Both distribution shapes may be modeled in Primavera P6. Project management costs are usually uniform throughout the project, whereas, administrative costs may follow a bell shaped curve. Primavera P6 also allows you to distribute these costs either evenly among the project tasks or in some kind of defined curve. Primavera P6 allows you to make a line item for both the administrative and project management costs of the project using LOE activities. Cost estimating guides, such as RS Means, place overhead and profit costs directly into the standard pay rate for each of the resources. Cost AccountingĬompanies have different ways of accounting for administrative costs. This article describes how to model administrative overhead and project management costs that are associated with the project, and that can span part or all of the duration of the project. So how does one easily define the effort of these tasks throughout the life-cycle of the project? Well, Primavera P6 has a Level of Effort activity type to help you model this type of work in a low-maintenance way, and one that does not interfere with the critical path. Modeling these efforts and cost individually by assigning resources to every activity is prohibitive. They are also associated with other activities in the project. Overhead efforts can span part of the project, or the entire life-cycle. These overhead costs are usually not immaterial. Items such as management, security or safety are ongoing and require resources but are not on the critical path. Level of Effort (LOE) activities in Primavera P6 are typically used to define effort that in and of itself doesn’t generate a deliverable, but does incur labor/costs to the project.
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