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Course Outline - CM

Cost Management

1.    Planning/Budgeting:
  • Owner’s Historical Cost Data
  • Owner’s Project Budget Elements/Development/Verification
  • Difference between Project Budget vs. Construction Budget
  • Contingencies – type, definition, and uses (and vs. escalation)
  • Cash flow projections

2.    Designing to the Budget:
  • Design-to-Dollar amount
  • Cost Model
  • Cost Estimating
  • Current Market Conditions/Survey
  • Design contingency and Contractor contingency
  • Escalation factor
  • Scope creep
  • Design assist/IPD-ish


3.    Value Management:
  • Value analysis/value engineering
  • Use of allowance
  • Use of alternates
  • Decision impacts
  • Procurement strategies


4.    Construction Phase Cost Management:
  • Cost Review/Monitoring – Guaranteed Maximum Price (GMP) versus Lump Sum Price
  • Change Order Management
  • Contingency Management – Contractor and Owner
  • Claims avoidance/process


5.    Financial Project Close Out:
  • Final payment application
  • Final lien waivers
  • Retainage release
  • Final payment
  • Final cost accounting