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Estimation & Cost Control

4 days PGP/EMCOU-E
Level
Foundation
Audience
  • Engineers involved in Oil & Gas Downstream projects.
Purpose
  • This course provides a thorough knowledge on how to estimate and control the cost of Oil & Gas Downstream projects.
Learning Objectives
  • Upon completion of the course, participants will be able to:
  • estimate the cost of a project at its various stages, using an accurate database,
  • evaluate the accuracy of this cost estimate and the main risks of cost overrun,
  • contribute to project cost optimization and value engineering,
  • control the cost of a project during execution.
Prerequisite
  • Operational knowledge of the Project Management process.
Ways and means
  • Each type of estimating method is illustrated by a practical cost estimating exercise (possibly on Excel).
  • 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 and AACE standards. Worth 24 PDU.

PROJECT COST ESTIMATING METHODS 2.5 days
  • Project Management Process reminder, including deliverables at each stage.
  • Definitions, cost references, AACE classes. Direct and Indirect costs. WBS. CAPEX vs OPEX.
  • Order of magnitude estimate (Chilton factors). Typical accuracy and traps. Localization factors.
  • Factored estimate (Lang/Guthrie factors). Escalation, Nelson-Farrar indices.
  • Cost of main equipment, of works, of engineering services. Owner costs.
  • Semi-detailed estimate, detailed estimate. Key role of engineering studies.
  • Elements needed for final approval by Owner and EPC contract endorsement.
COST RISK MANAGEMENT 0.5 day
  • 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 optimization: brainstorming process, Owner roles and responsibilities. Typical ideas.
  • Cost reporting: frequency, consistency with budget/WBS, presentation.
  • Relationship between cost control and progress control. Cost forecast to complete.
  • Cost reduction during execution. Cost Controller duties. Action plan monitoring.
  • Change management: impact of changes, evaluation, decision-making, communication within Owner.
2017 course calendar
Language Dates Location Tuition Register
Mar 14 - 17 Rueil €2,330 Online By email
Oct 10 - 13 Martigues €2,140 Online