New RP 138R-25: Introduction to Life Cycle Cost Analysis Life cycle cost analysis (LCCA) is a comprehensive economic assessment method used to evaluate the total cost of owning, operating, maintaining, refurbishing, and disposing of an asset over its expected life span. LCCA extends beyond initial acquisition or construction costs to include all subsequent expenses, such as operation, maintenance, upgrades, and eventual disposal costs, as well as the potential savings or benefits over the asset’s life. The primary purpose of LCCA is to assist decision-makers in choosing the most cost-effective option among different competing alternatives. By evaluating the ...

New RP 139R-25: Cost Estimate Classification System - As Applied in Decommissioning for the Offshore Petroleum Exploration and Production Industries As a recommended practice (RP) of AACE International, the Cost Estimate Classification System provides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects). The Cost Estimate Classification System maps the phases and stages of cost estimating together with a generic scope definition maturity and quality matrix, which can be applied across a wide variety of industries and scope content. ...

New RP 137R-25: Owner’s Costs: Definition and Considerations for Estimating This recommended practice (RP) of AACE® International defines the term owner’s costs as used in capital project cost estimating and project control. It also provides a code of accounts structure guideline for owner’s costs. The RP also discusses considerations for effective estimation of and accounting for these costs. In summary, the main objectives of this RP are to improve business, project team and stakeholder communication by: Providing a common industry reference definition Providing a guideline for a code of accounts structure Documenting considerations for effective ...

New RP 131R-23: Introduction to Fault Tree Analysis for Projects This document is intended to provide a guideline, not a standard, for using fault tree analysis (FTA) to improve the quality of the outputs of the project or product by providing a comprehensive and systematic way to identify, assess, and prioritize risks. FTA enhances a decision-maker’s understanding of the complex relationships regarding potential risks or failure points that should be addressed to improve or optimize project outcomes. This document further provides practitioners with the opportunity to improve the reliability of design and to improve the quality by reducing potential failures. ...

127R-23: Choosing Among Strategic Alternatives Using Branching Concepts in Decision Modeling 127R-23: Choosing Among Strategic Alternatives Using Branching Concepts in Decision Modeling The purpose of this recommended practice (RP) is to describe risk analysis concepts that can be used when important alternative selection strategies are being developed by senior leaders. These selections are made well before there is a detailed project plan, schedule, and cost estimate. The RP describes the development of simplified models to assess alternatives under consideration. These models highlight key systemic and project-specific risk characteristics. They provide ...

Getting Back to Basics: Update Schedule Review by the Numbers (Recommended Practice Numbers, that is) Marina G. Sominsky, PSP Ronald M. Winter, PSP FAACE Katherine Baron Abstract Performing an update schedule review, submitted by a 3 rd party, requires a vastly different skill sets than that of creating a schedule. The scheduler who creates a schedule works with a large number of construction professionals who will provide feedback and guidance. Typically, the scheduler who reviews a 3 rd party’s schedule submittal works alone. This process can be quite daunting for the first-time reviewer. The reviewer does not need to work alone as long as there ...