10 - 21 Feb 2025
London (UK)
Hotel : Landmark Office Space - Oxford Street
Cost : 8400 € Euro
The late delivery of projects has become the scourge of project professionals worldwide. Countless numbers of projects undertaken by organizations in the private and public sectors significantly overrun the project schedule and budget, and as a consequence fail to achieve the organization's financial and strategic objectives, often with sizable increases in costs and with substantial financial losses to the organization. Why?
This is due mainly to the failure of many project professionals to successfully apply the tools and techniques of modern project planning, scheduling, and control to their projects. Likewise, the development of reliable cost estimates during the design and early conceptual stages of a proposed project is of critical importance to the success of the project.
The decision to proceed with a project is often based almost exclusively on early conceptual cost estimates, and these estimates provide the basis for the cash flow projections and forecasts used during the project feasibility study. Unreliable cost estimates can result in significant cost overruns later in the project life when it is too late to contain them.
In addition to the potential financial losses suffered by the organization, many such projects subsequently fail to deliver the required quality of outcomes intended for the project as a direct consequence of poor estimating. Budgeting inaccuracies inevitably result in lower quality workmanship and materials.
The estimating techniques and processes covered in this course will provide delegates with the necessary skills to forecast accurately the anticipated costs of projects with a focus on budget estimates, estimates for pre-construction services, estimating contractor and sub-contractor work, estimating general conditions, pricing self-performed work, estimating negotiated contracts, and performing lump sum and unit-price estimates.
This brand new day course will significantly enhance the skills and knowledge of delegates and improve their ability to properly plan and schedule their projects, as well as perform estimates at both the conceptual and detailed levels, and to compare feasible alternatives quickly and efficiently.
Module 1 - Project Scheduling & Contingency Planning Skills
Module 2 - Project Cost Estimating Skills
The Primary Objectives of the Seminar are to help delegates to:
Gain knowledge of techniques used in resource planning and control.
Understand the time-cost trade-offs.
Identify risk sources and minimize their impact and learn how to sustain project momentum.
Learn how to administer project documentation and reporting.
Develop effective performance monitoring and control systems.
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
Effectively apply incentive arrangements to get the best results from the contract
Delegates will develop advanced project management planning, performance, and control, and cost estimating and management skills and knowledge through formal and interactive learning methods. The program includes individual exercises, team projects, applicable case studies, group discussions and video material that bring to life the skills acquired throughout the course.
The material has been designed to enable delegates to apply all of the material with immediate effect at the office.
Additionally, the seminar does not assume prior knowledge of the topics covered in the course. New concepts and tools are introduced gradually to enable delegates to progress from the fundamental to the advanced concepts of project risk management.
This Fundamental Program takes the practice of project planning, scheduling and estimating to a new level to ensure maximum results
The most recent developments in the field are included to provide fresh inputs to your project management efforts
The course takes a practical rather than a theoretical approach by introducing a case study so that new skills can be applied with immediate effect
High-quality videos of substantial projects of different kinds are screened and discussed during the seminar
Group activities and exercises will ensure mastery of the practical application of new skills learned
The use of software programs to facilitate the incorporation of many advanced techniques are introduced
Related project management fields such as risk are continuously incorporated to provide an integrated view of the total project management process
Delegates will have excellent opportunities for interaction and discussion of best practices at their respective organizations
This course will equip delegates with the skills and knowledge to significantly improve all levels of project estimating and control in the organization
The program will be an important stepping stone in terms of personal career development in that it prepares delegates for the internationally recognized Project Management Professional (PMP) exam
This intensive seminar will provide delegates with a proven set of critical skills and techniques for the development of a systematic and dynamic project plan and schedule, as well as the ability and skills to develop accurate and reliable conceptual and detailed estimates used for project proposals and final estimates. This will enable delegates to:
Integrate scope, time, resources and cost management into a dynamic, manageable plan
Develop project network diagrams for CPM and advanced PERT calculations to identify schedule and cost risks
Maintain continuous project performance and delivery control
Accurately estimate and allocate project costs and resources
Measure, forecast, and control project performance by employing earned value techniques
Compressor accelerate the schedule when required by adverse circumstances
Manage and mitigate schedule, cost, scope, and resource risks associated with the project
Develop a line of balance schedules and velocity diagrams for repetitive or recurring work
Benefit from the financial effects of the learning curve on recurring work
Develop a project recovery plan for budget and schedule overruns
Produce clear and concise project progress reports
Integrate all relevant project elements into a cohesive and comprehensive cost estimate
Prepare budget estimates that will enable the owner-organization to make informed decisions as to the feasibility of a potential project
Compare the costs of alternative strategies or technical approaches to ensure the most economical project at the desired level of quality
Structure of the contract compensation arrangement to provide the highest level of incentives to complete the project on schedule and within the determined budget
Keep accurate control of the progressive budgeting process based on the various stages of design
Prepare accurate budget estimates through the programming phase, the schematic design phase, and finally the design development phase
Understanding the most appropriate contracting structure to ensure the desired project results
Apply proper risk analysis to effectively mitigate risks at minimal costs, and to determine appropriate contingencies for residual risks
Obtain the skills required to prepare and manage the bidding process
Prepare lump-sum, unit-price, cost plus, and time-and-materials estimates and contracts
Ability to deliver projects on time and within budget.
Understanding of what it takes to be a successful project manager.
Skill and confidence to plan and control projects successfully and the ability to sidestep the most common project management pitfalls and problems.
Appreciation of the philosophy, framework, standards, and approaches to the delivery of the projects.
Understanding and practicing effective project management techniques in successfully completing and handing over projects.
Developing an initial project budget for the owner
Determining project feasibility
Designing the project within the owner's budget
Evaluating alternative design concepts and project components
Preparing bids
Preparing cost proposals
Establishing project budgets
Determining the cost impacts of change orders
Substantiating claims and resolving disputes
Preparing a Schedule of Values
Creating historical cost databases to improve future estimating accuracy
Module 1:
Project Scheduling & Contingency Planning Skills
Project Scope Planning and Definition (Fundamentals)
Scope Planning
Work Breakdown Structures (WBS)
Work Packages
Statement of Work (SOW) - Technical Baseline
Scope Execution Plan
Triple Constraints - Time, Cost, Scope
Project Quality Issues
Project Risk Analysis
Project Deliverables
Resource Requirements
Project Schedule Planning and Critical Path Method
Precedence Network Diagramming
Job Logic Relationship Chart
Critical Path Analysis
Project Float Analysis
Lead and Lag Scheduling
Activity Duration Estimation
Milestone Charts
Gantt Chart - Schedule Baseline
Project Estimating Processes
Production and Productivity Planning
Resource and Cost Allocation
Resource Allocation and Resource Levelling
Management of Resources
Planning and Scheduling Limited Resources
Resource Allocation Algorithms for Resource Prioritisation
Solving Resource Contention
Resource Levelling when Project Duration is Fixed
The Brooks Method of Resource Allocation
Increasing the Workforce
Solving Interruptions to the Schedule
Scheduling Overtime
Accelerating the Project Schedule
Circumstances Requiring Project Acceleration
Time-Cost-Scope Trade-off
Project Time Reduction
Direct Project Costs
Indirect Project Costs
Options for Accelerating the Schedule
Crashing the Schedule - How?
Pre-Accelerated Schedule
Developing a Crash Cost Table
Acceleration in Practice
The Optimal Acceleration Point
Gantt Chart for Accelerated Schedule
Network Activity Risk Profiles
Additional Considerations
Multiple Critical Paths
Project Cost Reduction
Project Contingency Planning
Program Evaluation and Review Technique (PERT)
Path Convergence Analysis
Solving the Path Convergence Problem
Network Risk Profile Types
Normal Distribution
PERT, Probability and Standard Deviation Formulae
Calculating the Standard Deviation
Standard Deviation for Critical Path
Z-Values: The Probability of Project Completion at a Required Date
True Critical Path
Network Activity Risk Profiles
Application: Estimating Project Duration
Line of Balance Scheduling - The Planning of Recurring Activities
Preparing a Line of Balance Schedule
Velocity Diagrams and Linear Scheduling
Velocity Diagram Production Rate Calculations
Linear Sequence of Activities as a Series of Velocity Diagrams
Balancing the Schedule
Calculations for a Line of Balance Schedule
Line of Balance Formulae
Target Units per Week
Determining Crew Size
Actual Rate of Output
Time to Complete One Activity
Elapsed Time for Recurring Activity
Slope of Line from Activity Start to Activity Finish
Balanced Project Schedule without Buffers (Finish-Start)
Inserting Buffers
Comparison of Unbalanced with Balanced Schedules
Measuring Planned Progress on Schedule
Velocity Diagram Reflecting Expected Conditions
Actual Progress and Work Conditions
Variable Conditions
Project Execution Management, Control, and Reporting
Progress Tracking and Monitoring
Project Cost Management
Earned Value Control Process
Schedule Variances
Cost Variances
Progress Control Charts - Trend Analysis
Schedule and Cost Variance Forecasting
Labour Management and Cost Control
Materials Management and Cost Control
Earned Value Analysis
Earned Value Reporting
Project Recovery Plan Development
Project Variance Analysis and Quantification
Schedule Performance Index (SPI)
Cost Performance Index (CPI)
Setting Schedule and Cost Control Limits
Project Recovery Data Assessment
Schedule and Cost Recovery Analysis
Schedule and Cost Recovery Plan
Project Recovery Baselines and Controls
Module 2:
Project Cost Estimating Skills
Cost Estimating Basics
The estimating life cycle
Phases of the Design Process
Programming phase
Schematic design
Design development
Construction documents
Estimating accuracy by phase
Conceptual Cost Estimates
Rough Order of Magnitude Estimates (Broad Scope Estimates)
Assemblies cost estimates
Cost indices
Semi-detailed Estimates (Narrow Scope Estimates)
Definitive Estimates (Detailed Scope Estimates)
Basic procedures
Lump-sum contracts
Unit-price contracts
Cost-plus contracts
Cost-plus contract with guaranteed maximum price (GMP)
time-and-materials contracts
Bid method
Negotiated method
Quantity take-off
Types of construction contracts
Procurement methods
Pre-construction services
Risk analysis and contingencies
Broad Scope Cost Estimating Techniques
Adjustments to Project Cost for Broad Scope Estimates
PERT Project Cost Analysis
PERT Unit Cost Estimates
Formulae for Cost Estimating
The Normal Distribution Curve
Z-Value Table
The Probability of Project Completion within Budget
Estimating Project Unit Cost by Using the Standard Deviation
Estimating the Project Unit Cost at a Required Probability
The Probability of Completing the Project at a Required Cost
PERT vs Standard Deviation & Z-Values
Adjustments to Estimates Based on Previous Projects
Adjustments for Time
Review: Future Value of Money
Review: Present Value of Money
Equivalent Annual Interest Rate
Index to Adjust for Time
Equivalent Compound Interest
Location Index for Construction
Adjustments for Location
Adjustments for Size
Combined Adjustments
Economic Price Adjustment
Estimating Durations based on the Learning Curve Effect
Estimating Costs based on the Learning Curve Effect
Unit-Cost Adjustments
Learning Curves
Budget Estimating Process
Estimating by design phase
Programming budget estimates
Schematic design budget estimates
Design development budget estimates
Estimating pre-construction services
Request for proposal
Development of pre-construction services estimate
Pre-construction services contract
Budget control log
Bid Contract Estimating Process
Pre-estimate activities
Estimating process
Solicitation of lump-sum bids
Order-of-Magnitude estimates
Work Breakdown Structure
Estimating team
Scheduling the estimating work
Subcontractors and major suppliers
Estimating forms
Accuracy and error prevention
Pricing self-performed work
Recap sheet
Materials
Labour
Applying pricing factors
Summary recap
Subcontractor work
Project summary schedule
Alternative techniques
Elements of the general conditions estimate
Final document review
Completing the bid summary
Final mark-ups
Sales tax
Validating the estimate
Estimating subcontractor work
Estimating General Conditions
Completing the estimate
Unit Price Estimates
Unit price bid forms
Direct cost estimation
Materials
Labour
Indirect labor
Subcontractors
Recap summary sheet
Direct-to-indirect cost factor
Mark-up determination
Variation-in-quantity contract provision
Risk analysis
Bid finalization
Negotiated Contract Estimating
Guaranteed Maximum Price Estimates
Contract procurement process
Documents
Strategies
Estimating process
Contingencies
Fee determination for negotiated contracts
Reimbursable versus Non-reimbursable costs
Home office overhead
Risk evaluation
Fee structure
Cost savings split
Strategies for responding to the Request for Proposal
Documents to be included with the Request for Proposal
General Contractor interview and selection process
Negotiated subcontracts
Cost proposals for negotiated contracts
Contract Types and Compensation Arrangements
Risk distribution in contracting
Project risk profiles
Contract types according to risk distribution
Fixed Price Contracts
Firm Fixed Price
Fixed Price with Economic Adjustment
Incentive Contracts
Fixed Price Incentive
Cost Plus Incentive
Cost Reimbursement
Cost Plus Award Fee
Cost Plus Fixed Fee
Cost-Plus Contracts
Time-and-Materials
Narrow Scope Cost Estimating Techniques
Power-sizing techniques (Capacity Ratios)
Factor estimates
Cost estimating relationships (CER)
Design-to-cost-estimates
Target cost estimates
Adjusting for Project Type and Quality Level
Features Determining the Quality Level (Grade) of a Structure
Adjusting for Quality Level by Using a Costing Publication
Economic Constraints
Parametric Cost Estimating
Analysis of Estimating Accuracy