Vladimir,

100% agree.

From my prior posting;

*** “If you want a good budget (estimation) and control over your costs. You need to monitor unit costs.”
Agree – The problem is many forgot about it, all you need is to add are production quantities, is that simple.

I was referring to timesheet data, these are data entry forms; of course production is associated to a time frame, but not a daily time frame. We usually record production on a weekly basis; using another form, while time sheets on a daily basis. Our reports provide you with weekly cost and production data as well as accumulated cost and production data so we can track trends.

http://rapidshare.com/files/269181396/Job_Costing_for_Construction.pdf

Best regards,
Rafael

Dear Rafael,

Thank you for your valuable reply to the topic.

Regards,

Safak

Dear Vladimir,

I need to make a clarification, "That" is my statement about the latest products of that company not theirs. I am at the beginning of the road for project controls that i dont want to discuss about that subjects in a open forum. Due to that fact I add a note to my post.

I am following your articles and software also. I am willing to discuss about project controls after few years with papers or articles in/from a society(ies) I hope.

Regards,

Safak Vural

P.S. Other note: I like the conversations about that subjects on this forum. Improve everywhere!

Dear Rafael,

I am working with a major CONTRACTOR side holding which is also processing in Turkey stock. There are bunch of detailed procedures for internal reporting and archiving due to regulations rising from stock. We were having audits internally and by international auditors periodically. We are preparing detailed budgets and monitoring costs in detail. I also involved in the cost controlling process for a small project where the situation demands my involvement.

Construction projects are different from all other projects in definition and reality according to me. Due to achieving major works in a restricted and short time period. Project controls over construction projects are becoming a nightmare. Especially PMs from construction methodology and site people is being a major reason for missed deadlines or negative balance in costs.

Cost control will be over a planned budget and actual according to breakdowns which determined by company itself. Budget is also a primary resource to judge PMs performance according to me. If you want a good budget (estimation) and control over your costs. You need to monitor unit costs. For construction works, the data is coming directly from planning. If you cost department is preparing budget without planning, QS, estimation … they will suffer in their first yearly closure.

Enterprise solutions and data management are key items for project controls. Due to this fact, “PRIMAVERA®” who starts as “Project Controls on a PC”, is now changing to “You cannot control a project on a PC”.

Regards,

Safak VURAL

P.S. This post only a personal opinion not a discussion.

Dear Planners,

My first sentence about that subject will be a global and non-solution answer: “Monitor actual manhours at the level you can manage”.

Previous project I worked we have a detailed and good structured “Personnel Time Recording Database”. We were monitoring the actual manhours for each badge ID , name of worker, discipline, trade, nationality……………., per each activity in the schedules (over 15,000 activities for several projects with total 25 million direct manhours) and variation numbers, site instruction numbers or weather downtimes etc. on daily basis. Personnel and site construction departments fully involved in the process and we can make system running for 2000 personnel with 3 timekeepers under my supervision.

Anytime I want I can recall which crew, which trades (or who?) worked on a single equipment foundation when and how much, how much labour cost for me and how much I charge my client etc…… The list will be longer. Sounds great?

Now I am working in a project where actual manhours recorded not detailed as above and these manhours supporting the technical office are not enough detailed, structured and correct. I am trying to sell a process like my previous project to my management but it is in the self right now. It is so hard to integrate site, personnel department and technical office (also cost).

After story part, let’s come to the part of the SETUP. If you want to have a system as I mentioned above you need to convince the PM. Personnel Department, and Construction People must involve in this. You will have resistance because everybody is doing their job perfect and nobody wants other departments to involve in their business. If you have all support and an integrated approach to the process you can start work.

The best way to collect manhours is per activities in the schedule. There are few hints for this:
1. Involve the construction people with the schedule and weekly, monthly updates (you shall do it for all project control items also)
2. Make your activity ID’s from activity codes as:
KDEXCAF001 – Project K Area D Work EXCA(Excavation) for F001(Foundation 1) instead of something like “C00123”
3. Prepare a activity list in excel-word etc. with detailed activity description, maybe you can mark some of them in the layouts. This will help site to record activities correctly.
4. Make construction people INVOLVE in schedule and process. Make them use this (for example after a low progress, you can give a weekly detailed activities worked and crews per activities to CM and prepare an explanation for low productivity). INVOLVEMENT – COMMINTMENT, COMMITMENT INVOLVEMENT.
5. Track a list of active activities and close access of timekeepers to access non-active activities. When a timesheet come with a wrong activity ID, make the responsible engineer to correct it quickly.

You need to monitor unit costs and performance; this data will be a savior for future projects or rebaselines. For our latest 9 project packages our P.F. for construction manhours is 95.6% because we have a database about what we are doing on that area.

For the last if you have the weight to involve Personnel Department in the system. You can monitor the personnel movement quickly and everybody will be more careful and committed to time recording because salaries are at hand.

I can continue to write for pages put I will keep it for another subject.

Regards,

Safak Vural

If you have CMU installation in 10 areas of a job, this might mean at 10 different WBS. The same goes for the installation of 50 lighting fixture types on your BOQ, if a single WBS per BOQ in 10 different areas might add up to 500 different WBS versus maybe one or two Job Cost accounts.

Tracking costs on a per activity basis can exponentially add to the amount of items to track, I believe unnecessary. Better use Cost accounts in a way makes sense and distribute on the Schedule at a higher level. At home we do not track costs using the CPM, we use the Job Costing features within our financial systems, and many do not even have a formal Job Costing System.

Your Company got to make a decision on how much effort is going to invest as more and more detail creates more burdens on your supervisors, it takes time, it cost money. Of course there is not a better truth than the argument than a very simple costing system is better than nothing. Nothing is definitively not acceptable, too much of it kills the purpose and can even be counterproductive, keep the balance.

I would go for the upper level, and keep the details within the Job Costing System.