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Does Resource Leveling affect costs?

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Hello,
I was given a project in school regarding resource leveling.  I noticed after leveling the resources the schedule got longer, but it did not affect the total budget cost.
can someone explain to me the principle of why the cost did not get affected.
thank you in advance
asked 9 years ago by anonymous

1 Answer

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Generally, resource leveling does not affect costs, because its aim is to have zero over-allocation of resources on the project. So, if a resource is over-allocated for a certain period, it distributes the over-allocation of the resource over a longer period which will lengthen the schedule but does not affect the project cost because the number of working hours does not change.

Note that in some cases, the resource leveling does affect costs, here's how:

- If the resources are paid over-time (the over-time will no longer be paid when the resource are leveled). This means that the costs will be reduced in this case.
- If the project incurs a penalty if it's finished late. In this case, the costs will increase.
answered 9 years ago by MaplePM (46,940 points)

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