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Managing Indirect Construction Costs

Event Date
Oct 01, 2013
Type
Workshop Presentation
Research Team
RT-282
Slides
37
Topic
Managing Indirect Costs
DOCUMENT DETAILS
Abstract
Filters & Tags
Abstract
Indirect Construction Costs (IDCC) are project expenses incurred by the primary construction company for supportive functions and shared general resources that are typical for proper execution of field construction operations and are not accurately or feasibly identifiable with a single direct cost object and they do not become incorporated into a component of the final physical improvements delivered as the end product of a project. IDCC may represent 10-40% of total project costs.  Current market conditions, such as intense global competition, low barriers of entry, and low-cost global exchange of digital information, have required an optimization of indirect costs as a strategic focus for process improvement. RT-282 addressed the topic of industry best practices for estimating, controlling, and managing IDCC. The team conducted a rigorous investigation and found that owners and contractors agree on the most important four primary categories for IDCC:      Construction Equipment     Project Supervision     Temporary Construction     Temporary Facilities  This research effort presents leading industry practices for optimizing these IDCC, including estimating, controlling, and managing checklists, flowcharts, and tools for each of these four major IDCC areas.
Filters & Tags
Knowledge Area
Construction Execution, Project & Program Management, Project Controls
Project Phase
Construction
Project Function
Project Business Sponsor, Project Management, Architects & Engineering, Project Controls, Procurement & Contracts, Construction, Quality Management, Business Development & Proposals, External Stakeholders
Industry Group
Light Industrial, Heavy Industrial, Buildings, Infrastructure
Research Topic
Managing Indirect Costs
Keywords
Indirect Cost, Indirect Construction Cost, Major Construction Equipment, Construction Management, Scaffolding, Temporary Provisions, Indirect, Estimating Indirect Cost, Controlling Indirect Cost, Managing Indirect Cost, Construction Cost, Leading Industry Practices, rt282

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