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Project Cost & Oxford finacil excellence programs 10 day

Locations & Dates:

Date: 20 Aug - 14 Sep 2017
Ref: F2049
Location: Jordan (Amman)
Fees: 5650 

MERC Training Center reserves the right to alter dates, content, venue and trainer with a reasonable notice time.
One extra free place for every 2 paid nominees

Cost Estimating Basics

  • The estimating life cycle
  • Phases of the Design Process
  • Programming phase
  • Schematic design
  • Design development
  • Construction documents
  • Estimating accuracy by phase
  • Conceptual Cost Estimates
  • Rough Order of Magnitude Estimates (Broad Scope Estimates)
  • Assemblies cost estimates
  • Cost indices
  • Semi-detailed Estimates (Narrow Scope Estimates)
  • Definitive Estimates (Detailed Scope Estimates)
  • Basic procedures
  • Lump-sum contracts
  • Unit-price contracts
  • Cost-plus contracts
  • Cost-plus contract with guaranteed maximum price (GMP)
  • Time-and-materials contracts
  • Bid method
  • Negotiated method
  • Quantity take-off
  • Types of construction contracts
  • Procurement methods
  • Pre-construction services
  • Risk analysis and contingencies

Broad Scope Cost Estimating Techniques

  • Adjustments to Project Cost for Broad Scope Estimates
  • PERT Project Cost Analysis
  • PERT Unit Cost Estimates
  • Formulae for Cost Estimating
  • The Normal Distribution Curve
  • Z-Value Table
  • The Probability of Project Completion within Budget
  • Estimating Project Unit Cost by Using the Standard Deviation
  • Estimating the Project Unit Cost at a Required Probability
  • The Probability of Completing the Project at a Required Cost
  • PERT vs. Standard Deviation & Z-Values
  • Adjustments to Estimates Based on Previous Projects
  • Adjustments for Time
  • Review: Future Value of Money
  • Review: Present Value of Money
  • Equivalent Annual Interest Rate
  • Index to Adjust for Time
  • Equivalent Compound Interest
  • Location Index for Construction
  • Adjustments for Location
  • Adjustments for Size
  • Combined Adjustments
  • Economic Price Adjustment
  • Estimating Durations based on the Learning Curve Effect
  • Estimating Costs based on the Learning Curve Effect
  • Unit-Cost Adjustments
  • Learning Curves

Budget Estimating Process

  • Estimating by design phase
  • Programming budget estimates
  • Schematic design budget estimates
  • Design development budget estimates
  • Estimating pre-construction services
  • Request for proposal
  • Development of pre-construction services estimate
  • Pre-construction services contract
  • Budget control log

Bid Contract Estimating Process

  • Pre-estimate activities
  • Estimating process
  • Solicitation of lump-sum bids
  • Order-of-Magnitude estimates
  • Work Breakdown Structure
  • Estimating team
  • Scheduling the estimating work
  • Subcontractors and major suppliers
  • Estimating forms
  • Accuracy and error prevention
  • Pricing self-performed work
  • Recap sheet, Materials, Labour
  • Applying pricing factors
  • Summary recap
  • Subcontractor work
  • Project summary schedule
  • Alternative techniques
  • Elements of the general conditions estimate
  • Final document review
  • Completing the bid summary
  • Final mark-ups
  • Sales tax, Validating the estimate
  • Estimating subcontractor work
  • Estimating General Conditions
  • Completing the estimate

Unit Price Estimates

  • Unit price bid forms
  • Direct cost estimation
  • Materials
  • Labour
  • Indirect labour
  • Subcontractors
  • Recap summary sheet
  • Direct-to-indirect cost factor
  • Mark-up determination
  • Variation-in-quantity contract provision
  • Risk analysis
  • Bid finalisation

Negotiated Contract Estimating

  • Guaranteed Maximum Price Estimates
  • Contract procurement process
  • Documents
  • Strategies
  • Estimating process
  • Contingencies
  • Fee determination for negotiated contracts
  • Reimbursable versus Non-reimbursable costs
  • Home office overhead
  • Risk evaluation
  • Fee structure
  • Cost savings split
  • Strategies for responding to the Request for Proposal
  • Documents to be included with the Request for Proposal
  • General Contractor interview and selection process
  • Negotiated subcontracts
  • Cost proposals for negotiated contracts

Contract Types and Compensation Arrangements

  • Risk distribution in contracting
  • Project risk profiles
  • Contract types according to risk distribution
  • Fixed Price Contracts
  • Firm Fixed Price
  • Fixed Price with Economic Adjustment
  • Incentive Contracts
  • Fixed Price Incentive
  • Cost Plus Incentive
  • Cost Reimbursement
  • Cost Plus Award Fee
  • Cost Plus Fixed Fee
  • Cost-Plus Contracts
  • Time-and-Materials

Narrow Scope Cost Estimating Techniques

  • Power-sizing techniques (Capacity Ratios)
  • Factor estimates
  • Cost estimating relationships (CER)
  • Design-to-cost-estimates
  • Target cost estimates
  • Adjusting for Project Type and Quality Level
  • Features Determining the Quality Level (Grade) of a Structure
  • Adjusting for Quality Level by Using a Costing Publication
  • Economic Constraints
  • Parametric Cost Estimating
  • Analysis of Estimating Accuracy

Framework for Applying Value Engineering in Projects

  • What is Value Engineering? Why is it important?
  • Defining Value Engineering concepts and principles
  • Purpose of Value Engineering and Value Analysis
  • Strengths and Weaknesses of Value Engineering
  • How and When is Value Engineering applied?
  • Project definition and initiation
  • Project scope and charter development
  • Life-cycle costing techniques
  • Project stakeholders analysis and management
  • Identifying relationships between Value, Cost and Worth
  • Initiating Value Engineering Process
  • Overview of Different Value Engineering Phases
  • The Information Phase – steps and procedures
  • Developing Value Engineering Job Plan

The Function Analysis Phase - Expressing Project Functional Needs and Constraints

  • The need for Function Analysis in projects
  • Defining project constraints – relationships and tradeoffs
  • Conceptual project cost estimating techniques
  • Function-Cost-Worth Analysis
  • Developing FAST Diagrams to identify critical project components
  • The Technical FAST Model to perform project value analysis
  • Case Study
  • Cross-Functional Project Team Approach

The Creative Phase - Inspiring Creativity in Your Project Team

  • Creativity and Creative thinking within the project environment
  • Individual vs. Group thinking to improve the quality of project decisions
  • Creativity techniques as applied to optimize project value
  • Blocks to creativity within the project team
  • Brainstorm project solutions
  • Reaching consensus and leveraging the power of project team collaboration
  • Project risk perception and identification
  • Project prioritization process using the Delphi technique
  • The use of Force-field analysis in project problem solving
  • Output of the Creative Phase

The Evaluation Phase -Making Informed Project Decisions

  • Project ideas screening
  • Project evaluation methods
  • Quantitative evaluation using objective data
  • Subjective evaluation – project-related criteria weighting
  • Revisiting project life-cycle costing analysis
  • Incorporating inflation in project economic analysis
  • Performing project risk and scenario analyses
  • Risk Life-cycle simulation modelling - best and worst project cost scenarios
  • Pitfalls associated with the use of existing economic models
  • Incremental benefit-cost analysis for project evaluation
  • Effective Decision-making in project environment
  • Output of the Evaluation Phase

The Planning and Reporting Phases -Getting Results through Effective Communication

  • Develop and assess VE proposals to optimize project value
  • Develop action plans and assign project roles and responsibilities
  • Reporting VE findings to Senior Management and project stakeholders
  • Mastering oral presentation techniques & interpersonal skills
  • Strategies for project plan execution
  • Incorporating VE into the early project phases
  • Integrating VE with Continuous Improvement Techniques
  • Wrap-up

Fundamentals of Strategic Planning

  • What is strategy?
  • Strategic management
  • Strategic analysis
  • Mission
  • Objectives
  • Strategic decision-making
  • The strategic planning process
  • Environmental analysis
  • Resources analysis
  • Strategic choice and strategic decision-making
  • Strategic implementation
  • Corporate objectives and accountability
  • Forecasting financial data

Fundamentals of Financial Statements

  • Financial statements
  • Balance sheet
  • Income statement
  • Alternative asset valuation methods
  • Cash flow statement
  • Common size (or horizontal) trend analysis of financial statements
  • Vertical trend analysis of financial statements
  • Segmental analysis of financial statements
  • Value added analysis of financial statements
  • Understanding the cash flow cycle and the operating cycle
  • Break-even and multiple product break-even analysis

Capital Structure and Leverage

  • Sources of funds
  • Capital cost models
  • Cost of equity
  • Cost of debt
  • Weighted average cost of capital (WACC)
  • Can we determine a company’s optimal capital structure?
  • Capital structure models
  • Preparing projections to determine financing needs

Capital Budgeting

  • Future values, present values and DCF
  • Capital budgeting principles
  • Methods of evaluating capital investment projects
  • Accounting rate of return (ARR) and payback
  • Net present value (NPV) versus internal rate of return (IRR)
  • How do you choose which method to use?
  • Equivalent annual cost (EAC) method
  • Capital budgeting methods
  • Capital asset pricing model (CAPM) versus arbitrage pricing theory (APT)
  • Does it make a difference whether we lease or buy?

Managing Financial Risks

  • The value of perfect information (VOPI)
  • Types of risk
  • Risk management principles
  • Talking to your bankers about managing risk
  • How to develop the tools for your company?
  • How to minimise risk?
  • Insurance and hedging
  • Interest rate and foreign currency exchange rate risk

The Challenge of Financial Economic Decision-Making

  • The practice of financial economic analysis
  • Corporate value and shareholder value
  • A dynamic perspective of business Benchmarking your own strategic position/competitor analysis
  • The agency problem and corporate governance
  • What information and data to use?
  • The nature of financial statements
  • The context of financial analysis and decision-making

Assessment of Business Performance

  • Ratio analysis and business performance
  • Management’s point of view
  • Owners’ point of view
  • Lenders’ point of view
  • Ratios as a system – pyramids of ratios
  • Integration of financial performance analysis – the Dupont system
  • Economic value added (EVA)
  • Predicting financial distress

Projection of Financial Requirements

  • Interrelationship of financial projections
  • Operating budgets
  • Standard costing and variance analysis
  • Cash forecasts and cash budgets
  • Sensitivity analysis
  • Dynamics and growth of the business system
  • Operating leverage
  • Financial growth plans
  • Financial modelling

 Analysis of Investment Decisions

  • Applying time-adjusted measures
  • Net present value (NPV) and internal rate of return (IRR)
  • Strategic perspective
  • EVA and NPV
  • Refinements of investment analysis
  • Equivalent annual cost (EAC)
  • Modified internal rate of return (MIRR)
  • Sensitivity analysis, scenario analysis, simulation, and NPV break-even
  • Dealing with risk and changing circumstances

 Valuation and Business Performance

  • Managing for shareholder value
  • Shareholder value creation in perspective
  • Evolution of value-based methodologies
  • Creating value in restructuring and combinations
  • Financial strategy in acquisitions
  • Business valuation
  • Business restructuring and reorganisations
  • Management buy outs (MBOs) and management buy ins (MBIs)