Managing Indirect Costs

The most important item within this area is major construction equipment that incur significant construction costs and are typically either not readily available or require time for planning or sourcing. Of note is that major construction equipment is a direct construction cost when it can be identified with a particular construction operation. Projects should develop a checklist for major construction equipment. The 3 main sub-groups include: (IR282-2, p. 9)

• Road & site vehicles
• Small tools and consumables
• Major construction equipment/material handling

For example, here is the estimating flowchart for major equipment. Other tools include a major equipment checklist, controlling process flowchart, and a managing process flowchart. 

This category includes project management, field supervision, project administration and construction/field services. Construction Management and Supervisory Personnel were identified as the most important. Projects should develop a position matrix and a checklist for Construction Management and Supervisory Personnel to indicate. (IR282-2, p. 31)

Practices tools include: Position Matrix, Checklist, and estimating, controlling, and managing Indirect Construction Costs.

Scaffolding indirect construction cost includes the cost of traditional pipe and board scaffolding systems and mobile staging equipment that are shared across multiple trade areas. Scaffolding was identified as the most challenging and the most wasteful of the indirect construction cost. Emphasis is placed on the process of estimating, controlling and managing scaffolding costs. (IR2282-2, p. 47)

This area includes subcategories such as field facilities, temporary roads and parking, temporary office and services, and temporary enclosures. All of these share the same practices for estimating, controlling, and managing.

(IR282-2, p. 63)

Below is a listing of common temporary provisions. 

 

IR282-2, Playbook of Leading Industry Practices for Estimating, Controlling and Managing Indirect Construction Costs

The leading industry practices for optimizing these IDCC are presented in a consistent format of consideration checklists, detailed process flowcharts, and representative practical tools. Each chapter is organized into sections covering practices for estimating, controlling, and managing the costs in each category.

In addition the playbook dedicates a chapter to four innovative advance practices:

• Real-time, online equipment management systems
• Advance small tools inventory systems
• Work-location delivered trade worker amenity services
• Advanced laydown yard management system