Guidelines for Preparing Cost Engineering

7/31/2019 Guidelines for Preparing Cost Engineering

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AACE INTERNATIONAL RECOMMENDED PRACTICE NO. 11R-88

REQUIRED SKILLS AND KNOWLEDGE OF A COST ENGINEERPrepared by the AACE Education Board; January 1999

SECTION 1 -- SUPPORTING SKILLS AND KNOWLEDGE

Engineering Economics Terminology Computers Statistics and Probability Optimization Productivity Management Human Relations-Behavioral Science Organizational Structures Measurements

SECTION II -- COST ESTIMATING

Estimating Basics

Contractor's Costs

Owners Costs

SECTION III -- COST CONTROL

Work Breakdown Structure and Code of Accounts

Earned Value (also Achieved and Accomplished Value)

Key Cost Control Techniques

SECTION IV -- PLANNING AND SCHEDULING

Planning Basics

Scheduling Basics

Schedule Control

SECTION V -- CONTRACT MANAGEMENT

Contracting Arrangement

Contract Administration

SECTION VI -- ECONOMIC ANALYSIS AND BUSINESS PLANNING

Budgeting and Cash Flow

Value Engineering


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AACE International Certification ExamIntroduction

Certification as a Certified Cost Consultant or Certified Cost Engineer requires passage of a written examination including preparation

and acceptance of a professional paper on a Cost Engineering subject. This document provides guidance for preparing to meet these

requirements.

The Written Examination

Exam Basis

The purpose of any professional certification or licensing program is to provide a mechanism to officially and publicly recognize thecapabilities of an individual in a professional area. Certification as a Certified Cost Consultant or Certified Cost Engineer recognized

holders of those certificates as having capabilities encompassing the functions incorporated within the definition of Cost Engineering.

Specifically:

Cost Engineering is that area of engineering practice where engineering judgment and experience are utilized in the application of

scientific principles and techniques to problems of cost estimation; cost control; business planning and management science;

profitability analysis; and project management, planning and scheduling.

It is this definition of Cost Engineering that provides the basis for certification exam design -- the exam must test proficiency across

these areas. The definition of Cost Engineering and the Required Skills and Knowledge of A Cost Engineer document are the basic

"scope" documents for the certification exam. In recognition of this, at least 70% of the questions will relate directly to the basic skills

document; the remainder will explore more advanced areas.

Exam Schedule

There is a 2nd Quarter and a 4th Quarter exam. The 2nd Quarter exam is always given on the Saturday preceding the Annual Meetingat the meeting site and then two weeks later at different sections. The 4th Quarter exam is held the first Saturday in December at

different sections. This information is updated regularly on the website at: www.aacei.org.

Exam Format

The exam is totally multiple-choice questions. Two parts are open book and two parts are closed book. The broad subject areas

included within each part are listed below. Obviously, not all subjects are covered in each exam. New exams are prepared for each

examination.

Part I (open book) - Supporting Skills and Knowledge Part III (closed book) - Project Management

Computer Operations Organizational Structures

Operations Research Management Theories, Behavioral Science, and motivational Managem

Probability and Statistics Planning and Scheduling

Basic Business and Finance Cost Management

Metric - English Conversion Quality ManagementInflation Resource Management

Productivity Management

Part II (closed book) - Cost Estimating and Control Contracting and Contract Administration

Elements of Cost Societal/Legal Issues of Management

Costing and Pricing Constructability Analysis

Capital Cost Estimating

Operating/Manufacturing Cost Part IV (open book) - Economic Analysis

Cost Indices and Escalation Factors Value Engineering

Estimating Data Sources Depreciation

Contingency Comparative Economic Studies

Budgeting and Cash Flow Profitability

Capital Equipment Purchase, Lease, and Rental Life Cycle Costs

Time Value of MoneyForecasting

Recognizing that there are many fields of interest within the profession -- Engineering, Construction, Manufacturing, Process, Mining,

Utilities, Transportation, Aerospace, Environmental and Government - you can expect questions in any of these settings. However, as

a practical matter, no one is expected to be conversant in all areas and the exam is designed to take this into account through its

multiple option format and extensive use of questions of general applicability.

Part I of the exam consists of 50 multiple-choice questions. Parts II, III and IV consist of two sections each. The first section has five

compound questions which contain 7 multiple-choice questions each. You will choose to answer only TWO of these compound

questions, resulting in answering only 14 multiple-choice questions for the first section of each part. The second section of each part

consists of 20 multiple choice questions of which all must be answered. (Sample questions attached)

Preparation Guidance


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To assist in your preparation for the exam, you should study the list of theRequired Skills and Knowledge of a Cost Engineersince it

outlines much of what you need to know. You also have a number of other options. There are training workshops:

In conjunction with the AACE Annual Meeting, a Foundations for Enhancing Competency in Cost Engineering seminar isheld. This is one of several continuing education courses available at extra cost in conjunction with the annual meeting. This

seminar is also offered in January each year at a different location.

At most annual meetings there is a Skills and Knowledge track within the Technical Program on basic or advanced subjects inCost Engineering. A typical track consists of 12-17 one-hour blocks of instruction. Attendance at any or all of these sessions

is open to any meeting registrant. Specific subjects are listed on the Technical Program and described in its accompanying

book of abstracts issued before each annual meeting.

A number of local sections of AACE sponsor formal workshops on Cost Engineering, some specifically intended to assistcandidates in exam preparation. If your section does not have such a workshop, start the ball rolling. Even if no formal

workshop is available, consider a "bootstrap" style workshop wherein you and other candidates meet regularly to teach each

other.

Then there are written reference materials. The following two publications are most recommended - all are available from AACE.

AACE International Certification Study Guide, 2nd edition. and Skills and Knowledge of Cost Engineering, 4th edition.

The following publications are also recommended:

Jelen's Cost and Optimization Engineering, 3rd edition and Project Management: A Reference for Professionals, written by R.

Kimmons and J. Lowree

There are many other publications on the market that can prove helpful also. You can find many of these by visiting AACE's website

bookstore.

The Professional Paper

The professional paper, a pass/fail component submitted as half of the examination, must be of a quality suitable for presentation at an

AACE annual, regional or section meeting; or acceptable for publication in Cost Engineering magazine. You may be able to submit a

recently published article for which you were the primary author also.

Now for specific guidance:

A common mistake among inexperienced writers is to choose too broad a subject area. A paper of 2500 words minimum isnot that long. So, chose a narrow topic area and give it good coverage.

If the paper involves a subject requiring employer review and approval, make certain your bosses know you intend to write onthe subject and get their blessing up front so you won't waste time.

Unless you are an experienced writer, you will need to allow considerable time to develop your subject into a polisheddocument - a good rule-of-thumb is to make a rough estimate of the time you think you will need and multiply by three.

Think about your paper when you're playing golf, traveling or otherwise have time just to think. You'll be surprised howideas suddenly come to you. But, make certain you have some means to jot those ideas down before you forget them.

You should expect to go through several drafts before the final one. If you or your typist have access to a modern wordprocessor, this process will be greatly simplified. After you complete each draft, set it aside for a couple days, then come

back and review it to see if it makes sense and further refine it.

Keep a copy of the latest draft in your briefcase so you can review it when traveling or at other opportune times. Of course, itis always helpful to get an outside opinion or two on the paper both for content and presentation.

Most guide books on writing will tell you to outline your subject and then expand from the outline. This is fine, but oftenleads to "writer's block" since the writer feels compelled to write the abstract, introduction, main body, etc. in sequence and

can't find the words to get started. some authors, having faced this situation, have found that the best way to get going is to

start the paper anywhere you feel comfortable, usually somewhere in the main body, and work from there. Initially, you don'teven need to document your thoughts in any logical sequence - just write them down as they come to you. With modern word

processors you can readily organize, add, delete, and move text around to provide orderly coverage. Using this approach, you

will probably find that your paper evolves to be somewhat different than originally planned. This leads to the last bit of

advice - wait until the main body is complete before writing your introduction and abstract. Had you written them first, they

probably would no longer fit the paper anyway.

The paper can be given to proctors at the time of the examination or can be mailed directly to AACE Headquarters before theexam date. Failure to submit a paper on time can result in failing the examination.


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GUIDELINES FOR PREPARING COST ENGINEERING PAPERS

Submitting a paper is an important

requirement for becoming a certified cost

consultant or certified cost engineer

(CCC/CCE). The primary purpose is to judge

the prospective certified const consultant's or

engineer's ability to communicate a

professional topic clearly and effectively.

The prospective CCC/CCE must be theprimary author (preferably the sole author) of

the paper, and the body of the paper (excluding

graphs, illustrations, tables, and appendices)

must be at least 2500 words to be acceptable.

If the paper is co-authored, it must be

accompanied by a statement from all authors

indicating that the prospective CCC/CCE has

contributed the majority of ideas and most of

the effort for the paper. Once the authorship

and length criteria are verified, the paper will

be evaluated for its qualities as a professional

document by the AACE Certification Board.

Depending on the presentation styles,

professional environment, and nature of thematerial, a paper may be composed and

organized in many different ways. The paper is

expected to be typewritten in English. If it is

written in another language, it must be

accompanied by a translation. The following

guidelines are to be used as a first

approximation and a general guideline in

compiling and editing the paper.

1.TITLE PAGEInclude: title (about 7 to 12 words), author's

ID number, date of authorship.

2. TABLE OF CONTENTSInclude: chapter title, page number, section

title, page number, subsection title, pagenumber

3.LIST OF TABLESInclude: table title, page number

4.LIST OF GRAPHS& ILLUSTRATIONS

Include: graph or illustration title, page

number

5.ABSTRACTThe abstract should be about 200 to 300

words and highlight three important facets of

the paper in three separate paragraphs.

Paragraph one: summarize introduction;

highlight the previous papers and future

possible applications of the paper; what are theareas of implementation of the ideas presented

and possible benefits of such implementation.

Paragraph two: summarize the body of the

report; specific objectives of the paper,

procedural details, topics of discussion,

methods of development, and highlights of the

results.

Paragraph three: summarize major conclu-

sions of this paper and recommendations for

future work in subject area.

11. INTRODUCTIONConsidering a broad point of view, what

are the relevance and advantages of similar

considerations to the national and/or

international economy, economy/ technology,

regional and local industries, etc.? What

prompted you to choose this specific topic?

What are the possible applications of the resultsof similar work? What are the benefits of such

implementations (about 300 words)?

Further, it may be helpful to the reader to

understand the background of the writer and

how the report evolved. Statements such as,

The author was a member of a team assigned

to study cost information flows and reporting

procedures for the ABCD Power Company.

This report is a condensed version of the study

results, will always make a good impression.

The author has drawn fully and freely on his

personal knowledge of the subject of this

dissertation obtained while per-forming the

duties of cost engineer for ACME ConstructionLtd, weakens the presentation and should be

avoided.

12.BODY OF THE PAPERDescribe the procedures for data collection,

idea development, observations, survey or

whatever forms the basis of your paper.

In your own words, present and discuss the

more interesting data pertaining to the area of

your paper. Divide all the relevant material

into logical topics and subtopics. In your own

words, discuss each topic and subtopic clearly.

All statements of fact should have a reference

number from the list of references showing

where they can be found in detail. Do not usetelegraphic language or shop talk. Demerits

will be applied to incorrect facts, improper

causes and effects, emotional statements, and

philosophical observations. If there are any

illustrations in the paper, be sure to refer to

them at the appropriate place in the text and

indicate clearly what the illustration is meant to

show.

An important facet of the paper is to

highlight your own contribution to the

organization, arrangement, and analysis of the

data. Include techniques, flow charts,

computer programs, organizational charts, and

other material that you may have developed or

modified, as part of this independent paper.

Describe all processes, procedures,

equipment, and theories very clearly. Pay

attention to spelling and syntax.

Generally, short and concise sentences and

paragraphs contribute to clarity. Using the

logical structure of your paper as a guide,

develop and label each section of the paper.

The label should describe the contents of that

segment of the paper. Further, sections should

be grouped into chapters and labeled

accordingly. For some papers it may be

appropriate to have several subsections for each

section.

6. ILLUSTRATIONS (TABLES ANDGRAPHS)

Include graphic or tabular presentation o

data, ideas, and equipment to clarify the topic

of each section of the paper. Copies o

illustrations from books and magazines should

be used only on rare occasions and then only

with the written permission of the copyrigh

owner. As a rule, graphs should be neatly

presented for viewing from the right on 8.5 x

11 inch paper. Use drafting guides for straigh

or curved lines. The page number, illustration

number, and a descriptive title of the

illustration should be placed clearly on the

page. All the necessary information to interpret

the illustration should be included on the

illustration sheet.

7. CONCLUSIONSFrom the results of the paper, what genera

comments can you make regarding suitability

of a technique, equipment, procedure, etc.?

You may cite numbers and percentages if they

have already been fully presented in the earlier

sections of the report. Where can these result

be possibly used? Based on your introduction

and data, what should one expect when

implementing your recommendations? On

which general area should follow-up work be

concentrated? Why? All conclusions should

be based on groundwork already established in

the body of the report. Do not introduce any

new material here.

8. SPECIFIC REFERENCESList articles, books, or reports that you have

read for this paper and that you believe are

specifically relevant to this paper.

9. ACKNOWLEDGEMENTSList all individuals, companies, and

agencies that have provided useful advice

service, materials, or information for

preparation of your paper.

10.APPENDICESOn rare occasions, an appendix may be

justified. This section includes data and

information important to your conclusions bu

which could detract from the free flow o

explanation of the main body of the paper

Attach to your paper any material that you fee

supports or expands your paper.

Guidelines for Preparing Cost Engineering

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