Construction events
I am seeking to analyze the effects of a large-scale construction project. After inputing the first set of data, I realized that Implan calculates architectural, engineering and related industry effects and categorizes those as indirect effects.
Does this mean I should not include those projected costs in the analysis? In other words, should I only include hard costs (labor and material) and allow for Implan to calculate architectural and engineering (generally referred to as soft costs) on its own?
Please advise.
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The production functions for new construction include all materials that are integral to the structure (the walls, HVAC, windows, elevators, etc.). So you would apply the entire value of the completed structure net of land cost, major real estate/legal fees, and preparation (architecture and engineering) to the construction sector. However, most companies make use of some legal services, and in the case of the construction sectors these services may not relate specifically to the construction project being analyzed - so if these costs were significant for this project, you may want to pull them out from the total construction value and run them as separate Industry Change Activities in the appropriate sectors. You may find this forum discussion helpful: http://implan.com/v4/index.php?option=com_kunena&func=view&catid=84&id=9307&Itemid=35#9308
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