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P1: OSO
JWDD004-EP
JWDD004-Halpin-v7
August 24, 2005
18:5
CHAPTER 4
Four Types of Fee Structure
1. Cost
+
Percent of Cost
2. Cost
+
Fixed Fee
+
+
3. Cost
Fixed Fee
Profit Sharing
+
=
−
4. Cost
Sliding fee, Sliding Fee
R ( 2T
A )
where T
=
target price, R
=
base price value, A
=
actual cost of construction
CHAPTER 7
Forward Pass Equations
EFT( I )
=
EST( I )
+
DUR( I )
all I
EST( J )
=
max [EFT( I )]
I ∈ M
where I is a member of the set of M activities that precede activity J .
Backward Pass Equations
LST( J )
=
LFT( J )
−
DUR( J )
all J
=
LFT( I )
min [LST( J )]
J
∈
M
where J is a member of the set of M activities that follow activity I .
Four Types of Activity Float
Total Float
TF(I)
=
LFT(I)
−
[EST(I)
+
DUR(I)]
EST(I)
EFT(I)
LFT(I)
EFT(I)
Where I is a member of the set of
preceding activities.
Free Float
all J
FF(I) = min [EST(J)] − EFT(I)
J ∈ M
Where J is a member of the set of
follower activities.
Interfering Float
IF(I) = TF(I) − FF(I)
=
LFT(I)
−
DUR(I)
TF
all J
min[EST(J)]
J M
EST(I)
EFT(I)
FF
DUR(I)
EFT(I)
LFT(I)
DUR(I)
FF
IF
TF
Independent Float
all J
Ind. F = min[EST(J)] − LFT(I)
J ∈ M
EST(I)
LST(I)
LFT(I)
min[EST(J)]
DUR(I)
2
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P1: OSO
JWDD004-EP
JWDD004-Halpin-v7
August 24, 2005
18:5
CHAPTER 8
PERT Equations
(t a +
4t m +
t b )
Expected duration
t e =
6
where t a is the most optimistic duration estimate, t m is the most likely duration estimate,
and t b is the most pessimistic duration estimate.
(t b −
2
t a )
2
Variance for each PERT activity
σ
=
6
( X
x
√ Variance
Mean
−
−
x )
Z
=
or
Z
=
σ
where
σ
is the standard deviation of the cumulative normal distribution.
CHAPTER 9
=
.
+
Pay
1
25(indirect expense
direct expense)
−
.
.
+
0
10[1
25(indirect expense
direct expense)]
Rate of Return
PW [ REV ( I )]
PW [ EXP ( I )]
all I
all I
−
=
0
where REV( I )
=
revenue for period I
EXP( I )
=
expenditure for period I
=
PW
present worth of these values
CHAPTER 11
Tire Value
Estimated Service Life in Hours
Purchase Price
−
Depreciation Cost per Hour
=
C ( n
+
1)
Average Annual Value (AAV)
=
,
2 n
where AAV is the average annual value, C is the initial new value of the asset, and n is the
number of service life years.
C ( n
+
1)
+
S ( n
−
1)
Average Annual Value (AAV), including the salvage value
=
2 n
The hourly charge for IIT is calculated as:
factor
×
delivery price
1000
IIT/hour
=
3
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P1: OSO
JWDD004-EP
JWDD004-Halpin-v7
August 24, 2005
18:5
CHAPTER 12
Power Required
=
RR
±
GR
1
1
load factor
Percent swell
=
−
×
100
pounds per cubic yard-loose
pounds per cubic yard-bank
where Load factor
=
Grade Resistance (GR)
=
percent grade
×
20 lb/ton/% grade
×
weight on wheels (tons)
RR
20 lb/ton/% grade
Equivalent percent grade
=
Usable pounds pull
=
(coefficient of traction)
×
(weight on drivers)
CHAPTER 13
Resource-hours per hour
Units per hour
=
RH /unit, where RH
=
resource hour
The basic equation for unit pricing:
Resource cost per unit time
Production rate
hr
unit/hr =
$
/
=
$
/
unit
CHAPTER 15
The five parameters which form the foundation of the “earned” value concept are:
Budgeted Cost of Work Schedule (BCWS) = Value of the baseline at a given time
Actual Cost of Worked Performed (ACWP) − Measured in the field
Budgeted Cost of Worked Performed (BCWP) = [% Complete] × BCAC
Budgeted Cost At Completion (BCAC) = Estimated Total Cost for the work Package
Actual Quantity of Worked Performed (AQWP) − Measured in the field
CV, Cost Variance
=
BCWP
−
ACWP
SV, Schedule Variance
=
BCWP
−
BCWS
CPI, Cost Performance Index
BCWP/ACWP
CPI < 1.0 indicates cost overrun of budget
CPI > 1.0 indicates actual cost less than budgeted cost
SPI, Schedule Performance Index
=
=
BCWP/BCWS
P s
P c =
(100
−
P s )
where P c =
percentage applied to the project’s total direct cost for the coming year
P s =
percentage of total volume in the reference year incurred as fixed or G&A
expense
4
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