Compressed/accelerated schedule

[Alwayslearningelec]

How do you calculated added $$/hours for a shorter schedule after you have calculated your labor hours for the original schedule. Figure adding more men if the job can handle it, or OT?

 

[cdslotz]

Say you have estimated 3000 man/hrs and the schedule is for 6 months.

6 months x 4.3 (wks per month) = 25.8 man/weeks

3000 hrs / 25.8 = 116.27 hrs per week

116.27 / 40 hrs (1 persons week) = 2.9 or 3 men average (should peak at 6 men)

This would be a normal 40 hr work week.

So OT (say 8 hrs a week) would be 3 men x 8 = 24 hrs at 1.5 (time and a half)

x 25.8 weeks = 619.2 hrs. Which means 619.2 hrs OF THE 3000 would be at OT.

 

[cdslotz]

This assumes the compressed schedule is still run efficiently or even doable. The more compressed, the less efficient all trades are, so more hours may need to be added, because more men might be needed to make that up.

 

[petersonra]

Ask the saleman - he will explain it this way. A compressed schedule takes less time so it costs less.

 

[kwired]

One of your biggest problems is knowing what effects you will encounter from other trades. You can have needed man power but if you are always waiting for other trades before you can start something, extra man power may not matter.

 

[Strathead]

How do you calculated added $$/hours for a shorter schedule after you have calculated your labor hours for the original schedule. Figure adding more men if the job can handle it, or OT?

CD gets to the starting point, kwired makes a point that must be considered, now comes the other part of it. You can't actually determine kwire's concern so this becomes a WAG (wild ass guess) on your part, or a SWAG (scientific) if I do it, or your senior estimator does it. Another major consideration is whether they asked for the accelerated schedule before awarding the contract or after awarding the contract. If it is before, then all of your normal bid considerations need to be weighed in. What it really costs, what the competition might do? How does the work and the men required fit in to your known work schedule? If it is after the contract, then the considerations are more, how much can I charge, what is the penalty if I don't perform, is the accelerated schedule going to be blamed on us or one of our fellow subcontractors?

From there, charging part of the work at 1 1/2 times the labor and burden is a simple means, but if you are trying to minimize the impact, overtime does not cost a full 1 1/2 times the base rate. It is actually a bit less. Depending on the State, your employee may not work a full week so you may not need to pay him OT. Adding men during regular work hours costs more supervision, but not nearly as much as working overtime (if the men are readily available)

From a bid perspective, if it is less than 8 men at peak, and no overtime is required, I don't even consider adding time or money. If it is after contract, you should maximize the cost. For those who aren't on the money side of Contracting, I say, don't judge. The perception that we make a killing on change orders is just plain false. They cost us money too. If it wasn't for changes in schedules and scope of work, I could spend my whole month bidding new work and a day or two doing billing. Changes cost a lot of money and brain power. The typical contract today that limits you to 10% or 15% total mark up is just plain garbage. When they do that, I generally charge for Estimator time and material handler time and it ends up costing them more than if they had not limited me. Yet we still never seem to come out on the positive end of changes.

 

[Alwayslearningelec]

CD gets to the starting point, kwired makes a point that must be considered, now comes the other part of it. You can't actually determine kwire's concern so this becomes a WAG (wild ass guess) on your part, or a SWAG (scientific) if I do it, or your senior estimator does it. Another major consideration is whether they asked for the accelerated schedule before awarding the contract or after awarding the contract. If it is before, then all of your normal bid considerations need to be weighed in. What it really costs, what the competition might do? How does the work and the men required fit in to your known work schedule? If it is after the contract, then the considerations are more, how much can I charge, what is the penalty if I don't perform, is the accelerated schedule going to be blamed on us or one of our fellow subcontractors?

From there, charging part of the work at 1 1/2 times the labor and burden is a simple means, but if you are trying to minimize the impact, overtime does not cost a full 1 1/2 times the base rate. It is actually a bit less. Depending on the State, your employee may not work a full week so you may not need to pay him OT. Adding men during regular work hours costs more supervision, but not nearly as much as working overtime (if the men are readily available)

From a bid perspective, if it is less than 8 men at peak, and no overtime is required, I don't even consider adding time or money. If it is after contract, you should maximize the cost. For those who aren't on the money side of Contracting, I say, don't judge. The perception that we make a killing on change orders is just plain false. They cost us money too. If it wasn't for changes in schedules and scope of work, I could spend my whole month bidding new work and a day or two doing billing. Changes cost a lot of money and brain power. The typical contract today that limits you to 10% or 15% total mark up is just plain garbage. When they do that, I generally charge for Estimator time and material handler time and it ends up costing them more than if they had not limited me. Yet we still never seem to come out on the positive end of changes.

Really really good info STRAT..thanks.