From an independent perspective
When discussing the initiation of a project, the first question is, ‘What will it deliver, and what will it cost?’
Cost Engineering specializes in addressing the question, 'What will it cost?'
Cost control until the end of the project
In a predetermined manner, project costs are determined based on the available information. Several factors affect the accuracy of the estimate:
Quality of available information
Chosen work methodology
Quality of the Cost Engineer
Tresviri always creates a bottom-up estimate. We use the details to build an estimate from the ground up. Furthermore, we consider soft factors that affect project costs but may not always be included in the technical specifications. These costs are also made transparent.
In the preparation and execution of a project, things often unfold differently than initially estimated. Cost Control promptly identifies anticipated financial discrepancies and provides the project team with the relevant information to make informed decisions. Cost Control maintains communication with the planning, execution teams, work preparation, the project team, and the finance department to gather the necessary information.
One of Cost Control’s responsibilities is managing changes that occur during the project. Changes are assessed in accordance with the contract, their impact on scheduling and costs, as well as potential inefficiencies and risks. The cost engineer provides guidance to the project team regarding the acceptance of these changes.
The most significant risks in a project are those that are unknown. Therefore, within cost engineering, active efforts are made to identify potential risks. Information is gathered from across the entire organization. Risks are documented in a risk register, which tracks their impact on scheduling and costs, as well as the likelihood of the risk occurring. Based on this information, risk mitigation strategies are determined.
The fundamental question, ‘What will it yield, and what will it cost?’ is determined in the investment analysis. This task can be carried out by the cost engineer. Investment analysis is a collaboration between the sales, technical, and cost engineering departments. Sales determines what it will yield, and cost engineering determines what it will cost. Multiple scenarios are developed in an investment proposal, and the cost engineer organizes these various scenarios systematically.