Brief description of the course:
Due to international sanctions and economic instability, cost management and its connection with financing in the initial stages of the project is considered necessary and inevitable. Understanding this necessity on the part of the senior management of the organization will result in the success of the project implementation.
Cost management in projects by using the best experiences in international companies, predicts and prevents future problems and provides solutions when problems occur, and in this way, the harmful effects of the occurrence of risks affecting the project economy can be reduced.
In this 40-hour course, all necessary and necessary skills for successful cost management and economic/financial management throughout the project life cycle will be taught. Familiarity with project cost estimation, tender pricing process and effective cash flow management will be taught.
Course title:
first day
- Cost coding based on international standard ISO 19008:2016
- Chart of account
- Separation of costs from the point of view of operations (OPEX, CAPEX, Non-Capex)
- How to separate accrual and cash costs
- Value of Work Done (VOWD)
second day
- An introduction to the types of contracts (EPC-EPCF-BOO-BOT and…)
- Project cost estimation and tender pricing
- Different levels of estimation in investment projects
- The concept of reserve reserve and the methods of calculating reserve reserve in tenders and projects
- Budgeting process, when and how to properly update the budget and its relationship with the project cost breakdown structure
third day
- Cost control and its difference with accounting
- An introduction to cost control of investment projects
- Earned value management
- Cost control and forecasting of costs and remaining works
- Project cash flow update
- Financial reports and sample professional financial dashboards for EPC projects
fourth and fifth day
- An introduction to engineering economics
- An introduction to the economic modeling of the contract
- An introduction to random processes
- Distribution functions and their application in risk modeling
- Economic modeling of the project with Excel software and cost estimation modeling of a real project in the oil and gas industries by considering project risks using Risk@ software or Crystal Ball
Duration:
40 hours
Course audience:
Project control managers, project management office managers, budget and cost control managers, financial managers, senior project cost and control engineer experts, financial and cost control experts
Course prerequisites:
- Familiarity with EPC projects
- Having at least 4 years of project control/cost control experience in oil and gas industry or construction projects
- Getting to know the basic concepts of cost management and project accountability