FCICA CIM cheat sheet

Labor cost = (quantity of work / crew productivity rate) × crew hourly cost including burden; productivity rates must match the estimate basis (e.g., square feet per hour).

Material cost = net quantity × unit price × (1 + waste factor); waste factors are estimate assumptions, not defaults, and must be documented.

Equipment cost = ownership cost (depreciation, interest, insurance, taxes) + operating cost (fuel, repairs, tires) allocated by hourly rate.

Overhead and profit are applied as percentages to direct cost; job cost reports must separate direct cost from markup to compare against the estimate.

Contingency in the estimate is a risk allowance, not a spending account; any use requires a change order or management approval.

The estimate's work breakdown structure (WBS) becomes the cost code structure for tracking actuals; every estimate line must map to a cost code.

Unit costs from the estimate are the baseline for quantity-based progress and earned value; deviations trigger a variance analysis.

Escalation and market conditions in the estimate are time-sensitive; if procurement occurs later than assumed, the difference is a legitimate cost impact to track.

The project schedule must be resource-loaded: each activity assigned crew size, equipment, and material delivery dates before mobilization.

Critical path method (CPM) identifies zero-float activities; any delay to a critical activity delays substantial completion unless mitigated.

A site logistics plan defines laydown areas, access routes, temporary utilities, and material staging to prevent rehandling.

Pre-installation meetings (pre-task planning) confirm substrate readiness, material availability, and safety hazards before work starts.

The baseline schedule is the approved plan against which progress is measured; revisions require formal schedule updates and owner acceptance.

Look-ahead schedules (typically 3–6 weeks) convert the master schedule into weekly work assignments and material call-offs.

Permits, submittals, and long-lead items must be tracked on a procurement log with required-on-site dates derived from the schedule.

Mobilization costs are estimated separately and should be minimized by sequencing trades to avoid multiple mobilizations.

The contract documents hierarchy (e.g., agreement, general conditions, specifications, drawings) governs in a stated order; conflicts are resolved by that order.

A change order is a written instrument signed by the owner (and contractor) that modifies the contract scope, price, or time; verbal directives are not change orders until confirmed in writing.

Notice provisions require written notice within a specified number of days (often 7–14) for delays, changes, or claims; failure can waive entitlement.

Differing site conditions clauses typically distinguish Type I (unknown physical conditions) from Type II (unknown conditions of an unusual nature); both require prompt notice.

Liquidated damages are a pre-agreed per-day amount for late completion; they are not a penalty and must be a reasonable forecast of loss.

Pay-when-paid clauses make subcontractor payment contingent on owner payment to the contractor; pay-if-paid clauses shift the risk of owner nonpayment to the subcontractor.

Substantial completion triggers warranty start, release of retainage (in part), and transfer of risk of loss; it is certified by the architect/engineer.

Indemnity and insurance requirements allocate risk; additional insured status and waiver of subrogation must be verified before work begins.

Crew size is determined by dividing required daily output by individual productivity, then adjusting for site constraints and supervision ratio.

Resource leveling adjusts start/finish dates within float to smooth peaks; resource smoothing does not change the critical path.

Productivity is affected by learning curve, weather, overtime, and site congestion; overtime reduces efficiency and increases unit labor cost.

Assigning crews to multiple activities requires checking skill match and certification (e.g., welders, equipment operators) before dispatch.

The daily work plan (short-interval schedule) assigns specific crews, locations, and quantities; it is the basis for daily cost tracking.

Material and equipment deliveries must be scheduled to match crew needs; early delivery creates storage and damage risk, late delivery causes idle time.

Supervision span of control typically ranges from 1:8 to 1:12 depending on task complexity; exceeding it reduces safety and quality oversight.

Schedule updates must reflect actual start/finish and remaining duration; percent complete alone does not update the CPM network.

Daily reports record weather, manpower, equipment, deliveries, visitors, and delays; they are contemporaneous evidence for claims.

Site safety orientation and toolbox talks are required before task assignment; OSHA recordkeeping applies to work-related injuries and illnesses.

Housekeeping and waste management plans reduce slips, fire load, and rework; debris removal is a direct job cost.

Weather delays must be documented with date, time, and impact; only abnormal weather beyond the contract allowance supports a time extension.

Coordination drawings (clash detection) prevent rework; field conflicts are resolved by RFI before installation proceeds.

Temporary utilities, lighting, and access must be maintained; failure can cause standby costs that are tracked separately.

Quality control inspections (e.g., first-in-place, mock-ups) must be passed before covering work; re-inspection costs are back-charged to the responsible party.

Site security and material control prevent theft and loss; inventory records support insurance claims.

Material receiving requires count, condition inspection, and signed delivery tickets; discrepancies are noted on the ticket and reported immediately.

Storage requirements (temperature, humidity, stacking) are specified by manufacturers; noncompliance voids warranties.

Inventory control uses a material log with quantities received, installed, and on hand; reorder points prevent stockouts.

Waste and theft are tracked through reconciliation of purchased vs. installed quantities; variances indicate loss or inaccurate estimating.

Just-in-time delivery reduces storage costs but increases risk of delay; buffer stock is set based on lead time and criticality.

Hazardous materials require SDS sheets, labeled storage, and trained handling; incompatible materials are segregated.

Owner-furnished materials must be inspected upon receipt; damage or shortage is documented and reported to the owner for replacement.

Return of unused materials is governed by contract and supplier restocking fees; credit must be tracked against job cost.

A change order must state the scope change, price adjustment, and time adjustment; it becomes part of the contract when signed.

Field work directives (FWD) authorize work before a formal change order is priced; they must be confirmed in writing and tracked.

Change order pricing uses the contract's unit rates or a agreed markup on labor, material, and equipment; lack of agreement does not stop the work if directed.

Time impacts must be analyzed separately from cost; a change may entitle the contractor to a time extension even if no cost is allowed.

Change order log tracks number, description, status (pending, approved, rejected), and cumulative value; it is reconciled monthly.

Constructive changes arise from owner actions (e.g., defective specifications, acceleration) and may be claimed even without a formal directive.

The cost of preparing a change order proposal is generally not recoverable unless the contract allows it.

Unapproved change orders remain a cost risk; they must be accrued in the job cost forecast and pursued through the claims process.

Cost variance = budgeted cost – actual cost; a negative variance is an overrun and requires a corrective action plan.

Earned value metrics: CPI = EV / AC; SPI = EV / PV; CPI < 1 indicates cost inefficiency.

Estimate at completion (EAC) = AC + (BAC – EV) / CPI; it forecasts final cost based on current performance.

Job cost reports must be reconciled to the general ledger monthly; unbilled costs and accruals are included.

Committed cost (purchase orders and subcontracts) plus actual cost equals total cost to date; commitments not yet invoiced are accrued.

Percent complete for cost should be based on installed quantities or earned value, not on time elapsed.

Back charges and credits must be applied to the correct cost code; misapplication distorts variance analysis.

Cash flow forecasting uses the schedule and payment terms; retainage and pay-when-paid clauses affect timing.

A claim is a demand for compensation or time for events not covered by a change order; it requires notice, documentation, and causation.

Notice of claim must be given within the contract's time limit (often 7–21 days); late notice may bar the claim.

Documentation includes daily reports, correspondence, schedules, cost records, and photographs; contemporaneous records carry the most weight.

Delay claims require proof of delay to the critical path, owner responsibility, and resulting damages; concurrent delay can defeat or reduce the claim.

Acceleration claims arise when the owner requires faster performance than the contract schedule; costs include overtime, extra crews, and supervision.

Differing site conditions claims require showing the condition differed materially from the contract documents and was not foreseeable.

Claim presentation should separate entitlement (liability) from quantum (amount); both must be proven.

Negotiation and mediation are preferred before litigation; claims can be resolved through the contract's dispute resolution procedure (e.g., architect decision, arbitration).

Substantial completion is the date when the work is sufficiently complete for its intended use; it starts warranties and reduces retainage.

Punch list items must be completed within a specified time; failure can result in owner completing them and back-charging the contractor.

Final completion occurs when all punch list items are done and final payment is due; it releases remaining retainage.

Closeout documents include as-built drawings, O&M manuals, warranties, spare parts, and attic stock; they are a condition of final payment.

Final lien waivers from subcontractors and suppliers are required before final payment to protect the owner from liens.

Consent of surety may be required if the contract has a performance bond; it releases the surety from further liability.

Final payment application must reconcile all change orders, back charges, and retainage; any disputed amounts are identified.

Warranty period typically begins at substantial completion; the contractor must respond to warranty calls within a specified time.