TOTAL PROJECT COST

PROFESSIONAL ENGINEERING
COSTS
 TOTAL PROJECT COST

Consists of all costs specific to a

project incurred prior to the start-up
of facility operation.
PROFESSIONAL ENGINEERING COST
This is when a civil engineer often
engaged to make a study and to render a
planning report on the contemplated
project including alternative solutions,
layouts, and locations along with the
initial estimates schemes of the probable
project cost.
COST ENGINEERING

Cost Engineering is the application of

scientific principles and techniques to
problems of business planning and
management of science, profitability of
analysis, project management, as well as
planning and scheduling.
There are different phases that affects the engineering
cost during the construction of the project:
The study & report phase
Implementation phase
Final design & construction phase
 STUDY & REPORT PHASE

This is when the planning and

estimated costing begins.
 IMPLEMENTATION PHASE

This is when the engineer applies all the

studies and reports takes to action.
FINAL DESIGN & CONSTRUCTION PHASE

As the final stages of the construction,

when additional surveying and
geotechnical engineering services may be
needed, As a result, this added budgetary
cost in the project.
CONSTRUCTION
COST
 CONSTRUCTION COST
study and report phase of the project that usually includes a
preliminary estimate of the construction cost for the
contemplated project and for alternative project
configurations.
estimated total cost of constructing the facility to be covered
by the proposed detailed design or construction supervision
services, excluding the fees and other costs of services, the
cost of land and right-of-way, and legal administrative
expenses of the agency.
 CONSTRUCTION COSTS TO INCLUDE:
You need to include everything that
comes with a price tag, whether they are
indirect or direct costs.
 TYPES OF
CONSTRUCTION COST

FIXED COST

This is defined as the cost spent once for a

particular point of time. The purchase of equipment,
machinery etc. comes under fixed cost assets.
 TYPES OF
CONSTRUCTION COST

TIME-RELATED COST

Time-related cost is the cost spend for a particular

activity for a given duration. The cost spent on
wages, equipment and building rents etc. comes
under this category.
 TYPES OF
CONSTRUCTION COST

QUANTITY-PROPORTIONAL COST

This type of cost will vary based on the quantities.

Materials costs are examples of quantity-
proportional costs.
LEGAL, LAND, ADMINISTRATION,
STAFFING, AND FINANCIAL
COSTS
 LEGAL, LAND, ADMINISTRATION, STAFFING
AND FINANCIAL COSTS
These costs, which include audits, the cost of
issuing bonds, land costs, and interest for
borrowed money during construction, are part of
the probable total project cost and can best be
estimated in cooperation with the client because
they are usually outside the knowledge and
control of the CE.
LEGAL & LAND COSTS
 ADMINISTRATIVE COST
Administrative expenses are expenses of an Rent
organization incurs that are not directly tied to a Utilities
specific core function such as manufacturing, Supplies
Taxes
production, or sales. These overhead expenses
Legal Counsel
are related to the organization, as opposed to Salaries and
individual departments or business units. Benefits
 STAFFING COST
Staffing costs are one of the most important, and
often most misunderstood, expenses in any
business. These are the wages you pay your
employees. In addition to wages, staffing costs
include things like payroll taxes, benefits, and
training.
 FINANCIAL COST
Financing costs are defined as the interest and
other costs incurred by the company while
borrowing funds. They are also known as “Finance
Costs” or “Borrowing Costs.” It includes interest
payments and fees the company pays the creditors
for taking on short-term or long-term financing
facilities.
CONTINGENCY
ALLOWANCE
CONTINGENCY ALLOWANCE
A specific amount of money,
usually a percentage of the
total cost, is reserved during
planning for the
management of identified
risks or known unknowns.
 TYPES OF CONTINGENCY
OWNER'S CONTINGENCY CONTRACTOR'S CONTINGENCY
An amount set Amount built into the
contractor's anticipated
aside for price for the project to
additions of to account for various risk
the project's cost factors that cannot be
or owner's risk otherwise accounted
for in a the schedule of
items. values
THERE ARE SEVERAL REASONS FOR CONTINGENCY ALLOWANCE,
INCLUDING:
Issues with supplies (price increases
or shortages, etc.)
Weather delays
Design changes
Inaccuracy in scope estimates
Subcontractor changes
IMPORTANCE OF CONTINGENCY ALLOWANCE
01 MITIGATE RISKS

ENSURES PROJECT
02 COMPLETION

03 PROVIDES FLEXIBILITY

ENHANCE STAKEHOLDER'S
04
CONFIDENCE