Document Type


Date of Award

Spring 5-31-1981

Degree Name

Master of Science in Management Engineering - (M.S.)


Industrial and Management Engineering

First Advisor

John M. Ciborski


The construction of a major project requires a vast amount of time, money, material and human resources. Proper coordination of these elements into an array of activities is crutial to the success of the project if it is to be built on time and within budget. As technology advances, the complexity of the project increases the resources to build them remain finite, and therefore, the project manager must seek methods to improve control on the construction project.

This thesis provides an overall view of the relatively new and rapidly expanding field of cost engineering. Cost engineering may be defined as that field of engineering practice where engineering judgement and experience are utilized in the application of science principles and techniques to the areas of cost estimation and cost control. Cost estimation and cost control will be the main subject of this thesis.

Although this area has tremendous impact on the economics of private industries and the goverment, cost estimating and cost control has usually underestimated. Virtually all decisions to construct a facility is based on economics, inturn, the economic study is based on the accuracy of an estimate. Once management has committed itself to the project, cost control protects its decision and holds expenditures within budget by constant monitoring and appraisal of cost performance of those responsible for executing the project.

The text will provide the reader with the basic understanding of the nature of construction costs, the types and importance of estimates, budgeting procedures and implementation of a cost control system.