Document Detail

Title: IR282-2 - Playbook of Leading Industry Practices for Estimating, Controlling, and Managing Indirect Constructi
Publication Date: 12/1/2012
Product Type: Implementation Resource
Status: Tool
Pages: 85
A comprehensive how-to manual with a chapter on leading industry practices to optimize indirect construction costs (IDCC) in four key categories identified by the team: 1) major construction equipment, 2) construction management and supervisory personnel, 3) scaffolding, and 4) temporary provisions. These practices for estimating, controlling, and managing IDCC are presented in a consistent format of consideration check-lists, detailed process flowcharts, and representative practical tools. In addition to these four chapters, the playbook also includes a chapter dedicated to four innovative IDCC practices.
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Indirect construction costs (IDCC) comprise from as little as 10 percent to 40 percent or more of the total construction cost of projects. Although IDCC constitute a lesser portion of the total project cost than direct construction costs, nearly all of the subject matter experts (89.3 percent) interviewed by CII Research Team (RT) 282 reported that when project teams do a better job of estimating, controlling, and managing IDCC, they have better project performance. Since global competition now demands that owners and contractors pursue all opportunities for improved performance, this playbook identifies methods to close this neglected performance gap.

As a how-to guide outlining leading industry practices for estimating, controlling, and managing key IDCC categories, the playbook presents comprehensive consideration checklists, detailed process flowcharts, and recommended practical tools that are available for immediate application and that can be modified to fit any particular standard operating procedures. As such, this resource contains valuable suggestions for all parties involved in capital facility delivery to improve project performance. RT 282 prepared it for owners and contractors who wish to increase the probability and predictability of project success, and who want to enhance the overall return on their investments in IDCC.

Following this introductory chapter, Chapters 2 through 5 include recommended industry leading practices for estimating, controlling, and managing IDCC. All the processes and practical tools detailed in this playbook are based on subject matter experts’ input and on actual forms and processes used in the industry. Chapter 6 introduces certain innovative practices for estimating, controlling, and managing IDCC. The estimating, controlling, and managing checklists, flow diagrams, and tools can be used to increase the probability of successful project performance. Chapter 7 presents the team’s conclusions, and is followed by a list of references cited.