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Expenses vs costs loading of programmes - Primavere P6 v.6.2

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Emmanuelle Prefol
User offline. Last seen 5 years 4 weeks ago. Offline
Joined: 24 Nov 2011
Posts: 14
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Afternoon,

More and more contractors programmes submitted are expenses loaded as opposed to costs loaded. Could someone give me a summary of pros and cons for doing so from both a contractor and an employer perspective? Thanks a lot.

Replies

Rodolfo Kurek
User offline. Last seen 11 years 8 weeks ago. Offline
Joined: 27 Jan 2013
Posts: 10

Hi Emmanuelle,

I am a lead planner of a EPCM project and I have the same issue. Contractor are usually "lazzy" in relation to keep a good track record to the project, which gives you a data to assess your project progress/performance.

Contractors are probably using the expenses feature to dump costs and present to you some sort of actual cost, remaining cost and at completion cost. As expense it is not time related, if is will be some sort of standard curve taht is not related to the resource.

Contractors Perspective - compliance with your requirements, loading costs into the project programme. Job easy to be done and do not do a proper cash forecast.

Employer Pesperctive - resulting in a cash forecast that does not reflect the project resources (labor and non-labor). It gives a lack of confidence in your cash forecast. You will get a different figure if you compare the resource curve with the expenses curve, which indicates that they are not Ok, if most of project costs are labor related.

In Summary, as a planner I would suggest you to create a planning requirements documents, in order to make it standard across all your Contractors. But First of all, you have to definy which level of detail you want to manage your programme of works and how reliable you data must be. I usually work on program of works and the record keeping plays a big role on my planning activities, as I will use it for future project.

If you need any help, please contact me on rodousp@yahoo.com.br and I can give some examples and tips.

Rodolfo Kurek