Cost Engineering And Estimation

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Cost Engineering And Estimation
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Cost Engineering And Estimation

• Cost Engineering is a type of engineering
• practice which is mainly related to project
• cost management activities. It helps in proper
• understanding of how a project is to be
• constructed, what are the risk issue, how to
• overcome them and accurate cost an
• schedule estimates. Cost engineering involves
• the activities such as cost and control,
• estimation, cost forecasting, investment
• appraisal and risk analysis.

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Cost engineers

• An engineer whose decision, judgment,
• skilled and experience are utilized in the
• application of scientific principles,
• techniques and problems of estimation is
• called a Cost engineer. In general, he
• works for cost control, business planning
• and management science, profitability
• analysis, project management and planning
• and scheduling.

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 Need Of Cost Engineering

•  Cost engineering helps companies with
• decision-making, cost management and
• budgeting with respect to product
• development. It is an estimation of your
• construction business and industry. It helps
• to plan your budget, monitor investment of
• projects, and search for the optimum
• balance between cost, quality and time
• requirement of your project.

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Cost-Estimating Methods

• "Rule Of Thumb" Approach
• Detailed "Grass-Root" Or "Bottom-Up" Approach
• Analogy
• Competitive Supplier Proposals
• Parametric Approach

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Risk Analysis And Management

• Cost Risk analysis is intended to forecast
• the amount of uncertainties involved in the
• cost estimate of future projects. If the risk
• is identified and qualified than efforts can be
• made to successfully deal with the impact
• of them occurring. The aim of risk
• management is to reduce the negative
• impact of risk in a project and reduce
• uncertainties.

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Conclusion

• Cost is a very important factor of success
• within the industry and cost estimating and
• cost management is necessary to the
• survival of leading companies. Several big
• companies use this technique to get the
• growth in todays competitive scenario. It
• helps to deliver the project, in giving time
• and budget.

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• Thank You
• Benchmark Estimating
• http//www.benchmarkestimating.co.uk