TECHNOTE

Cost to Completion

2 | TECHNOTE – Cost to Completion

Copyright © 2020 by Construction Computer Software (RIB CCS)

This publication is protected by copyright, and permission must be

obtained from the publisher prior to any prohibited reproduction, storage

in a retrieval system, or transmission in any form or by any means,

electronic, mechanical, photocopying, recording, or likewise.

Technote Reference: CAN-TCH-NTE-0014

Technote Version: 00

Technote Date: May 2020

Information is correct as per the functionality present in

Candy V 2.01e09.6.

3 | TECHNOTE – Cost to Completion

TABLE OF CONTENTS

INTRODUCTION ..................................................................................................... 4

CANDY COST RATE ................................................................................................. 5

CANDY COST WORKSHEET ..................................................................................... 8

4 | TECHNOTE – Cost to Completion

INTRODUCTION

Candy cost rates or worksheets are used to make cost adjustments to the remaining cost during the

post tender stage. Changes can be to Resource cost rates, Production output, Wastage allowances

and Construction methods. The Cost rate however also integrates with BuildSmart procurement. In

BuildSmart it is used as a Buying rate. If the QS is aware of a mistake made at estimate, for example

the concrete price allowed is not adequate, the Cost rate can be updated to an adequate rate and

uploaded into BuildSmart. The Procurement manager can then import the new resources but using

the Cost/Buying rate. This will then allow a buyer to exceed the allowable, up to the new Buying rate.

This will allow users to lock rates and quantities and will give the QS full control.

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CANDY COST RATE

Before the use of the Cost rate can be viewed there is some pre-setup requirements that need to be

in place, these requirements are:

• First Principal estimating for all bill items.

• Accurate actual quantity measure is key in the true reflection of the project performance to date.

(Valuation needs to be in place).

• Accurate final quantity measure is key for an accurate reflection of the remaining; and at

completion Cost & Allowables.

• Imported Cost (Optional).

Looking at the current cost report we can see the following:

• Allowable to date – Actual quantity x Net rate. 37,037,426.

• Cost to date – Imported cost to date from the accounting system 37,037,716.

• Variance to date – Allowable to date less Cost to date -290.

• Allowable remaining – Remaining quantity x Net rate 274,472,951.

• Cost remaining – Remaining quantity x Cost rate in Candy 274,472,951.

• Variance remaining – Remaining allowable less Remaining cost 0.

• Allowable at completion – Final quantity x Net rate 311,510,377.

• Cost at completion – Cost to date + Remaining cost 311,510,667.

• Variance at completion – Allowable at completion less Cost at completion -290.

To change Cost Rates, take the following steps:

• Step 1: Under the Cost & Allowables tab > Documents > Cost & Allowables documents.

Alternatively, you may select the icon to open the Document Manager.

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• Step 2: Select document 7.1 Resource Cost Rate to completion.

• Step 3: Change the details given below under the Cost Rate column.

o LABOUR ARTISAN 125/hr

o GANG BOSS 70/hr

o CEMENT OPC 115/bag

o BEDDING SAND COMMERCIAL 210/m3

o REINFORCING MESH REF.100 12.60/m2

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View the effects on the 1.1 Cost & Allowable by period document / report.

Changing 5 cost rates, increased 3 costs and decreased 2 and the following effects can be viewed.

Remaining

Description Remaining Allowable Remaining Cost Remaining Variance

Before 274,472,951 274,472,951 0

After 274,472,951 274,377,013 95,938

At Completion

Description At completion Allowable At completion Cost At completion Variance

Before 311,510,377 311,510,667 -290

After 311,510,377 311,414,729 95,648

Notice the Allowable remains the same. But the Remaining Cost and at completion cost are affected.

These 5 changes made, caused an increase in the contracts cost of 95,648. The QS can now use this

information to try and minimalize the effects this has on the project. By changing productions,

wastages, suppliers and trying to get discount on other high value items or fixing cost for the remaining

duration of the project. Therefore, the Cost rate can be used to try and make accurate future

predictions for the project.

8 | TECHNOTE – Cost to Completion

CANDY COST WORKSHEET

Cost worksheets are used to change productions, wastage factors and construction methods on bill

items using actual site information to predict the effect it will have on the project. To do this, take

the following steps:

• Step 1: Under the Cost & Allowables tab > Documents > Cost & Allowables documents.

Alternatively, you may select the icon to open the Document Manager.

• Step 2: Select document 7.1 Resource Cost Rate to completion.

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• Step 3: Open the worksheet for the item you would like to change the Cost worksheet.

• Step 4: Click View > Flip to Cost worksheet.

A Worksheet currently identical to the Net worksheet will be displayed.

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Let’s say the site team informed you that they are only achieving 20m3/day. Make this change to

the Cost worksheet.

Let’s say the estimator forgot to apply wastage to an item. Make this change to the Cost worksheet.

View the effects on the cost report.

Remaining

Description Remaining Allowable Remaining Cost Remaining Variance

Valuation 1 274,472,951 274,472,951

Cost rate 274,472,951 274,377,013 95,938

Cost worksheet 274,472,951 281,252,417 -6,779,465

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At Completion

Description At completion Allowable At completion Cost At completion Variance

Valuation 1 311,510,377 311,510,667 -290

Cost rate 311,510,377 311,414,729 95,648

Cost worksheet 311,510,377 318,290,132 -6,779,755

These 2 changes made, caused an increase in the contracts cost of an additional 6,875,403 bringing

the total increase to 6,779,755. The QS can now use this information to try and minimalize the effects

this has on the project. By changing productions, wastages, suppliers and trying to get discount on

other high value items or fixing cost for the remaining duration of the project. Therefore, the Cost

Worksheet can be used to try and make accurate future predictions for the project.

Should you require any further assistance, please contact your local CCS office.