Cost Estimating Essentials

About the course

Cost Estimating Essentials Course by Cost Engineering Academy covers A to Z of cost estimation. You will learn terminology and approaches for different methods of cost estimating, while also learning how to apply them in your everyday work. Next to preparing estimates, we discuss validation, benchmarking and setting up an integrated cost estimating process in your company. It is an interactive course, with many case studies on which we work in groups.

What you’ll learn

By the end of the course, you will have gained:

• An understanding of the essentials of cost estimation and its relation to cost control, planning, contracting and risk management.
• The ability to create your own factor and detail estimates.
• The ability to setup estimate reports, and validate estimates of colleagues and 3rd parties
• The knowledge to prepare estimates more quickly and accurately.
  This will immediately improve the control you have over your projects and your profitability.
• The insight to identify major cost drivers and risks of engineering.
  When combined with the estimating techniques we discuss, this enables you to estimate the engineering effort involved in your projects, control your project and prevent budget overruns.

Our Clients

The Cost Engineering Academy is trusted by many industry leaders, such as:

“Cost Engineering Academy is one of the best within their profession. I have attended the estimating courses and found them very helpful. The courses gave me an excellent knowledge of  Cost Engineering, which helped me a lot during my work life as an Engineering Manager. The courses are “best in class” and up to date, hence I would like to recommend them as a professional .”

– Mikael Hesselberg , Engineering Manager at NNE

“I had a very good time here. I enjoyed the lectures for the Cost Estimating Essentials Course. Thanks a lot for sharing the knowledge and the experience. I hope to come back again for another training.”

– Aiman Hamadah, Project Leader at SATORP

This course is aimed at:

This course is suitable for project team members who are looking to establish a robust command of cost estimating concepts and techniques. Experienced cost estimators who need to keep their cost estimation knowledge and skills up-to-date and relevant would benefit from this course. Also, the individuals interested in getting a comprehensive understanding of cost estimation are recommended to attend.

We encourage executives and managers to attend the course together with their teams to take full advantage of the learning opportunity and for a successful implementation.

• Project manager / director;
• Finance project executive / manager;
• Project engineer;
• Cost estimator;
• Project cost engineer;
• Discipline leads;
• Members of the purchase department;
• Members of a tendering team;
• Work preparators
• All who are involved in technical projects, cost estimation, cost control and planning and contract review in their organizations.

Requirements

There are no specific requirements to be able to attend this course.

Program

On the first day, you will learn about specific approaches to cost estimating and their related terms. You will also learn the estimation types and classifications that can be used at certain stages of your projects. The second and third day focus on detailed and factor estimating, the two main estimating techniques and how to apply them.

The fourth and final day focuses on estimating the cost of the actual engineering work. This means that, together with estimating methods, you will be able to keep the cost down for your engineering phases, and as a result of this, you will be able to prevent budget overruns.

Day 1 – Introduction to cost engineering

• The basic definitions of and ties between cost estimation, cost control and planning.
• The position of estimating in each phase of the lifecycle of a project.
• Common cost estimating methods and terminology.
• Accuracy and contingency of the estimate.
• Preparing estimate reports.
• Setting up the estimate for succesful integration in the project team.
• Value Engineering as part of optimizing the project cost.
• Case study about preparing an estimate and including contingency.

Day 2 – Detail estimating

• Detail estimating methods.
• Principles of the quantitative method.
• Buildup of unit rates.
• Adjusting the estimate to project conditions with factors.
• Direct versus indirect costs.
• Various case studies in preparing estimates by using various techniques for different disciplines.

Day 3 – Factor estimating

• Different factor estimating methods.
• Advantages and disadvantages.
• Adjusting methods to company and project specifics.
• Estimating of process equipment.
• Estimating using cost models and engineering standards.
• Location factor study.
• State of the art: Quantitative factor estimating techniques.
• Various case studies in preparting estimates for equipment and total project costs.

Day 4 – Estimating of engineering

• Understanding engineering activities and deliverables.
• Engineering effort in engineering phases.
• Methods of estimating engineering.
• Detailed approach per discipline.
• Influence of contract methods on a project.
• Various case studies in preparing estimates for engineering.

Price

The Cost Estimating Essentials course is offered in two different course formats. The prices for the different course formats are:

Payment will need to be completed before attending the course.

Learn more about our Live Virtual Courses.