This document provides information about the ENGG 820 - Economics for Engineers course offered at the University of Regina. The course explores cost analysis and engineering economics for large engineering projects. Topics covered include capital and operating cost estimation, discounting costs, comparative cost analysis, and assessing the value of engineering projects. The course objectives are to introduce students to economics considerations for infrastructure projects and develop skills in evaluating major project costs and performance. The instructor is Dr. Kevin McCullum and the course involves assignments, participation, a project, and final exam for grading. Major topics are divided into the fundamentals of engineering economics, engineering decision making, and cost estimation techniques for projects.

1. ENGG 820 – Economics for Engineers
Any student with a disability, injury or illness who feels they may need academic accommodation should discuss this with the course instructor after
contacting the Centre for Student Accessibility, located in Riddell Centre 251, phone 306-585-4631, e-mail accessibility@uregina.ca.”
Graduate Courses - Engineering, University of Regina
ENGG 820 – Economics for Engineers
Monday and Wednesday – 5:30 to 6:45pm; Room CL128
Kevin McCullum, Ph.D., P.Eng., 306-531-2669, kevin.mccullum@uregina.ca
Calendar Description
This course explores the cost analysis that accompanies large engineering projects. Analysis of the engineering system and value planning is covered. Additional
topics include capital and operating cost estimation, discounting, comparative costing, and capital recovery.
Course Outcomes
The objective of this course is to introduce and explore students to the economics associated with large engineering projects. By the end of the course you should
be able to:
• Use engineering economics to evaluate major infrastructure projects
• Critically assess the processes used to evaluate typical large engineering projects
• Understand a broad range cost estimations of large engineering projects
• Understand fundamentals in which project performance can be measured and evaluated
• Understand the role of uncertainty in project evaluation and engineering decisions
• Understand the Concept of Equivalence and application
• Understand concepts of public private partnerships
TEXTS used
Chan Park, Ming Zuo, and Ronald Pelot, Contemporary Engineering Economics, Third Canadian Edition
Niall Fraser and Elizabeth Jewkes, Engineering Economics Financial Decision Making for Engineers, Fifth Edition
Grading
Assignments 25 %
Class participation 10 %
Project 40 %
Final Exam 25 %
Major Topics
Part One – Fundamentals
1. Introduction to engineering economics
a. Taxation – after tax cash flow and corporate taxes
b. Depreciation and Replacement
c. Inflation
d. Financial statements and balance sheet
2. Introduction to public and private projects
a. evaluation methods and project evaluation checklists
Part Two – Engineering Decision Making
3. Engineering Decisions
a. Risk, uncertainty and financing options in future projects
4. Public-Private partnerships and sustainable developments
5. Contracts used for major projects – cost-plus-fee, lump sum, unit price, max price
6. Stakeholder analysis and project costs
a. potential leveraging
b. private vs public projects
7. Project timing and value planning - concept of equivalence
8. Discount rates and rate of return analysis (RoR)
a. Acceptable rate of return
b. Rate of return on investment
9. Benefit cost analysis - comparative costing analysis
Part Three – Cost Estimations
10. Cost estimations of major projects
a. types of construction
b. effects of scale
c. unit cost methods