ASTM_E_2516_-_11.pdf

Designation:E251611Standard Classification forCost Estimate Classification System1,2This standard is issued under the fixed designation E2516;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.1.Scope1.1 This classification provides a generic classification sys-tem for cost estimates and provides guidelines for applying theclassification to cost estimates.1.2 This classification maps the phases and stages of costestimating to a generic maturity and quality matrix,keyed to adegree of project definition,that can be applied across a widevariety of industries.1.3The Cost Estimate Classification System has beendeveloped in a way that:1.3.1 provides a common understanding of the conceptsinvolved with classifying cost estimates;1.3.2 defines and correlates the major characteristics used inclassifying cost estimates,and;1.3.3 uses the degree of project definition as the primarycharacteristic used to categorize estimate classes.2.Referenced Documents2.1 ASTM Standards:3E631 Terminology of Building ConstructionsE833 Terminology of Building EconomicsE1804 Practice for Performing and Reporting Cost AnalysisDuring the Design Phase of a Project2.2 Other Standards:ANSI Z94.2-1989 Industrial Engineering Terminology:CostEngineering4AACE International Recommended Practice No 17R-97:Cost Estimate Classification System5AACE International Recommended Practice No 18R-97:Cost Estimate Classification System:As Applied inEngineering,Procurement,and Construction for the Pro-cess Industries5AACE International Recommended Practice No 56R-08:Cost Estimate Classification System As Applied inBuilding and General Construction Industries53.Terminology3.1 DefinitionsFor definitions of terms used in thispractice,refer to Terminology E833 and Terminology E631.4.Significance and Use4.1 Use of this classification will improve communicationamong all the stakeholders involved with preparing,evaluating,and using cost estimates.4.2 The various parties that use cost estimates often misin-terpret the quality and value of the information available toprepare cost estimates,the various methods employed duringthe estimating process,the accuracy level expected fromestimates,and the level of risk associated with estimates.4.3 This classification applies the degree of project defini-tion as the primary characteristic for determining an estimatesclassification.4.4 Using this classification will help those involved withproject estimates to avoid misinterpretation of the variousclasses of cost estimates and to avoid their misapplication andmisrepresentation.Improving communications about estimateclassifications reduces business costs and project cycle timesby avoiding inappropriate business and financial decisions,actions,delays,or disputes caused by misunderstandings ofcost estimates and what they are expected to represent.4.5 This classification is intended to be generic and soprovide a system for the classification of cost estimates in anyindustry.There are also references to specific industries,forcost estimate classification as applied in:AACE International,Process Industry 18R-97,and AACE International,Building/General Construction Industry 56R-08.4.6 Estimate classifications provide valuable additional re-porting information when used as an adjunct to Practice E1804.1This specification is under the jurisdiction of ASTM Committee E06 onPerformance of Buildings and is the direct responsibility of Subcommittee E06.81on Building Economics.Current edition approved April 1,2011.Published May 2011.Originallyapproved in 2006.Last previous edition approved in 2006 as E2516 06.DOI:10.1520/E2516-11.2This classification is based on theAACE International Recommended Practices17R97,18R-97,and 56R-09 pertaining to Cost Estimate Classification System.3For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.4Available from American National Standards Institute(ANSI),25 W.43rd St.,4th Floor,New York,NY 10036,http:/www.ansi.org.5Available from the Association of the Advancement of Cost EngineeringInternational(AACE International),209 Prairie Avenue,Suite 100,Morgantown,WV 26501,http:/www.aacei.org.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 5.Basis of Classification5.1 There are numerous characteristics that can be used tocategorize cost estimate types.The most significant of these aredegree of project definition,end usage of the estimate,estimat-ing methodology,and the effort and time needed to prepare theestimate.The primary characteristic used in this guideline todefine the classification cate