Curcial Factors that affect Cost Management, Big 5, Jeddah 2017

1. The crucial factors that affect Project
Cost Management
In Construction industry

2. Ph.D. student in project management -Faculty of Engineering- the University of Cincinnati, USA
•Master of Science on Project Management – Denmark
•Bachelor Degree – Civil Engineering – Cairo University
•Holds a professional certificate PMP project management since 2011 Project Management Institute PMI
•Holds a certificate of professional risk management PMI-RMP -2013 of the PMI Project Management Institute
•holds a diploma of arbitration - Arab Academy for Science and Maritime Transport
•holds a diploma of professional training- Cairo University
•the author of the PROJECT MANAGEMENT PROFESSIONAL book (ISBN: 978-603-02-1581-2)
•He is owned professionalengineers training and development in Egypt and Saudi.
•the owner of the pioneers of Arab projects Magazine
•carried out more than 140 training program in the field of project management
•More than ten years of an executive training and education in the field of project management

3. COST
MANAGEMENT
PMI,2017
There has also been a significant decline in dollars lost: Organizations are wasting an average of
$97 million for every $1 billion invested, due to poor project performance.

4. COST
MANAGEMENT
PMI,2017

5. COST
MANAGEMENTThe Cost Management includes the processes
involved in estimating, budgeting, and
controlling costs so that the project can be
completed within the approved budget.

6. COST
MANAGEMENT
Cost Estimation
Estimate the costs of individual activities.
Cost Management Plan
Develop Cost Management Plan to guide us about
how to manage project costs.
Cost Budgeting
Determine project budget and develop both cost
baseline and Funding requirements ,
Control Cost
Maintain project Costs to be within latest
approved project budget,

7. COST
MANAGEMENT Cost Management Plan
• Establishes the policies, procedures, and
documentation for planning, managing,
expending, and controlling project costs. It
provides guidance and direction on how the
project costs will be managed throughout
the project.

8. COST
MANAGEMENT Cost Management Plan
• Units of measure
• Level of accuracy
• Rules of performance measurement(EVM)
• Control thresholds.
• Reporting formats.

9. COST
MANAGEMENT Cost Estimation
• Labors & services.
• Materials, equipment & facilities
• Information technology
• Inflation
• cost contingency reserves (RISK)

10. COST
MANAGEMENT Cost Estimation
• Get a cost approximation of the monetary
resources needed to complete each
schedule activity.

11. COST
MANAGEMENT Cost Budgeting
• Aggregating the estimated costs of
individual activities or work packages to
establish an authorized cost baseline.

12. COST
MANAGEMENT Cost Budgeting
• Cost baseline.
• Project funding requirements

13. COST
MANAGEMENT Cost Budgeting

14. COST
MANAGEMENT Control Cost
• The process of monitoring the status of the
project to update the project budget and
managing changes to the cost baseline.

15. COST
MANAGEMENT
Control Cost

16. COST
MANAGEMENT
Control Cost

17. COST MANAGEMENT CRUCIAL
FACTORS
Procurement Processes
Write selection, suitable contracts.
Successful procurement.
Cost Management Processes
Planning, estimation, budgeting and
cost control.
Project Risks
Majority of project risk will reflected to
Cost impact..
Market Conditions
Materials rates, salaries, equipment
rates and economic conditions will
impact the project costs.

18. COST MANAGEMENT CRUCIAL
FACTORS
Cost Management Processes
Planning, estimation, budgeting and
cost control.

19. COST MANAGEMENT CRUCIAL
FACTORS
Cost Management Processes
California University ,2012

20. COST MANAGEMENT CRUCIAL
FACTORS
Cost Management Processes
California University ,2012

21. COST MANAGEMENT CRUCIAL
FACTORS
Procurement Processes
Write selection, suitable contracts.
Successful procurement.

22. COST MANAGEMENT CRUCIAL
FACTORS
Project Risks
Majority of project risk will reflected
to Cost impact..

23. COST MANAGEMENT CRUCIAL
FACTORS Market Conditions
Materials rates, salaries, equipment
rates and economic conditions will
impact the project costs.

24. Thanks,…
Any Questions ??
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