Dear All;
I am involed in defining a project budget. Costs for Direct manpower, Mahinery, materials, cost & overheads at site have been calculated. No I need to add indirect cost to complete my activity estimates process. And also at later stage I shall need to update the indirect cost alongwith direct cost. We have cost accounts but I am not sure how to distribute indirect cost on different projects.
Regards
Thanks Gary;
Suppose We have a Planning Department. Account Code 0001. Now this Department will be responsible planning & monitoring of 10 Projects. Now while making Budget should I distribute the cost as lumsum using hammock?
Secondly during updating , is it better idea to "check" the "Auto compute actuals" box in resources so that this indirect costs fill automatically with time?
Process is not hard:
-understand the various indirect costs that will apply
-estimate the costs per time period of each of these costs
-estimate when and for how long these costs will be incurred
-Load them onto activities
eg:
project planner, £300 per day (full time), required full time for 1st month, 50% from then until end of construction.
or:
Procurement manager, £40 ph, 8 hr/day, required 1 day/week from commencement of tender evals, full time from commencement of tender negotaitions, down to 1 day/week once all orders are placed, zero after final delivery.
Typically indirect costs are loaded onto LOE / hammock type activities
Is there anything specific you are not sure about?