| 1 | Not assigning a code to all activities. | As spelled out in the specs, all activities should be BIDI coded even there are no costs associated with them. |
| 2 | Creating the code at Global level. | To be specific to the project, and such that changes to the code would not incidentally affect other projects, the code should be defined at Project level. |
| 3 | Not using a resource for cost allocations. | The practice of cost loading activities by expenses, or by direct cost assignment on activities, and not using a resource is normally conducted by planners relatively new to this planning/scheduling profession. While the total costs would reflect the same using either the expenses or that by a resource, what’s missed out, and this is vital in cost analysis, is the time distribution of costs that could readily be viewed in, and extracted from, the Primavera P6 if the cost allocation was made by the resource assignment method. The time-based distribution of costs is handy in generating s-curves and assessing the, well, allocation of costs as a function of time.
While level of effort and work summary types of activities could be cost-loaded, milestones should not have be cost-loaded as they don’t have durations. |
| 4 | Cost-loading milestone-type activities. | While level of effort and work summary types of activities could be cost-loaded, milestones should not have be cost-loaded as they don’t have durations. |
| 5 | Cost-loading activities under the responsibility of the project client/owner. | Activities that are to be performed by the contractor, and its subcontractors and contracted service providers, should only be the ones to be cost-loaded. Hence, the planner should investigate this with the aid of the RESP code. Example of this activity could be removal of existing stockpiles for the site facilities of the contractor wherein this activity is to be done by the project client/owner. However, there could be exceptions to this wherein the preparation of a certain document (by the contractor) is split-cost-loaded with its approval (by the project owner/client). The split, whether at 50/50, or 40/60, could be arranged and agreed by the contracting parties prior to finalizing the cost allocations. |
| 6 | Front-loading the cost allocations. | Examples of front-loaded costings are: associating costs to the material’s procurement that are substantially greater than its installations/construction, or using a cost-curve that is not uniform/linear that would introduce more cost weights at the front-end. Since the schedule is used for payment claims, the cost allocations need to be reasonable. |
| 7 | Odd overall cost-distributions (s-curve). | While cost loading is made on activities, the overall project cost summed up from these activities could be visually inspected in the s-curve. Ideally, cost distributions should take the shape of a bell (bell-shape curve). “Odd” cash flow means having irregular peaks-and-troughs in the generated histogram. This is indicative of the activities not sequenced by the appropriate efforts needed to complete them. |
| 8 | Total cost-loaded does not equal to the project value. | It’s essential that the total amount of the project equates to the contractual value. Each contract line item should be reviewed to ensure that it aligns with the agreed amount, and thereabout, alignment with the overall contract value. See Figure 6 for a sample of contract line items for BIDI coding. |