, Setting the Budget, and seeking Approval. 1. Preparation of a well-thought-through cost estimate is essential if realistic budgetary resources are to be earmarked. The cost estimate shall be based on the Procuring Entity's assessment of the resources needed to carry out the services: managerial and staff time and physical inputs (for example, materials, consumables, tools and machines). Costs shall be divided into three broad categories. Profit element, Taxes and duties should be added to the estimated costs:

Chapter 2: Need assessment and Procurement Planning 4. A mismatch between the cost estimate and the Services and Activities Schedule is likely to mislead service providers on the desired scope, quantum, and frequency of service required, and this could lead to serious problems during contract implementation.