36R-08: Development of Cost Estimate Plans - As Applied in Engineering, Procurement, and Construction for the Process IndustriesAACE International, October 10, 2019
Price: $0 (Member) / $100 (Non-Member)
1-CLICK DOWNLOAD FOR MEMBERS
This recommended practice (RP) is a guideline for the development of cost estimate preparation plans for engineering, procurement and construction (EPC) projects for the process industries. For the purposes of this document, the term “process industries” (as defined in RP 18R-97 [6]) is assumed to include firms involved with the manufacturing and production of chemicals, petrochemicals, hydrocarbon, and wastewater processing. The common thread among these industries (for the purpose of estimate classification) is their reliance on process flow diagrams (PFDs) and piping and instrument diagrams (P&IDs) as primary scope defining documents. This estimating methodology is also suitable for other equipment-centric industries such as mining process plants, power generation, pumping stations etc.
The main body of this document refers to deterministic (Class 3, 2, and 1) estimates. Conceptual (Class 5 and 4) estimates require a very different approach and are defined in Appendix I and J. These sections provide basic guidelines for the development of a basis of estimate for some of the more common methodologies used in the development of these classes of estimate. Conceptual estimating is a highly creative process, and these sections do not reflect the wide variety of possible methodologies.
The Total Cost Management (TCM) Framework [1] section 7.3.2.1, Plan for Cost Estimating and Budgeting highlights the need to develop estimate plans. This document addresses the need to develop effective estimate plans and addresses the steps before and after the “Plan for Estimating and Budgeting” step to the extent necessary for an effective estimate plan. A key principle is that the estimate provider clearly understands the various requirements that the estimate should meet when submitted to the estimate requestor.
This recommended practice (RP) is intended to provide a guideline (i.e. not a standard) for establishing and communicating how to prepare, review and approve an estimate plan. The estimate plan should be developed to be in alignment with the estimate requirements document prepared by the estimate requestor. The estimate plan should be approved by the estimate requestor before significant estimate preparation begins. After estimate completion the estimate plan is transformed into the basis of estimate.
This recommended practice (RP) is intended to provide a guideline (i.e. not a standard) for establishing and communicating how to prepare, review and approve an estimate plan, to be issued from the estimate requestor to the estimate provider. The estimate provider should prepare an estimate plan in alignment with the requirements document. The estimate plan should be approved by the estimate requestor. After estimate preparation, the estimate provider prepares the basis of estimate to provide final documentation of the cost estimate.
The main body of this document refers to deterministic (Class 3, 2, and 1) estimates. Conceptual (Class 5 and 4) estimates require a very different approach and are defined in Appendix I and J. These sections provide basic guidelines for the development of a basis of estimate for some of the more common methodologies used in the development of these classes of estimate. Conceptual estimating is a highly creative process, and these sections do not reflect the wide variety of possible methodologies.
The Total Cost Management (TCM) Framework [1] section 7.3.2.1, Plan for Cost Estimating and Budgeting highlights the need to develop estimate plans. This document addresses the need to develop effective estimate plans and addresses the steps before and after the “Plan for Estimating and Budgeting” step to the extent necessary for an effective estimate plan. A key principle is that the estimate provider clearly understands the various requirements that the estimate should meet when submitted to the estimate requestor.
This recommended practice (RP) is intended to provide a guideline (i.e. not a standard) for establishing and communicating how to prepare, review and approve an estimate plan. The estimate plan should be developed to be in alignment with the estimate requirements document prepared by the estimate requestor. The estimate plan should be approved by the estimate requestor before significant estimate preparation begins. After estimate completion the estimate plan is transformed into the basis of estimate.
This recommended practice (RP) is intended to provide a guideline (i.e. not a standard) for establishing and communicating how to prepare, review and approve an estimate plan, to be issued from the estimate requestor to the estimate provider. The estimate provider should prepare an estimate plan in alignment with the requirements document. The estimate plan should be approved by the estimate requestor. After estimate preparation, the estimate provider prepares the basis of estimate to provide final documentation of the cost estimate.
[Look Inside]