Standard Classification for Cost Estimate Classification System

SIGNIFICANCE AND USE
Use of this classification will improve communication among all the stakeholders involved with preparing, evaluating, and using cost estimates.
The various parties that use cost estimates often misinterpret the quality and value of the information available to prepare cost estimates, the various methods employed during the estimating process, the accuracy level expected from estimates, and the level of risk associated with estimates.
This classification applies the degree of project definition as the primary characteristic for determining an estimate’s classification.
Using this classification will help those involved with project estimates to avoid misinterpretation of the various classes of cost estimates and to avoid their misapplication and misrepresentation. Improving communications about estimate classifications reduces business costs and project cycle times by avoiding inappropriate business and financial decisions, actions, delays, or disputes caused by misunderstandings of cost estimates and what they are expected to represent.
This classification is intended to be generic and so provide a system for the classification of cost estimates in any industry. There are also references to specific industries, for cost estimate classification as applied in: AACE International, Process Industry 18R-97, and AACE International, Building/General Construction Industry 56R-08.  
Estimate classifications provide valuable additional reporting information when used as an adjunct to Practice E1804.
SCOPE
1.1 This classification provides a generic classification system for cost estimates and provides guidelines for applying the classification to cost estimates.
1.2 This classification maps the phases and stages of cost estimating to a generic maturity and quality matrix, keyed to a degre of project definition, that can be applied across a wide variety of industries.
1.3 The Cost Estimate Classification System has been developed in a way that:
1.3.1 provides a common understanding of the concepts involved with classifying cost estimates;
1.3.2 defines and correlates the major characteristics used in classifying cost estimates, and;
1.3.3 uses the degree of project definition as the primary characteristic used to categorize estimate classes.

General Information

Status
Historical
Publication Date
31-Mar-2011
Technical Committee
Drafting Committee
Current Stage
Ref Project

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Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation:E2516 −11
Standard Classification for
1, 2
Cost Estimate Classification System
This standard is issued under the fixed designation E2516; 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 AACE International Recommended Practice No 18R-97:
Cost Estimate Classification System: As Applied in
1.1 This classification provides a generic classification sys-
Engineering, Procurement, and Construction for the Pro-
tem for cost estimates and provides guidelines for applying the
5
cess Industries
classification to cost estimates.
AACE International Recommended Practice No 56R-08:
1.2 This classification maps the phases and stages of cost
Cost Estimate Classification System – As Applied in
estimating to a generic maturity and quality matrix, keyed to a
5
Building and General Construction Industries
degree of project definition, that can be applied across a wide
variety of industries.
3. Terminology
1.3 The Cost Estimate Classification System has been
3.1 Definitions—For definitions of terms used in this
developed in a way that:
practice, refer to Terminology E833 and Terminology E631.
1.3.1 provides a common understanding of the concepts
involved with classifying cost estimates;
4. Significance and Use
1.3.2 defines and correlates the major characteristics used in
classifying cost estimates, and;
4.1 Use of this classification will improve communication
1.3.3 uses the degree of project definition as the primary
among all the stakeholders involved with preparing,
characteristic used to categorize estimate classes.
evaluating, and using cost estimates.
2. Referenced Documents
4.2 The various parties that use cost estimates often misin-
3
terpret the quality and value of the information available to
2.1 ASTM Standards:
prepare cost estimates, the various methods employed during
E631 Terminology of Building Constructions
the estimating process, the accuracy level expected from
E833 Terminology of Building Economics
estimates, and the level of risk associated with estimates.
E1804 Practice for Performing and Reporting CostAnalysis
During the Design Phase of a Project
4.3 This classification applies the degree of project defini-
2.2 Other Standards:
tion as the primary characteristic for determining an estimate’s
ANSI Z94.2-1989 Industrial EngineeringTerminology: Cost
classification.
4
Engineering
4.4 Using this classification will help those involved with
AACE International Recommended Practice No 17R-97:
5
project estimates to avoid misinterpretation of the various
Cost Estimate Classification System
classes of cost estimates and to avoid their misapplication and
misrepresentation. Improving communications about estimate
1
This specification is under the jurisdiction of ASTM Committee E06 on
classifications reduces business costs and project cycle times
Performance of Buildings and is the direct responsibility of Subcommittee E06.81
by avoiding inappropriate business and financial decisions,
on Building Economics.
Current edition approved April 1, 2011. Published May 2011. Originally
actions, delays, or disputes caused by misunderstandings of
approved in 2006. Last previous edition approved in 2006 as E2516 – 06. DOI:
cost estimates and what they are expected to represent.
10.1520/E2516-11.
2
This classification is based on theAACE International Recommended Practices
4.5 This classification is intended to be generic and so
17R–97, 18R-97, and 56R-09 pertaining to Cost Estimate Classification System.
provide a system for the classification of cost estimates in any
3
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
industry. There are also references to specific industries, for
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
cost estimate classification as applied in: AACE International,
the ASTM website.
Process Industry 18R-97, and AACE International, Building/
4
Available fromAmerican National Standards Institute (ANSI), 25 W. 43rd St.,
General Construction Industry 56R-08.
4th Floor, New York, NY 10036, http://www.ansi.org.
5
Available from the Association of the Advancement of Cost Engineering
4.6 Estimate classifications provide valuable additional re-
International (AACE International), 209 Prairie Avenue, Suite 100, Morgantown,
WV 26501, http://www.aacei.org. portinginformationwhenusedasanadjuncttoPracticeE1804.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

---------------------- Page: 1 ----------------------
E2516−11
...

This document is not anASTM standard and is intended only to provide the user of anASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation:E2516–06 Designation: E2516 – 11
Standard Classification for
,
1 2
Cost Estimate Classification System
This standard is issued under the fixed designation E2516; 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
1.1 This classification provides a generic classification system for cost estimates and provides guidelines for applying the
classification to cost estimates.
1.2 This classification maps the phases and stages of cost estimating to a generic maturity and quality matrix, keyed to a
leveldegre of project definition, that can be applied across a wide variety of industries.
1.3 The Cost Estimate Classification System has been developed in a way that:
1.3.1 provides a common understanding of the concepts involved with classifying cost estimates;
1.3.2 defines and correlates the major characteristics used in classifying cost estimates, and;
1.3.3 uses the degree of project definition as the primary characteristic used to categorize estimate classes.
2. Referenced Documents
3
2.1 ASTM Standards:
E631 Terminology of Building Constructions
E833 Terminology of Building Economics
E1804 Practice for Performing and Reporting Cost Analysis During the Design Phase of a Project
2.2 Other Standards:
4
ANSI Z94.2-1989 Industrial Engineering Terminology: Cost Engineering
5
AACE International 17R-97 Recommended Practice No 17R-97: Cost Estimate Classification System
AACE International 18R-97Recommended Practice: Cost Estimate Classification System: As Applied in Engineering,
5
Procurement, and Construction for the Process Industries
AACE International Recommended Practice No 18R-97: Cost Estimate Classification System: As Applied in Engineering,
5
Procurement, and Construction for the Process Industries
AACE International Recommended Practice No 56R-08: Cost Estimate Classification System – As Applied in Building and
5
General Construction Industries
3. Terminology
3.1 DefintionsDefinitions—For definitions of terms used in this practice, refer to Terminology E833 and Terminology E631.
4. Significance and Use
4.1 Use of this classification will improve communication among all the stakeholders involved with preparing, evaluating, and
using cost estimates.
4.2 The various parties that use cost estimates often misinterpret the quality and value of the information available to prepare
cost estimates, the various methods employed during the estimating process, the accuracy level expected from estimates, and the
level of risk associated with estimates.
4.3 This classification applies the leveldegree of project definition as the primary characteristic for determining an estimate’s
classification.
1
This specification is under the jurisdiction ofASTM Committee E06 on Performance of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
Current edition approved Oct. 1, 2006. Published October 2006. DOI: 10.1520/E2516-06.
CurrenteditionapprovedApril1,2011.PublishedMay2011.Originallyapprovedin2006.Lastpreviouseditionapprovedin2006asE2516 – 06.DOI:10.1520/E2516-11.
2
This classification is based on the Cost Estimate Classification System, Recommended Practice Document AACE International 17R–97.
2
This classification is based on the AACE International Recommended Practices 17R–97, 18R-97, and 56R-09 pertaining to Cost Estimate Classification System.
3
For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Customer Service at service@astm.org. For Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
4
Available from American National Standards Institute (ANSI), 25 W. 43rd St., 4th Floor, New York, NY 10036, http://www.ansi.org.
5
Available from the Association of the Advancement of Cost Engineering International (AACE International), 209 Prairie Avenue, Suite 100, Morgantown, WV 26501,
USA.http://www.aacei.org.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
E2516 – 11
4.4 Using this classification will help those involved with project estimates to avoid misinterpretation of the various classes of
cost estimates and to avoid their misapplication and misrepresentation. Improving communications about estimate class
...

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