Cost · Course
Cost Management & Earned Value
A five-session practitioner course covering the complete cost lifecycle: building a credible estimate to the AACE class framework, structuring it as a Performance Measurement Baseline, and running Earned Value Management through delivery. For people who own cost numbers and need to defend them.
Who it is for
Built for these people.
- Cost engineers and PMO analysts implementing or running cost control on a programme
- Graduate quantity surveyors moving into project cost control
- Project managers accountable for cost reporting but who didn’t set up the system
- Client-side project controllers who review and challenge contractor cost submissions
- Commercial and finance professionals who consume cost reports and want to understand how the numbers are built
Outcomes
What you will walk away with.
- Describe the AACE International classes of estimate (Class 1 to Class 5) and what level of definition each requires
- Build a WBS-aligned cost estimate structure that separates base estimate, allowances, and contingency correctly
- Calculate contingency using a structured, defensible method rather than a percentage guess
- Convert an estimate into a time-phased Performance Measurement Baseline (PMB)
- Explain PV, EV, AC, CPI, SPI, BCWS, BCWP, and ACWP clearly and correctly without reaching for a glossary
- Select the right earning rule for each work package type and justify the choice
- Spot the most common forms of EVM gaming and know how to challenge them
- Produce a credible Estimate at Completion (EAC) using multiple methods and explain the difference between them
- Write a variance narrative that adds value rather than explaining away bad news
Syllabus
Session by session.
Session 1 — Estimating Principles & AACE Classes
3 hours- Why estimates fail: the psychology of optimism bias and how it shows up in project cost data
- AACE classes of estimate Class 5 to Class 1: what each requires and what decisions each supports
- Estimate components: direct costs, indirect costs, overheads, profit, escalation, contingency — what belongs where
- Three-point estimating for cost: optimistic, most likely, pessimistic — getting credible ranges from your team
- Escalation in practice: how to apply published indices, what to do when an index doesn’t exist for your sector
- UK context: AACE framework use by National Highways, Network Rail, UKAEA; NEC contract implications
Session 2 — Building a Credible Estimate
3 hours- WBS-aligned cost structure: why your cost breakdown structure must follow the scope breakdown, not the organisational chart
- Base estimate discipline: what goes into the base estimate and what must be kept out (buried contingency and scope optimism)
- Allowances: what they are, when to use them, and how to document and track them through delivery
- Contingency calculation: deterministic methods (% by element), factor-based methods, and simple risk-based approaches
- Documenting the basis of estimate: what you need to record so the estimate can be defended six months later
- Independent estimate review: what to look for when you’re checking someone else’s work
Session 3 — From Estimate to Baseline
3 hours- The Performance Measurement Baseline (PMB): structure, purpose, and the consequence of getting it wrong
- Control accounts: what they are, who owns them, how granular to go
- Work packages vs planning packages: when to plan in detail and when it’s too early
- Time-phasing the budget: why a well-structured PMB is not just a schedule with cost on top
- Undistributed budget and management reserve: what they are and how they are used correctly
- The baseline review process: what governance looks like on a well-run programme
Session 4 — Earned Value & Earning Rules
3 hours- The three curves: PV (BCWS), EV (BCWP), AC (ACWP) — what each represents and how to read them together
- Schedule Variance, Cost Variance, CPI, SPI: what they mean in plain English and what they don’t tell you
- The earning rules: 0/100, 50/50, % complete, weighted milestones, level of effort — when to use each
- Why % complete is the most dangerous earning rule and when it’s still the right answer
- EVM gaming: the most common ways contractors and project teams inflate EV, and how to detect them
- Worked examples: applying earning rules to different work package types and assessing the result
Session 5 — Forecasting & EAC
3 hours- Estimate at Completion (EAC): the main calculation methods, what assumptions each makes, when each is appropriate
- Variance at Completion (VAC) and To Complete Performance Index (TCPI): interpreting them honestly
- The relationship between EAC and bottom-up re-estimates: when to trust the formula and when to override it
- Variance analysis: when a variance is significant, and how to write a variance narrative that adds value
- Rebaselining: the legitimate triggers, the governance required, and why “we just rebaselined” is a red flag
- Presenting cost and EV results to stakeholders: what boards and clients need to see, and how to have the hard conversation
Prerequisites
Before you join.
- Comfortable working in Excel at a basic level
- Familiarity with basic project management concepts: scope, schedule, budget
- Some exposure to cost reporting — even just reading a monthly cost report — is helpful
- No prior estimating or EVM experience required — we build from first principles
What you get
Included with every seat.
- Access to all five live sessions with a practitioner instructor
- Recordings of every session, available for 12 months
- A course workbook including the estimate, baseline, and EV worked examples used during the sessions
- A contingency calculation guide covering the main deterministic methods
- An EVM quick-reference card covering key formulas and interpretation guidance
- A SOMA certificate of completion for your CPD record
- Access to a post-course Q&A thread for follow-up questions from your own programmes
FAQs
The honest answers.
Is this a quantity surveying course?
No. It is a project cost control course. There is overlap with QS work on estimating, but the focus is on the project controls workflow — building estimates that link to a WBS, converting them into a baseline, and measuring performance against it — rather than measurement, bills of quantities, or contract administration.
Is EVM relevant if we’re not on a formal EVM contract?
Yes. The mechanics of PV, EV, and AC apply to any programme where you have a budget, a schedule, and actual costs — whether or not your contract calls it EVM. Many UK infrastructure teams run EV reporting internally even where the contract doesn’t require it, because it gives a more honest performance picture than cost-only reporting.
Do I need specific software?
No. The worked examples use Excel. If your organisation uses a dedicated EVM tool (Cobra, wInsight, Deltek Costpoint, etc.) the concepts transfer directly. We don’t tie the course to a specific tool.
Is AACE relevant in the UK?
Yes. AACE’s Total Cost Management Framework and its recommended practices are the most comprehensive international body of knowledge for cost engineering and are widely used by UK infrastructure and energy clients as a reference standard. The AACE class of estimate framework is used by National Highways, Network Rail, and UKAEA, among others.
What if I miss a session?
Recordings are available within 24 hours. The course builds progressively, so watching any missed session before the next one is strongly recommended. You can also roll your place to a future cohort if needed.
Can I expense this?
Almost certainly. At £1,195 it sits within standard CPD budgets for cost engineers, PMO analysts, and commercial leads. We provide a VAT invoice.
Do you run this in-house?
Yes, and it works particularly well in-house when the cost engineer, PM, and PMO analyst from the same programme attend together. We can use your actual baseline structure as the worked example. Contact us for a quote.
Want to talk about training your team?
Tell us the shape of your programme and your team's level. We will come back with a recommendation that fits — open course, in-house, or a mix.