Project Costing Analysis & Control

This DIXONTECH course provides participants with advanced tools and methodologies to manage and control project costs effectively. The program focuses on cost estimation, budgeting, financial tracking, variance analysis, and performance monitoring, ensuring alignment between project objectives, resources, and profitability. Participants will learn how to use analytical and control techniques to improve financial performance and decision making throughout the project lifecycle.

TRAINING TOPICS

• Fundamentals of project costing and budgeting
• Cost estimation and forecasting techniques
• Cost control, variance, and performance analysis
• Budgeting integration with project planning tools
• Earned Value Management (EVM) and KPIs
• Financial risk management and reporting

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO:

•   Develop detailed project cost estimates and budgets
•   Analyze and interpret cost variances and performance indices
•   Apply Earned Value Management for project tracking
•   Control costs through forecasting and corrective actions
•   Align project cost control with financial objectives
•   Manage financial risks across project phases
•   Evaluate cost efficiency and profitability
•   Report cost performance with accuracy and clarity

TRAINING IS TAILORED TO

•   Project managers and coordinators
•   Cost control and financial planning professionals
•   Budgeting and reporting specialists
•   Engineers and quantity surveyors
•   Finance officers in project-based organizations
•   Program and portfolio managers
•   Consultants and auditors in project finance
•   Professionals involved in project budgeting and cost tracking

TRAINING METHODOLOGY

This DIXONTECH training blends financial theory with practical application through case studies, project simulations, and data driven exercises. Participants will practice cost tracking using real project datasets, perform variance and trend analyses, and design cost control dashboards to enhance decision making and project efficiency.

DAY 1

PRINCIPLES OF PROJECT COSTING AND BUDGETING

•   Introduction to project financial structures and objectives
•   Key components of project cost management
•   Cost breakdown structure (CBS) and cost hierarchy design
•   Budget planning and cost baselines development
•   Direct, indirect, fixed, and variable costs
•   Relationship between project scope and cost estimation
•   Project financial documentation and reporting requirements
•   Case study: developing a cost breakdown structure

DAY 2

COST ESTIMATION AND FORECASTING TECHNIQUES

•   Top down and bottom-up estimation methods
•   Parametric and analogous estimating models
•   Activity based costing in project environments
•   Forecasting techniques using historical data
•   Quantitative cost risk analysis and contingency allocation
•   Cost estimation software tools and templates
•   Updating and revising cost forecasts
•   Workshop: preparing a detailed project cost estimate

DAY 3

COST CONTROL AND PERFORMANCE ANALYSIS

•   Role of cost control in project success
•   Tracking actual vs. planned costs
•   Performance measurement using variance analysis
•   Cost efficiency and productivity ratios
•   Integrating cost control with schedule performance
•   Threshold management and corrective action plans
•   Budget change management and approvals process
•   Simulation: variance reporting and cost control dashboard

DAY 4

EARNED VALUE MANAGEMENT (EVM) AND REPORTING

•   Core concepts of Earned Value Management
•   Calculating CPI, SPI, and other key performance indicators
•   Cost and schedule performance indices interpretation
•   Forecasting project outcomes using EVM metrics
•   Integrating EVM with project scheduling tools (MS Project, Primavera)
•   Visualizing project cost data through dashboards
•   EVM reporting for executive decision making
•   Case study: applying EVM in a complex project

DAY 5

FINANCIAL RISK MANAGEMENT AND COST OPTIMIZATION

•   Identifying and assessing financial risks in projects
•   Sensitivity and scenario analysis for project cost control
•   Mitigation strategies for cost overruns and delays
•   Managing contract and procurement cost risks
•   Techniques for cost optimization and value engineering
•   Aligning project costs with business strategy and ROI
•   Lessons learned and best practices in cost management
•   Final workshop: creating a cost control improvement plan