Cost Estimation, Budgeting, and Financial Control in Infrastructure Projects

Cost Estimation, Budgeting, and Financial Control in Infrastructure Projects

📅 Duration: 5 Days
👷 Target Audience: Senior Engineers, Project Managers, Cost Estimators, and Financial Analysts in Public Construction
🎯 Skill Level: Advanced

📌 Course Objectives:

By the end of this course, participants will be able to:
✔ Apply cost estimation techniques for large-scale infrastructure projects.
✔ Develop accurate and reliable project budgets using best practices.
✔ Implement financial control mechanisms to prevent cost overruns and delays.
✔ Utilize modern cost estimation software and tools for project planning.
✔ Conduct risk-based cost analysis and forecasting.
✔ Understand public sector procurement and funding models.
✔ Ensure financial compliance with government regulations and international standards.

📌 Course Outline:

🟢 Day 1: Fundamentals of Cost Estimation in Infrastructure Projects

🔹 Principles of cost estimation and budgeting in large-scale projects.
🔹 Types of cost estimates: Preliminary, detailed, parametric, and definitive estimates.
🔹 Key cost components: Direct costs, indirect costs, overhead, and contingencies.
🔹 Case Study: Common cost estimation errors and their impact on project success.

🟢 Day 2: Budgeting Techniques and Financial Planning

🔹 Developing a realistic and achievable project budget.
🔹 Capital vs. operational expenditures (CAPEX vs. OPEX) in infrastructure projects.
🔹 Life Cycle Costing (LCC) and Total Cost of Ownership (TCO) analysis.
🔹 Case Study: Budgeting for a major transportation infrastructure project.

🟢 Day 3: Cost Control and Financial Risk Management

🔹 Earned Value Management (EVM) for cost tracking and forecasting.
🔹 Identifying financial risks and cost overruns in construction projects.
🔹 Managing cost escalation due to inflation, material price fluctuations, and market conditions.
🔹 Case Study: Implementing cost control measures in a large-scale public works project.

🟢 Day 4: Funding Models and Financial Compliance

🔹 Public sector financing: Government funding, PPPs (Public-Private Partnerships), and BOT models.
🔹 Procurement strategies and contract cost management.
🔹 Ensuring compliance with financial regulations and public sector auditing standards.
🔹 Case Study: Analyzing the financial structure of a major infrastructure project.

🟢 Day 5: Case Study & Real-World Application

🔹 Hands-on case study: Developing a cost estimation and budget control plan for an infrastructure project.
🔹 Group discussion: Challenges in financial management for large-scale public projects.
🔹 Presentation of cost control strategies and budgeting solutions.
🔹 Course assessment and feedback session.

🛠 Tools & Software Used:

✅ Primavera P6 / Microsoft Project – For budget scheduling and cost tracking.
✅ Cost Estimation Software (Candy CCS, CostX, BIM 5D) – For accurate cost estimation.
✅ Power BI / Tableau – For financial data visualization and reporting.
✅ Earned Value Management (EVM) Tools – For performance tracking.
✅ Risk Analysis Software (Monte Carlo Simulation, Crystal Ball) – For financial risk