Project Cost Estimation and Techniques

Mastering Cost Estimation Tools for Successful Projects

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Date Duration Venue Fees
03-07 Jun 2024 5 Days Dubai - UAE US$4,450 Register
02-06 Sep 2024 5 Days London - UK US$5,450 Register
02-06 Dec 2024 5 Days Istanbul - Turkey US$5,450 Register

Course Overview

The development of reliable cost estimates during a proposed project’s design and early conceptual stages is critical since the decision to proceed with a project is often based almost exclusively on early conceptual cost estimates. These estimates also provide the basis for the cash flow projections and forecasts for the project feasibility study.

Overestimation can cause an organisation to lose business, whereas underestimation will potentially result in financial shortcomings of otherwise seemingly profitable undertakings. Hence, accuracy in project cost estimation is essential for remaining competitive and making the right business decisions.

The 5-day highly practical Project Cost Estimation and Techniques training course will provide participants with the necessary skills to accurately forecast the anticipated costs of projects. It will enable financial managers and controllers to improve their cash flow management and make more sound business decisions regarding the proper project selection, opportunity cost analysis, and the overall design of the organisation’s project portfolio. It includes lots of opportunities for the participants to contribute to practical exercises, case studies, and discussions primarily based on the industry’s latest best practices as stated by leading institutes such as the Project Management Institute PMI® and the Association for the Advancement of Cost Engineering AACE International. The participants can explore if and how to tailor the best practices to their specific corporate and project circumstances.

Course Objectives

Taking the opportunity this training course will enable participants to master, customise, and practice the project cost estimation tools and techniques necessary for accurate project cost projections.

After the training course, the participants will learn to:

  • Define the project scope
  • Identify the required resources
  • Estimate the cost of each resource
  • Analyse the project for hidden costs
  • Select the right tool for the right cost estimation job
  • Customise the estimation process

Target Audience

This training course is appropriate for professionals responsible for estimating, controlling, and selecting projects based on project cost estimates.

It is suitable for a wide range of working professionals, including (but not limited to) the following:

  • Project Cost Estimators
  • Project Designers
  • Project Planners and Schedulers
  • Contracts Professionals
  • Project Procurement and Purchasing Staff
  • Project Control and Business Services Professionals who have the responsibility for preparing cost estimates and project proposals for client and contracting companies

Training Methodology

This training course uses a combination of interactive presentations and live discussions. It will be supported with case study workshops, videos, models, tables, and charts to consolidate learning and discussion of the findings. A summary recap will be done by the end of each day, linking the topics to formulate a complete training programme. Upon request, it can include a final multiple-choice test on the material as a learning evaluation method.

Course Outline

Day One

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
Day Two

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 Three

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
Day Four

Time Value of Money

  • Effect of Inflation on Cost and Return Estimates
  • Present Value (PV)
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Project Selection Criteria
  • Project Selection Scoring Model
Day Five

Using MS Project for Project Budgeting

  • Project WBS in MS Project
  • Resources in MS Project
  • Standard Rates
  • Overtime Rates
  • Rate Increases
  • Cost Accrual
  • Project Budget in MS Project


Upon successful completion of this training course, Newage Certificate will be awarded to the delegates.

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