AACE-CEP Exam Format | AACE-CEP Course Contents | AACE-CEP Course Outline | AACE-CEP Exam Syllabus | AACE-CEP Exam Objectives

- Elements of Cost - Cost (resources, time, and cost interrelationships). - Cost dimensions (e.g., lifecycle vs. project). - Cost classifications (direct vs. indirect, fixed vs. variable, etc.). - Cost types. - Pricing concepts. - Elements of Analysis - Statistics and probability (distributions, variability, confidence levels). - Economic and financial analysis (e.g., escalation, indices, time value of money basics relevant to estimating). - Optimization and models. - Physical measurements (units, conversions). - Enabling Knowledge - Enterprise in society, people/organizations in enterprises. - Information management. - Quality management and value management. - Environmental, health, and safety (EHS) considerations. - Role of the cost estimator (communication, ethics, advising management). - General Estimating Concepts - Cost Estimating Terminology — Core definitions (e.g., estimate, estimator, scope, quantification, costing, pricing, contingency, escalation, allowance, basis of estimate). Use AACE RP 10S-90 and CEP-specific examinee definitions. - Cost Estimate Classifications — AACE's 5-class system (Class 5: conceptual/screening to Class 1: detailed/check estimate). Maturity of scope definition, end usage, methodology, and expected accuracy ranges. Industry-specific applications (process/EPC via RP 18R-97; building via RP 56R-08). - Estimate Variability — Factors affecting accuracy, reliability limitations, accuracy ranges by class. - Uncertainty — Distinction from risk; handling unknown/known-unknowns; probabilistic approaches. - Estimating Algorithms — Parametric, factored, statistical, and other mathematical models (e.g., capacity factored, equipment factored). - Code of Accounts — Work Breakdown Structure (WBS), Organization Breakdown Structure (OBS), cost coding systems (e.g., CSI for buildings, uniformat). - Historical Cost Data — Sourcing, normalization, benchmarking, databases, and use in estimating. - Estimating Processes and Practices (Step-by-step estimating workflow) - Planning the Estimate — Developing the estimate plan (scope, methodology, team, schedule). - Estimating Methodologies — Conceptual (parametric, analogous), semi-detailed, detailed (unit price, assembly, bottom-up), stochastic/probabilistic. - Quantification — Quantity take-off (QTO) principles, measurement, documentation, from drawings/specs/BIM. - Costing — Applying unit costs/resources to quantified scope (labor, material, equipment); productivity factors. - Pricing — Adjusting costs for market conditions, markups, profit, fees, business considerations (distinct from costing). - Conditioning — Adjustments for location, time (escalation), currency, site conditions, etc. (location factors, indices). - Risk Evaluation and Contingency Determination — Qualitative/quantitative risk analysis, Monte Carlo, contingency vs. management reserve, allowances. - Estimate Documentation — Basis of Estimate (BOE) per RP 34R-05; assumptions, exclusions, qualifications. - Estimate Reconciliation — Comparing alternate estimates or versions. - Estimate Review and Validation — Internal/external reviews, benchmarking, validation techniques. - Estimate Reporting — Presenting estimates (formats, communication to stakeholders). - Estimate Closeout — Lessons learned, updating historical data. - Other Estimating Issues - Bidding — Bid strategies, unbalanced bids, quotes/RFQs, subcontracting. - Budgeting — Converting estimates to control budgets; baselines. - Project and Life Cycle Costing — Capital vs. operating costs; full lifecycle considerations. - Cash Flow and Forecasting — Project cash flow curves, timing of costs. - Cost Control Baseline — Integration with scheduling and control. - Project and Product Costs — Distinctions; activity-based costing, cost of quality. - Internationalization (location factors, currency conversion, metric/SI, cultural/stakeholder issues). - Building Information Modeling (BIM) for estimating (quantity extraction, 5D BIM). - Change Order Estimating. - Stochastic Estimating Methods (advanced probabilistic). - Integrated Project Delivery, constructability, etc. - General/Foundational: - Cost Estimate, Basis of Estimate (BOE), Scope Definition, Work Breakdown Structure (WBS). - Direct/Indirect Costs, Fixed/Variable Costs, Capital/Operating Costs. - Escalation, Contingency, Allowance, Reserve. - Estimate-Specific: - Cost Estimate Classifications (Class 1–5), Estimate Accuracy Range, Maturity Level. - Quantification (take-off), Costing (resource application), Pricing (market/business adjustment). - Parametric Estimating, Factored Estimating, Unit Price, Bottom-Up, Analogous. - Conditioning (adjustments), Location Factor, Currency Conversion. - Process & Risk: - Risk Evaluation, Probabilistic Analysis, Monte Carlo Simulation. - Reconciliation, Validation, Review. - Battery Limit, Battery Limit (process plants), Gross Floor Area (GFA), etc. - Bidding terms (unbalanced bid, RFQ), Lifecycle Costing, Cash Flow, BIM integration. - The Estimating Process: Understanding the role of the estimator and the step-by-step workflow from scoping to budget hand-off. - Estimate Classification: Mastery of AACE Classes 1 through 5 (from conceptual to definitive) and the associated levels of project definition. - Direct vs. Indirect Costs: Identifying labor, material, and equipment vs. field overhead, taxes, and profit. - Quantification & Takeoff: Methods for measuring work from drawings and specifications. - Labor Productivity: Calculating man-hours, labor rates (bare vs. burdened), and productivity factors. - Battery Limit: The geographic or imaginary boundaries enclosing a specific plant or unit for estimating purposes. - Code of Accounts (COA): A systematic coding structure used to categorize and track costs. - Cost Estimate Relationship (CER): A mathematical model (parametric) that relates cost to one or more physical or functional characteristics. - Lang Factor / Hand Factor: Multipliers used to estimate total installed cost based on the cost of major equipment. - WBS (Work Breakdown Structure): A deliverable-oriented hierarchical decomposition of the work to be executed. - Parametric Estimating: Using statistical relationships and historical data to predict costs. - Internationalization: Factoring in location factors, exchange rates, and varying local labor laws. - Life Cycle Costing (LCC): Estimating total ownership costs (capital + operating + disposal). - Risk & Contingency: Techniques for determining contingency based on risk assessment (e.g., Expected Value or Monte Carlo Simulation). - Escalation: Projecting price changes over time using indices. - Accuracy vs. Contingency: Accuracy refers to the "closeness" to the final cost, while contingency is the budget added to cover "known-unknowns." - Benchmarking: Comparing practices or costs against internal/external competitive best practices. - Location Factor: A ratio used to convert costs from one geographic location to another. - Range Estimating: A risk management method that identifies the mathematical probability of a cost overrun. - Scoping: Clearly defining what is (and is not) included in the estimate to prevent "scope creep." - Bidding & Pricing: Understanding profit margins, unbalancing bids, and front-end loading. - Change Order Estimating: Managing the differences between estimating for a new project versus estimating for changes in existing work. - Estimating Database Development: How to build and maintain historical data for future use. - Cost and Schedule Integration: Ensuring the estimate aligns with the project timeline. - Addenda: Written instruments issued prior to bid opening that modify the bidding documents. - Bid Shopping: The practice (generally considered unethical) of a contractor sharing a sub-contractor's price with others to force lower bids. - Front-End Loading: Assigning higher values to work performed early in a project to improve cash flow. - Work Package: The lowest level of the WBS, where cost and duration are estimated and managed. - Technical Writing: Drafting a formal memo based on a provided scenario (e.g., justifying a contingency increase or explaining an estimate variance). - Stakeholder Management: Tailoring cost information for owners, project managers, and engineers. - Ethics: Adhering to the AACE Canons of Ethics in all professional communications.