Cost Engineering Course Content

Cost Engineering workbook consists of 6 modules with readings, videos, knowledge checks, and assignments. You must complete the assignments in sequence, but all materials are available for review at any time.

Course introduction [approx. 1 hour]

An explanation of the course policies and how to navigate the course site.

Reading Icon 1 reading    Video Icon 1 video

Module 1: Economic Analysis Learning Objectives [approx. 5 – 7 hours]

At the end of this module you will be able to:

  1. Explain the terms period interest rate, present value, future value, annual payment, number of interest periods and calculate one of them given the other terms.
  2. Apply the basic time value formulas to simple story problems.
  3. Draw cash flow diagrams to depict basic engineering economic problems to assist with their solutions.
  4. Demonstrate an understanding of the various decision-making situations that engineering economics fundamentals are applicable.
  5. Apply Engineering Economics basics to deciding between alternatives, calculating rate of return for investments, incorporating depreciation and taxes into the economic analysis, and performing benefit cost analysis.
  6. Calculate the benefit to cost ratio for a project.
  7. Identify the best alternatives based on net present value.
  8. Identify the rate of return for any investment scenario.

Reading Icon 1 reading    Video Icon 1 video   Knowledge Check Icon 1 knowledge check   Major Assignment Icon 1 major assignment

Module 2: Cost and Cost Estimation Learning Objectives [approx. 15.5 – 19 hours]

At the end of this module you will be able to:

  1. Demonstrate an understanding of the various types of conceptual estimates and parametric estimating approach.
  2. Apply the appropriate conceptual estimating technique; and Capacity Factor, Ratio or Factor, physical dimension, end-product methods.
  3. Adjust prices using cost indices for location and time.
  4. Prepare a detailed estimate.
  5. Calculate composite crew rate.
  6. Prepare unit price estimate and lump-sum estimate.
  7. Prepare a complete screening estimate for a manufacturing operation.
  8. Develop an operation cost graph and identify the break-even point and shut down point for the process.

Reading Icon 8 readings Video Icon 4 videos Knowledge Check Icon 4 knowledge checks Major Assignment Icon 1 major assignment