Cost Engineering

“What will it yield and what will it cost?” is the first question when talking about starting a project. Cost engineering specializes in the question: “what it will cost”. Next, it is about controlling the costs until the end of the project. There are a number of disciplines within cost engineering. These include estimating, cost control, change management, risk management en investment analyses.

Estimation

In a predetermined way, the costs of a project are determined on the basis of the available information. There are a number of things that determine the nautical nature of the estimate.

Quality of information available
Chosen working method
Quality of the Cost

Engineer Tresviri always makes a bottom-up estimate. We use the details to build an estimate from below. In addition, we take soft factors into account, which have an impact on the costs of the project, but are not always in the technical specification. These costs have also been made transparent.

Cost control

In the preparation and execution of a project, things often turn out differently than previously estimated. Cost Control identifies in a timely manner when financial deviations are expected and gives the project team the relevant information in a timely manner to make the right decisions. In the project team, cost control keeps in touch with planning, work preparation, executors, the project team and the finance department to collect the right information.

Change management

A cost control task is to manage the changes that occur during the project. The changes are checked as a result of the contract, the impact on planning and costs. Possible inefficiencies and risks are also taken into account. The cost engineer advises the project team on the acceptance of the change.

Risk management

The biggest risks in a project are risks that are not known. That is why cost engineering actively looks for possible risks. The information is extracted from the entire organization. The risks are tracked in a risk register. This tracks the impact on planning, costs, but also the chance that this risk will take place. On this basis, it is determined how a risk is mitigated.

Investment analyses

The key question: “What will it yield and what will it cost?” is determined in the investment analysis. This is a task that can be performed by the cost engineer. The investment analysis is a collaboration between commerce, technology and cost engineering. Commerce determines what it yields and cost engineering determines what it costs. In an investment proposal, several scenarios are worked out. The cost engineer draws up the various scenarios clearly.

Would you like to know more about what Tresviri can contribute to the predictability of your projects or maintenance costs. Don’t hesitate to contact us!

Trésviri Cost Engineering Solutions

Burg. Legroweg 45

9761 TA Eelde (gebouw A)