Cost Breakdown Structures

 

The Cost Breakdown Structure (CBS) is the main form where you will do your cost estimating.

• It is the hierarchy of work activities that make up the estimate

• Each row in the CBS represents a work activity or organizing category and is called a cost item

To access the Cost Breakdown Structure, from the InEight Estimate landing page select the Estimate tab, then under the Breakdown Structure section select Cost Breakdown Structure (CBS).

Overview – Cost Breakdown Structure (CBS) Register

Name		Description
1	Actions Menu	Shortcut icons allow you to edit cost items and import items from other sources such as Excel.
2A	CBS Tree Filter Mode (drop-down)	The CBS Tree filter shows the CBS hierarchy and is used to quickly help filter cost items, instead of scrolling the CBS to locate certain cost items. The CBS Tree Filter lets you choose between a filter mode or a new navigation mode.
2B	CBS Tree Filter or Navigation Mode	Both Filter and Navigation modes on the left side of the page provides you with the visibility of your entire CBS structure, as well as giving you the option to navigate and filter throughout the CBS estimate. The Cost Item record can also be tiled next to the tree to make navigating and filtering possible, while viewing all the cost item record details at the same time.
3	Left CBS register	This side of the register contains all of the estimate activities (cost items) that you create or import, organized into a parent-child hierarchy.
4	Right CBS register	This side of the register contains numerous columns for cost detail, production values, and user-defined tags and fields.

Cost Item Terminology

The CBS contains both direct and indirect costs.

• Direct Cost Items contain costs that pertain directly to the deliverables of the project. Therefore, direct cost items are typically assigned to pay items

• Indirect Cost Items contain overhead costs that are not directly associated with particular deliverable items but contribute to the total cost of the project (e.g., supervision, site office, safety supplies, bid securities). Occasionally an indirect cost item may be assigned to a pay item (e.g., Mobilization costs that are indirect but assigned to a Mobilization pay item).

InEight Estimate uses various terms to describe the parent-child relationships of the multiple levels in the CBS:

Terms	Description
Superior	A Superior cost item has subordinate (child) items below it that determine hours and costs.
Subordinate	A Subordinate cost item is a child to a Superior cost item.
Terminal	A Terminal cost item has no subordinate items. Resources, costs, and production can only be added at the terminal cost item level.

A Terminal cost item may or may not be a subordinate.

The levels of the CBS are referred to as Level 1, Level 2, etc., as you drill down in the structure. As costs are defined on the terminal items, the sum of the terminal cost items roll up to the superior cost items.

A superior cost item can have no costs of its own; its costs are strictly the rolled-up total from the subordinate cost items below it.

You can use superior cost items as buckets for organizing your work.

As hours and costs are defined on the terminal items, the sum of the terminal cost items roll up to the superior cost items.

Work Breakdown Structures

The Work Breakdown Structure (WBS) allows you to reorganize the estimate using different formats such as Construction Specifications Institute (CSI) MasterFormat or UniFormat. WBS formats are used when you need multiple variations and summary reports of an estimate. The WBS retains the same relationships between items as in the original estimate while only changing the view and items arrangement in the WBS hierarchy.

To view the Work Breakdown Structure View Register, in the Ribbon select the tab Estimate > Work Breakdown Structures.

Overview – Work Breakdown Structure (WBS) View Register

Name		Description
1	WBS Tree	Use the WBS Tree to filter to a particular WBS item.
2	WBS Grid	When a specific WBS item is selected in the WBS Tree, all subordinate WBS items display in the WBS grid.
3	Cost Items	The Cost Items associated with the WBS subordinate in the WBS Grid displays in this data block.

Locked vs. Unlocked Approach

There are two basic approaches to structuring your cost items and pay items. You can choose to work in a “locked approach” or an “unlocked approach.”

In a locked approach, level one cost items are automatically created and assigned to pay items. This locked approach works well when pay items adequately represent the work plan. Subordinate cost items inherit the pay item assignment of superior cost items.

If the Lock Cost Items to Pay Item rule is checked in Job Properties, InEight Estimate will automatically create level 1 cost items in the CBS Register for each of your pay items.

The unlocked approach may work better when the pay items do not adequately represent the work plan. You can then assign your cost items to your pay items in any arrangement. Companies looking to standardize the way they estimate and use templates will want to use this approach as it allows you to dictate the cost breakdown structure. Owners will also typically use the unlocked approach since pay items are not necessary to their estimating process.

The option of working in a locked approach vs. an unlocked approach is available in the Job Properties Form, on the Cost Basis tab under the Rules section. By selecting the checkbox for Lock Cost items to Pay Item, you are choosing to work in a locked approach.

Take-Off Quantities

In the Cost Breakdown Structure, estimated quantities are entered into the Forecast (T/O) Quantity field with a corresponding unit of measure. The quantity will default to 1 each when you create a new cost item and should be updated to reflect the work being estimated.

Forecast (T/O) Quantities are only used for your cost items in the CBS Register.
Pay Quantities are used for final pricing in the PBS and Pay Item & Proposal forms.

Because the training project is a “locked” job, you already have level 1 cost items, and their default take-off quantities are populated from their corresponding pay item quantities.

The following step by step walks you through adjusting the default take-off quantities on a couple of your cost items.

Step by Step — Adjust take-off quantities