CEC 004 – CONSTRUCTION COST ENGINEERING

BUDGET
PROJECT MANAGEMENT INFORMATION SYSTEMS PMIS keeps track of all costs associated with
individual tasks since the entire project's budget
-gathers, organizes, and uses project data via one or
depends on the estimates of each task.
more software applications.
Thus, for more accurate budget estimation - the
PMIS SOFTWARE FEATURES
customer's budget, resources allotted, and time
-information collection available is taken into consideration, and then the
budget is generated.
- work authorization
CONTROL AND PERFORMANCE
- tools for scheduling and delivery gathering
PMIS provides performance management by
- reporting of Automated Key Performance Indicators analyzing and controlling cost and performance,
(KPI) updating existing plans as new information becomes
PMIS IS USED FOR available or existing data changes, and providing
what-if scenarios for the project manager.
-Project Management Scope
REPORTING AND COMMUNICATION
-Integration Management
It facilities effective communication among team
-Project Time Management members.
-Project Cost Management The project management information system
generates reports for every task, creates charts and
-Project Quality Management
graphs of all the collected information and analyzes
-Communications Management data that can be shared with the team and
stakeholders.
ESSENTIAL FEATURES OF PMIS
INTEGRATION AND EASE OF USE
When a tsunami of information needs to be organized
and tracked for the smooth progress of a project, a The easier it is to operate a PMIS, the less cost and
project management information system becomes a time it takes to train.
necessary tool to help with efficient project
PMIS might even access data from several projects for
management.
multi-project analysis and integrate it with other
SCHEDULE AND PLANNING systems such as inventory, payroll, and so on.

-It is one of the primary functions of project HOW DOES PMIS IN PROJECT MANAGEMENT
management. WORK?

-PMIS computes the critical path, slack times, and DURING PRE-INITIATION PHASE
early and late schedules.
A PMIS can aid in the following areas:
RESOURCES MANAGEMENT
-Estimating a preliminary budget for the project that
Project Management Information System makes this includes cost and resource estimations.
management of resources easy by including:
-Outlining the scope of the project and preparing
-Resources Input bids.

-Allocation -Scheduling project activities and allocating them to

the appropriate team members.
-Resource Leveling
-Organizing project data and preparing required
reports for presentation to key project stakeholders
CEC 004 – CONSTRUCTION COST ENGINEERING
ADVANTAGES OF PMIS
DURING PLANNING PHASE -Keeps the project on track
A PMIS can aid in the following areas: -Fosters better collaboration and teamwork
-Extensive project scheduling, including analysis of -gives a competitive advantage
critical paths and associated tasks.
-manage diverse projects at the same time.
-Cost and budget management assistance, including
HOW TO CHOOSE THE RIGHT PMIS
the implementation of budget analysis, cost controls,
and other KPΙ metrics -suitability
-Conducting resource planning for the overall project, -Ease of use
identifying existing resources, and developing a
backup plan for those that may be required later -features

-Creating baseline metrics for the project's time, cost, -mobile application
and scope -communication
DURING EXECUTING STAGE - third-party application
A PMIS is essential for the smooth execution of CHALLENGE IN IMPLEMENTING PMIS
projects
-lack of coordination
-The team discussions, documents, and files are all
stored in a unified hub that all stakeholders can -wasted resources
access safely and easily.
-Lack of interest from teams
-it allows for an easy comparison of current project
-No required skillsets
data with the project's baseline estimations.
-Project managers can evaluate cost, budget, and
schedule projections halfway through the project and
make changes based on current project requirements.
-it helps in efficiently on completing several project
modules including project reporting, cost
management, material management, and project
performance measurement.
DURING PROJECT REVIEW AND TURNOVER
PMIS helps assess whether the project goals and
objectives were met during the project review and
closure stage.
-allows for a thorough evaluation to confirm that the
project's goals were fulfilled or exceeded.
-all project information is organized and stored in a
centralized hub for future access and evaluation
-All project information is archived for future
projects.
-aids in producing productivity analysis metrics and
final project reports for stakeholder decision-making.
CEC 004 – CONSTRUCTION COST ENGINEERING
Assembly Unit Costs - are used to eliminate
repetitive calculations and for easier use where a
UNDERSTANDING COST AND ITS ELEMENTS similar type of work is to be conducted multiple
times throughout a project.
 Planning – is the starting point in the
project management process. Ex: A similar but more complex example is drywall
 The cost of a project will highly depend cost in building construction. Building dry walls, one
on its duration. may choose to measure and calculate how many
 Duration of a project depends in its cost: lineal feet of studs, how many square feet of panels,
The resources Allocated to its activities. how many lineal feet of joint tape, how many pieces
of screws, and the amount of mudding compound
Any cost in comprised of two elements; a dollar that would be used. Then the related labor and other
amount and an associated quantity. costs involved for each one of these tasks will be
calculated to determine the cost of building that wall
 Cost and price conception changes based section.
on who is the seller/provider and who is
Cost Line Items- All cost items that are included in a
the buyer/user.
specific cost or the decomposed parts of a cost.
Elements of a Cost Example for Unit Cost Conversions, Assembly Unit
Cost, and Performance Assumptions
 Cost is a rate, It is the proportion of a
dollar amount to a quantity of a product
further defined by its unit.
 It is also the amount of resources needed
to produce a specific quantity of product.

Unit Cost Conversion for Materials

Labor and M/E Unit Costs

Price - includes a profit (a margin) added to the cost.  Labor and M/E Unit Costs to cast this
In other words, Price is the Cost-plus Profit. concrete in place, several other resources,
namely labor, machinery/equipment, and
miscellaneous others will be required,
The cost versus price perspectives of the buyer (or besides materials. To calculate labor and
user) and the seller of the product (or service) are M/E costs, both their required quantities
quite different. (i.e., required durations, most commonly
in hours) and their unit costs (i.e., hourly
rates) applicable to those quantities will
be required.
Unit cost—or unit price—is the cost/price of a
good/product for one/single commonly used
quantity unit.
CEC 004 – CONSTRUCTION COST ENGINEERING

Output

 Also referred to as Hourly Output, the

output rate for labor and/or M/E is the
quantity of a specific work that a resource
—and/or an assembly of resources—
performs during a time period.

Resource (Labor or M/E)- Hours

 This defines the time it takes that

resource to produce one unit of the end
product. It is the unit wise reversed
output rate. Using the painter and
backhoe examples:

o It would take 1/25 painter-hours to paint

ONE square foot of wall
o It would take 1/6 excavator-hours to
excavate ONE cubic yard of silty clay

 Value is a subjective—qualitative—
variable the perception of which may
widely vary among project stakeholders
and key participants.
 Although becoming increasingly popular,
setting value(s) as a measure of project
success requires a delicate consensus
among project stakeholders and key
participants.