Cost Engineering for Tendering & Contracting

Cost Engineering

>www.costengineering.eu

Topics

> Who is Cost Engineering?

> Tendering and Contract Strategies

> Showcase Tendering

> Questions & Answers


> Expertise

> Cost Data Development

> Education

> Professional Services

> Software solutions

Added value in Cost Engineering

www.costengineering.eu

> 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

Expertise


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

http://www.costengineering.nl/pdf/knb/00_CostEngineering_Knowledgebases.pdf


> 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

Academy

http://www.costengineering.nl/pdf/academy/00_Cost_Engineering_Academy.pdf


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

> Thorough needs analysis

> Optimized implementation

> Customized training

> Global support

Cleopatra Enterprise


> Bulk storage

> Construction industry

> EPC(M)

> Food and Nutrition

> Government

> Gas industry

> Heavy industry

> Pharmaceutical industry

> Petro-/chemical industry

> Power industry

> Mining & Minerals

References

Tendering and Contract Strategies

with Cleopatra Enterprise


> What:>Manage purchase of materials and

services on a project basis or long term relationship

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

Tendering & Contract Strategies


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

What needs to be controlled?

> Cube should stay within your budget


> How:> Choose the right contract strategy:

> Project contract> Long term contract

> Clearly define scope and scope changes> Apply unit-rates

Tendering & Contract Strategies

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


Optimizing the Tendering process


> 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

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

Cleopatra Enterprise & Tendering


> 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

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

Cleopatra Enterprise’s Added Value

Cleopatra has been awarded ‘Winner Champion of Excellence’ by cutting construction costs with 23%

for Shell

[ref. Chemicals Quarterly]

Questions ?

Cost EngineeringHQ - 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: [email protected]


Documents

Cost Engineering for Tendering & Contracting