Project Cost Estimating, Budgeting & Value Engineering Skills Event, 03.Mar.2025

Introduction

Course Objectives of Project Cost Estimating, Budgeting & Value Engineering Skills

• Gain knowledge of techniques used in project estimating, from the conceptual stage to the final detailed estimate
• Understand the different types of estimates used to accurately and progressively estimate project costs
• Understand the different types of contracts based on the distribution of risk between contracting parties
• Understand the fundamental concepts of Value Engineering and Analysis
• Demonstrate proficiency in applying life-cycle costing principles
• Objectively present a convincing case in support of certain project alternatives

Project Cost Estimating, Budgeting, and Value Engineering Skills Course Outlines

Day 1

Cost Estimating Basics

• Basic Project Management definitions
• Cost Selection Methods
• Typical project terminology & setting up for success
• Project cost management, Cost Control
• Resource & Cost Allocation
• Understanding project management inputs to cost estimation

Pricing, Contracts, and Risk

• Project management inputs to cost budgeting
• Resource Requirements
• Direct & Indirect Project Costs
• Probability and Standard Deviation Formulae
• Contract types according to risk distribution
• Fixed Price Contracts, Cost-Plus Contracts

Day 2

Developing the Project Budget & Cost Control

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

Approximate & Detailed Estimating Methods

• Material Estimating
• Civil/Construction Estimating
• Labor estimating, Detailed estimating with labor crews
• Procurement Management
• Risk distribution in contracting
• Project risk profiles

Day 3

Advanced Estimating Methods

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

Framework for Applying Value Engineering in Projects

• Defining Value and Value Engineering concepts and principles
• How and when is Value Engineering applied?
• Project definition through stakeholder analysis and management
• Identifying relationships between Value, Cost, and Worth
• Overview of Different Value Engineering Phases

Day 4

The Function Analysis Phase - Expressing Project Functional Needs and Constraints

• The Information Phase – steps and procedures
• Developing Value Engineering Job Plan
• Defining project constraints
• What is function analysis and Function-Cost-Worth Analysis?
• Developing FAST Diagrams to identify critical project components
• Cross-Functional Project Team Approach

The Creative Phase - Inspiring Creativity in Your Project Team

• Creativity and Creative thinking within the project environment
• Creative thinking techniques
• Reaching consensus and leveraging the power of project team collaboration
• Project risk perception and identification
• Identifying priorities through paired comparison
• The output of the Creative Phase

Day 5

The Evaluation Phase - Making Informed Project Decisions

• Project evaluation methods
• Performing project risk and scenario analyses
• Life-cycle costing techniques
• Incremental benefit-cost analysis for project evaluation
• Effective Decision-making in a project environment
• The output of the Evaluation Phase

The Planning and Reporting Phases - Getting Results through Effective Communication