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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]
These positions require a high level of skill to ensure accuracy and knowledge of using these basic level programs. In recent times, software companies have begun releasing specific software designed to create a BOE with much less effort and time and expense of labor, which ultimately is the goal of a BOE in the first place.
In cost engineering, cost estimation is a basic activity. A cost engineering reference book has chapters on capital investment cost estimation and operating cost estimation. The fixed capital investment provides the physical facilities. The working capital investment is a revolving fund to keep the facilities operating. [4]
Methods engineers typically work on projects involving new product design, products with a high cost of production to profit ratio, and products associated with having poor quality issues. Different methods of project selection include the Pareto analysis, fish diagrams, Gantt charts, PERT charts, and job/work site analysis guides.
A building estimator or cost estimator is an individual that quantifies the materials, labor, and equipment needed to complete a construction project. Building cost estimating can concern diverse forms of construction from residential properties to hi-rise and civil works.
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