In 1976, AACE International launched its first professional certification, and today, that certification is the Certified Cost Professional (CCP).

Over the past 47 years, the certification examination format for the CCP has evolved from a 2,500-word technical paper accompanied by a paper and pencil exam to the current computer-based examination coupled with a technical paper.

In today’s fast-paced work environment of dashboards, charts and graphs, and summary narratives, the technical paper component of the CCP Examination has become outdated. Yes, there are still applications for 10+ pages of technical data accompanied by a bibliography and footnotes. Still, in more cases than not, the analysis communicated to a busy manager consists of a summary-level narrative that is direct and to the point.

Considering this fact, the CCP Certification Committee of the Certification Board conducted a feasibility study to determine if it was time to update the examination by replacing the technical paper with a more appropriate communication assessment that would better align with today’s workplace culture. The feasibility study results presented an opportunity to enhance the CCP examination by adding a memo component that the candidate would write during the exam instead of the separately prepared technical paper. This in-exam memo would be similar to those presented in AACE’s professional-level certification examinations, such as the CEP, EVP, PRMP, and PSP.

While a CCP technical paper is written outside the examination testing environment, it is part of the overall CCP examination. From the very beginning, the objective of the certification program was to ensure that people receiving a CCP designation demonstrated that they could communicate ideas, statements, recommendations, and solutions logically and reasonably. The CCP examination needed more than just multiple choice and scenario questions; it required a method to evaluate the candidate’s communication skills – how the candidate structured words, analysis, and recommendations. Thus, the requirement to submit an acceptable technical paper that contributed to the candidate’s overall examination scoring was implemented. Fast forward to today. With the advancing technology of CHAT GPT, AI tools, and continuing plagiarism issues, the reliability and validity of using the technical paper component of the CCP examination process to assess candidates’ abilities need to be reevaluated.

After the feasibility study and the resulting opportunity to add the in-exam memo, the CCP Committee conducted a beta test of the memo scenarios prepared to replace the separate technical paper. In April 2023, current CCP technical paper graders volunteered to be the beta testers for the proposed memo scenarios. These volunteers wrote the memo using the Kryterion examination platform, just as it would appear during an actual examination. After writing the memo, the beta testers supplied feedback on the clarity of instructions, the memo scenarios, and the grading process. The CCP Committee reviewed the feedback/comments and made necessary adjustments to the memo scenarios, grading instructions, and grading rubrics. On June 10, 2023, the CCP Committee presented their plan to adopt a new structure for the CCP examination by transitioning from a 2,500-word technical paper to an in-exam memo to the Certification Board, which was unanimously supported.

Therefore, starting in the first quarter of 2024, the CCP certification exam will no longer require a technical paper written before taking the examination. Instead, the CCP examination will incorporate a memo scenario within the computer-based examination context, whereby the candidate will write a short business memo to management relating the analysis and recommendation(s) in response to a given scenario. The in-exam memo will be graded as part of the overall pass/fail result of the CCP examination.

Because the CCP examination is the overarching certification covering a wide variety of topics relating to being a cost professional, the examination will allow the candidate to choose from a selection of scenario memos that focus on evaluating cost and the interaction of cost with the other disciplines of cost engineering. Depending on experience and expertise, the candidate will choose a scenario memo that best matches their competencies based on skills, knowledge, and experience.

The candidate must read the memo scenario and the instructions carefully. The instructions have essential information critical to successfully writing the memo. The candidate will need to evaluate the scenario issue, demonstrate their understanding of the problem, decide what solution or solutions would be appropriate, make a recommendation(s) for what action should be taken, and close the memo.

The Certification Board believes updating the CCP examination format will better reflect the current workplace environment, better assess a candidate’s communication abilities, and amplify the overall skills of the CCP-certified professional.

Charles E. Bolyard, Jr.,  CFCC PSP FAACE Hon. Life, Chair of the Certification Board, applauded the effort of the CCP Committee and stated, “As Chair of the Certification Board of the AACE Certification Institute, I am both excited and pleased that the excellent efforts of our CCP Committee have resulted in the introduction of an enhanced Certified Cost Professional (CCP) Certification Examination format. The transition from a separate technical paper to an integrated memo component within the computer-based testing format for the CCP exam is a welcomed and significant improvement in our professional certification examination offerings across a broad spectrum of industries.”

Stay tuned in the coming months, as the CCP Committee will present tips for how to write the CCP memo and offer more information about this new process. Please direct any questions on this matter to certification@aacei.org.

AACE’s Certification Board again hosted the “Ask Me Anything” series of webinars for each of the seven professional-level (with the two associated technician-level) and expertise-level certifications between April 18 and May 25, 2023. These popular live webinars provide opportunities for potential candidates, examination candidates, and certified individuals to openly discuss with AACE Certification Staff and the members of the Certification Committees of the Certification Board aspects of AACE’s Certification Program.

We appreciate the interest and participation of those attending and asking questions, and we are grateful to the members of the AACE Certification Staff and Certification Board Committees for the advanced preparation and thoughtful responses to the real-time questions posed by participants.

Each of the Ask Me Anything webinars was recorded, and the recordings have been posted to AACE’s website. There is a separate recording for each to include the CCP/CCT, CEP, PSP/CST, EVP, PRMP, DRMP, and CFCC. Please search AACE’s website through the following link to access the recordings – https://web.aacei.org/conferences-events/events/webinars/2023-ask-me-anything-certification-webinars.

The field of questions ranging from the application and registration process to the availability of testing centers and “online proctoring”, to the grading cycles to examination content, and to the availability of study materials for use in preparing to take a certification examination.

The most frequently asked question across all the AMA webinars was “Where can I find previous examinations or old exam questions for use in preparing to sit for one of AACE’s certification examinations?” The response, applicable to all AACE certification examinations, is that the content of our exams is directed to testing the competencies of the candidate(s) that have been acquired through a combination of education, ongoing training, and real-life experience on projects and programs. The candidates are tested on their ability to comprehend the information posed through the question and apply their competencies to arrive at the correct and appropriate response. AACE’s certification examinations are not designed to test the recall or the ability of the candidate to memorize questions/responses from previous exams or material from a test or other technical publication. In other words – AACE does not teach to the exam, which is contrary to what candidates may see in other certification programs. Moreover, AACE’s certifications are independently accredited through the Council of Engineering and Scientific Specialty Boards (CESB), which requires that the question banks supporting AACE’s examination program remain secured and are not disclosed at any level.

Another frequently asked question was –“ where do I look for study materials?” Each of AACE’s certification examinations is supported by a “Study Guide” available through our website at the Certification Hub. The Study Guides and additional training materials such as Online Learning Modules and Seminars in a Box are produced by AACE’s Education Associate Board and are accessible through our website – https://web.aacei.org/conferences-events/education. The Study Guides provide general information for preparation to take an exam and references to applicable AACE Recommended Practices, TCM Framework, and other materials relevant to preparation for taking an exam that are published through AACE’s Technical Associate Board, or as may be found in the public domain. Candidates should also be aware that AACE qualifies Approved Educational Providers (AEPs) which are independent entities that offer sessions aimed at the preparation of candidates for many of AACE’s certification examinations. However, candidates are reminded that participation in any of the preparation sessions offered by AEPs does not guarantee a candidate will be successful in passing the examination.

Another often-received question was – “How will an AACE Certification enhance my career?” AACE is studying responses from certified individuals who responded to a survey aimed at enhancing our Certification Program. Of the responses received thus far over 69% of respondents cited “personal recognition and satisfaction” as a benefit; more than 29% benefited from a “salary increase”; 22% identified “better job opportunities”, and 19% were recipients of a “promotion”.

A certification-specific question was directed at the re-introduction of AACE’s Decision and Risk Management Professional (DRMP) certification, which has been in suspension for approximately 18 months. The DRMP examination is targeted to be re-opened for registration and examinations in the fourth quarter of 2023. The DRMP was suspended during the final development and roll-out of AACE’s Project Risk Management Professional (PRMP). With the PRMP successfully launched, the DRMP Committee undertook the task of restructuring the DRMP examination to more appropriately represent the expertise and skill levels required for the risk assessment and decision-making process expected of those senior-level practitioners possessing the competencies required to exercise decision-making responsibilities. When reintroduced in the fall of 2023, the restricted DRMP examination will be accompanied by a fully restructured DRMP Study Guide.

There are many more questions relevant to each of AACE’s Certification Examinations, as discussed in each of the Ask Me Anything webinars, and we invite you to find the recorded webinar sessions through AACE’s website. After reviewing the AMA webinar recording(s), you are welcome to ask additional questions regarding any of our exams through AACE’s Certification Staff and the Certification Board of AACE’s Certification Institute by emailing your question(s) to certification@aacei.org. We look forward to receiving your application and, with the successful completion of the certification examination, recognizing your accomplishment with the award of an AACE Certification.

The AACE Certification Board is reaching out to the certificants who hold one or more of AACE’s Certifications (CCP, CEP, CFCC, DRMP, EVP, PRMP, PSP) to bring additional attention to the process of Recertification. Certifications within AACE’s Certification Program are independently accredited by the Council of Engineering and Scientific Specialty Boards (CESB). As with any worthwhile licensing and certification program, ongoing experience, education, and training are required to stay current with the changing and advancing nature of the various industries to which AACE’s Certifications are applied and thus drive the need for periodic recertification. AACE encourages each of its certificants (those who achieved certification) to begin the recertification process immediately upon becoming certified or recertified.

The question most asked of the AACE Certification Program regarding Recertification is – Why is recertification important to me? The answer to that question has many facets, not the least of which is your relationship with your employer. Employers look to their professionals to continue to train, educate, and broaden technical acuity as their individual careers advance. Achieving a certification and continuing to periodically recertify demonstrates to your employer that you are committed to ongoing advancement in your chosen technical field. This can have a direct bearing on your position/title and compensation, and, in the grander picture, the ability of your employer to continue to win projects because of your continuing commitment to growth in your professional skills and recognition in the industry.

A benefit of achieving and sustaining certification in good standing is the recognition among your business associates and contacts who work with other entities of the status of your qualifications and your viability as a teaming partner or participant in project opportunities. This carries over into how you are viewed by others with whom you may actively participate in association initiatives that advance the global recognition and acceptance of standards of performance and the impact on the accuracy and quality of work product.

There are downsides to not following through with recertification. The following are examples of the impacts reported to AACE as consequences that can arise from the failure to recertify.

• Representing that one is “certified” when in fact one is not, or the certification is lapsed and not currently recognized as valid, is a violation of the AACE Canons of Ethics relating to an individual’s standing in both membership and certification.
• Companies have reported the loss of opportunities because the professionals whose resumes are presented in proposals to prospective clients do not have the certifications represented or the certifications have lapsed and are not currently recognized as being in good standing by the issuing entity.
• Individuals who work at the expertise levels represented by AACE’s advanced certifications, such as the CFCC, can be denied the opportunity to testify as experts because the status of certifications is misrepresented in their personal qualifications. At the very least it can be embarrassing during questioning to be qualified to testify as an expert or during actual testimony to acknowledge that your certification status is inaccurate or misrepresented.
• Employers do not look favorably on those who fail to maintain certifications in good standing with the organizations under whose auspices the certifications were issued, a circumstance that can adversely impact advancement and compensation.

Another circumstance that we often encounter, and that is worthy of a cautionary discussion, is when a certificant requests and receives “Emeritus” status for certification as a result of retirement from the workforce. Once Emeritus status is granted through the Certification Program, the individual discontinues recertification efforts only to then find that they are reentering the workplace and in need of current certification status. The Emeritus certified professional must reapply for certification, pay any applicable fees, and sit for the exam if at any time in the future, they accept any form of cost engineering-related work.

AACE’s Technician level certifications – the Certified Cost Technician (CCT) and Certified Scheduling Technician (CST) are designed to expire after 4 years and are not eligible for recertification. These two early-career certifications are fully intended as stepping stones or building blocks to set the stage for career advancement/growth and moving upward to AACE’s professional-level certifications.

Within the AACE Certification Program, recertification is required every three (3) years for the professional level and expertise level Certifications. There are two ways to recertify. One way is to sit for the full certification examination every three years. Since 2016, 137 certificants have chosen this path, with 85% passing the reexamination in order to keep their certification active. The remaining 15% who failed the reexamination lose their historical certification details and are required to start over if they wish to be AACE certified (Chart 1):

Why Do We Use the Memo Writing Component of Testing for Potential Certification?

Professionals seeking certification of their career specific experience and training rely heavily on their daily professional activities and their ability to successfully communicate via memos or emails with other project team members or stakeholders. Effective communication regarding pressing project issues and potential resolution of those issues to protect project financial profitability, on-time schedule performance, and/or quality measures, are daily responsibilities. Demonstrating the candidate’s ability to succinctly perform these activities is tested through the memo writing portion of the certification exam efforts.  

What Does the Memo Writing Component Test?

The memo writing component of AACE’s certification examinations is an exercise that tests the ability of the candidate to communicate in writing effectively and efficiently with a project manager, project executive, or other stakeholder regarding a summary analysis of a problem and making a recommendation based on incomplete or conflicting information.  All of this is done while following memo crafting instructions and formatting.  In a memo writing exercise, the candidate is to assume they are communicating with a project manager or other project stakeholder who may not have as much knowledge of the issue and the subject matter provided as the candidate.  The candidate is tasked with summarizing the following for the memo recipient:  

• the nature of the issue(s),
• the impact of the issue,
• the alternate solutions to the issue, and
• a recommended action to resolve the issue.

The candidate should then transfer the ultimate decision-making and follow up activities to the memo recipient for resolution of the issue(s).

How Do You Construct a Test Memo Successfully?

To complete the memo writing activity successfully and efficiently, the candidate should first take the time to read and understand the administrative elements of the memo assignment, to whom the memo is to be addressed, how the project should be described, and how the memo scenario identifies the candidate as writer of the memo. The candidate then summarizes the project issue(s) or problem(s) identified for resolution; the impact of the issue(s) or problem(s) to the project (i.e., cost, schedule and/or quality impacts); and outlines alternative solutions to the issue(s) or problem(s).

The candidate should detail, in their own words, each element of the project issue(s); project impacts, as mentioned previously, their quantitative or qualitative analysis of the alternatives outlined providing support for their recommended solution, concluding with a succinct, recommended action summary.

The candidate will need to keep in mind that the memo outlines the scope of the exercise, and they should strive to work within and with the parameters provided.  Their experience may suggest additional options. However, the specific memo writing assignment provided focuses on using the presented project problem elements to draft a memo that will allow a project manager to take effective action and a successful memo will aim to meet this objective. 

Global Administrative and Memo Format Items to Keep in Mind

The guidance below will prepare the candidate as they prepare their test memo.

The Basics

The candidate’s finished memo should be no longer than a full typewritten page. A multiple-page memo might respond to the assignment, but it will detract from their opportunity to complete the other portions of the exam.

The candidate will need to know their AACE ID# as they will enter it to begin the memo.  The header format for the memo is a traditional business memo format: To, From, Date, Subject, and Project Name including the titles of each named individual.  The Subject should indicate the nature and importance of the problem.

Memo Format and Flow

In the introductory paragraph, the candidate should set the stage for the rest of the memo by clearly familiarizing the recipient with the nature of the issue(s) or problem(s) and the impact that issue has on the project.  This is accomplished by providing adequate background information to set up the scenario. This paragraph should be a complete stand-alone statement of the issue and impact, without further explanations or clarifications.   

In the second paragraph, the candidate should discuss each potential solution to the issue(s) or problem(s).  The problem statement includes the options that should be presented in the memo.  The candidate should address each of them. If the candidate decides the potential solutions are not “complete” and they have a “better” solution, then they may add that solution to the memo.  However, the candidate will not gain credit for presenting alternatives that vary from the problem statement.  The candidate should clearly and succinctly explain the pros and cons of each option, endeavoring to fully present each option in a neutral manner.

In the third paragraph, the candidate should analyze each solution option based upon the data provided in the memo scenario.  Analyze each solution option explaining the cost, schedule and/or quality impact, and the corrective action inherent with implementing each option, as necessary.  An element of this memo exercise is to deal with imperfect, conflicting data.

In the fourth paragraph, the first sentence should present the candidate’s recommendation based on their analysis in a clear, concise, and unambiguous manner.  The candidate’s recommendation should address all impacts and include the supporting arguments to completely represent the pros and cons of implementing your recommendation.  The recommendation should be a stand-alone statement, independent of the other elements of the memo.

In the fifth and final paragraph, the candidate should summarize the memo with a clear, standalone statement, including the recommended solution to the issue and an operational handoff to the project manager.  The candidate should explicitly pass the final decision and implementation action to issue/problem resolution to the project manager, offering to assist, or provide clarification on information in the memo, as needed.

Finally, the candidate should remember to be professional and precise in their writing.  If this guidance is followed, then the candidate will have provided a well-written, successful document.

The AACE Certification Program Staff recently attended the 2022 Institute for Credentialing Excellence (I.C.E.) Exchange in Savannah, Georgia on October 16^th-20^th.

I.C.E. is a professional membership association that provides education, networking, and other resources for organizations and individuals who work in and serve the credentialing industry. I.C.E. is a leading developer of standards for both certification and certificate programs and it is both a provider of and a clearing house for information on trends in certification, test development and delivery, assessment-based certificate programs, and other information relevant to the credentialing community.

The Annual Exchange is a gathering for the credentialing community to exchange ideas on industry trends and best practices, connect with each other, and participate in high quality education. This year’s Exchange offered 75 sessions broken down into seven distinct tracks:

• Beyond Traditional Credentials
• Business of Certification
• Credentialing Innovations
• Marketing and Communications
• Security, Records, and Data Management
• Standards and Accreditation
• Test Development and Administration

Each Certification staff member has provided a summary of their experience and highlighted at least one take-away of something that challenged, intrigued, or excited them.

Sara Peters, Credentialing Analyst

It’s an exciting new era for the AACE certification program!

The journey began in January 2022 when the AACE International Certification Institute was formally incorporated. The Institute’s volunteer Board of Directors was tasked with developing the required fundamental and foundational governing documents. I can report, with pride, all official documents were completed, properly approved, and appropriately filed with state and federal agencies. Click here to review.

The Institute is an affiliated organization of AACE International Inc. with the purpose of overseeing the strategic growth of the renowned certification program. There is and will be a close relationship between AACE International, the Institute, and the Certification Associate Board. 

The Certification Associate Board manages the daily activities of the program and has historically been chartered under the AACE International bylaws. With the incorporation of the Institute, it is now time to transfer the Certification Associate Board and program under the umbrella of the Institute’s bylaws. During the AACE election in March 2023, this transfer will be on the ballot for membership to approve and make official.

Together, we will move the certification program into the future and promote the certifications to individuals and businesses with the intent to broaden the awareness of the benefits in achieving certification. The certification program currently includes nine certifications: Certified Cost Professional (CCP), Certified Cost Technician (CCT), Certified Estimating Professional (CEP), Certified Forensic Claims Consultant (CFCC), Earned Value Professional (EVP), Decision and Risk Management Professional (DRMP), Project Risk Management Professional (PRMP), Certified Scheduling Technician (CST), and Planning & Scheduling Professional (PSP). The CCP, CCT, CEP, CST, EVP, and PSP certifications are independently accredited by the Council of Engineering and Scientific Specialty Boards (CESB). There are currently 4,000 AACE International certification holders worldwide.

As an introduction to the Institute, I would like to present the mission and vision for its future.

The Institute’s mission is: “To provide value through validation, where a certified professional’s competence drives success through expert application of skills, knowledge, and experience.”

The Institute’s vision is: “AACE certifications will be globally recognized as the hallmark of professional excellence.”

As the certification program moves forward, our hope is you will amplify the significance of your own certification or join us by achieving certification. Be part of our mission and vision by adding value to the profession through the validation of your skills, knowledge and experience – be globally recognized for symbolizing professional excellence.

This is an exciting time for the AACE Certification Program – come join us!!

AACE International’s Certification program continues to grow in recognition and strength globally. While challenging to achieve, the industry recognition that comes to those who have achieved our certifications continues at a very robust pace. During the June 2022 Annual AACE International Conference and Exposition, the Certification Board participated with the Technical and Education Associate Boards to provide conference attendees insights into the activities by the AACE headquarters liaisons and the volunteers comprising these three essential bodies within the overall AACE organization. This article is based on that presentation.

As we all know, there have been global impacts from the COVID Pandemic over the past two years. Other circumstances as well have affected AACE’s certificants across the globe. Recognizing that many of our members and certificants did not have the opportunity to attend the 2022 AACE CONEX, we thought it appropriate to provide in a broader forum the status of our Certification Program as we enter the 2022/2023 program year for AACE.

The sources of the information that provide the basis for our certification examinations are shown graphically below. Each of AACE’s certifications is represented by a rigorous examination that challenges the skills and competencies acquired by our candidates through their training and work experiences.

This is a question that pops into most people’s minds the first time they run across the EVP badge, either through a job posting, from colleagues that have earned the credential, or simply by searching the internet for certifications in Earned Value Management (EVM). Further research leads to other questions such as: How do I go about earning the EVP?  What is the effort that goes into attaining it? What are the qualifications I need for it? And finally, is it a valuable credential to own? Here are the answers to these questions…and much more..

What is the EVP?

The EVP, short for Earned Value Professional, is a credential that signifies the badge owner is a practitioner of Earned Value Management with a demonstrated mastery in organizing the scope of a project into meaningful structure by 1) planning, scheduling, and budgeting the project work from initiation through close out; 2) monitoring project progress through performance measurement; 3) analyzing and generating relevant reports regarding project performance; and 4)  managing change to the scope of work throughout the life-cycle of a project. The EVP is one of five professional level certifications offered by AACE International, and is the leading credential in the Earned Value Management world.

The Requirements

The EVP is a professional level credential that instantly speaks to the competencies, knowledge and experience that an EVP

holder possesses. Therefore, the following criteria must be met to be eligible to take the exam:

• 8 years industry related experience or 4 years industry related experience + 4-year industry related college degree

• Adherence to AACE’s Canons of Ethics

Once you apply to take the exam, AACE staff will review your application to ensure that you meet these eligibility requirements. After you are cleared to sit for the EVP, you will have six months to schedule and take the exam.

Studying for the Exam

Having the experience and education that is required to take the EVP exam will go a long way towards helping you pass the exam. You already possess much of the knowledge you will need to successfully make it through the test; however, you may want to prepare for the exam by reviewing the following source materials:

• AACE’s Earned Value Professional Certification Study Guide, 3rd Edition
• AACE’s Skills & Knowledge of Cost Engineering, 6th Edition
• AACE’s Recommended Practices regarding EVM
• AACE’s Total Cost Management Framework
• Earned Value Project Management, 4th Edition
• Practice Standard for Earned Value Management
• Project Management Using Earned Value, 4th Edition
• EIA-748-D(most current version)

The questions on the exam are built on the E

VM principles discussed throughout these sources. Study each of them, and with the knowledge and skills you have gained during your years of experience with Earned Value Management, you should be well prepared to take the test.

Taking the Test

The EVP exam is a closed-book five-hour assessment taken at a pre-approved testing center and has two components. The first is a skills assessment with 119 simple multiple-choice response and compound scenario driven questions covering the following three areas: Planning, Earned Value Management Considerations, and Monitoring Control. Questions from these areas are grouped into three sections, each one accounting for one-quarter of the final assessment. Each exam is unique with questions randomly selected from a question repository. The second portion of the test involves writing a memo to upper management based on a scenario-driven set of data and specific technical questions an EVP may be expected to provide advice on. It accounts for one-quarter of the final assessment. The memo is also randomly selected from a list of scenarios and may appear on the test taker’s screen at any time throughout the exam.

 Questions can be parked in a holding area for later assessment or review. A simple calculator is allowed in the testing area, but there is no problem solving that would involve knowing math at a level higher than addition, subtraction, multiplication, and division.

Passing the Memo

The memo scenario covers a common Earned Value Management area that an experienced EVM practitioner should be knowledgeable in. It measures a person’s ability to communicate an EVM issue in a coherent, professionally written business-type format. The content of the memo is based on a series of questions that memo recipient, unfamiliar with EVM, would like to be educated on. While an objective of the memo exercise is to gauge one’s ability to communicate professionally in a written manner, the overall assessment is heavily weighted towards the technical content of the memo in terms of answering the questions being asked. A type-written page should be sufficient to answer the questions being posed, with the objective being to keep it at a level that the intended recipient can understand. The memo portion of the exam can show up randomly during the test, so keep in mind that it can be addressed immediately, or it can be deferred to the side and worked on at a later time. Since the memo grade is heavily skewed towards the technical content of the memo, obviously the key to passing the memo then is to direct your attention to answering the questions being posed. You should have plenty of time to create the memo, so once it has been written, review the questions being asked, and then ask yourself if your completed memo addresses each of those questions.  

After the Test

Test cycles run from mid-month to mid-month, and because the memo must be manually graded, you will not have the final grading result when you leave the testing center. How long it takes before you know whether you passed depends on when in the monthly cycle you took the EVP exam. All memos taken in a monthly cycle are sent to graders on the 15^th of the month, at the end of the current cycle. For example, if you are taking the exam between May 15^th and June 14^th and take the exam on May 16^th, your memo will not be sent out to be graded until June 15^th, so it will be 30 days before your memo will be assigned to be evaluated, plus an additional 10 days for the graders to complete their assessment. This could result in a time span of 40 days before you know your results. On the other hand, it you take the exam on June 14^th, it will only be one day before the memo is assigned to be graded, plus the 10-day grader assessment period, so you may have your results in as little as 11 days. While the grading for the multiple choice and compound scenario driven questions is calculated at the time you submit your exam, the final results will not be available until the memo is graded. As a final word on the memos, they are each assigned to multiple graders so that they can be fairly assessed by a team and not just by a single person. All candidates will receive a brief electronic survey within 5 days after an examination in order to rate their examination experiences. Responses to the survey will in no way impact exam results. Responses to the survey, however, will be shared with the Certification Team and the AACE Certification Board in order to improve the certification process for future candidates.

Is It Worth It?

So now that you are aware of what you need to know to sit the exam, your question may be “What value will the EVP credential bring me?” Your personal circumstances will dictate the answer to this question, but you can start by asking people with the credential, maybe even some of your co-workers, what it has done for them. AACE International maintains a directory those who hold the EVP Certification. This directory is available through the AACE website and can be searched, and it is entirely possible that you may know and can reach out to some of these EVPs. EVPs comprise an elite group of professionals that are instantly identified by this credential. The EVP is not an easy exam to pass, although it is very achievable with adequate preparation and the requisite experience that’s required to qualify to take the exam. Once you attain the credential, you are instantly recognized as someone that possesses a high level of EVM knowledge and experience, and it makes you an attractive employment candidate for a tremendous number of private and public entities. Having the EVP credential also shows others that you are motivated and have taken the time and effort to stand out amongst your peers in a highly competitive field. The EVP is a valuable credential to have, so if you are on the fence about it, challenge yourself and start the journey now by applying for and taking the EVP exam

By the Certification Board

A successful Project Risk Management Professional (PRMP) beta examination was conducted in June 2021. Since that time, the PRMP Committee has been busy moving toward a final PRMP certification that will be offered to the general public on Monday, May 2, 2022. If you are interested in becoming a PRMP certified by AACE this article will be of interest to you.

The purpose of any professional certification program is to provide a mechanism to formally and objectively evaluate and publicly recognize the capabilities of an individual in a defined skill area. Certification as a Project Risk Management Professional (PRMP) through AACE’s Certification Program recognizes certificants who have demonstrated their professional competence in Project Risk Management (PRM).

The eligibility requirements for a PRMP candidate, eight years of experience or a four-year degree and four years’ experience do not require a certain amount of risk-specific management experience. Such specific and focused risk management experience (minimum of four years) applies only to the expert level DRMP certification. However, the amount of examination study and preparation time to achieve the professional level PRMP is proportionally correlated with a candidate’s actual risk management experience.

Specific risk management topics including terminology, basic concepts, and statistics, as well as planning and implementing the entire risk management process, are fundamental to being successful in achieving the PRMP certification.

PRMP candidates are also expected to have reasonably broad skills, knowledge, and experiences in all aspects of cost engineering in addition to risk management skills and knowledge. While it is not required, candidates will benefit from first passing the CCP examination because of the shared skills and knowledge of Total Cost Management (TCM) and cost engineering in general. A major portion of the examination covers the following supporting skills and knowledge elements such as: cost, cost estimating, planning, and scheduling, procurement and contracts, and ethics.

Finally, communication skills are vital to ensuring that the identification of risks and the impacts if risks remain unmitigated are understood, particularly among stakeholders, decision makers, and managers who have strong expectations and biases. This will be demonstrated in the exam by writing a memo that addresses a specific scenario.

Before investing in the effort and expense required for taking the PRMP exam, candidates should objectively review their understanding, skill, and experience within this diverse body of knowledge.

There are already twenty practicing PRMPs who have successfully qualified for and passed the examination. Please consider joining this elite team and becoming recognized as being among the first PRMPs within AACE.

If you have any questions you can always reach out to Certification Staff at certification@aacei.org or you can view the Ask Me Anything about PRMP/DRMP certification recorded webinar. Click here to learn more.

By Thomas Gueville (primary contributor), Robert Wells, Jay Carson, and Bill Canterbury (CEP Committee members of AACE’s Certification Board)

As described in the previous Part 1 article, published in the December 2021 edition of AACE’s Source, escalation calculations are part of the required skills and knowledge for a Certified Estimating Professional (CEP).

An estimator is to properly understand the differences among contingency, escalation, inflation, and currency variation. All these concepts contribute to cost change and in some circumstances can overlap each other.

Routine estimating cost data maintenance includes updating the costs of equipment, material, labor, etc., needed to estimate the future cost of a project or to bring historical costs to the present. This is because cost estimating, generally, is done in today’s dollars and then escalated to the time when the project will be executed.

Depending on the objective of the escalation calculation, various approaches and methodologies are available which may require different input data and calculation steps. The three main steps to properly escalate an estimate are as follows:

1. Define the purpose of the escalation calculation: Past escalation, that is, bringing a historical estimate up to today’s costs; or future escalation, which is taking a current cost estimate and adjusting costs to the future date of expenditure.

This first point will clarify the methodology to be used.

For past escalation, the Monte Carlo Simulation approach can be disregarded. Methods using indices, based on historical price data and/or input from historical price indices, are the most common practice.

Developing forecast future price index is much more complex and can be developed in different manner:

• Trends based on historical data
• Market survey and/or expert opinion (procurement department as an example)
• Third party providers who can produce databases of forecast indices (that can be built on complex models incorporating historical data, macro-economics, and market surveys).

A reliable forecast model requires effort and resources. Even with the valuable input from economists, estimators should be deeply involved in the model build-up to ensure that indices effectively represent the cost item, but also that the weight and combination of indices properly reflect the project/product.

2. Single Cost Item or Composite Price

This method will be used if you are escalating a cost account using a weighted indices calculation or if only a basic cost estimating relationship (CER) is applicable.

For the single cost item with single point in time and associated relevant index, the final total amount should be equal to the original amount multiplied by the ratio of the price index at the final time and at the initial time.

Final amount = Initial amount x [(Index for later date) / (Index for earlier date)].

For composite price, you should carefully read AACE’s Recommended Practice RP 58R-10, “Escalation Estimating Principles and Methods Using Indices” to perfectly understand various methods, tips, and all the steps to correctly addressing cost over time and cost account detail.

3. Indices or Monte Carlo approach

These two main approaches to escalation are based on similar principles based on the same key inputs:

• Cost estimate
• Schedule
• Spending expenditure within the schedule
• Indices

The Monte Carlo approach adds variability and probability distribution on these elements with potential dependencies and correlations. The main benefit of this approach is to provide more information related to uncertainty related to the escalation, but this requires a more sophisticated model and usually requires additional time and resources. AACE’s Recommended Practice RP 68R-11, “Escalation Estimating Using Indices and Monte Carlo Simulation” can provide guidance and references for these approaches.

The Certified Estimating Professional (CEP) certification ensures that an estimator has the appropriate knowledge of these topics, access to reliable technical resources, and that the calculation can be performed in accordance with AACE’s Recommended Practices.

REFERENCES

AACE International, “RP 58R-10,” AACE International Recommended Practices, May 25, 2011

AACE International, “RP 68R-11,” AACE International Recommended Practices, May 2, 2012