Budget Estimation & Cost Control For Complex Projects

About the Course

Providing accurate cost estimating for complex projects under tremendous amount of uncertainty and lack of data, and all to be done within a concise time frame, is a difficult task. Managing costs and ensuring they fall within budget is even more challenging. This is partially because project costs are estimates rather than fixed estimates. However, costs must be lean and meticulously controlled in the current climate. We understand that this new era of project cost estimation puts much pressure on your business.

This 5-day interactive Budget Estimation & Cost Control for Complex Projects training course provides delegates with key cost awareness and budgetary skills, which are essential for managing and controlling resources in times of increasing global competition where the budgets are inextricably linked with both the achievement of strategic objectives as well as with the evaluation of future plans and initiatives.

Budgeting and cost analysis are crucial elements for the management of contemporary organisations. Nowadays, if companies want to stay competitive, they are urged to link their strategies with accurate resource allocation and performance measurement systems. Along this line, budgeting, tracking, controlling & reducing costs represent essential activities to be performed and monitored by organisations as they implement their key processes, activities and operations. In addressing these issues, it is relevant for those professionals & analysts facing the difficult challenge of improving performance while reducing the costs of those processes for which they are accountable.

Core Objectives

The delegates will achieve the following objectives:

• Acquire best practices for cost estimation and budget control models
• Understand the procurement engagement protocols
• Knowledge of business partnering and client relationship management
• Know the use of market analysis vendor testing
• Learn vendor pre-qualification techniques
• Accurately determine the costs of each individual activity in the project
• Learn negotiation techniques and bid analysis to balance the six key

Training Approach

This training course will be conducted along with workshop principles with formal lectures, case studies, and interactive work examples. Relevant case studies will be provided to illustrate the application of each tool in an operations environment. Each learning point will be reinforced with practical exercises.

The Attendees

This training course is designed for companies wanting to reduce and sustain control of project spend whilst delivering value for money.

Likewise, it will be valuable to the professionals but not limited to the following:

• Project Controls Manager
• Project Controllers
• Project Office Managers
• Project Managers
• Contract managers
• Project Planners & Schedulers
• Project Engineers
• Cost Controllers
• Cost Managers
• Cost Engineers

Daily Discussion

DAY ONE: BUDGETING WITHIN A STRATEGIC FRAMEWORK

• Basic Project Management Definitions
• Budget as a Financial Planning Tool
• Typical Project Terminology & Setting up for Success
• Keys to More a Strategic Budgeting Process
• Strategic Budgeting Methods
• Translating Strategy into Business Plan
• Resource & Cost Allocation

DAY TWO: THE KEY FINANCIAL STATEMENTS AND ANALYSIS

• Role of Financial Reporting and Analysis
• Financial Statement Analysis Framework
• The Basic Financial Statements
• Financial Statements vs Financial Reports
• The Tools of Financial Analysis
  • Vertical Analysis
  • Horizontal Analysis
  • Ratios Analysis
  • Break-Even Analysis
• Relationship, Elements, and Classification of Financial Statements

DAY THREE:  PROJECT BUDGET MANAGEMENT & COSTS

• Project Budget Management: What is it?
• Project Management Budgeting Methods
• How to implement Project Budget Management?
• Project Performance Measurement:
  • Planned Value (PV), Earned Value (EV), and Actual Value (AV)
  • Project Financial Performance Index
• Project Time Schedule and Critical Path Concept

DAY FOUR: PROJECT COST MANAGEMENT VS COST CONTROL

• What is Cost Control?
• Factors of Cost Control
• Cost Control Methods
• What is Cost Management?
• Direct vs Indirect Costs
• Fixed Costs and Variable Costs
• Strategic Cost Management
• Techniques of Project Risk Management

DAY FIVE: CAPITAL EXPENDITURE BUDGETING AND ANALYSIS ”INVESTMENT APPRAISAL”

• Time Value of Money
• Simple vs Compound Interest
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Pay-Back Period (PBP)
• Accounting Rate of Return (ARR)
• Sensitivity “What If”  Analysis