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AMERICAN SOCIETY OF PROFESSIONAL ESTIMATOR RECOGNITION OF THE CERTIFIED PROFESSIONAL ESTIMATOR |
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GUIDELINES A simpler alternative to State Registration might take the form of a policy decision by the State Architects Office that all State funded construction projects will require an estimate prepared under the supervision of a Certified Professional Estimator. The following is an excerpt from the Greensheet published by the California Council of the American Institute of Architects – 25 May, 1993. The Office of the State Architect (OSA) is requesting submittals from qualified firms, to provide various cost estimating services. Consultants must be thoroughly experienced in the preparation of conceptual, preliminary and final construction cost estimates for complete facilities. Detailed estimates will be required for the general work and all major subcontract trades for office buildings, institutional facilities, and mechanical, electrical or civil engineering projects. Consultants shall provide evidence of competency by a tabulation showing estimates, along with the results of the bidding process. Estimates should be prepared by, or under the supervision, of a Certified Estimator (CPE) as certified by the American Society of Professional Estimators. All interested firms should contact OSA. Deadline for request for Qualification submittals (RFQ) – postmarked July 30, 1993. Here is a list of entities that recognized and required Certified Professional Estimators: State of California Resolution Trust Corporation State of New Jersey General Services Administration State of New Mexico United States Postal Service City of Sacramento, California United States Navy City of San Diego, California District of Columbia 2. State Registration Legislation must be proposed, written and passes by the State / Federal government in order to establish the facilities for registration of construction estimators. This will require sponsorship of a bill and it will be necessary to conduct further research to develop a proposal. Please goto Legislative Template for example. 3. Code of Professional Practice All ASPE members abide by the Code of Ethics. Canon #1 – Professional Estimators shall perform services in areas of their discipline and competence. Canon#2 – Professional Estimators shall continue to expand their professional capabilities through continuing education programs to better enable them to serve clients, Employers and the industry. Canon#3 – Professional Estimators shall conduct themselves in a manner which will promote cooperation and good relations among members of our profession and those directly related to our profession. Canon#4 – Professional Estimators shall safeguard and keep in confidence all knowledge of the business affairs and technical procedures of an employer or client. Canon#5 – Professional Estimators shall conduct themselves with integrity at all times and not knowingly or willingly enter into agreements that violate the laws of the United States of America or of the States in which they practice. They shall establish guidelines for setting forth prices and receiving quotations that are fair and equitable to all parties. Canon#6 – Professional Estimators shall utilize their education, years of experience and acquired skills in the preparation of each estimate or assignment with full commitment to make each estimate or assignment as detailed and accurate as their talents and abilities allow. Canon#7 – Professional Estimators shall not engage in the practice of “bid peddling” as defined by this code. This is a breach of moral and ethical standards, and this practice shall not be entered into by a member of this Society. Canon#8 – Professional Estimators and those in training to be estimators shall not enter into any agreement that may be considered acts of collusion or conspiracy (bid rigging) with the implied or express purpose of defrauding clients. Acts of this type are in direct violation of the code of ethics of the American Society of Professional Estimators. Canon#9 – Professional Estimators and those in training to be estimators shall not participate in acts, such as the giving or receiving of gifts, that are intended to be or may be construed as being unlawful acts of bribery.
A Certificate Stamp and / or Seal is issued to a CPE based upon the understanding he /she abide by the Code of Professional Practice which govern: 1. CPE’s and Their Subordinates 2. Standard Estimating Practice (SEP) 3. Code of Ethics 4. Ethical Conduct 5. Review of Another’s Work 6. Professional Qualifications 7. Defining the Scope of Services 8. Conflicts of Interest 9. Financial Interest 10. Remuneration for Professional Work 11. Influence of Others 12. Solicitation of Work 13. Comparisons 14. Accuracy of Quantities and Prices 15. Professional Estimating Practices 16. Confidential Information 17. Advertisements and Promotion 18. Professional Review 4. Basic Standards for All Estimators Ethics – All members of this Society shall adhere to the Standards of Ethical Practice as defined by the Society and subscribe to these estimating standards in the manner herein delineated. Integrity – It is incumbent upon all estimators to practice the Standards of confidentiality in a manner at least equal to that of other professional societies. The estimator shall at all times keep in strictest confidence information received from outside sources. Commitment to this by all members of this Society shall be implied. Allegiance to this standard by Certified Professional Estimators shall be sworn. The practice, commonly referred to as “bid peddling” is considered a breach of ethics and is condemned by this Society. Attitude – Approach each estimate with a professional, realistic attitude and examine in detail all areas of the work. Set aside specific periods of time each day when the entry of estimate quantities and data may be accomplished without interruption. Total mental concentration is a prime requirement for the preparation of complete, accurate estimates. Judgment – Judgment is an acquired skill that is gained by individual estimators through proper training and extensive experience. The employment of sound judgement and common sense is a key factor in the compilation of accurate estimates and may mean the difference between profit and loss for the company or client. Thoroughness – Allow enough time to thoroughly research and become familiar with the details of the project. Preparation of the fully detailed quantity survey should be completed promptly in order to intelligently discuss any of the various aspects of the project with others that are involved. The estimator with the greatest knowledge of any particular project definitely has the competitive advantage. Awareness – Review the scope of the project to determine whether the company has sufficient financial resources, staff, and plant to successfully complete the project within the time allotted for construction of the project. Thoroughly examine the general conditions of the contract to determine the effect these requirements will have in regards to indirect costs and methods of construction to be employed on the project. Conduct a detailed examination of the special conditions that may alter the intent of the general conditions. Conduct a review of all division specifications to gain a better perspective of the total project scope. The general conditions and the special conditions should be quantified and costed in a manner similar to all other divisions of the specifications. Review the date and time for submittal of the estimate or proposal to ascertain whether there is sufficient time to properly assemble a full detail estimate. Review all sections of the plans to determine the approximate degree of coordination between Architectural and Engineering Drawings. Uniformity – Develop or obtain an adequate system of estimating forms and procedures that exactly meet the specific requirements of the company. This system should provide the ability to quantify exactly the specific material, manhour, and equipment hour quantities required for the project. Material, labor and equipment unit costs are then applied to the quantities as determined in the quantity survey. Application of amounts for overhead and profit are made in the final summaries. Consistency – Employ consistent methods for estimate quantity surveys that are in a logical order consistent with CSI (Construction Specifications Institute) Classifications and that meet the specific needs of the company or client. Use of this consistency enables multiple estimators to complete various divisions of the quantity survey and then combine and coordinate these surveys into the final account summaries. These methods would permit a second estimator to continue the quantity survey from any point where the first estimator stopped. Verification – the methods and logic employed in the quantity survey must be in a form wherein there is an audit trail that may provide means for verifying the accuracy of any portion of the survey. Documentation – All portions of the estimating procedure should be adequately documented in a manner that is logical, consistent and legible. There is often the requirement that the estimators and other personnel must review the original estimate at a point in time when the specific details are mentally vague. The documentation must be clear and logical or it will be of no value to the reader. Such instances may occur in change order preparation, settlement of claims, and review of past estimates in the preparation of new estimates on similar projects. Evaluation – If the estimate being prepared involves the use of bids from subcontractors, these bids must be evaluated for scope and responsiveness to the portion of the project covered by the bid. The past performance records of the subcontractor submitting the bid should be investigated and the level of competence and quality of performance determined. Man Hours – The detailed determination and application of man hours to a quantity survey is the prime factor governing both the accuracy and sufficiency of an estimate. The accuracy of project schedules and work force requirements are dependent upon the detailed definition of man hours in the quantity survey. The combined costs for Workman’s Compensation Insurance and Federal – State Social Security and Unemployment Compensation Insurance are a very significant factor in the final cost of a project. The most accurate and reliable method of including these costs are to define the man hours and wage rates, then apply the applicable percentages to the raw labor costs. Value Engineering – Structure the estimate detail to facilitate the research and development of alternative methods of construction that result in cost optimization for the project. The use of the same levels of detail in value engineering as are used in the base estimate is vital for proper definition of the proposed alternative methods and to provide a more precise comparison of costs. Final Summaries – Determine methods for listing and calculating indirect costs that are not directly field specific. The costs of overhead items such as insurances, home office plant, and administrative personnel are governed by the project scope and duration. Determination of these costs should be accomplished in a manner consistent with quantity survey applications. Company wide work in progress may have a bearing on the projected overhead costs and must be given consideration. Amounts included in the estimate for performance bonding, profits, reserve funds, and shareholder returns are to be determined by each bidder on an individual basis. Analysis – Develop methods for analyzing completed pre-bid estimates to determine if they are reasonable. If it appears that the estimate is beyond the normal range of costs for similar projects, research the detail to determine causes or possible errors. Develop methods for analyzing post-bid estimates to determine the reasons for lack of success in the bidding procedure. Calculate the percent of variance of the estimate from the low bid and low average bids. Determine from outside sources if there were subcontract or material bids used that were not available to you. Determine if the low bidder may have made an omission in the estimate. Properly document this information for future use and guidance. Conversion – Establish estimating procedures that will allow an easy conversion of the estimate detail to field cost control systems that will allow management to monitor and control field activities. These procedures include methods of rapid reporting of field costs in order that problem areas may be evaluated as they occur, rather than at some point in time after the project is complete. Field cost reporting, when accomplished in a manner consistent with the estimating procedures, will enable the estimator to apply the knowledge gained from these historical costs to future estimates. Assist in the training of field personnel in methods of man hour and cost reporting that will provide the level of detail accuracy required. Change Orders – Apply the highest level of detail possible from information provided or available to the estimator. State quantities and costs for all material, labor, equipment, and subcontract items of work. Clearly define amounts to be applied for overheads, profits, taxes, and bonds. Thorough, specific itemization of change order proposals is essential in enabling the client to make accurate determinations and upon approval, the detail may be used as the precise definition of the scope of the change order.
Click here for more information about ASPE Standard Estimating Practices Click here for Main Menu to find ASPE Programs. 5. ASPE /AACE Cooperative Agreement Both the American Society of Professional Estimators (ASPE) and the American Association of Cost Engineers (AACE) believe that utilization of Certified Professional Estimators (CPE’s) and Certified Cost Engineers (CCE’s) by construction contractors would result in significant savings not only to contractors but also ultimately the surety bond producers. It is not the intent of either the ASPE or AACE to promote the utilization of Certified Professional Estimators or Certified Cost Engineers in such a manner as would cause disruption or undo hardship to the construction industry. We therefore propose: A) That the National Association of Surety Bond Producers encourage bond applicants to utilize the services of Certified Professional Estimators (CPE’s) and Certified Cost Engineers (CCE’s) as certified respectively by the American Society of Professional Estimators (ASPE) and the American Association of Cost Engineers (AACE). B) Offer some sort of incentive to contractors that utilize CPE’s and CCE’s. Or C) Establish an industry wide policy that after a 3-5 years grace period utilization of a CPE and a CCE, either as an employee or consultant, will be mandatory. Or D) Same as C) with the exception that contractors not utilizing a CPE and CCE will be charged a higher surety bond fee. Collaborative efforts continue to be made in CPE and CCE recognition and certification.
Click here for Main Menu to find ASPE Programs. Link to AACE. 6. Surety Endorsement
Surety bond producers are interested in the integrity of their contractor clients bidding processes. There is a need to raise the surety industry’s awareness of the Certified Professional Estimator. Companies who use CPE’s will produce more realistic bids than those who do not and that the incidents of seriously underpriced work will decease significantly. Bond producers would want to give careful consideration to a proposal under which sureties would recommend that their principals use CPE’s and thereby reduce losses, offer discounted premiums of a larger credit line or some other financial inducement for their contractors to use CPE’s. Sureties regularly pre-qualify contractors for whom they are asked to write bid bonds and payment and performance bonds. It would seem both reasonable and prudent for bonding agents to want some degree of assurance that those prices are the work product of qualified estimators. This could be accomplished by requiring contractors, as an additional pre-qualification factor, either to have a Certified Professional Estimator on staff or to represent that its bids will be prepared or supervised by an independent Certified Professional Estimator. State and Federal Agencies are increasingly aware of the CPE Stamp and Seal on estimates. It would be a simple step for Sureties to adopt the CPE Stamp and Seal as a bidding requirement for bonding a contractor. Click here for more information on CPE Recognition and Certification. 7. Accreditation of Certification Programs The goals of the American Society of Professional Estimators include coordinating an educational program on a nationwide basis, establishing standards of procedure, organizing avenues of input for the distribution of pertinent information and in general, improving the status of one of the most important members of the construction industry, the estimator. The overall national need for a focused education for the construction estimator is overwhelming. ASPE is filling temporary needs through the “Estimating Academy” Seminars and the Online Classes given. The American Society of Professional Estimators has taken steps to: A. Provide criteria required by Educational Institutions. B. Develop the Program Goals and Objectives. C. Develop the Course of Study (Proposed Curriculum). D. Develop the Instructional Staff. E. Develop the Units of Instruction. F. Develop the Individual Lesson Plans. G. Seek University Approval for CEU Coursework. H. Develop Evaluation of Program and Staff. I. Develop Submittal of Evaluations to National ASPE.
Certificate Programs have been established in past years in conjunction with the California State University Sacramento and the San Jose State University Extended Education Program. ASPE welcomes the opportunity to work with Schools, Colleges, Universities and other Institutions in developing a Certificate Program into their Curriculum. Contact ASPE Education Committee for more information. Click here for more information about ASPE Education Seminars and Online Classes. Link to Directory of Construction Cost Estimating Courses and Programs at American Schools, Colleges, Universities and other Institutions by University of Houston, Texas.
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