# Cost Estimation - Resource Method
## Business Case
### Problem Statement
Traditional costing challenges:
- Fixed unit prices become outdated
- No visibility into cost components
- Difficult to adjust for conditions
- Limited cost analysis capability
### Solution
Resource-based costing separates physical resource consumption (norms) from prices, enabling accurate, adjustable, and transparent cost estimation.
## Technical Implementation
```python
import pandas as pd
from typing import Dict, Any, List, Optional
from dataclasses import dataclass, field
from enum import Enum
class ResourceType(Enum):
LABOR = "labor"
MATERIAL = "material"
EQUIPMENT = "equipment"
SUBCONTRACTOR = "subcontractor"
@dataclass
class Resource:
code: str
name: str
resource_type: ResourceType
unit: str
unit_price: float
currency: str = "USD"
@dataclass
class ResourceNorm:
resource_code: str
consumption: float # Units per work item unit
waste_factor: float = 1.0 # 1.1 = 10% waste
@dataclass
class WorkItem:
code: str
name: str
unit: str
resources: List[ResourceNorm] = field(default_factory=list)
@dataclass
class CostLineItem:
work_item_code: str
work_item_name: str
quantity: float
unit: str
labor_cost: float
material_cost: float
equipment_cost: float
subcontractor_cost: float
total_cost: float
class ResourceBasedEstimator:
"""Calculate costs using resource-based method."""
def __init__(self):
self.resources: Dict[str, Resource] = {}
self.work_items: Dict[str, WorkItem] = {}
self.overhead_rate: float = 0.15
self.profit_rate: float = 0.10
def add_resource(self, resource: Resource):
"""Add resource to database."""
self.resources[resource.code] = resource
def add_work_item(self, work_item: WorkItem):
"""Add work item with reso...