This is the last section of your proposal, the budget (sometimes called the financial proposal). This might be part of the same document or you might be requested to provide it separately.
It is of prime importance that this section is synthetic and clear, and that its structure is solid.
This structure groups together a few industry best practices, and it is pretty much as good as it gets, enjoy!
Before we start, I need you to be familiar with a few notions:
Person hours: the amount of working hours necessary to carry out a task (e.g. 100 person hours can mean one person working one hundred hours or 10 people working 10 hours each for the task).
Person days: the actual time, expressed in days, you need to carry out the project. One person-day equals 8 person-hours (number of working hours in a day).
Project duration (days): different from person days, e.g. if I say that a project with four people will take 100 person days in the space of a month, it means that a team of four people will work 100 person days (25 each) for the total of a month.
Hourly rate: how much each person is paid per hour.
Daily rate: how much each person is paid per day. Equals the hourly rate times 8 (number of working hours in a day).
Overview of a financial proposal workflow
In a financial proposal, you need to outline to the evaluator:
The total amount needed for the project (total budget);
The total amount needed per Work Package;
The total amount needed per person;
The total amount needed per partner (in case you work in a consortium, I’ll give you the examples below under this assumption).
To do this, follow this workflow:
Estimate the number of hours and days you would need per each work package;
Estimate who will work on each work package for which amount of hours and days (person-hours and person-days);
Calculate the hourly and daily rate per person;
Multiply the person-hours by the hourly rate (and person-days with daily rates) of each person in each Work Package;
If you want to dig deeper, though (and I suggest you do), stick around and take a look at the next post. This is more of a collection of “soft” skills that will dramatically improve the effectiveness of your text and speed you up.
And as always, ask questions if you have any, and don’t forget to share my friend! 😉