Project Controls Institute: Cost control techniques on direct hire projects

Topic: Cost control techniques on direct hire projects

Cost control techniques on direct hire projects #57

Abdul offline New Member Joined On: 22-06-2017 Posts: 2	Hi Is any body experienced with cost control a construction project under Direct Hire basis? Do you do it by foreman crew or by superintendent level to calculate the performance and man-hours spent vs the actual production rate? Thanks Abdul
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Cost control techniques on direct hire projects #61

James T
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Joined On: 09-06-2017
Posts: 9

Hi Abdul There are two types of direct hire work. Fixed price and cost reimbursable. In the fixed price direct hire jobs I've been involved in, productivity analysis is at the upmost sensitive level and made public to only those who need to know. Names of foremen and superintendents are never used and reporting is at the activity code level only. In any case, I would discourage publishing anything below this level. I use man-hours or $/quantity to evaluate performance. This can be applied to both budget, actual and forecast information. For example, 100 Mhs/300 Units = .333Mhs per Unit. This makes forecasting much easier when you go to estimated remaining or additional quantities. For example, I add 150 Units = .333 X 150 = 50 Mhs. Hope this helps. James

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The following user(s) said Thank You: Abdullah Algobesy