Cost Engineering

Cost Engineering is the application of scientific principles and techniques to problems of estimation; cost control; business planning and management science; profitability analysis; project management; and planning and scheduling.

COST ESTIMATING

A collaborative approach for project success

CRAWFORD believes having the resources that will support your projects working together in the same building mitigates risk, fosters problem-solving teamwork, and ensures open communication through the life cycle of the project. Additionally, having a dedicated team of professionals within the same office working on your projects leads to a more efficient and cost-effective approach that can be passed onto the client.
On a CRAWFORD led team we believe communication is the most important component of any project. The success of most projects, whether handled by a dedicated project team or a cross-departmental team, depends upon a set of crucial communication skills and techniques. All CRAWFORD estimates are consistent with the best estimating practices, as defined by AACE International, and are current, accurate, and complete. They reflect the expected cost to our clients to perform the work by contract and include all reasonable costs which a prudent, experienced, and well-equipped contractor might anticipate and include in their bid.

Total Cost Management

Total cost management is that area of engineering practice where engineering judgment and experience are used in the application of scientific principles and techniques to problems of business and program planning; cost estimating; economic and financial analysis; cost engineering; program and project management; planning and scheduling; cost and schedule performance measurement, and change control.
Simply stated, it is a systematic approach to managing cost throughout the life cycle of any enterprise, program, facility, project, product, or service. This is accomplished through the application of cost engineering and cost management principles, proven methodologies, and the latest technology in support of the management process.

Estimate Development

As part of AEMS’s integrated Project Services department, our professional estimators understand that an accurate and dependable estimate is a critical element to the success of any project.
Our robust estimating methodology is based on decades of integrated engineering project experience and offers the advantage of both our significant cost database and our expertise with digital execution architecture. This methodology allows AEMS to produce quality estimates quicker and with more confidence in the underlying data.

AEMS’s professional estimating capabilities include:

Conceptual estimates for project screening and technology selection
Detailed estimates to support project funding and final investment decision (FID)

Our estimating team assumes several responsibilities to support estimate development:

  • Works closely with the engineering disciplines and project team to ensure all project scope is captured and that the provided material take-off (MTO) is complete and in a format to ensure quick estimate development. •Consults with the client and project team to develop a logical work breakdown structure (WBS) for the estimate.
  • Works with the client to either develop a code-of-accounts (COAs) or implement an existing COAs.
  • Clearly identifies and documents all risks that may significantly impact the project’s outcome.
  • Clearly identifies and documents all opportunities that could help in the project’s success.
  • Provides a detailed and comprehensive estimate basis that defines all processes, variables, methodologies, and assumptions used to develop the estimate.

Third-Party Estimate Reviews

In addition to estimate development, AEMS’s estimating team performs comprehensive third-party estimate reviews. Our cold eyes reviews provide clients with confidence that the estimate accurately reflects the defined scope of work and the level of engineering completed.

Activities to support third-party estimate reviews include:

  • Ensuring all project scope has been captured in the estimate.
  • Analyzing estimate processes, variables (e.g. labor rates, productivity factors, allowances), methodologies, and assumptions and ensure they are consistent with the class of estimate.
  • Comparing estimate costs to AEMS’s internal cost database, unit costs, and benchmarks.
  • Reviewing all risks and opportunities identified in the estimate basis.

Professional Estimating Support

AEMS’s professional estimating team also provides general estimating support to clients, including:

  • Developing standard estimating methodologies and COAs to ensure consistent quality and formats from different service providers.
  • Reviewing and evaluating contractor bids.
  • Reviewing construction requests for proposals (RFPs) to ensure all information has been provided in a format that is easy for potential contractors to evaluate.
  • Developing a clear RFP package helps improve the quality and consistency of proposals received.
  • Reviewing unit rate construction contract documents, such as bill of approximate quantities (BOQs) or preambles, for consistency and accuracy.

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.

Consulting services to fit your needs

AEMS services are available in whatever combination is required to meet the customer’s cost engineering requirements. Our services can be scheduled on an as-needed basis, or we can interface with the client’s internal project resources to provide integrated estimating and project control solutions. AEMS can also form strategic alliances with our clients to help improve their estimating and project control capabilities. Through these alliances, we can become part of your in-house staff to handle some, or all, of your cost engineering needs

Experienced cost engineering professionals

AEMS consultants represent a variety of design and construction disciplines with years of experience that enables the right team of professionals to be assembled for any project. Our consultants’ diverse industry experience in fabrication and construction can offer important benefits in serving the estimating and cost engineering needs of our process owner clients

A passion for cost estimating

One of AEMS’s strengths and passions is cost estimating. AEMS can prepare project cost estimates and estimate risk analysis studies for owner companies. We also provide independent cost estimate reviews and validation studies for estimates prepared either by owners or their contractors. AEMS is totally dedicated to the estimating profession. Our customers have the assurance that they will receive expert estimating services from our knowledgeable professionals. AEMS estimators are committed to providing cost-effective, accurate estimates so that higher value project results are achieved

Supporting process industry owners

Our philosophy is to provide consulting services primarily to process industry owners. We are not interested in engineering or constructing your projects; our goal is to help owners achieve world-class estimating and project control capabilities and performance. We often partner with engineering and other project management consultants to provide a full complement of business, financial, cost engineering, and project control services to support our client’s capital project investments.

COST Engineering Services

The services provided by AEMS Global are as follows:
•Formulating Client Briefs
•Development Budgets
•Feasibility Studies
•Life Cycle Costing
•Cost Planning
•Bills of Quantities
•Tender Documentation
•Pre-Contract Value Engineering
•Dispute Avoidance
•Final Accounts and Project Closeout
•Technical Auditing •Mediation and Dispute Resolution
•Expert Evidence
•Construction Claims

The practice is committed to a policy of a high level of accuracy with a reputation for finishing projects within set cost targets.

•Keeping Your Project In Line With Our Services
•Engineers estimates, including parametric, conceptual design, final design, and change orders
•Project cost tracking and earned value analysis (EVM)
•Project scheduling
•cost /schedule risk analysis
•Baseline development and maintenance
•Re-baselining and subcontract bid reconciliation
•FAR-compliant cost estimating
•Fair cost estimating/independent government estimates
•Life cycle cost analysis
•Value engineering Forensic cost estimating

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