Why putting costs in as units instead of cost is easier...

I review many schedules.  I used to make many schedules.  I have been noticing that many contractors prefer to enter costs as resource units instead of costs.  I recall it was better, but I cannot remember why it is easier - any insights into why this is common?  I can, and eventually will ask the contractors but I like to be prepared.

Z
Zoltan Palffy 👤 Member for 16 years 10 months

John

I think that one of the main reasons for doing so is for cost loading a schedule where you just have a lump sum per activity. So you just assign a cost as a unit. This makes it easier to adjust the cost if necessary for billing purposes. If it is listed under the cost category it is harder to adjust. This is especially true of you are using the Recalculate Actual units and Cost when duraiton % complete changes. However if you want to use earned value you have to use physcial % complete.

This is especailly true if a contractor is getting paid for stored material. He can bill agasint this activity without any real physcial progress. 

 

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