011614 Scaffolding, what is it? Direct or Indirect?

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To answer the contentious question-"In a construction project, how are Scaffolding Hours" categorized? Are they Directs or Indirects?"

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011614 Scaffolding, what is it? Direct or Indirect?

  1. 1. SCAFFOLDING WHAT IS IT? DIRECT or INDIRECT An Overview AUTHOR : RUFRAN C. FRAGO, P.Eng, PMP®, CCP, PMI-RMP® REVISION : January 17, 2014
  2. 2. AUTHOR Rufran C. Frago, P. Eng., PMP®, CCP, PMI-RMP® Rufran has a wide-range of expertise & specialization while working in the Manufacturing, Petrochemical, Oleo-chemicals, Oil and Gas, Education & Training Industries for more than 36 years in various roles and capacities. He has worked in Asia, Africa, Middle East and North America. His expertise includes: Primavera Database Administration, Program and Project Planning & Scheduling, Qualitative/Quantitative Risk Management, Problem Solving, Project Management, Cost Engineering, Project Control, Construction Management/Coordination, Project Review & Implementation Audit, Estimating, Engineering & Design, Fab/Mod Management, Preventive & Predictive Reliability-Based Maintenance, Operation, Material Selection, Warehousing, EH&S, and Training. 2
  3. 3. PURPOSE Since scaffolding can easily account for a substantial 5% to 15% or more of construction hours, it is a very significant value in terms of progress. Once it becomes a part of the progressing process, and the resources quantity uploaded to the schedule, then it will work very much in favor of the contractor or the execution team. As such, I would like you and I to try to answer the contentious question below: In a construction project, how are Scaffolding Hours" categorized? Are they Directs or Indirects? 3
  4. 4. PROJECT - XYZ DIRECT HOURS WITHOUT SCAFFOLDING 4
  5. 5. PROJECT - XYZ DIRECT HOURS WITH SCAFFOLDING 5
  6. 6. PROJECT - XYZ PLAN PROGRESS COMPARISON 6
  7. 7. PROJECT - XYZ Scaffolding as Direct (Plan) is the plan progress considering all scaffolding work as direct hours. In this case, 31518 work hours were added (see slides 4 & 5) Scaffolding as Indirect (Plan) is the plan progress if all scaffolding work remain as indirect hours. In this case, the total direct is less by 31,518 hours (see slides 4 & 5) 7
  8. 8. METHODS OF PROGRESSING Four known methods of progressing Scaffolding Work hours regardless of whether it is considered Direct or Indirect: 1. Equal periodic withdrawal from start to end of Construction. 2. Equal periodic withdrawal from start of Civil works to end of Construction. 3. Equal periodic withdrawal from start of Mechanical or Structural works (which ever start first) to end of Construction. 4. Scaffolding hours specifically calculated in each Work Package. 8
  9. 9. Using equal periodic withdrawal from start of Civil works to end of Construction 0.6% padding Scaffolding works hours are usually claimed in a straight line without respect to earned value. This creates the padding. 9
  10. 10. Scaffolding hours specifically calculated in each Work Package Ishii-iiw.co Domed Tank, 2013 Ishii-iiw.co Domed Tank, 2013 Removal of scaffolding Unless the scaffoldings remained in place and become part of the facility constructed, then they are indirectly supporting construction and the hours expended should be considered indirect hours. Source: Ishii-iiw.co, 2013.Internet picture.Retrieved from http://www.ishiiiiw.co.jp/seihin/sub/drf02.jpg 10
  11. 11. Why should scaffolding work hours be considered as indirect? Indirect labors are those whose output is not directly part of the assets erected, much like camp or construction site snow removal, overhead, security, transportation, etc. In turn it will align and translate to indirect costs. Indirect costs are costs that are not directly accountable to a cost object such as a particular facility, equipment, module, function or product (Wikipedia, 2013.Indirect Costs). If scaffolding hours is reflected as direct hours in the estimate and became part of the schedule resource loading, the resource distribution in place will be suspect. Calculating/checking labor density, peak resources, resource leveling, resource planning, resource distribution, scope completeness, quantitative risk assessment, and measuring/monitoring bench mark quantities with production rates will not be accurate nor will it be useful in the future (Frago, R., 2013.Linkedin). Source: Wikipedia, (2013).Indirect Costs.Retrieved from http://en.wikipedia.org/wiki/Indirect_costs Frago, R. (2013).On scaffolding hours.Retrieved from http://www.linkedin.com/groupItem?view=&gid=6575331&item=5816221500834861059&type=mem ber&commentID=5816648952941928448&trk=hb_ntf_LIKED_GROUP_DISCUSSION_COMMENT _YOU_CREATED#commentID_5816648952941928448 11
  12. 12. Why should scaffolding work hours be considered as indirect? (continuation…) Scaffolding erection does not produce a product or a deliverable that becomes part of the capital equipment, or constructed facilities & structures. They are temporary fixtures that are removed right after direct works are done to the capital assets such as a tank, a compressor or a building. Scaffoldings are erected so one can have access to the upper tank tiers Iike when welding or painting. After all is completed, the scaffolding is taken down (Francisco, R., 2013). Source: Frago, R. (2013).On scaffolding hours.Retrieved from http://www.linkedin.com/groupItem?view=&gid=6575331&item=5816221500834861059&type=member &commentID=5816648952941928448&trk=hb_ntf_LIKED_GROUP_DISCUSSION_COMMENT_YOU_ CREATED#commentID_5816648952941928448 12
  13. 13. AACEi DEFINITION OF DIRECTS AND INDIRECTS Direct costs are those resources that are expected solely to complete the activity or asset. It can be any cost that is specifically identified with a particular final cost objective, but not necessarily limited to items that are incorporated in the end product as material or labor (Amos, S., 2007) Indirect costs are those resources that need to be expended to support the activity or asset but that are also associated with other activities and assets. It is any cost not directly identified with two or more final cost objectives. Source: Amos, S., (2007).Cost ElementsCost Structuring.Skills & Knowledge of Cost Engineering-5th Edition.page12 13
  14. 14. CONCLUDING REFLECTION ON SCAFFOLDING? Was scaffolding used solely to complete the activity or asset; say a Vessel? • Very unlikely, because scaffolding erected on the same spot will also be used for erection, painting, welding, piping, insulation, electrical, mixer, float, I&C installation, and others. As such, scaffolding is an Indirect because expended resources are also associated with other activities and assets. Note that the only catch is how the project defines its final cost objectives. Any change to that final cost objectives can change scaffolding to either Direct or Indirect. 14
  15. 15. Bibliography Frago, R. (2013).On scaffolding hours.Retrieved from http://www.linkedin.com/groupItem?view=&gid=6575331&item=5816221500834861059 &type=member&commentID=5816648952941928448&trk=hb_ntf_LIKED_GROUP_DIS CUSSION_COMMENT_YOU_CREATED#commentID_5816648952941928448 Wikipedia, (2013).Indirect Costs.Retrieved from http://en.wikipedia.org/wiki/Indirect_costs Frago, R. (2013).On scaffolding hours.Retrieved from http://www.linkedin.com/groupItem?view=&gid=6575331&item=5816221500834861059 &type=member&commentID=5816648952941928448&trk=hb_ntf_LIKED_GROUP_DIS CUSSION_COMMENT_YOU_CREATED#commentID_5816648952941928448 Ishii-iiw.co, 2013.Internet picture.Retrieved from http://www.ishiiiiw.co.jp/seihin/sub/drf02.jpg Amos, S., (2007).Cost ElementsCost Structuring.Skills & Knowledge of Cost Engineering-5th Edition.page12 15
  16. 16. END 16

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