Introduction:

Cost estimation is an approximate method of knowing the cost of a program, project or operation. It is a product of a cost estimation process.

This course will provide the skills to correctly/accurately cost estimate a project and prepare budget reports based on it.

In many times, a project/operation tends to go over budget and hence cost estimation is an important tool to prevent it. Also for project managers, over-budgeting in a project makes his/her credibility look bad and hence this course is been provided to learn the skills for accurate cost estimation and hence develop an economic project.

Course Objectives:

• Learn the methods of cost estimation in a project, from the initial stages of the project till the final stage.
• Preparation of lump-sum, cost-plus and unit price and time and materials estimate and contracts.
• Analysing and applying risk assessment method to reduce risks at minimal costs.
• Contingency plan for residual risks
• Understand different types of contracts

Course Outlines

Day 1

Methodology of Cost Estimation

• Fundamental information about project management
• Setting up projects for success
• Importance of cost management and cost control in projects
• Methods of cost selection and resource and cost allocation
• Understanding project management data and how to apply cost estimation

Day 2

Cost Analysis, Contracts and Risk Distribution

• Methods of Cost budgeting
• Understanding the requirements of resource
• Difference between “Direct costs” and “Indirect costs”
• Concept of risk distribution in contracting and allocation of risk in contracts
• Types of contracts in cost estimation/budgeting

Day 3

Construction Cost Estimation Methods

• Cost estimation of materials
• Approximate method of estimation
• Labour estimation and detailed cost estimation with labour
• Methods of procurement management
• Risk profiles in a project (estimation for probability of risks in a project)

Day 4

Budgeting of Project and Cost Control

• Analysis of risk
• Understanding the concept of “Qualitative risk analysis” vs “Quantitative risk analysis”
• Training on developing risk assessment matrix
• Strategies and tools for risk response planning

Day 5

BIM and CER

• Building information modelling (BIM)
• Technique of cost estimating relationship(CER)
• Computer training on cost estimation and control charts
• Concept of cash flow management
• Review of the course and “Question and Answer session”