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Project Cost Estimating


Estimating costs is as much an art form as an accounting process. To do it successfully one must have a good understanding of the work required and the skills of those performing the work. The course introduces methods and techniques used in estimating project costs through defining tasks via a work breakdown structure (WBS). A wide variety of cost estimating techniques are practiced during the workshop and emphasis is placed on selecting the most accurate estimating methods for a particular task.

Learning Objectives

  • Define cost estimating
  • Review project cost basics
  • Differentiate direct and indirect costs
  • List cost estimating terminology
  • Create a work breakdown structure (WBS) for use in cost estimating
  • Identify costs to be estimated
  • Evaluate cost estimating techniques
  • Select techniques to achieve more accurate results
  • Apply techniques to plan, measure, and control costs
  • Practice cost estimating
  • Improve cost accuracy
  • Establish reserves to cover risks
  • Use team estimating
  • Create a Spend Plan
  • Create several Cost Estimates throughout the workshop using the techniques learned

Topics & Content

  • Familiarize participants with best practices tools, techniques and communication
  • Cost estimating process
  • Various terminology used in cost estimating
  • Cost estimating concepts and elements
  • Analogous estimating
  • Heuristic estimating
  • Delphi Technique estimating
  • Parametric estimating
  • Effort distribution estimating
  • Monte Carlo Simulation
  • Detail estimates for each work package or task
  • Intermediate estimates
  • Estimates at completion (EAC)
  • Estimate to complete (ETC)
  • Factors that influence estimates
  • Effort vs. duration estimates
  • Documenting estimates
  • Basis of estimate

Course Information

Course Code: PM404
Duration: 3 days
Targeted Audience: Those responsible for estimating costs on projects.

  • OPM - 21 CLP(s)
  • PMI - 21 PDU(s)
  • SHRM - 21 PDC(s)

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