Explains how to create cost estimates for other direct costs
Other Direct Costs
Other direct costs are literally any costs which are not labor, material or travel, for example insurances, or major subcontractors providing services. It is very easy to add these costs to your proposal, you list them on the "OTHER" tab of your estimate (based on the estimating methodologies assigned to your BOE-WBS).
- The proposal, BOE-WBS, design to cost target and total estimated cost across all tabs for this estimate is displayed at the top in common with all the estimating tabs. Click "Hide Summary View" to hide this information and create more space for the table or list of other direct costs
- Click the + to add a new direct cost or the - to delete a direct cost you no longer need
- Enter the description (this is mandatory) and optionally select a product or service which closely represents this other cost. If you select a product or service the description, unit of measure, cost element and even unit cost will default from the item master if set up
- Enter the quantity of this other cost item. If you don't know enter 1 (zero quantity results in zero cost). The unit comes either from the product or service or click on the unit of measure text to change it manually e.g. "each"
- Enter or edit the unit cost. The total cost is simply calculated as the quantity x unit cost. Optionally select a formula (for parametric estimating) or a supplier (for subcontract work for example)
- You can optionally compute the total cost using a formula
- Select or enter the distribution curve, estimating methodology and cost element
- Select a "LINEAR" distribution curve if you are not sure how the other costs should be distributed between the start and end dates. These dates are currently hidden columns in the view above, but also recommended to enter
- The cost element is recommended to appropriately burden your other direct costs, i.e. to calculate indirect costs. Select the cost element from the list or enter part of the account text to search for a cost element to assign
- Although not shown you can select an escalation factor for your cost
- The total sum of all direct costs is displayed above the table.
There is a "subcontract" column you can check to enter major sub-contractor costs in this page.