COST TIME BALANCING and Procurement of labour, material and equipment

 

COST TIME BALANCING: Aim of cost time balancing is to complete the project work in scheduled time. Time is also the important factor which also effects the quality and profit of the project. With the delay in work the cost of the project increases. Cost may be of two types

1.      Direct Cost: It is the cost which is utilized for construction work .i.e. labour, material etc..

2.      Indirect Cost: Indirect costs are costs that are, but not necessarily, not directly accountable to a cost object (such as a particular project, facility, function or product). It should be financially infeasible to do so for a cost to be labeled indirect. Indirect costs may be either fixed or variable. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production.

Procurement of labour, material and equipment

In any construction project, it is necessary to estimate the required labour, material and equipment required for completion of the project. This can be done with the help of construction schedules. Separate schedules are prepared for labour, material and equipment. These schedules help in procurement of labour, material and equipment at proper time and their efficient usage and storage.

1.      Labour: Labour schedule, helps in providing future labour requirements and efficient and optimum deployment of labour force where ever necessary.

2.      Material: Material schedules helps in providing types of material required along with their quantities and the actual time by which the materials are kept ready so as to avoid any delays in completing a construction project.

3.      Equipment: Equipment schedules are prepared to find the type of equipment required, time and period for which particular equipment is needed. It helps in avoiding the equipment keeping it idle.

 

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