Full Day of cost for partial day of duration

[CalicheClay]

I use MS Project to create estimates based on timelines, by resource loading a project, and using the cost column to generate expected cost.

The problem I have is that for resource cost, you are given the option of either standard rates, or cost/use. The standard rate takes into consideration partial units of duration. In the real world, a contractor will most likely charge you for a full day of work even if they were onsite for a partial day.

Is there any way to set up Project to calculate a full day of work for a partial day of duration? Example:

Task is 3 days and 6 hrs long. The contractor charges $4,000/day. Project will calculate 3.25 days X $4,000 = $13000. I want it to calculate $4,000 X 4 days = $16000. The partial day should be calculated as a full day, but should not impact the duration of the project.

Thanks!

 

[PDQBach]

The bottom line (yes, the pun was intended) is: yes, there is a way within project to directly accomplish what you are trying to do.

1. Create your resource with a billing rate of $4000 per day.

2. Create the task with duration of 3 days and 6 hours (3.75 days -- you have a typo where you put 3.25) and work of 4 days (overloading the resource but making your estimated cost match the $16,000 you expect to be billed).

This will give you the desired project schedule: the duration will show the final day as a part day (letting successor tasks begin part way through that day) and the work and cost figures will balance out, too.

The more complete answer is not so simple. My experience of dealing with contractors is that you get one of two prices: a firm fixed price, or a daily rate.

When it's a firm fixed price, I've never seen a discount when the work is finished early although I have seen penalty clauses in the contract for late finishing -- but there, too, MS Project would not be of much help since penalties seem to always be the subject of some discussion and negotiation.

When it's the daily rate, I've always seen push back from accounting when the contractor attempts to charge a full day for a part day work.

Finally, when I'm tracking costs in a project, I don't rely on Project for exact cost tracking. For that, I rely on the old standby: Excel. My project's real costs come from internal resource charging and accounting's bill payment procedures and there's always a variance of one kind or another to consider -- something project really isn't set up to do.