Resource Allocation and Resource Leveling - Construction Project Scheduling and Control - page 124

INTRODUCTION
The term resource is used in many fields and contexts. Most companies have human
resources departments, which match the need for employees with the appropriate sup-
ply by hiring and laying off workers. The term financial resources is commonly used to
indicate available monetary sources. In project management, we use the term resources
to indicate three main categories: labor (human), equipment, and materials. Ulti-
mately, everything is translated into a monetary quantity that may be—for the account-
ing department—a part of the financial resources.
THE THREE CATEGORIES OF RESOURCES
All expenses, in any construction project, can be classified under one of the three
categories just mentioned: labor, equipment, and materials.
Labor
Labor can be further classified into the following two subcategories:
1. Salaried staff : These individuals include the project manager, superintendent,
project engineer, secretary, and any other person who is tied to the corporate
office or a project but is not tied to one particular activity or work package
in a project. Salaried persons usually get paid a fixed salary for the duration
of the project or their assignment. Their salaries usually count as part of the
company's indirect expenses (overhead), not as labor.
2. Hourly workers : These individuals are hired to perform a specific task or activity.
Examples include carpenters, masons, ironworkers, electricians, foremen, and
so forth. They are usually paid for actual hours worked.
Equipment and Materials
Equipment and materials also can be further classified into two subcategories:
1. Construction equipment and materials : This type of equipment and materials
is used for the construction process but is not permanently installed in
the project. Examples of construction equipment 1 are bulldozers, backhoes,
scrapers, cranes, power generators (if not permanently installed), forklifts,
mechanical trowels, heaters, and blowers. Inexpensive personal tools are
usually treated differently (either as a lump sum for all tools or as the laborer's
personal property). Examples of construction materials are formwork materials
and scaffolding.
2. Installed equipment and materials : This type of equipment and materials stays
permanently in the project after completion. Examples of installed equipment
1 In the United Kingdom, this type of equipment is called plant .