Three new and several revised AACE International Recommended Practices (RPs) have been issued by the Technical Board, according to Chair Larry Dysert. “Our Recommended Practices are the main technical foundation of our educational, and certification products and services. The Recommended Practices augment the TCM Framework by providing additional level of detail for particular subject areas. All of AACE’s RPs have been subject to a rigorous multi-stage review process, including a full public peer review, and finally recommended for use by the AACE International Technical Board,” Dysert commented.
While AACE International makes our Recommended Practices available for free to anyone interested in the practice of total cost management, we do not authorize the reproduction of the Recommended Practices without specific written permission. AACE International will readily approve other organizations to create a hyperlink or make reference to the documents. This practice assures that individuals and organizations reference only the current versions of these valuable resources.
Dysert emphasized that while AACE International offers non-members the opportunity to access the current version of the Total Cost Management Framework without charge from our website, the Technical Board released the Visual Total Cost Management Framework in June 2011 as primarily a members-only benefit. According to Dysert, “Visual TCM (VTCM) graphically demonstrates the integration of the strategic asset management (SAM) and project controls (PC) process maps of the TCM Framework. The Visual TCM application has been designed to provide a dynamic view of the TCM processes, from the overall strategy process maps to the mid-level processes and detailed activities. It is an exceptionally useful tool for AACE International members and will be expanded in the future to enhance its value.”
Here is a summary of the most recent changes made to the Recommended Practices:
10S-90, Cost Engineering Terminology (REVISED)
This December 13, 2011 update adds over 160 new and revised terms and definitions mainly in the area of decision and risk management.
17R-97, Cost Estimate Classification System (REVISED);
18R-97, Cost Estimate Classification System – As Applied in Engineering, Procurement, and Construction for the Process Industries (REVISED); and 56R-08, Cost Estimate Classification System – As Applied in the Building and General Construction Industries (NEW)
Although two of our cost estimate classification system RPs (17R-97 and 18R-97) have been available for some time now, we are pleased to announce that they have been extended to the building and general construction industries as well, with the new publication of 56R-08. In addition, all three estimate classification RPs have been updated to provide additional clarification and a greater degree of consistency and integration.
39R-06, Project Planning – As Applied in Engineering and Construction for Capital Projects (NEW)
This new recommended practice focuses on the elements of project planning: who, what, where, when, and how. It also covers the actions required by members of the project team in order to translate that planning effort into a useful project plan that will serve as a management navigation tool to guide the project team to successful project completion. It also discusses the actions required by the engineering and construction project team after the development of the clients’ business requirements, business case, alternatives and assumptions.
60R-10, Developing the Project Controls Plan (NEW)
The intent of this new RP is to improve the communication among stakeholders involved with preparing, evaluating, and using project controls information. It defines the overall development, implementation and management of a project controls plan. This deliverable can be included as part of an overall project execution plan (PEP), or considered a stand-alone document that describes specific approaches that each functional entity will use (engineering, procurement, construction, safety, quality, etc.). The project controls plan describes specific processes, procedures, tools and systems that guide and support effective project control. The plan is a narrative or qualitative representation of the project control process, while the estimate, budget, schedule, etc. represent the quantitative aspects. Organizations may use this RP to develop a fit-for-use template as a model document, which is further customized for each specific project.
43R-08, Risk Analysis and Contingency Determination Using Parametric Estimating - Example Models as Applied for the Process Industries (REVISED)
This revised recommended practice is an addendum to the 42R-08, Risk Analysis and Contingency Determination Using Parametric Estimating. It provides three working (Microsoft Excel®) examples of established, empirically-based process industry models of the type covered by the base RP; two for cost and one for construction schedule. The example models are intended as educational and developmental resources; prior to their use for actual risk analysis and contingency estimating, users must study the reference source documentation and calibrate and validate the models against their own experience.
These models posit plausible causal relationships between cost growth (i.e., contingency usage) and schedule slip and various risk systemic drivers such as the levels of development of process and project scope information and the level of process technology. They present similar empirical and quantitative analysis of the reasons for inaccurate estimates of capital costs and schedule duration and provide tools to improve assessment of the commercial prospects of projects at early stages of scope development and/or using advancing technologies.
These and all other AACE International RPs as well as the Visual Total Cost Management Framework are available at aacei.org/resources/.