112R-20: Cost Estimate Classification System - As Applied in Maintenance Turnarounds for the Process IndustriesAACE International, March 19, 2021
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As a recommended practice (RP) of AACE International, the Cost Estimate Classification System provides guidelines for applying the general principles of estimate classification to project and maintenance turnaround cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects or turnarounds). The Cost Estimate Classification System maps the phases and stages of cost estimating together with a generic scope definition maturity and quality matrix, which can be applied across a wide variety of industries and scope content.
This recommended practice provides guidelines for applying the principles of estimate classification specifically to maintenance turnarounds for the process industries . It supplements the generic cost estimate classification RP 17R-97 by providing:
The overall purpose of this recommended practice is to provide the process industry with a turnaround definition deliverable maturity matrix that is not provided in 17R-97. It also provides an approximate representation of the relationship of preparation & planning input data and scope deliverable maturity to the estimate accuracy and methodology used to produce the cost estimate. The estimate accuracy range is 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 sole determinate of accuracy; risk analysis is required for that purpose.
This document is intended to provide a guideline, not a standard. It is understood that each enterprise may have its own project and estimating processes, terminology, and may classify estimates in other ways. This guideline provides a generic and generally acceptable classification system for the process industries that can be used as a basis to compare against. This recommended practice should allow each user to better assess, define, and communicate their own processes and standards in the light of generally accepted cost engineering practice.
This recommended practice provides guidelines for applying the principles of estimate classification specifically to maintenance turnarounds for the process industries . It supplements the generic cost estimate classification RP 17R-97 by providing:
- A section that further defines classification concepts as they apply to turnarounds in the process industries.
- A chart that maps the extent and maturity of estimate input information (turnaround preparation & planning definition deliverables) against the class of estimate.
The overall purpose of this recommended practice is to provide the process industry with a turnaround definition deliverable maturity matrix that is not provided in 17R-97. It also provides an approximate representation of the relationship of preparation & planning input data and scope deliverable maturity to the estimate accuracy and methodology used to produce the cost estimate. The estimate accuracy range is 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 sole determinate of accuracy; risk analysis is required for that purpose.
This document is intended to provide a guideline, not a standard. It is understood that each enterprise may have its own project and estimating processes, terminology, and may classify estimates in other ways. This guideline provides a generic and generally acceptable classification system for the process industries that can be used as a basis to compare against. This recommended practice should allow each user to better assess, define, and communicate their own processes and standards in the light of generally accepted cost engineering practice.
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