Cost Engineers: Who are they and what do they do?

Cost Engineers: Who are they and what do they do?

Cost Engineers: Who are they and what do they do?

So just what is cost engineeringWhat is CCC/CCE Certificate?. Read more ... » and who are the people we call cost engineersWhat is CCC/CCE Certificate?. Read more ... »? The first place to seek an answer is the AACE InternationalWhat is CCC/CCE Certificate?. Read more ... » Constitution and Bylaws (Association of CostAdd cost to all primavera activities from excel with Vlookup. Read more ... » EngineersAre your site officials qualified?. Read more ... »), which states the following:

Section 2. The Association is dedicated to the tenets of furthering the concepts of Total Cost


[cmamad id="1174" align="left" mobid="ad-off"]


Cost Engineers

Cost Engineers

Management and Cost Engineering

Total Cost ManagementCost Management for Engineers-Cost Terms. Read more ... » or Total Cost EngineeringAre your site officials qualified?. Read more ... » is the effective application of professional and technical expertise to planPMP Road Map template. Read more ... » and control resourcesHow to make S-curve without cost or resources in Primavera P6.. Read more ... », costsCost and Costing. Read more ... », profitability and riskProject Risk Terms and Definitions. Read more ... ». Simply stated, it is a systematic approach to man- aging cost throughout the life cycle of any enterprise, programHow to copy a project from one EPS to other. Read more ... », facility, projectHow to copy a project from one EPS to other.. Read more ... », product or service. This is accomplished through the application of cost engineering and cost management60+ Project Management PMP Templates. Read more ... » principles, proven methodologies and the latest technology in support of the management process.

Section 3. Total Cost Management is that area of engineering practice where engineering judgment and experience are utilized in the application of scientific principles and techniques to problems of business and pro- gram planningPlanning and scheduling procedures. Read more ... »; cost estimatingCost Management for Engineers-Cost Terms. Read more ... »; economic and financial analysis; cost engineering; program and project managementCreating a system that works. Read more ... »; planning and schedulingPlanning and scheduling procedures. Read more ... »; and cost and schedulePlanning and scheduling procedures. Read more ... » performance measurement and change control.


What this says is that the list of practice areas in Section 3 are collectively called cost engineering; while the “process” through which these practices are applied is called total cost management or TCM. Let’sHow to make S-curve without cost or resources in Primavera P6.. Read more ... » elaborate a bit more.

TCM and its subprocesses (strategic asset management and project control) are defined in the “integration” chapter that follows this preface. However, we can summarize that chapter by saying that TCM is a management process focused on coming up with ideas for creating things (i.e., a strategic assets), analyzing and deciding upon the best idea, and finally planning and creating the selected thing (i.e., by doing projects) in a controlled way (i.e., project control). So, that’s the process; but who performs the process?


Many people would say that “engineers” and engineering are most often responsible for creating functional things (or strategic assets as we call them). They are correct. However, there are multiple elements to engineering. Most look at engineering and see the element of physical “design” and the calculation and analysis tasks that are done to support that physical design (e.g., design a bridge). Again they are correct. However, many people don’t see that beyond the physical dimension of the design (e.g., the bridge structure), there are less tangible dimensions of money, timeDownload Planning Engineers Preparation Course for Free. Read more ... », and otherHow to copy a project from one EPS to other.. Read more ... » resources that are invested in the creation of the asset. We refer to these investments collectively as “costs”. Someone needs to estimate what the bridge might cost, determine the activitiesAdd cost to all primavera activities from excel with Vlookup. Read more ... » needed to design and build it, estimate how long these activities will take, and so on. Furthermore, someone needs to continually monitorHow to monitor budgeted and actual cost in Primavera p6.. Read more ... » and assess the progress of the bridge design and constructionPARSONS hiring Engineers on Abu Dhabi, Dubai, Qatar, Oman, Bahrain and Kuwait. Read more ... » (in relation to the expenditure of money and time) to ensure that the completed bridge meets the owner’s objectives. This is a lot of work. It requires special skills and knowledge.


The cost dimension requires calculation, analysis, planning, and control. No bridge has ever been built without dealing with both the physical and cost dimensions. However, the engineering skills and knowledge required to deal with “costs” are quite different from those required to deal with the physical design dimension. From that difference, the field of cost engineering was born. So, cost engineers work alongside of and are peers with engineers (or software analysts, play producers, architectsPARSONS hiring Engineers on Abu Dhabi, Dubai, Qatar, Oman, Bahrain and Kuwait. Read more ... », and other creative fields) to handle the cost dimension. And, returning to the Constitution and Bylaws definition, the skills and knowledge needed by that dimension are “business and program planning; cost estimating; economic and financial analy- sis; cost engineering; program and project management; planning and scheduling; and cost and schedule performance measurement and change control.” All these functions are performed in an integrated way through the process of TCM.


Engineering Costs On Construction ProjectsHow project management could improve construction projects. Read more ... » is essential specially in large projects and Cost engineers often specialize in one function with a focus on one side of the asset and project business. They may have titles such as cost estimator, parametric analyst, strategic planner, schedulerTop 10 steps you should do to be a successful planning engineer. Read more ... », cost/schedule engineer, project managerConstruction Project Manager Job Description. Read more ... », or project control lead. They may work for the business that owns and operates the asset (emphasis on economics and analysis), or they may work for the contractor that executes the projects (emphasis on planning and control). But, no matter what their jobMEP Engineer Job Description template. Read more ... » title or business environment, a general knowledge of, and skills in, all areas of cost engineering are required to perform their job effectively.


[cmamad id="1174" align="left" mobid="ad-off"]


  • Share on Social Networks

Comments (2)

  • Hasan Jlelaty Reply

    THANKS

    Mar 5, 2013 at 5:17 am
  • John Paul Reply

    This is a kick ass article .thanks for letting me know I am a cost engineer also, although I work as a planning engineer

    Mar 5, 2013 at 7:44 am

Leave a comment

Your email address will not be published.

Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.