Project Management

Please login or join to subscribe to this thread

What is hard-cost ? What is PM hourly basis ?

linkedin twitter facebook   Construction  
avatar
JAVIER SALAZAR LANDSCAPE SL Cabrera, 14, Dominican Republic
Is there exist a rate schedule for the hourly basis of PM?
Sort By:
avatar
Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Javier -

Assuming you are referring to how the costs for project management are determined and allocated to a project, this really depends on the companies involved. I've worked in contexts where PM time was budgeted as a percentage over the duration of the project and multiplied by an hourly rate as well as in situations where the PM effort was a flat percentage of the overall estimated cost of the project so it really depends.

Kiron
avatar
Abolfazl Yousefi Darestani Manager, Quality and Continuous Improvement| Hörmann-TNR Industrial Doors Newmarket, Ontario, Canada
It depends! There is not a standard rate as far as I know.
avatar
Keith Novak Tukwila, Wa, United States
In addition to how the costs are allocated overall such as % of the total project costs or labor hours, there are also differences in the actual cost incurred by the PM.

One factor is the burdened labor rate or “wrap rate”. The cost of the PM is not just their own salary, but also the management time to support the PM with performance evaluations, training, computing, paying the electrical bill, etc. That will depend greatly on the size of the business and physical location among other things.

Specific projects may also involve higher cost factors such as a project that requires a lot of travel and drives additional costs to transport, feed, and house the PM. Based on accounting rules, that may be a general fund for all travel or charged against the PM budget directly.
avatar
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates New Westminster, British Columbia, Canada
Javier

In construction for example, here is how we differentiate between both:

- Soft Cost: The cost incurred to the project from indirect activities like Work Permits, Engineering and Design, Financing and so on.

- Hard Cost: The cost incurred to the project from activities directly related to actual construction on site like concrete, labor, rebar, and so on.

Hope this helps shed a light.

RK
avatar
Latha Thamma reddi Sr Product and Portfolio Management (Automation Innovation)| DXC Technology Mckinney, Tx, United States
Thanks for sharing.
avatar
sebastian klaerich Constructions Director| Spósito y Asociados Caba, B, Argentina
Thanks for sharing

Please login or join to reply

Content ID:
ADVERTISEMENTS

"Ninety percent of the politicians give the other ten percent a bad reputation."

- Henry Kissinger

ADVERTISEMENT

Sponsors