The study modules for this course introduce students to the key indicators for a general understanding of project costing and project controls for civil engineering projects. It presents an overview of the main challenges and opportunities associated with project execution, risk, economics, estimating, tendering, planning and scheduling for project success. Factors that need to be familiar to and understood by project cost engineers are also outlined.

On completion of this unit the participant will:

1. Gain insights into concepts of project and facility life cycles and their use in

evaluating project viability.
2. Have a better understanding of various types of Project Delivery Systems

(PDS) and the most appropriate of these to recommend for various

contracting situations and circumstances.
3. Have an awareness the role of Risk in project evaluation and decision

making and techniques for formulating appropriate strategies to minimise

or modify potential risks. Techniques for quantifying and ranking risk and

mapping the results to develop strategies for applying risk reduction.
4. Have a better understanding of project controls and their practical

application to monitoring, reporting and forecasting the progress of a

project.

5. Have an understanding of the technique for comparing economic

alternatives, particularly those that occur in different time frames.

6. Be able to prepare order of magnitude estimates, tender estimates with

quantity calculations, production rates etc. for project scope and tender

submission.

7. Have a better understanding of the basis for planning engineering

construction projects and a knowledge of setting such information into a

construction schedule.

8. Be able to apply computer techniques and cost engineering tools to

manage quantities of information for accurate estimating and reporting

during project execution.

9. have an overview of types of contracts, tender submission, evaluation and

application related to project costing.

Teaching Methods:

Lectures and
Tutorials/Labs

Assessment:

Up to six minor assignments (worth 60%) and
one major assignment (worth 40%)

Generic Skills Outcomes:

On successful completion of this unit the student should have the:

1. Ability to apply knowledge of basic science and engineering fundamentals.
2. Ability to communicate effectively, not only with engineers but also with the

       community at large.
   3. In-depth technical competence in at least one engineering discipline.
   4. Ability to understand problem identification, formulation and solution.
   5. Ability to utilise a systems approach to design and operational performance.
   6. Ability to function effectively as an individual in a project team, have the

capacity to be a leader or manager as well as an effective team member.
7. Understanding of the social, cultural, global and environmental

responsibilities of the professional engineer, and the need for

       sustainable development.
   8. Understanding of the principles of sustainable design and development.
   9. Understanding of professional and ethical responsibilities and have a

commitment to uphold these responsibilities.
10. Expectation of the need to undertake lifelong learning, and capacity to do

so.

Content:

Projects & project life cycles, Project delivery systems & commercial options, Introduction to engineering economics, interest / DCF / cash flows / escalation, Measurement of quantities (Australian Standard AS 1181), Work planning & the development of crews and production rates, Work scheduling (bar charts / CPM / PERT), Cost estimation (order of magnitude / preliminary / definitive / detailed), Commercial aspects of Standard Conditions of Contract (AS 2124 and AS 4000 series), Risk Analysis AS / NZS 4360, Time & cost control during project execution and ongoing activities.

References:

Fails Management Institute, Financial Management for Contractors, McGraw-Hill, New York, 1981.
Rogers, M, Engineering Project Appraisal, B Publications, 2001.

Project Costing

Unit Code: HES6175

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