In order to use PLCs effectively on your project, you should identify the need for labor categories on your project before any labor is charged to the project.

You need to use PLCs on your project if you are using an hours-based (loaded labor) revenue or billing formula or if you use hours-based multiplier formulas for revenue or billing. Hours-based formulas are those that use hours incurred times a labor rate to derive revenue or produce a bill. Often the type of bill that is required by the client is identified in the contract.

Once you have determined that PLCs are needed for your project you must evaluate the following options:

• Project Level: At which level of the project should I set up my PLC rate tables?
• Rate Method: Does my project require project-specific job titles and billing rates, or can I use the company-wide labor rates?
• Labor Rates and Rate Types: What labor rates do I need for my project, and are any special calculations required?
• Manage Rate Sequence Orders screen (or the Def Rate Seq subtask of the Manage Project User Flow): In which tables do the labor rates exist for my project?