PROJECT PLANNING

Project planning is the process of predetermining a course or line of action.

necessary for a project to complete its life cycle and fully satisfy its
cost, time, quality, and technical performance objectives.
To do this, one must have a clear understanding of the client's requirements and comprehend what
It is necessary. Also, it is necessary to plan the work to be done in phases.
considering the definition of work packages (WBS), the schedule planning
of activities, the budget, the quality assurance plan, the management of
purchases and contracts, the environmental management plan and the risk management plan.
Now, who is responsible for project planning?
The main responsibility for project planning usually falls on the leader.
of the project. However, the functional administrators are responsible for it,
when they have elements to prepare; for example, an engineering function consists
in preparing the plans that graphically describe the project and any defects in
these will be transferred to the plan and finally to the project.
Finally, it is important during the process of developing the planning of a
project to avoid falling into misconceptions that, if not corrected, can lead to
serious and sometimes irreversible consequences in the execution phase of the project.
The following are some of these common faults:
El planear un poco y trabajar un poco; es decir, la planeación se va haciendo a
measure that is being executed.
The disguised planning, which is based on the phrase 'in any case, the plans
they never come true, that's why I ignore them and please the boss with something that
look closely.
The complex plans are so sophisticated that almost no one understands them.
It is possible to envision the scenario of 'believing that in order to carry out the planning of a project,'
someone familiar with technology is required.

WORK SCHEDULING.
The programming of a construction project is understood as the process of
organize in time logically and sequentially the execution of each of the
necessary activities to successfully complete the project. For this, it is
it is necessary to create the work division structure and subsequently, do the
project execution schedule.

WORK BREAKDOWN STRUCTURE: WBS

The structure for the division of labor consists of breaking down the Project into packages
work logically and systematically, in order to provide easy handling and
project cash; in turn, these packages are divided into chapters; the chapters into
sub-chapters, and so on until obtaining specific activities that
they can plan, budget, and control.
Below, the WBS of the project will be developed as an example.
Construction of a single-family home built on a 6 x 9 lot, with a total area
built of 62 m2, distributed over two floors, consisting of living-dining room, kitchen,
patio and a bathroom on the first floor, and three bedrooms on the second floor.

A first division of the housing construction project is made into three packages.
main aspects: preliminary, construction and final cleaning; the final cleaning package is a
activity that can be scheduled, budgeted, and controlled.
2. The preliminary work package is divided into two chapters: location and layout.
cleaning and stripping; these chapters are activities that can be budgeted,
program and control.

3. The construction work package is divided into four chapters: foundation,

structure, finishes, and home installations.

4. In the construction work package: the foundation chapter is divided into three
actividades: excavación, concreto ciclópeo y vigas de amarre; éstas, se pueden
budgeting, scheduling, and controlling.

In the construction work package: the structure chapter is divided into six sub-.
capítulos: muro estructural, losa maciza de entrepiso, escalera maciza, cubierta, contra-
water tank floor and plate; the last five sub-chapters are activities that
they can budget, schedule, and control. On the other hand, the sub-chapter wall
structural, can be subdivided into two activities: structural wall on the 1st floor and wall
structural to cover; these activities can be scheduled, budgeted, and controlled.
6. In the construction work package: the finishes chapter is divided into four sub-sections.
capítulos: mampostería estructural, pisos y enchapes, carpintería, vidrios y cerraduras.

7. In the construction work package, the finishes chapter, sub-chapter

structural masonry is divided into three activities: plastering, edges, and dilation,
painting; these activities can be scheduled, budgeted, and controlled.

8. In the construction work package: the finishes chapter, sub-chapter flooring and
Finishes are divided into three activities: bathroom finishing, floor preparation, and floor installation;
These three activities can be scheduled, budgeted, and controlled.
9. In the work package construction: the finishes chapter, sub-chapter carpentry,
It is divided into two mini-chapters: metal and wood. In turn, metal is divided into three.
actividades: marcos puertas, puerta entrada y patio, y ventanas; y por otra parte,
wood is divided into two activities: interior doors and closets; these five
activities can be scheduled, budgeted, and controlled.

10. In the construction work package: the finishes chapter, sub-chapter glasses and
locks, divided into three activities: access lock, interior door lock and
glass installation; these three activities can be scheduled, budgeted and
to control.
11. in the construction work package: the chapter on household installations is divided
in two sub-chapters: hydrosanitary and electrical.

12. In the construction work package: the chapter on home installations, sub.-
The hydrosanitary chapter is divided into seven activities: hydraulic connection, box of
contador, instalación hidráulica, aparatos sanitarios, tanque de agua, puntos de desagüe
and inspection box; these can be programmed, budgeted, and controlled.

13. In the work package construction: the chapter home installations, sub-.
Electrical chapter, divided into four activities: electrical service, 4 board
circuits, single-phase and three-phase outlet, and lamp output; these can be
plan, budget and control.
SCHEDULE
Once the project's WBS has been completed, and the specific activities have been defined
From this, the schedule of activities is created, in which the
sequences of the activities, the duration, and the start and end dates of each one,
in such a way that the time required to execute the project can be determined.
Similarly, the sequence of activities can be represented graphically as
different forms: CPM / PERT diagrams, LPU diagram, and Gantt chart. A
next, the process of making the table will be explained in detail
sequences, graphical representation, and determination of durations and start-end dates
of the activities.

Elaboration of the activity sequence table.

The sequence table presents the location of each activity in chronological order.
in the project, ensuring the inclusion of all activities in a structure of
time for the project, in which the start and completion of it is identified. Now
Well, three relationships between the activities are recommended: 1) finish to begin,
when an activity is completed and the next one begins; 2) start to start,
when two activities start at the same time, and 3) finish to finish, when
Two activities are completed at the same time; as a rule of thumb, type relationships
"finalizar para comenzar " deben representar entre el 90 y el 95 por ciento de las
relationships, the type 'start to start' should cover between 3 and 7 percent and
the type "finalize to finish" should mean between 2 and 3 percent.
The following will be an example using only finalize relationships for
start:
The following list of seven activities of a project is presented; it is observed that each
the activity is located in the project concerning the activities that precede and follow it
like this:
Graphic representation
Once the sequence table is created, it can be represented graphically by
middle of the CPM / PERT diagram or LPU:

CPM/PERT diagram or arrow diagram.

To create the CPM / PERT diagram, the following must be taken into account:

Each activity is represented by an arrow (VECTOR).

In the queue, the activity starts and the preceding activity ends; and at the head
the activity ends and the following activity begins.
Every activity begins with an event (EP) and ends with an event (EF).
Events are represented by circles, knots, or nodes.
In each pair of events, there cannot be more than one arrow connecting them. So that not
To make this happen, virtual or fictitious activities must be created.

Given the above considerations, we proceed to create the CPM / PERT diagram.
from the example:

LPU Diagram (Lines Points Union)

To create the LPU diagram, the following must be taken into account:
The activity takes place in the knot.
The line that connects the activities is called the sequence lines.
For one activity to precede another, it must be behind or above and connected with a line.
sequence.
For one activity to follow another, it must be above or below and connected by a line.
sequence.
When there are simultaneous activities, they must be on the same vertical and without a line of.
sequence.

Given the above considerations, we proceed to create the LPU diagram of the
example:
Bar chart: GANTT
To create the Gantt chart, the following must be considered:
The activity is represented by a bar
The line connecting the activities is called the sequence line.
For one activity to precede another, it must be behind and above, connected with a line of
sequence.
For one activity to follow another, it must be above and below, connected by a line of
sequence.
When activities are simultaneous, they must be on the same vertical and without a line of
sequence.
Given the above considerations, we proceed to create the GANTT diagram of the
example:

Activity Scheduling
After graphing the sequence table using the CPM models /
PERT, LPU, and Gantt, we proceed to determine the durations of the activities, their
start and end dates, calculate the float times and finally determine the critical path.

Duration of the activities

It depends on the availability of resources.
Debe determinarlo personal capacitado y conocedor de la actividad.
It should be estimated in the most convenient time unit; it is suggested not to use
fractions of time.
Determination of the project's start date.
Zero time is defined as the start date of the project.
Determination of start and end dates of activities
There are two types of activity start dates:
IP = first initiation (date on which the activity can begin)
IU = ultimate initiation (maximum date on which the activity should begin).
Likewise, there are two types of activity end dates:
TP = first deadline (date on which the activity can be determined).
TU = last deadline (maximum date to determine the activity).
Now, how are IP, TP, IU, and TU determined?
For the calculation of IP and TP, a traversal of the PERT or LPU chart is made from left to right.
right. Initially, the IP of the first or first activities will be zero and its TP will be
the sum of IP and the duration (D) of the activity. Finally, the IP of the following
activities will be the highest TP of the activities that precede it, and its TP is calculated
applying the equation: TP = IP + D.
On the other hand, for the calculation of IU and TU, a traversal of the PERT or LPU graph is performed.
from right to left. Initially, the final activity's TU is its own TP; then
the IU of this activity is the difference between its TU and its duration (D). Finally, the TU
of the other activities, it will be the lowest IU of the following, and its IU is calculated by applying
the equation IU = TU–D.
Assigning duration to each activity of the example, determine IP, TP, IU, and TU in the
PERT and LPU chart:
Activity Duration
A 2 days
B 3 days
C 2 days
D 4 days
E 3 days
F 3 days
G 4 days

PERT Chart:

LPU Chart:
GANTT chart:

Calculation of fluctuations or clearances.

The Slack is defined as the amount of time that can be delayed in starting or
complete an activity without affecting the dates of the successor activities and the date of
project completion. To determine the slack of each activity, the
following equations:

Slack = TU–TP or Slack = IU-IP

For the example, we have:
Slack activity A = 2-2 = 0
Slacken activity B = 5-5 = 0
Slack activity C = 9-7 = 2
Slack activity D = 9-9 = 0
Activity slack E = 12-8 = 4
Clearance activity F = 12-12 = 0
Slack activity G = 16-16 = 0

Calculation of Critical Path

The critical path is the set of activities whose total float is equal to zero.
For the example, the critical path is made up of the activities A-B-D-F-G.

SCHEDULE IN MICROSOFT PROJECT (MSP).

The schedule of a construction project can be done manually as
it was mentioned in section 36.2, or also supported by computational tools
such as Microsoft Project, Primavera, among others. The following will be shown
in Microsoft Project the schedule for the construction of the proposed single-family home
in numeral 36.1 EDT.
Initially, based on the WBS, the list of project activities is prepared.
defining each of them, the predecessor activities and their duration:
PROJECT CONSTRUCTION SINGLE-FAMILY HOUSING
Organization: Management and Development of Architecture and Engineering
Autor: Ing. Beatriz Elena Castaño Q.
Project start date: May 2, 2005.
ACTIVITIES Predecessors DURATION
(days)
1. PRELIMINARIES
1.1 Localization and replanning 2
1.2 Cleaning and stripping 1.1 Localization and layout 2
2. CONSTRUCTION
2.1 Foundation
2.1.1 Excavation 1.2 Cleaning and stripping 2
2.1.2 Cyclopean concrete 2.1.1 Excavation 2
2.1.3 Tie Beams 2.1.2 Cyclopean Concrete 4
2.2 Structure
2.2.1 Structural wall in brick, 1st floor 2.1.3 Tie Beams 4
2.2.2 Solid floor slab h = 0.12 2.2.1 Structural wall in brick, 1st floor 5
2.2.3 Stairs 2.2.2 Solid floor slab h = 0.12 4
2.2.4 Structural wall in brick to cover 2.2.2 Solid floor slab h = 0.12 4
2.2.5 Cover 2.2.4 Structural wall in brick to cover 5
2.2.6 Subfloor plate 2.2.2 Solid slab of floor h = 0.12 2
Water tank plate 2.2.4 Structural wall in brick to cover 2
2.3 Finishes
2.3.1 Structural masonry
[Link] Render walls and plate 2.2.5 Cover 3
[Link] Philosophies and expansions [Link] Pañete 2
[Link] Painting [Link] Fillets and expansions 3
2.3.2 Floors and coverings
[Link] Bathroom Tiling [Link] Wallpaper 1
[Link] Listing of floors [Link] Painting 2
[Link] Floors [Link] Listing of apartments 2
2.3.3 Carpentry
[Link] Metallic
[Link].1 Door frames [Link] Pañete 2
[Link].2 Access door and patio [Link].1 Door frames 1
[Link].3 Windows [Link] Pañete 2
[Link] Wood
[Link].1 Interior doors [Link].1 Door frames 1
[Link].2 Closet [Link] Painting 5
2.3.4 Glasses and Locks
[Link] Access and patio lock [Link].2 Access door and patio 1
[Link] Interior door lock [Link].1 Interior doors 1
[Link] Glass [Link].3 Windows 1
2.4 Residential Installations
2.4.1 Sanitary Hydraulics
Hydraulic service connection 2.1.1 Excavation 1
[Link] Counter box 2.2.1 Structural wall in brick, 1st floor 1
[Link] PVC hydraulic installation 1/2" 2.1.3 Tie Beams 2
[Link] Laundry [Link] Plaster 1
[Link] Shower [Link] Pañete 1
[Link] Sink [Link] Pañete 1
[Link] Dishwasher [Link] Plaster 1
[Link] Sanitary [Link] Plaster 1
[Link] Water tank 2.2.7 Water tank plate 1
Drain point 3" and 4" 2.1.3 Tie Beams 1
[Link] Inspection box 40 X 40 2.1.3 Tie Beams 2
2.4.2 Electrical
[Link] Electric supply connection [Link] Plaster 2
[Link] Four circuit board [Link] Pañete 1
[Link] Lamp output + socket [Link] Electrical Connection 1
[Link] PVC outlet + socket [Link] Electrical connection 1
3. FINAL SEO 43

Then, based on this table of activities, precedences, and durations, the following is prepared:
Schedule in Microsoft Project as follows:
COSTS AND PROJECT BUDGET.
The analysis of the costs of a project is one of the most important aspects to
consider in the project planning, given the team's imminent need
project to estimate the total value of the project and to define the possible sources of
financing, as well as the parallel disbursement program with the schedule of
actividades del proyecto. Los costos de un proyecto pueden ser directos e indirectos.

DIRECT COSTS
Direct costs refer to the cost of those resources that are part of the
activities that have a direct relationship with the production of the good or provision of the service
service reason for being of the project. For example: cost of labor to carry out
the project activities; the cost of the materials that the project consumes and that
they become part of the final product; cost of external service contracts
hired to carry out a part of the project; cost of the tools and equipment
used for carrying out the project activities aimed at developing the
final product.

INDIRECT COSTS
Indirect costs refer to the cost of those resources that are involved in the
project activities, but not directly. They are classified as:
Administration expenses: salary of the project manager and administrative staff
project.
General expenses: rentals, services, vehicle maintenance, stationery, tests
from the laboratory, among others.

Generally, indirect costs tend to be calculated as a percentage of the

direct costs.

BUDGET PREPARATION
The total cost of a project is the total sum of direct and indirect costs of the
project. To determine this total cost, it is necessary to prepare a budget
total of the project, which includes the budget for direct costs and the budget for
indirect costs of the project.
Now, to prepare the budget for direct costs of a project, the following is required:
First, extract from the project's WBS the list of activities required to carry out.
to a successful conclusion the project. Secondly, determine the resources and the amount
necessary for these, to carry out each of the activities of the project; these
resources can be technology, materials, labor, among others. Thirdly,
an approximate cost of these resources is determined. Fourthly, it is determined the
cost of each activity, by summing the costs of the assigned resources
Finally, the budget for the direct costs of the project is prepared by making
the sum of the costs of each of the activities involved in the project.
In the preparation of the direct cost budget for construction projects, to
prior analysis of resource allocation for each activity is referred to as analysis of
unit prices. Let's observe an example:
The activity Tie Beam is available. In order to develop the tie beam activity
the following resources are required: regular concrete of 2500 PSI, ordinary shelf;
table donkey, gasoline vibrator, labor and nail. Next with this
information will be made the cost analysis of the resources needed to prepare a
cubic meter of tie beam as follows:
 ANALYSIS OF UNIT PRICES: TIE BEAM ACTIVITY (m3)
RESOURCES UnidadCantidad. Precio Total
NORMAL CONCRETE 2500 PSI Cubic meter
1,1 300556 330612
ORDINARY SHELF 3 M ml 3.11 1009 3138
ORDINARY BURRA TABLE 0.30 ml 3.52 1700 5984
GASOLINE VIBRATOR dd 0.04 19720 789
AA LABOR hc 12 10202 122424
POINT WITH HEAD 2 lb 1.47 1782 2620
UNIT VALUE
(Cost of 1 m3 of tying beam) 465.566

In the column resources, the necessary resources are described one by one to carry out
cable activity.
In the Unit column, the unit of measurement for each of the resources is placed.
In the quantity column, the amount of the necessary resource is placed to carry out
one cubic meter of tie beam. This column performance is also called.
In the price column, the unit cost of each resource is placed.
In the total column, the total cost of each resource in the preparation of a
cubic meter of tie beam; this is determined by multiplying the quantity of columns
and price.
In the unit value row, the unit cost of the tying beam activity is determined;
this is calculated by summing the total costs of the resources.
Once the unit price analysis has been done for each of the direct activities of
project, the summary table of direct costs of the project is created, which groups
the total direct costs of the project activities as follows:

DIRECT COSTS OF THE PROJECT

Value Value
ACTIVITIES Unidad Cantidad. unitario Total

TOTAL DIRECT COSTS OF THE PROJECT

In the activities column, the direct activities of the project are defined.
In the Unit column, the unit of measurement for each activity is placed.
In the quantity column, the amount of the activity is placed.
In the unit value column, the unit cost of each activity is placed; this,
it is obtained from the analysis of unit prices.
In the total value column, the total cost of each activity is determined; this is
determine by multiplying the quantity and unit value columns.
In the row Direct costs of the project, the direct cost of the project is determined;
this is calculated by summing the total costs of the activities.
On the other hand, in the construction of the analysis of the indirect costs of the project, it
they can be determined in two ways:
Determining one by one the general and administrative expenses of the project.
GENERAL EXPENSES
Value
ITEM Unit Cantidad unitary Total value

TOTAL GENERAL EXPENSES:

In the item column, the activities or resources that have an impact are defined.
indirectly in the project and are referred to as overhead costs, such as:
["stationery","laboratory","industrial safety","topography","public services","maintenance"]
teams, among others.

In the Unit column, the unit of measurement for each item is placed.
In the quantity column, the quantity of each item is placed.
In the unit value column, the unit cost of each item is placed.
-In the total column value, the total cost of each item is determined; this is determined
multiplying the columns quantity and unit value.
In the general expense file, the general expenses of the project are determined; these are
They calculate by means of the summation of the total costs of the activities.

The previous format is also used to determine administrative expenses.

such as: salary of the project director and resident, salary of the secretary, storekeeper,
caretaker, inspector, among others. Now, once the general expenses are determined
and project management, the expected profit is calculated, which is considered
as a percentage of the project's direct costs. Finally, the sum of the
general expenses, administrative expenses, and profit correspond to indirect costs
of the project.

DEFINING INDIRECT COSTS AS A PERCENTAGE OF

DIRECT COSTS; THIS IS CALLED AIU (ADMINISTRATION,
UNFORESEEN EVENTS AND UTILITIES

Finally, once the budget for direct and indirect costs has been prepared, it is calculated
the total budget of the project is as follows:
Total Cost of the project = CD + CI
APPLICATION EXAMPLE.
Next, the budget will be prepared for the example of the single-family house.
posed in lesson 36, numeral 36.1.

a) Initially, based on the WBS, the list of project activities is prepared:

PROJECT CONSTRUCTION SINGLE-FAMILY HOUSING

1. PRELIMINARIES
1.1 Localization and replanning
1.2 Cleaning and decapping
2. CONSTRUCTION
2.1 Foundation
2.1.1 Excavation
2.1.2 Cyclopean concrete
2.1.3 Tie Beams
2.2 Structure
2.2.1 Structural wall in brick, 1st floor
2.2.2 Solid floor slab h = 0.12
2.2.3 Stairs
2.2.4 Structural wall in brick to cover
2.2.5 Cover
2.2.6 Subfloor
2.2.7 Water tank plate
2.3 Finishes
2.3.1 Structural Masonry
[Link] Plaster walls and slab
[Link] Beams and expansions
[Link] Painting
2.3.2 Floors and cladding
[Link] Bathroom Tiling
[Link] Listing of floors
[Link] Floors
2.3.3 Carpentry
[Link] Metallic
[Link].1 Door frames
[Link].2 Access door and patio
[Link].3 Windows
[Link] Wood
[Link].1 Interior doors
[Link].2 Closet
2.3.4 Glass and locks
[Link] Access and patio lock
[Link] Interior door lock
[Link] Glass
2.4 Home Installations
2.4.1 Sanitary Hydraulics
[Link] Hydraulic connection
[Link] Counter box
[Link] PVC Hydraulic Installation 1/2"
[Link] Laundry
[Link] Shower
[Link] Sink
[Link] Dishwasher
[Link] Sanitary
[Link] Water tank
3" and 4" drain point
Inspection box 40 X 40
2.4.2 Electrical
[Link] Electrical supply
[Link] Four circuit board
[Link] Lamp output + socket
[Link] PVC outlet + take
FINAL SEO

b) Analysis of unit prices APU: The APU for each one is prepared.
the project activities grouped by chapters:
c) Costos Directos = Cuadro Resumen
DIRECT COSTS
SINGLE-FAMILY HOUSING CONSTRUCTION
Value
ACTIVITY Unidad Cantidad unitary Total Value
1. PRELIMINARIES
1.1 Localization and
reconsideration m2 54.00 1628 $ 87,889
1.2 Cleaning and stripping m3 10.80 14255 $ 153,958
2. FOUNDATION
2.1 Excavation m3 9.00 26369 $ 237,317
2.2 Cyclopean concrete m3 7.49 162745 $ 1,218,963
2.3 Tie Beams m3 1.71 465566 $ 796,118
3,STRUCTURE
3.1 Structural wall in
brick, 1st floor m2 99.67 47578 $ 4,742,049
3.2 Solid slab of
interfloor h = 0.12 m2 30.93 62772 $ 1,941,547
3.3 Solid stairs m3 0.60 693973 $ 416,384
3.4 Structural wall in
brick to cover m2 120.00 47578 $ 5,709,300
3.5 Covered with tile
Spanish m2 37.38 34157 $ 1,276,785
3.6 Subfloor e = 0.08 m2 29.25 36178 $ 1,058,198
3.7 Water tank plate and
= 0.10 m2 1.44 58546 $ 84,307
3.8 Iron 60,000 PSI ton 0.79 2015962 $ 1,582,530
3.9 Iron 37000 PSI ton 0.23 1980864 $ 451,637
4 FINISHES
Walls
4,1 Pañete m2 445.00 7877 $ 3,505,407
4.2 Threads and expansions ml 379.90 2576 $978,729
4.3 Hand painting
about plaster m2 445.00 2935 $ 1,306,204
Floors and coverings
4,4 Bathroom tiling m2 4.41 41991 $ 185,181
4.5 Listing of floors m2 62.88 12061 $758,383
4,6 Floors m2 62.88 25628 $ 1,611,519
Metal carpentry
4.7 Marco doors a 6.00 23642 $ 141,849
4.8 Access door and patio m2 4.00 40273 $ 161,092
4.9 Windows m2 2.27 22435 $50,928
Wood carpentry
4,10 Interior doors a 4.00 50075 $ 200,300
4,11 Closeth m2 4.00 180000 $ 720,000
Glasses and locks
4.12 Access lock and
patio a 2.00 35320 $ 70,640
4,13 Door lock
interiors a 4.00 37640 $ 150,560
4.14 Glasses m2 2.27 23191 $ 52,642
5. FACILITIES
HYDROSANITARY
5.1 Hydraulic connection a 1.00 159050 $ 159,050
5.2 Counter box a 1.00 50368 $ 50,368
5.3 Hydraulic installation
PVC 1/2" ml 15.00 7192 $ 107,875
5.4 Laundry a 1.00 47182 $ 47,182
5.5 Spirit a 1.00 18700 $ 18,700
5,6 Washbasins a 1.00 55000 $ 55,000
5.7 Sink a 1.00 25000 $ 25,000
5.8 Sanitary a 1.00 191400 $ 191,400
5.9 Water tank a 1.00 192478 $ 192,478
5,10 Drain point 3"
y 4" a 2.00 97125 $ 194,249
5.11 Inspection box 40
X 40 a 3.00 75809 $ 227,427
6, INSTALLATIONS
ELECTRICAL
6.1 Electrical Supply ml 30.00 46200 $ 1,386,000
6.2 Four-Circuit Board a 1.00 41335 $ 41,335
6.3 Lamp output +
rosette a 10.00 61740 $ 617,397
6.4 PVC Outlet + Intake a 7.00 37585 $ 263,098
7. GENERAL CLEANING gl 1.00 120,000 $120,000
TOTAL COSTS $
DIRECT 33,346,977
d) Indirect Costs

INDIRECT COSTS
The indirect costs of the project, are
they will consider it as a percentage of the
direct costs. This percentage,
named AIU, and for the example, it will be
of 15%, distributed as follows
way: 10% administration, 1%
unexpected events and 4% profit.
Direct costs = 33,346,977
AIU = 15%
Administration: Direct Cost *
10% 3,334,698
Contingencies = Direct Cost * 1% 333,470
Profit = Direct Cost * 4% 1,333,879
Indirect cost = Direct cost *
AIU 5,002,047

e) Total cost of the proposal

The total cost of the proposal is: Direct costs + Indirect costs
Costo total propuesta = $ 33.346.977 + $ 5.002.047 = $ 38.349.024

To this total cost, it is necessary to add the 16% VAT on the profit as follows:
Utilidad = Costo Directo * 4% = $ 1.333.879
VAT of 16% on profit = $1,333,879 * 16% = $213,421

Then,
Total project cost = Direct costs + indirect costs + VAT profit.
Total project cost = $33,346,977 + $5,002,047 + $213,421
Total project cost = $38,562,444.

TOTAL INDIRECT COSTS $5,002,047

TOTAL DIRECT COSTS $ 33,346,977
VAT 16% on profit = profit *
16% $ 213,421
TOTAL PROPOSAL COST:
$ 38,562,444