Introduction

The selection of the appropriate project estimation method at each project development stage hinges on the available information during preparation and the level of accuracy sought.

Decisions focused on optimizing project costs without compromising quality or functionality rely heavily on employing a systematic and logical set of project management procedures and techniques to maximize the value throughout the project's lifecycle.

This course equips participants with essential skills for accurately estimating the total cost of their projects, eliminating extraneous expenses, associating cost estimates with chosen procurement methods, and elevating the overall project delivery value.

The course presents a sequence of estimating techniques and procedures to forecast project costs accurately, concentrating on budget estimates, estimates for pre-construction services, and calculations for contractor and sub-contractor tasks, general conditions, self-performed work pricing, negotiated contracts, and executing lump-sum and unit-price estimates.

Course Objectives

• Acquire knowledge of project estimating methods from the initial conceptual phase to the final detailed estimate.
• Comprehend various types of estimates employed to progressively and accurately estimate project costs.
• Grasp the different project contract types based on the risk distribution among contracting parties.
• Grasp fundamental Value Engineering and Analysis concepts.
• Show expertise in applying principles of life-cycle costing.
• Present a persuasive, objective argument in favor of specific project alternatives.

Course Outlines

Day 1: Cost Estimating Basics

• Fundamental Project Management definitions
• Methods for Cost Selection
• Common project terminology & preparations for success
• Project cost management, Cost Control
• Resource Allocation & Costs
• Inputs from project management for cost estimation

Pricing, Contracts, and Risk

• Inputs from project management for cost budgeting
• Resource Requirements
• Direct & Indirect Project Costs
• Probability and Standard Deviation Formulas
• Types of contracts based on risk distribution
• Fixed Price Contracts, Cost-Plus Contracts

Day 2: Developing the Project Budget & Cost Control

• Risk Identification, Analysis & Management
• Qualitative and Quantitative Risk Analysis
• Risk & Probability Matrix
• Risk Response Strategy
• Cash Flow management

Methods for Approximate & Detailed Estimating

• Material Estimating
• Civil/Construction Estimating
• Labor estimating, Detailed labor crew estimating
• Procurement Management
• Risk distribution in contracts
• Profiles of project risk

Day 3: Advanced Estimating Methods

• Utilization of Building Information Modeling (BIM)
• Cost Estimating Relationships (CER)
• Computer Estimating
• Utilization of Control Charts

Framework for Implementing Value Engineering in Projects

• Defining concepts and principles of Value and Value Engineering
• Application timing and methodology for Value Engineering
• Defining the project through stakeholder analysis and management
• Exploring the interplay between Value, Cost, and Worth
• Exploring Various Phases of Value Engineering

Day 4: The Function Analysis Phase - Expressing Project Functional Needs and Constraints

• The Information Phase – methodologies and steps
• Formulation of the Value Engineering Job Plan
• Defining project constraints
• Understanding function analysis and Function-Cost-Worth Analysis
• Creation of FAST Diagrams for pinpointing critical project elements
• Approach of Cross-Functional Project Teams

The Creative Phase - Fostering Creativity in Project Teams

• Fostering creativity within the project setting
• Techniques for creative thinking
• Achieving consensus and enhancing project team collaboration
• Perception and identification of project risks
• Setting priorities using paired comparison
• Results from the Creative Phase

Day 5: The Evaluation Phase - Conducting Informed Project Decisions

• Methods for project evaluation
• Conducting risk and scenario analyses in projects
• Techniques for life-cycle costing
• Incremental benefit-cost analysis for evaluating projects
• Effective Decision-making in project environments
• Results from the Evaluation Phase