Copyright 2003 AACE, Inc.
AACE International Recommended Practices
AACE International Recommended Practice No. 19R-97
ESTIMATE PREPARATION COSTS – AS APPLIED FOR THE
PROCESS INDUSTRIES
TCM Framework: 7.3 – Cost Estimating and Budgeting
Acknowledgments:
John K. Hollmann, PE CCE (Author)
Jennifer Bates, CCE
Dorothy J. Burton
Robert C. Creese, PE CCE
Larry R. Dysert, CCC
Kenneth K. Humphreys, PE CCE
Donald F. McDonald, Jr. PE CCE
Wesley R. Querns, CCE
Don L. Short, II
James G. Zack, Jr.
Copyright 2003 AACE, Inc.
AACE International Recommended Practices
AACE International Recommended Practice No. 19R-97
ESTIMATE PREPARATION COSTS – AS APPLIED FOR
THE PROCESS INDUSTRIES
TCM Framework: 7.3 – Cost Estimating and Budgeting
June 19, 1998
PURPOSE
This Recommended Practice 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 pres