COurse Estimation and Cost Control Fundamentals for Oil & Gas Capital Projects Denver Marriott City Center EUCI is authorized by IACET to offer 1.1 CEUs for the course. 1
Overview Managing the complexity of major capital projects in today s oil and gas industry landscape has never been more challenging or critical. Global demand for commodities continues to drive substantial capital investment within the sector. Developing effective cost estimation and control strategies in the project development phase plays a vital role in the success of an overall project management plan. Project history and the subsequent statisitcs tend to suggest that between 50% to 100% of capital projects overrun. It is important to know the completeness and the accuracy ranges for capital project estimates. EUCI s Estimation and Cost Control Fundamentals for Oil & Gas Capital Projects course focuses on the practical skills and methods needed in estimation to improve project and operating performance across the oil and gas industry. Key project and operations considerations to be covered include planning, estimating, modelling, organizing and controlling resources and schedules. The goal is to optimize project performance and quality. The skills taught are industry specific and can be widely applied at upstream, downstream, and corporate levels. Designed to provide comprehensive coverage of the fundamentals of estimating for process industries, this course will review many subtle as well as advanced estimating concepts. The estimating process will be covered from both the contractor and owner s point of view. Attendees will recognize critical components to consider in various project estimates. Key components of the course include all factors that affect the final cost of building oil and gas infrastructure. This includes overall planning, scoping, and engineering, as well as environmental considerations, construction, and management of the total project. Who Should Attend Project managers, estimators, and contract managers Supervisors and project team members involved in planning, implementing, supervising and directing projects Cost engineers Supply chain and cost accounting professionals Facility engineers and plant operators Project developers that need an understanding of formulating project costs Consultants and engineering firms that work within the upstream and midstream sectors of the oil and gas industry Corporate and asset managers involved in oil and gas asset management Regulatory agency staff Owner project teams Learning Outcomes Discuss the planning process and considerations and establish familiarity with estimating terminology Outline and examine the variety of overall project considerations and different estimate classifications. This includes the deliverables that are required to produce each, their intended accuracy ranges, the purpose of each, and their limitations Apply best practices to overall scoping of project costs Review project economics and financial parameters Explain environmental challenges and impacts on costs and timelines Analyze material costs Review different estimate methodologies Illustrate the make-up of a complete estimating package and how to present it Identify issues around and become familiar with mega-project estimates Discuss the view points and challenges of owner vs. contract vs. engineering 2
Agenda Monday, October 28, 2013 8:00 8:30 a.m. registration and Continental Breakfast 8:30 a.m. 5:00 p.m. Course Timing 12:00 1:00 p.m. Group Luncheon Estimating Fundamentals Introductions and Skill Level Assessment Terminology and Overview of Definitions and Understanding the Language of Estimates Cost estimate Accuracy Confidence level Contingency Battery limits Offsite facilities, etc. Estimate Classifications and Types review of technical and project deliverables for each Look at AACE international estimate classification Primary and secondary cost estimate characteristics Estimate Components and Structuring the Estimate Code of accounts and relationships between work breakdown structure, project breakdown structure, and cost breakdown structure Overview of Estimating Methodologies Differences and characteristics of conceptual versus detailed estimates Examination of Detailed Estimating Topics such as take-off, equipment estimating Costing/Pricing/Adjustments/Allowances Productivity, material costs, wage rates, design allowances, MTO allowances Risk Analysis/Contingency estimate accuracy, items covered and not covered by accuracy Management reserve event driven risk Contingency probability 3
Agenda Tuesday, October 29, 2013 8:00 8:30 a.m. Continental Breakfast 8:30 a.m. 11:45 a.m. Course Timing P presenting and Understanding the Estimate Estimating Plan Why is the estimating plan important What should be included and why Presenting the Estimate/Basis of Estimate Document What should be included in an estimating package What should be included in the basis of estimate and why Why the basis of estimate is a vital document in the estimating package Estimate Schedule Integration Why a comprehensive integration between the project estimate and the project schedule makes for more successful projects and reduces project surprises Estimate Review/Validation Difference between estimate review and estimate validation Different types of reviews at different stages of the estimating process Importance of Project History How the possession of project history helps to produce more accurate estimate and more successful projects 11:45 a.m. Course Adjournment Mega-Project Considerations Because of size, costs and strategic importance to an owner, there are details and technical considerations that estimators must account for in these special, large scale projects 4
INSTRUCTOR Douglas W. Leo, CCP, CEP, FRICS, FAACE / Senior Associate, Project Management and Controls, Chair of the AACE International Estimating Committee / Saybrook Associates Mr. Leo is currently a senior associate in project management and Project Controls at Saybrook Associates and Chair of the AACE International Estimating Committee. He has over thirty years of professional estimating, project management and consulting experience in the engineering and construction industries. Mr. Leo has been responsible for the preparation of conceptual and detailed estimates for capital projects both domestic and international ranging from $20K to more than $10B in size. He has specialized in capital projects of strategic importance, utilizing new technologies and those involved in the use of parametric estimating methodologies and also provided training in estimating, cost metrics analysis and risk mitigation. Mr. Leo has demonstrated experience in estimating organization management and estimating methods & procedures development. He has provided technical estimating support in petrochemicals, refinery, oil sands, paper & web based technologies, manufacturing, industrial & commercial buildings, mining development, and fertilizer manufacturing. He conducted reviews on such projects as: Agrium - $3B Mid-West Fertilizer Plant, and Suncor Energy Upstream $10B+ upgrader project. Mr. Leo acted as owner representive on such project as: Kinross Gold Corp. - $3B+ Tasiast 60K tpd CIL Proceesing Plant, Husky Energy Sunrise Project 240K bbl/day SAGD Project, and Shell Martinez Refinery he was the owner estimating representative on all projects and turn arounds over 3 year period. Certifications: Certified Cost Professional (CCP) AACE International 1998 Certified Estimating Professional (CEP) AACE International 2008 Fellow (FRICS) Royal Institution of Chartered Surveyors 2010 Fellow (FAACE) AACE International 2011 Certified Construction Auditor (CCA) National Association of Construction Auditors 2012 Construction Control Professional (CCP) National Association of Construction Auditors 2012 He holds an Masters of Business Administration (MBA) from Rochester Institute of Technology with a concentration in international business and the management of technology. 5
Instructional Methods Case studies, PowerPoint presentations and classroom exercises will be used for instruction. Requirements for Successful Completion of Program Participants must sign in/out each day, be in attendance for the entirety of the course to be eligible for continuing education credit. iacet Credits EVENT LOCATION EUCI has been approved as an Authorized Provider by the International Association for Continuing Education and Training (IACET), 1760 Old Meadow Road, Suite 500, McLean, VA 22102. In obtaining this approval, EUCI has demonstrated that it complies with the ANSI/IACET Standards, which are widely recognized as standards of good practice internationally. As a result of its Authorized Provider membership status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standards. EUCI is authorized by IACET to offer 1.1 CEUs for the course. A room block has been reserved at the Denver Marriott City Center, 1701 California Street, 80202, for the nights of October 27-28, 2013. Room rates are $199, plus applicable tax. Call 303-297-1300 for reservations and mention the EUCI course to get the group rate. The cutoff date to receive the group rate is September 27, 2013, but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. PROCEEDINGS The proceedings of the course will be published, and one copy will be distributed to each registrant at the course. 6
EVENT LOCATION please register the following A room block has been reserved at the Denver Marriott City Center, 1701 California Street, 80202, for the nights of October 27-28, 2013. Room rates are $199, plus applicable tax. Call 303-297-1300 for reservations and mention the EUCI course to get the group rate. The cutoff date to receive the group rate is September 27, 2013, but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early. Estimation and Cost Control Fundamentals for Oil & Gas Capital Projects : US $1395 Early bird on or before october 18, 2013: US $1195 EUCI s E EUCI has gathered during its 26 years organizing conferences. Sign me up for Energize Weekly. How did you hear about this event? (direct e-mail, colleague, speaker(s), etc.) Print Name Job Title Company What name do you prefer on your name badge? Address City State/Province Zip/Postal Code Country Telephone Email List any dietary or accessibility needs here CREDIT CARD Name on Card Account Number Billing Address Billing City Billing State Billing Zip Code/Postal Code exp. Date Security Code (last 3 digits on the back of Visa and MC or 4 digits on front of AmEx) OR Enclosed is a check for $ to cover registrations. All cancellations received on or before September 27, 2013, will be subject to a US $195 processing fee. Written cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event or publication. This credit will be good for six months. In case of event cancellation, EUCI s liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800. (201) 871-0474. EUCI reserves the right to alter this program without prior notice. 7