capital cost estimate class 3 -onshore guideline

7/17/2019 Capital Cost Estimate Class 3 -Onshore Guideline

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Capital Cost Estimate Class 3 -OnshoreGuideline

Document No: PDP-0310

2-Oct-06

Level 12, 141 Walker Street, North Syney NSW 2060, !u"tral#a$61 2 %&23 6%66$61 2 %&23 6%''

WorleyPar"on" L#m#te

!(N 61 001 2'& %12

) *o+yr#ht 2010 a."troy /n#neer#n n#a Pvt Lt



CAPITAL COST ESTIMATE CLASS 3 -ONSHORE GI!ELINE

S"NOPSIS

h#" ocument outl#ne" the u#el#ne or +re+ar#n a *la"" 3 co"t e"t#mate ur#n the De#ne Pha"e

PRO#ECT P!P-$3%$ - CAPITAL COST ESTIMATE CLASS 3 -ONSHORE GI!ELINE

RE& !ESCRIPTION ORIG RE&IE' (EIPLAPPRO&AL

!ATE CSTOMERAPPRO&AL

!ATE

0 ""ue or u"e

! Drulle 5e#lly 5e#lly

2-Oct-06 N!

002-000-PW-1%7 80172''9 PDP-0310 Corporate )ase Pae 25ev 1 831-Oct-069




CONTENTS

!++en#ce"3

1 ntrouct#on 4

2 *la"" 3 /"t#mate" 7

3 Pre-/"t#mate !ct#v#t#e" 6

4 /"t#mat#n ethooloy 13

7 *u"tomer /"t#mate n+ut 2&

6 /n#neer#n /"t#mate n+ut 30

' Procurement /"t#mate n+ut 3'

% *on"truct#on /"t#mate n+ut 3%& #"tor#cal Data 3&

10 /"t#mate Pre"entat#on ;ormat 40

11 Documentat#on (a"#" or /"t#mat#n 41

12 5e"+on"#<#l#ty a<le 42

Appendices

!++en#= 1 > *o"t /"t#mate *la""##cat#on ?u#el#ne

PDP-001'

!++en#= 2 > anual La<our 5ate Develo+ment ?u#el#ne PDP-002&

!++en#= 3 > /n#neer#n ran"m#ttal or *o"t /"t#mate n+ut PD;-1006




%* INTRO!CTION

he *la"" 3 e"t#mate #" the mo"t #m+ortant e"t#mate, a" #t act" a" the "te++#n "tone to +ro@ect

a++roval an econom#c evaluat#on he hour" an t#me to +re+are th#" ty+e o e"t#mate "houl

<y noA mean" <e unere"t#mate t #" an #nterate eort, an #ncor+orate" en#neer#n,

+rocurement, con"truct#on an e"t#mat#n a" a team to el#ver a "ucce""ul e"t#mate

he *la"" 3 e"t#mate #" normally <a"e on a #rm "co+e an a +rel#m#nary e"#n e#n#t#on !t

th#" +ha"e o the +ro@ect, e"#n en#neer#n #" u"ually <etAeen 7 > 10 +ercent com+lete he

eneral accuracy rane or a ea"#<#l#ty or control e"t#mate #" B$-17C *o"t e"t#mate" #ncrea"e

#n accuracy at every +ha"e ur#n the evelo+ment o a +ro@ect hereore, th#" ty+e o

e"t#mate coul <e u+at#n rom a *la"" 2 e"t#mate <y #ncor+orat#n "co+e re#nement", e"#n

evelo+ment", an +r#c#n +rov#e <y +otent#al "u++l#er" *la"" 3 e"t#mate" normally +rov#e

one or more o the olloA#n:

• ! mechan#"m or a cu"tomer to +re"ent to the <oar or +ro@ect "anct#on, A#th "u#c#ent

con#ence #n "eek#n +ro@ect #nanc#n

• /"ta<l#"h a +ro@ect <uet

• ! yar"t#ck to control co"t" at the e=ecut#on +ha"e

• (a"#" or evaluat#n uture chane" #n "co+e

• ! <a"#" or neot#at#n a contract

• ;or #nclu"#on #n a (anka<le Document




+* CLASS 3 ESTIMATES

+*% Purposeh#" u#el#ne are""e" the a++ro+r#ate act#v#t#e" to "u++ort the e"t#mate an to e"ta<l#"h the

metho" to <e u"e or evelo+#n a *la"" 3 e"t#mate

he *la"" 3 e"t#mate u#el#ne are""e" the olloA#n #""ue"

• Pre-e"t#mate act#v#t#e"

• /"t#mate methooloy an co"t e"t#mat#n +r#nc#+le" a++l#ca<le to the e"t#mate

+re+arat#on

• /"t#mate Structure - *oe o !ccount" 8;ac#l#ty an *ommo#ty coe"9

• /"t#mat#n Sy"tem

• /n#neer#n el#vera<le" reu#re to "u++ort a *la"" 3 e"t#mate

• Procurement el#vera<le" reu#re to "u++ort a *la"" 3 e"t#mate

• *on"truct#on el#vera<le" reu#re to "u++ort a *la"" 3 e"t#mate

• n#rect *o"t"

• *ont#nency an accuracy o the e"t#mate

• /"t#mate 5e+ort#n

• /"t#mate 5ev#eA"

• Et#l#.at#on o #"tor#cal an (enchmark#n Data

h#" u#el#ne "et" out the role" an re"+on"#<#l#t#e", el#vera<le" an "te+" that nee to

<e unertaken to +rouce a *la"" 3 $-17C

+*+ Responsi,ilities

/very #n#v#ual +ro@ect manaer #" re"+on"#<le to en"ure that the *la"" 3 u#el#ne #" o<"erve

an olloAe Ahen +re+ar#n, +re"ent#n an rev#eA#n a ea"#<#l#ty or control e"t#mate

he evelo+ment o a *la"" 3 e"t#mate #" a team eort, an nee" #n+ut rom many other

rou+" !n e=+er#ence e"t#mator #" reu#re to ac#l#tate th#" +roce"" an A#ll nee #n+ut an

"u++ort rom +ro@ect manaement, en#neer#n, +rocurement an con"truct#on to ach#eve the

level o accuracy reu#re at th#" +ha"e o the +ro@ect

he Sen#or or Lea /"t#mator ha" the re"+on"#<#l#ty or eterm#n#n that the "co+e ava#la<le #"

"u#c#ent to com+lete the e"#re cla""##cat#on o e"t#mate reue"te, an that the e"t#mat#n

can real#"t#cally <e accom+l#"he <a"e on the overall "cheule an "ta#n ava#la<#l#ty he

e"t#mator ha" the +r#mary role to ac#l#tate the e"t#mat#n +roce"", an el#ver, +re"ent an

rev#eA a ca+#tal co"t e"t#mate that meet" the accuracy e"#re or th#" *la"" o e"t#mate




3* PRE-ESTIMATE ACTI&ITIES

here are a num<er o act#v#t#e" that nee to occur <eore a *la"" 3 e"t#mate commence" he

ma#n act#v#t#e" are:

• Pro@ect #ck-o eet#n

• /"t#mate PlanF#ck-o eet#n

• S#te G#"#t"


• /"t#mate Scheule

• /"ta<l#"h#n /"t#mate Structure an Pro@ect *oe o !ccount"

• 5eue"t" or #"tor#cal ata an other e"t#mate"

he"e ma#n act#v#t#e" A#ll <e #"cu""e #n eta#l #n the olloA#n "ect#on"

3*% Proe.t (i./-o00 Meetin1

he +ro@ect k#ck-o meet#n #" arrane <y the Pro@ect anaer an #" attene <y the +ro@ect

team, Ah#ch #nclue" /n#neer#n, Procurement, *on"truct#on, /"t#mator" an Pro@ect control"

he #n#t#al k#ck-o meet#n #" to convey to the +ro@ect team the <roa "co+e o the +ro@ect an

outl#ne the ma@or a"+ect" o the a""#nment Other area" or #"cu""#on are commerc#al

a"+ect", cu"tomer o<@ect#ve" an "ta#n #""ue"

3*+ Est imate Plan2(i./ -o0 0 Mee tin1

3 *+ *% Est imate (i./ -o00 Meetin1

he /"t#mate k#ck-o meet#n #" only hel, once the e"t#mate +lan #" evelo+e he Lea

/"t#mator A#ll +rouce the e"t#mate +lan an +re"ent th#" ocument to the key +layer" o the

+ro@ect team he attenee" o th#" meet#n A#ll <e the Pro@ect anaer, Lea D#"c#+l#ne

/n#neer", /"t#mat#n, Procurement an *on"truct#on

he +ur+o"e o th#" meet#n #" to h#hl#ht the e"t#mate reu#rement" an e"ta<l#"h

re"+on"#<#l#t#e" an commun#cat#on l#nk" <etAeen the e+artment hea" t <r#n" all the

+ro@ect team to "#n on the "ame +#ece o mu"#c, #n orer to not have any m#"uner"tan#n" on

Ahat role" each e+artment nee" to +lay #n el#ver#n the e"t#mate he e"t#mate +lan "houl

<e Ar#tten a" "tanalone ocument, #n orer to convey the e"t#mate to anyone out"#e the

+ro@ect team an to <e ut#l#"e or uture #nuct#on" or neA +er"onnel @o#n#n the +ro@ect

Normally the cu"tomer #" #nv#te to +art#c#+ate #n th#" meet#n, #n orer to have the cu"tomer"

<uy-#n on the a++roach




3* +* + Esti mat e Pl an

o +rouce the e"t#mate +lan #" the re"+on"#<#l#ty o the Lea e"t#mator he Lea /"t#mator

may have to "ource #normat#on rom var#ou" e+artment" #n orer to #nal#"e the ocument

he ocument "et" the e"t#mate roun rule" an e"ta<l#"he" un#orm#ty acro"" the +ro@ectteam 8;or urther eta#le #normat#on #n +rouc#n an e"t#mate +lan, reer to /"t#mate Plan

u#el#ne an /"t#mate Plan "am+le tem+late9

he e"t#mate +lan are""e" the olloA#n #""ue"

• (r#e Sco+e De"cr#+t#on

• *u"tomer Strate#e" an O<@ect#ve"

• /"t#mate Del#vera<le"

• ey Per"onnel *ontact L#"t


• /"t#mate ethooloy

1 Huant#ty evelo+ment

2 ater#al Pr#c#n 8/u#+ment an (ulk ater#al"9

3 anual La<our 5ate an an-hour"

4 Su<-*ontractor *o"t"

7 ;re#ht

6 Genor 5e+re"entat#ve"

• *oe o !ccount" 8;ac#l#ty an *ommo#ty coe"9

• /n#neer#n el#vera<le" reu#re to "u++ort th#" ty+e o e"t#mate

• *ontract#n Stratey

• Procurement Stratey - the eterm#nat#on o Ah#ch #tem" o eu#+ment "houl <e

#""ue or #rm uotat#on 8ma@or eu#+ment #tem"9 an Ah#ch #tem" A#ll <e co"te on the

<a"#" o <uet uotat#on", h#"tor#calata<a"e #normat#on or <y other techn#ue"

8m#nor eu#+ment #tem"9

• *on"truct#on n+ut

• ater#al ake-o ormat"

• n#rect *o"t" 8*ommon D#"tr#<uta<le" an /P* Serv#ce"9

• /"calat#on

• *ont#nency an accuracy

• the eterm#nat#on o Ah#ch #tem" o eu#+ment "houl <e #""ue or #rm uotat#on

8ma@or eu#+ment #tem"9 an Ah#ch #tem" A#ll <e co"te on the <a"#" o <uet

uotat#on", h#"tor#calata<a"e #normat#on or <y other techn#ue" 8m#nor eu#+ment

#tem"9

• Hual##cat#on" an /=clu"#on"




• 5ole" an 5e"+on"#<#l#t#e" atr#=


• ;#nal 5e+ort

3*3 Site &isits

S#te G#"#t" may <e reu#re to e"ta<l#"h <etter /n#neer#n, Procurement, *on"truct#on an co"t

#normat#on #n orer to a""#"t #n the +ro@ect e"#n an +lann#n to "u++ort the e"t#mate he

"#te v#"#t" are ec#e <y the Pro@ect anaer <a"e on con"#erat#on o the commerc#al

contract, <uet an the nee or the ata to <e collecte he S#te G#"#t team normally

con"#"t" o the Pro@ect /n#neer, /"t#mator an a re+re"entat#ve rom *on"truct#on an

/"t#mator oe" not +art#c#+ate #n a "#te v#"#t, he A#ll reue"t tho"e mak#n the tr#+ to collect co"t

ata on h#" <ehal, <a"e on a eta#le l#"t +rov#e <y the Lea /"t#mator 8;or urther

#normat#on on S#te G#"#t", reer to *o"t /"t#mate S#te G#"#t ?u#el#ne PDP-00309

3* Estimatin1 S4stem

3* * % S4st em O 5er 5i e6

he Lea /"t#mator A#ll eterm#ne the e"t#mat#n "y"tem to <e u"e #n +rouc#n the *la"" 3

e"t#mat#n he /"t#mat#n Sy"tem currently ao+te #n /PL #" calle IHue"tJ h#" #" the

manatory e"t#mat#n "y"tem to <e u"e or all *la"" 2, 3 an 4 e"t#mate" he "y"tem #"

ava#la<le on the WOW uner Sy"tem ?rou+ NeA e"t#mator" A#ll have to reue"t +erm#""#on

rom the /PL /"t#mat#n anaer !ll "u++ort, tra#n#n an #n#t#al "et u+ A#ll <e +rov#e <y

the *or+orate /"t#mat#n ?rou+, Ah#ch re"#e" out o el<ourne 8!u"tral#a9

here are t#me", Ahen a +reerre cu"tomer "y"tem may have to <e u"e, ue to the#r un#ue

re+ort#n an #nterat#on to other #nternal cu"tomer "y"tem" h#" #" acce+ta<le a" lon a" #t

oe" not <reak the e"t#mat#n Aork +roce""e" +re"ente #n th#" ocument t #" +reerre to

Aork #n Hue"t an any #nterat#on #""ue" "houl <e reerre to the (u"#ne"" Sy"tem" ?rou+

Hue"t can <e ta#lore to cu"tomer nee", an tho"e have to <e clearly #ent##e u+ ront #n

orer to "tructure Hue"t a++ro+r#ately

3* * + 7 uest O5er5i e6

Hue"t #" a mult#-u"er an mult#-currency "y"tem, Ah#ch can <e o+erate acro"" WOW #n a

v#rtual o#ce env#ronment

Hue"t #" a le=#<le tool that alloA" chane" to uant#t#e", un#t +r#c#n, un#t @o< hour" an the l#ke,

at any t#me ur#n the +re+arat#on o the e"t#mate he "y"tem +rov#e" or the evelo+ment

an "torae o Ita<le"J o "tanar e"t#mat#n #normat#on he ta<le" com+r#"e a "et o #le"

Ah#ch "tore the olloA#n #normat#on:

• ;ac#l#ty an *ommo#ty De"cr#+t#on"

• Stanar ater#al En#t Pr#ce"

• Stanar n"tallat#on En#t Ko< hour"

• ;re#ht (ulk#n ;actor"

http://var/www/apps/conversion/current/tmp/scratch20523/EMS;documentNumber=002-002-PMW-190.doc





• ourly 5ate" an Prouct#v#ty 5ate" or each La<our *rat

• La<our *reA" an La<our *rat *om+o"#t#on

• *on"truct#on /u#+ment Deta#l" an 5ate"

• *urrency *oe", De"cr#+t#on" an /=chane 5ate"

• Port o /=+ort Deta#l" an ;re#ht 5ate"

he "y"tem can <e o+erate #n "#nle u"er or "hare mult#-u"er env#ronment on a rane o

com+uter harAare +latorm" an o+erat#n "y"tem" On com+let#on o the e"t#mate, the

e"t#mat#n "y"tem #nterace" #rectly A#th /PL n *ontrol co"t control "y"tem an +rov#e"

or tran"er o e"t#mate", Ah#ch can <ecome control <uet" at a con"ol#ate level o eta#l

8;or urther eta#l" o Hue"t, +lea"e reer to the Hue"t Overv#eA Document, or the tra#n#n

manual loae on WOW uner "y"tem rou+, Hue"t /"t#mat#n Sy"tem9

he /PL overall e"t#mat#n +roce"" #" #llu"trate #n <eloA

3.5 Estimate Schedule

he key ate" an m#le"tone" 8#e en#neer#n cut-o", rev#eA" etc9 o the e"t#mate "cheule

are normally e"ta<l#"he early an +re"ente #n the e"t#mate +lan at the e"t#mate k#ck-o

meet#n t #" #m+ortant the Lea /"t#mator ha" a thorouh rev#eA o the "te+" reu#re to

com+lete the e"t#mate an #n o#n "o, +re+are a <ar chart "hoA#n the e"t#mate #n+ut reu#re

an the#r ate" an urat#on" he evelo+ment o the "cheule normally reu#re" coor#nat#on

A#th the Pro@ect anaer, Lea /n#neer", Procurement an *on"truct#on

y+#cal #normat#on "houl #nclue:

• /n#neer#n #n+ut to the e"t#mate <roken oAn <y #"c#+l#ne




• Pr#c#n ata rom Procurement

• Data to evelo+ #rect co"t" rom Procurement, nu"tr#al 5elat#on" an /n#neer#n

+er"onnel

• /"t#mate +re+arat#on <reak#n oAn, #rect co"t", #n#rect co"t", rev#eA" an #nal

e"t#mate +re+arat#on an +re"entat#on


3*8 Esta, li sh in1 E stimate St ru. tur e a nd Proe. t C ode o0A..ounts

3*8*% General

he Lea /"t#mator #n con@unct#on A#th the /PL /"t#mat#n anaer A#ll <e re"+on"#<le to

evelo+ the +ro@ect coe o account" a" one o the +re-e"t#mate act#v#t#e" h#" con"#"t" oevelo+#n the #rect co"t ac#l#ty coe", #n#rect coe" an re"+ect#ve commo#ty coe"

Normally the #rect co"t ac#l#ty coe" are ta#lore or the +lant an are r#ven <y the cu"tomer

he commo#ty coe" are a "tanar "et o coe" "+ec##e <y the /PL *or+orate /"t#mat#n

?rou+ t #" manatory to u"e the"e coe", a" #t <r#n" un#orm#ty acro"" other e"t#mate", an

hel+" "treaml#ne a common a++roach an ena<le" to "hare ata an com+are to h#"tor#cal

#normat#on *o+#e" o the commo#ty coe" are ava#la<le rom the /PL *or+orate

/"t#mat#n rou+

3* 8* + Co de o0 A..o unt s

he Icoe o account"J #" the rameAork re+re"ent#n an a++l#e to the +ro@ect W(S,

u"e to ac#l#tate the "y"temat#c control o "co+e, co"t an "cheule he +ro@ect co"t"

are "ereate #nto ac#l#t#e" 8numer#c9 an commo#t#e" 8al+ha >numer#c9 or reay

#ent##cat#on an lo#cal rou+#n o co"t #tem" he coe #" u"e or "ort#n #normat#on

to +erm#t v#"ual#.#n the +ro@ect "co+e an or tran"lat#n en#neer#n conce+t" #nto

uant#t#e" an co"t" t +rov#e" the rameAork or +re+ar#n e"t#mate", +ro@ect <uet",

co"t mon#tor#n, oreca"t#n, <enchmark#n an controll#n co"t" ur#n con"truct#on

8;or urther eta#l +lea"e reer to Stanar /"t#mat#n *oe o !ccount" u#el#ne or

urther u#ance9

! <r#e e#n#t#on o ;ac#l#ty an *ommo#ty coe" are e"cr#<e <eloA

9a.ilit4 Code

Port#on o the *oe o !ccount" that #ent##e" the eora+h#cal area or "y"tem

com+onent o the +ro@ect 85eer to Stanar /"t#mat#n *oe o !ccount" ?u#el#ne

PDP-0014 or urther eta#l9

Commodit4 Code

! +ort#on o a co"t coe to +rov#e a "ereat#on o co"t ?ener#c +rouct 8or act#v#ty9

ty+e, the +rouct#on o Ah#ch may #nvolve a num<er o trae" ;or e=am+le, the

commo#ty IconcreteJ reu#re" the "erv#ce" o car+enter", "teel #=er" an concrete

trae" or #t" +rouct#on 85eer to Stanar /"t#mat#n *oe o !ccount" ?u#el#ne

PDP-0014 or more eta#l9









3*8*3 E st imat e Components

he com+onent" o an e"t#mate are <roken oAn #nto tAo ma@or cateor#e", #rect an

#n#rect co"t"

3*8*3*% !ire.t Costs

!ire.t .osts are the +ermanent ac#l#t#e" an "erv#ce" reu#re or the#r #n"tallat#on

;urther "u<#v#"#on" o the"e co"t" are <roken #nto ac#l#ty an commo#ty coe" a"

e"cr#<e a<ove he #rect co"t" #nclue +lant eu#+ment, <ulk mater#al", manual

la<our, "u<-contractor co"t", re#ht an venor re+re"entat#ve"

Plant E:uipment #nclue" the mechan#cal, electr#cal an #n"trumentat#on com+onent" o

a +lant, Ah#ch are e#ther "ho+ a""em<le, moular#"e or +re-a""em<le on "#te

)ul/ Materials are tho"e mater#al", "uch a" re<ar, +#+e, A#re an ca<le, concrete, l#ht"teel etc, Ah#ch are +urcha"e <a"e on uant#ty

Installation reer" to the manual la<our an "u<-contractor" co"t" to #n"tall or erect the

#rect mater#al" <oth +lant eu#+ment an <ulk mater#al"

3*8*3*+ Indire.t Costs

Indire.t Costs are the co"t" a""oc#ate to "u++ort the +urcha"e an #n"tallat#on o the

#rect co"t" h#" rou+ #nclue" the mater#al" an "erv#ce" reu#re or #el

con"truct#on, <ut not #ncor+orate #nto or accounte or a" +art o the +ermanent ac#l#t#e"

8D#rect *o"t"9 ! "tanar "et o #n#rect coe" A#th eta#le e"cr#+t#on" on Ahat #"#nclue #n each account are oun #n the Stanar /"t#mat#n *oe o !ccount"

?u#el#ne PDP-00149

he ma#n ty+e o co"t" #nclue":

• em+orary *on"truct#on ;ac#l#t#e", cover" tem+orary <u#l#n" an #nra"tructure, Aork

area" an <ay", tem+orary roa", AalkAay" an +ark#n area", tem+orary <u#l#n",

tem+orary ut#l#t#e", tran"+ortat#on ac#l#t#e", Aeather +rotect#on, eneral +ur+o"e

"caol#n, cr#<<#n an unnae an m#nor tem+orary con"truct#on

•

*on"truct#on Plant", #nclue" areate cru"h#n +lant", concrete <atch +lant" ana<r#cat#on ac#l#t#e"

• *on"truct#on Su++ort cover" eneral an #nal "#te cleanu+, mater#al hanl#n an

Aarehou"#n, manual la<our tra#n#n an te"t#n, "ecur#ty, me#cal, "o#l te"t#n, "urvey,

o+erat#on an ma#ntenance o ac#l#t#e"

• *on"truct#on /u#+ment an *on"uma<le", cover" con"truct#on eu#+ment 8cu"tomer

urn#"he9, "mall tool", ma#ntenance o eu#+ment an tool", uel" an lu<r#cant",

con"uma<le "u++l#e" an me#cal an "aety "u++l#e"

• Pre-O+erat#onal an *omm#""#on#n !""#"tance, cover" +re-o+erat#onal te"t#n, "tart-

u+, +lant mo##cat#on",








• anual La<our !lloAance" cover" #nuct#on", manual la<our tran"+ortat#on, non-

+rouct#ve la<our co"t", 55 travel co"t", manual la<our l#v#n alloAance" an +ro@ect

<onu"e"

• ater#al ran"+ortat#on an Storae *o"t" #nclue a#r re#ht, ocean re#ht, "h#++#n

aent" e=+en"e" an ee", mar"hall#n an emurrae

• Pro@ect !ccommoat#on cover" cam+ con"truct#on an cam+ o+erat#on an

ma#ntenance co"t"

• /P* Serv#ce" cover" en#neer#n, +rocurement, con"truct#on an +ro@ect

manaement, 3r +arty con"ultant" an all co"t" a""oc#ate or the ome an #el

o#ce, overhea", ee etc

• /"calat#on #" an alloAance to ant#c#+ate uture chane" rom the co"t" u"e #n the

e"t#mate eta#l" he e"t#mate eta#l" are #nclue or +re"ent ay co"t"

• *ont#nency #" an alloAance to cover co"t" Ah#ch #" <a"e on +a"t e=+er#ence an

e=+ecte to <e encountere, <ut Ah#ch #" not +o""#<le to #ent#y at the t#me an

e"t#mate #" +re+are

• OAner" *o"t"




* ESTIMATING METHO!OLOG"

*% Pri.in1 General !ll co"t" to com+lete A#ll <e #n the <a"e ate o the e"t#mate an #n the currency o the country,

A#th a++ro+r#ate e"calat#on a++l#e to +ro@ect com+let#on

he e=chane rate" or the ma#n "tuy "houl <e nom#nate <y /PL, an a++rove <y the

cu"tomer !ny e=chane var#at#on" that may occur rom the <a"e ate o the e"t#mate an

onAar" A#ll nee to <e are""e <y the cu"tomer #n the#r econom#c moell#n or +rocurement

"tratey

he e"t#mate A#ll <e +re+are <a"e on nat#ve currenc#e" Ah#ch A#ll <e e=+re""e #n the

country o or##n, <a"e on the olloA#n e=chane rate":

Australian !ollar Other Curren.4

!M100 (! ES Dollar"

(! E Poun"

(! /uro+ean /uro

(! Ka+ane"e en

*+ Contra.tin1 Strate14

he *a+#tal *o"t /"t#mate can <e <a"e on an /n#neer#n, Procurement an *on"truct#on

anaement 8/P*9 or /P* "tratey hereore, a++ro+r#ate alloAance "houl <e mae #n

the *a+#tal *o"t /"t#mate to alloA or /P* or /P* contractor +ro#t an return"

*3 7uantities

Huant#ty evelo+e #" the key "te+ #n "ucce""ully com+let#n a *la"" 3 e"t#mate ! <a"#c

u#el#ne o el#vera<le" neee or a *la"" 3 e"t#mate #" outl#ne #n the /"t#mate *la""##cat#on

?u#el#ne t #" #m+ortant the uant#t#e" or a *la"" 3 e"t#mate are eterm#ne accurately an #n

the l#ne A#th /PL commo#ty coe "tructure he uant#t#e" "et the ounat#on" oreterm#n#n mater#al +r#c#n, #n"tallat#on hour" an "co+e or "u<contractor", a<r#cat#on "ho+"

an turnkey +ackae" to eterm#ne a oo #=e or <uet uotat#on n Sect#on 70,

/n#neer#n Del#vera<le" A#ll <e e=+la#ne #n more eta#l <y #"c#+l#ne




!ll uant#t#e" A#ll <e taken o a" neat uant#t#e", A#thout alloAance" <ur#e #n the eta#l"

*erta#n alloAance" A#ll <e +#cke u+ #n the actual rate" that are a++l#e to the uant#t#e"

rece#ve rom en#neer#n, an other alloAance" "uch a" e"#n alloAance" A#ll <e #nclue a"

+art o the en#neer#n rev#eA +roce"" Only alloAance" that are not "hoAn on a raA#n, <ut#" knoAn to <e normally #nclue or com+lete e"#n "houl <e #nclue

Stanar mater#al take-o "heet" can <e o<ta#ne or mo"t <ulk mater#al commo#ty account"

rom the /PL *or+orate e"t#mat#n rou+ n mo"t ca"e", the"e mater#al take-o "heet"

"houl <e attache to the e"t#mate +lan or en#neer#n to u"e

/"t#mat#n an /n#neer#n A#ll e"ta<l#"h the level o eta#l o uant#ty evelo+ment reu#re or

the e"t#mate, or each ac#l#ty an commo#ty coe he level o eta#l "houl <e con"#"tent to

the e"t#mate cla""##cat#on an #ntene u"e /nouh eta#l mu"t <e +rov#e to "u#t the

e"t#mator" nee" A#thout <uren#n #n"#n##cant eta#l" he e"t#mator A#ll a""e"" the

#normat#on +rov#e an "ummar#.e the mater#al take-o" #nto mean#nul e"t#mate entr#e" <y

ac#l#ty an commo#ty

Huant#t#e" <y commo#ty coe "hall <e evelo+e <y en#neer#n rom "co+e ocument"

+rov#e <y the cu"tomer, u"#n raA#n", "ketche", PDS !ll <ulk mater#al uant#t#e" "hall

<e #ven to the e"t#mat#n team <y ac#l#ty an commo#ty he"e uant#t#e" may <e com+are

A#th uant#ty #normat#on ava#la<le rom +rev#ou" mater#al reu#"#t#on", +urcha"e orer",

contract" an actual h#"tor#cal co"t" Ahere a++ro+r#ate

he e"t#mator A#ll ver#y the com+letene"" an accuracy o the ata rece#ve, <eore enter#n #t

#nto the e"t#mat#n "y"tem

* E: uipment a nd M aterial P ri.in1n +reerence, an Ahere a++ro+r#ate, +r#c#n rate" or +lant, eu#+ment an <ulk mater#al" "hall

<e <a"e on <uet or <#" rece#ve rom "u++l#er" ;or a *la"" 3 e"t#mate, the"e A#ll <e

o<ta#ne throuh the Procurement rou+ /n#neer#n A#ll +re+are the ata"heet" an

techn#cal #normat#on an +a"" #t to Procurement #n orer to "en out enu#r#e" to a++ro+r#ate

venor" !" the venor uotat#on" are returne <ack to /PL #t A#ll <e rev#eAe #n con@unct#on

A#th /n#neer#n an Procurement #n orer to en"ure Ae are <uy#n #t or the r#ht +r#ce an #t

com+l#e" techn#cally Where #normat#on #" not ava#la<le, +r#c#n #normat#on A#ll <e o<ta#ne

rom /PL" #n-hou"e ata<a"e an e"calate a++ro+r#ately

5ate" an +r#c#n or eu#+ment an mater#al" "hall relect e= Aork" el#very an local re#ht

;!S at +ort o e=+ort, #nclue A#th#n the venor" "co+e

Plant eu#+ment +r#c#n a" a m#n#mum, "houl #nclue the eu#+ment +r#ce 8<y currency9 an

uant#ty <y eu#+ment ta num<er, e=chane rate, re#ht co"t", ut#e" an ta=e" an venor

re+re"entat#ve ay rate"

;or !u"tral#a only, eu#+ment "hall <e reerence v#a ta num<er Ahere ava#la<le, an "hall

e=clue ?oo" an Serv#ce" a= 8?S9

*; 9rei1ht

/"t#mate co"t" or ocean re#ht an #nlan re#ht to "#te can <e evelo+e or each relevant

e"t#mate #tem "e+arately rom mater#al "u++ly +r#c#n ;re#ht revenue 8or <ulk9 tonne" can <eevelo+e an "tore #n the e"t#mat#n "y"tem Where a++l#ca<le, re#ht tonne" may <e




evelo+e <y e"t#mat#n "y"tem a" the +rouct o the e"t#mate uant#ty an a <ulk#n actor

or the #ven commo#ty !lternately re#ht tonne" may <e evelo+e an entere #rectly or

each a++ro+r#ate e"t#mate #tem

!nother alternat#ve #" to have a +rocurement tra#c an lo#"t#c" e=+ert, Aork out the totalre#ht co"t" or the +ro@ect h#" nee" to <e oran#"e an aree at the e"t#mate +lann#n

+ha"e to en"ure the total re#ht com+onent" are +#cke u+

;or ome"t#c +ro@ect", the co"t o re#ht "houl <e #nclue #n the +r#c#n o mechan#cal

eu#+ment, <ut #ent##e "e+arately or +arametr#c +ur+o"e" Other co"t" "uch a" ut#e", ta=e"

etc Aoul <e e=+re""e a" a +ercentae rom mechan#cal eu#+ment an <ulk mater#al", <a"e

on the reulat#on" o the country the +ro@ect #" <e#n <u#lt Where eu#+ment +r#c#n #" not

ava#la<le, enerally or ome"t#c +ro@ect", 3 > 7C #" a++l#e on total mater#al co"t

;or nternat#onal, remote +ro@ect" A#th a more e=ten"#ve re#ht "co+e, a +rocurement tra#c an

lo#"t#c" +er"on "houl <e a++o#nte #n orer to calculate the total re#ht co"t h#" A#ll <e

"u#ta<le checke at the en o the e"t#mate aa#n"t "#m#lar +ro@ect" an h#"tor#cal ata he

"co+e o re#ht Aoul normally #nclue the olloA#n:

• Locat#on

• Sco+e an /=ecut#on o the +ro@ect

• Source o ater#al" an /u#+ment

• ra#c an Lo#"t#c" +lan

• Warehou"#n

•

S+ec#al anl#n

o the +o#nt" l#"te a<ove, a con"#erat#on o market con#t#on" "houl <e evaluate an

#ncor+orate to the total re#ht co"t hat #", #n a e+re""e economy, A#th a loA, com+et#t#ve

+r#c#n "tructure ;re#ht A#ll <e a h#her +ercentae o mater#al co"t than uner other

econom#c con#t#on" he re#ht actor A#ll <e enerally #n the rane o 7 to 17 +ercent o

mater#al co"t ;or ome"t#c +ro@ect" the rane #" 3 > 7C, an or remote "#te" #" <etAeen 7 >

17C o mater#al co"t"

;or urther eta#l +lea"e reer to the ;re#ht *o"t" ?u#el#ne PDP-0026

S+ec#al note nee" to <e mae o the #tem" that are to <e +re-a""em<le o-"#te, "o that re#ht

+r#c#n can <e e"t#mate to #nclue th#"

*8 Contra.t La,our Pri.in1

*8*% Manua l La,our Produ.t i5 it4

o evelo+ manual la<our man-hour" or a *la"" 3 e"t#mate, #t #" #m+ortant to uner"tan

+rouct#v#ty Pro@ect +rouct#v#ty #" evaluate <y com+ar#n to a "et o "tanar un#t man-hour"

he"e "tanar" A#ll have to <e evelo+e or each country, #n orer to o<ta#n a con"#"tent

yar"t#ck n !u"tral#a Ae are alreay ut#l#.#n a <a"e l#ne, <a"e on h#"tory, e"t#mator"

e=+er#ence an evelo+#n rate" rom #r"t +r#nc#+le" o ormal#.e th#" a++roach a un#t man-

hour <ook A#ll <e evelo+e #n the uture, Ah#ch A#ll al#n to /PL" "tanar commo#ty

coe" h#" +rouct#v#ty #" a++l#e a" a actor 8#e 17 o "tanar rate9 to our "tanar "et o

un#t man-hour"






Prouct#v#ty #" #nluence <y a num<er o actor" Ah#ch may #nclue the olloA#n:

• La<our "k#ll"

• !va#la<#l#ty o la<our

• 5emote "#te"

• arket ava#la<#l#ty

• Weather 8normal9

• Su+erv#"#on

• Non-+rouct#ve t#me, +erm#t", "aety, #nuct#on" an Aa#t#n t#me or mater#al"

• Select#on o contractor

• *on"truct#on metho"

• (roAn#el Aork

• ?reen#el Aork

• oular#.at#on an +re-a""em<ly metho"

• Work Aeek

• S#te acce""

• e#ht or e+th

• De"#n com+le=#ty

• ShutoAn"

• #e-#n"

• *reA m#=

• Lanuae an culture

• Demol#t#on Aork

• *ontract ty+e #e +erormance #ncent#ve", #rect h#re, lum+ "um etc

La<our +rouct#v#ty an creA m#=e" or on"#te an o"#te Aork" A#ll <e <a"e on h#"tor#cal ata

rom recent +ro@ect"

he ata nece""ary to evaluate +rouct#v#ty coul <e "ource rom the olloA#n:

• !ctual return ata rom +ro@ect" an con"truct#on

• #"tor#cal an current +ro@ect" #n the re#on or uner "#m#lar con#t#on"

• S#te v#"#t re+ort

• normat#on rom nu"tr#al 5elat#on"

• 5#char"on" an other reerence mater#al or +u<l#cat#on"

• rae +u<l#cat#on"




*8*+ Ins ta llat ion Man-hours

he un#t man-hour" are the uant#ty mea"urement un#t or #n"tallat#on la<our n a ty+#cal

e"t#mate, only on"#te hour" are "hoAn /ven or a turnkey +ackae, hour" "houl <e "hoAn

A#th the corre"+on#n la<our co"t t #" #m+ortant to "hoA the"e hour", a" they #m+act theolloA#n:

• Pro@ect Scheule

• *am+ "#.e

• *am+ O+erat#on" an a#ntenance

• Peak mann#n

• *ontract#n "trate#e"

• em+orary ac#l#t#e" on-"#te

• *ommon #"tr#<uta<le"

• *on"truct#on co"t"

• ;uture la<our co"t mon#tor#n #e uant#ty aa#n"t hour" #n"talle

• ;uture *la#m" or Gar#ance" to "co+e

• Saety ear an eu#+ment

• e#cal "u++l#e"

• ool" an con"uma<le" or *on"truct#on

• Pro@ect accommoat#on #e hou"#n an hotel reu#rement"

• anual la<our tran"+ort, #e <u""#n, a#rare" etc

• 5e"t an relocat#on co"t"

• *on"truct#on "u++ort reu#re, #e "ecur#ty, @an#tor#al, etc

!ll a<r#cat#on an o"#te hour" are #nclue #n the all u+ rate" <y commo#ty coe or total co"t,

or "hoAn #n the e"t#mate e"cr#+t#on #el

En#t man-hour" or #n"tallat#on o eu#+ment an mater#al" are evelo+e <y the e"t#mator or

each commo#ty A#th "u++ort rom *on"truct#on an +rev#ou" +ro@ect" or actual return ataWhere +o""#<le, #r"t +r#nc#+le e"t#mat#n techn#ue" A#ll <e u"e to creA u+ the level o Aork

reu#re to #n"tall eu#+ment or <ulk mater#al #tem" he #n"tallat#on hour" "houl #nclue the

eort" or all crat" or trae" #nvolve, Ah#ch #nclue" hanl#n the #tem rom "torae, a""em<ly,

+o"#t#on#n, al#n#n etc, r#ht throuh to com+lete #n"tallat#on *aut#on "houl <e e=erc#"e #n

the <u#l u+ man-hour" to en"ure #t #" com+at#<le to the eree o #el a<r#cat#on reu#re

he"e hour" "houl <e #"cu""e an aree A#th *on"truct#on to a""ure the e"t#mate relect"

the e=ecut#on +lan an #ntene con"truct#on metho"

De+en#n on the +ro@ect locat#on, com+le=#ty, or Ahether #t #" a (roAn#el or a ?reen#el "#te,

aeuate +rouct#v#ty A#ll nee to a to the "tanar un#t man-hour" to relect the Aork to

com+lete ;or urther eta#l an e=+lanat#on on +rouct#v#ty, reer to the +rev#ou" "ect#on 461

uner manual la<our +rouct#v#ty




*8*3 M anual La ,our Rat es

he Ae#hte com+o"#te contract la<our +r#c#n +er hour "houl <e <a"e on e=#"t#n "#te

areement", enter+r#"e <ara#n areement" or ut#l#.#n #n-hou"e h#"tor#cal ata h#" A#ll <e

com+are A#th "#m#lar +ro@ect" or each ty+e o crat an con"truct#on a" a check orrea"ona<lene"" he la<our +r#c#n A#ll relect the +ro@ect Aork Aeek an other "#te con#t#on",

A#th#n the country the Aork A#ll <e +erorme

Pro@ect" #n North !mer#ca an !u"tral#a +erorm Aork u"#n un#on" he la<our rate" are

enerally overne <y "#te areement" or controlle <y a la<our or /nter+r#"e !reement n

countr#e" "uch a" !"#a, manual la<our rate" are much chea+er, hoAever hour" "houl <e

v#"#<le #n the e"t#mate, a" #t oe" #m+act certa#n con"truct#on co"t" on a +ro@ect that may <e

e+enent on num<er o men, #e cam+", <u""#n etc

! "am+le manual la<our rate calculat#on "heet #" attache #n !++en#= 2 ;or a *la"" 3

e"t#mate #n !u"tral#a, #t #" av#"a<le the trae or crat rate" <e checke throuh the *ham<er o

*ommerce or an nu"tr#al 5elat#on" con"ultant anual La<our rate" are "omet#me" market

r#ven, "o a con"ultant A#th#n the country, A#th local knoAlee o current +ro@ect" #n the area #"

h#hly recommene to ach#eve the correct accuracy o the e"t#mate




*om+o"#te la<our rate" A#ll <e evelo+e or each ty+e o con"truct#on #e earthAork", concrete

Aork, "teel erect#on, etc he"e com+o"#te rate" A#ll <e <a"e on +ay rate" an creA m#=e" #n

the e"t#mate ata <a"e Where a m#= o nat#onal#t#e" occur on one +ro@ect "#te the /=+at or

local m#=, A#ll have to <e <roken oAn <y nat#onal#ty an currency #n orer to o<ta#n the correctcreA m#=

! la<our rate calculat#on #" manatory or all *la"" 3 e"t#mate", +art#cularly #n North !mer#ca

an !u"tral#a t oe" vary <etAeen /P* 8D#rect #re9 an /P* +ro@ect"

! ty+#cal manual la<our rate <y crat or trae or an /P* +ro@ect Aoul #nclue the olloA#n:

• (a"e Wae 8<a"e Aork Aeek nee" to "+ec##e9

• !lloAance", Ah#ch may #nclue #nu"try alloAance", "+ec#al alloAance", tool

alloAance", l#cen"e alloAance", lea#n han alloAance

•

!@u"te "#te Aork Aeek, overt#me, 5o"tere Day" O, "h#t +rem#um" etc

• Locat#on !lloAance

• S#te !lloAance"

• L#v#n Su<"##e"

• ?r#evance !lloAance

• Statutory ol#ay"

• S#ck Leave

•

!nnual Leave

• 5e"t an 5ecreat#on alloAance"

• ncent#ve or (onu" Payment"

• 5eunancyFSeverance +ay

• Lon Serv#ce Leave

• Su+erannuat#on

• ncome Protect#on n"urance

•

Payroll a=• Worker" *om+en"at#on

• eal !lloAance

• ravel !lloAance

Plea"e note that the a<ove cateor#e" may chane accor#n to the country or "tate A#th#n

North !mer#ca an !u"tral#a that the Aork A#ll <e e=ecute

! ty+#cal manual la<our rate <y crat or trae or an /P* +ro@ect 8ma#nly or North !mer#ca9

Aoul #nclue the olloA#n:

• (a"e Wae 5ate 8<a"e Aork Aeek nee" to <e "+ec##e9

• Overt#me an Sh#t Prem#um"




• ravel #me

• Non-Prouct#ve #me 8Saety meet#n", #nuct#on" etc9

• Work O+erat#on Prem#um" 8e#ht, u"t etc9

• ealth an Welare

• Pen"#on

• !nnual Leave

• Statutory ol#ay"

• S#ck Leave

• (onu"e"

• En#on or a""oc#at#on un"

• ravel an Su<"#"tence

• n"urance"

• a=e"

• Somet#me" +ro#t

*am+ an cater#n co"t", "mall tool" an con"uma<le", overhea co"t" an +ro#t "houl

enerally <e e"t#mate an mon#tore "e+arately not <e #nclue #n the manual la<our rate

*8* Su,-Contra. tors Costs

*ontractor" el#vera<le" can <e evelo+e a" a +ercentae o contract manual la<our co"t" <y

ma@or commo#t#e" A#th the "u++ort o h#"tor#cal ata he"e rate" cover con"truct#on

eu#+ment an other "u++ort reu#re to "u++ort an e+loy #n"tallat#on la<our *o"t

com+onent" covere <y the"e rate" #nclue:

• em+orary ac#l#t#e" #nclu#n o<#l#"at#on an Demo<#l#"at#on

• a#ntenance o tem+orary ac#l#t#e" an eu#+ment

• OAner"h#+ an o+erat#on o con"truct#on eu#+ment

• ool" an con"uma<le"

• S#te o#ce o+erat#on

• Sta an Su+erv#"#on

• ome O#ce cor+orate overhea"

• Pro#t

eally, the other metho to o<ta#n "u<-contractor co"t" #" to +rouce a eta#le e#n#t#on

+rov#e <y *on"truct#on #n orer to o<ta#n a +r#ce <a"e on the cateor#e" a<ove he other

#" to ut#l#.e +a"t +ro@ect #normat#on an a@u"t #t accor#nly to "u#te the e=ecut#on +lan o

the +ro@ect




*< Allo6an.es

*<*% ! es i1n Al lo6a n.e s

n +re+ar#n a ca+#tal co"t e"t#mate, #t #" rare occa"#on Ahen everyth#n #" knoAn, "+ec##e anmea"ura<le De"#n alloAance" are a++l#e at the #rect co"t level, to com+en"ate the eree

o en#neer#n com+lete an uotat#on" u"e at th#" level o e"t#mate

Pa"t e=+er#ence <y the +ro@ect team A#ll <e a++l#e, to +rov#e "ome mea"ure to #ll the a+ at

the #rect co"t level n a *la"" 3 e"t#mate, e"#n alloAance" can rane <etAeen 3 -7C o total

#rect co"t, e+en#n on the #normat#on +rov#e <y the cu"tomer an the ual#ty o h#"tor#cal

ata u"e

De"#n alloAance" are con"#ere a knoAn an e#n#te reu#rement Ahen +re+ar#n the #rect

co"t", a" they are h#"tor#cally <a"e an l#t the mater#al take-o" an mater#al +r#c#n to more

accurately relect Ahat the #nal e"#n A#ll reu#re

De"#n alloAance" are are""e, Ahen en#neer#n have rev#eAe the "co+e an uant#t#e"

o the e"t#mate he Lea /"t#mator ac#l#tate" the +roce"" <y u"#n a e"#n alloAance ormat

5eer to !++en#= 1 h#" #" a matr#= <y area an ma@or commo#ty level he /"t#mator ut#l#.e"

th#" "heet to "eek #n+ut rom the Lea en#neer" an +rocurement

;or urther eta#l +lea"e reer to the De"#n alloAance" u#el#ne

*<*+ Other Al lo6a n. es

*o"t" a""oc#ate A#th Aa"tae, over +our", lo"" an amae A#ll <e #nclue #n un#t rate" a"

alloAance"Q not #n mea"ure uant#t#e" "u++l#e <y /n#neer#n

Percentae alloAance A#ll <e u"e to e"t#mate co"t" o +#+e "u++ort", +#+e te"t#n an

#n"+ect#on, mechan#cal <ulk" an the l#ke

!lloAance" or ND te"t#n an "tre"" rel#ev#n etc A#ll <e covere <y e"t#mat#n a" a

+ercentae o total +#+e uant#ty an co"t

!lloAance" or co"t roAth or m#nor "co+e chane", "co+e an e"t#mat#n om#""#on", ual#ty

o <#" an <uet +r#c#n, market orce" an the l#ke are to <e #nclue #n cont#nency, not #n

#rect co"t"

4.8 Common !istri,uta,le

*ommon #"tr#<uta<le co"t" are mater#al", eu#+ment "erv#ce" an ut#l#t#e" +rov#e to the

+ro@ect Ah#ch are not "+ec##c to any one "u<contractor Where "#m#lar #tem" an "erv#ce" are

attr#<uta<le to one contractor, the"e co"t" are to <e chare to contractor #"tr#<uta<le co"t"

*ommon #"tr#<uta<le co"t" al"o cover "co+e +rov#e to the +ro@ect <y the /P* contractor #n

"u++ort o the +ro@ect

ater#al an la<our co"t" Ah#ch cannot ea"#ly <e #ent##e A#th "+ec##c #rect Aork o+erat#on"

#n the con"truct#on o a +lant an are e#ther "u++ort#n "erv#ce" <y nature or a++ly #n "uch a

Aay to "everal #rect o+erat#on" that a conven#ent allocat#on to each "e+arate o+erat#on cannot

<e rea#ly <e mae /=am+le" are tem+orary roa", cam+ o+erat#on an ma#ntenance etc h#"

#" commonly are""e a" +art o the #n#rect co"t account ! eta#le co#n "tructure A#th ull

e#n#t#on" can <e oun #n the Stanar /"t#mat#n *oe o !ccount" ?u#el#ne




;or a *la"" 3 level e"t#mate, th#" Aoul normally <e "co+e out an uant##e <y /n#neer#n

an *on"truct#on h#" A#ll normally relect the e=ecut#on +lan ao+te <y the +ro@ect,

+art#cularly #el con"truct#on !ter the e"t#mate #" com+lete th#" A#ll <e com+are to "#m#lar

+ro@ect" an +arametr#cally checke aa#n"t h#"tor#cal ata

*= En1ineerin1> Pro.urement and Constru.tionMana1ement

/"t#mate" or the /P* or /P* "erv#ce" A#ll <e e"ta<l#"he <y #"c#+l#ne en#neer",

+rocurement, +ro@ect manaement, con"truct#on an +ro@ect control" u"#n n*ontrol to

enerate the relevant *5" he"e *5" "houl encom+a"" the "co+e o Aork an eta#l

re"ource", rate" an el#vera<le" reu#re to com+lete the Aork"

Se+arate e"t#mate" A#ll <e +re+are or o#ce commun#cat#on", re+rouct#on" an "u++l#e",

o#ce urn#ture an eu#+ment, com+uter harAare an "otAare, veh#cle", out"#e "erv#ce" an

the l#ke to match the a<ove oran#"at#on he"e A#ll <e "+#lt <etAeen the +ro@ect an #el o#ce !ter com+let#on o the e"t#mate the total /P* "erv#ce" A#ll <e checke aa#n"t "#m#lar

+ro@ect" an current h#"tor#cal ata

he co"t" or the Pro@ect anaer" /n#neer#n, Procurement an *on"truct#on anaement

"erv#ce" #nclue or:

Prouct#on /n#neer#n

• Deta#le De"#n en#neer#n

• Seconary con"ultant"

Pro@ect anaement Serv#ce"

• Pro@ect manaement an non-techn#cal "u++ort

• Pro@ect *ontrol"

• Procurement an *ontract"

• n"+ect#on an /=+e#t#n

• ;#nance an !ccount#n

• Saety an /m+loyment 5elat#on"

•

uman 5e"ource"• Document *ontrol

*on"truct#on Serv#ce"

• *on"truct#on manaement

• ;#el /n#neer"

• ;#el Pro@ect *ontrol"

• ;#el Procurement

• ;#el Saety

• ;#el 859




Other *o"t"

• Overhea"

• ;ee

• (u"#ne"" ravel , !ccommoat#on an /n-route e=+en"e"

• O#ce e=+en"e", +hotoco+#er", a=e" etc

• 5ental, O#ce #t-out an urn#ture

• Stat#onary, +r#nt#n an +hotoco+y#n etc

• *ommun#cat#on" 8tele+hone, a=, cour#er", +o"tae9

• normat#on echnoloy "etu+, harAare an "otAare

• Other /m+loyee co"t", "uch a", mo<#l#"at#on emo<#l#"at#on, 55,

• ;r#ne (ene#t a=, ;ore#n a=e" an Payroll a=

• Statutory On *o"t" 8!nnual Leave, Pu<l#c ol#ay etc9

• Worker" *om+en"at#on an n"urance

h#" #normat#on A#ll <e #ncor+orate #nto the #nal e"t#mate a" "#nle l#ne #tem" an "+l#t

<etAeen +ro@ect an #el o#ce

*%$ Es.alation

/"calat#on may or not <e #nclue #n the e"t#mate h#" nee" to <e ual##e <y the cu"tomer

a" +art o the #n#t#al +ro@ect an e"t#mate k#ck-o meet#n"

he three ma#n element" neee to +re+are e"calat#on or *la"" 3 e"t#mate" are:

• *a+#tal *o"t e"t#mate, Ah#ch #" <roken oAn <y la<our, <ulk mater#al", +lant eu#+ment

an "u<-contractor co"t"

• Pro@ect Scheule

• early e"calat#on rate" to a++ly to all cateor#e" o the e"t#mate

*%% Contin1en.4

n +re+ar#n a ca+#tal co"t e"t#mate, #t #" a rare occa"#on Ahen everyth#n #" knoAn, "+ec##ean mea"ura<le o com+lete a ca+#tal co"t e"t#mate or a +ro@ect, one mu"t +rov#e or that

Ah#ch #" not ully knoAn, "+ec##e or mea"ura<le a" Aell a" that not ore"een #n orer to atta#n

a com+lete co"t #ure

he cont#nency to <e ae to the <a"e e"t#mate #" e#ne a":

“An allowance for goods and services which at the current state of project definition cannot be

accurately quantified, but which history and experience show will be necessary to achieve the

given project scope.”

he a""e""ment o +otent#al co"t an "cheule overrun an the e"t#mat#on o a++ro+r#ate

cont#nency level" #" an #m+ortant element o ca+#tal co"t e"t#mate" a" #t ty+#cally are""e""ome o the ma@or r#"k" to a +ro@ect




he"e r#"k" relate to #tem" "uch a":

• Level o eta#l o Sco+e

• he level o /n#neer#n com+lete at the t#me o the "tuy

• echn#cal 5#"k" or untr#e or Iout o or#naryJ +roce"" #tem"

• ?eotechn#cal ""ue"

• Weather 8normal9

• Huant#ty ake-o Deta#l

• Pr#c#n eta#l" or <ulk mater#al" an eu#+ment

• La<our co"t an La<our Prouct#v#ty

• arket *on#t#on"

• *on"truct#on Scheule ""ue"

*ont#nency A#ll <e evelo+e or the rane o r#"k" a""e""e ur#n the +re+arat#on o the

e"t#mate he r#"k analy"#"-cont#nency +roram 8R5#"k9 A#ll <e u"e a" the tool to a""e"" the

accuracy o the e"t#mate an to calculate the cont#nency nece""ary to +rov#e the reu#re

+ro<a<#l#ty o ach#ev#n the e"t#mate co"t"

he e"t#mator A#ll ac#l#tate the r#"k +roce"", A#th #n+ut rom en#neer#n, con"truct#on,

cu"tomer, an any other e"t#mate relate +er"onnel

8Plea"e reer to *o"t /"t#mate *la""##cat#on ?u#el#ne PDP-001% an *o"t 5#"k !naly"#"

Proceure PDP-0011 or more eta#l9

*%+ O6ners Costs

he"e co"t" are "+ec##cally to cater or the OAner, Ah#ch ha" not <een #nclue el"eAhere #n

the e"t#mate Normally th#" e"t#mate #" enerate <y the cu"tomer or the OAner to u"e #n

"u++ort to the /P* or /P* contractor

he"e co"t" enerally #nclue:

• OAner" eam co"t", #nclu#n "alar#e", travel, accommoat#on, o#ce co"t" etc

• Lan lea"e or +urcha"e

• 5oyalt#e" an ;ee"

• Leal *o"t"

• a=e" an n"urance" 8+u<l#c an +roe""#onal l#a<#l#ty9

• OAner" Sta *omm#""#on#n co"t"

• Sco+e Gar#ance"

• Stuy *o"t"

• OAner" 5#"k

• e#n




http://var/www/apps/conversion/current/tmp/scratch20523/EMS;documentNumber=002-002-PMP-196.doc








• arket#n an Sale"

• 5e"earch an Develo+ment *o"t"

• 3r Party *on"ultant"

* %3 Estimate Re5ie6s

*%3 *% General

o en"ure the e"t#mate meet" the el#vera<le" an accuracy reu#re, a +rore""#ve check#n

+roce"" nee" to occur ur#n the e"t#mate +re+arat#on +ha"e !n e"t#mate rev#eA #" an

e=am#nat#on an analy"#" <y a rou+ o +eo+le to en"ure the com+letene"", methooloy,

ual##cat#on" an e=clu"#on" a++l#e to the e"t#mate When evelo+#n an e"t#mate, #t #" not

uncommon to have an o+t#m#"t#c v#eA a<out uncerta#nt#e" concern#n "co+e an +roce""

#""ue" he role or the check#n team #" to #n the r#ht <alance, <e e=am#n#n the +ro@ect ata

careully an +re"ent#n the#r #n#n" an amenment", #n orer to ach#eve a com+lete anaccurate e"t#mate

here are "#= ty+#cal "tae" #n rev#eA#n a *la"" 3 e"t#mate he e"t#mate rev#eA" con"#"t o

the olloA#n:

• /n#neer#n Huant#ty Sco+e 5ev#eA

• Pro@ect eam 5ev#eA

• *or+orate /"t#mat#n anaement 5ev#eA

• (u"#ne"" En#t 5ev#eA

• Sen#or anaement 5ev#eA

• *u"tomer Pre"entat#on an 5ev#eA

he loA chart <eloA "et" out the "euence an the #ntene +ur+o"e o the e"t#mate rev#eA"

Estimate Re5ie6 9lo6 Chart




Deta#le

/"t#mate

Packa,e

0""ue to

/n,#neer#n,

3or 5ev#eA

Huant#ty6

Sco+e

5ev#eA

0""ue to

/n,#neer#n,

3or 5ev#eA

Pro@ect

2eam

5ev#eA

*or+orate

/"t#mat#n,

5ev#eA

(u"#ne""

En#t

5ev#eA

Sen#or

4ana,ement

5ev#eA

*l#ent

5ev#eA

Prel#m#nary or

De3#n#t#ve /"t#mate

0""ue #n Deta#l Level

4a@or /u#+ment

(ulk Huant#t#e"

Sco+e 5ev#eA #n Deta#l:

/"t#mate (a"#"

Huant#t#e"

0""ue #n Deta#l Level:

4a@or /u#+ment

(ulk"

Pr#c#n,

Ko<hour"

Huant#t#e"

Sco+e 5ev#eA #n Deta#l

/"t#mate (a"#"

Sco+e E"e

Huant#t#e"

Pr#c#n,

Ko<hour"

D#rect"

D#"tr#<"

ome O33#ce

*ont#n,ency


Huant#t#e"

Pr#c#n,

Ko<hour"

Percenta,e"

*ont#n,ency

*om+ar#"on"

ome O33#ce

D#"tr#<"

Pre"entat#on

Packa,e"?ro"" 4ar,#n

Pre"entat#on 3or

!cce+tance an

!++roval 6Set*ont#n,ency

Pre"entat#on 3or

;#nal !++roval

Pre"entat#on 3or

*l#ent !cce+tance

an !++roval

Deta#le

/"t#mate

Packa,e

0""ue to

/n,#neer#n,

3or 5ev#eA

Huant#ty6

Sco+e

5ev#eA

0""ue to

/n,#neer#n,

3or 5ev#eA

Pro@ect

2eam

5ev#eA

*or+orate

/"t#mat#n,

5ev#eA

(u"#ne""

En#t

5ev#eA

Sen#or

4ana,ement

5ev#eA

*l#ent

5ev#eA

Prel#m#nary or

De3#n#t#ve /"t#mate

0""ue #n Deta#l Level

4a@or /u#+ment

(ulk Huant#t#e"

Sco+e 5ev#eA #n Deta#l:

/"t#mate (a"#"

Huant#t#e"

0""ue #n Deta#l Level:

4a@or /u#+ment

(ulk"

Pr#c#n,

Ko<hour"

Huant#t#e"


/"t#mate (a"#"

Sco+e E"e

Huant#t#e"

Pr#c#n,

Ko<hour"

D#rect"

D#"tr#<"

ome O33#ce

*ont#n,ency


Huant#t#e"

Pr#c#n,

Ko<hour"

Percenta,e"

*ont#n,ency

*om+ar#"on"

ome O33#ce

D#"tr#<"

Pre"entat#on

Packa,e"?ro"" 4ar,#n

Pre"entat#on 3or

!cce+tance an

!++roval 6Set*ont#n,ency

Pre"entat#on 3or

;#nal !++roval

Pre"entat#on 3or

*l#ent !cce+tance

an !++roval

*%3*+ En1ineerin1 -7uantit4? S.ope Re5ie6

h#" #" an evaluat#on that the e"t#mate accurately re+re"ent" the +ro@ect "co+e e#ne an the

uant#t#e" are Ahat /n#neer#n el#vere to e"t#mat#n or #n+ut #nto the e"t#mat#n "y"tem he

en#neer#n rev#eA #" a manatory reu#rement an #" an #nteral +art #n ach#ev#n a *la"" 3

e"t#mate

he uant#ty Sco+e rev#eA A#ll evaluate the olloA#n:

• /n"ure e"t#mate eta#l ha" <een com+letely an correctly uant##e or #rect account"

accor#n to the "co+e ocument

• Pro@ect team rev#eA o "co+e an uant#ty eta#l" or each account

• /n#neer#nFDe"#n *o"t"

• 5ev#eA a@or /u#+ment +r#c#n

• Determ#ne non-take o uant#t#e" to <e #ncor+orate #n the e"t#mate 8#eQ "mall <ore

+#+e, l#ht#n A#re lenth", m#"c "teel9

•

Determ#ne a++ro+r#ate e"#n alloAance" to <e a++l#e over an a<ove the mater#altake-o" rece#ve to cover or knoAn unknoAn"

• n+ut to *ont#nency !naly"#"

*%3*3 Proe.t Team Re5ie6

he +ro@ect team rev#eA #" a manatory reu#rement

he ma#n +ur+o"e or the +ro@ect team rev#eA #" to cover the olloA#n:

• !""ure +ro@ect team areement A#th the e"t#mate <a"#", ormat, "co+e, an overall

com+letene"" o the +ackae

• ey rev#eA element" #nclue:




– ater#al Pr#c#n

– anual La<our En#t 5ate"

– Su<-*ontractor D#"tr#<uta<le"

– *ommon D#"tr#<uta<le"

– De"#n !lloAance"

– /P* ome an ;#el O#ce *o"t"

– /"calat#on

– *ont#nency

– OAner" *o"t"

• *on"truct#on metho" an man-hour rate"

• Procurement to check eu#+ment an <ulk mater#al +r#c#n

• /"t#mate val#at#on aa#n"t #nternal an e=ternal <enchmark"

• nclue" en#neer#n, +rocurement, an con"truct#on +ro@ect team mem<er"

*%3* Corporate Estimatin1 Mana1ement Re5ie6s

h#" con"#"t" o the olloA#n:

• /n"ure the e"t#mate methooloy #" "oun an com+lete an all normal "te+" an

+recaut#on" are taken

• nternal e+artment rev#eA o overall e"t#mate +ackae a" an #ne+enent check o the

"co+e, uant#t#e", un#t man-hour", +r#c#n, an overall +re"entat#on

• 5ev#eA the content an ormat o the /"t#mat#n +ackae

• 5ehear"e +re"entat#on

• !l#n h#"tor#cal an <enchmark#n #normat#on Aere a++l#ca<le

• !ttenee" #nclue Pro@ect anaer, *or+orate /"t#mat#n anaer, an the Lea Sen#or

/"t#mator"

*%3*; )usiness nit Re5ie6

h#" con"#"t" o the olloA#n:

• 5ev#eA o the #nal ver"#on o the e"t#mate +re"entat#on +ackae, at a total "ummary level

• Prov#e each manaer a com+lete overv#eA o the +ro@ect #n relat#on to the#r comm#tment"

an +erormance e=+ectat#on" to "u++ort the +ro@ect

• *oncur on the +ro@ect e=ecut#on +lan

• 5ev#eA an #= cont#nency, ee an +ol#cy matter"

• !++roval to +rocee A#th the "trate#e" an recommenat#on"




*%3*8 Senior Mana1ement Re5ie6

• Pre"entat#on o the e"t#mate +ackae to the o+erat#n com+any" +re"#ent an other

"en#or manaer", <y the +ro@ect manaer, u"#n the e"t#mate +ackae a++rove <y

<u"#ne"" manaement

• eet#n re"ult" #n #nal a++roval o the e"t#mate "u<m#ttal

4.13.7 Customer Re5ie6

h#" meet#n #" cha#re <y the /PL Pro@ect anaer, A#th the cu"tomer" re+re"entat#ve an

the lea e"t#mator a" +art#c#+ant" he e"t#mate +ackae #" +re"ente to the *u"tomer

re+re"entat#ve, u"#n the e"t#mate +re"entat#on +ackae a" a++rove <y <u"#ne"" un#t "en#or

manaement

he amount o #normat#on relea"e to the cu"tomer A#ll <e ec#e at the (u"#ne"" En#t an

Sen#or anaement rev#eA" #n orer to not have any commerc#al or "cheule #m+l#cat#on"oAn"tream




5. CSTOMER ESTIMATE INPT

5.1.1 Customer Input

(a"#c #normat#on nee" to <e +rov#e <y the cu"tomer Ah#ch may #nclue the olloA#n:

• y+e o Plant

• Plant *a+ac#ty an <a"#c +roce""

• ?eora+h#c locat#on

• 5eu#re Start Date

Prel#m#nary en#neer#n Aork conucte <y /PL or the *u"tomer #" "omet#me" maeava#la<le to +rov#e a#t#onal #normat#on an #m+rove the ual#ty o the e"t#mate he

+rel#m#nary Aork may #nclue the olloA#n:

• Prel#m#nary +roce"" loA "heet"

• Prel#m#nary eu#+ment l#"t 8a@or tem"9

• ?eneral arranement raA#n" an "ketche"

• (roa a""um+t#on" on "#te con#t#on" an Et#l#t#e"

• !ctual return co"t ata rom "#m#lar +lant"

• !n outl#ne o the Pro@ect Scheule




8* ENGINEERING ESTIMATE INPT

8*%*% Gener al R e:ui rem entshe eta#l o the e"t#mate A#ll #nclue all ma@or eu#+ment a" Aell a" <ulk mater#al" #n the ormat

"+ec##e #n the e"t#mate k#ck-o +lan, a" el#vere <y the Lea /"t#mator

! tem+late /n#neer#n ran"m#ttal or *o"t /"t#mate n+ut PD;-1006 or the ormal tran"m#ttal

o #normat#on rom en#neer#n to the Lea /"t#mator #" +rov#e #n !++en#= 3

8* %* + Pl ant E:ui pment

/n#neer#n #n+ut or the e"t#mate A#ll #nclue ma@or eu#+ment l#"t" or all +ermanent ac#l#t#e",

#nclu#n mechan#cal, electr#cal an control eu#+ment, mo<#le eu#+ment an "+are"

he eu#+ment l#"t" A#ll #nclue the olloA#n ata, or #tem":

• ;ac#l#ty *oe

• *ommo#ty *oe

• Work +ack num<er

• /u#+ment a Num<er

• Huant#ty an En#t o ea"ure

• /u#+ment De"cr#+t#on

• S#.e, 5at#n or "+ec##cat#on"

• We#ht

• anuacturer

• otor Nootor S#.e 8kW9 Ahere a++l#ca<le

!l"o #n orer to evaluate re#ht co"t" on the eu#+ment #t #" nece""ary to #nclue the olloA#n

Ahere +o""#<le:• Overall #men"#on"

• a""

• Pro<a<le country o "ource

• !ny +re-a""em<ly 8#nclu#n "#.e o "k# an any <ulk mater#al" reu#re9

8* %* 3 )u l/ Mat er ial s

/n#neer#n A#ll +rov#e <ulk mater#al uant#t#e" <y:

• ;ac#l#ty Num<er

http://var/www/apps/conversion/current/tmp/scratch20523/EMS;documentNumber=002-002-PMF-316.doc





• *ommo#ty Num<er

• Work +ack num<er

he "u++ort#n ocumentat#on or the ater#al ake-O "heet" A#ll <e +rov#e an #nclue:

• Layout DraA#n"

• Sketche"

• PD" 8/LD" > /n#neer#n L#ne D#aram"9

• P#+#n L#ne a<le"

• Proce"" ;loA D#aram"

• echan#cal Data Sheet"

• n"trument l#"t an ata "heet"

• /lectr#cal S#nle l#ne #aram"

• !ny +re-a""em<ly 8#nclu#n "#.e o "k# an any <ulk mater#al" reu#re9

he "u++ort#n ocumentat#on, "tat#n "#.e, an Ae#ht o "k#, "ource o "k#

8*+ En1ineeri n1 [email protected] on Pl an

he olloA#n act#v#t#e" an out+ut" are reu#re rom /n#neer#n "o a" to +re+are the *la"" 3

*o"t /"t#mate h#" #" <y no mean" an e=hau"t#ve l#"t an may nee to <e ae or elete a"

a++ro+r#ate

8* +* % Pro .es s

he olloA#n are the +roce"" act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are <r#e +roce"" "co+e an e"cr#+t#on ocument to "erve a" "u++ort or the

e"t#mate

• Proce"" ;loA D#aram"

• Pre+are P#+#n an n"trumentat#on D#aram" 8/LDS > /n#neer#n L#ne D#aram"9

• Pre+are l#ne l#"t"

• Prov#e +roce"" #normat#on or neA eu#+ment ata"heet"

8 *+ *+ P ip in129i tt in1s

• Pre+are P#+#n an ;#tt#n ater#al ake O - O "heet" Where +#+e" are on a l#ne

l#"t the tran"m#ttal mu"t <e #n /=cel ormat "hoA#n ac#l#ty coe, l#ne "#.e, "+ec, neat

uant#ty #n l#near metre" mea"ure throuh centrel#ne o all #tt#n", "hort e"cr#+t#on,

#tt#n count <y ty+e he l#ne e"cr#+t#on "houl #n#cate Ahether the l#ne #" normal #n+lant or rack +#+e, or +art o a "k# +rea""em<ly




• Where a l#ne +a""e" throuh more than one ac#l#ty #t A#ll <e coe to the ac#l#ty Ahere

the loA "tart" Where a l#ne +a""e" throuh a "k# a "e+arate l#ne num<er A#ll <e

#ven to the "k# +ort#on

• Where +#+e an #tt#n" are to <e #n"talle o"#te a" +art o a "k# or +rea""em<ly, th#"mu"t <e note <y a e"#nate al+ha <u#lt #nto the l#ne l#"t he /"t#mator A#ll then

a""#n "+ec#al coe" an rate" or th#" ty+e o Aork

• ;#tt#n co"t" A#ll <e calculate a" a com+o"#te Ae#hte rate or each "#.e an "+ec <y

the /"t#mator, <a"e on the #tt#n count <y ty+e rom the en#neer

• Pre+are P#+#n "+ec#al#ty ater#al ake-o Sheet" "hoA#n ac#l#ty coe, "#.e, ty+e,

"+ec uant#ty

• Pre+are P#+e t#e #n l#"t <y ty+e <a"e on a +re aree #aram o var#ou" com+onent

com+le=#t#e" he #aram mu"t #n#cate hot t#e #n" he t#e #n l#"t mu"t "hoA ac#l#ty

coe, "#.e, "+ec, ty+e

• P#+e "u++ort" <eloA 100k #n At A#ll <e alloAe or <y the e"t#mator Structural +#+e

"u++ort" reater than 100k #n Ae#ht "houl <e #n the "tructural "teel commo#ty

coe"

• P#+e "#.e" reater than DN70 A#ll <e a""ume to <e "+oole o"#te 8"ho+ a<r#cate9

unle"" note otherA#"e h#" A#ll <e a++l#ca<le to *ar<on Steel P#+e, Aherea"

Sta#nle"" P#+e A#ll #nclue "#.e" DN 70 8al"o9 an a<ove he e"t#mator A#ll #ent#y

"e+arately the uant#ty o +#+e an #tt#n" to <e "+oole <a"e on the +#+e l#ne l#"t"

an ater#al ake-o", no #n+ut rom en#neer#n #" reu#re

•

P#+e n"ulat#on l#ne l#"t" or ater#al ake-o" are reu#re "hoA#n nom#nal +#+e "#.e,ty+e o #n"ulat#on an cla#n, th#ckne"" o #n"ulat#on, lenth #n l#near meter" throuh

centrel#ne o all +#+e, #tt#n", valve" an +#+e "+ec#al" he /"t#mator A#ll actor #n the

e=tra co"t o #n"ulat#n #tt#n" #n the +#+e #n"ulat#on rate




• ND Aork co"t" or the "+oole +ort#on o +#+e" A#ll <e alloAe or <y the /"t#mator

<a"e on the a++l#ca<le +#+e "+ec, an the co"t" #nclue #n the "+ool#n rate" ND

or all "#te +#+e Aork A#ll <e alloAe or an #ent##e "e+arately <y the /"t#mator a" a

lum+ "um #n each ac#l#ty <a"e on the #nal uant#ty o +#+e #n each ac#l#ty, al"o tak#n#nto account the +#+e #n "k#"

8* +* 3 &al 5es

• Pre+are manual Galve O "heet", "hoA#n ac#l#ty coe, en#neer#n valve coe, "#.e

• Note *ontrol Galve" A#ll <e coe to the #n"trument commo#ty coe"

8*+* Pipeline

he olloA#n are the +roce"" act#v#t#e" reu#re to evelo+ the e"t#mate:

• Enertake route "elect#on an +re+are +#+el#ne al#nment "heet"

• *oor#nate any eora+h#cal, hyrolo#cal or other "tu#e" reu#re to +rov#e an

acce+ta<le level o e#n#t#on o the +#+el#ne route, #n +art#cular area" o rock

• Pre+are ater#al ake-o"

8 *+*; M e. ha ni.a l

he olloA#n are the mechan#cal act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are <r#e mechan#cal "co+e o Aork ocument to "erve a" "u++ort or the e"t#mate

• *oor#nate an +re+are ma@or mechan#cal eu#+ment l#"t <y ta num<er

• Pre+are eu#+ment l#"t #n an e=cel #le ormat, "u#ta<le or #m+ort#n #nto the IHue"tJ

e"t#mat#n "y"tem he eu#+ment l#"t A#ll <e accom+an#e <y a har co+y, A#th a

"#ne tran"m#ttal av#ce, rev#"#on "tam+e an l#"t#n any attachment"

• Pre+are tran"m#ttal tem+late" rom en#neer#n Ah#ch A#ll #ent#y any unu"ual +ro<lem"

or "+ec#al con"truct#on techn#ue" that are env#"ae Ah#ch A#ll aect the u"e o

"tanar #n"tallat#on hour" ;or e=am+le, he#ht, com+le=#ty, re"tr#cte acce"", lon

reach or heavy l#t cranae etc he tran"m#ttal ormat can <e o<ta#ne rom the

*or+orate /"t#mat#n ?rou+ 5eer to !++en#= 3

• Pre+are eu#+ment ata "heet" or ma@or #tem" o eu#+ment or el#very to venor" or

<uetary +r#ce #nu#ry ent##cat#on an contact o venor" "houl <e coor#nate

throuh +rocurement +er"onnel

• O<ta#n an com+#le +r#c#n #normat#on rom +a"t +ro@ect", reue"t <uet co"t" or

+re+are <# evaluat#on" rom Genor" 8A#th the "u++ort rom Procurement9 h#"

#normat#on A#ll <e u"e a" "u++ort#n ocumentat#on or the e"t#mate

8 *+ *8 C i5 il ?St ru.tural

he olloA#n are the c#v#l"tructural act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are <r#e c#v#l"tructural "co+e o Aork ocument to "erve a" "u++ort or the e"t#mate




• Pre+are O or "#te Aork" 8# reu#re9

• Pre+are O or earth Aork" 8or ounat#on" an trench#n9

• Pre+are O or concrete 8ounat#on"9 an +#l#n

• Pre+are O or "tructural "teel

• Pre+are O or <u#l#n"

• O<ta#n an com+#le +r#c#n #normat#on rom recent orer" or reue"t <uet co"t" rom

Genor" 8A#th the "u++ort rom Procurement9 h#" #normat#on A#ll <e u"e a"

"u++ort#n ocumentat#on or the e"t#mate

8 *+*< E le .t ri .a l

he olloA#n are the electr#cal act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are <r#e electr#cal "co+e o Aork ocument to "erve a" "u++ort or the e"t#mate

• Pre+are ma@or electr#cal eu#+ment l#"t A#th loa rat#n"

• Pre+are ater#al ake-o 8O9 or ca<le an term#nat#on"

• Pre+are Kunct#on (o= locat#on an /lectr#cal #tem locat#on +lan"

• Pre+are O or ca<le laer

• Pre+are O or l#ht#n

• Pre+are O or commun#cat#on" ca<le

• Pre+are O or earth#n

• Pre+are electr#cal ata "heet" or ma@or #tem" o eu#+ment or el#very to venor" or

<uetary or <# evaluat#on +r#ce #nu#ry ent##cat#on an contact o venor" "houl

<e coor#nate throuh +rocurement +er"onnel

•

O<ta#n an com+#le +r#c#n #normat#on rom recent orer" or reue"t <uet co"t" romGenor" 8A#th the "u++ort rom Procurement9 h#" #normat#on A#ll <e u"e a"

"u++ort#n ocumentat#on or the e"t#mate

8*+* Instrumentat ion and Control

he olloA#n are the #n"trumentat#on an control act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are <r#e #n"trumentat#on an control "co+e o Aork ocument to "erve a" "u++ort or

the e"t#mate

• Pre+are n"trument ne=

• Pre+are D*SSS eu#+ment arch#tecture u+rae +lan"




• Pre+are O o #n"trument ty+e" an <uet +r#c#n coor#nate throuh Procurement

?rou+

• Pre+are O o <ulk mater#al" to <e #n"talle

• Pre+are *ontrol Galve an PSG O "heet" "hoA#n ac#l#ty coe, valve e"cr#+t#on,

"#.e an rat#n

8* +* = !CS A pp li .ati on s

he olloA#n are the D*S !++l#cat#on" act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are D*S !++l#cat#on" venor "+ec##cat#on or harAare an "otAare con#urat#on

or <uetary +r#ce #nu#ry nu#ry ocument" an +r#c#n to <e co-or#nate throuh

+rocurement

• Pre+are <r#e D*S !++l#cat#on" con"truct#on "co+e o Aork" "+ec##cat#on to "erve a"

"u++ort or the e"t#mate

8*+*%$ Communi.ations and SCA!A

he olloA#n are the commun#cat#on" an S*!D! act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are <r#e commun#cat#on" an S*!D! "co+e o Aork ocument to "erve a"

"u++ort or the e"t#mate

• Pre+are S*!D! eu#+ment l#"t#n an "chemat#c

• Pre+are commun#cat#on" an S*!D! ata "heet" or ma@or #tem" o eu#+ment or

el#very to venor" or <uetary +r#ce #nu#ry ent##cat#on an contact o venor"

"houl <e coor#nate throuh +rocurement +er"onnel

• O<ta#n an com+#le +r#c#n #normat#on rom recent orer" or reue"t <uet co"t" rom

Genor" 8A#th "u++ort rom +rocurement9 h#" #normat#on A#ll <e u"e a" "u++ort#n

ocumentat#on or the e"t#mate

8*+*%% Anal4sers

he olloA#n are the !naly"er" act#v#t#e" reu#re to evelo+ the e"t#mate:

• Pre+are !naly"er" venor "+ec##cat#on or harAare an "otAare con#urat#on or<uetary +r#ce #nu#ry nu#ry ocument" an +r#c#n to <e coor#nate throuh

+rocurement

• Pre+are <r#e !naly"er" con"truct#on "co+e o Aork" "+ec##cat#on to "erve a" "u++ort

or the e"t#mate

8*+*%+ S /ids

/n#neer#n A#ll +rov#e clear #ent##cat#on o all <ulk mater#al" an eu#+ment conta#ne A#th#n

a "k# Ah#ch #" a""em<le o"#te he uant#t#e" A#ll <e <y:

• ;ac#l#ty Num<er




• Sk# #ent#y#n num<er or al+ha

• *ommo#ty Num<er 8a""#ne <y e"t#mator9

• he "u++ort#n ocumentat#on, "tat#n "#.e, an Ae#ht o "k#, "ource o "k#

8*+*%3 Paint in12Sur0a.e Treatment

/n#neer#n A#ll +rov#e clear #ent##cat#on o all mater#al" an eu#+ment Ah#ch A#ll reu#re

+a#nt#n or alvan#"#n he uant#t#e" #n "uare metre" A#ll <e calculate <y the /"t#mator

<a"e on the uant#t#e" o "teel, +#+e etc "u<m#tte <y the en#neer" or each commo#ty he

/"t#mator #n con"ultat#on A#th the en#neerFcontract" may choo"e to #nclue the +a#nt#n a" +art

o the normal commo#ty coe or a" l#ne #tem" #n a #"crete +a#nt#n coe ;or e=am+le, the

alvan#"#n o "teel Aoul rema#n a" +art o the "teel commo#ty account, Aherea" the +a#nt#n

o a "#te <u#lt tank may <e coe uner the +a#nt#n account a" the +a#nt#n contract may <e

"e+arate rom the tank contract

! metho "tatement A#ll <e +re+are <y the en#neer outl#n#n hoA +a#nt#n co"t" A#ll <e

ca+ture or each a++l#ca<le commo#ty




<* PROCREMENT ESTIMATE INPT

• Genor Huote"F(# !naly"#"

-a@or Plant /u#+mentFSu<contract"

-Selecte (ulk ater#al"

• Genor Huote"

-Plant /u#+ment

-(ulk ater#al"

• Genor 5e+re"entat#ve 5ate" an /=+en"e"

• ;re#ht 5ate"

• a=e", Dut#e" an n"urance"

• Procurement ann#n *hart"

• arket Pr#c#n an /"calat#on !naly"#"

• Lea #me" on a@or /u#+ment




* CONSTRCTION ESTIMATE INPT

• *on"truct#on Plan

• anual La<our 5ate" an Work Week"

• anual La<our Prouct#v#ty

• em+orary ;ac#l#t#e"

• *on"truct#on Su++ort an /u#+ment

• S+ec#al 5##n 5eu#rement"

• Pre-*omm#""#on#n an Startu+ De#n#t#on an ann#n

• Saety Proram

• La<our 5elat#on" !reement

• *on"tructa<#l#ty Plan

• *on"truct#on Non-anual ann#n *hart"

• n+ut to *on"truct#on Scheule




=* HISTORICAL !ATA

=*% *% sin1 )en.hmar/in1 and Histori.al !atan the uture, a /PL <enchmark#n tool A#ll <e evelo+e an mae ava#la<le to a""#"t #n

rev#eA#n a *la"" 3 e"t#mate at the e#ne +ha"e Pu<l#"he #normat#on #" ava#la<le, an can

<e u"e, hoAever #t" accuracy #" not alAay" knoAn n hou"e ata<a"e" are +reerre, a" the

<a"#" o co"t #" ual##e an uner"too to make a++ro+r#ate a@u"tment" *om+ar#n ca+#tal

co"t e"t#mate" reu#re" co"t" o "#m#lar +a"t +ro@ect" an reu#re" a@u"tment" or the neA

locat#on, t#me +er#o an #nra"tructure, Ah#ch u"ually reu#re" @uement or Aell e#ne

a@u"tment actor"

9.1.2 Pro-ration Estimates

Pro-rat#on e"t#mate" are a u#ck Aay to eterm#ne the co"t o a "+ec##c ac#l#ty or commo#ty tocheck or rea"ona<lene"", a" lon a" #t meet" the olloA#n reu#rement":

• Nee #"tor#cal ata or recent co"t" on a "#m#lar +lant an +roce""

• u"t <e near u+l#cate

• Shoul <e rea"ona<ly clo"e #n "#.e

• !@u"t or o-"#te" an ut#l#t#e"

• !@u"t or +ro@ect e=ecut#on #erence"

• !@u"t or e"calat#on an or locat#on




%$ * EST IM ATE P RESE NTATION 9 OR MAT

Currentl4 under de5elopment




%%* !OCMENTATION )ASIS 9OR ESTIMATING

t #" very #m+ortant that the e#ne "co+e an the var#ou" #n+ut" or the e"t#mate +re+arat#on

are ca+ture an #nclue #n a reerence ocument h#" a""#"t" #n controll#n the "co+e or the

ne=t +ha"e an #ent#y#n Ahere an Ahy chane" to the +ro@ect co"t have occurre he lea

+er"onnel #ent##e are re"+on"#<le or en"ur#n the "co+e a""um+t#on" an ual##cat#on", an

e"#n el#vera<le" are orAare to the Lea /"t#mator to ena<le com+#lat#on o the /"t#mate

(a"#"

h#" Aoul #nclue the olloA#n:

• Sco+e ocument

• ater#al ake-o"

•

*o+#e" /u#+ment an (ulk ater#al Pr#c#n• La<our 5ate" (u#l u+ an *reA #=e"

• Su<-*ontractor *o"t"

• *ommon D#"tr#<uta<le" *o"t"

• /P* or /P* Serv#ce" <acku+

• *ont#nency or 5#"k !""e""ment




%+* RESPONSI)ILIT" TA)LE

Deta#le <eloA #" a re"+on"#<#l#ty matr#= or the e"t#mate" t l#"t" the ata reu#re or the

"ucce""ul com+let#on o the e"t#mate" an the re"+on"#<le e+artment+er"on or "u++ly#n

that ata

he ata A#ll <e tran"erre to the e"t#mator" an A#ll enerally #nclue:

• Sco+e e"cr#+t#on"

• ater#al ake O" 8O"9 or <ulk mater#al"

• (# "ummar#e" or eu#+ment

• L#"t o reerence raA#n" an "ketche"

• *orre"+onence

• /u#+ment l#"t"

• (uet +r#c#n 8Ahere a++l#ca<le9

S.ope Responsi,ilit4

%* S.ope !e0inition> !o.umentation and [email protected] Strate14 eam anaer

+* 7uantit4 and Pri.in1 !e5elopment

Major Equipment

/u#+ment l#"t o all +roce"", ut#l#ty, an "+ec##c "#te "u++ort

+lant #ent#y#n nece""ary #normat#on an e"#n ata,

e"#n alloAance +ercentae or uote #tem" an "+are

+art" Pre+are e=#"t#n ata "heet" to #""ue to Procurement

or recon#rmat#on o eu#+ment +r#c#n

/n#neer#n

Pr#ce" uote <y venor", current market +r#c#n #normat#on,

#nlan an ocean re#ht rate" an relate ata or "h#+ment o

eu#+ment, #m+ort ut#e" # reu#re, venor re+re"entat#ve

rate" an e=+en"e"

Procurement

*on"truct#on an #n"tallat#on metho" an "cheule", la<our

ava#la<#l#ty an +rouct#v#ty #normat#on

*on"truct#on

La<our rate #normat#on /"t#mat#n

Sale" an other ta=e", ore#n currency #""ue" an #m+ort

ut#e"

ProcurementF/"t#mat#n

a@or eu#+ment e"t#mate, #nclu#n rev#eA o "co+e, mater#al /"t#mat#n





an la<our +r#c#n

Bulk Quantity Development

Develo+ment o the var#ou" level" o "co+e #nclu#n take-

o"

/n#neer#n

etho" u"e to evelo+ uant#t#e" /"t#mat#n

Contracts

*ontract#n Plan *on"truct#onF*ontract"

3* 9ield Manual and La,our Pri.in1

/"ta<l#"h#n an u+at#n #el #n"tallat#on la<our hour

"tanar"

/"t#mat#n

anual la<our +rouct#v#ty, Aae rate" an crat m#=e"

evaluat#on

/"t#mat#n*on"truct#on

/"ta<l#"h#n com+o"#te Aae rate" an the a++l#cat#on o

"tanar la<our hour" an +rouct#v#ty

/"t#mat#n

* Contra.tors and Common !istri,uta,le

Pre+arat#on o D#"tr#<uta<le" /"t#mate /"t#mat#n

De#n#t#on o tem+orary #el ac#l#t#e", ut#l#t#e", con"truct#on

"u++ort "erv#ce", con"truct#on eu#+ment, tool" an

con"uma<le", #el non-manual "ta#n reu#rement", manual

la<our rate" an +rouct#v#ty

*on"truct#onF/n#neer#n

;* Ser5i.es Estimate !ll

/n#neer#n @o< hour", other #rect co"t" /n#neer#n

De+artment /"t#mate o hour" an other #rect co"t" De+artment anaer"

otal co"t o /P* eam/"t#mat#n

8* Es.alation Anal4sis

/"calat#on rate" /"t#mat#n

n"truct#on" an #normat#on to the e"t#mat#n team concern#n /"t#mat#n





o+erat#on" +ol#cy on e"calat#on rate", #ne=e" an +ro@ect#on"

<* Contin1en.4 Anal4sis

Develo+ment o e"t#mate an the <e"t mea"ure o +otent#al

var#ance #n +ro@ect co"t"

eam

;#nal e"t#mate #ure anaement

* Estimate Re5ie6s

Engineering Review (Quantity/Scope

he Huant#ty 5ev#eA meet#n #" hel to en"ure the e"t#mate eta#l ha" <een com+letely an correctly

uant##e or all #rect account cateor#e" accor#n to the "co+e ocument h#" meet#n #" a team

rev#eA o "co+e an uant#ty eta#l" or each account, an #t #" a key rev#eA o the #rect account

uant#t#e" Ahere areement on the total +ackae mu"t <e reache amon all attenee"

he e"t#mate eta#l "heet" that are to <e rev#eAe mu"t <e #""ue to en#neer#n at lea"t tAo Aork#n

ay" <eore the meet#n, to +rov#e "u#c#ent t#me or #ne+enent rev#eA"

Customer Review

h#" meet#n #" cha#re <y the /PL Pro@ect anaer, A#th the cu"tomer" re+re"entat#ve an the

lea e"t#mator a" +art#c#+ant" he e"t#mate +ackae #" +re"ente to the cu"tomer re+re"entat#ve,

u"#n the e"t#mate +re"entat#on +ackae a" the a++rove <y unct#onal manaement




!++en#= 1 > *o"t /"t#mate *la""##cat#on ?u#el#ne PDP-001'






Appendi@ + B anual La<our 5ate Develo+ment ?u#el#ne PDP-002&

http://var/www/apps/conversion/current/tmp/scratch20523/EMS;documentNumber=002-002-PMW-176.xls

http://var/www/apps/conversion/current/tmp/scratch20523/EMS;documentNumber=002-002-PMW-176.xls




Appendi@ 3 B /n#neer#n ran"m#ttal or *o"t /"t#maten+ut PD;-1006





capital cost estimate class 3 -onshore guideline

Documents

control estimate

successful estimate

type of estimate

important estimate

ltdcapital cost estimate

engineering estimate

procurement estimate

construction estimate