This recommended practice (RP) presents benchmark information on the costs to prepare project 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.

This information supports AACE International’s Recommended Practice 18R-97 entitled Cost Estimate Classification System – As Applied in Engineering, Procurement, and Construction for the Process Industries. The effort or cost to prepare a cost estimate is a secondary characteristic of a cost estimate classification.

A primary value of this recommended practice is improved understanding of the variables and trends concerning estimate preparation costs. The amount and quality of published reference data is limited, therefore, the value of the quantitative cost model presented here as a benchmark for measuring estimating performance is limited. The cost model is a good starting point for further development.