2. 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

3. AACE – How Are We Doing Now?

4. AACE Membership Membership currently stands at approximately 5,906 * Membership currently stands at approximately 5,906 * That exceeds the all-time high of 5,839 set in 1992! That exceeds the all-time high of 5,839 set in 1992! “3 and You’re Free” Campaign “3 and You’re Free” Campaign

6. AACE Membership Membership currently stands at approximately 5,906 * Membership currently stands at approximately 5,906 * That exceeds the all-time high of 5,839 set in 1992! That exceeds the all-time high of 5,839 set in 1992! “3 and You’re Free” Campaign “3 and You’re Free” Campaign Diversity in Project Controls and Women in Project Controls initiatives Diversity in Project Controls and Women in Project Controls initiatives

7. AACE Certification Certifications are at an all-time high – as of 9/20/2007, 1,510 individuals hold some 1,592 certifications Certifications are at an all-time high – as of 9/20/2007, 1,510 individuals hold some 1,592 certifications Certification on Demand program is increasing the number of people taking exams 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 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 Given the fee structure to sit for certification exams and certification renewal, this should lead to added membership

8. AACE Certification Programs Certified Cost Consultant / Certified Cost Engineer (CCC / CCE) Certified Cost Consultant / Certified Cost Engineer (CCC / CCE) Certified Cost Technician (CCT – formerly ICC) Certified Cost Technician (CCT – formerly ICC) Planning and Scheduling Professional (PSP) Planning and Scheduling Professional (PSP) Earned Value Professional (EVP) Earned Value Professional (EVP) Certified Forensic Claims Consultant (CFCC) Certified Forensic Claims Consultant (CFCC)

9. AACE Cert. Programs in Development Certified Portfolio, Program & Project Management (C3PM) Certified Portfolio, Program & Project Management (C3PM) In development, applications now being accepted In development, applications now being accepted Competency-based certification versus knowledge (examination) – based program 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 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 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 A separate C3PM Certification Board has been created to handle this new certification

10. AACE Cert. Programs in Development Certified Estimating Professional (CEP) Certified Estimating Professional (CEP) Is in development (exam beta testing is complete, certification will go live this summer in Toronto 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 Is for estimators in a broad range of industries

11. AACE Certification CCC / CCE, CCT, PSP, EVP programs are accredited by CESB, ICEC CCC / CCE, CCT, PSP, EVP programs are accredited by CESB, ICEC Application for ISO 17024 Personnel Certification Program Accreditation is in progress 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 I contend that AACE’s certification programs are the most effective marketing vehicle the Association has at present

12. AACE Education Programs AACE has awarded over $800k in scholarships in its history 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 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 Education efforts at the section level continue to prepare attendees for certification and the practice of project controls

13. AACE Publications

14. Professional Practice Guides (PPGs) Contracts and Claims Contracts and Claims Risk Risk Cost Engineering in Aerospace and Aviation Cost Engineering in Aerospace and Aviation Planning and Scheduling Planning and Scheduling Earned Value Earned Value Construction Cost Estimating Construction Cost Estimating Cost Engineering in Utility Industries Cost Engineering in Utility Industries Life Cycle Cost Analysis Life Cycle Cost Analysis Contingency Contingency Decommissioning Costs Decommissioning Costs Project Delivery Methods Project Delivery Methods Environmental Remediation Environmental Remediation Construction Project Controls Construction Project Controls Parametric and Conceptual Estimating Parametric and Conceptual Estimating Business and Program Planning Business and Program Planning

15. Recommended Practices (RPs) Cost Engineering Terminology Cost Engineering Terminology Required Skills and Knowledge of Cost Engineering Required Skills and Knowledge of Cost Engineering Model Master’s Degree Program with Emphasis in Cost Engineering Model Master’s Degree Program with Emphasis in Cost Engineering Recommended Method for Determining Building Area Recommended Method for Determining Building Area Responsibility and Required Skills for a Project Planning and Scheduling Professional Responsibility and Required Skills for a Project Planning and Scheduling Professional Profitability Methods Profitability Methods Developing Location Factors Developing Location Factors Forensic Schedule Analysis Forensic Schedule Analysis Conducting Technical and Economic Evaluations Conducting Technical and Economic Evaluations Cost Estimate Classification System Cost Estimate Classification System Estimate Preparation Costs Estimate Preparation Costs Project Code of Accounts Project Code of Accounts Direct Labor Productivity Measurement Direct Labor Productivity Measurement Identification of Activities Identification of Activities Developing Activity Logic Developing Activity Logic Estimating Lost Labor Productivity in Construction Claims Estimating Lost Labor Productivity in Construction Claims Time Impact Analysis Time Impact Analysis

16. AACE Publications PSP Certification Study Guide is at the printer, hopefully (?) available at the annual meeting PSP Certification Study Guide is at the printer, hopefully (?) available at the annual meeting EVP Certification Study Guide is nearing completion EVP Certification Study Guide is nearing completion Skills & Knowledge, 5 th 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 Skills & Knowledge, 5 th 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

17. AACE Inter-Organization and Inter- Government Relations Have cooperative agreements with a number of governmental agencies, other associations, and foreign entities such as: Have cooperative agreements with a number of governmental agencies, other associations, and foreign entities such as: NAWIC NAWIC DOE DOE South Korea South Korea

18. AACE Inter-Organization and Inter- Government Relations Have or have in progress reciprocal certification agreements with several entities: Have or have in progress reciprocal certification agreements with several entities: Dutch Association of Cost Engineers (DACE) Dutch Association of Cost Engineers (DACE) Royal Institute of Chartered Surveyors (RICS) Royal Institute of Chartered Surveyors (RICS)

19. AACE / RICS Certification Reciprocity Agreement We executed the agreement with RICS in November, 2007 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

20. AACE Inter-Organization and Inter- Government Relations Have held a Board (and associate boards) meeting in London as the guest of RICS Have held a Board (and associate boards) meeting in London as the guest of RICS

21. AACE Financial Health Annual meetings, our primary revenue source, continue to be successful Annual meetings, our primary revenue source, continue to be successful 52 nd Annual Meeting in conjunction with ICEC 6 th World Congress on Cost Engineering, June 29 – July 2, 2008, Toronto Canada 52 nd Annual Meeting in conjunction with ICEC 6 th 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 We are again building reserves (“rainy day” fund) after tapping them a few years ago Investments are doing well Investments are doing well

22. AACE – Where Are We Going in the Future? Strategic plan update Strategic plan update Globalization Globalization

23. AACE – Globalization AACE was a charter member of the International Cost Engineering Council (ICEC) AACE was a charter member of the International Cost Engineering Council (ICEC) AACE is now a member of the Global Alliance for Project Performance Standards (GAPPS) 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 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 Additional cooperative agreements, other ventures to increase the international influence of the Association

24. AACE – Globalization AACE is now a member of the Pacific Association of Quantity Surveyors (PAQS) AACE is now a member of the Pacific Association of Quantity Surveyors (PAQS) Promoting communication and cooperation among member organizations Promoting communication and cooperation among member organizations

25. AACE – Globalization You might ask, “What does the IRS have to do with AACE globalization? You might ask, “What does the IRS have to do with AACE globalization?

26. AACE - Globalization India Regional Section (IRS) 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

27. AACE - Globalization Develop plan for holding meetings internationally Develop plan for holding meetings internationally

28. AACE - Marketing AACE must continue to grow to survive (the big get bigger) AACE must continue to grow to survive (the big get bigger) Economies of scale Economies of scale Become large enough to influence project controls standards and performance worldwide Become large enough to influence project controls standards and performance worldwide Increased services to members at increased value Increased services to members at increased value

29. AACE - Certification Additional certification programs as additional areas of need are identified Additional certification programs as additional areas of need are identified

30. AACE – Other Areas Continue strengthening technical and educational resources Continue strengthening technical and educational resources Grow the Education Endowment Fund Grow the Education Endowment Fund

31. AACE – So Where’s the ROI? Minimum investment is the membership fee, $130 for those of us in North America 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) 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! That ROI can recur annually with a minimum of three new members each year!

32. AACE – So Where’s the ROI? Or…. Or…. If you’re certified, member recertification fee is $235 and the non-member fee is $325 If you’re certified, member recertification fee is $235 and the non-member fee is $325 Savings is $325 – 235 = $90 / 3 years = $30 Savings is $325 – 235 = $90 / 3 years = $30 $30 / $130 membership fee = 23% ROI $30 / $130 membership fee = 23% ROI

33. AACE – So Where’s the ROI? If you’re considering certification…. If you’re considering certification…. Member certification fee = $350 Member certification fee = $350 Non-member fee = $500 Non-member fee = $500 Savings = $500 – 350 = $150 Savings = $500 – 350 = $150 Annual share = $150 / 3 = $50 Annual share = $150 / 3 = $50 $50 / $130 membership fee = 38% ROI $50 / $130 membership fee = 38% ROI

34. AACE – So Where’s the ROI? Considering buying a publication? 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 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 non- member (15% ROI on membership fee) PPG – member saves ~$20 over non- member (15% ROI on membership fee) RP – available to members at no additional charge RP – available to members at no additional charge

38. AACE – So Where’s the ROI? Or, in more intangible terms…. Or, in more intangible terms…. Networking can yield new associations, contracts, contacts, employment, and limitless opportunities Networking can yield new associations, contracts, contacts, employment, and limitless opportunities

39. AACE – Comments / Questions How has your involvement in AACE benefited you? How has your involvement in AACE benefited you? Where would you like to see the Association go in the future? Where would you like to see the Association go in the future? What are your concerns? What are your concerns?