List of Standards

Number
10S-90
11R-88
13S-90
14R-90
15R-81
N/A
16R-90
Page 1 of 152
Number
17R-97
Page 2 of 152
Number
18R-97
19R-97
20R-98
21R-98
22R-01
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Number
23R-02
24R-03
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Number
25R-03
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Number
27R-03
28R-03
29R-03
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Number
30R-03
31R-03
32R-04
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Number
34R-05
35R-09
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Number
36R-08
37R-06
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Number
38R-06
39R-06
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Number
40R-08
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Number
41R-08
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Number
42R-08
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Number
43R-08
44R-08
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Number
45R-08
46R-11
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Number
47R-11
48R-06
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Number
49R-06
Page 17 of 152
Number
52R-06
Page 18 of 152
Number
53R-06
Page 19 of 152
Number
54R-07
55R-09
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Number
56R-08
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Number
57R-09
58R-10
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Number
59R-10
60R-10
Page 23 of 152
Number
61R-10
62R-11
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Number
63R-11
64R-11
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Number
65R-11
66R-11
67R-11
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Number
68R-11
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Number
69R-12
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Number
70R-12
71R-12
Page 29 of 152
Number
72R-12
73R-13
Page 30 of 152
Number
N/A
74R-13
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Number
75R-13
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Number
78R-13
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Number
79R-13
80R-13
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Number
81R-13
82R-13
83R-13
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Number
84R-13
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Number
85R-14
86R-14
Page 37 of 152
Number
N/A
87R-14
Page 38 of 152
Name
Cost Engineering Terminology
Required Skills and Knowledge of Cost Engineering
Recommended Method for Determining Building Area
Responsibility and Required Skills for a Project Planning and Scheduling Professiona
Profitability Methods
Conducting Technical and Economic Evaluations As Applied for the Process and Utility In
Page 39 of 152
Name
Cost Estimate Classification System
Page 40 of 152
Name
Cost Estimate Classification System As Applied in Engineering, Procurement, and Construction for th
Estimate Preparation Costs in the Process Industries

Project Code of Accounts
Project Code of Accounts As Applied in Engineering, Procurement, and Construction for the Proc
Direct Labor Productivity Measurement - As Applied in Construction and Major Maintenance
Page 41 of 152
Name
Identification of Activities
Developing Activity Logic
Page 42 of 152
Name
Estimating Lost Labor Productivity in Construction Claims
Page 43 of 152
Name
Schedule Classification System
Developing Location Factors by Factoring As Applied in Architecture, Engineering, Procurement, a
Forensic Schedule Analysis
Page 44 of 152
Name
Implementing Project Constructability
Reviewing, Validating, and Documenting the Estimate
Determining Activity Durations
Page 45 of 152
Name
Basis of Estimate
Development of Cost Estimate Plans As Applied for the Building and General Construction
Page 46 of 152
Name
Development of Cost Estimate Plans As Applied in Engineering, Procurement, and Construction for th
Schedule Levels of DetailAs Applied in Engineering, Procurement, and Constructio
Page 47 of 152
Name
Documenting the Schedule Basis
Project Planning As Applied in Engineering and Construction for Capital Projects
Page 48 of 152
Name
Contingency Estimating General Principles
Page 49 of 152
Name
Risk Analysis and Contingency Determination Using Range Estimating
Page 50 of 152
Name
Risk Analysis and Contingency Determination Using Parametric Estimating
Page 51 of 152
Name
Risk Analysis and Contingency Determination Using Parametric Estimating Example Models as Applied fo
Risk Analysis and Contingency Determination Using Expected Value
Page 52 of 152
Name
Scheduling Claims Protection Methods
Required Skills and Knowledge of Project Cost Estimating
Page 53 of 152
Name
Cost Estimate Classification System As Applied in the Mining and Mineral Processing Ind
Schedule Constructability Review
Page 54 of 152
Name
Identifying the Critical Path
Page 55 of 152
Name
Time Impact Analysis As Applied in Construction
Page 56 of 152
Name
Schedule Update Review As Applied In Engineering, Procurement and Constructio
Page 57 of 152
Name
Recovery SchedulingAs Applied in Engineering, Procurement, and Construction
Analyzing S-Curves
Page 58 of 152
Name
Cost Estimate Classification System As Applied for the Building and General Construction
Page 59 of 152
Name
Integrated Cost and Schedule Risk Analysis Using Monte Carlo Simulation of a CPM Mo
Escalation Estimating Principles and Methods Using Indices
Page 60 of 152
Name
Development of Factored Cost Estimates As Applied in Engineering, Procurement, and Construction for
Developing the Project Controls Plan
Page 61 of 152
Name
Schedule Design As Applied in Engineering, Procurement, and Construction
Risk Assessment: Identification and Qualitative Analysis
Page 62 of 152
Name
Risk Treatment
CPM Schedule Risk Modeling and Analysis: Special Considerations
Page 63 of 152
Name
Integrated Cost and Schedule Risk Analysis and Contingency Determination Using Expecte
Selecting Probability Distribution Functions for use in Cost and Schedule Risk Simulation
Contract Risk Allocation As Applied in Engineering, Procurement, and Constructio
Page 64 of 152
Name
Escalation Estimating Using Indices and Monte Carlo Simulation
Page 65 of 152
Name
Cost Estimate Classification System As Applied in Engineering, Procurement, and Construction for the
Page 66 of 152
Name
Principles of Schedule Contingency Management As Applied in Engineering, Procurement and
Required Skills and Knowledge of Decision and Risk Management
Page 67 of 152
Name
Developing a Project Risk Management Plan
Establishing Labor Productivity Norms
Page 68 of 152
Name
Basis of Estimate - As Applied for the Software Services Industries
Page 69 of 152
Name
Schedule and Cost Reserves within the Framework of ANSI EIA-748
Page 70 of 152
Name
Original Baseline Schedule Review - As Applied in Engineering, Procurement, and Constr
Page 71 of 152
Name
Level of Effort Planning and Execution on Earned Value Projects - Within the Framework of AN
Estimate at Completion (EAC)
Page 72 of 152
Name
Required Skills and Knowledge of Earned Value Management
Earned Value Management (EVM) Overview and Recommended Practices Consistent with AN
Organizational Breakdown Structure and Responsibility Assignment Matrix
Page 73 of 152
Name
Planning and Accounting for Adverse Weather
Page 74 of 152
Name
Use of Decision Trees in Decision Making
Variance Analysis and Reporting
Page 75 of 152
Name
Cost Estimate Classification System - As Applied for the Petroleum Exploration and Productio
Page 76 of 152
Revision Date
2015/09/22
2013/06/18
1990/11/01
2006/09/19
2008/07/16
1991/04/01
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Revision Date
2011/11/29
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Revision Date
2011/11/29
1998/06/19
2003/01/27
2003/01/27
2004/04/26
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Revision Date
2007/05/03
2004/03/26
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Revision Date
2004/04/13
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Revision Date
2010/11/12
2006/10/19
2011/04/25
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Revision Date
2009/05/20
2009/05/12
2012/01/14
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Revision Date
2014/05/02
2015/02/14
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Revision Date
2015/02/14
2010/03/20
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Revision Date
2009/06/18
2011/12/08
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Revision Date
2008/06/25
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Revision Date
2008/10/27
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Revision Date
2011/05/26
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Revision Date
2011/12/28
2012/12/04
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Revision Date
2009/06/01
2013/01/16
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Revision Date
2012/07/06
2009/08/28
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Revision Date
2010/03/05
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Revision Date
2006/10/19
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Revision Date
2008/08/14
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Revision Date
2010/11/19
2010/11/10
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Revision Date
2012/12/05
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Revision Date
2011/06/18
2011/05/25
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Revision Date
2011/06/18
2011/12/21
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Revision Date
2013/10/11
2012/05/11
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Revision Date
2012/08/23
2012/05/02
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Revision Date
2012/05/02
2012/08/24
2014/01/14
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Revision Date
2012/05/02
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Revision Date
2013/01/25
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Revision Date
2013/10/16
2013/06/17
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Revision Date
2013/04/25
2014/01/14
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Revision Date
2014/04/02
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Revision Date
2014/10/24
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Revision Date
2014/10/23
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Revision Date
2014/10/24
2014/11/11
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Revision Date
2014/05/01
2014/11/04
2014/05/01
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Revision Date
2015/09/15
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Revision Date
2014/11/14
2015/10/19
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Revision Date
2015/03/10
Page 114 of 152
Description
This document provides terms commonly used in all facets of cost engineering and in total cost manag
otherwise noted, all terms contained in this document have been developed by various AACE Internatio
subcommittees, special interest groups, or project teams. All terms have been subject to a thorough review
by approval by the AACE International Technical Board.
This recommended practice has the following purposes: 1.) define what core skills and knowledge of cos
person is required to have in order to be considered a professional practitioner, and in doing so, 2.) establis
core subjects for AACE International education and certification programs. _x000D_
_x000D_
It is also hoped that enterprises will find this useful as a reference or guide for developing their own comp
Knowledge is an understanding gained through experience or study, and skills are abilities that transform kn
Core subjects are those whose usage is occasional to frequent and are considered by AACE International as
professional practitioners of cost engineering to know and be able to use. _x000D_
_x000D_
This recommended practice lists these core subjects and provides general performance statements (i.e., be
perform, etc.) to represent the level of proficiency expected in each subject area. These statements are r
guiding examples only.
The building area of a major building structure is the sum of the areas of the several floors of the build
basements, mezzanines, intermediate floored tiers, and all penthouses, measured from outside face to outs
walls or from the center line of common walls separating buildings. This criteria can be applied to any bu
This recommended practice is intended to serve the following purposes: a) Describe the roles and respo
Planning and Scheduling Professional (PSP) during the various phases of project planning and schedule
management and control; b) Define the core skills and knowledge a Planning and Scheduling Professional i
in order to be considered a professional practitioner, and in doing so; c) Establish the core subjects for AACE
education and certification programs.
Scope:_x000D_
This Recommended Practice (RP) of AACE International defines specific practices for determining the p
investments. The methods offered are general, since not all profitability techniques can or should be includ
broadest sense, profitability is a measure of value added. Increased profitability thus reflects greater eco
society. There is no economic progress without profitability._x000D_
_x000D_
Purpose:_x000D_
This RP is intended to provide broad guidelines, not standards, for profitability methods that most seasone
most industries would consider to be reliable and would generally endorse. Profitability methods with
applicability, e.g., the revenue requirement technique used by electrical utilities or the benefit-cost ratio u
sector, are not included in this RP._x000D_
_x000D_
Background:_x000D_
AACE
International
has had
a long-standing
interest inasset
developing
standards
recommended
practices. Td
Profitability
methods
are critical
tools for assessing
performance
andand
making
effective investment
Practice described
herein
is for executing
techno-economic
of process
oriented
engineering
pro
processes
are central
to portfolio
and program
managementevaluations
in that selecting
the right
capital
or maintenan
all, cost engineers areas
involved
in process-oriented
techno-economic
studies
in the
course
of their
work. So
important
to enterprise success
as effectively
executing
any
particular
project.
estimating only plant investment; others are involved in specific areas of cost estimating or only in financ
others, in overall economics. Adherence to a consistent set of process evaluation guidelines would impro
these studies and would lower the cost to prepare them (improve productivity)._x000D_
_x000D_
There are several ways of conducting technical and economic evaluations in the process industries and w
there are many variations. This recommended practice was developed to reduce the variations to a man
Page 115 of 152
Description
As a recommended practice of AACE International, the Cost Estimate Classification System provides guide
the general principles of estimate classification to asset project cost estimates. Asset project cost estimate
estimates for capital investment, and exclude operating and life-cycle evaluations. The Cost Estimate Clas
maps the phases and stages of asset cost estimating together with a generic maturity and quality matrix th
across a wide variety of industries._x000D_
_x000D_
This guideline and its addenda have been developed in a way that:_x000D_
provides common understanding of the concepts involved with classifying project cost estimates, regardl
enterprise or industry the estimates relate to;_x000D_
fully defines and correlates the major characteristics used in classifying cost estimates so that ente
unambiguously determine how their practices compare to the guidelines;_x000D_
uses the maturity level of project definition deliverables as the primary characteristic to categorize es
and_x000D_
reflects generally-accepted practices in the cost engineering profession._x000D_
_x000D_
An intent of the guideline is to improve communication among all of the stakeholders involved with preparin
using project cost estimates. The various parties that use project cost estimates often misinterpret the quali
information available to prepare cost estimates, the various methods employed during the estimating proc
level expected from estimates, and the level of risk associated with estimates._x000D_
_x000D_
This classification guideline is intended to help those involved with project estimates to avoid misinterpreta
classes of cost estimates and to avoid their misapplication and misrepresentation. Improving communicatio
classifications reduces business costs and project cycle times by avoiding inappropriate business and fina
actions, delays, or disputes caused by misunderstandings of cost estimates and what they are expected to
_x000D_
This document is intended to provide a guideline, not a standard. It is understood that each enterprise m
project and estimating processes and terminology, and may classify estimates in particular ways. This gui
generic and generally-acceptable classification system that can be used as a basis to compare against. If
organization has not yet formally documented its own estimate classification scheme, then this guideline
acceptable starting point.
Page 116 of 152
Description
the general principles of estimate classification to project cost estimates (i.e., cost estimates that are us
approve, and/or fund projects). The Cost Estimate Classification System maps the phases and stages of proj
together with a generic project scope definition maturity and quality matrix, which can be applied across
process industries._x000D_
_x000D_
This addendum to the generic recommended practice (17R-97) provides guidelines for applying the princi
classification specifically to project estimates for engineering, procurement, and construction (EPC) work
industries. This addendum supplements the generic recommended practice by providing:_x00
a section that further defines classification concepts as they apply to the process industries; and
a chart that maps the extent and maturity of estimate input information (project definition deliverables) a
estimate._x000D_
_x000D_
As with the generic recommended practice, an intent of this addendum is to improve communications a
stakeholders involved with preparing, evaluating, and using project cost estimates specifically for th
industries._x000D_
_x000D_
The overall purpose of this recommended practice is to provide the process industry definition deliverable
which is not provided in 17R-97. It also provides an approximate representation of the relationship of specifi
and design deliverable maturity to the estimate accuracy and methodology used to produce the cost estim
accuracy range is driven by many other variables and risks, so the maturity and quality of the scope definiti
time of the estimate is not the sole determinate of accuracy; risk analysis is required for that purpos
_x000D_
This guideline is an industry-specific addendum to AACE Internationals generic guideline for project cod
This
document
is
intended
to
provide
a
guideline,
not
a
standard.
is understood
that
eachcost
enterprise
m
This
recommended
practice
of
AACE
International
describes
direct
method
to
measure,
and
optim
This Recommended
Practice
presentsThis
benchmark
information
theItcosts
to prepare
project
estimate
(Recommended
Practice
No. 20R-98).
document
describesaon
recommended
practices
formonitor
codes of
accoun
project
and
estimating
processes
and
terminology,
and
may
classify
estimates
in
particular
ways.
This
gui
and
maintenance
project
labor
productivity.
The
method
described
is
statistical
sampling
of
the
work
pro
procurement,
andprocurement,
construction)
inbasic
the
process
industries.
Itofincludes
and
quantitative
lessons
th
to This
engineering,
and
construction
(EPC)
projects
in the qualitative
process
industries.
Process
industrie
guideline
establishes
the
principles
of codes
accounts
(COA) that
for
projects
in any
It
generic
and
generally
acceptable
classification
system
foractivities
process
industries
can
be used
asindustry.
a basisan
to
sampling.
The
work
process
is
made
up of
steps
and
that
take
input
resources,
add
value,
and
estimators
can
use
to
benchmark
their
cost
estimating
experiences
against.
The
data
on
preparation
c
facilities
whose
main
function
is
to
perform
a
process.
This
includes
chemical,
petrochemical,
hydrocarbon
characteristics
including
usage,
content,
structure
and format
and
describes
benefits
ofown
establishing
stand
This
addendum
should
allow
each
user
to
better
assess,
define,
and
communicate
their
processes
and
completed
project. aUnderstanding
themodel
capability
of
the
or management
system,
to produce
effici
develop
parametric
cost
that can
beprocess,
used toassembly,
estimate
the
cost
of preparing
estimates._x
pharmaceutical,
power
generation,
thermal,
metallurgical,
fabrication,
and
other
processing
such
as activity-based
costing
and
work
breakdown
structures
as
they
relate
to
COAs
are
addressed.
The
i
light of generally-accepted
costtoengineering
practice.about the perform
for project planning
and
control. Sampling
is a
way
information
_x000D_
characteristic
of these
industries,
relates
tocost-effective
codes
of accounts,
isprovide
that
process
or manufacturing
equipm
defining a WBS
and how
it shouldasbeit structured
are outside
the scope
of this
guideline.
COAs are applicabl
process,
i.e., supports
about
how
theInternationals
work
done, Recommended
and how todifferentiates
do it
better. 18R-97
Work
conve
This
information
AACE
Practice
entitled complements
Cost
Estimate
Classi
component
the is
facility.
Equipment
thesesampling
projects
from
commercial
co
the primary
asset
lifephysical
cycle, however,
thisofguideline
specifically
addresses
the project
execution
phases
of asset
de
management
methodology,
which
typically
tracks
what
work
is
done._x000D_
as
Applied
in
Engineering,
Procurement,
and
Construction
for
the
Process
Industries.
The
effort
or
cost
to
infrastructure where the core component
is a structure,
software
development projects where the co
through
to start offrom
normal
operation._x000D_
_x000D_
estimate is a secondary
characteristic
of
a
cost
estimate
classification._x000D_
programming code,
and so on._x000D_
_x000D_
Sampling provides project managers, supervisors, and the
workforce with objective feedback re: the effici
_x000D_
A project code of accounts is a coded index of project cost,
resource and activity categories. A complete
process
(not
ofapplicable
individual
workers,
which
is part
ofisthe
foremans
job) guideline
and the
ability
to respond
quickly
to
A primary
value
of this
Recommended
improved
understanding
of specifically
the
variables
and
trends
con
COAs
are
to
all of
phases
of Practice
the
asset
life
cycle,
but
this
addresses
the
EP
definitions
of the
content
each account
code
and
is methodically
structured
to facilitate
finding,
sorti
it provides
a
measure
of managements
ability
to effectively
plan,data
coordinate,
and
control
project
executio
preparation
costs.
The
amount
and
quality
of
published
reference
is
limited,
therefore,
the
value
of
the
modification,
or
termination
of
a
process
facility.
This
guideline
does
not
apply
to
code
of
accounts
to
summarizing, defining and otherwise managing information the code is linked to. The information is used su
to
sampling
data
allows
for
removal
or reduction
of breakdown
roadblocks,
optimizing
the construction
work pis
model
presented
here such
as
a prompt
benchmark
for defining
measuring
estimating
performance
iscost
limited.
Theother
cost project
model
operations
of process
facilities.
work
structure
(WBS),
and
management
practices
as costProperly
estimating,
costaaccounting,
cost
reporting,
control,
planning
and
redesign and innovation.
Streamlining
the work
that performing
productive
work is made m
point
forensures
further
development.
deciding
how they
should
be process
structured
arecharge
outside
the scope
of this
document._x000D_
names used for COAs
are coding
matrices,
coding
structures,
accounts,
asset
or material
classificati
the workforce, ensuring that, at all times, crafts and technicians
have
all
the
necessary
tools,
materials,
_x000D_breakdown structures and activity
categories, cost elements, work breakdown structures, resource
breakd
information,
supervisory
support
and
personal
needs
readily
available.
Work
sampling,
properly
A project code of accounts is a coded index of project cost, resource, and activity categories. A applied,
complete
productivity
from an of
optimal
work process,
i.e.,isfrom
managingstructured
smarter, to
notfacilitate
from people
working
definitionsresults
of the content
each account
code and
methodically
finding,
sorti
_x000D_
summarizing, defining and otherwise managing the project information that is linked to the code. The infor
Construction
labor
productivity
is a measure
of cost
workestimating,
process efficiency.
It can be
defined
as the ratio
of
support
total cost
management
practices
such as
cost reporting,
cost
accounting,
planning
produces to the value invested
in
labor.
Productivity
increases
as
needed
labor
resources
are
minimized
an
Refer to 20R-98 for a more complete description of the principles of COAs.
eliminated from the work process. This definition and the practice covered here treats productivity as a d
measure to be optimized.
Page 117 of 152
Description
This recommended practice for identification of activities is intended to provide a guideline, not establish
guideline covers a key step in the schedule planning process of the total cost management (TCM) schedu
development process._x000D_
_x000D_
This recommended practice is for use by the project team members involved in the schedule planning proc
type and in any industry. Many individuals contribute in the identification of activities, and having an expe
coordinate the process improves final quality and adds value to the planning process._x000
_x000D_
As a recommended practice of AACE International, identification of activities in schedule planning and deve
guidelines for the conversion of scope definition to specific activities and tasks required to complete a pro
Identification of activities is a key planning step that takes place early in the schedule planning and devel
which also includes estimating durations, determining and defining resources, and identifying exter
constraints._x000D_
_x000D_
The scope definition of a program or project is generally described in various planning and technical docume
other deliverables. To begin the planning process, information in the scope documents must first be tr
manageable activities. For example, the scope may include the installation of a length of pipeline. Installing
require designing, procuring, cutting, welding, erecting, and inspection activities. This process of expandin
scope or functional definition into the detailed work required for completion is the practice of identificati
This recommended practice is intended to provide a guideline, not establish a standard. This is not a how-to
methodology._x000D_
_x000D_
As a recommended practice of AACE International, development of activity logic (also called network logic
scheduling provides guidelines for the sequencing of activities in a logical way generally before duration e
performed. Logic is generally determined before durations are considered. Logic development methods inc
diagramming, or arrow diagramming methods. Logic is the set of activities and dependency relationships be
dictates the planned sequencing of activities. A network diagram is often used to illustrate the logic
_x000D_
Planning and scheduling are not the same. Planning is determining how the work will be done, while schedu
and calculation of start and finish dates._x000D_
_x000D_
Logic enables the combination of activities to be arranged in one of the aforementioned formats so that a co
be established. Logic also enables backward passes to arrive at optimal overall schedule duration.
_x000D_
This recommended practice is for use by project team members involved in planning process, a continua
identification process. As in identification of activities, many individuals contribute to the development of ac
an experienced planner coordinate the process improves final quality, and adds value to the plannin
Page 118 of 152
Description
This Recommended Practice focuses on identification of various methods for estimating lost labor productiv
claims. Often the claim is the result of one or more change order requests that cannot be fully resolved to
and final effect on the entire project cost and schedule. Specifically, this Recommended Practice examines
of claims for cost recovery of lost productivity. Therefore, the purpose of the Recommended Practice i
_x000D_
- Identify Lost Productivity Estimating Methodologies: That is, survey as many of the various methodolog
litigation throughout North America as can be identified;_x000D_
_x000D_
- Rank Order the Methodologies: That is, based on reliability, professional acceptance, case law and con
literature, rank the identified methodologies from most to least reliable with respect to documenting estim
claim situations. While it may not be possible to state with certainty which methods are absolutely most o
can be stated that under certain sets of circumstances some methods are generally considered more relia
(CAUTION: This Recommended Practice was prepared on the basis of the authors understanding of Canad
law. It is recommended that anyone preparing a lost productivity claim seek appropriate legal advice on th
be used. This is especially true if the claim is being pursued under national law other than Canada or
States.)_x000D_
_x000D_
- Define and Discuss Each Methodology: That is, discuss the method and how it is employed. Also, when po
strong and weak points of each method;_x000D_
_x000D_
- Identify Selected Studies Applicable to Each Methodology: Herein, identify as many studies and professio
papers as possible which will help the practitioner in learning more about and/or employing a particular m
_x000D_
It needs to be noted that this Recommended Practice does not define in detail how one should properly pe
analytical methods identified herein. The Recommended Practice gives a brief description of each method o
help claimants properly identify the method. That is, different claimants may have differing nomenclatur
methodology. In this case, the brief description of each method is intended to help overcome this
Page 119 of 152
Description
This recommended practice (RP) is intended to serve as a guideline, not a standard. As a recommended p
International, the intent of the guideline is to improve the understanding and the communication among sta
with preparing, evaluating, and using project schedules. Various enterprises often misinterpret the quality
information available to prepare schedules and the various methods employed during the scheduling proces
that each enterprise may have its own project scheduling processes and terminology, and may classify sche
particular ways. This guideline provides a generic and generally acceptable classification system that can b
of comparison. If an enterprise or organization has not formally documented its own schedule classification
RP guideline can be used to provide an acceptable basis._x000D_
_x000D_
This recommended practice introduces a schedule classification system, which provides the guidelines f
general principles of schedule classification to project schedules. A schedule classification system maps the
of scheduling with a generic maturity and quality matrix that can be applied across a wide variety of indust
to be applied to any schedule in any industry, and across all stakeholders including government and aca
_x000D_
A separate recommended practice provides a guideline for describing the specific use of schedule levels to
Schedule levels provide the details necessary to recognize the characteristics of each of the schedule level
of communicating, executing (controlling and monitoring) and reporting the specific details of the project.
consider reporting requirements for each of the stakeholders and the appropriate amount of information
effective communication and decisions._x000D_
_x000D_
Location factors are a vital product
of any cost engineering
organization
industries with
This recommended
practice has service
been developed
suchsupporting
that it:_x000D_
projects.
One
thing
is
for
certainlocation
factors
will
be
challenged.
So,
not
only
is
it
important
have an
Provides common understanding of the concepts involved with classifying project schedulestoregardles
and logical method of developing location factors,
the
process
must
be
supported
with
hard
data
from
a we
enterprise or industry_x000D_
and
a
project
execution
knowledge
that
only
comes
through
experience.
This
Recommended
practice
Fully defines and correlates the major characteristics used in classifying schedules so that enterprises do
ma
process._x000D_
their practices compare
to these guidelines_x000D_
_x000D_
Uses degree of project definition as the primary
characteristic to categorize schedule classes_x
International markets
and
politics
are
constantly
changing,
and cost
those
involved with
developing location
Reflects generally accepted practices in the
engineering
profession_x000D_
constantly collect, analyze, and understand the effects created
by
these
changes.
Location
factor developm
_x000D_
a
mathematical
exercise
that
is
done
on
an
as-needed
basis,
but
should
be
a
continually
improving
proce
This classification guideline is intended to help those involved with project schedules to avoid misinterpreta
method
of
developing
location
factors
is
a
tool
for
living
that
process._x000D_
classes of schedules and to avoid their misapplication and misrepresentation. Improving communications
_x000D_
classifications reduces business costs and project cycle times
by avoiding inappropriate business and fina
This recommended
practice
provides
a
generic
method
of
developing
location and
factors
in they
support
the Totalt
actions, delays, or disputes caused by misunderstandings of schedules
what
are of
expected
(TCM) cost estimating and budgeting and database management processes for construction related proje
applies to construction projects of all types including buildings, infrastructure, utilities, process plants, and s
method provides a basis for users to tailor their own detailed process around their own needs and compu
Location factors are used during preliminary project evaluations (i.e., Class 5 or 4 estimates). They are no
used
preparing
appropriation-quality
estimates
(i.e., Class
3 orSchedule
better estimates)._x000
The purpose of
the when
AACE
International
Recommended Practice
29R-03
Forensic
Analysis is to p
_x000D_
reference of basic technical principles and guidelines for the application of critical path method (CPM) sche
A location
factor is
instantaneous
(i.e., currenthas
escalation
or currency
ov
schedule
analysis.
In an
providing
this reference,
the RP will no
foster
competent
scheduleexchange
analysis projection),
and furnish the
factor
for
translating
the
total
cost
of
the
project
cost
elements
of
a
defined
construction
project
scope
o
with the necessary technical information to categorize and evaluate the varying forensic schedule analysis
geographic
location
to
another.
This
factor
recognizes
differences
in
productivity
and
costs
for
labor,
engin
discusses certain methods of schedule delay analysis, irrespective of whether these methods have been de
commodities,
freight, duties,
engineering,
design,countries
and project
administration.
The
or unacceptable
by taxes,
courts procurement,
or government
boards in various
around
the globe._x000
scope/design differences for local conditions and codes,_x000D_
and differences in operating philosophies are no
location factor._x000D_
This RP is not intended to establish a standard of practice,
nor is it intended to be a prescriptive documen
_x000D_
exception. Therefore, a departure from the recommended
protocols should not be automatically treated
Location
factors
provide
a way
to evaluate
relative
differences
between
two geographic
locations.
They
deficiency
as long
as such
departure
is based
on acost
conscious
and sound
application
of schedule
analysis
p
to conceptual
estimates for identifying
"go/no-go"
early stage.
The
ability to produce
meaning
any other recommended
practice, the
RP shouldprojects
be usedatinan
conjunction
with
professional
judgment
and k
conceptual
stage isWhile
critical
torecommended
the efficient management
of the funds
and
This is wha
subject matter.
the
protocols contained
herein
areresources
intendedof
toowners.
aid the practitioner
factor developers
toward work
methods
thatitare
accurate,
easily managed,
allow steps.
a quick tu
competent
product
may,
in someflexible,
cases, require
additionaland
or fewer
Page 120 of 152
Description
This recommended practice for Implementing Project Constructability is intended to provide a guideline,
standard. As a recommended practice (RP) of AACE International, Implementing Project Constructability p
for developing and implementing constructability programs in all the phases of a projects life cycle
_x000D_
Constructability is the integration of construction expertise into all phases of the project to benefit cost, sch
overall project objectives. The successful use of construction knowledge and expertise increases the prob
success. Constructability reviews (CRs) should be conducted at key points in the project life cycle: in the pla
in the design phase, prior to the procurement phase and again prior to the mobilization phase for construc
hold true to the designers intent, and the design concept is easiest molded to good constructability ear
phase._x000D_
_x000D_
Constructability, as addressed in this RP, is applicable to projects in any industry in any location (e.g., arch
plant, transportation, utilities, offshore, etc.) that include construction work of any scope. In total cost man
constructability is one of many value improving practices (VIPs) such as manufacturability analysis; reliabili
maintainability (RAM) analysis; and so on. Constructability is also useful as a risk management practice th
mitigation. However, these other VIPs and risk management practices are not directly included in this
_x000D_
AACE is not the sole or even primary steward of recommended constructability practice; there are sev
organizations included in the reference section. However, constructability is a skill and knowledge area of
because, as a VIP, constructability practices require the assessment of cost, schedule, risks and other proj
which AACE is the leading organization. This RP highlights the role of cost engineering in the practic
_x000D_
This RP will discuss how to implement a constructability program in order to maximize the positive impact
also provides project examples illustrating the success of those properly implemented efforts. Integrating co
project plans can result in better safety, lower costs, better productivity, earlier completion and start-ups fo
projects.
Scope: _x000D_
This Recommended Practice (RP) of AACE International defines the basic elements of and provides broad g
cost estimate review, validation and documentation process. Estimate review and documentation is a s
estimating and budgeting process of the Total Cost Management (TCM) Framework. This RP is applicable to
for any industry and is intended for those responsible for and/or participating in an estimate review. Expert
required to understand or use this RP._x000D_
_x000D_
Purpose:_x000D_
This RP is intended to provide guidelines (i.e., not a standard) for reviewing, validating and documenting
practitioners would consider these guidelines as good and reliable practices. It is recommended to consi
guidelines where applicable._x000D_
_x000D_
Background:_x000D_
Cost estimates typically represent a complex compilation and analysis of input from many project stakehold
quality of an estimate, budget or bid, a review process is required to ensure that the estimate meets projec
requirements. The project plan typically requires that the cost estimate:_x000D_
This recommended practice (RP)
for determining
durations
is intended
to risks_x000D_
provide a guideline and a
Reflect
the project activity
strategy,
objectives,
scope and
establish astandard.
As
a
recommended
practice
of
AACE
International,
it
provides
guidelines
for the
proj
Be suitable for a given purpose (e.g., cost analysis, decision making, control,
bidding,
etc.)_x0
determine schedule activity
durations
and
understand
the
limitations
and
assumptions
involved
in
such
Address the stakeholders financial and performance requirements_x000D_ det
of
the
total
cost
management
(TCM)
project
planning,the
scheduling
forecasting,
and change
management
pr
Ensure that all parties agree
on and
understand
estimates
basis, content
and outcome,
including
_x000D_
probabilistic characteristics (e.g., range, cost distribution, etc.).
This recommended practice provides information about determining the original durations for activities fo
project schedule and general considerations related to the establishment of remaining durations while upd
schedule. Specific considerations regarding the topic of establishing the activities remaining durations
performance assessment are not within the scope of this RP. Therefore the information presented here gen
determining original activity durations; and general considerations for the establishment of remaining dura
only as appropriate._x000D_
_x000D_
Pagefor
121
of 152
This recommended practice offers methods
determining
original activity durations through the analysis o
with anticipated future performance data. It also incorporates an iterative effect-analysis of constraints on
Description
AACE Internationals Total Cost Management (TCM) Framework identifies a basis of estimate (BOE) docum
component of a cost estimate. As a recommended practice (RP) of AACE International, the template outline
sections provides guidelines for the structure and content of a cost basis of estimate._x000
_x000D_
In the TCM Framework, the BOE is characterized as the one deliverable that defines the scope of the projec
becomes the basis for change management. When prepared correctly, any person with capital project expe
BOE to understand and assess the estimate, independent of any other supporting documentation. A well-wr
those goals by clearly and concisely stating the purpose of the estimate being prepared (i.e. cost study,
funding, etc.), the project scope, pricing basis, allowances, assumptions, exclusions, cost risks and opport
deviations from standard practices. In addition the BOE is a documented record of pertinent communica
occurred and agreements that have been made between the estimator and other project stakeholde
_x000D_
A well prepared basis of estimate will:_x000D_
Document the overall project scope._x000D_
Communicate the estimators knowledge of the project by demonstrating an understanding of scope an
relates to cost._x000D_
Alert the project team to potential cost risks and opportunities._x000D_
Provide a record of key communications made during estimate preparation._x000D_
Provide a record of all documents used to prepare the estimate._x000D_
Act as a source of support during dispute resolutions._x000D_
Establish the initial baseline for scope, quantities and cost for use in cost trending throughout the pro
Provide the historical relationships between estimates throughout the project lifecycle._x00
Facilitate the review and validation of the cost estimate._x000D_
_x000D_
This RP is intended to be a guideline, not a standard. It is understood that not all organizations that prepare
the same processes and practices, and therefore, may opt to use this information either in part or in
This recommended practice (RP) is a guideline for the development of cost estimate plans for the buildin
construction industry. With reference to the Total Cost Management (TCM) Framework, this document addre
develop effective estimate plans._x000D_
_x000D_
This RP is intended to provide a guideline (i.e., not a standard) for establishing and communicating how to p
approve an estimate plan._x000D_
_x000D_
The basic principles of cost estimate plans can be applied to various contracting strategies, project executio
asset owner configurations in the building and general construction industries. Some key principles a
Preparation of an estimate plan helps to ensure successful estimate completion in an effective and timely
Engaging key stakeholders in estimate planning prior to starting the estimate improves the likelihood of
objectives._x000D_
The estimate plan defines what information is required from who and when._x000D_
An approved estimate plan provides a duly authorized basis to proceed with the estimating effort, clarify
and responsibilities.
Page 122 of 152
Description
This recommended practice (RP) of AACE International (AACE) is a guideline for development of cost estim
plans for engineering, procurement and construction (EPC) projects in the process industries. _x
_x000D_
The purpose of a cost estimate preparation plan (herein referred to as estimate plan) is to establish and c
the preparation, development, review and approval of the estimate will be completed._x000
_x000D_
Background: _x000D_
AACE Internationals Total Cost Management (TCM) Framework section 7.3.2.1 Plan for Cost Estimating
highlights the need to develop estimate plans. This RP delineates industry specific practices for developme
plan as they are applied to EPC projects in the process industries. _x000D_
_x000D_
Cost estimating in the hydrocarbon processing industries (e.g.; chemical, refining, petroleum production fa
evolved to a relatively advanced state over more than four decades of application. These industries have
common practices and identified industry-specific best practices through benchmarking and knowledge-sha
reflected in this document are a result of compiling notes made by industry practitioners, lessons learne
available documents._x000D_
_x000D_
Scope: _x000D_
With reference to the TCM Framework, this document addresses the steps before and after the Plan for
Budgeting step to the extent necessary for an effective estimate plan._x000D_
_x000D_
This document is primarily focused on estimates prepared for project sanction purposes of land-based fac
project sanction is based on a Class 3 estimate. Estimate plans for other classes of estimates may be ad
document._x000D_
_x000D_
The basic principles are applicable to all contracting strategies and asset owner (herein referred to as owne
For example, contracting strategies may be in the form of reimbursable engineering with fixed price pro
construction and/or EPC alliances, etc. Owner configurations may include self-perform, partnerships with a
company or consortiums responsible for managing the project/program and so on. Some key principles
_x000D_
Preparation of an estimate plan helps to ensure successful estimate completion in an effective and timely
Engaging key stakeholders in the estimate planning process prior to the start of the estimate develop
improves the likelihood of meeting estimate objectives._x000D_
The estimate plan defines what information is required from who and when._x000D_
An approved estimate plan provides a duly authorized basis to proceed with the estimating effort, clarifies
This recommended practice (RP) is intended to serve as a guideline, not a standard for owners and contrac
common frame of reference and understanding when describing the level of detail for any construction proj
RP identifies four schedule formats based on level of detail, and provides descriptions of schedule levels an
of these schedules by project participants._x000D_
_x000D_
This recommended practice provides descriptions of the schedule levels methods with the intent to i
understanding and communication among project participants and stakeholders involved with preparing a
schedules. This recommended practice (RP) describes the schedule level methods that are prevalent in t
industry today for reporting and communicating project schedule plans, results and forecast or to-go da
stakeholders. This RP excludes turnaround projects, and does not necessarily apply to line of balance or
applications.
Page 123 of 152
Description
Scope: _x000D_
This recommended practice (RP) provides an outline and describes a format for the various elements of info
be included in the schedule basis document. This RP describes the important elements of schedule informa
included to document the basis and assumptions of this project management tool. This recommended pra
checklist in the appendix that can be used to confirm that all elements of the basis document have been co
_x000D_
The schedule basis is a document that defines the basis for the development of the project schedule and a
team and stakeholders in identifying any key elements, issues and special considerations (assumptions, e
opportunities, etc.). The project schedule represents the complete logical time-phased representation of the
schedule basis document may accompany the submittal of the project baseline schedule._x00
_x000D_
The schedule basis further substantiates the confidence and degree of completeness of the project sche
support change management, reconciliation, and analysis. This document also doubles as a tool for assisti
who are transitioning into the project and may be used in claims situations to illustrate a change of sc
_x000D_
Purpose: _x000D_
This AACE International recommended practice is intended to provide a guideline, not to establish a standar
the schedule basis for the planning of projects. This recommended practice is written and intended prim
construction projects by the project team members and stakeholders involved in the planning and schedul
work activities. These RP guidelines may be applicable to many other types of projects. The focus of this
practice is on documenting the necessary elements of the schedule basis._x000D_
_x000D_
Many project individuals and groups contribute to the planning and development of the project schedule. By
schedule basis, the project team captures the coordinated project schedule development process, which is
for most construction projects. This improves the final quality and adds value to the project baseline schedu
the time management navigation tool to guide the project team toward successful project completion. The s
is an important document used to identify changes during the schedule change management proces
_x000D_
Background: _x000D_
The requirement to document the basis of the schedule has been an established procedure for several year
corporations, and some federal agencies[4]. This recommended practice describes the important eleme
information that may be included to document the basis and assumptions of this project managem
This recommended practice (RP) to project planning provides guidelines developed primarily for enginee
construction projects._x000D_
_x000D_
AACE International Recommended Practices are intended to provide guidelines, not to establish standards. T
practice is intended to be a guide for the many project team members involved in the planning and schedu
process and can be adapted for any type of project or program where planning is required._x0
_x000D_
This recommended practice is intended to focus on the elements of project planning: who, what, where, whe
focuses on the actions required by members of the project team in order to translate that planning effort in
plan that will serve as a management navigation tool to guide the project team to successful project comp
focus on the actions required by the engineering and construction project team AFTER the development
business requirements, business case, alternatives and assumptions.
Page 124 of 152
Description
Scope: _x000D_
This Recommended Practice (RP) of AACE International defines the expectations, requirements, and gene
practice for estimating contingency, reserves and similar risk funds (as defined in RP 10S-90) and time allo
cost and schedule as part of the overall risk management process (as defined in TCM Framework Section 7.6
a categorization framework and provides a foundation for, but does not define specific contingency estima
will be covered by other RPs._x000D_
_x000D_
This RP does not address the general risk management quantification steps as might be used for screenin
in terms of their probability or impact. While the quantification methods of contingency estimating may be
used for screening, the application often differs._x000D_
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines (i.e., not a standard) for contingency estimating that most prac
consider to be good practices that can be relied on and that they would recommend be considered for use
There is a broad range of contingency estimating methodologies; this RP will help guide practitioners in
selecting appropriate methods for their situation._x000D_
_x000D_
Background: _x000D_
This RP is new. It is based on discussions of the AACE Decision and Risk Management subcommittee. There
to quantify risks or to estimate contingency; each method has its advocates. However, there is general ag
recommended practice should be in accordance with first principles of decision and risk management as
Page 125 of 152
Description
Scope: _x000D_
This Recommended Practice (RP) of AACE International describes the process known as range estimating,
determine the probability of a cost overrun (or profit underrun) for any level of estimate and determine
contingency needed in the estimate to achieve any desired level of confidence. The process uses range est
Carlo analysis techniques (as defined in RP 10S-90). The RP provides the necessary guidelines for properl
estimating and Monte Carlo analysis to determine probabilities and contingency in a reliable manner using a
commercially available risk analysis software packages._x000D_
_x000D_
The RP does not recommend any particular software. Rather it describes the factors that the analyst must co
risk analysis software for probability and contingency determination._x000D_
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines (i.e., not a standard) for risk analysis using range estimating that
would consider to be a good practice that can be relied on and that they would recommend be considere
applicable._x000D_
_x000D_
This RP is also intended to improve communication as to what the practice called range estimating is. Ma
found in industry that are being called this are not in accordance with this RP. Practitioners should always m
someone uses the term range estimating, that they are talking about the same practice recommended
_x000D_
Background: _x000D_
This RP is new. It is based upon the successful efforts of many companies to evaluate project risk and cont
range estimating techniques originally developed by Michael W. Curran[1,2,3]. Users should be aware tha
outlined in this RP must be rigorously followed in order to achieve the desired results. Failure to follo
recommendations will likely lead to significant misstatements of risk and opportunities and of the amou
contingency. In the great majority of cases, contingency and bottom line uncertainty are understated w
recommendations are not followed._x000D_
_x000D_
It is AACEs recommended practice that whenever the term risk is used, that the terms meaning be clea
purposes at hand. In range estimating practice as described in this RP, risk means "an undesirable potentia
its probability of occurrence", i.e. "downside uncertainty (a.k.a. Threats)." Opportunity, on the other hand
potential outcome and/or its probability of occurrence", i.e, "upside uncertainty." The range estimating proce
quantifies the impact of uncertainty, i.e. "risks + opportunities".
Page 126 of 152
Description
Scope: _x000D_
This recommended practice (RP) of AACE International (AACE) defines general practices and consideration
and estimating cost and schedule contingency using parametric methods. Parametric methods are common
estimating cost based on design parameters (e.g., capacity, weight, etc.) or time duration based on costs;
method is used to estimate contingency based on risk parameters (e.g. level of scope definition, process c
This RP includes practices for developing the parametric methods and models (generally empirically-based
practice 43R-08 provides example process industry parametric models (including software)._x0
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines (i.e., not a standard) for contingency estimating that most prac
consider to be good practices that can be relied on and that they would recommend be considered for use
There is a range of useful contingency estimating methodologies; this RP will help guide practitioners in
selecting appropriate quantification methods for their situation. This RP does not address management of c
is determined._x000D_
_x000D_
While this RP is relatively short, it incorporates a lot of information by reference and it addresses a compl
empirically based methodology. It is highly recommended that the reader understands the research behin
avoid significant misunderstanding of risks and misstatements of contingency._x000D_
_x000D_
Background: _x000D_
This RP is based on over 40 years of research, development, and practice. The development and use of
analysis and contingency estimating methods evolved in parallel with industrys recognition that poor proje
was often the greatest project cost and schedule risk driver. This recognition led to the development of
development processes (e.g., phase-gate processes) and scope definition maturity matrices such as those i
recommended practice for cost estimate and schedule classification._x000D_
_x000D_
Before the above were accepted as best practices, experts first had to prove their value to project outcome
studying actual projects and developing empirically-based p9rametric models that showed how poor scope
in greater cost growth and wider accuracy ranges. A paper by Hollmann surveys these parametric develop
costs and highlights the pioneering work of the late John Hackney, followed by Edward Merrow, et al. at th
and Steven Trost, et al. for the Construction Industry Institute (CII). A paper by Baccarini also provides an ex
these methods. Work by Myers, et al. at RAND and Lee et al. at CII extent the research to schedule, Thes
sources referenced in this RP are recommended reading for parametric method practitioners._x
_x000D_
It is AACEs recommended practice that whenever the term risk is used, that the terms meaning be clea
purposes at hand. The method in this RP quantifies the impact of uncertainty, i.e. "risks + opport
Page 127 of 152
Description
This recommended practice (RP) is an addendum to the RP 42R-08 titled Risk Analysis and Contingency De
Parametric Estimating. It provides three working (Microsoft Excel) examples of established, empirically
industry models of the type covered by the base RP; two for cost and one for construction schedule. The ex
intended as educational and developmental resources; prior to their use for actual risk analysis and contin
users must study the reference source documentation and calibrate and validate the models agains
experience._x000D_
_x000D_
This RP summarizes three landmark empirically-based models; the Hackney model, first presented in Joh
text Control and Management of Capital Projects (later expanded on in 1992, and now an AACE publication
and the later two RAND models. The RAND cost model is from 1981 research by Edward Merrow et al. for
was a consultant. The RAND construction schedule model is from 1986 research by Christopher Myers et a
1981 cost research. These models posit plausible causal relationships between cost growth (i.e., continge
schedule slip and various risk systemic drivers such as the levels of development of process and project sco
the level of process technology. They present similar empirical and quantitative analysis of the reasons
estimates of capital costs and schedule duration and provide tools to improve assessment of the commer
projects at early stages of scope development and/or using advancing technologies. Prior to these models
the causes of cost and schedule growth for process plants provided little consensus about the relative cont
risk factors. Therefore, the authors of the source documents measured the factors and statistically assess
influence on cost and schedule growth for process plant projects undertaken in North America. The results o
significant impact on the practice of cost engineering and the evolution of project management phase
development systems (i.e., these studies are a basis of AACEs RP on classification of cost estimates; RP 1
_x000D_
While this document attempts to summarize the basis of the models, it is highly recommended that users
documents before using the tools as a basis for their own study or development. Instructions for using the
are included in worksheets.
Scope: _x000D_
This recommended practice (RP) of AACE International (AACE) defines general practices and consideration
and estimating cost contingency using expected value methods. This RP applies specifically to using the
method for contingency estimating in the risk management control step (i.e., after the risk mitigation s
earlier risk assessment step where it is used in a somewhat different manner for risk screening. This R
estimating cost contingency; RP 65R-11, Integrated Cost and Schedule Risk Analysis and Contingency Det
Expected Value is an extension of this RP covering integrated cost and schedule risk analysis and contingen
using expected value._x000D_
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not standards, for contingency estimating that most practitioners
be good practices that can be relied on and that they would recommend be considered for use where appl
range of useful contingency estimating methodologies; this RP will help guide practitioners in developin
appropriate methods for their situation. While integrated cost and schedule methods are generally recomm
11, Integrated Cost and Schedule Risk Analysis and Contingency Determination Using Expected Value or 5
Cost and Schedule Risk Analysis Using Monte-Carlo Simulation of a CPM Model), this RP is limited to es
contingency for those situations where a different method will be applied for schedule contingency dete
example, the schedule aspects of CPM-based methods as in 57R-09).
Page 128 of 152
Description
This recommended practice (RP) is intended to serve as a guideline, not establish a standard for schedule
The RP is intended to provide the scheduling practitioner with an overview of topics related to schedule del
various schedule practices and procedures that should be considered when developing and managing the
This RP will explain items to consider when creating and maintaining a critical path method (CPM) schedu
prepared for potential delay claims. This RP begins by describing schedule delay terminology and outlining
and required actions related to schedule delays. The sections following are related to some of the plannin
recommended when developing a project schedule, plus good practices related to the management and
schedule throughout the project.
International, the intent of the guideline is to define the required skills and knowledge to perform project c
serves as the foundation of the skills and knowledge of an AACE Certified Estimating Professional (CE
_x000D_
Project cost estimating requires knowledge of all elements of cost from project conception to completion. Th
material and labor costs, indirect costs, general administration costs, profit, finance cost, owners costs and
may also include operations and maintenance costs for selection of project alternatives._x00
_x000D_
Purpose:_x000D_
The RP highlights the necessary skills and knowledge of a cost estimator from a high level viewpoint.
competencies for a project cost estimator. Detailed skills, knowledge and methodology, are excluded from t
practice. These skills and knowledge are applicable to the cost estimating profession across all industrie
projects._x000D_
_x000D_
This RP is aligned with RP 11R-88, Required Skills and Knowledge of a Cost Engineer and the Total Cost
Framework.
Page 129 of 152
Description
As a recommended practice (RP) of AACE International, the Cost Estimate Classification System provides
applying the general principles of estimate classification to project cost estimates (i.e., cost estimates th
evaluate, approve, and/or fund projects). The Cost Estimate Classification System maps the phases and sta
estimating together with a generic project scope definition maturity and quality matrix, which can be appl
variety of process industries._x000D_
_x000D_
This addendum to the generic recommended practice provides guidelines for applying the principles of esti
specifically to project estimates in the mining and mineral processing industries, excluding upstream oil and
addendum supplements the generic recommended practice (17R-97) by providing:_x000D
a section that further defines classification concepts as they apply to the mining industries_x0
a section on the geopolitical nature and investment regulation of mining projects that impact on the estim
its basis definition deliverables_x000D_
estimate._x000D_
_x000D_
As with the generic RP, the intent of this addendum is to improve communications among all of the stakeho
preparing, evaluating, and using project cost estimates, specifically for the mining and mineral processing i
_x000D_
The overall purpose of this recommended practice is to provide the mining and mineral processing indu
deliverable maturity matrix which is not provided in 17R-97. It also provides an approximate representation
of specific design input data and design deliverable maturity to the estimate accuracy and methodology us
cost estimate. The estimate accuracy range is driven by many other variables and risks, so the maturity a
scope definition available at the time of the estimate is not the sole determinate of accuracy; risk analysis i
purpose._x000D_
_x000D_
It is understood that each enterprise may have its own project and estimating processes and terminology,
estimates in particular ways. This guideline provides a generic and generally acceptable classification syst
industries that can be used as a basis to compare against. This addendum should allow each user to better
communicate their own processes and standards in the light of generallyaccepted cost engineering pra
_x000D_
As a final note regarding purpose, users must be aware of the industrys well documented history of challen
of feasibility estimates. An intent of this RP is to help improve upon this past performance
This recommended practice (RP) is intended to serve as a guideline, not establish a standard for schedule
reviews. This recommended practice describes the schedule constructability review (SCR) process and
recommended planning that should be considered when developing a construction project execution-phas
recommended practice includes a suggested review process for the construction project schedule. This RP
stand alone document however it can be used as a companion guideline with the AACE Recommended P
Implementing Project Constructability.
Page 130 of 152
Description
establish a standard. As a recommended practice of AACE International it provides guidelines for the projec
reviewing a network schedule to be able to determine the critical path and to understand the limitations a
involved in a critical path assessment. Such a determination is a part of the total cost management (TCM)
scheduling forecasting, and change management processes._x000D_
_x000D_
Overview:_x000D_
This RP focuses on the types of prospective analyses performed in real-time while the project is underway
and the limitations of each in identifying the critical path of network schedules. The identification of the c
understanding what calculations and settings went into making that identification is a critical first-step i
analysis process. Other recommended practices discuss analysis of schedule trends and the issues involved
intended to modify the critical path._x000D_
_x000D_
The work breakdown structure (WBS) is used to break down (or decompose) a project into all component ac
to deliver a complete and functional project for the stakeholders. The critical path method (CPM) is used
determine sequencing of those activities to form an activity network, and then mathematically determin
The mathematical calculation determines the earliest time that an activity can start in a calculated forward
network. The latest time that an activity can start is determined by calculating the network in a backwar
_x000D_
There are various accepted methods for determining the critical path. This RP describes four such CPM met
the calculations used in these methods. It assumes a working understanding of the CPM calculation pro
_x000D_
This RP also discusses the analysis of the output of a CPM calculation. There is no absolute standard or defi
CPM calculation procedures or a list of required or optional rule extensions. No professional organization or
bureau currently evaluates, certifies or validates CPM software algorithms or procedures. Identifying the cri
an understanding of the methods and algorithms used by the various software platforms in producin
calculations._x000D_
_x000D_
Different CPM software products can produce different calculation results when applied to the same sche
scheduler must understand the differences and nuances of the software tools they will most often encounte
to account for the same in their analysis. In addition, different CPM calculation options from the same CP
produce different results for the same schedule logic. This RP provides an analysis of the output and identi
and weaknesses of the processes used to obtain those results._x000D_
_x000D_
This RP acknowledges that identification of the critical path is likely made via various software products. Sp
identified in this RP in order to qualify these methods and algorithms. In the interests of accuracy, only thos
Page 131 of 152
Description
This Recommended Practice for Time Impact Analysis (TIA) is intended to provide a guideline, not to establis
recommended practice of AACE International on TIA provides guidelines for the project scheduler to assess
effects of an unplanned event or events on current project completion. While TIAs are usually performe
scheduler and can be applied on a variety of project types, the practice is generally used as part of th
Management (TCM) change management and forecasting processes on construction projects._x
_x000D_
This recommended practice focuses on the basic elements necessary to perform a Time Impact Analysis
considerations and optional analysis practices are described. The TIA is a forwardlooking, prospective sc
technique that adds a modeled delay to an accepted contract schedule to determine the possible impact
project completion. This practice is not recommended for a retrospective (hindsight or forensic) view taken
passage of time since the delay event._x000D_
_x000D_
This TIA practice concerns itself with time aspects, not cost aspects of projects. The time impact must be q
determining any cost implications. No practical advantage is obtained by including cost factors into a time
Linking time and cost into one analysis implies that time impacts are a function of costs, which for the
prospective TIA is not true. Separating time analysis from cost analysis makes TIA inherently easier to acco
contractually; eliminating the cost-driven considerations from both creator and approver of the TI
_x000D_
A TIA may be performed to evaluate the potential or most likely results of an unplanned event. This even
schedule acceleration or a delay. For simplicity and clarity, we will refer to this event as a delay (i.e., acce
considered as a negative delay).
Page 132 of 152
Description
This Recommended Practice for Schedule Update Review is intended to provide a guideline, not to establish
recommended practice of AACE International, this document provides guidelines for the project schedu
professional schedule update or assess the reasonableness of changes to be made in a schedule due to a
status and progress. This recommended practice is associated with the Total Cost Management (TCM)
performance measurement, and change management processes on construction projects._x00
_x000D_
This recommended practice provides guidelines to assist construction entities submitting the schedule
contractor) and the entity reviewing the schedule submittal (the owner or client) to respond to the submi
reasonable manner. The use of the term owner also includes the work performed by their agents such
management. Also included is the recommended process to be followed by the schedule reviewer (review
three participants are responsible for the complete, accurate, and timely submittal, review and approva
schedule status update in order to benefit the project as a whole._x000D_
_x000D_
A schedule update occurs when a contractor assesses the status of the project that they are currently work
status into a previously prepared schedule, and then submits (shares) this updated schedule with the own
Schedule updates are an important aspect of timely project completion and this is a major reason that m
contracts for large projects require them. They are a vital medium of communication from the contractor to
project status, completed work to date and forecasts for project completion._x000D_
_x000D_
The schedule update should be a reflection of the contractors intent to reach project completion. Because o
and updated by the contractor. The owner indicates their willingness to use the schedule update as
communication and negotiation by accepting the schedule update. There are alternative methods of mana
update, but the process should honor this basic procedure. Acceptance first requires reaching agreemen
status._x000D_
_x000D_
Reaching agreement on the status of the project schedule is often difficult, frequently requiring negotiation
The successful completion of this process is the hallmark of a good scheduler using the correct process. Fa
quick, accurate, and timely agreement of project status can cause confusion, uncertainty, and potential lo
money on many projects. A lack of timely agreement on the project schedule status could result in contrac
cost overruns, late project delivery, and disputes that frequently last well past project completion.
_x000D_
Assessment of the impacts of trends, deviations, changes, etc. on project schedules usually cannot be
agreement on schedule status. If the participants agree that the schedule update submittal meets the speci
represents the current status and forecast using logic for the project as of the status date for the schedu
understood that both the contractor and owner are in agreement on approval of the schedule su
Page 133 of 152
Description
contractor) and the entity reviewing the recovery schedule submittal (the owner or client) to develop, analy
the recovery schedule in a fair and reasonable manner. The use of the term owner also includes the work
agents such as architect and/or construction manager. In this RP, the use of the term contractor does not
is a prime contractor or subcontractor, as both are contractors and the issues may be applicable to either
these participants are responsible for the complete, accurate, and timely submittal, review and approva
recovery schedule in order to benefit the project as a whole._x000D_
_x000D_
Progress on a project does not always proceed as planned. Occasionally, the project schedule may indicate
behind schedule and based upon the current work plan, a late project completion is anticipated. This late
adversely affect the plans of the owner of the project. Given a situation where there are no existing contrac
issues to the contrary, the contractor is normally entitled to complete late, provided that compensating dam
paid at the appropriate time to the owner. On the other hand, the owner is normally entitled to direct the co
lost time. The question of who is responsible for paying for any increased costs due to directed recovery eff
scope of this RP._x000D_
_x000D_
Many contracts limit the amount of time that the project schedule may indicate as the current prediction of
beyond required substantial completion. Should the current schedule indicate that the project is behind an
than the allowable time, the owner and/or its agents may direct the contractor to recover lost time and retu
project completion to the needed date. In addition, the owner may decide to simply direct the contractor to
even if such a clause does not exist in the contract or that the specified limit has not been reached
_x000D_
If the owner decides to demand a recovery schedule, care should be taken to ensure that the owner has no
or rejected legitimate time extensions for lost time on a project, while demanding that the contractor recov
that lost time is due to excusable delays (resulting in the contractor earning the right to time extensio
compensable or not, the owner is at risk when requiring a recovery schedule. The issuance of legitimate tim
project, provided in a timely manner and incorporated into the project schedule, will minimize the risk t
potential constructive acceleration claims. See AACE International Recommended Practice No. 29R-03 Fo
Analysis for further information concerning these types of claims._x000D_
_x000D_
Once directed to recover lost time, the contractor is normally required to create and submit a schedule pla
how this recovery of time will be accomplished. We call this schedule a recovery schedule. Recovery sch
important aspect of timely project completion and this is a major reason that requirements for recovery
included in most construction contracts for large projects. They are important as a planning tool as well as
communication from the contractor to the owner about changes to be made to the schedule to bring the fo
completion back to an ontime, or at least acceptable, basis._x000D_
This recommended practice (RP) for analyzing S-curves is intended to serve as a guideline, not to establish
recommended practice of AACE International, analyzing S-curves provides guidelines for stakeholders of a p
the current status and trends of a project in a simple graphical format._x000D_
_x000D_
S-curves are usually developed by a project scheduler or cost engineer and can be applied on a variety of p
product is generally used as a project management and/or total cost management (TCM) tool for graphic r
project performance._x000D_
_x000D_
The RP provides descriptions of S-curves with the intent to improve understanding and communication
participants and stakeholders when preparing and analyzing graphics based upon project schedule infor
describes different types of S-curves that may be generated from a schedule provided the proper informat
the schedule and the status of the information is maintained throughout the duration of the pr
Page 134 of 152
Description
together with a generic project scope definition maturity and quality matrix, which can be applied across
construction industries._x000D_
_x000D_
classification specifically to project estimates for the building and general construction industries. It supple
providing:_x000D_
_x000D_
a section that further defines classification concepts as they apply to the building and general co
industries;_x000D_
estimate._x000D_
_x000D_
As with the generic recommended practice, the intent of this addendum is to improve communications a
stakeholders involved with preparing, evaluating, and using project cost estimates specifically for the buil
construction industries._x000D_
_x000D_
The overall purpose of this recommended practice is to provide the building and general construction ind
deliverable maturity matrix which is not provided in 17R-97. It also provides an approximate representation
of specific design input data and design deliverable maturity to the estimate accuracy and methodology us
cost estimate. The estimate accuracy range is driven by many other variables and risks, so the maturity a
scope definition available at the time of the estimate is not the sole determinate of accuracy; risk analysis i
purpose._x000D_
_x000D_
generic and generally acceptable classification system for the building and general construction industries t
a basis to compare against. This addendum should allow each user to better assess, define, and commun
processes and standards in the light of generally-accepted cost engineering practice.
Page 135 of 152
Description
This recommended practice (RP) of AACE International defines the integrated analysis of schedule and cos
the appropriate level of cost and schedule contingency reserve on projects. The main contribution of this R
impact of schedule risk on cost risk and hence on the need for cost contingency reserves. Additional ben
prioritizing of the risks to cost, some of which are risks to schedule, so that risk mitigation may be condu
effective way, scatter diagrams of time-cost pairs for developing joint targets of time and cost, and proba
which shows cash flow at different levels of certainty. _x000D_
_x000D_
The methods presented in the RP are based on integrating the cost estimate with the project schedule by
and costing the schedules activities. The probability and impact of risks/uncertainties are specified and the
are linked to the activities and costs that they affect. Using Monte Carlo techniques one can simulate bot
permitting the impacts of schedule risk on cost risk to be calculated. _x000D_
_x000D_
These methods can be used both by the contractor and the owner. The contractor usually has a more deta
understanding of resource allocations used to put the costs into the schedule. The owner may use a more s
and summary notion of resources, but still is able to put the costs into the schedule at a summary level. In f
risks to the owner that do not affect the contractor as risks. Also, the contractor will not know about some o
such as having insufficient resources. In the case of joint venture owners the JV is often a marriage of c
disparate organizations with risks arising from different goals and methods. _x000D_
_x000D_
This RP is consistent with the Total Cost Management (TCM) Framework Section 7.6 Risk Management. In pa
in the TCM Section 7.6.2.2 Identify and Assess Risk Factors, highlights the fundamental risk factors (or drive
conditions that may influence or drive uncertainty (i.e., either opportunities or threats) in asset or project p
RP uses the same approach, starting with the RP section Simulating Using Risks as Drivers and illustrating
case study.
This recommended practice (RP) of AACE International defines basic principles and methodological build
estimating escalation costs using forecasted price or cost indices. There is a range of definitions of escalati
estimating methodologies; this RP will help guide practitioners in developing or selecting appropriate me
definitions and situation. Other RPs are expected to cover methods that do not involve indices, that cover sp
fully elaborated methodologies for specific project situations, technologies, industries, and probabilistic ap
while the RP discusses the relationships of escalation estimating to other risk cost accounts (namely conting
exchange), dealing with those costs is not this RPs focus._x000D_
_x000D_
Escalation estimating is an element of both the cost estimating and risk management processes. Like other
amenable to mitigation, control, etc. However, this RP is focused on quantification, not on escalation treatm
addressed through contracting, bidding, schedule acceleration, hedging, etc.) or control. In terms of cost e
covers practices applicable to all classification of estimates. The examples in the RP emphasize capital cos
the principles apply equally to operating, maintenance and other cost.
Page 136 of 152
Description
As identified in the AACE International Recommended Practice No. 18R-97 Cost Estimate Classification Syst
Engineering, Procurement, and Construction for the Process Industries, the estimating methodology tends
stochastic or factored to deterministic methods with increase in the level of project definition. _x
_x000D_
Factored estimating techniques are proven to be reliable methods in the preparation of conceptual estima
based on block flow diagrams (BFDs) or process flow diagrams (PFDs)) during the feasibility stage in the p
and generally involves simple or complex modeling (or factoring) based on inferred or statistical relationsh
and other, usually design related, parameters. The process industry being equipment-centric and process eq
cost driver serves as the key independent variable in applicable cost estimating relationships._x
_x000D_
This recommended practice outlines the common methodologies, techniques and data used to prepare fac
estimates in the process industries using estimating techniques such as: capacity factored estimates (C
factored estimates (EFE), and parametric cost estimates. However, it does not cover the development of c
estimating relationships used in the estimating process. _x000D_
_x000D_
All data presented in this document is only for illustrative purposes to demonstrate principles. Although th
derived from industry sources, it is not intended to be used for commercial purposes. The user of this docu
current data derived from other commercial data subscription services or their own project d
This recommended practice is intended to serve as a guideline, not a standard. As a recommended pra
International, the intent of the guideline is to improve the communication among stakeholders involved
evaluating, and using project controls information. This recommended practice (RP) of AACE International d
development, implementation and management of a project controls plan. This deliverable can be includ
overall project execution plan (PEP), or considered a stand alone document that describes specific approa
functional entity will use (engineering, procurement, construction, safety, quality, etc.)._x000
_x000D_
The project controls plan describes specific processes, procedures, tools and systems that guide and suppo
control. The plan is a narrative or qualitative representation of the project control process, while the est
schedule, etc. represent the quantitative aspects. Organizations may use this RP to develop a fit-for-use tem
document, which is further customized for each specific project._x000D_
_x000D_
This RP is intended to provide guidelines (i.e., not a standard) for the development of a project control p
practitioners would consider to be good practices that can be relied on and that they would recommend
applicable._x000D_
_x000D_
The purpose of the project controls plan should include, in part:_x000D_
A plan to implement an integrated set of work processes, procedures and applications to plan, monitor, ex
the work. For all intense purposes, the TCM Framework will provide the basis for general work processes.
applications (systems) can be specific to an organization or a project, and therefore, all procedures and appl
should be stated in the project controls plan._x000D_
A plan to implement an integrated suite of applications (systems)._x000D_
A plan to identify the roles, responsibilities, and accountabilities for the project controls team memb
A plan to produce the project control deliverables, expectations and scope of work_x000D
_x000D_
The use of a project controls plan is considered a leading indicator for assisting in the success of the delive
The time invested in preparing, documenting, and communicating a solid project controls plan will increase
execution of the project. The introduction of the project controls plan and all aspects within this document
team in reducing project delivery risk. Therefore, any consideration not to implement the project controls
portions of introduces a level of risk to the project.
Page 137 of 152
Description
This recommended practice (RP) for schedule design is intended to provide a guideline, not to establish a
recommended practice of AACE International, this document provides guidelines for the project scheduler to
for developing a baseline schedule and is applicable only as a precursor to the development of the baseline
_x000D_
This recommended practice is oriented to critical path method (CPM) schedule design. This recommended
address schedule development but instead provides the framework to enable an efficient and accurate fa
schedule development process. All schedule development should be done after this schedule design proces
the completion of design is necessary before a good schedule development process can progress e
Scope: _x000D_
This recommended practice (RP) of AACE International defines the expectations, requirements, and practic
and qualitatively analyzing risk drivers as part of the overall risk management process. It expands on TCM F
7.6.2.2 Risk Assessment, sections a) Risk Identification and b) Qualitative Risk Analysis, covering common p
such as brainstorming, interviews, and checklists. It also covers documentation for and the deliverables from
(e.g., risk register). It does not cover quantification of risks or risk treatment planning._x000
_x000D_
In TCM, the risk management process is applied in the strategic asset management and project control p
strategic arena, the risk focus tends to be on the state of the current asset, the business environment, and
differentiate alternative asset solutions (e.g. varying levels of scope definition). In project control, the risk
more specific project conditions, plans, deliverables, and events affecting a defined project scope while stra
This RP is intended to be generic to either any focus area and any_x000D_
project scope._x000D_
_x000D_
Risk identification may require skills and knowledge of behavioral psychology because methods such as b
Delphi must deal with participant biases._x000D_
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not a standard, for developing a process to identify project risk
qualitative risk analysis that most practitioners would consider to be practices that can be relied upon and
recommend be considered for use. It provides a foundation for developing risk treatment plans as described
Treatment. Ideally, the risk management process provides an opportunity for all stakeholders and contracti
together and manage project risk for their collective benefit. The implementation of all or part of this RP w
size and complexity of the project but the basic processes described should be used in all cases._
_x000D_
This RP outlines the processes and practices but is not a detailed how-to in each case. In that respect it
those that are new to risk management or to decision and risk management professionals who want to
knowledge of recommended practices.
Page 138 of 152
Description
Scope: _x000D_
This recommended practice (RP) of AACE International defines the expectations, requirements, and pra
treatment. This RP follows the steps identified in RP 62R-11, Risk Assessment Identification and Qualitative
process, an action owner is assigned who, working with the risk team, is responsible for devising and im
response plans for those risks that were not deem acceptable in the qualitative analysis screening step. It
Framework section 7.6.2.3 Risk Treatment and leads into 7.6.2.4 Risk Control._x000D_
_x000D_
In TCM, the risk management process is applied in the strategic asset management, as defined in RP 10S-90
Terminology and project control processes. In the strategic arena, the project has not yet been selected, s
focus tends to be on devising alternative asset or project solutions that mitigate the risks while meeting bu
and requirements. In project control, the risk treatment focus is more on tactical refinements (per TCM 3
creative alternative solutions, leveraging value engineering for example, and, through a formal quantitative
of project scope, conditions, plans and deliverables as well as developing contingency plans. This RP is inten
to either focus area or any project scope._x000D_
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not a standard, for including risk management during the planni
asset management that most practitioners would consider to be good practices that can be relied on, and w
for use. It will provide a foundation for risk control._x000D_
_x000D_
This RP will outline the processes and practices but is not a detailed how-to. In that respect it will most be
new to risk management or decision and risk management professionals who want to refresh their kn
recommended practices.
This recommended practice (RP) of AACE International defines general practices and considerations for the
conducting a project schedule risk analysis using a critical path method (CPM) network of activities and Mon
to estimate contingency and/or to understand the projects behavior in consideration of risk. This RP doe
standalone methodology, but is an extension of other RPs that present CPM-based approaches to schedule
contingency estimating. This RP discusses key procedural, analytical and interpretive considerations in p
application of a CPM model; considerations that were not covered in the broader methodological RP
_x000D_
A quantitative schedule risk analysis is an important aspect of risk management on a project. It can help
understand how project risks and uncertainty may impact the project schedule and when key milestones wi
analysis should be conducted by a skilled risk analyst. This analysis is typically performed during project de
key approval points, but can also be used during project execution to assess the current status of the pr
risks._x000D_
_x000D_
Most schedule risk analyses utilize a CPM network as the base tool for conducting a Monte Carlo type sim
schedule variability. The CPM model for risk analysis must be properly constructed and realistically reflect h
risks may impact the project activities and overall duration. The identified schedule risks may be linked to t
model in a variety of ways, depending on the software used and user preference. Regardless of how the r
activities in the software, the analysis needs to be based on a comprehensive list of schedule risks and an
how they may impact the project. Understanding the compromises, assumptions and basis of the analytical
the resulting schedule risk analysis means are key to developing appropriate risk treatment plans, continge
making well supported value adding project decisions._x000D_
_x000D_
This RP is applicable to any industry or project where the CPM approach is used. It addresses consideration
as they relate to the CPM model and not to any integration with cost risk analysis.
Page 139 of 152
Description
Scope: _x000D_
This recommended practice (RP) of AACE International (AACE) defines general practices and considerations
and schedule risk analysis and estimating contingency using expected value methods._x000
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not standards, for contingency estimating that most practitioners
be good practices that can be relied upon and that would be recommend for use where applicable. There is
risk analysis and contingency estimating methodologies; this RP will help guide practitioners in developi
appropriate methods for their situation._x000D_
_x000D_
This RP is an extension of 44R08, Risk Analysis and Contingency Determination Using Expected Value, tha
expected value methods only for cost. However, integrated cost and schedule methods are generally recom
for expected value methods, or 57R09, Integrated Cost and Schedule Risk Analysis Using MonteCarlo Sim
Model, for CPMbased methods.
Scope: _x000D_
This recommended practice (RP) of AACE International provides guidance for selecting probability distributio
for use in probabilistic decision and risk management (DRM) simulation models within cost engineering
management (TCM). These DRM models are used to analyze asset and project cost, schedule, profitabil
measures in consideration of risks. While AACE's definition of risk is fully defined elsewhere, this RP uses
address both threats and opportunities._x000D_
_x000D_
Purpose: _x000D_
This RP will describe the basic characteristics of commonly used PDFs and define their advantages and disa
in typical probabilistic modeling. It is intended to provide practical advice for nonstatisticians who are appl
tools such as Monte Carlo modeling. In this area of practice, the data inputs are generally subjective; they
sampling of data about a population or statistical analysis of empirical data. In that regard, this RP does not
curve fitting or statistical analysis of empirical data such as linear regression. The goals of this RP are to he
a) with an inferred goodness of fit to the opinions and perceptions of participants in risk analysis exercise
reasonably simple to apply, understand and communicate. It does not cover methods to elicit these opinion
This recommended practice (RP) of AACE International defines the contract risk allocation principles as appl
procurement and construction (EPC). Such principles address for example; contract basics, legal risk alloc
general risk allocation principles, typical contract forms, common contract risks, and quantitative contract
Much of the discussion focuses on construction; however, the principles apply to contracts for any elem
project._x000D_
_x000D_
This RP is intended to provide guidelines for making equitable contract risk allocations that reduce the pote
and enhance the likelihood for project success. _x000D_
_x000D_
This RP summarizes and clarifies contract risk allocation practices in the context of the TCM Framework and
processes. It has been developed as a reference or overview document and may not be relied upon as leg
action advice. In addition, it is recommended to seek the advice and input of experts in contracting, claim
resolution as appropriate.
Page 140 of 152
Description
This recommended practice (RP) of AACE International defines basic principles and methodological build
estimating escalation using forecasted price or cost indices while also addressing uncertainty using Monte
The methods in this RP are an extension of the principles and methods in RP 58R-10, Escalation Estimatin
Methods Using Indices, from a probabilistic and scenario/sensitivity viewpoint. This RP will guide practitione
selecting appropriate methods for their definitions and situation. While this RP discusses the relationship
estimating to other risk cost and schedule accounts (namely contingency), dealing with those cost types is
this RP. This RP assumes that practitioners are already familiar with Monte Carlo simulation as typically appl
applications._x000D_
_x000D_
Escalation estimating is an element of both the cost estimating and risk management processes. Like other
amenable to mitigation, control, etc. However, this RP is focused on escalation quantification, not on treatm
addressed through contracting, bidding, schedule acceleration, hedging, etc.) or control. In terms of cost e
covers practices applicable to all classes of estimates[2]. Escalation uncertainty is partly driven by schedu
this RP also references AACEs RPs on integrated cost and schedule risk analysis and contingency estim
examples in this RP emphasize capital cost estimating and scheduling, but the principles apply equally
maintenance and other cost and time evaluations. While a model such as that covered in this RP could be
optimization in consideration of escalation, optimization is not covered here._x000D_
_x000D_
As with RP 58R-10, Escalation Estimating Principles and Methods Using Indices, this RP recommends segre
versus exchange rate impacts and their estimation for projects with resources priced in currencies other
currency.
Page 141 of 152
Description
together with a generic project scope definition maturity and quality of inputs matrix, which can be app
hydropower industry._x000D_
_x000D_
classification specifically to project estimates for engineering, procurement, and construction (EPC) or ot
arrangements and execution venues, both for owners and service providers, and their related work in deve
projects. This addendum supplements the generic recommended practice by providing:_x000
_x000D_
a section that further defines classification concepts as they apply to the hydropower industry and their u
to other industries_x000D_
a section on the regulatory requirements and resulting impacts that are specific to hydropower proje
estimate._x000D_
_x000D_
As with the generic recommended practice, the intent of this addendum is to improve communications and
all of the stakeholders involved with preparing, evaluating, and using project cost estimates specifically fo
industry._x000D_
_x000D_
The overall purpose of this recommended practice is to provide the hydropower industry with a definition de
matrix which is not covered in 17R-97. This RP provides an approximate representation and logical linage of
specific design input data and design deliverable maturity to the estimate accuracy and methodology use
cost estimate._x000D_
_x000D_
The estimate accuracy range is driven by many other variables and risks, so the maturity and quality of th
available at the time of the estimate is not the sole determinate of accuracy; risk analysis is required for tha
_x000D_
This document is intended to provide a general guideline, not a standard. It is understood that each enterp
own project and estimating processes and terminology, and may classify estimates in their own particular w
provides a generic and generally acceptable classification system for the hydropower industry that can be
point for the basis of comparison. This RP should allow each user to better assess, define, and communicate
and developed procedures and standards in light of generally-accepted cost engineering prac
Page 142 of 152
Description
This recommended practice (RP) describes schedule contingency implementation and schedule risk manag
to consider when developing a capital construction project execution phase schedule. AACE Internationa
practices are intended to provide guidelines, not to establish standards. This RP describes general princip
schedule contingency in engineering, procurement and construction project schedules._x000
_x000D_
Although this RP was written as a stand-alone document it can be used as a companion with the AACE
practices related to schedule planning and development, risk management, forecasting, and change m
Overlapping information has been eliminated from this document in deference to the more detailed guidelin
documents._x000D_
_x000D_
There are a wide range of opinions regarding whether or not to allow the use of schedule contingency. Thi
general consensus concerning guidelines for the proper use of schedule contingency when schedule conting
be used._x000D_
_x000D_
Because the application of schedule contingency is not an area of generally accepted practice, this RP is foc
the schedule contingency definition, attributes and principles that professionals can generally consider for a
excludes discussion of schedule risk modeling processes and analysis as well as the integrated cost and
analysis. It also excludes the detailed procedure for managing contingency through change management
cost/schedule control methods. AACE recommended practices have been developed to provide detailed gu
related processes._x000D_
_x000D_
This RP describes guidelines for implementing schedule contingency as part of the overall capital project r
process when schedule contingency is desired. These principles may be applied to any phase of a project,
relevant at the time of planning for project control during the execution phase. After analysis of schedu
established schedule model, the project team should plan the methods to establish time contingency in the
logic, and describe these procedures in the project execution and control plans.
International, the intent of the guideline is to define the required skills and knowledge to perform deci
management. It serves as the foundation of the skills and knowledge of an AACE certified Decision and R
Professional (DRMP) and provides an outline for its study guide._x000D_
_x000D_
Decision and risk management (DRM) requires knowledge ranging from analytical (e.g., statistics and
socio/psychological (e.g., risk elicitation and communication) to management (e.g. risk response planning a
DRM is practiced within the context of all the processes and practices of total cost management (TCM). All T
elements of uncertainty and the need to make some decisions, and interfaces with all the associated discip
TCM process.
Page 143 of 152
Description
This recommended practice (RP) of AACE International defines practices for developing and implementing a
plan for any type of project for any project phase. A risk management plan defines how the project team int
its applicable risk management process. This RP assumes the process is aligned with TCM Framework se
Management (e.g. plan, assess, treat, and control risks over the project life cycle.) It is recommended
management plan be part of an overall project execution plan (PEP) or similar integrated project plan to bet
objectives are achieved. _x000D_
_x000D_
The risk management plan describes specific processes, procedures, organization, tools and systems that g
effective risk management throughout the life cycle of the project._x000D_
_x000D_
This RP is intended to provide guidelines (i.e., not a standard) for developing a project risk management
provide a basis for what most practitioners would consider to be good practices that can be relied upon, an
recommend be considered for use where applicable. In general, the risk management plan model inclu
ensuring risk management objectives are addressed for all stakeholder and project requiremen
implementing an integrated set of work processes, procedures, and applications to plan, identify, analyz
and monitor risks specific to the life of the project_x000D_
implementing an organizations integrated suite of risk management applications (tools and syste
identifying organizational roles, responsibilities, and accountabilities with respect to risk managem
producing, updating, and controlling the risk management deliverables_x000D_
communicating risk management information and deliverables_x000D_
initiating the risk management process_x000D_
capturing and disseminating learnings for future risk management planning_x000D_
_x000D_
This RP will assist in developing a fit-for-use template which can be customized for each specific proje
_x000D_
According to TCM, the risk management plan must describe what the project or asset management team re
the risk management objective so that it may be incorporated within the overall project execution plan and/
The time invested in preparing, documenting, and communicating a solid risk management plan will increa
the execution of the project.
This recommended practice (RP) provides principles and key attributes of construction project labor produ
reference bases which most practitioners would consider to be a foundation for good labor norm practices
on and that they would recommend be considered for use where applicable. This RP may also be appli
construction related industries. Labor resource requirements are a key element of project estimates, sche
management and risk management plans. _x000D_
_x000D_
In terms of valuation, the purpose of a labor norm is not to provide true values for every situation. Its purp
logical, reliably consistent values; and a practitioner should know how to adjust the labor norms to the situ
understanding of the labor norms explicit basis. It is understood that every estimate will require adjustmen
norms. It is also understood that every organizations needs differ and there is no single best labor norm
cross-labor norms set of adjustments. However, this RP outlines what should be considered in developing
norm or selecting an external labor norm and developing adjustments. _x000D_
_x000D_
Labor hours used in estimates and other tasks, and the labor norms they are based on, must consider is
productivity such as organization, culture, motivation, skills levels (sometimes all encompassed in location
and overhead resources, risks, work conditions, worker morale, safety practices, fatigue and other drivers
This RP does not address the costing or pricing of labor; it only addresses the basis of hours. It also does no
forms.
Page 144 of 152
Description
AACE Internationals Total Cost Management (TCM) Framework identifies a basis of estimate (BOE) docum
component of a cost estimate. As a recommended practice (RP) of AACE International, the template outline
sections provides guidelines for the structure and content of a cost basis of estimate specific to the soft
industries (i.e. software development, maintenance & support, infrastructure, research & development,
_x000D_
This document is based upon AACE International Recommended Practice 34R-05, Basis of Estimate [1]. It id
estimate (BOE) document as a required component of a cost/effort/duration estimate._x000
_x000D_
In the TCM Framework, the BOE is characterized as the one deliverable that defines the scope of the en
ultimately becomes the basis for change management. Note: In the software services industries, the term
commonly used and synonymous with project. When prepared correctly, any person with (capital) projec
use the BOE to understand and assess the estimate, independent of any other supporting documentation. A
achieves those goals by clearly and concisely stating the purpose of the estimate being prepared (i.e. cos
study, project options, funding, etc.), the project scope, cost basis, allowances, assumptions, exclusions
opportunities, contingencies, and any deviations from standard practices. For software services the effort
main driver for cost and duration. In addition the BOE is a documented record of pertinent communications
and agreements that have been made between the estimator and other stakeholders._x000
_x000D_
A well prepared BOE will:_x000D_
Document the overall engagement scope._x000D_
Communicate the estimators knowledge of the engagement by demonstrating an understanding of sco
duration as it relates to cost._x000D_
Provide a record of all the hypothesis and assumptions taken into account for deriving the BOE.
Alert the stakeholders to potential cost risks and opportunities._x000D_
Provide a record of key communications made during estimate preparation._x000D_
Provide a record of all documents used to prepare the estimate._x000D_
Act as a source of support during dispute resolutions._x000D_
Establish the initial baseline for scope, quantities, effort, duration and cost for use in engagement co
Provide the historical relationships between baselined estimates throughout the project lifecycle
Facilitate the review and validation of the estimates._x000D_
_x000D_
This RP is intended to be a guideline, not a standard. It is understood that not all organizations that prepare
the same processes and practices, and therefore, may opt to use this information either in part or in its ent
all cases this RP supports creating consistent estimate documentation that provides a high degree of tr
repeatability for the estimate.
Page 145 of 152
Description
This recommended practice (RP) describes the definition, purpose, management, and control of schedule an
projects being implemented under American National Standards Institute (ANSI) Electronics Industries Alli
Earned Value Management Systems (EVMS) guidelines with a focus on Federal Acquisition Regulation (FA
projects funded by the United States government. This includes contingency, management reserve (MR),
(SM), undistributed budget (UB), and authorized unpriced work (AUW). Overall use of management reserve
portfolios are not within the scope of this document. This document elaborates and provides additional deta
with however not included in the ANSI EIA-748 standard. It is intended to provide general guidelines from
contractor perspectives. As with all AACE International recommended practices, this document is not in
standard._x000D_
_x000D_
This RP starts with contingency as defined in common usage in RP 10S-90, Cost Engineering Terminolog
provides guidance regarding the management and use of management reserve and undistributed budget
executed using earned value management (EVM) techniques consistent with the ANSI EIA-748 standard. Th
non-time-phased components of the contract budget baseline (CBB), and may be used when project manag
with EVMS tenets is implemented and practiced in a disciplined manner. _x000D_
_x000D_
In this RP the cost contingencies are mitigated through the use of management reserve and schedule co
schedule margin. Also, undistributed budget is defined as the amount of the budget of the performance
baseline that has yet to be allocated either to control accounts or to summary level planning packag
_x000D_
This RP covers the scope of ANSI EIA-748 Guidelines 14 and 15 entirely and components of ANSI EIA-748 Gu
30 and 32 regarding revisions and change control (as listed in the National Defense Industries Association
Management Systems Committee (PMSC) Earned Value Management Systems Intent Guide
Page 146 of 152
Description
The accepted initial schedule is often referred to as the baseline schedule. The baseline schedule establis
dates (and possibly budgeted costs) that forms the basis of the original project execution plan. It will be us
original planned dates, durations, logic sequence, and costs against the actual as-built progress. This usa
baseline schedule, in this RP is different from the same term used by several software companies to indicat
of a CPM schedule or its updates._x000D_
_x000D_
This recommended practice is to assist both the creator of the baseline schedule (scheduler) and the perso
receives the submitted schedule and reviews it for acceptability on behalf of the owner or client. It may als
the development of their scheduling specifications. The use of the term owner also includes the work per
agents such as contractors, subcontractors, or a project manager acting as the owners representati
_x000D_
Most contracts require the contractor to submit a baseline schedule. The baseline schedule is a model of
project execution plan, and is the standard by which project performance is measured.[11] The schedule sho
of the contractors intent to achieve project completion while integrating all contractual scope and requir
purposes of this RP it is assumed that the schedule is originally created and updated by the contractor,
guidelines may apply to other contractual relationships. The baseline schedule serves as a common basis
project progress and performance._x000D_
_x000D_
Reaching agreement on a baseline schedule is often difficult, frequently requiring team effort, negotiation, a
During the initial stages of developing the baseline schedule, meetings between the contractor and the o
expectations and requirements can go a long way towards assuring timely completion, review and acceptan
effective baseline schedule. A lack of timely agreement on the acceptance of a baseline schedule can res
disagreements, loss of productivity, extra work, and un-resolved issues that may afterward lead to claims o
the best interests of all parties to achieve an accepted baseline schedule in a timely manner._x
_x000D_
This recommended practice is intended to address the evaluation of critical path method (CPM) original ba
This RP does not apply to a revised baseline plan or to a schedule update review where project progress/st
concern._x000D_
_x000D_
The focus of a baseline review is on the overall quality and completeness of the original project schedule an
not an assessment of current progress or subsequent project schedule changes. A baseline schedule revie
following issues that are not normally considered in a schedule update review:_x000D_
Inclusion of the entire project scope. _x000D_
Sequence and work flow._x000D_
Constructability._x000D_
Timing and phasing._x000D_
Page 147 of 152
Description
This recommended practice (RP) describes the purpose, application, measurement and control of level of e
projects that operate with an earned value management system. It provides explanations of use and man
work as it pertains to EVM implementations that may not be contained in the Total Cost Management (TC
_x000D_
_x000D_
This RP is intended to provide guidance for planning, managing and reporting performance of LOE tasks
practitioners would consider to be sound practice for managing and claiming performance related to w
considered to be measureable. The target audience for this RP is project managers, control account mana
project staff responsible for planning projects and managing and measuring project performance. It is also
beneficial to EVM analysts who want a clearer understanding of LOE task management and measurem
_x000D_
This RP is aligned with the TCM Framework, as well as the American National Standards Institute (ANSI) Ele
Alliance (EIA) - 748 Earned Value Management Systems (EVMS) guidelines. (Guideline 12, parts of Guid
regarding task planning and scheduling, and parts of Guidelines 30 and 31 regarding revisions and chang
document provides further explanation of the intent and application of LOE that is not contained in the ANS
and the National Defense Industries Association (NDIA) Earned Value Management Systems Intent Gu
_x000D_
This document is not intended to be a standard, but provides further clarification of recommended EVM p
apply to planning, implementing, and reporting LOE work being performed under the ANSI EIA-748
This recommended practice (RP) explains what an estimate at completion (EAC) is, and considerations to us
an EAC for both cost and schedule components of the performance measurement baseline (PMB).
_x000D_
This RP is aligned with the Total Cost Management Framework, as well as the American National Standard
Electronics Industries Alliance (EIA) - 748 Earned Value Management Systems (EVMS) guidelines. (Guideline
components of Guidelines 22-26)_x000D_
_x000D_
This document provides additional details that are not included in the ANSI EIA-748 standard such as the
completion date (ECD) metrics to help compare the schedule completion date against what is shown on a
schedule. It also provides some additional aspects of EVM that are not covered in the TCM Framework, suc
performance index (TCPI) and earned schedule (ES). As with all AACE International recommended practices
not intended to be a standard, rather it is intended to provide general guidance. _x000D_
_x000D_
This RP will address the fundamental attributes used to develop an EAC or forecast, both from a cost persp
schedule perspective. It will also address common independent EAC calculations used to compare and v
provided by the control account managers and/or project management.
Page 148 of 152
Description
International, the intent of the guideline is to define the required skills and knowledge to perform earned va
(EVM). It serves as an important foundation of the skills and knowledge of an AACE certified Earned Value P
and provides an outline for its study guide._x000D_
_x000D_
EVM integrates scope, schedule, and cost along with budget and performance measurement within a projec
method for project progress measurement analysis and control that combines work scope, schedule, and re
to enable objective comparison of the planned schedule of the project to the work completed along w
costs._x000D_
_x000D_
The RP highlights the necessary skills and knowledge of EVM. It identifies competencies for an EVM practit
industry, portfolio, program, or project. Detailed skills, knowledge and methodology, are excluded from th
practice._x000D_
_x000D_
This RP is aligned with RP 11R-88, Required Skills and Knowledge of Cost Engineering and the Total Cost Ma
Framework, as well as the American National Standards Institute (ANSI) Electronics Industries Alliance (EIA)
Management Systems (EVMS) guidelines.
This recommended practice (RP) applies to contracts employing the American National Standards Institute
Industries Alliance (EIA) - 748 Earned Value Management Systems (EVMS)[9] guidelines or the equivalent. It
over other TCM Framework guidance when ANSI EIA-748 is required. It provides an overview of the concep
and its application in accordance with the ANSI EIA-748 earned value management system (EVMS) standa
contains 32 principles that are interrelated. This RP provides an overview of the ANSI EIA-748 guidelines 1comparison with the Total Cost Management (TCM) Framework.
This recommended practice (RP) describes the purpose, management, and control of an organizational bre
(OBS) and responsibility assignment matrix (RAM)._x000D_
_x000D_
This RP provides guidance regarding the use of an OBS and RAM on projects. This RP defines the purpose
examples for the OBS and RAM. _x000D_
_x000D_
The intent of the RP is to document what most practitioners would consider to be good practices that can be
they would recommend be considered for use where applicable. The intended audience is total cost m
professionals who are developing an OBS and RAM. _x000D_
_x000D_
This RP is aligned with the Total Cost Management Framework, as well as the American National Standard
Electronics Industries Alliance (EIA) - 748 Earned Value Management Systems (EVMS) guidelines. (Guidelin
Page 149 of 152
Description
Planning for adverse weather and incorporating that into the project schedule is an essential practice
successful projects. This recommended practice (RP) for adverse weather planning is intended to prov
guideline, not to establish a standard. It provides planning guidelines developed primarily for engineerin
capital construction projects but can be adapted to any type of project or program where weather can influ
outcome._x000D_
_x000D_
This RP is intended to:_x000D_
Identify methodologies for adverse weather planning._x000D_
Provide sources for historical data and provide recommendations for their use._x000D_
Explain and critique weather planning methods._x000D_
Recommend approaches for managing actual weather documentation compared to what was plann
_x000D_
Positive and negative aspects for each weather planning method should be considered in the context of s
projects elements, including contractual requirements. This RP does not address legal ramifications or fo
schedule delay analysis considerations that may need to be addressed when adverse weather delay i
contention._x000D_
_x000D_
This RP serves to provide guidance in the absence of contractual requirements as well as potential guida
writing specifications for adverse weather planning. If adverse weather planning is addressed in the con
planning and modeling should be in compliance.
Page 150 of 152
Description
This recommended practice (RP) of AACE International defines the use of decision trees in evaluation of alt
project strategy in the presence of uncertainty and their potential implications. A large part of the risk man
involves looking into the future, trying to understand what might happen and determining whether it matte
decision we need to make. _x000D_
_x000D_
The decision tree technique can be applied to many different uncertain situations. For example: _
Distinguishing the costs or benefits of using a low-price bidder whn delivery time and quality are unc
The relative costs or benefits of adopting a state-of-the-art technology or staying with the proven tech
The relative attractiveness of building a greenfield plant or retrofitting an existing plant._x0
_x000D_
Decision tree techniques involve determining the objective (e.g., maximizing profit, minimizing cost), specif
(e.g., choosing among bids for the EPC contractor) and creating a decision tree that distinguishes between c
(decision nodes) and potential consequences (chance nodes). The cost of taking a particular path to the
project completion) and the probabilities of specific uncertain outcomes are key data inputs into the decisio
to the decision tree model._x000D_
_x000D_
This recommended practice shows the application of decision trees for two types of organizations: one is ri
other is risk averse. The decision process used for both types of organizations is to maximize the expec
recommended practice then looks at two different approaches to expressing the organizations utility. Thes
generally those of a risk-neutral organization or a risk-averse organization:_x000D_
Maximize utility based on the expected value of a linear function of monetary value, which is a hallmar
organization._x000D_
Maximize expected utility based on the expected value a non-linear function of monetary value, which
measure of merit for a risk-averse or a risk-seeking organization._x000D_
_x000D_
The results (e.g., which contractor to choose) are examined using sensitivity analysis to decide whether it
more data since improving the accuracy of the data could result in changing the decision. This decision
accuracy of the existing data and whether a reasonable variation in the numbers could change the dec
_x000D_
Finally, continuous distributions of the uncertain variables usually approximate reality better than selecting
alternative outcomes using a limited number of discrete outcomes. Uncertain future outcomes can be repre
of Monte Carlo simulations of continuous distributions.
This RP is intended to provide guidance for planning, performing, managing, and controlling the varia
process. Earned value management (EVM) practitioners would consider this guidance to be advisable
earned value (EV) metrics and addressing any potential influences to project execution. The target a
this RP is anyone with a need to understand how to prepare an EV variance analysis and perform a
analysis.
As with all AACE International recommended practices, this document is not intended to be a stan
provides further clarification of recommended EVM practices as they apply to planning, implement
reporting a variance analysis.
This RP is aligned with the Total Cost Management Framework, as well as the American National S
Institute (ANSI) Electronics Industries Alliance (EIA) 748 Earned Value Management Systems (EVMS
(Guidelines 2226). This document also provides further explanation of the intent and application of le
(LOE) that is not contained in the ANSI/EIA748 standard and the National Defense Industries Associa
Earned Value Management Systems Intent Guide.
Page 151 of 152
Description
As a recommended practice (RP) of AACE International, the Cost Estimate Classification System provides
applying the general principles of estimate classification to project cost estimates (i.e., cost estimates th
evaluate, approve, and/or fund projects). The Cost Estimate Classification System maps the phases and sta
estimating together with a generic project scope definition maturity and quality matrix, which can be appl
variety of process industries._x000D_
_x000D_
This addendum to the generic recommended practice (17R97) [2] provides guidelines for applying the prin
classification specifically to project estimates in the petroleum exploration and production industry. Th
supplements the generic recommended practice by providing:_x000D_
A section that further defines classification concepts as they apply to the petroleum exploration and
industry._x000D_
A section on the geopolitical nature and investment regulation of petroleum exploration and production pr
the estimating process and its basis definition deliverables._x000D_
A chart that maps the extent and maturity of estimate input information (project definition deliverables) a
estimate._x000D_
_x000D_
As with the generic RP, the intent of this addendum is to improve communications among all of the stakeho
preparing, evaluating, and using project cost estimates, specifically for the petroleum exploration and
industry._x000D_
_x000D_
The overall purpose of this recommended practice is to provide the petroleum exploration and production
definition deliverable maturity matrix, which is not provided in 17R97. It also provides an approximate rep
relationship of specific design input data and design deliverable maturity to the estimate accuracy and me
produce the cost estimate. The estimate accuracy range is driven by many other variables and risks, so t
quality of the scope definition available at the time of the estimate is not the sole determinant of accurac
required for that purpose._x000D_
_x000D_
generic and generally acceptable classification system for the petroleum exploration and production industr
as a basis to compare against. This addendum should allow each user to better assess, define, and commu
processes and standards in the light of generally accepted cost engineering practice._x000
_x000D_
As a final note regarding purpose, users must be aware of the industrys well documented history of challen
of budget authorization, appropriation, or funding estimates. An intent of this RP is to help improve upon p
Page 152 of 152

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Number

Cost Engineering Terminology

Required Skills and Knowledge of Cost Engineering

Recommended Method for Determining Building Area

Cost Estimate Classification System

Estimate Preparation Costs in the Process Industries

Developing Activity Logic

Estimating Lost Labor Productivity in Construction Claims

Schedule Classification System

Developing Location Factors by Factoring As Applied in Architecture, Engineering, Procurement, a

Forensic Schedule Analysis

Implementing Project Constructability

Reviewing, Validating, and Documenting the Estimate

Determining Activity Durations

Schedule Levels of DetailAs Applied in Engineering, Procurement, and Constructio

Documenting the Schedule Basis

Project Planning As Applied in Engineering and Construction for Capital Projects

Contingency Estimating General Principles

Risk Analysis and Contingency Determination Using Range Estimating

Risk Analysis and Contingency Determination Using Parametric Estimating

Risk Analysis and Contingency Determination Using Expected Value

Scheduling Claims Protection Methods

Required Skills and Knowledge of Project Cost Estimating

Schedule Constructability Review

Identifying the Critical Path

Time Impact Analysis As Applied in Construction

Schedule Update Review As Applied In Engineering, Procurement and Constructio

Recovery SchedulingAs Applied in Engineering, Procurement, and Construction

Escalation Estimating Principles and Methods Using Indices

Developing the Project Controls Plan

Schedule Design As Applied in Engineering, Procurement, and Construction

Risk Assessment: Identification and Qualitative Analysis

CPM Schedule Risk Modeling and Analysis: Special Considerations

Contract Risk Allocation As Applied in Engineering, Procurement, and Constructio

Escalation Estimating Using Indices and Monte Carlo Simulation

Principles of Schedule Contingency Management As Applied in Engineering, Procurement and

Required Skills and Knowledge of Decision and Risk Management

Developing a Project Risk Management Plan

Establishing Labor Productivity Norms

Basis of Estimate - As Applied for the Software Services Industries

Schedule and Cost Reserves within the Framework of ANSI EIA-748

Original Baseline Schedule Review - As Applied in Engineering, Procurement, and Constr

Estimate at Completion (EAC)

Required Skills and Knowledge of Earned Value Management

Organizational Breakdown Structure and Responsibility Assignment Matrix

Planning and Accounting for Adverse Weather

Use of Decision Trees in Decision Making

Variance Analysis and Reporting

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