TRM 452 PCM: Budget and Cost Management
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1 TRM 452 PCM: Budget and Cost Management Syllabus Fall 2012 NOTE: THE AGENDA WITH SPECIFIC ASSIGNMENTS AND DATES IS A SEPARATE ATTACHMENT TO THIS SYLLABUS. AGENDA MAY BE REVISED IN CLASS DURING THE SEMESTER BY THE INSTRUCTOR. Course: TRM 452 PCM: Budget and Cost Management Time: Tuesday-Thursday; 6:00PM to 7:15PM ( ) Location: Faculty: ASA C0113 (+ ASA assigned computer lab) J Kevin Roth, Assistant Professor Technical Resource Management School of Information Systems and Applied Technologies jkroth@siu.edu Phone: (618) Office: ASA C0120 Office Hours: Tuesday & Thursday: 09:30AM to 10:30AM & 02:00PM to 04:00PM Other times arranged by appointment Resources Required: Provided by Instructor i. CMAA Documents (textbooks from TRM450) i. AIA Resources Readings & Reference AIACD: AIA Contract Documents (Educational Partnership with AIA) ii. EADOC Resources Tools & Reference EADOC: Web Based PCM Tool (Educational Partnership with EADOC) iii. Morris Library Reserves Various reference books and documents are on reserve for PCM Courses TRM452 PCM: Budget & Cost Management Page 1 of 11
2 iv. Reading Assignments and reference handouts Course Description: Overview of various estimating tools and methods for managing budgets, project estimates, and costs during Program, Construction, and Facilities Management Phases Identify roles and responsibilities for controlling and monitoring project cost. Develop methods for creating valid project estimates and project budgets. Explore cost management, development, and monitoring systems for use throughout all phases of construction. Explore LEAN and Integrated Project Delivery (IDP) with respect to budget and cost management opportunities. Prerequisite: TRM 451 Course Objectives: 1. Define PCM responsibility for budgets, estimates, bids, and final project costs. 2. Identify typical contractual requirements for budget and cost. 3. Correlate estimating experience and accuracy. 4. Identify impact of risk, bonding, financing, and funding sources. 5. Correlate procurement methods and effects on cost and budget. 6. Compare level of accuracy required in program, construction, and facilities management phases. 7. Identify and develop working knowledge of e-tools necessary for level of accuracy needed at various project phases. 8. Explore cause and effect results related to delivery methods. 9. Investigate procedures used to predict and manage costs in government, military, transportation, and public and private sectors. TRM452 PCM: Budget & Cost Management Page 2 of 11
3 10. Increase awareness of risk, legal, and code required impacts. 11. Compare cost and project performance. 12. Correlate project scope and budget with initial, final, and actual costs. 13. Implement value-based and life cycle analysis in budget and cost prediction. 14. Identify cost effects of sustainability and high performance criteria. 15. Define relationships among value engineering, constructability, and cost assessment techniques. TOPICAL OUTLINE: 1. PCM cost responsibilities 2. Cost impact at each project phase 3. Application of Integrated Project Design (IPD) 4. Project packaging and procurement 5. e-tools for budgeting, cost, and control 6. Industry contracts and estimating responsibility 7. Ethical approaches to proposals, quotes, and bids TEXTBOOKS: Required: 8. Public and private sector requirements Peterson, Steven J., (2012). Construction Estimating Using Excel (2 nd Ed.). Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, New Jersey and Columbus, Ohio Recommended: ISBN Design Cost Data (DCD) Web Access / Subscription RS Means Cost Works Web Access / Subscription Communications You must use your name@siu.edu address to /communicate with your Instructor. TRM452 PCM: Budget & Cost Management Page 3 of 11
4 The subject line of all communications in this course must begin with TRM452, followed by a space and the subject/detail of your particular communication. Assessments Quizzes: Pop quizzes and scheduled quizzes to spot check and measure knowledge, comprehension, and synthesis of student s understanding. Quizzes will be drawn from class readings, research, discussions, and deliverables. Midterm Project Final Project Each student should ensure to fully read, explore, and complete assignments prior to each class. Reading assignments and class preparation are the responsibility of each individual student. Assignments All assignments will be discussed in class with specific due dates. Excuses after the assignment is due will not be considered. Students will each be assigned to record, write, and distribute minutes from each class meeting. Minutes will be critiqued and used in class discussions. (Documentation skills are key to the successful PCM.) Students will receive individual and group/team homework assignments. Assignments will be due at assigned times during the semester. All assignments must be professionally prepared, formatted, typed, and neatly presented. As a technical manager or supervisor, professional, clear, and concise documents are paramount in effective communications. Spelling and grammar, combined with the ability to analyze situations, synthesize data, assimilate, and follow directions will be stressed. TRM452 PCM: Budget & Cost Management Page 4 of 11
5 All assignments have deadlines for submission. Late assignments will NOT be accepted unless you have a valid, documented (written & time-stamped) excuse established with the Instructor prior to the scheduled due date and time. Meaningful participation in weekly class discussions is a basic requirement. This course will be delivered in a discussion group format in which your views, comments, and experience are integral, required and valued. All materials submitted will be graded at a minimum on the varying degree of each of the following: 1. factual accuracy 2. clarity of expression 3. precision of expression 4. proper business tone 5. organization 6. grammar 7. spelling Grades are based on the attached Basic Grading Guide. Evaluation of Assignments in this course will be made as if produced by an employee in a corporate /industry environment. Submit Assignments in class bound (as appropriate) in paper copy. Digital copies of each assignment will also be required. Regardless of the media used to submit assignments, electronic, paper, or face-to-face, always clearly indicate; at the top of your work: 1. Your name(s). (add Group name when applicable) 2. Assignment number and title/description 3. Each assignment must have a unique label and date When paper copies have multiple sheets, staple them (or binder them) together. Do not staple different assignments together. If you have any questions about the manner of submission for each assignment, ask on the day you receive the assignment to avoid losing points for disorganized work. TRM452 PCM: Budget & Cost Management Page 5 of 11
6 Assignments with no name, unlabeled, pages out of order, mislabeled, unreadable, unidentifiable in an electronic transmission (attachments must include identifying information), and any other encumbrance to identify or organize the work, will receive a grade of zero (0) and will be promptly moved to the recycling bin. Expectations for written work and class presentations All course work must be completed in professional and executive style, and follow the basic principles of effective written and verbal communication. Any written case, term paper, project (individual or group), take-home examination, or similar assignment must be submitted in a form and style consistent with expectations of the corporate workplace. At a minimum, all written work should be neat, well organized, formatted, clearly written, and free from grammatical and typographical errors and appropriately bound. All in-class presentations must also be completed in professional and executive style. This means that presentations are: well structured, offer substantive content and references within time limits including use of appropriate visual aids meeting standards otherwise associated with the executive boardroom, including substantiation of your information, e.g., full disclosure of sources. Class deliverables / products and points Deliverables are course assignments and projects to be completed by each student as directed by the Instructor, listed in the Syllabus, and scheduled/defined in Blackboard. Projects are the interim assignments and final projects encompassing objectives of the course. The midterm and final projects will be professionally developed and presented documents. TRM452 PCM: Budget & Cost Management Page 6 of 11
7 Grading Scale, Deliverables and Point Values Grading Scale A = 90% - 100% (Excellent) B = 80% - 89% (Very Good) C = 70% 79% (Adequate) D = 60% - 69% (Weak) F = < 59% (Poor) All course assignments must be completed to receive grade. These deliverables include and may not necessarily be limited to the following: Deliverables / Products Maximum Values Participation & Attendance* pts per class* Current Events & Posting 100 Class Minutes* 100 Class Assignments (modules B) 1000 Quizzes pts Exams* 200 2@100pts Midterm / Project / 200 Final / Project / Presentation Total Points * No Extra Credit & No Make-Up & No Late Work Accepted To get the most from this class TRM452 PCM: Budget & Cost Management Page 7 of 11
8 1. Attend scheduled classes, arrive on-time and be prepared for class & participate. 2. Consider the application to your past and future work environments and expectations. 3. Complete all assigned readings, individual and group assignments. 4. LISTEN carefully and SPEAK when a question or considerate thought comes to mind. 5. In other words, focus, participate and energetically invest with classmates and instructor in discussions & topic explorations. 6. Bring up applicable experience and situations that may complement the discussions. Submission Requirements Deliverables and product(s) shall be prepared in (.doc.xls,.ppt) format and submitted as directed by each assignment. Use of other word processing and file formats may distort and/or provide unreadable content and will not be accepted. PDF format maintains your intended presentation format and is recommended. Your assignment submissions must be complete prior to the start of class for in-class work and discussions. All electronic-files submitted for this class must use the following file naming convention: TRM452~assignment reference~yourlastname~yourfirstname.doc (file extension may vary) File naming example: TRM452 Assignment # - Doe John.doc Attendance Policy Attendance is mandatory. Absence from a class without prior permission/notification from the Instructor will result in loss of points for each infraction. If an absence is unavoidable due to health or an emergency related problem, the student is responsible for contacting the Instructor as soon as possible to ensure arrangements can be made to submit class assignments. TRM452 PCM: Budget & Cost Management Page 8 of 11
9 Field Trip Opportunities At times, the instructor will arrange travel opportunities to enhance the student s learning experience. These opportunities may include field trips away from campus to see/visit/experience construction assets in various phases of completion. These opportunities may include LEED certified projects, CM firms, construction in progress and close-out phases etc.. Some of these opportunities may include meeting with industry professionals and other project stakeholders outside of regular class times. These opportunities will require the student s personal decision to accept the responsibility and complete burden to attend. Since these opportunities may be distant, the student s, investment of time, cost, travel arrangements and schedule conflicts, will make participation in these opportunities an option, solely at the discretion of each individual student. ISAT Policy on Academic Dishonesty (Approved 3/30/01) The Student Conduct Code of SIU clearly spells out the University policy on Academic Dishonesty. Courses involving use of the computer require extra consideration because computer work is easily copied. This departmental policy is intended to provide additional guidelines for such cases. A copy of this policy will be included in the departmental student handbook and will also be available on the ISAT website at Each faculty member will have a copy for his or her own use and for distribution to students. Definition of Academic Dishonesty We define academic dishonesty to mean turning in material created by someone else and representing it as your own work or permitting others to represent your work as their own. The following guidelines may be used to help in determining whether or not academic dishonesty has occurred: The student turns in work (i.e., computer work) that is identical to or extremely similar to work turned in by another student or students, unless identical work is the expected norm. 1. When confronted, the student cannot explain the details of his or her work and the methods used to arrive at the solution. TRM452 PCM: Budget & Cost Management Page 9 of 11
10 Some Examples: Academic Dishonesty has occurred: When a student turns in work created by someone else and represents it as his or her own work. When a student permits someone else to turn in his or her work and represent it as his or her own work. When a student copies work from another student. When a student copies answers from another student on a quiz, exam, or test. When a student uses notes or materials of any kind during a quiz, exam, or test (unless it is announced by the Instructor as open notes or open book ). When a student deliberately changes parts of computer work in an attempt to disguise the origin. When two or more students collaborate on a project that is supposed to be completed individually. Academic Dishonesty has generally not occurred: When students have the Instructor s permission to collaborate on a project When students receive appropriate help from Instructors, graduate assistants, or other staff members involved with the course When students help each other with syntax errors or other application-specific information that makes computer work easier When students participate in a general discussion about the assignment, such as discussing the requirements for the assignment or general strategies for completing the assignment Penalty for Academic Dishonesty First offense: from a zero on the specific lab/assignment/project/exam to course grade of F. Second offense: from course grade of F to suspension from the school. Third offense: permanent suspension from the school Records of academic dishonesty will be maintained in the student s file in the school advisor s office, as well as in a master academic dishonesty file in the director s office. When an incidence of academic dishonesty occurs, the faculty member will meet with the director to discuss the situation and determine the appropriate penalty. Campus Emergency Response Plan Southern Illinois University Carbondale is committed to providing a safe and healthy environment for study and work. Because some health and safety circumstances are beyond our control, we ask that you become familiar with the SIUC Emergency Response Plan and Building Emergency Response TRM452 PCM: Budget & Cost Management Page 10 of 11
11 Team (BERT) program. Emergency response information is available on posters in buildings on campus, available on the BERT website at Department of Public Safety s website at (disaster drop down) and in Emergency Response Guidelines pamphlet. Know how to respond to each type of emergency. Instructors will provide guidance and direction to students in the classroom in the event of an emergency affecting your location. It is important that you follow these instructions and stay with your instructor during an evacuation or sheltering emergency. The Building Emergency Response Team will assist the instructor in evacuating the building or sheltering within the facility. Welcome to Professional Construction Management BUDGET and COST MANAGEMENT Please become an integral part of this course. Participate in all class discussions. Ask many questions. Communicate with your Instructor. Let your colleagues hear your voice in class discussions. Share your knowledge and experience. Everyone benefits when you become involved. If you have any questions regarding this syllabus or any course requirement, please contact the instructor using the above contact information. TRM452 PCM: Budget & Cost Management Page 11 of 11
12 TRM PCM: Budget and Cost Management AGENDA Tentative Schedule Schedule revisions will be posted in Blackboard ASSIGNMENTS AND DUE DATES TUESDAY THURSDAY RM C0113 Class Date Class Meeting READ FOR CLASS CLASS ASSIGNMENTS PROJECT ASSIGNMENT ASSESSMENTS Topic: Agenda & Discussion Reading Assignment Assignment Exercises Quiz 8/21 1 Course Overview & Syllabus (Cert) Introductions Agenda Syllabus 8/23 2 Course Software: OnCenter Software RS Means DCD Assign EX01 Syllabus Certification Bring Laptop to Class 8/28 3 Introduction to Estimating Distribute PROJECT DOCUMENTS (1) CEx PROBLEMS Chapter 01 p.9 For in Class Discussion 1 10 Q01 8/30 4 Contract Bonds & Insurance Assign EX02 CEx Part I Intro CMAA SOP Cost Mgt CMAA Cost Mgt CEx PROBLEMS Chapter 02 p.17 For in Class Discussion 1 10 EX01 9/4 5 Introduction to Excel EX03 Assign CEx PROBLEMS Chapter 03 p.53 For in Class Discussion 1 10 Q02 9/6 6 FIELD TRIP: PROJECT BID OPENING 2:00PM CDB Office in SBI Dunn Richmond Economic Development Center No Class Meeting at 1800 Illinois Capital Development Website EX02 9/11 7 Project Manual CEx PROBLEMS Chapter 04 p.65 For in Class Discussion 1 5 Q03 9/13 8 The Estimate Assign EX04 CEx PROBLEMS Chapter 6 p.85 For in Class Discussion 1 6 EX03 9/18 9 Computers in Estimating CEx PROBLEMS Chapter 9 p.149 For in Class Discussion 1 5 Q04 9/20 10 Overhead & Contingencies Assign EX05 CEx Part II Quantity Takeoff CEx PROBLEMS Chapter 12 p.175 For in Class Discussion 1 3 EX04 9/25 11 Labor Hours & Productivity CEx PROBLEMS Chapter 14 p.186 For in Class Discussion 1 5 9/27 12 Labor Hours & Productivity CEx PROBLEMS Chapter 15 p.196 For in Class Discussion 1 EX05 Q05 10/2 13 Profit & Review Assign EX06 CEx PROBLEMS Chapter 16 p.212 For in Class Discussion 1 4 MIDTERM 10/4 14 MIDTERM EXAM / PROJECT PROJECT P01.00 BID Dixon Springs WEEK 10/9 15 MEET WITH DESIGNERS Quigley Arch Studio You are the Cost Consultant DD ESTIMATE Project Definition NOTE: Date and time may be adjusted to coordinate with Design Studio 10/11 16 DD ESTIMATES & BUDGET ANALYSIS CEx PROBLEMS Chapter 19 p.232 For in Class Discussion 1 5 P02.00 DD Definition 10/16 17 Crew Rates & Subcontract Pricing Assign EX07 CEx PROBLEMS Chapter 20 p.238 For in Class Discussion 1 5 EX06 Q06 10/18 18 Markups & Pricing Extensions CEx PROBLEMS Chapter 21 p.247 For in Class Discussion 1 2 P03.00 DD Comp 10/23 19 Avoiding Errors in Estimates & Submitting Bids Assign EX08 CEx PROBLEMS Chapter 22 p.252 For in Class Discussion 1 2 EX07 Q07 10/25 20 DD ESTIMATES DUE Project Buyout & Estimate as Basis of Schedule CEx Part III Putting Cost to the ESTIMATE P04.00 DD Budget 10/30 21` Equipment Assign EX09 CEx PROBLEMS Chapter 23 p.256 For in Class Discussion 1 2 EX08 Q08 11/1 22 SELECTION STRATEGY Choose the Project to Bid CEx PROBLEMS Chapter 27 p.280 For in Class Discussion /6 23 DD ESTIMATES Presentation EX09 11/8 24 TEAM Work in Class Organize and Prepare for BID Assign EX10 Q09 11/13 25 Submitting The Bid CEx PROBLEMS Chapter 28 p.288 For in Class Discussion FALL TRM452 1 of 2 jkr
13 TRM PCM: Budget and Cost Management AGENDA Tentative Schedule Schedule revisions will be posted in Blackboard ASSIGNMENTS AND DUE DATES 11/15 26 Project Buyout CEx Part IV Finalizing the Bid CEx PROBLEMS Chapter 29 p.292 For in Class Discussion 1 10 EX10 11/20 27 Ethics CEx PROBLEMS Chapter 31 p.296 For in Class Discussion 1 7 Q10 11/22 THANKSGIVING BREAK THANKSGIVING BREAK BREAK 11/27 28 TEAM Work in Class Organize and Prepare for BID 11/29 29 TEAM Work in Class Organize and Prepare for BID 12/4 31 BID OPENING DAY 4 TEAMS 6:00PM Sharp P05.00 Sealed BID & Strategy 12/6 32 Review / Projects DECEMBER FINALS WEEK FINAL EXAM Thursday December 13 5:50 7:50PM ROOM C0113 * Agenda may be updated by the instructor during the semester as needed to adjust projects schedule FALL TRM452 2 of 2 jkr
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