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Description

 
 

Practical approach to techniques and methods to control and reduce project costs:

  • Establishing a cost reference: cutting – initial budget and its evolution,
  • Establishing a forecast cost: notions of costs and status, curbs, going from the present to the forecast,
  • Managing disturbing events: modifications, inflation, risks,
  • Applying in practical terms to project activities,
  • Establishing a cost report, experience return.
 

Targets

 
 
  • Acquiring concepts and principles of cost control.
  • Knowing how to apply methodologies within a project.
  • Developing "cost control" reflexes

Public concerned

 
 
  • Project managers
  • Estimation managers-engineers
  • Cost control managers-engineers

Programme

 
 
Introduction
  • Project accounting and management: brief definitions
  • Estimation and cost control (respective place)
Definition and targets of cost control
  • Concept of cost control: Target, Where are we? Where are we going? What to do? What's going to happen?
  • Terminology of cost control: initial and revised budget, committed, incurred costs, expenditure, forecast final cost variations, deviations
  • Method used: the 3 phases of the cost control process
  • Factors influencing cost control
Implementation of the Reference
  • Project execution plan (PEP): process of drawing up
  • Project breakdown: target, principles and characteristics
  • Codification of costs: needs to satisfy and practical establishment provisions
  • Constitutive elements of the reference budget (example): definition and calculations of budget elements
  • Creation of the initial budget from the estimation price sheet
  • Evolution of the initial budget towards the current budget
Information system and status measurement system
  • Implementation of an information system: procedures
  • Documents necessary for the cost controller on the project
  • The duty of ’investigation, anticipation and alert by the cost controller
  • Principle of measuring physical status comparison with expenditure, measurement of productivity
  • Status curbs: CBTP, CRTE, CBTE
Cost control applied to big project activities
  • Cost control of studies: hourly rates, direct associated costs, subcontracting, re-evaluation of hours and costs.
  • Cost control of supplies of material: internal or external buying, main or secondary materials, evolution of technical specifications and quantities, analysis of orders and amendments.
  • Cost control of work: contracts with price lists or fixed prices• Principle of the method of «remains to commit».
  • Variations and remedial action according to situations
  • The forecast final receipt
Evolutions of the project
  • Types of evolution: corrections, adaptations or modifications
  • Procedure of dealing with modifications: collection of propositions, decisions for instruction and execution
  • Considering modifications in the budget and forecast cost
  • Follow-up of the treasury and costs or financial products of the project
  • Change-risk management and other risks
Cost control report
  • Targets of control reports.
  • Form and frequency of cost reports
  • Detailed content of cost reports
  • Experience return: result and capitalisation
Conclusions
  • Main causes causes of cost drifts in engineering projects
  • Mission and responsibilities of the cost controller
  • Thoughts about the job of the PCM (Project Control Manager)
 
 
 
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