The Chartered Cost Engineer

By Zulk Shamsuddin

A cost engineer is responsible for projecting cost and expense reports for the production process, identifying and mitigating risks, and developing strategic techniques to reduce excessive financial loss for project buildings. Cost engineers conduct data and statistical analysis to measure time deliverables and quality checks to ensure profitability and adherence to business objectives. They research and negotiate materials from trusted suppliers and vendors with high-quality products that would meet construction designs and client specifications.

The Chartered Cost Engineer ™ (ChCE) is a gold-class certification that demonstrates the attainment of a defined level of technical knowledge in project cost management, professional practice, and ethical behaviour.
It forms the basis of the assessment that applicants must pass to gain the Chartered Cost Engineer status and inclusion in the Register of The Global Academy of Finance and Management ® Certified / Chartered Professionals.

Stand out above the rest with the Chartered Cost Engineer certification and get noticed by top recruiters.

• Language: English
• Publisher: Lulu.com
• Release date: Dec 3, 2020
• ISBN: 9781716366093

Book preview

Copyright © 2020 Zulk Shamsuddin, PhD / GAFM ACADEMY

All rights reserved.

ISBN: 978-1-716-36609-3

INTRODUCTION

A cost engineer is responsible for projecting cost and expense reports for the production process, identifying and mitigating risks, and developing strategic techniques to reduce excessive financial loss for project buildings. Cost engineers conduct data and statistical analysis to measure time deliverables and quality checks to ensure profitability and adherence to business objectives. They research and negotiate materials from trusted suppliers and vendors with high-quality products that would meet construction designs and client specifications.

The Chartered Cost Engineer ™ (ChCE) is a gold-class certification that demonstrates the attainment of a defined level of technical knowledge in project cost management, professional practice, and ethical behavior.

It forms the basis of the assessment that applicants must pass to gain the Chartered Cost Engineer status and inclusion in the Register of The Global Academy of Finance and Management ® Certified / Chartered Professionals.

Stand out above the rest with the Chartered Cost Engineer certification and get noticed by top recruiters.

Benefits of becoming a Chartered Cost Engineer

Personal recognition from your peers in project management

Enhanced CV to stand out in the job market, get noticed by top recruiters.

A framework for the development of your career.

International recognition.

Assurance for clients of high standards and ethical practice.

Use of the post-nominal ChCE or Chartered Cost Engineer ™

Increased understanding, helping you to work more effectively.

Introduce yourself with this exclusive membership card during networking, business events, conference, anywhere. Membership has its privileges.

Importance of Certification

Certificates and certifications, the names for these credentials sound confusingly similar. But there are important differences. Here’s what you need to know about these resume-enhancing options and how they might advance your career.

What is a Certificate?

Earning a certificate is about education. Certificates are academic credentials awarded by colleges, universities, or other educational institutions. Students in certificate programs learn new knowledge in a specific subject or discipline and earn a certificate by successfully completing the coursework. An ideal student for a certificate program is someone who is willing to go through the experience of growing their own skillset, being real about what they want to learn, and working with others, says Jennifer Diamond, an instructor for the UW Certificate in Project Management. Many certificate programs have few, if any, admission requirements, making them an excellent option if you want to move forward in your career. The programs are usually noncredit and take less time to complete than a degree. Certificates are commonly listed on resumes as education, and some meet education requirements for first-time or renewed certifications.

What Is a Certification?

When you have the professional knowledge you need, a certification allows you to prove it.  Certifications indicate mastery of skills or standards. Professional certifications are granted by industry groups or career-related organizations. These groups assess your qualifications, usually through an exam or application process. Many certifications include the privilege to use a related designation following your professional title. Certification differs from a license, which permits you to work in a certain profession and is usually issued by a government or regulatory agencies.

The Value of Certification

Certification helps in learning new technologies, skills, and abilities for a specific promotion. Earning a new certification or an advanced certification in a particular area of expertise can help in advancing your career.

Professional certification shows consumers and potential employers that you are committed to your profession and are well-trained. It gives them confidence in your abilities and knowledge.

Certification makes you more valuable to employers, so you can expect to earn more than someone without certification.

Certifications can give you the chance to learn needed skills, and be a quick way to show employers you have those skills.

Application for Certification

https://gafm.com.my/application-for-certification/

Chartered Cost Engineer is an experienced professional who has earned the accredited gold-standard Chartered Cost Engineer ™ credential from The GAFM Academy of Finance and Management ®. This credential is offered to the individual with several years of experience specifically in project cost management.

The credential is relevant for individual holding positions associated with project cost estimation, quantity surveyor, or individual involved with planning and controlling a project’s budget. Cost management activities are conducted throughout the project life cycle, from planning and budget allocation to controlling costs during project execution and assessing a project’s cost performance upon completion.

Cost Management as a Career

Professional cost managers, sometimes called quantity surveyor, cost engineer, and those performing role work on large projects (such as construction). But project managers also need an understanding of cost management strategies and techniques to perform their duties. Cost management requires creative problem-solving skills and a thorough understanding of the factors that affect project costs. As such, cost managers are in high demand and have opportunities to progress to lead project managers.  One popular cost management profession is cost accounting, which is determining the costs focused on creating a product or providing a service. Cost accountants deal with budget preparation and profitability analysis, and their main responsibilities include collecting and communicating cost-related data to aid management decision-making and create financial transparency.

Chartered Cost Engineer typically studies accounting or finance at the undergraduate level, and many pursue master’s degrees in business administration or finance with a specialization in accounting. They typically need a license to advance their careers, which can be obtained after meeting some combination of work and educational requirements.

Chartered Cost Engineer Roles and Responsibilities

Whether you are developing a new product, designing a facility, or changing a key process, it’s challenging to forecast and manage project costs effectively.

Cost management includes a number of activities conducted at different phases during the project life cycle. It’s important to include the cost management function while developing project plans so that you build solid financial controls into the project structure. Here are some key terms and stages relevant to cost management:

Planning: Using the work breakdown structure provided by the Project Manager, the Chartered Cost Engineer will determine the total cost of the project resources needed to complete the project.

Estimating: Chartered Cost Engineer must be competent on calculating or predicting the expected total cost of completing a project.

Budgeting: Provide cost estimate to complete the project. Chartered Cost Engineer typically authorize budgets in tandem with schedules, so executive management can assess cost performance at specific points.

Financing and Funding: The process of requesting, authorizing, and receiving money for a project.

Cost Management: The general practice of overseeing project expenditures and making cost-related decisions throughout the project life cycle.

Controlling: Addressing cost variations to avoid cost overruns.

Job Control: Controlling project expenditure by comparing costs predicted by the cost estimate and costs actually being incurred.

Scheduling: Chartered Cost Engineer determine a project’s cost performance by using a schedule that compares the expected expenditure to the actual costs the project is incurring at any point in time.

Accounting: The practice of recording expenditures and reconciling transactions.

General and Task Management

Determine cost estimate targets during the design and development process, recommending cost effective solutions

Gather proposals, specifications and related documents and liaise with stakeholders in order to convert specifications to cost estimates for new and current products

Utilize cost methodologies and tools and appropriate software models and packages to prepare and maintain reliable and accurate data

Establish cost estimates of production processes and tooling costs and review alternatives or put forward recommendations for improvement

Assess cost effectiveness of products and track actual costs relative to budget and report status on a regular basis to ensure costs are in line with forecasts

Monitor and review data and information to detect or assess problems

Investigate and identify cost reduction opportunities through cost analysis review

Contribute to cost monitoring and reporting systems and procedures and monitor trends

Prepare cost and expenditure statements, reports and other necessary documentation at regular intervals to share with others in the business

Support all activities in cost estimating and take a proactive approach towards improvements

Projects versus Operations

In some organizations, everything is a project. In other organizations, projects are rare exercises in change. There's a fine line between projects and operations, and often these entities overlap in function. Consider the following points shared by projects and operations:

Both involve employees

Both typically have limited resources: people, money, or both

Both are hopefully designed, executed, and managed by someone in charge

So, what is a project-and how do you know if you are managing one?  A project as 'a temporary endeavor undertaken to create a unique product or service.'  Temporary means that the project has an end date. Unique means that the project's end result is different than the results of other functions of the organization. Often projects are confused with general business duties: marketing, sales, manufacturing, and so on. The tell-tale sign of a project is that is has an end date and that it's unique from other activities within the organization.

Some examples of projects include:

Designing a new product or service

Converting from one computer application to another

Building a new warehouse

Moving from one building to another

Organizing a political campaign

Designing and building a new airplane

The output of projects can result in operations. For example, imagine a company creating a new airplane. This new airplane will be a small personal plane that would allow people to fly to different destinations with the same freedom they use in driving their car. The project team will have to design an airplane from scratch that may be similar to a car. This project, to create a personal plane, is temporary, but not necessarily short-term. It may take years to go from concept to completion but the project does have an end date. A project of this magnitude may require hundreds of prototypes before a working model are ready for the marketplace. In addition, there are countless regulations, safety issues, and quality control issues that must be pacified before completion.

Once the initial plane is designed, built, and approved, the end result of the project is business operations. As the company creates a new vehicle, it would follow through with its design by manufacturing, marketing, selling, supporting, and improving its product. The initial design of the airplane is the project-the business of manufacturing it, supporting sold units, and marketing the product constitutes the ongoing operations part of the business.

Operations are the day-to-day work that goes on in the organization. A manufacturer manufactures things, scientists complete research and development, and businesses provide goods and services. Operations are the heart of organizations. Projects, on the other hand, are short-term endeavors that fall outside of the normal day-to-day operations an organization offers.

Once the project is completed, the project team