Construction Cost Estimating and Cost Control

Start Date: 07/05/2020

Course Type: Common Course

Course Link:

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About Course

This course introduces the types of cost estimation from the conceptual design phase through the more detailed design phase of a construction project. In addition, the course highlights the importance of controlling costs and how to monitor project cash flow. Students will work on a break-even analysis of construction tasks in a project.

Course Syllabus

James Sneath, Associate Director of Cost Management for Turner and Townsend, and Ian Taylor, Project Manager for Turner and Townsend, discuss Quantity Take Off and Measurement. Estimating cut and fill costs is taught along with a detailed example of using cut and fill software. Also covered in this module is the topic of deep foundations, concrete foundations and structural steel, measurement, masonry, glass curtain wall, facade and wall finishes.

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Course Introduction

Construction Cost Estimating and Cost Control In this course you will learn to use cost estimation to prioritize projects and ensure cost control. You will be introduced to the fundamentals of cost estimation including project initiation, milestones and escalation. You will also learn how to use cost control to ensure the proper utilization of resources. You will develop the skills to explicitly measure and control cost overruns. You will be introduced to the basic assumptions needed to form part of the cost estimation process and how these can be addressed effectively. You will learn how to use project initiation procedures to initiate the cost estimation process. You will also learn how to use control costs to ensure the proper utilization of resources. You will also learn how to use project milestones to initiate the cost estimation process. You will also learn how to use cost control to ensure the proper utilization of resources. Upon completing this course, you will be able to: 1. Estimate project costs 2. Estimate project milestones 3. Estimate project costs and infrequently asked questions 4. Estimate project costs and how to control costsControl Cost Estimating and Cost Control Estimating Project Costs and How to Control Costs Cost Estimating and How to Control Costs Culture, Politics and Law in South Korea This course will examine cultural, political and social forces that shape society in

Course Tag

Cash Flow Cost Cost Control Cost Estimate

Related Wiki Topic

Article Example
Glossary of construction cost estimating A glossary of terms relating to construction cost estimating.
Cost database A cost database is a computerized database of cost estimating information, which is normally used with construction estimating software to support the formation of cost estimates. A cost database may also simply be an electronic reference of cost data.
Construction estimating software Construction cost estimating software is computer software designed for contractors to estimate construction costs for a specific project. An cost estimator will typically use estimating software to estimate their bid price for a project, which will ultimately become part of a resulting construction contract. Some architects, engineers, construction managers, and others may also use cost estimating software to prepare cost estimates for purposes other than bidding.
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." "Cost Engineers budget, plan and monitor investment projects. They seek the optimum balance between cost, quality and time requirements."
Project cost management Project cost management is traditionally a weak area of IT projects. IT project managers must acknowledge the importance of cost management and take responsibility for understanding basic cost concepts, cost estimating, budgeting, and cost control.
Cost database A cost database includes the electronic equivalent of a cost book, or cost reference book, a tool used by estimators for many years. Cost books may be internal records at a particular company or agency, or they may be commercially published books on the open market. Well known publishers include RSMeans (Reed Construction Data), Craftsman Book Company, Gulf Publishing Company, Cost Data Online (Richardson Estimating Standards), Frank R. Walker Company, BNI Building News, and Design & Construction Resources.
Cost estimate In project management, project cost management is a major functional division. Cost estimating is one of three activities performed in project cost management.
Project cost management Estimating costs is a very important part of project cost management. There are several types of cost estimates, including rough order of magnitude (ROM), budgetary, and definitive. Each type of estimate is done during different stages of the project life cycle, and each has a different level of accuracy. Several tool and techniques can help you develop cost estimates, including analogous estimating, bottom-up estimating, parametric estimating, and computerized tools.
Cost engineering "Cost engineering practitioners tend to be: a) specialized in function (e.g., cost estimating, planning and scheduling, etc.); b) focused on either the asset management or project control side of the TCM process; and c) focused on a particular industry (e.g., engineering and construction, manufacturing, information technology, etc) or asset type (e.g., chemical process, buildings, software, etc.)... 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)."
Cost database The cost database may be stored in a relational database management system, which may be in either an open or proprietary format, serving the data to the cost estimating software. The cost database may be hosted in the cloud. Estimators use a cost database to store data in structured way which is easy to manage and retrieve.
Cost estimate Various projects and operations have distinct types of cost estimating, which vary in their composition and preparation methods. Some of the major areas include:
Cost accounting Cost accounting is a process of collecting, recording, classifying, analyzing, summarizing, allocating and evaluating various alternative courses of action & control of costs. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future.
Cost engineering AACE International "is dedicated to the tenets of furthering the concepts of Total Cost Management and Cost Engineering. Total Cost Management is the effective application of professional and technical expertise to plan and control resources, costs, profitability and risk. Simply stated, it is a systematic approach to managing cost throughout the life cycle of any enterprise, program, facility, project, product or service. This is accomplished through the application of cost engineering and cost management principles, proven methodologies and the latest technology in support of the management process. ... 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 program planning; cost estimating; economic and financial analysis; cost engineering; program and project management; planning and scheduling; and cost and schedule performance measurement and change control. In summary, the list of practice areas ... are collectively called cost engineering; while the “process” through which these practices are applied is called total cost management or TCM.
Cost segregation study "In general, a study by a construction engineer is more reliable than one conducted by someone with no engineering or construction background. However, the possession of specific construction knowledge is not the only criterion. Experience in cost estimating and allocation, as well as knowledge of the applicable law, are other important criteria. A quality study identifies the preparer and always references his/her credentials, experience and expertise in the cost segregation area" ( - Cost Segregation Audit Technique Guide - Chapter 4 - Principal Elements of a Quality Cost Segregation Study and Report).
Construction estimating software Three functions prove to be the most critical when buying cost estimating software:
Cost estimate A cost estimate is the approximation of the cost of a program, project, or operation. The cost estimate is the product of the cost estimating process. The cost estimate has a single total value and may have identifiable component values. A problem with a cost overrun can be avoided with a credible, reliable, and accurate cost estimate. A cost estimator is the professional who prepares cost estimates. There are different types of cost estimators, whose title may be preceded by a modifier, such as building estimator, or electrical estimator, or chief estimator. Other professional titles may also prepare cost estimates or contribute to cost estimates, such as quantity surveyors, cost engineers, etc. In the US, there were 185,400 cost estimators in 2010. There are around 75,000 professional quantity surveyors working in the UK.
Historical cost In IFRS, cost also includes the initial estimate of the costs of dismantling and removing the item and restoring it. Cost may include the cost of borrowing to finance construction if this policy is consistently adopted.
Cost overrun Many major construction projects have incurred cost overruns; cost estimates used to decide whether important transportation infrastructure should be built can mislead grossly and systematically.
Construction estimating software Sophisticated, cost estimating and Efficient Project Delivery Software systems are also available to integrate various construction delivery methods such as Integrated Project Delivery, Job Order Contracting, and others (IDIQ, JOC, SABER...) simultaneously and securely. These systems enable cost estimators and project managers to collaboratively work with multiple projects, multiple estimates, and multiple contracts. A 'short list' of additional capabilities includes the ability to work with multiple cost books/guides/UPBs, track project status, automatically compare estimates, easily copy/paste, clone, and reuse estimates, and integrated sophisticated visual estimating and quantity take-off (QTO) tools. Owners, contractors, architects and engineers are moving to advanced cost estimating and management systems, and many oversight groups such are beginning to also require their use. The level of collaboration, transparency, and information re-use enabled by Cost Estimating and Efficient Project Delivery Software drives 15-25%+ reductions in procurement cycles, six to ten times faster estimating, reduce overall project times, as a significant reduction in change orders and the virtual elimination of contract related legal disputes.
Overnight cost Overnight cost is the cost of a construction project if no interest was incurred during construction, as if the project was completed "overnight."