Cost Estimating Techniques
Duration: 1 Day 8:00 a.m. - 5:00 p.m.
Continuing Education Hours: 8
This course covers the various aspects of cost estimating techniques including initial and summary techniques, detailed estimating techniques, resource estimation for activities or work packages, and aggregating the resources costs to produce a contract/project budget (the cost baseline). Modeling techniques are explored as a source of cost estimates based on descriptions of the product or service objective of the contract or project. The development of the performance measurement baseline is also covered. Additionally, techniques for forecasting cost growth and the final budget amount during contract and project execution are explored. Finally, approaches are presented to support organizational learning to allow for continued improvement in estimating accuracy. Exercises are used throughout the course to ensure participant understanding of the content.
Who Should Attend:
- Anyone who creates or manages contracts, or is involved in planning, executing, or managing projects.
- Anyone who is interested in techniques for accurately estimating costs associated with tasks, activities, or work package deliverables.
- Anyone who is interested in producing independent cost estimates for contracts or projects.
Benefits of Attendance – participants will:
- Estimating concepts
- Cost estimating techniques (Analogous, Parametric, Bottom-Up/Grass Roots, Three-Point (PERT)
- Earned Value based estimating
- Cost baseline and budgeting.
- Estimating for non-traditional approaches such as Agile project work
- Re-planning cost estimates
- Lifecycle cost estimating
- Using lessons learned and benchmarking to improve estimating among the organization staff
- Understand estimating concepts including in situations of high uncertainty.
- Experience popular cost estimating techniques in practice.
- Bottom-Up/Grass Roots
- Three-Point (PERT)
- Become familiar with Earned Value based estimating.
- Determine the cost performance baseline/budget.
- Explore estimating for non-traditional approaches like Agile based contract/project work.
- Understand the basics of forecasting costs during contract administration/project execution.
- Discuss re-estimating costs in the presence of new information.
- Consider lifecycle cost estimating.