Computer-Aided Design— A new tool for the cost engineer?

Abstract

Cost engineers have long known that the design of a project is likely to be the paramount factor which determines the final cost. Yet, effective cost control during the conceptual and detailed design phases of a project are perhaps the most difficult aspects of cost control. While the cost of the manhours required to perform the design work can be controlled using standard techniques, control of the cost implications of design decisions requires a close working interface between design and cost engineering which is seldom achieved. The rapidly changing world of computing has, once again, produced a computer capability of great interest to the cost engineer, one which provides effective integration of design and cost engineering. The latest generations of Computer-Aided Design (C.A.D.) systems have reached a level of interactive and flexible operation such that many applications can be developed. This article will describe how C.A.D. technology has been successfully applied to cost control of large projects in the oil industry. Basic principles of design and cost modelling, database construction and user-machine interface will be discussed. The article will show how C.A.D.-based systems can be developed for such cost engineering tasks as cost estimating, change control, design/cost optimization studies, cost forecasting and cost reporting.