Cost Estimating Services

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Services by qualified cost estimators

Cost estimating can be regarded as the approximation of the costs of any project or operation. It's a very broad subject and can be applied in any field. Yet it's those projects with relative high complexity and uncertainty that require most attention, since these are often associated with high investment costs. It is therefore common practice for companies to acquire external estimating knowledge and skills for that kind of projects in case they don't have dedicated cost estimators in-house.

The cost estimating services provided by Cost Engineering comprise of experienced and qualified cost engineers with a cost estimating and a functional engineering background. Those services aim to either assist companies in their cost estimating processes, check their work to ensure they're correct, or to take care of all estimating activities throughout the entire project.

The preparation of cost estimates will range from the AACE International (AACEI) Class 5 Project initiation cost estimates through cost estimate AACEI Class 1 detail estimates. A full description of these classes, developed by the international association of cost engineering (AACE International), can be found here. A short summary:

 

Cost Estimate Classification System

 

Primary Characteristics

Secondary characteristics

  

Estimate

Level

Level of Project

definition

 End Usage Methodology

Expected

Accuracy Range

Preparation

Effort
5 0% to 2% Concept Screening Capacity factored Parametric Models, Judgement or analogy

L: -20% to -50%

H: +30% to +100%

1
4 1% to 15% Study or Feasibility Equipment factored or Parametric Models

L: -15% to -30%

H: +20% to +50%

 2 to 4
3 10% to 40% Budget, Authorization or Control Semi-detailed unit cost with assembly level line items

L: -10% to -20%

H: +10% to +30%

 3 to 10
2 30% to 70% Control or Bid / Tender Detailed Unit Cost with Forced Detailed take-off

L: -5% to -15%

H: +5% to +20%

 4 to 20
1 50% to 100% Check Estimate or Bid / Tender Detailed Unit Cost with Detailed take-off

L: -3% to -10%

H: +3% to +15%

 5 to 100

 

Cost estimates made by Cost Engineering can be created in Excel if that's what you need, but the preferred way is to use a proprietary / licensed cost estimating software tool like Cleopatra Enterprise. The cost estimates will be produced following the appropriate cost estimate approach required for the specific project phase to establish the accuracy requested.

Key Features of the Service

  • For all cost estimates a cost estimating plan will be developed and agreed on with the client.
  • The contents of the plan are to be agreed on and formally approved and signed off before the cost estimating work starts.
  • All cost estimates will be prepared following the client’s cost estimating guideline. The appropriate cost estimate methodology for each class will be applied.
  • For all cost estimates carried out Cost Engineering will have a review and approval process. This will result in an approved basis of estimating.
  • Cost estimates will only be released once approved and they will be issued to the client's main focal point.
  • CAPEX (Capital Expenditure) uncertainty analysis will be executed for the appropriate phases. This analysis will be executed with a Risk Software Program @Risk based on the Monte Carlo simulation to determine the contingency to derive the cost estimate confidence level. This risk assessment will be based on the identified project risks.
  • All cost estimates will be submitted in the form of a formal report. The contents of the report will be defined in the cost estimating plan. The report will cover the underlying project strategy, contingency descriptions, escalation and the project costs shown in a pre-agreed format.
  • According to the comments and feedback from the client the cost estimate may be modified by agreement. All modifications shall be strictly controlled and documented. 
  • All cost estimates generated will be properly recorded and archived both electronically and in hard copy. In this way they can be easily identified and retrieved.

Contact us

Contact us

Interested in what our cost estimating services can do for you? Use the contact form or send an email directly to contact@costengineering.eu.