Project Management

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    Durga Prasad Mohapatro
    Bidding and general Engineering Expenses not included in...
    Topic posted October 2, 2018 by Durga Prasad MohapatroSilver Medal: 2,000+ Points, tagged Project Billing & Revenue, Project Contracts 
    48 Views, 2 Comments
    Bidding and general Engineering Expenses not included in Contract
    Bidding and general Engineering Expenses not included in Contract

    We have a contract for construction.This contract is only for the construction. But, we have already spent some $$ to get this project. This expense is not part of the contract. Now How/where do we capture this cost?

    Lets say we create a contract project, then the cost and revenue budget, and the contract amount are for the construction related only.

    Can we add the pre-construction costs that were used for Bidding and general engineering in the contract project plan?

    What is the best way to handle it in PPM?


    R13 18B



    • Liam Boyd

      Project Contract Billing is primarily designed to support the billing of costs captured through Project Costing. These pursuit costs should be captured in Project Costing and flagged as Non-Billable. If you have captured these costs in a separate project, prior to winning the construction contract, I would suggest you move these costs to the new project. If you structure your Contract and WBS correctly you will still be able to do margin analysis on total costs versus total contract revenue.