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Project Controls Open Standard · Module 3 of 6 · M3

Cost & Estimating

Learning modules M3.1 Cost Estimating & Basis of Estimate; M3.2 Budgeting & Cost Baselines; M3.3 Commitments, Actuals & Accruals; M3.4 Cost Control & Variance Analysis; M3.5 Cost Forecasting & Commercial/Contract Interfaces.
5 learning modulesRead M3 in the Open Standard text1,048 discussions38 knowledge pages

Learning modules

In Cost & Estimating

  1. M3.11 items

    Cost Estimating & Basis of Estimate

    By the end of this section, the learner should be able to turn authorised scope and available project information into a traceable cost estimate whose quantities, rates, productivity assumptions, methods, exclusions and uncertainty can be understood, challenged and reproduced. They should be able to select estimating methods that are proportionate to the maturity of the scope, build and reconcile estimate components through the project control structure, use quotations, historical data and benchmarks intelligently, test the estimate for reasonableness, and document the Basis of Estimate (BoE) so that another competent practitioner can understand not only the number but how and why it was produced.

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  2. M3.22 items

    Budgeting & Cost Baselines

    By the end of this section, the learner should be able to turn an approved estimate and authorised project scope into a controlled cost budget and time-phased cost baseline that can be used to plan, measure and govern project cost performance. They should be able to allocate budget to the project control structure, define accountable ownership, distinguish base budget from contingency or reserve, phase budget in a way that reflects the delivery plan, reconcile cost and schedule assumptions, distinguish the cost-control baseline from cash flow and current forecast, and preserve an approved reference so that later variance and authorised change remain visible.

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  3. M3.31 items

    Commitments, Actuals & Accruals

    By the end of this section, the learner should be able to establish and explain a reliable period-end cost position by reconciling recognised actual cost, open commitments and costs incurred but not yet recorded. They should be able to define an appropriate financial cut-off, obtain authoritative source data, distinguish cash and invoice timing from cost incurred, calculate evidence-based accruals, maintain commitment balances, correct coding and timing errors, prevent double counting, and reconcile project-control records to finance and commercial systems.

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  4. M3.41 items

    Cost Control & Variance Analysis

    By the end of this section, the learner should be able to use the approved cost baseline and the reliable current cost position established in M3.3 to determine where cost performance differs from plan, explain why it differs, judge whether the movement is temporary or structural, assess the likely effect on final cost, and convert the analysis into proportionate management action. They should be able to distinguish timing effects from genuine cost-performance problems; analyse period and cumulative movements; decompose material variances into quantity, rate, productivity, mix, rework, price and other drivers; challenge favourable as well as adverse results; and maintain the distinction between performance variance, authorised change, contingency and forecast.

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  5. M3.51 items

    Cost Forecasting & Commercial/Contract Interfaces

    By the end of this section, the learner should be able to produce and challenge a credible cost forecast that explains what the project or package is now expected to cost, why that expectation differs from the authorised baseline or prior forecast, what commercial and delivery assumptions the forecast depends on, and where material uncertainty remains. They should be able to build Estimate to Complete (ETC) from the remaining scope rather than simply extrapolating spend; combine incurred cost and ETC into Estimate at Completion (EAC); reconcile commitments without double counting them; assess uncommitted work, changes, claims, remeasurement, escalation, currency, productivity and schedule effects; and translate contract information into a realistic project-cost outlook.

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Discussions

Latest across the module

  1. 0replies
    What's wrong with a hard constraint if used properly?
    QuestionPlanning, Scheduling & Programming Discussionby Garson Hill· 3 days ago
  2. 5replies
    Is the delay excusable?
    Forensic Claims Analysisby Gold Group· 10 months ago
  3. 8replies
    FIDIC SILVER BOOK
    Forensic Claims Analysisby Rosalind Ng· 1 year ago
  4. 1reply
    PC Expo – A Busy Week
    Forensic Claims Analysisby Patrick Weaver· 1 year ago
  5. 0replies
    Basic Principles of Delay Analysis
    Forensic Claims Analysisby Mike Testro· 1 year ago
  6. 26replies
    Extension of Time Claim
    Forensic Claims Analysisby Hatem Hussen· 2 years ago
  7. 10replies
    Liquidity Damage (LD)
    Forensic Claims Analysisby Jithin Kambhikanam· 2 years ago
  8. 0replies
    Assessing Delays in Agile & Distributed Projects
    Forensic Claims Analysisby Patrick Weaver· 2 years ago

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