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Chapter 7. Taming That Monster Budget > Anticipating Cost Hikes Realistically

Anticipating Cost Hikes Realistically

Suppose that the annual pay raise cycle occurs during your project. That means that the cost of employees will change over the life of your project. So you need to assess the cost of employees working on your project using one set of standard and overtime rates before a particular date, and another set after that date. Or suppose that you need to account for an increase in the price of a Material resource at a particular point in time. Or you might use different grades of paper—at differing costs—for various reports you prepare. To set up these different costs, you use cost rate tables, available in the Resource Information dialog box.

To set up cost rate tables, display the resource Sheet and double-click the resource in question. Then click the Costs tab. The five tabs that appear, A through E, represent different cost rate tables you can apply; by default, project uses the values displayed on Cost Rate Table A for any particular resource. On any tab, you can create different rates that become effective on different dates. For example, if you need to account for those pay raises, you can set up different rates on different lines of the A tab, setting different effective rates for each date (see Figure 7-1). If you need to account for a price increase for a particular Material resource, you’d use the same technique.


  

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