Project Cost Estimation Techniques

The DIXONTECH Project Cost Estimation Techniques course is designed to equip professionals with the essential tools, methods, and analytical approaches for accurate and efficient cost estimation in projects. Based on PMI® and AACE® standards, this training explores the full range of estimation methodologies—from conceptual to definitive estimates—ensuring alignment with budgeting, scheduling, and risk management objectives.

TRAINING TOPICS

• Foundations and Principles of Cost Estimation
• Estimation Methods and Data Analysis Techniques
• Project Cost Modeling and Forecasting
• Accuracy, Uncertainty, and Risk Adjustment
• Reporting, Validation, and Cost Performance

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

Develop precision and confidence in project cost estimation and financial planning.

• Apply global standards for project cost estimation
• Select appropriate estimation techniques for each phase
• Use analytical tools to forecast project costs
• Quantify uncertainty and incorporate risk factors
• Prepare structured cost estimation documentation
• Validate and communicate cost estimates effectively
• Support decision-making with cost analysis reports

TRAINING IS TAILORED TO

Professionals engaged in estimating, planning, and financial control of projects across industries.

• Project Managers and Cost Engineers
• Planning and Scheduling Professionals
• Estimators and Quantity Surveyors
• Financial and Risk Analysts
• Procurement and Contract Specialists
• Construction and Infrastructure Managers
• Professionals seeking to enhance estimation accuracy

TRAINING METHODOLOGY

This DIXONTECH course integrates lectures, group workshops, and case-based simulations. Participants engage in hands-on cost modeling using Excel tools, parametric models, and probabilistic methods, ensuring immediate application of concepts in real project environments.

DAY 1

INTRODUCTION TO PROJECT COST ESTIMATION PRINCIPLES

• Understanding cost estimation purpose and lifecycle relevance
• Overview of PMI® and AACE® estimation classifications
• Relationship between cost, schedule, and scope management
• Key estimation terminologies and definitions
• Elements influencing estimation accuracy
• Organizational and contextual factors in cost estimating

DAY 2

ESTIMATION TECHNIQUES AND DATA COLLECTION METHODS

• Analogous (top-down) estimation approach
• Parametric estimation using statistical relationships
• Bottom-up estimation for work package accuracy
• Three-point and Monte Carlo estimation methods
• Expert judgment and historical database utilization
• Integrating qualitative and quantitative techniques

DAY 3

PROJECT COST MODELING AND FORECASTING

• Building cost models for project phases
• Use of cost breakdown structures (CBS)
• Developing estimation spreadsheets and templates
• Forecasting cost performance using historical trends
• Estimating capital and operational expenditures (CAPEX/OPEX)
• Linking cost models with project schedules

DAY 4

RISK, UNCERTAINTY, AND ESTIMATION ACCURACY

• Measuring uncertainty and range estimating techniques
• Sensitivity and scenario analysis for cost forecasts
• Contingency and reserve estimation principles
• Influence of risk on estimation reliability
• Cost confidence levels and probability curves
• Managing stakeholder expectations in high-uncertainty estimates
• Practical workshop: cost risk simulation and confidence analysis

DAY 5

ESTIMATION VALIDATION, REPORTING, AND IMPROVEMENT STRATEGIES

• Reviewing and validating project cost estimates
• Conducting independent estimate verification (IEV)
• Reporting cost data to management and stakeholders
• Benchmarking estimation practices for continuous improvement
• Integrating estimates into project baselines
• Developing organizational cost estimation maturity
• Final workshop: complete project cost estimation exercise