Project Costing and Cost Control Training Course

Participants can structure project cost information around scope, ownership and reporting requirements.

• Develop a work breakdown structure aligned to deliverable ownership
• Construct a cost breakdown structure for controllable cost aggregation
• Map WBS work packages to cost accounts and chart codes
• Assign control account managers and define their reporting responsibilities
• Create a responsibility assignment matrix using the RACI model
• Set coding rules for labour, purchases, assets and contingencies
• Test scope-to-cost traceability before approving the project baseline

Participants can prepare and challenge cost estimates using appropriate estimating methods and assumptions.

• Select analogous, parametric, bottom-up and three-point estimating methods
• Build labour estimates from productivity rates, calendars and skill mixes
• Price materials using quantities, supplier quotations, escalation and wastage
• Estimate equipment, subcontract and site overhead cost components
• Use PERT ranges to quantify estimate uncertainty and confidence
• Document basis of estimate, assumptions, exclusions and estimate maturity
• Challenge estimates through independent review and historical cost comparison

Participants can convert approved estimates into authorised, time-phased project cost baselines.

• Convert approved estimates into a time-phased cost baseline
• Allocate management reserve separately from contingency within authorised budgets
• Build monthly cost profiles from schedules, resource plans and commitments
• Establish budget versions, approval thresholds and baseline change dates
• Calculate planned value from budgeted work scheduled by reporting period
• Distinguish funding requirements, cash requirements and accounting cost recognition
• Set control tolerances for cost, schedule and forecast variance

Participants can calculate, interpret and communicate earned value performance measures.

• Calculate planned value, earned value and actual cost accurately
• Interpret cost variance, schedule variance, CPI and SPI signals
• Derive estimate at completion using performance-based forecasting formulas
• Compare BAC, EAC, ETC and VAC for management decisions
• Apply 50/50, milestone and physical-percent-complete earned value rules
• Identify misleading earned value results caused by poor progress measurement
• Present EVM findings through control account and project summaries

Participants can maintain reliable actual cost records and reconcile them with project controls.

• Capture labour costs through timesheets, rates, overtime and approvals
• Reconcile purchase orders, goods receipts, invoices and committed cost
• Calculate accruals for received work not yet invoiced
• Treat prepayments, retention, capital items and recoverable costs correctly
• Analyse cost ledger variances against control account records
• Apply cut-off procedures at month-end and reporting milestones
• Investigate data quality exceptions before issuing cost reports

Participants can forecast final project cost, cash requirements and exposure under changing conditions.

• Build estimate-to-complete forecasts from remaining quantities and productivity
• Forecast final cost using CPI trends, risk exposure and supplier data
• Prepare 13-week cash forecasts from billing, payroll and supplier payment dates
• Model working capital effects of receivables, retention and advances
• Assess sensitivity to rate changes, inflation and schedule slippage
• Separate forecast confidence ranges from approved budget commitments
• Escalate likely overruns using defined thresholds and decision dates

Participants can operate cost control cycles and assess the financial impact of project changes.

• Design cost control cycles linking data capture, review and action
• Maintain change logs for scope, rates, quantities and schedule impacts
• Evaluate change requests using incremental cost, contingency and approval authority
• Apply root cause analysis using five whys and fishbone diagrams
• Assign corrective actions with owners, dates and measurable recovery targets
• Manage contingency drawdown against documented risk events and approvals
• Use trend registers to identify cumulative exposure before budget breach

Participants can prepare clear, auditable cost reports for project and finance decision-makers.

• Create cost reports for project managers, sponsors and finance teams
• Design dashboards showing actuals, commitments, forecast, variance and cash
• Explain material variances with drivers, impacts, actions and decisions
• Apply materiality thresholds and reporting cadence to management information
• Prepare variance narratives supported by auditable source data
• Align project reporting with delegated authority and governance forums
• Communicate bad news early without obscuring uncertainty or accountability

Participants can close project cost records, capture lessons and plan improved cost controls.

• Evaluate project financial performance against baseline, forecast and business case
• Calculate final cost variance, margin variance and contingency consumption
• Reconcile project accounts, accruals, assets, retention and outstanding claims
• Conduct lessons learned reviews using estimate, variance and productivity data
• Archive cost records to support audit, disputes and future estimates
• Prepare a 90-day cost control application plan for current projects
• Define personal reporting improvements, owners and implementation milestones