Which estimating technique is best for early project stages?

💵 𝗖𝗼𝘀𝘁 𝗲𝘀𝘁𝗶𝗺𝗮𝘁𝗲𝘀 𝗮𝗿𝗲𝗻’𝘁 𝗴𝘂𝗲𝘀𝘀𝗲𝘀 — 𝗱𝗼 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄 𝘄𝗵𝗮𝘁 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 𝗰𝗼𝗻𝘁𝗶𝗻𝗴𝗲𝗻𝗰𝗶𝗲𝘀? 📌 𝗖𝗖𝗣 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 #3️⃣ Which type of cost estimate typically includes contingency reserves to account for identified risks? A. Rough Order of Magnitude (ROM) Estimate B. Definitive Estimate C. Conceptual Estimate D. Preliminary Estimate 💬 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 𝘆𝗼𝘂𝗿 𝗮𝗻𝘀𝘄𝗲𝗿 𝗯𝗲𝗹𝗼𝘄 & 𝗙𝗼𝗹𝗹𝗼𝘄 𝗺𝗲 for more Cost Engineering mastery tips! ✅ 𝗔𝗻𝘀𝘄𝗲𝗿 𝘁𝗼 𝗖𝗖𝗣 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 #2️⃣: 𝗕 – Analogous Estimating Explanation: Analogous estimating is used in early stages when limited information is available, based on historical data. #𝗖𝗖𝗣 #𝗖𝗼𝘀𝘁𝗖𝗼𝗻𝘁𝗿𝗼𝗹 #𝗔𝗔𝗖𝗘 #𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴𝗘𝗻𝗴𝗶𝗻𝗲𝗲𝗿 #𝗘𝘀𝘁𝗶𝗺𝗮𝘁𝗶𝗼𝗻

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

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.

What would you do with an extra $1 million in project margin every year? Engineering and estimating teams waste hundreds of hours (and piles of cash) on manual takeoffs and over-designed specs. An AI-driven value-engineering workflow flips that script: 1. Slash estimator hours by 80%: from ~1,000 to ~200 per year. 2. Trim $32k in direct labor costs for every estimator on staff. 3. Cut 5–15% of material spend through smarter design substitutions and waste reduction. Combine those gains and a mid-size firm can unlock seven-figure annual savings: without hiring, retooling the shop floor, or sacrificing quality. Ready to see what AI-powered value engineering looks like in action? Dive into the full breakdown (numbers included) https://lnkd.in/eAK5hZj5 Quick Note on the Graph: Industry benchmarks show that electrical subcontractors bidding the “standard” way win roughly one job out of five bids (about 20 percent). When those same firms shift to negotiated or design-build pursuits that foreground value-engineering ideas, the hit rate climbs to about one in three (≈ 33 percent). That is a 65 percent lift in conversion: a jump that drops wasted estimating hours and cushions margins.

💰 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

سؤال من أسئلة الاختبار الدولي CCP During cost estimating, an estimator is using a database of previous similar projects, adjusting the costs for size, location, and inflation. Which type of estimating technique is being used? A) Bottom-Up Estimating B) Analogous Estimating C) Parametric Estimating D) Definitive Estimating

Value Engineering is not about using cheaper materials. It is about smarter solutions. A Quantity Surveyor finds ways to achieve both cheaper materials and smarter solutions.

Why Understanding Economic Cost Is Essential in Cost Engineering In cost engineering, economic cost isn’t just about visible expenses—it also includes opportunity cost. This broader understanding is crucial for making informed decisions that maximize project efficiency and minimize hidden losses. #KMK_ProjectControls #AACEInternationalRP11R-88 #CostEngineering #EconomicCost #OpportunityCost #ProjectPlanning

💡 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.

🕒 Progress Override vs. Retained Logic – Which Scheduling Behavior Fits Your Project? In scheduling, how you handle out-of-sequence progress can dramatically impact your project timeline and claims defensibility. Here’s a quick comparison: 🔗 Retained Logic 📌 “Follow the plan.” • Honors original logic ties—even if work happens out of order • Best for safety-critical or regulatory-driven projects • #Example: You can’t install equipment until design is approved, even if field progress suggests otherwise ✅ Pros: Maintains network integrity, supports forensic delay analysis ⚠️ Cons: May delay successor work unnecessarily 🚧 Progress Override 📌 “Follow the field.” • Allows successor tasks to proceed regardless of predecessor status • Ideal for fast-track or overlapping scopes • #Example: Start piping even if structural steel isn’t fully complete ✅ Pros: Reflects real-world progress, keeps schedule moving ⚠️ Cons: Can distort logic paths, harder to defend in claims 🧠 Planner’s Rule of Thumb: • Use Retained Logic when compliance and defensibility matter • Use Progress Override when speed and flexibility are key Which one do you use—and why? #ConstructionScheduling #PrimaveraP6 #ProjectControls #EPCProjects #PlanningTools #DelayAnalysis #ProjectManagement #StudentLearning #CPM #EVM #PMP #PMI #PMO #PMS #Linkedin #PM