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Indrect cost for Defining Budget & at later stage for EVA

2 replies [Last post]
AB Timo
User offline. Last seen 9 years 10 weeks ago. Offline
Joined: 22 Jun 2011
Posts: 108
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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.




AB Timo
User offline. Last seen 9 years 10 weeks ago. Offline
Joined: 22 Jun 2011
Posts: 108
Groups: None

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?

Gary Whitehead
User offline. Last seen 4 years 51 weeks ago. Offline

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



project planner, £300 per day (full time), required full time for 1st month, 50% from then until end of construction.


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?