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Applying a Factor for Overhead and %For Fixed Fee/Profit RRS feed

  • Question

  • Say my project has a Total Cost calculated to be $10,000. I want to be able to apply a factor of overhead to this amount of 150%. I'm assuming I need to create another summary task above the top task name (the one showing the $10,000) that will somehow calculate 150% of $10,000 (showing $15,000 for the overhead factor that will eventually be added to the original $10,000). How is this done?

    In addition I also want to add in a 10% profit. So somewhere above the new total cost of $15,000, I want something to show 10% x ($10,000 + $15,000) or 10% of the total project cost plus the factor of overhead.

    All of this was previously set up at my company using excel but we needed the added function of scheduling when tasks needed completed. Hope my question made sense. Thanks in advance.

    Thursday, April 13, 2017 4:00 PM

All replies

  • elphntgrl,

    I assume you have already factored fringe benefits into your resource labor rate and that you are not interested in G & A (General and Administration), which are the two other elements in the cost versus price number.

    Since both your overhead and profit are at the project summary level, create a custom field (e.g. Cost1) that picks up both elements. If I understood correctly the formula in the custom cost field would be;

    Cost1=Cost*1.5*1.1   or  Cost*1.65

    Then use that same formula for calculation of task and group summary rows.

    Hope this helps.

    John

    Thursday, April 13, 2017 8:14 PM