Friends,
I would like to open a discussion on Inclusion of Indirects in Productivity and Progress calculation in projects.How you are managing indirects in your schedule and whats the methodology used to calculate the progress of Indirects.
I am working in an oil and gas construction company and we are considering QA/QC,Material handling and scaffolding in indirects.
Please share your thoughts .
Cheers,
Jiso Thomas
I think it largely depends on how and why you are measuring progress.
If, for example, you are using Earned Value and presenting the client with a actual / forecast vs planned curve, the client might expect the total Earned Value at completion to equal the contract price, in which case indirects should be included.
If you are tracking productivity in terms of earned value vs actual cost, it might be useful to include indirects in order to highlight any issues with inefficient QA processes, for example.
But if you're just measuring site progress to aid site project management, I would ignore indirects.
Hi Jiso,
There are some construction projects where enabling and temporary works are measured as part of the progress, however, in your case, this is the first time i heard about such thing. I think it is not a common practice in construction and the progress calculation becomes more cumbersome, however, the way I would do it is a prorata with the permenent works involved so basically you just need to measure permanent works completed.
Regards,
Daniel