Assigning fixed cost for a contractor?

[Pat]

Looking for some advice.

An employee and contractor will be working together on the same task. The
employee's cost will be based on hours while the contractor's cost is fixed.
I have several tasks like this, and am trying to sort out the best way to
represent this in the project plan (MS Project of course). The options, as
I see it, are:

1. Enter the employees expected hours for the task (and list them as a
resource) and account for the contractors cost as a Fixed Cost. The problem
with this is that there is no connection between the Fixed Cost and the
contractor, so if I want to, say, see a summary of the contractors tasks and
cost I can't do it.

2. List the contractor as a "material" resource and assign to the task.
Although this will connect the cost to the contractor, I would then need to
define a "per unit" cost for the contractor, which seems a little awkward
since the contractors cost will vary between the different tasks they'll be
used on.

3. Split the task into two, one for employee and the other for the
contractor. This also seems awkward.

Any suggestions? Thanks, -Pat

 

[Pat]

Looking for some advice.

An employee and contractor will be working together on the same task. The
employee's cost will be based on hours while the contractor's cost is
fixed. I have several tasks like this, and am trying to sort out the best
way to represent this in the project plan (MS Project of course). The
options, as I see it, are:

1. Enter the employees expected hours for the task (and list them as a
resource) and account for the contractors cost as a Fixed Cost. The
problem with this is that there is no connection between the Fixed Cost
and the contractor, so if I want to, say, see a summary of the contractors
tasks and cost I can't do it.

2. List the contractor as a "material" resource and assign to the task.
Although this will connect the cost to the contractor, I would then need
to define a "per unit" cost for the contractor, which seems a little
awkward since the contractors cost will vary between the different tasks
they'll be used on.

3. Split the task into two, one for employee and the other for the
contractor. This also seems awkward.

Any suggestions? Thanks, -Pat

I think I figured this out. After reading a little more carefully my one of
my MS Project books (i.e. Using MS Project 2002, p. 407) I saw that you can
assign a resource with a fixed cost (e.g. a contractor) by simply setting
the resources units to 0% and entering the cost directly in the Cost field
in the Task Form. This can be done in conjunction to having other resources
assigned that have their costs computed in the normal way. So I think that
solves my issue.

Pat

 

[John]

Looking for some advice.

An employee and contractor will be working together on the same task. The
employee's cost will be based on hours while the contractor's cost is fixed.
I have several tasks like this, and am trying to sort out the best way to
represent this in the project plan (MS Project of course). The options, as
I see it, are:

1. Enter the employees expected hours for the task (and list them as a
resource) and account for the contractors cost as a Fixed Cost. The problem
with this is that there is no connection between the Fixed Cost and the
contractor, so if I want to, say, see a summary of the contractors tasks and
cost I can't do it.

2. List the contractor as a "material" resource and assign to the task.
Although this will connect the cost to the contractor, I would then need to
define a "per unit" cost for the contractor, which seems a little awkward
since the contractors cost will vary between the different tasks they'll be
used on.

3. Split the task into two, one for employee and the other for the
contractor. This also seems awkward.

Any suggestions? Thanks, -Pat

Pat,
Personally I would opt for your third approach. It may seem awkward but
it might also offer the most flexibility when you want to segregate out
the costs.

My next choice is approach number 1. Be aware that you CAN see a summary
of the contractor's tasks with this approach. Apply a filter for values
greater than "0" in the Fixed Cost field and/or use the Grouping feature
to sum up the fixed cost values.

John
Project MVP

 

[Steve House [Project MVP]]

Here's another option if the task equates to the job. The contractor is
paid for the job. In the rates of the resource sheet enter zero for the
contractor's standard and OT rates and his cost for the job in the "cost per
use" field. This a a good way to handle piece-work since the cost-per-use
is charged to the budget once ach task the resource is assigned to.