AACE INTERNATIONAL

COST ESTIMATING BASICS

Chapter 1
Cost Estimating Basics
Charles P. Woodward, PE CCE, and Mark T. Chen, PE CCE
INTRODUCTION

upon scope [1]. To a contractor, this is the cost that will most
likely be incurred in completing the project as defined in the
contract documents. The contractors cost includes its own
internal costs as well as those of its subcontractors, suppliers,
and third parties.

Estimating is the key to a successfully conceived, managed, and

completed project. This is true whether the project involves
constructing a high-rise office building complex, a scenic highway, manufacturing a product, organizing the world tour of a
symphony orchestra, or planning a vacation. Estimating is not
limited to the construction industry, but rather is a function
common to a broad spectrum of projects in which cost and
time must be managed. While this chapter uses construction
cost estimating as a vehicle for discussing estimating basics,
many of the principles are equally applicable to other sectors of
industry or government.

The term owner is used in the construction industry to refer

to the organization that specifies and pays for the project. In
other industries, this entity is sometimes called the buyer or
customer. The owners costs include costs for administrating
the project, the costs that its contractor(s) charge for the work
performed, and the fees of any consultants, engineers, and suppliers that the owner hires. Also included in an owners estimate must be the price of land, provisions for interim and permanent financing, and the numerous elements of life-cycle
costs associated with ownership, such as operating and maintenance costs.

The estimate is the yardstick against which cost performance

on a project is measured. Since time affects cost, the estimate
of durations is also important and is usually considered concurrently with cost. This chapter deals only with cost; planning
and scheduling are covered in chapters 7, 8, and 9.

Estimating is a process accomplished in steps:

As its name implies, estimating is an approximation procedure,

and the results have a significantly less than 100 percent probability of being correct. Understanding the accuracy limitations of the estimate and its potential variation is extremely
important.

Take-Offmeasuring and cataloging the quantities of work

derived from the scope documents.
Costingusing the take-off and the information presented in
the scope documents to assign cost values to the elements of
work previously cataloged.

To develop a complete cost estimate properly, it is essential that

the estimator clearly understands the basic elements of cost
estimating. The following paragraphs give an overview of these
fundamentals, which include:

Pricingdetermining the amount to be charged to the

owner/client so as to fully include direct and indirect cost
items, as well as contingency and profit.

terminology;
estimate types and applications;
direct and indirect cost items; and
elements-of-cost, which include labor, equipment, and
material costs.

BASIC COST ESTIMATING TERMINOLOGY

AddendumA written change or graphic instrument issued
before the date bids are opened. An addendum may interpret
or modify the bidding documents by making additions, deletions, clarifications, or corrections.

DEFINITION OF A COST ESTIMATE

AllowancesAdditional resources included in estimates to
cover the cost of known but undefined requirements for an
individual activity, work item, account, or subaccount.

A cost estimate is defined as a compilation of all the costs of

the elements of a project or effort included within an agreed1-1

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AACE INTERNATIONAL

AlternateA request from the owner for the cost of adding or

deleting an item or work element from the basic bid. The cost
of adding an item is usually known as an additive alternate,
while the cost of deleting an item is known as a deductive alternate.

Indirect CostsIn construction, all costs that do not become

a final part of the installation. They include, but are not limited to, field administration, direct supervision, capital tools,
start-up costs, contractors fees, insurance, and taxes.
Indirect CostsIn manufacturing, costs not directly assigned
to the end product or process (such as overhead and general
purpose labor) or costs of outside operations (such as transportation and distribution).

Bid DocumentsThe advertisement for bids, instructions to

bidders, information available to bidders, bid form with all
attachments, and proposed contract documents (including all
addenda issued before the receipt of bids).

Labor BurdenTaxes and insurance costs based on labor payroll that the employer is legally required to pay on behalf of or
for the benefit of laborers. (In the US, these include federal old
age benefits, federal unemployment insurance tax, state unemployment insurance tax, and workers compensation).

Change OrderA document requesting a change or correction; a written change made by the architect/engineer to the
contract drawings and/or specifications after the contract award.
Generally, a change order must be approved by both the
owner/client and the contractor before it becomes a legal
change to the contract.

Labor CostThe base salary, plus all fringe benefit costs and
labor burdens associated with labor, that can be definitely
assigned to one item of work, product, process area, or cost center.

ContingencyAn amount added to the estimate to allow for

changes that experience shows will likely be required. This
may be derived through statistical analysis of past-project costs
or by applying experience gained on similar projects.
Contingency usually does not include changes in scope or
unforeseeable major events such as strikes or earthquakes.

Mark-UpAs variously used in construction estimating, such

percentage applications as general overhead, profit, and other
indirect costs. When mark-up is applied to the bottom of a bid
sheet for a particular item, system, or other construction price,
any or all of the above items (or more) may be included,
depending on local practice.

Contract DocumentsThe contract forms, general and specific conditions, drawings, specifications, and addenda describing the project scope and contract terms.

OverheadA cost or expense inherent in performing an operation, i.e., engineering, construction, operating, or manufacturing, that cannot be charged to or identified with a part of the
work, product, or asset and which, therefore, must either be
allocated on some arbitrary basis believed to be equitable, or
handled as a business expense independent of the volume of
production.

CostThe amount a contract item is known or estimated to

cost the contractor (see price).
Cost IndexA number that relates the cost of an item at a specific time to the corresponding cost at some arbitrarily specified
time in the past. A cost index is useful in taking known past
costs for an item and relating them to the present.

PriceThe amount of money asked or given for a product

(i.e., the exchange value). The chief function of price is to
ration the existing supply among prospective buyers. Price
incorporates direct costs, indirect costs, general overhead, profit, and contingency.

Direct CostsCosts that can be directly attributed to a particular item of work or activity.
Distributable CostA cost item that is spread over other cost
items rather than managed as a separate account.
EscalationProvision for an increase in the cost of equipment, material, labor, etc., over the costs specified in the contract, due to continuing price-level changes over time.

ProductivityA relative measure of labor efficiency, either

good or bad, when compared to an established base or norm as
determined from an area of great experience. Alternatively,
productivity is defined as the reciprocal of the labor factor.

Field CostsIndirect costs of engineering and construction

associated with the projects field site rather than with the home
office.

ScopeThe equipment and materials to be provided, and the

work to be done. Scope is documented by the contract parameters for a project to which the company is committed.

General ConditionsA specific portion of the contract documents. They state the responsibilities and relationships of all
parties to the contract, as well as any conditions applicable to
the contract.

Special ConditionsModifications to the general conditions.

Special conditions are applicable and unique to a specific
project.

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COST ESTIMATING BASICS

Time-SensitiveA term applied to those elements of cost that

will be expended or incurred on a time-unit basis (monthly,
weekly, hourly, etc.) and that are a subset of indirect costs. A
cost engineers salary on a project is a time-sensitive cost as long
as that engineer is on the project.

acteristic is based upon percent complete of the project definition (roughly corresponding to percent complete of engineering). Figure 1.1 shows how the primary and secondary characteristics relate to the new AACE estimate classes and ANSI
Standard [2]. Chapter 2 addresses Order-of-Magnitude
Estimate, which corresponds to AACE Class 5 estimate.
Chapter 3 focuses on Definitive Estimate, which relates to
AACE Class 1 and Class 2 estimates.

Value EngineeringA practice function that is targeted at the

design itself. The objective of value engineering is to develop
or design a facility or item that will yield the least life-cycle costs
or provide the greatest value while satisfying all performance
and other criteria established for it. (See chapter 23.)

MOST COMMONLY USED ESTIMATES

(1) Order-of-Magnitude EstimatesEstimates made without
detailed engineering data. Examples include an estimate
made from cost capacity curves, an estimate using scale-up
or scale-down factors, and an approximate ratio estimate.
An estimate of this type would normally be expected to be
accurate within +50 percent or -30 percent.

TYPES OF ESTIMATES AND APPLICATIONS

There are numerous characteristics that can be used to categorize cost estimate types. The most significant characteristics are
degree of project definition, end usage of the estimate, estimate
methodology, as well as the effort and time needed to prepare
the estimate. In 1998, AACE International published a new
Recommended Practice 18R-97 Cost Estimate Classification
System For the Process Industries (See Appendix D for
details). The primary characteristic used in this practice to
define the estimate class is the degree of project definition.
The other characteristics are secondary. The primary char-

Order-of-magnitude estimates are sometimes referred to as

conceptual or ballpark estimates. They have a wide
range of accuracy, and have important applications, such
as using them to determine the feasibility of a project
quickly or to screen several types of alternative designs.

Primary
Characteristic
Level of Project
Definition
ANSI
Standard
Z94.0
Order-ofMagnitude
Estimate
-30/+50
Budget
Estimate
-15/+30
Definitive
Estimate
-5/+15

AACE Expressed as % of
Estimate complete project
definition
Class
(engineering)

Secondary Characteristic
Expected
Accuracy Range

Preparation
Effort

Typical estimating
method

Typical variation
in low and high
ranges [a]

Typical degree
of effort relative to
least cost index
of 1 [b]

Capacity factored,
parametric models,
judgment, or analogy

L: -20% to -50%
H: +30% to +100%

End Usage

Methodology

Typical purpose of
estimate

Class 5

0% to 2%

Concept screening

Class 4

1% to 15%

Study or feasibility

Class 3

10% to 40%

Budget, authorization,
or control

Class 2

30% to 70%

Class 1

50% to 100%

Equipment factored, or
parametric models
Semi-detailed unit
costs with assembly
level line items

L: -15% to -30%
H: +20% to+50%

2 to 4

L: -10% to -20%
H: +10% to +30%

3 to 10

Control or bid/tender

Detailed unit cost

with forced detailed
take-off

L: -5% to -15%
H: +5% to +20%

4 to 20

Check estimate or
bid/tender

Detailed unit cost with

detailed take-off

L: -3% to -10%
H: +3% to +15%

5 to 100

Notes: [a] The state of process technology and availability of applicable reference cost data affect the range markedly. The
+/- value represents typical percentage variation of actual costs from the cost estimate after application of contingency.
[b] If the cost index value of 1 represents 0.005 percent, then an index value of 100 represents 0.5 percent.
Estimate preparation effort is highly dependent upon the size of the project and the quality of estimating data and
tools.
Figure 1.1Cost Estimate Classification Matrix for Process Industries
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COST ESTIMATING BASICS

AACE INTERNATIONAL

Order-of-magnitude estimates are generally prepared using

only basic criteria such as desired output, total square
meters, or number of units. For buildings, the most typical
measure is square meters of floor area or cubic meters of
volume. For process and power plants, the order-of-magnitude may be expressed in plant capacity for input and/or
output. Order-of-magnitude estimates for roadways are
usually defined by kilometer of a particular type of surface.

document). Budget estimates are prepared with the help

of flow sheets, layouts, and equipment details. In other
words, enough preliminary engineering has taken place to
further define the project scope. An estimate of this type is
normally expected to be accurate within +30 percent or 15 percent.
Budget estimates are also called design development,
semi-detailed, appropriation, or control estimates.
Since the budget estimate is more definitive than the
order-of-magnitude estimate, it is better suited for deter-

(2) Budget Estimates(The word budget applies to the

owners budget and not to the budget as a project control
Table 1.1Construction Job Indirects Checklist
Salaries, Supervision
project director
construction manager
general superintendent
excavation superintendent
concrete superintendent
carpenter superintendent
rigging superintendent
welding superintendent
electrician superintendent
chief warehouseman
Salaries, Engineering
chief engineer
office engineer
cost engineer
schedule engineer
materials engineer
draftsmen
field engineers
survey party chiefs
instrument person
Salaries/Wages, Other
QA engineers
safety engineers
mechanics
plant operators
first aid workers
secretaries and clerks
computer operators
warehousemen
guards
janitors
runners
Automotive
automobiles/cars
pickups
ambulances
tractor-trailers
special-purpose vehicles
fuel/lube trucks

Buildings and Major

Equipment
project office
warehouses
brass alley
change house
carpenter shop
pipe fabrication shop
welder test facility
electrical shop
rigging loft
first aid station
tool sheds
powder house
cap house
resteel fabrication
machine shop
equipment and maintenance shop
concrete batch plant
quarry
hoisting equipment
training building
Temporary Horizontal
Construction
access roads
construction bridges
drainage structures
rail spurs
laydown areas
fencing and gates
parking areas
environmental protection
Support Systems
water supply
compressed air
electrical site
site communication
inert gas
oxygen

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General Expenses
office furniture
engineering supplies
engineering equipment
printing/reproduction
computer terminal
CPM scheduling
phone/telegraph/radio
utilities
portable toilets
signs
safety equipment
permits and licenses
advertising
contributions
job travel expenses
testing and laboratory
legal fees
audit fees
medical supplies
progress photos
sanitary facilities
building rental
building and grounds
maintenance
exterior lighting
drinking water and ice
taxes
bonds
insurance
payroll burden costs
backcharges from others
consultants
weather protection

AACE INTERNATIONAL

COST ESTIMATING BASICS

mining project feasibility and establishing definitive budgets. The accuracy and usefulness of a budget estimate
depends, to a large extent, on the amount and quality of
information available.

ELEMENTS OF EQUIPMENT, LABOR,

AND MATERIAL COSTS
Figure 1.2 contains a hierarchical chart showing the components of a construction cost estimate. Other types of project
cost estimates will take a similar form but may include more or
less information than contained in the construction cost estimate.

(3) Definitive EstimatesAs the name implies, these are estimates prepared from very defined engineering data. This
data includes, as a minimum, fairly complete plot plans
and elevations, piping and instrument diagrams, singleline electrical diagrams, equipment data sheets and quotations, structural sketches, soil data and sketches of major
foundations, building sketches, and a complete set of specifications.

Direct Costs
Labor CostsLabor costs are a total of the actual amounts
paid to field personnel who perform actual project work,
e.g., carpenters, common laborers, masons, painters, etc.
They can be divided into three main components:

The definitive estimate includes various degree of detail

estimates which could be made from approved for construction drawings and specifications. Definitive estimates are also called check, lump sum, tender, and
post-contract change estimates. An estimate of this type
is usually expected to be accurate within +15 percent or -5
percent.

the basic wage (the wage rate multiplied by the

number of hours worked);
fringe benefits negotiated between employers and
employees, either individually or collectively; and
labor burden, including items such as taxes and
insurance, that employers are required by law to pay.

DIRECT AND INDIRECT COST ITEMS

The labor burden portion of the total labor cost is not
always treated as a direct cost element. Normally, the labor
burden will be treated in accordance with company practice unless actual project conditions dictate otherwise.

Estimates must segregate direct and indirect costs. Many estimates are based on a historical database compiled from cost
data derived from previous projects. The less that direct cost
data is encumbered with indirect costs, the more reliable the
direct cost data will be for use on the new project. Keeping
indirects separate allows the unique conditions that will be
encountered in the new project to be more accurately reflected
in the estimate.

Material CostsThe costs for everything of a substantial

nature that is essential to constructing or operating a facility, both direct and indirect. Manufactured equipment
items generally comprise a large part of material costs.
Equipment CostsThis refers to the cost of equipment
that a contractor uses to perform a contract (such as backhoes, cranes, or bulldozers) and not to equipment that is

Table 1.1 contains a list of indirect cost items [3] normally seen
on construction projects.

CONSTRUCTION COST ESTIMATE

DIRECT COST

Labor

Material

Equipment

INDIRECT COST

Subcontract

Taxes

Risk

Profit

Figure 1.2Components of a Construction Cost Estimate

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Overhead

Contingency

Escalation

COST ESTIMATING BASICS

AACE INTERNATIONAL

installed permanently as part of a contract. Equipment

costs may be calculated in various ways, depending on
whether the contractor leases or owns the equipment. If
the equipment is leased, the costs consist of the lease costs
and the cost of fuel. If the contractor owns the equipment,
the costs include ownership costs (investment, maintenance and depreciation) and operating costs (such as fuel
or repairs). Most contractors include the costs of equipment operators in direct labor costs, even though they are
actually part of the operating costs.

Risk AnalysisWhere the estimators experience leads to

conventional contingency application based on a history of
project cost growth, risk analysis principles attempt to
quantify this potential for direct cost elements. The members of the project team then review these elements and
identify the likelihood of increases and decreases in the
cost of the element, along with probabilities of deviations
from the estimate. For example, they may place a 70 percent likelihood of the earthwork cost increasing because
soil borings are not available. Thus the earthwork cost
might increase by as much as $100,000. The cost might
also be $30,000 less than the estimate due to competitive
market conditions.

Subcontract CostsThese are prices furnished by subcontractors for performing a specific portion of the work
that the general contractor will not perform with its own
forces.

After the project team establishes the highest and lowest

possible values for each element in the estimate, these
numbers are entered into a computerized risk evaluation
program that performs a Monte Carlo simulation. In this
process, a random sample value for each element is taken,
and the resulting total estimates are arranged in order from
highest to lowest. The deviations of each total value from
the original estimate are presented in a table similar to
table 1.2. The certainty column represents the likelihood
that the actual cost will not exceed the original estimate
after the indicated amount of contingency has been added.

Indirect Costs
TaxesThese vary significantly from location to location
and by the tax status of the owner; thus, they are usually
cataloged separately to facilitate accounting.
RiskElements of risk may be considered in two categories:
ProfitThe amount of money included by a contractor in its price as compensation for risk, efforts, and
endeavor in undertaking a project. Profit is actually the
residue of money left after a contractor has met all costs
(both direct and indirect) on a project. The amount of
profit to be added is very subjective and depends on considerations such as competition, how badly the project is
needed, the job market, local market conditions, and the
economy.

This information is provided to management to determine

the risk they are willing to take on the project. For
instance, in this example, if management selects a 70 percent risk level, the estimate would be $1,306,100
($1,225,000 + $81,100).

Overhead CostsThese may also fall into two categories:

ContingencyAn amount added to an estimate to

allow for changes or project cost growth that experience
shows will likely be required. Contingency may be derived
either through statistical analysis of past-project costs or by
applying experience gained on similar projects. It usually
does not include changes in scope or unforeseeable major
events such as strikes or earthquakes.
Table 1.2Risk Evaluation

Home Office OverheadThe fixed costs and expenses

incurred in this course of doing business, regardless of the
amount of work completed or contracts received. Home
office overhead includes items such as home office rent or
lease, utilities, communications equipment (telephones
and fax machines), advertising, salaries of home office
employees (e.g., executives, estimators, and support staff),
donations, legal costs, and accounting expense. In other
words, home office overhead represents expenses that are
not chargeable to any specific project.

Target Estimate = $1,225,000

Certainty
90
80
70
60
50
40
30
20
10
0.5

Contingency
162,600
108,400
81,100
49,400
21,500
900
-28,900
-54,200
-200,950
-268,947

One method of calculating home office overhead is to use

a percentage method in which the percentage is the ratio
of a specific projects total cost to the entire company/divisions total projects costs.
Job Site OverheadProvisions contained in a contract,
purchase order, or specification that are not specific to the
particular transaction but which apply to all transactions.
Usually, these items cannot be charged to a specific element of work. They include, for example, supervision,
temporary facilities, office trailers, toilets, utilities, trans1-6

AACE INTERNATIONAL

COST ESTIMATING BASICS

portation, testing, permits, photographs, small tools, and

clean-up and similar items. It also may include the costs of
bonds and insurance associated with the particular project.

Estimate DocumentationAn estimate should always

include written documentation on how it was developed, and
what is included or excluded. Whether an estimate is order-ofmagnitude, definitive, a bid, or a study, it almost always
becomes a benchmark against which future estimates or costs
are measured. If litigation should develop, a court case can be
won or lost based on the information that was used to develop
an estimate; it is often difficult to know what information was
used and what assumptions were made when comparing
against an estimate that was developed months or even years
before. To avoid such situations, the following should be
included in all written documentation of an estimates preparation.

EscalationEscalation was defined earlier in this chapter as

being an increase in the cost of goods and services over time.
Escalation has the same effect on project costs as interest does
on the value of a savings account; each year becomes a new
base for calculating escalation for the following year. Thus,
escalation is compounded, not added, for multiple years. For
example, if the escalation rate is predicted to be 5 percent per
year for the next five years, an item costing $1.00 today would
cost $1.28 five years from now.
$1.00 x 1.05 x 1.05 x 1.05 x 1.05 x 1.05 = $1.28

Estimate PurposeSince estimates may be prepared to

different standards depending on their intended purpose,
clarify whether the estimate is to be used for a study, a bid,
a budget, or other purpose.

If a project will be completed within a given year, escalation

calculation is relatively easy: simply escalate from the base year
of the cost estimate to the year of construction. When a project
is constructed over multiple years, however, the situation
becomes more complicated, since the material, equipment,
and labor in different years will be subject to different escalation rates. In such situations, the most accurate method of
applying escalation to the project cost is to develop a project
cash flow and calculate escalation for each year. For example,
assume a project is estimated to cost $10,000,000 in 1995 dollars. The cash flow for the project may be:

ScopeProvide a brief overview of what is included in the

estimate. If it is a study, emphasis should be placed on the
fact that the estimate may only include certain parts of the
overall system cost. If the estimate is for only one of many
contracts within a larger project, this fact should be noted
as well.
Assumptions and ExclusionsIf design information is
incomplete, identify the basis for the estimate. For example, if the boring logs for the site are not available, and piling of a certain length was assumed, note the risk of a significant change occurring when the soil reports are
received. Anything in the project that is excluded from the
estimate should be stressed, even if this seems redundant of
the scope statement.

1997$1,000,000
1998$6,000,000
1999$3,000,000
Assuming the escalation rate to be 5 percent per year, the escalation would be calculated as follows:
1997 $1,000,000 x ((1.05 x 1.05) -1)
= $102,500
1998 $6,000,000 x ((1.05 x 1.05 x 1.05) -1)
= $945,750
1999 $3,000,000 x ((1.05 x 1.05 x 1.05 x 1.05) -1) = $646,519
Total escalation
$1,694,769
Say
$1,695,000

Time/Cost AssociationIndicate the project schedule

that was assumed when applying escalation to the estimate.
Identify the assumed escalation rates.
Contingency DevelopmentExplain the method used to
develop contingency and the rates that were applied.
Contingency often can be the largest single line item in an
estimate, and it deserves special attention.

As can be seen by the above example, escalation is frequently

one of the largest elements in a project cost estimate; yet it
often receives much less attention than many smaller items. If
time and detail permit, the project cost estimate should be analyzed for elements that are volatile in price. For example, in
recent years, copper, aluminum, and petroleum products have
seen significant price swings. If possible, this information
should be considered when preparing the project risk analysis.

Significant FindingsNote any items of significant risk

that were discovered either in developing the estimate or in
performing a formal risk analysis. If costs are available for
a similar project, provide a comparison to those costs.
Include any item that may help the project team improve
the project or the estimate, or that may help sell the project, if this is the objective.

Most companies develop their own escalation forecasts, but

they also use commercial forecasting services that provide short
and long-term escalation trends. In addition, Engineering
News Record often predicts escalation trends in its quarterly
cost reports.

Review CreditsIdentify individuals who have reviewed

the estimate and scope, especially project team members
and clients.

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COST ESTIMATING BASICS

REFERENCES
1.
2.

3.

Cost Engineers Notebook. Morgantown, WV: AACE

International.
Recommended Practice No. 18R-97, Cost Estimate
Classification SystemFor The Process Industry.
Morgantown, WV: AACE International, June 15, 1998.
Neil, James N. Construction Cost Estimating for Project
Control. Englewood Cliffs, NJ: Prentice-Hall, Inc. 1992.

RECOMMENDED READING
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2.

3.
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5.
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8.
9.

10.
11.
12.
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14.
15.

Humphreys, K.K., ed. Jelens Cost and Optimization

Engineering. 3rd edition. New York: McGraw-Hill Book
Co. 1991.
Humphreys, K.K., and L.M. English. Project and Cost
Engineers Handbook. 3rd edition. New York: Marcel
Dekker, Inc. 1993.
Vernon. Realistic Cost Estimating for Manufacturing.
Society of Manufacturing Engineers.
Ostwald, P.F. Cost Estimating for Engineering and
Management. Englewood Cliffs, NJ: Prentice-Hall, Inc.
1974.
Guthrie, K.M. Process Plant Estimating, Evaluating and
Control. Solana Beach, CA: Craftsman Book Co. 1974.
Lorenzoni, A.B., and Forrest D. Clark. Applied Cost
Engineering. New York: Marcel Dekker, Inc. 1996.
Humphreys, K.K., and Paul Wellmann, Basic Cost
Engineering. New York: Marcel Dekker, Inc. 1996.
Bent James A. Applied Cost and Schedule Control. New
York: Marcel Dekker, Inc. 1982.
Bauman, H.C. Fundamentals of Cost Engineering in the
Chemical Industry. Florence, KY: Reinhold Publishing
Co. 1964.
Siddens, Scott, ed. The Building Estimators Reference
Book. 25th ed. Lisle, IL: Frank R. Walker Co., 1995.
Page, J.S. Cost Estimating for Pipelines and Marine
Structures. Houston, TX: Gulf Publishing Co. 1977.
Popper, H. Modern Cost Engineering Techniques. New
York: McGraw-Hill Book Co. 1970.
Curran, M., and W. March. Range Estimating:
Measuring Uncertainty and Reasoning with Risk. Cost
Engineering. Morgantown, WV: AACE International.
Golden, L. Learning to Live With Probable Outcomes.
Morgantown, WV: AACE Transactions.
Krumsky, S.J., and McMahon. Rules for Describing
Estimates. Morgantown, WV: AACE Transactions.

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