ASTM E2620-08
(Classification)Standard Classification for Program and Project Estimate Summaries
Standard Classification for Program and Project Estimate Summaries
SIGNIFICANCE AND USE
Program and project estimates are a necessary part of planning and implementing any program of work.
These estimates are used by persons involved in the planning and management of programs and projects. They are an essential part of establishing initial budgets and provide a framework for continuing updates permitting cost control through the life of a program and its various projects.
Users include owners, developers, facilities programmers, financial managers, company controllers, executives, program managers, project managers, and specialist cost planners including life cycle cost analysts.
They are also of use in risk management, and also provide a consistent list of major activity phases for use in program and project time schedules.
SCOPE
1.1 This classification establishes a classification of cost summaries for use when estimating program and project costs.
1.2 This classification can be applied to construction programs and projects that include one or more construction work projects.
1.3 This classification is not based on permanent physical elements of construction (as defined and classified in Classification E 1557 for example); rather, the classification items are cost components common to most program and project estimates.
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.
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Designation:E2620 −08
StandardClassification for
Program and Project Estimate Summaries
This standard is issued under the fixed designation E2620; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope 3. Terminology
1.1 This classification establishes a classification of cost 3.1 Definitions—For definitions of terms used in this
summaries for use when estimating program and project costs. practice, refer to Terminologies E833 and E631.
3.2 Definitions of Terms Specific to This Standard—
1.2 This classification can be applied to construction pro-
grams and projects that include one or more construction work Definitions for the terms program, project, and construction
are legion. For the purposes of this classification, the following
projects.
variations in the terms are used.
1.3 This classification is not based on permanent physical
3.2.1 construction, n—a discrete undertaking, requiring
elements of construction (as defined and classified in Classifi-
concerted effort, that has a specified end product and is
cation E1557 for example); rather, the classification items are
accomplished using finite resources.
cost components common to most program and project esti-
3.2.2 construction layer, n—contains those activities and
mates.
associated costs required to manage and deliver a constructed
1.4 This standard does not purport to address all of the
entity.
safety concerns, if any, associated with its use. It is the
3.2.3 program, n—aspecificcollection,orgroup,ofprojects
responsibility of the user of this standard to establish appro-
that is directed toward a common goal that may also serve as
priate safety and health practices and determine the applica-
the basis for defining and planning those projects.
bility of regulatory limitations prior to use.
3.2.4 program layer, n—contains those activities and asso-
2. Referenced Documents
ciated costs required to manage and deliver a collection, or
group, of projects.
2.1 ASTM Standards:
E631 Terminology of Building Constructions 3.2.5 project, n—adiscreteundertaking,requiringconcerted
E833 Terminology of Building Economics effort, that has defined objectives, a defined life within specific
E1557 Classification for Building Elements and Related start and end points, that is usually accomplished by using
finite, or limited, resources.
Sitework—UNIFORMAT II
E2083 Classification for Building Construction Field
3.2.6 project layer, n—contains those activities and associ-
Requirements, and Office Overhead & Profit
ated costs required to manage and deliver a project.
E2168 Classification for Allowance, Contingency, and Re-
serve Sums in Building Construction Estimating
4. Significance and Use
E2514 Practice for Presentation Format of Elemental Cost
4.1 Program and project estimates are a necessary part of
Estimates, Summaries, and Analyses
planning and implementing any program of work.
2.2 Other Standard:
4.2 These estimates are used by persons involved in the
MasterFormat
planning and management of programs and projects. They are
an essential part of establishing initial budgets and provide a
framework for continuing updates permitting cost control
This classification is under the jurisdiction of ASTM Committee E06 on
through the life of a program and its various projects.
Performance of Buildings and is the direct responsibility of Subcommittee E06.81
4.3 Users include owners, developers, facilities
on Building Economics.
Current edition approved Sept. 1, 2008. Published October 2008. DOI: 10.1520/
programmers, financial managers, company controllers,
E2620-08.
executives, program managers, project managers, and special-
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
ist cost planners including life cycle cost analysts.
contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
Standards volume information, refer to the standard’s Document Summary page on
4.4 They are also of use in risk management, and also
the ASTM website.
provide a consistent list of major activity phases for use in
Available from the Construction Specifications Institute (CSI), 99 Canal Center
Plaza, Suite 300, Alexandria, VA 22314, http://www.csinet.org. program and project time schedules.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
E2620−08
5. Basis of Classification 6.1.1 Programs and projects are typically structured in a
hierarchical scheme wherein each layer of management has
5.1 Classification Criteria—The selected classification of
specific functions or actions, in addition to control and over-
terms is based on the following criteria. The terms shall:
sight responsibilities for those actions taken by subordinate
5.1.1 Be readily distinguishable one from the other,
layers. The metaphor is that each superior layer “overlays” a
5.1.2 Follow generic management hierarchical lines,
subordinate layer. Removing each “layer” will uncover a more
5.1.3 Allow a distinction between primary realms of
specific layer beneath. This classification outlines these layers
responsibility, and
from the “top-down” although from an estimating point of
5.1.4 Be appropriate to many forms of construction.
viewitmayoftenbethelower(subordinate)layerthat“drives”
5.2 Primary Classification—Based on the concept of layers
the content and magnitude of the next layer up. Some organi-
that overlay and incorporate subordinate layers to build an
zations may well wish to view this hierarchy in a “bottom-up”
overall estimated cost picture appropriate for those charged
manner which may be done without changing the layer
with responsibility for the successful delivery of that layer of
concept. Appendix X1 uses this “bottom-up” approach.
the whole. A program may include all the phases envisaged in
6.1.2 Therewillbeseverallevelsofdetailwithineachlayer.
the program’s Whole Life Cycle and will typically include
For example, Classification E1557 uses the term level to
morethanoneproject.Theseprojectsmaytakeplaceatseveral
describe its hierarchy of increasing detail supporting each
stages in several phases in a program’s life cycle and may be
Major Group Element, Group Element, Element, and Sub-
concurrent or sequential, or both, in their delivery. A project
Element. To avoid confusion, and allow for clarity in
will include at least one constructed entity but may include
discussion,thisclassificationquitespecificallyavoidsusingthe
more, constructed concurrently or sequentially, or both.
term level when distinguishing between the three identified
5.2.1 Program Layer—This layer “wraps” around (over-
layers.
lays) and includes the project layer(s) necessary to complete
6.1.3 The three layers represent three readily identifiable
the whole program. It details and summarizes cash expendi-
layers of responsibility that are applicable when managing a
tures from initial identification of need or opportunity through
construction program or construction project.
operation and maintenance to final closure and disposal.
6.1.4 Each layer might also be likened to a “container”
5.2.2 Project Layer—This layer “wraps” around and in-
wherein specific functions and actions are contained and
cludes the construction layer(s). It details and summarizes
controlled. Some of the functions and actions may become
those cash expenditures appropriate and necessary to deliver-
more specific management applications in each succeeding
ing the constructed entity from inception to completion.
(lower) layer, although others will not. They will be specific to
5.2.3 Construction Layer—This layer details the specific
their layer and may also contain several levels of detail.
construction deliverable, be it a building, installation, or other
6.1.5 Fig. 1 provides a graphic representation of this layer
constructed entity.
hierarchy.
6. Description of Program, Project, and Construction
6.1.6 Abusinessprogrammaynotbedefinedaspreciselyas
Layers
a construction program or project in that, while it has a defined
6.1 The “Layer” Concept: start and a specified objective, its end date may be a long way
FIG. 1Generic Layer Hierarchy
E2620−08
ahead or even unknown. Consequently the business objective 7.5.3.3 Real Estate Analysts.
is likely to mature and evolve as changing needs and the 7.5.3.4 Investment and Financial Specialists/Analysts.
business environment dictate.Abusiness program may require
7.5.3.5 Technical Specialists/Analysts.
that more than one construction program and many projects be 7.5.4 Key Product:
implemented and these can occur at several stages during a
7.5.4.1 Program Description.
business programs lifetime. Business programs typically in-
7.5.5 Critical Decisions:
clude four major phases of activity:
7.5.5.1 A firm decision to proceed with a new program.
6.1.6.1 Planning and Definition Phase,
7.5.5.2 Appointment of Program Manager(s) and support
6.1.6.2 Implementation Phase,
team(s).
6.1.6.3 Operation and Maintenance Phase, and
7.5.5.3 Constraints—financial, time, and quality.
6.1.6.4 Disposal and Deactivation Phase.
7.6 Implement:
6.1.7 Projects are unique, are temporary, and are imple-
7.6.1 Purpose:
mentedtofulfil/meetaspecificgoal.Projectshaveanidentified
7.6.1.1 To design and construct the identified needs in
objective, a specific beginning, and a defined end. A project
accordance with the Program Description and within the
may include more than one constructed entity, and these may
bounds of the identified constraints.
be constructed sequentially, concurrently, or in a combination
7.6.1.2 To design and construct the required facilities in
of these two modes. Projects involving construction typically
accordance with the approved program decision. To put the
include two major phases of activity:
requirement into action.
6.1.7.1 Design Phase, and
7.6.2 Activities:
6.1.7.2 Construction Phase.
7.6.2.1 Locate Finance, both Interim and Permanent.
6.1.8 Construction refers to the physical erection of each
7.6.2.2 Real Property Acquisition, which may include:
constructedentity,beitabuilding,abridge,oroneofthemany
(1) Purchase.
different construction forms extant in the built environment.
(2) Lease.
(3) Improvements.
7. Program Layer
(a) Planning:
7.1 The program layer, in its entirety, is an all-
Survey.
encompassing, over-arching layer that typically includes all
Rezoning/Development.
phases of the Program.
Geotechnical Testing.
(b) Fees:
7.2 For the purposes of this classification, a program esti-
Appraisal.
mate will only include those program costs specific to the
Real Estate.
implementation of a planned construction program and so will
Legal.
excludethoseothercostsandactivitiesthatareanecessarypart
(c) Site Improvement:
of an overall business program.
Primary Site Services.
7.3 Fig. 2 provides a generic view of the typical cost centers
Site Preparation:
included within construction programs within the four primary
Abatement.
phases of any business program.
Demolition.
7.4 A brief description of the typical activities that may be
7.6.2.3 Develop:
expected in each primary phase follows.
(1) Project Brief.
(2) Project (see Project Layer).
7.5 Plan and Define:
(3) Commission.
7.5.1 Intent:
(4) Equipment:
7.5.1.1 To define an investment opportunity, a need, or a
(a) Installation:
problem.
Moving/Transportation.
7.5.1.2 To define a solution in technical terms, financial
Storage.
terms, and goals.
(b) Furnishings:
7.5.1.3 Asuccessful corporate entity will always be search-
Installation:
ing for improvement, either in product delivery or product
Moving/Transportation.
availability, as a means to maximizing profit (often by cost
Storage.
reduction), or the identification of new investment opportuni-
7.6.3 Participants:
ties. This ongoing activity entails some cost and research.
7.6.3.1 Project Management Team.
7.5.2 Activities:
7.6.3.2 Program Manager.
7.5.2.1 Identify Opportunity.
7.6.3.3 Consultants.
7.5.2.2 Define Objective.
7.6.3.4 Contractors.
7.5.2.3 Analyze and Decide.
7.5.2.4 Seek Approvals. 7.6.3.5 Suppliers.
7.5.3 Participants: 7.6.4 Documents:
7.5.3.1 Program Manager.
7.6.4.1 Specifications, Working Drawings, and Contract
7.5.3.2 Property Managers. Documents.
E2620−08
FIG. 2Program Layer
E2620−08
7.6.4.2 Commissioning and Maintenance Manuals. 7.7.5.1 Functioning and operating facility.
7.6.4.3 As-Built drawings and specifications.
7.7.5.2 Documentation for all changes made.
7.6.5 Key Product and Critical Decisions:
7.7.6 Critical Decisions:
7.6.5.1 Constructed facility(ies) that meet the approved
7.7.6.1 Failure to meet agreed standards of performance.
criteria of cost, quality, and time.
7.7.6.2 Revise systems or facility for greater efficiency/
7.6.5.2 Acceptance of Design.
economy or changing needs.
7.6.5.3 Acceptance of Building.
7.8 Dispose/Deactivate:
7.6.5.4 Compliance with Brief and Constraints.
7.8.1 Purpose:
7.7 Operate and Maintain:
7.8.1.1 To safely deactivate or dispose, or both, of facili-
7.7.1 Purpose:
ty(ies) at end of program.
7.7.1.1 To operate the facility(ies) for the life of the pro-
7.8.1.2 To efficiently deactivate a facility and dispose of the
gram.
physical assets where deemed necessary.
7.7.1.2 To maintain the facility(ies) for efficient operation
7.8.2 Activities:
and in accordance with all applicable codes and regulations.
7.8.2.1 Sale/Disposal.
7.7.1.3 To operate and maintain the constructed entity(ies),
7.8.2.2 Salvage—Demolish:
included within the program, to ensure safe and efficient
(1) Project Brief.
utilization.
(2) Project (see Project Layer).
7.7.2 Activities:
7.8.2.3 Salvage—Mothball:
7.7.2.1 Operation.
(1) Project Brief.
7.7.2.2 Ad-Hoc Maintenance.
(2) Project (see Project Layer).
7.7.2.3 Alteration/Improvement:
7.8.3 Participants:
(1) Project Brief.
7.8.3.1 Program Manager.
(2) Project (see Project Layer).
7.8.3.2 Project Management Team.
(3) Commission.
7.8.3.3 Consultants.
7.7.2.4 Cyclical Renewal—Facility:
7.8.3.4 Contractors.
(1) Project Brief.
7.8.4 Documents:
(2) Project (see Project Layer).
(3) Commission. 7.8.4.1 Decision documentation and Project Brief.
7.7.2.5 Cyclical Renewal—Equipment. 7.8.5 Key Product and Critical Decisions:
7.7.2.6 Cyclical Renewal—Furnishings. 7.8.5.1 Decision to dispose or retain.
7.7.2.7 Operate building systems.
7.9 Reserve:
7.7.2.8 Preventative maintenance, ongoing, and daily in-
7.9.1 The term Management Reserve is a common one, but
spection.
evidence is not so common that management of organiza
...
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