This book explains the basic and advanced aspects of engineering economics, cost estimating, cost control, cost forecasting, and planning and scheduling. It is intended for engineers, architects, and managers involved in or planning to be involved in engineering and construction projects.
Preface
Part I Project Economics
Project Economics
Market Research
Advantages and Disadvantages of New Projects
Economic Evaluation of Risks
Feasibility Studies
Funding and Cash Flow
Insurance
Plant Location
The Life of a Project
Market Research and the Preliminary Estimate
Appropriation or Proposal Estimate
Preliminary Estimate by the Owner
Estimate by the Engineering and Construction Firm
Engineering Department
Review and Approval of the Estimate
Project Execution
Cost Engineering
Other Contributors
Project Organization
Project Management
Project Organization: An Overview
The Project Manager
The Project Team
Cost Engineering
Organizing a Cost-Engineering Department
The Cost Engineer’s Role in Management
Integrated Cost Engineering
Introduction
Estimating
Budgeting
Cost Control and Forecasting
Data Analysis
Data Development
Planning and Scheduling
Outside Data
Part II Construction Cost Engineering
Estimate Checklist
Plant Location
Site Access
Procurement
Engineering
Construction
Construction Labor
Schedule
Other Costs
Types of Estimates and Estimating Methods
Types of Estimates
Cost and Schedule Integration
Estimating Methods
Direct and Indirect Costs
Value Engineering
Do’s and Don’ts in Estimating
The Detailed or Definitive Estimate
Definition
When and Why a Definitive Estimate is Required
Preparation
Estimate Review and Presentation
Contingency, Allowances, and Escalation
Contingency
Allowance
Escalation
Part III Cost Control and Forecasting
Implementing a Cost-Control System
Definition
Objectives
Cost Control Is the Name of the Game
Resistance to Control
Quality/Cost/Schedule Conflicts
Who Controls Costs?
Implementing Cost Control
Financial Control
Control of Extra Work
The Twelve Commandments of Cost Control
Budgets
Definition
Purpose
Code of Accounts and the WBS
Forms
Budget Preparation
Timing
Distribution
Review and Approval
Documentation
Do’s and Don’ts
Cost Control
Control Phases
Control Techniques
Control of Changes
Financial Control
Cost Forecasting
Cost-Status Evaluation
Cost Forecasting
The Monthly Report
Part IV Planning and Scheduling
Planning and Scheduling
Why Plan
Time is Money
Time, Cost, and Performance
Scheduling Systems and Levels
Work Breakdown Structure
Scope of Work
Manual and Computerized Approaches
Coordination and Communication
Resistance to Scheduling
Terminology
Do’s and Don’ts in Scheduling
The Bar Chart
History
Simplicity
Development
Updating
Presentations
The Critical Path Method
History
From Bar Chart to CPM
Rules
The Network
Computations
The Critical Path
Project Evaluation and Review Technique and the Precedence-Diagram Method
Project Evaluation and Review Technique
Precedence-Diagram Method
Schedule Development
Schedule Base
Schedule Development
Schedule Crashing
Resource Allocation
Resource Allocation
Financial Resources
Engineering and Project Administration
Procurement Resources
Construction Manpower Allocation
Construction Start Time by Trade
Time Control
General Requirements
Control of Engineering Progress
Control of Equipment and Materials Procurement and Deliveries
Control of Construction Progress
Progress Reports
General Requirements
Report Outline
Engineering Status
Procurement Status
Contracting and Construction Status
Overall Project Status Report
Critical Path Analysis
Accomplishments, Problems, and Action List
Photographs
Part V Data Bank
Data Development
The Importance of Data Analysis
Code of Accounts
Uniformity of Records
Continuous Analysis
Sorting Out Special Conditions
Additional Factors
Storage and Retrieval of Data
How to Store and Retrieve Cost and Scheduling Data
Graphs, Charts and Unit Costs
Contractual Requirements
Evaluation of Contractors
Specific Project Conditions
Project Comparisons
Specific Project Data
Engineering and Consultants
Lessons to Be Learned
The Closing Report
Learning From Mistakes
Performance Evaluation
Sharing Knowledge
Willingness to Improve
Hiding the Facts
Value Analysis
Performance of Consultants, Suppliers, and Contractors
Comparison with Other Projects
The Fight for Survival
A Case of Study
Part VI The Future of Cost Engineering
Computer Applications
Computers in Project Management
Project Economics
Cost Estimating
Cost Control and Forecasting
Planning and Scheduling
Data Bank
Graphics
Communication
Teaching Cost Engineering
On-the-Job Training
Graduate Program
Cost Engineering Manuals
Appendices
Appendix A Checklist for Estimating
Appendix B Special Considerations for Foreign Projects
Appendix C Code of Accounts and the Work Breakdown Structure
Appendix D Estimating and Cost Control: A Study of Existing
Conditions and Recommendations for Improvement
George Azud
Appendix E Typical Project Activities
Index
Biography
Anghel Patrascu
