2.7.1 General

Because Project Managers, Project Engineers, Project Executives, Estimators, and Administrative Assistants are salaried personnel, it is not necessary to report their labor hours for payroll. The purpose of properly reporting administrative time is to provide management with accurate information regarding:

• Where administrative overhead is spent
• Where the largest percentage of overhead is spent in terms of the project’s life cycle
• What percentage of administrative overhead is spent in the field and in the central office
• What charges to apply to changes, delays, interruptions, accelerations, and reschedules
• What are the actual costs of the project’s general conditions components

What is necessary is for the Company to be able to determine on a current basis the divisions of time spent by salaried personnel on the various planned and other activities. Reasons for this include: !https://manula.r.sizr.io/large/user/3875/img/00019.jpeg!**2.6.4 Sample Field Payroll Report Form—Completed Example****
1. For planning reasons, a knowledge of where time is really being spent on routine operations of the individuals is helpful for determining future time/cost requirements for particular assignments.
2. Of particular interest from that point will be the time soaked up by changes, problems, or on other activities that are otherwise not the direct responsibility of company individuals to perform directly (such as managing a subcontractor’s subcontractor). In all these cases, it is crucial to maintain accurate records of all costs and efforts related to these changed conditions if the Company is to retain any ability to recoup these extra costs and eventually remain whole. 2.6.5 Sample Field Payroll Report Form—Blank Form

3. Even in the cases of central office personnel such as project executives, estimators, accountants, and so on who divide their time simply by project and not by specific activity within each project, the information will be extremely useful if it becomes necessary to display the disproportionate amounts of time being spent by these individuals in problem situations. To treat these individuals’ time reporting in a more simplified (but more generalized) manner, their records can be maintained on a simplified project-by-project basis and consolidated monthly.