‘Why cost engineers should be involved from project inception’

Does one require special skills to be called a cost engineer? A cost engineer is a professional that has undergone the relevant training and that is what the institute stands for. It is a member of the International Cost Engineering Council (ICEC). The ICEC is the council that regulates the art and science of cost […]

Does one require special skills to be called a cost engineer?

A cost engineer is a professional that has undergone the relevant training and that is what the institute stands for. It is a member of the International Cost Engineering Council (ICEC). The ICEC is the council that regulates the art and science of cost engineering, engineering valuation, quantity surveying and project management.

What has changed since the institute held its last national technical conference?

The profession is internationalized now. The Council for the Regulation of Engineering in Nigeria (COREN) has come into it to put backing to the fact that there is going to be accredited cost engineer, valuer and cost economist. We are increasing awareness which has resulted in more engineers showing interest. This is the only profession that cuts across all engineers – be you electrical, civil, naval or architectural engineer – that have practiced the science of cost engineering, engineering valuation and engineering economy to optimize your cost.

Why do you think there is low patronage for cost engineers despite their importance?

I think it is more of awareness. Before you make your budget, somebody should be part of the budget process. If the project is engineering in nature you must require a cost engineer from day one. It is not getting the job done that matters but getting it right. When a cost engineer is involved you will get it right and done right.

Why do contractors ask for variation in the cost of projects; could it be that the costing was wrongly done?

It may not necessarily be the cost; the important thing is that something has to be done about the budgeting process in this country. For example, if a job is to cost N100 million and the contractor is advanced 15 percent of the contract sum to proceed and maybe it is only that amount that is in the budget, the contractor does that aspect of the work and does not have any money to go ahead. 

He has to wait till the following year before the budget is appropriated. By that time there would have been a time differential in cost. So, that cost would occasion not a variation but a fluctuation-there is a difference between the two. Variation is a change in scope of work while fluctuation is change occasioned by cost and time.