AACE CEP Certified Estimating Professional study guide
AACE CEP Certified Estimating Professional · Work through your exam, one topic at a time.
The Certified Estimating Professional (CEP) is one of the professional certifications offered by AACE International, listed on the association's site alongside the CCP, EVP, PRMP, and PSP credentials under the professional certifications heading. It is aimed at practitioners whose work centers on preparing and defending cost estimates - estimators, cost engineers, and project controls professionals who need to demonstrate competence in estimate development rather than scheduling, risk, or claims specialty work. The AACE CEP Certified Estimating Professional study guide has 6 sections and about 1,720 words.
01Estimating Fundamentals and Concepts
Estimating is the disciplined prediction of the cost and resources required to deliver defined scope. Candidates must distinguish an estimate (a prediction of cost) from a budget (an authorized spending plan) and a bid (a priced offer carrying commercial risk).
326 words, about 2 min02Estimating Methods and Techniques
Estimating methods form a spectrum from top-down to bottom-up. Know capacity factoring (scaling cost by a capacity ratio raised to an exponent), parametric and cost-estimating-relationship (CER) models, analogy , equipment-factored and lang-factor estimates, unit-rate methods, and detailed quantity takeoff with resource build-up.
269 words, about 1 min03Cost and Price Analysis
Cost analysis evaluates the individual cost elements that make up a price-labor hours and rates, material quantities and prices, equipment, subcontracts, indirects, and profit. Price analysis evaluates the reasonableness of a total price without examining every element, using competition, catalog or market comparisons, historical prices, and parametric benchmarks.
290 words, about 1 min04Estimating Processes and Deliverables
A disciplined estimate follows a repeatable sequence: define scope and basis; build or adopt a WBS ; quantify; price resources; apply indirects and markups; add contingency and escalation; review; and document. Candidates should understand the basis of estimate (BOE) as the narrative that records scope, assumptions, exclusions, methods, data sources, and ranges.
306 words, about 2 min05Risk, Contingency, and Escalation
Candidates must keep risk , contingency , and escalation separate. Risk is uncertain future variation in cost or schedule.
248 words, about 1 min06Estimating Management and Integration
Estimating management covers how estimates are planned, resourced, reviewed, and integrated with project controls. Candidates should understand estimate planning (tailoring method and rigor to the decision), resource and data management (historical cost databases, benchmarking, productivity data), and quality assurance through check estimates and independent review.
281 words, about 1 min