Pricing the Right Scope: A Value Engineering and Project Cost Estimation Training Course (Online / Remote)
1Summary
Two estimators can both follow the process correctly and still land on very different numbers — because they priced two different versions of the same scope, and nobody had tested whether that scope was the right one to begin with. Getting the estimate "accurate" isn't enough if the thing being estimated was never value-tested.
The Value Engineering and Project Cost Estimation training course, delivered by Arab British Fellowship Training Academy as part of its Project Management Training Courses, connects the two disciplines directly: building reliable cost estimates and budgets, then applying Value Engineering and engineering economics to make sure the scope behind those numbers is worth paying for.
2Objectives and target group
Who Should Attend?
- Project Managers and Project Controls Professionals
- Cost Engineers, Estimators, and Quantity Surveyors
- Civil, Mechanical, Electrical, and Project Engineers
- Construction Managers and Cost Controllers
- Procurement and Contract Professionals
- Financial, Budgeting, Design, and Technical Managers
What You'll Gain
- Build reliable project cost estimates using the right method for the right stage
- Develop a cost breakdown structure and convert estimates into approved budgets
- Apply value and functional analysis to test whether the priced scope is worth it
- Use engineering economics to compare technical and financial alternatives
- Apply cost control techniques and manage estimating risk, contingency, and variance
- Use Value Engineering to cut cost without cutting required performance
- Estimate procurement and contract costs, and integrate value and cost decisions
3Course Content
Module 1: An Accurate Estimate for the Wrong Scope Is Still Wrong
- Relationship between value, function, cost, and performance
- Project cost structure and the purpose of cost estimating
- Value-driven project decision-making
- Role of estimators and value engineering teams working together
Module 2: Getting the Estimate Right: Principles and Methods
- Types of estimates: preliminary, conceptual, budgetary, and detailed
- Estimating assumptions, constraints, and sources of cost data
- Analogous, parametric, bottom-up, unit-rate, and comparative estimating
- Selecting the appropriate estimating method for the project stage
Module 3: Breaking Down the Numbers: Quantities, Costs, and Structure
- Quantity identification and measurement
- Labour, material, equipment, and subcontractor costs
- Direct and indirect costs, unit costs, and productivity rates
- Developing a cost breakdown structure that supports estimate accuracy
Module 4: From Estimate to Approved Budget
- Developing project budgets and cost allocation
- Establishing cost baselines
- Budget assumptions, contingencies, and resource planning
- Budget approval, control, and managing changes
Module 5: Testing the Scope: Value and Functional Analysis
- Functional analysis and identifying essential versus non-essential functions
- Function-cost relationships and analysing cost drivers
- Generating value improvement alternatives
- Evaluating functionality against cost
Module 6: The Economics of the Decision
- Economic evaluation principles and cost-benefit analysis
- Comparing project alternatives
- Present and future value concepts
- Investment decision-making and economic assessment of technical solutions
Module 7: Keeping the Estimate Honest: Cost Control and Risk
- Monitoring actual versus planned costs and cost variance analysis
- Forecasting final project costs and Earned Value Management principles
- Identifying cost uncertainties, contingency, and escalation considerations
- Risk-based estimating, sensitivity analysis, and improving reliability
Module 8: Squeezing Out Waste: Value Engineering for Cost Optimisation
- Value improvement study process
- Identifying cost reduction opportunities
- Alternative materials, technical solutions, and design optimisation
- Balancing cost, quality, performance, and risk
Module 9: Procurement, Contracts, and Bringing It All Together
- Preparing cost estimates for tendering and evaluating supplier/contractor costs
- Bid comparison, analysis, and cost implications of contract terms
- Linking estimates, budgets, and value objectives
- Establishing cost and value performance indicators and continuous cost control