Our reply to this mail was as follows:
Dear Engineer Munawar,
I hope you’re having a great day.
Regarding your E-mail asking for a proper method or a certain rule to distribute activity cost over its sub-activities (First, second, and third fixes), I believe that the first thing you have to keep in mind is that activities are different, we can’t divide all activities to fixes in fixed ways.
Some HVAC activities are divided into 2 or three fixes, other finishing activities like paint are usually divided into 3 or 4 fixes. Also, not all fixes are equal in cost or level of effort needed to finish them.
So, let’s agree that as there is no fixed way to divide activities, there is also no fixed way or formula to divide the cost of the activities on its sub-activities.
The best solution for this problem is to discuss certain activities with your site engineers team to agree on some weight or distribution to the cost, also you may discuss the matter with your project manager. By taking those actions, you guarantee that all involved parties are on the same page.
Our best practice and recommendations for this situation -if you can’t reach the site team or the project manager- is to divide the cost by the percentage of the manhours allocated for each sub-activity.
Activity A is Divided to some activities (Activity A-1 – Activity A-2 – Activity A-3)
Your problem is that you know the cost of activity A but don’t know how to divide the cost over the 3 sub-activities.
– Start with calculating how many man hours needed for each activity.
Activity A = 200 manhr
– So, we will distribute the cost over the sub activities as follows:
A-1 cost = (60/200)* Activity A-Cost
A-2 cost = (100/200)* Activity A-Cost
A-3 cost = (40/200)* Activity A-Cost
This is the easiest way to reach your goal and divide the cost in a proper way. I hope this answers your query, if you still have any question feel free to reply to this topic.