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Estimation & Cost Control

4 days PGP/EMCOU-E
Level
Foundation
Audience
  • Project engineers and managers, engineering contractors, equipment and services providers.
Purpose
  • Estimate and control the cost of oil and gas projects.
Learning Objectives
  • To estimate the cost of a project at various stages, using an accurate database.
  • To evaluate the accuracy of this cost estimate and the main risks of cost overrun.
  • To control the cost of a project during execution.
Ways and means
  • Each type of estimating method is illustrated by a practical cost estimating exercise.
  • Some applications may be done with Excel spreadsheets.
  • Use of Internet references (AACEI, Oil&Gas Journal, well-known software tools and databases).
  • Group discussions to share feedback experience from participants on actual projects.
Observation
Course consistent with the PMI standards and the 5th edition of the PMBOK. PDUs: 24

Project stage-gate process 0.5 day
  • Reminder of the process and of the main stages. Purpose of a project. Definitions. Importance of cost control.
  • Economic and HSE justification. Cost types. Capital vs Expense. CAPEX vs OPEX.
Project cost estimating methods 2.5 days
  • Definitions
  • Cost references, estimating classes (AACEI). Direct and Indirect costs. Work Breakdown Structure.
  • Project Initiation stage
  • Order of magnitude estimate (Chilton factors). Typical accuracy and traps. Factored estimate (Lang/Guthrie factors). Escalation and inflation, Nelson-Farrar indices, localization factors.
  • FEED & contracting stages
  • Semi detailed estimate, detailed estimate. Key role of engineering studies.
  • Elements needed for final approval by Owner and EPC contract endorsement.
  • Estimating the cost of main equipment, of works, of engineering services. Owner costs.
  • Available software packages and databases. Importance of feedback.
  • Cost risk analysis
  • Project risk identification and evaluation. Potential impact on cost estimate. Action plan.
  • Allowances and contingencies, evaluation through statistical and deterministic methods.
Cost control 1 day
  • Principles and purpose of cost control. Responsibilities of Owner and EPC Contractor.
  • Cost reporting: cost report, frequency, consistency with budget and WBS, presentation. Cost to complete.
  • Understanding of the various types of cost changes, relationship between cost and schedule progress. Cost forecast.
  • Cost reduction: cost estimate optimization, value engineering. Cost reduction during execution. Action plan monitoring.
  • Change management: impact of changes. Evaluation and management of changes and deviations to standards.
2016 course calendar
Language Dates Location Tuition Register
Oct 04 - 07 Martigues €2,120 Online By email