Course Description

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 ongoing basis. The business purpose of the cost engineering function is to provide these assessments early and reliably, so that better decision 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.

Course Objective

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 utilizing appropriate sources, and to use these data plus forecasting techniques for cost control.   

Who Should attend?

Engineers, technical staff, project managers, construction managers, entry level estimators and others who wish to increase their mastery of cost estimating and control.

Course Outline

Welcome, Introduction, Workshop Preview, Learning Outcomes and the Assessment Method

 I Cost Management Overview
Ten fundamentals for cost control
Project and process models for development
Roles and responsibilities
Models of project and process development
CIQS and AACE mission statements 
Budgeting benchmarks and standards
Budgeting/cost management template

 II Cost Engineering Practices
Definition and types of work breakdown
Structures
Outputs from the process
Data gathering
Comparing elemental costs to a model
Quantity surveyor training
AACE international certification
Changes in the workplace 

III VE Workshop Process
Overview of five step consensus building approach
Optimum times to have a value engineering workshop
Taking wants to possible solutions to best value selection
Using paired comparison technique

IV Risk Management
Categories of risk
Measurement for risk contingencies
Mitigating risk 
Phases for risk assessment
Template/sample risk management pesentation

V Cost Control and Management
Explaining constant and escalated dollars
Cost tracking historical costs
Forecasting and trending
Authorization for cost control and expenditure
Cost reporting at checkpoints
Fixed asset/replacement and insurance values
Change requests; instructions and orders
Schedule impacts
Close-out procedures

VI Computer Based Estimating
Software and databases
Measuring
Pricing
Historical data
Consultant/contractor approaches
Contract files
Measurement demonstration on case study

VII Cost Estimating
Capital, operating and cyclical estimates
Estimating perspectives
Hard and soft costs
Selection and preparation of templates
 Checklist for a good estimate
Cost monitoring
Total Cost Management (TCM) technique

VIII Life Cycle Costing
Overview
The basic elements
Benefits and uses
Life cycle cost worksheet
Case study
Presentation/templates

Final Review and Examination
Lessons learned
Certificates
Next steps

Questions and Answers and Feedback to Participants on Achievement of Learning Outcomes