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  • Writer's pictureBrian Roach, MATRIX PMO

Project Overhead Costs – The Importance of Scalability

Project Scope and estimate development create the boundaries that define a project. The resulting budget is arguably the most significant constraint for any project. Unfortunately, many project budgets often fall short when including some of the most important resources that significantly influence the outcome of a project.

Indirect costs are defined by the Project Management Institute as “….those costs that cannot be directly traced to a specific project and therefore will be accumulated and allocated equitably over multiple projects by some approved and documented accounting procedure." The costs associated with providing project management and project controls falls within the scope of indirect costs. As a result, there is typically less detail applied to the resources required to appropriately manage a project and with this, project budgets fall short of accounting for the cost of these resources.

MATRIX PMO recognizes the importance of having a solid and well-developed project scope statement which includes a detailed analysis and delineation of the resources required to properly manage a project. Based upon scope, complexity, duration and risk the roles of Project Manager, Schedule Analyst, Cost Analyst, Field Engineer, Field Oversight, Safety Professional, Job Planner, Procurement Specialist, Contract Administrator are considered. When any of these roles are required to support a project, an analysis is performed to determine magnitude and the most cost effective and efficient way to provide the necessary support.

MATRIX PMO engages with a clients’ team to leverage every resource to the fullest extent possible while ensuring that indirect activities are performed in a timely and quality manner supporting project success.

MATRIX approaches the effort strategically to accomplish this:

  1. MATRIX PMO works with client staff to ensure a seamless collaboration occurs between project teams and client resources supporting the project(s).

  2. MATRIX PMO works with stakeholders to apply the MATRIX PMO resources across multiple projects to allocate the indirect costs proportionally, saving the client money.

  3. Matrix assigns resources based upon the scope, and complexity of the project to ensure that the right level of talent is deployed at the right cost.

MATRIX is your single source for project management, project controls and project oversight services. MATRIX provides the industry’s finest project management staff with Project Management Institute (PMI) Project Management Professional (PMP) certified project managers. At MATRIX, we believe in the power of a cohesive unit emphasizing teamwork and collaboration. Our goal is to provide the “complete package” by developing a team of professionals, hand-selected to provide the right skills and competencies to match the complexity of your project. While others provide just personnel, our Project Management Office (PMO) delivers results. With over 15 years of experience, we are confident in our ability to improve your project predictability, management, and performance.


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