Level: Basic
TCM Section(s)
11.2. People and Performance Management
Venue: 2024 AACE International Conference & Expo
Abstract: Cost estimation is a crucial function in all industries, including the oil and gas business. It is found that many oil companies require an engineering background to start as a new cost engineer. Potential cost engineers may come from civil, mechanical, process, electrical, and instrumentation engineering as new entry. A cost engineering competency matrix is developed to accelerate the understanding of scope, especially for upstream and downstream capital projects. Cost engineers need to be familiar with the overall oil and gas business value chain which includes engineering, procurement, fabrication, construction/installation, commissioning, and start-up of the project. AACE International recommended practices are often utilized as guidance for newcomers in preparing a cost estimate, supported by guidelines and manuals.
The inventory of knowledge in a competency matrix should identify levels of understanding of scope, quantity analysis, cost estimating techniques and application as applied for any contract type, and project scheduling. The competency matrix is developed based on ratings from awareness (Level 1) through the highest rating for experts ( Level 5). Further, the rating is mapped into an inventory rubric to guide career progression in support of potential progression into managerial or professional positions. A mentoring system is established to accelerate competency development to support new entries in preparing cost estimates for projects. An assessment is to be made at least once a year to identify skill gaps and training to meet business needs in a very challenging oil and gas market.
TCM Section(s)
11.2. People and Performance Management
Venue: 2024 AACE International Conference & Expo
Abstract: Cost estimation is a crucial function in all industries, including the oil and gas business. It is found that many oil companies require an engineering background to start as a new cost engineer. Potential cost engineers may come from civil, mechanical, process, electrical, and instrumentation engineering as new entry. A cost engineering competency matrix is developed to accelerate the understanding of scope, especially for upstream and downstream capital projects. Cost engineers need to be familiar with the overall oil and gas business value chain which includes engineering, procurement, fabrication, construction/installation, commissioning, and start-up of the project. AACE International recommended practices are often utilized as guidance for newcomers in preparing a cost estimate, supported by guidelines and manuals.
The inventory of knowledge in a competency matrix should identify levels of understanding of scope, quantity analysis, cost estimating techniques and application as applied for any contract type, and project scheduling. The competency matrix is developed based on ratings from awareness (Level 1) through the highest rating for experts ( Level 5). Further, the rating is mapped into an inventory rubric to guide career progression in support of potential progression into managerial or professional positions. A mentoring system is established to accelerate competency development to support new entries in preparing cost estimates for projects. An assessment is to be made at least once a year to identify skill gaps and training to meet business needs in a very challenging oil and gas market.