Construction Cost Estimating and Cost Control

Introduction

The Construction Cost Estimating and Cost Control course is designed to provide professionals in the construction industry with the essential skills and knowledge required for accurate cost estimation and effective cost management throughout a project’s lifecycle. Accurate cost estimating and effective cost control are critical for ensuring projects are completed on time, within budget, and to the desired quality standards. This five-day course will explore various estimating techniques, cost management strategies, and control systems used to monitor and manage project costs. Participants will also learn how to handle cost overruns, manage risks, and utilize software tools for efficient cost estimation and tracking.

Course Objectives

By the end of this five-day course, participants will be able to:

1. Understand Construction Cost Estimating: Gain a thorough understanding of construction cost estimating principles, including labor, material, and overhead costs.
2. Apply Estimating Techniques: Learn various techniques for estimating costs, such as unit cost estimating, detailed takeoff, and conceptual estimating.
3. Develop Accurate Budgets: Create detailed and realistic project budgets that align with project requirements and stakeholder expectations.
4. Utilize Cost Control Methods: Implement cost control processes to monitor project spending, identify variances, and take corrective actions as necessary.
5. Manage Risks: Understand how to identify and manage risks associated with cost overruns and schedule delays.
6. Leverage Technology and Software: Use construction estimating and cost control software tools to improve accuracy and efficiency.
7. Assess and Mitigate Cost Overruns: Develop strategies to manage and reduce cost overruns through proactive planning and continuous monitoring.

Course Outline

Day 1: Introduction to Construction Cost Estimating

• Overview of Construction Cost Estimating: Purpose and Importance
• Key Components of Construction Costs: Labor, Materials, Equipment, Overheads, and Profit
• Types of Estimates: Preliminary, Detailed, and Final Estimates
• Estimating Life Cycle Costs and Contingencies
• Understanding the Role of the Estimator in the Construction Process

Day 2: Estimating Techniques and Methods

• Detailed Takeoff and Quantity Surveying
• Unit Cost Estimating: How to Calculate Unit Rates for Labor, Materials, and Equipment
• Conceptual Estimating: Estimating Costs Based on Project Scope and Historical Data
• Use of Historical Data and Benchmarking for Accurate Estimates
• Estimating Indirect Costs (Overhead, Profit, and Contingencies)
• Case Study: Estimating Costs for a Construction Project

Day 3: Construction Budgeting and Cost Control Fundamentals

• Developing a Construction Budget: Key Elements and Process
• Cost Control Systems: Types of Cost Control and Monitoring Techniques
• Monitoring Project Progress and Identifying Cost Variances
• The Role of Earned Value Management (EVM) in Cost Control
• Establishing a Cost Control Framework: Planning, Tracking, and Reporting
• Practical Example: Budget Creation and Cost Tracking

Day 4: Managing Cost Overruns and Risks

• Identifying Potential Causes of Cost Overruns in Construction Projects
• Risk Assessment and Mitigation Strategies for Cost Control
• Managing Changes in Scope and Variations
• Change Order Management and Its Impact on Costs
• Implementing Contingency Plans and Risk Reserves
• Case Study: Managing and Mitigating Cost Overruns

Day 5: Technology and Software in Cost Estimating and Control

• Introduction to Cost Estimating and Control Software
• Benefits of Using Software Tools for Estimating and Cost Control
• Using Software for Tracking Costs, Project Milestones, and Resource Allocation
• Integrating Estimating, Budgeting, and Cost Control into a Centralized System
• Developing a Cost Control Strategy Using Technology
• Final Group Exercise: Using Software for Estimating and Managing Costs
• Course Recap and Final Assessment