Fundamentals of Risk, Economics & Cost in Capital Projects

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)
Who this course is for
Owners Cost Engineers
Planning Engineers
Quantity Surveyors
Risk Specialist
Finance & Accounting professionals
Estimators
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