PublicationNum

PublicationName
ber

PublicationDat
e

10S-90

Cost Engineering Terminology

2014/11/14

11R-88

Required Skills and Knowledge of Cost Engineering

2013/06/18

13S-90

Recommended Method for Determining Building Area

1990/11/01

14R-90

Responsibility and Required Skills for a Project Planning and

Scheduling Professional

2006/09/19

15R-81

Profitability Methods

2008/07/16

16R-90

Conducting Technical and Economic Evaluations As Applied

1991/04/01
for the Process and Utility Industries

17R-97

Cost Estimate Classification System

2011/11/29

18R-97

Cost Estimate Classification System As Applied in

Engineering, Procurement, and Construction for the Process
Industries

2011/11/29

19R-97

Estimate Preparation Costs in the Process Industries

1998/06/19

20R-98

Project Code of Accounts

2003/01/27

21R-98

Project Code of Accounts As Applied in Engineering,

Procurement, and Construction for the Process Industries

2003/01/27

22R-01

Direct Labor Productivity Measurement - As Applied in

Construction and Major Maintenance Projects

2004/04/26

23R-02

Identification of Activities

2007/05/03

24R-03

Developing Activity Logic

2004/03/26

25R-03

Estimating Lost Labor Productivity in Construction Claims

2004/04/13

27R-03

Schedule Classification System

2010/11/12

28R-03

Developing Location Factors by Factoring As Applied in

Architecture, Engineering, Procurement, and Construction

2006/10/19

29R-03

Forensic Schedule Analysis

2011/04/25

30R-03

Implementing Project Constructability

2009/05/20

31R-03

Reviewing, Validating, and Documenting the Estimate

2009/05/12

32R-04

Determining Activity Durations

2012/01/14

34R-05

Basis of Estimate

2014/05/02

35R-09

Development of Cost Estimate Plans As Applied for the

Building and General Construction Industries

2015/02/14

36R-08

Development of Cost Estimate Plans As Applied in

Engineering, Procurement, and Construction for the Process
Industries

2015/02/14

37R-06

Schedule Levels of DetailAs Applied in Engineering,

Procurement, and Construction

2010/03/20

38R-06

Documenting the Schedule Basis

2009/06/18

39R-06

Project Planning As Applied in Engineering and Construction

2011/12/08
for Capital Projects

40R-08

Contingency Estimating General Principles

2008/06/25

41R-08

Risk Analysis and Contingency Determination Using Range

Estimating

2008/10/27

42R-08

Risk Analysis and Contingency Determination Using

Parametric Estimating

2011/05/26

43R-08

Risk Analysis and Contingency Determination Using

Parametric Estimating Example Models as Applied for the
Process Industries

2011/12/28

44R-08

Risk Analysis and Contingency Determination Using Expected

2012/12/04
Value

45R-08

Scheduling Claims Protection Methods

2009/06/01

46R-11

Required Skills and Knowledge of Project Cost Estimating

2013/01/16

47R-11

Cost Estimate Classification System As Applied in the Mining

2012/07/06
and Mineral Processing Industries

48R-06

Schedule Constructability Review

2009/08/28

49R-06

Identifying the Critical Path

2010/03/05

52R-06

Time Impact Analysis As Applied in Construction

2006/10/19

53R-06

Schedule Update Review As Applied In Engineering,

Procurement and Construction

2008/08/14

54R-07

Recovery SchedulingAs Applied in Engineering,

Procurement, and Construction

2010/11/19

55R-09

Analyzing S-Curves

2010/11/10

56R-08

Cost Estimate Classification System As Applied for the

Building and General Construction Industries

2012/12/05

57R-09

Integrated Cost and Schedule Risk Analysis Using Monte

Carlo Simulation of a CPM Model

2011/06/18

58R-10

Escalation Estimating Principles and Methods Using Indices

2011/05/25

59R-10

Development of Factored Cost Estimates As Applied in

Engineering, Procurement, and Construction for the Process
Industries

2011/06/18

60R-10

Developing the Project Controls Plan

2011/12/21

61R-10

Schedule Design As Applied in Engineering, Procurement,

and Construction

2013/10/11

62R-11

Risk Assessment: Identification and Qualitative Analysis

2012/05/11

63R-11

Risk Treatment

2012/08/23

64R-11

CPM Schedule Risk Modeling and Analysis: Special

Considerations

65R-11

Integrated Cost and Schedule Risk Analysis and Contingency

2012/05/02
Determination Using Expected Value

66R-11

Selecting Probability Distribution Functions for use in Cost

and Schedule Risk Simulation Models

2012/08/24

67R-11

Contract Risk Allocation As Applied in Engineering,

Procurement, and Construction

2014/01/14

68R-11

Escalation Estimating Using Indices and Monte Carlo

Simulation

2012/05/02

2012/05/02

69R-12

Cost Estimate Classification System As Applied in

Engineering, Procurement, and Construction for the
Hydropower Industry

70R-12

Principles of Schedule Contingency Management As Applied

2013/10/16
in Engineering, Procurement and Construction

71R-12

Required Skills and Knowledge of Decision and Risk

Management

2013/06/17

72R-12

Developing a Project Risk Management Plan

2013/04/25

2013/01/25

73R-13

Establishing Labor Productivity Norms

2014/01/14

74R-13

Basis of Estimate - As Applied for the Software Services

Industries

2014/04/02

75R-13

Schedule and Cost Reserves within the Framework of ANSI

EIA-748

2014/10/24

78R-13

Original Baseline Schedule Review - As Applied in

Engineering, Procurement, and Construction

2014/10/23

79R-13

Level of Effort Planning and Execution on Earned Value

Projects - Within the Framework of ANSI EIA-748

2014/10/24

80R-13

Estimate at Completion (EAC)

2014/11/11

81R-13

Required Skills and Knowledge of Earned Value Management

2014/05/01

82R-13

Earned Value Management (EVM) Overview and

Recommended Practices Consistent with ANSI EIA-748

2014/11/04

83R-13

Organizational Breakdown Structure and Responsibility

Assignment Matrix

2014/05/01

85R-14

Use of Decision Trees in Decision Making

2014/11/14

87R-14

Cost Estimate Classification System - As Applied for the

Petroleum Exploration and Production Industry

2015/03/10

PublicationDescription

This document provides terms commonly used in all facets of cost engineering and in total cost management. Unless otherwise noted, all t
International Technical Board.

This recommended practice has the following purposes: 1.) define what core skills and knowledge of cost engineering a person is required t
_x000D_
It is also hoped that enterprises will find this useful as a reference or guide for developing their own competency models. Knowledge is an u
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 able to describe, perform, etc

The building area of a major building structure is the sum of the areas of the several floors of the building, including basements, mezzanine

This recommended practice is intended to serve the following purposes: a) Describe the roles and responsibilities of a Planning and Schedu
professional practitioner, and in doing so; c) Establish the core subjects for AACE International PSP education and certification programs.

Scope:_x000D_
This Recommended Practice (RP) of AACE International defines specific practices for determining the profitability of investments. The metho
progress without profitability._x000D_
_x000D_
Purpose:_x000D_
This RP is intended to provide broad guidelines, not standards, for profitability methods that most seasoned practitioners in most industries
RP._x000D_
_x000D_
Background:_x000D_
Profitability methods are critical tools for assessing asset performance and making effective investment decisions. These processes are cen

AACE International has had a long-standing interest in developing standards and recommended practices. The Recommended Practice desc
plant investment; others are involved in specific areas of cost estimating or only in financial analysis; still others, in overall economics. Adh
_x000D_
There are several ways of conducting technical and economic evaluations in the process industries and within these ways there are many v

As a recommended practice of AACE International, the Cost Estimate Classification System provides guidelines for applying the general prin
stages of asset cost estimating together with a generic maturity and quality matrix that can be applied across a wide variety of industries._
_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, regardless of the type of enterprise or in
fully defines and correlates the major characteristics used in classifying cost estimates so that enterprises may unambiguously determine
uses the maturity level of project definition deliverables as the primary characteristic to categorize estimate classes; 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 preparing, evaluating, and using projec
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 misinterpretation of the various classes of cos
disputes caused by misunderstandings of cost estimates and what they are expected to represent._x000D_
_x000D_
This document is intended to provide a guideline, not a standard. It is understood that each enterprise may have its own project and estima
formally documented its own estimate classification scheme, then this guideline may provide an acceptable starting point.

As a recommended practice of AACE International, the Cost Estimate Classification System provides guidelines for applying the general prin
project scope definition maturity and quality matrix, which can be applied across a wide variety of process industries._x000D_
_x000D_
This addendum to the generic recommended practice (17R-97) provides guidelines for applying the principles of estimate classification spe
a section that further defines classification concepts as they apply to the process industries; and_x000D_
a chart that maps the extent and maturity of estimate input information (project definition deliverables) against the class of estimate._x0
_x000D_
As with the generic recommended practice, an intent of this addendum is to improve communications among all of the stakeholders involve
_x000D_
The overall purpose of this recommended practice is to provide the process industry definition deliverable maturity matrix which is not prov
driven by many other variables and risks, so the maturity and quality of the scope definition available at the time of the estimate is not the
_x000D_
This document is intended to provide a guideline, not a standard. It is understood that each enterprise may have its own project and estima
allow each user to better assess, define, and communicate their own processes and standards in the light of generally-accepted cost engin

This Recommended Practice presents benchmark information on the costs to prepare project cost estimates (for engineering, procurement,
cost model that can be used to estimate the cost of preparing estimates._x000D_
_x000D_
This information supports AACE Internationals Recommended Practice 18R-97 entitled Cost Estimate Classification System as Applied in
_x000D_
A primary value of this Recommended Practice is improved understanding of the variables and trends concerning estimate preparation cos
development.

This guideline establishes the basic principles of codes of accounts (COA) for projects in any industry. It examines key characteristics includ
should be structured are outside the scope of this guideline. COAs are applicable to all phases of the asset life cycle, however, this guidelin
_x000D_
A project code of accounts is a coded index of project cost, resource and activity categories. A complete COA includes definitions of the con
cost estimating, cost accounting, cost reporting, cost control, planning and scheduling. Other names used for COAs are coding matrices, co

This guideline is an industry-specific addendum to AACE Internationals generic guideline for project code of accounts (Recommended Pract
function is to perform a process. This includes chemical, petrochemical, hydrocarbon, pulp and paper, pharmaceutical, power generation, th
Equipment differentiates these projects from commercial construction and infrastructure where the core component is a structure, from sof
_x000D_
COAs are applicable to all phases of the asset life cycle, but this guideline specifically addresses the EPC for creation, modification, or termi
are outside the scope of this document._x000D_
_x000D_
A project code of accounts is a coded index of project cost, resource, and activity categories. A complete COA includes definitions of the con
practices such as cost estimating, cost reporting, cost accounting, planning, and scheduling. Refer to 20R-98 for a more complete descriptio

This recommended practice of AACE International describes a direct method to measure, monitor and optimize construction and maintenan
the capability of the process, or management system, to produce efficiently is important for project planning and control. Sampling is a co
done._x000D_
_x000D_
Sampling provides project managers, supervisors, and the workforce with objective feedback re: the efficiency of the work process (not of in
for prompt removal or reduction of roadblocks, optimizing the construction work process through redesign and innovation. Streamlining the
needs readily available. Work sampling, properly applied, recognizes that productivity results from an optimal work process, i.e., from man
_x000D_
Construction labor productivity is a measure of work process efficiency. It can be defined as the ratio of the value labor produces to the valu

This recommended practice for identification of activities is intended to provide a guideline, not establish a standard. This guideline covers
_x000D_
This recommended practice is for use by the project team members involved in the schedule planning process for any project type and in a
_x000D_
As a recommended practice of AACE International, identification of activities in schedule planning and development provides guidelines for
estimating durations, determining and defining resources, and identifying external project constraints._x000D_
_x000D_
The scope definition of a program or project is generally described in various planning and technical documents, databases, or other delive
procuring, cutting, welding, erecting, and inspection activities. This process of expanding the high level scope or functional definition into th

This recommended practice is intended to provide a guideline, not establish a standard. This is not a how-to on any particular methodology
_x000D_
As a recommended practice of AACE International, development of activity logic (also called network logic) in planning and scheduling prov
diagramming methods. Logic is the set of activities and dependency relationships between them. Logic dictates the planned sequencing of
_x000D_
Planning and scheduling are not the same. Planning is determining how the work will be done, while scheduling is the analysis and calculat
_x000D_
Logic enables the combination of activities to be arranged in one of the aforementioned formats so that a completion date can be establish
_x000D_
This recommended practice is for use by project team members involved in planning process, a continuation of activity identification proce

This Recommended Practice focuses on identification of various methods for estimating lost labor productivity in construction claims. Often
recovery of lost productivity. Therefore, the purpose of the Recommended Practice is to:_x000D_
_x000D_
- Identify Lost Productivity Estimating Methodologies: That is, survey as many of the various methodologies employed in litigation through
_x000D_
- Rank Order the Methodologies: That is, based on reliability, professional acceptance, case law and construction claims literature, rank th
certain sets of circumstances some methods are generally considered more reliable than others. (CAUTION: This Recommended Practice wa
pursued under national law other than Canada or the United States.)_x000D_
_x000D_
- Define and Discuss Each Methodology: That is, discuss the method and how it is employed. Also, when possible, discuss the strong and w
_x000D_
- Identify Selected Studies Applicable to Each Methodology: Herein, identify as many studies and professional or technical papers as possibl
_x000D_
It needs to be noted that this Recommended Practice does not define in detail how one should properly perform the various analytical meth
the brief description of each method is intended to help overcome this situation.

This recommended practice (RP) is intended to serve as a guideline, not a standard. As a recommended practice of AACE International, the
prepare schedules and the various methods employed during the scheduling process. It is understood that each enterprise may have its ow
organization has not formally documented its own schedule classification system, then this RP guideline can be used to provide an accepta
_x000D_
This recommended practice introduces a schedule classification system, which provides the guidelines for applying the general principles o
schedule in any industry, and across all stakeholders including government and academia._x000D_
_x000D_
A separate recommended practice provides a guideline for describing the specific use of schedule levels to project schedules. Schedule lev
requirements for each of the stakeholders and the appropriate amount of information necessary for effective communication and decisions
_x000D_
This recommended practice has been developed such that it:_x000D_
Provides common understanding of the concepts involved with classifying project schedules regardless of the type of enterprise or indust
Fully defines and correlates the major characteristics used in classifying schedules so that enterprises may determine how their practices
Uses degree of project definition as the primary characteristic to categorize schedule classes_x000D_
Reflects generally accepted practices in the cost engineering profession_x000D_
_x000D_
This classification guideline is intended to help those involved with project schedules to avoid misinterpretation of the various classes of sch
disputes caused by misunderstandings of schedules and what they are expected to represent.

Location factors are a vital product of any cost engineering service organization supporting industries with global assets and projects. One t
execution knowledge that only comes through experience. This Recommended practice documents such a process._x000D_
_x000D_
International markets and politics are constantly changing, and those involved with developing location factors must constantly collect, ana
factors is a tool for living that process._x000D_
_x000D_
This recommended practice provides a generic method of developing location factors in support of the Total Cost Management (TCM) cost e
basis for users to tailor their own detailed process around their own needs and computing capabilities. Location factors are used during pre
_x000D_
A location factor is an instantaneous (i.e., currenthas no escalation or currency exchange projection), overall total project factor for transl
duties, taxes, procurement, engineering, design, and project administration. The cost of land, scope/design differences for local conditions a
_x000D_
Location factors provide a way to evaluate relative cost differences between two geographic locations. They often are applied to conceptua
toward methods that are accurate, flexible, easily managed, and allow a quick turnaround.

The purpose of the AACE International Recommended Practice 29R-03 Forensic Schedule Analysis is to provide a unifying reference of bas
technical information to categorize and evaluate the varying forensic schedule analysis methods. The RP discusses certain methods of sche
_x000D_
This RP is not intended to establish a standard of practice, nor is it intended to be a prescriptive document applied without exception. There
practice, the RP should be used in conjunction with professional judgment and knowledge of the subject matter. While the recommended pr

This recommended practice for Implementing Project Constructability is intended to provide a guideline, not to establish a standard. As a
_x000D_
Constructability is the integration of construction expertise into all phases of the project to benefit cost, schedule, quality, and overall proje
prior to the procurement phase and again prior to the mobilization phase for construction. CRs should hold true to the designers intent, an
_x000D_
Constructability, as addressed in this RP, is applicable to projects in any industry in any location (e.g., architectural, process plant, transpor
analysis; and so on. Constructability is also useful as a risk management practice that supports risk mitigation. However, these other VIPs a
_x000D_
AACE is not the sole or even primary steward of recommended constructability practice; there are several leading organizations included in
organization. This RP highlights the role of cost engineering in the practice._x000D_
_x000D_
This RP will discuss how to implement a constructability program in order to maximize the positive impact on the project. It also provides pr

Scope: _x000D_
This Recommended Practice (RP) of AACE International defines the basic elements of and provides broad guidelines for the cost estimate re
intended for those responsible for and/or participating in an estimate review. Expert knowledge is not required to understand or use this RP
_x000D_
Purpose:_x000D_
This RP is intended to provide guidelines (i.e., not a standard) for reviewing, validating and documenting estimates. Most practitioners woul
_x000D_
Background:_x000D_
Cost estimates typically represent a complex compilation and analysis of input from many project stakeholders. To ensure the quality of an
Reflect the project strategy, objectives, scope and risks_x000D_
Be suitable for a given purpose (e.g., cost analysis, decision making, control, bidding, etc.)_x000D_
Address the stakeholders financial and performance requirements_x000D_
Ensure that all parties agree on and understand the estimates basis, content and outcome, including the estimates probabilistic charact

This recommended practice (RP) for determining activity durations is intended to provide a guideline and a resource, not to establish a stan
management (TCM) project planning, scheduling forecasting, and change management processes._x000D_
_x000D_
This recommended practice provides information about determining the original durations for activities for developing the project schedule
within the scope of this RP. Therefore the information presented here generally applies to determining original activity durations; and gener
_x000D_
This recommended practice offers methods for determining original activity durations through the analysis of past project data with anticip

AACE Internationals Total Cost Management (TCM) Framework identifies a basis of estimate (BOE) document as a required component of a
_x000D_
In the TCM Framework, the BOE is characterized as the one deliverable that defines the scope of the project, and ultimately becomes the ba
clearly and concisely stating the purpose of the estimate being prepared (i.e. cost study, project options, funding, etc.), the project scope, p
between the estimator and other project stakeholders._x000D_
_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 and schedule as it relates to cost._x0
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 project._x000D_
Provide the historical relationships between estimates throughout the project lifecycle._x000D_
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 estimates employ the same pro

This recommended practice (RP) is a guideline for the development of cost estimate plans for the building and general construction industr
_x000D_
This RP is intended to provide a guideline (i.e., not a standard) for establishing and communicating how to prepare, review and approve an
_x000D_
The basic principles of cost estimate plans can be applied to various contracting strategies, project execution approaches and asset owner
Preparation of an estimate plan helps to ensure successful estimate completion in an effective and timely manner._x000D_
Engaging key stakeholders in estimate planning prior to starting the estimate improves the likelihood of meeting estimate objectives._x00
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, clarifying requirements and responsibil

Purpose: _x000D_
This recommended practice (RP) of AACE International (AACE) is a guideline for development of cost estimate preparation plans for enginee
_x000D_
The purpose of a cost estimate preparation plan (herein referred to as estimate plan) is to establish and communicate how the preparatio
_x000D_
Background: _x000D_
AACE Internationals Total Cost Management (TCM) Framework section 7.3.2.1 Plan for Cost Estimating and Budgeting highlights the need
_x000D_
Cost estimating in the hydrocarbon processing industries (e.g.; chemical, refining, petroleum production facilities, etc.) has evolved to a rel
document are a result of compiling notes made by industry practitioners, lessons learned and publicly available documents._x000D_
_x000D_
Scope: _x000D_
With reference to the TCM Framework, this document addresses the steps before and after the Plan for Estimating and Budgeting step to
_x000D_
This document is primarily focused on estimates prepared for project sanction purposes of land-based facilities. Typically, project sanction i
_x000D_
The basic principles are applicable to all contracting strategies and asset owner (herein referred to as owner) configurations. For example
responsible for managing the project/program and so on. Some key principles are: _x000D_
_x000D_
Preparation of an estimate plan helps to ensure successful estimate completion in an effective and timely manner._x000D_
Engaging key stakeholders in the estimate planning process prior to the start of the estimate development process, improves the likelihoo
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 requirements and responsibilit

This recommended practice (RP) is intended to serve as a guideline, not a standard for owners and contractors to establish a common fram
schedules by project participants._x000D_
_x000D_
This recommended practice provides descriptions of the schedule levels methods with the intent to improve the understanding and commu
communicating project schedule plans, results and forecast or to-go data to respective stakeholders. This RP excludes turnaround projec

Scope: _x000D_
This recommended practice (RP) provides an outline and describes a format for the various elements of information that may be included in
appendix that can be used to confirm that all elements of the basis document have been considered._x000D_
_x000D_
The schedule basis is a document that defines the basis for the development of the project schedule and assists the project team and stake
document may accompany the submittal of the project baseline schedule._x000D_
_x000D_
The schedule basis further substantiates the confidence and degree of completeness of the project schedule in order to support change ma
_x000D_
Purpose: _x000D_
This AACE International recommended practice is intended to provide a guideline, not to establish a standard for documenting the schedule
guidelines may be applicable to many other types of projects. The focus of this recommended practice is on documenting the necessary ele
_x000D_
Many project individuals and groups contribute to the planning and development of the project schedule. By documenting the schedule bas
management navigation tool to guide the project team toward successful project completion. The schedule basis also is an important docum
_x000D_
Background: _x000D_
The requirement to document the basis of the schedule has been an established procedure for several years with many large corporations,

This recommended practice (RP) to project planning provides guidelines developed primarily for engineering and capital construction projec
_x000D_
AACE International Recommended Practices are intended to provide guidelines, not to establish standards. This recommended practice is in
_x000D_
This recommended practice is intended to focus on the elements of project planning: who, what, where, when, and how. It also focuses on t
actions required by the engineering and construction project team AFTER the development of the clients business requirements, business

Scope: _x000D_
This Recommended Practice (RP) of AACE International defines the expectations, requirements, and general principles of practice for estima
framework and provides a foundation for, but does not define specific contingency estimating methods that will be covered by other RPs._x
_x000D_
This RP does not address the general risk management quantification steps as might be used for screening or ranking risks in terms of th
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines (i.e., not a standard) for contingency estimating that most practitioners would consider to be good
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 is no one best way to quantify r

Scope: _x000D_
This Recommended Practice (RP) of AACE International describes the process known as range estimating, a methodology to determine the
defined in RP 10S-90). The RP provides the necessary guidelines for properly applying range estimating and Monte Carlo analysis to determ
_x000D_
The RP does not recommend any particular software. Rather it describes the factors that the analyst must consider when using risk analysis
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines (i.e., not a standard) for risk analysis using range estimating that most practitioners would conside
_x000D_
This RP is also intended to improve communication as to what the practice called range estimating is. Many of the methods found in indu
_x000D_
Background: _x000D_
This RP is new. It is based upon the successful efforts of many companies to evaluate project risk and contingency using the range estimati
significant misstatements of risk and opportunities and of the amount of required contingency. In the great majority of cases, contingency a
_x000D_
It is AACEs recommended practice that whenever the term risk is used, that the terms meaning be clearly defined for the purposes at ha
its probability of occurrence", i.e, "upside uncertainty." The range estimating process for risk analysis quantifies the impact of uncertainty, i

Scope: _x000D_
This recommended practice (RP) of AACE International (AACE) defines general practices and considerations for risk analysis and estimating
estimate contingency based on risk parameters (e.g. level of scope definition, process complexity, etc.). This RP includes practices for deve
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines (i.e., not a standard) for contingency estimating that most practitioners would consider to be good
quantification methods for their situation. This RP does not address management of contingency once it is determined._x000D_
_x000D_
While this RP is relatively short, it incorporates a lot of information by reference and it addresses a complex research and empirically based
_x000D_
Background: _x000D_
This RP is based on over 40 years of research, development, and practice. The development and use of parametric risk analysis and conting
phase-gate processes) and scope definition maturity matrices such as those included in AACEs recommended practice for cost estimate an
_x000D_
Before the above were accepted as best practices, experts first had to prove their value to project outcomes. They did this by studying actu
the pioneering work of the late John Hackney, followed by Edward Merrow, et al. at the RAND Institute, and Steven Trost, et al. for the Const
reading for parametric method practitioners._x000D_
_x000D_
It is AACEs recommended practice that whenever the term risk is used, that the terms meaning be clearly defined for the purposes at ha

This recommended practice (RP) is an addendum to the RP 42R-08 titled Risk Analysis and Contingency Determination Using Parametric Es
and developmental resources; prior to their use for actual risk analysis and contingency estimating, users must study the reference source
_x000D_
This RP summarizes three landmark empirically-based models; the Hackney model, first presented in John Hackneys 1965 text Control an
The RAND construction schedule model is from 1986 research by Christopher Myers et al. building on the 1981 cost research. These models
present similar empirical and quantitative analysis of the reasons for inaccurate estimates of capital costs and schedule duration and provid
little consensus about the relative contribution of various risk factors. Therefore, the authors of the source documents measured the factors
management phase-gate scope development systems (i.e., these studies are a basis of AACEs RP on classification of cost estimates; RP 18
_x000D_
While this document attempts to summarize the basis of the models, it is highly recommended that users review the source documents bef

Scope: _x000D_
This recommended practice (RP) of AACE International (AACE) defines general practices and considerations for risk analysis and estimating
where it is used in a somewhat different manner for risk screening. This RP is limited to estimating cost contingency; RP 65R-11, Integrated
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not standards, for contingency estimating that most practitioners would consider to be good prac
their situation. While integrated cost and schedule methods are generally recommended (e.g., 65R-11, Integrated Cost and Schedule Risk A
method will be applied for schedule contingency determination (for example, the schedule aspects of CPM-based methods as in 57R-09).

This recommended practice (RP) is intended to serve as a guideline, not establish a standard for schedule claims protection. The RP is inten
items to consider when creating and maintaining a critical path method (CPM) schedule in order to be prepared for potential delay claims. T
schedule, plus good practices related to the management and control of the schedule throughout the project.

This recommended practice (RP) is intended to serve as a guideline, not a standard. As a recommended practice of AACE International, the
_x000D_
Project cost estimating requires knowledge of all elements of cost from project conception to completion. This includes: direct material and
_x000D_
Purpose:_x000D_
The RP highlights the necessary skills and knowledge of a cost estimator from a high level viewpoint. It identifies competencies for a projec
_x000D_
This RP is aligned with RP 11R-88, Required Skills and Knowledge of a Cost Engineer and the Total Cost Management Framework.

As a recommended practice (RP) of AACE International, the Cost Estimate Classification System provides guidelines for applying the genera
generic project scope definition maturity and quality matrix, which can be applied across a wide variety of process industries._x000D_
_x000D_
This addendum to the generic recommended practice provides guidelines for applying the principles of estimate classification specifically to
a section that further defines classification concepts as they apply to the mining industries_x000D_
a section on the geopolitical nature and investment regulation of mining projects that impact on the estimating process and its basis defin
a chart that maps the extent and maturity of estimate input information (project definition deliverables) against the class of estimate._x0
_x000D_
As with the generic RP, the intent of this addendum is to improve communications among all of the stakeholders involved with preparing, e
_x000D_
The overall purpose of this recommended practice is to provide the mining and mineral processing industry definition deliverable maturity m
estimate accuracy range is driven by many other variables and risks, so the maturity and quality of the scope definition available at the tim
_x000D_
It is understood that each enterprise may have its own project and estimating processes and terminology, and may classify estimates in pa
own processes and standards in the light of generallyaccepted cost engineering practice._x000D_
_x000D_
As a final note regarding purpose, users must be aware of the industrys well documented history of challenges with overruns of feasibility

This recommended practice (RP) is intended to serve as a guideline, not establish a standard for schedule constructability reviews. This rec
suggested review process for the construction project schedule. This RP was written as a stand alone document however it can be used as

Purpose:_x000D_
This recommended practice (RP) for Identifying the Critical Path is intended to serve as a guideline and a resource, not to establish a standa
assessment. Such a determination is a part of the total cost management (TCM) project planning, scheduling forecasting, and change mana
_x000D_
Overview:_x000D_
This RP focuses on the types of prospective analyses performed in real-time while the project is underway, the advantages and the limitatio
recommended practices discuss analysis of schedule trends and the issues involved with plan changes intended to modify the critical path.
_x000D_
The work breakdown structure (WBS) is used to break down (or decompose) a project into all component activities necessary to deliver a co
calculation determines the earliest time that an activity can start in a calculated forward pass through the network. The latest time that a
_x000D_
There are various accepted methods for determining the critical path. This RP describes four such CPM methods and explains the calculatio
_x000D_
This RP also discusses the analysis of the output of a CPM calculation. There is no absolute standard or definition of proper CPM calculatio
the methods and algorithms used by the various software platforms in producing the CPM calculations._x000D_
_x000D_
Different CPM software products can produce different calculation results when applied to the same schedule. A project scheduler must und
the same schedule logic. This RP provides an analysis of the output and identifies the strengths and weaknesses of the processes used to o
_x000D_
This RP acknowledges that identification of the critical path is likely made via various software products. Specific software is identified in thi
References to other software platforms may be added to this RP as they become available.

This Recommended Practice for Time Impact Analysis (TIA) is intended to provide a guideline, not to establish a standard. This recommende
applied on a variety of project types, the practice is generally used as part of the Total Cost Management (TCM) change management and fo
_x000D_
This recommended practice focuses on the basic elements necessary to perform a Time Impact Analysis (TIA.) Necessary considerations an
practice is not recommended for a retrospective (hindsight or forensic) view taken after a significant passage of time since the delay event.
_x000D_
This TIA practice concerns itself with time aspects, not cost aspects of projects. The time impact must be quantified prior to determining an
Separating time analysis from cost analysis makes TIA inherently easier to accomplish and accept contractually; eliminating the cost-driven
_x000D_
A TIA may be performed to evaluate the potential or most likely results of an unplanned event. This event may be either schedule accelerat

This Recommended Practice for Schedule Update Review is intended to provide a guideline, not to establish a standard. As a recommended
recommended practice is associated with the Total Cost Management (TCM) progress and performance measurement, and change manage
_x000D_
This recommended practice provides guidelines to assist construction entities submitting the schedule updates (the contractor) and the en
recommended process to be followed by the schedule reviewer (reviewer.) Overall these three participants are responsible for the complete
_x000D_
A schedule update occurs when a contractor assesses the status of the project that they are currently working on, enters that status into a
projects require them. They are a vital medium of communication from the contractor to the owner about project status, completed work to
_x000D_
The schedule update should be a reflection of the contractors intent to reach project completion. Because of this, it is created and updated
honor this basic procedure. Acceptance first requires reaching agreement on the project status._x000D_
_x000D_
Reaching agreement on the status of the project schedule is often difficult, frequently requiring negotiation and perseverance. The success
projects. A lack of timely agreement on the project schedule status could result in contractor acceleration, cost overruns, late project delive
_x000D_
Assessment of the impacts of trends, deviations, changes, etc. on project schedules usually cannot be made without agreement on schedu
contractor and owner are in agreement on approval of the schedule submittal.

This recommended practice (RP) for recovery scheduling is intended to provide a guideline, not to establish a standard. As a recommended
forecasts late completion. _x000D_
_x000D_
This recommended practice provides guidelines to assist construction entities submitting the recovery schedule (the contractor) and the en
and/or construction manager. In this RP, the use of the term contractor does not indicate whether it is a prime contractor or subcontracto
a whole._x000D_
_x000D_
Progress on a project does not always proceed as planned. Occasionally, the project schedule may indicate that the project is behind sched
contrary, the contractor is normally entitled to complete late, provided that compensating damages (if any) are paid at the appropriate time
_x000D_
Many contracts limit the amount of time that the project schedule may indicate as the current prediction of project completion beyond requ
to the needed date. In addition, the owner may decide to simply direct the contractor to recover lost time even if such a clause does not ex
_x000D_
If the owner decides to demand a recovery schedule, care should be taken to ensure that the owner has not ignored, delayed, or rejected le
owner is at risk when requiring a recovery schedule. The issuance of legitimate time extensions on a project, provided in a timely manner a
of claims._x000D_
_x000D_
Once directed to recover lost time, the contractor is normally required to create and submit a schedule plan that describes how this recover
contracts for large projects. They are important as a planning tool as well as a vital medium of communication from the contractor to the ow
_x000D_
There is no industry established protocol for the best way to recover a schedule, and the different parties involved normally have different m
least cost solutions with reduced conflict, and suggestions to be used whether updating or reviewing a schedule.

This recommended practice (RP) for analyzing S-curves is intended to serve as a guideline, not to establish a standard. As a recommended
_x000D_
S-curves are usually developed by a project scheduler or cost engineer and can be applied on a variety of project types. The product is gen
_x000D_
The RP provides descriptions of S-curves with the intent to improve understanding and communication among project participants and stak
information is maintained throughout the duration of the project.

As a recommended practice of AACE International, the Cost Estimate Classification System provides guidelines for applying the general prin
project scope definition maturity and quality matrix, which can be applied across a wide variety of construction industries._x000D_
_x000D_
This addendum to the generic recommended practice (17R-97) provides guidelines for applying the principles of estimate classification spe
_x000D_
a section that further defines classification concepts as they apply to the building and general construction industries;_x000D_
a chart that maps the extent and maturity of estimate input information (project definition deliverables) against the class of estimate._x0
_x000D_
As with the generic recommended practice, the intent of this addendum is to improve communications among all of the stakeholders involv
_x000D_
The overall purpose of this recommended practice is to provide the building and general construction industry definition deliverable maturi
estimate accuracy range is driven by many other variables and risks, so the maturity and quality of the scope definition available at the tim
_x000D_
This document is intended to provide a guideline, not a standard. It is understood that each enterprise may have its own project and estima
against. This addendum should allow each user to better assess, define, and communicate their own processes and standards in the light o

This recommended practice (RP) of AACE International defines the integrated analysis of schedule and cost risk to estimate the appropriate
cost, some of which are risks to schedule, so that risk mitigation may be conducted in a cost-effective way, scatter diagrams of time-cost pa
_x000D_
The methods presented in the RP are based on integrating the cost estimate with the project schedule by resource-loading and costing the
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 detailed schedule and understanding
that do not affect the contractor as risks. Also, the contractor will not know about some of the owners risk, such as having insufficient reso
_x000D_
This RP is consistent with the Total Cost Management (TCM) Framework Section 7.6 Risk Management. In particular, the entry in the TCM Se
approach, starting with the RP section Simulating Using Risks as Drivers and illustrating the method in the case study.

This recommended practice (RP) of AACE International defines basic principles and methodological building blocks for estimating escalation
RPs are expected to cover methods that do not involve indices, that cover specific examples of fully elaborated methodologies for specific p
focus._x000D_
_x000D_
Escalation estimating is an element of both the cost estimating and risk management processes. Like other risks escalation is amenable to
applicable to all classification of estimates. The examples in the RP emphasize capital cost estimating, but the principles apply equally to op

As identified in the AACE International Recommended Practice No. 18R-97 Cost Estimate Classification System As Applied in Engineering,
_x000D_
Factored estimating techniques are proven to be reliable methods in the preparation of conceptual estimates (Class 5 or 4 based on block fl
design related, parameters. The process industry being equipment-centric and process equipment being the cost driver serves as the key in
_x000D_
This recommended practice outlines the common methodologies, techniques and data used to prepare factored capital cost estimates in th
used in the estimating process. _x000D_
_x000D_
All data presented in this document is only for illustrative purposes to demonstrate principles. Although the data has been derived from ind

This recommended practice is intended to serve as a guideline, not a standard. As a recommended practice of AACE International, the inten
management of a project controls plan. This deliverable can be included as part of an overall project execution plan (PEP), or considered a s
_x000D_
The project controls plan describes specific processes, procedures, tools and systems that guide and support effective project control. The p
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 plan that most practitioners would co
_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, execute and control the work. For
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 members._x000D_
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 delivery of the project. The time invest
project delivery risk. Therefore, any consideration not to implement the project controls plan in whole or portions of introduces a level of ris

This recommended practice (RP) for schedule design is intended to provide a guideline, not to establish a standard. As a recommended pra
_x000D_
This recommended practice is oriented to critical path method (CPM) schedule design. This recommended practice does not address sched
design is necessary before a good schedule development process can progress effectively.

Scope: _x000D_
This recommended practice (RP) of AACE International defines the expectations, requirements, and practices for identifying and qualitative
brainstorming, interviews, and checklists. It also covers documentation for and the deliverables from the process step (e.g., risk register). It
_x000D_
In TCM, the risk management process is applied in the strategic asset management and project control processes. In the strategic arena, th
conditions, plans, deliverables, and events affecting a defined project scope while strategic risks remain. This RP is intended to be generic t
project scope._x000D_
_x000D_
Risk identification may require skills and knowledge of behavioral psychology because methods such as brainstorming and Delphi must dea
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not a standard, for developing a process to identify project risks and perform qualitative risk analy
management process provides an opportunity for all stakeholders and contracting parties to work together and manage project risk for the
_x000D_
This RP outlines the processes and practices but is not a detailed how-to in each case. In that respect it will most benefit those that are ne

Scope: _x000D_
This recommended practice (RP) of AACE International defines the expectations, requirements, and practices for risk treatment. This RP foll
were not deem acceptable in the qualitative analysis screening step. It expands on TCM Framework section 7.6.2.3 Risk Treatment and lead
_x000D_
In TCM, the risk management process is applied in the strategic asset management, as defined in RP 10S-90, Cost Engineering Terminology
project control, the risk treatment focus is more on tactical refinements (per TCM 3.3.1.4 - identify creative alternative solutions, leveraging
scope._x000D_
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not a standard, for including risk management during the planning of a project or asset managem
_x000D_
This RP will outline the processes and practices but is not a detailed how-to. In that respect it will most benefit those that are new to risk m

This recommended practice (RP) of AACE International defines general practices and considerations for the various aspects of conducting a
methodology, but is an extension of other RPs that present CPM-based approaches to schedule risk analysis and contingency estimating. Th
_x000D_
A quantitative schedule risk analysis is an important aspect of risk management on a project. It can help project teams understand how pro
but can also be used during project execution to assess the current status of the project schedule risks._x000D_
_x000D_
Most schedule risk analyses utilize a CPM network as the base tool for conducting a Monte Carlo type simulation of project schedule variabi
ways, depending on the software used and user preference. Regardless of how the risks are linked to activities in the software, the analysis
are key to developing appropriate risk treatment plans, contingency estimates, and making well supported value adding project decisions._
_x000D_
This RP is applicable to any industry or project where the CPM approach is used. It addresses considerations for risk analysis as they relate

Scope: _x000D_
This recommended practice (RP) of AACE International (AACE) defines general practices and considerations for integrated cost and schedul
_x000D_
Purpose: _x000D_
This RP is intended to provide guidelines, not standards, for contingency estimating that most practitioners would consider to be good prac
their situation._x000D_
_x000D_
This RP is an extension of 44R08, Risk Analysis and Contingency Determination Using Expected Value, that addresses using expected valu
methods.

Scope: _x000D_
This recommended practice (RP) of AACE International provides guidance for selecting probability distribution functions (PDFs) for use in pr
risks. While AACE's definition of risk is fully defined elsewhere, this RP uses the term risk to 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 disadvantages for use in typical pro
about a population or statistical analysis of empirical data. In that regard, this RP does not cover the topic of curve fitting or statistical analy
understand and communicate. It does not cover methods to elicit these opinions and perceptions.

This recommended practice (RP) of AACE International defines the contract risk allocation principles as applied in engineering, procuremen
focuses on construction; however, the principles apply to contracts for any element of an EPC project._x000D_
_x000D_
This RP is intended to provide guidelines for making equitable contract risk allocations that reduce the potential for disputes and enhance t
_x000D_
This RP summarizes and clarifies contract risk allocation practices in the context of the TCM Framework and risk management processes. It

This recommended practice (RP) of AACE International defines basic principles and methodological building blocks for estimating escalation
probabilistic and scenario/sensitivity viewpoint. This RP will guide practitioners in developing or selecting appropriate methods for their defi
familiar with Monte Carlo simulation as typically applied in spreadsheet applications._x000D_
_x000D_
Escalation estimating is an element of both the cost estimating and risk management processes. Like other risks, escalation is amenable to
applicable to all classes of estimates[2]. Escalation uncertainty is partly driven by schedule risk; therefore this RP also references AACEs RP
While a model such as that covered in this RP could be used for schedule optimization in consideration of escalation, optimization is not cov
_x000D_
As with RP 58R-10, Escalation Estimating Principles and Methods Using Indices, this RP recommends segregating escalation versus exchang

As a recommended practice of AACE International, the Cost Estimate Classification System provides guidelines for applying the general prin
project scope definition maturity and quality of inputs matrix, which can be applied across the hydropower industry._x000D_
_x000D_
This addendum to the generic recommended practice (17R-97) provides guidelines for applying the principles of estimate classification spe
supplements the generic recommended practice by providing:_x000D_
_x000D_
a section that further defines classification concepts as they apply to the hydropower industry and their unique differences to other indus
a section on the regulatory requirements and resulting impacts that are specific to hydropower projects_x000D_
a chart that maps the extent and maturity of estimate input information (project definition deliverables) against the class of estimate._x0
_x000D_
As with the generic recommended practice, the intent of this addendum is to improve communications and consensus among all of the stak
_x000D_
The overall purpose of this recommended practice is to provide the hydropower industry with a definition deliverable maturity matrix which
estimate._x000D_
_x000D_
The estimate accuracy range is driven by many other variables and risks, so the maturity and quality of the scope definition available at th
_x000D_
This document is intended to provide a general guideline, not a standard. It is understood that each enterprise may have its own project an
of comparison. This RP should allow each user to better assess, define, and communicate their established and developed procedures and

This recommended practice (RP) describes schedule contingency implementation and schedule risk management techniques to consider w
engineering, procurement and construction project schedules._x000D_
_x000D_
Although this RP was written as a stand-alone document it can be used as a companion with the AACE recommended practices related to s
_x000D_
There are a wide range of opinions regarding whether or not to allow the use of schedule contingency. This RP reflects the general consensu
_x000D_
Because the application of schedule contingency is not an area of generally accepted practice, this RP is focused on describing the schedul
excludes the detailed procedure for managing contingency through change management and other project cost/schedule control methods.
_x000D_
This RP describes guidelines for implementing schedule contingency as part of the overall capital project risk management process when sc
the project team should plan the methods to establish time contingency in the project schedule logic, and describe these procedures in the

This recommended practice (RP) is intended to serve as a guideline, not a standard. As a recommended practice of AACE International, the
outline for its study guide._x000D_
_x000D_
Decision and risk management (DRM) requires knowledge ranging from analytical (e.g., statistics and modeling) to socio/psychological (e.g
the need to make some decisions, and interfaces with all the associated disciplines working in a TCM process.

This recommended practice (RP) of AACE International defines practices for developing and implementing a risk management plan for any
assess, treat, and control risks over the project life cycle.) It is recommended that the risk management plan be part of an overall project ex
_x000D_
The risk management plan describes specific processes, procedures, organization, tools and systems that guide and support effective risk m
_x000D_
This RP is intended to provide guidelines (i.e., not a standard) for developing a project risk management plan. This will provide a basis for w

ensuring risk management objectives are addressed for all stakeholder and project requirements_x000D_

implementing an integrated set of work processes, procedures, and applications to plan, identify, analyze, evaluate, treat, and monito

implementing an organizations integrated suite of risk management applications (tools and systems)_x000D_

identifying organizational roles, responsibilities, and accountabilities with respect to risk management_x000D_

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 project. _x000D_
_x000D_
According to TCM, the risk management plan must describe what the project or asset management team recognizes as being the risk man
the project.

This recommended practice (RP) provides principles and key attributes of construction project labor productivity norms or reference bases w
Labor resource requirements are a key element of project estimates, schedules, resource 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 purpose is to provide logical, reliably
understood that every organizations needs differ and there is no single best labor norm and no standard cross-labor norms set of adjustme
_x000D_
Labor hours used in estimates and other tasks, and the labor norms they are based on, must consider issues that affect productivity such a
costing or pricing of labor; it only addresses the basis of hours. It also does not address contract forms.

AACE Internationals Total Cost Management (TCM) Framework identifies a basis of estimate (BOE) document as a required component of a
development, maintenance & support, infrastructure, research & development, etc.)._x000D_
_x000D_
This document is based upon AACE International Recommended Practice 34R-05, Basis of Estimate [1]. It identifies a basis of estimate (BOE
_x000D_
In the TCM Framework, the BOE is characterized as the one deliverable that defines the scope of the engagement and ultimately becomes t
and assess the estimate, independent of any other supporting documentation. A well-written BOE achieves those goals by clearly and conc
standard practices. For software services the effort expended is the main driver for cost and duration. In addition the BOE is a documented
_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 scope, quality and duration as it relat
Provide a record of all the hypothesis and assumptions taken into account for deriving the BOE._x000D_
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 control._x000D_
Provide the historical relationships between baselined estimates throughout the project lifecycle._x000D_
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 estimates employ the same pro
estimate.

This recommended practice (RP) describes the definition, purpose, management, and control of schedule and cost reserves on projects bein
United States government. This includes contingency, management reserve (MR), schedule margin (SM), undistributed budget (UB), and au
748 standard. It is intended to provide general guidelines from the owner and contractor perspectives. As with all AACE International recom
_x000D_
This RP starts with contingency as defined in common usage in RP 10S-90, Cost Engineering Terminology. It specifically provides guidance r
components of the contract budget baseline (CBB), and may be used when project management consistent with EVMS tenets is implement
_x000D_
In this RP the cost contingencies are mitigated through the use of management reserve and schedule contingencies in schedule margin. Als
_x000D_
This RP covers the scope of ANSI EIA-748 Guidelines 14 and 15 entirely and components of ANSI EIA-748 Guidelines 8, 28, 29, 30 and 32 re

This recommended practice (RP) for baseline schedule review addresses two aspects of the schedule development process. First, it is inten
Second, and the focus of this RP, it provides guidelines for the reviewing scheduler to evaluate that baseline schedule for acceptance by th
_x000D_
The accepted initial schedule is often referred to as the baseline schedule. The baseline schedule establishes the activity dates (and possib
RP is different from the same term used by several software companies to indicate any saved copy 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 person (reviewer) who receives the su
contractors, subcontractors, or a project manager acting as the owners representative._x000D_
_x000D_
Most contracts require the contractor to submit a baseline schedule. The baseline schedule is a model of the contractors project execution
assumed that the schedule is originally created and updated by the contractor, however, the guidelines may apply to other contractual rela
_x000D_
Reaching agreement on a baseline schedule is often difficult, frequently requiring team effort, negotiation, and perseverance. During the in
schedule. A lack of timely agreement on the acceptance of a baseline schedule can result in confusion, disagreements, loss of productivity,
_x000D_
This recommended practice is intended to address the evaluation of critical path method (CPM) original baseline schedules. This RP does no
_x000D_
The focus of a baseline review is on the overall quality and completeness of the original project schedule and overall plan; it is not an asses

Inclusion of the entire project scope. _x000D_

Sequence and work flow._x000D_

Constructability._x000D_

Timing and phasing._x000D_

Adherence to legal and contractual requirements._x000D_

Unambiguous and clear descriptions of the work._x000D_

Resource usage and balance._x000D_

Level of detail._x000D_

Design and coding of activities and project organization [i.e. organizational breakdown structure (OBS) and work breakdown structure

Highlighting key or critical areas of ris

This recommended practice (RP) describes the purpose, application, measurement and control of level of effort (LOE) work in projects that o
_x000D_
This RP is intended to provide guidance for planning, managing and reporting performance of LOE tasks that most EVM practitioners would
planning projects and managing and measuring project performance. It is also considered to be beneficial to EVM analysts who want a clea
_x000D_
This RP is aligned with the TCM Framework, as well as the American National Standards Institute (ANSI) Electronics Industries Alliance (EIA)
explanation of the intent and application of LOE that is not contained in the ANSI EIA-748 standard and the National Defense Industries Ass
_x000D_
This document is not intended to be a standard, but provides further clarification of recommended EVM practices as they apply to planning

This recommended practice (RP) explains what an estimate at completion (EAC) is, and considerations to use when developing an EAC for b
_x000D_
This RP is aligned with the Total Cost Management Framework, as well as the American National Standards Institute (ANSI) Electronics Indus
_x000D_
This document provides additional details that are not included in the ANSI EIA-748 standard such as the use of estimated completion date
and earned schedule (ES). As with all AACE International recommended practices, this document is not intended to be a standard, rather it
_x000D_
This RP will address the fundamental attributes used to develop an EAC or forecast, both from a cost perspective and from a schedule persp

This recommended practice (RP) is intended to serve as a guideline, not a standard. As a recommended practice of AACE International, the
for its study guide._x000D_
_x000D_
EVM integrates scope, schedule, and cost along with budget and performance measurement within a project framework. It is a method for p
_x000D_
The RP highlights the necessary skills and knowledge of EVM. It identifies competencies for an EVM practitioner, across any industry, portfo
_x000D_
This RP is aligned with RP 11R-88, Required Skills and Knowledge of Cost Engineering and the Total Cost Management (TCM) Framework, as

This recommended practice (RP) applies to contracts employing the American National Standards Institute (ANSI) Electronics Industries Alli
in accordance with the ANSI EIA-748 earned value management system (EVMS) standard. ANSI EIA-748 contains 32 principles that are inter

This recommended practice (RP) describes the purpose, management, and control of an organizational breakdown structure (OBS) and resp
_x000D_
This RP provides guidance regarding the use of an OBS and RAM on projects. This RP defines the purposes of and typical examples for the O
_x000D_
The intent of the RP is to document what most practitioners would consider to be good practices that can be relied on and that they would
_x000D_
This RP is aligned with the Total Cost Management Framework, as well as the American National Standards Institute (ANSI) Electronics Indus

This recommended practice (RP) of AACE International defines the use of decision trees in evaluation of alternatives around project strategy
make. _x000D_
_x000D_
The decision tree technique can be applied to many different uncertain situations. For example: _x000D_

Distinguishing the costs or benefits of using a low-price bidder whn delivery time and quality are uncertain._x000D_

The relative costs or benefits of adopting a state-of-the-art technology or staying with the proven technology._x000D_

The relative attractiveness of building a greenfield plant or retrofitting an existing plant._x000D_

_x000D_
Decision tree techniques involve determining the objective (e.g., maximizing profit, minimizing cost), specifying the objective (e.g., choosin
and the probabilities of specific uncertain outcomes are key data inputs into the decision and are applied to the decision tree model._x000D
_x000D_
This recommended practice shows the application of decision trees for two types of organizations: one is risk neutral and the other is risk a
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 hallmark of a risk-neutral organization.

Maximize expected utility based on the expected value a non-linear function of monetary value, which is the appropriate measure of m
_x000D_
The results (e.g., which contractor to choose) are examined using sensitivity analysis to decide whether it is worth gathering more data sin
_x000D_
Finally, continuous distributions of the uncertain variables usually approximate reality better than selecting and representing alternative ou

As a recommended practice (RP) of AACE International, the Cost Estimate Classification System provides guidelines for applying the genera
generic project scope definition maturity and quality matrix, which can be applied across a wide variety of process industries._x000D_
_x000D_
This addendum to the generic recommended practice (17R97) [2] provides guidelines for applying the principles of estimate classification
A section that further defines classification concepts as they apply to the petroleum exploration and production industry._x000D_
A section on the geopolitical nature and investment regulation of petroleum exploration and production projects that impact the estimatin
A chart that maps the extent and maturity of estimate input information (project definition deliverables) against the class of estimate._x0
_x000D_
As with the generic RP, the intent of this addendum is to improve communications among all of the stakeholders involved with preparing, e
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The overall purpose of this recommended practice is to provide the petroleum exploration and production industry a project definition deliv
estimate. The estimate accuracy range is driven by many other variables and risks, so the maturity and quality of the scope definition avail
_x000D_
This document is intended to provide a guideline, not a standard. It is understood that each enterprise may have its own project and estima
against. This addendum should allow each user to better assess, define, and communicate their own processes and standards in the light o
_x000D_
As a final note regarding purpose, users must be aware of the industrys well documented history of challenges with overruns of budget au