HOW TO STUDY FOR THE

CERTIFICATION
EXAMINATION
by Dr. Aaron Rose

You have made a major decision to become certified.

It is not only recognition by your peers but should also
be recognized by your employer. The question is:
"How do I get ready for the examination?" You have
been working as a cost engineer but like many of your
peers, particularly those working for a large company,
you have become specialized.
You have obtained information for the exam. A
list of exam topics indicates that you must know more
than what your present job entails. If the material is not
new, it may have been covered in your college courses,
but it has been some time since you studied that
material. The idea of certification is that you must be
knowledgeable in all aspects of cost engineering.
What should you do now? You should take the
outline and designate those items that you know well. examination. If your employer will support this effort or
This material will require only a cursory review probably you are willing to personally pay for the seminar, you
a short time before the exam. The remainder of the can get some concentrated learning.
The local
material ought to be divided in two: the material that university or college may have a course in a particular
has been covered in your college class or in a continuing subject that you need. The two-day AACE skills
education course and a second category of new seminar (referred to earlier) does not cover all the
material. At this point, it is important to take stock of subjects; there is not time in a two-day seminar, but it
how best you learn or relearn new skills, ideas, etc. will help you with some subjects and will also help you
Some of us learn easily on an individual basis with a text to plan for further study in areas in which you feel weak.
and sample problems. Others learn best through a
A number of the local sections have arranged
formal education program or short course. For this tutoring sessions for those members interested in
group the skills seminar offered each year at the annual certifying. The tutors are CCCs, CCE or someone
meeting and during the month of January, ought to be expert in a particular area. Others have arranged study
investigated. A third group learns best in a small group sessions with all candidates together with an instructor.
where there is a lot of give-and-take and an opportunity Some sections have formal courses for those preparing
to ask and answer questions. This introspection and for the exam. You need to investigate your local area
evaluation period when you decide how best you learn is and your section to find the mechanism that is best for
very important. This can save you time and, probably, you.
money because you can then plan your study campaign.
If there is much material in your "new" category, this
At this point, you should consult the "Required ought to be attacked first. This allows for some
Skills and Knowledge of a Cost Engineer." Although absorption time before you take the exam. Obviously,
not divided in exactly the same way as the outline for you ought to set a date for taking the exam as soon as
the exam, the material is all there. This information can you have put the material in the three categories of
help you focus on what must be learned.
"new, relearn, and know." Don't say that you will take
There are literally hundreds of specialized seminars the exam when you have finished studying; that won't
available to cover the various parts of the
get the job done. Set a date and plan your studying
accordingly. A PERT, CPM, or precedence diagram
serves a very useful purpose as part of your planning.
As we all know the diagram may be modified but you
won't be prepared unless you set a goal.

AACE INTERNATIONAL RECOMMENDED PRACTICE NO. 11R-88

REQUIRED SKILLS AND KNOWLEDGE OF A COST ENGINEER
Prepared by the AACE Education Board; January 1999

SECTION 1 -- SUPPORTING SKILLS AND KNOWLEDGE

Engineering Economics
Terminology
Computers
Statistics and Probability
Optimization
Productivity Management
Human Relations-Behavioral Science
Organizational Structures
Measurements
SECTION II -- COST ESTIMATING
Estimating Basics
Contractor's Costs
Owners Costs
SECTION III -- COST CONTROL
Work Breakdown Structure and Code of Accounts
Earned Value (also Achieved and Accomplished Value)
Key Cost Control Techniques
SECTION IV -- PLANNING AND SCHEDULING
Planning Basics
Scheduling Basics
Schedule Control
SECTION V -- CONTRACT MANAGEMENT
Contracting Arrangement
Contract Administration
SECTION VI -- ECONOMIC ANALYSIS AND BUSINESS PLANNING
Budgeting and Cash Flow
Value Engineering

AACE International Certification Exam

Introduction
Certification as a Certified Cost Consultant or Certified Cost Engineer requires passage of a written examination including
preparation and acceptance of a professional paper on a Cost Engineering subject. This document provides guidance for preparing to
meet these requirements.
The Written Examination
Exam Basis
The purpose of any professional certification or licensing program is to provide a mechanism to officially and publicly recognize the
capabilities of an individual in a professional area. Certification as a Certified Cost Consultant or Certified Cost Engineer
recognized holders of those certificates as having capabilities encompassing the functions incorporated within the definition of Cost
Engineering. Specifically:
Cost Engineering is that area of engineering practice where engineering judgment and experience are utilized in the application of
scientific principles and techniques to problems of cost estimation; cost control; business planning and management science;
profitability analysis; and project management, planning and scheduling.
It is this definition of Cost Engineering that provides the basis for certification exam design -- the exam must test proficiency across
these areas. The definition of Cost Engineering and the Required Skills and Knowledge of a Cost Engineer document are the basic
"scope" documents for the certification exam. In recognition of this, at least 70% of the questions will relate directly to the basic
skills document; the remainder will explore more advanced areas.
Exam Schedule
There is a 2nd Quarter and a 4th Quarter exam. The 2nd Quarter exam is always given on the Saturday preceding the Annual
Meeting at the meeting site and then two weeks later at different sections. The 4th Quarter exam is held the first Saturday in
December at different sections. This information is updated regularly on the website at: www.aacei.org.
Exam Format
The exam is totally multiple-choice questions. Two parts are open book and two parts are closed book. The broad subject areas
included within each part are listed below. Obviously, not all subjects are covered in each exam. New exams are prepared for each
examination.
Part I (open book) - Supporting Skills and Knowledge
Computer Operations
Operations Research
Management
Probability and Statistics
Basic Business and Finance
Metric - English Conversion
Inflation
Part II (closed book) - Cost Estimating and Control
Elements of Cost
Costing and Pricing
Capital Cost Estimating
Operating/Manufacturing Cost
Cost Indices and Escalation Factors
Estimating Data Sources
Contingency
Budgeting and Cash Flow
Capital Equipment Purchase, Lease, and Rental

Part III (closed book) - Project Management

Organizational Structures
Management Theories, Behavioral Science, and motivational
Planning and Scheduling
Cost Management
Quality Management
Resource Management
Productivity Management
Contracting and Contract Administration
Societal/Legal Issues of Management
Constructability Analysis

Part IV (open book) - Economic Analysis

Value Engineering
Depreciation
Comparative Economic Studies
Profitability
Life Cycle Costs
Time Value of Money
Forecasting
Recognizing that there are many fields of interest within the profession -- Engineering, Construction, Manufacturing, Process,
Mining, Utilities, Transportation, Aerospace, Environmental and Government - you can expect questions in any of these settings.
However, as a practical matter, no one is expected to be conversant in all areas and the exam is designed to take this into account
through its multiple option format and extensive use of questions of general applicability.
Part I of the exam consists of 50 multiple-choice questions. Parts II, III and IV consist of two sections each. The first section has
five compound questions which contain 7 multiple-choice questions each. You will choose to answer only TWO of these compound
questions, resulting in answering only 14 multiple-choice questions for the first section of each part. The second section of each part
consists of 20 multiple choice questions of which all must be answered. (Sample questions attached)
Preparation Guidance
To assist in your preparation for the exam, you should study the list of the Required Skills and Knowledge of a Cost Engineer since it
outlines much of what you need to know. You also have a number of other options. There are training workshops:

 In conjunction with the AACE Annual Meeting, a Foundations for Enhancing Competency in Cost Engineering seminar is
held. This is one of several continuing education courses available at extra cost in conjunction with the annual meeting.
This seminar is also offered in January each year at a different location.

At most annual meetings there is a Skills and Knowledge track within the Technical Program on basic or advanced subjects
in Cost Engineering. A typical track consists of 12-17 one-hour blocks of instruction. Attendance at any or all of these
sessions is open to any meeting registrant. Specific subjects are listed on the Technical Program and described in its
accompanying book of abstracts issued before each annual meeting.

A number of local sections of AACE sponsor formal workshops on Cost Engineering, some specifically intended to assist
candidates in exam preparation. If your section does not have such a workshop, start the ball rolling. Even if no formal
workshop is available, consider a "bootstrap" style workshop wherein you and other candidates meet regularly to teach each
other.
Then there are written reference materials. The following two publications are most recommended - all are available from AACE.
AACE International Certification Study Guide, 2nd edition. and Skills and Knowledge of Cost Engineering, 4th edition.
The following publications are also recommended:
Jelen's Cost and Optimization Engineering, 3rd edition and Project Management: A Reference for Professionals, written by
R. Kimmons and J. Lowree
There are many other publications on the market that can prove helpful also. You can find many of these by visiting AACE's website
bookstore.
The Professional Paper
The professional paper, a pass/fail component submitted as half of the examination, must be of a quality suitable for presentation at
an AACE annual, regional or section meeting; or acceptable for publication in Cost Engineering magazine. You may be able to
submit a recently published article for which you were the primary author also.
Now for specific guidance:

A common mistake among inexperienced writers is to choose too broad a subject area. A paper of 2500 words minimum is
not that long. So, chose a narrow topic area and give it good coverage.

If the paper involves a subject requiring employer review and approval, make certain your bosses know you intend to write
on the subject and get their blessing up front so you won't waste time.

Unless you are an experienced writer, you will need to allow considerable time to develop your subject into a polished
document - a good rule-of-thumb is to make a rough estimate of the time you think you will need and multiply by three.

Think about your paper when you're playing golf, traveling or otherwise have time just to think. You'll be surprised how
ideas suddenly come to you. But, make certain you have some means to jot those ideas down before you forget them.

You should expect to go through several drafts before the final one. If you or your typist has access to a modern word
processor, this process will be greatly simplified. After you complete each draft, set it aside for a couple days, then come
back and review it to see if it makes sense and further refine it.

Keep a copy of the latest draft in your briefcase so you can review it when traveling or at other opportune times. Of course,
it is always helpful to get an outside opinion or two on the paper both for content and presentation.

Most guide books on writing will tell you to outline your subject and then expand from the outline. This is fine, but often
leads to "writer's block" since the writer feels compelled to write the abstract, introduction, main body, etc. in sequence and
can't find the words to get started. some authors, having faced this situation, have found that the best way to get going is to
start the paper anywhere you feel comfortable, usually somewhere in the main body, and work from there. Initially, you
don't even need to document your thoughts in any logical sequence - just write them down as they come to you. With
modern word processors you can readily organize, add, delete, and move text around to provide orderly coverage. Using
this approach, you will probably find that your paper evolves to be somewhat different than originally planned. This leads
to the last bit of advice - wait until the main body is complete before writing your introduction and abstract. Had you
written them first, they probably would no longer fit the paper anyway.

The paper can be given to proctors at the time of the examination or can be mailed directly to AACE Headquarters before
the exam date. Failure to submit a paper on time can result in failing the examination.

GUIDELINES FOR PREPARING COST ENGINEERING PAPERS

Submitting a paper is an important
requirement for becoming a certified cost
consultant or certified cost engineer (CCC/CCE).
The primary purpose is to judge the prospective
certified const consultant's or engineer's ability to
communicate a professional topic clearly and
effectively.
The prospective CCC/CCE must be the
primary author (preferably the sole author) of the
paper, and the body of the paper (excluding
graphs, illustrations, tables, and appendices)
must be at least 2500 words to be acceptable. If
the paper is co-authored, it must be accompanied
by a statement from all authors indicating that
the prospective CCC/CCE has contributed the
majority of ideas and most of the effort for the
paper. Once the authorship and length criteria
are verified, the paper will be evaluated for its
qualities as a professional document by the
AACE Certification Board.
Depending on the presentation styles,
professional environment, and nature of the
material, a paper may be composed and
organized in many different ways. The paper is
expected to be typewritten in English. If it is
written in another language, it must be
accompanied by a translation. The following
guidelines are to be used as a first
approximation and a general guideline in
compiling and editing the paper.
1. TITLE PAGE
Include: title (about 7 to 12 words), author's
ID number, date of authorship.
2. TABLE OF CONTENTS
Include: chapter title, page number, section
title, page number, subsection title, page number
3. LIST OF TABLES
Include: table title, page number
4. LIST OF GRAPHS
& ILLUSTRATIONS
Include: graph or illustration title, page
number
5. ABSTRACT
The abstract should be about 200 to 300
words and highlight three important facets of the
paper in three separate paragraphs.
Paragraph one: summarize introduction;
highlight the previous papers and future possible
applications of the paper; what are the areas of
implementation of the ideas presented and
possible benefits of such implementation.
Paragraph two: summarize the body of the
report; specific objectives of the paper,
procedural details, topics of discussion, methods
of development, and highlights of the results.
Paragraph three:
summarize major
conclusions of this paper and recommendations
for future work in subject area.

11. INTRODUCTION
Considering a broad point of view, what are
the relevance and advantages of similar
considerations
to
the
national
and/or
international economy, economy/ technology,
regional and local industries, etc.?
What
prompted you to choose this specific topic?
What are the possible applications of the results
of similar work? What are the benefits of such
implementations (about 300 words)?
Further, it may be helpful to the reader to
understand the background of the writer and how
the report evolved. Statements such as, The
author was a member of a team assigned to study
cost information flows and reporting procedures
for the ABCD Power Company. This report is a
condensed version of the study results, will
always make a good impression. The author
has drawn fully and freely on his personal
knowledge of the subject of this dissertation
obtained while per-forming the duties of cost
engineer for ACME Construction Ltd, weakens
the presentation and should be avoided.
12. BODY OF THE PAPER
Describe the procedures for data collection, idea
development, observations, survey or whatever
forms the basis of your paper.
In your own words, present and discuss the
more interesting data pertaining to the area of
your paper. Divide all the relevant material into
logical topics and subtopics. In your own words,
discuss each topic and subtopic clearly. All
statements of fact should have a reference
number from the list of references showing
where they can be found in detail. Do not use
telegraphic language or shop talk. Demerits will
be applied to incorrect facts, improper causes
and effects, emotional statements, and
philosophical observations. If there are any
illustrations in the paper, be sure to refer to them
at the appropriate place in the text and indicate
clearly what the illustration is meant to show.
An important facet of the paper is to highlight
your own contribution to the organization,
arrangement, and analysis of the data. Include
techniques, flow charts, computer programs,
organizational charts, and other material that you
may have developed or modified, as part of this
independent paper.
Describe
all
processes,
procedures,
equipment, and theories very clearly.
Pay
attention to spelling and syntax.
Generally, short and concise sentences and
paragraphs contribute to clarity. Using the
logical structure of your paper as a guide,
develop and label each section of the paper. The
label should describe the contents of that
segment of the paper. Further, sections should

be grouped into chapters and labeled

accordingly.
For some papers it may be
appropriate to have several subsections for each
section.
6. ILLUSTRATIONS
(TABLES
AND
GRAPHS)
Include graphic or tabular presentation of
data, ideas, and equipment to clarify the topic of
each section of the paper. Copies of illustrations
from books and magazines should be used only
on rare occasions and then only with the written
permission of the copyright owner. As a rule,
graphs should be neatly presented for viewing
from the right on 8.5 x 11 inch paper. Use
drafting guides for straight or curved lines. The
page number, illustration number, and a
descriptive title of the illustration should be
placed clearly on the page. All the necessary
information to interpret the illustration should be
included on the illustration sheet.
7. CONCLUSIONS
From the results of the paper, what general
comments can you make regarding suitability of
a technique, equipment, procedure, etc.? You
may cite numbers and percentages if they have
already been fully presented in the earlier
sections of the report. Where can these results
be possibly used? Based on your introduction
and data, what should one expect when
implementing your recommendations? On which
general area should follow-up work be
concentrated? Why? All conclusions should be
based on groundwork already established in the
body of the report. Do not introduce any new
material here.
8. SPECIFIC REFERENCES
List articles, books, or reports that you have
read for this paper and that you believe are
specifically relevant to this paper.
9. ACKNOWLEDGEMENTS
List all individuals, companies, and agencies
that have provided useful advice, service,
materials, or information for preparation of your
paper.
10. APPENDICES
On rare occasions, an appendix may be
justified.
This section includes data and
information important to your conclusions but
which could detract from the free flow of
explanation of the main body of the paper.
Attach to your paper any material that you feel
supports or expands your paper.