4.1 Use of this classification will improve communication among all the stakeholders involved with preparing, evaluating, and using cost estimates.4.2 The various parties that use cost estimates often misinterpret the quality and value of the information available to prepare cost estimates, the various methods employed during the estimating process, the accuracy level expected from estimates, and the level of risk associated with estimates.4.3 This classification applies the degree of project definition as the primary characteristic for determining an estimate’s classification.4.4 Using this classification will help those involved with project estimates to avoid misinterpretation of the various classes of cost estimates and to avoid their misapplication and misrepresentation. Improving communications about estimate classifications reduces business costs and project cycle times by avoiding inappropriate business and financial decisions, actions, delays, or disputes caused by misunderstandings of cost estimates and what they are expected to represent.4.5 This classification is intended to be generic and so provide a system for the classification of cost estimates in any industry. There are also references to specific industries, for cost 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 reporting information when used as an adjunct to Practice E1804.1.1 This classification provides a generic classification system for cost estimates and provides guidelines for applying the classification to cost estimates.1.2 This classification maps the phases and stages of cost estimating to a generic maturity and quality matrix, keyed to a degree of project definition, that can be applied across a wide variety of industries.1.3 The Cost Estimate Classification System has been developed in a way that:1.3.1 provides a common understanding of the concepts involved with classifying cost estimates;1.3.2 defines and correlates the major characteristics used in classifying cost estimates, and;1.3.3 uses the degree of project definition as the primary characteristic used to categorize estimate classes.1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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5.1 In addition to its cost management and project management functions, the ECES can also be used to support a number of other program and project functions. These functions include:5.1.1 Bid solicitation, collection, and evaluation;5.1.2 Communicating project data between installations, complexes, agencies, and industry;5.1.3 Providing a project checklist;5.1.4 Cost and schedule estimating;5.1.5 Historical cost/schedule data collection;5.1.6 Historical project data collection (for example, technology deployments, project conditions);5.1.7 Validating and calibrating cost estimates and software tools; and5.1.8 Establishing and disseminating best practices and lessons learned.5.2 Several government agencies are already incorporating this structure into existing and future cost estimating models, databases, and other similar software tools and systems.1.1 The Environmental Cost Element Structure (ECES) covered by Classification E2150 (and Adjunct E2150) provides a consistent and comprehensive structure across all phases of environmental remediation projects and is a tool to improve the cost management of those projects. This guide is intended to facilitate the application of the ECES to any environmental remediation project, without regard to project size.1.2 Classification E2150 establishes the broad, top-level framework for environmental remediation projects by providing a hierarchical list of project elements to two levels of detail. Its associated Adjunct E2150 supports the top-level structure by providing more detailed elements and definitions of the ECES to three additional levels of detail. Although it is assumed that the user is familiar with Classification E2150, much of the content of the classification is repeated in this guide to relieve the user of the burden of back-and-forth referencing during use. It is assumed, however, that all users of this guide will have at hand both Classification E2150 and the Adjunct E2150 during project planning.1.3 The values stated in SI units are to be regarded as standard. No other units of measurement are included in this standard.1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.1.5 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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