Introduction to Cost Engineering for Sheds (Estimating Methods and WBS)
Learn about the 3 estimating methods and how Shedmate integrates design, pricing and engineering in real-time to optimize your Shed quotation process.
Understanding Cost Engineering and Estimating Methods
1. Introduction to Cost Engineering 0:00
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Overview of the session's focus on cost engineering.
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Encouragement for those familiar to skim through.
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Topics covered: cost engineering definition, estimating methods, and work breakdown structure.
2. Importance of Cost Engineering 1:02
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Quote from Chris Dominensky about the lack of understanding of costs in manufacturing companies.
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Discussion on common pitfalls in cost estimation and pricing strategies.
3. Definition of Cost Engineering 2:51
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Cost engineering defined as the management of project costs.
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Activities involved: estimating, cost control, forecasting, investment appraisal, and risk analysis.
4. Estimating Methods Overview 3:59
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Introduction to different estimating methods.
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Importance of understanding these methods for effective pricing.
5. Order of Magnitude Estimate 4:14
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Description of the order of magnitude estimate as a rough ballpark figure.
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Example of estimating costs for a machinery shed.
6. Preliminary Estimate 6:22
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Explanation of preliminary estimates based on historical data and schematic designs.
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Accuracy range of 10-25%.
7. Definitive Estimate 7:49
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Definition of definitive estimates involving detailed engineering and site-specific information.
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Accuracy range of around 5%.
8. Role of Shedmate in Estimating 8:04
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Explanation of how Shedmate integrates design, structural engineering, and cost engineering.
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Benefits of real-time quoting and accurate estimates.
9. Work Breakdown Structure (WBS) 10:00
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Definition of WBS as a hierarchical decomposition of projects.
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Importance of WBS in managing project deliverables and timelines.
10. Reflection on Work Breakdown Structure 11:03
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Encouragement to reflect on individual work breakdown structures based on business type.
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Mention of the upcoming ABC curve analysis.
11. Introduction to ABC Curve Analysis 12:28
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Transition to discussing the ABC curve analysis.
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Importance of understanding cost distribution and focusing on key areas.