Transcript Slide 1

AACE International – Where Are
We, The Path Forward, Why
Membership can Yield a
Phenomenal Return on Your
Investment (ROI)
Presented to the North Florida Section
AACE International
Thursday, May 15, 2008
William E. Kraus PE CCE
President, AACE International
AACE – How Are We Doing Now?
AACE Membership
• Membership currently stands at
approximately 5,906*
• That exceeds the all-time high of 5,839
set in 1992!
• “3 and You’re Free” Campaign
AACE Membership
• Membership currently stands at
approximately 5,906*
• That exceeds the all-time high of 5,839
set in 1992!
• “3 and You’re Free” Campaign
• Diversity in Project Controls and Women in
Project Controls initiatives
AACE Certification
• Certifications are at an all-time high – as of
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9/20/2007, 1,510 individuals hold some 1,592
certifications
Certification on Demand program is increasing
the number of people taking exams
During the summer, a total of 487 people sat for
certification exams – 68% members but 32%
non-members
Given the fee structure to sit for certification
exams and certification renewal, this should lead
to added membership
AACE Certification Programs
• Certified Cost Consultant / Certified Cost
Engineer (CCC / CCE)
• Certified Cost Technician (CCT – formerly
ICC)
• Planning and Scheduling Professional
(PSP)
• Earned Value Professional (EVP)
• Certified Forensic Claims Consultant
(CFCC)
AACE Cert. Programs in
Development
• Certified Portfolio, Program & Project Management (C3PM)
• In development, applications now being accepted
• Competency-based certification versus knowledge (examination) –
based program
• Certification is based on a number of years of verifiable experience
tracked through a logbook process signed off by supervisors and
clients
• Certification requires continued education and appearance before a
peer review panel rather than an exam
• A separate C3PM Certification Board has been created to handle this
new certification
AACE Cert. Programs in
Development
• Certified Estimating Professional
(CEP)
• Is in development (exam beta testing is
complete, certification will go live this
summer in Toronto
• Is for estimators in a broad range of
industries
AACE Certification
• CCC / CCE, CCT, PSP, EVP programs are
accredited by CESB, ICEC
• Application for ISO 17024 Personnel
Certification Program Accreditation is in
progress
• I contend that AACE’s certification
programs are the most effective marketing
vehicle the Association has at present
AACE Education Programs
• AACE has awarded over $800k in
scholarships in its history
• The AACE Education Endowment Fund
was created to provide a means of
perpetually funding education programs
• Education efforts at the section level
continue to prepare attendees for
certification and the practice of project
controls
AACE Publications
Professional Practice Guides (PPGs)
• Contracts and Claims
• Risk
• Cost Engineering in
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Aerospace and Aviation
Planning and Scheduling
Earned Value
Construction Cost
Estimating
Cost Engineering in Utility
Industries
Life Cycle Cost Analysis
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Contingency
Decommissioning Costs
Project Delivery Methods
Environmental
Remediation
• Construction Project
Controls
• Parametric and
Conceptual Estimating
• Business and Program
Planning
Recommended Practices (RPs)
• Cost Engineering Terminology
• Required Skills and Knowledge
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of Cost Engineering
Model Master’s Degree
Program with Emphasis in Cost
Engineering
Recommended Method for
Determining Building Area
Responsibility and Required
Skills for a Project Planning
and Scheduling Professional
Profitability Methods
Developing Location Factors
Forensic Schedule Analysis
• Conducting Technical and
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Economic Evaluations
Cost Estimate Classification
System
Estimate Preparation Costs
Project Code of Accounts
Direct Labor Productivity
Measurement
Identification of Activities
Developing Activity Logic
Estimating Lost Labor
Productivity in Construction
Claims
Time Impact Analysis
AACE Publications
• PSP Certification Study Guide is at the printer,
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hopefully (?) available at the annual meeting
EVP Certification Study Guide is nearing
completion
Skills & Knowledge, 5th Edition and Total Cost
Management Framework currently being
translated into Russian, Japanese, Chinese,
Spanish, and Indonesian. Further translations
planned subject to obtaining grants for
professional translators
AACE Inter-Organization and InterGovernment Relations
• Have cooperative agreements with a
number of governmental agencies, other
associations, and foreign entities such as:
• NAWIC
• DOE
• South Korea
AACE Inter-Organization and InterGovernment Relations
• Have or have in progress reciprocal
certification agreements with several
entities:
• Dutch Association of Cost Engineers
(DACE)
• Royal Institute of Chartered Surveyors
(RICS)
AACE / RICS Certification
Reciprocity Agreement
• We executed the agreement with RICS in
November, 2007
– RICS has ~140,000 members in more than 140
countries worldwide
– All members of RICS are certified
– CCC / CCE may now attain MRICS status
– MRICS / FRICS w/ appropriate number of years’
experience and a 2,500 word professional paper may
now attain CCC / CCE status
AACE Inter-Organization and InterGovernment Relations
• Have held a Board (and associate boards)
meeting in London as the guest of RICS
AACE Financial Health
• Annual meetings, our primary revenue source,
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continue to be successful
52nd Annual Meeting in conjunction with ICEC 6th
World Congress on Cost Engineering, June 29 –
July 2, 2008, Toronto Canada
We are again building reserves (“rainy day”
fund) after tapping them a few years ago
Investments are doing well
AACE – Where Are We Going in the
Future?
• Strategic plan update
• Globalization
AACE – Globalization
• AACE was a charter member of the International
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Cost Engineering Council (ICEC)
AACE is now a member of the Global Alliance for
Project Performance Standards (GAPPS)
Establishing standards that will increase mutual
recognition and transferability of project
management qualifications
Additional cooperative agreements, other
ventures to increase the international influence
of the Association
AACE – Globalization
• AACE is now a member of the Pacific
Association of Quantity Surveyors (PAQS)
• Promoting communication and cooperation
among member organizations
AACE – Globalization
• You might ask, “What does the IRS have
to do with AACE globalization?
AACE - Globalization
• India Regional Section (IRS)
– A local president promoting the establishment of new
sections (also currently the president of the Arabian
Gulf Section)
– Currently three sections (North, Central, and South
India sections)
– We now have approximately 60 members in India and
Pakistan in a massively-populated area (India /
Pakistan) where we previously had very few
AACE - Globalization
• Develop plan for holding meetings
internationally
AACE - Marketing
• AACE must continue to grow to survive
(the big get bigger)
• Economies of scale
• Become large enough to influence project
controls standards and performance
worldwide
• Increased services to members at
increased value
AACE - Certification
• Additional certification programs as
additional areas of need are identified
AACE – Other Areas
• Continue strengthening technical and
educational resources
• Grow the Education Endowment Fund
AACE – So Where’s the ROI?
• Minimum investment is the membership
fee, $130 for those of us in North America
• For a 100% return, simply bring a
minimum of three new members into the
Association (3 and You’re Free program)
• That ROI can recur annually with a
minimum of three new members each
year!
AACE – So Where’s the ROI?
• Or….
• If you’re certified, member recertification fee is
$235 and the non-member fee is $325
• Savings is $325 – 235 = $90 / 3 years = $30
• $30 / $130 membership fee = 23% ROI
AACE – So Where’s the ROI?
• If you’re considering certification….
• Member certification fee = $350
• Non-member fee = $500
• Savings = $500 – 350 = $150
• Annual share = $150 / 3 = $50
• $50 / $130 membership fee = 38% ROI
AACE – So Where’s the ROI?
• Considering buying a publication?
• Approximately 4,100 papers from Cost
Engineering and annual meeting
transactions are available in the virtual
library at no additional charge to members
• PPG – member saves ~$20 over nonmember (15% ROI on membership fee)
• RP – available to members at no additional
charge
AACE – So Where’s the ROI?
• Or, in more intangible terms….
• Networking can yield new associations,
contracts, contacts, employment, and
limitless opportunities
AACE – Comments / Questions
• How has your involvement in AACE
benefited you?
• Where would you like to see the
Association go in the future?
• What are your concerns?