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A Methodology for Estimating Engineering Details

W hile historical data supports the idea that engi-neering is a percent of TIC, the impact of fac-tored Engineering to a project is unclear to proj-ect managers. Too many project managers leavethis clause unchallenged and expose the project to unrealized-growth risks in cost and schedule. Factored Engineering can: Bury a significant amount of contingency; Hide behind growing scope and construction costs; Leverage project profit to the front of the project; and Avoid discussing the true cost of Engineering is a strong correlation between Engineering hours andconstruction hours. This correlation allows a project team to accu-rately forecast final project costs and schedule before the finalinvoice to the Engineering contractor is paid and before the proj-ect experiences the first project over-run forecast. Engineering issolely responsible for controlling the scope of the project.

neering group that is out-of-control, thus resulting in a wide vari-ance in the engineering hours required for a project. Figure 3, "Engineering Hours vs Direct Construction Labor

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