Contract Cost and Price Analysis Training Course

Course Category : Project Management

A practical training programme focused on contract cost and price analysis, enabling participants to achieve fair and competitive pricing, understand supplier pricing models, and maximise value in volatile market conditions. 5 Days – Intermediate Level

Introduction

Achieving fair and reasonable pricing in contracts is a critical challenge for organisations operating in both public and private sectors, particularly in volatile markets with fluctuating material costs and supply chain pressures. The ability to distinguish between price analysis and cost analysis, and to apply the appropriate methodology, is a core professional competency for contract and procurement practitioners.
This course equips participants with practical analytical tools and methodologies to understand price components, analyse cost drivers, develop “should-cost” models, and apply Total Cost of Ownership concepts to support sound commercial and contractual decision-making..

Targeted Audience

Contract Managers and Administrators
Contract Engineers and Quantity Surveyors
Project Managers and Engineers
Tender and Bid Managers
Procurement and Purchasing Managers
Maintenance and Systems Managers
Newcomers to contracts or professionals seeking a refresher

Targeted Skills

Cost and Price Analysis
Supplier Pricing Evaluation
Cost Management in Volatile Markets
Cost Modelling and Should-Cost Analysis
Total Cost of Ownership Assessment

Expected Outcomes

Distinguish between price analysis and cost analysis and apply each appropriately.
Select suitable analysis methods based on contract and market conditions.
Analyse cost drivers and develop robust cost models.
Assess price fairness and supplier profit margins.
Improve pricing and negotiation outcomes in contracts and variations.

Training Topics Index

Reducing procurement costs
Impact of contract savings on profitability
Prioritising cost reduction efforts
Supplier pricing models
Developing savings hypotheses

Cost analysis vs. price analysis
Criteria for method selection
Price analysis techniques
Historical pricing and indices
Calculating price adjustments

Cost analysis methods and techniques
Identifying major cost elements
Overheads and profit margins
Developing should-cost models
Evaluating supplier cost breakdowns

Industry and global benchmarking
Labour rates and currency effects
Total Cost of Ownership models
Cost-volume-profit analysis
Value analysis techniques

Managing contracts under economic volatility
Economic adjustment clauses
Continuous improvement methodologies
Early supplier engagement
Reporting and realising savings

Course Features

Updated and Interactive Content
Hypothetical Examples and Case Studies
Pre- and Post-assessments to Measure Impact
Verified Certificate with a QR Verification Code