Costs Of Software Engineering

[Hildegard Mccauley]

CostEstimating ServicesCost Estimating ServicesThe start of a successful project starts with a good idea and a well-founded estimate of the costs. Cost Engineering delivers solid cost estimating services based on best practices that have proven themselves.

From Project Initiation to ExecutionFrom an early phase conceptual estimate to a definitive detail estimate, Cost Engineering ensures the best possible quality and accuracy. With more than twenty years of experience in the process industry, Cost Engineering provides the cost estimating support you are looking for.

Independent Estimate ValidationCost Engineering provides independent expert reviews and counter estimates. Validations can be performed on estimates produced in-house or by engineering companies. From a quick check to a thorough evaluation, the results allow you to be 100% confident in the quality of your estimates.

Risk AnalysisThe probability of your estimate heavily depends on the quantification of the risks involved. A risk analysis is executed using our proven methodology and toolset, fully compliant with AACE International Recommended Practices.

Change ManagementChanges occur on every project. Cost Engineering helps you implement a structured change management process. By identifying trends and signaling early warnings, corrective actions can be taken in time. This results in the lowest possible impact these changes will have on the outcome of your project.

Dedicated ToolsWith Cleopatra Enterprise we have the most advanced cost management software on the market. Cleopatra allows us to control every detail of the project without losing perspective on the overall project performance. Quick management dashboards containing KPIs provide the insight to see whether your project is on track.

TenderingSelecting the right contractor for the job is the basis for a successful turnaround or maintenance project. Cost Engineering has helped many companies in the tendering, bidding and evaluation process, resulting in the selection of the best contractors.

Contract StrategyTurnarounds are known for their complexity and time constraints where multiple contractors need to work together. Having the right contract strategy is critical to its success. Cost Engineering has extensive experience in contract strategies, allowing us to advise and implement the best contract strategy for your situation.

Stay within time and budgetEspecially for turnarounds proper control is needed to avoid delays and cost overruns. During the execution of a turnaround Cost Engineering can perform cost control onsite. Our turnaround experts ensure that the interfaces with scheduling, ERP and budgeting systems are aligned. Keeping the costs of the turnaround within budget and preventing delays is what we do best.

Cleopatra Enterprise is the only solution developed by cost engineers, for cost engineers. Using the latest techniques that are advanced yet easy-to-use, Cleopatra allows you to work faster and more accurate at the same time. Cleopatra is the first tool on the market which fully integrates cost estimating and cost management.

Reliable Cost EstimatingCreating accurate estimates has never been easier. Cleopatra has built-in knowledge management so you never have to search for the information you are looking for. Sophisticated estimating methodologies are available to support each stage of your project, such as parametric cost models or intelligent import of MTO/BOQ sheets.

Accurate Cost ManagementCleopatra offers an integrated Cost Management module which seamlessly works together with the Cost Estimating module. That way you can easily recast your estimate into a cost management document. With the Cost Management module you can perform advanced forecasting, earned value management, change management and much more.

In-depth Project AnalyticsWhether you work on a greenfield, brownfield, turnaround or maintenance project, Cleopatra is ready to support you. Through project analytics you will have an overview on your project portfolio. Templates and reports can incorporate business rules and save valuable time in delivering your results.

The quality of your cost estimates depends heavily on your cost data. Having a complete and well-structured dataset makes your life as a cost estimator much easier. The Cost Engineering Standard Knowledgebase (CESK) offers you a vast array of information, used by companies worldwide. The included labor norms and cost data is considered an industry standard and covers a wide range of disciplines for various industries.

Industry standard knowledgebaseThe CESK data is available in Cleopatra Enterprise as a structured and comprehensive knowledgebase. Users can choose from parametric equipment models to detailed unit-rate data for all typical project disciplines. With the central database architecture of Cleopatra, your knowledge remains secure and available when you need it.

Always up-to-dateCost Engineering provides regular updates of the CESK Data to ensure the information reflects the latest market conditions. Because the data is open and transparent, users can also add their own knowledge and data to capture and maintain the information that is typical for your projects.

Third Party DataIn addition to the CESK Data, information from third parties can also be made available in Cleopatra Enterprise. For example, well known datasets such as Compass International, Richardson and Page & Nations. Even your own cost library, whether in Excel or MS Access, can easily be converted into a Cleopatra knowledgebase.

The Cost Engineering Academy has various courses in the profession of cost engineering. Whether you want to learn more about cost estimating or cost control, the Cost Engineering Academy has the right program for you.

Become CertifiedAs part of the Academy course program, participants can choose to enroll in the Cost Engineering Skills and Knowledge certification course. This course prepares you for the AACE International certification exam, to become Certified Cost Technician (CCT) or Certified Cost Professional (CCP).

Approved Education ProviderCost Engineering is proud to be awarded by the AACE International as an Approved Education Provider. This means that all our courses have been carefully examined and approved to the highest standards in the industry. All our trainers are certified themselves and will share practical examples from years of experience.

Cost engineering is "the engineering practice devoted to the management of project cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis".[1] "Cost Engineers budget, plan and monitor investment projects. They seek the optimum balance between cost, quality and time requirements."[2]

Skills and knowledge of cost engineers are similar to those of quantity surveyors. In many industries, cost engineering is synonymous with project controls. As the title "engineer" has legal requirements in many jurisdictions (i.e. Texas, Canada[3]), the cost engineering discipline is often renamed to project controls.[4]

A cost engineer is "an engineer whose judgment and experience are utilized in the application of scientific principles and techniques to problems of estimation; cost control; business planning and management science; profitability analysis; project management; and planning and scheduling".[5]

Cost engineering, then, can be considered an adjunct of traditional engineering. It recognizes and focuses on the relationships between the physical and cost dimensions of whatever is being "engineered". Cost engineering is most often taught at universities as part of construction engineering, engineering management, civil engineering, and related curricula because it is most often practiced on engineering and construction capital projects. Engineering economics is a core skill and knowledge area of cost engineering.

Cost engineering is a field of engineering practice that began in the 1950s (AACE International was founded in 1956). The skills and knowledge areas of cost engineers are similar to those of quantity surveyors. AACE International is one of many international engineering organizations representing practitioners in these fields. The International Cost Engineering Congress (ICEC) was founded in 1976 as a Worldwide Confederation of Cost Engineering, Quantity Surveying and Project Management Societies.

In 2006, AACE published the Total Cost Management (TCM) Framework, which outlines an integrated process for applying the skills and knowledge of cost engineering (see References). This has also been called the world's first process for portfolio, program and project management.

Importantly, cost engineering incorporates lessons learned from previous project experience and data-driven insights to provide an early understanding of design and construction decisions and risks. With these insights, mitigative actions can be recommended to ensure successful project outcomes. For this reason, choosing a cost estimation method also depends on the skills and experience of the cost engineer.

Skills and Qualities of a Successful Cost EngineerTo be successful, a cost engineer must have strong analytical abilities, industry-specific knowledge, experience with cost estimating systems, and excellent communication skills. An understanding of professional engineering principles is also desired and many cost engineers have significant prior engineering experience.

"Cost engineering practitioners tend to be: a) specialized in function (e.g., cost estimating, planning and scheduling, etc.); b) focused on either the asset management or project control side of the TCM process; and c) focused on a particular industry (e.g., engineering and construction, manufacturing, information technology, etc) or asset type (e.g., chemical process, buildings, software, etc.)... They may work for the business that owns and operates the asset (emphasis on economics and analysis), or they may work for the contractor that executes the projects (emphasis on planning and control)."[8]

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