I'm in the process of trying to consolidate what costs projects typically capture within our organization, and thought I would ask the community at large what costs they gather and report on. For example, since our projects are responsible for the entire costs of running a PM office/ team, things like salaries, training, accommodation, employee benefits, etc. are paid for by the project aside from the actual acquisition costs of what it is they are procuring. Saving Changes...
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Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
We make sure that all costs are properly allocated to the project. To do so, we engage our Finance team to ensure that expenses are reported properly by various units. Some of the expenses are paid much later, often after the project closes. Don't forget those. Saving Changes...
Our project costs fall into labor and non-labor. For labor we use a burdened labor rate that covers things like salary, benefits, management structure, and various other things required to run the business. That avoids having to budget based on actual salaries at different pay grades.
Non labor includes things like purchased hardware and materials, unique tools, travel and accommodations specifically for a project, food and drinks during long meetings when provided, unique costs such as if special security accommodations are required, celebrations and souvenirs, and various types of supplier costs.
Training, administrative team meetings, general housekeeping, and a variety of other items are charged separately as overhead. Saving Changes...
Fixed, variable & overhead would be the normal categories which are part of the budget for many of the clients I've supported. For others it is just directly attributable ones (i.e. Fixed & Variable) and overhead costs are addressed through operational budgets.
I tend to find the former is common in strong matrix or project-oriented structures whereas the latter is more common in functional, weak or balanced matrix contexts.
Kiron Saving Changes...
Deepesh RammoorthyICT Project Manager ( PMP®AgilePM®Certified ScrumMaster® (CSM®))| Australian Red Cross Blood ServiceTarneit, Vic, Australia
1) Costs relating to software licenses
2) Cost relating to purchase of hardware
3) Statement of Works costs with vendor - note this may include the hardware costs and license costs occasionally
4) Employee Wages - especially if they are external agency staff
5) Internal charge-back - if Project charges for the use of internal resources like PM, BA, Architect
6) Training expenses incurred due to the project
7) Travel expenses incurred due to the project
8) External consultancy not covered in any categories above incurred due to project.
Some employees may be allocated to the project and may be full time staff who wouldn't be charged to the projects as per company org structure or existing policies Saving Changes...
The project should support all cost required to make the project. So it will include labour and material for fixe, variable and overhead. The operation cost of the PMO or any other corporate systems use by the project should be accounted for by the projects.
The only problem you don't control the corporate cost that your project needs to support cost. Saving Changes...
Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
I am not very pleased when they overburden my projects with administrative costs, variable costs and depreciation. Saving Changes...
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