COST ENGINEERING Flashcards
It is the application of scientific principles and techniques to problems of estimation; cost control; business planning and management science;
profitability analysis; project management; and planning and scheduling.
COST ENGINEERING
The primary aim of cost engineering is to achieve the ideal balance between the price, quality and time obligations of a project.
COST ENGINEERING
What is the function of a cost engineer in a construction project?
Estimates how much the total cost of any project will be
What is the function of a cost engineer in a construction project?
Forecasts costs based on present trends and remaining
work
What is the function of a cost
engineer in a construction project?
Makes timely evaluations of cost and scheduling status
What is the function of a cost
engineer in a construction project?
Keeps track of costs on a daily basis
what are the important competencies for a cost engineer
- general capabilities
- estimating skills and knowledge
- cost control skills and knowledge
What are the general capabilities?
- Communication
- Planning, organizing, delegating
- Decision making
- Teamwork and relationships
- Quality, follow procedures, support change, accuracy
- Leadership, role model, mentoring, training
Estimating skills and knowledge
- Reading of and quantification from engineering document
- Defining of scope
- Usage of breakdown structures
- Obtaining / using cost data and vendor quotes
- Data analysis & benchmarking
- Labor productivity analysis
- Equipment factored and capacity factored estimating
cost control skills and knowledge
- Cost control, budgets and forecasts
- Planning / scheduling
- Progress measurement, earned value
- Change management
they organize the work
Project Manager
They coordinate resources in the right mixture of cost and time
Project Manager
They Solve problems that could jeopardize the success of the project
Project Manager
He/She Advises the Project Manager in:
* Forecasting
* Indicating Status
* Pointing out unfavorable
trends
* Suggesting corrective action
Cost Engineer
COST ENGINEERING AS A
MANAGEMENT FUNCTION
- profit maximizing
- project direction
- project coordination
A ________ cost engineer
has the experience to
anticipate problems and
challenges before they
result in _____________
and_________
-skilled
-cost overruns
-scheduling slow-
downs
PROJECT
LIFE CYCLE
it include in market research.
•Research and Development
● The best possible location for the project
● Factors to Consider
● Cost engineering principles can be used in calculating capital
costs, production costs, and schedules
What are the factors to be consider in a market search?
○ Source of Raw Materials
○ The Market for the Finished Project
○ Cost of Utilities and Distribution
○ Availability of Manpower
○ The Environment
○ Competition
it include more details and greater number of factors
must be known and calculated
PRELIMINARY ESTIMATE
A ________________________________________________________ should be the coordinator for this phase of work.
senior cost engineer, a chief estimator, or a project control
manager
Preliminary Estimate by owner should include
○ Cost of Equipment
○ Cost of Materials
○ Cost of Construction Labor
○ Direct and Indirect Cost
○ Contingency
invitation to bid is given to or issued to a minimum of three
firms
PRELIMINARY ESTIMATE BY FIRM
bid price is straightforward
Lump sum
