Special cost rates in MS Project

Cost management is a central part of any project, and specialcost ratesgive you the flexibility to set individual compensations for employees. These cost rates can depend on various factors, such as wage increases, specific working hours, or special project requirements. In this guide, you will learn step by step how to set up and manage special cost rates in MSProject.

Key Insights

• Special cost rates can be used for individual wage increases or decreases for an employee.
• You can time-limit specific cost rates or set them for specific days.
• MS Project allows the management of multiple cost rate tables to meet different requirements.

Step-by-Step Guide

To create special cost rates in MS Project, proceed as follows:

1. First, open the Gantt chart. In this view, you can see all relevant tasks of your project. Here, click on the task you want to edit. To view the details of this task, double click on it. This step allows you to display information about the specific employee, in this case, Müller.

1. In the following window, you will see the employee's costs, for example, €640. Let's assume the employee receives a wage increase on a specific day. To do this, go back to the Gantt chart and switch to the resource view. Look for the resource you want to adjust, in this case, Müller. Double-click on his name to open his resource information.

1. In this new window, go to the "Costs" tab. Here you can now enter an effective date next to the standard and overtime rate. Assume the wage increase takes effect on November 26. Enter the new hourly rate of €45 and an overtime rate of €50.50. It is important to note that the overtime rate will not be automatically adjusted when you change the standard rate. You must adjust it manually if necessary.

1. Additionally, you can switch between different cost rate tables. Suppose you have a table A where the standard costs are stored, and a table B where the employees earn less. This could apply to special cases or days. For example, if you want to treat Mondays specially, you can set cost rates in table B with lower hourly rates.

1. When the adjustments are completed, save your changes by clicking "OK". Then return to the Gantt chart to check if the wage increase for Müller has been successfully recorded. You should see that the higher costs for the affected days are displayed correctly.

1. If you go to the resource assignment, you will now also see the new cost rate. You can now also check the details of the projects Müller is working on. By double-clicking on a project he is involved in, you will find information about working hours and cost rates. Here you can adjust the cost rate for this specific project as needed.

1. In addition to the wage increase, you can also specify that this change only applies for a certain period. For example, if you want the increase to expire on November 30 and the employee to return to the original amount of €40, you can also set this.

1. Additionally, you can set special cost rates for various purposes. Suppose you want to use standardized rates for weekend shifts, then you can simply assign a special cost class to employees for these days without having to create a separate weekend rule.

Summary – Guide to Creating Special Cost Rates in MS Project

In this guide, you have learned how to create special cost rates for wage increases or various working hours in MS Project. Adjusting the cost rates allows you to significantly optimize the cost control of your project.