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Contracts & Cost Breakdown Structure

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Identifying the actual amount of non-assessable cost is a much simpler exercise if the cost codes are structured so as to correspond with the CCRG’s non-assessable categories.

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Contracts & Cost Breakdown Structure

  1. 1. Construction Cost Reporting Contracts & Cost Breakdown Structure P R O P E R T Y T A X C O N S U LT I N G  1.403.508.7770 Energy@altusgroup.com www.altusgroup.com 2020 4th Street SW, Suite 310, Calgary, AB T2S 1W3 Canada  Our consultation services: Lunch ‘n’ Learns: Property Tax 101 Property Assessment & Taxation Estimates Other Resourceful Property Tax Documentation Identifying the actual amount of non-assessable cost is a much simpler exercise if the cost codes are structured so as to correspond with the CCRG’s non-assessable categories. For example, subsistence cost is often buried in labor tickets and needs to be estimated. By setting up a ‘subsistence’ cost code, and mandating that contractors and subcontractors track this expense separately, the actual subsistence cost can be accurately identified, and no estimate will need to be made (and therefore defended to the assessor). Other examples of costs centers to track separately: Freight Nonproductive labor The premium portion of overtime paid Spare parts Rework and Interference Retention bonuses, incentives (isolation pay) Travel and camp expenses With respect to contract setup (especially in a lump sum / unit rate contract), the most important thing to include in the contract is a clause that ensures the contractor must provide any information required for property tax reporting. Efficient information flow and availability of complete, accurate, information are critical factors when looking to add value through the cost reporting process.       

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