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Cover image for Construction cost engineering handbook
Title:
Construction cost engineering handbook
Personal Author:
Series:
Cost engineering; 12
Publication Information:
New York : Marcel Dekker, 1988
ISBN:
9780824778279

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Item Category 1
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30000001607328 TA183 P37 1988 Open Access Book Book
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Summary

Summary

Covering the life of a construction project from inception to completion, this useful reference explains basic and advanced aspects of engineering economics, cost estimating, cost control, cost forecasting, planning, and scheduling. It serves both as a comprehensive introduction to cost engineering and as a practical, on-the-job guide for any construction project where the object is economy. Construction Cost Engineering Handbook describes the responsibilities of each member of the construction team and defines their relationship to project control ... analyzes project economics before, during, and after a project's finish ... examines various types and methods of estimating ... distinguishes between cost reporting and cost forecasting, with valuable cost and scheduling integration examples ... considers planning and scheduling procedures such as the bar chart and sophisticated contemporary techniques ... highlights ways of avoiding common mistakes through data development ... and furnishes computer samples for estimating, cost control, cost forecasting, and scheduling. Illustrated with more than 180 excellent diagrams and drawings, and featuring convenient appendixes on foreign and remote projects, code of accounts and work breakdown structure, and typical project activities, Construction Cost Engineering Handbook is an indispensable reference for civil, cost, project, plant, design, construction, and industrial engineers and managers as well as architects, building contractors, and financial controllers involved with construction projects. Book jacket.


Author Notes

Anghel Patrascu is Manager of Cost Engineering at Liquid Air Engineering Corporation in Walnut Creek, California


Table of Contents

George Azud
Prefacep. v
Part I Project Economics
1. Project Economicsp. 3
Market Researchp. 3
Advantages and Disadvantages of New Projectsp. 4
Economic Evaluation of Risksp. 5
Feasibility Studiesp. 6
Funding and Cash Flowp. 8
Insurancep. 10
Plant Locationp. 10
2. The Life of a Projectp. 13
Market Research and the Preliminary Estimatep. 13
Appropriation or Proposal Estimatep. 14
Preliminary Estimate by the Ownerp. 15
Estimate by the Engineering and Construction Firmp. 15
Enginering Departmentp. 16
Review and Approval of the Estimatep. 19
Project Executionp. 19
Cost Engineeringp. 26
Other Contributorsp. 26
3. Project Organizationp. 31
Project Managementp. 31
Project Organization: An Overviewp. 33
The Project Managerp. 35
The Project Teamp. 35
Cost Engineeringp. 36
Organizing a Cost-Engineering Departmentp. 37
The Cost Engineer's Role in Managementp. 43
4. Integrated Cost Engineeringp. 47
Introductionp. 47
Estimatingp. 49
Budgetingp. 50
Cost Control and Forecastingp. 50
Data Analysisp. 51
Data Developmentp. 51
Planning and Schedulingp. 52
Outside Datap. 52
Part II Construction Cost Engineering
5. Estimate Checklistp. 57
Plant Locationp. 58
Site Accessp. 59
Procurementp. 61
Engineeringp. 64
Constructionp. 65
Construction Laborp. 69
Schedulep. 72
Other Costsp. 74
6. Types of Estimates and Estimating Methodsp. 75
Types of Estimatesp. 75
Cost and Schedule Integrationp. 83
Estimating Methodsp. 85
Direct and Indirect Costsp. 89
Value Engineeringp. 89
Do's and Don'ts in Estimatingp. 90
7. The Detailed or Definitive Estimatep. 91
Definitionp. 91
When and Why a Definitive Estimate Is Requiredp. 92
Preparationp. 92
Estimate Review and Presentationp. 108
8. Contingency, Allowances, and Escalationp. 115
Contingencyp. 115
Allowancep. 128
Escalationp. 129
Part III Cost Control and Forecasting
9. Implementing a Cost-Control Systemp. 137
Definitionp. 137
Objectivesp. 138
Cost Control Is the Name of the Gamep. 139
Resistance to Controlp. 140
Quality/Cost/Schedule Conflictsp. 144
Who Controls Costs?p. 144
Implementing Cost Controlp. 147
Financial Controlp. 158
Control of Extra Workp. 159
The Twelve Commandments of Cost Controlp. 160
10. Budgetsp. 169
Definitionp. 169
Purposep. 169
Code of Accounts and the WBSp. 170
Formsp. 170
Budget Preparationp. 170
Timingp. 172
Distributionp. 173
Review and Approvalp. 173
Documentationp. 173
Do's and Don'tsp. 173
11. Cost Controlp. 175
Control Phasesp. 175
Control Techniquesp. 183
Control of Changesp. 188
Financial Controlp. 196
12. Cost Forecastingp. 203
Cost-Status Evaluationp. 203
Cost Forecastingp. 205
The Monthly Reportp. 216
Part IV Planning and Scheduling
13. Planning and Schedulingp. 221
Why Planp. 221
Time is Moneyp. 222
Time, Cost, and Performancep. 223
Scheduling Systems and Levelsp. 223
Work Breakdown Structurep. 224
Scope of Workp. 224
Manual and Computerized Approachesp. 225
Coordination and Communicationp. 226
Resistance to Schedulingp. 226
Terminologyp. 227
Do's and Don'ts in Schedulingp. 228
14. The Bar Chartp. 231
Historyp. 231
Simplicityp. 232
Developmentp. 233
Updatingp. 233
Presentationsp. 233
15. The Critical Path Methodp. 237
Historyp. 237
From Bar Chart to CPMp. 238
Rulesp. 240
The Networkp. 241
Computationsp. 241
The Critical Pathp. 244
16. Project Evaluation and Review Technique and the Precedence-Diagram Methodp. 245
Project Evaluation and Review Techniquep. 245
Precedence-Diagram Methodp. 248
17. Schedule Developmentp. 253
Schedule Basep. 253
Schedule Developmentp. 258
Schedule Crashingp. 273
18. Resource Allocationp. 275
Resource Allocationp. 275
Financial Resourcesp. 277
Engineering and Project Administrationp. 283
Procurement Resourcesp. 287
Construction Manpower Allocationp. 288
Construction Start Time by Tradep. 291
19. Time Controlp. 293
General Requirementsp. 293
Control of Engineering Progressp. 306
Control of Equipment and Materials Procurement and Deliveriesp. 312
Control of Construction Progressp. 317
20. Progress Reportsp. 327
General Requirementsp. 327
Report Outlinep. 328
Engineering Statusp. 329
Procurement Statusp. 333
Contracting and Construction Statusp. 338
Overall Project Status Reportp. 342
Critical Path Analysisp. 344
Accomplishments, Problems, and Action Listp. 345
Photographsp. 345
Part V Data Bank
21. Data Developmentp. 349
The Importance of Data Analysisp. 349
Code of Accountsp. 351
Uniformity of Recordsp. 351
Continuous Analysisp. 351
Sorting Out Special Conditionsp. 353
Additional Factorsp. 354
22. Storage and Retrieval of Datap. 357
How to Store and Retrieve Cost and Scheduling Datap. 359
Graphs, Charts, and Unit Costsp. 360
Contractual Requirementsp. 360
Evaluation of Contractorsp. 363
Specific Project Conditionsp. 364
Project Comparisonsp. 365
Specific Project Datap. 365
Engineering and Consultantsp. 389
23. Lessons to Be Learnedp. 391
The Closing Reportp. 391
Learning From Mistakesp. 392
Performance Evaluationp. 395
Sharing Knowledgep. 396
Willingness to Improvep. 396
Hiding the Factsp. 396
Value Analysisp. 397
Performance of Consultants, Suppliers, and Contractorsp. 397
Comparison with Other Projectsp. 398
The Fight for Survivalp. 398
A Case Studyp. 398
Part VI The Future of Cost Engineering
24. Computer Applicationsp. 403
Computers in Project Managementp. 403
Project Economicsp. 404
Cost Estimatingp. 405
Cost Control and Forecastingp. 408
Planning and Schedulingp. 409
Data Bankp. 409
Graphicsp. 410
Communicationp. 410
25. Teaching Cost Engineeringp. 411
On-the-Job Trainingp. 411
Graduate Programp. 419
Cost Engineering Manualsp. 433
Appendices
Appendix A Checklist for Estimatingp. 437
Appendix B Special Considerations for Foreign Projectsp. 451
Appendix C Code of Accounts and the Work Breakdown Structurep. 459
Appendix D Estimating and Cost Control: A Study of Existing Conditions and Recommendations for Improvementp. 471
Appendix E Typical Project Activitiesp. 483
Indexp. 491
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