C A P I T A L C O S T E S T I M A T I N G –

O W N E R ’ S C O S T S I N A N E P C P R O J E C T

D E L I V E R Y M E T H O D

D O I N A D O B R E

W H A T A R E O W N E R ’ S C O S T S

I N A N E P C C A P I T A L P R O J E C T ?

Generally speaking, I would say that the Owner’s costs are all the costs

required to bring a project to a commercially operable status, less the

cost of the EPC contract.

As part of the capital cost of a

project , the Engineering ,

Procurement and Construction (EPC)

includes all costs to deliver a turnkey

facility that is ready to go .

EPC – What is in the name?

The EPC contractor is responsible for

the design , procurement ,

construction , and commissioning &

start-up.

EPC – What is in the name?

Direct cost Indirect

Costs

P R O J E C T C A P I T A L C O S T B R E A K D O W N

T H E D I R E C T C O S T S A R E A L L T H E C O S T S

I N C L U D E D I N T H E E P C C O N T R A C T :

Detailed design

Site investigations

Procurement

Contractor’s direct and indirect construction costs

Commissioning & Start-up

Contractor’s overhead and fees

T H E I N D I R E C T C O S T S A R E :

Project contingency

Owner’s costs

O W N E R ’ S C O S T S

Pre-production costs

Inventory capital

Land costs

Financing costs

Preliminary feasibility studies

Front-end engineering design study

Community support

Site development outside of project boundaries

Camp and housing facilities

Temporary site services and facilities

O W N E R ’ S C O S T S C O N T I N U E D . . .

Insurance

Freight for Owner’s supplied equipment (if any)

Currency exchange

Legal fees

Permitting and permits

Owner’s engineer

Owner’s Project Management

Owner’s contingency (Owner’s reserve)

Taxes

Escalation during capital expenditure period

Interest on debt during capital expenditure period

W A N T T O R E A D M O R E

A R T I C L E S O N C O S T

E S T I M A T I N ,   O R G E T A C C E S S

T O T R A I N I N G ?  

http://www.LearnCostEstimating.com

https://www.EmeraldGroup-Learning.com

VISIT US AT: