Course
Project Cost Estimation and Risk Analysis (IND550)
The course provides an introduction to different methods for cost estimation and handling uncertainty related to the estimate.
Dette er emnebeskrivelsen for studieåret 2025-2026. Merk at det kan komme endringer.
Fakta
Emnekode
IND550
Vekting (stp)
10
Semester undervisningsstart
Spring
Undervisningsspråk
English
Antall semestre
1
Vurderingssemester
Spring
Timeplan
Litteratur
Content
The purpose of this course is to provide students with a theoretical and practical approach to the field of cost estimation. The subject is intended as a supplement to subjects such as contract strategy, contract completion and implementation, and project management. Cost estimation is relevant to all types of businesses and organizations and is an essential theme through all phases of the life cycle of a project. Estimate of investment costs is an important element in the decision whether a company will sanction a potential project. Cost estimation is part of the project budgeting process, the control phase of the project, implementation and is decisive for contracting in relation to procurement. The course aims to provide students with insights into various forms of cost estimates, different methods of cost estimation, and analysis and management of uncertainty and risk associated with cost estimates. Fundamental underlying drivers behind cost overruns are also a key issue.
Learning outcome
After completing the course, the student should be able to:
- Apply techniques, models and methods that are relevant for performing different cost estimates.
- Perform sensitivity analyses and use Monte Carlo simulations in Excel to analyse risk and uncertainty associated with cost estimates.
- Have knowledge of and be aware of various factors that lead to cost overruns.
Forkunnskapskrav
Ingen
Anbefalte forkunnskaper
Basic knowledge of contract completion and implementation, project management, mathematics, statistics and use of spreadsheets.
Exam
| Form of assessment | Weight | Duration | Marks | Aid |
|---|---|---|---|---|
| Written exam | 1/1 | 4 Hours | Letter grades | Basic calculator |
Digital exam (Inspera)
Vilkår for å gå opp til eksamen/vurdering
Mandatory assignment
The student is required get approved a mandatory assignment to be able to take the exam. If the assignment is not approved, the student cannot take the exam.
Fagperson(er)
Head of Department:
Tore MarkesetCourse coordinator:
Sindre LorentzenMethod of work
- Lectures
- Voluntary group work, group discussion and presentations during lecture
- Voluntary assignments and case preparation outside lecture
- Voluntary exercises in Excel and VBA during lecture
- Voluntary tests on Canvas without assessment
Åpent for
Admission to Single Courses at the Faculty of Science and Technology
Industrial Economics - Master of Science Degree Programme
Industrial Economics - Master of Science Degree Programme, Five Year
Exchange programme at Faculty of Science and Technology
Emneevaluering
There must be an early dialogue between the course supervisor, the student union representative and the students. The purpose is feedback from the students for changes and adjustments in the course for the current semester.In addition, a digital course evaluation must be carried out at least every three years. Its purpose is to gather the students experiences with the course.
The course description is retrieved from FS (Felles studentsystem). Version 1