Field indirects

Tables 10.1, 10.2, and 10.3 illustrate a set of factors used by one chemical firm for fiuids-handling and solids-handling plants. The factors and ratios used to break down the total cost into the various direct and indirect accounts are based on a 100% subcontract construction where most of the labor-related field indirects are collected with the subcontract labor costs and the "field indirects" account refers to only the construction management and the site general conditions costs. Field indirects are discussed in more detail in Section 19.9.

Breakdown of indirects by engineering, field indirects, other costs, escalation, and contingency. 

The execution approach and contracting strategy will affect engineering costs, labor productivity, and field indirects. Since the cost impact could be substantial, the estimate package must include at least a simple description of the execution plan. 

The very basic cost breakdown is by directs and indirects. The directs include all materials that physically go into the project and the cost of the labor required to install it. The indirects include engineering, field indirects, spare parts, taxes, startup, etc. 

Estimating Field Indirects as a factor of labor costs is quite appropriate providing the factor recognizes the difference between direct labor costs and subcontract labor costs, which already include a large fraction of indirects as well as the impact of fast track schedules on field indirects. 

Labor Costs Field Indirects Labor Productivity Adjustments... 

Field Indirects - Since all costs and factors are based on subcontractor rates, use 20% of labor and subcontract columns. 

Field Indirects - If the Owner acts as construction manager, the Field Indirects should not exceed 10% of the total labor and subcontract columns. If construction management is done by a contractor, follow guidelines in Section 19.9. 

If construction is to be executed on a direct-hire basis, the labor costs should include only the basic labor rate. All other labor-related costs (PAC s, fringe benefits, supervision, rental equipment, etc.) should be included with the field indirects. 

When construction is to be subcontracted, some accounts (civil, insulation, and paint) are usually estimated on a total cost basis, combining both materials and labor. Other accounts (piping, electrical, instrumentation, equipment erection) are estimated and shown separately as material and labor. In that case, the labor should be loaded with the subcontractor s field indirects plus overhead and profit. The field indirects would reflect only the cost of construction management. 

Whether some of them are folded into the labor costs or not, the field indirects include cost items such as ... 

The Field Indirects Checklist and Field Indirects Criteria in Appendix K are intended mainly as control tools to check contractors detailed estimates and planning as well as to monitor their performance in reimbursable contracts. They can also be used as an estimating tool to develop in-house detailed or semi-detailed estimates. However, for in-house and preliminary estimates, sufficient accuracy can be achieved by ratioing the field indirects to direct labor and subcontracts. 

In lump sum contracts and subcontracts, even if all field indirects should be included, the Project Manager must ascertain that they really are and that adequate supervision and support are provided to insure proper execution. Appendix I is also a good tool for that purpose. 

When construction is totally subcontracted the field indirects are a mixed bag some are included in the subcontracts while others must be provided by the construction manager or the general contractor. The field indirects likely to be provided by the construction manager or the general contractor are identified in the Field Indirects Checklist. 

The field indirects account for a detailed estimate, specifically in a large project, should be broken down into all its major components to insure that all costs are considered. In semi-detailed and preliminary estimates a breakdown is not required. Sufficient accuracy can be achieved by using the following factors ... 

The cost impact of the productivity should be shown in the estimates as a line item with the field indirects account. This approach will permit a more consistent analysis of the materials-to-labor ratios and provide better project control by specifically identifying a potentially important source of abnormal project costs. 

The total cost of the field indirects is 100-130% of direct labor costs (direct hire) plus 15-20% of subcontracts and inversely proportional to project size. In the following breakdown, an asterisk denotes services usually supplied by Construction Manager or General Contractor. 

According to guidelines in Section 19.9 the Field Indirects can be prorated to labor cost as follows ... 

Because of the uncertainty about the alignment mechanisms, it is not possible to relate the observed polarization fraction to the strength of the magnetic field. Indirect estimates can be made, however, by measuring the dispersion of the polarization vectors which is related to the magnetic field strength and the gas density and turbulent velocity [13,14], but the field strength can be overestimated unless the polarization stmcture is resolved spatially. 

For pH-responsive electrochemical systems, on the other hand, the electrical field indirectly influences the polymer conformation to induce a reversible volume transition. The electricity is used to electrolyze water, generating hydrogen ions at the anode and hydroxyl ions at the cathode. This produces a pH gradient across the solution, which can be used to influence the conformation of pH-responsive polymers. Strategic placement of the polymer in the solution can cause expansion, contraction, or even bending (when placed directly between the electrodes) of a polymer actuator. Switching the direction of the current creates the opposite effect. This second method of actuation... 

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