Cost Engineering

Work Process

1

Location for Cost Engineering Work Process

Capital Management A to Z

2

Location for Scope Development Workbook

Capital Management A to Z

3

Cost Estimating Process

1. Scope Development, 2. Pricing, 3. Risk Analysis, 4. Completion

4

Documents for Next Team Services

Scope Development Workbook, Relevant Pricing Details, Cover Sheet

Scope Development

1

Scope Drives

Cost!

2

Cost Containment

Basic v. Value-Add Scope

3

Direct Scope (x3)

Labor, Materials, Equipment

4

Indirect Scope (x5)

Maintaining Production, Taxes, Premium Time, Construction Management, Engineering

Pricing

1

CONOPS %

25%

2

COH %

3%

3

Source Data (x4)

Vendor Quotes, Coupa POs, SAP, CE Databases, Internet Searches

4

No Quotes, Use

Allowances

Risk Analysis

1

Total Risk % =

% Undefined Subtotal + % Contingency Subtotal

2

Type of Contingency Risk

Potential Items

3

Undefined Categories (x3)

Project Complexity, Technology, Completeness of Definition

4

Contingency Categories (x4)

Site, Resources, Schedule, Pricing

Completion

1

Bottom of Range

(1-Risk%)*ETC

2

Top of Range

(1+Risk%+5%)*ETC

3

Review Appropriations > $500M

Site Cost Engineering Owner or Intermediate PM AND BU Cost Engineering Owner

4

Cover Sheet Sections (x7)

Business Need, Scope Basis, Assumptions, Risks, Schedule, Comments, Expense Costs