Attention to detail sets great Cost Engineers apart!💡 Here are 5 essential tips every Cost Engineer should master to enhance efficiency, accuracy, and overall project success. 💬 Know someone in Cost Engineering who should see this? Tag them below! #ProjectControls #CostEstimation #ProjectCosting #EngineeringEstimates #SmartEstimating #CostOptimization #ValueEngineering #ProjectForecasting #ConstructionManagement #TrainingOpportunity #InfrastructureDevelopment #CapitalProjects #MegaProjects #ProjectDelivery #ProjectPlanning #ConstructionEngineering #ProjectExecution #RiskManagement #LagosTraining #CEPCS
5 Tips for Cost Engineers to Boost Efficiency and Accuracy
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⚡ 𝗖𝗖𝗣 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 #2️⃣ Which estimating technique is most appropriate during the early stages of a project when detailed information is not available? A. Bottom-Up Estimating B. Analogous Estimating C. Parametric Estimating D. Three-Point Estimating 💬 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 𝘆𝗼𝘂𝗿 𝗮𝗻𝘀𝘄𝗲𝗿 𝗯𝗲𝗹𝗼𝘄 & 𝗙𝗼𝗹𝗹𝗼𝘄 𝗺𝗲 for daily CCP and Cost Engineering insights! ✅ 𝗔𝗻𝘀𝘄𝗲𝗿 𝘁𝗼 𝗖𝗖𝗣 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 #1️⃣: 𝗕 – Scope Baseline Explanation: The Scope Baseline defines the project scope, which is essential for accurate cost estimation. #𝗖𝗖𝗣 #𝗖𝗼𝘀𝘁𝗖𝗼𝗻𝘁𝗿𝗼𝗹 #𝗔𝗔𝗖𝗘 #𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴𝗘𝗻𝗴𝗶𝗻𝗲𝗲𝗿 #𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
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Why Project and Financial Management Matters in Engineering: - Manage finite resources: time, budget, manpower, materials. - Anticipate risks and implement mitigation strategies. - Ensure project viability from technical and financial standpoints. Learn more: https://lnkd.in/eQYdnxfP
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Earned Value Analysis (EVA) is a method that allows the project to measure the amount of work actually performed on a project beyond the basic review of cost and schedule reports. what is the difficult element to be collected in order to apply EVA with in the construction company? is it Planned value (PV) ? Earned Value (EV) ? or Actual value (AV) ? Noted that EVA is locating an accurate mirror of a particular project. This shows the project's current & future state in terms of budget and schedule for sharp follow-up & Decision-making.
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#CriticalPath #Scheduling #Planners #PlanningEngineer Recently, I received a comment from the Client that in the baseline program, FF is being used in the Critical Path. 👉 Should we rely more on Start-to-Start (SS) or Finish-to-Finish (FF) relationships? Both have value, but in my experience, FF provides stronger control over the true critical path. Here’s why: ⚙️ Start-to-Start (SS) • Works well for overlapping sequential tasks (excavation + pipe laying). • Provides early visibility of slippages. • Easier for site teams to understand. ❌ The limitation: SS often introduces artificial starts and “dangling logic.” It shows dependency at the start, but does not necessarily drive the completion date, which is what contracts and milestones are concerned with. ⚙️ Finish-to-Finish (FF) • Directly ties activity completion to another’s completion. • If one activity slips, the dependent activity’s finish—and potentially project handover—slips too. • Perfect for commissioning, curing, inspections, and testing—where only the finish alignment matters. • Stronger in forensic analysis and claims: delays are tracked where they truly hurt → at completion. ✅ This means FF gives clearer visibility of risks to contractual milestones and better withstands delay claim scrutiny. 📌 While SS has its place for overlapping tasks, FF is more robust when modelling the critical path because: • Finishes measure projects, not starts. • Completion dates drive client satisfaction, liquidated damages, and handovers. • FF aligns the schedule with real project control points. 👉 In short: FF > SS for critical path integrity and defensibility. 💬 Curious to hear from other planners: Do you lean more on SS or FF when you want to safeguard your critical path logic?
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💰 𝗖𝗖𝗣 𝗤𝗨𝗘𝗦𝗧𝗜𝗢𝗡 #12 📉 During cost analysis, the project is trending over budget due to material price escalation. What is the BEST action for the cost engineer? ➤ A. Update the cost baseline immediately ➤ B. Perform a detailed variance analysis and recommend corrective actions ➤ C. Apply a management reserve to cover the increase ➤ D. Escalate the issue to senior management without analysis ✔ 𝗔𝗻𝘀𝘄𝗲𝗿 𝘁𝗼 𝗖𝗖𝗣 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 #11: 𝗖 – Apply value engineering to reduce costs without affecting quality 𝗘𝘅𝗽𝗹𝗮𝗻𝗮𝘁𝗶𝗼𝗻: Value engineering helps optimize cost without sacrificing functionality or quality. Get more challenges from here: https://lnkd.in/dPFFCJGu #𝗖𝗖𝗣 #𝗔𝗔𝗖𝗘 #𝗖𝗼𝘀𝘁𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 #𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝗖𝗼𝗻𝘁𝗿𝗼𝗹𝘀 #𝗘𝗮𝗿𝗻𝗲𝗱𝗩𝗮𝗹𝘂𝗲
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💡 𝗣𝗲𝗿𝗰𝗲𝗻𝘁𝗮𝗴𝗲 𝗼𝗳 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻 (𝗣𝗢𝗖) As year ends, the Percentage of Completion (POC) method is important for construction companies. It ensures accurate revenue recognition and helps to assess profitability. 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗣𝗢𝗖? The POC method measures the progress of a project by comparing the actual costs [AC] to date with the estimate cost at completion [EAC]. This approach provides accurate reflection of revenue during the project lifetime. 𝗛𝗼𝘄 𝘁𝗼 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗣𝗢𝗖? 𝟭. 𝗗𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲 𝗘𝘀𝘁𝗶𝗺𝗮𝘁𝗲𝗱 𝗖𝗼𝘀𝘁𝘀 𝗮𝘁 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻 [𝗘𝗔𝗖]: Sum all costs expected to complete the project. 𝟮. 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗔𝗰𝘁𝘂𝗮𝗹 𝗖𝗼𝘀𝘁𝘀 [𝗔𝗖] 𝘁𝗼 𝗗𝗮𝘁𝗲: Add up all costs incurred up to the current date. 𝟯. 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗣𝗲𝗿𝗰𝗲𝗻𝘁𝗮𝗴𝗲 𝗼𝗳 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻 [𝗣𝗢𝗖]: Divide the [AC] by [EAC]. 𝟰. 𝗥𝗲𝗰𝗼𝗴𝗻𝗶𝘇𝗲 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: Multiply the total contract revenue by the percentage of completion [POC]. 𝗘𝘅𝗮𝗺𝗽𝗹𝗲: Total Estimated Costs [EAC]: 800,000 SR Costs Incurred to Date [AC]: 400,000 SR Percentage of Completion [POC]: 400,000 / 800,000 = 50% Revenue Recognized: 50% of 1,000,000 SR = 500,000 SR By using the POC method, the company can recognize 500,000 SR in revenue, reflected as the progress made on the project. 💡 Tip: Higher [POC] can be achieved from increasing the actual costs [AC] or reducing the [EAC]. Meanwhile, higher revenues can come from increasing Contract Value by approving Variation Orders /Claims from Client.
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📊 Baseline vs. Current Schedule 🔹 Baseline – Original approved plan 🔹 Current – Updated progress with changes Comparing both helps track delays and manage the project effectively. #ProjectManagement #Scheduling #ProjectControls #Construction #PrimaveraP6
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Do you know where project costs really go? Every project budget is shaped by a few key cost centres and understanding them early can make or break delivery. Here are the 5 main cost heads every project manager needs to keep in check: • Labour • Materials • Overheads • Plant • Subcontractors Swipe through the carousel to see a breakdown of each. 👉 Which of these cost heads do you find the hardest to control on your projects? #ProjectControls #CostManagement #ProjectManagement #Construction #Engineering
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When Cost Forecasting Becomes the Project’s Safety Net A cost engineer I know was assigned to a major industrial project that was tracking fine - until a sudden market price surge in steel threatened to break the budget. The challenge wasn’t just the price increase; it was the lag in reporting. Procurement data took weeks to flow into the financial forecast, meaning by the time the risk appeared in reports, it was already a reality. They implemented a real-time cost tracking dashboard pulling live data from procurement and site progress reports. This gave the team: ✅ Early alerts on material price changes ✅ Forecast updates within 48 hours instead of monthly cycles ✅ The ability to approve cost-saving substitutions quickly As a result, the project contained the overrun to under 3% — well below the industry average for such shocks. Key points for cost engineers: ✅ Forecasts should be living tools, not static reports ✅ Integrating cost data with progress reporting shortens reaction time ✅ Proactive communication with procurement can prevent small issues from becoming large losses #CostEngineering #ProjectControls #CostManagement #ConstructionFinance #Forecasting #BudgetControl #ProjectManagement #ValueEngineering #RiskManagement #ProjectDelivery #CapitalProjects #ProjectPlanning #CostEstimation #CostControl #EngineeringManagement
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In our fast-paced projects, it’s easy to focus only on deadlines and deliverables, but clear communication and proper documentation are just as important as technical skills. A well-documented decision today can prevent conflicts months later. Clear instructions not only save hours of rework but also protect the quality of the final outcome. Respectful follow-ups with colleagues and stakeholders help maintain trust and ensure that everyone is aligned toward the same goal. In the end, technical knowledge gets the job done, but communication and documentation keep the entire project moving forward smoothly and professionally. #MEP #MEPEngineering #ElectricalEngineering #MechanicalEngineering #CivilEngineering #ConstructionProjects #Infrastructure #ProjectManagement #EngineeringLife #EngineeringManagement #QualityControl #SiteEngineering #TechnicalOffice #BuildingServices #ProjectExecution #ConstructionManagement #EngineeringTips #WorkplaceExcellence #ProfessionalGrowth #CareerInEngineering
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