The control structure for a project is the breakdown of the total work into manageable units or packages for the pur- poses of estimating and control of cost and schedule. The with the size and complexity of the proj- reporting requirements. The proper struc mntrol purposes contributes greatly to the effective implementation of project control procedures and the success of the project itself To maintain some kind of order in the estimate (and later in regregate costs into vari- ‘material vs. labor vs. subcontracts, direct costs vs. indirect costs vs, home office costs, and ° ', structural steel vs. piping vs. other construc- tion disciplines The control structure should be established as early as possi- ble in the project life cycle, because it will set the pattern for accumulation of project costs, and it should be used to form the basis for the structuring the estimate. The process of pro ducing the projec’s control structure, often known as workESTIMATING AACE INTERNATIONAL breakdown planning, is often an ongoing process requiring updates as the scope of the project is refined during the project life cycle. ‘The segregation of costs can be referred to as establishing the project “coding” structure, and more specifically as the “code of accounts.” Codes are the umbilical cords between cost accounting, and cost engineering. (estimating and cost control). Large projects will often use work breakdown sstructures (WBS) and resource breakdown structures (RBS) as components of the overall Prana [comin BORAT run ‘set Ge Diseipline| Resource coding structure. Smaller projects will often use a simpler code of accounts based simply on the disciplines or construction trades used on the project. ‘The WBS and RBS are basic project management tools that define the project along, activity levels that can be clearly identified, managed, and controlled. The WBS is the division of a project, for the purposes of management and control, into sub-projects according to its functional components. The WBS typically reflects the manner if which the work will be performed, and should reflect the way in which cost data will bbe summarized and reported. A WBS should be customized to be specific to a particular project, and is usually organized around the geographical and functional divisions of a project. It forms the high-level structure for an estimate, Figure 9.8 illustrates how a typical WBS might be organized, ‘The RBS is a breakdown of all labor and material resources required in the execution ofthe project. The RBS identifies func- tional lines of authority, and extends to the level at which work is actually assigned and controlled. The RBS typically remains consistent from project to project (at least for the same project types). Figure 9,9 illustrates a sample project RBS. Figure 9.9—Sample RBS. ‘The matrix of the WBS and RBS forms the full project control structure or project breakdown system (PBS). The intersec- tion points of the WBS and RBS structures is called a “cost center,” and corresponds to a defined unit of work and the resources involved in executing that work, Fach cost center ‘equates to a specific “cost code.” Figure 9.10 displays a sam- ple project breakdown structure. Corresponding with the PBS is a numbering system used to identify each cost center. The collection of codes used to des- ignate the intersection of WBS and RBS identifiers forms the projects “code of accounts.” Table 9.11 shows a sample cod- ing structure. For a specific unit of work, the labor to pour concrete in the hydrocracker unit, the cost code would be 01-02-C-2-003-1 (Onsite-Hydrocracker-Construction-Concrete-Pour-Labor). ‘The code of accounts formally refers to the full coding struc- ture (including project identifier, WBS, and RBS elements), but the term is often used in regards to the RBS elements only. The coding structure must reflect the manner in which the project will be executed and the way in which costs can reasonably be expected to be collected. The coding Areas structure should also reflect the way in which your par- ticular organization executes projects. Of importance is that the estimate, which predicts project execution, should be organized and structured to match the project code of accounts. ‘The coding structure adopted by an organization should bbe documented in detail. Typically a code book is pub- lished and made available to all project personnel. The code book should contain a code by code listing that doc- ‘uments a description of not only what should be includ- ed under a specific code, but also what is excluded (for those items that could be easily misunderstood) Figure 9.8—Sample WBS 924AACE INTERNATIONAL ESTIMATING WBS Ni Cost Center Figure 9.10—Sample Project Breakdown Structure Table 9.11—Sample Project Coding Structure AREA unr FUNCTION DISCIPLINE DETAIL RESOURCE O1-Onstes —01-Crude Unt A= ProjactAdminatraton 1 3 001 - Formwork 1 = Labor 02-Hyerocackor 8 EnginerngiDasign 2 5 002- Raver 2-Mataral (08-Vacuum Unt C= Consrution 3-Siuctusl test 003 Pour 2 Subcontract Ping 004 - Emveds 02 Ofte tities 5 105 - Fras 03-Pipeway 925