Cost Control
- Reasons for cost creep identified through group exercise.
- The foundation stone: defining project scope and controls.
- Benchmarking estimating techniques through a case study.
- Cost reduction strategies discussed in lecture and discussion.
- Importance of monitoring scope, schedule, cost, quality, and resources.
Overview
Cost Control Training focuses on equipping participants with the skills to manage and reduce project costs effectively. The course covers identifying reasons for cost escalation, defining project scope, estimating techniques, cost reduction strategies, procurement processes, change management, and contract bidding. Participants are encouraged to bring real-world cost control problems for discussion and resolution. The training includes lectures, group exercises, case studies, and discussions to enhance understanding and application of cost control principles.
Who should attend
Project Managers
Course Content
Each participant to bring a brief description (half page maximum) of a typical cost control problem, or cost/estimating work method, that has been or is a problem, in the control of projects or work assignments. These issues will be addressed during the course.
1. REASONS FOR COST CREEP (Group Exercise)
A brainstorming session to identify the reasons and areas of cost escalation.
2. THE FOUNDATION STONE – Defining the What (Lecture & Group Exercises)
To demonstrate the use of product and work breakdown structures to describe the scope of the project and develop the basic controls.
3. THE BENCHMARK – Estimating How Much (Lecture & Case Study)
Intensive lecture covering aspects of estimating.
- Approaches to Estimating.
- Elements of Estimating.
- Estimate planning sequence.
- Types of Estimate.
- Make-up of an Estimate.
- Contingencies.
- Using the correct estimating technique.
- Uses of different types of estimates.
Estimating case study describing the methods used by the various departments of a company to prepare an estimate.
Cost – Profit – Price
4. COST REDUCTION (Lecture & Discussion)
A review of the issues involved in reducing the costs.
- Redesign, scope and specification.
- Breakdown v’s Make-up.
- Negotiating the deal.
- Pricing or costing changes.
5. THE CONTROL PROCESS (Lecture)
- The control cycle.
- The importance of monitoring Scope, Schedule / Time, Cost, Quality and Resources.
- The easy and theoretical answer to cost control.
- Controlling time.
6. PROCUREMENT & TENDER ASSESSMENT (Lecture & Exercises)
- Types of contract.
- Determination of the criteria in selecting tenderers (Brainstorming session).
- ‘Which would you Pick 1’. Attitudes in choosing the supplier. (Exercise)
- The tender assessment criteria. ‘Which would you Pick 2’
- Evaluating the payment terms of the tenders. (Exercises)
- The marking criteria and the pros. & cons. of weighted evaluations.
7. MANAGING CHANGE (Lecture)
- Definitions of different types of changes and what the contract should say.
- Managing change through the trend programme.
- Illustrating the effect of change and the cumulative effect using ‘S’ Curves.
8. THE SPAN CONTRACT (Time Permitting) (Group Exercise)
Estimating and Bidding for a Lump Sum Contract with all the Inherent Risks Involved. Managing the practical realities of a Lump Sum Contract.
Duration:1 Day
Cost:£295 + VAT
Cost Control Training Scotland, Inverness, Aberdeen, Glasgow, Edinburgh, Perth and Stirling.
Cost Contract Training Nigeria, Bahrain, Kuwait, Qatar, Abu Dhabi, Dubai, Saudi Arabia, South Africa, India and Ghana is also available
