iv about the firm acknowledgements introduction to …€¦ · basic man-hour benchmarking data...

Copyright © 2016 Compass International, Inc.

01

CONTENTS

ABOUT THE FIRM

ACKNOWLEDGEMENTS

A1INTRODUCTION TO CAPITAL COST ESTIMATING:The General Forecast for 2016 and beyondThe Project Control CycleCost breakdown of a typical Chemical process facilityThe CAPEX Estimating processPresenting the estimate to Senior ManagementOptimizing the estimating effort

A2CAPITAL COST ESTIMATING FUNDAMENTALS:Questions that need to be askedThe Estimating four step processCapital Cost Estimating TermsEstimating Types / AccuracyEngineering Deliverables & Budget:Pricing to compile various estimatesResolution allowance / Undefined Scope AllowanceDeveloping an Estimating Plan

A3CAPITAL COST ESTIMATING METHODS:CAPEX estimating (10 +) approaches:Various factoring methods:Seven historical Ratio / M.E. percentage cost models:Typical Solids, Fluids M.E. multiplying values:General Process Industry BenchmarksSummarizing the CAPEX Estimate:

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A4BASIC MAN-HOUR BENCHMARKING DATA & REFERENCE TABLES

A5SITE SELECTION / COST DATA SOURCES / ESTIMATING CHECKLIST

A6VALUE ENGINEERING / CHANGE ORDERS / CLAIMS / CONTINGENCY

B1SCALE OF OPERATIONS / EXPONENTS (180 + PLANTS / M.E. ITEMS)

B2ADDITIONAL ESTIMATING FACTORS COST MODELS (18 + EXAMPLES)

B3SQUARE FOOT / M2 ESTIMATING DATA (100 + BUILDINGS / FACILITIES)

REVAMP / REHABILITATION COST VALUES

B4UNIT PRICE DATA (1,000 + UNIT COST ITEMS)

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B5GENERAL COST ESTIMATING DATALocation Factors (200+ North American / International Cities): International Location Factors / Productivity: Engineering / Engineering / CM Fee’s: Union Labor Costs (10 trades): Open Shop Labor Costs (10 trades): Sales Tax (50 US states and 10 Canadian Provinces): Inflation / Compass Cost Index: Rebar / Pipe / Concrete / Bricks Pricing (14 cities):General Condition / Preliminaries Data:

C1MAJOR EQUIPMENT / PROCESS EQUIPMENT COST & LABOR MODELS

(125 # MAJOR EQUIPMENT ITEMS)

D1FRONT END / SEMI-DETAILED ESTIMATING METHODSFront End Issues / Types of Data Required: Benchmarking Metrics: Detailed Design / Engineering Metrics:Civil, Structural, Architectural / Miscellaneous Costs:Structural Steel Costs: Facilities / Buildings Costs: Piping / Insulation Metrics:Electrical Systems:Instrumentation: Security Equipment / Robotics:Miscellaneous estimating items:

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wners, A/E, EPC, CM firms and contractors when they generate their project Front End / Concep-tual and Detailed / Lump Sum estimates use many different formats and configurations (i.e. estimat-ing templates and summaries). There seems to be no standard approach in industry, this initially can cause some problems to individuals charged with the responsibility of reviewing and checking these es-timating deliverables and was one of the drivers for the production of this database. We have endeavored to standardize some of these Front End / Conceptual and Detailed / Lump Sum estimating summaries in this particular section. The underlying principle of this section is to outline a number of different ap-proaches and methodologies related to estimating the cost of Process / Manufacturing type facilities. This section contains historical estimating bench-marks (based on return cost data records) together

with numerous single point metrics that hopefully will assist the reader in future estimating and audit-ing activities. The number one basic principle of Project Management and it’s sub elements i.e. Proj-ect Control – Cost Estimating is to deliver the best technical and business solution to the business unit considering or building a new facility expansion(s) or upgrade(s), together with value (which of course is part of the business solution) for future CAPEX investments. The project team must deliver the correct business solution at the front end stage(s) of CAPEX project, the scope, needs to be to some extent reasonably defined, some front end design work needs to have been completed, various manu-facturing / production schemes need to have been considered and scoped out. The decision to engi-neer / procure and construct (EPC) a new Chemical / Manufacturing Facility, or to upgrade, revamp or

BUSINESS ANALYSIS

Items A – G (above)

SCOPE OF WORK DEVELOPMENT

FRONT END / CONCEPTUAL ESTIMATING

+/- 30%

PROCEED(Yes or no)

Abandon study if companies

ROI investment criteria is not

achieved, move to next prospect

Continue with study if companies ROI

investment criteria is achieved produced more defined scope

and +/- 20% Estimate

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(2) Average Historical (Multiplier) Factors - Liquid Plants +/- 25% Accuracy (Chemicals / Fluids / Wet Process’s type facilities, high percentage of pumps / piping) Assume Major Equipment cost is

$1.00 million delivered to site the following aver-age percentages should be used as a starting point. Off sites (O.S.B.L.) are excluded from the following data values.

Table 2AVERAGE HISTORICAL (MULTIPLIER) FACTORS − LIQUID PLANTS

REF DIRECT CONSTRUCTION TYPICAL % % BULK % LABOR TOTAL REMARKSCOSTS OFM.E. MATERIALS -S/C

1 Major Equipment (M.E.) 0 1.00* 0.00 1.00 Assume $1.00 million2 Freight (used 4%) 2.5 - 5 0.02 0.02 0.04 50/50 split3 Overseas Freight 5 - 8 N/A N/A N/A for this example4 M.E. Setting 1 - 7 0.01 0.05 0.06 Heavy lift cranes in line 15 (Millwright work) 5 Site work / civil 3 - 10 0.02 0.03 0.05 Site clearance / (excavation / roads) minor demolition6 Concrete work 8 - 25 0.03 0.10 0.13 SOG & elevated7 Structural steel 15 - 35 0.10 0.11 0.21 Including platforms8 Facilities / Buildings 3 - 15 0.03 0.02 0.05 (including services) 9 Piping** 50 - 150 0.40 0.60 1.00 ISBL only (includes hangars & testing)10 Electrical 15 - 45 0.09 0.13 0.22 Including tracing11 Instrumentation / Controls 20 - 65 0.15 0.13 0.28 12 Insulation 3 - 25 0.02 0.03 0.05 13 Painting 2 - 10 0.01 0.01 0.02 14 Safety / F P / Misc. (A) 4 - 12 0.02 0.03 0.05 TOTAL DIRECT COST 1.90 1.26 3.16 INDIRECT PROJECT COSTS 15 Field Establishment Costs *** 0.29 23% of labor / S.C. costs16 EPC Office H.O. range 20% - 30% 0.86 27% of total direct costs17 Construction Management range 20% -.45% of line 16 0.21 25% of EPC H.O18 Owner Engineering & CM 5% – 15% of line 16 & 17 0.11 10% of line 16 & 1719 TOTAL INDIRECT COSTS 1.47 20 TOTAL COST MULTIPLIER 4.63

(A) = Start up costs, initial chemicals, expense items and other minor items.

* 1.00 = Total value of Major Equipment / Assume 25 items (M.E.)** 50% - 150% is based on using a 60 - 40 split of Carbon Steel and 304-316 SS, this value could in some situations exceed 150% in circumstances were exotic / expensive piping materials are utilized, i.e. Glass / Kynar / Teflon lined / Alloy 20 / Nickel, etc., or high percentage of 304 - 316 SS, etc. is used due to hazardous / highly corrosive chemical applications.*** Field establishment includes, construction equipment, field offices, field in directs, G.C.’s & S/C trailers, temporary warehous-es, Division 1 (Preliminaries) etc. If the proposed project is a hybrid of a liquids and solids plant, use an average of both plants / facilities.

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Table 2RESEARCH & DEVELOPMENT FACILITY 40 – 50% ISO 8 CLASS 100,000

DIV NO DESCRIPTION % TOTAL VALUE SF / COST M2 / COST

1 Preliminaries / General Requirements 9.53% 2,076,086 28.83 310.262 Site Works / Civil 3.76% 819,107 ** 11.38 122.413 Concrete 5.84% 1,272,228 17.67 190.134 Masonry 6.48% 1,411,651 19.61 210.965 Metals / Structural Steel 7.46% 1,625,142 22.57 242.876 Wood Plastics 4.84% 1,054,381 14.64 157.577 Thermal & Moisture Protection 3.55% 773,358 10.74 115.578 Doors & Windows 3.36% 731,968 10.17 109.399 Finishes 5.73% 1,248,266 17.34 186.5510 Specialties 1.90% 413,910 5.75 61.8611 Equipment* 9.31% 2,028,160 * 28.17 303.1012 Furnishings 0.72% 156,850 2.18 23.4413 Special Construction 0.32% 69,711 0.97 10.4214 Conveying Systems (3P / 1G) 1.97% 429,159 5.96 64.1415A Plumbing 5.93% 1,291,835 17.94 193.0615B HVAC (AHU’ s / Ductwork / Balancing) 16.79% 3,657,657 50.80 546.6215C Fire Protection / Sprinklers 1.25% 272,309 3.78 40.7016 Electrical 9.59% 2,089,156 29.02 312.2116A BMS / HVAC Controls 1.67% 363,805 5.05 54.37 SUB TOTAL ` 100% 21,784,740 302.57 3,255.6117 A/E Services 8.85% 1,927,949 26.78 288.1218 CM 4.75% 1,034,775 14.37 154.6419 Validation Services N/A N/A N/A N/A TOTAL 113.60% 24,747,465 343.71 3,698.37

(4) CHEMICAL PERCENTAGE RANGE PROCESS PLANT (CONCEPTUAL ESTIMAT-ING APPROACH) ACCURACY +/- 30% ISBL ONLY PERCENTAGES OF MAJOR EQUIP-MENT DELIVERED TO SITE

** The above Includes craft supervision, tem-porary facilities, testing, clean up, security, rental equipment, warehousing, payroll taxes / benefits, workers comp, small tools / consumables.

• For OSBL work add 5 – 70%• See chart next page.

(5) ZEOLITE PLANT SUMMARY ESTI-MATE RATIO / PRELIMINARY ESTIMATE +/- 20% Accuracy

• See chart following pages• M.E. Multiplier = 5.22 with contingency / 4.99

w / o contingency

(6) Paint Manufacturing Facility / Partial Ret-rofit located in Mid West (2004 Costs) Constructed on an established operating site with adequate utili-ties (needing some modification / upgrading)

• See chart following pages• Excludes: Owner corporate engineer-

ing $515,000 and Front End Engineering Study $330,000 that was completed in 2002:

• Demolition and asbestos removal could be an expense item. Refer to previous L & M ratio’s to determine man-hours and material ratios / splits.

(7) Consumer Products Facility Personal Care Products - Central America: (Soap, Shampoo and Dental Hygiene Products)

• Production 21,500 M2 - Admin / Laboratory 5,700 M2 - Warehouse - 10,500 M2

• See chart following pages

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with an understanding of the accuracy of the capital cost estimate deliverables (it’s a tall order - however these individuals are out there, the challenge is to find them and hire them and educate them to the organizations methods).

The term “Process / Chemical Industry” or “Manufacturing / Industrial / Chemical Production” sector - as it is many times described, embraces the following major business sectors / industry nomen-clature, (they mean the same thing to the lay person) that many times overlap each other and basically refer to the same industry sectors. This gets more complicated when discussing this in the context of building new facilities in this industry. The names bandied around when discussing this is that it is an industrial project, or it is an Oil & Gas project, or it is a Petro-Chemical project. It’s hard to have a col-lective name for all these project types, the best way forward is to refer to them all as Process – Manu-facturing type projects. Some of the most prominent sectors include (1) Petroleum / Gas Production /

Refineries (2) Pharmaceutical / Fine Chemicals / Consumer Products (3) Power Generation (Oil, Gas and Nuclear facilities) (4) Food Processing (Dairies & Bakeries) Beverage (Soft drinks and beer produc-tion) (5) Manufacturing (i.e. paint, toner, plastics production, glass, paper manufacturing, detergents, cement, man-made fibers and various automo-tive components) (6) R&D Facilities – Pilot Plants – Animal Testing / Research Facilities etc. (7) Steel Mills & Rolling Mills and (8) Automobile Produc-tion – this one could fall into # 5 above. There are most probably others that have not been mentioned.

These “Process / Chemical Industry” facilities – production plants utilize equipment (many times referred to as Major Equipment (M.E.)) that carries out the following actions - heating, cooling, grind-ing, drying, mixing, blending, hammering, pressing, compacting, conveying, transporting / moving and pumping - conveying powders, fluids and gases. Typically a fair amount of rotating equipment i.e. pumps and agitators and mixers are required in these

Major Equipment INPTYPICAL DELIVERY TIMES

MAJOR EQUIPMENT CATEGORY INQUIRE / NEGOTIATE & PURCHASE (INP) IN WEEKS AND DELIVERY TO SITE:

Boilers 250 HP and above 20 - 36Columns / Towers with trays 20 - 40Compressors Reciprocating 20 - 40Ditto Centrifugal 24 - 40Control valves 10 - 16DCS – i.e. TDC 3000 16 - 36Electric Motors (250 – 500 HP) 16 - 26Furnace (cabin type) 20 - 35Hammer mill 26 - 44Heat Exchangers 16 - 32Instrumentation devices 8 - 16Pumps 200 GPM and above 8 - 20Reactors – high pressure 25 - 45Turbines 25 - 36Tanks (Floating Head) 12 - 24Transformers / Sub stations 12 - 36Spheres 12 - 36Vessels (Heavy wall) 20 - 40

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Typically major equipment multipliers (to arrive at a total installed cost of the proposed facility, this multiplier would cover, materials, labor, in directs, detailed design, construction management) for pow-er, steel, pharmaceutical, chemical facilities (liquids, solids and a hybrid of both) type facilities fall into one of the following categories / major equipment (M.E.) multipliers.

Low Range: Typically is an open structure, has a high level of carbon steel piping, an unsophisti-cated instrumentation / control system, open shop construction workforce and a normal construction schedule. Solids has a limited amount of piping, the major equipment is usually material handling, crush-ers and grinders.

Median Range: Typically is a combination of enclosed / open structure, has an assortment of carbon steel and stainless steel piping (60% C.S. and the balance S.S. or better), a reasonably sophisti-cated instrumentation / control system, open shop or

a combination of union construction workforce and a normal construction schedule.

High Range: Characteristically the major equip-ment is housed in an enclosed structure / building, has an assortment of carbon steel and a high content of stainless steel piping (30% C.S. and the balance 70% S.S. or better), has a state of the art instrumen-tation / control system – TDC 3000 or equal, open shop or a combination of union construction work-force and a fast track construction schedule, is a hazardous process, is based on new technology.

Other considerations: (refer to other benchmarks on page 28 - 33)

(D) Front End – Semi-Detailed / Square Foot / Conceptual Estimates (+/- 25% Accuracy)

Front end – semi detailed, conceptual, capital cost estimates are usually compiled in the more advanced stage of the front end / conceptual defini-tion / design development effort, or early on in the

Module Cost Per Ton 2016 COST BASIS

TONS COST PER TON LOW $ COST / TON HIGH $ COST / TON

60 12,000 10,200 14,40080 11,500 9,775 13,800100 11,000 9,350 13,200NOTE: The above values include for major equipment items such as pumps, drums and tanks. Values need to be adjusted if sophisti-cated equipment such as compressors and the like are part of the module.

Major Equipment Multipliers (M.E.) FOR POWER, STEEL, PHARMACEUTICAL & CHEMICAL FACILITIES

TYPE OF PLANT LOW RANGE M.E. MULTIPLIER MEDIAN M.E. MULTIPLIER HIGH RANGE M.E. MULTIPLIER

Chemical - Liquids 3.75 5.00 6.25Chemical - Liquids / Solids (Hybrid) 3.25 4.50 5.75Chemical - Solids 2.50 3.75 5.25Ethanol Facility (corn / sugar cane) 2.75 3.25 3.75Pharmaceutical 1.75 2.50 4.50Power 2.00 3.30 4.00Steel 1.50 2.00 2.50

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Table 18USA MODULE BENCHMARKS 2015 COST BASIS: 20 TON AND 40 TON GENERIC PRICING

20 Ton Module Cost Model DELIVERED TO SITE CONTRACTORS CRANE HOOK, SITE CONTRACTOR WILL SET IN PLACE WITH THEIR OWN HEAVY LIFT CRANECOST RANGE $11,020 TO $15,560 PER TON

DESCRIPTION MATERIAL LABOR ENGINEERING / OTHER $ TOTAL

Purchase Steel Materials 46,004 46,004 Fabrication of Steel Frame & Grating 19,377 19,377 Purchase of Major Equipment, Purchase 38,967 38,967 cost is included, would be free issued to module fabricator to install in module by owner or EPC Install Major Equipment into module 8,324 8,324 Piping Material (Pipe, fittings & valves) 8,225 8,225 Pipe Fabrication 26,487 26,487 Heat treat & NDT of pipe systems 745 4,182 4,927 Paint for steel material 6,506 6,506 Labor to paint steel material 9,655 9,655 Paint for pipe material 1,324 1,324 Labor to paint pipe material 879 879 Insulation material 6,413 6,413 Insulation labor 4,600 4,600 Electrical & Instr materials 7,639 7,639 Electrical & Instr labor 6,413 6,413 S/T 115,824 79,918 195,742 Module Shop Detailed Design, 19,860PM & Purchasing and Site Visits Lift module onto truck 3,353 Transport to jobsite assume 8,556250 mile one way trip S/T 31,769 31,769Total cost of Material, Free-Issued 227,511(4 Pumps, 4 Other) Major Equipment, Fabrication & Detailed Design Module Fabricators G&A ,O-H & Profit 14% 31,852 TOTAL COST OF 20 TON MODULE $259,362 COST PER TON $12,968 Labor Rate $34.85 = 2,109 Shop hours (open shop) Engineering Rate $94.45 = 210 hours225 to 400 M-Hs to fabricate EPC basic / detailed engineering is excluded from above costs1 C.F. of module weighs 4.50-6.50 pounds1 S.F. footprint of module weighs 130-175 pounds

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New Industrial / Commercial Sq. Ft. – M2 Building Costs 2016 COST BASIS: INCLUDE ALL MATERIAL, LABOR, PLANT, GENERAL CONDITIONS, PRELIMINARIES, OVERHEAD, AND PROFIT.

FACILITY / BUILDING COSTS COST COST SF $ SF $ AVERAGE AVERAGE MODEL SF MODEL M2 LOW HIGH COST $ SF $ M2 COST

300 mm wafer manufacturing facility 264,500 24,582 2,472 3,246 2,859 30,765 Advanced Chemical Weapons Laboratory 114,000 10,595 490 618 554 5,964 Agricultural R&D Center 72,600 6,747 266 337 301 3,242 Animal Research / Testing Facility 2 Floors 96,000 8,922 469 597 533 5,737 Apartments 1 – 3 Floors (Spec A) 30,000 2,788 148 186 167 1,795 Apartments 1 – 3 Floors (Spec B) 30,000 2,788 137 170 153 1,651 Apartments 3 – 5 Floors (Spec C) 85,000 7,900 140 176 158 1,699 Apartments 3 – 5 Floors (Spec A) 85,000 7,900 143 181 162 1,747 Apartments 3 – 5 Floors (Spec D) 85,000 7,900 141 178 160 1,717 Apartments 5 – 25 Floors (Spec D) 335,000 31,134 159 199 179 1,926 Apartments 5 – 25 Floors (Spec A) 335,000 31,134 142 180 161 1,735 API – Pharmaceutical Facility 133,000 12,361 470 594 532 5,725 Auditorium 2 Story (Spec A) 45,700 4,247 152 193 172 1,854 Auditorium 2 Story (Spec D) 45,700 4,247 150 189 170 1,825 Auditorium 2 Story (Spec C) 45,700 4,247 145 184 165 1,771 Automobile Production Facility 585,000 54,368 120 151 136 1,460 Bakery 615,000 57,156 120 152 136 1,466 Bank 1 Story (Spec A) 9,200 855 187 236 212 2,279 Bank 1 Story (Spec B) 9,200 855 193 243 218 2,345 Bank 1 Story (Spec C) 9,200 855 187 239 213 2,291 Biological Manufacturing 340,000 31,599 1,937 2,378 2,157 23,214 Bio – Medical / R&D Center 3 Floors 92,500 8,597 427 539 483 5,198 Bleach Manufacturing Facility 388,000 36,059 134 169 152 1,633 Brewery 181,000 16,822 120 151 136 1,460 Cable TV Facility 12,700 1,180 120 152 136 1,466 Chemical Process Plants 3 Floors 56,000 5,204 104 131 117 1,262 Computer / Telecommunications Center 27,700 2,574 137 171 154 1,657 2 Floors cGMP ISO 6 – 8 117,500 10,920 1,004 1,276 1,140 12,264 cGMP ISO 7 – 8 88,600 8,234 837 1,056 947 10,187 Dairy / Cheese / Butter Production 74,000 6,877 131 165 148 1,591 Data Processing Office 11,000 1,022 158 199 178 1,920 Fiber Production Facility 88,000 8,178 136 170 153 1,645 Food Production Facility 2 Floors 73,000 6,784 133 168 151 1,621 GMP Production Facility 80% ISO 5,6,7 & 8 137,000 12,732 998 1,263 1,131 12,168 GMP Production Facility 60% ISO 5,6,7 & 8 137,000 12,732 943 1,192 1,067 11,486 GMP Production Facility 60% ISO 6,7 & 8 137,000 12,732 728 918 823 8,859 GMP Production Facility 50% ISO 7 & 8 137,000 12,732 593 744 668 7,190 GMP Production Unclassified 2 Floors 137,000 12,732 208 262 235 2,530 Heavy Manufacturing Facility 40,000 3,717 117 147 132 1,418 Hospital 2 - 4 Story (Spec A) 166,700 15,493 239 301 270 2,907 Hospital 2 - 4 Story (Spec D) 166,700 15,493 245 309 277 2,979 Hospital 2 - 4 Story (Spec H) 166,700 15,493 249 315 282 3,033

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LOCATION LOCATION FACTORWISCONSIN Green Bay .93Madison .92Milwaukee .95WYOMING Casper .86Cheyenne .87Gillett .86

The above USA city indexes / location factors are intended for calibrating building / facility costs. The base / standard benchmark city is Washington, D.C; i.e. which is fixed at a value of 1.00. Less built up areas close to major cities, i.e. suburbs outside major cities generally have a lower cost basis than major city center costs by 1 – 5 basis points. Re-mote locations, such as, Anchorage or Fairbanks in Alaska, will generally have, to a greater degree, higher prices compared to lower 48 states compara-ble cities, due to increases in logistics and increased shipping / transportation costs of materials and equipment to Alaska, also keep in mind that weather conditions in Alaska can be significantly different to lower the 48 states.

GLOBAL LOCATION FACTORS, CONSTRUCTION PRODUCTIVITY AND ENGINEERING (DESIGN & DRAFTING) PRODUCTIVITY V’S USA STAN-DARDS (Washington D.C. – 30 - 40 mile radius = 1.00)

The factors indicated below would be appropri-ate for ($5 - $100+ million) hi-tech / manufactur-ing / pharmaceutical type facility. (* Applicable if the above value is for a “first of its kind” building / facility (engineering / construction endeavor will ini-tially experience a steep learning curve as the staff navigates it way through local import regulations and various permitting issues) if company has built or has operating facilities already in country reduce location factor value by 0.04 – 0.08 points):

Location Factor A: is applicable to Refiner-ies, Chemical Plants, Power Stations, Hi-Tech Type Facilities (Pharmaceutical / Chip Manufacturing Facilities), these facilities typically contain sophis-ticated manufacturing / production equipment, these facilities more often than not require complex piping / air conditioning systems, more often than not these facilities are highly automated systems, many times these complex equipment items / materials need to be imported from North America, Europe or Japan / South Korea into the host country.

Location Factor B: this factor is germane to less sophisticated projects such as schools, hospi-tals, office buildings, hotels, shopping malls, roads, bridges, airports, marine works (jetties / piers) and warehouses.

Global Location FactorsCONSTRUCTION PRODUCTIVITY & ENGINEERING PRODUCTIVITY V’S USA STANDARDS

COUNTRY CITY LOCATION LOCATION CONSTRUCTION ENG / DESIGN FACTOR * A FACTOR * B PRODUCTIVITY PRODUCTIVITY Argentina 0.94 0.90 1.40 -1.55 1.20 – 1.30Australia Melbourne 1.00 0.97 1.10 - 1.20 1.10 Perth 1.00 0.97 1.10 - 1.20 1.10 Sydney 1.01 0.99 1.10 – 1.20 1.10Austria 1.07 1.01 1.10 – 1.15 1.07Belgium 1.05 1.03 1.10 – 1.15 1.05

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O.O.M. Packaged Water Chiller / Recip. CompressorC / W CONDENSER / H.E. / CHILLER / PIPING & LOCAL CONTROLS

CENTRIFUGAL COST PER TON ABSORPTION COST PER TON

TONS SYSTEM SYSTEM100 $37,482 $375 $41,516 $415 200 $42,979 $215 $72,431 $362 300 $61,827 $206 $106,730 $356 400 $74,940 $187 $133,104 $333 500 $88,880 $178 $160,217 $320

Low Pressure Scotch BoilerFIRED BY NATURAL GAS (MATERIAL & LABOR)

POUNDS OF STEAM / HOUR COST (M&L) COST PER POUND

5,000 $76,132 $15.23 7,500 $103,826 $13.84 10,000 $130,147 $13.01

his section in many ways will assist in condens-ing the cost estimators’ estimating efforts and will optimize the time needed to compile a front end estimate. The end result should be a more consistent and accurate front end estimates. Semi-Detailed estimating is a pow-erful estimating tool. It is basically a hybrid of two estimating methods (1) Conceptual Estimating and (2) Detailed Estimating, an estimator / engineer familiar with this method can save a great amount of time utilizing this method, it can be used to generate “new” estimates with an accuracy of +/- 15% it can also be used to check conceptual and detailed estimates. The activity of Conceptual / Front End cost estimating is a first-rate tool for forecast-ing the cost of a CAPEX project (s). As we all know, many times the scope and timing of capital proj-ects will typically be subject to numerous changes during the projects’ life cycle (how much would it cost if we produced 10, 000 gallons per day, what if we produced 14,000 gallons a day, what would the

plant cost if we built it in Mexico, would we save time and money if we used modules in the construct effort, should we “stick” build it, lots of questions, coming at the estimator, of course all these “factors” will impact the cost of the plant). This resource / tool

can be used to explain or support the decisions made and is many times the genesis of the project(s) scope and how the scope was developed and how the final esti-mated cost was arrived at (how it was compiled and possibly modi-fied along the early stages of the projects life cycle). An estimator

or engineer who is skilled in producing front end & semi-detailed estimates is a valuable resource to his or her employer.

The (CAPEX) capital cost for the Engineering, Procurement and Construction (EPC) project(s) comprises all of the activities and expenditures asso-ciated with a specific building, plant or facility; the major activities will comprise of:

• Front End Economic studies • The Detailed Design Effort

There are more than 200 diverse piping related materials specified by the American Society for Test-ing Materials

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iv about the firm acknowledgements introduction to …€¦ · basic man-hour benchmarking data...

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