Copyright 2009 AACE, Inc.
AACE International Recommended Practices
AACE International Recommended Practice No. 36R-08
DEVELOPMENT OF COST ESTIMATE PLANS
AS APPLIED IN ENGINEERING, PROCUREMENT, AND
CONSTRUCTION FOR THE PROCESS INDUSTRIES
TCM Framework: 7.3 Cost Estimating and Budgeting
Acknowledgments:
Gregory C. Sillak (Author)
Bruce E. Bradley
Keith R. Didriksen
Fabiana Francis, PSP
Dr. Paul D. Giammalvo, CCE
Ambrish Gupta
John K. Hollmann, PE CCE CEP
Carlton W. Karlik, PE CEP
Christopher L. Kinney
Paul S. Kupakuwana
Paratharajan N. Pille
L. Ron Rowland
Terence M. Stackpole
T. Mac Sumrall, CCC
David A. Williams, CEP
Charles P. Woodward, PE CCE CEP
Joseph Yang, CCE
Nor Y. Yazid
James G. Zack, Jr. CFCC
Copyright 2009 AACE International, Inc.
AACE International Recommended Practices
AACE International Recommended Practice No. 36R-08
DEVELOPMENT OF COST ESTIMATE PLANS AS
APPLIED IN ENGINEERING, PROCUREMENT, AND
CONSTRUCTION FOR THE PROCESS INDUSTRIES
TCM Framework: Reference 7.3 Cost Estimating and Budgeting
June 12, 2009
INTRODUCTION
Purpose
This recommended practice (RP) of AACE International (AACE) is a guideline for development of cost
estimate preparation plans for engineering, procurement and construction (EPC) projects in the process
industries.
The purpose of a cost estimate preparation plan (herein referred to as "estimate plan") is to establish and
communicate how the preparation, development, review and approval of the estimate will be completed.
Background
AACE International's Total Cost Management (TCM) Framework[4] section 7.3.2.1 "Plan for Cost
Estimating and Budgeting" highlights the need to develop estimate plans. This RP delineates industry-
specific practices for development of an estimate plan as they are applied to EPC projects i