Construction Input (Event)

Hello Anon1, Sorry that it took us a while to get back to you. If you are using an Industry Change Event you will want the Industry Sales value to reflect the total cost of the construction project, both labor and materials. The place you would want to separate would be if you were using an Analysis-by-Parts methodology because you would be modeling the labor component separately from the materials. In addition, please note that some soft costs such as architectural and legal services are included in most of the construction Sectors, but the value of FFE should not be included in the Industry Sales value as these items would need to be modeled separately. Please let us know if you need any additional assistance with choosing a construction Sector (we have a [url=https://www.google.com/url?q=http://implan.com/index.php%3Foption%3Dcom_docman%26task%3Ddoc_download%26gid%3D115%26Itemid%3D138&sa=U&ei=CtAMU8nYCKersQSf9oCgBw&ved=0CAUQFjAA&client=internal-uds-cse&usg=AFQjCNGL1x4tO0hKNWBA2pFTsdz8gttB8w]spreadsheet with Census descriptions[/url], because we create our construction Sectors from Census rather than NAICS)or with anything else. Thanks! IMPLAN Support Team

Thank you for your response. Quick follow-up...you mention some soft costs such as architectural and legal services are included in most construction sectors. When you use the term "included" do you mean these expenditures are calculated within IMPLAN as an indirect impact? I was planning to omit the "professional fees" expenditure line item provided by my client b/c I was under the impression these are already accounted for through the multipliers from the construction sector (in my case, construction sector 36). Thanks again for your help...

Hi Anon1. The decision to omit these soft costs from your analysis is up to you. However, if these costs are significant for your project and mostly went to local business, then there is local economic activity associated with these fees. You may want to include them in your analysis and run as separate Industry Change Activities in the appropriate sectors. The fact that Sector 36 may include some small amount of these soft costs in your spending pattern should not create a major issue of double counting, which I believe you might be thinking about. Let us know if you have any further questions.