Our budgeting process begins by establishing a project scope coding system based on WBS and COA, defined in coordination with the client’s engineering and management teams. The key elements of the budgeting process include the following:
Work Breakdown Structure
- Organization by physical location, work area, contract, discipline, and/or other logical systems.
- Defines up to 6 levels for complex projects, based on generic templates specific to the project type.
Chart of Accounts
- Corporate or accounting structures indicating associated commodities or disciplines.
- Defines up to 6 levels. Can be based on generic templates if necessary. Aligned with the Master Format standard.
Quantity Take-offs by WBS / COA
- Review of engineering drawings and documents, calculation of quantities for equipment, materials, and structures to be installed or modified.
- Engineering analysis is performed when necessary to confirm design criteria, such as sizing of secondary and auxiliary equipment.
- Appropriate quantities are defined as percentages or factor-based for partially defined engineering and components.
- PCU system templates are available for various disciplines and industries, ensuring data capture.
Labor Rates, Construction Equipment Rates, and Material Prices
- Comprehensive labor rates are calculated for each location, including a full analysis of taxes and charges based on union agreements, local contractor rates, regulatory requirements, and any allowances, accounting for wage adjustments due to work schedules.
- Construction equipment rates are defined based on rental or ownership models, incorporating fuel consumption based on workload, consumables, maintenance, insurance, overhaul, and other costs.
- PCU has a database of material and equipment prices from suppliers, contractors, and manufacturer catalog lists.
Productivity Analysis of Labor Crews Based on Construction Methods
- Defines the amount of labor required for a specific labor crew, equipment, and material resources.
- Uses as many levels of sub-activities as necessary.
- Assigns productivity to each crew for each task or employs standard productivities from the PCU system adjusted for project conditions.
- Calculates unit costs and sub-costs.
Indirect Cost Analysis
- PCU provides an exhaustive list of potential contractor indirect costs, owner costs, allowances, and contingencies, ensuring every possible indirect cost in a project is estimated.
Cost Tables Generated at Each WBS & COA Level
- PCU has a specific reporting module.
- The project execution schedule is performed at each WBS & COA level.
- Any schedule created in MS Project or other scheduling software is imported into the PCU system and automatically aligned by WBS & COA.
Cash Flow Forecasts and Resource Utilization
- Tailored to management needs using the PCU reporting module.
Estimation Document Basis
- Details all assumptions and exclusions.
- Produced using a standard or customized template based on data in the PCU system.
- Standalone document or section ready to be copied into other reports.
Trial Demo