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Cost assumptions > Cost assumptions - Pg. 193

Stating Your Price 193 (a calendar month or a set number of working days): in many sectors of business, the nominal working year is usually defined as about 210 potential working days, taking into account weekends, bank holidays, vacation time and an allowance for sickness leave; the applicability of subsistence allowances; assumptions about client inputs: ie what it is assumed the client will provide by way of logistical support, documentation and so forth; arrangements for the recruitment and payment of temporary personnel; arrangements for the appointment and payment of subcontractors; the extent of computing requirements and basis of computing costs; the treatment of travel expenses, including the applicability of any cost limits imposed by the client. Defining the period of validity of your price is a point of key importance in bidding for overseas contracts, particularly when the work is to be under- taken on a fixed-price basis. Contract negotiations may take longer than expected, while the start of work may be delayed because of political and economic considerations. Though costs may have soared in the intervening period, the client is likely to insist that you hold to the price stated in your