AACE International – Where Are We, The Path Forward, Why Membership can Yield a Phenomenal Return on Your Investment (ROI) Presented to the North Florida

AACE International – Where Are AACE International – Where Are We, The Path Forward, Why We, The Path Forward, Why

Membership can Yield a Membership can Yield a Phenomenal Return on Your Phenomenal Return on Your

Investment (ROI)Investment (ROI)

Presented to the North Florida SectionPresented to the North Florida SectionAACE InternationalAACE International

Thursday, May 15, 2008Thursday, May 15, 2008

William E. Kraus PE CCEWilliam E. Kraus PE CCEPresident, AACE InternationalPresident, AACE International

AACE – How Are We Doing AACE – How Are We Doing Now?Now?

AACE MembershipAACE Membership

• Membership currently stands at Membership currently stands at approximately 5,906approximately 5,906**

• That exceeds the all-time high of That exceeds the all-time high of 5,839 set in 1992!5,839 set in 1992!

• ““3 and You’re Free” Campaign3 and You’re Free” Campaign

AACE MembershipAACE Membership

• Membership currently stands at Membership currently stands at approximately 5,906approximately 5,906**

• That exceeds the all-time high of That exceeds the all-time high of 5,839 set in 1992!5,839 set in 1992!

• ““3 and You’re Free” Campaign3 and You’re Free” Campaign

• Diversity in Project Controls and Diversity in Project Controls and Women in Project Controls initiativesWomen in Project Controls initiatives

AACE CertificationAACE Certification

• Certifications are at an all-time high – as of Certifications are at an all-time high – as of 9/20/2007, 1,510 individuals hold some 1,592 9/20/2007, 1,510 individuals hold some 1,592 certificationscertifications

• Certification on Demand program is Certification on Demand program is increasing the number of people taking increasing the number of people taking examsexams

• During the summer, a total of 487 people sat During the summer, a total of 487 people sat for certification exams – 68% members but for certification exams – 68% members but 32% non-members32% non-members

• Given the fee structure to sit for certification Given the fee structure to sit for certification exams and certification renewal, this should exams and certification renewal, this should lead to added membershiplead to added membership

AACE Certification ProgramsAACE Certification Programs

• Certified Cost Consultant / Certified Certified Cost Consultant / Certified Cost Engineer (CCC / CCE)Cost Engineer (CCC / CCE)

• Certified Cost Technician (CCT – Certified Cost Technician (CCT – formerly ICC)formerly ICC)

• Planning and Scheduling Professional Planning and Scheduling Professional (PSP)(PSP)

• Earned Value Professional (EVP)Earned Value Professional (EVP)• Certified Forensic Claims Consultant Certified Forensic Claims Consultant

(CFCC)(CFCC)

AACE Cert. Programs in AACE Cert. Programs in DevelopmentDevelopment• Certified Portfolio, Program & Project Management Certified Portfolio, Program & Project Management

(C3PM)(C3PM)• In development, applications now being acceptedIn development, applications now being accepted• Competency-based certification versus knowledge Competency-based certification versus knowledge

(examination) – based program(examination) – based program• Certification is based on a number of years of verifiable Certification is based on a number of years of verifiable

experience tracked through a logbook process signed off by experience tracked through a logbook process signed off by supervisors and clientssupervisors and clients

• Certification requires continued education and appearance Certification requires continued education and appearance before a peer review panel rather than an exambefore a peer review panel rather than an exam

• A separate C3PM Certification Board has been created to A separate C3PM Certification Board has been created to handle this new certificationhandle this new certification

AACE Cert. Programs in AACE Cert. Programs in DevelopmentDevelopment

• Certified Estimating Professional Certified Estimating Professional (CEP)(CEP)

• Is in development (exam beta testing Is in development (exam beta testing is complete, certification will go live is complete, certification will go live this summer in Torontothis summer in Toronto

• Is for estimators in a broad range of Is for estimators in a broad range of industriesindustries

AACE CertificationAACE Certification

• CCC / CCE, CCT, PSP, EVP programs are CCC / CCE, CCT, PSP, EVP programs are accredited by CESB, ICECaccredited by CESB, ICEC

• Application for ISO 17024 Personnel Application for ISO 17024 Personnel Certification Program Accreditation is in Certification Program Accreditation is in progressprogress

• I contend that AACE’s certification I contend that AACE’s certification programs are the most effective programs are the most effective marketing vehicle the Association has at marketing vehicle the Association has at presentpresent

AACE Education ProgramsAACE Education Programs

• AACE has awarded over $800k in AACE has awarded over $800k in scholarships in its historyscholarships in its history

• The AACE Education Endowment Fund The AACE Education Endowment Fund was created to provide a means of was created to provide a means of perpetually funding education programsperpetually funding education programs

• Education efforts at the section level Education efforts at the section level continue to prepare attendees for continue to prepare attendees for certification and the practice of project certification and the practice of project controlscontrols

AACE PublicationsAACE Publications

Professional Practice Guides Professional Practice Guides (PPGs)(PPGs)• Contracts and ClaimsContracts and Claims• RiskRisk• Cost Engineering in Cost Engineering in

Aerospace and AviationAerospace and Aviation• Planning and SchedulingPlanning and Scheduling• Earned ValueEarned Value• Construction Cost Construction Cost

EstimatingEstimating• Cost Engineering in Cost Engineering in

Utility IndustriesUtility Industries• Life Cycle Cost AnalysisLife Cycle Cost Analysis

• ContingencyContingency• Decommissioning CostsDecommissioning Costs• Project Delivery Project Delivery

MethodsMethods• Environmental Environmental

RemediationRemediation• Construction Project Construction Project

ControlsControls• Parametric and Parametric and

Conceptual EstimatingConceptual Estimating• Business and Program Business and Program

PlanningPlanning

Recommended Practices Recommended Practices (RPs)(RPs)• Cost Engineering Cost Engineering

TerminologyTerminology• Required Skills and Required Skills and

Knowledge of Cost Knowledge of Cost EngineeringEngineering

• Model Master’s Degree Model Master’s Degree Program with Emphasis in Program with Emphasis in Cost EngineeringCost Engineering

• Recommended Method for Recommended Method for Determining Building AreaDetermining Building Area

• Responsibility and Required Responsibility and Required Skills for a Project Planning Skills for a Project Planning and Scheduling Professionaland Scheduling Professional

• Profitability MethodsProfitability Methods• Developing Location FactorsDeveloping Location Factors• Forensic Schedule AnalysisForensic Schedule Analysis

• Conducting Technical and Conducting Technical and Economic EvaluationsEconomic Evaluations

• Cost Estimate Cost Estimate Classification SystemClassification System

• Estimate Preparation CostsEstimate Preparation Costs• Project Code of AccountsProject Code of Accounts• Direct Labor Productivity Direct Labor Productivity

MeasurementMeasurement• Identification of ActivitiesIdentification of Activities• Developing Activity LogicDeveloping Activity Logic• Estimating Lost Labor Estimating Lost Labor

Productivity in Productivity in Construction ClaimsConstruction Claims

• Time Impact AnalysisTime Impact Analysis

AACE PublicationsAACE Publications

• PSP Certification Study Guide is at the PSP Certification Study Guide is at the printer, hopefully (?) available at the annual printer, hopefully (?) available at the annual meetingmeeting

• EVP Certification Study Guide is nearing EVP Certification Study Guide is nearing completioncompletion

• Skills & Knowledge, 5Skills & Knowledge, 5thth Edition and Total Cost Edition and Total Cost Management Framework currently being Management Framework currently being translated into Russian, Japanese, Chinese, translated into Russian, Japanese, Chinese, Spanish, and Indonesian. Further translations Spanish, and Indonesian. Further translations planned subject to obtaining grants for planned subject to obtaining grants for professional translatorsprofessional translators

AACE Inter-Organization and AACE Inter-Organization and Inter-Government RelationsInter-Government Relations

• Have cooperative agreements with a Have cooperative agreements with a number of governmental agencies, number of governmental agencies, other associations, and foreign other associations, and foreign entities such as:entities such as:

• NAWICNAWIC

• DOEDOE

• South KoreaSouth Korea


• Have or have in progress reciprocal Have or have in progress reciprocal certification agreements with several certification agreements with several entities:entities:

• Dutch Association of Cost Engineers Dutch Association of Cost Engineers (DACE)(DACE)

• Royal Institute of Chartered Royal Institute of Chartered Surveyors (RICS)Surveyors (RICS)

AACE / RICS Certification AACE / RICS Certification Reciprocity AgreementReciprocity Agreement

• We executed the agreement with RICS in We executed the agreement with RICS in November, 2007November, 2007– RICS has ~140,000 members in more than 140 RICS has ~140,000 members in more than 140

countries worldwidecountries worldwide– All members of RICS are certifiedAll members of RICS are certified– CCC / CCE may now attain MRICS status CCC / CCE may now attain MRICS status – MRICS / FRICS w/ appropriate number of years’ MRICS / FRICS w/ appropriate number of years’

experience and a 2,500 word professional experience and a 2,500 word professional paper may now attain CCC / CCE statuspaper may now attain CCC / CCE status


• Have held a Board (and associate Have held a Board (and associate boards) meeting in London as the boards) meeting in London as the guest of RICSguest of RICS

AACE Financial HealthAACE Financial Health

• Annual meetings, our primary revenue Annual meetings, our primary revenue source, continue to be successfulsource, continue to be successful

• 5252ndnd Annual Meeting in conjunction with ICEC Annual Meeting in conjunction with ICEC 66thth World Congress on Cost Engineering, June World Congress on Cost Engineering, June 29 – July 2, 2008, Toronto Canada29 – July 2, 2008, Toronto Canada

• We are again building reserves (“rainy day” We are again building reserves (“rainy day” fund) after tapping them a few years agofund) after tapping them a few years ago

• Investments are doing wellInvestments are doing well

AACE – Where Are We Going in AACE – Where Are We Going in the Future?the Future?

• Strategic plan updateStrategic plan update

• GlobalizationGlobalization

AACE – GlobalizationAACE – Globalization

• AACE was a charter member of the AACE was a charter member of the International Cost Engineering Council (ICEC)International Cost Engineering Council (ICEC)

• AACE is now a member of the Global Alliance AACE is now a member of the Global Alliance for Project Performance Standards (GAPPS)for Project Performance Standards (GAPPS)

• Establishing standards that will increase Establishing standards that will increase mutual recognition and transferability of mutual recognition and transferability of project management qualificationsproject management qualifications

• Additional cooperative agreements, other Additional cooperative agreements, other ventures to increase the international ventures to increase the international influence of the Associationinfluence of the Association


• AACE is now a member of the Pacific AACE is now a member of the Pacific Association of Quantity Surveyors Association of Quantity Surveyors (PAQS)(PAQS)

• Promoting communication and Promoting communication and cooperation among member cooperation among member organizationsorganizations


• You might ask, “What does the You might ask, “What does the IRSIRS have to do with AACE globalization?have to do with AACE globalization?

AACE - GlobalizationAACE - Globalization

• India Regional Section (IRS)India Regional Section (IRS)– A local president promoting the establishment A local president promoting the establishment

of new sections (also currently the president of of new sections (also currently the president of the Arabian Gulf Section)the Arabian Gulf Section)

– Currently three sections (North, Central, and Currently three sections (North, Central, and South India sections)South India sections)

– We now have approximately 60 members in We now have approximately 60 members in India and Pakistan in a massively-populated India and Pakistan in a massively-populated area (India / Pakistan) where we previously had area (India / Pakistan) where we previously had very fewvery few

AACE - GlobalizationAACE - Globalization

• Develop plan for holding meetings Develop plan for holding meetings internationallyinternationally

AACE - MarketingAACE - Marketing

• AACE must continue to grow to AACE must continue to grow to survive (the big get bigger)survive (the big get bigger)

• Economies of scaleEconomies of scale

• Become large enough to influence Become large enough to influence project controls standards and project controls standards and performance worldwideperformance worldwide

• Increased services to members at Increased services to members at increased valueincreased value

AACE - CertificationAACE - Certification

• Additional certification programs as Additional certification programs as additional areas of need are additional areas of need are identifiedidentified

AACE – Other AreasAACE – Other Areas

• Continue strengthening technical and Continue strengthening technical and educational resourceseducational resources

• Grow the Education Endowment FundGrow the Education Endowment Fund

AACE – So Where’s the ROI?AACE – So Where’s the ROI?

• Minimum investment is the membership Minimum investment is the membership fee, $130 for those of us in North Americafee, $130 for those of us in North America

• For a For a 100% return100% return, simply bring a , simply bring a minimum of three new members into the minimum of three new members into the Association (3 and You’re Free program)Association (3 and You’re Free program)

• That ROI can recur annually with a That ROI can recur annually with a minimum of three new members each minimum of three new members each year!year!


• Or….Or….

• If you’re certified, member recertification fee If you’re certified, member recertification fee is $235 and the non-member fee is $325is $235 and the non-member fee is $325

• Savings is $325 – 235 = $90 / 3 years = $30Savings is $325 – 235 = $90 / 3 years = $30

• $30 / $130 membership fee = 23% ROI$30 / $130 membership fee = 23% ROI


• If you’re considering certification….If you’re considering certification….

• Member certification fee = $350Member certification fee = $350

• Non-member fee = $500Non-member fee = $500

• Savings = $500 – 350 = $150Savings = $500 – 350 = $150

• Annual share = $150 / 3 = $50Annual share = $150 / 3 = $50

• $50 / $130 membership fee = 38% ROI$50 / $130 membership fee = 38% ROI


• Considering buying a publication?Considering buying a publication?• Approximately 4,100 papers from Cost Approximately 4,100 papers from Cost

Engineering and annual meeting Engineering and annual meeting transactions are available in the virtual transactions are available in the virtual library at no additional charge to library at no additional charge to membersmembers

• PPG – member saves ~$20 over non-PPG – member saves ~$20 over non-member (15% ROI on membership fee)member (15% ROI on membership fee)

• RP – available to members at no additional RP – available to members at no additional chargecharge


• Or, in more intangible terms….Or, in more intangible terms….

• Networking can yield new Networking can yield new associations, contracts, contacts, associations, contracts, contacts, employment, and limitless employment, and limitless opportunitiesopportunities

AACE – Comments / AACE – Comments / QuestionsQuestions

• How has your involvement in AACE How has your involvement in AACE benefited you?benefited you?

• Where would you like to see the Where would you like to see the Association go in the future?Association go in the future?

• What are your concerns?What are your concerns?

Documents

AACE International – Where Are We, The Path Forward, Why Membership can Yield a Phenomenal Return on Your Investment (ROI) Presented to the North Florida