Cost Management

Cost Management

Cost, time and resource estimates are used as the basis to control your jobs and to standardise your cost comparisons between estimated and actual. 

All project or job lifecycles start with your estimate. But in order to construct your estimate we first need to look at what is being estimated against for each job, task or work group ie Work Breakdown Structure. We need to consider what resources are required, the cost for those resources and the duration they are required for.

To make estimating and cost tracking easier it is recommended that estimators and project managers are aware of the following QicWorks terminology and practices.



Click on   Business  from the main menu, then click on  Settings  .  Click on   Cost Management   from the Financial Settings menu.  

Understanding costs in QicWorks

Classifications

Classification is the name of the group of common resource types. Classifications are used to calculate the net cost and billable rates for each of your resources. Classification examples include Boilermaker Level 2, Supervisor, or 5T Truck.


QicWorks allows you to add equipment as either a Material or as a Resource. It just comes down to how you wish to charge the equipment out and/or if you wish to schedule time for the item within QicWorks Job Schedule.

Resources

Resources are the individual names of the items within your labour and/or equipment pool. Resources need to be assigned a classification to capture their net cost and billable rates. Labour is assigned a classification either within Staff or Resource Tables. Equipment is classified within the Resource Table only.


Example:

Resource = John Smith > Classification = Boilermaker Level2

Resource = Barry Jones > Classification = Boilermaker Level2

Resource = Toyota AB12CD > Classification = 5T Truck

Resource = Hino FF23GG > Classification = 5T Truck


Resources are visible for planning and cost tracking within QicWorks schedule, rosters, timesheets and shift reports. Resource billable rates are set by no charge or hourly rates only.


Materials

A Materials Net Cost is set by its Billable Rate and its chargeable frequency being no charge, each, once, hourly, daily, weekly or monthly.


Materials are usually tangible goods that are purchased resold allocated or consumed on a job.


Net Cost Table

The Net Cost Table shows your buy costs for all Classifications and Materials. These values are used to calculate the Actual cost of your jobs.


Important! You must make each Classification and Material active within the Net Cost Table for it to be seen throughout QicWorks.


All items within the Net Cost Table that are marked as Active are automatically added to the Base Billing Rates Table as Active. They will also appear in any additional Billing Rates Tables you may have customised for your customers, sites or projects, but will be marked as Inactive. You will need to activate and edit their values, within the specific Billing Rates Table, as applicable.


Billing Cost Tables

Every QicWorks account has a default Base Table. This Table is automatically populated with the names of your Classifications and Materials, as created within the Net Cost Table. You will need to then enter the specific rate values as applicable.


Additional Billing Rates Tables can then be created either by cloning the Base Table or applying a Pricing Level. (A Pricing level is a percentage uplift or discount that is applied to the Base Table.)


Individual Billing Rates Tables can be created to reflect specific Customer, Site or Projects. These tables are used to set the sell rates for each Classification and Material assigned to that Job. These rates are also used to calculate the Billable value of that Job.


For more information about Net Cost Tables see, Net Cost Tables or how to Update Net Costs
For more information about Billable Cost Tables see: Billable Cost Tables  or how to Update Billable Cost Tables
For more information about Classifications see: Classifications or Action: Add Classification
For more information about Resources see: Resources or Action: Add a Resource
For more information about Materials see: Material or Action: Add a Material
For more information about creating Custom Rates see: Custom Rates

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