Why this course?

Description

Certified Estimating Professional – CEP Preparation Course

30-Module Syllabus Aligned with AACE Estimating Recommended Practices (100+ Hours Content)

Course Title: Preparation Course for Certified Estimating Professional – CEP
Course Purpose: To prepare cost estimating professionals for CEP examination concepts and practical project estimating responsibilities using AACE terminology, estimate classification, basis of estimate, estimating methodology, risk, contingency, validation and professional ethics.

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Course Structure at a Glance

Phase	Modules	Main Focus
Phase 1	1–5	Cost engineering and estimating fundamentals
Phase 2	6–10	Estimate planning, scope understanding and quantity development
Phase 3	11–16	Pricing, productivity, indirect costs and estimate build-up
Phase 4	17–21	Estimate classification, basis of estimate, validation and uncertainty
Phase 5	22–26	Risk, contingency, escalation, bidding and lifecycle estimating
Phase 6	27–30	Professional practice, case study, revision and mock examination

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Phase 1: Foundation of Cost Estimating

Module 1: Introduction to AACE and the CEP Professional Role

Sub-Module	Coverage
1.1	Purpose of the CEP certification and role of an estimating professional
1.2	Cost engineering within project planning, budgeting and decision-making
1.3	Responsibilities of estimators working for owners, consultants and contractors
1.4	Overview of the full CEP preparation journey

Learning Outcome: Learners understand the professional role, examination orientation and the connection between estimating and project success.
Practical Exercise: Prepare a responsibility chart for an estimator from project concept to final tender.

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Module 2: Cost Engineering Terminology and Estimating Language

Sub-Module	Coverage
2.1	Estimate, budget, forecast, tender, bid, quotation and control budget
2.2	Direct cost, indirect cost, overhead, profit, allowance and contingency
2.3	Quantity, productivity, unit rate, resource cost and total installed cost
2.4	Accuracy range, uncertainty, risk event and escalation

Learning Outcome: Learners use correct professional terminology consistently.
Practical Exercise: Create a glossary of 50 essential estimating terms with practical examples.

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Module 3: Total Cost Management and the Project Lifecycle

Sub-Module	Coverage
3.1	Project initiation, development, execution, operation and closure
3.2	Estimating requirements at different project stages
3.3	Relationship between scope, time, cost, risk and value
3.4	Cost information required for management decisions

Learning Outcome: Learners understand how estimates support decisions throughout the project lifecycle.
Practical Exercise: Map estimating deliverables against each project stage.

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Module 4: Types of Estimates and Their Business Purpose

Sub-Module	Coverage
4.1	Screening, feasibility, budgetary, control and tender estimates
4.2	Owner estimates versus contractor estimates
4.3	Capital cost estimates and operating cost considerations
4.4	Purpose-driven selection of estimating approach

Learning Outcome: Learners can select the appropriate estimate type for a given business requirement.
Practical Exercise: Identify the correct estimate type for ten project situations.

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Module 5: Reading Scope, Drawings and Technical Information for Estimating

Sub-Module	Coverage
5.1	Scope statements, specifications, drawings and schedules
5.2	Understanding inclusions, exclusions, assumptions and interfaces
5.3	Identifying missing information and scope gaps
5.4	Preparing an estimate information checklist

Learning Outcome: Learners can review technical information before commencing an estimate.
Practical Exercise: Review a sample scope package and prepare a missing-information register.

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Phase 2: Estimate Planning and Quantity Development

Module 6: Estimate Planning and Work Breakdown Structure

Sub-Module	Coverage
6.1	Purpose of estimate planning
6.2	Developing a work breakdown structure for costing
6.3	Cost coding and estimate organisation
6.4	Establishing estimate responsibilities and review stages

Learning Outcome: Learners can organise an estimate in a structured and reviewable manner.
Practical Exercise: Prepare a work breakdown structure for a building or infrastructure package.

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Module 7: Quantity Development Principles

Sub-Module	Coverage
7.1	Quantity measurement principles and unit selection
7.2	Measurement from drawings, schedules and technical descriptions
7.3	Recording dimensions, assumptions and calculation references
7.4	Quantity checking procedures

Learning Outcome: Learners can develop reliable and traceable quantities.
Practical Exercise: Prepare quantity calculations for excavation, concrete, piping or cable routing works.

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Module 8: Conceptual Estimating Techniques

Sub-Module	Coverage
8.1	Estimating when limited project information is available
8.2	Capacity-based estimating relationships
8.3	Factor-based estimating and historical comparison
8.4	Limitations and accuracy concerns in early-stage estimates

Learning Outcome: Learners can prepare early-stage estimates while clearly stating limitations.
Practical Exercise: Develop a preliminary estimate using historical project information and scaling principles.

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Module 9: Detailed Estimating Methodology

Sub-Module	Coverage
9.1	Building an estimate from measurable work items
9.2	Resource-based rate build-up
9.3	Linking quantities with labour, material and equipment inputs
9.4	Detailed estimate checking and summarisation

Learning Outcome: Learners can prepare a detailed bottom-up estimate.
Practical Exercise: Build a detailed estimate for one selected trade package.

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Module 10: Historical Cost Data and Cost Normalisation

Sub-Module	Coverage
10.1	Sources and uses of historical cost data
10.2	Adjusting costs for location, date, quantity and project conditions
10.3	Identifying unsuitable comparison projects
10.4	Maintaining an estimate reference database

Learning Outcome: Learners can use previous project costs responsibly.
Practical Exercise: Normalise costs from three historical projects for comparison.

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Phase 3: Developing the Estimate

Module 11: Material Cost Estimating

Sub-Module	Coverage
11.1	Material quantity, wastage, supply rate and delivery cost
11.2	Taxes, duties, freight, handling and storage considerations
11.3	Quotation comparison and commercial clarifications
11.4	Material cost risk and price validity

Learning Outcome: Learners can prepare a complete material cost build-up.
Practical Exercise: Compare three supplier quotations and recommend an adopted material rate.

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Module 12: Labour Cost Estimating

Sub-Module	Coverage
12.1	Labour categories, wage rates and labour burden
12.2	Productivity, crew composition and working hours
12.3	Overtime, shift work, restricted access and site conditions
12.4	Labour cost calculation and sensitivity checks

Learning Outcome: Learners can calculate labour cost from productivity and wage assumptions.
Worked Formula: Labour cost = Labour hours × Composite hourly rate
Practical Exercise: Prepare labour cost for installation activities under normal and difficult working conditions.

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Module 13: Equipment and Plant Cost Estimating

Sub-Module	Coverage
13.1	Owned versus hired equipment cost considerations
13.2	Operating cost, fuel, maintenance, operator and idle time
13.3	Output-based equipment productivity
13.4	Equipment selection and utilisation assumptions

Learning Outcome: Learners can calculate equipment cost based on output and duration.
Worked Formula: Equipment cost per unit = Total equipment cost ÷ Productive quantity
Practical Exercise: Prepare equipment cost for excavation, lifting or material handling operations.

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Module 14: Productivity Analysis and Crew-Based Estimating

Sub-Module	Coverage
14.1	Definition and importance of productivity
14.2	Factors affecting productivity: access, weather, learning, congestion and supervision
14.3	Developing crew output and labour-hour calculations
14.4	Reviewing productivity assumptions against project conditions

Learning Outcome: Learners can establish realistic productivity assumptions.
Worked Formula: Labour hours = Quantity ÷ Output per hour
Practical Exercise: Develop productivity calculations for three site activities.

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Module 15: Subcontract and Vendor Pricing Evaluation

Sub-Module	Coverage
15.1	Preparing enquiry packages and bid comparison sheets
15.2	Checking scope completeness in quotations
15.3	Normalising exclusions, qualifications and alternative proposals
15.4	Selecting the appropriate price for the estimate

Learning Outcome: Learners can analyse quotations beyond simply selecting the lowest figure.
Practical Exercise: Prepare a commercial comparison of three subcontract offers.

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Module 16: Indirect Costs, Site Overheads and Corporate Overheads

Sub-Module	Coverage
16.1	Temporary facilities, supervision, security, testing and mobilisation
16.2	Time-related and quantity-related indirect costs
16.3	Corporate overhead recovery principles
16.4	Avoiding omissions and double counting

Learning Outcome: Learners can build a complete indirect cost estimate.
Practical Exercise: Prepare an indirect cost schedule for a twelve-month project.

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Phase 4: Estimate Classification, Basis and Validation

Module 17: Estimate Classification and Level of Project Definition

Sub-Module	Coverage
17.1	Purpose of estimate classification
17.2	Relationship between project definition and expected accuracy
17.3	Early-stage versus detailed estimates
17.4	Selecting the suitable estimating method for each class of estimate

Learning Outcome: Learners understand why estimate maturity depends on scope definition.
Practical Exercise: Classify five estimates based on available project information and intended use.

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Module 18: Basis of Estimate – Purpose and Structure

Sub-Module	Coverage
18.1	Meaning and importance of a basis of estimate document
18.2	Project description, scope boundaries and estimate purpose
18.3	Pricing basis, quantities, assumptions, exclusions and allowances
18.4	Risk, contingency, escalation, review and approval records

Learning Outcome: Learners can prepare a professional basis of estimate document.
Practical Exercise: Write the basis of estimate for a selected project package.

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Module 19: Estimate Assumptions, Exclusions and Qualifications

Sub-Module	Coverage
19.1	Why assumptions must be stated clearly
19.2	Scope exclusions and commercial exclusions
19.3	Qualifications caused by incomplete information
19.4	Converting assumptions into future review actions

Learning Outcome: Learners can protect estimate reliability by clearly documenting limitations.
Practical Exercise: Prepare an assumption and exclusion register for an early-stage estimate.

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Module 20: Estimate Review, Validation and Reconciliation

Sub-Module	Coverage
20.1	Independent estimate review principles
20.2	Quantity checks, rate checks and arithmetic checks
20.3	Benchmark comparison and reconciliation with previous estimates
20.4	Management review presentation and approval records

Learning Outcome: Learners can conduct systematic estimate reviews.
Practical Exercise: Review a sample estimate containing deliberate quantity, rate and scope errors.

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Module 21: Estimate Accuracy, Uncertainty and Sensitivity Analysis

Sub-Module	Coverage
21.1	Understanding accuracy ranges and estimate uncertainty
21.2	Key cost drivers and uncertain assumptions
21.3	Sensitivity testing for quantity, rate and productivity changes
21.4	Communicating uncertainty to decision-makers

Learning Outcome: Learners can identify which assumptions have the greatest impact on total cost.
Worked Formula: Cost impact = Revised value – Base value
Practical Exercise: Carry out sensitivity analysis for labour productivity, material price and project duration.

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Phase 5: Risk, Contingency and Commercial Estimating

Module 22: Risk Identification for Cost Estimates

Sub-Module	Coverage
22.1	Difference between uncertainty and risk events
22.2	Technical, commercial, market, execution and schedule risks
22.3	Creating an estimate risk register
22.4	Assigning ownership and response actions

Learning Outcome: Learners can systematically identify cost-related risks.
Practical Exercise: Develop a risk register for a construction or industrial project.

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Module 23: Contingency Estimating Principles

Sub-Module	Coverage
23.1	Meaning and purpose of contingency
23.2	Items normally covered and items normally excluded
23.3	Relationship between estimate maturity, risk and contingency
23.4	Management reserve and contingency distinction

Learning Outcome: Learners understand how contingency supports uncertainty without hiding incomplete scope.
Practical Exercise: Recommend a contingency approach for three different estimate stages.

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Module 24: Quantitative Risk and Contingency Calculations

Sub-Module	Coverage
24.1	Range-based estimating concepts
24.2	Probability, impact and expected cost exposure
24.3	Cost ranges for major uncertain items
24.4	Interpreting confidence levels for management decisions

Learning Outcome: Learners can calculate and explain quantified cost exposure.
Worked Formula: Expected cost exposure = Probability of occurrence × Cost impact
Practical Exercise: Calculate expected exposure for ten identified risks and recommend contingency treatment.

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Module 25: Escalation, Inflation, Currency and Market Conditions

Sub-Module	Coverage
25.1	Difference between base cost, current cost and future cost
25.2	Escalation during procurement and construction periods
25.3	Currency movement and imported material exposure
25.4	Market capacity, supply constraints and pricing volatility

Learning Outcome: Learners can identify and calculate time-related pricing impacts.
Worked Formula: Future cost = Current cost × Escalation factor
Practical Exercise: Prepare an escalation schedule for a multi-year project.

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Module 26: Tender Estimating, Pricing Strategy and Bid Evaluation

Sub-Module	Coverage
26.1	Difference between estimate, tender price and final contract value
26.2	Direct costs, indirect costs, risk allowance, overhead and profit
26.3	Bid qualifications, commercial strategy and competitiveness
26.4	Owner-side bid evaluation and tender reconciliation

Learning Outcome: Learners understand how cost estimates are converted into commercial submissions or tender evaluations.
Practical Exercise: Convert a detailed estimate into a tender pricing summary.

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Phase 6: Application, Ethics and Examination Preparation

Module 27: Change Estimating, Forecasting and Estimate Updates

Sub-Module	Coverage
27.1	Estimating cost impact of design changes and variations
27.2	Updating estimates as scope information improves
27.3	Comparing original budget, approved changes and forecast cost
27.4	Maintaining traceability of estimate revisions

Learning Outcome: Learners can manage evolving estimate information throughout project execution.
Practical Exercise: Prepare a change estimate and revised forecast summary.

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Module 28: Ethics, Professional Judgement and Estimate Communication

Sub-Module	Coverage
28.1	Professional responsibility, honesty and transparency
28.2	Avoiding bias, manipulation and unsupported adjustments
28.3	Communicating estimate limitations to management and clients
28.4	Preparing clear estimating presentations and reports

Learning Outcome: Learners understand the professional behaviour expected from a certified estimating professional.
Practical Exercise: Prepare an executive estimate summary highlighting major risks, assumptions and recommendations.

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Module 29: Integrated CEP Case Study – Complete Estimate Preparation

Sub-Module	Coverage
29.1	Receiving the case study scope, drawings and commercial conditions
29.2	Preparing quantities, rates, indirect costs and pricing summary
29.3	Preparing basis of estimate, risk register, contingency and escalation
29.4	Conducting review, reconciliation and final presentation

Learning Outcome: Learners apply the complete estimating process in one realistic project exercise.

Case Study Deliverables

Deliverable	Requirement
Estimate structure	Organised cost breakdown with clear work packages
Quantity calculations	Traceable quantity sheets
Rate build-up	Labour, material and equipment based rates
Indirect cost schedule	Site and project-level indirect costs
Basis of estimate	Scope, assumptions, exclusions and pricing basis
Risk register	Identified risks with probable cost impacts
Contingency statement	Basis and justification
Executive summary	Final estimate recommendation

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Module 30: CEP Examination Revision and Full Mock Assessment

Sub-Module	Coverage
30.1	Revision of terminology, classification, basis of estimate and estimating methods
30.2	Revision of risk, contingency, escalation, validation and ethics
30.3	Calculation-based practice questions
30.4	Full mock assessment and performance review

Learning Outcome: Learners revise all major estimating competencies and test readiness under examination-style conditions.

Final Assessment Structure

Assessment Component	Weightage
Terminology and core principles test	10%
Quantity and rate build-up assignment	15%
Estimate classification and basis of estimate assignment	15%
Risk, contingency and escalation calculation exercise	15%
Integrated case study estimate	25%
Final mock examination	20%

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AACE Practice Alignment Matrix

CEP Preparation Area	Covered in Modules
Cost engineering terminology	1, 2, 30
Total Cost Management principles	3, 4
Scope understanding and estimate planning	5, 6
Quantity development	7, 9
Conceptual and detailed estimating	8, 9, 10
Resource pricing and productivity	11, 12, 13, 14
Quotations and indirect costs	15, 16
Estimate classification	17
Basis of estimate documentation	18, 19
Estimate review and validation	20
Accuracy, uncertainty and sensitivity	21
Risk and contingency	22, 23, 24
Escalation and market conditions	25
Tender pricing and evaluation	26
Change estimating and forecasting	27
Ethics and professional reporting	28
Integrated application and examination revision	29, 30

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Recommended Practical Templates to Include in the Course

Template No.	Template Name
1	Estimate Information Requirement Checklist
2	Work Breakdown Structure Template
3	Quantity Calculation Sheet
4	Labour Rate Build-Up Sheet
5	Equipment Cost Calculation Sheet
6	Material Quotation Comparison Sheet
7	Subcontract Comparison Sheet
8	Indirect Cost Schedule
9	Historical Cost Normalisation Sheet
10	Basis of Estimate Format
11	Assumption and Exclusion Register
12	Estimate Review Checklist
13	Sensitivity Analysis Sheet
14	Cost Risk Register
15	Contingency Calculation Sheet
16	Escalation Calculation Sheet
17	Tender Pricing Summary
18	Change Estimate Format
19	Executive Estimate Summary
20	CEP Mock Examination Paper

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Suggested Course Outcome

After completing all 30 modules, participants should be able to:

• Understand professional cost estimating terminology and responsibilities.
• Prepare conceptual and detailed estimates using structured estimating principles.
• Develop quantities, rates, indirect costs, allowances and pricing summaries.
• Prepare a professional basis of estimate document.
• Classify estimates according to project definition and intended purpose.
• Identify cost risk, calculate exposure and justify contingency.
• Apply escalation, productivity and uncertainty considerations.
• Review, validate and present estimates professionally.
• Complete an integrated estimate case study.
• Prepare systematically for the CEP examination.