Introduction to Cost Engineering

What is Cost Engineering?

Cost engineering is the engineering practice devoted to the management of project cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis.

This training sets out the process to be used during the undertaking of cost engineering and cost forecasting activities and should apply to all projects.
This document is specifically applicable to all activities that support:

  • The preparation of estimate at completion forecasts (EAC)
  • The preparation of estimate to complete forecasts (ETC)
  • Responsibilities of the Cost Engineer (CE)
All cost engineering and cost forecasting activities shall adhere to the requirements detailed in this process and should be prepared and documented in a similar fashion.
This course also goes over the responsibilities of a cost engineer and the project team and reporting responsibilities.

Who is cost engineering aimed at?

  • Individuals new to the project controls environment and wishing to understand the concepts around cost engineering and how this is currently utilised in their company.
  • Individuals who currently hold a PC role within their organisation but wish to understand cost engineering further.
  • Project managers using cost engineering tools and techniques in their organisation.
  • Managers and PMO members that are considering implementing best practice cost engineering tools and techniques within their organisation.
  • Individuals wishing to become a cost engineer

Learning Objectives

  • Understand the underlying principles of cost engineering and why is it done.
  • Gain an understanding of basic Cost Engineering Terminology.
  • Understand the construction of a Cost Estimate using differing industry best practise.
  • Understand how to produce a valid forward forecast for Labour/Non-Labour.
  • Understand how to generate outturn forecasts and reports to aid and support PM’s.

Course Modules

  • Cost engineering & Total Cost Management (TCM).
  • Cost & Schedule Management.
  • Supporting Skills and Knowledge.
  • Process and Functional Skills and Knowledge.
  • The Role of Cost Engineer’s During the Project Lifecycle.
  • Cost Engineer’s role in Contractor Selection.
  • The Role of the Cost Engineer’s During Detail Engineering.
  • Role of the Cost Engineer’s During Construction.
  • Basic Cost Engineering Terminology.
  • The Cost Engineers as Part of Project Management.