 COST
ENGINEERING TERMINOLOGY |
(Rev. August 2007)
AACE International Recommended Practice No. 10S-90 |
| TCM Framework: | General Reference |
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REQUIRED
SKILLS AND KNOWLEDGE OF COST ENGINEERING |
(Rev. January 2006)
AACE International Recommended Practice No. 11R-88 |
| TCM Framework: | General Reference |
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MODEL
MASTER'S DEGREE PROGRAM WITH EMPHASIS IN COST ENGINEERING |
(Rev. November 1990)
AACE International Recommended Practice No. 12R-89 |
| TCM Framework: | General Reference |
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RECOMMENDED
METHOD FOR DETERMINING BUILDING AREA |
(Rev. November 1990)
AACE International Recommended Practice No. 13S-90 |
| TCM Framework: | 7.3 - Cost Estimating
and Budgeting |
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RESPONSIBILITY
AND REQUIRED SKILLS FOR A PROJECT PLANNING AND SCHEDULING
PROFESSIONAL |
(Rev. September 2006)
AACE International Recommended Practice No. 14R-90 |
| TCM Framework: | 7.2 - Schedule
Planning and Development |
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PROFITABILITY
METHODS |
(Rev. November 1981)
AACE International Recommended Practice No. 15R-81 |
| TCM Framework: | 3.3 - Investment
Decision Making
6.1 - Asset Performance Assessment |
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CONDUCTING
TECHNICAL AND ECONOMIC EVALUATIONS - AS APPLIED FOR THE PROCESS AND
UTILITY INDUSTRIES |
(Rev. April 1991)
AACE International Recommended Practice No. 16R-90 |
| TCM Framework: | 3.2 - Asset Planning
3.3 - Investment
Decision Making |
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COST
ESTIMATE CLASSIFICATION SYSTEM |
(Rev. August 1997)
AACE International Recommended Practice No. 17R-97 |
| TCM Framework: | 7.3 - Cost Estimating
and Budgeting |
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COST
ESTIMATE CLASSIFICATION SYSTEM - AS APPLIED IN ENGINEERING,
PROCUREMENT, AND CONSTRUCTION FOR THE PROCESS INDUSTRIES |
(Rev. February 2005)
AACE International Recommended Practice No. 18R-97 |
| TCM Framework: | 7.3 - Cost Estimating
and Budgeting |
The Cost Estimate Classification System provides guidelines for applying the general
principles of estimate classification to asset project cost estimates. Asset project cost
estimates typically involve estimates for capital investment, and exclude operating and
life-cycle evaluations. The Cost Estimate Classification System maps the phases and stages
of asset cost estimating together with a generic maturity and quality matrix that can be
applied across a wide variety of industries.
17R-97 provides a generic methodology for the classification of project cost estimates in any
industry, while 18R-97 provides extensions and additional detail for applying the
principles of estimate classification specifically to project estimates for
engineering, procurement, and construction (EPC) work for the process industries.
An intent of the guidelines is to improve communication among all of the stakeholders
involved with preparing, evaluating, and using project cost estimates. |
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ESTIMATE
PREPARATION COSTS - AS APPLIED FOR THE PROCESS |
(Rev. June 1998)
AACE International Recommended Practice No. 19R-97 |
| TCM Framework: | 7.3 - Cost Estimating
and Budgeting |
This recommended practice presents benchmark information on the costs to prepare cost
estimates (for engineering, procurement, and construction) in the process industries. It
includes qualitative and quantitative lessons that cost engineers and estimators can use
to benchmark their cost estimating experiences against. The data on preparation costs was
used to develop a parametric cost model that can be used to estimate the cost of preparing
estimates. The effort or cost to prepare a cost estimate is a secondary characteristic of
a cost estimate classification. This Recommended Practice supports AACE
International’s Recommended Practice 18R-97 Cost Estimate Classification System -
as Applied in Engineering, Procurement, and Construction for the Process Industries. |
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PROJECT
CODE OF ACCOUNTS |
(Rev. January 2003)
AACE International Recommended Practice No. 20R-98 |
| TCM Framework: | 7.1 - Project Scope
and Execution Strategy Development
7.2 - Schedule Planning and Development
7.3 - Cost Estimating and Budgeting |
This guideline establishes the basic principles of codes of accounts (COA) for
projects in any industry. It examines key characteristics including usage, content,
structure and format and describes benefits of establishing standard COAs. Topics such as
activity-based costing and work breakdown structures as they relate to COAs are addressed.
The issues of properly defining a WBS and how it should be structured are outside the
scope of this guideline. COAs are applicable to all phases of the asset life cycle,
however, this guideline specifically addresses the project execution phases of asset
design development through to start of normal operation.
A project code of accounts is a coded index of project cost, resource and activity
categories. A complete COA includes definitions of the content of each account code and is
methodically structured to facilitate finding, sorting, compiling, summarizing, defining
and otherwise managing information the code is linked to. The information is used to
support total cost management practices such as cost estimating, cost accounting, cost
reporting, cost control, planning and scheduling. Other names used for COAs are coding
matrices, coding structures, charge accounts, asset or material classification accounts,
value categories, cost elements, work breakdown structures, resource breakdown structures
and activity breakdown structures. |
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PROJECT
CODE OF ACCOUNTS - AS APPLIED IN ENGINEERING, PROCUREMENT, AND
CONSTRUCTION FOR THE PROCESS INDUSTRIES |
(Rev. January 2003)
AACE International Recommended Practice No. 21R-98 |
| TCM Framework: | 7.1 - Project Scope
and Execution Strategy Development
7.2 - Schedule Planning and Development
7.3 - Cost Estimating and Budgeting |
This guideline is an industry-specific addendum to AACE International's generic guideline
for project code of accounts (Recommended Practice No. 20R-98). This document describes
recommended practices for codes of accounts (COA) as applied to engineering, procurement,
and construction (EPC) projects in the process industries. "Process industries"
are those with facilities whose main function is to perform a process. This includes
chemical, petrochemical, hydrocarbon, pulp and paper, pharmaceutical, power generation,
thermal, metallurgical, assembly, fabrication, and other processing. The primary
characteristic of these industries, as it relates to codes of accounts, is that process or
manufacturing equipment is the core or primary physical component of the facility.
Equipment differentiates these projects from commercial construction and infrastructure
where the core component is a structure, from software development projects where the core
component is programming code, and so on.
COAs are applicable to all phases of the asset life cycle, but this guideline specifically
addresses the EPC for creation, modification, or termination of a process facility. This
guideline does not apply to code of accounts to support ongoing operations of process
facilities. Properly defining a work breakdown structure (WBS), and other project
structures, and deciding how they should be structured are outside the scope of this
document.
A project code of accounts is a coded index of project cost, resource, and activity
categories. A complete COA includes definitions of the content of each account code and is
methodically structured to facilitate finding, sorting, compiling, summarizing, defining
and otherwise managing the project information that is linked to the code. The information
is used to support total cost management practices such as cost estimating, cost
reporting, cost accounting, planning, and scheduling. Refer to 20R-98 for a more complete
description of the principles of COAs. |
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DIRECT
LABOR PRODUCTIVITY MEASUREMENT - AS APPLIED IN CONSTRUCTION AND
MAJOR MAINTENANCE PROJECTS |
(Rev. April 2004)
AACE International Recommended Practice No. 22R-01 |
| TCM Framework: | 9.2 - Progress and
Performance Measurement |
This recommended practice of AACE International describes a direct method to measure,
monitor and optimize construction and maintenance project labor productivity. The method
described is statistical sampling of the work process, or: work sampling. The work process
is made up of steps and activities that take input resources, add value, and produce the
completed project. Understanding the capability of the process, or 'management system,' to
produce efficiently is important for project planning and control. Sampling is a
cost-effective way to provide information about the performance of the work process, i.e.,
about 'how' the work is done, and how to do it better. Work sampling complements
conventional project management methodology, which typically tracks 'what' work is done.
Sampling provides project managers, supervisors, and the workforce with objective feedback
re: the efficiency of the work process (not of individual workers, which is part of the
foreman's job) - and the ability to respond quickly to adjust. In addition, it provides a
measure of management's ability to effectively plan, coordinate, and control project
execution. Analysis of the sampling data allows for prompt removal or reduction of
roadblocks, optimizing the construction work process through redesign and innovation.
Streamlining the work process ensures that performing productive work is made more
convenient for the workforce, ensuring that, at all times, crafts and technicians have all
the necessary tools, materials, parts, supplies, information, supervisory support and
personal needs readily available. Work sampling, properly applied, recognizes that
productivity results from an optimal work process, i.e., from 'managing smarter,' not from
people working harder.
Construction labor productivity is a measure of work process efficiency. It can be defined
as the ratio of the value labor produces to the value invested in labor. Productivity
increases as needed labor resources are minimized and wasted efforts eliminated from the
work process. This definition and the practice covered here treats productivity as a
direct, absolute measure to be optimized. |
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IDENTIFICATION OF ACTIVITIES |
(Rev. May 2007)
AACE International Recommended Practice No. 23R-02 |
| TCM Framework: | 7.2 - Schedule
Planning and Development |
This recommended practice is for use by the project team members
involved in the schedule planning process for any project type and
in any industry. Many individuals contribute in the identification
of activities, and having an experienced planner coordinate the
process improves final quality and adds value to the planning
process.
As a recommended practice of AACE International, identification of
activities in schedule planning and development provides guidelines
for the conversion of scope definition to specific activities and
tasks required to complete a program or project. Identification of
activities is a key planning step that takes place early in the
schedule planning and development process which also includes
estimating durations, determining and defining resources, and
identifying external project constraints.
The scope definition of a program or project is generally described
in various planning and technical documents, databases, or other
deliverables. To begin the planning process, information in the
scope documents must first be translated into manageable activities.
For
example, the scope may include the installation of a length of
pipeline. Installing that pipeline may require designing, procuring,
cutting, welding, erecting, and inspection activities. This process
of expanding the high level scope or functional definition into the
detailed work required for completion is the practice of
"identification of activities". |
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DEVELOPING ACTIVITY LOGIC
|
(Rev. March 2004)
AACE International Recommended Practice No. 24R-03 |
| TCM Framework: | 7.2 Schedule Planning
and Development |
As a recommended practice of AACE International, development of activity logic (also
called network logic) in planning and scheduling provides guidelines for the sequencing of
activities in a logical way generally before duration estimating can be performed. Logic
is generally determined before durations are considered. Logic development methods include
precedence diagramming, or arrow diagramming methods. Logic is the set of activities and
dependency relationships between them. Logic dictates the planned sequencing of
activities. A network diagram is often used to illustrate the logic.
Planning and scheduling are not the same. Planning is determining how the work will be
done, while scheduling is the analysis and calculation of start and finish dates.
Logic enables the combination of activities to be arranged in one of the aforementioned
formats so that a completion date can be established. Logic also enables backward passes
to arrive at optimal overall schedule duration.
This recommended practice is for use by project team members involved in planning process,
a continuation of activity identification process (reference TCM Framework section 8.2).
As in identification of activities, many individuals contribute to the development of
activity logic. Having an experienced planner coordinate the process improves final
quality, and adds value to the planning process. |
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ESTIMATING
LOST LABOR PRODUCTIVITY IN CONSTRUCTION CLAIMS
|
(Rev. April 2004)
AACE International Recommended Practice No. 25R-03 |
| TCM Framework: | 6.4 Forensic
Performance Assessment |
This Recommended Practice focuses on identification of various methods for estimating lost
labor productivity in construction claims. Often the claim is the result of one or more
change order requests that cannot be fully resolved to capture their full and final effect
on the entire project cost and schedule. Specifically, this Recommended Practice examines
the issue in terms of claims for cost recovery of lost productivity. Therefore, the
purpose of the Recommended Practice is to
- Identify Lost Productivity Estimating Methodologies:
That is, survey as many of the various methodologies employed in
litigation throughout North America as can be identified;
- Rank Order the Methodologies: That is, based on reliability,
professional acceptance, case law and construction claims literature, rank the identified
methodologies from most to least reliable with respect to documenting estimating damages
in claim situations. While it may not be possible to state with certainty which methods
are absolutely most or least reliable, it can be stated that under certain sets of
circumstances some methods are generally considered more reliable than others. (CAUTION:
This Recommended Practice was prepared on the basis of the author's understanding of
Canadian and U.S. case law. It is recommended that anyone preparing a lost productivity
claim seek appropriate legal advice on the methodology to be used. This is especially true
if the claim is being pursued under national law other than Canada or the United States.)
- Define and Discuss Each Methodology: That is, discuss the method
and how it is employed. Also, when possible, discuss the strong and weak points of each
method;
- Identify Selected Studies Applicable to Each Methodology:
Herein, identify as many studies and professional or technical papers as possible which
will help the practitioner in learning more about and/or employing a particular method.
It needs to be noted that this Recommended Practice does not
define in detail how one should properly perform the various analytical methods identified
herein. The Recommended Practice gives a brief description of each method only in an
effort to help claimants properly identify the method. That is, different claimants may
have differing nomenclature for the same methodology. In this case, the brief description
of each method is intended to help overcome this situation. |
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DEVELOPING LOCATION FACTORS BY FACTORING - AS APPLIED IN
ARCHITECTURE & ENGINEERING, AND ENGINEERING, PROCUREMENT &
CONSTRUCTION |
(Rev. October 2006)
AACE International Recommended Practice No. 28R-03 |
| TCM Framework: | 7.3 - Cost Estimating
and Budgeting
10.4 - Project Historical Database Management |
This recommended practice provides a generic method of developing location factors in support of the
Total Cost Management (TCM) cost estimating and budgeting and database management processes for
construction related projects. The method applies to construction projects of all types including buildings,
infrastructure, utilities, process plants, and so on. This generic method provides a basis for users to tailor
their own detailed process around their own needs and computing capabilities. Location factors are used
during preliminary project evaluations (i.e., Class 5 or 4 estimates). They are not intended to be used
when preparing appropriation-quality estimates (i.e., Class 3 or better estimates). |
|
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FORENSIC SCHEDULE ANALYSIS |
(Rev. June 2007)
AACE International Recommended Practice No. 29R-03 |
| TCM Framework: | 6.4 - Forensic Performance Assessment |
|
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BASIS OF ESTIMATE |
(Rev. May 2007)
AACE International Recommended Practice No. 34R-05 |
| TCM Framework: | 7.3 - Cost Estimating
and Budgeting |
AACE International’s Total Cost Management (TCM) Framework identifies a basis of estimate (BOE) document as a required component of a cost estimate. As a Recommended Practice (RP) of AACE International, the template outlined in the following sections provides guidelines for the structure and content of a cost basis of estimate.
In the TCM Framework, the BOE is characterized as the one deliverable that defines the scope of the project, and ultimately becomes the basis for change management. When prepared correctly, any person with capital project experience can use the BOE to understand and assess the estimate, independent of any other supporting documentation. A well-written BOE achieves those goals by clearly and concisely stating the purpose of the estimate being prepared (i.e. cost study, project options, funding, etc.), the project scope, pricing basis, allowances, assumptions, exclusions, cost risks and opportunities, and any deviations from standard practices. In addition the BOE is a documented record of pertinent communications that have occurred and agreements that have been made between the estimator and other project stakeholders.
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TIME IMPACT ANALYSIS - AS APPLIED IN CONSTRUCTION
|
(Rev. October 2006)
AACE International Recommended Practice No. 52R-06 |
| TCM Framework: | 6.4 - Forensic
Performance Assessment
7.2 - Schedule Planning and Development
10.2 - Forecasting
10.3 - Change Management |
This Recommended Practice for Time Impact Analysis (TIA) is intended to provide a guideline, not to
establish a standard. This recommended practice of AACE International on TIA provides guidelines for
the project scheduler to assess and quantify the effects of an unplanned event or events on current
project completion. While TIAs are usually performed by a project scheduler and can be applied on a
variety of project types, the practice is generally used as part of the Total Cost Management (TCM)
change management and forecasting processes on construction projects.
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SCHEDULE UPDATE REVIEW - AS APPLIED IN ENGINEERING, PROCUREMENT, AND CONSTRUCTION
|
(Rev. September 2007)
AACE International Recommended Practice No. 53R-06 |
| TCM Framework: | 9.2 - Progress and
Performance Measurement
10.3 - Change Management |
This Recommended Practice for Schedule Update Review is intended
to provide a guideline, not to establish a standard. As a
recommended practice of AACE International, this document provides
guidelines for the project scheduler to create a professional
schedule update or assess the reasonableness of changes to be made
in a schedule due to a change of project status and progress. This
recommended practice is associated with the Total Cost Management
(TCM) progress and performance measurement, and change management
processes on construction projects. |
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