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Adding subcontracts to P3e

2 replies [Last post]
Mon, 2007-06-04 06:35
Al MacLeod
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Joined: 14 Feb 2007
Posts: 22
Groups: Petro-Chem / Oil & Gas
Hi all,

I have added my man hours as resources (labour) with cost per hours to get the total cost of manhours.
I want to be able to produce a project cost s curve and I now want to add the procurement costs and the subcontracts. What is the general consensus.

Should I add the procurement costs as resources of material type and the subcontracts as resources of non labour type.

or

Should I add both as expenses.

What are the merits and downsides of both options?

Thank you in advance for any comments.
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Replies

Mon, 2007-06-04 09:56
#1
Karim Mounir
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Joined: 5 Apr 2006
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But even if the expenses is Lumpsum, it is distributed over the activity duration, it can be distributed uniformly over activity, start of activity or end of activity (through the Accrual option).
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Mon, 2007-06-04 09:49
#2
David Kelly
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Joined: 19 Oct 2004
Posts: 630
Groups: Petro-Chem / Oil & Gas
probably the most important consideration is whether the material and subcontracts are "lump sum" or "per diem".

In P5 expenses are always "lump sum". Whether Resources on an activity are lumpsum or per diem is an attribute of the duration type ( this means that ALL resources on a single activity are ALL lumpsum or ALL per diem).

So an activity with a duration type of "Fixed duration and units per time" has resources that are per diem, and the expenses - say bulk materials - are lump sum.

Have fun!
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