MPMF-672

Course Objectives
CHAPTER ONE: ESTIMATION AND PRICING
CHAPTER TWO: COST MANAGEMENT
CHAPTER THREE: COST CONTROL
CHAPTER FOUR: FINANCIAL PLANNING
 Construction Management

Construction Project Costs Management

What is Cost and Project Cost
Management?
Project Cost Management
Processes
Project Cost Management
Processes
Figure 7-1. Project Cost
Management Summary
Basic Principles of Cost
Management
Basic Principles…..
Basic Principles…..
Types of Construction Costs:
Contingencies provisions:
Project Cost Management
Cost Estimating: Tools and Techniques
Cost Budgeting
Cost Budgeting: Outputs
Cost Control: Tools and Techniques
EVM: Earned Values Management
Performance Indices
Cost and Schedule Forecasting
Computer Aided Cost Estimation
Components of Project Cost Estimates for Major
Projects
Using Software to Assist in Cost
Management
Chapter 3

Cost Control
Outline
Cont…..
Outline
Cost Management
Cost And Control System
Cost Control Requirements
Cost Control Activities
Cost Control Requirements
Cost Control Requirements
(Continued)
Purposes of Cost Control (1/2)
Purposes of Cost Control (2/2)
Sources Of Additional Funding
Cost Data
Weekly Labor Report Example
Types of Budgets
Variances
EVM: Earned Values Management
Variables for Variance Analysis
Variables for Variance Analysis
Measurements
Cost Variance Calculation
Schedule Variance Calculation
Variance Percents
Cost Variance Example.
Exercise #1:Schedule Variance Example.
 Permitted Variances May be
Dependent on Such Factors as :
Performance Index
Management Reserve
Information Requirements
Variance Analysis Questions
EVM: Earned Values Management
Cost and Schedule Forecasting
Variance Reporting
Reporting Intervals
Cost Account Variance Analysis
Report
The 50/50 Rule
Using The 50-50 Rule
Earned Value Status Reporting
Progress Reporting
Estimate At Completion (EAC)
Data Accumulation
Cost Problems
Cost Problems (Continued)
Cost Problems (Continued)
Cost Control and Report
Flow
Graphical Status Reporting
Program Interrelationships(1/7)
Program Interrelationships(2/7)
Program Interrelationships(3/7)
Program Interrelationships(4/7)
Program Interrelationships(5/7)
Program Interrelationships(6/7)
Program Interrelationships(7/7)
Problem Areas in Cost Control
Problem Areas in Cost Control
Cost Problems Per Phase
Cost Problems Per Phase
Cost Problems Per Phase
Cost Problems Per Phase
Cost Problems Per Phase
Cost Problems Per Phase