7-Hr Best Practices for Project Costs
About course

This 7-hour course will cover the fundamentals and best practices for project cost management including estimating, budgeting, financing, and controlling costs. The Cost Management processes from the Project Management Institute (PMI)® A Guide to the Project Management Body of Knowledge (PMBOK® Guide) will be presented including inputs, key tools and techniques, and outputs. 

The types of estimates normally done on projects will be explained, along with the relationship of estimate accuracy to defined scope. Top-down early project estimating techniques will be reviewed including analogous and parametric methods. Bottom-up estimating using the project Work Breakdown Structure (WBS) and estimated resources will be covered. Construction of the cumulative cost curve will be reviewed, along with methods for determining contingency reserve. Proven methods for controlling costs will be explained, including variance and earned value analysis. Present value analysis, used to evaluate the project business case, will also be reviewed. This class includes exercises on estimating, budgeting and controlling project costs.

Who should attend

This course will help Program and Project Managers, Business Analysts, functional managers, and other project team members responsible for estimating and controlling project costs.

Course features

As a result of taking this course, attendees will be able to:

  • Describe the types of estimates used on projects
  • Explain the relationship of estimate accuracy to scope
  • Understand the formulas for financial analysis of a project business case
  • Describe commonly used top-down estimating techniques
  • Prepare a bottom-up project estimate including contingency 
  • Prepare a cumulative cost curve
  • Analyze project performance using earned value
Course outline

Module 1: Cost Management Overview  

  • Cost Management Definitions
  • Cost Management Processes

Module 2: Estimating Techniques 

  • Client Expectations
  • Top-down Estimating Techniques
  • Resource Estimating
  • Bottom-up Estimating

Module 3: Budget Preparation

  • Contingency Definition and Purpose
  • Methods for Determining Contingency
  • Budget Build-up From Estimates

Module 4: Controlling Project Costs

  • Cost Control Definitions
  • Performance Measurement Techniques
  • Cost Change Management 

Module 5: Use of Earned Value Analysis

  • Why Use Earned Value?
  • Earned Value Terminology
  • Progressing Techniques
  • Earned Value Calculations
  • Project Cost Forecasting

Module 6: Business Case Analysis

  • Time Value of Money
  • Financial Analysis Formulas 
  • Business Case Examples
Course information
Duration: 7 hours
Earn: 7 PDUs
Delivery Method: Virtual or Traditional Classroom
Knowledge areas addressed

This course addresses the Cost Management knowledge area of the Project Management Institute (PMI)® A Guide to the Project Management Body of Knowledge (PMBOK® Guide)--Fifth Edition.