Technical Board Liaison: H. Lance Stephenson, CCP FAACE
This subcommittee is responsible for defining and developing methodologies for the optimal use of capital for new ventures and proposed projects at key points during the life cycle. Disciplines covered include basic engineering economics, formal economics, probability and statistics, and cost engineering. The subcommittee has four goals: to accumulate, evaluate, and disseminate information regarding the comprehensive appraisal of new ventures and proposed projects and processes for investment return and risk; to define, develop, and integrate techniques used in profitability studies, including lease/buy analysis, life-cycle cost, design and programmatic uncertainty, and project budgeting; to provide a forum for Association members to seek agreement on industry-wide approaches to profitability analysis and standards and the study of new ventures; and to promote the goal of TCM that lies fundamentally in profitability concepts.
An important function of a subcommittee is the development of AACE recommended practices (RPs). These are peer-reviewed documents (usually < 10 pages) that define the specifics of particular methods or procedures, often derived from past papers and articles. Click here to learn more about the RP Development Guidelines and Process.