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.
- 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.