Project Cost Management - Estimating, Budgeting and Value

During the training course you will address three broad themes that underpin project cost:

• The project budget - What is the project budget and how does it compare to the final cost
• Cost estimating - How do we develop an estimate of the cost - and does this differ between client, designer and contractor
• Risk and value - How are risk and value incorporated into the budget

Set against a background of estimating in the construction industry you will explore the elements of project cost and how budgets are established. Working from first principles, cost build up and bills of quantities will be developed and tested using case studies. Contractor tender pricing processes and the effects of risk, value and decision making on project costs will be explored.

This training course has been mapped to:

• UK-SPEC Competence C1: Plan for effective project implementation and C2: Plan, budget, organise, direct and control tasks, people and resources.
• ICE Key Attribute 5A: Ability to prepare and control budgets
• ICE Key Attribute 5C: A high level of commercial and contractual understanding and an ability to use it within own area of responsibility

Sessions begin at 9:00 and finish at 17:00. Morning and afternoon coffee breaks and lunch are included in the programme.

• Session 1 - Estimating in the construction industry
• Session 2 - Estimating through the product stages
• Session 3 - Introduction to case study
• Session 4 - Case study - elements of cost
• Session 5 - The contractors tender pre-estimate
• Session 6 - Risk, cost and value
• Session 7 - Variation and delays
• Session 8 - Cost control
• Session 9 - Continuous improvement - minimising waste
• Session 10 - Consequences of decisions

Tutor

Michael Graham
MA MICE CEng CVS PVM TVM

Michael has used value management for over twenty years to enable organisations to deliver affordable outcomes. Commissions include strategic reviews and data assessment, options appraisal, culture change programmes, support for management teams to develop commercial practice, and specific consultancy interventions: value management to kick start innovation, resolve problems and improve effectiveness; risk audit and management to improve business controls; and independent Client Advisor support for stakeholder and public consultation, supply chain development, and business performance improvement. Michael has also developed a bespoke risk model (TEAM™) which aims to motivate people to take action to manage risk.

By the end of this course delegates should understand:

• How to prepare a project budget and relate the budget to a Bill of Quantities
• How to prepare a feasibility cost estimate
• How to control costs
• How to accommodate risk in cost estimating
• Broad principles and processes of construction cost estimating
• Elements of price and build up of cost from first principles
• The difference between cost, value and waste
• The financial consequences of construction cost decision making
• The interaction between project, client and project governance

This training course is ideal for:

• Graduate civil engineers from designer, contractor and client organisations
• Construction graduates and assistant project managers
• Junior site engineers and site managers