Cost estimating and cost engineering in construction refers to the process of estimating and managing costs associated with construction projects. This includes not only drawing up and/or reviewing the initial project budget, but also determining the procurement costs, costs of design, contractors and subcontractors, materials, labor, equipment, obtaining permits and approvals, costs associated with commissioning, and other costs, as well as value engineering of the project, which reflects the requirements and specifications of the Owner.
EK Innovative Engineering key principles of cost engineering include:
- Cost estimation: Involves estimating the costs associated with a construction project, including the initial project budget, determining the procurement costs, design costs, contractors, materials, labor, equipment costs, obtaining permits and approvals, costs associated with commissioning, and other costs and expenses.
- Benchmarking: This involves an expert team comparison of a project’s estimated costs with similar projects to ensure that estimates are accurate and reasonable.
- Cost management: This involves managing costs throughout the project, including tracking expenses, identifying cost overruns, and making budget adjustments as needed.
- Value management: Involves analyzing the cost and features of the building, systems, equipment and selected materials to achieve key functions and improve results while reducing the project’s life cycle costs. Value engineering practices are formally structured during the design phase, but also depend on the involvement of project stakeholders during the construction phase.
- Risk management: This involves identifying and managing risks that may affect the cost of the project, including security risks, operational risks, financial and legal risks.
- Quality management: This involves ensuring that the project meets the required quality standards, including design, materials and workmanship, while remaining within budget.
Effective cost assessment and cost engineering is essential for ensuring that the project is completed on time, within budget, and to the required quality standards. This helps protect the rights of all parties involved and ensures meaningful reporting. Additionally, having a robust cost engineering system in place can facilitate better communication, more accurate budgeting, and more efficient project delivery. Cost engineering is an important part of project management, and our Cost Engineers play a vital role in ensuring the successful completion of a project. Confidence in cost management is fundamental to overall project delivery ability.
EK Innovative Engineering consultants focus on forecasting the capital costs of asset investment projects, as well as all the financial impacts that infrastructure assets have on the Client’s business model. Our Cost Managers provide Clients with the benefit of cost certainty by offering a wide range of cost forecasting, negotiation and asset management services – for Owners as well as developers and contractors. Our consultants focus on accurately forecasting the capital costs of investment projects, and provide our services in accordance with ISO 90001, ISO 14001 and ISO 18001 standards.
To find out more, please contact us at info@ek-innovative.com to receive information from experts competent in the respective field.