110:"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 āprocessā through which these practices are applied is called total cost management or TCM.
170:"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)."
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Skills and
Qualities of a Successful Cost Engineer To be successful, a cost engineer must have strong analytical abilities, industry-specific knowledge, experience with cost estimating systems, and excellent communication skills. An understanding of professional engineering principles is also desired
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Importantly, cost engineering incorporates lessons learned from previous project experience and data-driven insights to provide an early understanding of design and construction decisions and risks. With these insights, mitigative actions can be recommended to ensure successful project outcomes. For
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encompasses. The most obvious perception is that engineering addresses technical issues, such as the physical design of a structure or system. However, beyond the physical manifestation of a design of a structure or system (for example, a building), there are other dimensions to consider such as the
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and schedule slips. Cost engineering goes beyond preparing cost estimates and schedules by helping manage resources and supporting assessment and decision-making. "The discipline of ācost engineeringā can be considered to encompass a wide range of cost-related aspects of engineering and programme
122:. AACE International is one of many international engineering organizations representing practitioners in these fields. The International Cost Engineering Congress (ICEC) was founded in 1976 as a Worldwide Confederation of Cost Engineering, Quantity Surveying and Project Management Societies.
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A cost engineer is "an engineer whose judgment and experience are utilized in the application of scientific principles and techniques to problems of estimation; cost control; business planning and management science; profitability analysis; project management; and planning and scheduling".
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Cost engineering, then, can be considered an adjunct of traditional engineering. It recognizes and focuses on the relationships between the physical and cost dimensions of whatever is being "engineered". Cost engineering is most often taught at universities as part of
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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."
74:, schedule analysis/planning and risk assessment." The broad array of cost engineering topics represent the intersection of the fields of project management, business management, and engineering. Most people have a limited view of what
129:(TCM) Framework, which outlines an integrated process for applying the skills and knowledge of cost engineering (see References). This has also been called the world's first process for portfolio, program and project management.
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Cost engineering is a field of engineering practice that began in the 1950s (AACE International was founded in 1956). The skills and knowledge areas of cost engineers are similar to those of
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Tools aside, choosing the appropriate cost engineering technique is critical. Techniques and methodologies can vary depending on several factors, including:
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money, time, and other resources that were invested in the creation of the building. Cost engineers refer to these investments collectively as "costs".
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AACE International
Recommended Practice No. 11R-88, REQUIRED SKILLS AND KNOWLEDGE OF COST ENGINEERING, TCM Framework: General Reference
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AACE International
Recommended Practice No. 11R-88, REQUIRED SKILLS AND KNOWLEDGE OF COST ENGINEERING, TCM Framework: General Reference
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Amos, Scott (editor), "Skills and
Knowledge of Cost Engineering," Fifth Edition, AACE International, Morgantown, West Virginia, 2004.
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David Greves & Herve
Joumier, "Cost Engineering for Cost-Effective Space Programmes," esa bulletin 115 - august 2003, pg1
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AACE International
Recommended Practice No. 10S-90, COST ENGINEERING TERMINOLOGY, TCM Framework: General Reference
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this reason, choosing a cost estimation method also depends on the skills and experience of the cost engineer.
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Cost engineers use software and other industry tools and resources to collect, analyze, and share cost data.
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Humphreys, Kenneth K (editor), "Jelen's Cost and
Optimization Engineering" 3rd Edition, McGraw-Hill, 1991.
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One key objective of cost engineering is to arrive at accurate cost estimates and schedules, and to avoid
49:. In many industries, cost engineering is synonymous with project controls. As the title "engineer" has
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Hollmann, John K. (editor), "Total Cost
Management Framework", AACE International, Morgantown WV, 2006.
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Quantity
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management, but in particular cost estimating, cost analysis/cost assessment,
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AACE International (Association for the Advancement of Cost Engineering)
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and many cost engineers have significant prior engineering experience.
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Some titles or positions in the Cost Engineering practice include:
353:"AACE International - About Us - News Archive - 2013 - Page Title"
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Skills and knowledge of cost engineers are similar to those of
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is a core skill and knowledge area of cost engineering.
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339:"Home - DACE," Dutch Association of Cost Engineers,
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Professional titles or positions in cost engineering
27:Practice of regarding cost in engineering projects
520:Cost Engineering at Cost Engineering Academy, NL
500:Society for Cost Analysts and Forecasting (SCAF)
377:"Definition and Importance of Project Controls"
495:International Cost Engineering Council (ICEC)
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515:Cost Engineering at Cranfield University, UK
510:Dutch Association of Cost Engineers (DACE)
199:Planner/Scheduler (or Scheduling Engineer)
51:legal requirements in many jurisdictions
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144:The scope and complexity of the project
505:Association of Cost Engineers (ACostE)
268:International Cost Engineering Council
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253:Construction Estimating Software
187:Contract Management Specialist
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381:www.projectcontrolsonline.com
196:Cost Estimator (or Estimator)
178:Claims and Changes Specialist
125:In 2006, AACE published the
298:Reference class forecasting
133:Cost Engineering Techniques
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433:John K. Hollmann, PE CCE,
420:John K. Hollmann, PE CCE,
147:Project phase and maturity
283:Pre-construction services
205:Project Controls Engineer
150:Industry and project type
102:Associations, considered
461:Systems Cost Engineering
329:http://www.acoste.org.uk
208:Project Controls Manager
202:Pre-Construction Manager
153:Stakeholder requirements
104:non-profit organizations
85:construction engineering
37:practice devoted to the
540:Engineering disciplines
243:Construction Management
181:Construction Estimator
89:engineering management
127:Total Cost Management
97:Engineering economics
39:management of project
184:Construction Manager
402:, AACE, 2010, pg 24
341:http://www.dace.nl/
303:Total delivery cost
437:, AACE, 2010, pg 3
424:, AACE, 2010, pg 2
288:Project management
263:Cost-plus contract
238:Building estimator
233:AACE International
214:Project Controller
120:quantity surveyors
108:AACE International
106:--one example, is
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473:978-0-566-08861-2
308:Value engineering
293:Quantity surveyor
220:Quantity Surveyor
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76:engineering
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386:2016-07-11
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315:References
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226:See also
61:Overview
33:is "the
114:History
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469:ISBN
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