Guild of Project Controls: Compendium | Roles | Assessment | Certifications | Membership

Tips on using this forum..

(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?

(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.

Cost Allocation per task

7 replies [Last post]
ulysses garcia
User offline. Last seen 13 years 28 weeks ago. Offline
Joined: 22 Aug 2005
Posts: 259
Groups: GPC Qatar
Good Day,

In a lump sum contract how can i allocate cost to every activities, e.g. ( concrete works = $100,000); assuming there are 10-story building it will be breakdown into managable level of course.. then how would i can distribute the cost to allocate in every task.

Thanks , Uly

Replies

ulysses garcia
User offline. Last seen 13 years 28 weeks ago. Offline
Joined: 22 Aug 2005
Posts: 259
Groups: GPC Qatar
Hi guys,

I need to refresh from my original question. If it is a lump sump bugeted cost, I think it has no need to allocate resources in every task and if doing so ... you may indicated or allocate only as LUMPSUM resources.

Eva Martin
User offline. Last seen 16 years 21 weeks ago. Offline
Joined: 15 Feb 2007
Posts: 8
Groups: None
Hi guys,

Even it’s a lump sum contract you still need to assign resource and cost to every task or activities to validate the duration. Duration are driven by these resource qty or vice versa and either way will provide the planner comfort zone of the production rate being used.

If the contract is remeasureable then actual or expended resource qty should be recorded and requires to input on the following boxes;

Resource Complete:
Actual to date:
At Completion:
variance (Budget-At Completion) is automatically generated by the system.

cheers,

Mart
Neeraj Agarkar
User offline. Last seen 5 years 31 weeks ago. Offline
Joined: 25 Jul 2003
Posts: 61
Groups: None
Hi
By cost, if you mean your budgeted cost, then you need to enter the resources and the unit rate of each resource. Allow for Indirect costs as a separate activites.

If you mean, BOQ sale price, then your QS might give you the BOQ quantity of each activity.

Take it to a worksheets excel and workout the amount for that activity. You can then apply cost codes and Budgeted cost against these activities before importing back in P3.

- Neeraj
Eva Martin
User offline. Last seen 16 years 21 weeks ago. Offline
Joined: 15 Feb 2007
Posts: 8
Groups: None
Hey guys,

of course you can allocate resource and cost to a particular activity. These are two distinct pockets that has it’s own use. For example resource allocation requires input of number of materials, manpower and equipments, and cost is generated by putting unit rate on each resources or if you choose to shortcut the process of cost allocation you might as well input the cost manually.

If you plan to use ’internal weighting’ then you cannot mix it with the above mentioned system. Meaning you have to assign weight in each activity either on budget qty or budget cost fields and this is unconventional method and you need excel instead of P3 for this.
Riyah Suharto
User offline. Last seen 17 years 25 weeks ago. Offline
Joined: 6 Apr 2006
Posts: 10
Ulysses .. I though you’re still working in Minas !
In my opinion, yes it’s ok to use dummy resources to get % relative weight.

Regards,
|R|S|
Jakarta
Joseph Erwin Carg...
User offline. Last seen 7 years 18 weeks ago. Offline
Joined: 7 May 2006
Posts: 33
hi there,

Arent there any BOQs for that item there should be a breakdown if how the QS have arrived with that computation, if none you should try to breakdown the manpower,equipment material needed for that item of works but will really take time, If you cannot do it seek help of the QS for them to tell you.

hope it gives you a little idea.

joseph
ulysses garcia
User offline. Last seen 13 years 28 weeks ago. Offline
Joined: 22 Aug 2005
Posts: 259
Groups: GPC Qatar
Is it ok to used dummy resources based on task duration to get the % relative wt.