Certified Cost Engineering: Effective Estimating and Cost Control of Technical Projects

Introduction

Project leaders and technical staff who are charged with delivering tangible results in their areas of responsibility require objective cost assessments for funding and control decisions on an ongoing basis. The business purpose of the cost engineering function is to provide these assessments early and reliably, so that better decisions may be made. This seminar examines the key concepts of cost engineering including estimating, risk analysis, cost control, scheduling, and change management to achieve the best value for investments and expenditures. It provides methodologies, procedures, and tools (e.g. tables, forms) to do the work, along with hands-on experience on their use. Participants will be in a position to use these tools and procedures starting immediately to meet the success criteria of current activities. Course Objective Upon completing this course, you will have an overview of the process simulation using HYSYS. You will understand the nature and process of key gas processing operations, and how the individual operations are integrated into plants to process diverse feed stream received from gas fields around the world. You will gain a working knowledge of the major processes of dehydration, acid gas removal, NGL recovery, and fractionation. You will also learn the basics of vocabulary unique to the industry and the key physical and chemical properties of natural gas constituents.

Objectives

Understand the business context, the project life cycle and the purpose of cost engineering

Learn the methodologies of project cost engineering to maximize business Return on Investment (ROI) in long run

 Learn to prepare cost estimates & cost reduction strategies

Prepare cost estimates from high level factor estimating to very detailed equipment and bulk material cost, as well as managing cost effectively and maximising profits.

 Understand the principles and methodologies of risk analysis and execute risk mitigation

Learn the methodologies of risk management through risk analysis skill to better measure the parameters and uncertainties in a project.

 Learn the techniques to control, forecast and report the cost and monitor project performance

Able to control, forecast and report the cost and progress during project execution. 

Attain skill to analyse project performance

Learn the principles, methodologies and best practices in analysing project performance and to provide accurate cost and schedule forecasting at project completion.

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

Engineers, technical staff, project managers, construction managers, entry level estimators and others who wish to increase their mastery of cost estimating and control.

Course Outline

Introduction,

Workshop Preview, Learning Outcomes and the Assessment Method I. Cost Management Overview

• Ten fundamentals for cost control
• Project and process models for development
• Roles and responsibilities
• Models of project and process development
• CIQS and AACE mission statements
• Budgeting benchmarks and standards
• Budgeting/cost management template II. Cost Engineering Practices
• Definition and types of work breakdown
• Structures
• Outputs from the process
• Data gathering
• Comparing elemental costs to a model
• Quantity surveyor training
• AACE international certification
• Changes in the workplace III. VE Workshop Process
• Overview of five step consensus building approach
• Optimum times to have a value engineering workshop
• Taking wants to possible solutions to best value selection
• Using paired comparison technique IV. Risk Management
• Categories of risk
• Measurement for risk contingencies
• Mitigating risk Phases for risk assessment
• Template/sample risk management presentation V. Cost Control and Management
• Explaining constant and escalated dollars
• Cost tracking historical costs
• Forecasting and trending
• Authorization for cost control and expenditure
• Cost reporting at checkpoints Fixed asset/replacement and insurance values
• Change requests; instructions and orders
• Schedule impacts
• Close-out procedures VI. Computer Based Estimating
• Software and databases
• Measuring
• Pricing
• Historical data
• Consultant/contractor approaches
• Contract files
• Measurement demonstration on case study VII. Cost Estimating
• Capital, operating and cyclical estimates
• Estimating perspectives Hard and soft costs
• Selection and preparation of templates
• Checklist for a good estimate
• Cost monitoring
• Total Cost Management (TCM) technique VII. I Life Cycle Costing
• Overview
• The basic elements
• Benefits and uses
• Life cycle cost worksheet
• Case study
• Presentation/templates
• Final Review and Examination
• Lessons learned
• Certificates