Posting operational work (resource costs/price calculation) – part 6

Using NAV4Construction, we can use specific resource cost or price models. When we post resources, we have next quantity fields:

  • Quantity – total time of resource engagement
  • Waiting time – time when resources do not make usage, because poor site organization
  • Extremely Stagnation Time – time when resources do not make usage, because force majeure
  • Effective Time – calculative field = Quantity – (Waiting time + Extremely Stagnation Time)

In NAV4Construction, we use Cost field for actual resource cost and Price form internal resource cost (transfer price for internal needs). Cost and Price are not calculate in the same way. Definition of them are placed on:

  • Quantity:
    • Cost – ‘Direct Unit Cost’ on Resource Card
    • Price – ‘Unit Price’ on Resource Card
  • Waiting time:
    • Cost – same as Quantity Cost
    • Price – ‘Standby Unit Price’ on Resource Card (using of this price depends of setup)
  • Extremely Stagnation Time:
    • Cost – no
    • Price – no

Cost Calculation

Cost Calculation is always the same. This calculation is based on resource usage and we calculate it by next pattern: Direct Unit Cost X ( Quantity – Extremely Stagnation Time )

If we want to use total quantity in calculation, we need to put ‘Extremely Stagnation Time’ blank.

Price Calculation

Price Calculation is more complex and depends of setup in ‘Res. Utilization Margin %’ field at Construction Setup. In this field we need to configure what is ‘acceptably utilization’ for us. In our example I will define that it is 70%. That means that if (Quantity-Waiting Time) is 70% or more in regard to total Quantity, this is good usage. Based on this, we have two different models of price calculation (we will use factor 0,7 instead of 70%):

Model 1: ( Quantity – Waiting Time ) >= 0,7 X Quantity

( Quantity – ( Waiting time + Extremely Stagnation Time ) ) X Unit Price

Model 1: ( Quantity – Waiting Time ) < 0,7 X Quantity

( ( Quantity – ( Waiting time + Extremely Stagnation Time ) ) X Unit Price ) + ( Waiting time X Standby Unit Price )

These Costs and Prices are the base of Construction Position cost and price calculation, based of their actual consumption.

Bill of Quantities – (Fixed Cost) part 5

When we start with calculation for project, for each Bill of Quantities, we could have specific fix costs. I described full calculation process for each Construction Position, but all of them where variable costs. That means, when we have to complete some position work, we need to consume some items (goods or materials) or some labor (mechanization, vehicle or person). As we have more Construction Positions work, we would have more item and resource consumptions (or subcontract work, as well). All of them are variable costs.

On the other hand, we could have some specific costs who are not linked to Construction Position execution, bit there are linked to complete project. These are e.g.: some project taxes, project preparation, project insurance, staff accommodation… All of them are fixed costs and we cannot link them to one of the positions.

For each BoQ, we can add them to project by insert in linked table ‘Fixed Project Costs’ and fill their cost. When we fill of them, on BoQ Header, we can see Total BoQ Fixed Cost.

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We can insert fixed costs by starting command (three points) near field and after that we need to insert cost values by specification. When we finish cost inserting, we need to assign this cost to positions. We can assign total fixed cost to all positions or only for selected. If we want assign cost only for selected, we need to mark/unmark fields ‘Cost Using’ for each line. After that, we need to start command ‘Apply Fixed Cost’ and NAV will place parts of fixed cost to each selected position. System use proportional method of placing costs. When this is finished, field ‘Assigned Fixed Cost’ on header will be marked as sign that fixed cost is placed to lines.