AACE International

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cost

Since 1956, AACE International, the Association for the Advancement of Cost Engineering, has provided its members with the resources they need to enhance their performance and ensure continued growth and success. With about 6,000 members world-wide, AACE International serves cost management professionals: cost managers and engineers, project managers, planners and schedulers, estimators and bidders, and value engineers. AACE International has members in 78 countries and currently includes 70 local sections.

models

AACE International has developed some interactive Cost Estimating models, that are intended to demonstrate some ideas behind various estimating methodologies, and give users a "hands on" feel for how a particular method works.
Online Cost Model: Parametric Cost Estimating Model for Buildings
This model was developed in JavaScript optimized for NetScape 3.0. If you are using an older version of NetScape you may wish to consider upgrading to a more recent version. MS Internet Explorer 3.0 should work fine, however some users have reported a large delay (roughly 15-45 seconds) in displaying the model calculations (results).

Cost Model for Download: Estimate Preparation Cost/Schedule Calculator

[Filename: ESTCALC.XLS, Format: MS Excel, Size: 20kb] Only includes cost and time for the cost estimating function - does not include costs for the project team or engineering to develop the deliverables that define the project scope and form the project estimate basis. Note: this model is provided as an educational example of technology developed and used by cost engineers. Use at your own risk.

professional

practice

guides

The AACE International Professional Practice Guides (PPGs) are reference books containing the most worthwhile existing contributions by AACE members and committees to the advancement of total cost management. They are intended to be comprehensive, well organized, and timely. PPG content consists of selected Cost Engineering articles, AACE International Transactions papers, and other previously published documents to which AACE has rights. Unlike the Recommended Practices and Standards (RPS), the PPGs do not necessarily reflect a consensus of AACE membership. For an up-to-date listing of the PPG's currently available (and for ordering information) please visit the Bookstore recommended practices & standards

The AACE International Recommended Practices and Standards (RPS) are intended to be the main technical foundation of AACE Internationals educational and certification products and services. The RPS is a series of documents that contain valuable reference information that has been subject to a rigorous review process and recommended for use by a consensus of AACE International members and approved by the AACE

International Technical Board. To purchase a copy of the RPS, please visit the Bookstore. To date, AACE International's RPS includes the following documents:
Standard Cost Engineering Terminology
AACE Standard No. 10S-90

Required Skills and Knowledge of a Cost Engineer

AACE Recommended Practice No. 11R-88

Model Master's Degree Program with Emphasis in Cost Engineering

AACE Recommended Practice No. 12R-89

Standard Method for Determining Building Area

AACE Standard No. 13S-90

Roles and Duties of a Planning and Scheduling Engineer

AACE Recommended Practice No. 14R-90

Profitability Methods
AACE Recommended Practice No. 15R-81

Conducting Technical and Economic Evaluations in the Process and Utility Industries
AACE Recommended Practice No. 16R-90

Cost Estimate Classification System

AACE International Recommended Practice No. 17R-97

Cost Estimate Classification System - As Applied in Engineering, Procurement, and Construction for the Process Industries
AACE International Recommended Practice No. 18R-97 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.

Estimate Preparation Costs in the Process Industries

AACE International Recommended Practice No. 19R-97 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 Internationals Recommended Practice 18R-97Cost Estimate Classification System - as Applied in Engineering, Procurement, and Construction for the Process Industries .

recommended

practices

&

standards

The AACE International Recommended Practices and Standards (RPS) are intended to be the main technical foundation of AACE Internationals educational and certification products and services. The RPS is a series of documents that contain valuable reference information that has been subject to a rigorous review process and recommended for use by a consensus of AACE International members and approved by the AACE International Technical Board. To purchase a copy of the RPS, please visit the Bookstore.

To date, AACE International's RPS includes the following documents:

Standard Cost Engineering Terminology
AACE Standard No. 10S-90

Required Skills and Knowledge of a Cost Engineer

AACE Recommended Practice No. 11R-88

Model Master's Degree Program with Emphasis in Cost Engineering

AACE Recommended Practice No. 12R-89

Standard Method for Determining Building Area

AACE Standard No. 13S-90

Roles and Duties of a Planning and Scheduling Engineer

AACE Recommended Practice No. 14R-90

Profitability Methods
AACE Recommended Practice No. 15R-81

Conducting Technical and Economic Evaluations in the Process and Utility Industries
AACE Recommended Practice No. 16R-90

Cost Estimate Classification System

AACE International Recommended Practice No. 17R-97

Cost Estimate Classification System - As Applied in Engineering, Procurement, and Construction for the Process Industries
AACE International Recommended Practice No. 18R-97 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.

Estimate Preparation Costs in the Process Industries

AACE International Recommended Practice No. 19R-97 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 Internationals Recommended Practice 18R-97Cost Estimate Classification System - as Applied in Engineering, Procurement, and Construction for the Process Industries .

cost models Parametric Cost Estimating Model For Buildings AACE International welcomes you to try out this illustrative example of a parametric cost estimating model. Before using the model, see About the Technology and About the Model sections for more information on the capabilities, scope, and limitations of the model methodology. See About the Input / Parameters for specific details concerning the input parameters that you will enter in The Model. The output/results of this model is a total building cost estimate, including architects fee, broken

down by building system in accordance with the Construction Specification Institute's Uniformat accounts.
About the Technology About the Model About the Input / Parameters About the Output / Results The Model Disclaimer Credits

About the Technology

his tool is a working example of a parametric cost model. A parametric cost estimating model is made up of one or more algorithms or cost estimating relationships (CERs) that translate technical and/or programmatic data (parameters) about a product or asset into cost results. The algorithms are commonly developed from regression analysis of historical project information, however other analytical methods such as neural networks are sometimes used. The models are very useful for cost and value evaluations early in the project life cycle when not much is known about the project scope. The models are limited in accuracy and usage due to the many assumptions built into the algorithms. Also, the validity of the model is usually limited to certain ranges of parameter input values. Due to these limitations and constraints, it is incumbent upon the user to thoroughly understand the basis of a parametric model.

About the Model

his illustrative cost model is made up of a set of algorithms -- one for each of the "systems" that make up a building and one for the architects fees to design the building. The building cost accounts shown are the major divisions of the CSI Uniformat which is commonly used for parametric building cost evaluations due to their "systems" orientation. he model is generally applicable to the typical kinds of buildings found in an industrial or commercial setting in the United States (up to 7 stories, steel or concrete structure). This includes offices, warehouses, industrial buildings, and labs. It does not apply to residential or wood construction. It does not cover buildings over 7 stories or monumental grade buildings with elaborate closures and finishes. It also does not provide for clean room conditions. The estimate does NOT include contingency. ll cost estimates should include a contingency allowance to cover for unidentified but expected cost occurences within the project scope. Contingency is usually estimated through the application of risk analysis techniques.

About the Input / Parameters

About the Output / Results

The result of this model is an approximate building cost estimate, including architects fee, broken down by building system in accordance with the Construction Specification Institute's Uniformat accounts. The costs include all labor and material as well as an allowance for contractor's overhead and profit. he results exclude the following significant items: excludes site improvements (land, landscaping, parking, utilities, etc.) excludes furnishings and production equipment excludes contingency allowance ll cost estimates should include a contingency allowance to cover unidentified but expected cost occurences within the project scope. Contingency is usually estimated through the application of risk analysis techniques. he model output is presented in a new browser window in two major sections. A tabular "chart of accounts" that is the results of the computations, and a recapitulation of the input parameters. Each execution of the model will result in a new results window, so it is possible to compare different cases on a side-by-side basis. Each window can be managed using the normal window controls of your system (close, minimize, maximize, resize).

PARAMETRIC COST ESTIMATING MODEL FOR BUILDINGS

pecify the model input parameters by completing the form below. You may also click on the "Example" button to use a generic set of parameters. If you have questions regarding the definition or use of a particular parameter, simply click on the parameter's name to view its description. After all you have entered all the input parameters, click on " Calculate" to generate the estimate (Output/Results).
RESET

INPUT PARAMETER VALUE Case Description and Remarks (Optional):

Usable Floor Area (s.f.): fg Average Floor to Floor Height 12.00 (ft.): Number of Floors: Percent of Area as Office: Percent of Area as Wet Labs: Percent of Area as Dry Labs: Percent of Area Heated: Percent of Area Cooled: Number of Building Corners: 4 Substructure Strength Index:

Superstructure Strength Index: Exterior Finish Quality/Duty Index: Interior Finish Quality/Duty Index: Mechanical Services Quality/Duty Index: Electrical Services Quality/Duty Index: Escalation Factor (1995 US$ 1.00 Base): Location Factor:

Productivity Factor:

Disclaimer
his cost model is made available as an illustrative, educational example of the types of tools and technology used in the practice of cost engineering and parametric estimating. Neither AACE International, nor its Boards, Committees, or Members guarantee or attest to the quality, accuracy, or applicability of this illustrative example nor warrant the correctness or sufficiency therein. AACE International, its Boards, Committees and Members, do hereby disclaim any responsibility or liability in connection with the use of this example or of any data or other information contained therein. In no event shall AACE International, its Boards, Committees, or Members be liable for any damages whatsoever (including, without limitation, damages for loss of business profits, business interruption, loss of business information, or other pecuniary loss arising out of the use or inability to use this example).