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How do you estimate costs for project resources?

Each project that you carry out requires one or more of your resources to complete. For large projects, this can mean a considerable amount of your resources. Especially in that case, it makes sense to spend time determining the correct amount to help forecast when exactly those resources are needed. This will provide you with a cash flow to manage your expenditures and revenues accordingly. Here we pose the question: how do you make a cost estimation for using resources?

Back to the basics: what is project cost estimation?

In the field of cost engineering and cost management, project cost estimation plays a central role. What is project cost estimation and why is it so important?

The Seminar ‘The Future of Project Controls’

Especially for large projects, it is common to have at least one risk analysis session. In such a session, different stakeholders and experts try and identify events that might impact the performance of the project. It is also determined how to mitigate or even prevent these potential problems from occurring.

The Seminar ‘The Future of Project Controls’

Cost Engineering and Witteveen+Bos hosted the seminar ‘The Future of Project Controls’ which focused on the infrastructure projects. The aim was to increase the awareness of the changing landscape of project controls and the need for total cost management in the industry.

How to make a cost management plan? 3 tips

Setting up a cost management plan is an extensive process. It provides the basis for scope management, schedule planning, cost estimating and budgeting, resource planning, value analysis and engineering, risk management and procurement planning. Here are 3 tips to help guide your way:

3 types of construction cost estimating

Let’s look at one of the challenges of the cost engineer: estimating construction costs. Generally, direct project costs include construction work, material supply and equipment. Often, construction costs prove to be the most difficult part of the estimate.

5 Types of cost estimates

Estimating the surface area of a room or the number of marbles in a jar is relatively easy and can be done quite accurately with simple rules of thumb. However, estimating the total costs of an offshore LNG platform or a high speed railroad is a little more complex.

 

Luckily, there are numerous methods and techniques that can help you estimate those costs throughout the different phases of such projects.

The role of cost estimating in project management

Any project, however big or small, or regardless of the industry that is undertaken, needs to be performed and delivered under certain constraints. Cost is one of those constraints that project management needs to effectively control. Cost can be the driving force or an impeding factor in determining the future of a project. Therefore, one can easily spot the need for applying thorough cost estimating processes and techniques to ensure that a project can be viable

The world knows many great projects, both in a positive and negative way. Here are 4 of the most challenging projects carried out in recent history:

When facing a new project it is important to choose the correct estimating technique. There are several estimating techniques but the effectiveness of each of them depends on the type of project and in which phase the project is in. In this article we will discuss what the best options for each case are, but let’s first look at some basic definitions.

“To know the future we need to be aware of the past.” This is a very popular quote that is ignored time and again. In the case of cost engineering, cost control and/or cost management it is actually half the story since being aware of the present is equally important. For this example we imagine to be a cost controller caught in the middle between the cost estimator and management.

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