Distribution of Project Indirect Costs Among Project Indirect Resources

7/29/2019 Distribution of Project Indirect Costs Among Project Indirect Resources

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DISTRIBUTION OF PROJECT INDIRECT COSTS AMONG PROJECT INDIRECT

RESOURCES

Project Indirect Costs are the site-related costs needed for successfully completing a contract that are notdirectly linked to any specific project work package. Project Indirect resources are used to facilitate themanagement and administration of a project and are not linked to specific project works packages.

No Statement

1 Project staff cost are approximately 27% of total Project Indirect Costs

2 Temporary Construction costs are approximately 9% of total Project Indirect Costs

3 Temporary Support Systems & Utilities costs are approximately 9% of total Project Indirect Costs

4 Project Equipment / Total costs are approximately 15% of total Project Indirect Costs

5 Site Office costs are approximately 9% of total Project Indirect Costs

6 Financing & Contractual costs are approximately 9% of total Project Indirect Costs

7 Staff Mobilization & Support costs are approximately 9% of total Project Indirect Costs

8 Material Storage & Handling costs are approximately 9% of total Project Indirect Costs

9 Health, Safety, & Environment Program costs are approximately 3% of total Project Indirect Costs

DISTRIBUTION OF PROJECT INDIRET COSTS AMONG PROJECT SUPPORT ACTIVITES

Project support activities are tasks required for successfully completion a project that are not linked tospecific project work packages.

No Statement

1 Schedule & Coordination of work costs are approximately 5% of total project Indirect Costs

2 Cost Management costs are approximately 5% of total Project Indirect Costs

3 Site Plant & Maintenance costs are approximately 11% of total Project Indirect Costs

4 Contractors Site Supervision costs are approximately 3% of total Project Indirect Costs

5 Shop Drawings costs are approximately 3% of total Project Indirect Costs

6 Quality Assurance costs are approximately 15% of total Project Indirect Costs7 Purchasing & Accounting costs are approximately 11% of total Project Indirect Costs

8 Material Storage & Handling costs are approximately 14% of total Project Indirect Costs

9 Staff Support costs are approximately 14% of total Project Indirect Costs

10 Health, Safety & Environment costs are approximately 6% of total Project Indirect Costs

11 Commissioning costs are approximately 6% of total Project Indirect Costs

DISTRIBUTION OF PROJECT INDIRET COSTS AMONG PROJECT COST OBJECTS

Project cost objects are project elements that include or are part of specific project work packages. Theyare frequently used for monitoring and controlling cost.

No Statement

1 Groundwork consumes approximately 7% of total Project Indirect Costs

2 Concrete Work consumes approximately 13% of total Project Indirect Costs

3 Brickwork & Block work consume approximately 13% of total Project Indirect Costs

4 Structural Metalwork consumes approximately 14% of total Project Indirect Costs

5 Carpentry & Joinery consume approximately 13% of total Project Indirect Costs

6 Finishing consume approximately 15% of total Project Indirect Costs

7 Mechanical & Electrical Services consume approximately 15% f total Project Indirect Costs

8 Building Systems consume approximately 13% of total Project Indirect Costs


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Q1. The current position of most respondents is:

1 General Manager2 Project Manager3 Quantity Surveyor4 Cost Engineer5 Other

Q2 Project indirect Costs (Overhead /Preliminaries/General Requirements) are the site-related

costs needed for successfully completing a contract that are not directly linked to any

specific project work package. Most surveyed companies estimate Project Indirect Costs at

present:

1 Through a detailed analysis of the projectQ3 An allocation basis is used in calculating an Indirect Costs allocation rate to distribute

Indirect Costs among Project items or cost objects. Project cost objects are units that

include or are part of specific project work packages. They are frequently used for

monitoring and controlling cost. The most common allocation basis used to distribute

Project Indirect Costs among project cost object in participating companies is:1 Volume of work2 Project duration3 Material, labor , and equipments cost

Q4 The approximate percentage Project Indirect Costs represent relative to total project cost in

Participating companies over the past five years is:1 11-15%

Q5 Project Indirect resources are used to facilitate the management and administration of a

project And are not linked to specific project work packages. The approximate percentage

each of the following Project Indirect resources represent compared to total Project

Indirect Costs in the participating companies taken over the past five years is:

Project Indirect Resource Percentage

Other

Project Staff-------------------- < 5 6-10 11-15 16-20 21-25 _____ NATemporary Construction----- < 5 6-10 11-15 16-20 21-25 _____ NATemporary Support SystemAnd Utilities-------------------- < 5 6-10 11-15 16-20 21-25 _____ NAProject Equipment/Tools----- < 5 6-10 11-15 16-20 21-25 _____ NA

Site office costs---------------- < 5 6-10 11-15 16-20 21-25 _____ NAFinancing and Contractual

Costs----------------------------- < 5 6-10 11-15 16-20 21-25 _____ NA

Staff Mobilization andSupport costs------------------- < 5 6-10 11-15 16-20 21-25 _____ NAMaterial Storage andHandling costs----------------- < 5 6-10 11-15 16-20 21-25 _____ NA

Health, Safety, andEnvironment Program costs-- < 5 6-10 11-15 16-20 21-25 _____ NA

For questions 6 through 14: Project support activities are tasks required for successfully

completing a project that are not linked to specific project work packages. The approximate


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percentage of the indicated Project Indirect resources cost spent in companies over the past five

years is:

Q6 Financing & Contractual costs (Payable interest, bonds, insurance, etc.)

Project support activity Percentage

Other1 Purchasing and Accounting- < 5 6-10 11-15 16-20 21-25 __60__ NA2 Material Storage and

Handling----------------------- < 5 6-10 11-15 16-20 21-25 _____ NA3 Health, Safety, and

Environment------------------ < 5 6-10 11-15 16-20 21-25 _____ NA

Q7 Staff Mobilization and Support costs

Project support activity PercentageOther

1 Staff Support (Travel,Housing, living) ------------- < 5 6-10 11-15 16-20 21-25 __100_ NA

Q8 Project Staff (Project/site management and administration staff)


1 Scheduling andCoordinating of work ------ < 5 6-10 11-15 16-20 21-25 _____ NA

2 Cost Management ----------- < 5 6-10 11-15 16-20 21-25 _____ NA3 Site Plant and Maintains---- < 5 6-10 11-15 16-20 21-25 _____ NA

4 Contactors SiteSupervision------------------- < 5 6-10 11-15 16-20 21-25 _____ NA

5 Shop Drawings--------------- < 5 6-10 11-15 16-20 21-25 _____ NA

6 Quality Assurance----------- < 5 6-10 11-15 16-20 21-25 _____ NA

7 Purchasing andAccounting-------------------- < 5 6-10 11-15 16-20 21-25 _____ NA

8 Material Storage andHandling----------------------- < 5 6-10 11-15 16-20 21-25 _____ NA

9 Health, Safety, andEnvironment------------------ < 5 6-10 11-15 16-20 21-25 _____ NA

10 Communication-------------- < 5 6-10 11-15 16-20 21-25 _____ NA

Q9 Material Storage and Handling costs


1 Material Storage and

Handling ---------------------- < 5 6-10 11-15 16-20 21-25 _77.5_ NA2 Quality Assurance----------- < 5 6-10 11-15 16-20 21-25 _____ NA

Q10 Health, Safety, and Environment Program costs


1 Health, Safety, andEnvironment ------------------ < 5 6-10 11-15 16-20 21-25 __100_ NA


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Q11 Temporary Support Systems and Utilities


1 Site plant andMaintenance ------------------ < 5 6-10 11-15 16-20 21-25 _____ NA

2 Material Storage and

Handling------------------------ < 5 6-10 11-15 16-20 21-25 _____ NA3 Staff Support (Travel,

Housing, living) --------------- < 5 6-10 11-15 16-20 21-25 _____ NA4 Health, Safety, and

Environment------------------- < 5 6-10 11-15 16-20 21-25 _____ NA

Q12 Project Equipment/Tools


1 Site plant and

Maintenance ------------------ < 5 6-10 11-15 16-20 21-25 _____ NA2 Quality Assurance------------ < 5 6-10 11-15 16-20 21-25 _____ NA

3 Material Storage andHandling------------------------ < 5 6-10 11-15 16-20 21-25 _____ NA

4 Health, Safety, and

Environment------------------- < 5 6-10 11-15 16-20 21-25 _____ NA5 Commissioning---------------- < 5 6-10 11-15 16-20 21-25 _____ NA

Q13 Site Office costs


1 Scheduling andCoordination of Work-------- < 5 6-10 11-15 16-20 21-25 _____ NA

2 Cost Management-------------- < 5 6-10 11-15 16-20 21-25 _____ NA

3 Shop Drawings ----------------- < 5 6-10 11-15 16-20 21-25 _____ NA4 Quality Assurance------------- < 5 6-10 11-15 16-20 21-25 _____ NA5 Purchasing and

Accounting--------------------- < 5 6-10 11-15 16-20 21-25 _____ NA

Q14 Temporary Construction (Temporary roads, scaffolding, etc.)


1 Scheduling and

Coordination of Work-------- < 5 6-10 11-15 16-20 21-25 _____ NA

Documents

Distribution of Project Indirect Costs Among Project Indirect Resources