This page is a compilation of blog sections we have around this keyword. Each header is linked to the original blog. Each link in Italic is a link to another keyword. Since our content corner has now more than 4,500,000 articles, readers were asking for a feature that allows them to read/discover blogs that revolve around certain keywords.
The keyword thomas lokhorst has 2 sections. Narrow your search by selecting any of the keywords below:
- cost estimation (6)
- mock exams (3)
- cost estimator (3)
- exam objectives (2)
- gregory mislick (2)
- daniel nussbaum (2)
- rodney stewart (2)
- risk management (2)
- daniel nussbaum project cost estimating (2)
- cost issues (2)
- analogous estimation (2)
1.Exam Preparation Tips and Resources[Original Blog]
One of the most important steps to achieve the cost estimation certification is to prepare well for the exam. The exam is designed to test your knowledge and skills in various aspects of cost estimation, such as project scope, cost analysis, risk management, and reporting. The exam consists of multiple-choice questions that cover both theoretical and practical scenarios. To pass the exam, you need to demonstrate your ability to apply the best practices and standards of cost estimation to real-world situations. In this section, we will provide some tips and resources that can help you prepare for the exam and boost your confidence. Here are some of the things you can do to get ready for the exam:
1. Review the exam objectives and format. The first thing you should do is to familiarize yourself with the exam objectives and format. The exam objectives outline the topics and subtopics that are covered in the exam, and the level of difficulty and weight of each topic. You can find the exam objectives on the official website of the certification body. The exam format describes the number of questions, the duration, the passing score, and the types of questions. You can also find some sample questions and answers on the website to get a sense of what to expect in the exam.
2. study the cost estimation concepts and techniques. The next thing you should do is to study the cost estimation concepts and techniques that are relevant to the exam. You can use various sources of information, such as books, articles, online courses, webinars, podcasts, and blogs. Some of the recommended books are:
- Cost Estimation: Methods and Tools by Gregory K. Mislick and Daniel A. Nussbaum
- Project Cost Estimating: Principles and Practice by Rodney D. Stewart and Thomas L. Lokhorst
- cost Engineering analysis: A Guide to the Economic Evaluation of Engineering Projects by G. J. Thuesen and W. J. Fabrycky
- Cost Estimation Handbook for the Australian Mining Industry by AusIMM
3. Practice with mock exams and quizzes. The best way to test your knowledge and skills is to practice with mock exams and quizzes. Mock exams and quizzes can help you identify your strengths and weaknesses, measure your progress, and improve your time management and test-taking strategies. You can find many mock exams and quizzes online, such as:
- Cost Estimation Certification Practice Test by Udemy
- Cost Estimation Quiz by ProProfs
- Cost Estimation MCQs by Engineering MCQs
- Cost Estimation Questions and Answers by Sanfoundry
4. Join a study group or a forum. Another way to prepare for the exam is to join a study group or a forum where you can interact with other candidates and experts. Study groups and forums can help you exchange ideas, share resources, ask questions, and get feedback. You can also learn from the experiences and tips of others who have taken or passed the exam. Some of the popular study groups and forums are:
- Cost Estimation Certification Study Group by LinkedIn
- Cost Estimation Forum by Reddit
- Cost Estimation Discussion Board by Quora
- Cost Estimation Community by Stack Exchange
5. Relax and be confident. The last thing you should do before the exam is to relax and be confident. You have worked hard and prepared well for the exam, so you have nothing to worry about. Try to get enough sleep, eat well, and avoid stress. On the day of the exam, arrive early, bring your identification and other required documents, and follow the instructions carefully. During the exam, read the questions and options thoroughly, eliminate the wrong answers, and choose the best answer. Don't spend too much time on one question, and don't change your answer unless you are sure. After the exam, celebrate your achievement and wait for your results.
We hope that these tips and resources will help you prepare for the cost estimation certification exam and validate your expertise and credibility. Good luck!
Exam Preparation Tips and Resources - Cost Estimation Certification: How to Validate Your Expertise and Credibility
2.What is Cost Estimation and Why is it Important?[Original Blog]
cost estimation is the process of predicting the cost of a project, product, service, or activity based on various factors such as scope, resources, time, quality, and risks. Cost estimation is important for many reasons, such as:
1. It helps in planning and budgeting: Cost estimation provides a realistic and reliable estimate of the required funds and resources for a project or activity. This helps in allocating the budget, securing the funding, and managing the cash flow. It also helps in setting the expectations and goals for the project or activity, and measuring the progress and performance against them.
2. It helps in decision making and risk management: Cost estimation enables the comparison of different alternatives and scenarios, and the evaluation of their feasibility, benefits, and drawbacks. This helps in choosing the best option that meets the objectives and constraints of the project or activity. It also helps in identifying and mitigating the potential risks and uncertainties that may affect the cost, such as changes in scope, schedule, quality, or external factors.
3. It helps in communication and negotiation: Cost estimation facilitates the communication and negotiation with the stakeholders, such as clients, customers, suppliers, contractors, and regulators. It helps in establishing the trust and credibility of the project or activity, and in resolving any disputes or conflicts that may arise due to cost issues.
Cost estimation is a complex and dynamic process that requires a combination of skills, knowledge, experience, and tools. It involves various methods and techniques, such as:
- Analogous estimation: This method uses the historical data and information from similar or comparable projects or activities to estimate the cost of the current one. It is based on the assumption that the cost of the current project or activity will be similar to the cost of the previous ones, with some adjustments for the differences in size, complexity, and other factors. This method is simple, quick, and easy to apply, but it may not be very accurate or reliable, especially if the projects or activities are not very similar or if the historical data is not available or reliable.
- Parametric estimation: This method uses mathematical models and formulas to estimate the cost of the project or activity based on one or more parameters or variables that affect the cost, such as the size, duration, quantity, or quality. It is based on the assumption that there is a statistical relationship between the cost and the parameters, and that the relationship can be expressed by a formula or an equation. This method is more accurate and reliable than the analogous estimation, but it requires more data and information, and it may not capture all the factors that influence the cost.
- Bottom-up estimation: This method breaks down the project or activity into smaller and more detailed components or tasks, and estimates the cost of each component or task separately. Then, it aggregates the cost of all the components or tasks to get the total cost of the project or activity. It is based on the assumption that the cost of the project or activity is the sum of the cost of its parts, and that the cost of each part can be estimated accurately and reliably. This method is the most accurate and reliable, but it is also the most time-consuming and complex, and it may not be feasible or practical for large or complex projects or activities.
- Three-point estimation: This method uses three different estimates for the cost of the project or activity: the most likely estimate, the optimistic estimate, and the pessimistic estimate. The most likely estimate is the expected or average cost, the optimistic estimate is the lowest or best-case cost, and the pessimistic estimate is the highest or worst-case cost. Then, it calculates the weighted average of the three estimates to get the final estimate. It is based on the assumption that the cost of the project or activity may vary depending on the uncertainty and variability of the factors that affect the cost, and that the variability can be represented by a probability distribution. This method is more realistic and comprehensive than the single-point estimation, but it requires more data and information, and it may not reflect the actual cost.
Cost estimation is a vital and valuable skill for any professional who is involved in the planning, execution, and management of projects, products, services, or activities. It is also a rewarding and fulfilling career for those who are interested in applying their analytical, mathematical, and problem-solving abilities to real-world challenges and opportunities. To become a cost estimator, one needs to have:
- A relevant education: A bachelor's degree or higher in engineering, construction, business, economics, or a related field is usually required for most cost estimation jobs. Some employers may also prefer or require a certification or a license from a recognized professional organization, such as the Association for the Advancement of Cost Engineering (AACE) or the international Cost Estimating and analysis Association (ICEAA).
- A relevant experience: A minimum of two to five years of experience in cost estimation or a related field is usually required for most cost estimation jobs. Some employers may also prefer or require a specific industry or domain expertise, such as manufacturing, software, healthcare, or energy.
- A relevant skill set: A cost estimator needs to have a variety of skills, such as:
- Analytical skills: A cost estimator needs to be able to collect, process, analyze, and interpret large and complex data and information from various sources and methods, and to use them to create accurate and reliable cost estimates.
- Mathematical skills: A cost estimator needs to be able to apply mathematical concepts, principles, and techniques, such as algebra, statistics, calculus, and geometry, to perform calculations and computations for cost estimation.
- problem-solving skills: A cost estimator needs to be able to identify and solve problems that may arise during the cost estimation process, such as errors, inconsistencies, gaps, or uncertainties, and to find the best solutions that meet the objectives and constraints of the project or activity.
- Communication skills: A cost estimator needs to be able to communicate effectively and clearly with the stakeholders, such as clients, customers, suppliers, contractors, and regulators, and to present and explain the cost estimates and the assumptions, methods, and results behind them.
- Negotiation skills: A cost estimator needs to be able to negotiate and persuade the stakeholders, such as clients, customers, suppliers, contractors, and regulators, and to reach a mutual agreement or a compromise on the cost issues and disputes that may arise during the project or activity.
- project management skills: A cost estimator needs to be able to plan, organize, coordinate, and control the cost estimation process, and to manage the time, resources, quality, and risks involved in it.
Cost estimation is a challenging and exciting career that offers many opportunities for growth and development. A cost estimator can work in various industries and domains, such as construction, manufacturing, software, healthcare, energy, and more. A cost estimator can also advance to higher positions, such as senior cost estimator, cost engineering manager, or project manager, or specialize in a specific area, such as risk analysis, value engineering, or life cycle costing. A cost estimator can also pursue further education or training, such as a master's degree, a doctorate, or a certification, to enhance their knowledge and skills and to increase their credibility and competitiveness. A cost estimator can also join a professional network or community, such as the AACE or the ICEAA, to exchange ideas and information, to learn from the best practices and experiences, and to access the latest trends and developments in the field of cost estimation.
A cost estimator can expect to earn a competitive and attractive salary, depending on their education, experience, skill set, industry, domain, and location. According to the U.S. Bureau of Labor Statistics, the median annual wage for cost estimators in 2020 was $66,610, with the highest 10 percent earning more than $114,250, and the lowest 10 percent earning less than $40,360. The employment of cost estimators is projected to grow by 11 percent from 2020 to 2030, faster than the average for all occupations, due to the increasing demand for accurate and reliable cost estimates for various projects, products, services, and activities in various industries and domains.
Cost estimation is a fascinating and rewarding career that requires a lot of skills, knowledge, experience, and tools. It is also a career that can make a difference and an impact on the success and outcome of various projects, products, services, and activities. If you are interested in becoming a cost estimator, or if you want to learn more about cost estimation, you can start by reading some books, articles, blogs, or podcasts on the topic, such as:
- Cost Estimation: Methods and Tools by Gregory K. Mislick and Daniel A. Nussbaum
- Project Cost Estimating: Principles and Practice by Rodney D. Stewart and Thomas L. Lokhorst
- Cost Engineering Journal by AACE
- cost Estimating and analysis Podcast by ICEAA
What is Cost Estimation and Why is it Important - Cost Estimation Career: How to Become a Cost Estimator and What to Expect