Cost Engineering: Effective Estimation and Cost Control of Technical Projects

Why this Course

Project leaders and technical staff who are charged with delivering tangible results in their areas of responsibility require objective cost assessments for funding and control decisions on an ongoing basis. The business purpose of the cost engineering function is to provide these assessments early and reliably, so that better decisions may be made.

This seminar examines the key concepts of cost engineering including estimating, risk analysis, cost control, scheduling and change management to achieve best value for investments and expenditures. It provides methodologies, procedures and tools (e.g. tables, forms) to do the work, along with hands-on experience on their use. Participants will be in a position to use these tools and procedures starting immediately to meet success criteria of current activities.

The Goal

To provide an understanding of the key concepts of cost engineering and where/how they should be applied. To provide proven, effective cost estimating and control methods. To enable participants to prepare estimates and assess/mitigate risk by utilising appropriate sources, and to use these data plus forecasting techniques for cost control.

Programme Contents

Overview Of Cost Management

• The 10 key elements of capital management
• Models of project and process development
• Roles and responsibilities
• Mission statement of Cost Engineering

Cost Engineering Practices

• The 4 key elements of cost engineering
• Work Breakdown Structure
• Cost engineering products
• Cost information – sources of data
• Training and Behaviours

Cost Estimating

• Types of estimates
• Estimating methods
• Direct and indirect costs
• Estimate format and preparation
• Factors of a Good Estimate
• Cost containment

Risk Analysis

• Types of uncertainty
• Risk assessment – the checklist approach
• Risk tracking and reporting
• Case studies

Computer Based Estimating

• Software and databases
• The practitioner-machine interface
• Mastery levels
• Roles and responsibilities

Option Analysis

• Best value assessment
• Project/process selection criteria
• Key factor analysis

Project Cost Controls

• Cost tracking and trending
• Authorisation for expenditure
• Cost status reports
• Forecasting methodology and procedure
• Fixed asset management
• Change management
• Scheduling
• Close-out procedures
• Contract files
• Lessons learned

Case study