PcM Flashcards
Common compensation options for fee calculation
Lump sum fixed fees Hourly w/ no upset Hourly-not-to-exceed Cost Plus fixed fees Unit Cost % of actual construction cost Reimbursable & Non-reimbursable direct costs
“cash method” accounting
recognizes revenue when cash is collected and expenses are paid
“accrual-based” accounting
revenue is recognized when earned and expenses are incurred
Two types of project budgeting planning
Top-Down & Bottom-Up
Top-Down project budget characteristics
- based on historical project data and similar project scopes
- formula driven
- typically based on % of construction cost
Bottom-Up project budget characteristics
-based on the project work plan (task-level resource planning)
Elements of project budget
gross fee consultant fee net service revenue project contingency non-reimbursable direct expense budget project labor budget current % complete by phase of service budgeted resource forecast by phase of service
4 types of schedules
Critical path method schedule (CPM)
Milestone charts
Bar charts (Gantt chart)
wall schedule
When to use milestone schedule
short duration projects with few tasks, under $35,000
When to use bar chart schedule (gannt schedule)
most common in A&E professions
visualize overlapping tasks on a timeline to break down phases to tasks
When to use wall schedule
great tool for medium to large-scale design projects - best means to produce project work plan to integrate tasks for architects, consultants, clients, & contractors involved
NSR
net-service revenue:
Net fee determined by subtracting consultant fees from the gross fee for a project
planned cost definition
labor hours and dollar amounts that are planned at project initiation
JTD
Job-to-date
labor hours and dollar amounts spent as of current date
ETC
Estimate-to-complete
Labor hours and dollar amounts estimated from current date to project completion
EAC
Estimate-at-completion
JTD + ETC labor hours and dollar amounts estimated at project completion
Planned estimate at completion definition
over/under calculation indicating labor hours and dollar amounts at project completion relative to planned estimates
percent complete definition
current work in plan for the project, phase, or task, expressed as a subjective percent complete and not based on the percentage of labor hours or dollar amounts spent
Types of multipliers
Break-even Overhead Effective multiplier Target Planned multiplier EAC multiplier
Break-even multiplier
(direct labor+overhead) / direct labor
Overhead multiplier
overhead/direct labor
Effective multiplier
current, subjective percent complete/direct labor
Target multiplier
firm-wide standard target multiplier, incl. profit target
Planned multiplier
Net-service revenue/planned cost