Module 2: Project Cost Control

PGP/COSTCTL-E

Who should attend?

  • Optimization and control of the cost and schedule of Oil & Gas Downstream projects.
Audience :
  • Engineers (Owner, Contractor) involved in Oil & Gas Downstream projects.

Level : Foundation

Course Content

  • COST OPTIMIZATION

      • Value engineering: functional breakdown of the project, technico-economic assessment of each part.
      • Economic evaluation of the process and technical alternates. Decision-making process.
  • COST CONTROL

      • Principles and purpose of cost control. Responsibilities of owner and EPC contractor.
      • Cost reporting: frequency, consistency with budget/WBS, presentation. 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.
  • PROGRESS CONTROL

      • Progress control methodology. Critical path and completion date updating.
      • Relationship between cost control and progress control.
      • Impact of schedule changes on CAPEX and project profitability. Action plan prioritization.

Learning Objectives

  • Upon completion of the course, the participants will be able to:
  • optimize the capital cost of a project,
  • control cost and schedule of a project during execution,
  • evaluate the cost impact of schedule delays.

Ways & Means

  • Each concept is illustrated by a practical cost exercise.
  • Group discussions to share feedback experience from participants on actual projects.