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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.
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- Acquiring concepts and principles
of cost control.
- Knowing how to apply methodologies
within a project.
- Developing "cost control"
reflexes
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- Project managers
- Estimation managers-engineers
- Cost control managers-engineers
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| Introduction |
- Project accounting and management: brief
definitions
- Estimation and cost control (respective
place)
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| 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
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| 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
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| 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
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| 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
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| 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
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| Cost control report |
- Targets of control reports.
- Form and frequency of cost
reports
- Detailed content of cost reports
- Experience return: result and capitalisation
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| 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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