Course Goals
The course is intended to give the student the knowledge and understanding of modern trends in Cost Engineering, •The perspective of both owner, and contractor in cost estimating.
The basic definition in cost estimation,
The methods used to estimate the cost, pricing & associated costs with the constructed facilities,
Project cost control,
labor productivity.
The direct jobsite and indirect jobsite expenses,
Finally, detailed estimation for contractors insurances and surety bound is explained.
Learning outcome
After completing this course, the student should be able to:
Understand what makes up cost—i.e. the basic resources (material, labor, etc.) that are needed to perform an activity or create an asset;
Understand the distinction between cost elements that are directly applied to an asset and those that are indirectly applied;
Use the understanding of cost elements to further understand how cost is measured, applied, and recorded to arrive at the total activity and/or asset cost;
Apply the knowledge gained to solve problems related to cost element source and definition.
Understand the classification of cost estimates,
Understand some of the common methodologies used in preparing cost estimates,
Relate estimate accuracy to the level of scope information and methodologies used in preparing cost estimates,
Understand how to apply risk analysis to determine contingency in an estimate,
Understand how to present and review estimates, and apply the knowledge gained to specific project estimating situations.
Text Books
Ostwald, P. F. , Construction cost analysis and estimation, 2001, Prentice Hall, Inc. , USA.
Other Books
Aron, A. et al., The engineering cost hand book, 1997, Marcel Decker, Inc.
Clark, Forrest D.; Lorenzoni, A. B.; Jimenez , Applied Cost Engineering , 1997, Marcel Dekker, Inc.
Humphreys, Kenneth King.; Wellman, Paul ,Basic Cost Engineering ,1996, Marcel Dekker, Inc. ;
Scott J. Amos, Skills & Knowledge of Cost Engineering, 2007, AACE International, venue, Suite 100, Morgantown, USA, Fifth Edition Revised
Michael D. Meye t, Estimatin g Building Costs , 2003, Marcel Dekker, Inc.
Course outline
Cost Engineering –Cost estimate definitions –Purpose of estimate –Estimate accuracy –Capital cost estimating –Estimating Process –Code of accounts
Estimate Methods –Opinion –Conference–Comparison –Unit –Unit Quantity –Factor –Power law & Sizing –
Probability –Range estimation –Simulation –Optimization
Labor productivity –Wages –Productivity measurements –Trend curve
Cost control –System –Elements of cost control –Control estimate –Cost monitoring –Cash flow –Earned value
General overheads, contingency and profits –Home office –Contingencies –Profit –Jobsite overhead –
Personal –Travel –Equipment –Site offices –Utilities –Water & electricity & sanitary –Testing
Surety bond, insurance & Taxes –Surety bonds –Insurance –Taxes
Cost Enginerring Definitions_L1
