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Cost Engineering
Topics
> Who is Cost Engineering?

> Tendering and Contract Strategies

> Showcase Tendering

> Questions & Answers




                         >www.costengineering.eu
Added value in Cost Engineering


> Expertise

> Cost Data Development

> Education

> Professional Services

> Software solutions



                          >www.costengineering.eu
Expertise


> Preparing and validating estimates during the complete project
  life cycle
> Developing and supervising contract strategies
> Benchmarking
> Asset Validation / Verification
> Location factors surveys
> Planning, cost control, quantity surveying
> Risk Assessment
> Value management




                            www.costengineering.eu
Cost Data Development

>   Standard cost data for your estimates for onshore and offshore
>   Multi-disciplinairy
>   Various industries and geographical areas
>   Based on DACE labour norms (Western Europe)
>   Based on Vendor information, historical project data
>   Well documented data qualifications
>   Yearly maintenance updates possible
>   3rd Party sources:
     > Richardson data
     > DACE Price Booklet
     > Reed business (Dutch civil)
     > Van Leeuwen Buizen Pipe & Tube


                                www.costengineering.eu
Academy


>   Based on knowledge and experience
>   Individual attention in small groups
>   Courses to suit managers as well as estimators
>   From introducing terminology to estimating and cost management
>   Company specific cost engineering programs
>   Cost engineering software tools




                          >www.costengineering.eu
Cleopatra Enterprise


> The cost engineering tool for fast and accurate
  estimates for the complete project life cycle

> Thorough needs analysis

> Optimized implementation

> Customized training

> Global support



         >www.costengineering.eu
References

>   Bulk storage
>   Construction industry
>   EPC(M)
>   Food and Nutrition
>   Government
>   Gas industry
>   Heavy industry
>   Pharmaceutical industry
>   Petro-/chemical industry
>   Power industry
>   Mining & Minerals




                               >www.costengineering.eu
Tendering and Contract Strategies
   with Cleopatra Enterprise
Tendering & Contract Strategies


> What:
  >Manage purchase of materials and
   services on a project basis or long
   term relationship

> Who:
  >Purchase department
  >Project managers, Project leaders


              >www.costengineering.eu
What needs to be controlled?


> Control of scope (changes)
> Standardization of labour norms
> Prices, rates and margins




> Cube should stay within
  your budget


                     >www.costengineering.eu
Tendering & Contract Strategies


> How:
   > Choose the right contract strategy:
     > Project contract
     > Long term contract
  > Clearly define scope and scope changes
  > Apply unit-rates




              >www.costengineering.eu
Purpose of estimating with unit rates



> Cost calculation, budgeting and cost-
  control
> Qualifying and Quantifying of loss sources
> Capacity- and period planning
> Objectivity and deviation planning
> Effectiveness evaluation (management
  tool)
Unit-Rate


>   General description
>   Direct hours
>   Activity
>   Rate
>   Productivity
>   Indirect
>   Profit and risk




                          >www.costengineering.eu
Optimizing the Tendering process




www.costengineering.eu
Cleopatra Enterprise & Tendering


> Bidding phase:
  > Develop a request for quotation (RFQ) database with
    norms/unit-rates to familiarize Contractors with the
    Owner’s strategy and data.
  > Create reference estimate which defines the scope
  > Receive market quotes in Excel format from different
    vendors
  > Update reference estimate with quotes
  > Compare the various Bids


                   >www.costengineering.eu
Cleopatra Enterprise & Tendering


> Estimating & Execution phase:
  > Setup a contract database (knowledgebase) with
    unit-rates
  > Compare estimates with contract knowledgebase
  > Update contract database with new unit-rates
  > Input for cost control
  > Input for ERP system
  > Quantity surveying
  > Analyze price development for long term contracts


                   >www.costengineering.eu
Cleopatra Enterprise’s Added Value


> Fast and accurate estimating
  >   The whole tendering process in one program
  >   From request for quotation to final contract bid
  >   Use reference estimates to build new bids quickly
  >   Import quotes by suppliers
  >   Update estimate against new quotes
  >   Use standard cost data based on DACE Labour Norms
  >   Interface with 3D engineering and other software
  >   State of the art technology


                    >www.costengineering.eu
Cleopatra Enterprise’s Added Value


> Cost estimates as business tool
   > All investment information at your fingertips
   > Enhance your business intelligence by
      > Knowing your exact cost
      > Knowing the effects on cost of scope changes
      > Including allowances in estimates
      > Including indirect cost in estimates


> Use Cleopatra Enterprise for:
       >   Procurement
       >   Tendering
       >   Contracting
       >   Estimating


                            >www.costengineering.eu
Cleopatra has been awarded
‘Winner Champion of Excellence’ by
cutting construction costs with 23%
              for Shell
           [ref. Chemicals Quarterly]
Questions ?



                 Cost Engineering
HQ - PO box 25, 3330 AA Zwijndrecht, IJsselmeer 32e, 3332
             EX Zwijndrecht, The Netherlands
        T: +31 78 620 09 10 F: +31 78 620 91 42
             E-mail: info@costengineering.eu
                 www.costengineering.eu

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Cost Engineering for Tendering & Contracting

  • 2. Topics > Who is Cost Engineering? > Tendering and Contract Strategies > Showcase Tendering > Questions & Answers >www.costengineering.eu
  • 3. Added value in Cost Engineering > Expertise > Cost Data Development > Education > Professional Services > Software solutions >www.costengineering.eu
  • 4. Expertise > Preparing and validating estimates during the complete project life cycle > Developing and supervising contract strategies > Benchmarking > Asset Validation / Verification > Location factors surveys > Planning, cost control, quantity surveying > Risk Assessment > Value management www.costengineering.eu
  • 5. Cost Data Development > Standard cost data for your estimates for onshore and offshore > Multi-disciplinairy > Various industries and geographical areas > Based on DACE labour norms (Western Europe) > Based on Vendor information, historical project data > Well documented data qualifications > Yearly maintenance updates possible > 3rd Party sources: > Richardson data > DACE Price Booklet > Reed business (Dutch civil) > Van Leeuwen Buizen Pipe & Tube www.costengineering.eu
  • 6. Academy > Based on knowledge and experience > Individual attention in small groups > Courses to suit managers as well as estimators > From introducing terminology to estimating and cost management > Company specific cost engineering programs > Cost engineering software tools >www.costengineering.eu
  • 7. Cleopatra Enterprise > The cost engineering tool for fast and accurate estimates for the complete project life cycle > Thorough needs analysis > Optimized implementation > Customized training > Global support >www.costengineering.eu
  • 8. References > Bulk storage > Construction industry > EPC(M) > Food and Nutrition > Government > Gas industry > Heavy industry > Pharmaceutical industry > Petro-/chemical industry > Power industry > Mining & Minerals >www.costengineering.eu
  • 9. Tendering and Contract Strategies with Cleopatra Enterprise
  • 10. Tendering & Contract Strategies > What: >Manage purchase of materials and services on a project basis or long term relationship > Who: >Purchase department >Project managers, Project leaders >www.costengineering.eu
  • 11. What needs to be controlled? > Control of scope (changes) > Standardization of labour norms > Prices, rates and margins > Cube should stay within your budget >www.costengineering.eu
  • 12. Tendering & Contract Strategies > How: > Choose the right contract strategy: > Project contract > Long term contract > Clearly define scope and scope changes > Apply unit-rates >www.costengineering.eu
  • 13. Purpose of estimating with unit rates > Cost calculation, budgeting and cost- control > Qualifying and Quantifying of loss sources > Capacity- and period planning > Objectivity and deviation planning > Effectiveness evaluation (management tool)
  • 14. Unit-Rate > General description > Direct hours > Activity > Rate > Productivity > Indirect > Profit and risk >www.costengineering.eu
  • 15. Optimizing the Tendering process www.costengineering.eu
  • 16. Cleopatra Enterprise & Tendering > Bidding phase: > Develop a request for quotation (RFQ) database with norms/unit-rates to familiarize Contractors with the Owner’s strategy and data. > Create reference estimate which defines the scope > Receive market quotes in Excel format from different vendors > Update reference estimate with quotes > Compare the various Bids >www.costengineering.eu
  • 17. Cleopatra Enterprise & Tendering > Estimating & Execution phase: > Setup a contract database (knowledgebase) with unit-rates > Compare estimates with contract knowledgebase > Update contract database with new unit-rates > Input for cost control > Input for ERP system > Quantity surveying > Analyze price development for long term contracts >www.costengineering.eu
  • 18. Cleopatra Enterprise’s Added Value > Fast and accurate estimating > The whole tendering process in one program > From request for quotation to final contract bid > Use reference estimates to build new bids quickly > Import quotes by suppliers > Update estimate against new quotes > Use standard cost data based on DACE Labour Norms > Interface with 3D engineering and other software > State of the art technology >www.costengineering.eu
  • 19. Cleopatra Enterprise’s Added Value > Cost estimates as business tool > All investment information at your fingertips > Enhance your business intelligence by > Knowing your exact cost > Knowing the effects on cost of scope changes > Including allowances in estimates > Including indirect cost in estimates > Use Cleopatra Enterprise for: > Procurement > Tendering > Contracting > Estimating >www.costengineering.eu
  • 20. Cleopatra has been awarded ‘Winner Champion of Excellence’ by cutting construction costs with 23% for Shell [ref. Chemicals Quarterly]
  • 21. Questions ? Cost Engineering HQ - PO box 25, 3330 AA Zwijndrecht, IJsselmeer 32e, 3332 EX Zwijndrecht, The Netherlands T: +31 78 620 09 10 F: +31 78 620 91 42 E-mail: info@costengineering.eu www.costengineering.eu