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Project Cost & Manhour Calculation

4 replies [Last post]
Arun Vasanth
User offline. Last seen 19 weeks 1 day ago. Offline
Joined: 12 Oct 2009
Posts: 200
Groups: GPC Qatar

Dear Friends

 

Today I got a new thumb rule from my manager

That is 22% of the project cost is the Budgeted manhour.

Is this statement is correct .Please help me my dear friends...

 

 

Regards

Arun Vasanth

Replies

Christopher Hall
User offline. Last seen 6 years 44 weeks ago. Offline
Joined: 17 May 2012
Posts: 42
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Arun,

Its cost, i.e. divide by presumed hourly rate gives hours.  As Anning said, take it for what it is.  A rough rule of thumb when no other methods of estimation are available.

Cheers,

Chris Hall

Arun Vasanth
User offline. Last seen 19 weeks 1 day ago. Offline
Joined: 12 Oct 2009
Posts: 200
Groups: GPC Qatar

Dear Friends 

I am not getting his logic...

Both are different units..

If the 22 % of project cost is Manhour cost then it is ok...

How the 22% of cost will be the manhour??????

Anning Sofi
User offline. Last seen 50 weeks 2 days ago. Offline
Joined: 22 Jan 2012
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Dont take the rule of thumb seriously.. just take it for what it is worth..

Christopher Hall
User offline. Last seen 6 years 44 weeks ago. Offline
Joined: 17 May 2012
Posts: 42
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Arun,

It depends on where and what the project is.  We use a 'rule of thumb' from 60/40 - 70/30 for general construction projects.  Different ratios for offshore, regional, energy & mining and of course if the project has IEP requirements.

Regards,

Chris Hall