Fundamentals Of Risk, Economics & Cost In Capital Projects

Building Value Through Cost Control, Risk Modeling, and Economic Insight

What you'll learn

Phase Gate Capital Project Delivery

Basics of Economics

Cost Management

Cost Estimation

Budgeting

Project Development scoring systems

Forecasting and Control

Probability distributions in Risk simulation

Requirements

Experience in Capital Project Management

Basic knowledge of Statistics and Montecarlo Simulation Tools

Description

Fundamentals of Cost Management in Capital ProjectsWhat is cost and how it is created by Assets and ActivitiesCategorization & Process OverviewCost EstimationConcepts, Methods & UtilityAACE Estimation Classification and AccuracyCapital Project Delivery Scope Development Rating systemsRelationship of AACE Estimate Accuracy Classification and Scope DevelopmentEconomic Analysis and Concept of EquivalenceInterest Rate and typesCashflowsEconomic Metrics of Interest. Sample Evaluation Model : Economic Evaluation of a Novel 7MW Power Plant.Budgeting & Cost BaselineForecasting and ControlValue of Work Done and Contract TypesValue of Work done PracticesCost control and Earned ValueExpected Final Cost and Importance for OwnersRisk Quantification in Capital ProjectsIntroduction and BackgroundImportance of Risk Quantification in Phase Gate Capital Project Delivery SystemEnabling knowledge and Practice for Risk QuantificationBuild Model & Perform Model Quality CheckBias in Quantification and its TypesMerge HotspotIncorporate Uncertainty & RiskEnabling knowledge and Common practicesTypes of Probability DistributionTypes of Probability Distribution, required inputs and UsageExample: Comparison of Risk Profile with Lognormal distribution versus Triangular distributionPerform Analysis and Analyze ResultsMonte Carlo Simulation Measures of InterestRangeMeanProbabilityProbability Density ChartSensitivity Chart (Tornado Chart)Joint Confidence Level (JCL)

Overview

Section 1: Introduction

Lecture 1 Introduction

Section 2: Fundamentals of Cost Management in Capital Projects

Lecture 2 Cost Definition, Categorization & Estimation

Lecture 3 Budgeting, Forecasting and Control

Lecture 4 Sample Economic Evaluation in MS Excel

Section 3: Risk Quantification in Capital Projects

Lecture 5 Intro, Enabling Knowledge, Risk Model Development & Considerations

Lecture 6 Performing Analysis and Analyzing Result's & Enabling Knowledge

Owners Cost Engineers,Planning Engineers,Quantity Surveyors,Risk Specialist,Finance & Accounting professionals,Estimators