Project Cost Estimation Techniques

Project Cost Estimation Techniques

Monday 05 July 2021

  • Duration: One Week
  • City: London
  • Fees: Classroom: 3900 GBP / Online: 1950 GBP



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


  • 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”
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