Cost Estimating Foundation

A successful project starts with a well-founded estimate of the costs. The 4-day Cost Estimating Foundation course will teach you the basics of cost estimation. You will learn approaches for different aspects of the estimating profession and you will learn how to apply them in your daily work.

During this course we emphasize practical experience as well as theoretical knowledge. A number of small cases will be prepared during the course. This helps you get familiarized with the knowledge you have just gained and apply it to real world situations. At the end of the Cost Estimating Foundation course you will have:

• A basic understanding of the definitions of cost estimation, cost control and planning. You will also be able to read cost engineering reports and put it in the perspective of your project.
• The basic knowledge to prepare and evaluate estimates quicker and more accurately. This will immediately have its effect on the control you have on the cost of your project.
• The ability to make your own factor estimates and validate factor estimates prepared by others.
• The knowledge to identify major cost risks of engineering. Together with the estimating methods this means you will be able to estimate the engineering involved in your projects.

On the first day of this Cost Estimating Foundation course, you will learn about specific approaches to estimating and their related terms. You will also learn what estimates can be used at what stages of your projects. The second and third day focus on detailed and factor estimating - the two main estimating techniques - and how to apply them. The fourth, and final, day focuses on estimating the cost of the actual engineering work. Engineering not only defines the cost of your project by the design that is made, but the engineering process in itself is part of your project cost as well. The focus of this day is on estimating those engineering cost. It will help you keep the cost low for your engineering phases, but as a result you can also prevent budget overruns.

The Cost Estimating Foundation course is suitable for everyone who is part of any team that executes industrial projects. The course is aimed at: project managers/directors, finance project executives/managers, project engineers, cost estimators, project cost engineers, discipline leads, members of the purchase department, members of a tendering team, work preparators and all who are involved in technical projects, cost estimation, cost control and planning, and contract review in their organizations.

• The basic definitions of and ties between cost estimation, cost control and planning
• Various contract forms
• The position of estimating in each phase of the project lifecycle
• Definitions within estimating
• Value engineering

DAY II
Detail Estimating

• Estimating methods
• Different approaches to estimating
• Principles of the quantitative method
• Buildup of unit rates
• Direct versus indirect
• Cases in preparing estimates by using various techniques for different disciplines

DAY III
Factor Estimating

• Different factor estimating methods
• Advantages and disadvantages of these methods
• Quantitative estimating method
• Estimating of equipment

DAY IV
Estimating of engineering

• Engineering activities
• Engineering effort in engineering phases
• Methods of estimating engineering
• Detailed approach per discipline