Transcript Objectives Projects' Cost Control System - An

Work Breakdown
Structure WBS
DR. Nabil Dmaidi
Work Breakdown Structure (WBS)

A hierarchical system which sub-divides
larger elements of the project into smaller
elements.

The smallest unit of the WBS is the work
package.
DR. Nabil Dmaidi
Work Breakdown Structure Example
Level
Work Breakdown Structure
Level
Description
1
Warehouse
Total Project
2
Administration
Subproject
Mobilization/
Demobilization
Masonry
Wall
Steel
Columns
& Joints
Roof
System
Masonry
Wall
Steel
Columns
& Joints
Roof
System
3
Category of
Work
Sitework
Footing
Floor
Slab
Excavate
Footings
Form &
Reinforce
Footings
Place
Footings
Labor
Material
4
Work
Package
5
Resources
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Equipment
Interior
Finishes
WORK BREAKDOWN STRUCTURE (cont.)

The scope of work in each work package should be
defined to avoid overlaps and omissions between work
packages.

Work packages should be defined in terms of design,
construction methods, and completion requirements, with
associated performance dates
DR. Nabil Dmaidi
Scope of Work Packages
Each work packages should be:
1. Manageable
–
Specific authority and responsibility can be assigned.
2. Independent
–
With minimum interfacing or dependence on other
elements.
3. Measurable
–
In terms of progress.
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The Project Cost System
Objectives of Establishing Project Cost System.
1. Keep the construction costs of the project within
the established budget
2. Develop labor and equipment productivity
information for estimating the cost of future
work.
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Cost Code
Project
Number
Area
Code
Work Type
Code
Distribution
Code
9708B 05 03157.20 3

Cost Code for stripping concrete
formwork for bridge deck (Labor).
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Project Number
9708B 05 03157.20 3

Eighth project in 1997 (Bridge)
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Area Code
9708B 05 03157.20 3

Geographic location
OR

Associate Field Cost to Specific
Supervisor or Management
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Work Type Code
9708B 05 03157.20 3
03
Concrete
0315
Concrete Formwork
03157
Wood Concrete Formwork
03157.20
Wood Concrete Formwork for Deck
03157.30
Wood Concrete Formwork for
Abutment
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Distribution Code
9708B 05 03157.20 3
1. Total
2. Material
3. Labor
4. Equipment
5. Sub-Contract
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Cost Code and Cost Control

All items of expense are charged to the project
where they are incurred.

"General" or "miscellaneous" cost accounts
should not be used, are poor practice, and should
be avoided.

The cost code is to serve its basic purpose, it must
be understood and used consistently by all
company personnel.
DR. Nabil Dmaidi
COST ACCOUNTING REPORTS

Cost report intervals are a function of the project
size, nature of the work, and type of contract
involved.

There must be a balance between the cost of
generating the reports and the value of the
management information received
DR. Nabil Dmaidi
COST CODES


The most widely used cost codes are
–
Masterformat, CSI (Construction Specifications Institute)
–
Uniformat, UCI (Uniform Construction Index).
Masterformat is widely used software companies and
government agencies.
DR. Nabil Dmaidi

Most contractors match their cost control
system to their payroll periods and to their
time-monitoring system.
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COST CODES (cont.)

Masterformat
–
–

Has 16 divisions
Divisions were developed according to trades
Uniformat
–
–
Has 12 divisions
Tends to follow the progress of construction
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01General Requirment s
02 Sit e work
03 Concret e
04 Masonry
05 Met als
06 Wood & Plast ic
07 Therm. & Moist ure Prot ect .
08 Doors & Windows
09 Finishes
10 Specialit ies
11Equipment
12 Furnishings
13 Special Const ruct ion
14 Conveying Syst ems
15 Mechanical
16 Elect rical
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124 Off-Sit e Work
123 Sit e Ut ilit ies
122 Sit e Improvement s
121Sit e Preparat ion
113 Special const ruct ion
112 Furnishings
111fixed & Movable Equip.
093 Spec. Elect rical Syst .
092 Light ing & Power
091Services & Dist ribut ion
084 Spec. Mechanical Syst .
083 Fire Prot ect ion
082 H.V.A.C.
081Plumbing
063 Specialt ies
062 Int erior Finishes
061Part it ions
042 Ext . Doors & Windows
041Ext erior Walls
033 St air Const ruct ion
032 Roof Const ruct ion
031Floor Const ruct ion
023 Basement Wall
022 Basement Excavat ion
021Slab on Grade
12 Sit e Work
11Equipment
10 Gen. Cond. OH & P
09 Elect rical
08 Mechanical
07 Conveying Sys.
06 Int . Closure
05 Roofing
04 Ext . Closure
03 Superst ruct ure
02 Subst ruct ure
01General Requirement s
011St andard Foundat ions
012 Spec. Foundat ion Cond.
Level 2
Level 3
Design Uniformat
Relationship Between UNIFORMAT & MASTEFORMAT
UNIFORMAT Level A and B
Tot al Building Cost s
0100 Foundat ion (level A)
0110 St andard (level B)
0120 Special (level B)
0200 Subst ruct ure
0210 Slab on Grade
0230 Basement Walls
0300 Superst ruct ure
0310 Floor Const ruct ion
0320 Roof Const ruct ion
0330 St air Const ruct ion
0400 Ext erior Closure
0410 Ext erior Walls
0420 Ext erior Doors and Windows
0500 Roofing
0600 Int erior Const ruct ion
0610 Part it ions
0620 Int erior Finishes
0630 Specilt ies
0700 Conveying Syst ems
0710 Elevat ors
0720 Moving St airs/Walks
0730 Dumwait ers
0740 Pneumat ic Yubes
0750 Ot her Conveying Syst ems
0800 Mechanical
0810 Plumbing
0820 HVAC
0830 Fire Prot ect ion
0840 Medical Gases
0850 Sewage Treat ment
0900 Elect rical Syst ems
0910 Basic Mat erials
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0920 Light ing-Power
0930 Special Elect rical Syst ems
0940 Communicat ions Syst ems
0950 Elect rical Heat ing Syst em
1000 General Condit ions
1100 Equipment
1110 Special Equipment
1120 Furnishings
1130 Special Const ruct ion
Tot al Base Const ruct ion Cost
1200 Sit e Work
1210 Sit e Preparat ion
1220 Sit e Improvement
1230 Sit e Ut ilit ies