Estimating and Pricing
- Intensive lecture on estimating in contracting organizations.
- Different types of contracts and their payment terms.
- Effect of payment terms on pricing of tenders.
- Importance of cash flow in project life.
- Brainstorming on different pricing strategies.
Overview
This one-day course focuses on enhancing skills related to estimating and pricing in contracting organizations. The course covers topics such as different estimating approaches, elements, planning sequences, and techniques. Participants engage in exercises and case studies to understand the impact of payment terms on pricing tenders, cash flow importance, and strategies for making tenders more competitive. The course also includes a practical exercise on estimating and bidding for a Lump Sum Contract, emphasizing risk management.
Who should attend
Estimators, Contract Managers, Pricing Analysts
Course duration: 1 Day
Cost: £295 + VAT
1. INTRODUCTIONS
2. ESTIMATING (LECTURE & CASE STUDY)
Intensive lecture covering aspects of estimating in a contracting organization.
• 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.
3. TYPES OF CONTRACT
The different types of contract and their payment terms.
4. COST / PROFIT / PRICE (LECTURE & EXERCISES)
The effect of the payment terms on the pricing of the tender The advantages of progress payments vs. 100% upon completion.
– Identify the importance of cash flow in the life of projects.
– More advanced method for evaluating the payment terms in a bid – Net Present Value.
– “Which Would You Pick” Tender Comparison – Analysis of the payment terms (Exercise).
5. PRICING (LECTURE & EXERCISES )
– Brief brainstorming session to identify different ways of pricing
– Pricing and payment strategies mini cases.
– Pricing exercise for providing services over an extended time period.
– How to make the tender look cheaper – brainstorming.
6. THE SPAN CONTRACT (LEGO BRICK EXERCISE)
Estimating and bidding for a Lump Sum Contract with all the inherent risks involved. Managing the practical realities of a Lump Sum Contract.
