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Phase 1: Foundation of Cost Estimating
Module 1: Introduction to AACE and the CEP Professional Role
1-Certified-Estimating-Professional-CEP
Purpose of the CEP certification and role of an estimating professional
Cost engineering within project planning, budgeting and decision-making
Responsibilities of estimators working for owners, consultants and contractors
Overview of the full CEP preparation journey
Module 2: Cost Engineering Terminology and Estimating Language
Estimate, budget, forecast, tender, bid, quotation and control budget
Direct cost, indirect cost, overhead, profit, allowance and contingency
Quantity, productivity, unit rate, resource cost and total installed cost
Accuracy range, uncertainty, risk event and escalation
Module 3: Total Cost Management and the Project Lifecycle
Project initiation, development, execution, operation and closure
Estimating requirements at different project stages
Relationship between scope, time, cost, risk and value
Cost information required for management decisions
Module 4: Types of Estimates and Their Business Purpose
Screening, feasibility, budgetary, control and tender estimates
Owner estimates versus contractor estimates
Capital cost estimates and operating cost considerations
Purpose-driven selection of estimating approach
Module 5: Reading Scope, Drawings and Technical Information for Estimating
Scope statements, specifications, drawings and schedules
Understanding inclusions, exclusions, assumptions and interfaces
Identifying missing information and scope gaps
Preparing an estimate information checklist
Phase 2: Estimate Planning and Quantity Development
Module 6: Estimate Planning and Work Breakdown Structure
Purpose of estimate planning
Developing a work breakdown structure for costing
Cost coding and estimate organisation
Establishing estimate responsibilities and review stages
Module 7: Quantity Development Principles
Quantity measurement principles and unit selection
Measurement from drawings, schedules and technical descriptions
Recording dimensions, assumptions and calculation references
Quantity checking procedures
Module 8: Conceptual Estimating Techniques
Estimating when limited project information is available
Capacity-based estimating relationships
Factor-based estimating and historical comparison
Limitations and accuracy concerns in early-stage estimates
Module 9: Detailed Estimating Methodology
Building an estimate from measurable work items
Resource-based rate build-up
Linking quantities with labour, material and equipment inputs
Detailed estimate checking and summarisation
Module 10: Historical Cost Data and Cost Normalisation
Sources and uses of historical cost data
Adjusting costs for location, date, quantity and project conditions
Identifying unsuitable comparison projects
Maintaining an estimate reference database
Phase 3: Developing the Estimate
Module 11: Material Cost Estimating
Material quantity, wastage, supply rate and delivery cost
Taxes, duties, freight, handling and storage considerations
Quotation comparison and commercial clarifications
Material cost risk and price validity
Module 12: Labour Cost Estimating
Labour categories, wage rates and labour burden
Productivity, crew composition and working hours
Overtime, shift work, restricted access and site conditions
Labour cost calculation and sensitivity checks
Module 13: Equipment and Plant Cost Estimating
Owned versus hired equipment cost considerations
Operating cost, fuel, maintenance, operator and idle time
Output-based equipment productivity
Equipment selection and utilisation assumptions
Module 14: Productivity Analysis and Crew-Based Estimating
Definition and importance of productivity
Factors affecting productivity: access, weather, learning, congestion and supervision
Developing crew output and labour-hour calculations
Reviewing productivity assumptions against project conditions
Module 15: Subcontract and Vendor Pricing Evaluation
Preparing enquiry packages and bid comparison sheets
Checking scope completeness in quotations
Normalising exclusions, qualifications and alternative proposals
Selecting the appropriate price for the estimate
Module 16: Indirect Costs, Site Overheads and Corporate Overheads
Temporary facilities, supervision, security, testing and mobilisation
Time-related and quantity-related indirect costs
Corporate overhead recovery principles
Avoiding omissions and double counting
Phase 4: Estimate Classification, Basis and Validation
Module 18: Basis of Estimate – Purpose and Structure
Meaning and importance of a basis of estimate document
Project description, scope boundaries and estimate purpose
Pricing basis, quantities, assumptions, exclusions and allowances
Risk, contingency, escalation, review and approval records
Module 19: Estimate Assumptions, Exclusions and Qualifications
Why assumptions must be stated clearly
Scope exclusions and commercial exclusions
Qualifications caused by incomplete information
Converting assumptions into future review actions
Module 20: Estimate Review, Validation and Reconciliation
Independent estimate review principles
Quantity checks, rate checks and arithmetic checks
Benchmark comparison and reconciliation with previous estimates
Management review presentation and approval records
Module 21: Estimate Accuracy, Uncertainty and Sensitivity Analysis
Understanding accuracy ranges and estimate uncertainty
Key cost drivers and uncertain assumptions
Sensitivity testing for quantity, rate and productivity changes
Communicating uncertainty to decision-makers
Phase 5: Risk, Contingency and Commercial Estimating
Module 22: Risk Identification for Cost Estimates
Difference between uncertainty and risk events
Technical, commercial, market, execution and schedule risks
Creating an estimate risk register
Assigning ownership and response actions
Module 23: Contingency Estimating Principles
Meaning and purpose of contingency
Items normally covered and items normally excluded
Relationship between estimate maturity, risk and contingency
Management reserve and contingency distinction
Module 24: Quantitative Risk and Contingency Calculations
Range-based estimating concepts
Probability, impact and expected cost exposure
Cost ranges for major uncertain items
Interpreting confidence levels for management decisions
Module 25: Escalation, Inflation, Currency and Market Conditions
Difference between base cost, current cost and future cost
Escalation during procurement and construction periods
Currency movement and imported material exposure
Market capacity, supply constraints and pricing volatility
Module 26: Tender Estimating, Pricing Strategy and Bid Evaluation
Difference between estimate, tender price and final contract value
Direct costs, indirect costs, risk allowance, overhead and profit
Bid qualifications, commercial strategy and competitiveness
Owner-side bid evaluation and tender reconciliation
Phase 6: Application, Ethics and Examination Preparation
Module 27: Change Estimating, Forecasting and Estimate Updates
Estimating cost impact of design changes and variations
Updating estimates as scope information improves
Comparing original budget, approved changes and forecast cost
Maintaining traceability of estimate revisions
Module 28: Ethics, Professional Judgement and Estimate Communication
Professional responsibility, honesty and transparency
Avoiding bias, manipulation and unsupported adjustments
Communicating estimate limitations to management and clients
Preparing clear estimating presentations and reports
Module 29: Integrated CEP Case Study – Complete Estimate Preparation
Receiving the case study scope, drawings and commercial conditions
Preparing quantities, rates, indirect costs and pricing summary
Preparing basis of estimate, risk register, contingency and escalation
Conducting review, reconciliation and final presentation
Module 30: CEP Examination Revision and Full Mock Assessment
Revision of terminology, classification, basis of estimate and estimating methods
Revision of risk, contingency, escalation, validation and ethics
Calculation-based practice questions
Full mock assessment and performance review