Cost Engineering
The term Cost Engineering identifies a unique set of skills that can be applied to a wide range of projects and operations in a number of industries. The Association for the Advancement of Cost Engineering [AACE International] states that Cost Engineering is ". the application of scientific and engineering principles and techniques to problems of cost estimation; cost control; business planning and management science; profitability analysis; and project management, planning and scheduling..."
What are some of the more common Cost Engineering functions?
- Cost Estimating - The creation of cost estimates for new construction, renovation, and environmental remediation projects. In addition, the development of cost estimates for maintenance, process operations and manufacturing.
- Scheduling - The set up, monitoring and analysis of project schedules for various endeavors using critical path or network analysis systems or other methods.
- Project Controls - The continuous process of monitoring a project for adherence to cost and time objectives, including regular status reports, earned value calculations, variance reports, trending & forecasting and risk analysis.
- Project Planning - The process of setting goals, gathering of data, determining the feasible alternatives, selecting the best alternative, communicating the plan, implementing the plan, adjusting the plan to new circumstances, and reviewing the plan against the original objectives.
- Economic Analysis - The application of classic time-value-of-money methodologies to project finance and alternative selection.
- Risk Analysis - Determining quantitatively whether a project or operation will be completed at or below its budgeted cost and within its allotted time.
- Performance and Productivity Management - The understanding of labor and machine productivity, and their limitations, as they apply to the meeting of cost and schedule objectives.
- Contracts Management - The understanding of the legal and functional aspects of the various contract types, their selection and administration.
- Value Engineering/Value Analysis - A formal approach to determining the most cost efficient way to meet project goals without loss of any essential functionality.
MAR Management Solutions' staff of consultants can assist you with any of your cost engineering needs.