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ENGINEERING
September 2011
THE JOURNAL OF AACE INTERNATIONAL -
THE AUTHORITY FOR TOTAL COST MANAGEMENT
TM
COST COST COST
PRESIDENTS
MESSAGE
SPREADING
THE WORD
CANON
OF ETHICS
UPDATED
AND REVISED
SPECIAL FEATURE
GOVERNANCE
TASK FORCE
OUTLINES ITS WORK
AND SEEKS MEMBER INPUT
Mistakes
Made
NEGOTIATIONS
TOP10
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1 COST ENGINEERING SEPTEMBER 2011
CONTENTS
COST ENGINEERING
TECHNICAL ARTICLES
19 Top 10 Mistakes Made in
Project Negotiations
Joseph A. Lukas, PE CCE
Do you have clients that argue about the additional cost and/or time for project
changes? Do you have internal disagreements regarding estimates and schedules? You need
to be an effective negotiator to handle these situations. Unfortunately, most cost/schedule pro-
fessionals, estimators, and project managers, come up short in interpersonal skills, such as ne-
gotiating. This article will discuss the top 10 mistakes made in conducting project negotiations,
along with techniques that can be used to avoid these mistakes. In addition, a recommended
procedure to follow when preparing for a negotiation will be described. The goal is to help you
understand when to hold your position in a negotiation, when to compromise, and when to walk
away. This article should be of interest to project personnel looking for pointers on how to be
more effective in negotiation situations. If you think youre a skilled negotiator, read this article
to see if you are making any of the 10 most common negotiation errors. You may be surprised!
This article was first presented at the 2010 AACE International Annual Meeting as manuscript
PM.04.
2 COST ENGINEERING SEPTEMBER 2011
5 Presidents Message
Spreading the Word
8 Special Feature
Governance Task Force Outlines its
Work and Seeks Member Input
10 Canon of Ethics
Updated and Revised
14 Young Professionals
in Cost Engineering
Spotlight on F. Burak Evrenosoglu,
PE CCE PSP
16 Technical Overview
Change Management in the Trenches
4 AACE International Board of Directors
4 Cost Engineering Journal Information
27 Professional Services Directory
27 Index to Advertisers
32 AACE International Online Store
34 AACEs 2012 Annual Meeting
CONTENTS
DEPARTMENTS
ALSO FEATURED
COST ENGINEERING
28 The AACE
International Bulletin
Section News from Around the World
31 In Memoriam
Remembering Casimir A. DeCwikiel
35 Article Reprints
and Permissions
Sharing our Articles and Experience
36 Calendar of Events
AACE International Events and More
THE AACE INTERNATIONAL ONLINE BUTTON - This editon
of the Cost Engineering journal has access to additonal ma-
terial on the AACE Internatonal website, www.aacei.org.
Anytme you see the symbol at center, there is additonal
content online associated with that artcle or feature. Direct
your browser to www.aacei.org and look for the online but-
ton to access additonal resources. If you are already reading
the electronic version, just click the online buton directly.
COSTENGINEERING
4 COST ENGINEERING SEPTEMBER 2011
HEADQUARTERS
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CONTENTS
AACE INTERNATIONAL
BOARD OF DIRECTORS
PRESIDENT
Michael R. Nosbisch, CCC PSP
562.733.2472 / president@aacei.org
PRESIDENT-ELECT
Marlene Hyde, CCE EVP
303.940.3200 / preselect@aacei.org
PAST PRESIDENT
Stephen O. Revay, CCC CFCC
403.777.4900 / pastpres@aacei.org
VICE PRESIDENT-ADMINISTRATION
Martin Darley, CCC FRICS
713.372.2426 / vpadmin@aacei.org
VICE PRESIDENT-FINANCE
John J. Ciccarelli, PE CCE PSP
609.497.2285 / vpfinance@aacei.org
VICE PRESIDENT-TEC
George Whyte, CCC CEP EVP
301.957.7434 /vptec@aacei.org
VICE PRESIDENT-REGIONS
Julie Owen, CCC PSP
213.922.7313 / vpregions@aacei.org
DIRECTOR-REGION 1
Ginette Basak, P.Eng. FAACE
403.708.7674 / dirregion1@aacei.org
DIRECTOR-REGION 2
John C. Livengood, CFCC PSP
202.669.1360 / dirregion2@aacei.org
DIRECTOR-REGION 3
James H. Carson, CCC CEP
770.444.9799 / dirregion3@aacei.org
DIRECTOR-REGION 4
Duane R. Meyer, PE CCE
513.241.1230 x 620 / dirregion4@aacei.org
DIRECTOR-REGION 5
Earl J. Seabrook, III, CCC
713.372.0521 / dirregion5@aacei.org
DIRECTOR-REGION 6
Nicholas Keller, CCC EVP PSP
dirregion6@aacei.org
DIRECTOR-REGION 7
Philips Tharakan Mulackal, CCE EVP
+971.50.631.4830 / dirregion7@aacei.org
DIRECTOR-REGION 8
Keith Webb
+61.8.93485045 / dirregion8@aacei.org
EXECUTIVE DIRECTOR
Dennis G. Stork
304.296.8444 / dstork@aacei.org
Viewpoints expressed in columns, features, and articles published in Cost Engineering journal are solely those
of the authors and do not represent an official position of AACE International. AACE International is not en-
dorsing or sponsoring the authors work. All content is presented solely for informational purposes. Columns,
features, and articles not designated as Technical Articles are not subject to the peer-review process.
Cost Engineering (ISSN: 0274-9696/11) is published monthly by AACE International, Inc, 209 Prairie Ave., Suite 100,
Morgantown, WV 26501 USA. Periodicals postage paid at Morgantown, WV, and at additional mailing office. POSTMASTER:
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(APC), Publications Mail Agreement No 40624074, Return undeliverable Canadian addresses to PO Box 503, RPO West
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special inserts available to AACE members only. Subscription rates: United States, US$72/year; all other countries, US$91/year.
Overseas airmail delivery is available at US$99. Subscriptions are accepted on an annual-year basis only. Copyright 2011 by
AACE International, Inc. All rights reserved. This publication or any part thereof may not be reproduced in any form without
written permission from the publisher. AACE assumes no responsibility for statements and opinions advanced by the
contributors to its publications. Views expressed by them or the editor do not necessarily represent the official position of Cost
Engineering, its staff, or AACE International, Inc. Printed in York, PA, USA. Cost Engineering is a refereed journal. All technical
articles are subject to review by a minimum of three experts in the field. To submit a manuscript for peer review, see author
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internal reference use without the express permission of AACE is prohibited. E-mail requests for photocopy permission on bulk
orders may be sent to editor@aacei.org. ADVERTISING COPY: Contact Network Media Partners., Executive Plaza 1, 11350
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advertisements printed and also assume responsibility for any claims arising therefrom made against the publisher. The
publisher reserves the right to reject any advertising that is not considered in keeping with the publications mission and
standards. The publisher reserves the right to place the word advertisement with copy which, in the publishers opinion,
resembles editorial matter. All advertising accepted for publication in Cost Engineering is limited to subjects that directly relate
to the cost management profession. Current rate card available on request. COST ENGINEERING DEADLINES: Submissions for
Cost Engineering must be received at least 8 weeks in advance of the issue date. Send to: Editor, 1265 Suncrest Towne Centre
Dr, Morgantown, WV 26505-1876 USA. Deadlines do not apply to technical papers.
Policy Concerning Published Columns, Features, and Articles
Established 1958
Managing Editor Marvin Gelhausen
mgelhausen@aacei.org
Art Director Noah Kinderknecht
nkinderknecht@aacei.org
Advertising Sales Mark Stout
Network Media Partners Inc.
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Vol. 53, No.9/September 2011
AACE International - The Authority for Total Cost Management
TM
OUR VISION - To be the recognized technical authority in cost and schedule management
for programs, projects, products, assets, and services.
OUR MISSION - The members of AACE
C L
CM S
k M
D k
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C M
C I
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Project Closeout
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NAMED A BEST SMALL COMPANY TO WORK
FOR I N AMERI CA FOR 2010
LNGI NLLkI NG NLWS kLCCkD
TOP 100 CONSTRUCTI ON MANAGEMENT FI RM
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Management
Capital Budgeting and
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Sustainable Planning and
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Program and Construction
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Capital Asset Management
www.mocasystems.com
27 COST ENGINEERING SEPTEMBER 2011
PROFESSIONAL SERVICES DIRECTORY
INDEX TO ADVERTISERS
For additional information about the listed advertisers or about adver-
tising with us, please phone Mark Stout at Network Media Partners,
(410) 584-1966, or e-mail him at mstout@networkmediapartners.com
ADVERTISE
IN THE
COST ENGINEERING
JOURNAL
OR GO ONLINE AT www.aacei.org
REACHthe entire AACE International mem-
bership every month by placing an ad in the
Cost Engineering journal.
PLACE your products/services in front of
over 50,000 users each month with a banner
ad at our website, www.aacei.org.
EXHIBIT at the 2012 AACE International
Annual Meeting in San Antonio, TX, and
AACE International members face to face.
CONTACT
Mark Stout at Network Media Partners Inc.
phone 410-584-1966 fax 410-584-8359
e-mail mstout@networkmediapartners.com
YOUR
VISIBILITY
INTERNATIONAL BULLETIN
SECTIONNEWS
FROM AROUND
THE WORLD
Submitted photo
The Chinook Calgary Sectons April meetng featured David
Weatherby as the guest speaker. Shown above are: Steve Revey,
CCC CFCC; Mahendra Bhata, David Weatherby and Donna
Kainth.
Submitted photo
Long-tme Chinook-Calgary member Arthur Kowalchuk, P.Eng.,
is the 2011 recipient of the Charles V. Keane Distnguished Serv-
ice Award. Shown above at a Chinook Calgary Secton meetng
are Steve Revey, CCC CFCC; Arthur Kowalchuk, P.Eng.; Mahendra
Bhata, and Ginete Basak, P.Eng.
29 COST ENGINEERING SEPTEMBER 2011
head tracks over 14th Street, CPR Rail lines and along the Bow
River. The Trench&Tunnel sectons required solid support for em-
bankments, track base and several curved sectons of rail lines.
Prefabricated sectons of tunnels required heavy lif equipment
for installaton. Curved support steel was provided for roof sup-
port at LRT Statons. The Sarcee Trail Interchange involved com-
plex grade requirements. Safety was always considered and
carried out at all constructon areas.
A queston/answer period followed the presentaton.
Cascade Secton
On July 28, the board members of the Cascade Secton met
at the Bridgeport Brewery to discuss ways to enhance the sec-
tons monthly meetngs. The members were honored to have
Nick Kellar, CCC EVP PSP, Region 6 Director, in atendance.
Also present were TJ Baxter, Director, Steve Kunishige, VP, Bas-
sam Khalifeh, President, and Dennis Van Kirk, Past President.
Much was discussed on the challenges of getng more reg-
istered AACE members to atend the monthly meetngs. Nick
partcipated in the discussion and passed along great ideas
about getng back to the basics of cost engineering, cost est-
matng, planning and scheduling and project controls. The sec-
ton board thanks Nick for atending the board meetng during
his busy schedule.
Montreal Secton
The Montreal Secton sponsored a special event in April
2011 to celebrate the 50th anniversary of the Montreal Secton,
the rst Canadian secton founded in 1961, and whose member-
ship originally included Mr. Arthur Millar, one of the founding
members of AACE.
As the AACE Internatonal Board of Directors was holding a
two day meetng in Montreal in April, Steve Revay, CCC CFCC and
President of AACE Internatonal and Ginete Basek, P.Eng., Direc-
tor-Region 1, were invited as guest speakers at the event which
was at the Omni Mount Royal Hotel in downtown Montreal.
Submitted photo
Atendees at the 50th anniversary celebraton of the Montreal
Secton presented AACE President Steve Revay, CCC CFCC, with
a gif. Shown above from lef are: Rino Gosselin,Michael Primi-
ani, Serge Pressoir, Ginete Basek, P.Eng.; Steve Revay, CCC CFCC;
John J. Ciccarelli,PE CCE PSP; Martn Darley, CCC; and Khaled
Elfekhfakh.
Submitted photo
Montreal Secton Board of Directors member, Celina Ma, talks
to an atendee at the sectons 50th anniversary celebraton.
Submitted photo
Among the atentve audience for the Montreal Sectons 50th
anniversary celebraton were: shown lef to right at the front
table, Hagire Emrani Rino Gosselin, Steve Mancini,Marlene
Raa, Dave Barken, PE; and Dawn Kenny.
Submitted photo
Representng the ACE Internatonal Board of Directors at the
Montreal Sectons 50th anniversary celebraton in April were,
shown lef to right, Martn Darley, CCC; AACE VP-Administraton;
Les McMullan, Montreal Secton President; Ginete Basek,
P.Eng., Region 1 Director; Steve Revay, CCC CFCC, AACE Presi-
dent; and John J. Ciccarelli, PE CCE PSP, AACE VP Finance.
30 COST ENGINEERING SEPTEMBER 2011
A number of the past presidents of the Montreal Secton at-
tended the event including Serge Pressoir, David Barken, PE;
Michael Primiani and Dr. Osama Moselhi, P.Eng., of Concordia
University. Other members of the Internatonal Board also joined
in the festvites including John. J. Ciccarelli, Pe CCE PSP; and
Martn Darley, CCC.
Montreal Secton Board members atended including Les
McMullan (President), Marie-Helene Bi, P.Eng. (Secretary)
John Prizio (Treasurer), Sophie Metras, Susan Klucinskas, Khaled
Elfekhfakh, Celina Ma and Tushith Islam (President Concordia
Student Secton).
The evening started with a bilingual welcome to the AACE
board, Montreal Secton board and members and an introduc-
ton by Les McMullan, current President of the Secton, with a
health and safety video on automobile safety and speed fol-
lowed by a slideshow and photo gallery on various technical
meetngs and seminars such as the School of Project Controls
two day skills and knowledge workshops, the Montreal scholar-
ship program, as well as actvites by Montreal members at the
AACE Annual Meetng in 2010. A panoramic and scenic two
minute video on Montreal provided by the Montreal Tourist Of-
ce was screened to the appreciaton of the audience.
There were 80 persons in atendance to enjoy an enthusi-
astc presentaton by Steve, enttled, Why Good Projects Go
Bad that discussed project warning signs from the viewpoint of
owner, consultant and contractor and provided both causes and
solutons based on project experience and lessons learned.
Ginete provided an interestng presentaton on the status of
AACE and some statstcs, highlightng membership growth of
14 percent, increase in certcaton and the success of various
initatves within the organizaton.
The enjoyment of the evening was enhanced by the excel-
lent service and venue at the Omni Hotel for this special 50th
anniversary event. It was an excellent opportunity to socialize
with our peers in a relaxed setng, enjoy top speakers and cel-
ebrate with the cost engineering community this milestone in
the history of the Montreal Secton of AACE Internatonal and
its ongoing contributon to project management, project con-
trols and cost engineering.
The evening was enjoyed by all, with many members sug-
gestng that a special dinner presentaton could become an an-
nual event..
HAVE YOU RENEWED?
If you haven't done so already, now is a good tme to
renew your dues. You can do so now via our secure
website htps://www.aacei.org/PortalTools/Login.cfm
If you have changed your address, phone number, or
e-mail address in the past year, please update it once
you have logged into your prole so we can provide
membership services to you without interrupton.
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HOW TO SUBMIT SECTION NEWS
TO THE COST ENGINEERING JOURNAL
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Information may be included in the body of the e-mail or as
an attachment. Microsoft Word files are the preferred
format. All photos should be sent as PC tiff or jpg files at 300
dpi. If submitting at only 72 dpi, please send the photo as
large as possible as conversion will reduce its size. Include the
names and titles of each person shown in any photos.
Many times AACE International Sections have been
referred to as chapters. The correct reference should always
be to a Section. AACE International does not have chapters.
Please do not refer to Sections as chapters.
If an event is during the month of publication, it will be
listed as an upcoming event even if members will not receive
their journal in the mail until after the listed event. The
journal goes to press about one months in advance of the
issue date, which is always the first of each month, at which
time the electronic version should be posted.
AACE International reserves the right to edit all
submissions and to refuse to publish any submissions
determined by the editor or executive director to not meet
the standards of the journal.
Anyone with questions on submitting copy or photos
may contact:
Managing Editor - Marvin Gelhausen,
mgelhausen@aacei.org
Submitted photo
Ginete Basek, P.Eng., Director-Region 1, was one of the
speakers at the Montreal Sectons 50th anniversary celebraton
in April. She updated atendees on the status of AACE and some
statstcs, highlightng membership growth of 14 percent, in-
crease in certcaton and the success of various initatves
within the organizaton.
31 COST ENGINEERING SEPTEMBER 2011
IN MEMORIAM
Bernard Ira Liss (1914-2009)
Bernard Ira Liss, 95, died Friday, May 22, 2009, at the Over-
look Hospital in Summit, NJ. Born in Providence, RI, he resided
in New York City, Sheeld, AL, Jersey City and Middlesex before
moving to Warren.
He received his bachelor of science degree from City College
of New York. He was a licensed engineer in New York and New
Jersey. He worked for the Atomic Energy Commission during
World War II. He was a chemical engineer for AIRCO, Inc., in
Murray Hill, NJ, and retred from Lummus in Bloomeld, NJ.
He was preceded in death by both his rst wife, Marjorie
Burger Liss, and by his second wife, Adele Morse Liss. Surviving
are a son, Dr. Richard Liss and his wife, Eleanor, of Warren, NJ; a
daughter, Susan Rivera and her husband, Aniceto, of Boonton,
NJ; ve grandchildren and four great-grandchildren.
A graveside service was conducted at 1 p.m. on Sunday, May
24, 2009, at the Beth Israel Memorial Park Cemetery in Wood-
bridge, NJ. Arrangements were by the Higgins Home for Funerals
of Watchung, NJ.
A
ACE Internatonal is now oering a limited
window of opportunity, for individuals who al-
lowed their certcaton to lapse, to reinstate
those certcatons without taking the exam-
inaton. To take advantage of this one-tme,
limited amnesty program, individuals must
submit a special recertcaton applicaton with payment by De-
cember 31, 2011, along with proof that they have met or ex-
ceeded the recertcaton required by AACE Internatonal to
maintain the certcaton status.
1. Visit the AACE website, www.aacei.org.
2. Select either the online applicaton or the print and mail
applicaton opton listed at the botom of the web page.
3. Complete the applicaton and provide payment informa-
ton.
4. Collect all supportng documents to support the credits
claimed on the applicaton, such as:
Leters from current/previous employers to verify your
actve employment in the industry during the past three
years.
Copies of certcates, atendance rosters, etc. of any
educatonal or professional development actvites during
the past three years.
Copies of lists of professional papers published in the
professional journals or magazines or presented at techni-
cal meetngs, etc., during the past three years.
Documentaton for all voluntary service to AACE or
other cost or management related organizatons, during
the past three years.
Copies of any additonal technical certcatons or li-
cense obtained, during the past three years.
Copy of the last AACE Internatonal certcaton cer-
tcate (if possible).
5. Submit all supportng documents to:
certcaton@aacei.org or mail to:
AACE Internatonal
1265 Suncrest Towne Centre Dr
Morgantown, WV 26505-1876 USA
As of January 1, 2012, any individual who has lapsed the
recertcaton will be required to retake the examinaton to re-
instate the certcaton. AACE Internatonal has announced that
it will be more assertve in assuring that individuals with lapsed
AACE certcatons are not claiming the status on their business
cards, leterhead and professional resumes.
For more informaton on how to reinstate your certca-
ton, contact Valerie Smith or Amanda E. Hildebran at AACE In-
ternatonal Headquarters.
WE CANT FIX YOUR
PARKING TICKET,
BUT WE CAN HELP IF
YOUR CERTIFICATION HAS LAPSED!
Skills and Knowledge of Cost Engineering,
5th Edition, Revised
Scott J. Amos, Editor, 2007
This updated and expanded guide for fundamentals is an
excellent choice for anyone interested in a concise
reference to all aspects of the profession. The new 5th
edition includes twenty-seven chapters on estimating,
manufacturing and operating costs, scheduling, planning
progress and cost control, and much more. This is a very
useful book for those studying for the certification exam. 450 pages
1545-01 paper version - US$65.00 member/US$95.00 nonmember
1545-02 CD-ROM - US$65.00 member/US$95.00 nonmember
1595-02zip - Download - US$50.00 member/US$80 nonmember
CCC/CCE Certification Study Guide, 3rd Edition
Michael B. Pritchett, CCE, Editor, 2006
The AACE International CCC/CCE Certification Study
Guide provides an all-encompassing reference text to
prepare for the exam. The CCC/CCE Certification Study
Guide provides background information on how to
become certified; gives those studying for the
certification exam a single reference text that includes
theory, worked problems with answers, references, and
a full discussion of key topics; allows students to
maximize their study time; and provides a concise overview of the
fundamentals of cost and project management.
1820-35 paper version - US$65.00 member/US$95.00 nonmember
1820-36 CD-ROM - US$65.00 member/US$95.00 nonmember
1825-36zip - Download - US$50.00 member/US$80 nonmember
SPECIAL OFFER - BUY BOTH AND SAVE!
Skills and Knowledge of Cost Engineering, 5th Edition, Revised
& CCC/CCE Certification Study Guide, 3rd Edition Combo
1820-98 - US$115.00 member/US$170.00 nonmember
PSP Certification Study Guide, 1st Edition
Peter W. Griesmyer, Editor, 2008
This study guide is intended to assist you in your study
and review of the overall topics as one step toward suc-
cessful Planning and Scheduling Professional certification.
The outline provides a listing of the terms you should
know & topics for which you should have a good under-
standing of how to apply the concepts to solve problems.
Each chapter also contains sample exercises, which test
your knowledge of that chapter's concepts. Additional
sample questions are provided in an appendix.
1820-37 paper version - US$65.00 member/US$95.00 nonmember
1820-38 CD-ROM - US$65.00 member/US$95.00 nonmember
1820-38zip - Download - US$50.00 member/US$80.00 nonmember
EVP Certification Study Guide, 2nd Edition
Ken Cressman, CCC EVP and Gary C. Humphreys, Editors, 2009
This study guide is intended to assist you in your study and
review of the overall topics as one step toward successful
Earned Value Professional certification. The outline pro-
vides a listing of the terms you should know & topics for
which you should have a good understanding of how to
apply the concepts to solve problems. Each chapter also
contains sample exercises, which test your knowledge of
that chapter's concepts.
1820-39 paper version - US$65.00 member/US$95.00 nonmember
1820-40 CD-ROM - US$65.00 member/US$95.00 nonmember
1820-40zip - Download - US$50.00 member/US$80.00 nonmember
Cost Engineering
The international journal of
cost estimation, cost/schedule
control, project management,
and total cost management.
Subscriptions are accepted on
an annual basis. An automatic
benefit of AACE International
membership, also available to
nonmembers.
5060-07 - US$72.00 (US)
- US$171.00 (other countries)
Please add US$80.00 for airmail
- US$61 electronic subscription
Cost Engineers Notebook
This CD-ROM is an important reference for any
project or cost professional. It includes data and
procedures related to basic skills and knowledge
that all cost engineers should possess, extensive
material on capital and operating cost estimation,
and papers in four subject areas: cost control,
planning and scheduling, project management, and
economic analysis and business planning.
4060-01 - CD-ROM
- US$80.00 member/US$120.00 nonmember
4060-28zip - Download
- US$65.00 member/US$105.00 nonmember
AACE International Recommended Practices
Cost Engineering Terminology; Cost Estimate
Classification System; Estimate Preparation Costs in
the Process Industries; Project Code of Accounts;
Required Skills and Knowledge of a Cost Engineer;
Roles and Duties of a Planning and Scheduling
Engineer; Profitability Methods; plus many more.
4060-05 - CD-ROM
- US$85.00 member/US$125.00 nonmember
4060-05zip - Download
- US$70.00 member/US$110.00 nonmember
The Total Cost Management Framework
John K. Hollmann, PE CCE, Editor, 2006
4060-21 - Paper version
- US$65.00 member/US$95.00 nonmember
4060-20 - CD-ROM
- US$65.00 member/US$95.00 nonmember
4060-20zip - Download
- US$50.00 member/US$70.00 nonmember
2011 AACE International Transactions
5220-11 - CD-ROM
- US$90.00 member
- US$115 nonmember
5220-11 zip - Download
- US$75.00 member
- US$80.00 nonmember
AACE INTERNATIONAL ONLINE STORE
AACE INTERNATIONAL ONLINE STORE
more online at www.aacei.org
More AACE Publications at the Online Store - www.aacei.org
PPG#1: Contracts and Claims, 4th Ed.
James G. Zack Jr., Editor, 2008
Covers: Contract Administration; Management of
Construction Schedules; Schedule Control; Schedule
Float Ownership; Cost Control; Management of
Change; Cost Impacts; Productivity Impacts; Manage-
ment and Analysis of Delay; Concurrent Delay Issues;
Pricing of Delay; and more.
PPG#2: Risk, 2nd Ed.
Keith D. Brienzo, PE, Editor, 2007
Covers: Dictionary; Capital Investments; Cash Flow;
Competitive Bidding; Contingency Analysis; Contracts;
Cost Engineering; Currency Rates; Decision Trees; Eco-
nomic Analysis; Escalation; Human Factors; Manufac-
turing; Research & Development; Safety & Health;
Schedule; Technological Risk; and Value Engineering.
PPG#3: Cost Engineering in Aerospace and Avi-
ation
Sarwar A. Samad, Editor, 1998
Covers: Aerospace and Aviation.
PPG#4: Planning and Scheduling, 2nd Ed.
Trevor X. Crawford, CCC, Editor, 2006
Covers: Planning; Schedule Development; Schedule
Management/Control; and Classics.
PPG#5: Earned Value, 2nd Ed.
Robert A. Marshall, Editor, 2007
Covers: Why Use Earned Value?; Basics of Earned
Value; Cost/Schedule Control System Criteria; Actual
Physical Percent Complete; Productivity and Earned
Value; Earned Value Reporting; Applications of Earned
Value Project Management; and more.
PPG#6: Construction Cost Estimating, 2nd Ed.
Dr. Douglas D. Gransberg, PE CCE, And Carla Lopez
del Puerto, CCC, Editors, 2006
Covers: Recommended Practices; Estimating Theory;
Conceptual, Parametric, and Range Estimating; Esti-
mating Factors and Indices; Estimating Material Costs
and Quantity Surveying; Estimating Labor Costs; Esti-
mating Equipment Costs; Subcontracting Costs; Esti-
mating Overhead and Indirect Costs; Profit,
Contingencies, and Mark-Ups; Estimating Interna-
tional Construction Costs; and more.
PPG#7: Cost Engineering in the Utility
Industries, 2nd Ed.
Dennis M. Thompson, Editor, 2007
Covers: Auditing; Cost Estimating; Cost Modeling;
Cost/Schedule Control; Generation Power Plant; Nat-
ural Gas Industry; Nuclear Power Plant; Other Energy
Related Topics; Planning and Scheduling; Project
Management; Utility Rates; and Utility Property Valu-
ation.
PPG#8: Contingency, 2nd Ed.
Kul B. Uppal, PE, Editor, 2005
Covers: General Topics On Contingency; Cost Estimat-
ing and Contingency; Risk Analysis and Contingency;
and Other Related Topics.
PPG #10: Project Delivery Methods, 2nd Ed.
Dr. Douglas D. Gransberg, PE CCE, Tammy L. Mc-
Cuen, and Keith Molenaar, Editors, 2008
Covers: Design-Bid-Build (DBB) DBB Estimating, DBB
Scheduling, DBB Project Management; Construction
Management (CM) CM Estimating, CM Scheduling,
CM Project Management; Design-Build (DB) DB Es-
timating, DB Scheduling, DB Project Management; In-
ternational Project Delivery; Constructability; and
Partnering.
PPG #11: Environmental Remediation &
Decommissioning, 2nd Ed.
Richard A. Selg, CCE, Editor, 2009
Covers: Environmental Remediation Planning and
Scheduling Methodology; Cost Estimating, Project Con-
trols, Cost Modeling, and Reporting; Contingency Man-
agement, Risk Analysis, and Environmental Regulations;
Benchmarking and Lessons Learned; Economics of En-
vironmental and Waste Management; Cost-Effective
Waste Minimization and Pollution Prevention; Design,
Construction Practices, and Other Related Topics.
PPG #12: Construction Project Controls
Dr. Douglas D. Gransberg, PE CCE, and James E.
Koch, Editors, 2002
Covers: Introduction to Construction project Controls;
Cost Control; Schedule Control; Quality Control; Doc-
ument Control; Computer Applications; and Interna-
tional Project Controls
PPG #13: Parametric and Conceptual
Estimating, 2nd Ed.
Douglas W. Leo, CCC, Larry R. Dysert, CCC, and
Bruce Elliott, CCC, Editor, 2004
Covers: Parametric/Conceptual Estimating; Classifica-
tion; Methodology; Capacity Factoring; Process and
Non-Process Industries; and Systems
PPG #14: Portfolio and Program Management,
2nd Ed.
Randy R. Rapp, PE CCE, Editor, 2007
Covers: Enterprise Management: General Imperatives and
Concerns; Asset Requirements Elicitation and Analysis;
Asset Planning and Investment Decision-Making; Asset Per-
formance Assessment and Change Management; and Pro-
gram Management.
PPG #15: Life-Cycle Cost Analysis
Dr. Douglas D. Gransberg, PE CCE, and Carla Lopez
del Puerto, CCC, Editors, 2007
Covers: Life-Cycle Cost Theory; Life-Cycle Cost Methods,
Determining Discount Rate; Estimating Capital Cost of
Design and Construction; Estimating Operating Costs;
Estimating Salvage/Residual Value; Estimating Sustain-
ability; Life-Cycle Cost Risk Analysis; Life -Cycle Cost
Case Studies; Life-Cycle Cost Analysis in the Interna-
tional Context
PPG #16: Cost Engineering in the
Global Environment
Kul B. Uppal, PE, Editor, 2007
Covers: General Topics on International Projects; Appli-
cable AACE International Recommended Practices; Cost
Estimating Methodology; Risk and Contingency; and
Miscellaneous Topics
PPG #17: Public Sector Estimating
Joseph L. Macaluso, CCC, Editor, 2007
Covers: Basis of Estimates; Labor Costs; Overhead and
Profit; Soft Costs; Bid/Estimate Reconciliation; and
Change Orders
PPG #18: Green Building
Joseph L. Macaluso, CCC, Editor, 2008
Covers: Recognition of Affects and Economic Costs on
the Environment; Formulating Ways of Addressing
Green Building Strategies and Associated Economic
Costs; Specific Green Building Strategies and Project
Costs; Budgeting and Justifying the Cost of Sustainable
Practices; Evaluating Competing Sustainable Strategies:
Using Value Engineering; Evaluating Competing Sustain-
able Strategies: Other Techniques
PPG #19: Leadership and Management
of People
John J. Hannon, CEP, Editor, 2008
Covers: Leadership; Teams; Leadership Roles; Motiva-
tion; and Ethics.
PPG #20: Forensic Schedule Analysis
James G. Zack, Jr., CFCC, Editor, 2008
Covers: Recommended Practice No. 29R-03 Forensic
Schedule Analysis; Synopsis of Recommended Practice;
Basics of Schedule Delay Analysis; MIP-Observational
Static Gross; MIP-Observational Static Periodic; MIP-Ob-
servational Dynamic Contemporaneous As-Is; MIP-Ob-
servational Dynamic Contemporaneous Split;
MIP-Observational Dynamic Modified or Recreated; MIP-
Modeled Additive Single Base; MIP-Modeled Additive
Multiple Base; MIP-Modeled Subtractive Single Simula-
tion; Non-CPM Schedule Delay Analysis Techniques;
General Schedule Analysis Articles
PPG#21: Cost Engineering in the Process
Industries
Kul B. Uppal, PE CEP, Editor, 2009
Covers: General Topics on Process Industries; Cost Es-
timating Methodology; Project Management; Inter-
national Projects; Scheduling; Construction Activities;
Risk Management; Project Controls; and Applicable
AACE International Recommended Practices.
The AACE International Professional Practice Guides (PPGs)
The AACE International Professional Practice Guides (PPGs)
(PPGs) are a series of refer-
ence CDs that consists of
selected Cost Engin eering
articles, AACE Inter national
Transaction papers, and
other previously published documents to
which AACE has rights.
Price per PPG:
CD Member Price US$65.00
CD Non-Member Price US$85.00
Download Member Price US$50.00
Download Non-Member Price US$70.00
Price for the PPG Package
includes all 21 PPGs:
CD Member Price US$1005.00
CD Non-Member Price US$1305.00
Download Member Price US$874.00
Download Non-Member Price
US$1223.00
35 COST ENGINEERING SEPTEMBER 2011
ARTICLE REPRINTS AND PERMISSIONS
COSTENGINEERING
Vol. 53, No.9/September 2011
Members of AACE International have access to free downloads of selected articles
that are published with an AACE International reference number. These articles are
available at the online Virtual Library at www.aacei.org. Electronic files of each
months technical articles are posted and members can download an Adobe Acrobat
(PDF) version of any of the technical articles for free. You can search for articles
using the reference numbers listed in the Cost Engineering journal. Non-members
can subscribe to the AACE Virtual Library at an annual cost of US $100.00. AACE In-
ternational no longer offers reprints of individual articles.
TO ORDER
Contact: AACE International Publications Sales
at pubsales@aacei.org
Photocopying Prices:
For permission to photocopy individual articles
for personal use, or to request permission for
bulk photocopying, please contact the Copy-
right Clearance Center at 978.750.8400, and
pay the required photocopying fees. For any
other use or reprint requests, please e-mail:
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Contact Us
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Morgantown, WV 26505-1876
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Phone: 304.296.8444
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For Information Concerning
Other Reuse Requests
If you are seeking permission to quote or
translate into another language any material
from any issue of the Cost Engineering journal,
please contact our Managing Editor, Marvin
Gelhausen at mgelhausen@aacei.org
Pages 19-25
Top 10 Mistakes Made in Project Negotiations
Joseph A. Lukas, PE CCE
Do you have clients that argue about the additional cost and/or time for
project changes? Do you have internal disagreements regarding estimates and
schedules? You need to be an effective negotiator to handle these situations. Un-
fortunately, most cost/schedule professionals, estimators, and project managers,
come up short in interpersonal skills, such as negotiating. This article will discuss
the top 10 mistakes made in conducting project negotiations, along with tech-
niques that can be used to avoid these mistakes. In addition, a recommended
procedure to follow when preparing for a negotiation will be described. The goal
is to help you understand when to hold your position in a negotiation, when to
compromise, and when to walk away. This article should be of interest to project
personnel looking for pointers on how to be more effective in negotiation situa-
tions. If you think youre a skilled negotiator, read this article to see if you are
making any of the 10 most common negotiation errors. You may be surprised!
This article was first presented at the 2010 AACE International Annual Meeting
as manuscript PM.04.
Article Reference Number - 21962
36 COST ENGINEERING SEPTEMBER 2011
CALENDAR OF EVENTS
SEPTEMBER 2011
6 2011 Mobility 21 Southern
California Transportation Summit,
Mobility 21,
900 West Olympic Boulevard
Los Angeles, CA
Contact: 11summit.eventbrite.com
12-15 RSMeans Seminars
RSMeans,
Crystal City Courtyard
by Marriott Hotel
Arlington, VA
Contact: (415) 441-4000
www.reedconstructionsdata.com
OCTOBER 2011
16-20 ACI Fall 2011 Convention,
The American Concrete Institute (ACI),
Millennium Hotel and
Duke Energy Center
Cincinnati, OH
Contact: www.concrete.org
NOVEMBER 2011
11-17 2011 ASME Mechanical
Engineering Congress and Exposition,
The American Society of Mechanical
Engineers (ASME),
Hyatt Regency Denver and Colorado
Convention Center
Denver, CO
Contact: www.asmeconferences.org
12 AACE International
Leadership Conference,
AACE International
Magnolia Hotel
Houston, TX
Contact:
www.aacei.org/mtgs/ldrconf/
MARCH 2012
15-18 2012 Western Winter
Workshop,
San Francisco Bay Area Section of
AACE International
Harrahs & Harveys Casino Resort
Lake Tahoe, NV
Contact:
aacei.sf.www.2012@gmail.com
www.aaceisf.org
JULY 2012
5-8 AACE International
Education Seminars,
AACE International
Marriott Rivercenter Hotel
San Antonio, TX
Contact: phone 1-800-858-COST
fax (304) 291-5728
info@aacei.org
www.aacei.org
8-11 AACE Internationals
56th Annual Meeting,
AACE International
Marriott Rivercenter Hotel
San Antonio, TX
Contact: phone 1-800-858-COST
fax (304) 291-5728
info@aacei.org
www.aacei.org
12-13 AACE International
Education Seminars,
AACE International
Marriott Rivercenter Hotel
San Antonio, TX
Contact: phone 1-800-858-COST
fax (304) 291-5728
info@aacei.org
www.aacei.org
AACE International,
1265 Suncrest Towne Centre Dr,
Morgantown, WV 26505-1876
USA
phone: 304-296-8444
fax: 304-291-5728
e-mail: editor@aacei.org
website: www.aacei.org
Please submit items for future
calendar listings at least 60
days in advance of desired
publication.
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