3.5 Project Initial Cost Estimation 3.5.1 Initial Cost Estimation Breakdown 3.5.1.1 Policy for Cost Estimation Cost estimations for goods and services to be procured under competitive tendering procedure batch were based on the quotations obtained from multi-potential vendors and suppliers. For goods and services planned to be procured under a single source method, the survey team examined the elements of the elaborated cost breakdown as provided by the single vendor and supplier. 3.5.1.2 Composition of the Project Cost The project costs consist of the procurement cost and the project supervision cost. The procurement cost includes the purchase cost and indirect cost. The project supervision cost includes planning, procurement management, and soft components. Equipment Purchase Procurement and construction Equipment cost Administrative expense Total cost Maintenance fee Installation Procurement management Detailed design Design and supervision Design and supervision of equipment Procurement supervision Soft component Source: Preparatory Survey Team Figure 3-39 Composition of project cost 110