9- Project Estimating - Project Planning & Estimating Dr....

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Project Planning & Estimating 1 Dr.Hesham A. Aziz Dr. Hesham A. Aziz
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Key Points : - Estimating techniques and methods enable you to make quick and reasonably accurate quotations . Establish your costs structure ( labor and materials ) to simplify your estimating . Use estimating proformas to structure your estimates and quotations . 2 Dr.Hesham A. Aziz
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Project Management Framework
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CASE “A” COST REPORTING Design Construct Commission Estimate Of Cost Revised Estimate Of Cost Revised Estimate of Cost Actual Cost CASE “A” COST REPORTING Design Construct Commission Estimate Of Cost Evaluate Trend Take Corrective Action Revised Estimate Of Cost Actual Cost Report Result Cost Reporting Versus Cost control Dolphin Project Management series
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5 Cost planning It is the process of breaking the total project down into individual elements or work packages and assigning a realistic estimate of what that element or work package should cost. It is standard practice to develop cost limits for different levels of work within the project. The total of the cost limits for the work packages should equal the cost limit for the element or sub-element. The cost plan provides a cost ‘map’ for the project. Individual work package managers can identify the cost limits applicable to the work that they are responsible for. The cost limits applicable to each section of the project at all levels can be identified by the project manager . Dr.Hesham A. Aziz
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6 Cost control is similar in concept to time control and quality control. It involves the establishment of cost targets that are approved by the project team and act as project success criteria. Actual performance is then monitored against these targets in order to determine how close actual performance is in comparison with planned performance. Dr.Hesham A. Aziz
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7 SIMPLE IS BEAUTIFUL OWNER CONTRACTOR ESTIMATING PLANNING PROCESS PLANT INITIAL CONCEPT DESIGN QUOTATIONS BID ANALYSIS ORDERS SITE CONTRACTS SCOPE CHANGES EXTRA WORKS CLAIMS VALUE OF WORK DONE FINAL COST CONTROL OF COST CONTROL OF TIME
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8 Cost types Dr.Hesham A. Aziz
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Dr.Hesham A. Aziz 9 Direct costs are the costs directly attributable to the job or project task; direct costs include the labor, materials and equipment charges directly related to carrying out that task. Materials, components and expenses directly attributable to a particular project should be classed as direct. Indirect costs or overheads include the facilities, services and personnel costs that exist in a company irrespective of the project. They include such costs as factories, office accommodation, personnel, training, accounts and marketing. Factory costs are applicable to manufacturing projects and are the total costs of the project before any additional markup for profit. They include all direct and indirect costs for materials, facilities, labor, equipment and expenses.
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This note was uploaded on 03/17/2012 for the course CEM 661 taught by Professor Dr.heshama.aziz during the Spring '10 term at American University in Cairo.

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9- Project Estimating - Project Planning & Estimating Dr....

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