Estimating – Pricing & Cost Control Training

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. INTRODUCTIONS
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.
• 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

3.TYPES OF CONTRACT

The different types of contract and their payment terms.

4. PROCUREMENT & TENDER ASSESSMENT (Lecture & Exercises)

• 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.

5. CASH and PROFIT (LECTURE & EXERCISES)

• 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.
• The effect of the payment terms on the pricing of the tender The advantages of progress payments v’s 100% upon completion.
• “Which Would You Pick” Tender Comparison – Analysis of the payment terms (Exercise).

 6. PRICING (LECTURE & EXERCISES)

• Brief brainstorming session to identify different ways of pricing.
• Pricing exercise for providing services over an extended time period.
• How to make the tender look cheaper – brainstorming and discussion.

7. PAYMENT of PRICE (LECTURE & EXERCISES)

 Pricing and payment strategies – mini cases.

8. REASONS FOR COST CREEP (Group Exercise)

A brainstorming session to identify the reasons and areas of cost escalation.

9. 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.

10. 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.

11. 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.

12. 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: 2 Days

Cost: £595 + VAT

Cost Control Training Scotland, Inverness, Aberdeen, Glasgow, Edinburgh, Dunfermline and other sites throughout the UK including onsite closed company courses are available.