Significance and Use
4.1 Program and project estimates are a necessary part of planning and implementing any program of work.
4.2 These estimates are used by persons involved in the planning and management of programs and projects. They are an essential part of establishing initial budgets and provide a framework for continuing updates permitting cost control through the life of a program and its various projects.
4.3 Users include owners, developers, facilities programmers, financial managers, company controllers, executives, program managers, project managers, and specialist cost planners including life cycle cost analysts.
4.4 They are also of use in risk management, and also provide a consistent list of major activity phases for use in program and project time schedules.
Scope
1.1 This classification establishes a classification of cost summaries for use when estimating program and project costs.
1.2 This classification can be applied to construction programs and projects that include one or more construction work projects.
1.3 This classification is not based on permanent physical elements of construction (as defined and classified in Classification E1557 for example); rather, the classification items are cost components common to most program and project estimates.
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.
1.5 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
