Estimating Terminology

Estimating Terminology

There are a number of terms used in the estimating process that should be understood. AACE International
(formerly the American Association of Cost Engineers) developed a glossary of terms and definitions
in order to have a uniform technical vocabulary. Several of the more common terms and definitions
are given below.

 Types of Estimates

There are two broad categories for estimates: conceptual (or approximate) estimates and detailed estimates.
Classification of an estimate into one of these types depends on the available information, the
extent of effort dedicated to preparation, and the use for the estimate. The classification of an estimate
into one of these two categories is an expression of the relative confidence in the accuracy of the estimate.