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 Mastering Project Cost Estimation With Budgeting and Value Engineering P258 QR Code
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Mastering Project Cost Estimation With Budgeting and Value Engineering



The Mastering Project Cost Estimation With Budgeting, and Value Engineering training program offers a series of estimating techniques and processes. It presents the value engineering methodology which emphasizes the return-on-investment aspect of decision-making in terms of lifecycle costs during project planning, procurement, and execution.

Program Objectives:

At the end of this program the participants will be able to:

  • Acquire expertise in project estimating techniques, spanning from conceptualization to detailed estimates.

  • Understand diverse estimate types for accurate and progressive cost estimation throughout projects.

  • Comprehend contract variations based on risk distribution among parties involved.

  • Implement incentive structures to optimize contract outcomes effectively.

  • Gather and organize project-relevant information and costs for informed decision-making.

  • Incorporate stakeholder input in project charter development and report project alternatives convincingly to top management.

Targeted Audience:

  • Project Managers.

  • Project Cost Estimators.

  • Cost Controllers.

  • Project Planners.

  • Contract Professionals.

  • Project Procurement Staff.

Program Outlines:

Unit 1:

Cost Estimating Basics:

  • Explore the Estimating Life Cycle and Phases of the Design Process.

  • Understand various types of Cost Estimates and Contract Structures.

  • Learn Basic Estimating Procedures and techniques for Lump-sum, Unit-price, and Cost-plus contracts.

Unit 2:

Broad Scope Cost Estimating Techniques:

  • Dive into Advanced Cost Estimating Techniques including PERT analysis and Standard Deviation calculations.

  • Understand adjustments for Project Cost Estimates based on previous projects and economic factors.

  • Learn to estimate project durations and costs using Learning Curves and Economic Price Adjustment.

Unit 3:

Budget Estimating Process:

  • Master the process of Budget Estimating across different project phases.

  • Develop budget estimates for programming, schematic design, and design development stages.

  • Understand the importance of pre-construction services estimates and budget control mechanisms.

Unit 4:

Bid Contract Estimating Process:

  • Explore the intricacies of Bid Contract Estimating, including work breakdown structures and subcontractor management.

  • Learn the process of soliciting lump-sum bids and pricing self-performed work.

  • Understand the accuracy validation and finalization steps in the bidding process.

Unit 5:

Unit Price Estimates:

  • Understand the process of developing unit price bid forms and estimating direct and indirect costs.

  • Master risk analysis techniques and variations-in-quantity contract provisions.

  • Finalize bids through comprehensive risk analysis and bid finalization processes.

Unit 6:

Negotiated Contract Estimating:

  • Explore the process of developing Guaranteed Maximum Price Estimates and negotiating contracts.

  • Understand the fee determination and reimbursement structures for negotiated contracts.

  • Develop strategies for responding to requests for proposals and negotiating subcontracts effectively.

Unit 7:

Contract Types and Compensation Arrangements:

  • Understand the distribution of risk in contracting and project risk profiles.

  • Explore various contract types, including fixed-price contracts, cost-plus contracts, and time-and-materials contracts.

  • Master the intricacies of fee determination and cost savings strategies in different contract types.

Unit 8:

Narrow Scope Cost Estimating Techniques:

  • Delve into specific cost estimating techniques such as power-sizing, factor estimates, and parametric cost estimating.

  • Understand adjustments for project type, quality level, and economic constraints.

  • Analyze estimating accuracy and apply techniques to adjust for project size and location.

Unit 9:

Framework for Applying Value Engineering in Projects:

  • Gain insight into the concepts and principles of Value Engineering and its importance in project optimization.

  • Understand the Value Engineering process from project definition to initiation and value analysis.

  • Learn techniques for identifying relationships between value, cost, and worth, and initiating Value Engineering phases effectively.

Unit 10:

Function Analysis and Creative Problem Solving:

  • Explore the role of Function Analysis in projects and how it helps define project constraints and cost estimates.

  • Foster creativity within project teams and apply creative thinking techniques to optimize project value.

  • Understand the output of the Evaluation Phase and its significance in making informed project decisions.

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