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Engineering Design Economics
Published in Keith L. Richards, The Engineering Design Primer, 2020
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 professionals such as quantity surveyors and cost engineers may also prepare cost estimates or contribute to cost estimates. In the United States, according to the Bureau of Labor Statistics, there were 185 400 cost estimators in 2010. There are around 75 000 professional quantity surveyors working in the United Kingdom.
Risk Management
Published in Adedeji B. Badiru, Abidemi S. Badiru, Adetokunboh I. Badiru, Mechanics of Project Management, 2018
Adedeji B. Badiru, Abidemi S. Badiru, Adetokunboh I. Badiru
In an inflationary economy, project costs can become very dynamic and intractable. Cost estimates include various tangible and intangible components of a project, such as machines, inventory, training, raw materials, design, and personnel wages. Costs can change during a project for a number of reasons including: External inflationary trendsInternal cost adjustment proceduresModification of work processDesign adjustmentsChanges in cost of raw materialsChanges in labor costsAdjustment of work breakdown structureCash flow limitationsEffects of tax obligations
Project Risk Analysis
Published in Adedeji Badiru, Abidemi Badiru, Adetokunboh Badiru, Industrial Project Management, 2007
Adedeji Badiru, Abidemi Badiru, Adetokunboh Badiru
In an inflationary economy, project costs can become very dynamic and intractable. Cost estimates include various tangible and intangible components of a project, such as machines, inventory, training, raw materials, design, and personnel wages. Costs can change during a project for a number of reasons including: External inflationary trendsInternal cost adjustment proceduresModification of work processDesign adjustmentsChanges in cost of raw materialsChanges in labor costsAdjustment of work breakdown structureCash flow limitationsEffects of tax obligations
Artificial Intelligence for Developing Accurate Preliminary Cost Estimates for Composite Flooring Systems of Multi-Storey Buildings
Published in Journal of Asian Architecture and Building Engineering, 2022
Hosam Elhegazy, Debaditya Chakraborty, Hazem Elzarka, Ahmed M. Ebid, Ibrahim M. Mahdi, Said Y. Aboul Haggag, Ibrahim Abdel Rashid
One of the biggest challenges in performing decision-making activities is the development of accurate preliminary cost estimates, during the preliminary study. If poor cost information is used, the basis for value engineering evaluation is hampered (Dell’Isola 1982). In order to improve the effectiveness of decision-making activities, there is a need to develop new methods for estimating construction costs of an adequate number of alternatives early on during the design phase. Although multistory structures, especially steel and composite structures, are quite prevalent these days, many techniques are still invoked to select an optimal methodology for creating and maintaining each one. One of the best ways to achieve optimum value maybe through the ring analysis technique. Many other methods have been used over the years, and our proposed method has not been discussed yet.
Tales on the dark side of the transport infrastructure provision: a systematic literature review of the determinants of cost overruns
Published in Transport Reviews, 2019
Marina Cavalieri, Rossana Cristaudo, Calogero Guccio
Among the above factors, the construction engineering-managerial literature generally identifies the divergence between estimated (forecasted) and actual costs as one of the main sources of project cost escalation. They agree that cost estimates represent a significant parameter of a project, being the basis for cost control during project delivery and, above all, the driving force behind the project achievement. Notwithstanding, planners tend to underestimate costs in the early phases of the project life-cycle, resulting in inaccurate cost forecasts and potential biases. Indeed, cost underestimation and deception in decision making for transport infrastructure is the objective of a body of researches aimed at understanding the practices used to decide whether such projects should be built or not (Flyvbjerg et al., 2002).
New Framework for Effort and Time Drivers in Aerospace Product Development Projects
Published in Engineering Management Journal, 2021
Rabie Jaifer, Yvan Beauregard, Nadia Bhuiyan
New product development is a key mean by which companies implement their strategy and achieve revenus objectives. Accurate cost and time estimates contribute undoubtedly to product launch success which in turn contributes to strategy success. Furthermore, the competitive dynamic of the aerospace sector makes the cost leadership strategy one of the critical success factors. Such strategy could not be achieved without controlling cost through the management of cost estimates. As for financial resources management, cost estimate is one of the most critical input to the budgeting and pricing processes. Accuracy of cost estimates is also a prerequisite for many critical decisions concerning contract management, funding, financial sources management, and so on. Regarding project management domain, cost and time estimation accuracy ensures the reliability of the cost and time plans, which are key components in the project management plan. Over all, if the cost and time are estimated within a reasonable degree of accuracy, the ability to schedule, estimate resources, control execution, and conduct trade-offs, among others, will become much easier (Salam & Bhuiyan, 2016). Finally, the awareness of the relevance of the identified cost and time drivers, especially those related to complexity and uncertainty may support NPD managers in key decision making. These drivers are not useful exclusively for estimating matters, their assessment might support critical decisions regarding portfolio management, suppliers’ management, resources selection, technologies selection, and risk management. It might also help personalizing or adjusting engineering and managerial practices from one project to another.