Guild of Project Controls: Compendium | Roles | Assessment | Certifications | Membership

Tips on using this forum..

(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?

(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.

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

2 replies [Last post]
John Reeves
User offline. Last seen 2 days 8 hours ago. Offline
Joined: 10 May 2013
Posts: 343
Groups: None

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.

Replies

Zoltan Palffy
User offline. Last seen 3 weeks 4 days ago. Offline
Joined: 13 Jul 2009
Posts: 3089
Groups: None

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. 

 

Tom Boyle
User offline. Last seen 3 weeks 5 days ago. Offline
Joined: 28 Nov 2006
Posts: 304
Groups: None

[mistake]