After participating in this course, you will be able to:
• learn the principles and processes of cost engineering
• familiarize yourself with cost estimating tools and methods
• be able to prepare cost estimates and understand those prepared by others
• gain insights on how to forecast and control costs
• understand ways to make cost reports more customer-focused
• become proactive in dealing with variations from plan
• be able to conduct value analysis of competing options and risk assessments
•obtain practical guidelines on forecasting costs and schedule
• be recognized as cost engineering practitioner in your team
• improve ways of developing rapport with others and opening channels of communication
• augment your influencing skills even when you have no formal authority
• develop a holistic view of your project work meshing people, systems and equipment from the technical as well as financial standpoint

Description
Project leaders and technical staff who are charged with delivering tangible results in their areas of responsibility require objective cost assessments for funding and control decisions on ongoing basis. The business purpose of the cost engineering function is to provide these assessments early and reliably, so that better decision may be made.

This seminar examines the key concepts of cost engineering including estimating, risk analysis, cost control, scheduling and change management to achieve best value for investments and expenditures. It provides methodologies, procedures and tools (e.g. tables, forms) to do the work, along with hands-on experience on their use. Participants will be in a position to use these tools and procedures starting immediately to meet success criteria of current activities.
 
Objectives
To provide an understanding of the key concepts of cost engineering and where/how they should be applied. To provide proven, effective cost estimating and control methods. To enable participants to prepare estimates and assess/mitigate risk by utilizing appropriate sources, and to use these data plus forecasting techniques for cost control.   

Who Should Attend
Engineers, technical staff, project managers, construction managers, entry level estimators and others who wish to increase their mastery of cost estimating and control.

You Will Receive
The course also includes a copy of the text book, Construction Budgeting, 2nd Edition

Faculty: Norman Lux, LCVM Consultants Inc. and George Evans, LEC Quantity Surveying Inc.

Program Outline

Day I

Welcome, Introduction, Workshop Preview, Learning Outcomes and the Assessment Method

 I Cost Management Overview
Ten fundamentals for cost control
Project and process models for development
Roles and responsibilities
Models of project and process development
CIQS and AACE mission statements 
Budgeting benchmarks and standards
Budgeting/cost management template

 II Cost Engineering Practices
Definition and types of work breakdown
Structures
Outputs from the process
Data gathering
Comparing elemental costs to a model
Quantity surveyor training
AACE international certification
Changes in the workplace 

III VE Workshop Process
Overview of five step consensus building approach
Optimum times to have a value engineering workshop
Taking wants to possible solutions to best value selection
Using paired comparison technique

IV Risk Management
Categories of risk
Measurement for risk contingencies
Mitigating risk
Phases for risk assessment
Template/sample risk management pesentation

Day II

V Cost Control and Management
Explaining constant and escalated dollars
Cost tracking historical costs
Forecasting and trending
Authorization for cost control and expenditure
Cost reporting at checkpoints
Fixed asset/replacement and insurance values
Change requests; instructions and orders
Schedule impacts
Close-out procedures

VI Computer Based Estimating
Software and databases
Measuring
Pricing
Historical data
Consultant/contractor approaches
Contract files
Measurement demonstration on case study

VII Cost Estimating
Capital, operating and cyclical estimates
Estimating perspectives
Hard and soft costs
Selection and preparation of templates
 Checklist for a good estimate
Cost monitoring
Total Cost Management (TCM) technique

VIII Life Cycle Costing
Overview
The basic elements
Benefits and uses
Life cycle cost worksheet
Case study
Presentation/templates

Final Review and Examination
Lessons learned
Certificates
Next steps

Questions and Answers and Feedback to Participants on Achievement of Learning Outcomes

There will be a one-hour lunch break each day in addition to a refreshment and networking break during each morning and afternoon session.

Daily Schedule:
8:00 Registration and coffee (first day only)
8:30 Session begins
12:00 Lunch
4:30 Adjournment