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Cost engineering – as an integral part of the investment and construction process

The problem of estimating the reliable cost of an investment and construction project and forming a realistic project budget is very relevant at the present time. After all, for any company working in the real estate sector, the key task is to reduce costs.

In turn, it is not enough to create a budget for an investment and construction project in order to achieve the project objectives and meet the expectations of the customer.

It is necessary to properly manage the cost at all stages of the project, starting with the development of the construction project concept and ending with the commissioning of the property.

Means of cost management of investment building projects based on the cost analysis of the size of current and future costs, volumes, cost cost control and project budget as a whole is value engineering.

Cost engineering is a comprehensive cost management of an investment and construction project.

The most important advantages of the cost engineering system include:

increasing the efficiency of investments due to the appearance of real levers of influence on the project estimate / budget;
performing work on schedule due to efficient planning of work and resources;
the reduction of production costs;
the emergence of real prerequisites for the transition to effective professional management of investment projects due to the concentration of technical and cost information on the project in the hands of cost engineering specialists.
The main effect can be obtained through a deep analysis of the factors that determine the cost of the project, and further use of this information to optimize design decisions.

The result of implementing the cost engineering system in companies will allow you to:

manage investments to achieve maximum economic impact;
ensure coordinated activities of all participants of the investment project in accordance with the business strategy.

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