Indirects In Productivity and Progress Calculation

Member for

16 years 7 months

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.

Member for

24 years

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