Abstract:

It can be assumed that costs will have a major impact on the decision making process on the project realization or on the comparison of chosen variants, based on the features of projects. Great emphasis must therefore be put on the preliminary cost calculation, which will always include a certain degree of risk. Risk is generally taken as part of business, and work with it greatly affects the financial results of the company. So, it is considered as an uncertain event which leads to the possibility of losing. However, it can also be an opportunity. This article focuses on working with project-related risks, with an emphasis on costs. In order to build a project budget, it is necessary not only to choose a suitable calculation method but above all to identify all threats and opportunities and to analyze them thoroughly. Furthermore, it is important to define the procedure by which the risk will be quantified. The output of the study is a design of an appropriate project cost management model.