Cost engineering is by textbook definition “the engineering practice devoted to the management of cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis”. By real world definition, it means “save you money, give you the ability to really understand the health of your project, and provide you with the data you need to be able to accurately trend your schedule and cost”.

Prior to my career in projects, I didn’t know that project controls and cost engineering even existed. As I settled into this field I was amazed at both the real savings and cost avoidance that I discovered as I dug into the details on the projects I supported. Contractors submitting change orders on lump sum projects for work that was documented in the bid package and therefore part of the awarded contracts- change rejected! Change orders that were valid, but when I backed into the numbers and compared them to industry standards had hourly rates more than 3x the average- change rejected! I could go on and on and give a million different examples.

Many people not familiar with cost engineering may think that the things that we uncover and mitigate should be the responsibility of the project manager. A project manager directs the work of a project team, while a cost engineer advises the team of any potential cost/schedule issues, and analyzes data to provide the project manager with different scenarios to help him decide which direction is best.

It is an amazing feeling when I’m working with clients and they have an “ah ha!” moment and truly realize that the support I am providing is giving them a transparency into their project that they never knew could exist. Having a painfully honest point of view on when your project will be complete isn’t always a pretty conversation. But, to actually know the truth and be able to work to mitigate any issues that are driving it gives you a power that you wouldn’t have had otherwise. We watch your back and your bank account. Finding fluff in a contractor’s estimate has more than once given a project the green light to move forward, when it would have been a no-go with the original numbers.

Cost engineering is such a valuable tool to have in your pocket and is a major player in making a project successful. KCE&A is proud to bring this trade into a market that could benefit tremendously from our support. Let’s get going!