2017
Front-End / Conceptual
Estimating Yearbook
16 TH ED ITIO N
2017 Front-End / Conceptual Estimating Yearbook
16TH ANNUAL EDITION
• Front End / Conceptual CAPEX Estimating Issues
• Capital Cost Estimating Fundamentals
• Capital Cost Estimating Methods
• Benchmarking Data
• Exponent / Cost - Capacity Equations
• Ratio / Percentage Factors and M.E. Multipliers
• Square Foot / M2 Unit Prices (60 + Building - Facility Types)
• Unit Prices (Labor & Materials) 1,000 + cost line items
• Location Factors, Engineering / CM Fee’s, Labor Rates
• Process Equipment Prices (8 5+ pages)
• Front End / Semi-Detailed Estimating Systems
Compass International Consultants Inc.
Morrisville, Pennsylvania, USA
CONTENTS
I N T E R N AT I O N A L I N C .
IV
ABOUT THE FIRM
V
ACKNOWLEDGEMENTS
A1
01
INTRODUCTION TO CAPITAL COST ESTIMATING:
The General Forecast for 2017 and beyond
The Project Control Cycle
Cost breakdown of a typical Chemical process facility
The CAPEX Estimating process
Presenting the estimate to Senior Management
Optimizing the estimating effort
A2
27
CAPITAL COST ESTIMATING FUNDAMENTALS:
Questions that need to be asked
The Estimating four step process
Capital Cost Estimating Terms
Estimating Types / Accuracy
Engineering Deliverables & Budget:
Pricing to compile various estimates
Resolution allowance / Undefined Scope Allowance
Developing an Estimating Plan
A3
55
CAPITAL 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 Benchmarks
Summarizing the CAPEX Estimate:
Copyright © 2017 Compass International, Inc.
II. | CONTENTS
A4
107
BASIC MAN-HOUR BENCHMARKING DATA & REFERENCE TABLES
A5
159
SITE SELECTION / COST DATA SOURCES / ESTIMATING CHECKLIST
A6
179
VALUE ENGINEERING / CHANGE ORDERS / CLAIMS / CONTINGENCY
B1
209
SCALE OF OPERATIONS / EXPONENTS (180 + PLANTS / M.E. ITEMS)
B2
213
ADDITIONAL ESTIMATING FACTORS COST MODELS (24 + EXAMPLES)
B3
255
SQUARE FOOT / M2 ESTIMATING DATA (100 + BUILDINGS / FACILITIES)
REVAMP / REHABILITATION COST VALUES
B4
265
UNIT PRICE DATA (1,000 + UNIT COST ITEMS)
Copyright © 2017 Compass International, Inc.
CONTENTS | III.
B5
297
GENERAL COST ESTIMATING DATA
Location 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:
C1
317
MAJOR EQUIPMENT / PROCESS EQUIPMENT COST & LABOR MODELS
(125 # MAJOR EQUIPMENT ITEMS)
D1
379
FRONT END / SEMI-DETAILED ESTIMATING METHODS
Front 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:
Copyright © 2017 Compass International, Inc.
ABOUT THE FIRM
Compass International Consultants Inc. was founded in 1992 (C.I.C.I) and is a provider of estimating services, international construction cost data, location factors, training seminars, value engineering, estimating
support and conceptual construction economic cost data. Compass International is backed by an excellent
staff of experienced Cost Engineers, Cost Estimators, Civil / Mechanical / Chemical Engineers and Economists.
Web site:
http://www.compassinternational.net
Mailing Address:
Compass International
P.O. Box 1295
Morrisville, PA. 19067
USA
Telephone
(215) 504-9777
E Mail:
sales@compassinternational.net
Copyright © 2017 Compass International, Inc.
ACKNOWLEDGEMENTS
This data source is the result of more than 20+ years research and data collection. The information contained
in this data source was collected from more than 60 + completed CAPEX projects (Refinery, Chemical
and Manufacturing facilities) located in North America, the UK, Mainland Europe, Asia, Africa and South
America valued between $0.30 million to over $3 billion. The data is for the most part based on Compass
International’s cost library, augmented with latest cost and labor data from International Development
Banks and Agencies, EU Commission Reports, various Country National Libraries and Bibliotheques from
around the world, various Government Information Agencies, Global Quasi-Governance Organizations, an
assortment of Government Trade Promotion Departments / Labor Departments, numerous trade magazines,
hourly and annual salary rates from US / Overseas labor organizations and newspaper articles, professional
society articles, an assortment of technical magazine articles, various international almanacs and directories, reference books, internet data and various cost – construction proposals and bids from contractors and
engineering firms together with related journals, the cost models and tables have also been augmented by a
number of personal estimating libraries (that in some cases are very recent), this information has been audited, expanded upon, modified and calibrated and refined to today’s construction methods and installation
applications. We would like to express our sincere thanks to the many engineers, contractors, vendors and
other individuals (friends and colleagues) too many to mention who have given freely of their advice, input,
time and knowledge so that this data source could be produced for the benefit of engineering and construction professionals that have an interest in this subject matter. We welcome any comments or data that could
be used in future updates to make this database more complete and accurate.
Copyright © 2003 – 2017: By Compass International. All rights reserved. This information may not be
reproduced or transmitted in any, electronic or mechanical means, including photocopying, faxing, scanning, uploading, copying and pasting, recording, or by any information storage or retrieval system without
permission of the publisher; it is illegal and punishable by law. Compass International makes no warranty
or guarantee as to the accuracy and completeness of the estimating data contained in this publication and
assumes no liability for damages that are incurred by utilizing the data contained within this publication.
The data is conceptual and should be considered +/- 15% accurate, the cost and man-hour data contained
in this database should only be used as an early front end budgeting tool or as a check and audit against received bids or proposals. The publisher recommends obtaining a number of lump sum quotes and bids that
are supported by a scope of work statement and a timeline of when the work would be completed, reliance
on the data contained in this document could result in losing bids or worse still losing money.
Compass International Consultants Inc.
Morrisville, Pennsylvania, USA
Copyright © 2017 Compass International, Inc.
SECTION A1
Introduction to
CAPEX Estimating
AS IT RELATES TO FRONT END / CONCEPTUAL - CAPEX ESTIMATING
Introduction to Front End / Conceptual Estimating: “A Front End / Conceptual estimate is an estimation of the cost of a proposed CAPEX project based on initial conceptual engineering and design
data, even though the specific details are not clearly revealed or specified at this early stage of the
proposed CAPEX project. An all-inclusive value is required to determine the viability of the proposed undertaking.”
T
he completion of a front-end estimate /
conceptual estimate is usually the first
step in the CAPEX Budgeting / Estimating process. This publication has been
compiled to assist all construction professionals with
an annual reference guide that will help them with
“quick” reasonably accurate construction prices for
work associated with chemical plants, refineries,
manufacturing facilities and other related industrial
plants. A vast number of challenges and hurdles remain in place for “Process / Manufacturing / Chemical” companies (and their decisions to build new /
revamped facilities): as we look into the future as of
late 2016, the issues to be faced in 2017 and beyond
include numerous issues (that have financial, construction and operating cost consequences) that will
need to be gauged and planned for, if the decision is
made to proceed with the EPC effort. The Process /
Manufacturing / Chemical industry as the engineering / construction professionals knew it in the early
years of the last decade will have changed dramatically in the next two or three decades. Emerging
economies such as China, India, Brazil and South
Korea to name but a few will continue to forge
ahead in developing their R & D and manufacturing
bases, there is an increasing anxiety in some of the
more developed nations as to how this will all play
out and what impact this manufacturing / economic
“sea change” will have on the future employment
opportunities, facility costs and engineering / construction activities in Western Europe, North America and around the world. Hopefully, this publication and its’ future updates will assist the reader in
navigating and understanding the dynamics of this
situation, and the associated engineering / construction related costs specific to Process / Manufacturing / Chemical facilities.down all other legislation
topics.
THE GENERAL FORECAST FOR 2017 AND
BEYOND
(Specific to the Process / Manufacturing / Chemical
Industry and to the construction of these facilities).
• The Global Enginnering, Procurement and
Construction (EPC) market has had a seven year
roller coaster ride. Asia, Africa and South America
have been performing moderately well in this period, while Europe and North America have been just
getting by. In spite of this and for the first time since
2008, the Global EPC market is seeing green shoots
/ growth again. This would indicate that the financial, credit and banking storm is just about over; the
Global EPC market is slowly but surely on the road
to recovery. A great deal of the disbelief and dread
was the immediate consequence of the Brexit vote.
The financial markets, which were for the most part
Copyright © 2017 Compass International, Inc.
02. | SECTION A1
really unnerved, stocks and the pound sterling were
hammered for a day or two. Nevertheless the pound
sterling and the UK / USA stock markets to some
extent recovered in three to four days. UK construction sectors that are expected to suffer the most are
the housing market and major infrastructure projects.
The pound sterling has dropped 15% against the US
dollar. The jury is still out on “Brexit” - some experts believe it will positively impact the UK construction industry, while there is another group that
forecasts the opposite. The standoff between Russia
and the Ukraine continues to put a constraint on
trade and construction between the West and Russia.
• US voters on November 8th voted and elected
Donald Trump as the next President of the USA.
President Trump should be “a shot in the arm” for
the US Energy and Construction Industries for the
next four years; this is the takeaway from his many
campaign speeches.
• The recent recovery in the US construction industry is gaining strength; hopefully this will continue
in 2017 and beyond.
• China is now the world’s largest infrastructure
market and now boasts the second largest economy.
• The US auto industry is on the road to recovery,
GM recently had a very successful stock offering and
Ford is set to make decent profit margins in 2017, this
improvement could translate to future construction
work in the USA.
• Japan is forecast to experience signficant increases in 2017 construction spending in the next
three to five years, spurred on by new Prime Minster
Abe and his pro-growth platform.
• Uncertainties remain as oil and raw material
prices increase relentlessly and then decrease just as
dramatically i.e. copper, steel, glass and lumber. It is
difficult to forecast these costs as we move into 2017.
Will oil head back up to $140 again, or will head
south, below $30 a barrel? Saudi Arabia has “off the
record” stated that it would like to see oil in the $80 $90 a barrel range.
• Oil prices are now below $40 a barrel for the
first time since 2009; prices are being pushed down
Copyright © 2017 Compass International, Inc.
by (1) Strong US and Middle East production, (2) the
Chinese economic slowdown and (3) the tentative
Iranian nuclear deal. OPEC’s goal is to put the U.S.
shale oil industry or Canada’s oil sands out of business. It’s not happening right now, but stay tuned to
see just how low oil prices can go.
• USA labor costs are increasing year to year by
2.1% to 2.3%. There is projected to be a shortage of
skilled labor in the Gulf Coast States (Texas, Lousiana
and Mississippi) in the First Quarter of 2017; labor
rates will increase at a higher rate in these states.
• Latin America is poised to grow more than the
USA and Western Europe in 2017, there will be a lot
of construction related opportunities in Brazil, Colombia, Uruguay, Peru, Chile and Argentina, as the
expanding and prosperous middle class call for better
housing, schools, infrastructure and services.
• China is highly reliant on foreign trade (a lot of
goods are stacked up in Chinese ports, waiting for
customers). With the “Euro” economies struggling,
look for China to experience a significant construction
slowdown in 2017 of between 10% and 15% from
previous years.
• China continues to relentlessly seek out production agreements in the Angolan, Ghanaian and
Nigerian oil industries, together with various mining
concessions around the globe. China is actively pursuing mineral concessions in Guinea which has recently
undergone a military coup d’état.
• China is being subjected to significant wage demands - anywhere between 10% and 15% per annum.
Will these rising wages relegate China as the worlds
manufacturing # 1 ranking? Will Vietnam, Indonesia
and India move up the table and become the most
sought after location in 2017?
• Prices for diesel fuel, structural steel, cement,
paint, plastic products, plywood / lumber and gypsum-wallboard products are forecast to increase by
2% - 3% in 2017.
• All over North Africa and the Middle East,
popular unrest has been displacing long running dictatorships. For decades, the citizens of Egypt, Tunisia, Algeria, Libya, Syria and Yemen have suffered
SECTION A1 | 03.
in silence. All these recent events will slow down
construction work in the short term however in three
to five years this could be the new “hot” construction
market.
• The continuous unrest in Syria, Iraq, Israel and
Palestine will continue to subdue the construction
markets in and around these countries.
• The waning of the European Union (EU), which
now faces uncertainty after the Brexit vote. It survived the Greek financial crisis back in 2013; the EU
is not likely to collapse in the next 12 to 24 months.
Nevertheless, the internal tensions are increasing with
some countries demanding a referendum on whether
to stay or leave. What will the EU look like in five
years?
• China’s GDP grew at its slowest quarterly pace
at the end of 2016, at a rate of 6.5%. The GDP in
2017 is forecast to be in the 6.1% to 6.3% range.
Industry analysts continue to have misgivings on
the truthfulness of China’s official figures. Some of
these industry analysts are concerned that the Chinese
economy is in worse shape than is being reported.
• In the USA and Canada the drop in bulk materials prices fell as much as 5% from the previous
year (cement, rebar, ready mixed concrete, structural
steel, timber, wallboard, paint and masonry products).
This has worked its way through the system and now
in some regions and cities is starting to slowly rise
again. In the USA and Canada with less engineering
and construction work available, profit margins have
declined significantly for most General Contractors
and EPCM related firm. As we move into 2017, most
industry sources have indicated that work levels are
down by as much as 5% from two or three years back.
• Will interest / activity in Tidal / Hydro, Fuel
Cell Technology, Nuclear, Geothermal, Solar (Photovoltaic), Wind Power continue in 2017? Will the
US energy crisis be put on hold with the recent major
shale gas finds in Pennsylvania and New York? It is
forecast that these huge gas discoveries could satisfy
the USA’s gas needs for the next twenty five years.
Will there be a mini boom in pipeline gas gathering
facilities in this region in the next five years?
• In the USA an energy transformation is on the
cards for natural gas from shale gas deposits in Pennsylvania, North Dakota, Ohio, West Virginia and New
York State. Look for numerous Gas to Liquids (GTL)
and pipeline engineering / construction projects in
2017 and 2018 and beyond.
• In USA, Canada and Western Europe oil refiners
face an unsure future with the global recession. This
together with declining product demand together with
low profit margins, many refiners are revisiting and
putting on “hold” their short term (1-3 years) CAPEX
plans.
• City growth or urban sprawl is the #1 factor that
will drive global construction activity and costs, more
than one billion people will move from rural areas to
major cities in the next decade. These “growth” cities
are in China, India, Pakistan, Indonesia, Philippines,
Nigeria, Ghana, Brazil, South Africa, and other third
world countries.
• In the USA, gasoline (petrol) needs are forecast
to fall to 5 million barrels per day in 2025, down by
nearly 40% - 50% from 2012 levels. Various studies
forecast that by 2025, the worldwide average miles
per gallon (MPG) of new passenger cars / small trucks
will have improved by as much as 40% - 50%. The
average of 2011 is 28 MPG; in 2025 this is expected
to rise to 45 MPG. Continuous economic development in China and India in the next decade or two is
expected to take up the USA gasoline reduction.
• USA Bulk Materials (Concrete, Stone, Rebar,
Cement and Bricks) costs are increasing year to year
by 1.9% to 2.5%. Plywood and framing timber costs
are increasing year to year by 3% to 6%. due to the
resurgence in the housing market.
• Doubts remain as oil and raw material prices increase relentlessly and then decrease just as dramatically i.e. copper, steel, glass and lumber. It is difficult
to forecast these costs as we move into 2017.
• Offsite modules and pre-assemblies will continue to have a dynamic role in optimizing the contstruction costs and field productivity of the all-inclusive
Engineering, Procurement, Construction and OPEX
life cycle, now and in the future.
Copyright © 2017 Compass International, Inc.
04. | SECTION A1
• The growth in infrastructure and general construction projects around the globe is producing
strong demand for qualified engineering and construction professional and skilled workers. This situation
plus the spike in escalation is causing significant
shortages in the global construction market. This
publication has been produced to assist various construction professionals with a “road map” to navigate
through these complex procurement issues.
• The Zika virus is spreading in Latin / Central
America and in southern Florida. More than two
billion individuals in the world live in areas that are
ecologically suitable for the spread of the Zika virus.
• Globalization has had an awe-inspiring impact
on the automotive, manufacturing and the pharmaceutical industries, these industries are in transition.
In the next 5 – 10 years there will be a significant
consolidation. Instead of there being ten major
global players in each industry; there will be five or
less. These industries, in many ways, are following
the same flight path / happenings of the US airline
industry. Remember Pan Am, TWA, and Eastern
Airlines in the 1990’s – history has a habit of repeating itself.
• Major geopolitical risks the world is facing in
2017 and beyond include:
1. The world economy - which way will it head,
up or down?
2. Iran producing an atomic bomb and the ramifications of this.
3. The continuing war against Al Queda and
ISIS in Pakistan, Afghanistan and Syria.
Additional topics and questions that could impact the Process / Manufacturing / Chemical companies in 2017 ̵̶ and consequently the engineering /
construction marketplace, include:
• Italy, Greece and Turkey are at this time trying to deal with a huge flood of migrants from other
parts of the world. This will lead to a major crisis:
where will these migrants live and work, the cost of
this problem will be huge for these countries.
• Political instability in the Middle East (Egypt,
Libya, Syria, Iran and Israel) could cause a major
Copyright © 2017 Compass International, Inc.
downturn in the global construction market.
• Worldwide population growth, especially in
Asia and South America: We will most likely see 8
billion people on the planet by 2017.
• China and India are seeking long term toll
manufacturing / supply contracts with countries such
as Brazil, Venezuela, Nigeria, Angola, Guinea, Algeria, Saudi Arabia, Iran, Qatar and the UAE. These
countries in the past dealt exclusively with North
American and Euro zone oil / chemical / manufacturing companies.
• Overall worldwide construction in 2017 is projected to grow by 2% to 4% over 2016.
• With the Euro lurching from one crisis to the
next, the 18 euro-zone countries are facing some difficult decisions. Will Greece, Ireland, Portugal and
now Spain and Italy pull out of the Euro? Will this
put their economies and construction markets into a
tailspin in 2017 / 2018?
• What will 2017 bring for the war between the
world and the Jihadist (ISIS and Al Qaeda) movement? The only answer is, more of the same.
• The rapid pace of technology advancements:
(wireless technology / faster chips / communications
etc.).
• The chemical / manufacturing industry will
continue to focus on reducing production / manufacturing costs.
• The drive by big North American, Western
European and Japanese Automobile / Chemical /
Consumer Product companies to establish a manufacturing presence in China and India, this trend
should continue for another five years at least.
• The globalization and integration of the world
economy: with countries such as Brazil, China and
India becoming “global” players in the next five
years.
• Increases in military hardware and manpower
expenditures by China and Russia: and its future
worldwide consequences.
• The ability for Automobile / Capital goods
manufacturers to develop and bring to market their
products more rapidly, the use of 3D / digital design
SECTION A1 | 05.
to ensure that piping / utility collisions are avoided
expenditures related to “Process / Manufacturing /
in the design and construction process, thus miniChemical” facilities involves the collection, review
mizing re-work and generally speeding up the design and condensing a wide assortment of information
process.
and data. Some of the more significant items and
To see how things have changed in this induswork tasks are as follows: (1) Owner front-end
try in the last five years is the fact that China will
costs including internal ROI studies and marketing
have a construction market as large as or bigger
analysis reviews, Research and Development costs.
than the USA in the next decade or two. The lion’s
(2) Property or land purchase or leasing / lease back
share of future CAPEX expenditures appear to be
arrangements, including perhaps third party tolling
headed overseas, it would appear that the days of
arrangements (including any site improvements and
big corporate engineering / estimating departments
modifications). (3) Production of Front End Engiwould be over in North America. This situation was neering – Architectural Design Deliverables - Any
one the main drivers for producing this database,
front-end architectural or engineering economic the publisher of this database determined that there
feasibility studies completed internally or by a third
would be a need for this “type of information.” The
party i.e. A / E or EPC firm. (4) Production of the
writer(s) have always wanted an
“Issued for Construction” - The
“estimating note book” that they
Architectural - Engineering (A /
The essential principles
could carry around with them to
E) (EPC) design effort (producof
Project
Control
are
to
produce or audit / check CAPEX
tion of specifications and design
provide the best techniestimates – hence the creation of
drawings and project design decal
and
business
solution
this book and its companion publiliverables) including reproduction
to
the
business
unit
concations.
expenses and associated travel
templating a new facility
The (CAPEX) capital cost for
costs. (5) Project Management
expansion(s)
or
upgrade(s).
the Engineering, Procurement and
activities associated with directConstruction project (s) comprises
ing the CAPEX project includes
of all the expenditures associowners and contractors staff. (6)
ated with the primary creation of the specific plant
Procurement activities – the buy-out of the work
or facility: this usually embraces the following
(scope), i.e. purchase orders and construction condescribed direct and indirect construction and engitracts. (7) The actual field construction effort, includneering related elements: “Project Control” (Capital ing site purchasing together with major equipment
Cost Estimating, Planning and Cost Engineering) is
(which could be bought out in the home office, bulk
understanding where the project is in relation to it’s
and engineered materials, i.e. concrete, stone and
planned goals. It is being aware of where the project lumber). (8) Field indirect support including field suis headed and communicating these findings with
pervision of the construction scope, trailers, storage
the appropriate project stakeholder so that construc- sheds / small tools and consumables. (9) Constructive mid course solutions can be implemented to
tion equipment requirements i.e. cranes, welding
maintain or improve the current budget and schedequipment and the subsequent maintenance of this
ule. This publication is focused on the activity of
equipment, and Field establishment i.e. (Division 1
Conceptual Cost Estimating – CAPEX estimating.
or General Conditions / Preliminaries). (10) ConA flow diagram is depicted on the following pages
struction Management of the project, including any
indicating how conceptual cost estimating “fits”
third party NDT inspection / testing requirements,
into the overall Project Management / Control
and, (11) Other items could include contractors overcycle. CAPEX estimating specific to future capital
head, fees, freight, bonding; insurance (BAR and
Copyright © 2017 Compass International, Inc.
06. | ISECTION A1
workers compensation) and local state taxes / B&O
and an initial path forward document) - information
taxes, (VAT / GST on overseas applications), tariffs
specific to cost, schedule, manpower requirements
and duties, specific to the project. (12) There are a
for the usual activities associated with a Engineer“bunch” of related matters that may need to be coning, Procurement and Construction (EPC) project,
sidered including: expense items (relocation), demo- the tasks that will derive benefit from this “first”
lition work, owner provided equipment / materials
estimate are:
– free issued to the contractor, furniture and fixtures,
• The “initial” capital cost of completing the
spare parts, initial chemicals and vendor assistance,
EPC effort.
start-up expenses, commissioning and possible vali• Detailed design (The approximate Engineering
dation activities.
/ Design staffing needs).
The extent of each of the above cost elements. of
• Procurement. (The number of Purchase orders
course, is based on the type of facility (i.e. unique –
and construction contacts required).
first of it’s type) needing new utilities, or a continu• Field Labor (The peak manpower needs) /
ing ongoing production facility, that
Construction Management. (The
has a history and has an existing
number of individuals needed to
utility infrastructure in place, magsupervise and ensure the project
The decision on where to lonitude or scale of operation – small
is completed on time and in a
cate a new Chemical Facility
operating unit i.e. 2 or 3 operators
safe manner).
/ Manufacturing location(s)
or a toll manufacturing plant or a
• The major milestones asis many times a tough call,
large operation with 100’s of plant
sociated
with the CAPEX project
an easier said than done unoperators, it’s operation – 24 / 7
i.e. start and finish date.
dertaking, it needs the input
/ 365 days or 8:00 to 5:00, plant
The decision on where to
from corporate engineering,
control philosophy and the actual
locate
a new Chemical Facilcorporate finance personnel
location of the CAPEX project(s),
ity / Manufacturing location(s)
and the business unit’s seNorth America or overseas. The es- nior management (the folks
is many times a tough call, an
sential principles of Project Control that will take ownership of
easier said than done undertakare to provide the best technical and the completed facility).
ing, it needs the input from
business solution to the business
corporate engineering, corporate
unit contemplating a new facility
finance personnel and the busiexpansion(s) or upgrade(s). The
ness unit’s senior management
initial description of a project scope begins at project (the folks that will take ownership of the completed
commencement, it is accomplished with the estabfacility). This decision is one in which the cost
lishment (creation) of an “approved” design basis
estimator can play a significant role in finalizing
that is accepted by management (accepted to a least
the manufacturing process and possibly selection of
go to the next step of project approval cycle), this
the final site location. What are some of the key site
particular section will not get into how the scope of
selection factors that need to be analyzed and estia capital project is developed, however it’s purpose
mated? Some of these factors are listed below. What
is to provide “basic” details of how to successfully
is the 5-10-15 year growth plan for this facility / and
estimate early / front end scopes of work. An acor product? Is this where future growth of this prodcurate Front End / Conceptual Cost Estimate can be
uct will occur, i.e. South East. Asia (China or India)
the first step in the successful execution of a capior South America? Where should the new facility
tal project, this “first” capital cost estimate should
be built - at an existing company owned facility, on
provide the project team with early (a “budgetary”
a new grass roots location, or should we renovate an
Copyright © 2017 Compass International, Inc.
SECTION A1 | 07.
existing facility to accommodate this new product?
Should the capital cost estimate include land purchase? Is any demolition or site remediation costs
to be evaluated? Are there differing manufacturing
process (steps) that can be used? Are there cost differences in the operating costs of these processes?
Will the new facility be given grants, tax holidays
and or incentives by the state or country that the new
facility will be located? Will this facility (new or
add on) require new services and utilities? Will we
need to train / educate the plant operators? Will the
new plant require state of the art control systems, or
can we obtain a competitive advantage by using low
cost labor to operate the plant and minimize costs on
the I/C account? Lots of questions need to be tabled
and answered during the CAPEX estimating effort.
These questions and many more will have to be
analyzed in some detail prior to proceeding with the
prospective CAPEX project.
In the early phases of the project, the Front End
/ Conceptual Cost Estimate should provide a framework to measure trends and to determine key project
milestones.
The number one indispensable principle of
Project Control – Cost Estimating is to deliver the
best technical and business solution to the business unit considering or bidding on 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 defined, some front end design work
(basic design) needs to have been completed, various manufacturing / production schemes need to
have been considered and scoped out to determine
their viability. The decision to engineer / procure
and construct (EPC) a new Chemical / Manufactur-
PROJECT
MANAGER
ENGINEERING DATA
PROCUREMENT DATA
CONSTRUCTION DATA
PROJECT
CONTROLS
CYCLE
CAPITAL
ESTIMATING
PLANNING /
SCHEDULING
COST
ENGINEERING
Copyright © 2017 Compass International, Inc.
08. | SECTION A1
ing Facility, or to upgrade, revamp or modernize
an existing facility is many times based on future
business growth, maintaining market share and to
ultimately to increase profits and ROI. Chemical /
Manufacturing Facilities must be designed to meet
the goals of (1) Safety, (2) Quality of final product
and (3) Profit – Return on Investment. The conceptual estimator / engineer is a person who can predict
/ analyze the “future” cost of an Engineering, Procurement and Construction (EPC) project(s) with a
very modest (minimal) amount of “real” data regarding the details of the project (basically there are no
detailed design deliverables at this stage – the future
“CAPEX project” is in it’s infancy, very much in
the speculative or conceptual mode), typically these
types of estimates are required at the very front end /
early stages of a project, they are typically used to:
1. Evaluate the capital costs associated with a
new or add on to a current facility. In addition they
can be used to determine the viability of producing
new products at a certain location. They can also be
used to audit and initially checkout the proposal of
an A/E firm or EPCM contracting company.
2. Used in the traditional annual or five year
capital expansion / forecasting effort i.e. does the
business outlook in Chile enable the project to produce an attractive ROI now or in the next two years.
3. Used as a tool to determine the best EPC
approach to maximize the owner companies Return
on Investment (ROI). They can also be used as the
management “go / no go” decision tool.
The Project Control cycle - is the methodical
review and analysis of the projects (Scope of Work)
from a cost / schedule standpoint. The following
flow chart demonstrates the coordination that is
required to have “accurate” Project Control on a
CAPEX Project.
Regular updates / communications to the Project
Manager of any departures from the current cost
estimate and schedule and counseling the Project
Manager / Project Team on any potential (EPC)
problems is the job of the Project Controls Group
and possible solutions that will ensure the projects
Copyright © 2017 Compass International, Inc.
budget and schedule is maintained or optimized.
This publication focuses on Capital Cost Estimating element of the above Project Control Cycle. The
foremost purpose of the compilation of a capital
cost estimate is to transform engineering / design,
procurement and construction deliverables and data
into an accurate prediction of current and or future
construction cost(s).
Capital Cost Estimates (CAPEX) - what are they
used for:
• A tool for analyzing various case studies / business economic models:
• An assessment of costs and resources to complete a specific scope of work:
• An appropriation for funds, appropriation for
expenditure - (AFE):
• A basis for analysis of contractors and vendors
bids and submissions.
• The supporting documents that are the basis of
an offer / bid to complete a work / scope item:
• A basis for future cash flow requirements and
forecasting.
• A project control tool: (used to monitor and
control the EPC effort).
• A benchmark tool for determining future project costs and possible use as a historical data tool for
future CAPEX estimating applications.
Issues and factors that can influence a capital
cost estimate, this list together with other data within
this publication should be used as a checklist to ensure that the cost estimating effort is completed and
fully budgeted (i.e. scoped out): see following page
for chart.
The following pages and sections A -1, A -2 and
A -3 of this database will describe in some detail,
the following types of capital cost estimates, a more
complete description of these estimates and hybrids
of these estimates are discussed in section A-3.
• Order of Magnitude Estimate (OOM). Typically arrived at by utilizing cost capacity curves, SF /
M2 / M3 units, ratios, factors, exponents and historical percentages, for example barrels per day, $’s per
MW, tons of production per year.
SECTION A1 | 09.
Issues and Factors
IMPACTING THE BOTTOM LINE OF A CAPEX ESTIMATE ENGINEERING
#
ISSUES AND FACTORS
1
2
3
4
Production of design deliverables / specifications (who produces Owner or EPC firm / when).
C / S / A design deliverables (who produces / when).
Process Flow Diagrams (who produces – Owner or EPC firm / when).
E/I design deliverables / Control Philosophy / Classification (does owner have a preferred vendor who produces outline spec / when).
Piping design and detailing (who produces – does this exist – has Owners Engineering group produced the first draft
of this document / when).
Relevant codes to be utilized.
Other Engineering issues.
PROCUREMENT
Long lead items (M.E. items) some complex items such as a multi-stage compressor could take as long as twelve months to design and produce.
Freight issues.
Import duties.
Bulk material purchasing.
Expediting.
Inspection / trafficking / performance testing.
Warehousing.
Early delivery bonuses / payments.
Other Procurement issues i.e. spare parts, vendor assistance.
CONSTRUCTION
Location of facility (USA or Overseas).
Weather issues (cold or hot climate).
Productivity expectations of workforce.
Union / Non union / Merit Shop construction approach.
Plant start up activities.
Labor availability and possible overtime / shift work requirements.
Protection of the completed work.
General Conditions / Preliminaries.
Construction equipment usage.
Establish camp / Establish concrete batch plant.
All required permits.
Small tools / Consumables.
Guards / Security.
Special safety issues.
Cleaning protocols / special requirements.
PROJECT SPECIFIC ITEMS
Completion date (Normal schedule or fast track schedule).
Escalation / Taxes.
Operator Training issues.
Owner costs / Owner provided items.
Contractual issues / Type of contract.
Warranty issues (procure extended warranty period).
Payment terms / Financing costs.
Currency impact issues.
Insurance issues (BAR / Umbrella / Bonds).
Liquidated damages / Consequential damages clauses.
Bonus / Penalty clause for early or delayed completion.
Contingency issues (technical and general contingency).
5
6
7
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1
2
3
4
5
6
7
8
9
10
11
12
Copyright © 2017 Compass International, Inc.
10. | SECTION A1
• A Preliminary Estimate / Funding Estimate.
Typically prepared when the conceptual / detailed
design is 20% - 50% complete (or when the detailed
design is perhaps 5% - 25% complete, or even less)
Many times based on early PFD’s early P&ID’s,
preliminary plot plans – indicating where major
equipment is located – many times the operation(s)
group has not bought into these early concepts and
they have a habit of moving around, however there
is some realism usually associated with these concepts.
• A Definitive Estimate / Control Estimate /
Validation Estimate with the detailed design effort
perhaps 30% - 50% complete, more information is
known, bids / quotes have been obtained for some of
the key major equipment, initial quantity take-off’s
are available for civil, piping, electrical and instrumentation, the scope of the engineering effort is
pretty well known.
• A Lump Sum Bid – Hard Money / GMP Estimate. A lot is now known about the project, the
scope of work is reasonably “nailed down” the detailed design is typically 70% - 100% complete, bulk
materials and major equipment (long lead items) are
on order, or some of the construction work is under
way i.e. site work, piling and foundations may be
partially installed.
The following table will give the reader an appreciation of were the “big cost drivers” are in a typical chemical facility project, not surprisingly these
values will not be the same for each specific facility,
however these values can be used as a benchmark
or guide, the percentages are based on numerous
(30+) projects that have been executed in the last ten
years, they are a mix of new and revamped CAPEX
projects with perhaps 70% of the data coming from
“new” $5 - $45 million chemical and manufacturing
facilities.
Typical Cost Breakdown of a new Chemical /
Process related Facility (constructed on an existing
facility with available utilities – that may need some
upgrading):
Note: These values are appropriate to Inside
Battery Limits (ISBL work) – Outside Battery Limits (OSBL scope / work) is not included in above
values. Contingency is included in above values (it
has been pro-rated into the above percentages). The
activity of capital cost estimating is at best a timeconsuming and an easier said than done undertaking.
Trying to forecast the many project variables such
as weather, productivity, labor costs, major equipment, field in directs, bulk material quantities and
Typical Cost Breakdown
NEW CHEMICAL / PROCESS RELATED FACILITY
CATEGORY
PERCENTAGE VALUE
PERCENTAGE RANGE
Major Equipment (includes freight) the value for freight is 3%.
For overseas applications requiring ocean freight.
This number could increase. Ocean freight typically is 7% - 10%
of the M.E. value.
Materials (Bulks / Engineered).
Labor costs – including sub-contractors.
Field In-directs / General Conditions / Preliminaries.
Detailed Design / H O support / Procurement / PM (includes Owner Engineering) Includes all necessary
design deliverables.
Construction Management (incl CM Gen Conditions) TOTAL
22.9
18 - 27
21.5
24.3
11.7
13.9
17 -26
19 - 29
9 - 13
10 - 17
5.7
100.0
4-8
100.0
Copyright © 2017 Compass International, Inc.
SECTION A1 | 11.
unit costs, taxes and escalation and to attempt to
estimating the cost of General Buildings (airports,
look into the future, say two or three years, is very
logistic centers / warehouses, office facilities, public
difficult and demanding, encumbered with potential
buildings, schools, together with civil engineering
dangers (future events are of course difficult to anrelated projects etc.). Some of this data is outlined /
ticipate, for example, who would have thought in the indicated in section B 3, B 4 and C 1, this data can
early 2000’s that a barrel of oil would cost $140 + a
be used in the production of cost estimates for other
barrel in January of 2009 and then drop like a stone
“specific / one off” engineering and construction
to $35), hopefully this publication will shed some
discipline items such as demolition, civil, site work,
light on these important topic(s).
architectural, engineering and construction manageA CAPEX capital cost estimate can be considment fees, mechanical, electrical and instrumentation
ered as one of the following:
/ controls and insulation (refer to section A 4 and D 1
• The bottom line cost / bid for completing an
for examples of these topics) which may be required
Engineering, Procurement and Construction effort, it and budgeted using similar / parallel conceptual /
is the work effort of determining all
front end estimating methods and
the numerous cost elements which
procedures described in this data
The main goal of this publiwill be required for a particular
source. This should allow a cost
cation is to assist the user in
activity / (EPC) construction project
estimator the ability to compile a
not “dropping the ball” and
and arriving at a total cost value for
reasonably accurate front – end
making erroneous front end
completing the itemized scope of
CAPEX estimate. The main goal
/ conceptual type capital
work (basically a shopping list of
of this publication is to assist the
estimates and basically to
required items).
user in not “dropping the ball”
provide a more focused and
• A cost summary together with
and making erroneous front end /
disciplined approach in proa description of work (scope of
conceptual type capital estimates
ducing a more accurate and
work / mission statement) specific
and basically to provide a more
concise front end / concepto a project to be performed or
focused and disciplined approach
tual estimate(s)
considered.
in producing a more accurate and
• A current photograph / snapconcise front end / conceptual
shot of an (EPC) project(s) curestimate(s) – i.e. to shed some
rent scope of work together with a cost value of its
light on an area of cost estimating that can be a
anticipated final cost.
challenge to new young estimators that are starting
• A judgment / opinion of final cost by a
out in this business and need an initial road map to
person(s) / cost engineer(s) / cost estimator(s) /
get started. The responsibilities, mission statement
project team that has considered the SOW to be
and basic activities of capital cost estimating (the
performed.
“job”) is for all intents and purposes a data gatherThis data source and the basic focus of this pub- ing activity (getting your arms around the projects
lication is targeted primarily at the manufacturing /
scope and documenting it), it includes reviewing
process industry / chemical engineering / pharmadesign documents (design deliverables – drawings
ceutical / industrial sectors. 60% to 70% of the “cost and specifications and scopes of work) if they exist
estimating / benchmarking data” contained in this
and the preparing a take-off / shopping list of scope
data source is targeted on these specific industry
items that need to be completed in the execution of
sectors, however it is not the aim of the database to
the CAPEX project. In addition it includes gatherexclude other construction industry sectors. Some
ing local construction cost data, local material costs,
of the following benchmarks and data can be use in
field crew productivity / production statistics, deter-
Copyright © 2017 Compass International, Inc.
12. | SECTION A1
mining contracting methods, plus a host of other cost
related issues.
Capital cost estimating is a four step process;
these four basic estimating steps are as follows.
(This assumes that the cost estimator has read and
absorbed the current scope of work and reviewed the
current engineering deliverables that currently exist).
1. Familiarization - Site visit / investigation (if
timing allows)
2. Quantities Effort - Quantity take-off (shopping list of required items), the quantification of all
the necessary items needed and depicted upon the
preliminary and final design drawings
3. Costing Routine / Effort - Collection and
selection of pricing / benchmarking data.
4. Finalizing the CAPEX Estimating Effort
- Summarization of this data, is the work effort of
calculating all the costs which will be required for a
particular activity / construction project and arriving
at a total cost value for performing the (EPC) work.
They say “money makes the world go round”,
- CAPEX funds whether they be dollars, pounds,
yen or euro’s and the subsequent cash flow of these
funds and the profit that is realized as they relate to
the implementation / execution of the “CAPEX project”, is the oxygen of any profit motivated construction / manufacturing related organization (Owner /
EPC firm), many times it is identified as the bottom
line, selling price, required funds, contract price, P
& L (profit and loss), anticipated or final bid cost.
Cash Flow - Money and the management of it, is of
acute importance in estimating / cost engineering
and project management, as is the essential metrics
of knowing the current status of the project and the
performance to date and how much it will cost to
complete the work remaining (forecast to complete),
i.e. are we making a profit or loss on this project,
how does it measure up against the original capital
cost estimate (basically we are performing ongoing
benchmarking activities as the project proceeds).
Each and every able cost engineer / estimator /
project manager must become familiar with basic
cost estimating methods, procedures and techniques
Copyright © 2017 Compass International, Inc.
that were touched on earlier (and are mentioned in
some detail in the first three sections of this publication) i.e. the visit to the site to collect data (project
specific information), the take-off routine, the pricing effort together with the summarization of all the
relevant data, the cost engineer / cost estimator must
also have a basic knowledge of the background /
supporting data that is the estimate based upon, i.e.
scope of work – project definition. Additionally they
should understand basic accounting principals, cost
control methods, value engineering principals, cash
flow and profit generation specific to their current
project(s) to be beneficial to their employer and their
clients. These are important attributes that can not be
learnt overnight, it could take 3 – 5 years to get up
to speed with these issues. The important attributes /
skills of a cost estimator are:
• Technical ability - (EPC) knowledge. (understand the big picture)
• Team player. (help out on other estimating /
project management assignments when needed)
• Basic Construction - Business acumen
• Ability to work well under pressure / a hard
worker that can think outside the box
• An inquiring mind. (Ask questions never assume)
• Good computer skills (a very important ability)
• Pack rat mentality – collects information for
future use. (Discard out of date data when necessary)
The best cost estimator (the one with the best
potential) that the writer has come across in the last
twenty years is a young engineer with 3 – 5 years
experience – his filing and data collection skills
were first class, he was never at a loss when questions were asked of him, he did his homework, his
estimates were accurate and well prepared, he kept
his own audit trail (a large three ringed binder that
contained all the relevant estimating / pricing data).
As has been touched upon, the forte and skill set of
the professional estimator / cost engineer must be
comprehensive - they should have an appreciation of
all construction disciplines i.e. CSI Division 1 - 16,
SECTION A1 | 13.
the most important prerequisite is the ability to look / cost engineer is to ask questions and to question
into the future (crystal ball and tea leaf readers…ap- the feedback and answers that are provided by his
ply here). The second most important trait is the
or hers questions. The preponderance of “seasoned”
ability to get along with people and be a team player cost engineers / estimators, individuals that have
(being able to communicate and collect relevant data been involved with estimating for more than five
with or from the other team members is very imyears have in many cases collected and formulated
portant – squeezing out all of the relevant data from
their own personal “estimating” libraries during their
the team members is important), complete with the
career(s), many times when these individuals retire
skill of being able to cut through all the details and
these libraries are lost, or thrown out. The exerfocus on the specific “cost drivers” of the future /
cise of this publication is to download the writers
current EPC project. A number of the more imporown extensive library and some of his co-workers /
tant qualities and basic traits are Business Acumen
colleagues and to make it available to “rookie” and
(understanding the importance of cash flow, change
journeymen / women cost engineers / cost estimators
management i.e. change orders / claims, negotiations joining the industry.
with clients / vendors / sub contractors).
This important and vital subject matter i.e. Front
Knowledge of the construction
End / Conceptual Estimating is
process i.e. the understanding of
a data source that cost engineers
the following main categories – (1) This important and vital
and estimators are constantly
subject
matter
i.e.
Front
End
Construction / Engineering / Prosearching for on a day too day
/ Conceptual Estimating is a
curement / Construction Managebasis (hopefully this data source
data
source
that
cost
engiment, field experience is a definite
will be beneficial to the reader
neers
and
estimators
are
advantage: (2) Communications
on future Front End / Conceptual
constantly searching for on
and Computer skills (computer
cost estimating activities). For
a
day
too
day
basis
skills are becoming increasingly
the reasons just touched on, the
more important in this business
author(s), after years of searchenvironment): (3) Team Player /
ing / compiling and collecting
People Skills as was mentioned above (work indithis type of process related capital cost estimating
vidually or as part of a team): (4) Time Management data decided to summarize their thoughts and views
(create shortcuts and ability to think outside the
on this subject in an effort to fill this void, without
box): Additional know-how that would be beneficial getting too deep / long winded and detailed, which is
to an Owner or EPC organization is the aptitude to
hard to do on a such a large and complex topic. This
visualize each physical engineering, procurement
book is aimed at giving the reader the “headlines”
and construction activity / operation (and how they
of various cost estimating items, a quicker way of
impact / ripple into each other – fitting all the pieces arriving at a “cost”.
of the puzzle together) that is required to be integratAll CAPEX capital cost estimates have one
ed into the “construction project”, how each activity universal objective, they provide the basis for man/ work effort fits into the total / whole scope of work agement action (go or no-go or go back and re-work
(big picture), and to interpret the extensive and less
the numbers), how much will this project cost, what
significant details into accurate and detailed total
is the ROI, can we buy this product from a “Toller”,
cost budget / cost elements, ensuring that the scope
does it make economic sense to build this proposed
(the intent of the design team is captured in the take- facility, should we expand this facility, where should
off process is followed as carefully as possible). One we locate this facility in North America, Europe or
of the main prerequisites of professional estimator
in South East Asia, questions and more questions
Copyright © 2017 Compass International, Inc.
14. | SECTION A1
that need to be resolved. For those reasons to assemble and compile accurate (CAPEX) capital cost
estimates historical data and benchmarking data is
required, this means that a source of easy to use and
precise – up to date historical / current cost specific
data is essential, this data should be broken down basically into quantities of materials, labor man-hours
and total dollars (money), the data source could be
via the use of in-house return data or “proven” third
party external resources, i.e. estimating books / pricing catalogs that are up to date. Annually or real
time updated i.e. current capital cost estimating data
sources (material unit costs, man-hour installation
units, construction equipment – plant and productivity adjustments) - (calibrated to a key location(s)
i.e. U.S. Gulf coast, Washington D.C or the North
Western area of the UK) are what is needed. This
data can provide owners and EPC firms a competitive advantage over their competitors.
There are today, numerous capital cost estimating systems / procedures / methodologies both
computerized and hard copy – and perhaps half a
dozen or more reference books being used in the
EPC industry to generate capital cost estimates. One
of the main problems with some of these cost data
reference books is that the data is focused primarily
on general construction, i.e. housing, remodeling, office buildings, schools etc. (low tech construction as
it referred to). The basic focus of the data contained
within this publication is the process / manufacturing / chemical industries, and to some extent the
pharmaceutical sector of the construction industry.
The data in this publication reflects man-hour benchmarks, bulk materials, capital major equipment (CAPEX equipment), EPC construction practices, labor
rates (union & non union or merit shop), schedule
of rates / unit prices, engineering costs / fees, owner
costs, plant / construction equipment. Capital cost
estimates may be and are prepared and compiled
at any point in the projects life cycle development,
from the initial early stages 0% to perhaps 5% of the
design has been established, to defined / complete
engineering stages (the detailed design may be 70%
Copyright © 2017 Compass International, Inc.
- 100% complete) of the project. An example of this
early estimate is (Identification / Conceptual / Business Concept Estimate) – as it is sometime referred
to (little or no engineering produced – real lack of
engineering documentation - i.e. engineering deliverables and reports, the only document might be
a preliminary “major equipment” list) the estimate
is compiled by multiplying the major equipment
items by a factor to arrive at a total installed cost.
This early stage estimate would need perhaps 20 –
25% contingency to cover risks and lack of project
definition, the next “update” of the estimate would
be a preliminary stage estimate, possibly 10 - 20%
engineering phase is compiled. We would need less
contingency because we know more about the project (and we have less risk going forward), the semi
detailed execution phase submission would perhaps
be the next estimating step or update, perhaps, 20 50% of the detailed design completed, again more
is known about the project and we would basically
need less contingency. Last but not least the lump
sum / turnkey bid / hard money estimate (proposal or
budget), perhaps 50% - 100% of the detailed design
in completed (pricing from vendors and sub contactors is typically available), the contingency requirements with this “detailed” estimate may be less than
10% and could be as low as 5%.
A detailed estimating plan i.e. a plan that lists
various engineering deliverables and required data is
described in Section A - 2 of this publication.
Prior to getting up to speed / on board with the
basics of conceptual capital cost estimating techniques, there are number of basic fundamentals /
terms and methodologies that will be discussed and
described via tables and charts in this and subsequent sections. This initial section A-1, is devoted to
describing a few basic capital cost estimating goals
/ tasks / perceptions (a view down from 30,000 feet)
and methods that are utilized (in some organizations)
in the “Process / Chemical / Manufacturing” (PCM)
industries, section A-2 discusses capital cost estimating fundamentals, section A-3 discusses and describes various capital cost estimating methods, the
SECTION A1 | 15.
remaining sections “drill” down into more detailed
have slowed down) and in other remote locations
estimating data. Many EPC projects are successful,
(language, culture, time differences – all add to the
it was estimated correctly, it was built on time and it challenge).
produces the specified material / product that it was
• Companies are trying to do more with less
designed to produce. However perhaps 10% – 30%
money (i.e. CAPEX spending in USA down between
are unsuccessful (the capital budget was exceeded,
50 – 60% since 2000, less qualified staff are availthe plant was handed over late and the facility is not able than previously).
producing the product in the quantities it was de• Many projects are built using fast track engisigned for, or to the specification required), no one
neering and construction methods.
wants this situation. Loosing money on EPC (CA• A lot of the “old hands” have retired, Corporate
PEX) projects is the reality all companies face today, Engineering groups have downsized, and Project
this situation has occurred since “Adam” was a boy, Managers are getting loaded up with additional
cost over runs are not a new event although such in- responsibilities. It seems that more and more recidences seem to be more customary in recent years, ports are needed now, construction professionals are
perhaps because more CAPEX projects are being
working harder now than they did in the past.
undertaken now than in the 1960’s
The capital cost estimate, be
and 1970’s (many times because
it a five page Front End study, or
The capital cost estimate,
goals are set unrealistically high)
a detailed 500+ page document –
be
it
a
five
page
Front
End
this is because interactions / comwith hundreds of line items, is a
study, or a detailed 500+
munications are much more widedynamic and living document. It
page
document
–
with
spread (the curse of e mail, more
is a listing of basic assumptions,
hundreds
of
line
items,
is
a
individuals seem to be in the loop
a “priced out” shopping list of the
dynamic and living
and have input into the day to day
owners (projects) needs, (hopefuldocument.
business ‘running” of the project).
ly it corresponds to the needs of
Everyone always remembers bad
the client) it’s end result, at best
news, cost over runs have hapcan only be a forecast / educated
pened in the past, and guess what - they will happen opinion / snapshot of the funds needed to complete
in the future. Some of the reasons that this situation the scoped out work of the individual(s) involved in
seems more prevalent today are:
the engineering, procurement and construction scope
• Failure to scope out and estimate the project
definition and estimating effort. The cost estimaand failure to recognize the risks associated with the tor more often than not develops the path forward /
project.
road map of the estimating process (and is the focal
• Clients are trying to get to the marketplace
point of the estimating effort – refer to Section A-2
quicker, to beat their competitors to the punch (it
for information on the Estimate Plan). It is he or she
seems everyone is in a rush these days).
who should determine the estimating plan, who does
• Less CAPEX dollars are available now and this what and when - with management buy-in of course,
will be the same possibly in 2017 and 2018 (refer to what are the required engineering and procurement
next point).
deliverables needed to produce the capital cost
• Many major projects are being built in S.E.
estimate, do we require vendor quotes and layout
Asia (China and India are currently experiencing
sketches. It is the cost estimators / cost engineers
significant inflows of CAPEX from North Amerifunction to determine the resources, tasks, construccan and Western European operating companies,
tion equipment, crew sizes, field installation produchowever with the recent credit crisis this seems to
tion man hour rates, bulk and engineered material
Copyright © 2017 Compass International, Inc.
16. | SECTION A1
requirements, overhead, profit margin, contingency
and risks (again, with the buy in of upper management). It is he or she who responsible for providing an estimating audit trail / document / basis of
estimate and last but not least forecasting the “final”
cost of the construction related project(s), of course
again with the “blessing” of senior management.
To successfully perform accurate and timely
front end or hard money estimating activities, it is
necessary to be able to access updated “estimating”
databases of construction cost information / data
(purchased from third parties, in house or personal
historical data). The estimator / cost engineer must
constantly accumulate cost estimating data, annual
cost estimating reference books, vendor pricing / cut
sheets, installation catalog(s), and copy / highlight
/ file ad infinitum all pertinent estimating data and
verify return cost data, unit costs and values from
ongoing field operations. Keeping this up to date
with current world events such as 9/11/2001 (and the
recent worldwide financial crisis) together with the
spike in oil prices above $140+ a barrel is an ongoing challenge. It is prudent to subscribe and read the
ENR / Chemical Engineering / Building and other
relevant industry magazines, together with various
specialized trade magazines etc., keep copies of cost
indexes as they specifically relate to labor and material costs, keep a file on labor rates, sub-contractor
bids and proposals etc. It is his or her occupation /
function to calibrate, adjust, make recommendations
/ comments and notes on specific project / construction installation problems and potential under-runs
or over-runs, location factors, scrutinize productivity
profiles, performance hours and return costs from
the job-site and file them away for future use. This is
a vital function that must be performed on a constant
basis if the cost data is to be useful to organizations
that depend on this data to grow and prosper. Let’s
face it, capital cost estimating and how it is performed is a very important topic to any profit or non
profit organization, getting the budget right is important, nobody wants to go back to management and
ask for more money, it’s embarrassing and it could
Copyright © 2017 Compass International, Inc.
impact your career prospects.
Developments and improvements by software /
estimating / consulting firms in prevailing computer
technology / data storage and retrieval systems has
resulted in more than a few of these estimating data
sources being put on the market to assist estimators
/ cost engineers. They can be purchased on various
software formats i.e. floppy disc’s, C D ROM’s and
smart sticks and can be accessed via the internet,
also on line services are currently available. Operating, maintaining and running this software data and
applying it to compute accurate and well-timed front
end / conceptual capital cost estimates is today the
distinctive challenge and important job function of
the estimator / cost engineer and an occupation /
skill that will expand in the future (skill and dexterity in the use of computers is a “needed” proficiency
if one is to be employed as a cost estimator). Front
End / Conceptual capital cost estimates of refinery,
chemical and manufacturing / process related (PCM)
facilities need to be grounded on real life / historical
benchmarks for management to buy into them and
eventually approve them. The following is a listing of engineering deliverables that should be made
available prior to the commencing the front end /
conceptual estimating effort (note some of these
early engineering might constitute no more than
2.5% - 5% of the eventual detailed design effort).
• Assignment / mission statement / estimating
plan
• Any relevant engineering deliverables
• Front end / preliminary scope of work statements (execution approach)
• Process Flow Diagrams, (P.F.D.’s)
• Preliminary / early major equipment lists (with
budget pricing if possible)
• Plant / facility location (and location within an
existing facility)
• Location of any existing utilities / existing tank
farms
• A bar chart / major milestone schedule (start
and finish date)
• Preliminary P. & I. D.’s and or process flow
SECTION A1 | 17.
sheets / block diagrams
5. Product loading area / tank farm facilities /
• Latest engineering deliverables (plot plans and warehouses
general arrangements)
6. Process support utilities (steam / electricity /
• Conceptual plot plan (Major Equipment locaWWT facilities)
tions / foundations)
The reason these are many times difficult to
• Applicable sketches / notes / photographs /
price out is that there is limited information (design
videos, reports such as PCA’s etc.
parameters / basic design information) on the scope
It goes without saying, to have all of this data,
of these items. These cost items are typically not
together with outline specifications of major equipstarted and defined from an engineering point of
ment, phone quote pricing of major equipment
view until the “heart” of the project – the ISBL facilitems, engineered materials and conceptual “quantity ity is nailed down – we need to know the product
take off” information available (foundations, piping
specification / production rates of the ISBL unit belengths, electrical motor(s) list, and perhaps an infore we can size out the OSBL – utility needs. Many
strumentation list etc), this is a lot of data to absorb. times these items 1 – 6 are understated (undervalued
However, the estimating effort / endeavor must be
in the initial estimating effort). A lot of times, these
completed to support this early
process supporting components
cost estimating (of course there is a
are called the off-sites or outside
The reason these are many
“cost” to procure this front end enbattery limits items (OSBL), the
times
difficult
to
price
out
is
gineering documentation, that may
actual process operating unit is
that there is limited inforhave to be included with the CAas we know is the inside battery
mation
(design
parameters
PEX estimate, the question is how
limits i.e. - (ISBL). The (OSBL)
/
basic
design
information)
do we estimate these scope items,
scope items can sometimes be a
how much time do we available (1) on the scope of these items.
separate capital cost estimating
should we produce detailed takeeffort, but usually it is estimated
off’s of the foundations and piping
by the individual estimating the
systems etc, or should we (2) estimate the bulk ac(ISBL) scope of work: The OSBL / Off Sites are
counts by historical ratio’s, percentages and factors
‘loosely” described above 1 - 6 and include (ISBL)
(described in following sections) – remember the
support systems i.e. power / electrical production /
more definition (design information) that is available steam generation and distribution systems / process
usually means the estimate is more complete and it’s support utilities and systems (compressed air, gas,
accuracy is improved), this is an important decision
process and cooling water / ponds), storage / tank
that needs to be made in the CAPEX estimating
farm facilities, loading / shipping / receiving facilieffort. Loosely defined scope items / construction
ties, jetties, wharf’s, pumping stations, elevated
categories that are often difficult or challenging to
water storage tanks, road crossings, etc.. The faciliput your hands around and price out are:
ties are of course vital for the plant / facilities safe
1. Outside Battery Limits: OSBL piping (above ongoing operations, by there very support function
and below grade)
they are not a part of the specific processing units
2. Outside Battery Limits: OSBL electrical
manufacturing / chemical reaction production “mawork (ditto)
jor equipment”, - these off sites might support two
3. Other work outside the battery limits (Roads, or more (ISBL) operating units, they are necessary
jetties and loading areas etc.)
utilities / services needed to ensure the manufactur4. Fencing / Gatehouses / Parking and Lay
ing plant / facility operates in a safe, reliable and
down areas
cost effective way. Typically these support systems
Copyright © 2017 Compass International, Inc.
18. | SECTION A1
are some of the last items to be engineered and esticost engineers use a percentage of between 20% and
mated / evaluated, (hence the reasoning why they are 70% of the defined ISBL process unit cost to come
difficult to estimate / scope out at the early stages of up with a value for this OSLB / “off sites” scope
the project). The OSBL / off-sites include the scope
of work (not very scientific to say the least, but the
described above, plus some of the following. Think
percentage has some validity, and when nothing else
of them as items outside the “main process”, howev- is available), then again, many times senior maner they are needed to make the “main process” work agement will consider this as not accurate enough
and function safely:
and requests better definition (and rightfully so, this
• Perimeter roads / tank farms / product storage
value could be a significant part of the projects final
tanks / pipe track crossings
cost), i.e. more scope definition (hence more design
• Power plants / electrical power generation
and additional engineering costs) to define and scope
• Utility water, gas supplies / plant air
out this important part of the project. An estimator
• Process water / cooling ponds
needs to review the OSBL scope, is it a complex
• Sub stations, or supply / steam production by
piece of work, or is it minor in nature; it’s the call of
means of oil / gas fired boilers,
the estimator and his or her manpotable cooling and process water
agement on how to estimate it.
supply and needs
In Front End Conceptual /
An estimator needs to re• Wastewater treatment facilities
Preliminary Estimates, determinview the OSBL scope, is it a
and sewage plants
ing and calculating the commodicomplex piece of work, or is
• Administrative / control /
ties (many times referred to as
it minor in nature; it’s the
warehouse / repair & maintenance
bulk or engineered commodities
call of the estimator and his
workshops / support buildings
or “bulks”) examples of these
or her management on how
change rooms / etc.
items are as follows:
to estimate it.
• Parking areas, fenced off lay
• Stone / Gravel / Hardcore /
down / marshalling areas etc.
Engineered fill
• Raw material receiving etc.
• Concrete / Rebar / Form• Flares
work
• Pipe racks etc.
• Architectural finishes and features
• Product shipment buildings, guard houses job• Bricks / Masonry / Pre-cast walls / Curtain
site security etc.
walls
• Jetties and off-site piping / pump houses etc.
• Structural Steel / Gratings / Miscellaneous Met• Plus other Off Site (OSBL) specific items not
als
described above
• Miscellaneous, Steel / Ironwork / Platforms
As was mentioned earlier in the normal detailed
• Pipe / Valves (not control valves) / Fittings
engineering timeline of a project, these scope items
• Electric cable / Conduit
/ elements are many times engineered and defined at
• Insulation (equipment and pipe)
the 20% design level or detailed design mid point of
• Refractory
the detailed design / engineering and procurement
• Instrumentation Material (none tagged)
effort; and that is the problem for the estimator / cost
• Paint / Coatings
engineer, definition of these work tasks / scope items
• Road Paving (Blacktop material) / Concrete
is typically “loose” i.e. not too well defined (the defi- curbs
nition of the project is not yet focused at this point in
• Plus many other specific items
the projects life cycle). Many times cost estimators /
In the early stages of a CAPEX project the above
Copyright © 2017 Compass International, Inc.
SECTION A1 | 19.
are usually inadequately scoped out due to the fact
prices or an allowance?
that little or no detailed design / engineering (or
• High water table / Bad ground conditions –
more importantly the specification(s) have not yet
running sand conditions how will we keep foundabeen fully developed) has been completed (basically tion free of water – well point system or another
the design team has not thought this scope out yet).
method?
Bear in mind 5% to 15% of the engineering scope
• Hot taps (system shut down) will plant remove
has been defined at this point, the engineering team
insulation and drain systems, do we need special
is trying to scope out the big ticket major equipment permits?
items (long lead time items), towers, compressors,
• Tie-in’s, yard / utility / service piping – do we
heat exchangers, filling lines etc. The big push in the need to shut down any operating unit (s) what about
engineering effort is to get the “big ticket” items on
plant permits (hot work)?
order. Front end / conceptual capital cost estimat• Electrical sub station expansions – do we need
ing problems/ challenges usually begin to develop
to contact local utility company?
in the “take off” of the commodities / bulk materials
• Removal of hazardous materials – were do we
(see above listing of for types of materials). They
remove material to, do we need documentation do
included the above and some or all
we need to keep records for future
of the following: concrete formaudits?
work, rebar, foundations, piping
• Shut downs at night or on a
However
it
is
always
good
systems, brick / block walls, paintspecific weekend?
ing, siding, steel platforms, roofing, to have a couple of different
• Fire water system – can we
cost
estimating
systems.
structural steel supports and the
calculate GPM needs or should
Reliance
on
a
single
system
items mentioned above. The probwe just make an allowance?
is not the way to go.
lem in estimating these items (as
• Revamp / upgrades – do
mentioned above) is that the scope
we have current drawings (asis not defined and some scope
built’s)?
items are missed from the quantity take off. The cost
• Cooling towers – what are requirements, what
estimator / cost engineer at this stage of the project
type of tower (Concrete or timber)?
must many times use his or her judgment on how
• Waste water treatment facilities – is this scoped
to estimate these items, should we perform detailed
out, can we get a vendor price?
/ semi detailed estimate or take-off of these items,
• Roads, gate houses tank farms, tank loading
should we get quotes from various vendors for these areas and a myriad of other items that need to be
systems (design / build quotes for specific systems,
considered and estimated that are unique to that
i.e. a high speed packaging line, or a specific “black particular project?
box” system or component), or should we use the
In the marketplace there are currently some
down and dirty method of coming up with historical excellent cost estimating tools / software systems
allowances to establish a price. Time is the deciding and procedures for each estimating phase of a CAfactor in determining the path forward on this apPEX project (Conceptual – M2 / Square Foot and
proach. Will management accept factors and allowDetailed Estimating), which when appropriately
ances or will they insist in a complete take-off. Other used, can create comprehensive and accurate capital
questions that may need to be resolved / estimated
cost estimates and front end tools which are usually
include the following:
satisfactory and helpful to management for resolu• Under ground rock, how extensive - what type
tion and the CAPEX decision making process. The
of rock, how should we estimate this item, unit
downside of some of these systems is the initial cost
Copyright © 2017 Compass International, Inc.
20. | SECTION A1
of buying and subsequent annual renewals can be
very expensive. However it is always good to have a
couple of different cost estimating systems. Reliance
on a single system is not the way to go. Of course it
is always good to have a couple of different reference points to validate the CAPEX estimate; hopefully this publication will satisfy that need in a lot
of cases. Of course, it is vital that the cost estimator
/ cost engineer maintain control throughout the life
cycle of the estimating effort (total reliance “blind
faith” on computerized CAPEX estimating systems
and methods is dangerous to say the least) the cost
estimator needs to know the “details” that backup
the computerized estimating systems and question
any irregularities that show up – hopefully this database will assist and augment in that audit effort. The
cost engineer has an important and significant audit
/ oversight responsibility – function, it is imperative
that a completed cost estimate encompass an audit
trail to support the capital cost estimate of its basis,
this includes:
• List of assumptions / Inclusions
• Start date of Engineering
• Commencement date of procurement activities
• Start date of Construction
• Construction completion
• Description of the project / Scope of work
statement / Major milestone schedule
• Sketches / Drawings and any Photographs
(video’s)
• Details (quantities, related to civil, mechanical
and electrical systems and pricing basis)
• Vendor / Sub Contractor Quotes
• Pricing basis (source of labor rates – union
– non union and material costs)
• Reports (soils / boring logs)
• PCA’s, Environmental impact studies
• Lists of major equipment / instrumentation
• Basis of escalation
• Exclusions from the estimate, estimating assumptions
Compiling a CAPEX estimate is a challenging undertaking as we have previously discussed
Copyright © 2017 Compass International, Inc.
in some detail, after reading this section and the
remainder of this data source there will be questions
that the reader needs to ask themselves. These questions are: Who should be involved in the verification
process? Which stakeholders should audit and “buy
into / approve” estimated cost (is it one person or is
it a committee)? How will the estimate be reviewed?
How can we improve the capital cost estimate preparation and approval process? Should we consider the
“Gatekeeper” type of estimating approach? How can
we improve the CAPEX estimating accuracy? How
should we react to a project if the project shows
potential for going out of control, i.e. schedule, cost
and quality? Should we:
1. Scale down / back the original scope, 70 tons
of production of cement per day, instead of 90 tons
per day?
2. Stop the design effort and evaluate the immediate path forward?
3. Call in the “experts”, understand what the
problem is, A.S.A.P. and come up with a list of corrective options?
4. Perform a re-evaluation (re-estimate)?
5. Consider a detailed value engineering effort?
6. Chart a new course; determine the most
cost effective and prudent path forward to meet the
original or “new” goals of the project?
As stated before, the rationale of this data
source is to provide more general conceptual / rule
of thumb estimating data, front end / methodology
and source document to rookie / journeymen and
journeywomen cost estimators and project managers. It goes without saying, that it is the cost estimator / cost engineer who must conceptualize, visualize the intent of the scope of work, understand the
manufacturing process of the facility outlined on the
preliminary drawings, the business future dynamics of the facility / project, to be aware of the materials of construction, operating parameters, EPC
execution method, capital major equipment and
implementation techniques required to construct
the facility / process related plant, estimating and
compiling the final cost of the project from, concept
SECTION A1 | 21.
drawings (consisting of perhaps 3-6 sketches and
a preliminary major equipment list) to the detailed
design , procurement effort and construction approach (consisting of 100’s of detailed drawings,
reports and specifications) and eventually to successful commissioning hand over of the “Process /
Manufacturing” facility to the end user / operations
group is a challenging effort. Hopefully, some of the
data contained in this data source / guide will shed
some light on the needs of the required Front End /
Conceptual Estimating effort.
CAPEX ESTIMATE SCHEDULE AND
REVIEW CYCLE:
Factors to consider and plan for include:
1. When is the CAPEX Estimate required?
2. What accuracy is required?
3. What resources will be required to complete
the estimating effort, together with the required
engineering deliverables?
4. Has a budget been established to pay for the
CAPEX Estimate?
5. Who will review and “buy” into and approve
the CAPEX Estimate?
PRESENTING THE COMPLETED CAPITAL COST
ESTIMATE TO SENIOR MANAGEMENT:
This activity is usually undertaken / conducted by
the cost estimator and the appropriate senior management to upper management, it may take an hour
or it could take a couple of days. If the capital cost
estimate is a lump sum bid that needs to be submitted at a specific time and delivered to a certain address this listing may need to be optimized to reflect
these timing and delivery logistics.
1. Provide a written description of the projects
scope and the current goals the project team is aiming for, discussion the expectations and timing needs
of the business unit.
2. Describe in detail the engineering deliverables that the capital cost estimate was based upon,
PFD’s PCA’s, Phase 1 Environmental reports.
3. Describe any de-commissioning activities,
removal of tanks and other “good” condition major
equipment items.
4. Include a bar chart that indicated major milestones, start of engineering, mobilization to field and
project completion, plus any other unique milestone
specific to this project or study.
5. Be prepared to show quotes, records of telephone calls, faxes, sub-contractor pricing, e-mails
and conference notes (have a file with all the associated documentation available for review).
6. Explain basis of labor / wage rates (union,
open shop or merit shop).
7. Describe any necessary operating unit shut
downs / tie-ins.
8. Describe any demolition, disposal of chemicals / sludge, required clean-up activities.
9. Describe labor productivity basis, i.e. Gulf
Coast or N.W. England.
10. Explain purpose of estimate (funding, validation or lump sum submission).
11. Is the project delivery need to be in a phased
approach, what are the cost consequences of this approach?
12. Provide listing of major cost components
(M.E. multiplier, cost per SF / M2, cost per gallon
– try to measure the cost of the facility to company
benchmarks).
13. Describe pricing received for major equipment, how many bids; pricing basis, how long is
pricing valid, delivery time.
14. Be prepared to discuss any relocations of
equipment.
15. Provide an explanation of direct and indirect
costs.
16. Explain ISBL work and OSBL work scope.
17. Describe how costs for civil, concrete, structural steel, buildings, piping, electrical, instrumentation, insulation, painting, engineering, construction
management and any other significant accounts were
derived and estimated and compiled (Ratio approach
or detailed take-off or based on sub-contractor bids
and vendor quotes).
18. Explain instrumentation scope and control
Copyright © 2017 Compass International, Inc.
22. | SECTION A1
philosophy.
38. Explain contingency value that was utilized
19. Provide details of lead paint removal, asbesand method used to determine indicated amount.
tos removal, underground obstructions, hazardous
39. Explain the work that the operating group will
waste, and mold remediation.
complete and be responsible for.
20. Provide cost details of any “refurbished
40. Describe any Royalties / Licensor fees conequipment”.
tained in the estimate.
21. Make available details of “expense” items
41. Spare parts; how is this accounted for, detailed
(demolition, asbestos removal and relocations).
list or an allowance.
22. Make known required tie-ins, and any shut
42. Be prepared to discuss any shared saving prodowns that may be required.
visions in the contract.
23. Provide details on any required overtime or
43. Explain any initial operating costs such as
shift work.
plant operator training.
24. Explain general condition
44.
Explain costs associDivision 1 costs.
ated with initial fill / catalyst.
25. Be prepared to discussion
45.
Be prepared to disAll of the many partakers
assumptions made regarding procuss the cost ramifications of the
in the efforts of compiling
ductivity.
“contract” between the owner and
front end engineering stud26. Provide details of any althe contractor, (i.e. payment terms,
ies and estimating, planlowances and provisional sums.
payment cycle 30 days or 45 days
ning, funding, constructing
27. Indicate the anticipated acor possibly more, retention, liquiand successfully starting
curacy of the capital cost estimate.
dated damages and bonus / penalty
up a new or re-vamped
28. Explain how currency flucprovisions, bonds, parent company
building, manufacturing
tuations are estimated, if applicable.
guarantee and consequential damfacilities or production unit
29. Provide details of transportaages).
many times has a different
tion costs.
To recap the previous parapoint of view on CAPEX
30. Provide details of any temgraphs on front end / conceptual
porary roads, temporary camps / acestimating methods, this type of
commodation that may be required.
capital cost estimates are compiled
31. Provide details of costs specific to vendor asand used for many different reasons, including the folsistance, spare parts and initial chemicals are estimat- lowing activities:
ed.
• Control and monitoring of capital expenditures
32. Provide supporting documentation for demoli- / Cost control – Pro active involvement in reducing /
tion and any hazardous material removal.
forecasting costs
33. Determine the percentage of pricing that is
• Proposal evaluation / Bid check reviews
based upon “firm” quotes.
• Choice from among alternate layouts / designs /
34. Be prepared to discuss QA/QC requirements,
process configuration
NDT, inspection costs and acceptance provisions.
• Board of Director Approval / Appropriation of
35. Provide any other project specific details that
funds (A.F.E.)
may be applicable, such as warranty issues, what is
• Compilation of bids / proposals
the warranty period 12 months or two years.
• Funding / Feasibility studies
36. Explain insurance and contractors fees.
• Choice from among varying site / manufacturing
37. Be prepared to discuss a “modular” construclocations / countries
tion application.
• Choice of alternate investments methods, lease
Copyright © 2017 Compass International, Inc.
SECTION A1 | 23.
or purchase / toll manufacture, 3rd party outsourcing
• Claims mitigation / Change order control
• Value engineering baseline cost model
• Future benchmarking points / data
Designing and constructing new process related
facilities is a risky undertaking, the individual preparing these CAPEX capital cost estimates should
understand the ramifications / risks that could influence and impact the final cost of the EPC effort, these
risks include:
• The state of the economy
• Federal and local Government grants / incentives
• Technology being used (proven or first of its
kind)
• Sophistication of specifications (high end or
industry standards)
• Schedule requirements
• Current market conditions
• Union or Open Shop labor utilization
• Productivity of the workforce
• Weather conditions
• Ambiguous site conditions (rock or high water
table)
• Strikes / lock-outs
• Material / Major Equipment shortages
• Accidents at the jobsite or accidents to equipment in transit
• Type of contract
• Estimating errors
• Joint Venture arrangements
• Possible bankruptcy of key players
• Contractual issues
All of the many partakers in the efforts of compiling front end engineering studies and estimating,
planning, funding, constructing and successfully starting up a new or re-vamped building, manufacturing
facilities or production unit many times has a different
point of view on CAPEX (capital cost estimating) i.e.
Major Activities To Consider
IN THE CAPEX, I.E. ESTIMATING PROCESS
#
ACTIVITY
ESTIMATING INPUT
1
New needs or demand, for new product / new or expanded or Refer to Section 2 and 3 for appropriate
re-vamped building, manufacturing facility or production unit.
estimating method to be utilized.
2
Definition of project goals, scope and mission statement.
3
Conceptual engineering, planning and Front End / feasibility study
Refer to Section 2 and 3 for appropriate
including possible Front End estimate.
estimating method to be utilized.
4
Submittal of Approval of Expenditure – AFE. Package.
5
Commencement of detailed engineering effort if project is approved.
6
(Optional) Possible milestone to compile CAPEX estimate.
Refer to Section 2 and 3 for appropriate estimating method to be utilized.
7
Production of engineering deliverables.
8
(Optional) Possible milestone to compile CAPEX estimate.
Refer to Section 2 and 3 for appropriate estimating method to be utilized
9
Start of Procurement effort.
10
Start of Construction effort.
11
(Optional) Possible milestone to compile CAPEX estimate.
Refer to Section 2 and 3 for appropriate estimating method to be utilized.
12
Completion of Construction effort.
13
Start up / handover of completed project.
14
Close out report.
15
Collection of historical data for future CAPEX estimating / benchmarks.
Copyright © 2017 Compass International, Inc.
24. | SECTION A1
how to go about it. This section and the subsequent
sections go over a “proven” method for compiling
these important project related documents. By following the steps indicated in the following sections the
reader should be better served to understand and complete these types of cost estimates. Construction is an
important industry employing hundreds of thousands.
The cost of construction has an impact on everyone;
the cost of construction is passed on to consumers via
price increases on every product purchase.
Optimization of the construction process especially the CAPEX estimating effort is a win-win situation
for everyone, savings can be ploughed back into the
economy, providing new opportunities for companies
and individuals. The engineering, procurement and
construction of a new or upgraded building, chemical plant, or manufacturing facility more often than
not, calls for a significant capital expenditure possibly
over a two to three year period prior to any return on
investment (ROI). In view of the fact that the requirement of new capital i.e. CAPEX dollars for the
above capital projects is initiated by market forces
/ evident demand, the new or re-vamped building, manufacturing facilities or production unit is
planned to comply with the stated goals of the new
or re-vamped building, manufacturing facilities or
production unit, that were initially spelled out by the
client. The following table lists some of the major
activities that need to be considered in the CAPEX,
i.e. estimating process.
If we look at the execution of a CAPEX project
from the end users standpoint we can concentrate /
shed some light on the responsibilities and normal
work effort of the various players that are required to
complete the engineering, procurement construction
of a CAPEX project.
Facility End Users / Clients have to appreciate
that there is no particular best method in executing a
CAPEX project, all methods have pluses and minuses associated with them, and hopefully some of
the information contained in the following sections
will shed some light on the “best” project approach
for the reader of this publication.
Copyright © 2017 Compass International, Inc.
MAIN CATEGORIES OF CONSTRUCTION:
The construction industry is a “hodgepodge” of assorted sectors, that all have a common thread, i.e.
see the “players listed below: The annual cost expended on these construction categories is discussed
in some of the following sections of this publication.
• Industrial Construction (refineries, chemical
plants, power facilities etc)
• Civil / Infrastructure and Heavy Construction
(Bridges, Roads and Dams etc.)
• Institutional Construction (Public Buildings)
• Commercial Construction (Hotels, Shopping
Malls and Offices)
• Residential Housing Construction (Apartments
and Single Family Homes)
• Repair and Remodeling Construction
MAJOR PLAYERS IN THE
CONSTRUCTION PROCESS:
The vast majority of CAPEX projects will include
all or some of the following players:
• Owner / Client Companies
• Owner / Client Companies (Corporate Engineering Group(s))
• Engineering, Procurement and Construction
(EPC Firms)
• Architectural and Engineering (A/E) Firms
including Structural and MEP firms
• Design / Build Companies
• Construction Managers (CM) Firms
• General Contractors / Prime Contractors
• Specialty Sub Contractors (L & M or Labor
only)
• Vendors / Material and Equipment Suppliers
The CAPEX cost elements for a new or revamped building, manufacturing facilities, or production unit will include the costs associated with
the effort to create the new or re-vamped building,
manufacturing facilities or production unit items to
be reviewed or considered include:
• Land purchase or lease
• Financing cost(s)
• Front-end studies
SECTION A1 | 25.
• A/E fees, detailed design
• Construction Management fees
• Procurement of material and major equipment
• Construction and startup of the completed facil-
typically be subject to change during the projects’
life cycle. However this resource / tool can be used
to explain or support the decisions and the genesis
of the project(s) scope and how it was developed
ity
and possibly modified. The front end / conceptual
• Owner’s cost items
estimate can be used as the audit trail of why it was
• Operation and maintenance costs
adjusted. It can provide the history of what was
A large amount of additional information and
originally scoped out and estimated / planned versus
data, of course, needs to collected and evaluated,
what was actually engineered and built. Used corfrom any design or reports that have been previously rectly the conceptual estimator can benchmark his
completed. In most cases this information can be
or her conceptual estimating library with the return
found / or is discussed in the following sections of
cost / man-hour data from the completed project
this publication. The following is a summary recap
and calibrate their current library for future front
and pointers for compiling accurate Front End Capi- end / conceptual activities. Remember that the Cost
tal Cost Estimates / Conceptual
Estimator / Cost Engineer is
CAPEX estimating efforts:
a vital member of the Project
• Produce an estimate plan,
management team, his or her
Forecasting the cost of a CAwho does what, what are the
recommendations and advice
PEX project(s) both preciserequired deliverables, when is the
can have a major impact on the
ly and in a timely manner
information required, perhaps the
future of the EPC project. Some
of future new or revamped
man-hours that have been budgetfinal thoughts related to estimatconstruction projects is
ed for the estimating effort needs
ing skills, ethical considerations
essential to the continued
to be indicated, rather than leaving
and basically the estimating
existence of any business
this as an open issue.
effort specific to consistently
• Develop and use standardized
producing CAPEX estimates,
estimating forms and spreadsheets.
which were discussed previ• Follow the standard practice
ously in this section. Forecastfor compiling a capital cost estimate, review scope,
ing the cost of a CAPEX project(s) both precisely
visit the site (if possible), take photographs, perform and in a timely manner of future new or revamped
take-off calculations, assign appropriate material, la- construction projects is essential to the continued
bor and indirect costs to quantity take-off’s and sum- existence of any business (Owner / operating commarize results for review with senior management.
pany or contracting company). Cost estimators and
• Ensure that capital cost estimate is fully qualicost engineers furnish this essential skill set (ability
fied and documented / described, including basis of
and wherewithal to produce CAPEX cost estimates)
estimate, exclusions, assumptions and the listing of
and developing data / information by compiling and
engineering deliverables that the estimate is based
transforming the engineering data / deliverables
upon.
(sketches, drawings and specifications) into the
• List alternatives or different case studies or
completed cost estimate. This cost estimate (docuany value engineering concepts that could positively ment - data source) is a road map of the resources
impact the capital cost estimate.
(labor and materials) required by the project execuConceptual / Front End cost estimating is an ex- tion team to establish if a proposed project / scope of
cellent business resource / tool, as we all know many work (to formulate a proposal or lump sum bid for
times the scope and timing of capital projects will
a specific project) or if future manufactured goods /
Copyright © 2017 Compass International, Inc.
26. | SECTION A1
products will be advantageous, i.e. profitable or have
an adequate ROI / EBITDA. From a contractor’s
point of view, the cost estimate will establish the bid
price of performing the work, contractors need definition (i.e. drawings and specifications that perhaps
are more than 50% complete) to adequately produce
lump sum bids. On the other hand, owner’s cost
estimators / cost engineers need to ensure that they
have a total understanding of the scope. They do not
need to go into as much detail as a contractor, they
need to be able to compile semi-detailed estimates
that are a combination of take-off’s and allowances
that adequately captures the intent of the scope of
work statement.
OPTIMIZING THE CONCEPTUAL ESTIMATING
EFFORT:
Conceptual estimating is a complicated topic. The
major challenges to be overcome to ensure the conceptual estimate is “complete” and that the conceptual estimate reflects the known scope of work are as
follows:
• The scope of work: An ill defined scope usually
results in a flawed conceptual estimate, improving
the scope definition effort and place greater emphasis on the front end definition phase of a project will
result in a more defined scope package.
• The quality of the current engineering data:
Greater emphasis should be placed on improving
any engineering deliverables that come out of early
engineering studies i.e. FEL-1 and the FEL-2 effort.
• A new technology or projects with significant
challenges such as large complex overseas projects
should be looked at more closely than standard projects being constructed in North America or Western
Europe.
• The skill set of the estimator(s): It is vitally
important to utilize “experienced” estimators; it is
many times counter productive to use “greenhorn”
estimators in a lead role.
• The estimating method used in compiling the
estimate and its historical past performance: The estimating methods should be reviewed on a constant
Copyright © 2017 Compass International, Inc.
basis and fine tuned with latest feed back from completed projects to optimize the estimating output.
• The time allowed in compiling the estimate:
An estimate plan should be developed, assigning
roles and responsibilities and timing needs.
• The issues of how unknown scope, unlisted
items, scope growth are recognized and allowed for
in the body of the conceptual estimate.
• The required accuracy of the conceptual estimate, related to the owners requirements for obtaining additional CAPEX funding.
• The estimate review process: The project team
needs to allow enough time to perform a line by line
estimate review of the estimate basis and pricing
philosophy that was used in compiling the conceptual estimate.
• How contingency and risks are captured and
incorporated into the conceptual estimate.
Using some or all of the ideas presented in
this section will hopefully improve the conceptual
estimating effort and improve the accuracy of the
conceptual estimate output.
SECTION A2
Capital Cost Estimating
Fundamentals
Estimating Fundamentals: “The actions involved in assembling a CAPEX estimate related to the
Engineering, Procurement and Construction (EPC) effort. The procedure includes having the understanding of the different types of CAPEX estimates employed by individuals employed in the Manufacturing, Chemical and Pharmaceutical sectors of the construction industry. This includes understanding various estimating terms, estimating methods, quantity takeoff approaches and generally
all the steps required to produce a CAPEX estimate”.
C
cility. Producing CAPEX estimates and controlling
onstruction professionals all around the
these subsequent budget(s) necessitates a wide-rangworld are continually challenged to ening and coordinated effort, involving various skills
gineer, (design) procure and construct
various process / manufacturing facilities. – the task of CAPEX estimating requires engineering, procurement, construction and estimating / foreThey are tasked with constructing under budget and
within a specific time limit, and of course the facility casting input, this will be described in some detail in
this and the following sections of this database.
has to work properly and be safe. This database has
Owner companies involved in major capital
been produced to provide construction professionals
projects / capital expansions refer
with a front-end estimating tool
to their annual expenditures as
that will allow them the ability to
Engineering, Procurement
CAPEX programs. It goes withproduce more accurate and comand Construction effort it is
out saying that the execution and
plete conceptual / front-end estithe
following,
a
shopping
management of these programs
mates in less time.
list of all the cost items, lais critical to the future health and
The activity of Capital Cost
bor,
materials,
engineering,
growth of these organizations. A
Estimating is a significant and imCAPEX project is the conduit by
portant undertaking in the projects field in-directs etc, required
to meet the requirements of
which the business expands and
life cycle i.e. Project Managea
scope
of
work
statement
establishes new or retains current
ment and execution (Engineering,
written or verbal
market share or future penetration.
Procurement and Construction)
A CAPEX project or EPC Project
– (EPC effort). All practical efforts
(as they are many times referred
must be made in the early stages
of a CAPEX project to accurately estimate the future to) can be described as a unique one time effort
to engineer, procure and construct a manufacturproject; it should be based on the current and aning / process plant / chemical facility or something
ticipated scope of work of the specific project. The
similar. “What is a capital cost estimate”, well to
capital cost estimate (CAPEX) determines the total
individuals involved in the big picture “EPC” Encost of the project. As the detailed design, procuregineering, Procurement and Construction effort it is
ment and construction is completed the capital cost
the following, a shopping list of all the cost items,
estimate can be continually refined at various major
milestone(s) to forecast the cost of the completed fa- labor, materials, engineering, field in-directs etc,
Copyright © 2017 Compass International, Inc.
28. | SECTION A2
required to meet the requirements of a scope of work
statement written or verbal (drawings, specifications,
execution plans, sketches etc,), it is more or less the
capturing / collection of all the necessary work items
in order to make the planned facility work in a safe,
cost effective way.
Producing a CAPEX estimate takes a lot more
art than science, there is no substitution for experience. An estimator must exercise significant business savvy / estimating knowledge in compiling a
CAPEX estimate. As more project data / design information is produced, generally the overall accuracy of the estimating deliverables / product increases.
The three keys to successful Project Management are: # 1) is it safe; does the facility produce
what it was planned to produce in a safe and controlled method? # 2) was it built for the value we
estimated? # 3 was it built on time, in accordance
with the pre-established schedule? Capital cost
estimate(s) can be one of the following three categories – or hybrids of these. The data contained within
this particular section endeavors to touch on items 1
through 3 below, with perhaps more emphasis item
# 2.
STEP 1
Knowledge
of Scope /
Site Visit
STEP 2
Take-Off
Activities
1. Front End / Order of Magnitude Capital Cost
Estimate. (Little or no engineering has been completed)
2. Preliminary Budget / Funding for execution
Capital Cost Estimate. (Perhaps 10%-20% of the
engineering has been compiled)
3. Control / Definitive / Bid / Lump Sum
Capital Cost Estimate. (Possibly 50% or more of the
detailed design / engineering has been completed)
The initial CAPEX Estimate be it a Blue Sky /
Order of Magnitude or a Scale up Capacity estimate
is either the initial pathfoward towards a profitable
and sustainable project / future profitable asset or
the initial step towards a potential business failure
– once a number is published it is difficult to re-visit
and modify this number especially in the case where
the Business Unit has used the initial number in
there forecasting / economic models. The following
diagram depicts the four basic steps / approach that
is common to all estimating efforts, this four step
approach will be described in more detail in this section and subsequent sections of this publication.
Items and questions that need to be asked and
considered prior to commencing the CAPEX esti-
STEP 3
Compiling
of Estimating
Data
COMPLETION OF
ESTIMATING EFFORT
(Presentation to Management)
APPROVAL OF CAPEX PROJECT
Copyright © 2017 Compass International, Inc.
STEP 4
Summarization
SECTION A2 | 29.
mating effort includes:
eventual approval, after approval utilize estimate as
• Has any preliminary engineering / design
a control tool to monitor progress of the work.
deliverables been produced specific to this new /
Owners and contractors have to understand that
proposed project?
there is no specific method in executing a CAPEX
• Have any PCA’s (Property Condition Assessproject, there are perhaps dozens of methods or ways
ment) been produced, many times they have?
to execute a project. All methods have pluses and
• Have any Phase One Environmental Site Asminuses and risks associated with them. Hopefully
sessments been completed in the last 3 – 5 years?
some of the data and methods contained in the fol• Who is going to develop a scope of work (corlowing sections will help the reader in understandporate engineering, the estimating group or a third
ing these complex issues that need to be considered.
party engineering firm)?
Industrial Construction (refineries, chemical plants,
• What type of facility is being considered /
pharmaceutical facilities, power facilities etc.) has
being - engineered, procured and
unique features and requireconstructed?
ments. Assembling and calibrat• Is the project a grassroots faing the capital cost estimate for
There is no common decility or is it expansion or upgrade?
these types of facilities are comnominator when it comes
• What type of estimate is
plicated tasks; the initial sections
to a standardized estimatrequired (level of accuracy) - estabof this publication should be a
ing methodology - different
lish an estimating plan?
good “starting point” data source
countries / different compa• What engineering deliverables
for individuals tasked with this
nies / different industry secneed to be produced to match the
responsibility. The following
tors all use different terms /
estimating requirements? Who is
sections should provide the varinomenclature for compiling
tasked with the production of these
ous fundamentals and steps that
and discussing CAPEX
engineering deliverables?
are required in order to compile
estimates.
• How should the estimate
a logical and hopefully accurate
be formatted - structured – WBS
CAPEX estimate. As was men– COA?
tioned previously there is no
• What are the timing and staffing needs to meet common denominator when it comes to a standardthe goals of the estimating effort?
ized estimating methodology - different countries
• Develop the CAPEX cost estimate following
/ different companies / different industry sector all
the 4-step approach depicted above.
use different terms / nomenclature for compiling and
• Who will get quotes from vendors, (corporate
discussing CAPEX estimates. There is no standard
engineering, and the estimating group or a third
name or classification / approach. Again a lot of the
party engineering firm)?
issues related to the basics of CAPEX estimating,
• Document estimate basis (inclusions and exclu- CAPEX estimating fundamentals are discussed in
sions – assumptions) include a listing of engineering some detail in Section 1, 2 and 3 of this publication.
deliverables, with the completed CAPEX estimate.
Construction (i.e. the EPC cycle) is a perilous
• Consider contingency, currency impact, escabusiness, to continue in business and to remain in
lation, E / I programming, commissioning and any
the black, organizations need to lessen the inhervendor assistance.
ent risks associated with the construction industry
• Check the estimate math, completeness, quality (labor shortages, price increases, changes in scope,
and accuracy needs.
failure to communicate, disputes, late payments, bad
• Present estimate to management for review and weather and strikes to name but a few are some of
Copyright © 2017 Compass International, Inc.
30. | SECTION A2
the challenges to be faced) the following is one of
sumables, including construction equipment requirethe many checklists scattered throughout this publiments i.e. cranes, welding equipment etc, and the
cation – that hopefully will mitigate some of these
subsequent maintenance of this equipment and the
risks.
field establishment i.e. (Division 1 or General ConThe (CAPEX) capital cost for the Engineering,
ditions / or Preliminaries as it is called in Europe):
Procurement and Construction (EPC) project(s)
• Other items could include contractor’s fees,
comprises of all the activities and expenditures asso- bonding; insurance (BAR and workers compensaciated with the primary establishment of the specific tion) and local state taxes, (VAT on overseas apbuilding, plant or facility: this will consist of:
plications), tariffs and import duties, ocean freight,
• Front End Economic studies - consist of owner currency fluctuations specific to the CAPEX project.
front-end initial costs including inA further item that may need
ternal ROI investment studies and a
to be considered includes: exmarketing analysis, needs analysis,
pense items (relocation or refurThis
publication
is
focused
this may entail the corporate engibishment of equipment), demolion the Front End / Order
neering group compiling various
tion work, and owner provided
of
Magnitude
Capital
Cost
front end case studies of the proequipment / materials, furniture
Estimates,
basically
the
posed future project, the accuracy
and fixtures, spare parts, initial
most difficult Capital Cost
of these “first / blue sky” estimates
chemicals and vendor assisEstimate
to
compile,
bewould be accurate to perhaps +/tance. The extent of each of the
cause of the lack of informa25% - 30%.
above cost elements of course is
tion
/
definition
and
usually
• Land purchase (if working on
based on the type of facility (i.e.
“limited”
time
and
staffing
a new property) - The real estate
unique – first of it’s type, needresources to complete the
purchase or leasing cost may need
ing utilities or continuing ongoestimating
effort
that
is
on
to be included with the CAPEX
ing production facility, that has a
hand at this point in the EPC
(including any remediation, site
history and has an existing utility
project(s)
life
cycle.
improvements and modifications
infrastructure and spare parts
that may be required):
inventory), magnitude or scale of
• The Detailed Design Effort: operation – small operating unit
The Architectural - Engineering (A/E) (EPC) design or a large operation with 100’s of plant operators,
effort (production of specifications and design draw- it’s planned operation and approach i.e. continuous
ings and project deliverables) including reproduction operation or some other time frame, control philosoexpenses and travel costs associated with completing phy and the actual location of the CAPEX project
the engineering / architectural scope.
(s).
• Project Management / Construction ManageThis publication is focused on the Front End /
ment and Procurement activities associated with
Order of Magnitude Capital Cost Estimates, basicompleting the CAPEX project.
cally the most difficult Capital Cost Estimate to
• Field Construction / Site In directs / Construccompile, because of the lack of information / defition Equipment / Field Establishment - The actual
nition and usually “limited” time and staffing refield installation / construction work, associated with sources to complete the estimating effort that is on
major equipment, bulk and engineered – commodihand at this point in the EPC project(s) life cycle.
ties and materials, the site in directs including field
The execution phase of a capital project involves a
supervision related to the construction scope, this
series of activities and steps covering a wide range
includes trailers, storage sheds, small tools and con- of management, engineering, procurement and
Copyright © 2017 Compass International, Inc.
SECTION A2 | 31.
construction functions. One of the major elements
/ work items is the production of a Capital Cost
Estimate(s) whether that estimate is a conceptual
(limited engineering definition), or detailed (a large
amount of engineering has been completed or is
available). The basic tenet of Project Management
and it’s sub elements (i.e. Project Control – Cost
Estimating) is to provide the optimum technical and
business solution to the business unit planning a new
plant / 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 hand over the optimal business evaluation at the front end stage(s) of CAPEX project,
the scope, needs to be to some extent defined, some
front end / preliminary design work needs to have
been completed, various manufacturing / production
schemes need to have been considered and scoped
out. Selecting and agreeing on a new Chemical Facility / Manufacturing location is a challenging task,
that needs the input from corporate engineering,
corporate finance staff and the business unit’s senior
management that will take possession of and operate
the completed facility. More importantly, it is one in
which the cost estimator can play a key role in advising / finalizing / selecting the final location(s). What
are some of the key site selection factors that need to
be analyzed and estimated? Some of these issues and
factors are listed below:
• What is the 5 - 10 - 15 + year production plan
for this facility / and or product?
• Will we need to get any special permits from
Local or National Government agencies?
• Is this where future growth for this product will
occur, i.e. South E. Asia or South America?
• Were should the new facility be built? At an
existing company owned facility, on a new grass
roots location, or should we renovate an existing
facility to accommodate this new facility and future
product demands?
• Are there differing manufacturing processes
that can be used, are there cost differences in the
operating costs of these processes?
• Will this facility new or add on require new
services and utilities?
• Should the capital cost estimate include land
purchase, any demolition or site remediation costs?
• Will the new facility be given relocation grants,
training assistance, tax holidays and or incentives
by the state or country that the new facility will be
located?
• Should we consider future expansions in this
CAPEX cost estimate?
• Will we need to train / educate the plant operator?
• Will the new plant require state of the art control systems, i.e. Delta V or similar or can we obtain
a competitive advantage by using low cost labor to
operate the plant and minimize costs on the I/C account?
These questions and many more will have to be
analyzed, the first activity on the this Site Selection
Procedure / Process is to come up with a Front End
Conceptual Engineering study that perhaps gives 3
or 5 execution options together with a Blue Sky /
Order of Magnitude Cost Estimate with a +/- 25%
accuracy. Hopefully some of the benchmarks and
data points contained in this publication will assist
the reader in moving forward on this initial estimating requirement and it will be useful in the next cost
estimating stages. CAPEX capital cost estimating
completed in a business like manner is one of the
more significant (milestones) activities of the above
mention execution phase. Project specific and accurate cost estimating is the hallmark and central issue
for a CAPEX project success. A high (overstated)
estimate could be the reason to cancel a future profitable EPC project, while a (low) understated CAPEX cost estimate containing basic errors and one
that has missing scope items in contrast can lead to
significant cost overruns that cause the business unit
serious problems (this situation can boomerang back
on the cost estimator / project manager that compiled this estimate).
All CAPEX capital cost estimates have a common goal, to provide the path forward for manage-
Copyright © 2017 Compass International, Inc.
32. | SECTION A2
ment action - a go or no-go decision tool, how much produce milestone schedule
will this project cost, what is the ROI, can we buy
• Management Review and Approval (Approve
this product from a “toller”, does it make economic
– yes or no)
sense to build this proposed facility, should we ex• If yes, proceed with production of design
pand this facility or at another facility, where should deliverables, issue ASAP approved for construction
we locate this new manufacturing plant in North
(AFC) / issue revision “O” estimate / estimate basis
America, Europe or in South East Asia? Questions
document
and more questions that need to be resolved, of
course the cost estimator can take a leading position WHAT IS A CAPITAL COST ESTIMATE / HOW IS
in this decision making process. A CAPEX project
IT COMPILED / WHAT ENGINEERING INFORMA(this could be any of the following), a process plant, TION IS REQUIRED / HOW ACCURATE IS THE
a manufacturing / production facility, a resins plant,
RESULTING CAPITAL COST ESTIMATE
a food processing facility, an offshore pipeline, a
The “specific” activity of capital cost estimating is
state of the art - pharmaceutical facility, a research
characterized as the collection / assemblage / of all
and development building, an API facility, an animal the Engineering, Procurement and Construction (detesting / research facility, an alumina smelter, a
sign deliverables – drawings and specifications and
petroleum refinery, an industrial chemical plant, or a other project related reports) related work, including
power plant or the upgrade, revamp
Construction Management, Comof any of these or similar type capimissioning, Start Up, Validation
tal projects, plus numerous general
(if required) items / enumerated
All CAPEX capital cost estibuildings / facilities such as hoscosts and allowances, i.e. physimates have a common goal,
pitals, airports, universities, public
cal work / installation activities
to provide the path forward
buildings and offices etc.:
that are project specific or the
for management action
actual effort / endeavor included
THE CAPITAL ENGINEERING /
within a pre-approved / estabCOST BUDGET PROCESS
lished scope of work (project baENGINEERING AND CAPITAL COST ESTIMATING
sis) / project brief. The major equipment, engineered
This effort consists of the following tasks that need
materials services, labor and bulk materials and in
to be completed:
directs to be furnished and work to be completed,
• Project Commencement (Initiation / Kick Off
that matches the projects intent and scope of work.
meeting)
The CAPEX capital cost estimate must provide suf• Scope Definition / Scope Development (usually ficient accurate information to establish its’ authenthe first item to be started)
ticity and it should contain an adequate amount of
• Compile listing of required engineering delivspecific details to permit future trending activities,
erables
together with future ongoing expenditure and prog• Determine an estimating plan
ress analysis. The activity of Capital Cost Estimating
• Conduct a site visit
is a procedure realized in four basic and important
• Quantity Take Off’s
activities that need to be completed. These activi• Compiling / Solicit and obtain quotes from
ties are as follows (note these four steps are depicted
vendors and sub contractors if time permits for maearlier in this section):
jor equipment and other key scope items
• Summarization and calibration of estimate to
match site / project specific location conditions,
Copyright © 2017 Compass International, Inc.
SECTION A2 | 33.
Capital Cost Estimating
FOUR BASIC STEPS
ITEM # STEP
DESCRIPTION
1
Knowledge of Scope / Site Visit:
Familiarization with SOW. 2
Take-Off: Quantifying all SOW items.
3
Compiling: Pricing out the work items
4
Summarization: Finalizing the CAPEX estimate
Reviewing documents and scope issues, becoming familiar
with the goals of the proposed project, visiting the proposed project location (if time / estimating budget permits).
Quantifying, collection and grouping the physical quantities of work, preparing a detailed listing of all materials, equipment
and labor required for the proposed project, basically the
take-off is a “shopping list” of all the required scope items / work items that are depicted on the available drawings or that
are described in the scope of work statement.
Applying the take-off and the data contained and described.
In the scope of work statements with appropriate cost values
man-hour units to the items of work earlier collected in the
take-off phase. Selecting the value / amount to be charged to the owner / client so as to completely include all cost elements
including engineering, procurement, construction, productivity,
waste, square foot or M2 units, risk items, contingency and profit and all other project related cost elements such as
overheads needed to successfully execute the project and
realize a profit, this compiling or formatting effort could also include assigning the work to a work breakdown structure.
Compiling and calibrating the capital cost estimate into a final
capital cost estimate or the following “bid or proposal”
document, includes assigning contingency funds, risk, profit margin and possibly shared saving.
Project deliverables / documents or reports known
as “Capital Cost Estimates” are the benchmark /
road map against which the project(s) / cost execution / performance on a specific project is calculated
and measured and perhaps used as a future metric
or benchmark. The term “capital cost estimating”
as its description signifies / implies or suggests, is
a thought-out / educated approximation of value or
worth of a product / project or activity (cost estimators with ten or more years in this business can
focus in on the main cost drivers in a CAPEX cost
estimate and can usually come up with an opinion whether the cost estimate is accurate or not), a
specific method / approach or system for determining “the final cost” of a specific product or project.
In order to adequately estimate, compile and as-
semble an inclusive front end or detailed capital cost
estimate correctly, (as per the four basic activities
described above) it is essential that the cost engineer
/ cost estimator discernibly comprehend and “buy
into” the previous described “the four step estimating process” together with the basic fundamentals
of capital cost estimating methods / techniques
described in the previous section(s) A – 1 and this
section. The following subsections give a synopsis
of these needs / essentials; they include the following important issues:
1. Understand key cost estimating terms and
nomenclature i.e. definitions and common cost estimating terms.
2. Capital Cost Estimate categories (OOM, preliminary estimates, lump sum bid or validation type
Copyright © 2017 Compass International, Inc.
34. | SECTION A2
estimate etc), applications and uses.
3. Development of the estimating plan, who,
what and when.
4. Comprehend and have a total understanding
of the “scope of work” to be estimated.
5. Develop a listing of all components of a capital cost estimate, which include materials (bulks),
installing labor, major equipment, and detailed engineering specific costs, construction management,
validation services if required.
6. Format the CAPEX estimate to the Operating Companies - client’s code of accounts (C.O.A. /
W.B.S.) Breakout estimate into direct and in-direct
cost elements be project specific (breakout into major E.P.C. categories / scope items)
7. Indirect Cost Elements. (Not part of the final
project item, temporary items).
8. Consider and assign overhead costs, contingency, profit and risk items.
9. Value Engineering / Functional Benchmarking.
10. Utilization of capital cost estimate document,
management tool, reporting document, procurement
and schedule basis, the bench mark basis and part of
closeout package.
KEY CAPITAL (CAPEX) - COST ESTIMATING /
INDUSTRY NOMENCLATURE
The listing below provides a generic description of
cost estimating / engineering terms, while not all-encompassing. These are some of the basic terms and
nomenclature encountered in the cost estimating /
cost engineering function: Refer to section A -3 for
specific CAPEX estimating methods.
Key Nomenclature
COST-ESTIMATING / ENGINEERING TERMS
TERM
DESCRIPTION
Accuracy:
Acknowledgment:
Addendum:
ACPH:
Allowances:
Alternate:
Amortization:
Ampoule:
API:
A.Q.:
Assets:
Backlog Order:
The required actual range of accuracy is a report of the least expected cost and the highest
expected cost, judged against to the most probable cost, many times depicted as a +/- percentage
value.
A standard form used by a vendor / supplier to confirm that the goods / supplies / materials / equipment have been received.
A formal change or drawing modification provided prior to the
actual date proposals are opened. An addendum may explain or revise the bidding documents by
making additions, eliminate scope items, clarify the scope of work, or modify the bid package.
The number of times per hour the entire air volume of a space turns.
Supplementary funds included in a capital cost estimate to cover the cost of known but
indeterminate scope requirements for an individual activity or work item to be performed.
A formal instruction from the A/E, owner / client for the cost of adding or removing a scope of work item from the proposal / bid documents. The cost of adding a scope item is usually
identified as an add alternate (put), the cost of pulling out a scope item is known as a deduct or alternate (take) in construction industry.
A plan to pay off a financial responsibility / loan according to some agreed timetable.
A small glass vial sealed after the filling process is completed.
Active Pharmaceutical Ingredients.
Any quantity.
Cash in bank, petty cash, stocks, outstanding invoices, bonds, investments, plant equipment,
stock / inventory, property, basically what the company owns.
Orders that have been received but for some reason have not been accepted by the buyer.
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TERM
Bare Cost:
Batch Process: Battery Limit:
Bid Documents:
Bid Form
Bid Opening:
Bid Price:
Binder:
Bulk material:
Burden:
C & F:
Calibration:
Capital (Budget):
Capital (Direct Cost):
Cash (Flow):
Change Control:
Change in scope:
DESCRIPTION
The bare cost of a project includes all costs except for overhead and profit margin.
A manufacturing process that processes / produces a specific quantity of product.
Many times known as I.S.B.L. (inside battery limits). An imaginary border around an operating
plant / production unit / manufacturing area (usually depicted on plot plans as a dotted or hatched
line). Or an area that encompasses one or more geographic limits, imaginary or actual, surrounding
a plant or unit being engineered and / constructed or operated, established many times for the specific reason of providing a means of specifically / accounting for / designating / recognizing / locating certain area’s / operating area’s of the plant, interrelated groups of equipment
or related facilities. On some occasions an O.S.B.L. unit may support 2 – 5 operating units (I.S.B.L.)
or more. Usually refers to the actual manufacturing / chemical processing unit / area and includes
all process / chemical production major equipment, and excludes such other shared services / amenities / utilities as storage / loading areas, tank farms, utilities, roads, admin buildings,
warehouses or other (shared) supporting facilities, these items are usually known as off-sites or O.S.B.L.
Instructions to bidders, information / project data and design deliverables made available to
bidders, bid forms with all drawings and specifications, and proposed contract documents,
including all addenda distributed prior to or during the bidding period.
A form provided / handed over to a bidder, signed and tendered as the basis of the bidder’s
proposal.
A prescribed meeting held at a specified location, date and time at which sealed bids are opened, tabularize and read out loud.
The proposal values i.e. offer to complete a specific scope of work.
A temporary but binding commitment by an insurance company to provide insurance coverage.
Basic materials procured in lots; in general, no exact item is distinguishable from any other item
in the lot. These items can be purchased from a standard list description and are bought in
quantity for allocation as necessary. Examples are bricks, reinforcement, pipe, conduit, fittings
and cable.
Includes local taxes federal, state and general insurance requirements, fringe benefits and union contract responsibilities. The actual cost of sustaining / maintaining an office (Main or branch) with
support and management staff other than specific jobsite work crews / field force.
Cost and freight.
The demonstration that a particular instrument or device produces results within specified limits by comparison with results produced by a reference or traceable standard over an appropriate range of measurements.
An organized modus operandi for cataloging, evaluating, and grading future capital expenditures for the purpose of evaluation and selection, combined with the assessment of the financing
necessities / cash flow.
The value / real cost of actual material and labor required / concerned in the fabrication,
installation and construction of buildings / facilities / and manufacturing plants.
The cash stream of money into or out of the ongoing / future project(s) or production operations. The calculations / sum or values in any time phase of all money receipts (invoices) and expenses.
The process / procedures used to denote for all changes that are made to a manual or
computerized tracking system.
A change in intention specific to the scope of work or plan, or program that results in a pertinent disparity from the terms of an approval by senior management, i.e. AFE document.
Copyright © 2017 Compass International, Inc.
36. | SECTION A2
TERM
Change Order:
Claim:
Clean room:
Contingency:
Contract (Types):
Cost of Capital:
Cost Control:
Cost index:
Continuous Process:
DESCRIPTION
A contractual document requesting a scope modification or adjustment. A written (formal) change
request made by the client or the A/E firm to the design deliverables or the completion date following contract award. By and large, all the parties that are associated with the construction contract must buy in to the subject change order for it to be an approved change order.
A request for extra payment, for additional / modified scope.
A specially engineered and constructed room that is control to mitigate airborne particles /
temperature / humidity ISO 14644 – 1 defines the requirements of a clean room.
A sum of money supplementary to the capital cost estimate to allow / compensate for errors that knowledge shows will probably be required, refer to later section for additional details.
A written or oral agreement between two or more parties / entities to render a “specified” act that is enforceable by law. A legal agreement between two or more participants /
parties, which may be of the kinds detailed below or a combination of the following:
• A reimbursable cost plus contract.
• Negotiated contract.
• Fixed-Price / Lump Sum Hard Money type contract.
• Design / Build contract.
• A Bonus-Penalty contract.
• A G.M.P. (Guaranteed Maximum Price) contract.
• A Schedule of Rates contract / Unit Price contract.
• Concession contracts.
• BOT build, operate, and transfer type of contract.
• Major Fortune 500 type companies, many times have there own forms of contract.
• ICE / RIBA / JCT / AIA / AGC / EJCDC / FIDIC contracts.
• Plus numerous other applications.
The cost of borrowing money / loans from internal or external sources.
A cost control system procedure is used to control / monitor actual V’s budget cost expenditures. The submission of measures / work actions / flow to follow the advancement / execution of an (EPC) engineering procurement and construction projects:
Cost Engineer / Estimator: An individual / in many cases an engineer whose expertise and knowl
edge are called upon to compile and produce the following estimating / cost engineering
deliverables:
• Capital cost estimating (CAPEX -through all phases of construction and all types of estimates, i.e.
Front End thru Detailed Estimates / Lump Sum Bids).
• Change order production and related audits.
• Quantity surveys and related audits.
• Cost engineering reports (bi-weekly and monthly).
• Project control (trending) and administration activities.
• Cash flow projects / management / forecasting.
• Value engineering (ongoing though project life cycle).
• Project / construction management assistance.
• Claim production and mitigation.
• Planning and scheduling.
A value (data point) which relates the cost of an item at a precise point in time to the analogous cost at some subjectively specified time in previous times.
A method of manufacturing at a continuous production rate while still maintaining sampling, inspection and quality goals.
Copyright © 2017 Compass International, Inc.
SECTION A2 | 37.
TERM
DESCRIPTION
Contract Documents:
Cost:
Cost savings:
cGMP s:
D.F.:
Design-Build Process
Design to Cost:
Direct cost:
Distributed Costs:
Earnings:
Estimates (Types and Accuracy):
The contractual agreement (terms and conditions), the design / engineering deliverables, project drawings, specifications, data sheets, performance guarantees supplementary conditions and
addenda informing the various parties to the contract of the projects scope the that are in effect in
the signed contract.
The actual value or the price to be paid for a specific contract element or specified line item.
A reduction in forecasted cost expenditures below the projected value of a specific scope item.
Current Good Manufacturing Practices
Damage free.
A course of action in which an individual or entity / firm take on the responsibility under a single contract to complete both the detailed design and the construction effort.
Allocating a fixed monetary amount / value to design a specific system or component.
Real / tangible costs or direct value / that can be directly ascribed to a specific item of work / scope or actions. As it applies in the construction industry cost of installed major equipment, bulk
and engineered materials, and labor directly concerned in the physical construction
of the permanent plant, building or facility.
A specific cost element that is pro-rated usually as a percentage value over other itemized cost elements.
The variance between income (sales) and operating / production costs.
To understand the basic differences between an Order of Magnitude Estimate and a Definitive
Capital Cost Estimate the following should be understood: An Order of Magnitude Estimate are typically compiled by utilizing historical cost data, cost capacity curves, exponents, Wroth, Miller, Cran, Guthrie, Lang, Chilton, Peters / Timmerhaus and Compass type ratio’s / factors.
Definitive Capital Cost Estimates are compiled from defined engineering deliverables; say 40% - 70% (or in some cases the detailed design is 100% complete), of the detailed engineering is
completed. An appraisal / listing / collection of all the future and anticipated expenditures (direct
and indirect construction cost elements) and allowances (provisional sums and allowances) of the
components of a project or endeavor as described by an established and approved scope of work statement together with any specific drawings and specifications:
Some of these estimates are known as:
• OOM / Front End / Conceptual etc.
• AFE / Funding / Preliminary / Semi-detailed.
• And Lump Sum / Hard Money / Tender submission / Turnkey etc.
The above nomenclature are perhaps the most widely used capital cost estimating types used for a manufacturing / process industry facilities, they are described as follows, however there is
possibly four to ten additional (hybrids) types that are used throughout the engineering and
construction industry on perhaps a less frequent basis some of these are described within this publication:
Front End Estimate / Order of Magnitude Estimate / O.M.M. - an early (in the projects life cycle)
estimate made with no complete engineering deliverables or project specific data / or
information. Illustrations would be: end product unit method, square foot / square meter unit prices, an estimate from historical percentages, cost capacity curves, an estimate using
exponents i.e. 6/10th type factors, or an approximate percentage / ratio type estimate. Lang or Wroth, Peters / Timmerhaus, Cran, Guthrie, Hand, Miller or Chilton type published multipliers. It
Copyright © 2017 Compass International, Inc.
38. | SECTION A2
TERM
DESCRIPTION
Estimates (cont.) Escalation:
Escalator Clause:
Extra
Fee:
Field Costs:
F.O.T.:
Function:
Fringe Benefits:
General Conditions:
follows that a capital cost estimate of this kind would be accurate within +40% or -30% range. Typically less than 5% of the detailed design has been completed. AFE Funding
Estimate / Budget / Preliminary Estimate / the detailed design in this situation would perhaps be in the 10% to 35% completion range. A budget estimate is prepared with the use of some basic engineering such as preliminary P. F. D. ’s / P. & I. D. ’s general arrangement
drawings, approved / preliminary plot plan, layouts, and preliminary major equipment list together
with outline specifications /materials of construction and or pricing, a motor list, a preliminary instrumentation list, a preliminary piping listing. In general it is probable / likely that an estimate
of this type would be accurate within +25% or -20% range. Lump Sum Bid Definitive / Hard Money Bid / Tender submission Estimates – this kind of capital cost estimate is an estimate
organized from perhaps 70% to 100% complete engineering deliverables. The engineering
deliverables include approved / signed off general arrangement drawings, signed off piping and instrument diagrams (P. & I. D’ s), electrical area classification map, single line electrical
diagrams (home runs), a major equipment list and related data sheets and quotations, motor lists, structural drawings, insulation requirements, soil data and layout of major equipment
foundations, building / facility drawings (indicating specification and footprint size), a detailed piping list / specification, instrumentation list and project specifications a listing of offsite
O.S.B.L. requirements and a scope of work statement, together with a detailed plan 30-90 look ahead schedule and a project execution basis - approach, complete with a risk evaluation study and contingency evaluation (perhaps a Monte Carlo simulation). It is anticipated that an estimate of this kind would estimate would fall in the range of accuracy of +10% and -5%, due to the fact that the design deliverables detailed engineering level of effort would be perhaps 70-100%
complete, with perhaps a contingency of 5% - 10%. Most probably some of the construction would be being installed i.e. the foundations and the long lead major equipment items would be on order.
The value / stipulation in actual or estimated costs for future increases in the value of major equipment, bulk / engineered materials, labor, engineering etc. due to ongoing increase in prices, i.e. sometimes referred to as inflation.
Article included in a contract / agreements / terms and conditions, allowing for future price
adjustment based on changes in specific escalation / inflation value.
An expression sometimes used to signify an item of work involving additional scope and perhaps cost.
The “cost/ price” for the use of a contractor’s business / establishment to the amount specified in the contract, sometimes known as margin.
Indirect related cost of engineering, procurement and construction specific to the project’s field performance / site establishment / preliminaries Division 1 effort as opposed to direct cost, i.e.
direct labor, equipment and bulk materials.
Free on truck.
The particular reason for which a building / facility / activity is completed for its intended purpose.
Worker / Employee related costs / charges specific to the cost of employing an individual;
operating expense of employment not paid directly to the employee, welfare benefits typically these include vacations, public holidays, sick day(s) paid leave / absence, (F.I.C.A), social security, public liability insurance, etc.
Many times refereed to as Division 1 or Preliminaries. A specific section of the contract
documents: They outline the tasks, requirements and relationships of all parties to the contract,
as well as any special requirements / needs and conditions germane to the main contract.
Copyright © 2017 Compass International, Inc.
SECTION A2 | 39.
TERM
DESCRIPTION
Good Manufacturing
Practice:
Gross National
Product (G.N.P.):
Home Office Costs
(EPC Firm Costs):
I.T.C.:
Indirect Expense Invitation to Bid
L & D:
Labor Burden:
Labor Cost(s):
L.P.C.
L.T.T.:
Mark-Up:
Monte Carlo
Technique:
N.C.:
O.B.L.:
Off-sites:
OPEX
Are the undertaking / guarantee of a quality product through quality of the manufacturing /
fabrication operations of the whole thing associated with the product from concept through manu
facturer? Good Manufacturing Practices requires that validation be performed. Validation is completed through three phases or steps: (1) Installation Qualification (IQ), (2) Operation
Qualification (OQ) and (3) Process Qualification (PQ). The IQ stage is the engineering function, after consultation with appropriate operations / research / technical staff. OQ stage is still an
engineering task but more of a collaborative task. It is the exhibition and audit trail of what has been designed and assembled / constructed will operate and perform its ultimate function. The PQ stage is more often than not conducted by the operations / research / technical
group, to make sure that the equipment will operate and within envisaged operating parameters.
All of three steps must be adequately documented.
The summation of national production of goods / services, manufacturing production at present
market values.
Costs associated with the performance of business activities which can be allocated to particular
ongoing projects, typical items include engineering (civil, electrical, process etc.), drafting,
procurement, estimating, value engineering, document control, expediting, QA/QC activities, inspection, administration, copying services, telephone, CAD, validation etc.
Investment tax credit.
Basic overhead related expenses (rent, salaries, telephones, office supplies etc), common office expenses, indirectly incurred / required and not precisely related to specific project.
A section of the bidding package / RFQ that request bids for a project.
Loss and damage.
Related taxes, emoluments and insurance expenses originating on labor payroll costs (LPC) that an
employer is lawfully obliged to pay on behalf of his or her employee’s. / Labor force.
The base salary or stipulated fixed hourly rate, plus all related fringe benefits and labor related costs associated with unit labor costs, which can be allocated to specific C.O.A. items / work, end products or specified cost area.
Labor payroll costs
Less than truckload.
A multiplier / percentage add on. Used in construction estimating and forecasting, is usually a percentage uplift to recover and capture and recover general overhead costs and profit.
A project control statistical tool or model used to evaluated contingency needs related the a the
level of known scope of a CAPEX project, a mathematical replication / model technique by which approximate assessments / ranges i.e. confidence levels are obtained in the resolution of
mathematical models so as to establish the range or most advantageous cost or confidence level that is utilized to determine the rand or value of contingency that should be applied to the cost
of a completed CAPEX estimate. Range estimating is a well-known application of this approach.
Notification charge.
Overland bill of lading.
Specific or shared utilities / services / amenities outside the battery limits of process units / manufacturing unit, includes such items as pipe racks, tank farms, loading jetties, power or
steam generation, shared support systems / services, i.e. waste treatment facilities and office /
changing rooms / control rooms and other administrative facilities – gate houses, warehouses, lay
down areas and possible parking lots etc. Sometimes called or known as O.S.B.L. i.e. out side
battery limits.
Operating Expenses
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40. | SECTION A2
TERM
DESCRIPTION
Overhead Cost:
Pledge:
Price:
Process: Productivity:
R.F.Q.
Scope of Work:
Secondary Air:
Start-up costs: Ton / Refrigeration:
Turnkey:
U.S.P.:
V.A.T.:
Validation:
Validation Protocol:
Value Engineering:
Ventilation air:
Vivarium
V.N.X.:
Warranty:
WFI:
Worth:
An actual support related cost involved in the execution of an specific function / activity
To commit by a promise.
The value / worth / sum of money required or received for an item / object (e.g. the real value or asking price).
A progression of activities / events that result in a new facility or product.
The assessment of labor effectiveness, judged against to an established data point as compared to
an area of significant knowledge i.e. industry standard man-hours.
Request for price.
The description of the necessary major equipment, services, labor and materials to be furnished, and the work or effort to be completed.
Air introduced into a combustion chamber of a boiler to maintain correct fuel / air ratio.
Required production / operating needs / resources equipment (labor and materials) to commence
production the chemical plant / manufacturing facility into partial or full production, typically
happens between the completion of construction (practical completion) effort and
commencement of the manufacturing plant production operation / activities.
A means of expressing cooling capacity – 1 ton = 12,000 BTU’s
A contract that provides all the required services to construct a building, plant or facility.
United States Pharmacopia.
Value added tax.
A documented program that provides a high degree of assurance that a specific process, method, or system will be consistently producing a result meeting predetermined acceptance criteria.
A written plan stating how validation will be conducted and defining acceptance criteria. For
example, the protocol for a manufacturing process identifies processing equipment, critical
process parameters and/or operating ranges, product characteristics, sampling, test data to be
collected, number of validation runs, and acceptable test results.
A routine function that is focused at the engineering / design / procurement / construction effort, typically completed at the 10% - 50% design effort. The goal of value engineering is to design a facility or plant that will provide the lowest life-cycle costs or offer the best “real” value while
fulfilling all performance goals / expectations and other specific criteria it was originally created for, e.g. cost, reliability and quality.
The portion of air supplies which comes from outside, plus any re-circulated air that has been treated to maintain the desired quality of air within a designated space.
An area (indoor) for keeping, breeding and raising animals.
Value not exceeding.
Contractors / Manufacturer’s certification of quality and performance that many times includes an
assurance of satisfaction.
Water for injection - Water purified by distillation / reverse osmosis (contains no added
substances).
The minimum overall capital expenditure to complete or perform a specific activity or function.
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As mentioned previously the OOM / Front End
/ Conceptual / AFE / Funding / Preliminary / Semidetailed And Lump Sum / Hard Money / Tender
submission / Turnkey etc, are perhaps the most
widely used capital cost estimating types used for a
manufacturing / process industry facilities. However,
there are possibly four to ten additional (hybrids)
types that are used throughout the engineering and
construction industry on perhaps a less frequent
basis. Some of these are described in more detail on
the following pages:
ADDITIONAL TYPES OF CAPITAL COST ESTIMATE / CLASSIFICATIONS / ACCURACY
(1) Ball Park Estimates / Front End / Order of
Magnitude:
Application / Use: Front end feasibility studies
/ Starting Point Evaluation
Expected Accuracy: range +35%, -25%
Required Data / Deliverables: Engineering
complete 0 – 5%. A preliminary scope statement:
This capital cost estimate type is necessary because
there is a requirement by the business unit for very
early, first time / very approximate estimate for a
possible new business opportunity or to upgrade
or optimize a current operating plant. These early
CAPEX estimates are typically made using, ratios
- approximate percentage / historical in-house data,
ratio type estimates such as Lang or Wroth, Peters
/ Timberhaus, Cran, Guthrie, Hand, Miller or Chilton type published multipliers are good examples
of this initial approach, elements of actual historical past project costs and factoring / exponents for
differences in capacity i.e. various case studies are
used to fine tune the cost estimate, locations (location factor), off sites – usually a percentage value,
escalation, spare parts, engineering costs, royalties
etc are added as a line item to the estimate. These
initial cost estimates are made by cost engineers /
estimators / project managers most familiar with the
process / technology or facility being considered. A
basic scope of work statement is also required and
any relevant engineering data.
(2) Business Evaluation / Pre - Funding Study
Estimate / R.O.I. Analysis:
Application / Use: Capital project forecasting;
process economics
Expected Accuracy: range +30%, -20%:
Required Data / Deliverables: Engineering
complete 5 – 10%. Preliminary scope of work statement: Major Equipment list (outline specifications,
capacities, materials of construction, together with
perhaps 50% - 70% of the major equipment priced
out from at least one vendor) A plot plan indicating
locations of major equipment, P.F.D.’s sheets (main
piping runs and materials of construction, piping
take-off’s, electrical motor list and main electrical
equipment listing, approximate line sizes, insulation
requirements M.E. and piping) Preliminary P. &. I.
D. ’s. Preliminary site plan, including: / Sketches /
Photographs. I/C control philosophy, Facilities and
buildings, structures pipe racks (type, size, height)
I.S.B.L. Storage, tank farms (capacities, materials of
construction) Support services, off site requirements
(services required, capacity): Royalties, spare parts
list, EPC engineering man-hours including items
mentioned in (1) above.
(3) Authorization for Funding, sometimes
called an (AFE Estimate) / Preliminary Estimate.
Application / Use: Authorization Request submittal to B.O.D. major scope changes for approved
projects.
Expected Accuracy: range +25%, -15%
Required Data / Deliverables: Engineering
complete 10 – 30%
Scope of work statement with execution approach:
• Major Equipment list (specification complete,
with budget semi firm proposals / prices from vendors)
• P.C.A.’s
• Phase 1 Environmental Site assessments
• Preliminary P. F. D.’s
• Preliminary P. & I. D.’s 20 – 50% complete
• Facilities, buildings, structures, pipe racks,
layouts / materials of construction
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42. | SECTION A2
• Major equipment locations and foundation
requirements
• I.S.B.L. Tanks / storage needs
• Support services / off site requirements
• Site plan (showing process area, tank farms,
and off sites)
• Main pipe headers / Pipe bridge locations and
tie-in points
• Electrical scope of work / classification together with preliminary motor list
• Instrumentation device list. / Control philosophy
• Electrical area classification
• Insulation, tracing and painting specifications
together with line lists
• Royalties, spare parts list, EPC engineering
man-hours
• All items previously mentioned in (1) and (2)
(4) Control Estimate / Detailed Estimates /
Hard Money Proposal
Refer to additional data / estimating approaches
contained in following sections. Expected accuracy
+5%, -5%: Required Data / Deliverable: Engineering
complete 50% – 100% (closer to 100% would provide greater accuracy) Scope of work statement with
execution approach and detailed EPC and start up
Schedule, including items (1), (2) and (3) mentioned
above. Refer to later section for specific details /
approaches on compiling this capital cost estimate.
The following listing of estimating data / types of
estimates is recommended by the American Association of Cost Engineer’s (A.A.C.E.). The American
Association of Cost Engineers (A.A.C.E.), perhaps
the most widely respected authority on capital cost
estimating and cost engineering, has outlined the
following most widely used types / classifications
of capital cost estimates. In ever-increasing order of
accuracy, of course it goes without saying that the
more advanced the engineering effort is the greater
the accuracy of the estimate. The major categories
of capital cost estimates considered by AACE are as
follows:
Capital Cost Estimates (Table 1)
MOST WIDELY USED TYPES / CLASSIFICATIONS
NAME
TYPICALLY COMPLETED ENGINEERING
ACCURACY RANGE
1. Front End OOM Order of magnitude
2. Budget / AFE (approval for expenditure)
3. Definitive / Lump Sum / Fixed Price
0-10%
5-20%
30-100%
-30%, +50%
-15%, +30%
-5%, +15%
Capital Cost Estimates (Table 2)
ANOTHER METHOD FOR DETERMINING CONTINGENCY AND ACCURACY IS AS FOLLOWS:
TYPE OF ESTIMATE
CONTINGENCY %
ACCURACY % +/-
OOM / Ball Park / Blue Sky
Conceptual / Pre - Design / Feasibility
Front End / (FEED) / Preliminary
Budget Control
Lump Sum / GMP / Turnkey
30 – 40
20 – 30
15 – 20
7.5 – 15
2.5 – 7.5
40 – 50
20 – 30
15 – 20
5 – 10
0-5
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SECTION A2 | 43.
The best solution is to use an average of both
methods indicated above to arrive at a value that
meets the reader’s needs.
Cost Estimators / Engineers typically can utilize
the 3 to 6 capital estimating types / methods that are
described below. They can be one of the following
or some of the estimates that were discussed earlier
– there is no hard and fast rule to this selection /
choice.
1. Ballpark estimates / Blue Sky / O.M.M.
2. Square / cubic foot estimates
3. Combination of (3) and Semi detailed estimates (partial take-off)
4. Systems / assembly estimates
5. Owner’s / engineers estimate
6. Contractors Lump Sum / Hard Money / GMP
proposals
As has been mentioned previously, the engineering / construction – process – manufacturing
industry is scattered all around the world, there is no
common denominator when it comes to a standardized estimating methodology - different countries /
different companies / different industry sectors all
use different terms / nomenclature for compiling and
discussing CAPEX estimates, there is no standard
name or classification / approach. Again, we are
making a partial list of these names that the writer’s
have come into contact with after working in this
arena for almost thirty years. These (22) names designations - estimates include:
• Early Identification Business Estimate
• SWAG
• Ballpark
• Blue sky
• Front-end study
• Order of magnitude
• Conceptual
• Pre-Design Case Study
• Preliminary
• Semi – detailed
• Square Foot
• Cubic Foot
• AFE / Budget
• Final / Project Control Estimate
• Guaranteed maximum Price GMP
• Tender submission
• Control estimate
• Turn Key Lump Sum (TKLS), usually the
estimate is converted into a lump sum at a stipulated
milestone i.e. 30% of detailed design
• Turnkey
• Lump sum
• Hard money
• Definitive Capital Cost Estimates
ENGINEERING DELIVERABLES NEEDED AND
BUDGET PRICE TO COMPILE VARIOUS COST ESTIMATES (2017 NORTH AMERICAN BASIS) AND
TO SUPPORT ESTIMATE BASIS:
(Includes Front End conceptual engineering and estimating activities, with procurement group involvement in obtaining budget quotes.)
• See Chart Next Page.
• Note: C and D could be reversed dependant
on execution strategy. C could be used as a check
estimate of the AFE Estimate.
Resolution Allowance (Undefined Scope Allowance) is an allowance / estimate for required scope
that has not yet been defined, an example of this is
floor drains, the scope requires floor drains however the engineering is only 20% to 50% complete,
floor drains are not shown on current drawings, but
we know they are required. Typically a resolution
allowance of 5% would be added to the drainage account to cover the cost of this undefined scope item;
it should not be taken out of the contingency value.
There are two points of views concerning Capital
projects; these points are what / which organization
are involved with the Capital project an Owner or
Engineering, Procurement and Construction (EPC)
organization. Capital projects and the eventual
estimating effort and the final cost has differing
challenges / goals for each of these organizations,
the Owner company needs to ensure that the capital
project is executed within the pre-established budget
(the AFE) the agreed to capital cost estimate – no
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44. | SECTION A2
ENGINEERING
DELIVERABLES
& TASKS
(1) BALL PARK
CONCEPTUAL
ESTIMATE
(2) BUSINESS
EVALUATION /
O.O.M. ESTIMATE
(HYBRID OF 2 & 3)
F.E. / SEMI
DETAILED
ESTIMATE
(3) BUDGET /
AFE ESTIMATE
(4) LUMP SUM /
CONTROL
ESTIMATE
OBJECTIVE OF
ESTIMATE BLUE
SKY
Initial / Front
End Phase
Assessments
& Economic
Appraisal
Typically
Supported by
Historical Cost
Data Points,
Return Cost
Data for
Comparable
Plants, Location
Factors and
Computerized
Estimating
Systems
Initial / Front End
Phase Assessments
& Economic
Appraisal
Preliminary / Front
End Studies
(For Business /
Venture Team).
Project Definition
Package
completed
EPC Project
Execution Basis
In-House
Estimates
Supported by.
Initial Major
Equipment Lists
and Facility
Operating Needs,
Location Factors
Computerized
Estimating Systems
Verbal / Phone
Quotations
Supported by. Initial
Major Equipment
Lists and Facility
Operating Needs,
Location Factors
Computerized
Estimating Systems
Semi Firm
Quotations Based
on Equipment
Lists and
Equipment
Facility Operating
Needs, Location
Factors
Computerized
Estimating
Systems
In depth
Estimating
Procedures with
Firm Quoted Major
Equipment Costs.
Utilization of EPC
Contractors
In-house
Computerized
estimating system
Project Control
Group with
support of a
Purchasing
Agent in
obtaining M.E.
pricing
-25% +35%
Project Control
Group with Project,
Engineering,
Support and
Purchasing
Assistance
Project Control
Group with Project,
Engineering,
Support and
Purchasing
Assistance
EPC Contractors /
Detailed review by
Cost Engineering
Group
-20% +30%
-/+ 20%
Project Control
Group with
Project,
Engineering,
Support and
Purchasing
Assistance
-15% +15%
$7.5K - $25K
$15K - $60K
$60K-$150K
$150K-$400K
$400K -$800K+
75 to 230
M.H. ’s
150 to 600 M.H. ’s
600 to 1,500
M.H. ’s
1,500 to 4,000
M.H. ’s
4,000 to 8,000
M.H. ’s
Compiled with
less than 5% of
the detailed
design
completed
Compiled with less
than10% of the
detailed design
completed
Compiled with less
than 15% of the
detailed design
completed
Compiled with
less than 25% of
the detailed
design completed and key major
equipment items
have been places
on order
Typically compiled
when the detailed
design and the
engineering
deliverables are
between 35% and
60% completed
ESTIMATING
PROCEDURE
UTILIZED
COMPILED BY
ESTIMATE
ACCURACY RANGE
CAPITAL COST
ESTIMATE
PREPARATION
COST
ESTIMATING &
ENGINEERING MAN
HOURS AT $65 /
HOUR (BASED ON
$5 TO $25
MILLION PROJECT)
MILESTONES /
REMARKS
Copyright © 2017 Compass International, Inc.
-5% +5%
SECTION A2 | 45.
ENGINEERING
DELIVERABLES
& TASKS
(1) BALL PARK
CONCEPTUAL
ESTIMATE
(2) BUSINESS
EVALUATION /
O.O.M. ESTIMATE
(HYBRID OF 2 & 3)
F.E. / SEMI
DETAILED
ESTIMATE
(3) BUDGET /
AFE ESTIMATE
(4) LUMP SUM /
CONTROL
ESTIMATE
SCOPE DEFINITION
Information of
Project (Initial
SOW statement is available) Historical
benchmarks
of completed
facilities exists
Information of
Project / Location
Operating Methods (Preliminary
SOW statement is
available) Historical benchmarks of
completed facilities exists
Information of
Project / Location
Operating Methods
(Preliminary SOW
statement is available) Preliminary
Plot Plan, Preliminary Execution Plan
Milestone Schedule
Information of
Project / Location
Operating Methods (Detailed
SOW statement
is available) Preliminary Design
Specifications
100 + Activity
Schedule
PROCESS
ENGINEERING
DELIVERABLES
F E / Initial
Process Scope
of Work
Document is
Commenced
Initial (P.F.D. ’s)
Initial Process
Scope Document
Preliminary
Process Flow
Diagram (P.F.D. ’s)
Preliminary Process
Flow Diagram (P.F.D.
’s) Preliminary
(P. & I. D. ’s)
MAJOR / PROCESS
EQUIPMENT
Initial
List / M.E. Count
Preliminary
List / M.E. Count /
Size Magnitude /
Operating
Constraints
Preliminary
List / Size Magnitude
/ Operating
Constraints Verbal /
Fax Telephone
Vendor Quotes on
key Major Equipment items
OFF SITES
(SUPPORT
SERVICES /
UTILITIES,
STORAGE)
Factored
Typically 30%
to 70% of
I.S.B.L. value
Factored Typically
30% to 70% of
I.S.B.L. value
Scope out work
items / Initial Off
sites / Support Services Flow Diagrams
Project Team needs
to define and scope
out. Resolution Allowances added to
undefined scope.
Detailed Process
/ Project Scope
Document Preliminary (P.F.D. ’s)
Preliminary
(P. & I. D. ’s)
25% to 50%
completed
Semi-Firm
List / Size Magnitude / Operating
Constraints Verbal / Fax Telephone Vendor
Quotes on key
Major Equipment
items / Sketches
/ Layout Drawings Major Equip.
Semi Firm Quotes
Scope out work
items / Project
Team needs to
define and scope
out. Resolution Allowances
added to undefined scope.
Information of
Project / Location
Operating Methods
is fully scoped out
(Detailed Execution Approach and
Approved SOW
statement is being
utilized) Detailed
Design / Procurement / Construction effort is well
advanced
Detailed Process /
Project Scope
Document Detailed Engineering
(P. & I. D. ’s) signed
off or 70%
complete or better
Definitive / Firm
List / Size Magnitude / Operating Constraints
Written / Itemized
Vendor Quotes on
all Major Equipment items. (EPC
effort should be
well advanced,
approx 50% - 70%
complete).
In depth control
estimate by EPC
Contractor, defining all required
work items.
Resolution Allowance should not
be required at this
advance point in
the projects life
cycle.
Copyright © 2017 Compass International, Inc.
46. | SECTION A2
ENGINEERING
DELIVERABLES
& TASKS
(1) BALL PARK
CONCEPTUAL
ESTIMATE
(2) BUSINESS
EVALUATION /
O.O.M. ESTIMATE
(HYBRID OF 2 & 3)
F.E. / SEMI
DETAILED
ESTIMATE
(3) BUDGET /
AFE ESTIMATE
(4) LUMP SUM /
CONTROL
ESTIMATE
INDIRECT FIELD
COSTS
RESOLUTION
ALLOWANCE TO
KNOWN SCOPE
OF EACH
ACCOUNT /
SOMETIMES
KNOWN AS
UNDEFINED SCOPE
ALLOWANCE.
EPC CONTRACTOR
/ OFFICE COSTS
Factored
Factored
Semi detailed
Semi detailed
Detailed Estimate
N/A
Assumed to
be included in
factors
N/A
Assumed to be
included in factors
5 – 10%
5 – 7.5%
Less than 5%
Factored
Factored
Factored /
Semi Detailed
SPARE PARTS /
VA / I-C
PROGRAMMING
Factored
Factored
Factored /
Semi Detailed
Detailed Estimate
Factored /
Semi Detailed /
Detailed Estimate
Detailed Estimate
Factored /
Semi Detailed /
Detailed Estimate
GC / FIELD
ESTIMATE
Factored
Factored
Factored /
Semi Detailed
Detailed Estimate
Factored /
Semi Detailed /
Detailed Estimate
OWNER COSTS
Factored
Factored
Factored /
Semi Detailed
CONTINGENCY
RANGE (DOES NOT
INCLUDE REVAMP
CONSIDERATIONS
OR PROCESS
DEVELOPMENT
ALLOWANCE)
TYPICAL
INDUSTRY
CONFIDENCE
RANGE
(USING REP)
I.E. RANGE
ESTIMATING
PROGRAM
25% or Greater
15 - 25%
10 - 20%
Detailed Estimate
Factored /
Semi Detailed /
Detailed Estimate
2.5- 7.5%
7.5 - 15%
80% to 85%
80% to 85%
80% to 85%
80% to 85%
Copyright © 2017 Compass International, Inc.
80% to 85%
SECTION A2 | 47.
major cost over-runs, the EPC organization is chalmargins, just as CAPEX projects that fall outside the
lenged to make a profit (fee) on their projects and
“three legged stool” model could be considered failto keep the workforce / staff busy and billable (at
ure. History has proved over and over that to be sucthe same time ensuring that a positive relationship
cessful in executing a CAPEX - Capital project(s),
is maintained with the Owner – that will result in
a road map needs to be established and closely
additional projects in the future), the cost estimate is followed (an outline of the scope of work, project
the established metric by which the project is meagoals, milestone schedule and cost estimate / budsured – for an Owner it is ensuring that the approved get). It must be recognized by the “project team” that
budget is not exceeded (we don’t want to go back
external factors such as worker productivity, conto management for additional / supplementary AFE
tract type, market conditions, climatic condition (hot
funds and for the EPC contractor it is the making
or cold working conditions), sophistication of plant,
or exceeding the established fee. For both organizagovernment involvement / changes in tax structure
tions, it establishes the “cost” specific to scope of
when project is being executed (similar to what has
work that is currently established. The opposing
occurred recently in a major oil producing country
goals mentioned above (of the Owner and the EPC
in South America), team continuity and a whole host
contractor) are many times the
of other project specific situations
cause of problems and friction on
could seriously impact the cost of
CAPEX – EPC projects. The owner Capital projects that are
the final facility. If 60 % - 75% of
deemed a success by the
doesn’t want to hear about extras
the scope can be “nailed down”,
appropriate stakeholders
and the contractor is, of course,
i.e. PFD’s, location, major equip(Owner and EPC contracting ment requirements, control philosmotivated to issue change orders
entity) are identified as the ophy etc., the resulting 25% - 30%
to recoup all the costs they have
capital projects that meet
expended. This is why bi-weekly
of the unknown / risk items can
the “three legged stool” cri- be somewhat identified and costs
change order meetings are so imteria, (refer to Section A - 3) can be allocated to these items, an
portant.
Capital projects that are deemed
adequate resolution allowance and
a success by the appropriate stakecontingency can be established, to
holders (Owner and EPC contracting entity) are
protect the bottom line cost of the capital estimate.
identified as the capital projects that meet the “three
The following chart summarizes the eight steps
legged stool” criteria, (refer to Section A - 3) (1)
of a project management / capital cost estimating
Schedule: Executed and handed over to the future
process and the level and type of capital cost estioperating / business unit in accordance with the
mate effort required to compile various estimating
pre-established milestones - completion date. (2)
types (A - G. refer to Section A - 3 Page 6 – 18 for
Cost: Did the cost fall within the pre-established
a description of seven capital cost estimating methAFE funding basis? Did the EPC effort realize an
ods A - G) and nomenclature and required design
adequate return on investment ROI? For an EPC
deliverables. In reviewing this chart consider refirm did we make a reasonable return / fee on our
quired accuracy of estimate, timing considerations
activities? (3) Quality / Safety: Can facility produce
– milestones of when estimates should be prepared,
/ meet pre-established production goals and current
resources needed to establish the scope of work,
and future commercial metrics? Was the EPC efthe management approval cycle, and funding apfort safely performed and is the new facility safe to
proval limitations / monetary approval levels and the
operate? Capital projects that meet the “three legged experience of the estimating / engineering resources
stool”, criteria, will enhance future sales and profit
compiling the capital estimate.
Copyright © 2017 Compass International, Inc.
48. | SECTION A2
8 Steps
OF A PROJECT MANAGEMENT / CAPITAL COST ESTIMATING PROCESS
STEP
NO.
BUSINESS UNIT / PROJECT MANAGEMENT ACTIVITY
CAPITAL COST ESTIMATING
ACTIVITY / DELIVERABLES
REMARKS / COMMENTS
1
Business unit identifies potential
market need / commercial prospect
– need for further evaluation –
eventually leading to a CAPEX project.
A. Blue Sky
(refer to Section A – 3 – page 7)
Tons or pounds of product /
barrels of oil Capacity driven
factors / exponents
Ratios
Typically less than 1 - 2.5% of future
design deliverables completed,
or it could be the situations were
no design work has yet started.
Cost estimate would be based on a
combination of factors, ratios and
exponents, the resulting accuracy
would be +/-30%.
2
Produce an initial Front End scope
of work statement that satisfies the
business unit’s current and long term
business plan and goals.
A. Blue Sky
B. Scale Up / Capacity
Estimates SF/ M2 unit costs.
(Hybrid of A & B)
Less than 2% - 5% of future design
deliverables completed, could be an
update of step # 1 and SF / M2 / Cubic Feet historical unit costs would
be the desired estimating solution.
3
Consider various alternatives (Case
Studies) / business solutions (i.e. tolling
or produce product in house) at a new
or existing manufacturing / production
facility.
B. Scale Up / Capacity Estimates
C. Ratio / Factored Method
D. Some initial F.E. / Semi-Detailed Engineering Estimating
activities refer to Section D-1
4
Choose best business solution / technical approach. Utilize 3rd party engineering firm to compile conceptual /
PCA / preliminary / design. Obtain full
or partial AFE funding. Produce preliminary – semi final SOW / Path forward
statement.
C. Ratio / Factored Method
D. Front End Semi Detailed
Estimate
E. AFE Funding estimate (Refer
to A-3 page 9)
Copyright © 2017 Compass International, Inc.
Less than 5% - 10% of detailed
design completed (this could be
considered preliminary engineering
– the detailed engineering has not
commenced), initial location and
layout may be identified; early PFD’s
and preliminary engineering studies
need to be completed (consider different locations, different technology, different manufacturing steps).
Still less than 10% of detailed
design completed – or the estimate
is based on preliminary engineering
as # 3 above, location, production
rate, technology and layout is identified. Conduct Value Engineering
Study or in step 5.
SECTION A2 | 49.
STEP
NO.
BUSINESS UNIT / PROJECT MANAGEMENT ACTIVITY
CAPITAL COST ESTIMATING
ACTIVITY / DELIVERABLES
REMARKS / COMMENTS
5
Develop detailed SOW and getting operating unit approval of required scope
and select EPC approach / select EPC
contracting organization.
E. AFE Funding estimate (used
as initial control tool)
F. Control Estimate
G. Lump Sum Estimate
6
Audit / monitor / trending activities.
7
Complete and hand over facility to
business unit.
F. Control Estimate
G. Lump Sum Estimate
Produce any applicable change
orders
Produce any applicable change
orders / reject or accept any
claims.
8
“Lessons learned” - Internal management review (Senior Operating group
staff and “Construction Services”
Senior Management / Project Manager /
Estimator / Cost Engineer).
Conduct 2 day Value Engineering study / session. Engineering /
detailed design should be in the 2050% completion range, engineering
deliverables should include: Site
development plan, PFD’s, P&ID’s,
M.E. list, E&I control philosophy,
Electrical classification, foundation plans, structural arrangements,
building sections, footprint of facility and itemized listing of engineering and CM activities and any other
significant project related scope /
cost item.
Conduct cost engineering activities,
implement bi-weekly / weekly cost
trending meetings, and continue to
monitor / trending activities.
Complete final cost report and compile benchmarking project database
for future estimating / forecasting
applications.
Report based on original project
concept and goals of project,
compared to final close out report
and a detailed comparison of final
cost, safety and schedule (plant
handover).
Produce executive summary
type report, indicating lessons
learned, successes and problems encountered, reconciliation of forecasted and actual
project goals.
Note: the above mentioned Capital Estimating
Deliverables should contain supporting backup,
basis of estimate, accuracy of the resulting estimate,
basis of escalation, estimating assumptions, exclusions, listing of engineering deliverables the estimate
is based upon and other items that are described in
greater detail in Section A - 3.
A CAPEX Estimate / EPC Estimate can never be
considered complete without the approval buy-in of
Senior Management (this could mean both engineering and construction support management as well
as the business unit management - the management
that will operate the facility when the “project” is
completed). In order for a cost estimate to be a useful tool, it must contain enough detail for manage-
ment to choose possible different approaches and
of course make sound business decisions. It should
contain: A scope of work statement, a Major Equipment listing with costs (Preliminary / Budget quotes
where possible), a field labor cost allocation / report
(indicating total man-hours and appropriate dollar
values), a detailed engineering / design spreadsheet
(total man-hours by month and appropriate dollar
values), a breakout of field in-direct costs – division
1 / preliminaries a major milestone schedule that the
capital estimate is based upon, together with details
on how escalation values were established, fees, insurance costs, currency exchange rates utilized and
any other high risk items that need to get buy in by
senior management. To reiterate on what was earlier
Copyright © 2017 Compass International, Inc.
50. | SECTION A2
mentioned, the building blocks and components of
ing profession and it’s a job where every day is a
the production of a high-quality capital construcnew challenge.
tion cost estimate(s) and the education / knowledge
requirements / job experiences / credentials of a
DEVELOPING AN ESTIMATE PLAN
successful estimator are; at least 5 years hands on
Many owner companies i.e. corporate engineering
experience in compiling all types of construction
departments (and in some cases EPC & A/E firms)
estimates, construction field experience / knowledge in the last ten years have significantly downsized
of the total engineering, procurement and constructheir estimating groups. Many of these owner orgation process cycle (this perhaps is one of the most
nizations now rely on outside EPC, A/E, CM and
important attributes), insights of the construction
specialized consulting firms to take care of their
process, including the construction procurement
estimating needs and deliverables. There are pluses
cycle, i.e. the INP cycle and engineering and design
and minuses associated with this trend. The owner
techniques that are utilized by the design team, incompany can save overhead costs by not having full
stalling / construction methods, capital major equip- time in-house estimating resources; however there
ment types and construction crew
are distinct minuses in not havmake-ups, bulk and engineered
ing dedicated estimating profesmaterials, an understanding of basic Many owner companies
sionals available when they are
economics and knowledge of the
needed, plus in-house estimating
i.e. corporate engineering
proposed project execution minudata usually fails to be incorpodepartments (and in some
tiae, detailed knowledge of capital
rated into these third party esticases EPC & A/E firms) in the
cost estimating techniques and
mating deliverables. The purpose
last ten years have sigbidding procedures, an understand- nificantly downsized their
of the following list is to make
ing of all current estimating tools,
sure that no scope of work item
estimating groups.
including, rotometers, scale rules,
is overlooked in the estimating
3 D CAD drawings, digitizers, aceffort. The list however is not
cess database versions or a comall encompassing, the objective
plex purpose made computerized estimating project
to make sure a cost is assigned to each line item in
control software package, a “roll up your sleeves /
the cost estimate and to ensure the scope of work is
take charge” attitude and aspirations for constant
capture within the current estimate.
improvement, an open mind to new estimating / cost
• Description of Project Location of Project
control methods, a penchant for collecting historical
• Responsible individuals / design groups re/ actual construction cost data, together with organi- sponsible for providing engineering deliverables and
zational / filing skills, an understanding of what the quotations
purpose of the capital cost estimate, is it a budget, a
• Project Manager / Lead Estimator responsible
study / ROI feasibility evaluation, or is it an update
for estimate preparation
of an earlier compiled estimate, the “gumption” to
• Provide a brief Scope of Work Description
speak up when problem (estimating / cost trends)
• Date and revision number of when estimate(s)
are encountered, a flexible work ethic and the ability was compiled
to work flat out for extended periods to get the job
• Type of Estimate completed (OOM, Prelimidone. It is an interesting and rewarding job, every
nary, Detailed etc)
project is different; construction (CAPEX) projects
• Type of Project New (Greenfield) / Retrofit
by their very nature are a one-time effort lasting
(Brownfield) / Upgrade / Debottlenecking / Add-on
from six months to possibly three years. It is reward• Accuracy of completed estimate
Copyright © 2017 Compass International, Inc.
SECTION A2 | 51.
• Validity of Estimate (1, 2 or 3 months or longer)
• Estimate is based on specific project major
milestone / schedule.
• Hazardous Materials / contaminated soil plan
and cost issues / considerations
• Basis of Refurbishment / Demolition / Dismantling / Relocation considerations
• Basis of labor rate build up (indicate survey
date and basis, union , non-union, merit shop, basis of base rate, date of next pay increase fringes,
Workers Compensation Insurance, FICA, State Unemployment, home office overhead, profit and any
other add-ons)
• Comment on any additional costs or bonuses
required in attracting labor or sub contractor bids.
• Describe Contracting / Procurement / Construction Approach estimate is based on
• Is schedule based or normal construction or fast
track construction?
• List of Engineering Deliverable, sketches etc.
to be utilized in compiling estimate, together with
date and revision
• Provide details WBS / Owner Code of Accounts / SAP coding system that was utilized
• Description of how unknown scope / design
development / resolution allowance / growth allowance was evaluated and estimated:
• Pricing Basis (describe percentages of estimates, quotes or bids)
• Worker Productivity and basis of productivity
assumptions
• Describe estimating methods / techniques to be
used for estimating major scope items.
• Description of Capital and Expense basis
• Description of Inside Battery Limits (ISBL)
and Outside Battery Limits (OSBL) scope and issue
that impact the CAPEX estimate
• List utilities / services that will be required or
that are part of the estimate, i.e. waste water treatment, sub stations, jetties, roads, rail spurs, weighbridges, loading areas, flares etc..
• Description of waste and material take-off al-
lowances
• Basis of Allowances / Provisional Sums /
Prime Cost sums
• List owner supplied equipment and dates they
must be at site to maintain schedule
• Describe foreign currency issues and stipulate
currency exchange rate / date basis
• List of Major Equipment (Tagged items)
• Freight (domestic and ocean freight basis and
insurance issues)
• Major Equipment Installation / Heavy lift crane
requirements / Temporary storage issues
• Detail Import duties / tariffs
• Use of refurbished / relocated equipment / used
equipments
• Describe scope and basis of demolition / dismantling costs
• Describe and list details of site works
• Basis of Excavation / Soil disposal / Civil /
Foundation issues
• Rock removal / Well pointing / High water
table, unsuitable soil issues
• Describe and list details of any stone coverings
to process areas.
• Structural Steel (Main members / platforms /
grating / miscellaneous steel)
• Describe Architectural / Building / Control
rooms cost items
• Is foundation design based on soil borings and
a completed geotechnical report?
• Welder qualification costs
• Piping estimating method / materials of construction (ISBL / OSBL)
• Basis of small bore piping / field run piping
• Describe and list details of any pneumatic / tubing / in-line devices.
• Basis of fitting and valves
• Description of control valves in-line devices
and associated costs
• Hangars / Testing / Pickling issues and associated costs
• Electrical scope / area classification and associated costs
Copyright © 2017 Compass International, Inc.
51. | SECTION A2
• Instrumentation / Number of devices / Number
of I/O’s (Control wiring)
• I/C Calibration / Integration costs
• BAS / BMS / Control philosophy issues
• Painting / Sandblasting
• HVAC / Ductwork issues and associated costs
• HVAC balancing / testing and associated costs
• Ductwork – steel / other material and associated costs
• Insulation (Pipe and Equipment) type and
covers and associated costs
• Describe and list details of any special coatings.
• Basis of Heat tracing (electrical or steam) and
associated costs
• Fireproofing / Refractory / brick linings and
associated costs
• Describe and list details of Sprinkler / Firefighting systems
• Description of Fire main loop and associated
costs
• Road crossings /Duct banks and associated
costs
• Basis of spare parts and associated costs
• Description of Owner Provided Equipment/Materials
• Procurement / inspection issues and associated
costs
• Maintenance of construction equipment / fueling, greasing and associated costs
• Other miscellaneous items construction equipment / buses / transportation / vans and associated
costs
• Listing and description of Indirect Costs / Mob
– De-Mob Costs
• Insurance items included / excluded BAR/ WCI
Public Liability and OPI
• Describe and list details of Construction Equipment and duration required and associated costs
• Description of Quarry / Concrete Batch plant /
Ready mix trucks details and associated costs
• Site fabrication facilities and associated costs
• Description of Site warehouses and associated
Copyright © 2017 Compass International, Inc.
costs
• Provide a basis of the security / guards estimate
and relevant cost details
• Material lay-down areas and relevant cost
details
• Provide details of fencing / gates site access
cost details
• Protection of completed work details
• Basis of Field Supervision estimate
• Field Labor Support details with supporting
cost details
• Description of Temporary worker camps with
supporting cost details
• Messing / Camp supplies / food with supporting cost details
• Small Tools / Consumables / Scaffolding listing with cost details
• Vendor Assistance / Support costs
• Offices / Trailers / Toilets / Field Establishment
with supporting cost details
• Temporary Water / Heat / Electricity and relevant cost details
• Description of Overtime basis
• Basis of Shut downs / tie ins
• Provide details related of any shift work
• Describe and list details of fire watch
• Provide details related of any Site Clean up
requirements
• Winter working requirements
• Safety issues, hard hats, goggles etc.
• Alcohol / Drug testing requirements
• Describe and list details of Site Establishment
costs (secretaries / staff / office equipment)
• Provide details related of any initial start up
materials / chemicals
• O/H and Profit assumptions
• Describe and list details of any Royalties /
Patents
• Describe and list details of any Owner costs
• FE Engineering Costs
• Details of various permits included
• Sales Taxes / GST
• Provide details related of VAT and if it can be
SECTION A2 | 53.
claimed back.
(chemical and manufacturing facilities) is a major
• Describe and list details of Detailed Design /
undertaking, employing thousands of companies and
Engineering Home Office Support man-hours and
millions of individuals around the world. The cost
cost
of construction has an influence on just about every• Provide details of Home Office expenses
one; the cost of the completed construction project
• Provide details of CAD costs compared to nor- is passed on to consumers via price increases on just
mal / typical pricing submissions.
about every product, so any time we can contain
• Travel / Per Diem costs compared to normal /
costs it is a good situation for people. This section
typical pricing submissions
discusses some capital cost estimating fundamentals,
• Provide details of Engineering Fee percentage
it goes into how to optimization of the construction
compared to normal / typical pricing submissions.
process especially the CAPEX estimating effort, it
• Describe and list details of Construction Mantouches on the needs or demand, for new products
agement man-hours and costs.
together with methods on going about producing
• Construction Management General Condition’s various levels of CAPEX estimates. Refer to this
requirements
Section 2 and 3 for appropriate
• Construction Management Fee
estimating methods to be utilized
basis compared to normal / typical
in producing CAPEX estimates.
A large amount of informapricing submissions
The Engineering, Procurement
tion and data needs to gen• Provide details related to start
and Construction of a new or uperated, collected and evaluup costs.
graded building, chemical plant
ated in the production of a
• Provide details related to
or manufacturing facility requires
CAPEX estimate, from any
various Bonds used in the CAPEX
a substantial capital investdesign or reports that have
estimate.
ment expenditure possibly over
been previously completed.
• Provide details on any Wara period of three years period
ranty / Extended Warranty issues.
prior to any return on investment
• Describe and list details of any
(ROI) being realized. This secrequired inspection / validation costs.
tion and the following sections have been written to
• Describe and list details of commissioning
provide some guidance in producing these important
scope man-hours and cost.
project deliverables. The construction industry is a
• Statement on the basis of the dates / currency
“mixture” of assorted sectors that all have a comexchange rates that were used in compiling estimate mon thread, i.e. see the “players” listed previously
• Detail basis of Contingency (Provide a Monte
in Section 1 and in later sections of this publication.
Carlo / REP analysis of contingency)
A large amount of information and data needs to
• Provide data on Management reserve
generated, collected and evaluated in the production
• Provide a project by month Cash Flow forecast of a CAPEX estimate, from any design or reports
• Basis of Escalation / Inflation / Exclusions /
that have been previously completed. In most cases
Assumptions / Inclusions mid points of EPC effort.
this information can be found / or is discussed in
When the above checklist is completed, the
the following sections of this publication. Some of
compiled / completed estimate can serve as the
these documents include: (A) Scope of Work / Mis“baseline” cost budget for tracking scope changes or sion statement / Estimating plan. (B) Process Flow
until the next estimate is completed (when additional Diagrams, (P.F.D.’s). (C) Front end / preliminary
engineering / design work has been completed).
scope of work statements (execution approach) (D)
The construction of industrial facilities i.e.
Plant / facility location (and location within an exist-
Copyright © 2017 Compass International, Inc.
54. | SECTION A2
ing facility). (E) Preliminary / early major equipment lists (with budget pricing). (F) Location of any
existing utilities / existing tank farms. (G) A major
milestone schedule (start and completion date) (H)
Applicable sketches / notes / photographs / videos
etc. (I) Preliminary P. & I. D. ’s and or process flow
sheets / block diagrams and any other relevant data
that will help support or add accuracy the estimating
effort. Again a lot of the issues related to the basic
of CAPEX estimating effort, the CAPEX estimating fundamentals are discussed in some detail in
Section 1, 2 and 3 of this publication. Optimization
of the construction process especially the CAPEX
estimating effort is a win-win situation for everyone,
savings can be ploughed back into the economy,
providing new opportunities for companies and individuals. The Engineering, Procurement and Construction of a new or upgraded building, chemical
plant or manufacturing facility more often than not
calls for a significant capital expenditure possibly
over a two to three year period prior to any return on
investment (ROI). In view of the fact that the requirement of new capital i.e. CAPEX dollars for the
above capital projects is initiated by market forces
/ evident demand, the new or re-vamped building, manufacturing facilities or production unit is
planned to comply with the stated goals of the new
or re-vamped building, manufacturing facilities or
production unit, that were initially spelled out by the
client. A large amount of additional information and
data of course needs to collect and evaluated, some
of this data is contained in the following sections of
this publication
Copyright © 2017 Compass International, Inc.
SECTION A3
Capital Cost
Estimating Methods
Estimating Methods: “Basically this boils down to understanding the two basic types of CAPEX
estimates: (1) Front End / Conceptual – estimates not having specific engineering deliverables (details) to support it: and (2) Detailed / Lump Sum CAPEX estimates that are based on specific details
i.e. 100’s of drawings and specifications”.
O
(which of course is part of the business solution) for
wners, A/E, EPC, CM firms and contractors when they generate their project Front future CAPEX investments. The project team must
deliver the correct business solution at the front end
End / Conceptual and Detailed / Lump
Sum estimates use many different formats stage(s) of CAPEX project, the scope, needs to be
to some extent reasonably defined, some front end
and configurations (i.e. estimating templates and
summaries). There seems to be no standard approach design work needs to have been completed, various
in industry, this initially can cause some problems to manufacturing / production schemes need to have
been considered and scoped out. The decision to enindividuals charged with the responsibility of regineer / procure and construct (EPC) a new Chemiviewing and checking these estimating deliverables
and was one of the drivers for the production of this cal / Manufacturing Facility, or to upgrade, revamp
or modernize an existing facility is
database. We have endeavored to
many times based on future busistandardize some of these Front
ness growth, maintaining market
This section contains hisEnd / Conceptual and Detailed /
share and to ultimately to generate
torical estimating benchLump Sum estimating summaand increase profits. Chemical /
marks (based on return
ries in this particular section. The
Manufacturing Facilities must be
underlying principle of this section cost data records) together
designed to meet the goals of (1)
with
numerous
single
point
is to outline a number of differSafety, (2) Quality of final product
metrics that hopefully will
ent approaches and methodoloand (3) Profit – Return on Investassist the reader in future
gies related to estimating the cost
ment. A substantial capital investestimating and auditing
of Process / Manufacturing type
ment is necessary for any new or
activities.
facilities. This section contains
upgraded Chemical / Manufacturhistorical estimating benchmarks
ing Facility.
(based on return cost data records)
Compiling
the
required funding documentation,
together with numerous single point metrics that
management approval procedures, and the approval
hopefully will assist the reader in future estimatfor expenditure (AFE) is a key project related mileing and auditing activities. The number one basic
stone, one in which the estimating effort is crucial.
principle of Project Management and it’s sub eleEngineers, Architects and Estimators - (All construcments i.e. Project Control – Cost Estimating is to
tion professionals that get mixed up with estimating
deliver the best technical and business solution to
the business unit considering or building a new facil- and budgeting) involved in the engineering / procurement and construction (EPC) Chemical / Manuity expansion(s) or upgrade(s), together with value
Copyright © 2017 Compass International, Inc.
56. | SECTION A3
facturing Facilities should, where possible, collect
questions that must be answered by the EPC Manand maintain a personal construction cost database
agement Team / Business Unit Operations team are
as follows:
of completed projects – let’s call it a “personal con1. How much capital will be required / what is
struction cost library” (magazines, articles, historical
life cycle costs needed to complete this project (This
cost records, technical papers, rules of thumb etc,)
includes all engineering, procurement and construcannual cost databases should also be purchased to
tion related costs)?
keep the individual abreast of current construction
2. Plant operating life cycle, i.e. the number of
costs and trends, additionally it makes sense to keep
years or some other period that the plant operate to
notes on value engineering ideas, different material
ensure recovery of the investment.
applications, alternative construction practices and
3. What are the estimated operating costs (who
utility / energy requirements and costs. The “percompiles this input data), is it needed prior to the
sonal construction cost library” should be continucompletion of the Front End / Conceptual Estimate?
ously maintained with latest data from a multitude
4. What are the ROI / EBITDA on the capital
of sources, i.e. your last project. The “personal
construction cost library” should provide benchmark expenditure, how many years will it take to achieve
payback on the capital expendidata on, construction materials,
ture?
construction labor, delivery times
5.
Are there other technion complex production equipment The final review or verdict
cal – manufacturing solutions that
– long lead delivery items, labor
as to whether or not to
can be used / evaluated to improve
productivity, engineering / archiproceed forward with the
the ROI / capital outlay, tolling,
tectural costs and man-hours, in“new or revamped” process
value engineering and or risk mandirect field costs, transport costs,
/ chemical facility is to say
agement?
escalation and start-up costs, spare the least an involved one.
6.
Is this plant located
parts costs plus numerous other
in the best location to provide
line items that need to be evalumaximum Return on Investment; is it close to future
ated and estimated during the Estimating / Budgetmarkets?
ing effort.
7. What codes / standards / specifications curThe final review or verdict as to whether or not
rent and future will be used in the design of the facilto proceed forward with the “new or revamped”
ity, metric, imperial, CSI Company or engineering
process / chemical facility is to say the least an
firm’s specifications?
involved one. The decision process entails many
8. What are the permit needs - timing, local /
issues, these issues must be weighed against the curnational / environmental?
rent market forces; can we make a decent return on
9. What is the timing / milestone to be
the capital investment? What is the payback period
achieved, normal schedule or fast track, are there
5 years or 10 years? How will our operating costs
stack up against our competitors? What are the local any unique situations such as modular construction
and governmental permitting requirements, does the or toxic materials that needs to be considered?
10. Any financial incentives / tax breaks – tax
location that has been selected make sense? Is there
holidays, training costs, offered by country or state
existing utilities close to our plant? Will we have to
government?
build roads and other related utilities to support this
The CAPEX capital cost estimates, to be a usenew facility? Are we trying to beat a competitor to
ful project control tool, needs to reflect the current
the marketplace? What are the main drivers (busiscope of work. If the scope is not defined to well a
ness goals) that need to be realized? Some of the
Copyright © 2017 Compass International, Inc.
SECTION A3 | 57.
resolution factor needs to be applied to the known
need to be considered so they can be scoped out
scope to “put meat on the bones.” The CAPEX esti- early and the cost benefits or penalties can be conmate needs to take account of the partial or complet- sidered.
Prior to commencing any capital cost estimating
ed design deliverables (current drawings and specifications – even though some of these drawings may activities, the Business Unit / Operating Unit would
be less than 50% complete), latest schedule (comple- have completed a Business Economic Analysis; this
would include such items / activities as:
tion date), and the execution strategy (procurement
A. Market Research / Sales Volume
– buy-out - contracting approach) in order to set up
B. Return on Investment (ROI) / EBITDA
a realistic capital cost baseline, that can be used as
C. Selling Price / Cash Flow analysis / Payback
a project control tool to monitor future changes in
Period
design and operating philosophy. In the last 5-10
D. Operating Costs / Energy
years there has been an industry
Costs / Capitalized Spare parts
wide trend to move away from
E. Raw materials cost / Investsingle point, (single estimator(s)
In the last 5-10 years
ment Costs / Depreciation Rates
or group of estimators working
there has been an industry
F. Investment Incentives / Tax
as a single point of contact – prowide
trend
to
move
away
Holidays / Maintenance costs /
ducing the final estimate) we are
from single point, (single
Operator training
now seeing more of a team apestimator(s)
or
group
of
esG. Leasing / Tolling / Third
proach in compiling a capital cost
timators working as a single Party Manufacturing
estimate(s), there are real benefits
point of contact – producThe Cost Estimator / Engineer,
to this approach:
ing
the
final
estimate)
we
if he or she works for an Owner
• The CAPEX estimate can be
are now seeing more of a
Company may sometimes get
produced usually in a shorter time
team
approach
in
compiling
involved in estimating some of the
frame; the correct scope of work
a capital cost estimate(s),
above cost related items:
is captured and known sooner.
there
are
real
benefits
to
The flow chart on the next
• Mistakes can be picked and
this
approach:
page depicts the analysis / business
resolved much sooner.
cycle that most Owner companies
• The specialist engineers /
follow to determine which capital
designers can focus on their disciprojects should be pursued and
pline, i.e. civil, piping to produce
rejected.
quantities and take-off’s.
The EPC Management team sometimes known
• The design team can assist in the estimating effort, (obtaining bulk material pricing, vendor quotes as (1) task force or (2) core team is established’ typically the task force / core team members come out of
and bids, ensuring there is a quality control and
accuracy associated with the auditing function being the ranks of the operating company and possibly key
members of the selected EPCM contractor. These
utilized during the capital cost estimating effort).
individuals must understand and be involved in the
• The estimate can be broken out by WBS /
questions posed above and the answers coming out
COA, via the work effort of the specialist engineers
of the above analysis and assist with the next steps
/ designers for future bid packages and additionally
in the projects path forward, in order to proceed to
used as procurement / buy out tool.
project approval, they have significant responsibility
• The capital cost estimate can / should be used
in optimizing the capital effectiveness of the project
as a project control tool to track and monitor the
i.e. (optimizing the bottom line cost of the project).
project expenditures, changes in scope, of course,
Copyright © 2017 Compass International, Inc.
58. | SECTION A3
BUSINESS
ANALYSIS
Items A – G
(above)
FRONT END /
CONCEPTUAL
ESTIMATING
+/- 30%
SCOPE OF WORK
DEVELOPMENT
PROCEED
(Yes or no)
Abandon study
if companies
ROI investment
criteria is not
achieved, move
to next prospect
The EPC Project Management team “must” know
what the CAPEX projects final cost is projected to
be and the construction / commissioning completion date i.e. the date the project will be handed over
and accepted by the operating group. The effort of
producing a conceptual / front-end estimate is one of
the first actions that are made to ascertain if the proposed CAPEX project is a viable enterprise / opportunity for the business. The conceptual / front-end
estimate perhaps is a (+/-40%) project budget, this
early estimate, of course, is predicated on an early
front end scope of work statement and typically a
number of specific key milestones that need to be
achieved, this project budget can be used as a “what
if tool” to determine:
1. The best location to place the CAPEX project
2. The profitability of the CAPEX project, the
Copyright © 2017 Compass International, Inc.
Continue with study
if companies ROI
investment criteria
is achieved produced
more defined scope
and +/- 20% Estimate
return on investment (ROI) or (EBITA)
3. A cash flow plan can be developed from the
project budget.
4. The initial project budget can be used as an
initial baseline / control tool, to use as a starting
tool to select the best path forward in considering
technology, future business opportunities and goals.
Later updates of this early estimate will provide an
audit trail of the CAPEX projects’ life cycle.
The “process” industry i.e. chemical / refinery
/ manufacturing industries have historically used
these early front end CAPEX estimates to make
their business / investment decisions. They have a
wide application in both North America, Europe
and around the world. They are used primarily as a
selection tool in shaping and deciding where future
(CAPEX) capital funds should be assigned and to
that point it is in the businesses / owner interest to
SECTION A3 | 59.
make sure these conceptual / front-end estimates
equipment to another third party.
are as complete and accurate as they can be, even
• Facility abandonment costs and future clean up
though a reasonable amount of front end engineering provisions.
• Scrap metal / material cost related credit(s)
expenditure needs to be made.
Additional cost related topics that may need dis- related to any demolition work.
What is a scope document? It basically vericussed and made part of the initial CAPEX estimate
fies the CAPEX projects charter; it focuses in on
include some or all of the following:
(1) what, (2) where and (3) when. Scope is the term
• Relocation of manufacturing equipment from
used to describe the extent or boundaries of a proja current company location to this specific project
ect (consider it as a dotted line around the project).
location.
Scope definition entails describing the major project
• Start up related materials and labor / commiscomponents / deliverables into a listing of managesion costs.
• Management reserve allowances and how they able work activities or tasks. The scope of work
(SOW) statement (project baseline) is a critical
are spent.
document. It defines in specific language the servic• Design and construction (resolution) allowes of work to be performed and the
ances for both detailed design,
activities to be performed. The cost
procurement and construction
and schedule could and does many
work and the overall management What is a scope document?
times experience problems and isphilosophy on contingency allow- It basically verifies the
sues, if the SOW is inconsistent or
ances and how this issue(s) are
CAPEX projects charter; it
does not fully reflect the work to
captured in the CAPEX estimate.
focuses in on (1) what, (2)
be performed. It is therefore criti• Various location incentives
where and (3) when.
cal to the wellbeing of the CAPEX
provided by countries, states or
project that the SOW is correct and
regional development agencies
all changes are incorporated in the
(such as free real estate / governlatest SOW statement and is communicated to the
ment grants / tax holidays, this could be considered
project team members. The Project Scope of Work:
as a credit line item in the CAPEX estimating sumis essentially determining:
mary if in fact this is a reality).
1. The location(s) of the proposed CAPEX
• First run chemicals, catalysts / chemical / initial
project.
fill needed during start up activities.
2. The CAPEX project(s) schedule, from fund• Licenses fees / Royalties that need to be paid to
ing approval to start of production, list out of key
an owner / holders of certain technology.
• Costs related to refurbishment of existing facil- Engineering, Procurement, Construction and handover milestones that need to be accomplish.
ity production or utility equipment.
3. The Engineering, Procurement and Construc• Operator training grants paid by a local governtion approach and contracting strategy.
ment departments / agencies:
4. A listing of project restraints / challenges i.e.
• Early studies / previous owner related front end
permits that are needed, consent decrees (must be
engineering activities and expenditures.
completed by such a date), construction activities in
• Expense items such as demolition and decoman operating facility.
missioning work.
5. The WBS / COA structure or any enterprise
• Mothballing activities and de-commissioning
software coding issues needs to be known.
work.
6. Any land acquisition costs or major site im• The sale of any production equipment / utility
Copyright © 2017 Compass International, Inc.
60. | SECTION A3
provement issues.
he or she needs to be the eyes and ears of the Senior
7. Facility capacity / production nameplate (this Management (BOD level individuals) and the EPC
includes the number of items / pounds – kg of prod- management team supervising the overall Engineeruct to be manufactured).
ing, Procurement and Construction effort, they must
8. The quality specifications and requirements
accept and take ownership of the estimate (the buck
that the product needs to meet.
stops here). Senior Management should be con9. The hourly / daily / weekly / annual producstantly conscious of the committed and to date costs
tion or campaign rate that the facility will produce.
and any trends to date (on a bi-monthly or monthly
10. The manufacturing operating philosophy i.e. basis), and more importantly the projected total
(Batch operation, 8 hours operation or a Continuous installed cost of the EPC CAPEX project, someoperation).
times there is some “marginal” relief of this situation
11. The technology to be utilized, the major
(some owner companies will allow a CAPEX project
equipment (production equipment) and the manufac- to over run by 10% or less without a lot of problems
turing control / automation philosophy.
- prior to obtaining additional / supplementary funds
12. The required services and utilities required
to complete the project, however be aware hell hath
to meet the needs of the CAPEX
no fury like the Board of Direcproject.
tors wanting to know why a CA13. The number of facility
PEX project overran its’ budget
When
all
three
of
these
operators needed to operate the proby more than 10%). It is the cost
posed facility; this may be optional metrics are achieved on a
estimators / engineers function /
specific
EPC
CAPEX
project,
in the early scope development
responsibility to know the current
success
can
be
claimed.
phase.
status of their project, they are re14. The facilities / buildings /
sponsible for the two of the three
support requirements needed for the
main aspects of Project Delivery
proposed facility.
/ Management cost and schedule. These three key
15. The offsite requirements, the storage / waremetrics are known in the EPC industry as the “Three
house needs and unloading and loading methods,
Legged Stool” they are as follows:
new access roads, rail spur etc.
1. Schedule (when is it going to be completed,
CAPEX estimating and project planning / sched- was the project delivered on schedule).
uling are closely allied and, of course, this is why
2. Cost (what will it cost, did the final cost fall
these two activities fall within the Project Control
with in a -/+ 10% range of the authorized budget).
scope of work; neither of these activities can be
3. Quality / Safety (will the facility produce the
adequately realized without contribution (feedback)
items / at the required production rate / within specifrom the other, manpower requirements, installation fication it was designed for in a safe and economic
rates, peak manpower needs, worker / facility footmanner).
print ratio, worker productivity plus a bunch of other
When all three of these metrics are achieved
related topics impinge on each other. It is a “given”
on a specific EPC CAPEX project, success can be
that the job function / role of the cost estimator /
claimed.
engineer on any future / ongoing CAPEX project
The management and organizational progression
is to – develop the estimating documentation basis,
within the EPC engineering / construction industry
i.e. exclusions, inclusions and to appraise and deter- has been going through major changes in the last
mine all the required scope items and to forecast the decade or two. Project Managers are coming out
final cost(s) of the CAPEX project(s), in this role
of the ranks of Project Controls not out of focused
Copyright © 2017 Compass International, Inc.
SECTION A3 | 61.
engineering / discipline ranks (just consider how
much we rely on the computer today as compared
to 5 or 10 years back). This “sea change” has made
significant transformation to project management
styles, proficiency and reporting systems. Historically the focus had been on the production of the detailed design, now we see a more rounded approach
where the focus is on cost and schedule. This has
driven the need for current and well-founded cost
and performance metrics (estimating / performance
standards, reports) many construction professionals
have a distinct dislike for this new approach – the
criticism is that there are just too many reports. The
fact of the matter is that Estimators, Cost Engineers,
Project Managers and other Construction Professionals all around the world across a broad spectrum
of construction sectors are doggedly searching for
valid, accurate and easy to use Front End / Conceptual capital cost estimating methods, systems and
benchmarking data. Hopefully some of the following
methodologies presented and specific to ratio estimating in this section and the other conceptual cost
estimating methods and data contained within the
other sections will assist the reader in this endeavor.
A word of advice on estimating “rules of thumb”
– check them out before using them, there are
thousands of these historical units / numbers, benchmarks and factors “floating around” in the engineering / construction industry (some are valid and some
are just plain wrong – do your homework prior to
using and relying on them). Numbers that work in
North America may have no relevance in Europe
or the far east, the basis of the numbers should be
fully understood prior to relying on them, invalid
or erroneous numbers can lead to unrealistic capital cost estimates and potential over-runs and other
personal (career) ramifications – buyer beware. It is
the EPC Management team (with significant input
from the project controls professional(s), estimator
/ cost engineer) task to insure, by timely communications (e-mails, “dashboards” / weekly, bi-weekly
and monthly reports and updates), that the dialog
- cross pollination - communication on the current
and forecasted cost and schedule status takes place
with all the team members and that both the capital
cost estimate, project plan and the execution plan
are reflective of the current status of the CAPEX
project and are completely updated and fully mirror
the “current” scope of work to be accomplished and
reflects the actual Engineering, Procurement and
Construction project deliverables, methodology and
status.
In the last five to ten years, there has been a
move by Project Management / Project Control
professionals to put great importance on sophisticated computerized cost estimating systems / project
control systems linking cost, schedule, procurement,
field performance, and document distribution etc.,
these systems have some excellent advantages. They
can provide, future benchmarks, current histograms,
level 1, 2, 3 and 4 schedules, 30- 90-120 day look
ahead schedules, earned value reports, S curves, productivity performance profiles and much more. The
reality is that all the computerized estimating outputs
are only as good as the information that is inputted
into the computer. The old saying “garbage in garbage out” still applies today. As a result, maintaining and keeping up to date the capital estimate final
cost “budget” with frequent enhancements, adds and
deduction due to change orders / scope modification / field changes / productivity changes etc., is the
primary function of the estimator / cost engineers on
Engineering, Procurement and Construction (EPC)
related capital projects. The unceasing review of numerous actions such as expenditure tracking, change
orders, trending reports, bulk material buy out activities, number of purchase orders placed, commitments, tracking home office activities (man-hours),
tracking engineering and procurement progress,
monitoring field labor costs / productivity measuring, etc. These measures are required to manage,
monitor and control the project and report the final
capital cost / expenditure of the project(s) to the EPC
Project Management team. Accurate / timely and rationally compiled complete and precise capital cost
estimates are the life blood of any profit motivated
Copyright © 2017 Compass International, Inc.
62. | SECTION A3
chemical / manufacturing enterprise. These early and equipment typically are provided by the engineerimportant cost evaluations are the essential decision ing group, as we have mentioned before, some time
making tool and metric, on whether to proceed with
the discipline engineers will assist in the capital cost
a proposed project or not (perhaps the project needs
estimating effort, compiling “take off’s” and lists of
to be stopped – because of a huge potential overrun
required materials such as piping (including valves
in the final forecasted cost), or to delay the decision
and fittings) and E&I quantities (instrument devicto proceed (1) to another location, (2) until some
es). Whoever compiles the total capital cost estimate
time in the future – three years from now when the
should consider the following topics: (A) Have an
economy is in more of a growth mode, or (3) look
enhanced understanding (the big picture) of EPC
for other process / technical / business solutions
project(s) specific to capital cost estimating and how
(look into tolling activities). Again accurate / timely specific scope items / change orders / scope modiand comprehensive capital cost estimating of the
fications can impact a capital cost estimate, field
cost of a CAPEX project is fundamental and vital to experience will be a big plus in this situation. (B)
any organization, this skill set give a ”competitive
Utilize adequate estimating expertise i.e. in house
advantage” both Owners and EPC companies, this is expertise, historical data, and benchmarking metrics
why accurate and timely front end / conceptual esand to be able to compile front end / conceptual, pretimating is so important in today’s
liminary and detailed estimates
competitive global marketplace.
when required. (C) Be aware of
A capital cost estimate is not
the relationship of external forces
over and done with when a project
(escalation – such as oil price
A capital cost estimate is
management / engineering review
spikes, terrorism, labor shortages
not over and done with
has approved the CAPEX capital
and political events, such as we
when a project managecost estimate. The estimator / cost
have witnessed in at least two
ment / engineering review
engineer must all the time examine
South American countries) scope
has approved the CAPEX
/ evaluate the capital cost estimate
creep / change order control and
capital cost estimate.
with the project manger / engineer
how this can impact the final cost
perhaps on a bi-weekly / monthly
of a project. (D) Be capable of
basis to ensure the project is regathering relevant and germane
maining within the projects budget. These bi-weekly project data / scope items and become adept in re/ monthly meeting should be called status meetings
viewing / auditing all types of estimates to establish
/ trend meetings, potential change orders / claims
the level of detail, completeness and accuracy that
/ scope changes etc should be discussed and laid
reflects the current scope of the proposed project.
out on the table so the real impact of these change
CAPEX EPC projects are the “means” by which
orders / claims are fully understood by the project
a future business plan(s) are built into important /
team. The production of a Capital Cost estimate is
sustainable / flexible and profitable future operata ”team” effort, it is not a single individuals work
ing assets – it is basically how companies grow and
effort, however many times the cost estimator /
prosper. Successful companies typically build their
engineer (or in the case of a large project perhaps a
new plant or add on to their existing plants in the
team of cost estimators / engineers 4 – 6) will comright locations and they typically don’t pay too much
plete and compile the lions share of the effort, scope for their facilities, i.e. they are not “gold plated” they
definition together with certain key engineering
are designed in a safe and cost effective manner.
deliverables i.e. a major equipment list, a plot plan
Successful capital EPC projects are deemed sucof the proposed facility, indicating location of major cessful if they meet the legged stool metric previ-
Copyright © 2017 Compass International, Inc.
SECTION A3 | 63.
ously referred to. It must be remembered that the
end use of a capital project is to increase product
sales, beat competitors to the market place, to operate the facility at lower unit operating costs and to
be flexible and sustainable for the future growth
goals of the owners operating unit (future expansion
added operating units or addition production trains
need to be considered- going forward). A capital
cost estimate, to be effective management tool (and
a project control tool) for implementation and future
cost management and planning (consider a capital
cost estimate as a road map – you start out in A and
you need to get to Z). This document and an execution plan are key tools needed to get the project
completed, the capital cost estimate should have line
by line items (by Company code of accounts (COA)
– or work breakdown structure (WBS) where possible) showing major equipment, freight costs, bulk
and engineered materials together with construction
labor (man hours) by discipline i.e. civil, mechanical, piping, E/I, etc including indirect build up such
as engineering costs and man hours, construction
management, general conditions and contingency
etc.. This data is needed to pragmatically establish,
possible long lead major equipment items, extent of
bulk materials, field labor requirements. Do we need
to establish a concrete batching plant, design staffing
needs, construction management needs, spare part
requirements and period / timing / duration requirements? The EPC project team requires “estimating
details” as early as possible in the execution phase to
plan the purchasing effort (buy out) and execute the
project, perhaps by various work packages. Capital
Cost Estimates can be (1) early front end conceptual, (2) preliminary a decent amount of engineering has been completed, or (3) definitive / lump
sum at least 50% of the required engineering effort
has been compiled. These estimating types are of
course reliant on the quality of information provided
and the estimating effort required to produce them.
Cost estimating procedures vary from down and
dirty relatively quick (and not very accurate) ratio
/ percentage factoring to highly developed “details
oriented” computerized capitalized cost estimating
/ scheduling systems that can produce substantial
amounts of capital cost estimating and in some situations engineering data. If the above described methods are correctly utilized, they can generate very
precise and detailed capital cost estimates that have
a high degree of creditability and more importantly
can forecast the final cost of the CAPEX project.
To drive home a basic point again, it should be
kept in mind that there are three basic types of estimates, (A) Front End Estimate (OOM, preliminary,
conceptual etc) perhaps a good amount of basic process design has been compiled - PFD’s, plot plans,
we know the number of major equipment items,
we know we need offsite storage, we know we
need loading areas, we know we need a warehouse,
however the detailed design has not been completed
or it may only be less than 20%. (B) AFE Funding
/ Preliminary (perhaps a hybrid of A and C, and (C)
Detailed Estimates (Lump sum bids, GMP’s, Design
/ Build etc) are based on a lot more definition, the
design deliverables may be 30% - 60% complete,
we have a priced out major equipment list, we have
detailed quantity take-off’s, we have plot plans,
general arrangement drawings and the P&ID’s could
be well advanced. Precise (bearing in mind the level
of design work that has been compiled) and timely
capital cost estimating preparation is a very important aspect to successful project execution and profitable projects. Typically the decision to execute the
EPC project cannot proceed without management
approval of the capital cost estimate. An overstated
capital cost estimate could annul a prospective /
attractive money making project while on the other
side of the coin, an understated or inconsistent capital cost estimate can lead to problematical financial
implications for the EPC project and probable substandard future personal evaluations for all members
of the “EPC project management” team. The crucial
requirements of a precise and well defined CAPEX
capital cost estimate, be it (A) Blue Sky / Front end
/ conceptual, (B) AFE Funding / Preliminary or (C)
Lump Sum / Hard Money / Definitive, are to have
Copyright © 2017 Compass International, Inc.
64. | SECTION A3
or develop a rational and comprehensive scope of
some or all of the following:
work statement and to use logical estimating method
• A detailed scope of work statement / mission
(a ratio approach or a an exhaustive detailed quanstatement
tity take-off approach – utilizing the four step ap• A listing of current engineering deliverables
proach described earlier), together with the time and currently completed
resources to complete the assignment, a milestone
• Basis of design
event schedule and finally an ”estimate basis”, that
• Operating philosophy (24 / 365 days or 8 hours
documents inclusions, exclusions, assumptions and
per day)
a complete listing of drawings and specifications
• A manufacturing / process description and
that the capital cost estimate is based upon. A viable P.F.D.’s (process flow sheets)
“scope of work” or mission statement (project brief)
• Sketches / Drawings / photographs / other germust be founded or formulated on front-end engimane Engineering Deliverables
neering studies or basic production or manufacturing
• Outline and Detailed Specifications (owner or
concepts, it should be based on an established design EPC firm)
philosophy that will be implement• Project specific layout infored, layout concepts / preliminary
mation, location / tie-ins / access
plot plans etc, to corroborate and
problems
On multi million dollar CAsupport the capital cost estimate
• Major Equipment and Bulk /
PEX EPC projects the owner
basis.
Engineered Materials
or a consortium of owners
On multi million dollar CAPEX
• A major E-P-C milestone
may require an indepenEPC projects the owner or a conschedule, indicating major start
dent cost estimating audit /
sortium of owners may require an
and finish dates
review that would include a
independent cost estimating audit /
• Procurement schedule
detailed assessment of the
review that would include a deshowing any long lead delivery
estimating basis and methtailed assessment of the estimating
items
odology employed in probasis and methodology employed
• Any owner provided major
ducing the CAPEX estimate,
in producing the CAPEX estimate,
equipment or materials
together with the anticitogether with the anticipated ac• Off-site information (repated accuracy of the CAPEX
curacy of the CAPEX estimate.
quired facilities and utilities, etc.)
estimate.
Typically these audits / reviews are
• Realistically accurate
performed usually by specific “inquantity take-offs and listing of
dependent “ engineering / construcallowances
tion individuals (industry experts
• Project specific major
/ guru’s, graybeards consultants or third party E /
equipment, unit material prices
A firms), sometimes if the cost of this “third party”
• Installation Work Hours / All in Labor Rates
estimating review is cost prohibitive and in house
(union or open shop)
experts or “seasoned” senior project managers with
• Detailed and systematic assessment of all scope
many years of capital implementation / cost estimat- of work items with likely cost impact
ing experience and major project / field execution
• Engineering hours and billing rates / Field Inexperience will be called in to complete this effort if directs costs
it is deemed necessary. The engineering deliverables
• Miscellaneous items, e.g., spare parts, vendor
and project specific data that is typically required to
assistance, training costs, owner costs, front end
complete this type of audit / review effort includes
engineering studies etc.
Copyright © 2017 Compass International, Inc.
SECTION A3 | 65.
• Operating costs
is imperative in the early stage of a projects life
• Utility production and costs
cycle. Capital cost estimating approaches (methSome of the most important features of a reliable ods of compiling an estimate) are very important,
capital cost estimating system - in order of imporparticularly when they are built / based on a welltance are as follows: An estimating plan or memo,
maintained databases (usually large owner – operatoutlining who provides what and when, adequate
ing companies and some of the larger EPC firms
time and resources to get the assignment completed, maintain large proprietary estimating systems. In
estimating tools that will be utilized, relevant cost
recent years, we are seeing a movement to Enterdata publications, procedures and systems, historical prise Business Systems i.e. SAP, J D Edwards etc.)
return cost data if possible / man-hour production
– perhaps these systems will develop modules that
rates, computerized estimating formats or spreadproduce CAPEX estimates in the future. That besheet formats, a roll up your sleeves / get it done by
ing said, there is no substitute for or replacement for
an individual or a team approach and a levelheaded
hard work, an ability to drill down to the details, an
businesslike / attitude and relevant engineering and
inquiring mind, a resolve to optimize the capital cost
field experience. The development
estimating system (or the project
of Front End / Conceptual Estimatcontrols system) and knowledge
ing methods and systems can seem
of the specific EPC project and the
The consistent and attento be a overwhelming undertaking
stated goals and business objective
approach
concerning
to the uninitiated. Nevertheless,
tives. The capital cost estimate
nailing down the project(s)
with the use of the most recent
should supply adequate details and
scope
and
the
timely
comcomputer applications and sophistidata to determine its credibility
pletion
and
fine
tuning
of
a
cated database programs the effort
throughout the projects’ life cycle
CAPEX estimate is the secan be a lot less challenging than
and contain sufficient details to
crete
of
success
in
estimatit used to be - before that advent of
allow cost control, value engiing EPC projects.
the computer age. Some of the key
neering and progress monitoring.
items to consider are, (1). CAPEX
Listed below A thru G are some of
EPC related data gathering (close
the main categories of capital cost
out reports of completed CAPEX EPC projects), (2). estimates methods together with their accuracies.
CAPEX EPC data review and calibration and conditioning for future applications - understanding high
CAPITAL COST ESTIMATING NOMENCLATURE /
point and low points and applying common sense
APPROACHES / METHODS
to make the data “real” – separating the odd ball
Capital Cost Estimating methods can be grouped
values from a collection of relevant data and (3) the
into at least seven basic methods or classifications
development of benchmarking metrics from this data (possibly more, there are many names / nomenclafor future use in CAPEX capital cost estimating and ture / descriptions / types of estimates used within
analysis of current in-house and external estimating
the engineering / construction industry), these are as
data.
follows (the seven methods shown below relate or
The consistent and attentive approach concerncorrespond to the estimate descriptions on the foling nailing down the project(s) scope and the timely lowing pages), together with the amount of detailed
completion and fine tuning of a CAPEX estimate
design engineering required to compile the appropriis the secrete of success in estimating EPC projate estimating method.
ects. Developing and defining the project require(A) Blue Sky / Order of Magnitude Estimate less
ments (the shopping list of items to be installed)
than a couple of percent of the engineering is com-
Copyright © 2017 Compass International, Inc.
66. | SECTION A3
pleted, or perhaps no detailed design work has been
completed.
(B) Scale up / Capacity Estimates / Exponents
(6/10th factor) 1% - 5% of engineering completed
(this method could also be grouped together with
item A. above) Square Foot / Cubic Foot - 5% -10%
of engineering compiled (could be grouped together
with item C below).
(C) Ratio / Factored Method- Some of the more
frequently referred to one’s include: Hand Factors,
Miller Factors, Cran Factors, Guthrie Factors, Wroth
Factors, Peters & Timmerhaus Factors, Compass
Factors, Chilton Factors, Bach Factors and Lang
Factors (to name but a few, research would indicate
that there are possibly 100’s of these ratio / factored type estimating techniques in use today) these
estimates are applicable when perhaps 5% or less of
engineering is completed.
(D) Front End Semi-Detailed Estimates - 5%
- 20% of engineering / scope definition is completed,
could be considered a hybrid of perhaps (C) and (E).
(E) AFE Funding Estimate / Validation / Preliminary Estimate 10 % - 25% of engineering deliverables have been completed.
(F) Validation / Control / Control Estimate
(Monitoring) 30% - 70% - usually 50% of detailed
engineering completed; some key Purchase Orders
have been placed.
(G) Lump Sum / Hard Money / GMP - 50%
- 100% detailed design completed, major equipment
is perhaps 90% committed, civil work is underway,
engineered bulks are being delivered, construction
may be 10% – 25% complete.
A. Blue Sky / O.O.M. Order of Magnitude
Estimate / Factored / Ratio Estimates / Exponent
Estimates / Square Foot, etc. (+/- 30% Accuracy)
Typically these classifications and types of
capital cost estimates present only blue sky / O.O.M.
(+/- 30% accuracy) costs and are usually needed in
the early concept / front end stage of a project (or
design study). They are used as a trigger mechanism
or as “go /no go” managerial assessment metric
(stop the engineering / study - now, this project will
Copyright © 2017 Compass International, Inc.
not provide the ROI / EBITDA on the future capital expenditure, i.e. bad economics or on the other
side of the coin – yes - proceed with more research /
engineering, the initial ROI / EBITDA for this particular capital cost estimate looks promising). The
starting point could be no more than a given production capacity, i.e. tons of cement produced per day
or barrels of oil production per day or year.
B. Capacity / Exponent Estimates (6/10th
rule) Method (+/- 25% - 30% Accuracy)
Front End capital cost estimates can be created
by means of utilizing capacity cost ratio exponents
based on existing / historical cost data of (1) company facilities or (2) by reviewing published industry
references. The exponent technique is used to estimate the cost for a new size or volume / production
rate from the actual cost of a comparable operating
plant of identified size or capacity. The correlation has a straightforward exponential mathematical
structure:
Required Cost (Cost 2 New Plant) = Cost 1 (C2 / C1) n
Where the following input values are as follows:
Known Cost: Cost 1 = identified cost of plant / facility
equipment item
Required Cost: Cost 2 = new cost estimate of plant / facility /
equipment item
Known Production Rate: C1 = identified plant / facility
volume / production rate or size
New Production Rate: C2 = new plant / facility volume /
production rate or size
Cost factor: n = exponent / cost capacity factor (typically
ranges from .5 to .7)
This approach should be utilized for very early /
order of magnitude estimates, the resulting CAPEX
estimate could only be considered to be perhaps +/25 - 30% accurate. The industry average (exponent)
cost capacity factor (n) has an average value of between 0.4 and 0.8, 0.6 is widely used value that has
been widely used, hence it’s name the 6/10th factor,
there is good amount of published data on exponents
for a significant number of chemical / process plants
and major pieces of equipment, even construction
SECTION A3 | 67.
labor costs, piping, structural steel, engineering
service costs have been researched and these values
have been published. The off sites estimate is many
times excluded from the 6/10th factor. This procedure is assumed for the same time period and location, the value / outcome should be calibrated by an
appropriate inflation / escalation index, a listing of
these indexes is outlined in the following sections of
this publication. This estimating approach is widely
utilized in the “Process / Chemical / Manufacturing“
industries for a good number of processes, plants
and major equipment items, however these exponents in a lot of cases fluctuate over a wide range,
so care should be exercised when embarking on this
estimating approach. Exponents / factor values can
be found in various published books. A listing of
some of these exponents is detailed later in this book
in Section B 2.
C. Ratio / Percentage Uplift / Factored
Model / Multiplying Factor
This methodology / approach comes up with a
total installed cost (T.I.C.) for a plant or facility, it is
compiled a by multiplying the cost of major equipment item, i.e. a compressor, a pump, a tower etc,
by specific multiplier, that is an all-inclusive value.
This multiplier includes such items as excavation
and subsequent backfill, concrete, structural steel,
pipe, I/E, insulation etc. (i.e., all the bulk material
items and in directs plus detailed design and construction management). The original thought process and subsequent factors - is thought to be originally researched and compiled by Mr. Hans Lang
(Engineer / Estimator with a major engineering firm
in Philadelphia, PA in the USA). In the late 1940’s
and early 1950’s the method is known as the “Lang
Factor” method is widely used in the “Process” related industries, Mr. Lang is perhaps one of the early
experts on Process / Chemical plant economics and
estimating. There are a number of similar factors
produced by other individuals, these include Hand,
Cran, Gallagher, Suarez, Guthrie, Nishimura, Bach,
Chilton, Peters & Timmerhaus, Miller, Wroth and
Compass International to name but a few. In view
of the fact that some of these factors were introduced
20 - 40 + years ago many, estimators / engineers are
skeptical about using them today, however these
factors remain valid today as an early estimating
tool. Many engineers, contractors and owners have
compiled their own factors / multipliers to replicate
their particular practices and historical data. Note
these factors are useful for coming up with very
early order of magnitude estimates, the accuracy of
these factors are at best +/- 20 -30 %.
LANG FACTORS (AS PER HIS CHEMICAL ENGINEERING ARTICLE DATED JUNE 1948)
Total Installed Cost (T.I.C.) can be established for
(1) Liquids / Fluids, (2) Solids and (3) a hybrid of
(1) and (2) above, namely a Liquids / Solids plant,
this includes installation labor, bulk / engineered
materials, major equipment (delivered to site), detailed design, field in directs, construction management can be estimated from the cost of the delivered
cost of major equipment, using one of the following
Lang factors as multipliers. (The values excluding
land purchase, demolition, relocation, refurbishment
and off-sites related scope). The multipliers are as
follows:
4.74 - For liquids / fluid process plants (significant pumps and piping):
3.10 - For solid process plants (usually less
piping than fluids plants, with a preponderance of
grinders, crushers, material handling equipment)
example a cement plant:
3.63 - For solid-liquids / fluid process plants
(possibly a hybrid of the above two values):
Example (cement plant – solid processing plant)
major equipment d/d to site = $2.25 million multiplied by 3.10 above = $6.975 million. This value
would include all the necessary scope / work items
for a fully operational cement plant excluding the off
sites.
An average of Mr. Lang’s factors would fall in
the 3.80 – 3.90 range
Copyright © 2017 Compass International, Inc.
68. | SECTION A3
HAND FACTORS (CIRCA 1960 DATA)
Mr. Hand was employed by a large multi national
petroleum company in the 1960’s and 70’s. In his
methodology he recommends using a summing up of
single factors (multipliers) multiplied by the delivered cost of different major types of process equipment. The following is a sample of Hand factors:
Typically Mr. Hand’s multipliers fall in the 3.30
– 3.50 range.
WROTH FACTORS (CIRCA 1960 DATA)
Multiply the purchased major equipment (M.E.)
delivered to site cost by the appropriate multiplier
/ factor below, multiplier / factors include site
work, civil work, M.E. setting (millwright work),
internal(s) alignment, concrete foundations piping,
mechanical installation, structural steel, electrical,
instrumentation, insulation, painting, buildings /
facilities detailed design, engineering construction
management, construction equipment, etc. Assume
that the factors / multipliers excludes off sites and
demolition work.
MAJOR EQUIPMENT
MULTIPLIER / FACTOR
Blender
2.0
Blowers / fans (including motor)
2.5
Centrifuges
2.1
Columns w / o trays
4.0
Compressor, Centrifugal 2.0
Motor-driven (less motor)
Compressor, Steam turbine
2.0
(including turbine)
Compressor Reciprocating
2.3
Steam and gas
Ejectors
2.5
Furnaces (Cabin type)
2.0
Heat exchangers
4.8
Pump, Centrifugal, Motor-driven
7.0
(less motor)
Pump, Positive displacement 5.2
(less motor)
Refrigeration (package unit)
2.5
Tanks, Process
4.1
Tanks, Storage
3.5
Copyright © 2017 Compass International, Inc.
Data source / Information reference: Wroth.
Cost Estimating Factors / Chemical Engineering
Magazine: circa 1960 data.
Typically Mr. Wroth’s multipliers fall in the 3.80
– 4.00 range.
GUTHRIE FACTORS (CIRCA 1960) AND SIMILAR
FACTORS PRODUCED BETWEEN 1970 AND
TODAY:
Mr. Guthrie was a chief estimator for a large USA
based chemical company in the 1960’s and 70’s.
He developed a “module” conceptual estimating
approach that is still valid and widely used today.
Other cost ratio (multipliers) factors that have been
available via articles and publications in last couple
of decades include installation factors produced by
Miller, Gallagher, Chilton, Nishimura and Peters
& Timmerhaus. Analysis on Guthrie, Miller, Lang,
Gallagher, Compass, Chilton and Peters & Timmerhaus published factor data, using a benchmark
of $10 million of assorted major equipment, i.e.,
Towers, Heaters, Compressors, Heat Exchangers,
etc. delivered to site would indicate that the average
installation multiplier would be 3.80 - 4.10 range for
a liquids plants i.e. with a predominance of pumps,
vessels and good amount of interconnecting piping,
note this value would exclude O.S.B.L. scope of
work items, such as waste water treatment facilities, cooling towers etc, . The following seven data
/ benchmarking values / tables are factored / ratio
/ percentage estimating tables based on return cost
data, these can be used by the reader on future CAPEX estimating assignments. These tables indicate
a basic methodology for determining and compiling
a factored CAPEX capital cost estimate. The key to
obtaining reasonable results with this approach is to
obtain accurate major equipment pricing, from more
than one vendor if possible (with written quotes
if possible), these percentage uplifts / percentages
should be adjusted for the readers own unique specific applications, these ratio’s, multipliers, percentage uplift factors take into account if the process is
applicable with processing fluids (usually needs a lot
SECTION A3 | 69.
of piping systems, together with pumps), solids or
a combination of both typically construction equipment (cranes, welding machines, etc.) is included
in both the material percentage and the 10% - 30%
field establishment cost uplift.
The following cost models should give the
reader an appreciation of the ratios / percentages associated with Chemical / Refinery / Manufacturing
type facilities:
(1) Typical Ratio Factored Values of a grass
roots North American Chemical 75% Fluids and 25
% Solids Plant, I.S.B.L. only, built on an established
/ existing site with major utilities available or needing minimal upgrade to support this new plant. This
data is base on three similar $5- $15 million facilities. Accuracy would be in the +/- 25% range.
Notes: above values exclude O.S.B.L. values,
demolition / expense items, future inflation; profit
has been incorporated into each specific line item.
To establish a budget value for O.S.B.L. add between 5% and 70% of the above compiled values,
typically the O.S.B.L. value will fall in the 10% to
25% range. For revamp / upgrade / modernization
projects calibrate the above values by the following.
• Minor revamps multiply by 1.05 to 1.15
• Average revamp projects multiply by 1.15 to
1.25
• Major revamps multiply by 1.25 to 1.75
Table 1
TYPICAL RATIO FACTORED VALUES OF A GRASS ROOTS NORTH AMERICAN PLANT
DESCRIPTION
MATERIAL RATIO
LABOR RATIO
TOTAL RATIO
Major Equipment M.E. (28 M.E. items. M.E. $1.96M in 2001)
Freight
M.E. Installation (millwright work)
Site Preparation / Earthworks
Foundations
Structural Steel / Siding / Platforms
Buildings
Piping Systems
Electrical Systems
Instrumentation / Controls
Insulation / Refractory
Painting
Miscellaneous items (spare parts, vendor asst, I-C programming, etc.)
DIRECT COSTS S/T
Detailed Design / Project Mgmt / Procure
Engineering Support
Owner Eng / CM
CM
Gen Conditions / Field Establishment
Contingency (Future scope and change orders)
INDIRECT COST S/T
TOTAL
1.00
0.04
0.02
0.02
0.04
0.07
0.13
0.22
0.08
0.12
0.05
0.01
0.04
0.00
0.00
0.10
0.04
0.10
0.09
0.11
0.26
0.11
0.05
0.06
0.02
0.03
1.00
0.04
0.12
0.06
0.14
0.16
0.24
0.48
0.19
0.17
0.11
0.03
0.07
1.84
0.03
0.01
0.02
0.04
0.04
0.23
0.37
2.21
0.97
0.30
0.06
0.09
0.08
0.07
0.14
0.74
1.71
2.81
0.33
0.07
0.11
0.12
0.11
0.37
1.11
3.92
Copyright © 2017 Compass International, Inc.
70. | SECTION A3
(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 average percentages should be used as a starting point.
Off sites (O.S.B.L.) are excluded from the following
data values.
Table 2
AVERAGE HISTORICAL (MULTIPLIER) FACTORS − LIQUID PLANTS
REF DIRECT CONSTRUCTION
COSTS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
TYPICAL %
OF M.E.
% BULK
MATERIALS
% LABOR
- S/C
TOTAL REMARKS
Major Equipment (M.E.)
0
1.00*
0.00
1.00
Freight (used 4%)
2.5 - 5
0.02
0.02
0.04
Overseas Freight
5 - 8
N/A
N/A
M.E. Setting 1 - 7
0.01
0.05
0.06
(Millwright work)
Site work / civil
3 - 10
0.02
0.03
0.05
(excavation / roads)
Concrete work
8 - 25
0.03
0.10
0.13
Structural steel
15 - 35
0.10
0.11
0.21
Facilities / Buildings
3 - 15
0.03
0.02
0.05
(including services)
Piping** 50 - 150
0.40
0.60
1.00
(includes hangars & testing)
Electrical
15 - 45
0.09
0.13
0.22
Instrumentation / Controls 20 - 65
0.15
0.13
0.28
Insulation
3 - 25
0.02
0.03
0.05
Painting
2 - 10
0.01
0.01
0.02
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
Field Establishment Costs ***
0.29
EPC Office H.O. range 20% - 30%
0.86
Construction Management range 20% -.45% of line 16
0.21
Owner Engineering & CM 5% – 15% of line 16 & 17
0.11
TOTAL INDIRECT COSTS
1.47
TOTAL COST MULTIPLIER
4.63
Assume $1.00 million
50/50 split
N/A for this example
Heavy lift cranes in line 15
Site clearance /
minor demolition
SOG & elevated
Including platforms
ISBL only
Including tracing
23% of labor / S.C. costs
27% of total direct costs
25% of EPC H.O
10% of line 16 & 17
(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 warehouses, Division 1 (Preliminaries) etc. If the proposed project is a hybrid of a liquids and solids plant, use an average of both plants /
facilities.
Copyright © 2017 Compass International, Inc.
SECTION A3 | 71.
To establish a budget value for O.S.B.L. add
between 5% and 70% of the above compiled values,
typically the O.S.B.L. value will fall in the 10% to
25% range.
For revamp / upgrade / modernization projects
calibrate the above values by the following.
• Minor revamps multiply by 1.05 –1.15
• Average revamp projects multiply by 1.15 to
1.25
• Major revamps multiply by 1.25 to 1.75
(3) Average Historical (Multiplier) Factors - Solids Plants +/- 25% Accuracy (Cement /
Powder(s) / Material Handling type facilities, typically low in piping). Assume Major Equipment cost
is $1.00 million delivered to site the following average percentages should be used as a starting point.
Off sites (O.S.B.L.) are excluded from the following
data values.
To establish a budget value for O.S.B.L. add
between 5% and 70% of the above compiled values,
Table 3
AVERAGE HISTORICAL (MULTIPLIER) FACTORS − SOLIDS PLANTS
REF DIRECT CONSTRUCTION
COSTS
TYPICAL %
OF M.E.
% BULK
MATERIALS
% LABOR
- S/C
TOTAL REMARKS
1
2
3
4
5
Major Equipment (M.E.)
0
1.00*
0.00
1.00
Assume $1.00 million
Freight (used 4%)
2.5 - 5
0.02
0.02
0.04
50/50 split
Overseas Freight
5 - 8
N/A
N/A
N/A for this example
M.E. Setting (Millwright work) 1 - 7
0.01
0.05
0.06
Heavy lift cranes in line 15
Site work / civil
3 - 10
0.03
0.04
0.07
Site clearance /
(excavation / roads) minor demolition
6
Concrete work
10 - 50
0.04
0.12
0.16
SOG & elevated
7
Structural steel
20 - 50
0.13
0.15
0.28
Including platforms
8
Facilities / Buildings
3 - 20
0.03
0.02
0.05
(including services)
9
Piping**
25 - 100
0.25
0.40
0.65
ISBL only
(includes hangars & testing)
10 Electrical
15 - 45
0.09
0.13
0.22
Including tracing
11 Instrumentation / Controls
15 - 60
0.13
0.12
0.25
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
1.78
1.12
2.90
INDIRECT PROJECT COSTS
15 Field Establishment Costs ***
0.25
22% of labor / S.C. costs
16 EPC Office H.O. range 20% - 30%
0.67
23% of total direct costs
17 Construction Management range 20% -.45% of line 16 0.17
25% of EPC H.O
18 Owner Engineering & CM 5% – 15% of line 16 & 17
0.08
10% of line 16 & 17
19 TOTAL INDIRECT COSTS
1.17
20 TOTAL COST MULTIPLIER
4.07
(A) = Start up costs, initial chemicals, expense items and other minor items.
* 1.00 = Total value of Major Equipment / Assume 25 items (M.E.)
** 25% - 100% is based on using a 60 - 40 split of Carbon Steel and 304-316 SS. This value could in some situations exceed
100% in circumstances where 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 warehouses, Division 1 (Preliminaries) etc. If the proposed project is a hybrid of a liquids and solids plant, use an average of both plants /
facilities.
Copyright © 2017 Compass International, Inc.
72. | SECTION A3
typically the O.S.B.L. value will fall in the 10% to
25% range.
For revamp / upgrade / modernization projects
calibrate the above values by the following.
• Minor revamps multiply by 1.05 –1.15
• Average revamp projects multiply by 1.15 to
1.25
• Major revamps multiply by 1.25 to 1.75 and
possibly more for extreme situations.
Above costs exclude land purchase, currency
impact, front end (study) engineering, spare parts,
vendor assistance and off-sites, percentages / multipliers include contingency funds because the above
stated values are based on numerous ”historical” return cost data, where the contingency was expended
/ incorporated into the capital cost of the completed
facility. Engineering, Procurement Activities and
Construction Management costs are included in the
indirect costs. EPC Office includes engineering and
design, procurement, project management / control
and required administration. Owner C.M. is not
included in the EPC office percentage.
Note: the factors for piping, electrical and instrumentation work indicated in (2) and (3) above
could be reduced by 20 – 40% (use 30%) if work is
fabricated as modules / pre-assemblies / skid, structural steel values should be increased by 10 – 20 %
if work is completed as modules / pre-assemblies /
skid (use 15%).
(4) M.E. / Percentage Uplift Cost Model: The
following historical data reflects a chemical process facilities (valued between $3 - $65 million):
8 liquid process and 4 liquid / solid process and 2
solid process, 3 minor revamp projects are included)
constructed in North America in the 1990’s the costs
have been calibrated to the mid point of 2006. M.E.
/ Process Equipment multipliers / benchmarks, data
is based on average direct labor hourly rate $33.50,
to establish union all in rate add 80 – 90%, for union
application. For open shop all in rate add 40 – 75%
uplift. Cost model is based on 76 # M.E. ISBL
items costing $5,354,832, plus 32 # M.E. OSBL
items costing $882,657.
Table 4
M.E. / PERCENTAGE UPLIFT COST MODEL − CHEMICAL PROCESS FACILITY
(A) DIRECT WORK - ISBL
MATERIAL
%
LABOR
Major Equipment (M.E.) 76 # items
5,354,832
0
0
0.00%
5,354,832
Freight
112,034
2.09%
0
0.00%
112,034
M.E. Setting in place
36,745
0.69%
392,564
7.33%
429,309
Site Work / Preparation
134,567
2.51%
102,456
1.91%
237,023
Civil / Concrete
210,665
3.93%
332,887
6.22%
543,552
Facilities / Architectural Finishes / Siding
187,097
3.49%
203,599
3.80%
390,696
Structural Steel / Miscellaneous platforms
654,942
12.23%
275,348
5.14%
930,290
Piping Systems
1,587,337
29.64%
1,824,484
34.07%
3,411,821
Electrical Systems
683,457
12.76%
588,244
10.99%
1,271,701
Instrument / Controls
1,315,337
24.56%
356,445
6.66%
1,671,782
Paint / Insulation / Refractory 198,605
3.71%
161,446
3.01%
360,051
Fire Protection / Safety
90,643
1.69%
91,022
1.70%
181,665
See note (1) 50,098
0.94%
65,644
1.23%
115,742
(A) TOTAL DIRECT MAT & LABOR
10,616,359
98.26%
4,394,139
82.06%
15,010,499
Copyright © 2017 Compass International, Inc.
%
TOTAL
SECTION A3 | 73.
MATERIAL
%
LABOR
%
TOTAL
(B) INDIRECT WORK
Trade Supervision / Foreman / Gangers etc. 87,698
1.64%
423,477
7.91%
511,175
Consumable supplies
158,688
2.96%
19,769
0.37%
178,457
Small Tools (items less than $200 per item) 182,486
3.41%
21,094
0.39%
203,580
Site Establishment / Trailers / Temp Offices. 402,577
7.52%
163,974
3.06%
566,551
Safety / Training
29,228
0.55%
63,779
1.19%
93,007
Constr. Equipment costs. Rental / Owned. 63,773
1.19%
346,667
6.47%
410,440
Constr. Equipment Repairs etc. / Fueling.
25,399
0.47%
68,621
1.28%
94,020
Material Mgmt / Logistics / Field Support
197,099
3.68%
75,025
1.40%
272,124
Testing
Activities
19,987
0.37%
10,995
0.21%
30,982
\
Site Clean Up
29,766
0.56%
71,987
1.34%
101,753
Expense items (Demo / relocations)
17,564
0.33%
37,665
0.70%
55,229
Sales Tax
297,974
5.56%
0
0.00%
297,974
(optional cost item could be excluded)
(B) TOTAL INDIRECT WORK MAT & LABOR
1,512,239
28.24%
1,303,053
24.33%
2,815,292
TOTAL D & I (A+B) ISBL
12,128,598
5,697,192
17,825,790
(C) DETAILED DESIGN - D.D.& S. / ISBL
EPC Detailed Design
2,041,053
11.45%
Of D&I
Construction Mgmt
650,641
3.65%
Of D&I
Home Office support / field coordination
55,260
0.31%
Of D&I
Travel Costs
276,300
1.55%
Of D&I
Owner Project Eng / CM
62,390
0.35%
Of D&I
Plant C.M. / Eng Support 128,346
0.72%
Of D&I
Front End Project Eng
383,254
2.15%
Of D&I
O/S Review / V.E. Study
96,259
0.54%
Of D&I
Plant Gen Conditions
51,695
0.29%
Of D&I
Consultants / Miscellaneous Costs
258,474
1.45%
Of D&I
TOTAL (D.D.& S) ISBL
4,003,672
TOTAL ISBL (A+B+C)
21,829,462
(D) OFF SITES OSBL
Major Equipment / Tank age 32 # items
882,657
0
882,657
Freight
19,234
2.18%
0
19,234
M.E. Setting in place
7,868
0.89%
38,960
4.41%
46,828
Site Work / Preparation
27,564
3.12%
18,564
2.10%
46,128
Civil / Concrete / Roads / Tank farm /
77,760
8.81%
134,564
15.25% 212,324
Jetty Modifications
Structural Steel / Miscellaneous platforms 27,860
3.16%
38,664
4.38%
66,524
Copyright © 2017 Compass International, Inc.
74. | SECTION A3
MATERIAL
%
LABOR
%
TOTAL
(D) OFF SITES OSBL (CONTINUED) Piping Systems
88,745
10.05% 93,664
10.61% 182,409
Electrical Systems
40,453
4.58%
36,553
4.14%
77,006
Instrument / Controls
58,894
6.67%
14,640
1.66%
73,534
Paint / Insulation 18,547
2.10%
19,336
2.19%
37,883
Fire Protection / Safety
15,453
1.75%
16,677
1.89%
32,130
Loading Facilities
362,447
41.06% 79,774
9.04%
442,221
(D) TOTAL DIRECT MAT & LABOR
1,627,482
84.38%
491396
55.67% 2,118,878
(E) INDIRECT WORK
Trade Supervision / Foreman / Gangers etc. 16,594
1.88%
66,641
7.55%
83,235
\
Consumable
supplies
29,392
3.33%
2,383
0.27%
31,776
Small Tools (items less than $200 per item) 26,921
3.05%
2,207
0.25%
29,128
Site Establishment / Trailers / Temp Offices. 48,899
5.54%
25,156
2.85%
74,055
Safety / Training
3,089
0.35%
7,503
0.85%
10,592
Constr. Equipment costs. Rental / Owned. 12,092
1.37%
65,758
7.45%
77,850
Constr. Equipment Repairs etc. / Fueling.
4,855
0.55%
9,268
1.05%
14,123
Material Mgmt / Logistics / Field Support
19,860
2.25%
10,592
1.20%
30,452
Testing Activities
1,854
0.21%
1,324
0.15%
3,178
Site Clean Up 3,707
0.42%
8,827
1.00%
12,534
Expense items (Demo / relocations)
11,739
1.33%
14,387
1.63%
26,127
Sales Tax 48,723
5.52%
0
0.00%
48,723
(optional cost item could be excluded)
TOTAL INDIRECT WORK
227,726
214,044
441,770
TOTAL D & I (D+E) OSBL
1,855,208
705,440
1
2,560,648
(F) DETAILED DESIGN D.D.& S. FOR OSBL
EPC Detailed Design
136739
5.34%
Of D&I
Construction Mgmt
82,197
3.21%
Of D&I
Home Office support / field coordination
10,243
0.40%
Of D&I
Travel Costs
19,205
0.75%
Of D&I
Owner Project Eng / CM
11,523
0.45%
Of D&I
Plant C.M. / Eng Support 16,644
0.65%
Of D&I
Plant Gen Conditions
8,450
0.33%
Of D&I
Consultants / Miscellaneous Costs
12,291
0.48%
Of D&I
TOTAL (D.D.& S) ISBL
297,291
TOTAL OSBL (D+E+F)
2,857,939
Total w/o contingency
24,687,401
Contingency 10% (range 5% - 20%)
2,468,740
10.00%
Of Total
TOTAL (INCLUDES ISBL & OSBL)
$27,156,142
All % are related to M.E. values.
Note 1. Vendor assistance, start up, I/C programming and initial chemicals
Copyright © 2017 Compass International, Inc.
SECTION A3 | 75.
Total M.E. multiplier = $27,156,142 divided by
$6,237,489 (ISBL & OSBL M.E.) = 4.35
Sales Tax may not be applicable because of
sales tax exemption certificate.
Note (1): other items that may need to be considered, expensed costs v’ s capital costs, demolition,
shutdowns and tie-ins and spare parts.
For revamp / upgrade / modernization projects
calibrate the above values by the following.
• Minor revamps multiply by 1.05 to1.15
• Average revamp projects multiply by 1.15 to
1.25
• Major revamps multiply by 1.25 to 1.75 (possibly more for extreme situations)
(5) The following historical return cost data
reflects a chemical process facility (liquid / solid
process) built in S.E. USA calibrated to the mid
point of 2006. M.E. / Process Equipment multipliers
/ benchmarks, data is based on average direct labor
hourly rate $36, to establish union all in rate add 80
– 90%, for union application. For open shop all in
rate add 40 – 75% uplift. Cost model is based on 86
# M.E. items costing $9,954,000.
• Total Project = $35.689 million divided by
Major Equipment = $9.954 million = 3.58 (note: offsites not included – off-sites were a separate contract
– valued at $4.70 million)
Table 5
HISTORICAL RETURN COST DATA OF A CHEMICAL PROCESS FACILITY (LIQUID / SOLID PROCESS)
$ MILLIONS BULK MATERIAL
$ MILLIONS
BULK LABOR
$36/ HOUR
TOTAL IN
LABOR HOURS $ MILLIONS
MAJOR EQUIPMENT (86 ITEMS)
Freight
3.15% Of M.E.
ME install
0.97%
$0.097
3.95%
$0.393
10,922
Demolition
0.00%
$ -
2.03%
$0.202
5,625
Site Works
2.17%
$0.216
2.80%
$0.279
7,754
Foundations / 3.97%
$ 0.395
2.57%
$0.256
7,117
Concrete work
Building structure
9.39%
$0.935
8.59%
$0.855
23,758
Pipe
23.09%
$2.298
29.95%
$2.981
82,819
Electrical
11.09%
$1.104
14.12%
$1.405
39,040
Instrumentation / Control 16.60%
$1.653
5.68%
$0.566
15,718
Paint 2.26%
$0.225
2.65%
$0.264
7,326
Insulation
3.89%
$0.387
3.86%
$0.384
10,674
Fire protection
2.06%
$0.205
2.16%
$0.215
5,981
Refractory / Misc items
2.45%
$0.244
3.41%
$0.339
9,424
TOTAL DIRECTS (A)
77.95%
$7.759
81.79%
$8.142
226,157
FIELD IN DIRECTS
Field supervision
16.04% Of labor
Field admin / secretary
1.69% Of labor
Field establishment
2.46% Of material
Field establishment
2.57% Of labor Consumables
0.87% Of material
Small tools
0.88% Of material
Construction equipment 7.67% Of labor
Construction maintenance 1.45% Of labor
Material handling
2.23% Of material
Clean up 1.85% Of labor
$9.954
$0.314
$0.490
$0.202
$ 0.495
$0.651
$1.790
$5.280
$2.509
$2.219
$0.488
$0.772
$0.421
$ 0.583
$26.167
$1.306
$0.138
$0.191
$0.209
$0.067
$0.068
$0.624
$0.118
$0.173
$0.151
Copyright © 2017 Compass International, Inc.
76. | SECTION A3
TOTAL IN $ MILLIONS
FIELD IN DIRECTS (CONT)
Road maintenance / barriers
2.17% Of labor
Vendor assistance
0.89% Of M.E.
Contractors fee 2.25% Of directs
I/C programming
4.75% Of I/C L & M Spare parts
2.18% Of M.E.
TOTAL INDIRECT (B)
TOTAL (A) + (B)
ENGINEERING / CM (C)
EPC firm Detailed design
10.23% 3.109
EPC firm Field support (RFI’s)
0.35% 0.106
EPC firm Procurement
0.57% 0.173
EPC firm Construction Mgmt
3.85% 1.170
Owners Engineering
0.45% 0.137
Owners Construction Mgmt
0.18% 0.055
Front End studies
1.48% 0.450
Owner General conditions 0.33% 0.100
Engineering / CM (C)
5.300
TOTAL PROJECT (A+B+C)
$0.177
$0.089
$0.589
$0.105
$0.217
$4.222
$30.389
$3.109
$0.106
$0.173
$1.170
$0.137
$0.055
$0.450
$0.100
$5.300
$35.689
Table 6
REFINERY / PETRO-CHEMICAL EXPANSION
CATEGORY
$ MILLION
REMARKS
Major Equipment (M.E) 121 items
Freight
Setting of M.E. (L&M)
Demolition (L&M)
Site Preparation (L&M)
C/S/A (L&M)
Piping (L&M)
Electrical (L&M)
I/C (L&M)
Insulation (L&M)
Painting (L&M)
Miscellaneous items (F-P, Spare Parts, V.A. I/C programming (L&M)
Direct Costs
Field Establishment / In directs 33.5%
Directs + Indirect Costs
Detailed Design ISBL 10.5%
CM ISBL 3.20%
ISBL Cost
OSBL (Tank Farm / Loading Facilities) Detailed Design OSBL 7.5%
CM OSBL 2.9%
Total Facility
ME multiplier without OSBL
ME with OSBL 17.20
0.41
0.87
0.21
0.84
1.88
8.33
2.95
3.21
1.47
0.44
0.37
38.18
12.79
50.97
5.37
1.63
57.97
6.85
0.51
0.20
65.53
3.37
3.81
693 Design hours / per M.E. item
Copyright © 2017 Compass International, Inc.
83,900 M.H.’ s
7,950 M.H.’ s
SECTION A3 | 77.
(6) Refinery / Petro-Chemical Expansion
(SRU) USA Gulf Coast (2004 Costs) Constructed on
an established operating site with adequate utilities
(needing some upgrading) Costs are based on final
close out report:
Excludes: Owner corporate engineering
$298,000 and Front End Study $445,000:
Demolition could be an expense item. Refer to
previous L & M ratio’s to determine man-hours and
material splits.
Table 7
GLYCEROL ESTERS / FATTY ACIDS FACILITY
CATEGORY OF WORK
MATERIAL
(A) DIRECT WORK - ISBL / OSBL
Major Equipment (M.E.) 41 # items 1,985,200
Freight
60,549
M.E. Setting in place
8,933
Site Work / Preparation
56,578
Piling / Civil / Concrete
141,942
Facilities / Architectural Finishes / 54,792
Siding
Structural Steel / Misc platforms 330,933
Piping Systems (40% CS-55% SS) 622,360
Electrical Systems
312,669
Instrument / Controls
759,339
Paint / Insulation / Refractory
53,600
Fire Protection / Safety
106,407
Off sites / Misc. items See note (1) 155,838
(A) TOTAL DIRECT MAT & LABOR
4,649,140
(B) INDIRECT WORK
Trade Supervision / Foreman /
30,771
Gangers etc.
Consumable supplies
34,741
Small Tools
44,667
(items less than $200 per item)
Site Establishment / Trailers /
134,001
Temp Offices.
Safety / Training
3,970
Construction Equipment costs.
45,064
Rental / Owned.
Construction Equipment
10,919
Repairs etc. / Fueling.
Material Mgmt / Logistics /
62,137
Field Support
Testing Activities
5,559
Site Clean Up activities / 13,896
snow removal
% OF M.E.
LABOR
% OF M.E.
TOTAL
0
3.05%
0.45%
2.85%
7.15%
2.76%
0
0
126,060
84,371 171,720
58,563 0.00%
0.00%
6.35%
4.25%
8.65%
2.95%
1,985,200
60,549
134,994
140,949
313,662
113,355
16.67%
31.35%
15.75%
38.25%
2.70%
5.36%
7.85%
134.19%
% OF M.E.
1.55%
108,590
1,243,728
225,320
166,161
74,842 223,335
139,957
2,622,648
134,001
5.47%
62.65%
11.35%
8.37%
3.77%
11.25%
7.05%
82.06%
% OF M.E.
6.75%
439,523
1,866,088
537,989
925,500
128,442
329,742
295,795
7,271,788
1.75%
2.25%
8,933
7,147
0.45%
0.36%
43,674
51,814
6.75%
58,563
2.95%
192,564
0.20%
2.27%
20,845
108,392
1.05%
5.46%
24,815
153,456
0.55%
25,212
1.27%
36,131
3.13%
32,756
1.65%
94,893
0.28%
0.70%
5,757
30,771
0.29%
1.55%
11,316
44,667
164,772
Copyright © 2017 Compass International, Inc.
78. | GENERAL NOTES
CATEGORY OF WORK
MATERIAL
% OF M.E.
LABOR
% OF M.E.
TOTAL
(B) INDIRECT WORK (CONT.)
Expense items (Demo / relocations 68,489
of cooling tower, oxygen tank,
pipe bridge and pad # 3A)
(B) TOTAL INDIRECT WORK
454,214
MAT & LABOR
TOTAL D & I (A+B) ISBL / OSBL
5,103,354
(C) DETAILED DESIGN % OF A & B
D.D.& S. / ISBL
EPC Detailed Design / 10.23%
Project Management / Procurement
CAD / Computer charges / 0.24%
Express mail
Construction Mgmt / 3.76%
field project controls
Home Office support / 0.39%
field coordination (RFI ‘s),
inspections at vendor shops
Travel Costs
1.05%
Owner Project Eng / CM 0.42%
Plant C.M. / Eng Support 0.75%
Front End Project Eng
2.35%
O/S Peer Review / V.E. Study /
0.75%
Risk study
Plant Gen Conditions / Trailers
0.37%
Consultants / Miscellaneous Costs 1.37%
TOTAL (D.D.& S) ISBL / OSBL
TOTAL PROJECT COST
ISBL / OSBL (A+B+C)
% OF M.E.
3.45%
68,489
% OF M.E.
3.45%
136,979
22.88%
500,866
25.23%
955,080
3,123,514
8,226,867
841,609
19,744
309,330
32,085
86,382
34,553
61,702
193,331
61,702
`
(7) Glycerol Esters / Fatty Acids Facility 2007 Cost Basis:
Multiplier M.E. to TIC = 5.04, this includes
some off sites work approx $250K direct x 1.35
for in-directs and detailed design = $337,500 =
$9,672,952 / $1,985,200 = 4.87 items 30, 31, and 34
should also be excluded from 4.87 multiplier:
Note 1. Miscellaneous items are spare parts,
initial fill, and some vendor assistance for a total of
$49,800; the off sites included piping utilities, an
addition to a tank farm, product loading area and
tie-in’s.
Detailed design hours $841,609 / $59.75 average
cost per hour = 14,085 hours / 41 M.E. items = 344
hours per M.E. item:
Copyright © 2017 Compass International, Inc.
30,439
112,708
1,783,585
10,010,452
(8) 250 and 500 MW Power Facility (Coal
Fired) 2008 Cost Basis:
(9) Steel Production Facility (2008 Cost Basis):
Notes: The detailed design is low at 6.7%.
This is due to the fact that a good amount of the
“systems” in the major equipment are designed by
specific vendors.
Steel mills / steel facilities usually have a M.E.
multiplier of 1.75 – 2.35.
SECTION A3 | 79.
Table 8
250 AND 500 MW POWER FACILITY (COAL FIRED)
DESCRIPTION
250 MW
500 MW
SITE WORKS
Site clearance / Site Improvement
18.73
23.45
Demolition
0.00
0.27
Retention ponds / M.U. Ponds / 19.83
26.72
Piping river intake / dredging
Walkways
0.59
1.34
Perimeter roads
5.85
7.65
Railroad spur
3.51
3.96
Water Vault / Sewage treatment facility
0.99
1.74
Site fire main
3.51
5.16
Security fence / gates
2.14
3.38
Potable water main 0.60
1.06
Miscellaneous signs / site works items
0.77
0.96
SUB TOTAL
56.52
75.69
BUILDINGS / FACILITIES
Steam Generation Bldg / Stack foundation
33.43
59.66
Turbine Facility 2 floors 1 mezzanine 19.88
36.58
(150’ 250’ x 50’ high)
Operator Changing Rooms / Break Areas /
1.04
1.83
Warehouse
2.67
4.92
Control Bldg
0.70
1.27
Office / Admin Bldg / Cafeteria
5.91
7.44
W W T Control Room
0.70
1.27
Coal Handling Bldg / Area
2.32
4.08
Emergency Generator Bldg (black start)
0.98
1.81
Chemical treatment Bldg
1.69
2.97
River Intake Bldg
0.98
1.75
Guard / Security Center
0.42
0.77
Fire Engine Bldg
0.56
1.03
Gatehouses
0.35
0.63
Hard standings / Pads
0.91
1.62
Parking Area
0.98
1.80
Plant air / vacuum system 1.76
3.21
Miscellaneous Building items
0.45
0.72
SUB TOTAL
75.76
133.35
TURBINE / STEAM GENERATION
Turbines & Ancillary equipment 51.25
89.18
(incl piping / electrical / controls)
Steam Production / Boilers (incl piping / electrical / controls) 71.66
132.35
Electrical Transformers / Switchgear
8.25
15.86
(incl piping / electrical / controls)
Turbine Vent systems (incl piping / electrical / controls)
6.71
12.19
Drafting Systems & Concrete Stack
35.30
62.29
(incl piping / electrical / controls)
Scrubber(s) system (incl piping / electrical / controls)
12.95
23.96
Coal Handling / Crushers (incl piping / electrical / controls)
4.13
7.34
% OF “A”
% OF “A”
13.9%
10.8%
18.6%
19.0%
Copyright © 2017 Compass International, Inc.
80. | SECTION A3
DESCRIPTION
250 MW
500 MW
TURBINE / STEAM GENERATION (CONTINUED)
Coal Washing Equipment (incl piping / electrical / controls) 6.61
11.94
Ash / Cinder Collection (incl piping / electrical / controls)
20.16
35.48
Feed water Condensate Systems 14.64
26.06
(incl piping / electrical / controls)
Chemical Injection - Treatment / sampling system / tanks
1.93
3.51
Insulation and refractory
3.73
6.49
Cooling Tower systems / M.U. water tanks 34.69
60.35
(incl electrical / controls) Spare parts (Pumps, impellers, valves, blades and other items) 1.75
2.57
Operating Equipment “AA”
1.15
1.57
Miscellaneous Generation items 0.66
1.25
SUB TOTAL “A”
275.58
492.39
CONSTRUCTION TOTAL
407.86
701.43
Div 1 / G C’s / Temp Construction
43.43
82.54
SUB TOTAL
451.29
783.97
DETAILED DESIGN / CONSTRUCTION MANAGEMENT
Detailed Design (Engineering deliverables) and Fee
48.25
80.58
FE Engineering Studies
7.55
10.12
Owner Engineering / CM / Procurement / Inspection / Start up 14.56
23.59
CM and Fee
19.17
31.84
SUB TOTAL
89.53
146.12
T.I.C. in US $ millions - mid 2007 Cost Basis - Mid West USA
540.82
930.10
Cost per MW
$2,163
$1,860
Low Range MW cost
$1,514
$1,302
High Range MW cost
$2,812
$ 2,418
% OF “A”
% OF “A”
67.6%
100.0%
10.6%
70.2%
100.0%
11.8%
10.7%
1.7%
3.2%
4.2%
19.8%
10.3%
1.3%
3.0%
4.1%
18.6%
GENERAL NOTES:
• Excludes land purchase.
• Detailed design 38 month effort.
• Procurement 28 month effort.
• Construction 55 month effort.
• “AA” Fire truck(s), forklifts, van(s), crane(s), truck(s), w/h tools - racks,
• F/f, office equipment, cafeteria equipment, other misc. items.
(10) Combined Sewage - Process / Water Conditioning Facility: (2008 Cost Basis)
• Excludes: Royalties / Technology Fee. Typical Range 7.5% - 15% of Total Construction Cost,
Demo $211,250, re-routing utilities $43,710
• Front End studies, Owner engineering costs of
$298,700.
(11) Crude Distillation – Cabin Oil Heater
– Re-boiler- Flue Gas Add-on Facility
• 320 Million BTU’s ($177,300 per million
Copyright © 2017 Compass International, Inc.
BTU’s - Typically $160,000 - $185,000)
• USA Upper mid West (Ohio)
• 2009 Cost Basis Total Construction Cost
$56,744,404 / 42 M.E. Items = $1,351,057
• Merit Shop Construction (Combination of
Union & Non Union)
• 12 month Detailed design (DD) effort, 21
Month Construction effort (Construction started 5
months into DD)
SECTION A3 | 81.
Table 9
STEEL PRODUCTION FACILITY
CATEGORY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
% OF M.E.
% OF TIC
Major Equipment “A”
48.6%
Freight
3.2%
1.5%
Major Equipment setting
8.9%
4.3%
Demolition
1.0%
0.5%
Site work
3.4%
1.7%
Civil work (foundations)
12.1%
5.9%
Structural Steel
12.8%
6.2%
Piping
7.3%
3.5%
Insulation / Refractory
1.0%
0.5%
Electrical
15.5%
7.5%
Instrumentation / Controls 7.7%
3.7%
G C / Site Establishment
13.0%
6.3%
TIC w/o Detailed Design / CM
185.9%
90.3%
Detailed Design
13.9%
6.7%
Construction Mgmt
6.1%
3.0%
TIC - 2007 Cost Basis “B” in millions of US $
100%
M.E. MULTIPLIER (“B” / “A”)
$ TOTAL COST
269.70
8.55
23.95
2.79
9.30
32.64
34.58
19.59
2.79
41.71
20.77
35.05
501.41
37.49
16.51
555.41
2.05
Table 10
COMBINED SEWAGE - PROCESS / WATER CONDITIONING FACILITY: CATEGORY
$ COST IN MILLIONS
% OF M.E.
Major Equipment (53 # items) 1.111
$20,962 per M.E. item
Major Equip setting
0.074
6.60%
Concrete Tanks / vault 0.952
85.70%
Roads / Walkways
0.537
48.30%
Fire main
0.068
6.10%
Site works
0.137
12.30%
Civil / Concrete excluding vault
0.257
23.10%
Pre cast Concrete
0.117
10.60%
Structural Steel / Platforms
0.233
20.90%
Building (W-H / control – admin)
0.291
26.10%
Pipe (CS, SS and CPVC) 0.578
52.00%
Insulation
0.228
20.50%
Electrical / tracing
0.537
48.30%
Instrumentation
0.429
38.60%
Painting
0.079
7.10%
Epoxy coating to tanks
0.04
3.60%
Lab / Office Equipment / 0.053
4.70%
Maintenance Equipment
TOTAL CONSTRUCTION COST
5.719
Preliminaries / General Conditions - 5.5% 0.672
60.50%
Detailed Design 9.90%
0.535
48.10%
P M / CM 5%
0.292
26.20%
TOTAL
7.218
NOTES
1,390 man-hours
1 # 35’ diameter tank and 2 # 55’ x 55’ x 30’ high vaults
195’
260’
7 Acres
Includes 170’ pipe bridge – 105 ton
275 # devices
9,570 man-hours
Copyright © 2017 Compass International, Inc.
82. | SECTION A3
Table 11
CRUDE DISTILLATION – CABIN OIL HEATER – RE-BOILER- FLUE GAS ADD-ON FACILITY
CONSTRUCTION CATEGORY
QTY
U/M
MATERIAL
HOURS
$ RATE LABOR
MAJOR EQUIPMENT (M.E.)
Columns / Tower / Trays -
4
Ea
7,210,500
30,314
70.14 2,126,200
Modifications
Bayonet Section / 1
Ea
453,000
2,582
70.14 181,090
Re Tubing & Manifold
Heater / Re-boiler / Flue Gas Stack 3
Ea
9,038,000
65,441
70.14 4,590,000
Compressor 1
Ea
345,600
381
70.14 26,740
Cabin / Pre-Heater section
2
Ea
275,500
423
70.14 29,670
Injection skids/ manifolds
2
Ea
175,230
250
70.14 17,550
Pumps with motors
6
Ea
54,560
211
70.14 14,790
Heat Exchangers 3 new
8
Ea
148,100
2,467
70.14 173,050
(5 modified)
Refurbish M.E. 7
Ea
65,720
1,668
70.14 117,000
(Compressor, Blower & Pumps)
Miscellaneous equipment:
6
Ea
532,600
390
70.14 27,340
coils / drums / tanks etc
Tank modifications / 2
Ea
128,500
1,860
70.14 130,450
Baffle reconfigurations
S/T
42
18,427,310
105,986
7,433,880
Freight 3.34% (on M.E.)
626,529
M.E. Sub Total (A) $26,487,719 / 19,053,839
105,986
7,433,880
42 M.E. = $631 K NON ENGINEERED / ENGINEERED MATERIALS
Site improvements / 8
AC
384,300
6,470
50.15 324,450
190 LF Rail spur with switch
Caissons / Piling ($75 / LF)
6,100 LF
246,700
4,148
50.15 208,000
Concrete 1,695 CY
376,900
7,797
60.14 468,900
(Foundations & flatwork - $499 CY)
Structural Steel / Platforms
412
Ton
543,980
7,257
70.14 508,990
($2,556 Ton)
Piping (Avg. 8” diameter -
6,920 LF
2,012,000
22,165
70.14 1,554,640
CS 65% / SS 35% - $515 LF)
Piping small bore 1.5”
7,900 LF
122,500
7,340
70.14 514,828
diameter and less ($81 LF)
Electrical (Equipment, switchgear,
413,600
6,483
70.14 454,720
MCC, cable / conduit & hook ups)
Instruments / controls / cable I/C 1,020 No
934,370
5,410
70.14 379,450
($1,288 per I/O)
Insulation to pipe ($149 LF)
5,450 LF
536,000
4,588
60.14 275,900
Flue Gas Stack & Duct
142
Ton
296,750
4,071
60.14 244,800
Modifications ($3,814 Ton)
Firebrick (2.5”) and (1”) 4,710 SF
172,000
2,084
60.14 125,360
gunite type lining ($63 SF)
Painting ($2.10 SF)
79,900 SF
65,660
1,694
60.14 101,890
Copyright © 2017 Compass International, Inc.
TOTAL
9,336,700
634,090
13,628,000
372,340
305,170
192,780
69,350
321,150
182,720
559,940
258,950
25,861,190
626,529
26,487,719
708,750
454,700
845,800
1,052,970
3,566,640
637,328
868,320
1,313,820
811,900
541,550
297,360
167,550
SECTION A3 | 83.
CONSTRUCTION CATEGORY
QTY
U/M
MATERIAL
HOURS
$ RATE LABOR
NON ENGINEERED / ENGINEERED MATERIALS (CONTINUED)
Buildings (Control Room /
3,350 SF
184,600
3,157
60.14 189,850
Change Area - $112 SF)
Asbestos / Lead paint removal
147,800
6,250
60.14 375,900
Demolition / removals ($300 Ton) 1,930 Ton
65,500
10,261
50.15 514,600
Non Engineered / Eng Materials S-T (B)
6,502,660
99,174
6,242,278
OFFSITE WORK / OSBL
Roads / Parking area ($25 / SY)
6,100 SY
67,550
1,740
50.15 87,250
Additional Bund Walls
270
CY
54,870
1,534
50.15 76,930
to tank farm ($488 CY)
Modify pipe rack ($4,881 / Ton)
27
Ton
48,987
585
70.14 41,040
Move existing u/g drains
1,300 LF
116,980
1,772
50.15 88,880
& utilities ($158 LF)
Pipe runs & tie ins 1,780 LF
246,230
5,881
70.14 412,470
(Aver 8” diameter - $370 LF)
Piping small bore
2,680 LF
43,560
2,010
70.14 140,981
1.5” diameter & less ($69 LF)
Insulation with metal jacket
1,320 LF
74,570
1,419
60.14 85,310
($121 LF)
Modifications to control room
680
SF
23,450
857
60.14 51,550
($110 SF)
Elect runs & tie ins from 1,020 LF
79,700
2,642
70.14 185,300
D sub station ($260 LF)
Fence to E side + 2 Gates
1,950 LF
76,890
860
50.15 43,110
(1,750 LF - $69 LF)
Truck loading area
800
SF
43,510
423
60.14 25,460
(CSA & MEP systems) ($86 SF)
Mod to Tank age area ($445 / CY) 780
CY
236,780
1,571
70.14 110,220
Offsite work / OSBL Sub Total ( C)
1,113,077
21,294
1,348,501
Total of M.E. & Field Construction (D)
26,669,576
226,454
15,024,659
FIELD SUPPORT / GENERAL CONDITIONS
Supervision 13,587
73.65 1,000,699
(6.7% of Field Construction Labor)
Labor support (clean up / 157,000
6,161
60.14 370,500
mat deliveries 0.013 of D)
Scaffolding / Barricades 147,670
4,744
60.14 285,330
0.0108 of D
Small tools / Consumables / 696,580
1,118
60.14 67,260
Hard hats etc $3.37 / hr
Field offices / Trailers / Secretary / Security
163,000
8,637
37.55 324,330
Construction Equipment / Fuel / Site Vans
375,450
8,637
57.01 492,350
Temporary power / utilities
26,340
264
65.36 17,260
Field Support / General Conditions S-T (E)
1,566,040
43,149
2,557,729
Total of D + E
28,235,616
269,603
17,582,388
DETAILED DESIGN & CONSTRUCTION MGMT
Detailed Design / PM-PC-Proc effort 7.9% of D+E
32,614
110.50
Computers / CAD / Xerox copies F-X $7.25 per HO hour
32,614
TOTAL
374,450
523,700
580,100
12,744,938
154,800
131,800
131,800
205,860
658,700
184,541
159,880
75,000
265,000
120,000
68,970
347,000
2,503,351
41,736,008
1,000,699
527,500
433,000
763,840
487,330
867,800
43,600
4,123,769
45,859,777
3,603,800
238,082
Copyright © 2017 Compass International, Inc.
84. | SECTION A3
CONSTRUCTION CATEGORY
QTY
U/M
MATERIAL
HOURS
$ RATE LABOR
DETAILED DESIGN & CONSTRUCTION MGMT (CONTINUED)
CM Staff (7) 3.36% of D+E
15,217
101.25
CM General Conditions (including above)
HO Start -up assistance
3,150
110.50
HO Field Support / RFI’s / Vendor visits / Surveys
1,460
110.50
Travel / Per Diem / Miscellaneous items
D. D. / CM Sub Total
OTHER PROJECT RELATED COSTS
Overtime / Shift work (HO & Field) allowance.
Vendor Support 300 Hrs 300
Hours
@ $120 hr + expenses.
Spare Parts (Expense)
Initial fill / Grogg.
Owner Support / Consultants
(7,160 Hours) 2% of D+E
Owner travel / expenses.
Sales tax 5.5%
BAR Insurance / Bonds.
Owner Start up assistance / commissioning.
Early Engineering studies.
Other Project Related Costs Sub Total
Total Project Cost
TOTAL
1,540,700
348,075
161,330
445,800
6,337,787
570,500
39,600
287,000
165,800
894,800
87,740
1,518,500
238,600
174,300
570,000
4,546,840
56,744,404
NOTES:
• A. Field Labor unskilled rate = $29.85 x 1.68% $50.15 Laborer.
• B. Field Labor semi-skilled rates = $35.80 x 1.68% $60.14 Painters / Insulation workers.
• C. Field Labor skilled rates = $41.75 x 1.68% $70.14 Millwrights / Pipefitters / Electricians.
• 68% = Fringes, WCI, FICA, Unemployment Insurance, OH & P.
• Contingency / Escalation pro –rated and included above.
(12) Chemical Production Facility: Multiplier
3.00
• 2008 US Gulf Coast, 10 month Construction
Effort
• Open Shop Construction
(13) Petro-Chemical Facility USA South East
2010 Cost basis
• Direct Labor Cost $5.16 Million - all in labor
rate for all trades $67.70 / hour
(14) 600 MW Coal Fired Power Plant Central
USA Location - 2010 Cost basis
• 45 month construction effort $340 million construction labor cost All-in labor rate $69.45 / hour
• 4.89 million Field hours
Copyright © 2017 Compass International, Inc.
(15) Beverage / Candy Products Production
and R&D / QA Research Center
• 3 # Production Lines - 24.50 Acre Site N.E
USA 2010 Cost Basis
(16) Gas Gathering / Processing 1 Billion CF
Facility 2011 Cost Basis
• Located in Middle East
(17) Shale Gas Plant (42.5 MMSCFD)
• Northeast USA
• 2013 Cost Basis
• Union
(18) USA Module Benchmarks
• 2015 Cost Basis
SECTION A3 | 85.
Table 12
CHEMICAL PRODUCTION FACILITY
CATEGORY
MATERIAL
M-H’S
INCLUDING
FRINGES
RATE
LABOR
M.E. (12 items) 1,621,000
Freight 3.15%
50,778
S/T M.E. A
1,671,778
M.E. setting
3,200
2,884
31.33 90,370
Site work / Excavation
17,520
1,843
27.35 50,400
Concrete
49,690
2,884
28.93 83,430
Structural Steel 97,720
1,518
32.75 49,720
Bldg / Siding / Roof
155,230
4,804
31.88 153,140
Pipe
259,360
8,451
32.85 277,630
Electrical
108,270
2,383
33.25 79,230
Instrumentation
47,260
1,070
33.42 35,760
Insulation
29,660
980
28.85 28,260
Fire protection
15,060
465
29.77 13,830
Painting
11,830
702
28.25 19,820
Demolition 11,530
862
26.47 22,820
OSBL (Pipe/Electrical)
33,530
1,287
32.33 41,620
Fence / Road / Stone
45,850
1,512
27.35 41,340
Construction Total B
885,710
31,644
987,370
IN-DIRECTS
Sup 7.75% L
WC Insurance 17.65% of Labor
FICA State Unemployment BAR 16.35% of Labor
HO support 12.5% of Labor
Temp facilities plus admin / clerk
Small tools / consumables 1.75% of Labor
Scaffolding Rental of Const equipment
GC profit 8.5% on L &M excl M.E.
S/T In-Directs C
S/T A+B+C
OTHER COSTS
Detailed design + fee 7.7%
CM 3.7+ fee%
CM Trailer / Services 10 months
Spare Parts
Refurbish pumps / heat exchanger
Demo (Expense)
Commissioning / Start Up
S/T
Total
TOTAL
% OF M.E.
1,621,000
50,778
1,671,778
93,570
67,920
133,120
147,440
308,370
536,990
187,500
83,020
57,920
28,890
31,650
34,350
75,150
87,190
1,873,080
5.6%
4.1%
8.0%
8.8%
18.4%
32.1%
11.2%
5.0%
3.5%
1.7%
1.9%
2.1%
4.5%
5.2%
112.0%
76,521
174,271
161,435
123,421
87,350
17,280
16,450
39,230
159,212
855,170
4,400,028
338,802
162,801
12,500
14,500
19,540
38,760
27,600
614,503
5,014,531
Copyright © 2017 Compass International, Inc.
86. | SECTION A3
Table 13
CONSTRUCTION CATEGORY
# OF ITEMS
MATERIAL
LABOR
MAJOR EQUIPMENT (M.E.)
Columns c/w trays
4
1,843,700
100,482
Compressor
1
1,375,700
80,478
Drums 6
493,000
31,429
Furnace / Heaters
3
1,924,600
151,081
Heat Exchangers
10
1,378,970
131,002
Miscellaneous Equipment
3
43,400
2,715
Reactors
3
439,500
34,061
Pumps with motors
12
79,090
7,514
Stack / Ducting
1
99,540
6,122
Tanks
4
596,000
31,290
S/T
8,273,500
576,173
Freight (2.75%)
227,521
S/T
8,501,021
576,173
Site work
4.75 Acres
364,780
196,420
Foundations / Stone / Concrete
3,288 CY
581,735
387,823
Structural steel / Pipe racks
315 Ton
508,875
169,625
Piping (Aver 6” dia CS $190/LF)
25,450 LF
3,013,319
1,807,991
Instrumentation & Controls
830 Points
707,450
487,310
Electrical S/S - MCC & cable / Cable tray
701,728
421,037
Buildings - Control room & operator
4,800 SF
326,971
241,674
change area
Insulation / Refractory
156,744
141,816
Painting
122,389
56,281
S/T
6,483,991
3,909,978
General Conditions / Site Establishment
344,700
327,450
Construction Equipment / Scaffolding
110,430
337,600
Small tools / Consumables
102,760
11,245
S/T
557,890
676,295
Detailed Design Work ($89.50 Hour)
20,020 Hours
37,450
1,754,780
Project / Construction / Procurement /
9,270 Hours
43,450
902,560
PC Mgmt ($102.00 Hour)
S/T
80,900
2,657,340
Total
15,623,802
7,819,786
Major Equipment Multiplier TIC / M.E. Cost
OTHER PROJECT RELATED COSTS (NOT INCLUDED IN ABOVE)
Demolition
Offsite tanks (3 # and pipe)
Plant engineering service
Extend lay down / hard standing area
Guard services
Fence 1,200’ and gates
Owners Oversight / Inspection
2,270 Hours
Owner safety program / drug testing
Tie In’s (Plant Cost)
Capitalized Spare Parts
Copyright © 2017 Compass International, Inc.
TOTAL
%
1,944,182
1,456,178
524,429
2,075,681
1,509,972
46,115
473,561
86,604
105,662
627,290
8,849,673
227,521
9,077,195
561,200
969,558
678,500
4,821,310
1,194,760
1,122,765
568,645
8.29%
6.21%
2.24%
8.85%
6.44%
0.20%
2.02%
0.37%
0.45%
2.68%
37.75%
0.97%
38.72%
2.39%
4.14%
2.89%
20.57%
5.10%
4.79%
2.43%
298,560
178,670
10,393,968
672,150
448,030
114,005
1,234,185
1,792,230
946,010
1.27%
0.76%
44.34%
2.87%
1.91%
0.49%
5.26%
7.64%
4.04%
2,738,240
23,443,588
2.76
$ COST
14,340
148,140
17,650
14,700
15,450
73,450
233,700
26,300
21,455
22,500
11.68%
100.00%
SECTION A3 | 87.
CONSTRUCTION CATEGORY
OTHER PROJECT RELATED COSTS (NOT INCLUDED IN ABOVE) (CONTINUED)
Early Engineering / Front End Studies
Vendor Assistance Equipment & instrumentation integration
Refurbish existing drums / heat exchangers, modify baffles and extend platforms
Survey - ground conditions and location of existing services
Permits
Total
$ COST
325,000
19,450
20,330
12,580
12,250
977,295
Table 14
600 MW COAL FIRED POWER PLANT CENTRAL USA LOCATION
ACTUAL COST LOW RANGE
Total Cost per MW $1,619,584
$1,619,584
Material Cost per MW = $805,644
Labor Cost per MW = $566,240
Detailed Design Cost per MW =
$132,480
Construction Mgmt Cost per MW =
$58,927
CONSTRUCTION CATEGORY
$ MATERIAL
Land purchase 210 acres
2,450,000
Demolition / Utility re-routing / road realignment
1,845,740
Security Fencing
1,270,410
Rail Road spur - coal receiving track and switches
2,668,320
Site work (Cut / Fill, Imported Fill, Piling, 16,038,000
Concrete Foundations)
On-site construction fabrication facility (mob / de-mob)
162,360
U/G Utilities / Ponds / Roads / Parking Area / On-site wells
8,469,000
Water intake structure / discharge
5,315,760
Waste Water Treatment Facility
2,285,200
Superstructure (Structural Steel, Elevated floors, Siding, Roof) 35,972,160
Main office / Main Warehouse / Gate office / Control Room
2,046,916
Pre-Fabricated, Operator Area, 2,900,160
Maintenance Building & Warehouse
Coal storage / handling - lifting systems
6,602,200
Slag / Ash conveying, conveying and removal
4,062,720
including pit & storage
Chemical / Water treatment equipment / 4,990,920
Chlorination injection skids / CO2 storage
HP Boiler - turnkey - buy and erect
158,308,800
Crane / Hoists / Elevators - Gantry cranes
1,030,320
Steam turbine / generator / exciter / condenser / 38,133,540
heat recovery steam generator / reclaimer
Air quality system / scrubbers / Nox - carbon removal /
28,164,200
stack gas treatment
Slip formed chimney and foundations (2)
9,630,000
CF Cooling Towers including foundations
10,004,885
HIGH RANGE
$1,550,000
$650,000
$400,000
$125,000
$50,000
$ LABOR
0
1,131,260
1,126,590
1,255,680
13,662,000
$1,800,000
$950,000
$650,000
$150,000
$65,000
$ TOTAL
2,450,000
2,977,000
2,397,000
3,924,000
29,700,000
% OF TIC
0.25%
0.31%
0.29%
11.10%
3.06%
575,640
10,351,000
4,528,240
1,654,800
31,899,840
1,308,684
915,840 3,
738,000
18,820,000
9,844,000
3,940,000
67,872,000
3,355,600
816,000
0.08%
1.94%
1.01%
0.41%
6.98%
0.35%
0.39%
5,401,800
4,401,280
12,004,000
8,464,000
1.24%
0.87%
3,765,080
8,756,000
0.90%
87,131,200
877,680
24,380,460
245,440,000
1,908,000
62,514,000
25.26%
0.20%
6.43%
24,975,800
53,140,000
5.47%
11,770,000
11,282,105
21,400,000
21,286,990
2.20%
2.19%
Copyright © 2017 Compass International, Inc.
88. | SECTION A3
CONSTRUCTION CATEGORY (CONTINUED)
Fire Protect / Fire loop
Piping
Pipe / Utility Racks including foundations
Ductwork / Ducting including steel supports
Insulation / Firebrick work
Electrical equipment / cable / conduit / trays
Transmission lines / Electrical Yard
DSC Controls Security Systems
BOP Items - Tanks, re-boiler, black start equipment, pumps,
AHU’s, CEMS, Forklifts, maintenance shop equipment,
minor equipment, electrical equipment, miscellaneous
equipment, furniture, trucks, vans.
Sub Total
Detailed design work / Engineering deliverables
Construction Management
Other Consultants
Third party engineers Permanent Construction / Engineering Office Trailer Area
Site Engineering / Construction Mgmt General Conditions
Owner costs (front end studies), Permits, Legal fees, Inspection services, Owner procurement services,
FAT reviews, Project related training, guards, safety staff
Start up / commissioning (material & labor)
Total Installed Cost
Capitalized spare parts
$ MATERIAL
6,324,500
43,714,000
6,749,000
9,094,400
8,851,200
26,781,440
2,038,910
3,216,000
1,098,000
10,025,280
$ LABOR
3,405,500
35,766,000
3,867,000
7,145,600
9,588,800
17,122,560
1,808,090
1,584,000
702,000
3,898,720
$ TOTAL
9,730,000
79,480,000
10,616,000
16,240,000
18,440,000
43,904,000
3,847,000
4,800,000
1,800,000
13,924,000
% OF TIC
1.00%
8.18%
1.09%
1.67%
1.90%
4.52%
0.40%
0.49%
0.19%
1.43%
483,386,291
3,974,400
2,651,700
159,510
75,790
1,162,000
20,955
10,025,280
339,744,299
75,513,600
32,704,300
2,294,490
2,784,210
498,000
1,249,045
3,898,720
823,130,590
79,488,000
35,356,000
2,454,000
2,860,000
1,660,000
1,270,000
13,924,000
84.71%
8.18%
3.64%
0.25%
0.29%
0.17%
0.13%
1.43%
919,800
5,212,200
492,670,546
479,080,044
4,800,000
6,132,000
971,750,590
0.63%
100.00%
Table 15
FACILITY AREAS
SF
M2
# OF STAFF
Manufacturing 112,700 SF
112,700
10,474
50 - 65 operators on 3 shifts
Admin / Cafeteria 24,700 SF
24,700
2,296
50 - 65 staff - 8:00 AM - 5:00 PM
R&D / QA Laboratory 20,500 SF
20,500
1,905
50 - 70 staff - 8:00 AM - 5:00 PM
Warehouse 49,400
49,400
4,591
5 - 7 operators on 3 shifts
TOTAL FACILITY FOOTPRINT
207,300
19,266
Copyright © 2017 Compass International, Inc.
SECTION A3 | 89.
Table 15
CONTINUED
CSI DIVISION
SF
DIVISION $ COST
SF / $
%
$ COST / M2
Preliminaries / Gen Conditions
207,300
4,591,695
22.15 6.87% 238.33
Site Work (Note 1)
207,300
2,415,045
11.65 3.61% 125.35
Concrete - Foundations and flatwork
207,300
4,653,885
22.45 6.97% 241.56
Masonry / Brickwork
207,300
986,748
4.76
1.48% 51.22
Metals - Structural steel / Metal Decking
207,300
4,237,212
20.44 6.34% 219.93
Woods & Plastic
207,300
735,915
3.55
1.10% 38.20
Thermal & moisture protection
207,300
3,248,391
15.67 4.86% 168.61
Doors & Windows
207,300
1,565,115
7.55
2.34% 81.24
Finishes
207,300
4,813,506
23.22 7.21% 249.85
Specialties - Fume hoods
207,300
609,462
2.94
0.91% 31.63
Production Equipment 207,300
5,481,012
26.44 8.20% 284.49
(tanks, blenders, packaging line)
Packaging Equipment
207,300
2,450,286
11.82 3.67% 127.18
Vendor start up assistance
207,300
223,884
1.08
0.34% 11.62
Laboratory equipment / Cold rooms
207,300
400,089
1.93
0.60% 20.77
Furnishings / casework
207,300
1,272,822
6.14
1.91% 66.07
Special construction
207,300
136,818
0.66
0.20% 7.10
Conveying Systems
207,300
507,885
2.45
0.76% 26.36
Mechanical - Plumbing / process piping
207,300
7,095,879
34.23 10.62% 368.31
HVAC - AHU
207,300
2,893,908
13.96 4.33% 150.21
Fire protection
207,300
516,177
2.49
0.77% 26.79
Electrical
207,300
5,920,488
28.56 8.86% 307.31
Bar coding equipment
207,300
522,396
2.52
0.78% 27.12
BAS / Communications / security
207,300
922,485
4.45
1.38% 47.88
Total Facility Construction cost 207,300
56,201,103
271.11 84.13% 2,917.14
w/o other costs
Conceptual studies
207,300
420,819
2.03
0.63% 21.84
A/E - Detailed design
207,300
5,358,705
25.85 8.02% 278.15
Other consultants
207,300
644,703
3.11
0.97% 33.46
Construction Mgmt + CM Gen conditions
207,300
3,086,697
14.89 4.62% 160.22
Owner PM/CM activities
207,300
1,094,544
5.28
1.64% 56.81
Sub Total with Engineering & CM costs
207,300
66,806,571
322.27 100% 3,467.63
OTHER COSTS
$ TOTAL Site works / Roads / Ponds
614,000
Storage tanks
811,000
Receiving area / loading
621,000
Owner supplied equipment (Fork lifts, furniture and other)
476,000
Truck scale
265,000
Landscaping
315,500
Parking lot 655,300
Fence
327,300
Gatehouse
212,000
Incoming utilities
1,363,500
Utility building 2,126,200
Sub Total of Other Costs
7,786,800
37.56
404.18
Total Facility Cost
359.83
3,871.80
• NOTE 1: Site work construction related to building footprint only
Copyright © 2017 Compass International, Inc.
90. | SECTION A3
Table 16
GAS GATHERING / PROCESSING 1 BILLION CF FACILITY
DESCRIPTION
QTY
U O M UNIT COST HOURS
MATERIAL
DIRECT COST
Major Production
869
No
555,948 805,375
470,233,000
Equipment
Utility Equipment
74
No
526,838 92,875
37,500,000
Ocean Freight on ME
48,428,500
9.54%
S/T Major Equipment
898,250
556,161,500
Demolition
1
LS
22,078
344,000
Earthworks
6,975,450
CY
8.84
1,618,784
41,459,000
Site Improvements
1
LS
908,320
22,540,000
Fencing
26,700
M
89.66
55,120
1,705,000
Roads / pathways
1
LS
46,062
1,343,000
Permanent Piling
278,000
LF
113.99
827,360
21,346,000
Concrete foundations
65,990
CY
692.53
2,453,600
15,030,000
Structures (steel)
12,990
Ton
3,173.44 920,643
28,334,000
Buildings & warehouse
68,650
SM
869.24
1,380,929
40,340,000
lay down areas
Process Piping 2” - 24”
1,147,800
LF
238.15
8,875,225
131,346,000
Small bore pipe 1”
434,500
LF
51.55
928,044
7,547,900
& below
Pipe racks
8,880
LF
1,780.07 409,813
9,250,000
Electrical Work
5,996,000
LF
13.86
1,540,625
58,450,000
I&C (20,880 i/o points)
7,990
No
5,478.85 464,625
36,342,000
Insulation
889,300
LF
56.32
1,908,125
19,556,000
Coatings
14,760
SM
144.76
98,125
566,600
Refractory / Linings
4,370
SM
186.50
34,250
267,000
Painting
512,780
SM
14.20
312,375
2,283,300
Loading facility
5,350
SM
594.39
64,813
2,143,000
(2) Main pipelines from 17,400
LF
1,143.97 653,250
9,453,000
landfall 24” & 20”
Utility Area
2,450
SM
1,790.20 72,250
3,230,000
Tank farm
6,920
SM
981.01
178,608
4,556,000
Tanks / Spheres
138
No
129,783 153,750
15,450,000
OSBL piping
421,960
LF
169.21
2,278,125
34,950,000
S/T
26,204,897
507,831,800
Freight on Bulks 3.85%
19,551,500
S/T Direct Cost
527,383,300
FIELD IN DIRECTS
Construction Mgmt
107.38
2,050,000
Field staff local foremen / superintendents
29.40
534,000
Temp facilities
Construction equipment
Small tools
Consumables
Water boys / clean up
Copyright © 2017 Compass International, Inc.
LABOR
TOTAL
12,886,000
483,119,000
1,486,000
0
38,986,000
48,428,500
14,372,000
275,980
20,234,800
11,354,000
689,000
575,770
10,342,000
30,670,000
12,889,000
19,333,000
570,533,500
619,980
61,693,800
33,894,000
2,394,000
1,918,770
31,688,000
45,700,000
41,223,000
59,673,000
142,003,600 273,349,600
14,848,700 22,396,600
6,557,000
24,650,000
7,434,000
30,530,000
1,570,000
548,000
4,998,000
1,037,000
10,452,000
15,807,000
83,100,000
43,776,000
50,086,000
2,136,600
815,000
7,281,300
3,180,000
19,905,000
1,156,000
4,386,000
2,232,600
6,788,600
2,460,000
17,910,000
36,450,000 71,400,000
393,290,450 901,122,250
0
19,551,500
393,290,450 920,673,750
220,132,000 220,132,000
15,700,000 15,700,000
37,550,000 37,550,000
14,300,000 14,300,000
4,760,000
4,760,000
3,650,000
3,650,000
2,350,000
2,350,000
SECTION A3 | 91.
DESCRIPTION
QTY
U O M UNIT COST HOURS
MATERIAL
LABOR
TOTAL
FIELD IN DIRECTS (CONTINUED)
Site warehousing / logistics
6,200,000
6,200,000
Construction camp mob / demob
178,500,000 178,500,000
Food 15,000,000 15,000,000
Medical facilities
2,243,000
2,243,000
Testing
5,578,000
5,578,000
Training
6,490,000
6,490,000
Start up
9,330,000
9,330,000
S/T Field In directs
521,783,000 521,783,000
DETAILED DESIGN / PROCUREMENT SERVICES
Design / PM - Europe
135.68
2,130,000
289,000,000 289,000,000
Design - Asia
95.62
1,283,000
122,680,000 122,680,000
Procurement
106.67
90,000
9,600,000
9,600,000
Inspection 4,705,000
4,705,000
EP Fee
20,500,000 20,500,000
Field visits / coordination
2,770,000
2,770,000
S/T Detailed design / Procurement Services
449,255,000 449,255,000
OTHER PROJECT COSTS
Owners costs (Permanent and Consultants - task force $0.375 per year) 82,750,000 82,750,000
FE Studies
13,560,000 13,560,000
Local Consultant fees
2,700,000
2,700,000
Third party consultants
5,420,000
5,420,000
Govern permits
1,500,000
1,500,000
Import duties / taxes
12,500,000 12,500,000
Agents fees & services
9,200,000
9,200,000
Insurance / bonds 11,060,000 11,060,000
Spare parts
12,450,000 12,450,000
First fill / catalyst / grogg
18,500,000 18,500,000
S/T Other Project Costs
169,640,000 169,640,000
TOTAL COST
2,631,885,250
• Excludes contingency
• 1 billion CF day (1,000,000,000) CF CAPEX cost $2.63
Copyright © 2017 Compass International, Inc.
92. | SECTION A3
Table 17
SHALE GAS PLANT (ISBL& OSBL) 42.5 MMSCFD
PENNSYLVANIA USA
2012 / 2013 CONSTRUCTION START & COMPLETION - 15 MONTHS
DETAILED DESIGN COMMENCED 1ST Q 2012, COMPLETED IN 9 MONTHS
UNION LABOR - AVERAGE 130 WORKERS, PEAKED AT 190 WORKERS
DESCRIPTION /
QTY
U O M MAN-HOURS $ WAGE $ LABOR
WORK BREAKDOWN
(TOTAL DIRECT RATE
COST
STRUCTURE
FIELD M-H’S)
$ ME & $ TOTAL
MATERIAL COST
COST
Major Equipment
127
Number 59,134
44.92
2,656,382
36,606,445 39,262,827
Demo / Site Works /
12
Acres
4,280
39.12
167,440
3,330,849 3,498,288
Roads / Fencing
Concrete, Rebar & 2,588
Cu Yards 30,343
40.66
1,233,790
1,321,155 2,554,945
Formwork
Structural Steel / Platforms 472
Tons
18,923
44.48
841,713
1,923,336 2,765,049
Above Ground Piping
13,640 LF
70,754
48.13
3,405,196
4,121,110 7,526,306
(CS 60% Alloy 40%)
Below Ground Pipe
1,325
LF
3,264
48.03
156,761
215,340
372,101
Electrical
82,550 LF
28,976
49.61
1,437,476
3,610,575 5,048,051
Instruments
845
Each
27,886
49.94
1,392,604
4,207,584 5,600,188
Insulation ME & Pipe
33,500 SF
18,754
44.95
843,062
593,046
1,436,108
Paint / Coatings
69,770 SF
5,477
44.37
243,023
52,542
295,565
Refractory / Fireproofing
1
Lump
1,635
45.87
74,997
35,674
110,671
Sum
Freight on ME and Bulks
1
Allowance
699,000
699,000
Total Direct Field 269,426
12,452,444
56,716,655 69,169,099
Construction Costs (TDFCC)
INDIRECT FIELD COSTS
Contractor Field Supervision / Management
34,109
103.25
3,521,754
(approx. 10 to 14 contractors staff)
Field labor support 56,106
41.22
2,312,689
(approx. 20 to 25 construction workers) material logistics, drivers, warehouse
workers, clean up, guards, fueler / oiler,
fire watch, runners, office cleaner,
mechanics, water boys
Fringe benefits - 936,557
fringe benefits commonly include health insurance, group term life coverage,
training education reimbursement, childcare
and assistance reimbursement, cafeteria
plans, employee discounts, personal use
of a company owned vehicle and other
similar benefits. (Ranges between
7.25% and 12.5%)
Payroll Burdens such as Social Security 6.2%, 3,701,669
Employer Medicare 1.45%, Federal Unemployment (FUTA) 0.8%, State Unemployment (SUTA) 2.5%,
Worker’s Comp Insurance 15% to 25%,
Disability Insurance -- 2% for a total on average
of between 28% and 38%.
Copyright © 2017 Compass International, Inc.
% OF
TDFC
56.76%
5.06%
3.69%
4.00%
10.88%
0.54%
7.30%
8.10%
2.08%
0.43%
0.16%
1.01%
100.00%
5.09% of
TDFCC
3.34% of
TDFCC
1.35% of
TDFCC
5.35% of
TDFCC
Q
SECTION A3 | 93.
DESCRIPTION /
QTY
U O M MAN-HOURS $ WAGE $ LABOR
WORK BREAKDOWN
(TOTAL DIRECT RATE
COST
STRUCTURE
FIELD M-H’S)
$ ME & $ TOTAL
MATERIAL COST
COST
% OF
TDFC
Q
INDIRECT FIELD COSTS (CONTINUED)
Home office field support 2,981
102.35
305,112
0.44% of
(Procurement & Construction
TDFCC
HO CM oversight & HO safety oversight )
Consumables, welding rods, gas safety
88,911
0.13% of
equipment etc. 269,426 DFCC hours X $0.33
TDFCC
Small tools (files, blades, picks, etc. 404,139
0.58% of
under $100 each) 269,426
TDFCC
DFCC hours X $1.50 Scaffolding 269,426 DFCC hours X $0.16
43,108
0.06% of
TDFCC
Plant Hire / Construction Equipment
2,355,000
3.40% of
(includes Mob-De Mob) 269,426 DFCC hours X $8.74
TDFCC
Heavy Lift cranes 300 Ton required 750 hours - 525,000
0.76% of
15 weeks (includes Mob and de-mob) TDFCC
$35,000 per week - includes operator
Fuel for construction equipment 14,000 gallon x $4.25 per gallon
59,500
0.09% of
TDFCC
Vendor assistance
133,690
0.19% of
TDFCC
Field Establishment / Trailers / Toilets
472,950
0.68% of
TDFCC
Temporary construction, roads, barricades, site clean up
103,778
0.15% of
TDFCC
Sales tax on plant hire and consumables 6%
168,650
0.24% of
(no sales tax on ME, bulks and labor)
TDFCC
Worker Travel allowance / Per Diem
305,000
0.44% of
TDFCC
Site staff travel / 5 pickup trucks
136,011
0.20% of
TDFCC
Temporary water, electricity
103,778
0.15% of
TDFCC
Per Diem (Field staff )
285,600
0.41% of
TDFCC
Commissioning / start up assistance
1,880
112.16
210,859
0.30% of
TDFCC
Total Indirect Field Costs
16,173,755 23.38% of
TDFCC
Total Field Cost (TFC)
85,342,854
EP Contractors Project Management /
4,630
118.25
547,498
0.64% of
Project Controls - Home Office)
TFC
Procurement / Contracts - Home Office
3,700
110.33
408,221
0.48% of
TFC
Detailed Design
61,840
107.35
6,638,524
7.87% of
TFC
Construction Management (6 staff)
19,845
109.75
2,177,989
2.55% of
TFC
Total before OH&P
95,115,085
Contractors & EPC OH 5% to 8.5% (used 5.75%)
5,469,117
EPC / Contractor Profit Fee 3.75% to 7.5% (used 5.25%)
4,993,542
TOTAL PROJECT COST
105,577,744
Cost per MMSFD / 42.5 Base Case (+/-10%)
$2.24 million to
$2.73 million
Cost per Major Equipment (127 #) $831,320
11.7 M-Hs to install conc, 40 M-Hs to install struct steel, 5.19 M-Hs to fab and erect A.G. pipe, 33 M-H’s to install instru. device.
EXCLUSIONS:
Land Purchase, Front End Studies, Contingency, sales tax excluded, except as above, spare parts and 3rd party testing.
Copyright © 2017 Compass International, Inc.
94. | SECTION A3
Table 18
USA 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 CRANE
COST RANGE $11,020 TO $15,560 PER TON
DESCRIPTION
MATERIAL
LABOR
ENGINEERING / OTHER
Purchase Steel Materials 46,004 Fabrication of Steel Frame & Grating
19,377 Purchase of Major Equipment, Purchase
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 Piping Material (Pipe, fittings & valves)
8,225 Pipe Fabrication
26,487 Heat treat & NDT of pipe systems
745
4,182 Paint for steel material
6,506 Labor to paint steel material
9,655 Paint for pipe material
1,324 Labor to paint pipe material
879 Insulation material
6,413 Insulation labor
4,600 Electrical & Instr materials 7,639 Electrical & Instr labor
6,413 S/T
115,824
79,918 Module Shop Detailed Design, 19,860
PM & Purchasing and Site Visits Lift module onto truck
3,353
Transport to jobsite assume
8,556
250 mile one way trip
S/T
31,769
Total cost of Material, Free-Issued (4 Pumps, 4 Other) Major Equipment,
Fabrication & Detailed Design Module Fabricators G&A ,O-H & Profit 14%
TOTAL COST OF 20 TON MODULE
COST PER TON
Labor Rate $34.85 = 2,109 Shop hours (open shop)
Engineering Rate $94.45 = 210 hours
225 to 400 M-Hs to fabricate
EPC basic / detailed engineering is excluded from above costs
1 C.F. of module weighs 4.50-6.50 pounds
1 S.F. footprint of module weighs 130-175 pounds
Copyright © 2017 Compass International, Inc.
$ TOTAL
46,004
19,377
38,967
8,324
8,225
26,487
4,927
6,506
9,655
1,324
879
6,413
4,600
7,639
6,413
195,742
31,769
227,511
31,852
$259,362
$12,968
SECTION A3 | 95.
40 Ton Module Cost Model
DELIVERED TO SITE CONTRACTORS CRANE HOOK,
SITE CONTRACTOR WILL SET IN PLACE WITH THEIR OWN HEAVY LIFT CRANE
COST RANGE: $10,340 TO $14,600 PER TON
DESCRIPTION
MATERIAL
LABOR
ENGINEERING / OTHER
Purchase Steel Materials
89,060 Fabrication of Steel Frame & Grating
36,887 Purchase of Major Equipment, Purchase
81,889 cost is included, would be free issued to
module fabricator to install in module
by owner or EPC
Install Major Equipment into module
13,886 Piping Material (Pipe, fittings & valves)
12,894 Pipe Fabrication
47,883 Heat treat & NDT of pipe systems
1,660
5,733 Paint for steel material
11,663 Labor to paint steel material
16,743 Paint for pipe material
1,984 Labor to paint pipe material
1,559 Insulation material
14,004 Insulation labor
9,665 Electrical & Instr materials 17,930 Electrical & Instr labor
8,884 S/T
231,084
141,240 Module Shop Detailed Design, PM &
36,885
Purchasing and Site Visits Lift module onto truck
5,646
Transport to jobsite assume 11,945
250 mile one way trip
S/T
54,476 Total cost of Material, Free-Issued
(7 Pumps / 7 Other) Major Equipment,
Fabrication & Detailed Design Module Fabricators G&A ,O-H & Profit 14%
TOTAL COST OF 40 TON MODULE
COST PER TON
Labor Rate $34.85 = 4,053 Shop hours (open shop)
Engineering Rate $94.45 = 390 hours
EPC basic / detailed engineering is excluded from above costs
225 to 400 M-Hs to fabricate
1 C.F. of module weighs 4.50 - 6.50 pounds
1 S.F. footprint of module weighs 130 - 175 pounds
$ TOTAL
89,060
36,887
81,889
13,886
12,894
47,883
7,393
11,663
16,743
1,984
1,559
14,004
9,665
17,930
8,884
372,324
54,476
426,800
59,752
486,552
12,163.80
Copyright © 2017 Compass International, Inc.
96. | SECTION A3
Module Cost Per Ton
2016 COST BASIS
TONS
COST PER TON
LOW $ COST / TON
HIGH $ COST / TON
60
12,000
10,200
14,400
80
11,500
9,775
13,800
100
11,000
9,350
13,200
NOTE:
The above values include for major equipment items such as pumps, drums and tanks. Values need to be adjusted if sophisticated 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
Chemical - Liquids
Chemical - Liquids / Solids (Hybrid)
Chemical - Solids
Ethanol Facility (corn / sugar cane)
Pharmaceutical Power
Steel
MEDIAN M.E. MULTIPLIER
3.75
3.25
2.50
2.75
1.75
2.00
1.50
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 power, 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 unsophisticated 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, crushers 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 sophisticated instrumentation / control system, open shop or
Copyright © 2017 Compass International, Inc.
HIGH RANGE M.E. MULTIPLIER
5.00
4.50
3.75
3.25
2.50
3.30
2.00
6.25
5.75
5.25
3.75
4.50
4.00
2.50
a combination of union construction workforce and a
normal construction schedule.
High Range: Characteristically the major equipment 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 instrumentation / control system – TDC 3000 or equal, open
shop or a combination of union construction workforce 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 definition / design development effort, or early on in the
SECTION A3 | 97.
process design stages, i.e. 5% - 15% of the detailed
design should have been completed (or a front end
design package has been completed). They are typically prepared to formulate the first round of project
viability / economics, ROI, that are used to select
one chemical / manufacturing process over another
or to validate earlier economic evaluations / estimates. The front end / semi-detailed method can in
some situations be of great assistance as quick / cost
effective and reasonably defined cost forecast, (accuracy is in the +/- 20-15% range) compared to the
lump sum / detailed method described below. The
lump sum / detailed method estimating approach
takes much more resources / deliverables to compile,
the accuracy may be better say +/-15 -10%, however
by perhaps increasing the contingency value by a
couple of percentage points this accuracy differential
could be mitigated. The front end / semi-detailed
estimate provides a reasonable cost evaluation at a
much smaller preparation cost and time value. In
essence it is based on one premise, the major equipment price list (delivered to site), it is typically
predicated upon major equipment listing, i.e., quotes
/ pricing, hopefully from pre-qualified fabricators /
vendors together with preliminary sketches, major
quantity take-offs and material unit prices / unit
erection hours. This capital cost estimating method /
approach is the best “path forward” when a detailed
capital cost estimate can not be compiled without the
knowledge and advantage of a reasonable amount of
completed detailed engineering and the costs associated with this effort. A reasonably accurate front end
/ semi-detailed estimate, with an accuracy of say -/+
20% - 15% can be completed with some of the following engineering deliverables.
1. A preliminary / detailed scope of work statement / project execution approach
2. The location of the new / existing plant
3. A major equipment list and specifications /
materials of construction, with vendor pricing if possible
4. P.C.A.’s / Phase 1 Environmental Reports (if
available)
5. Process Flow Diagram’s P.F.D.’s
6. Reasonably complete P. & I. D.’s …say 30
-70% complete
7. Some general arrangement drawings, plot
plan, some outline / detailed specifications
8. Preliminary Electric motor list
9. Electrical classification map
10. Instrumentation / Control philosophy
11. Preliminary Instrumentation list
12. Preliminary equipment arrangements
13. A milestone “event” schedule (start of engineering, procurement and construction and finish
date)
14. Knowledge of off-site requirements
15. Construction approach union / open shop
labor (merit shop)
In general the cost estimate must be a reflection of the (1) Scope of Work, (2) Project Execution
Plan (i.e., direct hire, construction packages, GC
approach) and (3) The current Milestone schedule
(start and finish date). If the plan of attack is to use
multiple construction contractors, the cost estimate
basis and backup supporting documentation must
include sufficient details so that the final anticipated
cost can be established with the least amount of effort to mirror potential scope changes. Additional
front end / semi-detailed unit prices and various
pricing methods can be found in section D –1.
(E) A.F.E. Funding Estimates / Preliminary
Estimates (+/- 20% Accuracy)
This A.F.E. (Approval for Expenditure) “funding” initial control capital cost estimates are produced after the project studies / basic process design
package is completed or substantially completed,
perhaps 70% complete and the scope of the off-sites
has been established or at least initially scoped out.
AFE / Preliminary estimates are typically used to assist in the compilation of detailed project execution
plan, also to finalize the R.O.I. / EBITDA payback
economics. Many times companies use this estimate to get funding from their board of directors,
this is the stage in the projects life cycle to obtain
Copyright © 2017 Compass International, Inc.
98. | SECTION A3
its full approved funding, and typically the detailed
engineering effort might be considered 10% to 20%
complete. An appropriate contingency for this type
of capital cost estimate would be in the 15% – 20%
range.
(F) Validation (Check Estimate) Control /
Estimates (+/- 15% Accuracy)
A hybrid of an AFE estimate and a lump sum
/ definitive estimate, used sometime as a preliminary control estimate, sometimes used to confirm or
validate the AFE funding estimate; the engineering
typically would be at the 20% - 35% level, when this
capital cost estimate is assembled.
(G) Lump Sum (Control)/ Definitive Estimates / GMP / Hard Money / Tender Submission
(+/- 5% Accuracy or less)
The lump sum / definitive capital cost estimates
are typically compiled / arranged when the project
has been comprehensively documented (a good
amount of engineering deliverables i.e. drawings and
specifications have been completed), i.e., 50% -75%
engineering is defined, including plant location,
actual location of facility within the plant, detailed
scope of work, project approach, specifications, timing, major equipment requirements are known and
long lead items may have been ordered, any off-site
requirements are known, and engineering on the
off-sites is well advanced, many times construction
could have commenced. This approach the lump
sum / hard money / detailed method of capital cost
estimating is typically utilized by EPC / engineering
firms and / or contractors, some owner type companies still compile this type of “detailed” capital cost
estimates. This is vital of course, to any firm providing a lump sum bid. This approach is, as its name
means, very much more labor intensive (engineering, design staff, procurement and project controls)
than the previous mentioned front end approaches
described. B of Q’s, (Bill’s of quantity), Major
Equipment lists, Instrument lists, bulk material
take-off ‘s are typically made to a large extent from
Copyright © 2017 Compass International, Inc.
completed drawings and specifications. Typically,
the engineering effort is in the 50% -70% range,
possibly even more advanced. Lump Sum Quotes
are obtained on the major equipment and specific
construction work packages from a reasonable number (2 or 3) of pre-qualified vendors and individual
subcontractors. Detailed bulk material lists are compiled and forwarded to vendors, the estimator / cost
engineer will also price these items out to ensure
/ check / verify vendor and sub contractor pricing.
The field labor man-hours are evaluated based on
quantity take-off measurements / productivity is
evaluated. The EPC home office and field support
engineering / procurement hours are compiled based
on the required project deliverables, typically by
each engineering lead engineer. Detailed Engineering and field supervision and field establishment
expenses and other items, such as copies, drawings,
telephone expenses, travel expenses, CAD machines,
construction rental equipment, freight, import duties
and taxes, safety requirements, insurance, contingency, management reserve, insurance, vendor assistance, taxes, permits, testing, freight, import duties
/ tariffs if required, etc., are all reviewed, estimated,
compiled and priced out and incorporated into the
estimate summary.
GENERAL BENCHMARKS
The following 80 + benchmarks (on the next pages)
should be considered / reviewed and added to the
previous cost models if appropriate:
* Current US tax allow for the first $82.5K of
earnings to be non taxable (6/26/2006), however
working overseas for periods of more than six
months will require US expatriates to pay both US
and local country income taxes where applicable.
SECTION A3 | 99.
General Benchmarks
TO BE ADDED TO THE PREVIOUS COST MODELS IF APPROPRIATE
DESCRIPTION
RANGE
1. Off sites (OSBL)
5% - 50% of
Inside Battery
Limits (ISBL)
22% - 30% of
base wage rate
10% - 17.5% of
base wage rate
1.5% of TIC
0.5 – 2.5% of TIC $1 - $100 + million
of facility.
0.15% - 0.60%
$1 - $100 + million
4 00% - 15.00%
2. Fringes (vacations, holidays,
sick days)
3. Worker Compensation
Insurance
4. Inspections / QA-QC services
5. Front End Studies / Scoping
study / BOD
6. Builders all risk insurance (BAR)
7. Contractors O/H (Supporting
construction / field activities)
8. Profit
3.5% - 15%
9. Performance Bond
10. Procurement activities
0.35% - 1.25%
0.50 – 1.00%
of TIC
0.50 – 1.00%
of TIC
0.50 – 1.50%
of TIC
11. Engineering support
12. H.O Project Controls
13. Value Engineering Study
15. Project Reviews / Audit /
Benchmarking Analysis
% - 8% of TIC
1.5 – 5% of
Direct - S/C
Labor
ACTIVITY COST COMMENTS
The larger the TIC value of
the project, the lower the %
typically is.
Typically on a $20 million
new building / facility a profit
margin between 5% - 8.5%
can be realized dependent on
economic climate and number of bidders - 5 + or more
bidders generally translates
to lower profit margins.
Purchase orders & contracts
Field questions, vendor visits,
answers to RFI
Estimating, cost engineering
and planning activities
$5 million
$10 million
$50 million
$5 million
$10 million
$50 million
$5 million
$10 million
$50 million
14. Risk Mgmt Review
16. General Conditions /
Preliminaries
17. Small Tools
FACILITY COST
$20 - $40 K
$30 - $60K
$40 - $100K
$20 - $30 K
$30 - $40K
$40 - $60K
$20 - $45 K
$35 - $70K
$45 - $100K
(CSI Division 1 Preliminaries)
Hand tools / typically valued
less than $100 per item
Typically $2.50 - $4.00 per
construction man-hour
Copyright © 2017 Compass International, Inc.
100. | SECTION A3
DESCRIPTION
RANGE
18. Consumables
1.25 – 3.5%
of Direct - S/C
Labor
0.75% – 1.50%
of Direct - S/C
Labor
2.5 – 12.5%
of Direct - S/C
Labor
3.0 – 5.0
19. Temporary Services
20. Field Supervision
21. Major Equipment multiplier
22. Construction Equipment
23. Protection materials
24. Contractors Fee
25. Vendor Assistance
26. Spare Parts
27. Royalties / Licensor Fees
28. Overtime shift work
29. Validation Services (where
required)
30. Operator Training
31. Owners Staff / Engineers, Consultant based at EPC office / field
location during construction effort
FACILITY COST
(Gasses, welding rods, grease,
etc.)
Could be 5.0 – 7.0
for remote plants
and facilities using SS and exotic
metals
2 – 7% of Direct
- S/C Labor
0.20 – 0.40% of
Direct S/C Labor
2 – 4% of Total
Installed Cost
of Facility on
CM General
Construction
Projects
0.50 – 1.50% of
Major Equipment
Copyright © 2017 Compass International, Inc.
Multiplier of d/d M.E item
(cost).
An example of a high multiplier would be Canadian Tar
Sands projects
Tarpaulins / temporary
screens / worker rain gear.
Large projects would see fee
in the 2 – 3% range.
On Refinery / Process / Power
type construction fees can
range from 6% - 10% of TIC
Another approach is to obtain
pricing from vendors for this
activity
Another approach is 1.5%
– 7.5% of rotating equipment
(Pumps, compressors etc)
2.5 – 5.50% of
Major Equipment, typically in
the 2-4% range
on complex
facilities use 55
– 7.5% of the
M.E. cost
0.25% - 3.5% of
major equipment
0 – 10% of
Direct Labor
10 – 40% of
Detailed design
costs
0.5 – 2.5% of
M.E.
North America
($70 - $100 /
hour)
ACTIVITY COST COMMENTS
Another approach is 0.5%
– 3.5%% of TIC of facility
Use 5% - 10% of labor cost if
o/t is anticipated
1 – 5% of TIC
$10 - $15K per month
(based on 166 m/h per
month)
2.5 – 5% of M.E. on large /
complex EPC projects
Excludes per diem Per diem varies and is in the
& trip home every $100 - $150 / day range).
2 - 6 weeks
Airline fare $0.5K - $1.5K
SECTION A3 | 101.
DESCRIPTION
RANGE
FACILITY COST
ACTIVITY COST COMMENTS
32. Owners Engineers North
American Staff / Consultants based
at EPC office / field location during
construction effort
South America
($70 - $125 /
hour)
$10 - $17K per month
(based on 166 m/h per
month)
33. Owners engineers North
American Staff / Consultants based
at EPC office / field location during
construction effort
Europe
($70 - $125 /
hour)
$10 - $20K per month
(based on 166 m/h per
month
34. Owners Engineers North
American Staff / Consultants based
at EPC office / field location during
construction effort
Africa, Middle
and Far East
($75 - $135 /
hour)
$12 - $22K per month
(based on 166 m/h per
month)
35. Expense items / Demolition /
initial fill Chemicals
TBD Historically
0.50% - 1.50%
of TIC
$300 - $450 Ton
Excludes per diem Per diem varies and is in
& trip home every the $100 - $250/ day range.
8 - 12 weeks
Airline fare $1K - $2K
(* Excludes local
Business Class $4K
country income
taxes)
Excludes per diem Per diem varies and is in the
& trip home every $100 - $250 / day range.
8 - 12 weeks
Airline fare $1K - $3K
(* Excludes local
Business Class $4K
country income
taxes)
Excludes per diem Per diem varies and is in the
& trip home every $100 - $250 / day range.
8 - 12 weeks
Airline fare $1.5K - $4K
(* Excludes local
Business Class $7K
country income
taxes)
Use quoted values where
possible
Average Cost $375 / Ton
$550 -$700 Ton
Average Cost $625 / Ton
$300 - $450 Ton
Average Cost $250
- $325 / Ton of annual
production capacity
Average Cost $2.00 per
Gallon
36. Steel Pipe Mill – Construction Cost - (Total Facility based on
production capacity)
37. Steel Mill – Construction Cost
- (Total Facility based on production capacity)
38. LNG – Construction Cost (Total Facility based on production
capacity)
39. Ethanol Plant – Construction
Cost - (Total Facility based on production capacity)
40. Bio-Diesel Facility – Construction Cost - (Total Facility based on
production capacity) – Flax, palm
oil, sunflower and soybean.
41. Cement Plant – Construction
Cost - (Total Facility based on production capacity)
$1.60 - $1.75
per gallon for a
25 million gallon
a year plant.
$1.50 - $1.65
per gallon for a
50 million gallon
a year plant.
$1.40 - $1.55
per gallon for a
100 million gallon a year plant.
$0.90 - $1.40
$1.15 per gallon
per gallon
$225 -$335 Ton
Average Cost $280 / Ton
Copyright © 2017 Compass International, Inc.
102. | SECTION A3
DESCRIPTION
RANGE
FACILITY COST
42. Refinery (Oil) – Construction Cost - (Total Facility based on
production capacity) – 50,000 BBL
– 250,000 BBL / day
43. Alumina Facility
$20,000 $50,000 per BBL
Average Cost $35,000
per BBL
Facility cost per
pound / kg of
production
Facility cost per
pound / kg of
production
Facility cost per
pound / kg of
production
$1,670 - $2,180
per kW
$0.60 - $0.65 per pound
$0.27 - $0.30 per
kg of production
$0.14 - $0.20 per pound
$0.06 - $0.09 per
kg of production
$0.28 - $0.34 per pound
$0.13 - $0.15 per
kg of production
$820 - $1,200
per kW
Average Cost $1,010 /
kW
$800 - $1,100
per kW
Average Cost $950 / kW
$2,650 - $6,050
of installed kW
of capacity
$1,000 - $2,200
of installed kW
of capacity
Average Cost $4,350 /
kW
$1,100 - $2,200
of installed kW
of capacity
$4,100 - $7,300
of installed kW
of capacity
$1,760 - $2,560
of installed kW
of capacity
$3,500 - $6,250
of installed kW
of capacity
Average Cost $1,650 /
kW
44. Boric Acid Facility
45. Ethyl Acetate Facility
46. Power Plant (Coal) – Construction Cost - (Total Facility based on
production capacity)
47. Combined Cycle Power Plant
(Gas) – Construction Cost - (Total Facility based on production
capacity)
48. Simple Cycle Power Plant (Gas)
– Construction Cost - (Total Facility
based on production capacity)
49. Fuel cell facility
50. Wind Power Construction Cost
- (Total Facility based on production capacity)
51. Geothermal Power Facility
52. Nuclear Power Facility
53. Hydro power plant
54. Photovoltaic plant
Copyright © 2017 Compass International, Inc.
ACTIVITY COST COMMENTS
Excludes OSBL work typically
an additional 10% - 30% of
facility cost
Excludes OSBL work typically
an additional 10% - 30% of
facility cost
Excludes OSBL work typically
an additional 10% - 30% of
facility cost
Average Cost $1,925 /
kW
Average Cost $1,600 /
kW
Average Cost $5,700 /
kW
Average Cost $2,160 /
kW
Average Cost $4,875 /
kW
Optimum wind speed needs
to be between 15 – 25 MPH
for cost effective solutions:
Typically these wind farm
facilities are in the 10 – 75
MW range (The wind turbine
unit typically represent 50%
- 75% of the TIC).
Current turbines are sized 1.5
– 3.0 MW
Based on facility capable of
generating 200 – 450 MW
SECTION A3 | 103.
DESCRIPTION
RANGE
55. Desalination Facility
25 million gallon
per day of brackish water $40
– $50 million
investment
Ditto sea water
100 million
gallons per day
$110 – $125
million investment
0.65% - 1.40%
of construction
cost.
$2.65 - $3.65
Average cost $3.15 per
per pound
pound and $6.93
$5.83 - $8.03
per kg
$0.33 – $0.37 per pound
$0.73 - $0.81 per kg
TBD
56. Construction temporary services (water, electricity etc)
57. Cost of CS pipe and fittings
delivered to site , excludes field
fabrication and erection
58. Cost of CS A-36 0.25 inch plate
ex works
59. Bonds / taxes (B&O) Import
duties / VAT payments
60. Refurbished major Equipment
/ E&I programming / Tie-in’s /
Facility Shut-downs
61. I/O point new
62. I/O point modifying existing
system
63. Operating consumables
FACILITY COST
ACTIVITY COST COMMENTS
Excludes hangers & supports
Determine if sales exemption
certificate is in place.
TBD
$1,500 – $2,500
$800 - $950
0.5 – 1.75% of
annual sales
64. Annual Maintenance Costs
Public Building
0.25% – 1.0%
Manufacturing Facility (Auto Production / Paint / Tire type facility)
3.5% - 7.5%
Chemical / Fluids Plant** (Refinery
/ Amine Clause SRU)
1.5% – 5.5%
Chemical / Solids Plant
(Cement / Toner)
1.5% - 5.5%
Pharmaceutical Facility***
(Class 10,000 – 100,000)
65. Utility costs for Refinery /
Chemical Plant
2.5% - 8.5%
Asset first time cost (TIC of
installed facility EPC cost)
or facilities insurance / book
value / replacement cost.
**Could be up to 12.5% for
high pressures / hazardous
chemicals / materials that
corrode pipe / seals / bushings / impellers:
***Could be up to 15% for
cleaning protocols / chemicals / HEPA Filters / miscellaneous materials, dismantling
and flushing tri-clover type
piping systems etc:
Power $0.070
- $0.080 / Kw
hour
Water $0.060
- $0.070 / M3 of
Copyright © 2017 Compass International, Inc.
104. | SECTION A3
DESCRIPTION
RANGE
65. Utility costs for Refinery /
Chemical Plant
Power $0.070
- $0.080 / Kw
hour
Water $0.060
- $0.070 / M3 of
cooling
3% - 5% of M.E.
/ Bulks cost
5% - 10% of
M.E. / Bulks
0.5%– 2.5% of
M.E.
66. Freight (USA in country)
67. Ocean Freight
68. Operator training
69. Owner Engineering
(PM/ Engineering / CM)
70. Construction Equipment
71. Rail spurs, roads, footpaths
and fences
72. Pre-Commissioning
73. Project Insurance
(Umbrella)
74. Small tools cost per direct
field man-hour specific to North
American projects
75. Consumables cost per direct
field man-hour specific to North
American projects
76. G&A % as a % of total project
cost specific to North American
projects
78. Project Fee % as a % of total
project cost specific to North
American projects
79. Cost of temp facilities per
direct field construction hour on
North American projects
80. Cost of field supervision
(Superintendent & non working foreman) on North American
projects
81. Per Diem hourly cost paid to
Field Supervisors working away
from home base specific to North
American projects
FACILITY COST
ACTIVITY COST COMMENTS
Add in-country freight (both
countries)
On complex process facilities
use 1.5% – 3.75% of M.E.
cost
3% - 6% of TIC
10% - 25%
of Labor cost
(direct hire plus
S.C labor)
5% - 10% of
M.E. cost.
0.80% - 1.80%
of M.E. plus bulk
materials.
0.65% - 1.30%
of Construction
costs
$0.75 - $1.95
$2.65 – $5.75
4.85% - 8.75%
4.55% - 7.50%
$0.45 - $0.70
15% - 22.50%
$5.50 - $11.50
Copyright © 2017 Compass International, Inc.
Exclude detailed design, procurement, CM and fees from
the calculation.
SECTION A3 | 105.
DESCRIPTION
RANGE
82. Per Diem / travel hourly cost
paid to Field Workers working
away from home base specific to
North American projects
83. Construction equipment cost
per direct field man-hour specific
to North American projects
84. Third party inspection services
$3.50 - $8.50
85. Construction Manager Fee
86. Construction Manager General
Liability Insurance (Public Liability insurance & Property Damage
Insurance)
87. Construction Manager
(Staff / Hourly Rate)
FACILITY COST
ACTIVITY COST COMMENTS
$5.75 - $10.85
0.75% – 2.25%
of M.E. plus bulk
materials
1.00 – 2.35% of
Direct cost (Pass
thru cost)
0.66 – 1.15% of
Direct cost (Pass
thru cost)
$125 - $195
CAPITAL COST ESTIMATING SUMMARIES
(COVER SHEET)
The capital cost estimate summary on all types of
estimates should contain adequate information to
permit management to evaluate and consider the
compiled / established factors and ratio’s compared
to “normal” company estimating standards. This
summary / information should include some of the
following:
1. Type of Estimate O.O.M. / Funding / Lump
Sum
2. Name and location of plant / facility
3. Basis of estimate / scope work statement
4. Percentage of Engineering Complete
5. Estimating plan / key people involved with
capital cost estimate
6. Percentage breakdown between direct and
indirect costs
7. Major equipment list (percentage of firm
quotes)
8. Significant quantities, total cubic yards of
concrete, tons of structural steel, lengths of piping,
number of valves, number of motors, number of
instrumentation devices, number and footprint area’s
of buildings, etc.
9. Estimated engineering and field construction
hours
10. Labor rates, union or non union labor
11. Take-off allowances / Resolution factors and
allowances / Design growth
12. In-house engineering / Support cost details
13. Estimating assumptions / listing of drawings
and specifications estimate is based upon
14. Contracting / construction approach
15. Basis of Inflation / Escalation value
16. Expense items Start-up cost details Vendor
Assistance costs
17. Plant tie-ins and shutdown work / Royalties /
T & C review / M.E. multiplier
18. Engineering hours per piece of M.E / Shift
work or overtime requirements
19. Premiums for M.E. early delivery / Milestone schedule / Accuracy of estimate
Copyright © 2017 Compass International, Inc.
106. | SECTION A3
20. Project risks, i.e., demolition, hazardous
waste, LBP, long lead equipment items / L D’s
21. Percentage of estimate based on formal
quotations, percentage based on internal company
estimating systems / Contingency (Technical and
General) values / Currency impact etc.
22. Inflation values utilized
earlier in this section. Owners / Clients and EPC
firms have to appreciate that there is no single “best”
method of completing a CAPEX project, there are
possibly dozens of methods or ways to execute a
project.
All methods have pluses and minuses associated
with them; hopefully some of the information contained in the following sections will help the reader
This detailed listing will greatly assist managein understanding these complex issues. Industrial
ment in their review process. It is important to
Construction (refineries, chemical plants, pharmahave this information on file, many times capital
ceutical facilities, power facilities etc) need to be
cost estimates are delayed, cancelled or deemed too
looked at differently, they all have distinctive scopes
expensive, or the ROI / EBITDA is not considered
of work that are unique to their market sector. Ashigh enough. Many times these
sembling and calibrating the capiestimates are put aside for a period
tal cost estimate for these types of
of time only to be needed again,
facilities are complicated tasks;
It is important to have this
two or three years down the road.
the initial sections of this publicainformation on file, many
Using the older / previous capital
tion should be a good “starting
times capital cost estimates
cost estimate and calibrating it to
point” data source for individuals
are delayed, cancelled or
today’s cost can save a lot of time
tasked with this responsibility. As
deemed too expensive, or
and resources, when the CAPEX
has been mentioned previously,
the ROI / EBITDA is not
estimate is needed again. The basis considered high enough.
there is no common denominator
of the “bid”, i.e., assumptions,
when it comes to a standardized
clarifications, exclusions from bid
estimating methodology - differor alternates to proposal, need to
ent countries / different companies
be documented and made part of the bid submis/ different industry sector all use different terms /
sion. The physical effort of a detailed capital cost
nomenclature in compiling and discussing CAPEX
estimate involves many individuals. To be successful estimates. There is no standard name or classificait needs to be a “total team effort”. There must be a
tion / approach.
substantial / in depth analysis, review and checking
Again a lot of the issues related to the basics of
procedure by senior management and the estimatCAPEX estimating, CAPEX estimating fundamening / proposal team prior to the estimate / bid being
tals are discussed in some detail in Section 1, 2 and
submitted to client / or if the capital cost estimate is
3 of this publication.
to be used as a project control tool. This method is
suitable for EPC contractors (some owner / operating companies will produce similar type capital cost
estimate) bidding process related work on a lump
sum / turnkey / tender submission / GMP basis. It
is vital that these activities are completed to minimize any “risk” items that have been overlooked or
estimated incorrectly. Capital cost estimates can be
made at all stages of a projects life cycle, these include the capital cost estimates previously described
Copyright © 2017 Compass International, Inc.
SECTION A4
Basic Benchmarking Data
AND ELEMENTS OF A PROCESS PLANT / CHEMICAL FACILITY –
MANUFACTURING PLANT
W
hat is benchmarking and how does it
tion is to drill down deeper than the ratio and factor
fit into the execution of CAPEX projestimating methods described in Section A – 3. The
ects? Benchmarking is basically mak- reader will find numerous man-hour benchmarks for
ing comparisons with other businesses site works, civil, masonry, concrete work, structural
and our main competitors – how they
steel, equipment setting (millwright work), piping,
execute CAPEX projects, and then learning from
electrical work and a number of other related metrics
the pluses and minuses that those comparisons
that may be useful in compiling or auditing front
come up with and making changes in the way we
end conceptual estimates. The Engineering, Procurewill execute CAPEX projects in the future to gain a
ment and Construction (EPC) effort involved in the
competitive advantage. Benchmarkexpansion or creation of a new
ing is the constant measurement
or revamped CAPEX process
of installation methods, man-hour
(chemical or manufacturing facilBenchmarking is basically
performance standard / routine(s),
ity) journeys from initial idea to
making comparisons with
product(s), or services, compared
execution and final handover.
other businesses and our
to those that are considered “best
The effort involves most of the
main competitors
in class.” Benchmarking allows a
following work stages / steps:
company to recognize specifically
• Project Initiation (this could
where their performance standards
mean obtaining a project #, or
/ operations are relative to their competition. It is a
obtaining funding for this effort)
tool that can be used to detect major production and
• Front End assessments, PCA’s, site visit and
performance disparities both on the plus side and
evaluations
on the minus side. By recognizing various produc• Engineering studies for economics - ROI /
tion failings / shortcomings, management can focus
EBITDA returns
on remedies to improve that specific failing metric.
• Basic and detailed process design – followed
Benchmarking is the continuous process of meaby detail design
suring our performance and practices against our
• Development of Front End engineering / contoughest competitors, or those companies recognized cept reports including deliverables for final design
as industry leaders - best in class. Basically it is the
• Engineering / detailed design / effort (E)
activity of refining ourselves by learning from the
• Procurement (Buy-out of major equipment and
successes of others and considering our past failures. bulks) - Expediting - QA-QC effort (P)
This section is focused on basic benchmark• Construction / Field erection and installation(C)
ing data (man-hour units – man-hour units to in• Construction Management and Commissioning
stall various construction components), graphs and
/ Start up of plant or facility (CM)
various fundamentals of a process plant / chemical
• Validation (on pharmaceutical facilities) (V)
facility / manufacturing plants. The focus of this sec• Plant Acceptance / Handover
Copyright © 2017 Compass International, Inc.
108. | SECTION A4
• Operator training
• Manufacturing / on going operation activities
• Maintenance of the operating unit / facility
Typical Major Equipment that will be utilized on
a Process / Manufacturing Facility (This is a Partial
List) are as follows:
Air Dryers, Air Handlers, Agitators, Bag Houses,
Bins, Blenders, Blowers, Boilers, Centrifuges, Classifiers, Coils, Compressors, Condensers, Conveyors,
Cooling Towers, Crushers, Crystallizers, Drums,
Dryers, Emulsifiers, Evaporators, Extruders, Fans,
Fluidizers, Filters, Furnaces, Hammer- Mills, Heaters, Hoppers, Incinerators, Jacketed Vessels, Presses, Pumps, Reactors, Screens, Scrubbers, Separators,
Spheres, Tanks, Towers and Vessels.
Items to consider when estimating these major
equipment items include:
1. Obtain (2- 3) vendor prices if possible or
determine weight and apply cost per pound or kg for
the first initial Front End / conceptual estimating efforts. Use values obtained in section C-1 for specific
man-hours and pricing.
2. For installation man-hours review following data tables (5% - 10% of the ex works price is
a starting point divided by $48 to determine manhours for installation cost), this is a very rough
method of estimating, but better than nothing if you
have no other details.
3. Material used in the fabrication process
– type of steel / alloy
4. Pressure / operating temperature
5. Welding – manual or automatic at fabrication
shop or is field welding necessary?
6. Shell plate’s thickness can be 0.50” – 2”
and more in some situations, the thickness typically
increases in increments of 1/16”
7. Codes can be ASME or API or other
8. Heads can be flanged, dished, hemispherical
or elliptical
9. Nozzles, internal elements, internal supports,
baffles, vessel internals, trays, manholes, external
lifting points, insulation clips, legs and skirts
10. Steam jackets requirements
Copyright © 2017 Compass International, Inc.
11. Stress relieving requirements
12. Gaskets, seals and bolts
13. Inspection NDT – X-raying / stamp requirements
14. Size of major equipment (road, rail or air
transportation) to jobsite
15. Ladders and platforms (make sure that these
elements are covered in the estimate)
16. Consider weather protection if item is stored
in outside location i.e. lay down area.
17. Does item need to be broken down for delivery to site.
18. Consider cranes, scaffolding, lay down areas.
19. Estimate the cost of holding down bolts and
grouting work.
20. Transportation costs / freight / ocean freight /
insurance costs.
21. Delivery time, how long will it take to design, go out for bid, purchase, fabricate and ship to
site, is there any cost fluctuation clauses that could
impact the purchase price, that needs to be added to
the purchase price?
22. Do we need to pay any premiums for early
delivery?
23. Do we need to estimate any refractory work?
24. Estimate the cost of removing any packing
materials.
25. What about vendor assistance?
26. Consider other issues, such as currency fluctuations and inflation.
One of the more expensive elements to consider
when installing a piece of Major Equipment is the
cost associated with installing the internals and
the lining up and aligning these internal elements.
The following table(s) reflect the average cost
breakdown of a Chemical Facility / Process Plant
– broken out by main categories, together with a
listing of lead times in weeks that a number of these
major equipment items take to procure, engineer
and fabricate. This data should assist the reader in
determining the mid-points for major equipment and
subsequent installation. This can also assist in forecasting future escalation and any monthly fluctua-
SECTION A4 | 109.
tion clauses that are contained in a vendor’s quotation. The installation of major equipment is typically
made up of millwright work and erection equipment
i.e. cranes and other lifting devices:
CATEGORY
% VALUE
% RANGE
Major Equipment (includes freight) 22.9
Materials (Bulks / Engineered)
21.5
Field Labor – including
24.3
sub-contractors
Field In-directs / 11.7
General Conditions
Detailed Design / H O support /
13.9
Procurement / PM (includes
Owner Engineering). Includes
all necessary design deliverables
Construction Management
5.7
TOTAL
100.0
18 - 27
17 -26
19 - 29
9 - 13
10 - 18
4-8
100.0
Note: Typical delivery times associated with
the (INP) - Inquire / Negotiate & Purchase of Major Equipment items, with the recent up tick in the
refinery / process related construction and the recent
damage to the Gulf coast region. These delivery
times could move out by 4 – 12 weeks.
Note: The percentages shown below are appropriate to Inside Battery Limits (ISBL work)
– Outside Battery Limits (OSBL scope / work) is not
included in above values. Contingency is included in
above values. This front-end section of A - 4 will focus on the major equipment element which as can be
seen is in the order of 23% of the cost typical chemical facility, it can range anywhere from 18% - 27%.
Cost Estimators / Engineers, to be successful,
should be aware of the manufacturing “global” competition- big picture, they should have an appreciation of the changes that are happening in the Process
/ Manufacturing industries and the impact these
changes are having on costs and schedules, these issues include the following:
• Material and labor shortages and deliveries of
major equipment taking 20% -40% longer due to the
demand of these items in China and other S.E. Asian
markets:
• Price spikes related to material / commodities
demand and shortages (copper, steel, lumber, plywood, glass products, and oil related products).
• CAPEX projects moving to S.E. Asia: (this
trend is continuing).
• It takes almost 50% - 70% more time to build
a manufacturing facility or plant in S.E. Asia, than
it does in the USA, why? Productivity, bureaucratic
red tape, a lack of basic infrastructure, plus a bunch
of other issues that slows the EPC effort down.
Cost Estimators should become cognizant with
the issue and factors and what impact they will have
on projects they are involved with. As has been
pointed out before, to be successful today individuals working for chemical / process related organizations, both owner and EPC firms, should be able to
coalesce a number engineering and basic business
disciplines, this includes the following:
• To compile an accurate capital cost estimate in
a timely manner that conforms to the pre-established
company estimating standards.
• Have an appreciation of EPC construction related costs and how the global economy can impact
these costs.
• Have an awareness of different types of capital
cost estimates, and have an awareness of the differing project delivery methods, i.e. lump sump, GMP,
reimbursable contracts etc..
• Have a basic knowledge of chemistry / process manufacturing steps, i.e. (continuous or batch
process).
• Have an understanding of civil / structural /
construction methods / engineering considerations
and needs.
• Have a basic understanding of piping systems,
materials of construction, ISBL and OSBL issues.
• Have a basic knowledge of electrical engineering issues i.e. area classification.
• The same situation with mechanical engineering and instrumentation / controls systems.
• And last but not least, have general business
acumen / an understanding of the organizations business cycle / process- business economics, together
Copyright © 2017 Compass International, Inc.
110. | SECTION A4
Major Equipment INP
TYPICAL DELIVERY TIMES
MAJOR EQUIPMENT CATEGORY
INQUIRE / NEGOTIATE & PURCHASE (INP)
IN WEEKS AND DELIVERY TO SITE:
Boilers 250 HP and above
Columns / Towers with trays
Compressors Reciprocating
Ditto Centrifugal
Control valves
DCS – i.e. TDC 3000
Electric Motors (250 – 500 HP)
Furnace (cabin type)
Hammer mill
Heat Exchangers
Instrumentation devices
Pumps 200 GPM and above
Reactors – high pressure
Turbines
Tanks (Floating Head)
Transformers / Sub stations
Spheres
Vessels (Heavy wall)
20 - 36
20 - 40
20 - 40
24 - 40
10 - 16
16 - 36
16 - 26
20 - 35
26 - 44
16 - 32
8 - 16
8 - 20
25 - 45
25 - 36
12 - 24
12 - 36
12 - 36
20 - 40
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 nomenclature, (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 collective name for all these project types, the best way
forward is to refer to them all as Process – Manufacturing type projects. Some of the most prominent
sectors include (1) Petroleum / Gas Production /
Copyright © 2017 Compass International, Inc.
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 production) (5) Manufacturing (i.e. paint, toner, plastics
production, glass, paper manufacturing, detergents,
cement, man-made fibers and various automotive components) (6) R&D Facilities – Pilot Plants
– Animal Testing / Research Facilities etc. (7) Steel
Mills & Rolling Mills and (8) Automobile Production – 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, grinding, 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
SECTION A4 | 111.
facilities (perhaps 20 – 30% of the major equipment
could be considered rotating equipment).The majority of process equipment / major equipment can be
classified into three main categories (1) Rotating
equipment / electro–mechanical such as compressors, pumps, agitators and turbines and etc., major
equipment items that are driven primarily by an
electric motor(s) or steam turbines(s) etc, this type
of major equipment - rotating equipment - typically
are the most intricate and expensive to procure,
these major equipment type items are typically long
lead items (they could take anywhere from 2 – 12
months, or even longer to engineer and fabricate).
(2) Heat Transfer – Pressure Vessels (equipment
items with a fair amount of internal elements / components that need to be aligned and hooked-up to
fine tolerances) category of major equipment – typically consisting of heat exchangers, reactors, pressure vessels, columns / towers (with various trays).
This type of major equipment is used to raise or
lower temperatures (under pressure many times) during the chemical reaction phase of the manufacturing
step and (3) Static fixed / inert equipment; i.e., (bins,
storage tanks, hoppers, silo’s this could also include
dispensing and possibly packaging equipment etc.),
note some of these action in (3) are done by gravity
– gravity feed - on the whole. Many of the operations / functions carried out are supporting / supplementing, i.e., storing - rather than performing the
actual chemical / process reaction / manufacturing
step, other electro – mechanical items that fall within
the above (3) categories include utility equipment,
including all rotating equipment, adjustable speed
drives, pneumatics, mechanical / piping systems,
programmable logic controllers (PLC’s), instrumentation devices, servo and non-servo robotic systems,
electrical cable, conduits and fittings, motor control
centers (MCC), transformers, regular and explosion
proof conduit, panel boards enclosures and fittings,
push buttons and control stations, various power &
lighting systems, signaling devices / equipments,
various bushings, brake motors, variable speed
drives and a host of other systems too long to de-
scribe in detail all of these systems will need to be
estimated and accounted for in the estimating effort.
In order to play a significant part in the capital
cost estimating effort specific to of process / major
equipment the estimator / cost engineer should have
an understanding to the extent and details of the
required detail / engineering design and the equipment selection criteria. They should have more than
a basic awareness of some of the above three categories and following stated issues. Process plants
/ chemical plants / manufacturing facilities in the
last decade have become much more sophisticated
in how they are operated. With the use of highly
complex computerized control systems (PLC’s), together with dedicated control systems such as TDC
3000 and Delta V to name but two, these systems
are growing in their use and application, this trend
will continue in the next couple of decades. Historical cost data collected in the 1970’s and 1980’s is
no longer valid due to this specific situation, i.e. the
instrumentation account values have grown by as
much as 40% - 80% due to the use of these control
systems. The above three categories of major equipment are perhaps more often than not fabricated
and constructed out of Carbon Steel (research has
indicated that perhaps 40 – 70% of Process Equipment / Major Equipment is specified / called out to
be Carbon Steel) the remaining Process Equipment /
Major Equipment is made out of various costly types
of “exotic” metals and special alloys, such as Stainless Steel (304, 316, 304 L or 316 L), Monel, Aluminum, Inconnel, or Hastaloy to name but a few, as has
previously mentioned these major equipment items
usually take weeks or months to procure, engineer
/ design, fabricate and deliver / transport to job site
for subsequent erection and installation into the new
facility.
Cost items to consider when estimating major
equipment installation include: Pick up at lay down
area / temporary weather protection - tarpaulins,
clean up of any packing materials, use of come
along’s / chains & pullies, hardcore (hard standings)
/ temporary staging areas, aligning and leveling
Copyright © 2017 Compass International, Inc.
112. | SECTION A4
items, i.e. shims. Items that may need to be included
or excluded are: labor and material for foundations (concrete and excavation) and structural steel
/ brackets, core drilling and grouting of equipment
/ utility piping systems, and subsequent final hook
up, electrical cable, conduit and hookups, equipment
supports / brackets, H D bolts (anchors), sleeves and
jumpers / final balancing and adjusting finished systems, equipment and piping passivation and cleaning (pickling), equipment identification / stenciling
& subsequent tagging, commissioning / validation
activities, testing and NDT work, costs associated
with the use of construction rental or owned equipment, vendor start up assistance, barricades and
OSHA safety measures, factory witness testing and
any acceptance testing and operational tests, initial
chemical charging, cooling liquids, “grogg” type
chemicals and any scaffolding and hoisting needs.
Remember there could be a need for a full time hoist
operator on union projects.
Major Equipment (M.E.) / Chemical / Manufacturing facility major equipment is fundamentally
all the components that are utilized in the above
mentioned industries / business sectors, the (M.E.)
major equipment includes items such as the following together with the “judgment” percentage to set
the particular piece of major equipment described
below. A description of (A), (B) and (C) is described
below:
• Activators (B) / Agitators (A) / Air Dryers (B) /
Air Handlers (B)
• Bag house (B) / Blenders (B) / Bins (B) / Boilers (C)
• Centrifuges (B) / Chlorine Evaporators (B) /
Columns (B)
• Compressors (B) / Condensers (B) / Conveyors
(C) / Crushers (B) / Crystallizers (B)
• Dearators (B) / Drums (A) / Dryers (B)
• Emulsifiers (B) / Electrical Switch Gear (B) /
Evaporators (B) / Extruders (B)
• Filters (B) / Presses (B) / Furnaces (C)
• Hammer Mills (B) / Heaters (C) / Heat Exchangers (C)
Copyright © 2017 Compass International, Inc.
• Instrument and process control equipment (B)
• Reactors (C) / Pressure vessels (B) / Pumps &
Motors (B)
• Size reduction and separation equipment (B) /
Scrubbers (B) / Steam Turbines (C)
• Tanks (A) / Towers (B) / Valves (motor controlled) (B) / Vessels (B)
(A) = Large / static pieces of M.E. needing relatively minimal setting hours (and minimal internal
setting and aligning) 3% -7% of M.E. cost divided
by $50 / hour will provide a man hour budget for
setting the M.E.
(B) = Mid sized pieces of M.E. needing additional setting and requiring internal work and aligning
work hours 5% -10% of M.E. cost.
(C) = Complex pieces of M.E. requiring a fair
amount of assembly and setting / internal aligning
hours 7% -14% of M.E. cost will provide a man
hour budget for setting the M.E.
Example of a calculation to determine the cost
and percentage value of installing a Reactor: 20
ton Reactor (with internals 5 ton), total weight 25
ton Purchase price delivered to site = $98,345 Labor
and construction equipment to install (lift into it’s
final location and set and align internals, does not
include piping or E&I, excludes heavy lift crane.)
2005 Cost basis:
LABOR / OTHER
HOURS UNIT COST
Foreman
6
$55
Millwright
6
$52
Millwright
6
$52
Millwright
6
$52
Millwright
6
$52
Millwright
6
$52
Equipment Operator
6
$48
Chains / cables
1 day
$200
Miscellaneous l shims /
LS
$350
rags / grease
Flatbed trailer
6
$25
Tractor
6
$35
TOTAL
TOTAL
330
312
312
312
312
312
288
200
350
150
210
$3,088
$98,345 divided by $3,088 = 3.14% note if you
add the cost of the crane to this calculation the per-
SECTION A4 | 113.
centage would increase.
All major equipment items need foundations,
structural steel, platforms, piping, valves, insulation, painting, electrical services, etc.. The commodities / bulk materials required will be described
in the following sections. Typical break-downs of
the major cost elements cost models of a Chemical / Process Plant are indicated on the next couple
of pages, hopefully this data will give the reader an
appreciation of how large an element of a capital
cost estimate the major equipment really represents.
The hours for installing major equipment typically
include all the activities related to receiving, storing, lifting, moving to field location, setting, aligning, welding, bolting, leveling, grouting and testing.
Items or topics that the estimator / cost engineer
needs to consider and be aware of when considering the major equipment elements of the capital cost
estimate should include:
• Pricing basis, in-house estimate or based on
a quote (potential for scope creep / future pricing
increase due to situations where nozzles / baffles /
bracket locations are not fully known)
• Long lead time in the fabrication and delivery
of complicated pieces of major equipment
• Transportation costs and logistics (wide loads,
ocean freight or air freight)
• Vendor assistance in the start up of complex
items of equipment
• Insurance issues / Special QA / QC requirements
• Any performance / witness testing
• Cash flow / Special payment terms
• Warranty issues
• Required documentation O-M manuals etc /
Spare parts
• Possible currency considerations for items being imported
To determine the setting hours for these items of
major equipment mentioned above divide the setting
value by $50 / hour, cranes and other lifting devices
are not included in this method. If the total cost of
chemical / process plant is 100%, a characteristic
break-down of other major equipment specific items.
MAJOR EQUIPMENT / PROCESS EQUIPMENT
TYPICAL BREAKDOWN RANGE OF FREIGHT, M.E.
SETTING AND SPARE PARTS COST
• Freight Costs North American domestic 3% - 5
% of ex works value of M.E.:
• Freight Costs European domestic 3% - 5 % of
ex works value of M.E.:
Overseas freight typically 7% - 10% of Major
Equipment ex works value, consider import duties if
applicable. Setting M.E. in place, millwright related
activities (excludes civil, structural, piping, electrical
insulation etc) typically range between 3% and 14%
of the Major Equipment (ex-works value): Spare
parts (5% of rotating equipment and 1% - 2% of
heat transfer and static equipment) typically cost 1%
- 2.5% of the M.E. ex works value.
These values are the average of 10 small, medium and large facilities constructed in North
America in the last seven years and cover a wide
assortment of new / grassroots process chemical /
refinery plants. This values / percentages can vary
by as much as plus or minus 10% due to the specific
situation encountered. Revamps and upgrade projects do not fall into the above ranges. An additional
breakdown of major equipment / process equipment
and support systems is indicated below.
GENERAL BENCHMARKING / COST ESTIMATING
DATA
This section of this chapter encompasses general
data / “rules of thumb” for preparing, benchmarking and auditing all types of capital cost estimates
and project execution plans. The assortment of data
includes the following:
1. Summary and overall project capital cost
breakdown refer to Table A 3 1
2. Historical refinery / process related project
cost breakdowns ditto
3. Historical home office (EPC engineering
firm) man-hour breakdown
4. Bulk Material cost breakdown
Copyright © 2017 Compass International, Inc.
114. | SECTION A4
5. Construction man-hour and craft breakdowns hour, therefore we can calculate the total number of
6. Major Equipment Costs
engineering man-hours is as follows. Consideration
7. Construction in-directs breakdown and pershould be given to the fact that specific cost items
centage refer to A 3 1
such as CAD machines, computers etc, are included
8. Engineering benchmarking standards
in $3,109,000 value or are included in the $69 / hour
9. Various Conceptual construction installation
billing rate.
units
• Number of EPC H.O. man-hours = $3,109,000
10. Various Conceptual construction material
/ $69 = 45,058
unit costs
If we knew that the engineering effort was
This above mentioned data can offer guidance
needed to be complete in eight months, we could
in reviewing / auditing scopes of work, execution
determine the peak manpower level, or the approxiplans, home office staffing or field man-power
mate number of EPC home office staff required to
levels, reviewing claims and potential cost over-unget the work effort completed.
der runs. Representative cost and
• Number of engineering
man-hour breakdowns can be useful
man-hours = 45,058 / 8 Months
Utilizing historical benchin reviewing current estimates or
x 173 m h’s / month = 32.6 EPC
mark relationships, we can
considering and reflecting on hisH.O. staff (average)
establish a number of front
torical norms.
This number would need to
end reporting tools to allow
The listing indicated is an
peak at possibly 50 – 65 at the
management to make some
overall breakdown of project costs.
mid-point of the detailed design
key decisions.
The data is based on historical data
effort.
for “process” type projects built in
• The number of detailed
North America described earlier
design hours per M.E. items =
and shown on table A.3.1, on a sub-contractor basis, 45,058 / 86 M.E. items = 523 man-hours
during the period 1995-2011. When only a total
From the table A.3. (5), direct field labor costs
installed cost (T.I.C.) value is known, this breakare $8,142,000 the direct field cost hourly rate is $36
down can be valuable in providing overall basic data / hr.
points for a rapid evaluation of engineering, procure• Number of field man-hours = $8,142,000 / $36
ment and construction efforts that were / or will be
/ hour = 226,166 man hours
required. The cost breakdown covers the following
If we knew that the construction effort was
major categories.
planned too be completed in fourteen months, we
• Major Equipment
could determine the average manpower level, or the
• Materials (Bulks / Commodities)
approximate number of construction workers re• Labor Costs
quired too complete the work effort.
• Detailed Engineering and Procurement Activi• Number of field workers m h’ s =
ties (EPC Data)
226,166 / 14 months x 173 m h’ s / month = 93*
• Indirect Cost Elements
field workers
The capital project summary indicated in Sec• The number of field man-hours per M.E. item
tion A 3 Table (5) has an estimated overall T.I.C.
= 226,166 / 86 M.E. items = 2,630 man-hours
cost of $35.689 million. From Table (5). Outside
* This number could peak at 125 – 140 during
Engineering / Design firm is 10.23% or $3,109,000.
the mid point of the construction effort; this also exBy a further analysis / hypothesis assume that the
cludes field indirect support, which could be another
Outside Engineering all-in cost (billing rate) is $69 / 20 – 35% more hours.
Copyright © 2017 Compass International, Inc.
SECTION A4 | 115.
The value of Construction Management is
$1,170,000. If we divide this value by $65.50, which
is the all-in rate for Construction Management effort,
we would come up with 17,860 man-hours divided
by a 14 month construction effort at 170 man-hours
per month would indicate that the average number
of Construction management staff would average
out to be 7.5 individuals. Following on in the same
vain, the procurement effort is valued at $173,000.
The hourly rate for this activity is $59 per hour, the
procurement effort would typically take 5 months
to complete, so $59 divided into $173,000 = 2,930
hours divided by 5 months divided by 166 manhours per month would equal 3.5 procurement
personnel involved with the procurement / buy out
effort.
Utilizing historical benchmark relationships,
we can establish a number of front end reporting
tools to allow management to make some key decisions. The reports could include: A scope of work,
an appropriation budget (AFE estimate), front end
loading / schedules / project milestone schedules (30
– 90 – 180 day look ahead schedule), engineering,
procurement and construction work packages, field
labor needs, progress measurement / progress tools
and cash call / expenditure and commitment reports.
USA Productivity Factors (versus Gulf
Coast): The normal approach of comparing “process
/ refinery / manufacturing” construction productivity
is to compare various locations around the USA to a
known basis or benchmark of 1.00 or 100 for Texas
Gulf Coast (open shop labor working from say Mo-
Major Construction Activities
TYPICAL BENCHMARKING GUIDES FOR FUTURE ESTIMATING / AUDITING ESTIMATES
EXAMPLE
VALUES
Field labor union skilled worker
Ditto non union
For unskilled application multiply by
Construction Manager / Clerk of the Works
Demolition Rock excavation - loose / rippable, hours per CY / M3
Ditto needing jackhammers, hours per CY / M3
Machine excavation, hours per CY / M3
Hand excavation (Loose non stiff), hours per CY / M3
Ditto stiff / hard material, hours per CY / M3
Concrete foundations (inc. excavation, formwork / Rebar / installation etc.)
Hours per CY / M3
1” dia conduit
2” ditto
Bricks (800 – 1,000 per day is considered a good production rate)
Fabricate & erect C.S. piping (2”) hours
Fabricate & erect C.S. piping (6”) hours
Fabricate pipe offsite
Erect piping (2” and above) Average Fabricate & erect
4” diameter production weld (schedule 160)
6” ditto
Average cost per pound / kg to fabricate and erect piping system based on
Average cost $16,500 - $23,500 per ton, average $20,000 per ton
Structural steel erection hours
$58 - $95*/ Hour
$46 - $73 / Hour
0.75
$70 - $120 / Hour
5% - 35% of the cost of new work
1.0 - 2.5 CY & 1.3 – 3.3 M3
2.0 - 5.0 CY & 2.6 – 6.5 M3
0.2 - 0.4 CY & 0.26 – 0.5 M3
1.5 - 2.0 CY & 2.0 – 2.6 M3
2.25 - 3.25 CY & 2.9 – 4.25 M3
12 - 24 CY & 15.7 – 31 M3
0.12 - 0.14 / MH per LF & 0.39 - 0.45 M
0.14 - 0.16 / MH per LF & 0.45 - 0.52 M
500 - 750 per day
1.25 - 1.85 / L.F & 4.1 - 6.1 M.
2.4 - 3.0 / L.F & 7.87 - 9.84 M.
20 - 40 hours / ton
100 - 200 hours / ton
150 - 200 hours / ton
2.0 - 2.50 hrs:
2.75 - 3.5 hrs:
$10.00 per pound and $22.00 kg
8 - 25 / ton
Copyright © 2017 Compass International, Inc.
116. | SECTION A4
STATE
OPEN SHOP /
NON-UNION
Alabama
1.00
Alaska
1.10 – 1.15
Arizona (Phoenix/Tucson) 1.00
Arizona
1.00
Arkansas
1.00
California 1.10
(LA / Long Beach /
SF / SD / SJ)
California
1.05
Colorado (Denver)
1.00 - 1.10
Colorado
1.00
Connecticut
1.15
Delaware
1.10
Florida (Jacksonville /
1.00 – 1.10
Miami / Orlando / St P )
Florida
1.00
Georgia (Atlanta)
1.00 - 1.10
Georgia
1.00
Hawaii
1.10 - 1.15
Idaho
1.05
Illinois (Chicago)
1.00 - 1.15
Illinois
1.05
Indiana
1.05
Iowa
1.05
Kansas
1.05
Kentucky
1.05
Louisiana
1.00
Maine
1.05 - 1.15
Maryland (Baltimore)
1.05 – 1.10
Maryland
1.00 – 1.05
Massachusetts (Boston) 1.10 - 1.15
Massachusetts
1.00 – 1.10
Michigan (Detroit)
1.05 - 1.10
Michigan
1.05
Minnesota 1.05 - 1.10
(Minneapolis–St Paul)
Minnesota
1.05
Mississippi
0.90 - 1.00
Missouri (St Louis)
1.05 – 1.10
Missouri
1.00 – 1.05
Montana
1.05 - 1.10
Nebraska
1.05
Nevada (LV / Reno)
1.05
Nevada
1.00 – 1.05
New Hampshire
1.05 - 1.10
UNION
STATE
UNION
1.10 - 1.15
1.25 – 1.35
1.10 - 1.15
1.10
1.15
1.20 – 1.30
OPEN SHOP /
NON-UNION
New Jersey 1.15
1.20 - 1.30
New Jersey
1.10
1.10 - 1.20
New Mexico
1.05
1.15
New York City
1.10 - 1.15
1.30 – 1.40
New York
1.05 - 1.10
1.10 - 1.20
North Carolina
1.05
1.15
North Dakota
1.05
1.15
Ohio (Cleveland)
1.05 – 1.10
1.15 – 1.20
Ohio
1.05
1.10 - 1.15
Oklahoma
1.05
1.15
Oregon
1.05
1.15
Pennsylvania 1.10 - 1.15
1.20 – 1.30
Pennsylvania
1.05 - 1.10
1.10 - 1.20
Puerto Rico
1.60 – 1.90
1.50 – 2.00
Rhode Island
1.05
1.15
South Carolina
0.90 - 1.00
1.05 - 1.10
South Dakota
1.05
1.15
Tennessee
1.00 - 1.05
1.10 - 1.15
Texas (Dallas / Houston)
1.05 - 1.10
1.10 - 1.20
Texas (Gulf Coast) -
1.10 - 1.20
1.10 - 1.15
1.05 - 1.10
1.20 - 1.30
1.20
1.15 - 1.20
1.10
1.10 - 1.20
1.10
1.30
1.25
1.20 – 1.30
1.10 - 1.15
1.10 - 1.15
1.10 - 1.15
1.10 - 1.15
1.10 – 1.15
1.10 – 1.15
1.10 - 1.25
1.10 - 1.25
1.10 – 1.15
1.20 – 1.30
1.10 – 1.15
1.20 - 1.30
1.10 - 1.20
1.10 - 1.20
1.10 - 1.15
1.10 - 1.15
1.10 – 1.20
1.05 – 1.15
1.10 - 1.20
1.10 - 1.15
1.15
1.05 – 1.10
1.10 - 1.20
Copyright © 2017 Compass International, Inc.
(Newark / Northern)
(Philadelphia / Pittsburgh)
1.00 1.10 – 1.15
Base Case this includes
(typically all
Gulfport, Baton Rouge, work is
New Iberia, Lake Charles,
completed on
Beaumont, Port Arthur, open shop
Baytown, Texas City and
basis)
Victoria: (Note: in certain
cases i.e. large projects
with a lot of repeat /
similar work activities:
productivity could be
0.90 – 1.00 say an average
of 0.95)
Utah
1.05
1.10 - 1.15
Vermont
1.05
1.15
Virginia (Washington D.C.) 1.10 - 1.15
1.20 - 1.30
Virginia
1.05
1.15
Washington
1.05
1.15
West Virginia
1.00 - 1.05
1.00 - 1.15
Wisconsin
1.05
1.15
Wyoming
1.05
1.15
SECTION A4 | 117.
bile, AL in the north and south to say Corpus Christi, TX, - because there is so much historical cost data
that has been collected over the last 20 – 30 years,
the term Gulf Coast productivity is well known and
understood term in the construction industry): See
chart previous page.
Engineering, Procurement and Construction
(EPC) Benchmarking Data:The subsequent dollar and man-hour values are typical benchmarking
guides for future estimating / auditing estimates.
This data applies to mid sized “process / chemical
related” projects executed in the last 10 years specific to North American applications.See chart previous
pages.
* In major cities such as New York, Chicago
Philadelphia and Los Angeles etc this union hourly
rate ranges between $89 and $116.
ENGINEERING / HOME OFFICE COSTS / DATA:
See chart at right. For additional data specific to
installation man-hour units refer to later sections.
FUNCTION / GENERAL DATA
COST / MAN-HOUR
UNITS
Project Manager
Architect
Civil Engineer
Home office engineer
Estimator
Designer
Man-hours per item of major equipment
Man hours per PFD
Man-hours per P. & I.D:
Man-hours per plot plan / G. A.
Man hours per ISO.
CAD machine bill out rate
$75 - $150 / hour
$75 – $150 / hour
$70 - $135 / hour
$70 - $135 / hour
$70 - $130 / hour
$55 - $90 / hour
600 –1200 (aver 700)
40 - 100
250 -500
100 –200
4/6
$25 - $60 / hour
PROCUREMENT / CONTRACT / PROJECT CONTROL
Procurement / Contracts Engineer $60 - $100 / hour
Project Control Engineer
$70 - $110 / hour
Man-hours per material inquiry / 4 - 12
requisition
Man-hours per purchase order
30 - 50
Man-hours per contract
60 –100
Inspection of M.E. item
4 – 8 / hours
Estimate Assessment Sheet / Ratio Analysis
DATA APPLIES TO NEW / GREEN FIELD CONSTRUCTION APPLICATIONS
N0.
RATIOS & PERCENTAGES
1
Site Works as a percentage of M.E. (I.S.B.L)
2
Buildings / Structures as a percentage of M.E. (I.S.B.L)
3
Piping material as percent M.E. (I.S.B.L)
4
Labor as percent of T.I.C.
5
Piping labor as percent of pipe material
6
Indirect cost as percent D.L.
7
Piping labor as percent D.L.
8
Typical M.E. Multiplier to T.I.C.
9
Instrument material as percent M.E. (I.S.B.L.)
10
Electrical work as a percentage of M.E. (I.S.B.L)
11
Electrical labor as a percentage of M.E. (I.S.B.L)
12
Insulation work as a percentage of M.E. (I.S.B.L)
13
Field Establishment as a percentage of field in-directs
14
Small tools / consumables as percent of D.L.
15
Scaffolding as percent of D.L.
16
Spare Parts
NORMAL RANGE
2 – 5%
5 – 12%
20-50%
20-30%
40-125%
70-125%
10-55%
3.0 – 5.50 (Typical average 4.00) Refer to Benchmark Data.
15-20%
7 – 12%
10 – 20%
3 – 5%
4 – 9%
0.15 – 2.25%
0.5 – 2%
5% to 7.5% of major equipment on
complex process facilities
Copyright © 2017 Compass International, Inc.
118. | SECTION A4
N0.
RATIOS & PERCENTAGES
CONTINUED
17
Spare parts as percent of D.L.
18
Freight
19
Operator Training
20
Operator Training 21
Royalties as a percentage of M.E. (I.S.B.L)
22
Vendor assistance as percent of D.L.
23
Home office engineering as percent T.I.C.
24
Field supervision as percent D.L.
25
Construction equipment as percent D.L.
26
Construction fee as percent D.L.
27
Construction fee as percent T.I.C.
28
CM cost as percentage of T.I.C.
29
Off sites, needs to be considered as a separate issue.
30
Overtime / shift work as a percentage of D.L
31
Construction Management Fee 32
Fabricate pipe offsite
33
Erect piping (2” and above)
34
Average cost per ton to fabricate and erect piping system ESTIMATE ASSESSMENT SHEET /
RATIO ANALYSIS
The capital cost estimate review sheet (see chart
above and on the previous page) sets the ranges minimum and maximum for various activities, this data
can be used as a data source to calibrate / compare
specific key elements of a process related project,
this data applies to new / green field construction
applications.
• (I.S.B.L.) inside battery limits (M.E.) major
equipment (T.I.C.) total installed cost
• (D.L.) direct labor
The following data / tables are a variety of man
hour production units for various construction trades
that can assist an estimator / cost engineer in compiling both conceptual and detailed cost estimates, for
more detailed estimating units refer to Section B-4.
Copyright © 2017 Compass International, Inc.
NORMAL RANGE
0.1 – 1.5%
3% to 5% of major equipment cost.
0.5% to 2.5% of major equipment
2.5% to 5% of major equipment on
complex process facilities
0.25 – 3.5%
0.1 –0 25%
8-17%
5-15%
12-20%
3 - 9%
1.25 - 4.0%
5 - 7.5%
If limited / or no scope or data is available use 15-70% of the
(I.S.B.L.) value.
If multiplier is smaller / or greater than 3.0 – 5.50 a more in depth review should take place:
0 – 10%
2 – 6% on pass through value:
20 – 40 hours / ton
100 – 200 hours / ton
Average cost $16,500 - $23,500 per ton, average $20,000 per ton
FRONT END / SITE ISSUES:
Checklist of Front End / Division 1 items that need
to evaluated and included in Cost estimate:
Check-list of Front End Estimating / Site
Management Issues * (budgets that need to be
established)
1. Front End Miscellaneous Costing Studies
2. Licensor initial PFD / concept report
3. Completion of PCA report / outside consultant
4. Completion of Front End Engineering Report
5. Compile AFE funding request (estimate); obtain full or partial approval to proceed with project
6. Mobilize to EPC / detail design office
7. Mobilize to site
8. Obtain permits (local and state)
9. Asbestos abatement / removal
SECTION A4 | 119.
10. Lead paint removal
(Soils, concrete, welding, and NDT).
11. Removal of contaminated / hazardous soil
33. Provide adequate builders all risk / sub guard
material
/ project wrap-up insurance.
12. Subsequent disposal of hazardous soil with
34 Provide site office furniture and site comnecessary documentation
puter network.
13. Shutdowns decommission / mothball obso35. Provide site office supplies and consumables.
lete facilities. (Remove any working M.E. to other
36. Provide commissioning / start-up materials /
company facilities)
initial fill.
14. Removal of underground utilities / founda37. Provide necessary spares parts.
tions / obstructions
38. Provide I/C programming.
15. Tank / piping sludge disposal
39. Provide vendor assistance services.
16. Tank / piping cleaning activities
40. Obtain necessary O/M manuals and warran17. Shutdown and drain all process / utility piptees.
ing systems.
41. Obtain plant assistance for commissioning
18. Remove insulation, prepare for hot-taps and
and start-up sequencing.
complete temporary tie-ins.
* Excludes Engineering / De19. Develop construction equiptailed design and Procurement
ment requirements and associated
Demolition / Revamp /
operating and maintenance costs.
DEMOLITION / REVAMP /
Upgrade work is difficult
20. Develop Division 1 / PreUPGRADE WORK
and an intricate item to
liminaries budget. (Note: some of
Demolition / Revamp / Upestimate the cost of
the items are listed below).
grade Factors and Main Points
21. Install temporary roads and
to Consider:
subsequent maintenance.
1.
Quality of work, low22. Remove any standing water / de-water any
end specifications, high or medium specifications
foundations and any snow removal, together with
2. Productivity: low, medium or high output
protection of completed work.
3. Labor and construction equipment limita23. Provide any temporary utilities (water, gas
tions due to small / confined work areas, considerand electricity).
able amount of manual / handwork could be required
24. Establish concrete batching facility if re4. Dust / debris and noise protection / tempoquired.
rary screens
25. Provide and maintain site offices, trailer, and
5. Material handling logistics / storage off-loadwarehousing facilities.
ing limitations
26. Provide brass ally / construction parking lots
6. Temporary bracing and support of future and
/ lay down storage areas.
present work areas.
27 Provide construction management staff and
7. Protection of existing buildings / facilities
trailer facilities.
and services during demolition activities
28. Provide medical staff and trailer facilities.
8. Overtime, shift work and possible weekend
29. Provide safety staff and trailer facilities.
work schedule
30. Provide warehousing staff and trailer facili9. Cutting and making good to current conties.
struction features / materials and equipment
31. Provide security.
10. Removal of hazardous materials, contaminat32. Provide testing staff and trailer facilities.
ed ground, PCB’s,: lead paint and asbestos materi-
Copyright © 2017 Compass International, Inc.
120. | SECTION A4
als, toxic materials
11. Weather protection, rain, snow, wind etc.
12. Phasing issues, single, various or multiple
13. Small quantities of material, bricks, pipe
and steel are typically more expensive than standard
shipments
14. Work inside ongoing operations such as offices, production areas, stores, factories and process
facilities, requiring special work permits / approvals
Demolition / Revamp / Upgrade work is difficult
and an intricate item to estimate the cost of, time and
again the best estimates / efforts values are attained
by having either a cost estimator or qualified field
personnel review the demolition / revamp / upgrade
scope of work at the site and have them produce a
take off listing of items / quantities to be demolished
/ revamped / upgraded, utilize site visits, sketches,
mark up drawings, photographs and video’s where
possible. Credit values / income from scrap / salvage
of demolished equipment / materials may appreciably lessen the demolition costs (on some occasions it
may be cost effective to demolish a facility). This is
the case if sizeable amounts of alloy metals (stainless steel 304 and 316, brass, copper), carbon steel,
cast iron, sheet metal, aluminum, copper roofing /
cable, structural steel, electrical equipment and various piping materials are part of the scope of work
to be demolished. The hazardous material aspects /
environmental facets of demolition / revamp work
should be considered, lead paint, toxic chemicals,
PCB’s, asbestos, contaminated soil and on site or off
site removal dumping / disposal costs for disposal of
demolished / scrap material must also be considered
and estimated, credit values also should be evaluated.
DEMOLITION / REVAMP / UPGRADE OF SITE
WORK / CONCRETE / BUILDINGS:
• Be aware if demolition is in a restricted area,
near in use highways (what about traffic control
measures), pedestrian traffic or close to a processing / manufacturing activity operating machinery
/ equipment, will blowers and venting equipment
Copyright © 2017 Compass International, Inc.
be required, what about safety measures (Scott air
packs special safety measures)? Establish if it is going to be a manual operation (sledge hammers and
pick axes) or can a headache ball / arrow breaker
be used, what other means of demolition will be
utilized, jackhammers, saw cutting, explosives D8
ripper? Compile detailed scope of work / listing of
facilities, roads, paving, underground rock, utilities,
underground services etc. that is to be demolished /
or to be upgraded. Establish and measure the quantity in items, cubic yards or square yards of concrete
for slabs on grade, elevated floor areas, pile caps,
spread footings, grade beams and isolated foundations to be demolished or upgraded.
• Establish the quantities of demolition / revamp
work, i.e., square feet, cubic yards, tons, lineal feet
etc. and the disposal methods, truck, railcar or barge,
etc.. Consider disposal methods / tipping fees / disposal distance, hazardous materials, specialized sub
contractors and construction equipment and any federal or state required documentation. Determine if
the concrete is reinforced or non-reinforced (plain),
is it on grade or elevated, what method will be used
to cut or burn through this rebar?
• Resolve if temporary noise / dust barriers,
visqueen screens or enclosures, air locks are considered necessary to be erected during demo / upgrade.
Make a note of if needle and pinning or shoring is
needed to support demolition / revamp work. Scope
out and make a checklist and or complete take off
description of all the facility / building items of
demolition / removal / upgrade, i.e., west wing, top
floor, walls, slab on grade, floors, roofing systems,
doors, windows, fixtures, roofing (lead or copper)
etc.. Scope out and establish if any demolished materials can be refurbished / reused; i.e., stone, bricks,
copper flashing, flooring systems / tiles etc.. Measure quantities of wall systems, exterior closure and
roofing systems.
SECTION A4 | 121.
DEMOLITION / REVAMP / UPGRADE OF STRUCTURAL STEEL / DUCTWORK / MISCELLANEOUS
METALS:
• Ascertain if any of the steel is fireproofed /
sprayed on, does this need to be removed, is any
asbestos material contained within the fireproofing
material, what is required to encapsulate and remove
this material? Resolve if any demolished materials;
i.e., structural steel, handrails, platform features etc.
can be salvaged and recycled. Determine pounds of
ductwork to be removed or revamped, can any main
headers be reused, what about the insulation material?
• Determine the quantity of structural steel in
pounds / tons, metal decking (SF), floor joists, platforms and grating in square feet and ladders / handrails in linear feet (LF). Find out disposal methods,
salvage costs from third party vendors / haulers.
Can any existing material be upgraded?
DEMOLITION / REVAMP OF MAJOR EQUIPMENT
/ MECHANICAL EQUIPMENT / PIPING SYSTEMS /
ELECTRICAL / INSTRUMENTATION / FIRE PROTECTION / PAINTING / INSULATION:
• Establish quantity, dimensions, lifting weight,
number of pieces, and location within the plant of
major equipment, i.e., agitators, blowers, heaters,
compressors, drums, vessels, columns / towers, heat
exchangers, etc. Determine if any special cranes /
lifting equipment is required. Document if existing
equipment is to be reused. Does refurbishment of
major equipment need to be estimated / established.
Confirm place of disposal of major equipment. Determine if any major equipment will be refurbished
and or reused or sold.
• Resolve if any special passivation / cleaning
needs of major equipment / mechanical equipment,
in particular towers, trays, pressure vessels, tanks or
silos. Estimate for any extraordinary dumping necessities of hazardous materials. Estimate and allow
for testing of asbestos in fireproofing and insulation
materials, estimate for remedial action if required.
Resolve if piping systems are to be demolished, or
left in place, or reused. When demolition is needed,
measure length (LF) by diameter / spec / wall thickness of pipe to be removed. Can the demolished
pipe / fittings / valves be re-used or sold as salvage?
Do piping systems need to be passivated prior to
removal? Estimate and allow for testing of asbestos / lead paint on the pipe and in the insulation if
encountered. Describe removal and disposal methods. Scope out and perform take-off and establish
number of items or length / dimensions, number of
pieces, weight and location in plant of sub stations,
switchgear, transformers panels, motor control centers, motors etc that are to removed and confirm if
cables, conduit, and cable trays are to be demolished
or left in place (determine if local building code officials allow this situation) or are to be refurbished
and or reused. Establish which equipment / systems
that can be reused. Establish if sub stations / transformers, etc., contain chemicals such as glycol /
PCB’s, acids, cooling mediums, hazardous or toxic
materials. Quantify and estimate the cost of removal,
refurbishment, reuse or sale / salvage or electrical
equipment and or materials. Quantify fire protection
/ sprinkler demolition / upgrade requirements, count
number of heads (how many will be removed, how
many will stay). Can any of the systems be reused?
Do the existing systems need to be refurbished?
What about latest building codes? The same situation needs to be completed for the painting and insulation systems, disposal and associated costs need to
be established. Resolve if control wiring, mounting
brackets, are to be reused, refurbished, demolished
or left in place, can any existing material be reused.
Buildings:
• Estimate the building on a square foot basis and
then multiply by 0.25 for an approximate estimate
value.
• $5.00 - $8.00 per SF for concrete / masonry buildings:
Walks and Driveways:
Removal and transportation of asphalt or concrete
Copyright © 2017 Compass International, Inc.
122. | SECTION A4
paving or sidewalks: This is based on loading and
hauling to edge of site. Multiply cost of new installation of similar quality by a factor of 0.35.
fixtures, equipment, instrumentation, etc., estimate
as new work and multiply by 0.40. To dismantle and
re-install multiply man-hours by 1.4:
Concrete:
To remove and load concrete foundations and walls
4 - 6 MH per CY Slabs of Grade1.5 – 2.5 MH per
CY.
Trees and Shrubs (softwood):
Remove trees / stumps and haul off surplus aver
1-2.5 miles:
Structural Steel:
To dismantle and remove Structural Steel: Determine the hours as if it was new work and multiply
by a factor of 0.4. Alternatively use 2.50 – 7.50
hours per ton to demolish structural steel.
Piping Systems:
To dismantle and remove piping use multiply by a
factor 0.40 x cost of erection. The factor does not
consider any salvage, if pipe / valves / fittings are
to be salvaged. Alternatively 0.2 MH per 100 lb. of
material to be dismantled is reasonable approach. On
the other hand use the following data to arrive at a
man-hour budget:
PIPE DIAMETER
MAN HOUR PER LF
2” and below
2” – 6”
6” – 12”
0.15 – 0.25
0.25 – 0.40
0.40 –0.75
Electrical / Instrumentation:
To dismantle and remove electrical conduit, wiring,
DIAMETER
HEIGHT MH EACH STUMP REMOVAL
OF TREE
BY HAND
0” to 9”
9” to 12”
12” to 18”
18” to 24”
10’ to 20’
20’ to 30’
30’ to 40’
over 50’
4
8
10
16
8/10 MH
10/12 MH
12/14 MH
16/18 MH
If excavation machine, bulldozer or backhoe is
used to push over trees for stacking and burning,
multiply MH ‘s indicated above by 0.33
Trees and Shrubs (hardwood):
Remove trees / stumps and haul off surplus aver
1-2.5 miles:
DIAMETER
HEIGHT MH EACH STUMP REMOVAL
OF TREE
BY BLASTING
0” to 9”
9” to 12”
12” to 18”
18” to 24”
10’ to 20’
20’ to 30’
30’ to 40’
over 50’
6
10
12
24
1 MH
1.5 MH
2 MH
2.5 MH
Clearing and Grubbing Shrubs:
This item varies as to density of brush of debris to
be cleared and type of equipment to be used. Previous experience, based on sub-contracting, this work
Excavating by Hand Unites, etc.
EXCLUDES PLANKING & STRUTTING
MAN HOURS PER 10 CUBIC YARD’S
NORMAL SOIL HEAVY CLAY & SOIL
Loading trucks by hand
Trenches to 5’0” deep
Foundations to 10’0” deep (1 lift)
Foundations to 15’0” deep (2 lifts)
Foundations to 20’0” deep (3 lifts
Backfill by hand, no tamping 95% compaction
Spread loose material by hand
Hand tamping
Copyright © 2017 Compass International, Inc.
13.5
16.5
21.0
42.0
64.0
5.0
3.0
9.0
SOLID CLAY OR SOLID EARTH
22.5
24.5
23.5
46.5
68.5
6.5
3.5
11.0
25.5
27.8
26.9
51.7
71.5
7.2
3.9
12.3
SECTION A4 | 123.
indicates values as follows:
• Light Work: $95 to $450 per Acre
• Medium Work: $375 to $750 per Acre
• Heavy Work: $600 to $1,750 per Acre
Drilling for rock anchors: 0.05 hours / LF
DRILL & BLAST ROCK
(LOADING WITH FRONT END LOADER)
0 – 1,000 CY
1,000 CY and above
4.10 man hours / 10 CY
3.33 man hours / 10 CY
Hand Excavation
• Excavation 2.0 man-hours per CY / 2.62 man-hours
per M3
• Backfill 0.6 CY man-hours per CY / 0.80 man-hours
per M3
these units. Hand place labor units contain, placing by
hand with shovels, loose earth in hand-throwing distance
of stockpiles. The transfer of pre-stockpiled loose earth
over an area: Stone, sand and spreading units take account
of, hand placing, with shovels, these materials from located stockpiles. Clamshell labor units include the placement of materials from accessible stockpiles. Tamping by
hand and pneumatic tamping units include the compacting
of pre-spread materials in 6” layer lifts. Man-hours above
for this type work are shown as laborer hours. If air tool
operators are needed for this work substitute / alternate
this effort for above laborer hours. For quantities over
1,500 CY multiply above units by 0.80.
RIP RAP
• Placed by hand: 17.5 man hours / 10 CY
• Placed by machine: 11.5 man hours / 10 CY
OFF LOADING MATERIALS BY HAND:
• Sand from trucks: 0.65 Man-hours per CY
LOADING EXCAVATED MATERIAL FROM
• Gravel / stone from trucks: 0.70 Man-hours per CY STOCKPILE: Front end Loader / Backhoe 100 HP
• Crushed rock / crusher run from trucks: 0.85
Man-hours per CY
WORK HOURS PER (10) CY
• Cement (sacked) from trucks: 0.10 Man-hours per
ITEM OPERATOR MAN-HOURS
TOTAL
sack
BANKSMAN / HELPER
• Bricks per 1,000: 2.50 Man-hours per 1,000
2.0 CY bucket
0.10
0.10
0.20
1.5 CY bucket
1.0 CY bucket
0.5 CY bucket
0.25 CY bucket
MACHINE & HAND BACKFILL:
Typical for Sand, Loose Soil and Stone / Gravel
Dozer 200 HP / Backhoe 100 HP
WORK HOURS PER 10 CUBIC YARDS
ITEM
UNIT
TOTAL
Bulldoze Loose Material
Bulldoze Dense Material
Compaction by Hand
Pneumatic Compaction
1.50 CY bucket
1.00 CY bucket
0.50 CY bucket
0.25 C.Y. bucket
Hand Place and Tamp
10 CY
10 CY
10 CY
10 CY
10 CY
10 CY
10 CY
10 CY
10 CY
0.33
0.55
7.50
3.00
0.10
0.28
0.34
0.50
4.50
NOTES: Man-hours do not take into consideration
trucking or fine grading work; refer to pertinent tables for
0.15
0.20
0.35
0.40
0.15
0.20
0.35
0.40
0.30
0.40
0.70
0.80
Labor man-hour units are for loading excavated
material from stockpile onto trucks for transportation onsite or offsite. For quantities over 500 CY
multiply above units by a factor of 0.85.
SITE GRADING:
WORK HOURS PER (10) CY
ITEM & DISTANCE
MAN-HOURS OPERATOR
9 -11 CY Capacity (Cat 613 c)
500 feet (load & discharge into stockpile)
1,000 feet ditto
1,500 feet ditto
2,500 feet ditto
5,000 feet ditto
0.08
0.10
0.14
0.20
0.30
Copyright © 2017 Compass International, Inc.
124. | SECTION A4
Work hours include necessary labor for operating and maintaining equipment for the above type of
work. For quantities over 5,000 C.Y. multiply above
values by 0.85
HAND TRIM TRENCH BOTTOM
Work hours are typical for ten (10) linear feet of
trench. Work hours include small amount of hand
trimming. Work hours do not include trench excavation or installation of pipes. For quantities over
1,000 LF multiply below units by 0.85.
WORK HOURS PER (10) L.F.:
ITEM
MAN-HOURS LABORERS
Trim trench bottom for piping systems /
with self propelled vibrator roller
4” to 10” Pipe
12” to 18” Pipe
20” to 36” Pipe
36” and greater
0.28
0.58
0.75
1.00
COMPACT / TAMP/ FINE GRADE
IMPORTED FILL
WORK HOURS PER 10 SY
ITEM
UNIT
TOTAL
Motor grader 911
Sheep’s foot / spiker
Vibrating roller (self propelled)
Fine Grade by hand
Fine Grade by machine
10 SY
10 SY
10 SY
10 SY
10 SY
0.30
0.65
0.35
0.20
0.15
Work hours include labor as required for the
above-defined items. For quantities over 1,500 SY
multiply above units by 0.90.
COMPACTION OF BACKFILL AROUND
ISOLATED FOUNDATIONS
(to 95% of maximum density per 10 CY)
• By hand: 4.55 hours / 10 CY
• With vibratory compactor: 1.15 hours / 10
CY
Copyright © 2017 Compass International, Inc.
BACK HOE EXCAVATION
Work hours per 10 C.Y. (Cat 225 / 235)
Work hours include excavating and loading onto
trucks. Work hours excluding blasting and transportation. Work hours are based on excavations not
exceeding 5 foot in depth. If excavation is greater
than 5 foot above units need to be multiplied by
1.20. For quantities over 1,500 C.Y. multiply below
units by 0.90.
SOIL TYPE
ITEM
TOTAL
Light
Medium
Heavy
Rock (Rippable)
Load with F.E. Loader
1.00 CY bucket
0.75 CY bucket
0.50 CY bucket
0.25 CY bucket
10.75 CY bucket
0.50 CY bucket
0.25 CY bucket
1.00 CY bucket
0.75 CY bucket
0.50 CY bucket
0.25 CY bucket
1.00 CY bucket
0.75 CY bucket
0.50 CY bucket
0.25 CY bucket
1.50 – 2.50 bucket
0.33
0.39
0.57
0.66
0.78
1.11
1.22
0.93
1.02
1.14
1.20
1.38
1.47
1.98
2.10
0.52
Cost per CY for excavating trench n / e 10’ deep
(average 7’ deep) with 1 CY bucket (daily output
of backhoe = 400 CY / day) assume truck travels 1
mile to an on-site location and off-loads materials in
heaps, spreading and leveling transported material
not included in unit price, no tipping fee’s required.
(2017 Cost Basis :)
EQUIPMENT / LABOR
HOURS & RATE
$ COST
Hydraulic backhoe
1 CY bucket
Operator
Truck 10 CY / 15 Ton
Driver
8 hours x $124
992
8 hours x $66
8 hours x $84
8 hours x $63
S / T
+ O / H & Profit 27.5%
TOTAL
Cost per CY / 400 CY
528
672
504
2,696
741
3,437
8.59
SECTION A4 | 125.
Excavation Equipment Production Rates
DAILY OUTPUT PER 8 HOUR DAY
TYPE OF EXCAVATION
EQUIPMENT / BUCKET SIZE
0.25 CY 0.50 CY 1.0 CY 1.50 CY 2.0 CY 2.5 CY 3.0 CY 7.5 CY 10 CY
Front end loader (tracked)
500
600
750
1,000 1,250 1,500
Ditto with wheels
600
750
1,000
1,500 1,750 2,000
Bulldozer
500
1,000 1,500
2,500 3,000 3,500
Bob Cat
100
Hydraulic Backhoe 250
400
750
1,200 1,500 N/A
Motorized Scraper D8
N/A
N/A
N/A
N/A
N/A
N/A
(cut & fill 35 cycles per hour)
Dragline 75 ton crane with 70 100’
75
100
150
250
400
500
boom (with clamshell or open bucket)
Excludes; banks man, supervision and maintenance
Excavation Equipment Production Rates (daily
output per 8 hour day)
Note: The above production rates could increase
by 50% if construction site is open and not congested and if excavation is completed in spring or
summer months.
• Multiply the above by 1.35 – 1.55 for rip able
rock.
• Multiply the above by 1.15 for dense / hard
soil.
• Multiply the above by 0.85 for sand / loose
material
Equipment cost per day. (2017 Cost Basis :)
• Front End loader 2 CY (tracked) $924 / Day
(w/o operator)
• Ditto with wheels 2 CY $885 / Day (w/o operator)
• Bulldozer $1,035 / Day 2 CY (w/o operator)
• Bob Cat $343 / Day 0.25 CY (w/o operator)
• Hydraulic Backhoe $1,100 / Day (w/o operator)
• Motorized Scraper D8 10 CY $2,065 / Day
(w/o operator)
• Dragline 75 ton crane with 70 100’ boom
$1,890 / Day (w/o operator)
Excludes: banks man, supervision and maintenance, mobilization and de-mobilization:
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2,500
N/A
3,500
N/A
N/A
HARDCORE / STONE ROAD SUB-BASE
4” thick (100 mm)
6” ditto (150 mm)
8” ditto (200 mm)
$6.90 / SY
$8.15/ SY
$9.07 / SY
$8.28 / M2
$9.78 / M2
$10.88 / M2
PAVING – BITUMEN BASED TOPPING
1” thick (25 mm)
2” ditto (50 mm)
3” ditto (75 mm)
$9.30 / SY
$16.00 / SY
$22.75 / SY
$11.16 / M2
$19.20 / M2
$27.30 / M2
APPROXIMATE WEIGHTS OF MATERIALS PER CY
MATERIAL
NATURAL / LOOSE
CONDITION LBS.
COMPACTED
TO 90 – 95%
LBS.
Cement
Concrete (1:2:4)
Earth (Bank)
Sand
Stone ½”
Gravel
Cement Mortar
3,030
3,615
2,825
3,140
3,135
N/A
3,696 (mixed)
2,565
2,737
2,425
2,820
2,745
3,136
N/A
The following table is the hourly output for
Dragline operations. For quantities over 5,000 C.Y.
multiply units by 0.85 (set up and dismantle of crane
not included in following production rates).
Underpinning / Excavation of existing
Foundations: (Including timbering)
12.50 – 17.50 man hours / CY
Copyright © 2017 Compass International, Inc.
126. | SECTION A4
Hourly Output for Dragline Operations
CY PER HOUR: 90° SWING – OUTPUT PER HOUR
SOIL TYPE
Drag line Bucket Capacity In C.Y.
Light Soil or Loam Material
Sand Stone or Gravel
In place Earth
Hard Clay Rock drilled & blasted
(Fragmented)
CY PER HOUR
1.0
140
135
120
100
60
1.25
185
160
150
120
85
1.50
205
195
185
150
95
1.75
245
215
200
170
120
2.0
260
235
220
175
125
2.50
310
295
245
210
155
3.0
340
320
285
250
195
3.5
360
360
325
295
210
4.0
400
420
355
325
225
5.0
450
510
420
390
310
UNIT
$ PER LF (LOW) $ PER LF (HIGH) UNIT
$ PER M (LOW) $ PER M (HIGH)
LF
26.20
34.00
M
85.94
111.50
LF
LF
32.00
36.40
39.50
44.85
M
M
104.95
119.39
129.55
147.11
LF
39.90
49.80
M
130.87
163.34
Concrete Piles
DATA TABLE
PILE TYPE
Pre-cast Concrete Piles up to 50’
in depth 12” diameter
Ditto 18” diameter
Drilled Concrete piles up to 50’ in
depth 12”diameter
Ditto 18” diameter
• Add 10% - 20% for drilling through rock.
Hand pack concrete to u/s of existing
Foundations:
3.50 – 6.50 man hours / CY
Steel Sheet Piling:
• Interlocking (left in place): $21.90 / SF
• Ditto removed for future use: $16.65 / SF
Steel Sheet Piling
(Drive & Remove)
DEPTH
$ SF
$ M2
N/E 15’ deep
16’ - 30’
31’ - 50’
15.70
14.80
14.20
168.93
159.25
152.80
GENERAL DATA
All types of excavated material enlarge (swell) up
Copyright © 2017 Compass International, Inc.
upon excavation or blasting activities to their least
dense or loosest condition, by as much as 15%
- 35%. As a general rule all excavated materials
(soil, sand and rock) will shrink after compaction to
a higher density than in the pre excavation (original)
state.
Scope Definition / Checklist for Site Work
Takeoff:
Initially perform a general examine of the plans,
bore logs and specification requirements in detail
before trying to organize the take off / estimating
effort.
Quantity Take Off Methods
• Plot sections and use average depth below a
fixed datum point
• Break out areas / color code areas (cut and or
SECTION A4 | 127.
imported borrow)
• Use contours (if possible) and interpolate
where possible
• Determine averages for odd sized areas need to
excavated
• Establish average length x width x depth (in
feet or parts of a foot) if no specific drawings are
available
• Cut and fill (borrow) requirements, establish
where borrow will come from.
Clearing / Grubbing General Excavation
• General Areas: Acre / Sq Yards
• Roads: Acre / Sq Yards
• Pavement: Acre / Sq Yards
• Tree removal / Stumps: Acre / Each
• Grubbed and brush areas: Acre / Sq Yards
Compaction / Bore Log Considerations
• Thickness requirements, 6’ or 3” (lifts), 90% or
95% compaction / density:
• Number of passes required and kinds of rollers
specified.
• Review any available bore logs to determine
water table level, weather rock or unsuitable materials exist.
CORRUGATED PVC DRAIN PIPE IN
3’ DEEP TRENCH
(including excavation and backfill):
DIAMETER
IN INCHES
MATERIAL LABOR $ TOTAL $ TOTAL
PER LF
PER LF PER LF PER M
4
6
8
1.99
2.22
3.25
0.80
1.04
1.25
2.75
3.26
4.50
9.15
10.69
14.76
Sub Structure / De-watering:
Segregate quantities of common or rock above and
below water table.
U.G. CONCRETE SEWER PIPE
(excludes excavation and backfill)
DIAMETER
M.H.’S PER 100 LF
CONSTRUCTION / BASIC MATERIALS
4”
6”
8”
10”
12”
18”
24”
24.00
37.50
40.00
44.00
47.00
54.00
75.00
UNITS
Material types (sand, clay, loam, rock etc.)
Cu Yd
Scrapers (D8’s and 663 / dozers / pans) & trucks, etc: Cu Yd
Specific backhoe / front end loader and trucks etc: Cu Yd
Ripping requirements; heavy, medium, Cu Yd
light (blasting)
Hand excavation work / Number of lifts
Cu Yd
Foundation preparation, if required / P & S:
Sq Yd
ROCK
UNITS
Mass, above 15 ft depth - shovel or loader & trucks Cu Yd
Intermediate, 5 ft to 15 ft depth - shovel or loader
Cu Yd
& trucks
Specific or bottom 5 ft - backhoe, clamshell, etc.
Cu Yd
Hand excavation work / Number of lifts
Cu Yd
Foundation cleanup (special considerations
Cu Yd /
such as Hazardous material)
Ton
Consider blasted size requirements
Cu Yd
Transportation / Hauls
• Total distance to tip, round trip: Lin Ft / Mile
• On site disposal distance: Lin Ft / Mile
• Hazardous Materials distance: Lin Ft / Mile
• Tipping Fee’s: Cu Yd / Ton
PLACING IN-SITE
CONCRETE
M / H’S PER CUBIC YARD
By Crane By Chute* By Pump
Continuous Footings
0.60
0.30
0.55
Isolated foundations
0.70
0.33
0.60
Elevated slab
0.45
0.63*
0.35
Housekeeping / 0.75
0.70*
0.60
Equipment pads
* Wheel barrow / concrete buggy
Materials for One Cubic Yard of Concrete
1:2:4 mix
• Portland Cement 520 pounds
• Cement 5.30 Cubic feet
• Sand 10.72 Cubic Feet
Copyright © 2017 Compass International, Inc.
128. | SECTION A6
• Stone 21.12 Cubic Feet
• 37.14 Cubic Feet of material in 1 Cubic Yard
of Concrete.
FINISHES (CONCRETE)
MAN HOUR PER 100
SQ. FT. AREA
Steel Trowel Float
1.5
Steel Trowel plus Grinding
3.5
Repair Defects. Fill Form Holes
0.7
Ditto - plus Bag finish
1.5
Ditto - plus Floating
0.5
Power float
1.0
Brush / Broom Finish
1.2
Iron hard
0.8
Curing (Sprayed or Rolled Compound)
0.5
Visqueen / Poly Sheet
1.0
Joint Filler 3.5 / 5.0
Grout, Sand (3) - Cement
6.5 MH‘s
per cu. yd.
Embeco grout
8.0 MH‘s
per cu. yd.
Grouting anchor bolt
0.22 MH’s each
Reinforced Concrete 3,500 PSI / 25 MPA Budget
Pricing: includes rebar / mesh fabric were applicable, formwork (under slab and edge), concrete
material, cranes, pumps, buggies and labor to install
(concrete, formwork and rebar), includes 5% waste
and 5 to 7 uses of formwork, for quantities 10 CY
/ 10 M3 and above: Labor is based on merit shop
labor (hybrid of union and non-union). For applications with a high rebar content use higher value.
(2017 Cost Basis). See chart on next page
Adjustment
• For excavation and backfill add 5% – 15% to
values on next page.
• For quantities less than 10 CY / M3 add 25% 50% to values on next page.
• For 2,500-PSI - 17.5 MPA application multiply
values on next page by 0.95
• For 3,000-PSI - 20 MPA application multiply
values on next page by 0.97
• For 4,500-PSI - 30 MPA application multiply
values on next page by 1.06
• For slab on grade stone add 10% - 15% to values on next page.
For applications in major US cities such as New
York, Chicago, Philadelphia, Los Angeles etc add
10% - 22% to values on next page.
Pounds / Kg / SF of rebar in CY / M3
DATA TABLE
POUNDS / KG / SF OF LOW
AVERAGE POUNDS /
HIGH KG / M3 OF
LOW
REBAR & FORMWORK
CY OF CONCRETE
CONCRETE
IN ONE CY / M3 OF
CONCRETE
AVERAGE SF
HIGH
OF FORMWORK
PER CY OF
CONCRETE
Footings (spread)
Isolated Foundations
Pipe Rack foundations
SOG
Suspended Floors
Walls 12”
Columns & Beams
25
25
25
15
40
50
65
30
35
40
40
55
40
70
75
88
95
85
128
95
160
Copyright © 2017 Compass International, Inc.
100
140
150
130
200
150
250
33
38
40
40
65
40
105
10
10
10
7
20
25
30
35
35
35
20
70
85
100
SECTION A4 | 129.
Reinforced Concrete 3,500 PSI / 25 MPA Budget Pricing
DATA TABLE
DESCRIPTION
$ COST PER CY
$ COST PER M3
LOW
HIGH
LOW
HIGH
CONCRETE FOUNDATIONS
Footings 3’ x 1’
269
331
351
431
Mat foundation
269
372
351
486
Pile caps 3’ x 3’ x 3’
269
403
351
532
SLAB ON GRADE (EXCLUDES U/S STONE)
4” thick
235
331
308
430
6” ditto
235
331
308
430
8” ditto
235
331
308
430
WALLS 6” thick
449
763
588
999
9” thick
449
763
588
999
12” thick
449
763
588
999
ELEVATED SLAB / WAFFLE SLAB / FLAT WORK
4” thick
470
562
616
736
6” thick
470
562
616
736
8” thick
470
562
616
736
COLUMN / BEAMS 18” x 18”
793
1,044
1,038
1,367
24” x 24”
793
1,044
1,038
1,367
Stairs and landing
729
1,510
955
1,978
PLINTHS / HOUSEKEEPING PADS (LESS THAN 5 CY / M3)
Isolated pads
793
1,589
1,038
2,082
Occupancy Load Pounds / Square Foot
DATA TABLE
TYPE OF FACILITY
OCCUPANCY LOAD POUNDS / SQUARE FOOT
Admin / Office Facility 2 Floors
Admin / Office Facility 4 Floors
Manufacturing Facility 2 – 4 Floors
70 – 120 PSF
100 – 300 PSF
150 – 350 PSF
Concrete Rebar in Walls: (Based on 10’ high wall)
DATA TABLE
WALL THICKNESS
POUNDS OF REBAR PER SF
AVERAGE
KG PER M2
AVERAGE
6”
9”
12”
15”
18”
21”
1.00 – 2.00
1.25 – 2.50
1.75 – 3.50
2.00 – 4.50
2.40 – 4.80
2.75 – 6.00
1.50
1.87
2.62
3.25
3.60
4.38
4.90 – 9.78
6.11 – 12.23
8.55 – 17.12
9.78 – 22.00
11.74 – 23.48
13.45 – 29.35
7.34
9.17
12.84
15.90
17.61
21.40
Copyright © 2017 Compass International, Inc.
130. | SECTION A4
HOURS TO INSTALL 50 CY OF
REINFORCED CONCRETE
WORK ITEM
QUANTITIES
Form
350 SF
Strip / Repair / Reuse
350 SF
Rebar
500 #
Install concrete
50 CY
HD Bolts
1 set
Grout
1 item
Total
50 CY
MAN-HOURS
120
50
90
100
25
25
410 / 8.20 hours
per CY or 10.75
hours per M3
CAISSON CONCRETE 3,500 PSI REINFORCED
DIAMETER
12” Diameter
16” Diameter
18” Diameter
24” Diameter
CU YD / LF
Formwork: Material cost and man hours per 1
SF of Contact area timber formwork with plywood
and timber or metal framing with associated cast in
place connections / bolts: Cost basis 2017
Rule of thumb for formwork is 10 – 20 SF of
formwork per one cubic yard of installed reinforced
concrete.
See next page for chart
FORMWORK – ERECT, STRIP AND REPAIR
APPLICATION
MAN-HOURS SF MAN-HOURS M2
Formwork to u/s of
suspended floors
Formwork to walls
0.12 - 0.18
1.30 - 1.95
0.10 - 0.15
1.08 - 1.65
0.029 Cu Yd / LF
0.051 Cu Yd / LF
0.066 Cu Yd / LF
0.117 Cu Yd / LF
CONCRETE STRENGTH EXPRESSED IN PSI
(POUNDS PER SQUARE INCH) AND METRIC
UNITS - MPA (MEGA PASCAL’S)
PSI
MPA (APPROX)
2,500
3,000
3,500
4,000
4,500
17.5
20
25
30
30
Concrete Pumping: Based on 100 CY / 75 M3
The following rate is for the pumping activity
only, excluded final placing of the concrete:
• Per Cubic Yard $8.80 - $13.85 / CY
• Per M3 $11.53 - $18.15 / M3
Formwork and Rebar Quantities
DATA TABLE
TYPE OF CONCRETE
Stanchions
Pile Caps
Beams Columns
Copyright © 2017 Compass International, Inc.
SF PER CY OF
CONCRETE
POUNDS OF
M2 PER M3 OF KG OF REBAR PER
REBAR PER CY CONCRETE
M3 OF CONCRETE
20 – 30 SF
30 – 40 SF
70 – 100 SF
70 – 100 SF
60 - 70
70 - 100
120 - 170
120 - 170
98 - 147
147 – 196
342 - 490
342 - 490
36 - 42
42 - 60
73 - 103
73 - 103
SECTION A4 | 131.
Formwork
COST BASIS 2017
APPLICATION
FABRICATE &
ERECT &
DISMANTLE
1ST USE
ERECT, CLEAN
& REPAIR
2 USES
ERECT, CLEAN ERECT, CLEAN ERECT, CLEAN
& REPAIR
& REPAIR
& REPAIR
3 USES
4 USES
5 USES
ERECT, CLEAN
& REPAIR
10 USES
Isolated foundations
Walls 10’ high
Elevated columns
& beams
Elevated floor slabs
Materials
$3.20
1.25 hours
Materials
$3.45
Labor 1.50
hours
Materials
$6.07
Labor 2.25
hours
Materials
$4.30
Labor 1.00
hours
Materials
$0.66
1.00
Materials
$0.75
1.25
Materials
$0.68
0.90
Materials
$0.75
1.15
Materials
$0.68
0.80
Materials
$0.75
1.05
Materials
$0.68
0.70
Materials
$0.75
0.95
Materials
$0.68
0.70
Materials
$0.75
0.95
Materials
$1.26
2.00
Materials
$1.30
1.90
Materials
$1.30
1.80
Materials
$1.30
1.70
Materials
$1.30
1.70
Materials
$0.87
0.75
Materials
$0.89
0.65
Materials
$0.89
0.55
Materials
$0.89
0.45
Materials
$0.89
0.45
Pre-Cast Concrete Floor Slabs (Elevated) 3,000 PSI Concrete:
SOLID OR HOLLOW 3,500 PSI CONCRETE STRAPPED AND GROUTED
FLOOR THICKNESS
MATERIAL
COST PER SF
INSTALLATION
MAN-HOURS PER SF
MATERIAL COST
PER M2
4”
$6.20
0.15
$66.71
6”
$7.45
0.17
$80.16
8”
$8.01
0.20
$86.19
10”
$9.48
0.23
$102.00
• Excludes crane costs:
• For areas larger than 25,000 SF / 2,323 M2 multiply installation hours by 0.85
INSTALLATION
MAN-HOURS PER M2
1.60
1.83
2.15
2.48
Pre-Cast Concrete Wall 3,500 PSI Reinforced Concrete
(INSULATED WITH BATT INSULATION 0.50 – 1.00 INCH):
TILT –UP AND INDUSTRIAL APPLICATIONS:
FLOOR THICKNESS
MATERIAL
COST PER SF
INSTALLATION
MAN-HOURS PER SF
MATERIAL COST
PER M2
3”
$4.50
0.20
$48.42
4”
$5.50
0.20
$59.18
5”
$6.90
0.25
$74.24
6”
$7.66
0.25
$82.42
• Excludes crane costs:
• For areas larger than 25,000 SF / 2,323 M2 multiply installation hours by 0.85
INSTALLATION
MAN-HOURS PER M2
2.15
2.15
2.70
2.70
Copyright © 2017 Compass International, Inc.
132. | SECTION A4
Slab on Grade (SOG) Concrete Floors: includes supply and installation complete with concrete, formwork and rebar, includes 4” thick sub
base and polythene.
Concrete Walls: includes supply and installation complete with concrete, formwork and rebar.
THICKNESS OF WALL
$ SF
S M2
THICKNESS OF WALL
$ SF
S M2
4” - 200 mm
6” - 250 mm
9” - 225 mm
7.98
9.62
11.20
$85.86
$103.51
$120.51
4” - 200 mm
6” - 250 mm
9” - 225 mm
23.40
25.35
26.90
$251.78
$272.77
$289.44
Pipe Bridge
BUDGET PRICING INCLUDES FOUNDATIONS AND STRUCTURAL STEEL (2017 COST BASIS)
TYPE
MATERIALS PER LF
MAN-HOURS TO
MATERIALS PER M
INSTALL PER LF
MAN-HOURS TO
INSTALL PER M
Light Duty
Heavy duty
1.77
2.33
5.80
7.64
78.80
119.95
Reinforced Concrete Data: Using $523 per CY
$684 per M3 for installed concrete as a benchmark
for concrete: The approximate break out of this cost
would be as follows:
CATEGORY COST PER CY COST PER M3
%
Concrete
$105.00
$137.00
Rebar
$175.00
$228.50
Formwork
$243.00
$318.00
20%
33%
47%
(20% M
– 80% L)
As a rule of thumb for a quick method of estimating concrete, there is typically 100 – 200 pounds
of rebar in 1 CY of reinforced concrete or 55 kg
– 110 kg in 1 M3
$258.46
$393.44
Use the above ratio’s to determine approximate
values for rebar and formwork.
Gunite / Sprayed on Concrete: For applications using mesh reinforcement add $0.63 – $1.48 to
material cost and add 10% to installation man-hours:
See chart below.
Injection grout / Concrete: (1:3:6) mix: (includes batching plant and pressure pumps, excludes
drilling costs)
• $640 - $800 / CY
• $840 - $1,045 / M3
Gunite / Sprayed on Concrete
BUDGET PRICING
THICKNESS
MATERIAL
COST PER SF
INSTALLATION
MAN-HOURS PER SF
MATERIAL COST
PER M2
INSTALLATION
MAN-HOURS PER M2
1”
1.5”
2.5”
3.0”
$4.03
$4.76
$8.05
$9.60
0.10
0.12
0.17
0.22
$43.36
$51.22
$86.62
$103.30
1.08
1.29
1.83
2.37
Copyright © 2017 Compass International, Inc.
SECTION A4 | 133.
CONCRETE GENERAL ESTIMATING DATA
TYPE
PER SF
Bush hammer concrete
$0.62 - $1.30
Acid wash concrete
$0.23 - $0.40
Pattern concrete slabs
$0.50 - $0.84
Colorize concrete slab
$0.57 - $1.05
Bag / Dress concrete walls $0.30 - $0.75
PER M2
$6.67 - $14.00
$2.47 - $4.30
$5.38 - $9.04
$6.13 - $11.30
$3.23 - $8.07
Estimating Thoughts for Structural Steel and
Miscellaneous Steel
Obtain and review any available engineering
deliverables / drawings or sketches. Take off lengths
of steel section and multiply by appropriate weight
in pounds per LF, determine pounds / tons of steel
that is depicted on the drawings. Structural steel is
usually fabricated in a vendors shop, and delivered
to the site for eventual erection. Structural steel has
a number of differing specifications / materials of
construction, that have differing cost consequences
the most widely used is A36.
Issues that may perhaps impact the erection activity of new structural steel are:
• Lifting equipment / cranes / hoists
• Mobilization / de-mobilization of crane (crane
are typically rented by the day or week)
• Crane reach
• Lifting capacity
• Number of floors
• Bolted connections
• Welded connections
• Painting / touch up painting
Platforms, ladders, handrails, stair risers and
other miscellaneous: perform take off and establish
pounds / tons of material and assign appropriate
installation man-hours. Checker plate, grating and
floor plate and metal decking: perform take off and
establish square feet of material and assign appropriate installation man-hours, allow at least 5% for
waste in the cutting / fit up activity.
Order of Magnitude Structural Steel Estimating Data
Structural Steel weights per SF:
• Manufacturing Building = 10 - 15 lb / S.F.
• 5 Floor Office Building = 15 – 25 lb / S.F.
• Heavy industrial Facility = 25 – 75 lb / S.F.
• Process Structures: Preliminary weights of
structures can vary from 1.5 lb to 3.5 lb (Cubic Foot
of enclosed area).
Structural Steel as percentage of major equipment cost: usually falls in the 5% to 8% of major
equipment cost. The following pie chart delineates
the various cost / fabrication and installation activities associated with structural steel.
PERCENTAGE BREAKDOWN
OF STRUCTURAL STEEL
BASED ON 500-TON,
3-STORY BUILDING:
Copyright © 2017 Compass International, Inc.
134. | SECTION A4
Miscellaneous Structural Steel Items
LABOR & MATERIAL COSTS, EXCLUDES CRANE AND SCAFFOLDING COSTS
DESCRIPTION
COST PER TON / POUND / SF
COST PER KG / M2
Structural Steel (Columns and Beams – 100 Ton and above)
For applications less than 100 Ton multiply value by 1.15
Light framing steel (tubular and channels)
Heavy framing steel (RSJ’s and wide flange beams)
Metal studs / framing Miscellaneous lintels and angles / channels
Corrugated metal decking, galvanized 2” rib 18 g
Ditto 20 g
Galvanized steel ladders connected to masonry or concrete
w/o safety loops.
Ditto with safety loops
Handrails 1.5” diameter CS 2 rail system 30”- 36” high
Stairs – galvanized steel 36” wide c/w side plate and
handrails (open grating)
Bollards 3” diameter 6’ long (3’ in ground filled with concrete)
H.D. bolts 1/2” diameter x 8” long
$2,200 - $3,500
($1.00 - $1.60 per pound)
$2,800 - $3,750
($1.27 - $1.70 per pound)
$2,615 - $3,650
($1.19 - $1.66 per pound)
$3,550 - $4,400
($1.61 - $2.00 per pound
$3,150 - $4,550
($1.43- $2.07 per pound
$2.15 - $2.70 / SF
$2.40 - $2.80 / SF
$458.00 / LF
$23.67 - $37.67
Average MH Units for Structural Steel Erection
Adjust Units for Job Conditions, Including Height
Factors and size of project.
See chart at right.
$30.06 - $40.24
$28.17 – $39.30
$38.11 - $47.34
$33.85 - $48.96
$23.13 - $29.05
$25.82 - $30.13
$75.50 / LF
$27.40 / LF
$190 - $235 per tread
$660 - $1,250 each
$13.70 / each
STRUCTURE TYPE
AVG. MH/TON
Pipe Racks
Equipment Structures
Platforms, Walkways, Ladders
Other Misc. Ironwork
18-25
30-40
45-70
40-80
Miscellaneous Structural Steel
TYPE
$ LOW COST PER TON $ HIGH COST
PER TON
LOW KG $ COST
HIGH KG $ COST
Building structural steel A 992 supply & erected
Building structural steel A 500 hollow section supply & erected
Galvanized sag rods 5/8”
per pound - supply & erected
2,350
5,550
2.58
6.11
3,350
5,350
3.69
5.88
2.40
3.25
5.28
7.15
Copyright © 2017 Compass International, Inc.
SECTION A4 | 135.
Average Weights for Misc. Iron
DATA TABLE
STRUCTURE TYPE
AVERAGE WEIGHT
1” x 3/16” Bar Type Grating - Galvanized
1 1/4” x 3/16” Bar Type Grating Galvanized
Ladders - W Cage
Ladders - No Cage
Stairways -
2” L - Handrail W Toe Plate
1 50” Pipe Handrail
Stair Treads Grating 1.25” x 3/16” (9” wide x 3’-0)
Ditto 1.25” x 3/16” Floor Grating
8 / 9 # SF / 0.03 M.H.’s / SF:
9.5 /10.5 # SF / 0.03 M.H.’s / SF
27 / 30 # LF
11 / 13 # LF
75 / 85 # LF
14 / 16 # LF
13 / 15 # LF
25 / 30 # each
11 / 12 # / SF
Metal Decking Installation
ROOF & U/S OF ELEVATED SLABS, LAID ON JOISTS
LABOR ONLY
MAN-HOURS PER SF
MAN-HOURS PER M2
1.5” ribbed depth 18g galvanized
1.5” ribbed depth 20g galvanized
1.5” ribbed depth 22g galvanized
3” ribbed depth 18g galvanized
3” ribbed depth 20g galvanized
3” ribbed depth 22g galvanized
0.010
0.010
0.010
0.013
0.013
0.013
0.108
0.108
0.108
0.140
0.140
0.140
REF. # TYPE OF MATERIAL
FABRICATE & INSTALL
M.H’S PER LF
1
Fabricate
Install
Fabricate
Install
Fabricate Install
Fabricate
Install Fabricate
Install
0.60 M.H’s per LF
0.25 M.H’s per LF
0.60 M.H’s per LF
0.25 M.H’s per LF
1.15 M.H’s per LF
0.25 M.H’s per LF
2.15 M.H’s per LF
0.25 M.H’s per LF
0.25 M.H’s per SF
5 – 15 SF per hour
Metal Decking Installation
ROOF & U/S OF ELEVATED SLABS, LAID ON JOISTS
Handrails: @ # horizontal 1.25” diameter CS welded to
vertical 1.50” diameter post at 6’ centers:
2
Ditto
3
Ladders w/o cage CS
4
Ditto with cage
5
Floor grating / checker plate/ diamond plate
• Excludes painting
Copyright © 2017 Compass International, Inc.
136. | SECTION A4
Steel Plate / Ductwork
$3,700 - $4,375 per ton supply and erect
Erection of steel refractory duct work
Excluding brick lining 40 - 60 man-hours per ton
Insulated Metal Siding
supply and install, excludes structural
framing / support:
Aluminum Cable Tray
(12” wide with all fittings and supports)
WIDTH
MAN-HOURS
$ MATERIAL COST
18”
24”
0.60
0.75
$53.70
$62.80
OOM pricing for a Field Erected Storage Tanks
250,000 - 500,000 gallons
Carbon Steel $1.60- $3.05 per gallon
SS $2.70 - $3.40 per gallon
OOM pricing for installed piping system 2017
Pricing Basis:
Includes, Pipe material, fabrication and erection labor, fittings, valves, hangars, testing and all required
activities: See chart below.
OOM Process Pipe Man-Hours
• ISBL 4 - 8” 200 – 300 man-hours per ton
• OSBL 75 - 125 man-hours per ton
THICKNESS
SF
3.5” – 85 mm thick corrugated
metal siding with 1” thick
insulation
$10.15 $104.90
M2
COST TO FABRICATE A COMPLETE C.S.
PRESSURE VESSEL / TOWER / DRUM:
(Assume wall thickness is 1” thick and finished
product weighs 10,000 pounds / 4,550 kg – 100,000
pound / 45,500 kg)
• Cost per pound: $2.15 – $2.54
• Cost per kg: $4.73 - $5.59
MASONRY UNIT COSTS / DATA
See charts next page
• Facing bricks cost $355 - $610 per 1,000
• Common bricks cost $255 - $395 per 1,000
• 8” thick concrete block cost $1.20 - $2.15 each
• 10 C.F. of mortar required for 1,000 bricks /
mortar costs approximate, $5.70 / C.F.
• A Mason can install / lay 700-900 bricks in
8 hours 1,000 brick a day is considered excellent
productivity.
• 1,000 bricks weigh 6,500 – 6,750 pounds.
OOM Miscellaneous Items
• Sandblasting 0.010 hours / SF
• Scaffolding 0.115 – 0.020 hours / CF
OOM Pricing for Installed Piping System
2017 PRICING BASIS
PIPE DIA
C. S. $ COST
PER LF
C. S $ COST
PER M
SS 304 $ COST SS 304 $ COST SS 316 $ COST SS 316 $ COST
PER LF
PER M
PER LF
PER M
2 2
3 4
6
46 - 72
69 - 94
99 - 124
124 - 153
148 - 176
151 - 238
228 - 308
325 - 408
408 - 502
485 - 579
77 - 116
111 - 158
152 - 205
208 - 252
242 - 294
Copyright © 2017 Compass International, Inc.
252 - 379
365 - 517
500 - 672
682 - 827
793 - 965
80 -123 119 - 170
172 - 220
223 - 266
258 - 317
262 - 405
389 - 558
565 - 720
731 - 872
848 - 1,041
SECTION A4 | 137.
Facing Brick
UNIT COSTS / DATA
BRICK TYPE
BRICK SIZE IN INCHES
NUMBER OF BRICKS PER SF.
Standard Size
Jumbo Size
Economy Size
Utility Size
8 Square
2-1/4 X 3-3/4 X 8”
2-3/4 X 3-3/4 X 8”
3-5/8 X 3-5/8 X 7-5/8”
3-5/8 X 3-5/8 X 11-5/8”
7-5/8 X 3-5/8 X 7-5/8”
6.75
5.6
4.5
3.0
2.25
Concrete Masonry Facing Units
UNIT COSTS / DATA
BRICK TYPE
BLOCK SIZE IN INCHES NUMBER OF BLOCKS PER SF.
Ground
Face Units
Split Face
Fluted Units
8 Square
3-5/8 X 7-5/8 X 15-5/8”
7-5/8 X 7-5/8 X 15-5/8”
2-1/4 X 3-5/8 X 15-5/8”
3-5/8 X 7-5/8 X 15-5/8”
7-5/8 X 7-5/8 X 15-5/8”
CONCRETE BLOCK (hollow) Back-up
BLOCK SIZE IN INCHES
NO. OF BLOCKS PER SF.
4” (wide) X 8” X 16” (SM - 1 side) 1.125
6” (wide) X 8” X 16” (SM - 1 side) 1.125
8” (wide) X 8” X 16” (SM - 1 side) 1.125
10” (wide) X 8” X 16” (SM - 1 side) 1.125
12” (wide) X 8” X 16” (SM - 1 side) 1.125
Concrete Masonry M / H installation units
Hollow load bearing / Solid load bearing:
THICKNESS
HOLLOW
M / H ‘S PER SF
SOLID M / H ‘S
PER SF
4” thick
6” ditto
8” ditto
10” ditto
12” ditto
0.055
0.060
0.070
0.075
0.085
0.060
0.065
0.075
0.080
0.090
1.125
1.125
3.375
1.125
1.125
Brick Mortar: (1:3) 1 part cement & 3 parts sand:
• 10 CF of mortar required for 1,000 installed
bricks.
• Mortar costs $5.70 per CF
• Mortar cost for 1,000 installed bricks = 10 CF
x $5.70 = $57.00
• Approximately 5 bricks per SF of wall surface
• 5 bricks x $57.00 / 1,000 = $0.29 / SF
Concrete Block Mortar: (1:3) 1 part cement & 3
parts sand:
• 1.12 Blocks + 2.5% waste = 115 blocks per 100
SF of wall surface.
• 15 CF of mortar required for 100 SF of wall
surface.
• Cost of mortar per SF = 15 CF x $5.70 / 100 SF
= $0.86
• See chart next page.
Copyright © 2017 Compass International, Inc.
138. | SECTION A4
MASONRY INSTALLATION MAN-HOURS MAN-HOURS
LABOR ONLY: PER SF
PER M2
(EXCLUDES SCAFFOLDING)
Solid Foundation wall 6” thick
Solid Foundation wall 8” thick
Solid Foundation wall 10” thick
Solid Foundation wall 12” thick
Solid Split ribbed face 6” thick
Solid Split ribbed face 8” thick
Solid Split ribbed face 10” thick
Solid Split ribbed face 12” thick
0.060
0.065
0.070
0.075
0.070
0.075
0.080
0.085
0.646
0.699
0.753
0.807
0.753
0.807
0.861
0.915
FLOOR DRAINS (flat round top C.S. & S.S.)
• 4” diameter: 2.50 MH
• 6” diameter: 4.00 MH
EXTERIOR FINISH
• Wood Siding Cedar: 7.2 MH per 100 Sq. Ft:
• Fiberglass Siding: 8.0 MH per 100 Sq. Ft:
• Galv. Corrugated Iron: 3.5 MH per 100 Sq. Ft:
• Vinyl Siding: 4.2 MH per 100 Sq. Ft:
• Corrugated Aluminum: 3.3 MH per 100 Sq. Ft:
QUARRY TILE FLOORING L & M (Dairy /
Food Facilities) 2017 Cost basis:
• 4” x 4” x 3/8” floor thin set base: $9.80 / SF
• 6” x 6” x 3/8” floor thin set base: $9.00 / SF
• 4” x 4” x 3/8” floor mud set base: $11.10 / SF
• 4” x 4” x 3/8” wall thin set base: $10.70 / SF
• 4” x 4” x 3/8” base with cove top thin set base:
$10.30 / LF
ROOFING
• Built Up (3 layers): $1.90 to $3.15 per layer of
roof per Sq. Ft:
• EPDM 1.15 to $2.30 per Sq Ft:
• Asphalt Shingles :2.0 MH to 2.4 MH per 100
Sq. Ft. depending on type of roof
Glass Block Work
DATA TABLE
SIZE
MATERIAL PER SF
LABOR PER SF
$ TOTAL PER SF
$ TOTAL PER M2
6” x 6”
8” x 8”
25.70
29.40
14.60
16.60
40.30
46.00
433.63
494.96
Wood Framing Man Hours per 100 Board Foot:
DOUGLAS FIR
FRAMING TYPE
2” X 4”
2” X 6”
2” X 8”
2” X 10”
2” X 12”
Floor / ceiling Joists
3.7 - 4.2
2.8 - 3.4
Bearing Plates & Sills
3.5 – 4.1
4.5 – 5.1
Wall Framing / Studs
1.9 - 2.4
1.8 - 2.2
(Hip) Short Framing Pieces
3.9 - 4.4
3.7 - 4.2
Roof Ridge
N/A
5.0 - 4.2
Trusses
5.0 - 6.2
4.3 - 4.8
(Stick Built - not pre-engineered)
Roof Rafters
7.2 - 8.0
5.8 - 7.3
• Plywood 0.5” exterior grade 16 Man Hours per 1,000 Sq. Ft:
1.9 - 2.2
3.1 - 3.5
1.6 - 2.2
3.5 - 3.9
5.0 - 4.1
3.7 - 4.1
1.6 - 1.9
3.1 - 3.5
1.5 - 2.0
3.2 - 3.4
4.4 - 3.7
2.9 - 3.3
1.6 - 1.9
3.1 - 3.5
1.4 - 1.8
2.9 - 3.2
4.4 - 3.7
2.7 - 3.0
4.8 - 6.0
4.2 - 5.5
3.3 - 5.0
Copyright © 2017 Compass International, Inc.
SECTION A4 | 139.
INSTALLED DUCTWOK PRICE /
SUBCONTRACT BASIS
(2017 Cost Basis)
Based on cost per pound includes all support /
brackets etc.
• Galv rectangular ductwork - commercial gauge
(22-26): $6.35 - $8.65 / lb
• Galv ditto ductwork - Rehab & Restoration:
$9.70 - $13.10 / lb
• Galv ductwork - heavy gauge (10-14 welded):
$12.20 - $19.20 / lb
• Aluminum ductwork: $12.90 - $21.00 / lb
• Stainless steel ductwork: $18.60 - $28.00 / lb
• Fiberglass ductwork - rigid: $5.90 / SF
• Insulation acoustical lining (internal): $2.72 –
3.80 / SF
• Air Balancing: $550 - $1,050 / AHU
• Plenum insulation rigid 2” thick: $6.10 - $7.25
/ SF
MATERIAL
WEIGHT (LBS PER SF)
3 ply roofing shingles
Corrugated metal roofing (20 g)
1 Brick thick wall with mortar
Ditto with concrete block wall
4” thick glass blocks
3/8” thick glass 1” thick terrazzo flooring
(excludes bedding material)
Gypsum plaster ceiling with lathing
0.75 – 1.25
1.50 – 2.25
100 - 125
165 - 190
16 – 20
5.50
12
10 - 12
Annual Maintenance Costs
(Internal and Exterior Maintenance)
2017 Basis
TYPE OF FACILITY
$ PER SF
$ PER M2
Hospital
Manufacturing Facility /
Factory
R&D Center Laboratory
Warehouse
2.50 -3.80
2.45 – 3.40
26.90 – 40.89
26.35 – 36.58
3.00 – 3.95
0.85 – 1.40
32.30 – 42.50
9.15 - 15.06
MATERIAL
WEIGHT (LBS PER SF)
3 ply roofing shingles
Corrugated metal roofing (20 g)
1 Brick thick wall with mortar
Ditto with concrete block wall
4” thick glass blocks
0.75 – 1.25
1.50 – 2.25
100 - 125
165 - 190
16 – 20
Estimating – Rules of Thumb
2017 BASIS
CONSTRUCTION CATEGORY
PRICE PER UNIT
REMARKS
Engineered Stone/Fill
Ditto
Structural Steel Reinforced Concrete
Ditto
Piping 2” – 4” CS
Ditto (multiply by 1.80 for S.S applications)
Manufacturing/Production
Equipment (Installation)
HVAC per ton of cooling / refrigeration
$33 - $51 CY
$44 - $66 M3
$2,985 - $4,600 Ton
Columns / Beams
$385 - $1,250 CY
$485 - $1,640 M3
Foundations and Flatwork
$95 - $200 LF
All in budget price (includes pipe
$311 - $640 M
fittings, hangars, valves & erection)
Multiply equipment purchase
Includes Engineering, Procurement
price by 2 – 5 to arrive at total
and Construction activities
installed cost
$2,050 - $3,400 per ton
Copyright © 2017 Compass International, Inc.
140. | SECTION A4
PAINTING COSTS
Mid 2017 cost basis
• Material Cost
• Exterior (Alkyd/oil based) 5 gallon
• Primer $34.20
• Flat $32.45
• Gloss $28.60
• Masonry Exterior $32.85
• One gallon of paint will cover 300-400 SF (1
coat)
• Painter (in 8 hours) can perform the following
• Spray 2,000-2,500 SF
• Roller 1,000-1,500 SF
• Brushwork 500-750 SF
Revamp / Alteration work.
Consider the following:
• Demolition items, value obtain for selling
“scrap metal”
• Materials of construction, i.e. carbon steel,
stainless steel, aluminum, plastic, galvanized steel
etc.
• Welded or bolted connections
• Modifications to existing steel
• Cut out openings
• Shoring
• Small quantities
• Fire watch, spark / dust protection
• Weather protection
• Limited use of equipment
• Lifting equipment / cranes / hoists
• Mobilization / de-mobilization of crane (crane
are typically rented by the day or week)
• Crane reach
• Lifting capacity
• Number of floors
• Painting / touch up painting
Major Equipment Installation / Erection / Setting: Major equipment installation / erection / setting man-hours are hardly ever greater than 10% of
the total field construction man-hour effort. Typically a good rule of thumb is that major equipment
Copyright © 2017 Compass International, Inc.
hours / cost range from 5% to 12% of the F.O.B. / ex
works purchase price of the particular piece of major
equipment item.
WEIGHT OF
POUND
M.E. IN TONS KG
1
3
5
10
25
50
100
250
500
909
16.00
2,273 14.00
4,545 12.50
9,091 11.00
22,727 10.00
45,455 9.00
90,909 8.00
227,273 6.50
454,545 5.50
2,000
5,000
10,000
20,000
50,000
100,000
200,000
500,000
1,000,000
HOURS PER
TON EXCLUDING
CRANES
APPROXIMATE MAJOR EQUIPMENT INSTALLATION / ERECTION / SETTING MAN HOURS
Includes aligning and leveling (excludes crane and
crane operator):
Agitators (Top Entry)
1 - 10 hp
Ea
10 - 50 hp
Ea
50 - 100 hp
Ea
16/18
56/64
95/120
Air Dryer
2,500 CFM
5,000 CFM
10,000 CFM
Ea
Ea
Ea
188/224
456/628
590/740
Belt Conveyor
50 ton
100 ton
250 ton
Ea
Ea
Ea
38/44
98/106
158/168
Compressors & chiller equipment with driver
1 - 50 hp
Ea
38
50 - 100 hp
Ea
86
100 - 250 hp
Ea
246/294
250 - 500 hp
Ea
444/526
SECTION A4 | 141.
Field erected storage tanks C.S.
10,000 gal
(238 barrels)
25,000 gal
(595 barrels)
50,000 gal
(1,190 barrels)
100,000 gal (2,380 barrels)
250,000 gal (5,950 barrels)
500,000 gal (11,900 barrels)
Ea
Ea
Ea
Ea
Ea
Ea
70/90
120/180
250/400
540/620
700/850
900/1,250
Drum - CS A 515
DATA TABLE
GALLONS
$ COST PER GALLON TO
$ COST OF DRUM PER GALLON
PURCHASE DRUM D/D TO SITE INSTALLED WITH BULK MATERIALS
& FIELD LABOR
$ COST OF DRUM PER
GALLON WITH DESIGN
/ CM & INSPECTION
250
500
1,000
2,500
5,000
10,000
25,000
50,000
100,000
380.74
236.18
136.69
70.38
41.94
29.32
19.17
13.36
10.86
48.54
30.18
20.23
12.01
9.93
8.01
5.61
4.94
4.43
331.08
205.37
118.87
61.20
36.47
25.49
16.67
11.62
9.44
Heat Exchangers (shell & tube)
Up to 50 SF
Ea
16
50 - 100 SF
Ea
40
100 - 500 SF
Ea
40/80
500 -1,000 SF
Ea
80/100
Horizontal Batch Centrifuge
10 SF
Ea
50 SF
Ea
100 SF
Ea
grouting, brackets, supports, piping, cable, conduit
and electrical hook-up:
88
164
420
MISCELLANEOUS ITEMS
(1) AGITATOR / MIXER / BLENDER – VESSEL / POT BLENDER: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Excludes cranes, foundations,
(2) BLOWERS & FANS- Suspended Type Fans
(ceiling / hung by brackets): Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km,, unpacking, lifting into position, setting, leveling, aligning,
and system check out. Includes thermostat, holding
brackets and fuel pump: Excludes cranes, foundations, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up:
(3) FLUID TYPE: Includes installation of motor
and drives, controls: Excludes crane rental, foundations, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up:
Copyright © 2017 Compass International, Inc.
142. | SECTION A4
Table 1
AGITATOR / MIXER / BLENDER – VESSEL / POT BLENDER:
CUBIC FEET / CUBIC YARD VOLUME (H.P.) / # OF PIECES
MAN-HOURS
M.H. PER HP
5 / 0.20 (2.5) / 7
10 / 0.40 (5.0) / 7
15 / 0.55 (7.5) / 7
25 / 1.00 (10.0) / 7
50 / 2.00 (15.0) / 7
75 / 2.75 (20.0) / 7
100 / 3.70 (25.0) / 7
250 / 10.00 (35.0) / 7
96
120
180
240
280
300
350
450
38.4
24
24
24
18.6
15
14
12.8
Table 2
BLOWERS & FANS: SUSPENDED TYPE FANS (CEILING / HUNG BY BRACKETS)
C.F.M.
HP
WEIGHT IN POUNDS (# OF MAJOR PIECES)
MAN-HOURS
M.H. PER HP
500
1,000
2,500
5,000
10,000
25,000
50,000
75,000
100,000
250,000
0.5
1
1.5
3
5
12.5
25
35
50
75
200 (4 / 8)
350 (4 / 8)
450 (4 / 8)
700 (4 / 8)
1,500 (6 / 12)
3,000 (6 / 12)
5,000 (10 / 20)
7,000 (10 / 20) 10,000 (10 / 20)
15,000 (10 / 20)
2.5
4
8
12
16
32
60
84
108
160
5
4
5.33
4
3.2
2.56
2.4
2.4
2.16
2.13
(4) COMPRESSOR – RECIPROCATING UNIT
(Packaged unit with local controls):
Gas Powered Engine Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Includes installation of motor and drives,
controls: Excludes cranes, foundations, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up: see chart next page.
(5) OIL / GAS FIRED HEATERS INDIRECT
- FLOOR MOUNTED:
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
Copyright © 2017 Compass International, Inc.
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Includes
installation of motor and drives, controls: Assume
unit is mounted on a skid unit the hook-up piping
and electrical between tank and pump is included,
typically trim is shipped loose: Assumed that equipment is shipped in one piece: Excludes cranes,
foundations, grouting, brackets, supports, piping,
cable, conduit and electrical hook-up:
(6) Shell & Tube Heat Exchanger CS A 285 100
PSIG: see table next page
SECTION A4 | 143.
Table 3
FLUID TYPE
GPM
H.P
# OF PIECES
M.H.’S
MH. PER GALLON
10
25
50
100
150
1
2.5
5
7.5
15
3/5
3/5
3/5
3/5
5/7
6.5
8
12
22
32
0.65
0.32
0.24
0.22
0.20
Table 4
COMPRESSOR – RECIPROCATING UNIT (PACKAGED UNIT WITH LOCAL CONTROLS)
COMPRESSOR H.P.
APPROXIMATE WEIGHT POUNDS (# OF PIECES) MAN-HOURS
M.H. PER H.P.
1,000
2,500
4,000
5,000
65,000 / 7/14
95,000 / 7/14
125,000 / 7/14
250,000 / 7/14
0.72
0.56
0.37
0.30
720
920
1,250
1,500
Table 5
OIL / GAS FIRED HEATERS INDIRECT - FLOOR MOUNTED
CFM
NUMBER OF PIECES
WEIGHT POUNDS
MAN-HOURS
M.H. PER POUND
2,500
5,000
10,000
25,000
50,000
100,000
6/12
6/12
10/20
10/20
10/20
10/20
600
1,000
1,500
3,700
4,500
6,300
21
32
42
72
81
114
0.04
0.03
0.03
0.02
0.02
0.02
Table 6
SHELL & TUBE HEAT EXCHANGER CS A 285 100 PSIG
SURFACE AREA SF
$ COST PER SF
PURCHASE D/D TO SITE
$ COST PER SF
INSTALLED WITH BULK
MATERIALS & FIELD LABOR
$ COST PER SF
WITH DESIGN / CM &
INSPECTION
50
100
250
500
1,000
2,500
5,000
10,000
799.15
720.57
362.00
212.57
111.13
65.81
44.33
35.92
998.38
899.93
451.57
265.38
139.11
82.40
55.64
44.94
220.48
206.32
100.04
55.65
32.51
24.88
19.62
18.47
Copyright © 2017 Compass International, Inc.
144. | SECTION A4
Fuel Storage Tank Fiberglass
2,500 Gallon
$2,780
5,000 Gallon
$4,285
10,000 Gallon
$11,015
4/6
6
16
300
200
0
100
MAN HOURS
400
500
600
MIXER / EXTRUDER
0
10
20
30
40
50
60
HP
Furnace Gas / Oil Fired 250 PSIG CS / Alloy
DATA TABLE
MMBTU’S PER $ COST PER UNIT TO PURCHASE $ COST PER UNIT WITH BULKS
HOUR DUTY
DELIVERED IN SECTIONS TO SITE & FIELD ERECTION LABOR
$ COST PER UNIT WITH
DESIGN / CM & INSPECTION
25
483,592
797,773
1,023,153
50
933,302
1,187,572
1,523,076
100
1,771,117
2,122,260
2,721,825
250
4,209,097 5,083,874
6,520,134
500
8,210,010
8,880,225
11,389,000
Copyright © 2017 Compass International, Inc.
SECTION A4 | 145.
Pumps & motors
1-10 hp
10 - 25 hp
25 - 50 hp
50 -100 hp
100 – 150 hp
Ea
Ea
Ea
Ea
Ea
Reactors (multi wall)
500 gal
Ea
750 gal
Ea
1,000 gal
Ea
2,500 gal
Ea
5,000 gal
Ea
Vessels Horizontal
Weight in Tons
1 – 10
10 – 20
20 – 40
40 – 60
22
40
58
84
96/108
M.H.’s / per Ton
8.10
4.90
3.90
3.40
LIGHTING FIXTURES CEILING
WAREHOUSE TYPE APLLICATIONS:
(excludes cable, conduit and terminations)
2017 Cost Basis
42
80
88/96
122/136
158/172
Towers / Columns (excludes tray installation)
12“ Dia x 20’ high
Ea
38/42
24“ Dia x 30’ high
Ea
72/84
48” Dia x 40’ high
Ea
116/124
60” Dia x 60’ high
Ea
160/172
72” Dia x 60’ high
Ea
184/192
Mercury Vapor
100 watt
250 watt
Material
$648
$742
M.H.’s
2.25
2.45
Sodium H.P.:
100 watt
250 watt
Material
$895
$960
M.H. ’s
2.75
2.95
50
40
30
20
10
0
MAN HOURS
60
70
80
SEWAGE EJECTORS (SIMPLEX – 1,800 RPM)
0
2
4
6
8
10
12
14
16
GPM
Copyright © 2017 Compass International, Inc.
146. | SECTION A4
50
40
30
0
10
20
MAN HOURS
60
70
80
90
SEWAGE EJECTORS (DUPLEX – 1,800 GPM)
0
2
4
6
8
10
12
300
400
14
16
KVA
30
20
0
10
MAN HOURS
40
50
60
SUB STATION
0
100
200
KVA
Copyright © 2017 Compass International, Inc.
500
600
SECTION A4 | 147.
Steam Packaged Boiler A 285 CS 150 PSIG
DATA TABLE
POUNDS PER HOUR
$ COST PER POUND TO
PURCHASE D/D TO SITE
5,000
10,000
25,000
50,000
100,000
250,000
Incandescent 100 watt
250 watt
14.96
14.16
9.13
6.54
4.71
4.26
Material
$166
$216
M.H.’s
2.25
2.45
LIGHTING FIXTURES CEILING
WAREHOUSE TYPE APLLICATIONS
Explosion Proof (excludes cable, conduit and terminations) 2016 Cost Basis:
Mercury Vapor
100 watt
250 watt
Material
$824
$1,106
M.H.’s
2.75
3.15
Sodium H.P.:
100 watt
250 watt
Material
$974
$1,200
M.H. ’s
3.25
3.65
Incandescent 100 watt
250 watt
Material
$415
$472
M.H. ’s
3.35
3.50
• Allow $19.20 LF for (L/M) for cable, conduit and
terminations.
MEDICAL / LABORATORY PIPING
(All in price L&M) 2017 Cost Basis:
$ COST PER POUND FIELD
ERECTED WITH BULKS
& FIELD LABOR
45.83
43.67
22.83
14.50
9.38
6.86
$ COST PER POUND
WITH DESIGN / CM
& INSPECTION
52.70
50.22
26.26
16.67
10.80
7.89
• 0.75” S.S. 304 Sch 80 seamless: $33.35 / LF
• 1.00” S.S. 304 Sch 80 seamless: $42.25 / LF
• 0.50” S.S. 316 Sch 10 seamless: $23.45/ LF
• 0.75” S.S. 316 Sch 10 seamless: $27.40 / LF
• 1.00” S.S. 316 Sch 10 seamless: $34.20 / LF
• 0.50” S.S. 316 Sch 80 seamless: $32.40 / LF
• 0.75” S.S. 316 Sch 80 seamless: $37.60 / LF
• 1.00” S.S. 316 Sch 80 seamless: $45.80 / LF
WALK IN FREEZERS (PRE-ASSEMBLED)
2017 Cost Basis.
Dimensions
10’ x 10’ x 10’ high
15’ x 15’ x 10’ high
Material
$9,510
$13,860
M.H.’s
42
64
LAB EQUIPMENT
(2017 Cost Basis):
MATERIAL
Anaerobaric Chamber
$6,900
12 CF
Automatic Coagulation
$5,080
Bench top / timer unit
Glassware Washer / Dryer $6,940
Lab Centrifuge Unit
$4,125
2.5 CF
MAN HOURS
5
4
10
1.5
• 0.50” S.S. 304 Sch 10 seamless: $21.05 / LF
• 0.75” S.S. 304 Sch 10 seamless: $23.65 / LF
• 1.00” S.S. 304 Sch 10 seamless: $29.95 / LF
• 0.50” S.S. 304 Sch 80 seamless: $26.90 / LF
Copyright © 2017 Compass International, Inc.
148. | SECTION A4
O.O.M. PRICING FOR VESSELS & TANKS C.S. &
S.S: ASME 100 PSIG
(2017 Pricing Basis):
ELECTRIC MOTOR
hours to install 240/440 v
H.P.
MAN-HOURS
Weights as per Standard Gage for steel sheet are as
follows:
• 0.25” thick = 10.46 pounds / SF. 0.50” thick =
20.91 pounds / SF.
• 0.75” thick = 31.36 pounds / SF. 1.00” thick=
41.82 pounds / SF.
2.5
5
10
25
50
3
5.5
8
16
24
To determine weight use the following formula
Weight (W) = 12DTL
Where W = weight in pounds and D = Diameter of
Vessel / Tank in inches and T = Shell / wall thickness in inches and L = Height or length of Vessel /
Tank
• Add 10% for normal nozzles skirts, man ways and
baffles
• Add 20% for complex nozzles skirts, man ways
and baffles
DUCTWORK BUDGET PRICING:
(2017 Pricing)
FLEXIBLE WITH CLAMPS
SIZE
UNIT
$ COST
3”
4”
6”
8”
10”
12”
16”
18”
20”
LF
LF
LF
LF
LF
LF
LF
LF
LF
$14.50
$16.85
$22.00
$28.00
$32.60
$36.20
$41.40
$44.40
$45.05
O. O. M. Costs Per Pound
TYPICAL BRACKETS, SUPPORTS AND NOZZLES ETC.; 2017 COST BASIS.
POUNDS
WEIGHT
COST /
LB. C.S. COST /
KG C.S.
COST / LB.
S.S. 304
COST / KG
S.S. 304
COST / LB.
S.S. 316
COST / KG
S.S. 316
500
11.37
25.01
17.43
38.35
20.63
45.38
1,000
9.99
21.98
15.98
35.16
18.38
40.44
2,500
8.23
18.11
13.28
29.21
15.29
33.63
5,000
7.55
16.61
11.94
26.26
13.51
29.73
10,000
6.25
13.74
10.01
22.03
11.21
24.65
25,000
4.21
9.27
7.05
15.52
7.26
15.97
50,000
3.04
6.69
4.62
10.16
5.35
11.78
100,000
2.35
5.16
3.68
8.09
4.25
9.35
• Adjustments: To determine setting man hours multiply the above results by 6% -8% and divide by $58 / hour. For intricate designs needing internal brackets / supports etc add 15% to 25% to above results. For vessels with half and full jackets
add 15% and 25% to above results.
Copyright © 2017 Compass International, Inc.
SECTION A4 | 149.
GALVANIZED STEEL WITH SUPPORTS
SIZE
UNIT
COST
3”
4”
6”
8”
10”
12”
14”
16”
18”
20”
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
$16.15
$16.80
$20.85
$27.00
$31.15
$36.05
$39.75
$44.70
$50.85
$55.60
FIRE DAMPERS IN WALL
SIZE
UNIT
COST
1 SF
2 SF
4 SF
8 SF
12 SF
18 SF
24 SF
36 SF
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
$265
$375
$490
$840
$960
$1,180
$1,215
$1,530
LABOR MAN HOURS PULLING CABLE
IN CONDUIT
(excludes hookup / connections)
WORK ITEM
UNIT
No 12 solid wire
No 10 ditto
No 8 ditto
No 1/0 stranded wire
No 2/0 ditto
No 500 MCM
stranded wire
No 1,000 ditto
1000 LF
1000 LF
1000 LF
1000 LF
1000 LF
1000 LF
M.H.’S PER UNIT
7.50
12.50
14.50
26.50
28.50
60.00
1000 LF
87.50
LABOR MAN HOURS TO INSTALL COPPER
BUSWAY IN STEEL CASE
WORK ITEM
UNIT
225 amp
1000 amp
2500 amp
1000 LF
1000 LF
1000 LF
M.H.’S PER UNIT
460.00
865.00
2830.00
Miscellaneous Electrical Items:
(2017 Pricing Basis)
UNDERGROUND FIBREGLASS DUCTWORK
DESCRIPTION
MATERIAL
COST
LABOR
MAN-HOURS
SIZE
UNIT
COST
4”
6”
8”
10”
12”
18”
LF
LF
LF
LF
LF
LF
36.20
39.35
44.40
54.40
60.60
97.10
Unit substation 150 kVA
Ditto 500 kVA
Ditto 1,000 kVA
Main switchboard
600 v 400 amp
Safety switch 240 v –
3 pole NEMA 1 Enclosed
Indoor 100 amp
Ditto 200 amp
Ditto 400 amp
Ditto 600 amp
Safety switch 100 amp
NEMA 1 Enclosed Indoor
Ditto 250 amp
Ditto 400 amp
Ditto 600 amp
Ditto 100 amp NEMA
12 -Dust proof
Ditto 250 amp
46,700
77,900
104,650
1,505
44
84
142
26
280
3
640
1,315
2,795
320
6
8
12
6
445
908
1,685
333
8
10
12
8
490 10
ELECTRICAL WORK:
If the scope of this item is vague an allowance of
$15,000 to $25,000 per motor is usually adequate to
estimate the costs associated with a unit sub station
and switch gear, power / control wire & conduit,
grounding and area lighting, this would exclude
main sub station (refer to Section D 1 for more details).
Copyright © 2017 Compass International, Inc.
150. | SECTION A4
DESCRIPTION
MATERIAL
COST
CONTINUED
Ditto 400 amp
963
Ditto 600 amp
1,828 Ditto 100 amp NEMA 7
918
Explosion proof
Ditto 250 amp
1,180
Ditto 400 amp
2,210
Ditto 600 amp
4,440
2400 V - 4160 V MCC
6,900
600 amp Disconnect
switch
Ditto 1000 amp
7,880
Ditto 1200 amp
8,735
Circuit breaker 600 v –
270
3 pole 100 amp breaker
NEMA 1 Enclosed Indoor
Ditto 200 amp
532
Ditto 500 amp
2,211
Ditto 1000 amp
2,470
Circuit breaker 600 v –
338
3 pole 100 amp breaker
NEMA 12 Dust proof
Ditto 200 amp
647
Ditto 500 amp
2,707
Ditto 1000 amp
2,834
Circuit breaker 600 v –
410
3 pole 100 amp breaker
NEMA 7 Explosion proof
Ditto 200 amp
805
Ditto 500 amp
3,200
Ditto 1000 amp
3,690
Panel Enclosure1’x 2’x 6” 78
NEMA 1
Ditto 2’ x 3’ x 6”
212
Ditto NEMA 12 2’ x 2’ x 6” 285
Transformer 3 phase Dry- 8,530
4160 v – 480 / 277 v 150 kVA
Ditto 500 kVA
21,500
Ditto 1,000 kVA
39,050
Ditto 480 v – 208/120 v 3,600
150 kVA
Ditto 500 kVA
9,200
Bus Duct 225 amp
170
Copper / LF
Ditto 400 amp
221
LABOR
MAN-HOURS
14
16
10
14
18
24
10
14
17
2
4
6
12
3
5
8
18
4
6
12
22
2.2
4.2
3.5
30
56
84
26
48
0.30
0.35
Copyright © 2017 Compass International, Inc.
DESCRIPTION
CONTINUED
Ditto 600 amp
Ditto 800 amp
Ditto 1,000 amp
Bus Duct 225 amp
Aluminum / LF
Ditto 400 amp
Ditto 600 amp
Ditto 800 amp
Ditto 1,000 amp
For bus duct elbows
and junctions
Galvanized 1” diameter
NEMA 7 Explosion proof
conduit / LF
Ditto 2”
Ditto Junction box 3 branch
Galvanized steel cable
tray 12” wide / LF
Ditto 18”
Ditto 24”
Ditto 30”
Galvanized steel cable
tray 12” wide / LF
Ditto 18”
Ditto 24”
Ditto 30”
For elbows and junctions
EMT 1” diameter / LF
Ditto 1.5”
Ditto 2”
Ditto 4”
Pull box 1’ x 1’ x 1’
Ditto 2’ x 2’ x 2’
MATERIAL
COST
LABOR
MAN-HOURS
290
370
466
124
0.40
0.45
0.55
0.30
184
228
300
340
Add 25%
to above
29.40
0.35
0.40
0.45
0.55
Add 25%
to above
0.75
63.40 76.25 0.95
0.55
10.80
0.33
16.45 21.40
29.70
16.20
0.40
0.50
0.55
0.33
23.15
32.35
35.30
Add 25% to
above values
1.92
2.61
3.62
15.15
51.52
296.00
0.40
0.50
0.55
Add 25% to
above values
0.175
0.375
0.425
0.50
2
3.50
SECTION A4 | 151.
INSTRUMENTATION
An allowance of $15,000 to $25,000 per Major
Equipment item is usually adequate for early budgeting of instrumentation work. Refer to Section D 1
for additional information.
Installation Man Hours
DEVICE
INSTALLATION
MAN-HOURS
Pneumatic level transmitter
Combustion control / alarm switch
Electronic flow switch (high / low) Electronic alarm point
Electronic magnetic flow meter 1” Ditto 2”
Ditto 3”
Ditto 4”
Pressure regulator
Electronic pressure recorder Electronic voltmeter
Temperature control thermowell
Conductivity cell
Electronic turbine flow meter 1” Ditto 2”
Electronic swirl meter 1” Ditto 2”
Relay fire-eye relay controller
Temp control alarm point / annunciator
Electronic flow indicator
Electronic temperature recorder
Electronic temperature controller
Electronic PD flow indicator
Electronic level control valve
Electronic flow recorder
10.50
2.50
3.00
2.50
3.50
4.25
8.00
12.00
2.50 - 4.00
12.00
3.00
2.50
7.25
4.00
8.00
4.50
8.00
4.00
1.75
5.00
20.00
6.50
5.50
5.50
16.00 - 20.00
BELT CONVEYOR – Man Hours (includes steel
structure, belts and drives, excludes foundations)
WIDTH IN INCHES
MAN-HOURS PER LF
12
14
16
18
20
24
30
1.75
2.05
2.25
2.40
2.65
3.25
3.50
ENGINEERING
Typically 400 – 800 home office engineering &
design hours are adequate for each Major Equipment
item refer to section D 1 for additional data. Revamp
projects typically take 20 – 50% more H.O. engineering hours to design.
Refer to Section D1 for additional information
on:
• Major Equipment
• Piping Systems
• Insulation
• E/I Systems
• Civil / Structural and Architectural
Erection Man-hours for CS schedule 40, 80 and
120 piping: OSBL applications:
• Excludes: pipe fabrication, hangar / valve installation, testing and installation:
• To determine total hours (fabrication and
erection) per LF multiply column A values by 1.50
– 2.00
• See data table next page.
Erection Man-hours for CS schedule 40, 80 and
120 piping: ISBL applications:
• Excludes: pipe fabrication, hangar / valve installation, testing and installation:
• To determine total hours (fabrication and
erection) per LF multiply column A values by 1.50
– 2.00
• See data table next page.
Budget pricing for totally installed CS schedule
40 OSBL and ISBL (Labor and Material) includes
pipe material, fittings, fabrication, erection, hangars,
testing. Based on piping installed 15’ – 25’ above
grade on racks: (2017 pricing basis)
• OSBL multiply by 0.80 – 1.25 depending on
complexity of piping configuration:
• ISBL multiply by 0.80 – 1.50 depending on
complexity of piping configuration:
• Excludes valves and insulation and cranes
• See data table following pages.
Copyright © 2017 Compass International, Inc.
152. | SECTION A4
Erection Man-hours
FOR CS SCHEDULE 40, 80 AND 120 PIPING; OSBL APPLICATIONS
DIAMETER /
INCHES
LIFT INTO PLACE,
LINEUP & TACK WELD
MAN-HOURS PER LF
PRODUCTION WELD
COLUMN A COMBINED COLUMN A COMBINED
MAN-HOURS NUMBER ERECT & WELD
ERECT & WELD
MAN-HOURS PER LF
MAN-HOURS PER M
2 screwed joints N/A
2 welded
N/A
4
0.35
1.95
6
0.45
2.50
8
0.50
3.30
10
0.60
3.75
12
0.65
4.35
14
0.75
4.85
16
0.80
5.50
18
0.85
6.00
20
0.90
6.75
24
1.00
7.75
0.30
0.35
0.45
0.55
0.60
0.75
0.80
0.90
0.95
1.00
1.05
1.15
0.98
1.15
1.48
1.80
1.97
2.46
2.62
2.95
3.12
3.28
3.44
3.77
Erection Man-hours
FOR CS SCHEDULE 40, 80 AND 120 PIPING; ISBL APPLICATIONS
DIAMETER /
INCHES
LIFT INTO PLACE,
LINEUP & TACK WELD
MAN-HOURS PER LF
PRODUCTION WELD
COLUMN A COMBINED COLUMN A COMBINED
MAN-HOURS NUMBER ERECT & WELD
ERECT & WELD
MAN-HOURS PER LF
MAN-HOURS PER M
2 screwed joints N/A
2 welded
N/A
4
0.90
1.95
6
1.05
2.50
8
1.22
3.30
10
1.55
3.85
12
1.68
4.55
14
1.75
5.35
16
1.87
6.20
18
1.95
7.10
20
2.10
7.85
24
2.30
9.45
Copyright © 2017 Compass International, Inc.
0.60
0.95
1.05
1.27
1.66
1.75
1.84
1.97
2.15
2.30
2.55
2.75
1.97
3.12
3.44
4.17
5.44
5.74
6.04
6.46
7.05
7.54
8.36
9.02
SECTION A4 | 153.
Budget Pricing
TOTALLY INSTALLED CS SCHEDULE 40 OSBL AND ISBL (LABOR & MATERIAL)
DIAMETER
OSBL $ / LF
OSBL $ / M
ISBL $ / LF
ISB / $ M
2
4
6
8
10
12
23.41
41.83
67.17
90.33
125.30
164.20
76.80
137.22
220.30
296.28
410.98
538.58
47.83
85.46
137.20
186.19
257.39
337.48 156.88
280.29
450.02
610.72
844.25
1,106.93
Steam Tracing Copper Pipe 0.50” Diameter
TO PIPING SYSTEMS AND MAJOR EQUIPMENT
MATERIAL COST / LF
LABOR MAN-HOURS / LF
MATERIAL COST / M
LABOR MAN-HOURS / M
21.20
0.55
69.55
1.80
Vitrified Clay Pipe Installed in Trenches
EXCLUDES EXCAVATION AND BACKFILL
DIAMETER
MATERIAL COST / LF
LABOR MAN-HRS / LF
MATERIAL COST / M
LABOR MAN-HRS / M
4”
6”
5.85
8.95
0.25
0.30
19.20
29.35
0.82
0.98
Concrete U/G Sewer Installed in Trenches
EXCLUDES EXCAVATION AND BACKFILL
DIAMETER
MATERIAL COST / LF
LABOR MAN-HRS / LF
MATERIAL COST / M
LABOR MAN-HRS / M
4”
6”
8”
7.45
10.65
13.00
0.25
0.30
0.53
24.45
34.95
42.65
0.82
0.98
1.74
Piping / Welding Stress Relieving
ELECTRIC RESISTANCE APPLICATION
PIPE WALL SCHEDULE
40,80 & 120
MINIMUM HOURS PER TASK
1.55 man-hours per
4
diameter inch
0.50” WALL & ABOVE
MINIMUM HOURS PER TASK
2.15 man-hours per
diameter inch
6
Copyright © 2017 Compass International, Inc.
154. | SECTION A4
Fittings / Valves
AVERAGE NUMBER OF FITTINGS / VALVES FOR VARIOUS C.S. / S.S. PIPING DIAMETERS / PER
1,000 LF OF PROCESS RELATED PIPING SYSTEMS (BASED ON 17 PROCESS RELATED PROJECTS)
I.S.B.L. WORK
PIPE
DIA.
COUPLINGS
ELBOWS
TEES / CONCENTRIC
UNIONS
(90 & 45 DEGREE)
- ECCENTRIC
FLANGES (50%) (30%)
REDUCERS (10%)
CAPS / BLINDS / NO. OF
PLUGS & MISC. FITTINGS
WELDOLETS /
SOCKOLETS /
NIPPLES
NO. OF
VALVES
0.5”
0.75”
1”
1.5”
2”
4”
6”
8”
10”
12”
18”
24”
58
54
37
24
18
16
15
13
12
11
6
5
372
247
81
35
26
14
12.5
6.75
6.25
5.75
4.35
3.70
291
305
187
119
91
82
74
64
59
57
33
25
173
110
111
70
55
49
44
38
35
35
21
16
57
52
37
25
18
16
16
13
12
10
7
5
579
521
372
238
182
163
149
128
118
113
67
51
TYPICAL PERCENTAGE BREAKDOWN OF
VARIOUS FITTINGS:
TYPICAL PERCENTAGE BREAKDOWN OF
VARIOUS VALVES:
FITTING CATEGORY
PERCENTAGE
FITTING CATEGORY
PERCENTAGE
Flanges / Couplings / Unions
Elbows 90 & 45 degree
Tees / Reducers / Caps / Plugs /
Strainers / Minor items
35%
25%
40%
40%
Ball
Butterfly
Check
Gate
Globe
Plug
Swing
Other
10%
10%
15%
15%
10%
15%
10%
15%
Air Conditioning Cost Comparison
2 PIPE FCU SYSTEM V’S 4 PIPE FCU SYSTEM
COST MODEL 244,500 SF MIXED USE FACILITY OFFICES / APARTMENTS / HOTEL 2017 COST BASIS
ON 7 FLOORS (2012 COST BASIS)
2 Pipe FCU system
244,500 SF
22,723 M2
4 Pipe FCU system
244,500 SF
22,723 M2
Copyright © 2017 Compass International, Inc.
SF COST
$30.30
$33.60
M2 COST
$326
$362
SECTION A4 | 155.
WELDING SINGLE PASS TO METAL PLATE HORIZONTAL:
WELDING SINGLE PASS TO METAL PLATE VERTICAL:
WELD WIDTH MAN-HOURS PER LF MAN-HOURS PER M
WELD WIDTH MAN-HOURS PER LF MAN-HOURS PER M
1/16” 1/8”
3/16”
1/4”
5/16”
1/16” 1/8”
3/16”
1/4”
5/16”
0.25
0.35
0.55
0.70
0.85
0.82
1.148
1.804
2.296
2.788
0.31
0.44
0.69
0.88
1.06
1.025
1.435
2.255
2.87
3.485
Electrical Fittings Man-Hours Per 10 # Items
DATA TABLE
DIA.
ELBOWS / UNIONS / TEE’S
GROUND FAULT INDICATOR (GFI)
EXPLOSION PROOF FITTINGS
0.50”
0.75”
1”
1.50”
2”
4.0
4.5
5.0
8.5
14.5
8.0
11.0
14.0
18.0
22.0
7.0
9.5
14.0
17.5
21.0
Fire Protection / Safety Items
2017 PRICING BASIS
ITEM
MATERIAL COST
MAN-HOURS
Hose Assembly with 100’ 1” diameter rubber hose
4” C I Fire Hydrant
Ditto 6”
Safety shower including 50’ of 1.5” diameter C S pipe
$1,550
$1,290
$1,870
$2,880
4.5
3.75
4.25
6.00
Steam Tracing: (2017 Pricing Basis)
INCLUDES ONE LENGTH OF PIPE / TUBE, SHUT OFF VALVE, SUPPORTS, STRAINERS, TRAPS,
EXCLUDES INSULATION & ANY EXCAVATION.
DIAMETER
C S SCHEDULE 40
TUBE / PIPE / LF
C S SCHEDULE 40
TUBE / PIPE / LF
COPPER PIPE /
TUBE / LF
COPPER PIPE /
TUBE / LF
0.50
0.75
1”
MATERIAL
$21.40
$25.00
$28.35
MAN-HOURS
0.75
0.84
1.10
MATERIAL
$19.90
$23.40
$28.80
MAN-HOURS
0.64
0.72
0.93
Copyright © 2017 Compass International, Inc.
156. | SECTION A4
Instrumentation Tubing: allow 35’ of S.S. 304
tubing per device:
• Level Transmitters / Pressure Transmitter /
Flow Transmitter:
• Material Cost: $880 Man-Hours: 18
Fire Alarm / Security Systems Man-Hours to
Install
• Labor only: (excludes device and materials)
ITEM
MAN-HOURS
Door 7’ x 3’ mechanical opener
activated by fob
Parking O/H mechanical opener
activated by fob
Door switch (Magnetic / hinge)
Motion detection device
Fire Alarm annuciator (single)
Fire Alarm annuciator 4 zone
Fire Alarm annuciator 8 zone
Card access reader wall mounted
Smoke detector ceiling mounted
Break glass device box
2.60
5.50
1.25
3.20
2.75
3.50
6.50
2.75
1.55
1.75
Gas Fire Suppression Systems (2017 Pricing
Basis): Includes storage of gas / bottles and rack
and distribution piping system: based on a 4 floor,
257,000 SF Facility – Computer - Administration.
The gas is argon – nitrogen / FE - 241 / FM - 200 /
(non-ozone depleting- inert gas, not Halon or C02).
Cost per Cubic Yard / M3 of area to be suppressed (2017 Pricing basis):
• Up to 1,000 Cubic Yards / 765 M3 $66 - $83 /
Cubic yard - $86 - $109 / M3
• 1,000 - 2,500 Cubic Yards / 1,530 M3 $62 $80 / Cubic yard $81 - $105 / M3
Copyright © 2017 Compass International, Inc.
Labor Man-hours to install various
electrical items:
SWITCHGEAR – MOTOR DRIVES
MAN-HOURS
1 – 5 HP
10 – 25 HP
25 – 50 HP
50 – 100 HP
4.5
8
12
17.5
Man-hours to install 1,000 LF of Conduit:
DIAMETER
MAN-HOURS
0.50” diameter
0.75” diameter
1” diameter
2” diameter
82 man-hours
104 man-hours
124 man-hours
144 man-hours
Man-hours to install 1,000 LF of Cable:
#
MAN-HOURS
# 14
# 12
# 10
# 8
10.2
10.8
12.3
14.5
Fire Sprinkler Systems: For chemical / manufacturing type facilities on 2 or more levels: Based on
10,000 SF includes CS Schedule 40 4” diameter
headers, 2” and 1” branches and heads: 2011 Cost
Basis.
• Includes: hangars, excludes holes through
floors and walls, excludes painting
• See chart next page.
OOM pricing for overland pipeline cost per M
and LF: Includes burial, wrapping /tapping, backfilling and testing: 2017 Cost Basis:
• Excludes river and road crossings, extensive
rock ripping, pumping stations, detailed design and
construction management
• See chart next page.
SECTION A4 | 157.
Fire Sprinkler Systems
FOR CHEMICAL / MANUFACTURING TYPE FACILITIES ON 2 OR MORE LEVELS
REF # SYSTEM TYPE
MATERIALS
LABOR
TOTAL COST
1
2
3
4
5
6
7
$3.70
$1.70
$3.12
$2.00
$3.60
$46.00
$70.00
$5.00
$3.00
$6.00
$3.80
$6.10
$34.50
$52.50
$8.70
$4.70
$9.12
$5.80
$9.70
$80.50
$122.50
Deluge System
Wet system (light hazardous)
Ditto (extra hazardous)
Dry system (light hazardous)
Ditto (extra hazardous)
Wet standpipe system 4” diameter vertical
Ditto 6” diameter vertical
Miscellaneous Piping Units
2017 COST BASIS
PIPING VALUES
TON
AVERAGE VALUE
Material Cost (CS - A53)
Fabrication Erection $3,820 - $5,400
20 – 40 hours per ton
100 – 200 hours per ton
$4,610
30 hours per ton
150 hours per ton
OOM PRICING
For overland pipeline includes burial wrapping
and B / Fill
DIAMETER
$ COST PER M
$ COST PER LF
6
8
10
12
14
16
18
20
24
$130
$165
$210
$260
$290
$325
$390
$480
$520
$40.00
$50.30
$64.00
$79.30
$88.40
$99.10
$118.90
$146.35
$158.60
Adjustments:
• Detailed Design / Engineering add 2.5% - 5%
• Construction Management add 1% – 3%
• Rock excavation $25 – $50 / LF
• Road crossing and reinstall $12.50 - $35 / LF
• Road crossing thrust bore $18 - $75 / LF
• River crossing $40-$110 / LF
• Off-shore application multiply by 1.50 – 2.75
As was stated earlier, the skill – set of a cost
engineer / estimator are many, to be successful he
or she require a good appreciation of the construction cycle. It helps greatly to have had field experience. The individual must understand all elements
of the “Engineering, Procurement and Construction” (EPC) big picture, construction practices,
computer skills, manpower productivity / production knowledge – compared to say known locations
(i.e. Gulf Coast or North West England), basic and
detailed engineering concepts, value engineering
basics, contractual arrangements (terms and conditions – types of contracts utilized in the construction
marketplace), time management / speed, accuracy,
persistence, and ability to roll up his or her sleeves
and do what is required to get the job done are other
necessities of this profession in addition to an honest sense of judgment and a bias toward orderliness,
(it’s a demanding job !!!, someone has to do it and
the rewards are reasonable). The profession of Cost
Estimating / Project Controls is gaining momentum
both from career prospects (stepping stone to upper
Copyright © 2017 Compass International, Inc.
158. | SECTION A4
management) and remuneration rewards. A good
/ competent estimator is hard to find, all the good
ones are usually gainfully employed, the salary
expectations have increased significantly in the last
five years or so and although not the most glamorous
of jobs (i.e. the picture of a cost estimator is a guy
or gal in the back room with a eye shade crunching
numbers – this of course is not the case). There will
always be a demand for competent cost estimators in
the foreseeable future.
Copyright © 2017 Compass International, Inc.
SECTION A5
Site Selection Criteria /
Capital Cost Estimating Data
SOURCES & ESTIMATING CHECKLIST
T
he compilation of an early front end / con• A/E – EPC – CM costs and activities
ceptual cost estimate (CAPEX) is the first
• Profit and Overhead
part of interrelated engineering activities
• Escalation and Contingency
in the projects life cycle; the end result is
The extent and magnitude of each of the above
to convey the estimated EPC cost of the
cost items (estimate line items) of course, is depenproposed CAPEX project to the business owner or to dent in many ways on the complexity of the prosenior corporate management. This database focuses posed facility, physical size and location (remote or
primarily on the compilation of CAPEX estimates.
easily accessible) of the proposed CAPEX project,
The challenge the individual compiling an early
the cost of labor and materials, together with the
phase CAPEX estimate is to accurately capture the
construction approach, the anticipated productivity
final costs of the following activities (of course there that the workforce will achieve and the date when
may be additional activities that need to be estithe project is needed by its eventual facility user. The
mated).
CAPEX estimate basically deter• Major Equipment / Freight /
mines the projects’ cost budget. As
Major Equipment setting
This particular section deals the detailed design effort is com• Demolition / Relocation of
primarily with Site Selecpleted and more project “data” is
Production Equipment / Refurbish- tion, Estimating Data Sourc- established, additional CAPEX esment activities
es and provides a detailed
timates will be compiled during the
• Excavation / Foundations /
Estimating checklist.
projects’ life cycle to ensure that
Concrete / Flatwork / Formwork
the project budget is maintained.
and Rebar
This particular section deals primar• Underground and above ground services and
ily with Site Selection, Estimating Data Sources and
utilities
provides a detailed Estimating checklist.
• Structural Steel / Platforms
• Buildings / Pipe work
SITE SELECTION CRITERIA AND
• Electrical / Instrumentation / BAS / BMS
BUSINESS DECISIONS:
• Insulation / Refractory / Painting
The typical approach regarding site selection is that
• Off sites (work outside the facilities footprint
a steering committee made up of senior management
– roads, rail spurs, piping, electrical work, product
– line staff from Finance, Sales, Operations, R&D
loading areas etc.)
and Engineering will be established to determine a
• The procurement of major equipment and mafuture path forward related to the new product or a
terials (Bulk and Engineered)
new facility, topics that will be covered are as fol• Construction Labor / Construction Equipment / lows:
Field In-Directs / Supervision
Copyright © 2017 Compass International, Inc.
160. | SECTION A5
• Need for new product or expansion of current
lection Criteria Report. The individuals / team that
product identified.
would produce this work effort include: Corporate
• Decisions on where to locate new facility: in
Engineering staff, a Project Manager, Legal assisNorth America, Europe or in some other overseas
tance, Purchasing, Realtors (possibly if new facility
location (possibly closer to future markets).
is required), R&D staff, Operations / Facilities Man• Size of facility, configuration, operating phiagement staff, Human Resource staff, Finance staff,
losophy, future expansion considerations and flexEstimating staff, perhaps the services of a third party
ibility (could “modules” be sent to other operating
A/E firm, this task force typically would be charged
locations).
with coming up with a recommendation in perhaps a
• Existing facility / site – can a current site acperiod of 8 –12 weeks. Research and topics that need
commodate new facility, can existto be evaluated include some or
ing buildings be reconfigured, is
all of the issues above and posthe current infrastructure capable of
sibly more. When these decisions
Usually,
because
the
project
such a significant expansion? Yes
/ questions have been addressed,
is so complex and the cost of
or No.
the business leadership typically
the
future
investment
is
so
• New Location – closer to
will approve a partial release
significant
to
the
business,
marketplace, new staffing needs
on the project (say - $0.50 – $ 2
the steering committee will
(where will they come from), new
Million) typically 1% to 2.5% of
bring
in
the
expertise
of
key
utilities (can we obtain them or will
the project budget for the services
individuals to process this
we have to produce them), new
of an Architectural / Engineering
Site
Selection
Criteria
facilities, training issues, quality of
firm (A/E) - Engineering firm
Report.
life issues, community dedication
(EPC), for a front end concept
to new facility and employment
study, this will allow some conopportunities, government help or
ceptual engineering to take place,
interference, can we get grants / special treatment for another important and key deliverable will be an
locating a large number of employees into this com- additional cost estimate, this will be compiled by an
munity? Yes or No.
A/E - EPC firm when the design concept is 5 – 10%
• Land and Construction cost issues (see above). complete (of the final construction / engineering deThis will serve as the initial Owner Budget (the
liverables). So this second estimate is basically used
more detail that can be provided with this estimate,
to confirm the owners “first” initial cost estimate. If
the more realistic the cost estimate will be). Many
the cost estimate / economics are still positive, the
times the site selection study might include 3 – 6 dif- project will be partially or fully funded and allowed
ferent locations, some in the US and some overseas. to proceed. Topics that should be considered in this
• Project timing needs (normal construction apfront-end concept study include:
proach, fast track, or full speed ahead – damn the
• Scope of Work Statement of the “total” project
torpedoes we need to beat our competitors to the
• Site-specific considerations
marketplace – money is not the main consideration,
• Future sales of product established (partial
getting the product into stores ASAP is the main
funding need for some Front End engineering /
driver).
analysis required)
Usually, because the project is so complex and
• Best location for product manufacture locathe cost of the future investment is so significant to
tion determined (i.e. close to raw materials / close to
the business, the steering committee will bring in the future or current marketplace)
expertise of key individuals to process this Site Se• Codes and standards to be considered
Copyright © 2017 Compass International, Inc.
SECTION A5 | 161.
• Environmental issues
ment report, any preliminary engineering reports,
• Operating philosophy (365 days a year and 24
any Property Conditions Assessments (PCA), a mahours a day, or 8:00 AM to 6:00 PM
jor equipment list (priced out where possible), any
• List of Major Manufacturing / Equipment
Process Flow Diagrams (PDF’s), any modular / preneeded in new facility.
assembly assessments and studies, facility / building
• Size / Footprint of Facility – Plant
sections and elevations, together with any blocking
• Size of land / property requirements i.e. facility diagrams showing location of current new facilities.
needs 10 acres to adequately support new facility
Capital cost estimating is at best an inexact
• Room Sizes / Conceptual Architectural Finactivity, collecting and forecasting the significant
ishes
variables such as, weather, labor productivity, labor
• Warehouse / storage requirements
costs, material costs, major equipment etc. is a dif• Services / Utilities / Energy
ficult undertaking. Hopefully
requirements (water, gas, waste
some of the data contained in this
The
Site
Selection
Critewater and electricity)
publication will be beneficial in
• Layout of main roads and pos- ria and Business Decision
future front-end estimating ef(Front End Study) should
sible rail requirements
forts.
perhaps
come
up
with
2
or
• Headcount of future personnel
Capital Cost Estimating to
3 locations for senior man/ staffing requirements
be “accurate” requires the skill
agement to consider and
• Layouts of Major Equipment
set of analyzing and forecasting
to make the final decision
and Utilities
the future costs as they relate to
on where to locate the new
• Facility Control Philosophy
engineering and of course confacility.
• Cost Estimate +/-25%
struction activities.
• Project Schedule RecommenThe forecast of a capital
dations / Considerations / Major
projects final cost value involves
Milestones to complete facility
looking down the road:
The Site Selection Criteria and Business Deci1. An analysis of past data and trends, think of
sion (Front End Study) should perhaps come up with recent events such as the oil crisis in the 1970’s and
2 or 3 locations for senior management to consider
2008, the 9 / 11 WTC terrorist attack in 2001, the
and to make the final decision on where to locate
second Gulf war, the general worldwide economic
the new facility. After conclusion of this front-end
downturn of the last two or three years and the
report, if the project is released for execution, the
“knock on effect” have had on business and prices.
owner will enter into a contract(s) for detailed design Also consider the ramifications of crude oil costs
and construction management services. Typically
that have recently exceeded $140 a barrel in mid
the construction manager or the owners estimat2008, only to fall back to a projected $35 - $40 in
ing resources will compile a number of estimates to
2017.
confirm and control the cost of the future facility,
2. Calculating / fine tuning this data, together
during the Engineering, Procurement and Construcwith current latest data and forecasting future develtion (EPC) effort. To produce an accurate front end
opments / risks into the near future (say 2 or 3 years
/ conceptual estimate some engineering data will
or possibly longer). Consider oil price spikes, shortmany times need to be produced, this includes:
ages of key materials and construction professionals.
A scope of wok statement, a site development
3. Calibrating, fine tuning the CAPEX estimate
layout or plan – indicating the utilization of the
to allow for possible future trends to compensate
property, any boring logs, an environmental assessfor any reasons likely to cause deviations from the
Copyright © 2017 Compass International, Inc.
162. | SECTION A5
current and future knowledge of the marketplace,
this includes future strikes, disruptions (think of
what is happening in certain West African countries
where production facilities have been sabotaged
and expatriates have been kidnapped. Consider also
future escalation / inflation and possible future labor
increases.
The objective of this section is to provide the
reader with information / data sources specific to
acquiring historical and current cost data specific
to the Engineering, Procurement and the Construction (EPC) effort required to complete “chemical /
process” CAPEX capital project(s).
The majority of general sources of engineering
/ construction - related economic data are provided
by various specific country government organizations (i.e. The US Commercial Service and other
similar agencies). Some professional societies have
presented technical / guidance papers and provide
some insight into global construction costs – some
of these professional societies are listed later in this
section, trade groups and trade / business publications and specialist cost / estimating consultants are
other good sources for this data. Other forms of cost
data are completed project close out reports, historical performance databases / “in house” cost record
systems and of course annual estimating databases
similar to this publication.
The following is a listing of general data / cost
indices / information sources specific to capital cost
estimating. The selling price of equipment, material
and services change ad infinitum because of new
technology advances, product availability, annual
cost increases this is known as, escalation or inflation. A number of cost indices have been developed
to maintain / measure cost changes. Some frequently used indices are:
CAPITAL COST ESTIMATING DATA – PROVIDERS
/ SOURCES / ANNUAL DATA PUBLICATIONS:
There are a number of capital cost estimating data
providers in North America / Europe these include:
• BNI
Copyright © 2017 Compass International, Inc.
• Compass International
• Laxton
• Marshall & Swift
• R.S. Means
• Walker Publications
• Spons (UK publication)
Cost Engineering Data for possible use Process /
Manufacturing Industry - Historical Cost Index’s
/ Indices
• Dodge Building Cost Index
• U.S. Bureau of Labor Statistics indices
• R.S. Means & Co Construction Cost Index
• Compass International Cost Data Index
• George A. Fuller Company Index
• ENR Cost Index / Construction Economics
• American Appraisal Company Index
• Nelson – Farrar Refinery Cost Index
• Chemical Engineering Index (Magazine), McGraw Hill, New York. N.Y.
(Chemical Engineering Plant Cost Index)
General Economic Data (North American and
International)
• The Economist. London, U.K.
• Wall Street Journal, Dow Jones, New York.
N.Y.
• The Financial Times, London, U.K.
• Le Monde, France
• International Herald Tribune, Paris, France
• Frankfurter Allgemeine, Germany
• Financial Post, Toronto, Canada
• Melbourne Age, Australia
• The Daily Telegraph, Calcutta, India
• Japan Times, Tokyo, Japan
• South China Morning Post, Hong Kong
• Thomas Register of American Manufacturers,
Thomas, New York, N.Y.
• Chemical Equipment, Cahners, Morris Plains,
N. J.
Construction Industry / Magazines / Publications: The following are two “general construction”
SECTION A5 | 163.
related magazines that can be helpful in providing
cost data / historical data for future CAPEX estimating efforts:
• Engineering News Record (ENR)
• Building (UK)
meeting. Subsequent to the range of capital cost estimating methods / techniques earlier described have
been completed, a number of other important topics
/ issues must be reflected on and evaluated upon to
finalize the total capital cost estimate or bid. These
issues could include:
Professional Associations and Societies: The fol• Estimate basis (inclusions / exclusions / drawlowing is a listing of USA and international “cost”
ings with latest revision and date / specifications
related professional organizations that can be helpful used in the estimating effort)
in providing cost data for future CAPEX estimating
• Bulk material quantities (how were these deefforts:
termined)
• Australian Institute of Quantity Surveyors
• Quality of scope document
(AIQS):
• Specific project risks
• The Association of Cost Engineers (ACostE)
• Undeveloped engineering / scope
(UK):
• Evaluation of the quality of the engineering
• American Society of Profesdeliverables upon which the capisional Estimators (ASPE):
tal cost estimate is based
• Canadian Institute of Quantity Is the capital cost estimate
• Specifications to be used
Surveyors (CIQS):
(industry standard or owner procomplete and reflective of
• Association for the Advanceduced specs and standards)
the scope of work document
ment of Cost Engineering Interna• Bidding climate / competior bid package the client or
tional (AACEI) US based:
tors
engineering firm has
• The Dutch Association of Cost provided?
• Labor productivity basis
Engineers (NAP / DACE):
• New technology
• Royal Institution of Chartered
• Validity of bid 30 days or
Surveyors (RICS): UK based:
90 days
• Society of American Value Engineers (SAVE):
• Current market conditions
• Political outlook
ESTIMATE REVIEW REQUIREMENTS / ASSESS• Hourly rates for engineering / procurement and
MENT OF THE COMPLETED CAPITAL COST
construction
ESTIMATE AND CALIBRATING TO INTERNAL /
• Engineering / estimating errors
EXTERNAL INDUSTRY “NORMS” AND MANAGE• Engineering / estimating omissions
MENT APPROVAL:
• Currency exchange rates
A management review of a Capital Cost Estimate
• General contingencies / resolution factors
be it a Front End, Preliminary / AFE or Lump Sum
• Project approach, Design build / lump sum /
tender submission can be thought of as a series of
GMP / fast track
questions and answers posed to the estimating team
• Take off allowances
responsible for the CAPEX estimate. The most
• Cost impact of T & C’s
important question to be asked is of course is the
• Overtime / shift work allowance
capital cost estimate complete and reflective of the
• Warranty costs
scope of work document or bid package the client or
• Consequential damages
engineering firm has provided? This is “the” ques• Bond requirements
tion that needs to be tabled at the estimate review
• Performance guarantee
Copyright © 2017 Compass International, Inc.
164. | GENERAL NOTES
• Design growth allowance / resolution allow• How was the demolition cost determined?
ance
• Civil / site works, cost per acre
• Profit margin
• Concrete, cost per CY / M3, pounds / kg of
• Payment terms 45 days (finance costs)
rebar included in the concrete unit cost, SF of form• Incentives from state / host country
work used in concrete unit cost
• Import duties, taxes, VAT
• Structural steel, cost per ton
• Penalty clause / liquidated damages
• Major Equipment / Processing – Chemical
• Escalation / inflation rates should be consid– Manufacturing Production Equipment. Cost per
ered and compiled in relation to long lead equipment piece of M.E.
purchases, labor and material categories.
• Piping, m / hs per LF /M or man hours per ton
• A detailed risk analysis should be conducted
• Instrumentation / controls, cost per bubble /
with the key project “players” to determine what
device, cost per I/O
level of accuracy is required based on the goals of
• Electrical work, cost per SF / M2 or per H.P.
the project
• Painting / insulation work
• Plus many more project specific situations
• How was the fire protection cost determined?
After these topics / issues have
• General buildings unit costs
been discussed / modified /agreed
cost per SF / M2
to and if necessary missing scope
• Off sites, how is this esThese metrics must be
items have been discovered and the judged against related /
timated, percentage method or
errors have been incorporated into
based on complete take-off
similar capital projects
the capital cost estimate, the capital (refer to section A - 3
• Execution approach is the
cost estimates “correctness” should Estimate Review sheet(s).
project fast track, is overtime
be confirmed by an independent
included / shift work
audit / benchmark comparison,
• How was the detailed dehopefully by (an in house expert)
sign cost determined?
or by a third party / outside expert. Sometimes this
• How was the construction management cost
situation is not feasible due to time constraints and
determined?
economic factors; this is typically done by owner
• How were the escalation / contingency / mancompanies when reviewing an estimate from an EPC agement reserve costs determined?
firm. The benchmarking review / audit / validation
• How was the sales tax cost determined?
effort is initiated by comparing major project cost
• How was the plant hire / construction equipelements for example, ratio of major equipment to
ment cost determined?
total installed (is it 4.0 times the major equipment
• How was the equipment maintenance cost
or 5.0 times or 6.0 times), engineering costs per
determined?
piece of major equipment, engineering man hours
• How do the material to major equipment and
per piece of major equipment, labor and bulk matethe same with the construction labor ratios look to
rial estimated costs / percentages V’s typical norms
similar projects?
/ ranges for the process industry, cost of concrete
This benchmarking data should be collected and
per CY / M3, man hours per LF / M of process pipe
calibrated for all future capital cost reviews. These
etc. Refer to section A 3 Estimate Review sheet for
metrics must be judged against related / similar capiexamples of this benchmarking data.
tal projects (refer to section A - 3 Estimate Review
After this activity if time is available: Key projsheet(s). For examples of this and the ratio / percentect elements such as:
ages and general capital cost estimating standards
Copyright © 2017 Compass International, Inc.
SECTION A5 | 165.
and guides previously mentioned to make certain
that the capital cost estimate is reflective as much as
possible to the current scope of work statement and
is in line with the companies “historical” installation norms be they in-house estimating standards or
external estimating standards.
Following these benchmarking reviews / auditing / validation activities the capital cost estimate is
ready to be approved by upper management. This
document, this “completed” capital cost estimate,
together with the milestone schedule and a narrative of the “basis of the estimate” will be issued
to management, many times management will ask
more questions during their review. These questions
many times will prove to be useful and in fact will
be a QA / QC tool; they can serve to improve the
accuracy of the capital cost estimate and in addition
ensure that the historical company data base is accurate / useful and is being used in the manner it was
established for. If the capital cost estimate is a lump
sum bid then this will be the baseline document for
future change orders and possible future claims, it is
imperative that this “basis of estimate” is adequately
documented and described.
ORGANIZATION / CODE OF ACCOUNTS (C.O.A.)
- WORK BREAKDOWN STRUCTURE (W.B.S) OF
COSTS REPORTING
Capital cost estimates have to be arranged in accordance with a pre-established cost code accounting
structure (code of accounts C.O.A. or sometimes
referred to as work breakdown structure W. B. S.),
typically each owner company has their own system
that they have established over the years for collecting costs and expenditures. The C.O.A. / W. B. S.
serves as a project control tool for data collection
related to estimating, scheduling, cost control, accounting and purchasing. The capital cost estimate
should be compiled for example in a system / format
indicated below or similar. Review of the project’s
budget, forecast to complete, expenditures and
commitments and performance is then reasonably
straightforward and can happen on a pre-determined
schedule. The following is the Construction Specification Institute (CSI) Code of W.B.S. / C.O.A. /
Breakdown (note this example is based on the C.S.I.
16 division format.
DIVISION NO.
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
WORK ITEM
General Requirements / General Conditions /
Preliminaries
Site Construction
Concrete
Masonry
Metals
Woods / Plastics
Thermal / Moisture Protection
Doors / Windows
Finishes
Specialties
Equipment
Furnishings
Special Construction
Conveying Systems
Mechanical
Electrical Systems
Below are a typical Industrial / Process facility
- C.O.A. / W.B.S. that is described in more detail in
Section B 2.
A. Major Equipment (M.E.)
B. Installation of M.E.
C. Freight
D. Site work
E. Civil / Concrete
F. Structural Steel
G. Facilities / Buildings
H. Piping
I. Electrical
J. Instrumentation / Controls
K. Insulation / Heat tracing
L. Painting
M. Roads and Concrete Paving
N. Minor miscellaneous
O. Off-sites
P. Construction Equipment / Fueling / Maintenance
Q. O / H and In-directs / Field In-directs
Copyright © 2017 Compass International, Inc.
166. | SECTION A5
R. Engineering / CM / Validation / Start-up
S. Contingency
T. Escalation / Currency Impact / Taxes /
Import Duties (could be included with (C)) above /
Grants / Incentives
U. Spare Parts / Vendor Assistance / Client
Costs / Training / Expense items
V. Other items, such as Land Purchase, Finance
Costs etc.
W. Owner Costs / Owner Provided Equipment
(OPE)
The following gives an illustration of various types of work description / code of accounts
(C.O.A.) categorized by types of construction, this
format can be used in establishing and setting up the
estimating structure during the estimating effort.
SAMPLE / REPRESENTATIVE CODES OF
ACCOUNT (C.O.A.) WORK BREAKDOWN
STRUCTURE (W.B.S.):
• See chart at right.
• (E) Possible expense items.
HISTORICAL / COST DATA / FEEDBACK
A construction project is unfinished until the site is
de-mobilized and the outstanding punch list is fully
completed. Change orders, final accounts, release of
liens, retention release, handover of O/M documents,
claims, back charges, certificate of occupancy must
be fully completed before a project can be fully
“deemed” completed. The actual costs incurred, at
various job sites, i.e. the man-hour production rates,
material unit prices, labor rates, major equipment
costs should be fed back from the field to the cost
estimator / engineer, this cost data could be divided
into two categories.
• The actual cost data information (the raw
data), what it actually costs.
• Related information regarding specific productivity / difficult conditions, down time related to
weather conditions or strikes, special construction
equipment used, shift work and any overtime work.
This second category can assist in explaining why
Copyright © 2017 Compass International, Inc.
COA / WBS NO.
00.XXXX
00.5000
00.6000
00.7000
01.0000
01.5000
02.0000
03.0000
03.5000
04.0000
20.0000
20.0500
20.1000
20.2000
20.2100
20.XXXX
30.0000
30.5000
40.0000
45.0000
50.0000
55.0000
57.0000
60.0000
61.0000
62.0 – 79.0
80.XXXX
81.0000
82.0000
83.0000
84.0000
84.5000
85.0000
86.0000
87.0000
88.0000
90.XXXX
91.0000
92.0000
93.0000
93.5000
94.0000
94.0500
95.0000
96.0000
96.2000
96.5000
97.0000
98.0000
99.0000
99.5000
99.6000
99.7000
100.0000
101. -199.
200. - 500
700. - 1000
WORK DESCRIPTION
FIELD DIRECT COSTS
Demolition work (E)
Asbestos removal (E)
Rehab of existing facilities (E)
Site Work
Piling
Concrete
Structural Steel
Platforms
Buildings
Major Equipment
Major Equipment setting
Agitators
Blenders
Emulsifier
OTHER EQUIPMENT
Piping
Valves
Electrical
Instruments
Painting
Insulation
Fire Protection
Vendor Assistance
Other
Other Categories
FIELD INDIRECT COSTS
Temporary Construction Facilities
Permits / Testing / Surveys
Field C.M. Staff
Equipment Rental
Equipment Maintenance
Small Tools
Consumables
Commissioning / Start up activities
Other
ENGINEERING OFFICE COSTS
Project Management
Engineering
Design
CAD operations
Home Office Construction
Inspection services
Purchasing / Contracts
Estimating
Value Engineering
Planning
Project Support Services
Profit / Fee
Various Taxes
Future Inflation
Contingency
Other
TOTAL PROJECT COST
Grants / Incentives
Other Project Related Items
Operating items
SECTION A5 | 167.
certain costs / benchmarks are high compared to
ed and incorporated into the completed CAPEX esindustry standards. There may be a reason that our
timate. As you would expect, all costs related scope
benchmark for installing pipe is 25% above indusof items must be painstaking considered / estimated
try norms, fabricated at site using overtime to play
and included in the final CAPEX estimate.
catch-up.
To be consistent from one project to the next a
This data should be categorized by the type of
detailed capital cost estimating checklist is indisfacility it is, i.e. Sulfur Recovery Unit, Amine Plant
pensable and crucial for this ongoing work effort. It
and Research Laboratory expansion etc, location,
is suggested that the cost estimator / engineer utilize
union, non union or merit shop, revamp or new
this list as a starting point and future tool in developwork, this plus the collection of magazine articles,
ing an “all encompassing” capital cost estimate and
cost data books and any technical papers. This data
as a means for extracting the intent / definition that is
collection will greatly enhance the company’s capiindicated / depicted in the scope of work, drawings
tal estimating tools and could give the company a
and specifications. The subsequent checklist should
competitive advantage in the future.
provide a roadmap to the cost
Prior to the commencement of the
estimator / engineer in assesscapital cost estimate effort, it is
ing the cost values / budgets and
To be consistent from one
essential that an estimating plan /
allowances needed for capital
project to the next a deresponsibility matrix is established
engineering / construction related
tailed capital cost estimattogether with the crucial dates of
project(s). Using this list and
ing checklist is indispenswhen key estimating related activipossibly taking it to the proposed
able and crucial for this
ties need to be completed. The cost
project site should prove benefiongoing work effort.
estimator / engineer should play an
cial. As mentioned before, the
important role / part in the site incost engineer / estimator should
vestigation effort. He or she should
where possible visit the proposed
become cognizant with the scope of work, potential
site and endeavor to make a video tape recording /
make-up of the bid package(s), drawings, specificaor as a minimum take photographs to supplements
tions, general conditions (preliminaries) and bidding notes and a condition assessment of the project site,
instructions and the estimate / proposal due date.
or make detailed sketches of general areas when
Prior to commencing the site investigation and in or- photography is not allowed as is sometimes the case.
der that they can appropriately communicate actual
Items to research and check on at the site inphysical conditions to other individuals involved
clude:
with the capital cost estimating / proposal / engineer• Buildings / Facilities / Areas to be demolished
ing effort. Inestimable cost related items in a new or / revamped.
revamp CAPEX E.P.C. project are not incorporated
• Extent of site, entrance points, these will be
or mentioned in the scope of work statement, specinecessary to gain access to the site and to perhaps alfications or indicated on the drawings, (just think
low wide pieces of major equipment or construction
about where are the in-directs mentioned, where is
equipment to get onto the site.
the construction equipment spelled out, where is the
• Hazardous materials removal i.e. asbestos or
freight and vendor assistance documented – (many
lead paint.
times its not)? These work items are however re• Existing buildings / facilities should be required in the execution of the project. It is the cost
viewed, especially if the scope calls for modifying
estimators / cost engineers charge to ensure all these these existing facilities.
countless items are “scoped out” evaluated / estimat• Review Off site facilities, O.S.B.L. work (pip-
Copyright © 2017 Compass International, Inc.
168. | SECTION A5
ing, utilities, any other items that will need to be
estimated).
• Existing fences, existing and proposed access
roads.
• Review potential lay down areas / temporary
offices / trailer locations / warehousing areas.
• Evaluate existing pipe racks and any other key
elements / tie in points / features of the site that will
influence / impact material handling; minimize construction equipment usage, influence labor productivity and much more.
• Consider schedule issues, i.e. fast track construction, utilizing overtime, and shift work, weekend work schedules if deemed necessary.
It is the Cost Estimators / Cost Engineers role
to ensure that the following activities are compiled
prior and during the capital cost estimating effort.
1. Compile a list of work to be estimated, by
W.B.S or by possible bid package.
2. Gather / collect all related engineering deliverables / estimating data, i.e. major equipment, piping, instrumentation lists, drawings, specifications
and any as-built drawings etc.
3. Determine which work elements will be sub
contracted. (This will many times need the guidance
/ input of senior management)
4. Determine all direct / indirect cost items.
5. Consider profit / mark up / contingency / risk
items.
6. Consider the establishment of the “basis of
estimate”, i.e. exclusions and qualifications.
The following list includes numerous topics /
items / questions. The list is not intended to be complete, consider it a “work in progress”, that should
be added to on a regular basis, or every couple of
years.
PROJECT UNIQUE CONDITIONS
• Complex chemical / manufacturing process,
requiring significant process control systems
• Modernization / revamp or new construction
• Working inside an ongoing manufacturing
facility
Copyright © 2017 Compass International, Inc.
• Quality of engineering deliverables
• Productivity issues related to congested /
crowded work area or working in an existing production facility
• Union / Non Union work force
• Poor or well defined scope definition
• Schedule normal or fast track construction effort
• Permitting issues and requirements
THE CHEMICAL / MANUFACTURING PROCESS
• Types of chemicals / materials produced (hazardous, toxic etc.)
• Storage capacity of plant, warehouse, storage
tanks, JIT considerations.
• Means of transportation of raw / finished
product, railroad car, truck, ships, barge, pipeline or
conveyors
• What is the new plant production capacity,
should future expansions be planned for?
• What are the project’s products are there any
problematic by-products?
• What level of completeness are the P. F. D.
’s / P. & I. D. ’ s, utility flow sheets / equipment arrangements / layouts, equipment and material specifications?
• Continuous process / batch process 24 / 7 / 365
operation
• Worker protection (bunny suits, air packs, any
classified areas).
ENVIRONMENTAL ISSUES
• Who is responsible for project related permits?
• Has a Project Condition Assessment (PCA)
been compiled?
• Do we know if the project has asbestos, lead
paint or mold conditions?
• Has Environmental Impact Statement required,
has it been prepared and submitted to the appropriate
federal / state authority?
• Are any out of the ordinary pollution monitoring / control measures required?
SECTION A5 | 169.
SPECIFICATIONS / CODES
• Which specification standards will be used
Owner’s specifications, CSI or EPC Contractor’s.
• U.S Codes or international i.e. German
(D.I.N.) or British (B. S.) European specifications
etc.
• Metric / Imperial measurement system.
PROCUREMENT – CONTRACTING ISSUES
• Which organization will purchase the engineered bulks and commodities?
• Are we able to purchase equipment and bulk
materials close to the jobsite?
• What is available locally / experience with local vendors and sub contractors?
• QA / QC requirements, can these requirements
be achieved by the local vendors / suppliers?
• Any owner involvement / owner provided
services / equipment items?
• What are the owners warranty needs and
requirements / is there any unusual warranty requirements / performance guarantees?
• Any long lead delivery items, what is the
status of this, are we responsible for inspections,
witness testing?
• How will we handle warranty issues – how
long a warranty period would be beneficial to the
project, how will we handle factory visits / inspections?
• What are the storage / protection requirements
specific to the long lead equipment items and locally
produced equipment / materials?
• Terms and conditions, warranties, what spare
parts are required, Owners T & C’s or EPC firms T
& C’s?
• Any special contractual terms or conditions
required?
• Availability of qualified sub-contractors / vendors, is client imposing preferred vendors that we
must utilize?
• Insurance issues – how will we handle, property damage, workers compensation, public liability
insurance, BAR, fire, and umbrella insurance needs?
• Will a concrete batch plant be needed, concrete delivery trucks, concrete pumping equipment,
were would the cement, stone and sand come from?
• Coordination procedures; which organization
will develop these and when?
• Will purchasing be carried out at the site or
from a home office?
• Any special taxes or import duties required B
& O taxes
• Is vendor assistance / start up costs required
with this CAPEX estimate?
• Will modular / pre-assembly construction
methods be utilized?
• Will piping systems be fabricated on site or
off-site?
• Testing obligations, what are these requirements?
• Types of contract, lump sum, GMP or unit
price
GENERAL DATA - GEOGRAPHIC INFORMATION /
CLIMATIC CONDITIONS
• How many days do we expect / need to estimate for work stoppage due to snow, rain or heat?
• What is the average depth of frost penetration,
do we need to heat concrete in winter months?
• Purchase / get hold of city / state maps indicating overall major and minor roads, railroads, ports
and airports. Does any temporary roads need to be
constructed; do they need to be removed at the conclusion of the CAPEX project?
• Become aware of the population of each local
town / get copies of local telephone books, yellow
pages, bring back to office if possible.
• For site work / excavations, what types excavation equipment will be needed for excavation and
removal off site, how will equipment be transported
to the site, will we need to set up a maintenance
shop on site to maintain and repair this construction
equipment?
• Planking and strutting, will sheet piling / timber shoring be needed for deep trenches and other
deep excavations, where will surplus excavation
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170. | SECTION A5
go to, on site or an off site location, do tipping fees
need to be evaluated.
• Find out if any part of the site is a fill area. If
this is the case, plot / grid out its location and describe the type of fill required, existing or imported
and where the imported fill will it be obtained. If imported fill material is required, where is its sources
(borrow pit) located? What does it cost, do we have
to set up a temporary facility, does fill material need
to be consolidated to high tolerances - 95%?
• Look at geological and subsurface data (rock,
water table, running sand, underground foundations)
contact local consultants if time permits, have 2 or 3
trial pits dug to see initially what the soil characteristics are.
• Be aware of the existing water run off / drainage system for the area.
• Obtain the point of view of the local community to the “project” and future local zoning project
issues, are any new houses needed to house future
operators?
• Other industry / similar plants in the local area,
converse with individuals associated with these
plants; find out what problems they encountered.
• Environmental restrictions / environmental
impact study; are they required?
• Cost out required permits, Local Township,
Building, Elevator, Pollution control / treatment requirements. Noise, State, Federal any other permits
needed such as fire marshal.
• Consider any consequences of delays in obtaining local / state permits; this is a major risk item that
needs to be evaluated.
• Brainstorm ideas related to alternative site
location(s) in local area / adjacent or closer to main
highways and utility sources.
• Will de-watering of the excavations be required, how would this be done?
• Is engineered material / imported fill required,
stone, crusher run, topsoil etc, will water tankers /
trucks be required to minimize dust on temporary /
permanent paved area’s / roads?
• Will a temporary construction sewer / drainage
Copyright © 2017 Compass International, Inc.
system be required, will this have to be removed at
project completion?
• Get hold of minimum – maximum temperature, rainfall, and snow averages by month; this will
impact the start date of deep excavations.
• Is there any overhead electrical lines or other
piping systems / structures that will limit construction operations, i.e. cranes trucks and back hoes?
• Are any on-site areas, office or storage areas
vacant, can we modify them into temporary office
locations; lay down, storage or pre-fabrication areas?
• Is off-site storage required, bonded warehouses
or marshalling area?
• Are any unique facilities called for, for equipment / materials handling, i.e. computerized bar
coding?
• Find out what the distance / transportation
route is from existing public transportation facilities,
bus, railway, airport or port.
• Are there any seasonal limitations / restrictions
/ holidays related to the construction effort that will
slow the construction effort down i.e. (snow / ice /
rain / monsoon / Chinese New Year / hunting season
etc.)?
• Is the existing capacity of harbors and other
material handling facilities adequate, can these facilities support the construction effort, or do we need
to provide additional cranes / forklift trucks / storage
areas etc.?
• Are temporary / permanent access roads / airfields / railroads required, will they be maintained,
removed at project completion, when will they be
installed, who will install them contractor or owner.
• What are the conditions of existing highways
/ roads / bridges / head clearances under bridges /
weight capacity of existing bridges / width of road
etc does any work need to be done on these facilities
that needs to be estimated.
FIELD LABOR TOPICS AND ISSUES
• Will we need to hire a large percentage of third
country nations (TCN’s) because the local labor
force lacks welding and electrical installation skills?
SECTION A5 | 171.
• Do we need to establish temporary housing
camps?
• Will we need to establish a cafeteria / camp to
feed the workers?
• What are the safety requirements for the project
(hard hats – goggles)?
• Will we need to bus the labor force to the jobsite?
• Will we need to buy or rent vans and buses for
the duration of the construction effort, what about
servicing of these vehicles?
• Will we need to erect change rooms for the
workers?
• How will we handle small tools / consumables?
• Make inquiries on the local economic environment with respect to projects effect on wage rates
and worker availability, are any other large construction projects planned?
• Carry out a labor (skilled and unskilled) cost
and availability evaluation, is this a union construction project, obtain the names and location of union
locals / halls in this area, obtain copies of all current
union agreements / obtain current hourly wage rates
/ rate expiration dates, special working conditions,
talk with local union business manager. If this is
an open shop construction project, determine the
prevailing wage structure in the local area by carrying out a labor market survey, can we use merit shop
contractors?
• Meet up and thrash out with local contractors /
state employment departments construction skilled
and non-skilled worker availability.
• Weigh up worker commuting distance that may
limit the hiring of qualified workers, will per diem
costs / travel expense is required, will transportation
need to be provided, i.e. vans or buses?
• Is ample hotels / housing / rental property obtainable in local area for contractor professional staff
members and field construction force, do we need to
pay per diem’s / travel allowances etc to attract suitable workers?
TEMPORARY CONSTRUCTION FACILITIES AND
SITE UTILITIES
• Is temporary water storage ponds required?
• Do we need to establish brass alleys, parking
areas, lay down areas?
• Can we use the permanent housing on the project as temporary housing for the field construction
workers?
• Do temporary facilities such as washrooms,
change rooms and toilets currently exist, will these
need to be established and maintained?
• Is an adequate amount of electrical power
available or will temporary / portable electrical services be required?
• Will there be a need for temporary barricades,
partitions, lights, flagmen and traffic control?
• Field inspection / NDT X Ray testing facilities,
will these be required?
• QA / QC issues how will this be handled?
• Is potable / drinking water available were is
it located and what work is required to bring water
onto the site, what is the cost of this effort?
• Are existing buildings / facilities available for
temporary construction use i.e. storage or temporary
offices, can these facilities be utilized during the
construction effort?
• Can any of the permanent / completed buildings / facilities to be constructed be utilized by the
contractor on a temporary basis during the construction effort?
• Will the contractor be required to provide
temporary storage / office space / services / staff for
owner personnel and future use?
• When the project is complete will the owner
take over any of the contractor’s temporary buildings / facilities / warehouses or must the contractor
remove these temporary facilities at the completion
of the project?
• Which organization provides temporary /
permanent office equipment furniture, computers,
phones supplies, copy machines etc.?
• Do we need to set up and maintain a pipe and
structural steel facility?
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172. | SECTION A5
LOCAL SITE SPECIFIC CONDITIONS
• Are any temporary / permanent roads, bridges
required for the construction effort?
• Will we need to drill water wells; can we use
river water during the construction effort?
• Will any established pipe / structural steel
fabrication facilities be required, will these be left
behind for future facility operations?
• Will we need to establish any fuel storage facilities for refueling construction equipment?
• Will we need to consider the purchase or rental
of helicopters or fixed wing aircraft during the construction effort?
• Is there any likelihood for union / non union
tribulations / sabotage between plant operating
personnel and the potential non union construction
workforce, does contractor need to establish a separate entry gate into the site, is this a ”right to work”
state?
• Are there any restricted / no go areas that the
workforce can not enter (clean rooms, manufacturing areas etc.)?
• Is any winter / dust protection required; are
temporary shelters, visqueen partitions, special
clothing required or specific weather / dust protection to the existing / new facilities?
• Is the new project within an operating plant /
facility, what special working necessities / practices
are required, safety needs (hard hat, safety glasses,
safety shoes), hot work permits and weekly or random drug testing?
• Communication requirements i.e. telephone /
fax / internet / e-mail / walkie-talkies / video conferencing.
EQUIPMENT (CONSTRUCTION) THIRD PARTY
RENTAL
• Will there be any problems mobilizing equipment onto the job site i.e. pipe racks, gates, port
/ ocean logistics, width of roads, bridges height /
length of equipment, overhead electric lines, fence
removal etc..
• Will temporary foundations, hard standings be
Copyright © 2017 Compass International, Inc.
required for heavy lifting equipment (gin poles)?
• What construction equipment will the contractor provide, should we hire / consider local equipment or will contractor owned equipment be utilized?
• Identify unique types of construction equipment the contractor must supply, barges; pipe bending equipment, orbital-welding machines, concrete
pumping, slip forming equipment etc.
• Will construction related equipment maintenance / repairs be handled on-site, how will this be
handled?
• Will we need to establish concrete batching g
plant (silo’s. mixer etc)?
SUBCONTRACTORS, VENDORS AND LOCAL MATERIAL SUPPLIERS
• Obtain names, addresses / telephone numbers
of local vendors, suppliers and specialty construction
sub-contractors. If time permits visit some of these
firms.
• Is there a source of ready-mix concrete nearby,
what is the plants daily production rate, can it meet
our QA /QC specifications, what is its unit price of
various grades of concrete, i.e. 3,000 and 5,000 p s
i.?
• Do we need to consider / establish a facility for
site manufactured concrete and structural steel and
its subsequent removal?
• Will any bar coding requirements be required /
J.I.T. warehousing?
HEALTH, SAFETY, AND SECURITY ISSUES
• Will full time / part time security / guard force
be required, or can we utilize the owners guard
force?
• Will there be a need for a full time safety engineer / manager.
• How will we estimate the field office administration staff, together with copies, drawings, telephones, fax’s, furniture and stationary?
• Will construction staff / workforce be exposed
to toxic harmful / chemicals / materials, how will
SECTION A5 | 173.
this be handled?
• Will special protective clothing / equipment /
training be required at the site during the construction effort?
• Will fire watchmen / protection be required
during the construction effort or during shut downs?
• Will TV monitoring / security fencing be required during the construction effort?
• Medical support; will it be required (doctor /
nurse / first aid staff) at the construction site, full
time or part time?
• Does the cost of medical facilities, school(s),
training facility, commissary etc. need to be included
in the cost estimate?
UNIQUE CONDITIONS OF OVERSEAS CAPITAL
ENGINEERING / CONSTRUCTION PROJECTS
When an employee is transferred to an overseas
country he or she generally goes through a degree
of real or imagined inconvenience. The minuses of
working overseas are:
1. Lack of home comforts / family pressures
2. Lack of family contact
3. Lack of contact with friends occurs
4. Personal difficulties / new situations
5. Likely risks and challenges
6. Cultural shock
7. Work pressures (not unusual to work 60+
hours a week)
The pluses of an international work assignment
include:
1. Increased job responsibility and experience
2. Interesting job assignments
3. International travel
4. New challenges, friends and experiences
5. Increased earnings
6. Completion bonuses
The intent in staffing an international project is
to provide equitable compensation to the employee
to offset real and financial disparities during the assignment.
Engineering, procuring and constructing a chemical plant / manufacturing facility in an overseas
country present many out of the ordinary challenges,
these include, from a capital cost estimating point of
view the following:
1. Availability of English speaking managerial,
technical and administration staff.
2. Any restrictions / limitations on the use of
expatriates / third country nationals during the Engineering, Procurement and Construction phases of the
project, what are the needs for visa’s, work permits
and temporary residence.
3. The overseas country’s historical bonds and
current relationships to North America and Europe,
examples of this is that when doing work in Africa such as Togo the language is French, the local
construction industry follows the French methods
/ model. Research the current political climate /
stability and how these major issues will impact the
engineering / procurement and construction cost and
schedule, questions that should be raised include; (a)
where should the detailed design be completed, can
it be completed locally, should we consider the least
expensive engineering location, i.e. India, Venezuela
or China (b) where should the procurement effort
be in North America / Western Europe or (c) in host
country or adjacent country.
4. Appropriateness and availability, together
with the cost of expatriate TCN’s / local personnel,
and of local qualified skilled labor.
5. Bulk and engineered materials / major equipment, where will we obtain these materials and
major equipment items?
6. Host Government political agenda, rules
and import / export regulations. Does host country
impose / mandate local purchasing requirements?
7. Exchange rates / fluctuations in currencies,
banking regulations, bank transfer rules, payment
terms and conditions, is bid to be expressed in US
dollars or in local currency?
8. Understand the countries local economy /
engineering, construction contracting methods and
practices.
9. Be aware of labor productivity V’s North
America and Western Europe, i.e. productivity could
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174. | SECTION A5
be anywhere from 2 to 3 times the US Gulf coast.
(lack of major roads, harbors, water, electricity etc.),
10. Imported or domestically produced major
an understanding of this situation and the logistics
equipment, QA / QC issues, plus a whole host of
of working through these problems coupled with the
other issues, and last but not least the size of the
financial ramifications of this situation needs to be
contingency fund and how it will be expended.
fully understood and valued and incorporated into
11. Local taxes, import duties, sales tax, VAT
the business start up costs or proposal / future capital
taxes, B & O taxes and local tariffs.
cost estimating efforts.
12. Local country incentives, tax holidays, low
While constructing or functioning in an overseas
cost loans and local inducements / incentives.
country, care must be taken to fully conform (learn
13. Government monitoring / special documenta- the rules and play the game) to local regulations /
tion.
bureaucracy and practices, business procedures and
14. Availability of U.S. Government investment
applicable country laws. Underdeveloped countries
insurance or other ones such as COFACE the French (Third World Countries) of which there are many,
equivalent.
i.e. some countries in Africa, Asia and South Amer15. Are there any anti-trust / trade restriction
ica, many times these “projects” must in many ways
practices currently in effect.
be self-reliant / autonomous.
It is prudent to be on reasonMany times it is very beneficial to
ably familiar terms with the history, By being on familiar terms
conduct a pre-estimating / prokey events and general background with the country’s potenposal survey to establish if qualitial industries / business /
of the specific country and the
fied suppliers, vendors and conproposed CAPEX project; this will growth prospects will many
tractors are available locally and
times
enhance
current
and
hopefully smooth the progress of
what materials, major equipment
future forecasting, estimatbetter public relations and enhance
must be imported into the country
ing, planning and future
understanding by the local popu/ or fabricated in the country and
potential work.
lace. By being on familiar terms
what are the requirements to do
with the country’s potential industhis action. To have a successful
tries / business / growth prospects
project, the project team should
will many times enhance current
have a reasonable knowledge of
and future forecasting, estimating, planning and
the local contracting traditions / customs and busifuture potential work. The strategic planning / risk
ness practices. Transferring staff overseas for an
tolerance and the decision to invest / pursue work
extensive duration will necessitate some essential
in a specific overseas country are typically made
front-end training. Each and every staff member is
by corporate management. Any related venture /
not appropriate for an overseas project assignment;
investment costs should where possible be incorpoeach potential applicant should be conscientiously
rated into future proposals / capital cost estimates
evaluated / considered and equipped / trained for
to recover this overhead / development set up cost.
his or her foreign country work assignment. A lot of
Perform a detailed market research of the targeted
countries have fashioned / formed economic links /
country prior to establishing a presence. Developed associations or have profitable / commerce amalgacountries (1st and 2nd world nations) usually conmations such as the European Union (27 countries),
tain the basic infrastructure (roads, harbors, airports, NAFTA, ASEAN, etc: Importation of goods, sertelecommunications services etc.) necessary to
vices, materials, equipment and labor from inside the
support a new capital project, while less developed
economic market area will be financially beneficial
countries (3rd world) lack this basic infrastructure
than importing from the outside, due to no import
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SECTION A5 | 175.
duties / tariffs being levied.
The front-end investment cost to mobilize / deA number of countries have a lot of public / remobilize an employee to a foreign location is excepligious holidays and additional officially authorized
tionally high. In many cases it may be prudent to
vacation days, four to six weeks is not unusual in
send third-country nationals (TCN’s), or to employ
some European countries, i.e. Norway, Sweden and
local citizens. These individuals are much more cost
Denmark. Work ethic, productivity, sick time and a
effective. The challenges mentioned above will be
somewhat limited appreciation / respect to practical
significantly enhanced in a country with an identicompletion / schedule compliance (it is difficult to
cal / similar ethnic mix. North American or Western
actually finish a project, it seems to drag on forever), Europeans working in Europe or N. America, for
this should be considered and understood when com- example in the middle east, may require women to
piling the proposal / cost estimate. Serious considwear dresses / robes “burka” that cover all parts of
eration should be given to importation of goods and
the body in public. Women are many times not alservices / customs clearance, paper work, documen- lowed be part of the workforce, divided / separated
tation and inspection QA /QC activities when comliving quarters, expatriates not being allowed to
piling the cost estimate / planning the schedule for
drive, separate dining facilities, and different work
engineering, procurement and construction, major
schedules, such as working on Saturday and Sunday.
equipment, means of delivery equipment engineered Several religions require their followers to dedicate
and bulk materials delivery and
more time to services than othocean freight logistics if required
ers. For instance, some Moslems
and insurance requirements. This
pray five to seven times a day.
The front-end investment
“freight” item is many times under- cost to mobilize / de-mobiSome of these prayer times are
stated and is many times delayed.
in their normal work day, in the
lize an employee to a forLocal customs officials are “stickMiddle East you will hear the
eign location is exceptionlers” for original / certified forms,
call to prayer many times during
ally high.
importation documents, importation
the day and you will observe a
certificates, bills of laden, insurance
line of worshippers going to the
coverage etc. Getting this freight
mosque, many times a mosque
situation right will dramatically assist the ongoing
may need to be established at the construction site.
project execution effort.
Also in this part of the world it is normal practice to
Deciding on the appropriate employees for a
take a two-three hour mid-day break, and to work
foreign country project should be balanced by the
until 8:00 PM in the evening. In addition, their holy
following important attributes:
day is observed on Friday. These situations must be
• Previous overseas experience and enthusiasm
considered when compiling the proposal or capital
• In depth job knowledge
cost estimate and when executing the project. Time
• Age, an individual with at least 7 years hands
and again on an overseas project documentation
on experience
/ communications will be in English, (English is
• Rolled up sleeves attitude / ability to get things considered the major business language) if this is the
accomplished
case there is usually no extra cost to include in the
• Being a team player, having the ability to get
capital cost estimate. Nonetheless, there are situaalong with other team members
tions were the project documentation / correspon• Health status / ability to travel to various overdence is conducted in two languages, i.e. one side
seas locations
of a drawing will be in English the other side in the
• Current family situation
local language. This adds costs to the project that
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176. | SECTION A5
must be established / estimated and incorporated into home
the proposal / capital cost estimate. In some counties
9. Training expatriates and local staff
it will be required to utilize the services of chauf10. Orientation costs / hand books / new hire
feurs, again this cost will need to be established and meetings
included in the capital cost estimate. Many coun11. Regular / emergency medical treatment
tries have restrictions / limitations on what can be
12. Home maintenance compensation
imported into that country. This is done many times
13. Schooling for expatriate children
to protect the local manufacturing community. An
14. Local transportation, company car, allowexample of this is where the host country requires
ance or a low cost loan
80% local produced materials and equipment, even
15. Furniture rental
though the local manufacturing community can not
16. Completion bonus
produce this stipulated percentage.
17. Local insurance costs
The above items are not all encompassing, when
18. Local driving license
compiling an international capital
19.
Transportation of
cost estimate. The requisite to be
household goods to country and
able to speak / write in the local
back to home country
On
major
EPC
capital
projlanguage should be based on the
20.
Local housing / hotels
ects located in remote
person’s assignment duration, title,
/ camps etc.
regions of the world, temand extent of interaction with the
21.
Company / personal
porary housing / or pre-fab- cars / vans, transportation to the
local construction community and
ricated housing units, may
work force. Local language coursjobsite
be
required
or
be
part
of
the
es prior to and during the project
22.
Vacations, work hours,
will assist the project by cultivating projects’ deliverables.
public holidays etc.
contact with local enterprises and
23.
Transfers back to
the local workforce, minimizing
home / country
conflicts, optimizing cooperation
24.
Fees / taxes related to
and enhancement of project productivity. The proleaving host country
posal / capital cost estimate for expatriate profesOn major EPC capital projects located in remote
sional staff have got to take account costs for acregions of the world, temporary housing / or prequiring and maintaining the following activities and fabricated housing units, may be required or be part
support services:
of the projects’ deliverables. Sometimes this tem1. Entry visas and work permits and for the
porary housing is used as permanent housing by the
administration organization performing this activity
staff eventually operating and managing the facility.
2. Medicals for staff and family members
Housing may be of varied types and cost, depending
3. Insurance costs, medical, life, automobile
on employee’s rank, vocation / profession, impor4. Supervision / senior staff members
tance to the project, length of assignment and family
5. Logistics, (trips back home) trips to other
status. The above-mentioned temporary / permanent
business locations
housing must be completed prior to the start of the
6. Tax equalization U.S., and local country
construction effort (many times a pioneer camp will
taxes
be established to house the initial – say 100 staff), it
7. Income tax exemption, use of big “five” acis usually a critical path item, many times pre-fabricounting firms / support
cated / modular housing units are utilized. Staffing
8. Business travel and emergencies trips back
requirements and needs (both imported and local)
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SECTION A5 | 177.
should be carefully considered. Some overseas
counties impose penalties for releasing / firing employees prior to a pre-established completion date.
A number of countries require a sizable completion
bonus for all local employees; this may be a week or
a couple of month’s salary. Again this has to be considered when compiling the proposal / capital cost
estimate. A tuition / education contribution / allowance may be required to be granted to senior married
expatriates who have to send school age dependants
to an in or out of country school. This can be a very
expensive endeavor, school fees trips home, books,
visits, telephone calls, miscellaneous expenses etc.
On some large and isolated projects where expatriates are with their families in a camp type setting, a
project related school may need to be built / established. All the associated costs of establishing and
operating an ongoing school, i.e. teachers salaries,
admin staff, school buses, school equipment etc,
will need to be estimated and included in the overall
capital cost estimate.
To be successful in the international EPC arena
we must consider the following items / topics and
ensure that the specific cost elements have been incorporated into the estimate / proposal. If the above
and following topics are carefully considered they
will save the capital project a lot of wasted effort and
possibly dollars, pounds, francs or whatever currency, which is the main goal of all cost estimators /
estimating engineers.
1. Carry out a wide-ranging project specific
survey of all cost elements that will impact and
influence the final capital cost and schedule. The
survey may be used for auditing contractor and
owner costs, future benchmarking and for analysis
of cost estimates prepared by local suppliers, vendors and contractors. Consider items such as O / M
manuals needs, spare parts / capitalized spare parts,
local staff training / operator training, vendor assistance, productivity differentials, public holidays,
vacations, all-in hourly rates, camp establishment
costs, catering, productivity and work week V’s U.S.
/ European norms.
2. Generate / compile a precise and comprehensive capital cost estimate covering the total scope of
work to be performed including all engineering, procurement and construction / start up elements. Refer
to the four step approach described in section A 2
for additional details, develop a “basis of estimate”
(exactly what is included / excluded from the estimate, drawings and specifications). Import duties,
local VAT taxes and tariffs must be meticulously
researched and calculated. Current and forecast of
“project currency rates”. Understand existing and
possible / altering customs rules / regulations.
3. Be conscious / cognizant of local customs,
federal and local government bureaucracy and business / construction methods and practices.
4. Ocean freight and insurances costs, inland
transportation costs, the cost of fixed wing aircraft,
helicopters and the ongoing cost of operating this
services may be required and if this is the case the a
budget will need to be established.
5. QA/ QC requirements and testing agencies
Lloyds of London, DNV etc.
6. Importation of specialized labor, i.e. stainless
steel welders, instrumentation mechanics – use of
TCN’s.
7. Specialized transportation requirements,
large cargo planes / tugs and ocean going barges.
8. Establishment of a concrete batch plant,
together with appropriate transportation equipment.
9. Importation of construction equipment,
trucks, earth moving plant, specialized welding
equipment and the maintenance of this equipment.
10. Develop a genuine interest in local history,
food, culture, and religion; don’t get into deep discussions on religion or politics or the merits of how
things are done in the North America or Western
Europe.
11. Be a team member treat others as equals,
socialize be friendly with the local team members.
Cultivate a good personal / business relationship
with local authorities and the local community.
12. Gain knowledge of and speak the countries
language, this is greatly appreciated by the locals.
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178. | SECTION A5
Select the right staff and positive personnel management of this staff is one of the main solutions to
project success. If this can be accomplished correctly
a large number of other problems can be mitigated.
International projects for all intents and purposes
use the same basic principals that are employed on
North American domestic projects; however some
of the points raised above should be of help when
compiling an overseas estimate or bid.
Copyright © 2017 Compass International, Inc.
SECTION A6
Value Engineering /
Change Orders /
Claims & Contingency Issues
T
and EPC firms to contain costs. All these terms
he fashionable phrase(s) that are bandied
mentioned above have connotations with the term
around and that are getting some mile- Value Engineering, the question is can Value Enage in the EPC engineering / construction
gineering help in the engineering and construction
industry in the last five years include:
process, usually the answer is yes. If the detailed
• Cost containment
design effort is less than say 75% complete, then
• Cost cutting
Value Engineering can be a major help in maintain• Out-sourcing
ing and possibly reducing a CAPEX budget. Value
• Right sizing
Engineering has evolved in the last thirty years – it
• Downsizing
has become a last resort many times when projects
Value Engineering is about reducing unnecesare about to go over their budgets. Value Engineersary costs and expenditures. Think “outside the
ing is basically a front-end activity
box”, if you were spending $20
that results in real project related
million on a new building and it
Value Engineering is about
cost savings. Value Engineering is
was coming out of your pocket
reducing
unnecessary
costs
best summed up as a methodical
you would have lots of questions
and
expenditures.
approach to providing an opti- why are we doing this and why
mized design and construction
are we doing that? The focus of
solution(s), without forfeiting
Value Engineering is to get the
quality, reliability and of course safety - without
most “bang” for your buck, while still getting an
incurring unnecessary additional cost(s), and in
attractive, functional, quality built facility, that is
meeting the needs and expectations of the end use. A
safe for the people working and visiting the facility.
Value Engineering is defined as a structured attempt good example of this is purchasing a car; you could
buy a Porsche at $70,000 or you could buy a Ford
at optimizing designed facility configurations / size,
Taurus at $20,000, both cars will get you to were
design intent and needs, materials of construction,
you need to get to, both cars are safe and reliable, so
facility operations / operating equipment, with the
it basically comes down to personal preference. Buy
goal of providing the best facility possible while
paying the most economical price for the completed a Ford and save $50,000, it’s your call.
Top five reasons for poor value in the construcfacility, at the same time of designing and constructtion industry:
ing the facility that meets the organizations, safety,
1. Why change now we are making a profit
reliability, maintainability, quality and possibly
(The
answer to this is that the company could perfuture expansion goals.
haps make more money by utilizing this concept)?
There is an enormous pressure from both owner
Copyright © 2017 Compass International, Inc.
180. | SECTION A6
2. Communications, the construction industry
the elements within the total design deliverables
is plagued by lack of or mixed communications,
package. The purpose of V.E. is to develop a new
you’ve heard the old saying “nobody told us.” We
approach, better / optimized design that will generwere not in the loop.
ate the optimum life-cycle operating costs / afford
3. We have never done this before, engineers /
the maximum value at the same time as focusing all
construction workers are reluctant to embrace new
safety, economical, quality, operability, maintainideas and concepts, we could put ourselves out of a
ability, resilience, and other operating goals / critejob.
ria created and established for the project / specific
4. Planning, nobody thought through at the
process. V.E. is applicable to:
beginning of the project, we never considered the
• Manufacturing, Products, Parts and Services
concept.
• Chemical Plants / Process Facilities / Admin5. The perceived idea that there is not enough
istration and Public type buildings and support type
design data available at the early stage the project
facilities
The fact of the matter is that any early “mini”
• Energy Consumption
value engineering session / brain storming session
• The purchase and utilization of raw materials
(perhaps half a day –focusing on
• Systems and Operating
the “big ticket” items at the early
Procedures
Value Engineering is a
stage of a CAPEX project can re• Your own personal budget
function oriented systemsult in savings of perhaps as much
• Plus a host of other topics,
atic team approach used to
as 5% or more.
there is really no end to the cost
analyze and improve value
Time and again when a capital
saving ideas that V.E. can generin
a
product,
facility
design,
project is in trouble, i.e. going over
ate.
system or service.
its budget the “call” will be for
Value Engineering (VE) is
Value Engineering – it seems like
not engineering / design review
this is the panacea that will cure
or a cost reduction application.
the problem and many times it will.
Value Engineering is an innovaHowever many projects just pay lip service to Value tive organized effort which analyses the needs of
Engineering, they say they do it on an ongoing basis, a CAPEX project with the goal of reducing capital
however if they conducted a formal 2 or 3 day Value expenditures, expense related values, soft costs and
Engineering with all the key players, they could
eventual operating costs. Value Engineering is adrealize big CAPEX cost savings. Value Engineerditionally a most important instrument at the outset
ing is best summed up as a systematic approach to
of a project in developing / optimizing the concepts
providing an optimized design solution(s), without
/ designs to meet a specific budget. V.E. is best
incurring unnecessary cost, in meeting the needs of
when the design deliverables are in the 10% - 50%
the end user. Value Engineering is a function oricompletion range. The expression value engineering
ented systematic team approach used to analyze and (V.E.) is many times allied with a project, manufacimprove value in a product, facility design, system
turing process or product that is in its early developor service. The term value engineering is being used ment stage.
more frequently in the construction industry. Value
In contrast, the expression value analysis (V. A.)
Engineering (V.E.) is an organized, across the board is interconnected to value evaluation / review of a
review / practical “team” activity that is focused at
product that has been designed and is in its producthe initial concept / preliminary design of a specific
tion / operating phase. Value Engineering provides
project / manufacturing approach and to optimize
an incentive to the design team to search for cost
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SECTION A6 | 181.
effective design choices, examples of this thought
are the costs associated with water, steam, electricity
process include some of the following.
and maintenance? Value Engineering is a positive
• Materials of construction, plastic pipe V’s carmoney saving methodology / procedure that needs to
bon steel V’s stainless steel.
be presented to construction professionals (perhaps
• Differing layout(s) - (tighter area utilization of
20% - 40% of the construction profession has been
the tank farm – possibly saving piping / electrical
introduced to Value Engineering concepts) by an
runs).
individual who has significant hands on knowledge
• Rent or Own the facility.
and education in this topic. A Certified Value Spe• Different location, operating costs in S.E. Asia
cialist (CVS) would be a real plus or individuals that
are significantly less than operating costs in North
have conducted perhaps 10 plus V.E. studies. The
America or Western Europe.
headlines of Value Engineering are described in the
• Different manufacturing solutions.
following brief write up, the basic philosophy and
• Utilize a smaller facility footprint.
steps that are outlined below are appropriate to all
• Request suppliers, vendors
types of CAPEX construction.
and contractors to present time cost
Attaining a basic appreciation of
saving concepts that could impact
the concept / principals of V.E.
The V.E. group should be
the project.
can be tremendously valuable to
made up of personnel with
• Reduce automation costs and
cost estimators / cost engineers.
different skill sets i.e. civil,
I/O points where possible.
It’s another skill that they can
mechanical, electrical,
• Locate facility closer to existoffer to their employers. Realproject controls, purchasing roads / parking areas.
izing and achieving optimum cost
ing, operations, safety etc.
• Toll manufacturing (use third
value / cost containment / profit
to obtain an expansive asparties to produce key ingredients).
enhancement is a major goal(s)
sortment of new concepts /
• Optimize OPEX costs.
- objective of all estimators / cost
ideas.
• Institute a preliminary Enengineers. It’s a good feeling to
gineering, Procurement and
bring real cost savings to a CAConstruction (EPC) schedule to
PEX project. The listings below
monitor major and critical path activities, how will
are some types of costs elements that are linked /
construction team work around the long lead items allied to the construction process.
to ensure utility hook up work is completed prior to
The V.E. group should be made up of personlong lead major equipment is installed.
nel with different skill sets i.e. civil, mechanical,
• Gravity feed tanks housed in building V’s dedi- electrical, project controls, purchasing, operations,
cated tank farm.
safety etc. to obtain an expansive assortment of
• Exterior walls use facing brick V’s Pre-cast tilt new concepts / ideas. The V.E. facilitator / leader
up wall system V’s metal siding.
should endeavor to set up a date and location (2-3
• Maximize the use of bolted connections with
days is the best duration for a V.E. study). The V.E.
structural steel to minimize field welding.
facilitator / leader as well creates the agenda and
• Plus 100’s of other technical solutions, some
the ground rules for the creativity / brainstorming
more of these ideas are discussed below.
discussions and also presents the V.E. big picture
The term Value Engineering is related by way
– i.e. (competitive environment issues, if this was
of the “life-cycle “costs of a building or other reyour money how would you spend it) including
lated items, how long will the building remain in it’s concepts and overall path forward. The V.E. faciliproduction mode, what are the operating costs, what tator / leader should not be domineering or try to
Copyright © 2017 Compass International, Inc.
182. | SECTION A6
force pre-conceived concepts on the team, he or she
articulating and considering any cost saving idea
should be open to new ideas. Discussions should fo- that comes to mind, even if the concept / idea may
cus on topics such as possible out-sourcing, value to perhaps happen to be outlandish to the other particithe customer, cost cutting and cost synergies as they pants, don’t immediately dismiss it. The logic and
relate to the overall concept of Value Engineering;
rationale is that an improbable - outlandish idea may
discussions should focus on engineering, procurebe the “light bulb” that opens up Aladdin’s cave on
ment, construction, energy usage and future operatfuture cost savings. The phases of the V.E. process
ing methods and costs.
are as follows:
The procedure to create a good number of
(A) The current game plan – sharing the design
brainstorming ideas is as follows (the more ideas the deliverables (drawings, SOW, cost estimates, specibetter the V.E. savings in most cases):
fications, execution strategy) with the V.E. team, all
1. The establishment of a well rounded / diverse project data / information encompassing the project
team (10 – 20 individuals is about right number for a is pulled together and displayed on the walls of the
two to four day V.E. / COM effort).
room in which the V.E. session is being conducted
2. Identify the issues; describe
(an overhead projector is used
project goals – budget, major milemany times).
stones and the current project path
(B)
Functional Analysis
forward (note this path forward can Generation of a large quan- (Utilization of F.A.S.T. diagrams)
tity of brainstorming ideas
be modified to optimize the CA- The indispensable (basic) and less
is the secret of success.
PEX project).
important functions / operations
3. No criticism / we all walk
to be provided by the facility are
away from the session as profesrecognized and discussed. Is this
sionals and friends.
required? Could it be outsourced? Why are we do4. Generate a receptive atmosphere; we’re here ing this? Do we need to perform this function? Is it
to help the CAPEX project and the project team to
necessary? What is the payback - value of a specific
be successful.
function? What are the functions concerning meet5. Encouragement of “free wheeling” off the
ing the objectives / goals of the project / facility or
wall thinking, what would be the benefits of using
product?
a “toller” to make 60% of the products. This idea
(C) Set the stage and conduct “what if” scemight cause some of the future operators to be connarios, come up with diverse “brainstorming” ideas
cerned, because it could eliminate jobs, but it needs
– spend at least 2 – 4 hours or more on this imto be raised.
portant topic. Remember the more ideas the better
6. Generation of a large quantity of brainstorm- results will most probably be realized.
ing ideas is the secret of success.
(D) Pick the best ideas – assume 100 ideas were
7. Use these ideas to create more value saving
generated, select the best 30 ideas and move forconcepts; it’s like a snowball effect.
ward with them – this is the investigative / analytical
8. At the conclusion of the 2 – 3 day session,
phase.
chart a path forward using these ideas to bring value
(E) Path Forward / Proposal / Formal Manageto the client. Set up a list of tasks, with dates, put
ment Report. In this segment, the group’s suggesnames of individuals who are responsible for coming tions are fine tuned / condensed for submittal to
up with a conclusion – recommendation and a path
management; usually a round table discussion many
forward.
times is also given indicating what needs to be done
The V.E. team participants should be at ease in
next / action item list, who does what and when. The
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SECTION A6 | 183.
deliverables of the 2/3 day V.E. session many times
will be a detailed written report, 50 -100 pages,
documenting actions / possible concepts for saving
CAPEX expenditures.
(F) Auditing / Ongoing Monitoring / Follow-up
phase – revisit the action of the V.E. session in 30
days or so to ensure that the agreed on actions have
been completed (or have been adopted).
Cost Optimization Methods (COM) / Value
Engineering Procedures (Additional topics to review
during or after the formal Value Engineering study):
• Select the best manufacturing location; - perhaps at this time it is Eastern Europe, South America
or S.E. Asia or in an existing facility currently being
used.
• Consider manufacturing / process improvement, simplification and optimization (KISS).
• On a continuous basis ask vendors s/c to provide time and cost saving ideas that could impact the
project.
• Ensuring correct / proven technology is chosen,
why go with unproven technology.
• Adapt and customize current company SOP’s,
standards and specifications to optimize the future
EPC effort to deliver the project to customer at the
lowest cost, while ensuring safety and quality of
product matches or exceeds customer’s requirements. Consider using “similar” design deliverables
from completed “similar” CAPEX projects and
modify them to this project application –this could
save significant CAPEX expenditures if this approach can be utilized.
• Issue early works packages to minimize future
escalation costs.
• Minimize disturbance at site and general work
area (keep as tidy and as neat as possible during the
construction effort) where possible to minimize disruption and a general loss in productivity.
• Institute a priority schedule for critical areas,
to ensure Major Equipment and bulks are designed,
procured and installed at the most favorable time in
the project execution schedule.
• HVAC systems on any new facility typically
are major cost drivers, consider ways of reducing
HVAC costs, by use of different equipment / components, double / triple glazing, tinted glass, heat
pumps, cogeneration, energy management systems
and any other issues that could save initial capital
and future operating costs.
• Consider modular / pre-assembly construction
methods.
• Consider generating onsite electricity, i.e. solar,
cogeneration or wind power.
• Review backup redundant utility systems and
question engineering philosophy.
• Consider different architectural finishes and
installation methods.
• Consider using gravity feed tanks housed in
building, V’s dedicated tank farm (eliminate pumps /
pipe / pipe racks).
• Increase / Decrease bay sizes, floor to floor
heights, optimize support space.
• Use aluminum switchgear if this is feasible.
• Optimize automation methods and endeavor to
reduce number of I/O points where possible.
• Study the option of pre fabricated key construction components such as process piping, structural
steel, pipe racks, cable trays, furnace components,
PCC Tilt up wall systems.
• Use energy efficient equipment that conserves
electricity, gas and water.
• Elevate facility building pad, to reduce excavation costs (cut and fill requirements).
• Locate facility / building closer to existing
WWT, power and steam production facilities to save
on pipe and cable runs.
• Try to minimize small isolated foundations
were possible, thickening of slab on grade has over
the years proved more cost effective.
• Plan flexible workspace for future visitors;
provide “hotel” types work space areas.
• Use timers, dimmers and set HVAC thermostats to specific set points to reduce electricity usage
and optimize where possible.
• Use natural daylight / windows / skylights in an
effort to optimize electrical load.
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184. | SECTION A6
• Re-visit building insulation designs; consider
effort.
best / optimum “R” value for walls and roofing
• Plus many more cost saving ideas.
systems.
Cost Optimization Methods (COM) and value
• Maximize the use of bolted connections with
enhancement approaches: A number of leading
structural steel to minimize field welding.
“process” -, chemical, manufacturing, oil and gas,
• Re-route new or existing roads / rail spur to
pharmaceutical organizations have put into practice
save construction costs and schedule, locate new
the application of a “suite” of Cost Optimization
facility close to existing services if possible, to save
Methods (COM) and value enhancement approaches
on piping and electrical runs.
to optimize their CAPEX capital project executions
• Can we optimize future long term operating
programs, this activity relates to front end planning,
(OPEX) expenditures, by reducing number of opera- engineering, procurement, construction and eventual
tors?
facility operations. This is basically an upgrade (add
• Discuss with local utility / Power Company on on to the Value Engineering concept where the total
ways to optimize electrical usage to save operating
scope of a CAPEX project is re-evaluated to see if
costs.
additional costs can be “squeezed” out of the current
• Take into account installing
CAPEX scope of work).
any fireproofing to vessels / skirts
Cost Optimization Methods
that may save field installation
(COM): Is a front end project
Cost Optimization Methwork.
practice targeted at optimizing
ods (COM): Is a front end
• Use cost effective materials
“hard and soft” Engineering,
project practice targeted at
such as PVC, CPVC versus high
Procurement and Construction
optimizing
“hard
and
soft”
cost alloys.
project related costs. (COM)
Engineering, Procurement
• Design facility / building
practices are intended to enhance
and
Construction
project
with sufficient employee parking
the value / worth of a manufacrelated costs.
space; be cognizant of local transturing / production facility by
port needs / bus stops / bike racks /
reducing critical and non-critical
unloading areas / handicap buses /
scope of work items, by improvvan access and the general location of access roads
ing reliability and simplifying the manufacturing /
to the new facility.
production process. Topics that are reviewed and
• Utilize used equipment / refurbished equipment evaluated include in this methodology are: (1) Front
/ use pre-purchased equipment currently in owner’s
End Economic / Business drivers, (2) Early and
inventory, purchase key spare parts with initial P.O.
detailed Engineering / Design activities, (3) Procure• Install perimeter roads as early as possible
ment methods and approach to be used in completwithout final 2” layer, to allow construction traffic
ing the CAPEX project, (4) Construction techniques,
impeded access.
(5) Project related “soft” costs, such as Start up
• Consider future facility production / campaign
costs, Owner Engineering / Construction support,
increases and decreases to meet market demand and Validation costs, F, F & E and Operating costs. Cost
design to needed capacity / demand, can this plant
Optimization Methods (COM) and value enhancebe modified and expanded to increase future produc- ment approaches, to be performed during the followtion needs.
ing CAPEX estimating efforts: See chart next page.
• Conduct mini - V.E. sessions during pre-conThe rationale of COM is to “pinpoint” best posstruction reviews / input from construction engineers sible solutions and select approaches to improve the
during the detailed design effort to optimize the EPC worth and value of a specific CAPEX project by
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SECTION A6 | 185.
CAPEX Estimating Efforts
COST OPTIMIZATION METHODS (COM) & VALUE ENHANCEMENT APPROACHES TO BE PERFORMED
ESTIMATE TYPE & ACCURACY
Initial Business Idea Basis - ROM, Blue
Sky, OOM, Concept Study, Ratio Estimate
type estimates (+/ - 50% accuracy)
Viability / Business Identification - PreDetailed Design Estimate Feasibility
Estimate, partial AFE / Initial Funding
Estimate (+/ - 40% accuracy)
Funding Estimate Approve for Expenditure (Full or partial CAPEX funding )
– Semi-Detailed Estimate, Preliminary
Control Estimate, AFE Full Funding Estimate (+/ - 30% accuracy)
Project Baseline / Project Control Class
(used as control tool) Project Control
Lump Sum - Hard Money / Lump Sum
Proposal Estimate (+/ - 5% accuracy)
Estimate, GMP Estimate, A Not to Exceed
DETAILED DESIGN COMPLETION /
AVAILABLE ENGINEERING /
ESTIMATING / DATA
1 – 5%, Preliminary SOW statement, partial M.E. list, sketches, known location
2 – 10% of the above, M.E. list, preliminary layout known, preliminary OSBL
data.
10 – 30% all of the above, priced out
M.E. list, 40 - 60% CSA / piping / electrical completed, OSBL design 30 - 50%
complete, perhaps 20% - 40% quantity
take-offs completed.
30 – 80% of the above all of the above,
priced out M.E. list, 60 - 80% CSA / piping / electrical completed, OSBL design
50 - 70% complete, perhaps 40% - 70%
quantity take-offs completed.
50 – 100% of the above all of the above,
priced out M.E. list, 80 - 100% CSA / piping / electrical completed, OSBL design
SUGGESTED COM EFFORT
Estimator / Project Manager / Project Controls / Project Stakeholders
(minimal 2 – 4 hours)
Estimator / Project Manager / Project Controls / Project Stakeholders)
(minimal 2 – 4 hours)
All the Project Stakeholders (0.5 - 1
day effort)
All the Project Stakeholders (1 – 2
day effort)
All the Project Stakeholders (1 – 2
day effort)
taking early corrective or avoiding action at the early best practices, that encompass the entire CAPEX
life cycle stage of the CAPEX project, by optimizing projects scope, COP when adopted can bring encapital expenditure and mitigating project specific
hanced value to the completed facility. The followrisks and challenges.
ing is a listing of these best value
Various studies have confirmed
practices that should be considVarious
studies
have
conthat COM is directly responsible
ered during a CAPEX projects
firmed that COM is directly
with improved capital project
execution cycle. (These concepts
responsible
with
improved
results. COM basically is an out of
have worked successfully in the
capital project results.
the box thinking methodology – “a
past and there is no reason why
what if scenario” used to enhance
they should be appropriate in the
the implementation of a capital
future). To recap - the five main
project. COM is many times used in concert with a
features of Cost Optimization Methods (COM) are
formal VE study for the most part used during the
to financially enhance each CAPEX project by opticoncept front end of a capital project. The intent of
mizing the following.
COM is to drill down deep into the decision mak(1) Improving Cost Performance – the final cost
ing process of the capital projects current scope. The of the facility - compared to the approved / allocated
COM approach should be considered as a “work in
CAPEX funds.
progress” list of planned, well thought out historical
(2) Optimize the Completion Schedule / Facility
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186. | SECTION A6
Start-Up V’s original planned start-up.
(3) The Facility Life Cycle / Facility Function,
(i.e. 15 – 20 years or possibly more life cycle).
(4) Enhance the facilities Manufacturing / Production performance.
(5) Perfect the facilities safety record (during
construction and facility operations).
These applications are appropriate to the following related projects:
• Onshore Oil and Gas Facilities
• Offshore Oil and Gas production facilities
• Pharmaceuticals Facilities and R&D Centers
• Power related Facilities (Coal, Gas, Nuclear,
Wind, Geothermal and Hydro)
• Industrial Manufacturing Facilities
• Offices / Public Buildings, Apartments,
Schools, Education, Housing Projects
• Infrastructure related Projects (Roads, Bridges,
Tunnels, Airports, Ports and Railways)
• Pipelines / Water and wastewater treatment
plants
The following concepts / applications focus
primarily on Manufacturing, Refinery, and Hi-Tech
type CAPEX projects, similar considerations and
concepts should be considered and developed for
other non-process related construction projects listed
above.
FRONT END EVALUATION / ECONOMIC AND
BUSINESS DRIVERS
• Ensure business units goals are aligned with
CAPEX projects scope.
• Revisit key business issues and decisions to
confirm current CAPEX project scope statement
reflects current business goals in a 2008 / 2009 post
global financial environment. Reconsider strategic
decision specific to current markets, future markets
and product growth potential, basically does this expenditure make sense, with the organization current
production capacity and facilities.
• Indentify viable and competitive process /
manufacturing alternatives to optimize technical and
project execution approach.
Copyright © 2017 Compass International, Inc.
• Re-examine and brainstorm and overcome
potential personnel and facility barriers / bottlenecks
to meet current and future business goals and ROI,
consider “shoe horning” new manufacturing facility
into a currently owned facility.
• Does the current project scope fulfill the business / project / economic goals of the company?
Have we considered and created various alternative
and business solutions? Have we analyzed enough
creative alternatives to make the best business case
solution?
• Are there any developing governmental rules
/ edits / directives / codes / changes in the pipeline
that could impact this CAPEX projects economics or
delivery?
• Will this CAPEX project add value and create
alignment between key business units and company
stakeholders?
• Illustrate were possible if CAPEX project is
critical to the business (this CAPEX project could
influence future business growth and profits – a new
product that could generate hundreds of millions of
dollars in future sales and profit) or a non critical
project – example upgrade an existing conference
room / learning center, a non-critical CAPEX project this particular project will not really influence or
drive future business’s growth and profits.
• Is this CAPEX project really needed at this
time, can it be re-visited in three years, is CAPEX
project critical to the future growth of the business,
could we outsource this operation to a contract supplier?
• Has the company’s current value repositioning strategy been aligned with this potential CAPEX
effort?
• Has the project objectives been mapped out
and aligned to the current annual / business CAPEX
goals and expenditure plan?
• Have we really examined all the issues related
to the CAPEX projects physical location has a detailed survey been carried out? Where economically
is the best facility location? Have we considered
other locations? Do some facilities (mangers) have
SECTION A6 | 187.
a vested interest / agenda that are driving this CAPEX project? Is proposed facility close to current
and future markets? Do we have the ability to use
established services and infrastructure at an existing
manufacturing location? Consider local labor costs
and will this reduce construction / operating and
shipping costs. Review current (OPEX) resources.
(Review current labor and manufacturing equipment
resources and capabilities). Consider best long term
investment options and if any local government incentives or grants / tax holidays are available to the
proposed facility that could minimize CAPEX funds.
Consider future facility expansions i.e. five to fifteen
years in the future, i.e. infrastructure requirements
and future operating costs.
• Can we manufacture / produce the end product in a different more cost effective way? Have
we fully explored all of the manufacturing options
available? Are the manufacturing requirements too
restrictive or disproportionate?
• Will the execution of this CAPEX project
improve the organizations’ overall supply chain and
manufacturing flexibility?
• Does this CAPEX project align and support the
company’s 5 – 10 year strategic business plan and
goals? Does this CAPEX project deliver long term
financial and manufacturing benefits and product
flexibility to the business?
• Can we utilize an existing facility / building?
Is there room at an existing operating facility that
could partially or fully meet the needs of the future
CAPEX project?
• Outsourcing / Third Party Manufacturing /
Contract Manufacturing: Have we fully considered
the manufacturing outsourcing option? Determine if
this, or a combination of third party manufacturing is
the best path forward.
• Have we considered producing this product
with a joint venture partner perhaps in their facility? What is the best physical location for this future
CAPEX project, North America, South America,
Europe or Asia? Where do we expect future market
growth for this particular product?
• Manufacturing / Process Optimization. Consider reduction of redundant CAPEX investment
(manufacturing / production equipment – use less
equipment if possible, re-size equipment if possible, combine equipment), this could possibly have
a “knock on” effect for future operations / maintenance, product wastage and minimizing operator
headcount personnel and costs.
• Re-visit basic CAPEX Investment drivers,
examine (business case) subject matter / market
research and return on investment decisions; does
the business case make sense considering the global
economic downturn? Determine if this is the best
utilization of company’s capital expenditure funds
(CAPEX) at this time. Is this a business that the
organization wants to be in, in ten years, or are new
competitors chasing after this market? Is there a sustained future for this product, would it be prudent to
delay the “go” decision until the economy stabilizes?
• Can we coalesce and “piggyback” / de-bottleneck off current manufacturing / production steps
and possibly save CAPEX expenditures?
• Can future CAPEX project attract any State /
Governmental financial assistance – grants, free real
estate, infrastructure improvements, tax breaks, tax
holidays, training assistance or any financial benefit
that could improve the ROI, etc.?
• Have we conducted a Risk Evaluation / Mitigation Study? Compile a list of project risks and
develop ways of reducing risk with the CAPEX
projects stakeholders.
• Is the manufacturing technology proven, or is
the CAPEX project based on new / unproven technology, if new technology is to be utilized does the
CAPEX project estimates reflect this situation both
from a financial and schedule viewpoint?
• Does facility need to be “state of the art” from
a process controls point of view, or can we save
CAPEX costs by additional operators?
• Can electricity, steam etc be obtained from a
nearby source / third party? Is it more cost effective
to produce our own electricity via a co-gen plant?
Should we handle our waste water, or does it make
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188. | SECTION A6
economic sense to ship offsite?
• Re-examination of manufacturing / support
systems, review logic of reducing manufacturing
equipment / support systems, including maintenance
/ out of service time, consider outsourcing the maintenance effort if feasible.
• Can the manufacturing process, packaging operation be optimized by perhaps outsourcing various
production steps to a contract manufacturer?
• Is the CAPEX project execution team cognizant of all the perceived project risks and issues,
have these challenges been described to the team
members?
• Does CAPEX project have a critical drop dead
date, is it tied to a regulatory decree / market entry
date that are driving this effort?
• Can the overall Engineering, Procurement and
Construction delivery effort be improved?
ENGINEERING / DETAILED DESIGN
CONSIDERATIONS
• Investigate least total ownership cost with
business unit; consider future expansion or transfer
of physical assets to a different location within the
detailed design effort.
• Has the design effort fully embraced energy
optimization and waste minimization?
• Can we utilize manufacturing equipment currently owned and in storage / or not being utilized
by company? Can we use any design work that has
been completed in the last five years, instead of
starting from scratch?
• Can any “common sense” engineering / design
changes be implemented to save both fabrication
time and cost to ensure early delivery of component
or project?
• Design cost effective offsite / support systems:
Locate new facility as close as possible to boiler
plant, cooling towers, sub station and other main
services / utilities. Ensure good judgment is used in
the selection of manufacturing / utility equipment to
ensure minimum ongoing operating costs and down
time.
Copyright © 2017 Compass International, Inc.
• Make certain vendor equipment is delivered
to field with correct tag number, shop drawing and
any O&M manuals / cut sheets, that can assist in the
millwright / setting activities.
• Bring together the key engineering disciplines
as soon as practical in the design effort to determine
clear routing / identification for all main utilities, sub
stations, MCC, main raceways, cable runs, locate
raceways that allow early start of fabrication / construction activities where possible.
• Use Industry Standards / Methods: Utilize off
the shelf – generic specifications / standards and
construction methods that are customized to the actual construction need and not above and beyond to
the requirements of the project, use standard industry specifications (Construction Specification Institute - CSI standard specifications would be a good
example of this if possible).
• Ensure that all structural concrete foundation
drawings specify the size, (Cubic yards / M3 of concrete, pounds / kg of rebar and the number of holding down bolts and anchor plate that are required for
each individual foundation, together with the grouting specifications).
• Consider concurrent engineering and equipment / services standardization. Construction quality
issues (QA/QC) over specified, make sure facility is
not “over designed,” consider what our competitors
are doing in their EPC efforts. Do we need detailed
customized specifications, or can we optimize the
specifications we currently have and cut and paste
to this project application? Specifications and procedures specific to facilities can fluctuate significantly.
As an example, a warehouse does not need comprehensive (full blown) specifications – it could be built
using the Design / Build approach, however a state
of the art R & D center will need to have detailed
specifications. The trick is to not fall back into the
old mode – “we have always done it this way”,
specifications and construction practices need to be
reviewed every couple of years, to squeeze out unnecessary requirements and features (a large chemical company used to have 20 + volumes of speci-
SECTION A6 | 189.
fications and procedures, after a careful review it
was found that they could build facilities using five
volumes, this saved a lot of paperwork and significant administration and construction costs).
• Does it make economic / business sense to utilize re-furbished, used production equipment for this
CAPEX project?
• Architect – Engineering (A/E) Engineering,
Procurement and Construction (EPC) Firm selection:
Decide on the most experienced and cost effective
A/E - EPC firm; consider future long term alliance
relationships and future partnering.
• Upgrade / Retrofit / Modernize existing company owned facilities: Can the proposed CAPEX
project be “shoehorned” into an existing facility,
possibly saving significant CAPEX expenditures and
resources? Or can we purchase an existing facility that can be reconfigured to the CAPEX projects
needs?
• Can we buy the Engineering and Procurement effort from a more cost effective country? I.e.
Eastern Europe (Poland, Greece or Hungary), or S.E.
Asia. (India or Indonesia).
• Bring into play the use of 2 or 3 standard sized
holding down bolts on the project to minimize cost
and to increase field installation productivity.
• Use Best / Appropriate Manufacturing Technology: Consider new “manufacturing” technology
where appropriate; however consider the “learning
curve” if new technology is selected and the associated start up difficulties typically encountered
with pioneer type CAPEX projects. Seeking out and
won over to new manufacturing technology can be
time consuming effort, ensure process guarantees
are inserted into any purchase order specific to new
manufacturing equipment. Determine if different /
proven manufacturing process can be used or modified to produce the manufacturing steps needed.
• Are we over designing the new facility? Is it
too sophisticated? What happens if a key component
goes down / too many bells and whistles?
• Owner project execution team: Select the best
possible “owner” project team members (use in-
house and consultant if necessary), conduct early
kick off meetings and hold weekly status / update
meetings to keep the team informed of project goals,
issue MOM notes with action items needed by specific individual.
• Should the detailed design effort allow for
future facility expansions? Future equipment foundations, pipe headers, etc.? Ensure initial over-sizing
of manufacturing equipment and redundant systems
are not incorporated into the final design documents.
Consider de-bottlenecking and future expansion
plans in current design deliverables if appropriate.
• Make use of best Automated Drawing Production / Computer Aided Design (CAD - PDS vs.
PDMS or other) and Project Controls (planning,
cost reporting) systems: Make use of cost effective
computerized design tools for the project engineering deliverables, consider using “E” Room technology. Utilize best engineering / design tools that are
most productive that can be used by owner team
members. Draw on E-Room systems for controlling
issuing of project related deliverables, i.e. drawings,
reports and other project specific documents.
• Right size / Over sizing Issues: Make sure
adequate space / footprint is determined consider
stacking manufacturing equipment, combine or optimize the manufacturing steps, eliminate unnecessary
manufacturing equipment and subsequent process
/ manufacturing controls, i.e. by stacking tanks a
number of pumps could be eliminated by utilizing
gravity feed. Consider smaller facility footprints if
feasible.
• Construction material selection: Make sure
construction material optimization is considered and
reviewed during the CAPEX project design effort,
can all pipes be carbon steel, or can we utilize plastic
piping where we used to use stainless steel pipe?
• Try to locate field piping weld at locations that
optimize the field piping erection effort.
• Manufacturing Product / Raw Material Control:
Make sure Product / Raw material waste is considered and reviewed during the CAPEX project design
effort, determine if waste can be re-worked and con-
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190. | SECTION A6
sider all possible Product / Raw Material reduction /
optimization methods.
• Carry out (one or two) Value Engineering (VE)
/ Cost Optimization Methods (COM) Programs: Undertake formal (VE) – (COM) (1 - 3 day) and develop ideas / concepts on methods of reducing CAPEX
project costs and (OPEX) operating expenditures.
Challenge current thinking, attitudes, practices and
future operating philosophy.
• Evaluate the thickness of insulation on major
equipment and piping systems so the number of hits
/ interferences is minimized, thus reducing possible
re-works.
• Are we using specifications and installation
procedures that are not applicable or appropriate to
the current CAPEX project?
• Is the construction schedule well defined and
mapped out against a pre-determined manufacturing
/ handover schedule? Are there activities that could
be streamlined or deferred?
• Decided what are the best Cost Optimization
Methods (COM) targets are implement them into the
EPC deliverables.
PROCUREMENT / CONTRACTING
CONSIDERATIONS
• Develop optimal procurement / contracting
strategy, that embraces least time and cost and enhances quality and companies safety goals
• Can owner buy out critical equipment to save
time and money? Can we get import duty / tax exemptions?
• Have all lease or buy opportunities been explored, have we considered procuring bulk quantities
and free issuing to contractor?
• Have we considered just in time (JIT) inventory control / materials management bar coding / leasing of key items / perhaps warehouse equipment?
• Have we mapped out the best procurement
plan? Is it possible to obtain lump sum bids? This
procurement approach is many times the most cost
effective contracting approach; also consider incentive contracts / DB contract / Turnkey contracts.
Copyright © 2017 Compass International, Inc.
Procurement / early purchasing of long lead items
/ contracting strategy - (Utilize most cost effective
procurement method to achieve the timely delivery
of manufacturing equipment and bulk materials).
The cost of materials, manufacturing equipment,
labor, and professional services procured through
construction contracts and purchase orders represents a substantial capital investment for all parties
involved; optimizing the procurement effort can
realize significant CAPEX savings. Develop generic
procurement forms and applications that will meet
all future CAPEX buy-out applications. Consider
issuing deposits on manufacturing long lead items
to gain a place in vendor’s production schedule or to
jump the queue.
• Be sure to request unit prices / schedules of
rates, day work rates and mark-up percentages in
all Requests for Proposal (RFP). Use as a negotiating tool and as a baseline / basis of controlling and
minimizing extra work costs.
• Have long lead items / critical equipment /
production items been identified and are these items
purchased or being negotiated? Are there any ways
of expediting the delivery of these items?
• Construction Management (CM) Select the
most experienced and cost effective firm, consider
future long term alliance relationships, if these make
sense in the long term for the owner.
• Ensure that pre-printed / computerized “standardized” Purchase Orders / Contract Compliance /
Contract Administration and Change Order Control
Documents / Request for Information / Submittals
Transmittal are available: This will greatly assist in
future monitoring, controlling and auditing and will
save both time and effort.
• Conduct an analysis of procurement and construction buyout issues and challenges. Examination
of the engineering deliverables by practiced field
construction staff to come up with different purchasing / construction approaches and methods to lower
initial CAPEX costs and optimize the construction
effort.
• Reassess various construction related indirect
SECTION A6 | 191.
costs, i.e. field establishment, general conditions,
field support / supervision, scaffolding, small tools,
consumables, construction equipment, maintenance,
repairs, training, safety, owner costs, commissioning, spare parts, vendor assistance, expense items
etc.. Evaluate methods of reducing and optimizing
these costs, without compromising safety and quality
of the completed CAPEX facility.
• Possibly re-negotiate and reduce fees, markups; multipliers and profit margins of various contracting / engineering consultants and vendors where
feasible.
• Take into account the use of preferred vendors
/ suppliers, i.e. manufacturing equipment, pumps,
instrumentation, pipe, fume hoods, electrical equipment, paint, valves, architectural items and roofing
materials etc. Obtain significant “national” discounts
where possible from preferred vendors by utilizing
their products on all future CAPEX projects. Possible savings of 10% - 35% could be achieved.
• Consider outsourcing (of non-critical staff /
engineers) where it makes economic sense.
• Review bonding requirements: are they really
needed? Review project insurance needs; make sure
there are no overlap / over coverage related to the total projects insurance requirements (BAR, Umbrella,
OSI, All risk, General Liability).
• Check status of various taxes (VAT, Sales
Tax, Business & Occupation Taxes – B & O and
any other applicable taxes). Check if these taxes are
applicable, does company have a sales exception
certificate, can VAT be recovered?
• Payment terms / Contractual issues (extended
warranty, retention, process guarantees) Consider
less onerous payment terms, 30 – 45 days is the
norm, consider modifying contractual issues that
impact the final cost.
• What standardized component associated with
Major Equipment / “black box” items can satisfactorily be substituted to save both fabrication time and
cost(s). Are there any modifications to the engineering / design deliverables that could reduce the
weight of the component(s) or reduce its footprint
thus allowing easier transportation or ocean shipping?
• All purchased piping assemblies should be
delivered to site with any appropriate supports,
hangars, expansion joints, drains, vents, field instruments / gauges and any tracing manifolds, they
should be numbered / bar coded to optimize the installation effort. Vendors that supply associate steel
/ platforms should be instructed to provide detailed
packing lists, erection drawings, cut sheets and a
listing of bolts / anchor plates.
• Can any of the specifications / tolerances be
relaxed to save both fabrication time and cost(s).
• Can any of the testing / acceptance criteria be
relaxed to save both fabrication time and cost(s).
• Are we paying a premium for “overboard”
design standards? Are the specifications, testing, QA
/QC requirement too stringent for the work being
accomplished, can these standards be re-visited to
assist in optimizing the cost of delivery time.
• Reflect on utilizing full time expeditor(s) at key
fabrication shops to optimize fabrication to enhance
delivery time to the site.
• Has the procurement / contracting plan considered off site and onsite storage, weather protection,
site congestion issues, buying or renting steel transportation containers, transportation issues associated
with overseas deliveries.
CONSTRUCTION / EXECUTION
CONSIDERATIONS
• Demolition / Removal of Hazardous Waste
Materials, (asbestos, PCB’s, lead paint and mold)
consider most timely and cost effective method of
demolition and removal from site. Do we need to
provide temporary offices and maintain them for
current operating staff? Can we obtain a credit for
scrap metal or used process equipment?
• If fast track construction methods are to be
exercised, does CAPEX budget have adequate monies for shift work, overtime, weekend working, has
productivity loss been considered, have additional
monies been added to the Preliminaries / Division 1
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192. | SECTION A6
budget?
• Select the most experienced and cost effective
Construction Management firm to support / direct
the construction effort.
• Are there any issues related to union or open
shop labor work rules and precedents that need to be
addressed?
• Is there an ample labor supply in the immediate
area to successfully complete this CAPEX project?
• Efforts should be made to have any refractory
work installed in heaters or other equipment at the
vendors shop.
• Take into account bending pipe over 2” diameter to optimize labor (welding) costs and reduce
number of pipe fittings.
• Permits construction / environmental / various:
will they impact completion of the CAPEX project?
• Plan and develop equipment, utilities, piping
and other commissioning, testing, flushing, start-up
and acceptance procedures as early as practical to
optimize handover.
• Allow for the use of off-site construction i.e.
Modularization / Skid Mounted Pre-Assemblies /
Piping / Modular walls / Structural components / Pre
– Cast Concrete / Pre – assembled control rooms.
• Are any special testing, witness testing, FAT /
cleaning / passivation requirements needed prior to
mechanical completion or commissioning.
PROJECT RELATED “SOFT” COST
CONSIDERATIONS
• How can we optimize and minimize the CAPEX projects’ “Soft” costs i.e. A/E fees, CM fees,
Owner staff costs, travel costs, Owner CM inspection, Validation costs, Plant assistance costs, start
up costs, initial start up materials costs, commissioning costs? Establish not to exceed budget that
need senior management approval for over runs,
use consultants on an as need basis and not full time
employees.
• Furniture, fixtures and equipment excluded
these cost from capital budget, consider perhaps as
an operating costs.
Copyright © 2017 Compass International, Inc.
• Ditto for warehouse equipment / shelving / fork
lifts and packers.
FACILITY OPERATING CONSIDERATIONS
• How can we reduce operating costs and operator headcount?
• Are there any ways to reduce inventory / reduce storage time 14 days to say 7 days, this could
impact or reduce the storage or warehouse footprint
size.
• Can we lease required gas storage and similar
necessary materials etc. from a 3rd party?
• How can we optimize our utility costs?
• Consider ways of optimizing raw material and
reducing storage costs.
• Could we use a 3rd party to package finished
products?
• How can we optimize the energy needs of the
facility?
• Has an overall spare parts strategy been
mapped out? Consider establishing one or two centralized global spare parts warehouse(s) for carrying
an inventory of critical spare parts.
The above listing should be used as a starting
point in the Cost Optimization Methods (COM) process, add to this list where appropriate. The Cost Optimization Methods (COM) process is a continuous
effort; questions and topics that need to be touched
on and answered include the following:
The benefits of Value Engineering / Cost Optimization Methods are as follows:
• The VE / COM effort never fails to produce
real savings (both financial and time) specific to
CAPEX projects.
• Provides value to the end user / customer and
also assists in the early planning effort.
• The VE / COM methodology described above
is a proven and dependable method of locating high
value cost reduction target that works from one CAPEX project to the next.
• Creates an audit trail / documenting savings,
ideas can be used in future CAPEX applications.
SECTION A6 | 193.
• Brings into focus cost saving concepts with the
• Habits and attitudes (we’ve always done it that
highest potential cost impact, it is not just focused
way)
on construction, operating costs can be optimized.
• Lack of communication
• Reduces CAPEX projects cost by generating
• Lack of ideas
ideas that save money while maintaining design
• Lack of experience
intent.
• Failure to use available experts
• Best time to do Value Engineering when de• Desire not to conform to new methods
tailed design is between 5 – 50% complete.
• Fear of personal loss
• Typical VE / COM meeting / study takes 2 – 3
• Not part of the big picture
days, with a detailed follow up report issued 2 weeks
• We’re making a profit – why change now?
later.
• Typical number of participants that attend VE
CHANGE ORDERS AND CLAIMS
/ COM session is 10 – 20, these people come from
Construction projects time and again involve multhe Owners organization (Management and Operatifaceted interrelationships among, owners, and
tions), the EPC companies Project
design professionals, contractors
Management, Engineering, Pro/ sub-contractors and vendors;
curement, Construction, Project
as a result numerous projects do
Controls (Estimating and Planning). Owners often initially
not meet their original goals for
refuse
to
go
along
with
• Documents used in the V.E.
time (completion date), final cost,
paying the cost of change
study, scope of work, execuquality and safety. Changes are
orders
and
claims
tion philosophy, latest drawings,
to be expected in the construction
P&ID’s, latest cost estimate.
industry (we are dealing with a
team of people that have typically
THE VALUE ENGINEERING
never worked together and who have a technical
WORKSHOP PROCESS:
challenge of pulling together a complex engineering
• Set the stage – Project Manager describes proj- design), procurement and construction effort on time
ect goals, project execution / schedule and cost.
and within a pre-established budget, the variables
• Understand project – V.E. group needs to unare many - weather, labor, materials interpretation
derstand the technical scope of the project by asking of the owners needs. Is it any wonder that construcquestions.
tion projects seem to manifest disputes and delays?
• Create improvement ideas - V.E. group generTherefore the subject of change order and claims
ates cost savings or project enhancement / improvemanagement is crucial if the contracting party is to
ment ideas.
defend his or her profit margin and business sur• Evaluate and selection of best ideas - V.E.
vival. Owners often initially refuse to go along with
group participates and votes on these ideas. V.E sub
paying the cost of change orders and claims (their
groups develop cost savings from best ideas.
first reaction is NO!!! it’s included in the price, you
• Develop a path forward – Assign responsibility included that in your bid!!!!). Contacting organizaand timing needs to individuals to compete outstand- tions typically do an inadequate job in providing
ing V.E. items.
evidence of additional engineering, procurement and
As was mentioned previously the reasons for
construction costs.
poor value:
The reasons for change orders and claims are nu• Other responsibilities than project
merous, some of the main reasons encountered in the
• Lack of time / pre-planning
engineering / construction delivery process include:
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194. | SECTION A6
• Client / Owner requested modifications during
team” players, due to the fact that change orders
the engineering / construction effort. Scope of work
and claims typically run in the 2.5% to as much
additions / modifications
as 10% of the original total install cost (T.I.C.) of
• Changed conditions (Differing / unforeseen
the project. The intent of this section / chapter is to
field conditions, i.e. underground rock, bad soil
propose a straightforward / path forward standard for
conditions, hazardous / asbestos materials / interfer- implementing change orders and to assist in supportences)
ing enhanced conformity among clients / owners,
• Delays beyond the control of the contractor
engineers, architects and contractors. (The project
• Engineering discrepancies
team) And with any luck to gain acquiescence of
• Schedule acceleration
this standard as a series of principals which will be
• Acts of God
a significant factor to the reasonable conduct of all
• Plus many more situations
“project team members” when faced with this vexAnalysis of Construction Claim: the following is ing problem of change order and claim resolution.
a listing of the steps that should be taken in pulling
A change order (refer to this Section 3 for a
together a claim or change order:
detailed description) is written /
• Identify issue / dispute (oververbal formal request “contractual
The
main
goal
of
all
parties
view).
instruction” usually compiled and
is to construct the plant /
• Identify / collect more relissued following the execution
facility
to
the
agreed
price
evant details.
(signing) of the construction con/ quality at the promised /
• Analysis of the schedule imtract to the contractor, signed / austipulated
completion
date
pact, compare to original program.
thorized by the individual named
outlined
in
the
original
en• Determine the cost of change
/ nominated in the contract (the
or claim (collect relevant cost data). gineering / or construction
owners representative / project
contract.
• Prepare interim and final cost
manager). This is the individual
impact of the change / claim
authorized to act for the owner /
• Inform the relevant parities of
instruct the contractor to proceed
cost impact.
with the performance of the work / change order,
The contracting parties (Owner / Engineering
many times an Architect / Owner’s Representative /
firm / Construction Company and a host of sub
Project Manager / Clerk of the Works. Like in other
contractors and suppliers)) must be able to provide
industries there are always divergence of opinion /
a timely written notice, together with documentaexecution practices on how to proceed with change
tion of the cost and schedule impact of the potential / orders, this is the case in the construction industry
pending change order(s). The main goal of all parties between owners, engineers, architects and contracis to construct the plant / facility to the agreed price
tors on just what makes up an adequate methodology
/ quality at the promised / stipulated completion date to evaluate, fairly compensate, compile (collect all
outlined in the original engineering / or constructhe actual costs) and estimate the cost / price modifition contract. The topic of change orders and claims cation to the contract when changes are required and
on any construction project can cause both serious
deemed necessary. A Change Order is contractual
inter personal problems and possibly significant / a
document requesting a scope modification or rectifimomentous economic impact for all parties involved cation; a written (formal) change made by the client
in the project construction process. This topic more
/ architect / engineer to the contract drawings or
than any others in the construction industry perspecifications or completion date following contract
haps causes the most conflict between the “project
award. By and large, a change order must be agreed
Copyright © 2017 Compass International, Inc.
SECTION A6 | 195.
• Collect quotes / pricing / vendor proposals and
by the owner / client and the engineer / contracany other relevant details.
tor prior to it becoming a legal modification to the
• Maintain complete set of drawings, specificacontract.
tion, correspondence, minutes of meetings that are
Checklist of supporting documentation for a
specific to the change order.
change order(s):
• Understand contract language regarding change
ESTIMATING AND COSTING OUT THE CHANGED
orders.
WORK / SCOPE ITEM:
• Issue immediate and written notice to Owners
In estimating / costing out the changed work the path
representative.
forward is define or scope out the work to be modi• Take video / or photographs of relevant work
fied or changed, this includes.
area:
• Collect relevant drawings / revisions / specifiGENERAL ITEMS
cations.
• Analysis the current documentation, or
• Request advice from owner: (Document conproduce the necessary back up materials.
versations)
• Catalog and gather together
• Create a change order specific
the relevant drawings and specifile.
fications.
• Collect quotes / pricing /
A Change Order is contrac• Mark up / red line / highvendor proposals and any other
tual document requesting a
light
the changes on the drawings
relevant details.
scope modification or rectiand specifications.
• Maintain complete set of
fication
• Transmit copies of relevant
drawings, specification, correspondocumentation to sub contractors
dence, minutes of meetings that are
/ vendors in a form of Request
specific to the change order.
for Quotation / (RFP) if appropriate, stipulate when
ESTIMATING AND COSTING OUT THE CHANGED the pricing detail needs to be returned. Additional
questions that must be considered when considering
WORK / SCOPE ITEM:
In estimating / costing out the changed work the path change orders include some or all of the following
issues.
forward is define or scope out the work to be modi• Relief from liquidated damages.
fied or changed, this includes.
• Additional General Conditions / Preliminaries:
Checklist of supporting documentation for a
• Clean up / Demolition of previous installed
change order(s):
• Understand contract language regarding change work:
• What trades will be impacted.
orders.
• Supervision, does it need to be supplemented?
• Issue immediate and written notice to Owners
representative.
WORK SPACE CONGESTION.
• Take video / or photographs of relevant work
• Will change order impact other trades / sub
area:
contractors.
• Collect relevant drawings / revisions / specifi• Will the existing / completed work need to be
cations.
demolished?
• Request advice from owner: (Document con• Will change order impact the current design
versations)
package?
• Create a change order specific file.
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196. | SECTION A6
• Will change order impact the size of MEP systems currently installed.
• Will change impact the current permit / inspection scope?
LOSS OF PRODUCTIVITY:
• Material logistics, can additional materials be
obtained?
• Re work of installed piping / electrical work:
• Winter working / protection / temporary heat:
• Will overtime / shift work be required?
• Major Equipment / Material storage.
WARRANTY EXTENSION IMPACT:
• Escalation of labor and material costs:
• Learning curve.
• Scrap or modify existing installed equipment.
EXTENSION OF TIME:
• Job site overhead, trailers, temporary toilets
and administration staff:
• Need for additional general conditions.
• Need for additional BAR insurance.
• Construction equipment / downtime / idle
period:
• Additional travel expenses / subsistence costs.
The following basic cost items / terms are involved with the vast majority of all change orders
and claims, they are describe in more detail in the
following key capital cost estimating terms.
• Direct Costs (labor, materials and construction
equipment).
• Indirect Project / Field Related Costs.
• General and Administrative Costs (H.O. and
Field related):
• Overhead Costs.
• Contingency:
• Risk Allowance.
• Profit Margin:
• Time Extension: (Extension of Division 1 /
Preliminaries)
• Additional site establishment / preliminaries:
Copyright © 2017 Compass International, Inc.
• Possible relief of Liquidated Damages (L.
D.’s):
• Bond premiums / Insurance Premiums: Mark
up on third party vendors / sub contractors.
• Other related costs.
The modification / cost and time adjustment
in contract price and completion date as a rule is
discussed initially and informally between the parties to the contract. The contractor will many times
accept an agreed to lump sum cost to perform the
extra work, with a project time extension, (this is
the usually the best is option). On some occasions,
the parties will agree to complete the work on a cost
plus (time and materials / in U.K. and Europe this is
known as “Day work” basis).
The fundamentals / basics of direct and indirect
construction project related costs have a wide definition (meanings to various constructional professionals); it is typically these issues and meanings /
definitions of these “terms” which are the top of the
list / focal point of change order problems / arguments / disputes. Direct costs are the costs of the
permanent materials (major equipment, engineered
materials and bulk materials), construction equipment, labor and subcontracted work elements that
are permanent features of the finished construction
project, which can be unmistakably recognized
and assigned as a permanent asset. To create an
satisfactory database / understanding of this topic,
it is required to recognize and list the fundamental
basics of direct and indirect project construction
specific costs (the following list attempts to itemize the major elements). It is left to the estimator /
cost engineer to select which category the specific
cost element should be assigned to. Hourly wage
rates for various craft skills / laborers, payroll taxes,
F.I.C.A. payroll fringe benefits, social security taxes,
health & welfare contributions / applicable industry training funds, builder all risk insurance, wrap
around insurance, apprenticeship training, industry
advancement (union applications), tool allowance,
travel costs / allowances, pension contributions (may
not be applicable) excused absence, travel time,
SECTION A6 | 197.
public holidays etc, indirect labor on and off site,
/ tight work areas that was not spelled out in the bid
construction equipment / rental (backhoe’s, welding documents: Working in tight spaces / small rooms
machines etc.), specialist subcontract work (typically where space is restricted were numerous operations
painting, roofing, siding, electrical etc.), permanent
must be performed concurrently. The workmen of
and temporary materials (bulks / engineered) small
several trades could become stacked (working on top
tool cost (picks, drill bits, files, saws) project reof each other) in a limited work area creating a situlated insurance project office supplies project conation in which the work cannot be completed effisumables, grease, rags, welding rods and gases etc.
ciently, interfering with the installation of concrete,
telephone / fax communication costs postage express brickwork, flooring, ceilings, piping, painting, etc.
mail, blue print machine, copying machines, permit, Limited use of construction equipment, all the conperformance bonds, temporary services and facilistruction related materials needs to be man handled
ties, clean-up costs, testing of materials, temporary
/ double or triple handled etc. Man hour efficiency
facilities, sheds and toilets etc. Permanent / tempo/ productivity loss / worker burnout due to prolong
rary bulk / commodity materials,
periods of overtime / shift work
construction equipment (contractor
effort can be a significant probowned and 3rd party) and specialist On the other hand, labor
lem. How will other work crews /
subcontract cost elements are typicrafts be affected due to possible
costs are complex to detercally easy to assign and calibrate,
demobilization / remobilization
mine and not easily itembecause many times their costs are
and congested work areas? Small
ized, unless special time
itemized on invoices (many times
order of say concrete, bricks,
card reporting / brass ally
indicated as a lump sum) or are part – site based collection syssteel etc usually cost more due
of the company’s internal financial
to the minor nature of the order;
tems are established.
reporting systems. On the other
these costs need to be determined
hand, labor costs are complex to
and passed on to the owner via
determine and not easily itemized,
the change order/ or claim. The
unless special time card reporting / brass ally – site
mind set / attitude of the work force, skilled / unbased collection systems are established.
skilled construction workers have an extreme sense
The subsequent topics itemized below listing
of ownership / pride in their work effort and in what
specific scope situations should assist in distinguish- the finished product looks like (remember the 9 / 11
ing the number of various factors to take into ac/ 2001 WTC construction / repair / rescue effort).
count when determining / collecting labor man hours
Change orders many times may possibly cause
/ costs / productivity modifiers. The total work hours logistical related problems in the planned work
needed to finish a change order in regular circumsequence / program, which many times require re
stances / conditions can be estimated utilizing in
evaluating and modifying the size and composition
house historical data; industry standard labor unit’s
of the work crews / utilization of construction equipi.e. annual estimating reference books. Fine-tuning
ment, necessitating reallocating workers to other
/ calibrating should be made for unusual / difficult
sections or hiring additional labor resources. This
or less than favorable circumstances that apply at
could cause a knock on effect of requiring additional
the project site. A number of factors to be considsupervision and additional preliminaries.. Labor
ered are. Client imposed delays such as failure to
shortage / non-availability of skilled workers, subrespond to requests for information (RFI) and failure stantial construction activity in a specific area many
to pay contractors monthly invoice. Limited usage
times will generate a scarcity / shortage of skilled
of construction equipment due confined work area’s workers which could have a significant impact on la-
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198. | SECTION A6
bor related costs, example after the 9/11/2001 WTC
/ cost escalation / inflation, when a new change order
event skilled worker in the New York area were not
delays completion of the project, the additional costs
available for a period of six months. Buildings exof labor and supervision (increased wage rates),
ceeding thee floors / high rise buildings / basement
material, construction equipment and sub-contract
work, construction specific labor costs and field
work should be calculated and included with the
indirect costs tend to increase in high rise buildchange order value. Contract end date / time extenings this is still the case when temporary elevators
sion (additional Division 1 Costs / Preliminaries)
/ hoists / scaffolding are supplied this remains the
each change order should be evaluated and estimated
case when logistic support such as drinking water
pragmatically and managed on a case by case basis
temporary trailers and toilets are made available on to safeguard the current project / contract end date
every third or forth floor, the physical effort of get(or extended completion date, there could very well
ting to the construction work location impacts labor
be a need for extending the general conditions). Fast
productivity, imagine climbing three or four flights
tracking / accelerating the completion date could
of stairs ten or twenty times a day.
impact the worker production rate / productivity
Mistakes and knock on delays, when additional
and the efficiency of the work effort. An authorized
work is necessary because of the issue of a change
time / schedule extension (i.e. 1 week or 1 month)
order, many times the consequence
will typically require additional
on the base project / original conproject related preliminaries and
tract scope is not as it should be,
home office support costs. The
i.e. the general momentum is many An authorized time / sched- site establishment and the site staff
times lost or diluted on the work
will need to be at the site that adule extension (i.e. 1 week
force, it is possible that this will
ditional period of time. This cost
or 1 month) will typically
cause field mistakes / re-work
will need to be established by the
require additional project
and “knock on delays” which can
contractor and passed onto the
related preliminaries and
be very costly to correct. Harsh
owner via a change order or claim.
home office support costs.
weather conditions and ensuing
A change order that produces a
labor productivity losses; examples
delay to the basic contract complecould include storms, significant
tion date will of course impact
snow / frost, heavy rainfall, high winds, extreme
the construction project with additional costs to the
heat / cold or fog conditions. Concrete, paint etc may Contractor (direct and indirect costs, usually addinot be allowed to be installed, heated aggregates, hot tional preliminaries are required). These above and
water and salamander heaters etc may be required,
beyond the current project related costs should be
these heaters need to be maintained, and there might recognized (fully scoped out) collected, documented
be a need for a permanent fire watch. The change
and estimated / priced out and should be included
order(s) may impact any bonus / penalty provisions
in the new change order value together with a time
or liquidated or consequential damages; this should
extension (if necessary) and presented to the owner.
be carefully considered and priced out. Will the
Acceleration activities: More often than not
change order work be completed in the later stages
the contractor is requested to accomplish a greater
of the project, will this impact labor and material
amount of work (work that is above and beyond the
costs, i.e. inflation / escalation / wage increases,
original phasing plan) in a shorter time period, matewill the work be carried out in winter months, what
rial premiums, overtime, loss of productivity, superimpact will this mean, temporary heat, partitions and vision are typically associated with this situation.
potential loss of worker productivity. Increased costs
Partial facility acceptance occupancy or par-
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SECTION A6 | 199.
tial / staged transfer / partial start up of facility:
Given that both shifts will be working on the same
This particular situation could result in the work
construction effort, there will be a specific ineffecbeing carried out after an area section / floor of the
tiveness in the hand over from one shift to the next.
facility is occupied by the owner’s staff, security
The new crew will have to go through a learning
restrictions in specific areas, protection of (owner
curve with the work completed by the earlier shift.
supplied fixtures / equipment) furniture, fixtures,
In view of the fact that both shifts use the same gear,
equipment, inventory, noise, intrusion of owners
tools and construction equipment, many times they
employees / customers, dust protection and schedwill be in different locations.
ule issues could negatively impact the construction
Overtime / shift work: Grave yard (night work)
workers approach and reduce productivity.
versus normal daytime work, in view of the fact that
Knock on effect: Many times when a change
the extra shift will be performed at night, ordinary
order give out to one contractor / sub-contractor
light will not be on hand, temporary electric lighting
repeatedly has an acute impact on the work of other
will have to be made available / maintained. Typifollow on contractors / sub-contractors / trades, vari- cally temperature / weather conditions at night are
ous organizations could be faced / challenged with
more difficult to work, temporary heating could be
extra costs because they have to modify the current
required to allow paint / concrete to cure properly.
program / series of actions to meet
Site management / field supervithe new work schedule. Work crew
sion shortages / restrictions (Adsize ineffectuality / worker proditional site staff for short duraThe construction industry
ductivity is unfavorably affected
in the twenty first century is tions to complete the change order
when workers are arbitrarily added
more multifaceted and com- work): Construction field work
to existing work crews to speed up
activities that are required with
plicated than ever before
/ finish a specific part of the projthe addition of change order work
ect. Change orders could produce
typically will be beyond the work
a condition by necessitating extra
of the basic / original contract and
work within the unchanged time schedule. Compara- may entail a dilution /watering down of the current
tively speaking there is a fixed limit on the resources field supervision.
/ number of workers and amount of construction
Considering and taking into account the above
equipment that can be efficiently utilized on a projissues should facilitate the contractor to establish a
ect.
reasonably accurate cost of executing the work in
Cost of money / lending fee’s / finance costs:
completing the change order. Thought must be given
Rescheduling caused by change orders may postto the “Influence / ripple / knock on effect” of the
pone the completion and hand over of the project
specific change order will have upon the total executhis may cause additional costs to the contractor by
tion of the total project.
having to finance the project for a longer period of
The construction industry in the twenty first centime than originally estimated / anticipated, retention tury is more multifaceted and complicated than ever
funds could be with held for longer periods of time,
before, fast track construction, material shortages,
release of liens could be extended also
plus the completive nature of the current marketPreservation / protection of completed conplace are the “drivers” all construction professionals
struction work: (Protection of previously completare faced with.
ed work): In certain shift work situations, auxiliary
Listing of construction field reports / documents
weather protection materials / heating / support systhat should be maintained at the field construction
tems may be required (salamanders / gas bottles etc). office:
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200. | SECTION A6
• Monthly job cost reports
• Visitor log
• Purchase order log
• Sub contractor log
• Commitment registers
• Daily Timesheets
• Safety log
• Bid evaluation files
• Daily construction equipment and usage report
• Minutes of all meetings
• Shop drawing log
• Submittals log
• Schedules and subsequent updates
• RFI file
• Site superintendent diary
• Photographs / videos
• Correspondence files
• Log of potential change orders / claims
A claim is a request by one of the parties to the
contract to seek additional payments and possibly
additional time to execute the contract. Analogous
to other characteristics of the construction industry,
there is the right method and wrong method to issue
a claim to a client / owner.
Reasons for a claim could be one of the following:
• An order by the owner to stop or terminate the
work
• Additional work (not part of the original scope)
• Change orders that substantially alter the original intent and scope of the original contract
• The owner’s failure to promptly reimburse /
pay the contracting parties
• The owner’s failure to provide timely interpretation of the detailed design / specification and
failure to respond to requests for information: (RFI)
• Acts of God / Force Majeure
• Subsurface or concealed physical conditions
(rock, underground conditions, high water table)
• Inclement weather conditions
• Impediments caused by untimely processing
of invoices, correspondence, approvals, submittals,
change orders, claims caused by the owner or his or
her representative.
• A host of other situations:
Categorization of claims: The following situations can many times be the basis of a delay on a
construction project:
To summarize the above commentary it would
be a fair to say that owners are often skeptical / cynical of contractor’s initial proposal for claim(s) and
change order(s). The first thought is that its a try on,
Categorization of Claims
BASIS OF DELAYS ON A CONSTRUCTION PROJECT
CHANGED
CONDITIONS
CHANGES IN
SPECIFICATION /
ERRORS / SCOPE
CHANGE IN EXECUTION
ADDITIONAL WORK
SCHEDULE /
DELAYS
Rock
Materials changes
Delays beyond the
Poor productivity Difference of opinion in agreeing
contractors control
to pricing & extension of general conditions
Water Equipment changes
Accelerated handover
Late detailed
Disputes in agreeing additional
requirements
design
completion date
Scope of work
Changes in installation Late or delayed payment Termination
(additional work) methods
Failure to provide Design errors
Failure to answer RFI’s
access to the site
Late shop drawing approval
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SECTION A6 | 201.
• Cut sheets / fabrication drawings.
many owners think that claim(s) and change order(s)
• Relevant schedules / CPM networks:
are two or three times of what they should be. The
• Separate cost coding / WBS.
contractor has the obligation to prove the costs that
• Other relevant supporting data:
he / she is passing onto the owner are correct and
Having some or most of the above documentalegitimate and has to prove that this is the case. The
tion will many times be all that is needed to prove,
following listing of documentation can in many
ways help support a claim / change order or in some settle and finalize the specific change order(s) or
cases if this material is missing can mitigate a claim claim(s). Many times the owner and contractor will
go back and forth on the issues and eventually agree
or change order.
to a fair value.
• All RFP / instruction to bidder’s correspondence.
CONTINGENCY CONSIDERATIONS
• Original bid documents.
AND THOUGHTS
• Agendas / Bulletins / Instructions to bidders:
(CAPEX) i.e. capital investment
• Sub contractor / vendor quotes
in a new facility is a common /
/ addendum and change orders.
The definition of the word
ongoing activity for just about all
• Daily time sheets / manpower
“contingency”
is
as
follows:
major chemical / manufacturing
histograms:
An amount / value of money
organizations. Prior to the ruling
• Monthly reports:
or time incorporated into
(by the companies investment
• Telephone conversation rea capital cost estimate for
committee) to proceed to invest
cords.
funds into a new facility, a cost
• Shop drawings / vendor docu- changes / modifications
that
history
indicates
will
estimate is compiled to determentation / submittal records:
happen / occur during the
mine the cost of the engineering
• Shop drawing register:
life cycle of the project.
(detailed design), procurement
• Record all significant events:
(the purchase of bulks and major
• Keep all project corresponequipment) and construct work
dence:
related to the proposed facility. An estimate by its
• Daily equipment usage reports:
very nature is inexact and typically fails to cap• Equipment / material packing lists:
ture the full extent of the final scope of the project,
• Photographs / videos:
because it is compiled with incomplete information.
• Keep all specifications and drawings together
The cost ramifications of this “missing scope” towith any revisions:
gether with the perceived risks is typically captured
• Marked up drawings and specifications (Asby the application of a contingency provision (line
Builts).
item), be it 20% or 5% of the total cost of the proj• Field records / Testing results.
ect, the amount / value of the contingency, of course,
• Inspection reports / Laboratory information.
is dependent on the perceived challenges and risks
• Request for information log:
that the projects may encounter during its execution
• Subcontractor pricing data (i.e. schedule of
phase and of course the accuracy of the scope of
rates):
work and the skill of the team compiling the estimat• Vendor costing / pricing details.
ing deliverables.
• Applicable invoices (Owner, Sub-Contractors,
The definition of the word “contingency” is as
Vendors and Plant Hire).
follows: An amount / value of money or time in• Daily diary.
corporated into a capital cost estimate for changes /
• Insurance damage reports:
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202. | SECTION A6
modifications that history indicates will happen / occur during the life cycle of the project. Contingency
should exclude changes in the pre-established scope
of work. Contingency: what is it, how is it used in
the Engineering, Procurement and Construction
Industry (E.P.C.)?
An amount / value added to an estimate to allow
for changes that history indicates will happen. Is not
for scope changes, the scope of any project should
be known, even conceptually, i.e. a plant produces
150 ton per day of cement, a refinery produces
100,000 barrels of oil a day, any delineation from
this i.e. the plant will produce 200 tons a day of cement is a change in scope, this cost increase should
not come out of the contingency fund. Uncertainty
of incidence, items reliant on indeterminate happenings; together with attendant expenditure / cost,
an unanticipated cost related occurrence. The word
contingency is in all probability one of the most
abused and misconstrued words used in engineering / construction industry today. The most common
definition of contingency is, “an amount of time or
money added to the base cost estimate to allow for
changes that experience indicates will happen during
the execution of a project.” Refer to the term contingency to ten engineering / construction industry
professionals and you would most likely get ten different elucidations as to what contingency was and
how it should be appraised and utilized and what the
primary purpose function of contingency is. (Contingency is by definition a widely misused term) many
people think of contingency as a scope allowance,
this is a totally erroneous view of the real meaning of contingency. Contingency, the word to an
engineering / construction professional could create
a pre-conceived image / thought process. Pre-conceived ideas / concepts could be:
• An overall percentage (value) applied as a penultimate activity in the estimating / bidding process,
(a grab number, 15%, 10% or 5% or a calculated
value, that is based on the analysis of known and
unknown project specific risks)
• Which team / parties compiles / selects / con-
Copyright © 2017 Compass International, Inc.
trols it and modifies it, is the estimator / cost engineer / project manager, the right individual to calculate this value?
• What happens if any contingency money is
remaining at the conclusion of the EPC effort?
The comprehension and treatment of contingency replicates an individuals skill sets / education
/ knowledge / years of hands on EPC experience, /
understanding, and general attitude of a person (optimist or pessimist, half full or half empty attitude).
Methods, ways of determining, written measures on
assessing contingency usually are different in distinct industry sectors and from one business / company to another, manufacturing V’s E.P.C. contracting industry seem to be fundamentally different.
Other terms that have crept into the “contingency” definition include: (imagine the action of trying
to fine tune a radio to get the best reception – well
these definitions are similar).
• Resolution allowance
• Design development
• Focus allowance
• Engineering growth
• Technical contingency and general contingency
All of these could in some ways be considered
a contingency value; their purpose is to protect the
validity of the capital cost estimate, by recognizing
that scope definition becomes more focused as the
project definition become more defined. Should the
contingency value recommended by a cost engineer
/ estimator functioning for an engineering firm or for
an owner company be more or less accurate than the
value suggested by the other interested third parties associated with the project. What contingency
value is correct and what value is unrealistic, is 5%
correct or should it be 15% or even more. Should
the value be a low target or high? The response to
this question needless to say is that no one single all
encompassing, definition, designation, procedure or
statement of contingency covers its overall use in the
construction industry.
Contingency values should be included in a capital cost estimate to compensate for the main topics
SECTION A6 | 203.
mentioned below:
• Accidental events; Major equipment is damaged in transit
• Economic Changes, oil prices spike due to
Middle East war
• Errors, 4 - 6 drawings were not estimated
• Estimate imperfections, wrong scales were
used in determining quantities
• Oversights, off site tank farm was incorrectly
scoped out, we have missed / not estimated 3 field
storage tanks and its associated piping systems. Addition items that could be considered contingency related items include strikes, errors on drawings, sever
weather conditions (floods, hurricanes, earthquakes)
estimating errors, arithmetical errors, installation
mistakes, bankruptcy of vendors / sub contractors.
Successful utilization of the term contingency
can only be comprehended by knowledge and recognizing the value of such feature as the following
topics:
• Our track record. / The historical track record /
performance of the operations / execution group(s)
• Current and future workload general / economy
predominantly concerning risk management / mitigation, world events that impact general industry
and the global economy.
• Is company in the “risk business” does company submit lump sum, hard money bids / the operating principals / makeup of business and industry, i.e.
private V’s government operating parameters?
• How good are we at capital cost estimating,
how good are the forecasting skills of people involved in the capital cost estimating effort and future
execution effort?
• Team strengths; do we have enough capable
individuals?
• Quality of bid / estimating deliverables / the
definition / quality of the capital cost estimate. And
the quality of the engineering / specification deliverables provided. The “complete scope of work definition” together with the execution plan.
• The risks / the restraints on specific project
related activities or special risk items, such as time
or quality, process / manufacturing / performance
guarantees.
The following is a listing of contingency values
for five estimating levels, together with the relative
accuracy of these estimates:
TYPE OF ESTIMATE CONTINGENCY % ACCURACY % +/OOM / Ball Park / 30 - 40
40 – 50
Blue Sky
Conceptual /
20 – 30
20 – 30
Pre-Design / Feasibility
Front End / (FEED) /
15 – 20
15 – 20
Preliminary
Budget Control
7.5 – 15
5 – 10
Lump Sum / GMP /
2.5 – 7.5
0-5
Turnkey
The ground rules of estimating / cost control
(Project control issues as described in previous sections must be contained within the formal scope of
work): One of the main reasons for budget / over
runs is unknown items (Undefined scope), together
with imprecise scope / estimating definition / data
during the estimating effort. Prior familiarity with
project control issues is crucial for individuals involved in selecting / evaluating the required contingency requirements. Many times these accounts /
line items / future expenditure items are more often
than not articulated (discussed by the team in any
depth). Sometimes these line items are treated as
allowances and may not have sufficient definition
to be accurately valued. Contingency should not
become a mixture of, catch-all line item, it’s always
5% or 10%.
It should have an approach, basis and a methodology in it’s build up and how it is managed during
the project execution phase (and what happens to
contingency monies not expended). The contingency
line item many times materializes as the last but one
/ penultimate line cost item on a capital cost estimate summary page, (some organizations agonize
over it’s value, some use 5% or 10%). It is many
times indicated as a specific percentage / line item
this together with a value that is estimated for the
Copyright © 2017 Compass International, Inc.
204. | SECTION A6
activities specific to the Engineering, Procurement
and Construction (EPC) project. The intricacy of
executing an EPC project - the detailed design, the
procurement and construction (and project control)
activities with a fixed completion date for a fixed
sum of money, is a serious undertaking that needs
to be well thought out when evaluating / weighing
up contingency risks / considerations. Terms and
Conditions / Type of Contract: The precision of the
capital estimated cost will many times be enhanced
for lump sum / fixed price construction projects
versus those utilizing “open” ended reimbursable
cost plus (+) forms of contract. Specific Events /
Construction and Procurement Problems: Lock outs,
strikes, world event such as the 9/11/2001 terrorist attack and the “knock on effect” to the overall
world economy, performance warranties, liquidated
damages, completion bonus, slippage of major
equipment deliveries, engineering delays, extreme
weather conditions, minor / major accidents, engineering errors, inflation “spikes” and differing labor
productivity performance are just a small number of
the many construction related issues that could have
an effect on the accuracy of the projects final cost.
Questions that should be answered prior to the
application of contingency are:
• What is the probability of exceeding the capital
cost estimate (what happens if we exceed the A.F.E
by a value greater than 10%)?
• What is the probability of under running the
capital cost estimate (do these under run funds go
back to the operating company)?
• If the capital cost estimate including the calculated contingency exceeds the AFE budget, what
are the consequences, will we need to go back to the
B.O.D. for additional A.F.E. funds (Will Value Engineering be required or a will new scopes of work
need to be developed, what are the consequences of
this happening)?
Copyright © 2017 Compass International, Inc.
TYPICAL CONTINGENCY PERCENTAGES /
CONSIDERATIONS:
Limited / No Risk: Lump sum bids, signed
purchase orders, (95% of the major equipment is
purchased) executed contracts and work completed.
- 0 – 2.5%
Low Risk: We have obtained firm quotes; (75%
of the major equipment is purchased), all the subcontracts have not been executed; unlisted major
equipment items still remain; detailed design may be
80% complete, the construction work may be 30%
-50% complete. - 2.5% - 5%
Medium Risk: We have obtained firm quotes;
(35% of the major equipment is purchased), all the
sub-contracts have not been executed; we are still
receiving bids; unlisted major equipment items still
remain; detailed design may be 50% complete; the
construction work may be less than 10% complete.
- 5 – 10%
High Risk: New client, new technology, issues
around labor performance and productivity need to
be established; liquidated damage clauses in effect;
detailed design may be 20% complete; the construction work may not have yet started. Bulk materials
take off’s and mechanical / I & C sub contractor
costs still in a state of limbo and any process performance guarantees that are required. - 10 – 20%
Resolution Allowance: Experience indicates
that invariably some items will be missed out of the
estimate, to compensate for this it is appropriate to
include an allowance / line item called Resolution
Allowance this could range from 2.5 – 7.5%, an
example of this is floor drains, they are not shown
on the drawings to date (They will be indicated on
the updated drawings in a month or two, however
this scope item has not yet been defined) but we
know we will need them as part of the project. Other
nomenclature for Resolution Allowance includes:
• Design Development
• Engineering Growth
• Focus Factor and Calibration Factor
• Definition Factor
SECTION A6 | 205.
RISK MITIGATION / APPRAISAL AND
OPTIMIZATION THOUGHTS
A risk analysis workshop is an essential scope definition deliverable that assists greatly in the estimating effort. It provides an appropriate way to audit
and benchmark the accuracy of the scope of work,
and therefore the resulting accuracy of the estimate.
The following topics should be considered when
compiling the capital cost estimate, or in the final
estimate review process. Some of these issues can
have a significant cost impact to a capital project and
should be resolved in the early stages of the project
to minimize the operational / execution effort and of
course to minimize / optimize the final cost of the
building / facility
PROJECT LOCATION
• Close to EPC office (minimal out of pocket
travel expenses)
• Far distance from EPC office (travel costs, trips
home, hotels & per diems)
• Overseas location (work permits, travel costs,
hotels & per diems)
• Need to hire new staff if a far distance from
existing H.O.
PROJECT SIZE AND CURRENT CONSTRUCTION
ACTIVITY
• Small project less than $5 million
• Large project $50+ million
• Available footprint / size of work (phased approach or the need to modularize
components off site)
• City or rural location
A risk analysis workshop
• Current engineering and conis an essential scope
struction activity in this immediate
definition deliverable
location
that assists greatly in the
• Welcoming local community,
estimating effort.
looking for new jobs
CONTRACTORS CAPABILITY TO
SUCCESSFULLY EXECUTE EPC
PROJECT
• Adequate bonding capacity of general contractor / subcontractor(s)
• Availability of qualified staffing resources, are they committed
to other projects?
• Adequate available office accommodation for
owners project staff
• Technical expertise of key team members /
personnel
• Proficiency with this scope of work
• Ability to obtain or assist in obtaining related
permits
TYPE OF EPC PROJECT
• New grass roots field application
• First of its type: (never been done before – perhaps only in a small scale pilot plant)
• Revamp / upgrade project
• Proven technology
• Continuous or batch process
• Sophisticated / Hi-Tech Facility / high level of
control systems
LABOR FACTORS
• Union current labor agreements
• Non Union (open shop)
• Merit shop
• Drug testing requirements
• Interface with client’s workforce
• Need for worker training
• Required worker proficiency (pipe fitters, millwrights, electricians –use of TCN’s)
• Local Productivity V’s Gulf Coast (or other
specified location)
• Union Wage Scales, future increases
• Prevailing Wage rates
• Unemployment levels
MONETARY ISSUES
• Cost of proposal preparation
• Performance Bonds, other boding requirements
• Import duties / Sales Tax issues
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206. | SECTION A6
• Finance Costs
• Profit Margin
• Payment terms (30 - 45 days or possibly more)
• Cash flow requirements
• Inflation / Escalation projections
• Currency Impact
• Exchange Rate Basis (basket of currencies)
• Contingency (technical and General)
• Completion Bonuses
• Liquidated damages
• Penalty clauses
• Shared savings
• Capital V’s Expense philosophy
• Operating costs / operating materials
• Taxes (local, B & O, federal)
CONTRACT LANGAUGE / CLAUSES
• Scope changes initiated by client
• Payment method for scope changes / change
orders
• Warranty issues (time period)
• Consequential damages ramifications
• Penalty / bonus clauses
• Liquidated damages
• Insurance issues coverage (BAR – General Liability)
• Retention issues
• Delays, extension of time
• Parent company guarantees
• Invoice approval bottlenecks
FORM OF CONTRACT
(TERMS AND CONDITIONS)
• Cost Plus / Reimbursable
• Fixed Price / Lump Sum / Hard Money
• Schedule of Rates / Unit Price
• Negotiated Price
• Design Build Contract
• Guaranteed Maximum Price (GMP)
• Management Contract
• Contract language / Terms and Conditions
• Onerous terms
• Extended Warranty issues
Copyright © 2017 Compass International, Inc.
• Liquidated damages issues
• Consequential damages issues
• Performance guarantees
• Dispute resolution issues
• Applicable laws
SITE LOCATION FACTORS AND ISSUES
• Remote / hostile location
• Need for camps and catering
• Mobilization / demobilization issues
• Accessibility to existing services / utilities
• Installation of temporary road and subsequent
maintenance
• Demolition / hazardous material(s) removal
• On site / off site storage needs
• Construction of batch plant / temporary pipe
fabrication facilities
• Temporary screens / protection issues
• Safety issues / drug testing
• Overcrowding / available workspace / phased
approach
• Working in existing operating facility / protection of ongoing operations
• Time card (brass ally) / security
• Material management / logistic requirements
• Onsite fabrication facility (pipe and structural
steel)
CLIMATIC CONDITIONS
• Extreme heating or cold working conditions
• Additional costs related to heating / protecting
wet trades
• Installation tolerances add-mixes (high / low
temperatures)
• Temporary heating to completed work
• Snow removal costs
• Temporary protection of completed work
• Pumping of rainwater from foundation and
trenches
• High water table (well point system)
• Weather window issues
SECTION A6 | 207.
PROJECT DELIVERY ISSUES
• Fast Track Engineering / Procurement / Construction approach
• Overtime / shift work premiums
• Long lead M.E. delivery issues
• Ocean freight costs
• Early payment / deposit issues
• Expediting issues
• Trafficking issues
• Phased completion issues
RISK MITIGATION WORKSHOP
• Conduct 1 – 2 day formal risk mitigation session in first couple of weeks / months of projects life
cycle, document all risks that could compromise the
completion or cost of CAPEX project
FEDERAL / STATE REGULATORY ISSUES
• Building / Environmental / Fire marshal permits / Elevator
• Inspection visits and schedule issues
• Applicable Submissions to township and federal agencies
• OSHA issues
• Validation issues (US FDA)
OWNER / CLIENT INTERFACES
• Owner provided (free-issue equipment and
materials)
• Corporate Engineering / Plant Engineering
involvement
• Utilization of client specifications / standards,
or use industry standards
• Engineering involvement (major or minor role)
• Construction Management (major or minor
role)
• Penchant for scope changes by R&D group
during EPC effort
• Ability of client to pay on time / financial
strength / possibility of take over
VALUE ENGINEERING
• Conduct 1 – 2 day formal V.E. session when
detailed design is 10% - 40% complete; conduct
V.E. session offsite to ensure full attention of V.E.
team
Copyright © 2017 Compass International, Inc.
SECTION B1
Cost-Capacity Equations /
Exponents
T
he following pages list out 180+ Process
multiplied by 0.70 (exponent) = 0.672
Unit (Operating Units) / Major Equipment
The original 15,000 gallon plant cost $14.45 militems and Construction related to cost
lion this value multiplied by 0.672 = $9.71 million,
– capacity equation / exponents (it is the
this would be the cost of an 8,500 gallon a day plant.
intent to add additional categories in future This value can be calibrated for escalation if necesannual updates). A quick capital cost estimate(s) can sary.
be compiled by using this method / approach known
As was previously mentioned this approach
as cost capacity – exponent’s
should be utilized for very early
method. (Bear in mind the product
/ order of magnitude estimates,
of the resulting values unfortunately
many times it is the first cost
The following pages list
is not very accurate – so be careful
estimate compiled. The industry
out 180+ Process Unit
with the resulting values).
average cost – capacity equa(Operating Units) / Major
This cost capacity – exponent
tion or (exponent) cost capacity
Equipment items and Conis relatively seasoned approach
factor (n) has an average value of
struction related to cost
or method of estimating “process
between 0.40 and 0.80 (of course
– capacity equation /
related” plants / facilities and prothere are cost – capacity equaexponents
cessing equipment – major equiptions / exponents that fall above
ment (M.E.). On many industrial /
and below these values, as can be
manufacturing plant projects such
seen from the list below).
as chemical facility / process plants, there is a relaThe “infamous” 6/10th rule or 0.60 factor is
tionship between the capacity of the plant and the
widely and incorrectly used throughout industry.
historical / current cost of the facility.
Numerous engineering and construction professionA new facility production rate, divided by known als have for years wrongly applied the cost – capacifacility production rate, multiplied by known facility ty equation / exponent by means of 0.60 as the value
cost, multiplied by appropriate cost – capacity equa- of (n), when in reality the appropriate value is hardly
tion / exponent listed below, will provide an early
ever 0.60 as can be seen from the following list.
OOM estimate. An example of this is as follows:
The $64,000 question is - is the OSBL work /
An Acetic Acid Plant: A 15,000 gallon a day
scope included in the factors, (this issue is the subfacility cost US$14.45 million to engineer, procure
ject of some debate – and can be considered a grey
and construct; what would an 8,500 gallon plant cost area) this feeds the argument of why the accuracy
to engineer, procure and construct?
range i.e. +/- 35% for this cost estimating method
The cost – capacity equation / exponent for an
is so wide. This procedure is assumed for the same
Acetic Acid Plant is 0.70, taken from the list below.
time period and location, the value / outcome should
The calculation is 8,500 gallons divided by
be calibrated by an inflation / escalation index‘s.
15,000 gallons = 0.566 this value multiplied by xy
This estimating concept is thought to have originated
Copyright © 2017 Compass International, Inc.
210. | SECTION B1
in the 1940’s and this estimating approach is widely
utilized in the “Process / Chemical / Manufacturing“
industries for a good number of processes, plants
and major equipment items, however these exponents in a lot of cases fluctuate over a wide range.
Cost – capacity equation / exponent values can be
found in various published technical and reference
books and articles.
Basically, this capital cost estimating method
is used to decide on various early economic case
studies, project - process configurations / schemes
/ process approaches / front end studies. This estimate is typically compiled when little or no detailed
engineering is available perhaps 2% - 3% or even
less, (or it might be done when there is a preliminary
engineering report) the estimating data is taken from
early P.F.D.’s, and preliminary major equipment
lists, daily / yearly production rates, historical data.
The accuracy of this type of estimate as was earlier
mentioned is perhaps at best +/-35%, contingency
should not be added to the estimated cost, presumably the historical cost data, i.e. exponent is based
on total installed cost which includes all major
equipment, bulk materials, field labor, in directs
including detailed design, construction management
and contingency. The cost – capacity equations / exponents indicated below do not reflect the O.S.B.L.
scope of work.
The list following are cost – capacity equations
/ exponents for a variety of process / chemical /
manufacturing plants and process equipment: The
data was compiled from North American and some
Western European facilities constructed in the 1995
– 2016 period. A line item value must be added to
the resulting results to incorporate OSBL scope 10%
- 30% would be appropriate, for significant OSBL
work this value needs to be increased to perhaps
30% – 50%.
Copyright © 2017 Compass International, Inc.
PROCESS UNIT / MAJOR EQUIPMENT / CONSTRUCTION
RELATED COST - CAPACITY EQUATIONS / EXPONENTS
Acrylonitrile Butadiene Styrene Acetaldehyde plant Acetic Acid plant Acetone plant Acetylene plant Acrylonitrile plant Acrylic acid plant Agitator Propeller Agitators Propeller Ditto turbine Air compressor Air dryer Air handler Draw thru (DX) Alkylation, large unit Alkylation, small unit
Alumina Sinter Aliminium Sulfate Argon facility Ammonia plants Ammonium Nitrate Ammonia Sulfate Autoclave 1, 000 PSI Aviation fuel Axial duct fan up to 10,000 CFM Bagging Machine Ball mill Bauxite Benzene facility Blender rotary Blower Axial Blower centrifugal Boiler (packaged) Brewery Buildings Butadiene Butane Butanol plant Butyl Alchol plant
Caprolactum facility Carbon Black Caustic soda plant Cat Cracker Centrifuge Chlorine plants Column fractionating 0.72
0.73
0.70
0.48
0.68
0.63
0.65
0.5 – 5 HP 0.70
5-50 HP 0.45
0.37
0.35
0.58
0.82
0.65
0.71
0.65
0.68
0.86
0.62
0.63
0.75
0.95
0.85
0.45
0.77
0.65
0.75
0.71
0.45
0.55
0.55
0.70
0.63
0.70 – 0.80
0.70
0.72
0.45
0.80
0.55
0.67
0.45
0.58
0.95
0.49
0.60
SECTION B1 | 211.
PROCESS UNIT / MAJOR EQUIPMENT / CONSTRUCTION
RELATED COST - CAPACITY EQUATIONS / EXPONENTS
PROCESS UNIT / MAJOR EQUIPMENT / CONSTRUCTION
RELATED COST - CAPACITY EQUATIONS / EXPONENTS
Conveyor Belt 0.75
Ditto Bucket 0.55
Ditto screw 0.80
Ditto Vibrating 0.85
CO and CO2 hydrogen stripper 0.71
Cooling towers 0.65
Coke oven gas stripping unit 0.78
Coking (delayed) top entry unit 0.58
Coking (Fluid) 0.46
Compressor recip, air cooled 2 stage, 100psi 0.70
Cracking unit, catalytic (cat cracker)
0.62
Cracking – hydro 0.55
Cracking – thermal 0.68
Cracking, thermal reforming unit
0.68
Crusher cone 0.83
Crystallizer 0.72
Cyclohexane unit 0.55
Cyclone dust collector 0.76
Delayed Coker 0.58
Desalter unit 0.67
De-sulfurization unit (Clause-tail gas)
0.59
Distillation (atmosphere) 0.87
Distillation (vacuum) 0.73
Double cone blender 0.46
Dryer, drum 0.50
Dryer, pan 0.42
Dust collector 0.77
Ductwork 0.58
Economizer 0.78
Ejector 0.50
Electric Motor 5-25 HP 0.65
Electric static precipitator 0.75
Ethanol plant 0.70
Ethylene unit 0.80
Ethylene glycol 0.75
Ethylene Oxide unit 0.75
Evaporator vertical tube 0.55
Evaporator horizontal tube 0.58
Evaporator 1,000 - 10,000 gallon 0.50
Fan, centrifugal 0.66
Filter press plate / press 0.57
Ditto wet leaf type 0.55
Ditto dry 0.51
Flare - elevated 0.60
Flare - ground mounted
0.40
Formaldehyde facility 0.60
Furnace box 0.75
Furnace cylindrical 0.80
Gas-recycling unit 0.73
Gas dehydration unit 0.65
Glycol unit 0.70
Hammer mill 0.81
Heaters, gas fired 0.45
Heat Exchanger u tube 0.55
Heat Exchanger S/T, floating head c.s. 200SF 0.62
Heat Exchanger S/T fixed sheet c.s. 200 SF 0.48
Hopper / Silo conical 0.65
Hydrochloric acid facility 0.70
Hydrogen production facility 0.67
Hydrogen Peroxide 0.72
Hydrofluoric Acid plant 0.71
Hydrogen sulfide stripping unit 0.61
Hydro treating unit (desulfurization)
0.68
Isomerization unit 0.65
Isoprene 0.59
Kettle, glass line 500 gallon and above
0.40
Jacketed reactor 0.55
Liquefied Petroleum-gas recovery plant
0.66
Lube oil plant 0.68
Methanol plant 0.66
MTBE facility 0.65
Natural gas facility 0.63
Nitric acid 0.65
Nylon facility 0.63
Oxo – Alcohols unit 0.73
Oxygen production plant 0.68
Paraffins facility 0.65
Paraxylene facility 0.60
PET facility 0.58
Phenol plant (High Purity) 0.70
Phthalic Anhydride facility 0.68
Phosphoric Acid plant 0.64
Polyethylene plant (High Density) 0.62
Polymer plant, large unit 0.66
Polymerization 0.55
Polymer plant, small unit 0.75
Polyvinyl Chloride facility 0.63
Power Plant Coal 150 – 1,500 MW 0.85
Power Plant Gas 150 – 1,500 MW 0.82
Power Plant Oil 150 – 1,500 MW 0.85
Copyright © 2017 Compass International, Inc.
212. | SECTION B1
PROCESS UNIT / MAJOR EQUIPMENT / CONSTRUCTION
RELATED COST - CAPACITY EQUATIONS / EXPONENTS
Power Plant Nuclear 150 – 1,500 MW Precipitator dust collector Pressure Vessel (CS) Pressure Vessel (SS) Propane Deasphalting plant Propane Dewaxing plant Propylene unit Pulverizer mill Pump centrifugal 400 GPM and above Reactor, C.S. or S.S. 1,000 gallon and above Reactor SS glass lined 1,000 gallon and above
Refineries, 50,000 barrels / day & above and larger
Refineries, 50,000 barrels / day & smaller Reforming, catalysts units Refrigeration plant Rotary Drum Filter Roller mill Scrubber Separator centrifugal Soda bicarbonate facility Solvent extraction plant Solvent dewaxing unit Soybean extraction plant Sphere storage tank Styrene plant Steam Boiler / Production 100 psi Steam Boiler / Production 500 psi Sulfur production / recovery unit (Clause / Amine)
Sulfuric acid plant Tanks C.S. Floating head 10,000 gallon and above
Tank C.S. Glass lined Topping Unit Tower C.S. W/o trays Toluene facility Transformer Tray sieve type Turbine Urea plant Vacuum Distillation unit Vacuum Flash unit Vibrating screen Vinyl acetate Vinyl chloride unit Visbreaker NON EQUIPMENT – FACILITY ITEMS:
Civil works Construction Labor Piping Structural steel Engineering / Drafting work Copyright © 2017 Compass International, Inc.
0.77
0.75
0.60
0.65
0.60
0.54
0.72
0.37
0.37
0.50
0.55
0.63
0.65
0.60
0.65
0.66
0.63
0.70
0.55
0.68
0.88
0.72
0.73
0.72
0.77
0.63
0.77
0.63
0.67
0.54
0.51
0.66
0.60
0.67
0.58
0.83
0.66
0.75
0.62
0.64
0.65
0.68
0.83
0.63
0.67
0.45
0.87
0.67
0.47
SECTION B2
Chemical Plants /
Manufacturing Facilities
RATIO / PERCENTAGE ESTIMATING FACTORS
T
he data and various cost models contained tors and owners have compiled their own factors
/ multipliers to replicate their particular practices
in this section are supplementary to the
data contained in Section A – 3. This ratio and historical data. Note these factors are useful
for coming up with very early
method is based primarily
order of magnitude estimates, the
on Lang type factors, this method
accuracy of these factors are at
comes up with a total installed cost
these factors remain valid
best +/- 30%. When evaluating
(T.I.C.) for a particular facility, and
today as an early estimatthe above methodology consider
it is compiled by multiplying the
ing tool
what Mr. Hans J. Lang published
cost of major equipment items, i.e.
in the June1948 edition of Chema compressor, a pump or a number
ical Engineering.
of pumps, a tower etc, by specific
The basic concepts of Mr. Lang’s factors are as
multiplier. This multiplier (is for the most part all
follows:
inclusive) includes such items as concrete, structural
steel, piping, electrical etc. (i.e., all the field labor
and bulk material items and field in-directs plus deTYPE OF FACILITY
FACILITY TYPE
Fluid / Liquid Facility:
Delivered Major Equipment Cost
tailed design). The “grandfather” of ratio factors is
x 4.74 for a fluid / liquid process
thought to be Mr. Hans Lang who was an Engineer
plant. = Total Estimated Plant
/ Estimator with a major engineering firm in Phila
Cost.
delphia, Pennsylvania, in the late 1940’s and early
Solids / Fluid Liquid
Delivered Major Equipment Cost x
1950’s. The method is known as the “Lang“Factor
Process Facility:
3.63 for a solids / fluid liquid
method, and is still widely used in the “Process /
process plant: = Total Estimated
Chemical” related industries. There are a number
Plant Cost.
of comparable factors produced by other individuSolid Facility: Delivered Major Equipment Cost
als, these individuals include Hand, Cran, Gallagher,
(i.e. as an example x 3.10 for a solids process plant.
Suarez, Guthrie, Nishimura, these individuals have
a cement production
= Total Estimated Plant Cost.
plant, limited need for
done additional research work on the basic concept
piping systems)
developed by Mr. Lang, other proponents of this approach include Bach, Chilton, Peters & Timmerhaus,
Mr. Lang presented this data approx 50 + years
Miller, Wroth and Compass International to name
ago, is this data still relevant today? In many ways
but a few. In view of the fact that some of these
the answer is yes. Things that have changed in the
factors were introduced 20 - 40 + years ago, many
estimators / engineers are skeptical about using them last 50 years include:
• Instrumentation / control / automated systems
today; however these factors remain valid today as
- the use of sophisticated Delta V and TDC 3000 are
an early estimating tool. Many engineers, contrac-
Copyright © 2017 Compass International, Inc.
214. | SECTION B2
commonplace today, these are totally different than
systems utilized in the 1940 / 50’s, they are much
more expensive today than the time these factors
were established:
• Environmental issues:
• Project delivery methods:
• Different materials:
• Different major equipment and engineered bulk
materials etc:
• Greater use of construction equipment:
• The possibility of better productivity:
The above values do not mention Outside Battery Limits work (O.S.B.L.) work, the assumption
being that the above values are for Inside Battery
Limits work (I.S.B.L.) work only. There are other individuals that developed ratios and multipliers; some
of the most frequently used “multipliers”, are mentioned above. As we stated before the information
contained in this section is supplementary to the data
contained in Section A – 3. Ratio capital cost estimating is a straightforward approach to producing
front end / preliminary capital cost estimates, it is a
low cost estimating solution, it is a reasonably fast
method of arriving at a +/- 25% accurate estimate.
The procedure / method used in generating the cost
/ ratio / percentage data contained in the following
lists (Example 1, Example 3, Example 4, Example 5
and Example 6) was assembled from historical cost
data from over 25+ comparable “grass roots” chemical / manufacturing facilities which were constructed
in North America within the last 10 years. Additional
ratio data is outlined in section A - 3 which is presented in a slightly different format, but in many
ways based on the approach utilized in this section.
The projects from which data was collected from
ranged in value from $5 to $150 million. The base
data, which was commenced in the early 1990’s,
has been updated / calibrated to reflect today’s time
frame, 2016, this type of data could be considered to
have an accuracy of +/- 25%. This ratio / percentage
data has been constantly re-evaluated / calibrated /
benchmarked to audit and keep the data current to
reflect market conditions. This data includes direct
Copyright © 2017 Compass International, Inc.
major equipment based at 100.0 or 1.00, civil work,
piping, electrical work and other construction activities etc, the indirect costs, EPC contractor fees
/ markups, many times these costs are to a great
extent impacted / influenced by the current and
future economic climate, project schedule, company
workload, client (new or existing) and type of contract i.e. lump sum or reimbursable, the vast majority
of process related projects are executed on a lump
sum basis. Outside battery limits / off sites records
/ cost data were excluded from the percentages /
ratio’s indicated these costs will fluctuate considerably from project to project. This value / percentage
can vary from 10% to 70% of the Total Installed
Cost (T.I.C.) of the I.S.B.L. value; typically it ranges
in the 10% to 30% range. This data does not apply
to revamp / upgrade type projects, these types of
projects could cost between 25% and 75% more than
the “grass roots” data indicated below and in some
situations higher than 75%. A listing of O.S.B.L. and
Revamp / Modernization calibrations are indicated
in this section. The following ratios / percentages
have a wide range, for normal / mainstream plants,
it is recommended to utilize the lower to average
ratios / percentages, however the ratios / percentages
should be reviewed carefully and perhaps an average
or higher value should be selected
Issues that could influence various ratios and
percentages:
1) Economic climate, in boom periods / times
such as is the case in South East Asia in the early
2000’s, material and labor shortages can occur, this
impacts the cost of a project, the delivery of long
lead major equipment is impacted also, this has a
ripple effect on the project, the major equipment
takes longer to be delivered causing the site establishment to be place for an extended period, this
could impact the cost by 0 – 10%, consider if the
initial CAPEX estimated needs to be adjusted for
this situation. However this situation has changed
somewhat with the 2008 / 2009 world economic
downturn.
SECTION B2 | 215.
2) Congested work area / poor site conditions,
tight working spaces typically impact the labor
forces productivity and bad ground typically drives
the site work, civil (piling, planking & strutting and
or sheet piling) and concrete values up, this could
increase the cost by 0 – 10%, consider if the initial
CAPEX estimated needs to be calibrated for this
situation.
3) Hazardous Process / High toxicity / High
pressures, in this situation the piping and instrumentation typically are higher. This could increase the
cost by 0 – 15%, evaluated if the initial CAPEX estimate needs to be modified for these circumstances.
4) Location, the distance from the owners
and EPC firm offices causes increased travel cost
and travel time, per diems and associated costs are
required for all key staff, this could increase the cost
by 0 – 5%, consider if the initial CAPEX estimated
needs to be calibrated for this situation.
5) Percentage split or type of plant i.e. All
fluids, 50/50 or 25/75 split of Fluids and Solids or
all Solids, deciding on the correct split / percentage bulk material and labor / sub contract labor
can influence the percentages used, thus impacting
the bottom line cost. Fluids V’s solids fluids type
plants typically have a lot more pumps, piping and
instrumentation work associated with them. Piping
percentage on material and labor could increase by
0 – 20% from mid point to high range value, evaluate if the initial CAPEX estimated needs to be fine
tuned for this situation.
6) Corrosive chemicals, this situation typically
drives the cost of the painting, structural steel, piping (high stainless steel, alloys, glass lined piping
systems etc.) and instrumentation values up. Piping, painting, structural steel and instrumentation
value could increase by 0 – 15% from mid point to
high range, evaluated if the initial CAPEX estimated
needs to be adjusted for these circumstances.
7) Inclement / bad weather typically drives the
site work (Northern or Southern extreme weather
locations), civil and concrete values up as well as the
overhead values, use mid point to high end ranges
for civil and concrete values. Site work and civil /
concrete value could increase by 0 – 10% from mid
point to high range, evaluated if the initial CAPEX
estimated needs to be modified for these circumstances.
8) Control system, a highly automated process
plant is expensive, case in point - a fully automated
facility in North America is many times the norm,
in some less developed countries there is a limited
use of instrumentation, a lot of the valves and other
devices are opened and closed by hand, this could
increase the cost of the plant by 0 – 15%, consider if
the initial CAPEX estimated needs to be calibrated
for this situation.
9) New Technology / First of it kind or type of
specific plant. (No real track record of a similar facility exists within the organizations database). This
situation can ripple through all of the construction /
engineering scope, driving all of the ratios / percentages up. All construction and EPC percentages could
increase by 0 – 20% from mid point to high range,
evaluated if the initial CAPEX estimated needs to be
modified for these circumstances.
10) Revamp / Modifications / Upgrade / Modernization to existing Facility / Plant. Percentage
values should be increased in the order of 25%
- 75% (or possibly more) to reflect unique rework /
revamp engineering and field construction activities,
determine if the initial CAPEX estimated needs to
be modified for these circumstances.
11) Working inside an ongoing facility, temporary partitions, need to get hot work permits, barricades, shift work, overtime limited use of construction equipment, this could increase the cost by
0 – 10%, consider if the initial CAPEX estimated
needs to be calibrated for this situation.
12) Other considerations, Fast track / Flash
track - Construction / Modular Construction / other
unique situations. Site work, structural steel and civil
/ concrete value could increase by 0 – 15% from mid
point to high range, evaluate if the initial CAPEX
estimated needs to be modified for this situation.
Copyright © 2017 Compass International, Inc.
216. | SECTION B2
(1) Percentage / Multiplier Method Accuracy
+/- 25%
• Multiplier is $5,803,212 / $1,093,000 = 5.30 or
4.61 w / o contingency
TABLE 1
CONSTRUCTION CATEGORY
%
$ VALUE
Major Equipment (ME) (d/d to site)
1,093,000
ME setting
12%
Site development
1%
Civil / Concrete
2%
Structural Steel
4%
Facility - Enclosure to process
73%
facility
Piping
80%
Instrumentation
40%
Electrical
22%
Insulation
5%
Painting / Coatings
4%
Fire Protection / Refractory
2%
Sub Total
245% 2,677,850
Total of ME plus Bulks & Field Labor “A”
3,770,850
INDIRECT COSTS
Construction Management 7% of “A”
263,960
Detailed design / HO EPC Costs 17% of “A” 641,045
General Conditions / Preliminaries 75,417
2% of “A”
Client FE Engineering - Fixed Cost
115,000
Spare Parts
57,000
Taxes
123,000
Total Indirect Costs
1,275,421
Total of ME plus Bulks & Field Labor plus
5,046,271
Field In directs
Contingency 15%
756,939
Total Project Cost
5,803,210
Copyright © 2017 Compass International, Inc.
(2) Research & Development Facility 40
– 50% ISO 8 Class 100,000:
Breakdown by 16 CSI Division with A/E & CM
values $24,747,465 Facility completed in mid 2006
Calibrated to Washington D.C. - 3 Floor facility
72,000 SF 6,690 M2 (3 passenger / 1 goods elevators) $344 / SF $3,698 M2
* Includes manufacturing / production equipment, mechanical and electrical equipment setting
and hook-up installation included in Division 15 and
16. Validation costs not included.
** Includes parking for 225 cars, plus 250 SF
Gate house & fencing.
• See chart next page.
(3) Fermentation / Chemical Facility (A).
Fermentation Building 55,500 SF: (B). Warehouse
7,500 SF and (C) Office / Admin 4,400 SF. For a total of 67,400 SF or $705 / SF enclosed in Metal siding Building: 2005 Fermentation / Chemical Facility
With structural steel, columns and EPDM roof
(Located in Mid West USA calibrated to Washington D.C. area)
• See chart following pages
• Note A: 3 # Buildings (1) Fermentation Bldg
55,500 SF 3 Floors metal siding with louvers with
EPDM roof: (2) Warehouse 7,500 SF (3) Office /
Control Room / Change Rooms 4,400 SF
• Project duration Start of detailed design 3/2003
completion of detailed design 6/2004 15 months:
Start of Construction 8/2003 completion of construction 5/2005 21 months
• Note B: Detailed design includes a fee of
$350,000
• Note C: CM includes a fee of $250,000. CM
already has a presence on site some staff members /
temporary offices were used, saving some CAPEX
funds.
SECTION B2 | 217.
Table 2
RESEARCH & DEVELOPMENT FACILITY 40 – 50% ISO 8 CLASS 100,000
DIV NO DESCRIPTION
%
TOTAL VALUE
SF / COST
M2 / COST
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15A
15B
15C
16
16A
9.53% 2,076,086
3.76% 819,107 **
5.84% 1,272,228
6.48% 1,411,651
7.46% 1,625,142
4.84% 1,054,381
3.55% 773,358
3.36% 731,968
5.73% 1,248,266
1.90% 413,910
9.31% 2,028,160 *
0.72% 156,850
0.32% 69,711
1.97% 429,159
5.93% 1,291,835
16.79% 3,657,657
1.25% 272,309
9.59% 2,089,156
1.67% 363,805
100% 21,784,740
8.85% 1,927,949
4.75% 1,034,775
N/A
N/A
113.60% 24,747,465
28.83
11.38
17.67
19.61
22.57
14.64
10.74
10.17
17.34
5.75
28.17
2.18
0.97
5.96
17.94
50.80
3.78
29.02
5.05
302.57
26.78
14.37
N/A
343.71
310.26
122.41
190.13
210.96
242.87
157.57
115.57
109.39
186.55
61.86
303.10
23.44
10.42
64.14
193.06
546.62
40.70
312.21
54.37
3,255.61
288.12
154.64
N/A
3,698.37
17
18
19
Preliminaries / General Requirements
Site Works / Civil
Concrete
Masonry
Metals / Structural Steel
Wood Plastics
Thermal & Moisture Protection
Doors & Windows
Finishes
Specialties
Equipment*
Furnishings
Special Construction
Conveying Systems (3P / 1G)
Plumbing
HVAC (AHU’ s / Ductwork / Balancing)
Fire Protection / Sprinklers
Electrical
BMS / HVAC Controls
SUB TOTAL
`
A/E Services
CM
Validation Services
TOTAL
(4) CHEMICAL PERCENTAGE RANGE
PROCESS PLANT (CONCEPTUAL ESTIMATING APPROACH) ACCURACY +/- 30% ISBL
ONLY PERCENTAGES OF MAJOR EQUIPMENT DELIVERED TO SITE
** The above Includes craft supervision, temporary 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.
(6) Paint Manufacturing Facility / Partial Retrofit located in Mid West (2004 Costs) Constructed
on an established operating site with adequate utilities (needing some modification / upgrading)
• See chart following pages
• Excludes: Owner corporate engineering $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.
(5) ZEOLITE PLANT SUMMARY ESTIMATE RATIO / PRELIMINARY ESTIMATE
+/- 20% Accuracy
• See chart following pages
• M.E. Multiplier = 5.22 with contingency / 4.99
w / o contingency
(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
Copyright © 2017 Compass International, Inc.
218. | SECTION B2
Table 3
FERMENTATION / CHEMICAL FACILITY
SCOPE ITEM
$ COST
%
Major Equipment (M.E.) 117 #
14,377,570
30.25%
Freight
504,865
1.06%
Demolition
151,788
0.32%
M.E. Installation
721,254
1.52%
Site preparation
285,286
0.60%
Concrete / civil
391,983
0.82%
Structural steel
587,835
1.24%
Pipe
7,486,743
15.75%
Electrical
4,836,984
10.18%
Instrumentation / BMS
2,767,543
5.82%
Buildings 1,753,882
3.69%
Utilities / Miscellaneous items
638,765
1.34%
Detailed design
7,052,090
14.84%
Field Eng support
371,989
0.78%
Construction Mgmt
1,978,994
4.16%
Owner Eng Support
1,066,870
2.24%
Spare parts / V A
665,450
1.40%
Feasibility studies
480,550
1.01%
Escalation
976,650
2.05%
General Conditions
437,879
0.92%
Total Installed Cost
47,534,970
100.00%
REMARKS
SS glass lined tanks / reactors / pumps
Millwright / setting work
60 - 70% SS / glass lined
3 # buildings see note A
Cooling tower / sub station / new boiler, existing
piping & some utilities chillers could be utilized
114,750 hours see note B
See note C
Design review / CM oversight
Division 1 items
Table 4
CHEMICAL PERCENTAGE RANGE PROCESS PLANT
MAJOR EQUIPMENT BASED ON A VALUE OF 1.00 OR 100
% RANGE
LABOR %
MATERIAL %
Freight
Equipment setting
Site work
Civil / Concrete
Structural steel
Facilities / buildings
Piping (60% CS. 40% SS) Electrical
Instrumentation
Insulation
Paint
Fire Protection
Miscellaneous costs (Vendor Assistance / Spare Parts
Field In-directs ** Outside Engineering (EPC) of above values
Construction Management of above values
2% - 4%
3% - 10%
4% - 12%
10% - 35%
15% - 40%
5% - 25%
40% - 150%
15% - 50%
15% - 50%
3% - 15%
2% - 6%
2% - 7%
2% - 6%
25% - 45%
10% - 15%
4% - 7%
0%
85%
40%
55%
40%
55%
55%
40%
40%
40%
75%
40%
50%
35%
95%
95%
100%
15%
60%
45%
60%
45%
45%
60%
60%
60%
25%
60%
50%
65%
5%
5%
Copyright © 2017 Compass International, Inc.
SECTION B2 | 219.
Table 5
PLANT SUMMARY ESTIMATE RATIO /
PRELIMINARY ESTIMATE +/- 20% ACCURACY
COST OF MAJOR EQUIPMENT
Unlisted items / Design Growth
5%
Freight
5%
Total Major Equipment Equipment Installation
9%
Piping
25%
Instrumentation
25%
Electrical
20%
Site work
10%
Concrete
20%
Steel
10%
Buildings
10%
Painting
5%
Insulation – Fire Protection
7%
Dismantling – Repairs
3%
Total Directs
Total M.E. & Bulks ‘A’
EPCM Services 16% of ‘A’
Owner Costs
Spare parts
Vendor Assistance
Total Directs & In directs
Escalation
3%
Sub Total
Contingency
15%
Total
$1,969,375
98,469
98,469
$2,166,313
194,968
541,578
541,578
433,263
216,631
433,263
216,631
216,631
108,316
151,642
64,989
$3,119,491
$5,285,804
845,729
200,000
50,000
50,000
$9,551,023
286,531
$9,837,554
1,475,633
$11,313,187
Table 6
PAINT MANUFACTURING FACILITY /
PARTIAL RETROFIT
CATEGORY
$ MILLION
14.15
89 items
Freight
0.49
Setting of M.E. (L&M)
0.63
Demolition (L&M)
0.64
Asbestos removal (L&M) 0.37
Site Preparation (L&M)
0.66
C/S/A (L&M)
1.88
Existing Pipe
0.17
modifications (L&M)
Piping (L&M)
6.12
Electrical (L&M)
2.53
I/C (L&M)
2.24
Insulation (L&M)
0.88
Painting (L&M)
0.52
Warehouse / Loading Area 0.47
Warehouse Racks /
0.22
Forklifts / Pallets /
Robotic packers Miscellaneous items
0.32
(F-P, Spare Parts, V.A.
I/C programming) (L&M)
Utilities / tie ins
0.58
Direct Costs
32.87
Field Establishment /
12.33
In-Directs 37.5%
Directs + Indirect Costs
45.20
Detailed Design
4.38
(E&P ) 9.7%
CM 3.5%
1.58
Total Plant Cost 51.16
Major Equipment (M.E)
REMARKS
757 Design
hours / per
M.E. item
3 floors with
siding
Copyright © 2017 Compass International, Inc.
220. | SECTION B2
Table 7
CONSUMER PRODUCTS FACILITY PERSONAL CARE PRODUCTS - CENTRAL AMERICA
CONSTRUCTION CATEGORY
SF
$/SF
General Conditions / Preliminaries 5,269,900
37,700
139.79
405,652
Building foundations / piling
3,691,300
37,700
97.91
405,652
Buildings (Superstructure) Slab on grade,
24,467,700
37,700
649.01
405,652
Structural steel, Wall Panels and Roof
Internal construction (walls, ceilings, floors) 8,905,000
37,700
236.21
405,652
New production equipment
11,873,495
37,700
314.95
405,652
Packaging equipment / wrappers / 7,656,000
37,700
203.08
405,652
carton robots / conveyors
Mixers / Blender skids
1,361,700
37,700
36.12
405,652
Equip. relocation (From existing facility)
1,542,000
37,700
40.90
405,652
Piping
7,955,665
37,700
211.03
405,652
Fire protection
828,000
37,700
21.96
405,652
Electrical work
6,679,820
37,700
177.18
405,652
HVAC / AHU - Ductwork
6,160,000
37,700
163.40
405,652
Instruments / Building Automation /
2,019,560
37,700
53.57
405,652
I-C integration
Under slab guide wire 428,500
37,700
11.37
405,652
Bar coding equipment
733,600
37,700
19.46
405,652
Insulation
827,850
37,700
21.96
405,652
Painting
793,925
37,700
21.06
405,652
Start up spare parts
286,900
37,700
7.61
405,652
SUB TOTAL
86,211,015
37,700
2,286.76
405,652
Construction Management plus CM
5,741,705
37,700
152.30
405,652
General Conditions
Front End Studies / Concept report
761,505
37,700
20.20
405,652
Detail Design Work
6,984,070
37,700
185.25
405,652
Vendor Start up assistance
494,500
37,700
13.12
405,652
Commissioning start up activities
462,500
37,700
12.27
405,652
Owner Engineering / Consultants
893,500
37,700
23.70
405,652
IT / Communications / Telephones
794,485
37,700
21.07
405,652
SUB TOTAL
16,132,265
427.91
FACILITY TOTAL
102,343,280
37,700
2,714.68
405,652
Demo / Incoming Roads / Site Works 1,340,000
45 Acres
Utility Building / Tanks
2,510,000
Landscaping - signs
194,000
Rail spur
446,800
Maintenance shop c/w tools
380,000
Fire water pond
376,800
Fire water loop
785,000
Emergency Generator & Fuel Tank
494,000
Lunch patio c/w furniture / benches
38,000
12.99
9.10
60.32
Copyright © 2017 Compass International, Inc.
$/2009
M2
$/M2
21.95
29.27
18.87
3.36
3.80
19.61
2.04
16.47
15.19
4.98
1.06
1.81
2.04
1.96
0.71
212.52
14.15
1.88
17.22
1.22
1.14
2.20
1.96
39.77
252.29
SECTION B2 | 221.
CONSTRUCTION CATEGORY
$/2009
M2
$/M2
SF
CONTINUED
Truck scales
Fencing Guard House
Fire house & engine
Land Purchase and adjoining 25 acres
Fork Lifts / Battery Charging
Storage high bay racks
Facility Spare Parts
Office / Cafeteria Furniture
Computers / Network
SUB TOTAL
PROJECT TOTAL
136,000
477,000
160,000
98,600
685,500
475,000
470,000
1,445,000
590,000
740,000
11,841,700
37,700
314.10
405,652
114,184,980
3,028.78
$/SF
29.19
281.49
(8) Minerals / Open Cast Mine and Refinery
and associated infrastructure.
• 2010 Cost Basis 1,000,000 Metric Ton of Production per Year
• Located in East Africa – Mozambique
• 46 month Construction period
Table 8
MINERALS / OPEN CAST MINE AND REFINERY AND ASSOCIATED INFRASTRUCTURE
MAJOR EQUIPMENT (M.E.)
$ MILLION
(PURCHASED FROM NORTH
AMERICA, EUROPE & ASIA)
LOCAL MAN
HOURS
$ RATE
$ LABOR COST TOTAL
Mechanical Separation & Agitators 27,772,000
Drums and Vessels
7,323,000
S & T Heat Exchangers
9,012,000
Evaporating Equipment and skids 30,270,000
Tunnel Kilns / Rotating Collectors
38,867,000
Solid Processing Equipment
19,821,000
(Conveyors)
Handling & Packaging
15,896,000
Compressors / Blowers & Fans
2,875,000
Pumps including motors
17,423,000
Cooling Towers
2,567,000
Water Treatment / Chemical
2,365,000
Injection Equipment / Skids
Sub Total (Engineered Equipment ) 174,191,000
174,191,000
Copyright © 2017 Compass International, Inc.
222. | SECTION B2
MAJOR EQUIPMENT (M.E.)
$ MILLION
(PURCHASED FROM NORTH
AMERICA, EUROPE & ASIA)
LOCAL MAN
HOURS
$ RATE
$ LABOR COST TOTAL
CONTINUED
BULK MATERIALS (NORTH AMERICA, EUROPE & ASIA)
Caissons / Steel Sheet Piles
6,976,000
Piping & fittings
41,009,000
(CS/Nickel/ Lined Pipe)
Valves (CV & Manual)
9,210,000
Instruments Devices / 31,580,000
Control System
Electrical Transformers
6,897,000
Electrical Switchgear
12,546,000
Electrical Lighting Fixtures
3,123,000
Electrical Conduit / Cable Tray /
18,099,000
Cables
Structural Steel
14,690,000
(Random lengths & Fabricated)
Sprinklers / Fire Protection
564,000
Equipment
S/Total
144,694,000
Total imported from
318,885,000
(North America, Europe & Asia)
Ocean Freight 11.74%
37,448,260
Total (Engineered) 356,333,260
Imported & freight
FIELD CONSTRUCTION & AFRICAN AFRICAN /
LOCAL MAN
$ RATE
$ LABOR COST
LOCAL SUPPLY MATERIALS
LOCAL MATERIAL HOURS
Site Works / Area Preparation
4,818,000
1,975,000
6.64
13,121,900
Civil Works 30,668,000
2,737,900
6.22
17,016,049
(Foundations / Concrete Pits /
Slab on Grade / Tank Farm)
Facilities / Buildings / Warehouse 21,626,000
107,950
5.68
612,724
Piling 12,350,000
2,670,600
14.85
39,658,410
Site Work for Buildings
1,474,000
61,891
5.46
337,679
Structural Steel 450,000
515,009
16.78
8,639,270
(Some Field Fab & Erect)
Piping (Some Field Fab & Erect)
14,219,333
2,870,000
17.35
49,785,890
Instrumentation
990,000
895,800
12.86
11,516,405
Electrical
2,698,667
1,928,500
11.09
21,377,423
Insulation (Equipment & Pipe)
13,874,667
610,000
10.05
6,130,500
Painting
2,948,000
430,000
9.10
3,913,000
Refractory
6,834,667
314,500
14.85
4,670,325
Tanks (material free issued)
-
2,112,660
26.33
55,634,788
Major Equipment Erection
6,035,333
1,735,590
18.69
32,436,442
Total African / Local Material &
118,986,667
18,965,400
15.40
264,850,804
Field Labor “A”
Copyright © 2017 Compass International, Inc.
356,333,260
17,939,900
47,684,049
22,238,724
52,008,410
1,811,679
9,089,270
64,005,223
12,506,405
24,076,089
20,005,167
6,861,000
11,504,992
55,634,788
38,471,775
383,837,471
SECTION B2 | 223.
MAJOR EQUIPMENT (M.E.)
$ MILLION
(PURCHASED FROM NORTH
AMERICA, EUROPE & ASIA)
LOCAL MAN
HOURS
$ RATE
$ LABOR COST TOTAL
CONTINUED
OTHER FACILITY ITEMS
Electrical Power / Steam boiler
118,000,000
plant oil fired 65 KW
Electrical Power / Steam boiler
11,434,867
plant camp & piling & civil work
Overhead Transmission line
3,650,000
Port Office / Admin / Warehouse
1,800,000
center 20,000 SF (Pre-Fabricated
Sections)
Port / Jetty Dredging 8,700,000
(including channel buoys)
New / refurbished 2-way highway 18,550,000
110 km
New Product Jetty - 3 Berths 750 - 64,900,000
850 M long c/w dolphins
Jetty Loading arms / 11,005,000
Cranes / Conveyors
Port Tanks (4) / Generator
4,350,000
Jetty Logistics center &
2,300,000
Bonded Warehouse
New Facility Housing / community 27,413,467
center, includes site works, roads,
sewers, potable water, waste water
treatment facility, electricity
generation to support 500 - 1,000
operators
New Mine Housing Camp, includes 4,143,333
site works, roads, sewers, potable
water, waste water treatment
facility, electricity generation to
support 200 - 300 mine workers
Mine to Refinery Conveyors /
5,450,000
Staging Areas / Haul Roads
(Combination of conveyors /
roads - 25 km)
Phase 1 Civil works & mine
17,151,933
preparation work - Clear area
for refinery / mine earthworks
(includes borrow pit, temporary
& permanent roads, bridges,
tree removal, cut & fill, imported
fill & storm water drains , c/w
underground utilities)
Copyright © 2017 Compass International, Inc.
224. | SECTION B2
MAJOR EQUIPMENT (M.E.)
$ MILLION
(PURCHASED FROM NORTH
AMERICA, EUROPE & ASIA)
LOCAL MAN
HOURS
$ RATE
$ LABOR COST TOTAL
CONTINUED
Permanent Heavy haul trucks /
29,700,000
D8 / Front End Loaders /
Compressors / Drag Line /
Drilling Rigs, various small trucks
& pick up trucks for mine &
refinery operations
Permanent Facility cranes /
6,500,000
maintenance shop equipment
New Rolling Stock
11,500,000
Railroad 135 Km
19,700,000
(New & refurbished)
Permanent facility computers /
890,000
telephones Explosive storage building
640,000
Conveyors / crushers at mine
7,700,000
Air strips (2) & (2) 6 Seater Planes 5,500,000
Offsite spoil area / fill in borrow
12,669,000
pits (treatment & disposal)
Drill wells 12 # 2,000,000
River intake & pipeline / 7,295,200
Pumping station
Earth dam / Settling ponds /
4,800,000
Quarry A & B
Minor scope items, fencing,
5,866,667
guard house, guest quarters /
dining area, roads, bridges,
weigh bridges & water
treatment facility
S/T
402,109,467
PRE-OPERATION COSTS
Pre-Start up operations staff
3,500,000
(6 months 40 staff / operators
at mine & refinery)
Finance / Bond costs 3,800,000
Spare parts / Equipment
21,500,000
Start up / Commissioning
2,500,000
Initial Chemicals 1,200,000
Computer Software - Business
350,000
Enterprise / training
Operator training
950,000
Vendor Start Up assistance
2,300,000
36,100,000
Copyright © 2017 Compass International, Inc.
402,109,467
36,100,000
SECTION B2 | 225.
MAJOR EQUIPMENT (M.E.)
$ MILLION
(PURCHASED FROM NORTH
AMERICA, EUROPE & ASIA)
LOCAL MAN
HOURS
$ RATE
$ LABOR COST TOTAL
CONTINUED
FIELD IN DIRECTS
% OF A Field Supervision
3.63%
13,933,300
(Working Foremen / Head Men /
Gangers / Charge Hands)
Construction Equipment
5.37%
20,612,072
(Heavy lift cranes / concrete
batching plant / Concrete trucks /
Rod benders / Welding machines /
High-Lifts)
Temporary water trucks
0.23%
882,826
Safety personnel
0.26%
997,977
Temporary facilities / Sheds /
2.18%
8,367,657
Welding yard Maintenance / equipment
1.27%
4,874,736
refueling
Rebar fabrication area
0.35%
1,343,431
Lay down storage areas
0.37%
1,420,199
Construction Camp Catering
4.46%
17,119,151
General field support / logistics
0.81%
3,109,084
material movement
Scaffolding
1.14%
4,375,747
Camp Buses / Forklift trucks
0.33%
1,266,664
Medical clinic / doctor & nurses
0.25%
959,594
Temporary accommodation
2.35%
9,020,181
(Camps) at mine & refinery during
construction effort
Field office equipment / supplies 0.16%
614,140
Consumables grease / 1.65%
6,333,318
gas bottles / welding rods
Temporary toilets
0.19%
729,291
Small tools (Picks, shovels, hard
0.35%
1,343,431
hats, goggles)
Security services / Guards
0.29%
1,113,129
Miscellaneous concrete / stone,
1.16%
4,452,515
welding tests
Misc. protection type materials
0.45%
1,727,269
Road watering / cleaning services 0.35%
1,343,431
Total Field Indirect Cost
27.60%
105,939,142
Project “Soft” Costs /
DETAILED DESIGN / ENGINEERING / CM COSTS
Front End Engineering Studies
2,950,000
Legal Fees
1,730,000
105,939,142
Copyright © 2017 Compass International, Inc.
226. | SECTION B2
MAJOR EQUIPMENT (M.E.)
$ MILLION
(PURCHASED FROM NORTH
AMERICA, EUROPE & ASIA)
LOCAL MAN
HOURS
$ RATE
$ LABOR COST TOTAL
CONTINUED
Owners Initial Task Force Prior to
1,360,000
Contract Award (5 Staff members
12 months)
Engineering / Detailed Design
55,125,000
Effort assume North American /
Japanese / S Korea / European
EPCM firm $175 / hour= 315,000
HO hours
Engineering / Detailed Design
17,225,000
Effort assume Israel / Poland /
India / South Africa / Turkey or
Romania EPCM firm $65 / hour =
265,000 HO hours
Engineering / Detailed Design
8,000,000
Effort for Port / Jetty assume
Dutch or Italian EPCM firm
$160 / hour = 50,000 HO hours
Owners Engineers / Construction / 24,500,000
Procurement Staff: 20 Engineers /
Construction Managers @ $350,000
per year for 3.5 years (Procurement /
PM / PC / CM / Inspection activities)
Travel / temporary living expenses 3,500,000
Owners local admin staff:
1,220,000
10 Individuals
Miscellaneous consultants /
6,600,000
engineers
3rd Party Testing / Inspection /
2,266,700
Expediting - 7 staff Business trips / hotels visits to
1,400,000
vendors / site visits
Local warehousing / 860,000
Logistic support
Local Drafting office / Local
2,700,000
Engineering Services / Surveys /
Permits / Consultants - Assistance
with permits / expediting /
Warehousing staff
Total EPCM HO Detailed Design
Total Facility Cost
129,436,700
Copyright © 2017 Compass International, Inc.
129,436,700
1,413,756,040
SECTION B2 | 227.
MAJOR EQUIPMENT (M.E.)
$ MILLION
(PURCHASED FROM NORTH
AMERICA, EUROPE & ASIA)
LOCAL MAN
HOURS
$ RATE
$ LABOR COST TOTAL
CONTINUED
PROJECT METRICS
QUANTITY
OOM $ COST PER UNIT
Cost of facility to Engineer,
MT
1,414
Hour
15.40
Hour
127.55
Procure & Construct
Average hourly wage construction
rate (excluding camp costs) Average hourly “blended” engineering rate (630,000 hours)
KW Power
65
KW
$1,815
Excavation
1.00 million
M3
15.25
Driven Piles for foundations
5,700
M
Paved Roads 4,350
M2
Batched produced Concrete
145,000
M3
Structural Steel
13,500
T
Buildings
13,000
M2
Pipe (Aver 6” diameter)
35,500
M
Insulation
56,500
M2
Major Equipment weight 8,500
T
Field Tank steel
3,500
T
Number of M.E. items
985
#
Field Fabricated Tanks
50
#
Pressure Vessels 50
#
Shell & Tube Heat Exchangers
30
#
Plate Heat Exchangers 150
#
Pumps
160
#
Agitators
55
#
I/O points
9,000
#
Field instrument devices 2,400
#
Instrument Controllers
25
#
Cable / wire
800,000
M
Motors 500
#
Switchgear Units
40
#
Transformers
40
#
$300 - $325
7,200 Ton
Copyright © 2017 Compass International, Inc.
228. | SECTION B2
DEFINITION OF TERMS / NOMENCLATURE OF
MAJOR ACCOUNTS
The following listing is an explanation of the significant elements that are in various categories of
construction work.
M.E. Major Equipment – Scope of work includes the major equipment (M.E.) cost plus transportation (air, road or barge) costs to the site, (excludes import duties, tariffs etc., typically required
on international projects).
S.M.E. Setting of Major Equipment (M.E.)
– the lifting from the (air, road or barge) means of
transport and temporary storage, the physical site
transportation from say a warehouse / lay down area,
the setting and erection labor, material and labor required to, set in place, erect / install internals, alignment, internal welding of the major equipment in it’s
ultimate location for future production / mechanical
operation and grouting, excludes crane costs, scaffolding, spare parts and vendor start up costs.
S.W. Site Work – Scope of work includes all
the general site work preparation of the new plant /
facility site for construction together with required
tree grubbing, general clearing, rough grading, hand
and machine excavation, rock removal if required,
cut and fill, imported fill / borrow / engineered material, site remediation (asbestos removal, lead paint
and contaminated soil) tunneling / boring / jacking,
on site / off site disposal, tamping, soil compaction and fine grading, drainage trenches, catch pits
/ culverts, manholes, run off drains / basins, dams,
earth berms, railroad track and switch points / spurs,
all necessary crusher run, hardcore, stone / gravel
base, materials for hard standings, footpaths, roads,
parking areas and including fencing / gates and any
landscaping / plantings. Inside battery limit concrete
or tarmac / bituminous pavements for roads, process
area and parking areas:
C.C. Civil / Concrete – Scope of work includes
all necessary structural excavation (hand and machine), planking and strutting, tamping, foundations concrete / timber piling, sheet piling, backfill,
formwork, reinforcing steel (cutting, fabricating
Copyright © 2017 Compass International, Inc.
and installing), accessories, mesh reinforcement,
pre cast concrete, miscellaneous iron / steel cast in
place items (holding down bolts / plates / brackets
/ channel cast in place angle iron), thrust blocks,
grouting, temporary protection, finishing and curing of concrete, major equipment foundations and
process equipment structures / pads is included in
this account. Facilities / Building specific concrete
including excavation, backfill, concrete foundations,
formwork, rebar, elevated slabs etc. is included under Facilities / Buildings described later.
S.S. Structural Steel - Scope of work includes
all fabrication and installation activities specific to
the cost of procuring (not the purchasing effort man
hours this is included in the EPC ratio), welding,
cutting, rolling, heat treating, pre-fabricating and
installing major and minor structural steel members
and miscellaneous steel / platforms, cold formed
metal framing, pipe racks etc, (not cast in place
steel channel / angle iron items which is typically
installed during the concrete installation phase),
related to, major equipment supports, checker plate,
mesh type flooring, process structures, major equipment platforms, monorails, walkways, ladders and
handrails. Structural steel is assumed to be delivered
with prime coat paint application. Structural Steel
for facilities / buildings is captured in the Facilities /
Buildings ratio value.
F.B. Facilities / Buildings – Scope of work
takes into account of the cost of the facility / buildings together with required excavation, backfill,
hardcore, under slab stone, under slab utilities,
concrete foundations and other cast in place and precast concrete, house keeping pads, total superstructure (exterior and interior walls / structural support
system concrete or structural steel), metal decking,
stairs, windows, siding, drains, HVAC, plumbing,
building service piping, fire protection, insulation,
painting, roofing, penthouses, and all architectural
finishes, wood / metal doors, wood work, built in
cabinets / cupboards, elevators, escalators, BMS and
utility piping to a demarcation point of say 10 feet
/ 3 meters outside the buildings exterior walls. The
SECTION B2 | 229.
pipe joining this building piping should be captured
in the piping account or in the O.S.B.L. piping what
ever the case may be. Facility / Building specific
(lighting / power / emergency) electrical work, such
as facility / building power and lighting is included
in this ratio value, excludes furniture, fixtures and
window treatments.
P.W. Piping - (below grade and above grade):
Scope of work encompasses all metal, clay and
plastic piping systems Refer to previous Note C
regarding base case data, i.e. 60 / 40 split. Includes
all related project underground piping supporting the
specific project including but not limited to, utility,
fire water, potable and process service underground
lines to the I.S.B.L. inside battery limit boundary.
The piping ratio / percentage value includes excavation, planking and strutting, backfill, removal
of surplus material, concrete, stone, sand, bedding
material and tarmac / concrete, all of the buyout of
the required piping / fittings (bends, elbows, tees, reducers etc.) (not the procurement related man hours),
both for on site and off site fabrication and erection
of all below grade / above ground process / utility /
service related piping systems including steam tracing, steam traps, any sump ejectors, valves and fittings, includes hangars, pipe supports system testing
(hydro / x rays, welding testing is typically included
in O/H and indirect accounts), vents, drains, utility stations, eye wash stations / emergency showers
and instrument connections to the established inside
battery boundary. This ratio includes for the labor
installation cost of relief / control valves (motor
controlled valves) and inline instrumentation devices
(pipe fitter installation work, claimed by pipe fitters
on union executed projects). The material cost of
these (instrumentation related items) is accounted for
/ included in the Instrument ratio / percentage (note
this cost is typically a minor value). Ensure that no
duplication takes place between sewer and storm /
potable water piping systems (these systems could
include cast iron, pre cast concrete, vitrified clay,
PVC piping materials) covered in Site Works or in
Facilities. Determine a point at which the Facility /
Building piping is included with piping or facility /
building typically 10 feet or 3 meters from exterior
of exterior wall.
E.W. Electrical Work – Scope of work includes
all requisite labor and material for under ground and
above grade power and lighting scope such as duct
banks, duct manholes, grounding system, lightning
protection, cable ducts, cable tray, conduit, wire, cable, cable pulling, terminations etc. to the established
I.S.B.L. inside battery boundary. Also includes
excavation, backfill and removal of surplus material,
planking and strutting, concrete, stone, crusher run,
sand and tarmac / concrete / colored concrete. All
items required for the complete above ground power
and lighting systems, emergency generator systems,
M.C.C.’ s, motors, transformers and electrical heat
tracing for the total project, specific to the inside battery limits scope of work. Also includes the installation of all electrical instruments and their hook-up
(electrician work), but not the material cost of the
instrumentation device, which is included with the
Instrument ratio value.
I & C. Instrumentation / Controls – Scope of
work includes all necessary material and labor specific to the cost of instrumentation / control work, all
required instrumentation hardware / displays / panels
/ screens / monitors and wiring, in line instrument
devices, control valves, relief valves, control / display panels, orifice fittings, conduit, junction boxes,
control cable and all other instrument devices / items
plus tubing, tube bundles, minor tubing and control
wire tray materials essential to install these items.
The labor man hours / cost (pipe fitter required
work) to set and install various instrumentation /
piping interface devices such as pressure relief / control valves, inline piping / instrumentation interfaces
and orifice / flow measuring devices is accounted
/ captured for under Piping Work P.W. Extensive
software programming work is excluded from this
ratio, should be part of the EPC Engineering cost, or
is work carried out by owner’s work force.
Insulation / F.P. / Ref. Insulation / Fireproofing /
Refractory Work – Scope of work includes all labor
Copyright © 2017 Compass International, Inc.
230. | SECTION B2
and material costs of insulation material and protective covering (plastic / aluminum / s. s. jacket) and
fireproofing / refractory related to the major equipment (process) and process piping. Facility / Building related batt insulation etc is included with facility / buildings, fire protection systems are included
with the piping.
P. / S. F. / C: Painting / Special Finishes /
Coatings – Scope of work includes all preparation
/ sandblasting / scrapping and protective coating of
surfaces (hand work and sprayed applications) with
paint and / or special finishes for the total project
excluding facilities / buildings and off site related
work.
M.W: Minor work items – Scope of work covers the cost of the labor and material costs related,
all minor work items, necessary vendor assistance,
spare parts, start up activities, chemicals, grogg /
catalyst, commissioning work, any minor / miscellaneous scope items and any rework. Excludes outside
battery limit work / off site O.S.B.L. typically this
could be in the 20 – 70% range.
(9) Compass Multiplier: The following multipliers have been independently collected over a period of 5 to 10 years and are similar in some respects
to Hand, Cran and Lang factors, the accuracy of this
estimating method is at best +/- 25%. It hoped to
add additional multipliers in the subsequent updates
of this publication. The best use of these types of
factors is in early conceptual studies, what if we
add two Heat exchangers to the project, or in Value
Engineering what would the cost savings be if we
removed 4 pumps from the project. This approach
assists in determining quick and reasonably accurate
major equipment values; this is a useful tool if the
cost of the purchase order can be determined.
Table 9
MAJOR EQUIPMENT
(M.E.) ITEM ASSUME PURCHASE
ORDER VALUE
EX WORKS (EXCLUDES
FREIGHT)
Air Handler Unit
$50,000
Air Cooled Heat Exchanger
$50,000
Agitator (CS / SS)
$50,000
Bag house
$50,000
Bagging Machine
$50,000
Ball mill
$50,000
Blender
$50,000
Blower / Fan
$50,000
Boiler
$50,000
Clarifier
$50,000
Centrifuge (solid bowl)
$50,000
Compressor (electric motor driven) $50,000
Ditto (gas or steam driven)
$50,000
Chiller
$50,000
Copyright © 2017 Compass International, Inc.
MULTIPLYING % RANGE
TO OBTAIN A FULLY
INSTALLED M.E. ITEM
(EXCLUDED M.E. COST)
TOTAL (AVERAGE)
INSTALLED COST M.E.
INCLUDING / EXCLUDING
ITEMS BELOW
40 – 60%
80 – 100%
45 – 75%
70 – 90%
40 – 60%
50 – 70%
40 – 80%
40 – 80%
40 – 80%
40 – 80%
50 – 90% 50 – 90%
50 – 90%
40 – 60%
$75,000
$95,000
$80,000
$90,000
$75,000
$80,000
$80,000
$80,000
$80,000
$80,000
$85,000
$85,000
$85,000
$75,000
SECTION B2 | 231.
MAJOR EQUIPMENT
(M.E.) ITEM CONTINUED
Conveyors (Belt / Bucket)
Cooling tower, concrete basin,
timber frame
Crusher - Cone
Crusher - Jaw
Crystallizer
Cyclone
Drum Vertical / Horizontal
Dryer – Rotary Vacuum Dryer spray
Evaporator
Ejector
Furnace (Cabin)
Furnace (Process)
Hammer mill
Heat Exchanger S/T CS / SS
Ditto double pipe
Incinerator
Pressure leaf filter
Pump Centrifugal CS
Ditto Reciprocating
Ditto Turbine
Ragger
Reactor
Reactor Glass Lined
Reactor Kettle
Receiver
Refrigeration Unit
Rotary Dryer
Rotary Filter
Tank Storage C.S.
Ditto floating head
Ditto C.S. Glass lined
Tower / Column w/o trays
Transformer
Truck loading / Rail car loading
Silo / storage tower
Stack (steel or slip formed)
Sphere
Vessel Pressure C.S. Vertical
Ditto horizontal
Vibrating screen
Wiped film evaporator
ASSUME PURCHASE
ORDER VALUE
EX WORKS (EXCLUDES
FREIGHT)
MULTIPLYING % RANGE
TO OBTAIN A FULLY
INSTALLED M.E. ITEM
(EXCLUDED M.E. COST)
TOTAL (AVERAGE)
INSTALLED COST M.E.
INCLUDING / EXCLUDING
ITEMS BELOW
$50,000
$50,000
30 – 60%
70 – 120%
$72,500
$97,500
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
40 – 60%
30 – 50%
60 – 80%
70 – 90%
70 – 120%
80 – 140%
90 – 150%
90 – 150%
50 – 80%
70 – 100%
80 – 100%
50 – 80%
90 – 150%
60 – 80%
70 – 90%
40 – 70%
80 – 100%
50 – 80%
40 – 70%
80 – 100%
80 – 120%
90 – 130%
90 – 130%
70 – 90%
60 – 90%
90 – 110%
40 – 60%
30 – 40%
40 – 60%
50 – 70%
80 – 130%
20 – 40%
40 – 60%
20 – 40%
30 – 60%
30 – 50%
80 – 110%
70 – 100%
20 – 40%
50 – 80%
$75,000
$70,000
$85,000
$90,000
$97,500
$110,000
$110,000
$110,000
$82,500
$92,500
$95,000
$82,500
$110,000
$85,000
$80,000
$77,500
$95,000
$82,500
$77,500
$95,000
$100,000
$105,000
$105,000
$90,000
$87,500
$100,000
$75,000
$67,500
$75,000
$80,000
$102,500
$65,000
$75,000
$65,000
$72,500
$70,000
$97,500
$92,500
$65,000
$82,500
Copyright © 2017 Compass International, Inc.
232. | SECTION B2
The above multipliers include or exclude the following items:
Includes:
• Freight (ex works USA includes 3% of purchase
value)
• Civil work (excavation, shoring and backfill)
• Foundations (concrete, rebar, formwork, grouting and holding down bolts)
• Equipment setting (includes cranes)
• Structural steel / Platforms / Miscellaneous steel
• Piping (includes all piping / fittings and valves
5’ – 10’ from equipment item)
• Electrical (includes all electrical cable / conduit
and fittings 5’ – 10’ from equipment item)
• Instrumentation (includes all control wiring /
conduit and fittings 5’ – 10’ from equipment item and
local controls, assume that 100’ of control wiring to
local JB is included)
• Insulation (includes all equipment, piping and
fittings 5’ – 10’ from equipment item)
• Painting (includes all equipment, piping and fittings 5’ – 10’ from equipment item)
• Fireproofing (specific to equipment item)
Excludes:
• Excludes Detailed Design / EPC services. (Add
10 – 15%)
• Excludes Construction Management. (Add 4 –
7%)
• Excludes Field in directs / General Conditions.
(Add 15 - 35%)
• Excludes Contractor fee / mark up. (Add 7 –
10%)
• Excludes, Demolition work. (Add 0 – 10% on a
case-by-case basis)
(10) Chocolate / Candy Production Facility
• 248,550 SF 22 ‘ high Manufacturing Facility in
Ohio
• 210,000 Chocolate / Candy & 2 story 38,500
Admin
• 24 Acre
• 96 staff
• 2012 Cost Basis
• See chart following
Copyright © 2017 Compass International, Inc.
(11) Floating Production Storage & Offloading
Facility (FPSO) West Africa
• Located in West Africa
• Fabricated in South East Asia
• 200 M x 70 x 40 in 120’ deep water
• 2012 Cost Basis
• See chart following
(12) Cement Manufacturing Facilities
• Based on 7# US & Mexico Plants
• 2015 Cost Basis
• See chart following
(13) Urea / Nitrogen / Fertilizer Production
Facility
• USA Mid West location
• Union construction
• 80 acre site (with river access for barges)
• 2015 Cost Basis
• See chart following
(14) Urea / Nitrogen / Fertilizer Production
Facility
• Construction costs for $20 million to $80 million
Shale Gas Facility.
• 2015 Cost Basis
• See chart following
(15) Ethylene / LNG Cost Model
• 2016 U.S. Gulf Coast Basis
• See chart following
(16) College Add On
• 59,800 SF Cost Model
• See chart following
(17) 140 MCFD Gas Gathering Facility
• 2016 Cost Basis
• See chart following
(18) Windfarm Cost Models
• 2015 Cost Basis
• See chart following
SECTION B2 | 233.
Table 10
#
DESCRIPTION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
General Conditions / Site Establishment
12.77
248,550
Site work incl ponds & roads
7.33
248,550
Concrete
19.23
248,550
Masonry
7.34
248,550
Metal & Mezz Floor
9.77
248,550
Wood plastic
4.55
248,550
Thermal roof
3.77
248,550
Doors windows
3.99
248,550
Finishes / Gypsum walls
2.66
248,550
Specalties
1.13
248,550
Equipment (Building)
0.66
248,550
Furnishings
0.93
248,550
Special Const
0.43
248,550
Elevators & Dock Levellers
2.22
248,550
Piping / HVAC / Fire Protection incl utility equipment
29.96
248,550
Electrical / Controls
20.33
248,550
S/T
127.07
248,550
Manufacturing Equipment; Enrobers, Kettles, Mixers, 262.43
248,550
Kneaders, Spindle Mills, Melangeurs, Depositors, Ovens /
Moulders, Melters, Coating Tunnels, Cooling Tunnels,
Wrappers, Cold Rooms
Packaging Equipment / Fork Lifts
33.66
248,550
S/T
423.16
Detailed Design
32.43
248,550
Construction Management
12.23
248,550
TOTAL
467.82
248,550
ADDITIONAL SCOPE ITEMS
Owner Engineering
Gate House
Security Fence
Parking for 110 cars
Utility bldg
8,600 SF
$135
Landscaping Sprinkler System
17A
17B
DD
CM
$ COST / SF
TOTAL SF
TOTAL $ COST
3,173,984
1,821,872
4,779,617
1,824,357
2,428,334
1,130,903
937,034
991,715
661,143
280,862
164,043
231,152
106,877
551,781
7,446,558
5,053,022
31,583,249
65,226,977
8,366,193
105,176,418
8,060,477
3,039,767
116,276,661
TOTAL $ COST
654,700
35,600
693,240
288,700
1,161,000
267,600
Copyright © 2017 Compass International, Inc.
234. | SECTION B2
Table 11
DESCRIPTION
TONS
$ COST
Hull steel, cathodic protection & coatings (incl hull engineering)
85,740
1,980
Hull outfitting, includes cranes, mooring equipment, life boats,
4,890
6,368
miscellaneous piping
Hull Equip (pumps minor utility equipment)
539
1,035
Electo - Mechanical Outfitting, emergency generator lighting,
614
2,340
cable, cable trays
Living quarters / Control room / kitchen for 15 - 25 operators
438
28,200
Storage fit out / piping skids
1,388
13,750
Upper Deck / Topsides module structural supports
1,994
833
Gas storage tanks / manifolds
7,820
21,911
Top side modules
49,480
28,559
Guide wires / anchors & chains
589
8,264
Loading arm, turret and helipad
2,194
15,570
S/T
155,686
11,944
Ocean Tow
Field installation / mating
FE Engineering / Studies
Detailed Design / Procurement / CM / PM-PC
TOTAL
155,686
12,817
TOTAL (L&M)
169,765,200
31,137,075
558,279
1,436,292
12,351,600
19,085,000
1,660,005
171,344,701
1,413,120,731
4,865,629
34,155,000
1,859,479,512
6,400,000
4,050,000
5,800,000
119,700,000
1,995,429,512
Table 12
CEMENT MANUFACTURING FACILITY
BASIS OF COST - 2015 COST DATA FROM 7 # COMPLETED &
OPERATING FACILITIES IN USA AND MEXICO
CAPEX / OPEX CATEGORY
250,000 TON OF
PRODUCTION PER
YEAR CAPEX COST
Cement Production Equipment
40% to 50%
Construction Bulk Materials
15% to 25%
Construction Labor & Indirects
15%-20%
Detailed Design & Procurement
7% to 11%
of Capial Equipment & Bulks
Construction Management
3.5% to 5%
Total CAPEX Value Average
$83,776,000
Total CAPEX Value Range Low
$67,020,800
Total CAPEX Value Range High
$100,531,200
Cost per Ton (Average)
$335,104
OPEX costs per year, facility operating
$10 Million - $25 million
personel, fuel, property taxes, electricity,
(average $15 million
water, maintenance and spares
per year) For facilities with extensive pollution /
Increase Total CAPEX
air quality requirements such as ESP,
values by 20% to 45%
Baghouses, SDA & NOX systems
Copyright © 2017 Compass International, Inc.
500,000 TON OF
PRODUCTION PER
YEAR CAPEX COST
750,000 TON OF
PRODUCTION PER
YEAR CAPEX COST
40% to 50%
15% to 25%
15% to 20%
7% to 11%
40% to 50%
15% to 25%
15% to 20%
7% to 11%
3.5% to 5%
$161,660,000
$129,328,000
$193,992,000
$323,320
$15 Million - $30 million
(average $20 million
per year) Increase Total CAPEX
values by 20% to 45%
3.5% to 5%
$233,550,000
$186,840,000
$280,260,000
$311,400
$20 Million - $35 million
(average $25 million
per year)
Increase Total CAPEX
values by 20% to 45%
SECTION B2 | 235.
Table 13
UREA - NITROGEN - NITRIC ACID - FERTILIZER FACILITY - 425 TONS / DAY PRODUCTION
LOCATION MID WEST USA - 2015 COST BASIS
UNION LABOR (26 MONTH CONSTRUCTION EFFORT)
80 ACRE SITE WITH MINIMAL SITE CLEARING
#
CATEGORY
M-H’S $ TIC COST $ COST / HOUR REMARKS
1
2
Engineering / Detailed Design 68,562
10,205,995
$148.86
includes profit on bill out rate
OH / GA Profit - Fee / CAD / Repro /
3,977,532
39% of # 1
Admin HO Support Staff
3
Procurement of Major Equipment, 74,865,775
259 Tagged M.E. items
including 5 # Field Erected Tanks &
(excludes instruments)
pre-fab piping
approx shipping weight = 19,750 tons
4
Construction Direct Labor (all trades)
598,774 23,196,505
$38.74 Rate ranges from $32.50 for
lower skills to $41.85 for electricians & pipefitters
5
Indirects (general conditions, 598,774 17,094,998
$28.55
Combined rate = $67.29
site establishment, construction equipment,
small tools, consumables, heavy lift
cranes)
6
Construction Bulks
37,887,346
Concrete, rebar, forwork, struc
steel, electrical & insulation
7
Construction tagged items
7,648,862
Purchased by Engineering (instruments / CV’s) firm (1,397 #)
8
Construction In-Direct Support Labor
202,334 7,277,665
$35.97
9
Construction Management 72,446
8,867,435
$122.40
Locals & OoTown Consultants
(approx 14 individuals)
10
C M Travel / Per Diem / Site Trucks /
3,776,347
Other field costs
11
Miscl items Demo / Removals
(rail spur / transmission lines)
2,788,734
12
Barge Loading Area / Conveyors / Diverters
5,966,745
incl truck scales
13
Miscl items, Fencing, guard service, rail spur,
temp roads, temp utilities & 3rd party testing
2,433,763
12 Field created P.O.’s
14
Construction contractors fee on construction
4,927,665
Construction work final a/c =
pass thru
$104,667,000 (4.7%)
15
Total EPCM Cost
$210,915,366
(425 Tons / Per Day - 150,000 TPY)
COST PER TON (MILLIONS $)
$496,270
Typical CAPEX Cost Range per Ton / Day
High
$596,000 Typical CAPEX Cost Range per Ton / Day
Low
$397,000 Excludes Owner In-House Engineering & Owner general conditions & consultants
Excludes Front End Studies / Permitting studies
Excludes Initial fill & chemicals & spare parts
Excludes Jetty / River Intake Structure - $3.7 million
Copyright © 2017 Compass International, Inc.
236. | SECTION B2
Table 14
ENGINEERING, PROCUREMENT AND CONSTRUCTION COSTS FOR TYPICAL $20 MILLION TO $80
MILLION SHALE – SYNGAS – CO2 - LNG – INDUSTRIAL GAS FACILITY; 2015 COST BASIS:
Costs of course vary on each and every facility;
however the typical ranges / percentage splits are as follows:
CATEGORY
LOW % RANGE
HIGH % RANGE
Engineering / Detailed Design
Procurement including Major Equipment
Construction including some bulks such as civil, site works,
concrete & structural steel
Construction Management
Commissioning / Start Up
EPC Fee
10% to 12%
30% to 40%
30% to 40%
12% to 16%
35% to 50%
35% to 45%
5% to 8%
2% to 4%
3% to 4.5%
7% to 10%
3% to 5%
4.5% to 7.5%
Table 15
1 MILLION TONS PER YEAR ETHYLENE / LNG FACILITY COST MODEL
2016 US GULF COAST COST BASIS: ISBL = 81% OSBL = 19%
CATEGORY
APPROX., OPEN SHOP
% SPLIT
TOTAL EPC
COST PER
TON LOW
OPEN SHOP
TOTAL EPC
COST PER TON
AVERAGE
OPEN SHOP
TOTAL EPC
COST PER
TON HIGH
UNION TOTAL
EPC COST
PER TON
LOW
Major Equipment 26%
$416
(Tagged Items)
Bulk Materials
16%
$257
Direct Field Labor 14%
$227
Field Labor
11%
$176
In directs
Engineering
10%
$165
Detailed Design
Project
2%
$29
Management /
Project Control /
Procurement
Fees
3%
$53
Miscellaneous
5%
$81
Contingency
6%
$97
Construction
5%
$80
Management
TOTAL
100%
$1,187
$1,582
$1,978
$1,310
BENCHMARKS
# of Major Equipment 250 to 300
# of Instruments 3,500 to 4,000
CY of Concrete 50,000 to 60,000
Tons of Structural Steel 6,000 to 7,000
LF of above ground pipe 450,000 to 550,000
Direct Construction Man-Hours 4,000,000 to 5,000,000
Detailed Design Hours 700,000 to 825,000
Copyright © 2017 Compass International, Inc.
UNION TOTAL
EPC COST
PER TON
AVERAGE
UNION
TOTAL EPC
COST PER
TON HIGH
$459
$284
$250
$194
$182
$32
$59
$90
$107
$89
$1,746
$2,183
SECTION B2 | 237
Table 16
2 STORY COLLEGE ADD ON WITH 16 LABORATORY WORK AREAS
59,800 SF - 36,400 ON GROUND FLOOR & 23,400 SF ON 2ND FLOOR
DETAILED DESIGN - 8 MONTHS CONSTRUCTION - 12 MONTHS UNION CONSTRUCTION
2016 COST BASIS CENTRAL NEW JERSEY, USA
#
CONSTRUCTION CATEGORY
SF
COST PER SF
TOTAL $ COST
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Site work / Parking Area (In place, not part of this project)
General Conditions / Preliminaries / Division 1
Piling
Underground Utilities
Underground Foundations
Concrete Slab on Grade
Concrete Columns
Concrete Beams Pre- Cast Concrete Structural Floors
Roofing Structure Structural Walls (included in interior partitions)
Exterior Wall System (Brick & P.C.C. Wall Panels)
Windows and Glazing
Exterior Doors
EPDM Roofing Cover / Front Canopy
Internal Finishes
Interior Doors
Suspended Ceiling
Toilets / Bathrooms / Stalls / Handicap needs
Blinds / Drapes
Painting / Wall coverings
Carpentry / Conference Rooms / Lunch Room Cabinets
Caulking
Floor Finishes (Carpet, Hardwood & Tile)
Specialties Signs / Notice Boards
Metal / Concrete Stairs
Elevators (2 # Passenger 1 # Freight)
Roof Drainage / Scuppers & Downspouts /
Roof Equipment Pads & Walkways
Plumbing (Fixtures & Piping)
Fire Protection - Sprinklers - Extinguisher’s HVAC systems
Telephone / Internet Systems
Lighting and Power / Emergency Generator
Special Systems CCTV / Card readers Conference Rooms / Class Rooms / Benches / Seating & Stage Area / White Boards / Special Lighting
Utilities / Boilers Chillers electric, water, gas
Laboratory Areas (16 # c/w lab equipment, case work,
gases, sinks, fume hoods, lighting)
Reception / Security Area / Lockers
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
59,800
6.22
14.08
3.86
2.06
6.88
4.79
6.63
5.16
12.83
4.18
6.64
15.66
6.97
0.59
1.69
4.64
3.38
3.35
1.99
0.79
5.01
3.55
0.26
6.97
0.41
4.32
2.22
1.74
$371,956
$841,984
$230,828
$123,188
$411,424
$286,442
$396,474
$308,658
$767,234
$249,964
$397,147
$936,408
$417,030
$35,282
$101,062
$277,696
$202,109
$200,255
$119,002
$47,242
$299,613
$212,290
$15,458
$416,806
$24,593
$258,426
$132,756
$104,052
59,800
59,800
59,800
59,800
59,800
59,800
59,800
5.55
4.12
19.88
2.93
18.88
2.92
14.88
$331,651
$246,630
$1,188,824
$175,214
$1,129,024
$174,616
$889,824
59,800 18.64
59,800 23.98
$1,114,672
$1,434,004
59,800 5.58
$333,684
29
30
31
32
33
34
35
36
37
38
Copyright © 2017 Compass International, Inc.
238. | SECTION B2
#
39
40
41
42
43
CONSTRUCTION CATEGORY
SF
COST PER SF
CONTINUED
Landscaping / Irrigation (Not in this project)
59,800 0
Other miscellaneous items
59,800 3.65
TOTAL CONSTRUCTION COST (TCC)
59,800 $257.89
Architectural services 5.95% of “TCC”
5.95% $15,421,792
Engineering services (Structural & MEP) 2.50% of “TCC”
2.50% $15,421,792
Construction Management Services Fee 3.85% of “TCC”
3.85% $15,421,792
TOTAL PROJECT COST
COST PER SF - 59,800 SF
COST PER M2 5,558 M2
EXCLUDES:
Fixtures & Furniture
Land purchase
Legal fees
Permitting fees
Early feasibility studies
TOTAL $ COST
$0
$218,270
$15,421,792
$917,597
$385,545
$578,317
$17,303,251
$289.35
$3,113
Table 17
WESTERN CANADA - 140 MILLION CUBIC FEET PER DAY - GAS GATHERING - COMPRESSION FACILITY - FEED / FUNDING ESTIMATE 2016 COST BASIS:
PRELIMINARY BUDGET FUNDING AUTHORIZATION - CLASS (3) AACEI ESTIMATE
INSIDE BATTERY LIMITS (ISBL = 78% OUTSIDE BATTERY LIMITS OSBL = 22%)
MERIT SHOP LABOR
QTY
UOM
M-H’S
C$ LABOR
& S/C COST
C$ MAT C$ TOTAL
COST
COST
% OF
CD
Process Equipment (Long Lead Items)
free issued to Contractor
Process Equipment Setting / alignment
Purchase & Set Pre-Assemblies - Modules Field Erected Tanks (18 # Modules & 4 #
F.E. tanks) - approx. 210 Tons
Temporary roads / Site Clearance
ISBL / OSBL Roads / Footpaths
Demolition of existing catch pits / pads /
minor structures / overhead lines
Site work / Fencing / Gatehouse
Site Excavation - Removal & Imported Fill
Inside Battery Paving Stone /
Hard standings
Concrete (incl rebar, formwork & concrete)
Grouting to S.S. & equipment
Caissons / Sheet Piling / Well Casing & Pump
Fire Main / Fire Protection / Hydrants /
Monitors / Emergency Showers
Fire Pond / Liner & Collection Pits
Pre-Engineered Buildings 5 # (incl fit out)
-
65,667,000 65,667,000 69.40%
137
EA
-
137
22
EA
EA
20,266 677,895
25,240 844,269
442,946
1,401,037
1,120,841
2,245,306
1.18%
2.37%
1
2,356
88
EA
SY
CY
469
1,970
761
15,690
65,899
25,457
24,292
58,040
1,270
39,982
123,939
26,728
0.04%
0.13%
0.03%
1
7,571
481
LS
CY
CY
3,863
5,053
1,833
129,216
169,027
61,313
115,904
64,436
122,481
245,120
233,463
183,794
0.26%
0.25%
0.19%
4,118
43
1
CY
CY
LS
37,327 1,248,579
784
26,224
1,676 56,048
1,229,752
49,699
1,473,334
2,478,331
75,923
1,529,382
2.62%
0.08%
1.62%
1
LS
1,972
65,967
119,900
185,867
0.20%
1
LS
15,192 SF
807
7,758
27,005
259,519
33,967
709,060
60,972
968,580
0.06%
1.02%
Copyright © 2017 Compass International, Inc.
SECTION B2 | 239
MERIT SHOP LABOR
QTY
UOM
M-H’S
C$ LABOR
& S/C COST
C$ MAT C$ TOTAL % OF
COST
COST
CD
CONTINUED
Below Ground Piping / Conduit, PVC & CS
3,392
LF
2,821
94,364
279,731
374,095
0.40%
Above Ground Piping (CS 60% SS 30%
40,091 LF
129,356 4,326,969
3,924,240
8,251,209 8.72%
10% other - Aver size 6.75” dia) ISBL &
OSBL including all fittings & manual valves
(60% of pipe was fabricated offsite)
Install Structural Steel / Platforms
1,285
TN
8,656
289,547
266,119
555,667
0.59%
Set transformers / lighting /
1
EA
4,736
158,429
338,681
497,110
0.53%
Lightening grid
Communications CCTV / Card readers /
1
EA
2,334
78,060
247,598
325,658
0.34%
SCADA
Install & Calibrate Instrument 211
EA
6,753
225,890
240,821
466,711
0.49%
Below Ground - PC Ducts / Wire / Cable
26,397 LF
4,434
148,306
247,673
395,980
0.42%
Above Ground - Conduit / MCC / Wire /
178,364 LF
24,832
830,631
2,394,663
3,225,295 3.41%
Cable / Tray
Cooling Towers
6
EA
11,191
374,333
894,645
1,268,978 1.34%
Electric Heat Tracing & Controls
3,924
LF
2,852
95,383
97,925
193,308
0.20%
Insulation to Pipe & Modules
20,195 LF
4,579
153,164
626,044
779,208
0.82%
Insulation to Process Equipment
38,586 SF
12,513
418,560
351,920
770,480
0.81%
Painting / Coatings
71,648 SF
7,725
258,398
40,378
298,776
0.32%
Refractory & Fireproofing
398
CF
730
24,423
29,212
53,635
0.06%
Weigh bridge & pit (includes sump pump)
1
EA
404
13,506
29,220
42,726
0.05%
Pipeline manifolds / Cryogenic tanks
1
EA
3,271
109,402
224,221
333,622
0.35%
Truck Loading Area / Pipeline Tie-In
1
EA
1,262
42,213
80,969
123,182
0.13%
Pipe Racks
1
EA
3,717
124,332
661,817
786,150
0.83%
Other items
1
EA
7,220
242,953
453,287
696,240
0.74%
S/T
349,164 11,680,973
82,942,285
94,623,257 100.00%
Freight (Process Equipment & Bulks)
983,345
983,345
Process Equipment / Bulk Material Taxes 237,112
237,112
CONSTRUCTION DIRECT (CD) TOTAL
349,164 11,680,973
84,162,742
95,843,714
FIELD IN DIRECTS
% OF CD
Employer paid Fringes & Burdens ranges
3,504,292 3.7%
from (15% to 25%) & Worker Comp
Insurance (12% to 17.5%) used 30% ,
some s/c had this value in there l/s bid Small tools & consumables 349,164
1,239,532 1.29%
direct hours x C$3.55 per hour
Project Insurance BAR insurance /
196,960
0.21%
Bonds etc. Contractors Field Staff (Approx. 10 #)
2,336,587 2.44%
23,965 hour x C$97.50
Field Staff per diem
198,886
0.21%
Plant hire / Construction equipment
1,977,765 2.06%
Heavy lift crane 200 ton 359,000
0.37%
(including mob & demobilization)
Site staff vehicles 198,665
0.21%
Scaffolding
755,465
0.79%
Fuel / Grease / Equipment Repairs
221,554
0.23%
Site Offices / Trailers / Toilets / Temp
588,645
0.61%
W-House / Cleaning service / Guards
Temporary utilities (Elec & water)
95,852
0.10%
Copyright © 2017 Compass International, Inc.
240. | SECTION B2
MERIT SHOP LABOR
QTY
UOM
M-H’S
C$ LABOR
& S/C COST
C$ MAT C$ TOTAL % OF
COST
COST
CD
CONTINUED
GST / Sales tax
198,665
0.21%
Per Diems to travelers / key worker & 788,700
0.82%
provide trailer park area
Overtime / shift allowance / additional
495,776
0.52%
supervision / temporary lights
Site Communication / Computers -
76,447
0.08%
Printers / Internet / Cable Service & Set Up
ND Testing
123,060
0.13%
Contractors Overhead & Fee
3,155,000 3.29%
Miscellaneous items, safety items,
586,870
0.61%
fire extinguishers, drug testing,
initial safety meeting, lunch tents,
change rooms, temporary parking area,
material logistics, snow removal &
other minor items
FIELD INDIRECT TOTALS
17,097,721 17.84%
TOTAL OF DIRECT & INDIRECT
112,941,435
EPCM HOME OFFICE
% OF TPC
HO Detailed Design (Eng. + design) 61,040 112
6,836,480 4.98%
HO Procurement S-C Activities
4,866
102
496,332
0.36%
HO Project Management
4,428
133
588,924
0.43%
HO Project Controls
3,870
112
433,440
0.32%
HO Construction Department Support
1,885
117
220,545
0.16%
HO Safety Department Support
623
103
64,169
0.05%
HO Admin / Legal / Accounting /HR
1,796
85
152,660
0.11%
Travel to site / hotels
48,975
0.04%
Miscellaneous items / Express mail
23,765
0.02%
EPCM Fee
1,150,000 0.84%
TOTAL EPCM COST
10,015,290 7.30%
OWNERS & EPC COMPANY FIELD STAFF
% OF TPC
8 staff (f/t & p/t)
14,334 130
1,863,420 1.36%
Travel & living expenses
296,650
0.22%
Total Owners & EPCM Field Staff
2,160,070 1.57%
Contingency / Management Reserve
10,000,135 1.79%
S/T OWNER COSTS & CONTINGENCY
14,320,275 3.36%
TOTAL PROJECT COST (TPC) 137,277,000
COST PER MCFD
980,550.00
COST PER PROCESS EQUIPMENT (137 #)
1,002,022
HIGH COST PER MCFD + 25%
1,225,688
(PRO-RATE ABOVE QUANTITIES UPWARDS)
LOW COST PER MCFD - 25%
735,413 (PRO-RATE ABOVE QUANTITIES DOWNWARDS)
BASIS OF COSTS:
Engineering commenced 1st Q of 2015 Construction start 3rd Q of 2015
Construction finish 12 / 2017 Startup cost not in costs above C$ 278,000
Initial fill not in costs above C$ 398,000 Vendor assistance C$ 124,000
Copyright © 2017 Compass International, Inc.
SECTION B2 | 241.
Table 18
COST MODEL ONSHORE N.E. USA , 2015 COST BASIS:
WIND FARM 80 # 1.6 MW 128 MW CAPACITY 15 MONTHS CONSTRUCTION EFFORT
(8 - 12) PERMANENT SITE OPERATORS
7,500 ACRE SITE, NORTH EAST USA
#
DESCRIPTION
1
2
3
Land clearance / Gravel roads / Paved roads / Parking areas
2.4
3,821,040
2,547,360
6,368,400
Pilings / Caissons
2.9
6,156,120
1,539,030
7,695,150
Concrete Foundations / Slab on Grade / 7.2
12,418,380
6,686,820
19,105,200
Miscellaneous Support Steel
Fence / Gates / CCTV
0.7
1,430,237
427,214
1,857,450
Towers / Gearbox / Nacelles & Heavy Lift work
67.4
155,595,933 23,249,967
178,845,900
Electric work – hook-up & system check
6.4
12,736,800
4,245,600
16,982,400
Pre-Engineered Control / Office / Change Rooms /
Warehouse / Electrical Room
0.9
1,743,350
644,801
2,388,150
Detailed Design / Procurement
5.1
0
13,532,850
13,532,850
Project - Construction Mgmt.
2.4
0
6,368,400
6,368,400
Contractor General Conditions
1.3
2,276,703
1,172,847
3,449,550
Detailed Design & Contractor Fees
3.3
0
8,756,550
8,756,550
TOTAL
100.0
196,178,562 69,171,438
265,350,000
COST PER MW (128 MW)
$1,532,645
$540,402
$2,073,047
Field Labor Rate (Fully Marked Up) = $56.35 to $67.66 per hour
Detailed Design Rate = (Fully Marked Up) = $110 to $118 per hour
Construction Management Rate = (Fully Marked Up) = $105 to $110 per hour (excludes per diem)
4
5
6
7
8
9
10
11
12
13
% SPLIT
MATERIAL
LABOR
TOTAL
Table 19
COST MODEL ONSHORE PENNSYLVANIA USA WIND FARM COST MODEL #6, 2015 COST BASIS:30 # 2.3 MW TURBINES = 69 MW - COULD SUPPORT 40,000 TO 60,000 CUSTOMERS
260’ – APPROX. 80 M TOWER HEIGHT
10 MONTH CONSTRUCTION, LOCATED ON 2,500 - 3,500 ACRES
#
DESCRIPTION
1
2
3
Land clearance / Temporary Gravel roads / Permanent Paving
2.1
1,984,776
Piling / Caissons
3.3
4,367,543.00
Concrete Foundations (includes excavation, rebar, 25,850 CY
8.8
8,787,655
formwork, embedment’s & concrete).
Fence / Gates
0.6
703,554
Towers / Nacelles / all turbine components & Millwright work
65.9
97,566,845
Electric grid – hook-up & final check
7.3
9,897,567
Pre Eng. Control / Electrical Room / Warehouse /
0.6
766,554
Office & Change Rooms
Detailed Design / Procurement
6.5
0
Project - Construction Mgmt.
3.9
0
Heavy Lift (mob & de-mob)
1.8
2,554,004
Contractor General Conditions / Site Establishment
0.5
675,445
TOTAL
100.0
127,303,943
COST PER MW (69 MW)
$1,844,985
Field Labor Rate (Fully Marked Up) = $64.77
Detailed Design Rate = (Fully Marked Up) = $104.55
Construction management Rate = (Fully Marked Up) = $108.85
4
5
6
7
8
9
10
11
12
13
% SPLIT
MATERIAL
LABOR
TOTAL
1,489,674
926,857
4,282,895
3,474,450
5,294,400
13,070,550
289,146
11,299,255
2,180,283
226,146
992,700
108,866,100
12,077,850
992,700
10,588,800
6,452,550
258,646
151,805
38,146,057
$552,841
10,588,800
6,452,550
2,812,650
827,250
165,450,000
$2,397,826
Copyright © 2017 Compass International, Inc.
242. | SECTION B2
Table 20
60 (MCFSD) MILLION CUBIC FEET PER DAY - INDUSTRIAL GAS / SYNGAS / SHALE GAS FACILITY
FUNDING ESTIMATE 2016 COST BASIS: PRELIMINARY BUDGET FUNDING AUTHORIZATION CLASS (3) AACEI ESTIMATE.
MERIT SHOP LABOR (A COMBINATION OF UNION & NON-UNION LABOR) MARCELLUS REGION - NORTH EAST LOCATION USA:
(TYPICAL SPLIT MAJOR EQUIPMENT / PROCUREMENT = 45% - 60%, CONSTRUCTION 35% - 45%
& DETAILED DESIGN 8% - 12% CONSTRUCTION MGMT. 4% -6%. UM = UNIT OF MEASURE, S/C =
SUB CONTRACTOR, CD = CONSTRUCTION DIRECT)
DESCRIPTION
QTY
UM
M-H’S
$ LABOR &
S/C COST
$ MATERIAL $ TOTAL
COST
COST
Production / Process Equipment
133
(Purchased by Owner purchasing
Group) & free issued to contractor)
Production / Process Equipment,
133
Receive / Store / Setting / Alignment
Purchase & Set Pre-Assemblies 24
Modules - Field Erected Tanks
(20 # Modules & 4 # F.E. tanks) approx. 210 to 260 Tons
Temporary roads / Site Clearance
1
ISBL / OSBL Roads / Footpaths
2,366
Demolition of existing pump
80
pads / catch pits / pads /
minor structures / overhead lines
Site work / Fencing / Gates
1
Site Excavation - Removal &
6,784
Imported Fill / Rock /
Contaminated soil
Inside Battery Paving Stone /
465
Hard standings
Concrete Foundations /
4,040
Slab on Grade / Isolated Pads
(including rebar, formwork &
concrete)
Grouting to Structural Steel &
37
process equipment
Caissons / Sheet Piling /
1
Well Casing & Pump c/w pipe
Fire Main / Fire Protection / 1
Hydrants / Monitors / Emergency
Deluge System / Showers /
Emergency Eyewash stations
Fire Pond / Liner & Collection Pits
1
Pre-Engineered Buildings 5 #
14,940
(including fit out)
Below Ground Piping /
3,364
Conduit, PVC & CS
% OF
CD
M-H’S /
UM
EA
N/A
N/A
42,866,570
42,866,570 57.1%
N/A
EA
18,665
633,677
437,564
1,071,241
1.4%
140
EA
20,223
686,571
1,386,866
2,073,437
2.8%
843
EA
SY
CY
1,805
1,977
1,766
61,280
67,119
59,956
89,988
57,377
3,265
151,268
124,496
63,221
0.2%
0.2%
0.1%
1,805
0.84
22.08
LS
CY
3,833
4,964
130,130
168,528
114,446
63,684
244,576
232,212
0.3%
0.3%
3,833
0.73
CY
1,818
61,721
120,975
182,696
0.2%
3.91
CY
36,728
1,246,916
1,216,382
2,463,298
3.3%
9.09
CY
786
26,685
49,148
75,833
0.1%
21.24
LS
1,675
56,866
1,455,453
1,512,319
2.0%
1,675
LS
1,986
67,425
118,424
185,849
0.2%
1,986
LS
SF
788
7,654
26,753
259,853
33,580
700,880
60,333
960,733
0.1%
1.3%
788
0.51
LF
2,786
94,585
276,388
370,973
0.5%
0.83
Copyright © 2017 Compass International, Inc.
SECTION B2 | 243.
DESCRIPTION
QTY
UM
M-H’S
$ LABOR &
S/C COST
$ MATERIAL $ TOTAL
COST
COST
CONTINUED
Purchase Order for ISBL Pre-fab
1
LS
1,285,000
1,285,000
pipe (piping materials free issued
to fabricator)
Above Ground Piping
42,056 LF
158,656 5,386,371
3,876,576
9,262,947
(CS 60% SS 30% 10% other Aver size 6” diameter) ISBL & OSBL
including all fittings & manual valves
(60% of pipe was fabricated offsite)
Install Structural Steel /
1,115
TN
9,932
337,191
262,875
600,066
Steel Platform / Ladders /
Embedment’s / H.D. Bolts
Set transformers / Lighting
1
EA
4,334
147,139
334,598
481,737
inside & outside / Lightening grid
Communications, CCTV /
1
EA
2,006
68,104
245,666
313,770
Card readers / SCADA system /
Public-address system
Install & Calibrate Instrument
212
EA
6,634
225,224
237,920
463,144
Below Ground - PC Ducts /
25,976 LF
4,338
147,275
244,672
391,947
Wire / Cable
Above Ground - Conduit / MCC /
175,606 LF
24,448 830,010
2,365,554
3,195,564
Wire / Cable / Tray
Cooling Towers c/w Controls
6
EA
10,336 350,907
888,665
1,239,572
Electric Heat Tracing & Controls
3,888
LF
2,814
95,535
96,776
192,311
Insulation to Pipe & Modules
198,556 LF
4,502
152,843
618,650
771,493
Insulation to Process Equipment
37,956 SF
12,333 418,705
347,665
766,370
Painting / Coatings
70,800 SF
7,622
258,767
39,844
298,611
Refractory & Fireproofing
388
CF
720
24,444
28,866
53,310
Weigh bridge & pit 1
EA
376
12,765
28,890
41,655
(includes sump pump)
Truck Loading Module
Pipeline manifolds / Cryogenic tanks 1
EA
3,233
109,760
221,886
331,646
Truck Loading Area / Pipeline Tie-In 1
EA
1,274
43,252
79,865
123,117
Pipe Racks 1
EA
3,653
124,019
653,634
777,653
Other items
1
EA
6,100
207,095
448,700
655,795
S/T
370,765 12,587,472
61,297,292 73,884,764
Freight (Process Equipment & Bulks)
987,660
987,660
Production / Process Equipment / 235,740
235,740
Bulk Material Local Taxes CONSTRUCTION DIRECT (CD) TOTAL
370,765 12,587,472
62,520,692 75,108,164
FIELD IN DIRECTS
Employer paid Fringes & 3,839,179
Burdens ranges from
15% to 25%
& Worker Comp Insurance
(12% to 18.5%) - used 30.5%,
some S/C had this value built into
their L/S prices
% OF
CD
M-H’S /
UM
1.7%
N/A
12.3%
3.77
0.8%
8.91
0.6%
N/A
0.4%
N/A
0.6%
0.5%
31.29
0.17
4.3%
0.14
1.7%
0.3%
1.0%
1.0%
0.4%
0.1%
0.1%
1,723
0.72
0.02
0.32
0.11
1.86
376
0.4%
0.2%
1.0%
0.9%
98.4%
1.3%
0.3%
3,233
1,274
3,653
6,100
N/A
N/A
N/A
100%
% OF CD
5.1%
Copyright © 2017 Compass International, Inc.
244. | SECTION B2
DESCRIPTION
QTY
UM
M-H’S
$ LABOR &
S/C COST
$ MATERIAL $ TOTAL
COST
COST
% OF
CD
CONTINUED
Small tools & consumables 1,305,092 1.7%
370,765 direct hours x
$3.52 per hour
BAR insurance / Bonds etc. 199,300
0.3%
Contractors Field Staff
2,270,928 3.0%
(Approx. 10 #)
23,460 hour x $96.80
Field Staff per diem
198,576
0.3%
Plant hire / Construction
1,977,876 2.6%
equipment
Heavy lift crane 250 ton
356,500
0.5%
(includes mob & demobilization)
Site staff vehicles / trucks
195,634
0.3%
Scaffolding
770,430
1.0%
Fuel / Grease / Equipment Repairs
221,155
0.3%
Site Offices / Trailers / Toilets / 490,177
0.7%
Temp W-House / Office cleaning
service / Guards
Temporary utilities (electric & water)
95,887
0.1%
Sales tax on plant hire & temp materials
139,466
0.2%
Per Diems to travelers
756,870
1.0%
Overtime / shift allowance /
495,565
0.7%
additional supervision /
temporary lights
Site Communication / 47,608
0.1%
Computers - Printers / Internet ND Testing
191,200
0.3%
Contractors Overhead & Fee
3,154,000 4.2%
Miscellaneous items, safety items,
5,866,330 7.8%
fire extinguishers, drug testing ,
Twic card, initial safety meeting,
lunch tents, change rooms,
temporary parking area,
material logistics, snow removal
& clean up, storage containers
& other minor items
FIELD INDIRECT TOTALS
22,571,773 30.1%
TOTAL OF DIRECT & INDIRECT
97,679,937
EPCM Home Office
% of TPC
HO Detailed Design
51,080 111
5,669,880 4.47%
(engineering + design)
HO Procurement S-C Activities
4,444
103
457,732
0.36%
HO Project Management
4,012
134
537,608
0.42%
HO Construction Department Support
1,842
118
217,356
0.17%
HO Safety Department Support
647
102
65,994
0.05%
HO Admin / Legal / Accounting /HR
1,772
86
152,392
0.12%
Travel to site / hotels
78,774
0.06%
Copyright © 2017 Compass International, Inc.
M-H’S /
UM
SECTION B2 | 245.
DESCRIPTION
QTY
UM
M-H’S
$ LABOR &
S/C COST
$ MATERIAL $ TOTAL
COST
COST
% OF
CD
M-H’S /
UM
CONTINUED
Miscellaneous items / Express mail
23,723
1.12%
EPCM Fee
1,035,000 0.82%
TOTAL EPCM H.O. COST
8,668,537 7.94%
Construction Mgmt. & Owners Field Staff
% of TPC
Construction Mgmt. (8) staff (fulltime & p/t)
16,966 129
2,188,614 1.73%
Travel & living expenses
276,646
0.22%
Owner Field Staff (2.5) 3,825
132
504,900
0.40%
Travel & living expenses
25,558
0.02%
Contingency / Management Reserve
17,500,198 13.80%
S/T OWNER COSTS & CONTINGENCY
20,495,916 16.16%
TOTAL PROJECT COST (TPC)
126,844,390
COST PER MCFD
2,114,073
COST PER PROCESS EQUIPMENT ITEM
953,717
HIGH COST PER MCFD + 2,748,295
30% (PRO-RATE ABOVE QUANTITIES
UPWARDS)
LOW COST PER MCFD 1,479,851
30% (PRO-RATE ABOVE
QUANTITIES DOWNWARDS) BASIS OF COSTS:
• Engineering commenced 2nd Q of 2015 12 month effort
• Construction start Aug of 2015 17 month effort, prior to handover
• Construction finish Nov / 2017
• Startup cost not in costs above $354,470 (Estimate)
• Initial fill not in costs above $433,430 (Estimate)
• Vendor assistance $86,940 (Estimate)
• Merit Shop Field Labor (a combination of union & non-union workers)
Copyright © 2017 Compass International, Inc.
246. | SECTION B2
Table 21
VACCINE / BIOLOGICALS MANUFACTURING BUILDING PHASE 2 EXPANSION & MODIFICATIONS TO EXISTING BUILDING:
22,400 SF / 2,082 M2 ADD ON TO EXISTING FACILITY IN IRELAND
2016 COST BASIS: MAY, 2016 EURO EXCHANGE RATE = 0.88 EURO TO US DOLLAR ($1.13)
DESCRIPTION
SQUARE
M2
EURO / SF
EURO / M2
FEET General Conditions / Preliminaries 22,400
includes field survey
Contractors Resident Site
22,400
Construction Manager /
Field Superintendent & Field Q.S.
Contractors Field Engineers /
22,400
Purchasing Staff
Other Field Staff (Safety)
22,400
Toilets / Porta John’s 22,400
Trailers / Porta Cabins
22,400
Temporary Warehouse
22,400
Scaffolding
22,400
Construction Equipment / Cranes
22,400
Safety Equipment
2,400
Field Testing Services
22,400
Field office supplies / computers
22,400
Ongoing / Final Clean up
22,400
Remove Pipe Bridge / 22,400
Re-Route Piping & Cables,
Provide Laydown Area
Building Demolition Work &
22,400
Remove rubble from site
Staging Work / Temporary
22,400
Screens & Partitions
Cut Out New Window Openings (12) 22,400
Cut Out New Door Openings (3)
22,400
New U/G Drains & Gas lines
22,400
Floor Drains (4)
22,400
New slab on grade & 9” of stone
22,400
Concrete plinths & housekeeping
22,400
pads etc. (Approx. 90 M3)
Masonry & lintels etc.
22,400
Steel Stairs & platforms
22,400
Mezzanine floor
22,400
Structural steel columns &
22,400
beams etc. (Approx. 55 Tons)
New internal door / windows
22,400
Carpentry / cabinets / 22,400
work stations etc.
EPDM roofing & penetrations /
22,400
flashings etc.
External doors & windows etc.
22,400
Clean Room Panels
22,400
Floors (Tile / Terrazzo / Carpet)
22,400
Internal Walls (Washable)
22,400
Copyright © 2017 Compass International, Inc.
TOTAL EURO / M2
% OF
TOTAL
2,082
11.67
125.57
261,435
2.88%
2,082
10.45
112.44
234,104
2.58%
2,082
9.76
105.02
218,647
2.41%
2,082
2,082
2,082
2,082
2,082
2,082
2,082
2,082
2,082
2,082
2,082
1.52
0.3
0.71
0.66
0.17
1.36
0.37
0.42
1.1
0.66
1.81
16.36
3.23
7.64
7.10
1.83
14.63
3.98
4.52
11.84
7.10
19.48
34,052
6,721
15,906
14,786
3,808
30,467
8,289
9,409
24,643
14,786
40,548
0.38%
0.07%
0.18%
0.16%
0.04%
0.34%
0.09%
0.10%
0.27%
0.16%
0.45%
2,082
2.05
22.06
45,925
0.51%
2,082
0.81
8.72
18,146
0.20%
2,082
2,082
2,082
2,082
2,082
2,082
1.18
1.54
2.53
2.23
6.49
2.2
12.70
16.57
27.22
23.99
69.83
23.67
26,435
34,500
56,678
49,957
145,391
49,285
0.29%
0.38%
0.62%
0.55%
1.60%
0.54%
2,082
2,082
2,082
2,082
1.06
3.55
2.36
7.66
11.41
38.20
25.39
82.42
23,746
79,528
52,869
171,602
0.26%
0.88%
0.58%
1.89%
2,082
2,082
1.8
3.35
19.37
36.05
40,324
75,048
0.44%
0.83%
2,082
3.22
34.65
72,135
0.79%
2,082
2,082
2,082
2,082
7.55
8.44
8.25
4.12
81.24
90.81
88.77
44.33
169,138
189,076
184,819
92,298
1.86%
2.08%
2.04%
1.02%
SECTION B2 | 247.
DESCRIPTION
SQUARE
M2
EURO / SF
EURO / M2
FEET TOTAL EURO / M2
CONTINUED
Write Up / Office Area
22,400
2,082
6.24
67.14
139,790
Ceilings (Walkable & Lay in)
22,400
2,082
4.43
47.67
99,242
Painting & Coatings
22,400
2,082
6.05
65.10
135,534
Pass Through’s / Air Locks
22,400
2,082
3.02
32.50
67,655
Stainless Steel Wall Protection /
22,400
2,082
0.79
8.50
17,698
Corner guards
Minor specialties / Gown Lockers / 22,400
2,082
3.96
42.61
88,713
Benches / Gown, Booties &
Hairnet Dispensers
Small Bore 0.50”, 1” & 2” &
22,400
2,082
14.78
159.03
331,106
Diameter Stainless Steel pipe & WFI
4” Diameter CPVC / CS / SS pipe
22,400
2,082
8.99
96.73
201,397
46” Diameter CS / SS / CPVC Pipe
22,400
2,082
9.72
104.59
217,751
Main Headers Pipe (CS & SS)
22,400
2,082
4.07
43.79
91,177
Valves (Manual)
22,400
2,082
3.31
35.62
74,152
Insulation to pipe & equipment
22,400
2,082
8.34
89.74
186,835
Duct work
22,400
2,082
12.86
138.37
288,094
HEPA Filters & frames
22,400
2,082
1.94
20.87
43,461
Misc. Minor mechanical systems
22,400
2,082
1.36
14.63
30,467
New Air Handling Unit
22,400
2,082
8.23
88.55
184,371
Modifications to existing AHU’s,
22,400
2,082
7.51
80.81
168,241
utilities & FP system
Bio-Reactors / Production /
22,400
2,082
98.77
1,062.77
2,212,677
Packaging Equipment c/w
instrumentation & Installation
(14 packages / Items)
MCC’s Switchgear Electrical
22,400
2,082
3.78
40.67
84,681
Equipment
Electrical Wire / Cable
22,400
2,082
2.97
31.96
66,535
Conduit / Cable tray
22,400
2,082
5.87
63.16
131,502
Lighting
22,400
2,082
8.04
86.51
180,115
Instrumentation installation /
22,400
2,082
3.85
41.43
86,249
Integration
Security / CCTV / Door cards
22,400
2,082
5.66
60.90
126,797
Other Costs 22,400
2,082
5.87
63.16
131,502
Contractor O/H & P
22,400
2,082
8.99
96.73
201,397
H.O. Project Management &
22,400
2,082
27.52
296.12
616,512
Detailed Design & Fee
Construction Management & Fee
22,400
2,082
16.85
181.31
377,479
GRAND TOTAL COST EURO PER M2
2,082
4,359
9,075,628
GRAND TOTAL COST EURO PER SF
22,400 405.12
9,075,628
EXCLUSIONS / COMMENTS:
• Excludes initial optimization study by 3rd party consultant, $124,500:
• Minimal site work required excavation & site clearance completed in Phase 1 of project; Approx. cost $115,000:
• Phase 1 detailed design & specifications assisted in optimizing detailed design costs by 15% to 25%:
• Excludes validation services Typically rages between 2.5% to 5% of construction cost:
• Excludes temporary office accommodation for 10 # Owner Operations Staff during construction, provided by Owner:
• Land purchase, project is located on an existing 20 +/- acre campus containing more than 15 # buildings:
• Employee Parking area & lighting (parking for 20 vehicles):
• Detailed Design 26 to 30 weeks:
• Construction 60 weeks:
% OF
TOTAL
1.54%
1.09%
1.49%
0.75%
0.20%
0.98%
3.65%
2.22%
2.40%
1.00%
0.82%
2.06%
3.17%
0.48%
0.34%
2.03%
1.85%
24.38%
0.93%
0.73%
1.45%
1.98%
0.95%
1.40%
1.45%
2.22%
6.79%
4.16%
100%
100%
Copyright © 2017 Compass International, Inc.
248. | SECTION B2
Table 22
ENGINEERING, PROCUREMENT & CONSTRUCTION (EPC) COST METRICS
FOR HYDROGEN - INDUSTRIAL GAS, ASU’S & SYNGAS TYPE FACILITIES: 2017 COST BASIS: BASED ON 14 # COMPLETED NORTH AMERICAN FACILITIES
APPROX. 60% CONSTRUCTED OPEN SHOP SCFD = STANDARD CUBIC FEET PER DAY.
MILLION
SCFD
$ ENGINEERING
COST PER MILLION
SCFD (MULTIPLY
CONSTRUCTION
COST BY VALUE
INDICATED BELOW
TO DETERMINE
ENGINEERING COST)
$ PROCUREMENT
COST PER MILLION
SCFD INCLUDES
MAJOR
EQUIPMENT
(MULTIPLY
CONSTRUCTION
COST BY VALUE
INDICATED
BELOW TO
DETERMINE
PROCUREMENT
COST)
$ CONSTRUCTION
COST PER
MILLION
SCFD
(INCLUDES CM)
TOTAL EPC $
CONSTRUCTION
COST PER
MILLION SCFD
AVERAGE,
HIGH & LOW
LABOR METRICS:
15
7% to 10%
45% to 55%
35% to 45%
2,358,000 Average Direct field construction man-hours
2,948,000 High
ranges from 4,000 to 5,750 per
1,651,000 Low
1 million SCFD: In-Direct field
construction man-hours ranges
from 1,250 to 2,000 per 1 million
SCFD
30
7% to 10%
45% to 55%
35% to 45%
60
7% to 10%
45% to 55%
35% to 45%
90
7% to 10%
45% to 55%
Copyright © 2017 Compass International, Inc.
35% to 45%
2,303,000 Average Direct field construction man-hours
2,879,000 High
ranges from 4,000 to 5,750 per
1,612,000 Low
1 million SCFD: In-Direct field
construction man-hours ranges
from 1,250 to 2,000 per 1 million
SCFD
2,248,000 Average Direct field construction man-hours
2,742,000 High
ranges from 4,000 to 5,750 per
1,536,000 Low
1 million SCFD: In-Direct field
construction man-hours ranges
from 1,250 to 2,000 per 1 million
SCFD
2,193,000 Average Direct field construction man-hours
2,742,000 High
ranges from 4,000 to 5,750 per
1,536,000 Low
1 million SCFD: In-Direct field
construction man-hours ranges
from 1,250 to 2,000 per 1 million
SCFD
SECTION B2 | 249.
EPC COSTS INCLUDE:
1. Home Office safety, procurement services,
HR, accounting, CAD, document copying costs, express mail, rent & cleaning.
2. Home Office Eng. / detailed design, procurement services:
3. Home Office project management, estimating,
project controls:
4. General Administration / Fees & Profit:
5. Fabricated pipe (Labor & Material), ISBL &
OSBL pipe completed offsite procured by Purchase
Order.
6. Fabricated structural steel (Labor & Material)
same as pipe.
7. Fabricated modules (Labor & Material) same
as pipe.
8. Site staff / Sub-contractors purchased all nonengineered bulk materials.
9. Home Office Procurement purchased all
tagged items (major equipment / process equipment,
electrical equipment, instruments & vendor assistance).
10. Minor demo, Site clearance (minor cut & fill),
Site works, Temporary & Permanent Roads, Stone
platform (laydown areas).
11. Concrete foundations (Concrete, Rebar &
formwork), Piling, Surveys, Fencing & Guard services:
12. Site Working Stone platform / hardcore (laydown areas):
13. Site Utility services, field run small pipe 2” &
below:
14. All bulk & engineered materials (structural
steel, pipe, E&I, insulation, refractory, coatings, siding, paint:
15. Site establishment / permanent & temp buildings.
EXCLUSIONS:
1. Above values exclude Owner Engineering /
Construction Mgmt. H.O. & Site based staff costs,
this ranges between 0.50 % to 3.35% of Total Installed Cost:
2. Ditto H.O. & Site based staff travel / accommodation / per-diem costs use 0.15% to 0.45% of
Total Installed Cost.
3. Independent EPC Site Management / Consultants monitoring Construction are excluded - use
2.25% to 4.25% of Total Installed Cost.
4. Ditto Independent Site Mgmt. staff travel / accommodation / per-diem costs use 0.15% to 0.35% of
Total Installed Cost.
VARIOUS INDUSTRIAL GASES - HYDROGEN SHALE - SYNGAS / CHEMICAL FACILITY 2017
BENCHMARKS / METRICS:
1. Typical Detailed Design Man Hours 215 to
355 per Ton for Piping / Modules & Pre-Assemblies
2. Typical Direct Skilled Craft Labor Rate Open
Shop $35.45 to $37.25:
3. Typical Direct Skilled Craft Labor Rate Union
$44.05 to $47.15:
4. For Merit Shop Applications (a site that utilizes both Open & Union workers) use an average of
above:
5. Typical Offsite Shop pipe fabrication labor
rates for skilled & unskilled workers are between 5%
and 12.5% less than above:
6. Typical Direct Unskilled Labor Rate Open
Shop 0.70 to 0.80 of above:
7. Typical Direct Unskilled Labor Rate Union
0.70 to 0.80 of above :
8. For Merit Shop Applications (a site that utilizes both Open & Union workers) use an average of
above:
9. Typical Direct Site Supervision Labor Rate
Open Shop $41.20 to $44.25:
10. Typical Direct Site Supervision Labor Rate
Union $49.40 to $53.85:
11. Typical Craft Burden & Benefits cost per hour
Open Shop $6.55 to $11.95:
12. Typical Craft Burden & Benefits cost per hour
Union $6.95 to $13.95:
13. For Merit Shop Applications (a site that utilizes both Open & Union workers) use an average of
above:
Copyright © 2017 Compass International, Inc.
250. | SECTION B2
14. Typical In-direct uplift percentage on Labor
Rates to capture Burdens & Benefits / Insurance 55%
to 85% (for both Open Shop & Union):
15. Typical In-direct uplift percentage on Labor
Rates to cover OH / Gen Admin 10% to 14% (for
both Open Shop & Union):
16. Typical In-direct uplift percentage on Labor
Rates to cover OH & P 8% to 20% (for both Open
Shop & Union):
17. Typical In-direct uplift percentage on Labor
Rates to cover Profit / Fees 6.5 % to 10.5% (for both
Open Shop & Union):
18. Typical In-direct uplift percentage on Labor
Rates to cover General Conditions / Preliminaries /
CSI Division 1 4% to 12% (for both Open Shop &
Union):
19. Typical In-direct cost on Labor Rates to cover
General Conditions / Preliminaries / CSI Division
1 $0.50 to $2.00 per man-hour both Open Shop &
Union):
20. Typical cost per hour of Construction Equipment per Direct Field labor hour $4.50 to $11.00
Backhoes, cranes, trucks, excludes fueling & maintenance):
21. Typical cost per hour of Heavy Lift cranes per
Direct Field labor hour $1.50 to $3.00 excludes fueling & maintenance):
22. Typical cost per field direct man-hour for
Small Tools (shovels, picks, saw blades etc. Typically
items costing less than $100 each) $1.85 to $4.15:
23. Typical cost per field man-hour for Consumables (welding rods, gas bottles, rags, oil, fuel, grease
etc.) $0.85 to $3.85:
24. Typical cost per field man-hour for safety
items (hard hats, nets, signs, barricades, safety shoes,
googles, vests, overalls) $0.55 to $1.45:
25. Typical “Day work” all in / marked up selling
rate for skilled union construction worker $90 to $120
per man-hour:
26. Typical “Day work” all in / marked up selling
rate for unskilled union construction worker $80 to
$100 per man-hour:
27. Typical “Day work” all in / marked up selling
Copyright © 2017 Compass International, Inc.
rate for skilled nonunion construction worker $68 to
$98 per man-hour:
28. Typical “Day work” all in / marked up selling
rate for unskilled union construction worker $58 to
$88 per man-hour:
29. Typical mark up on “Day work” construction
equipment / plant hire / scaffolding 5% to 10%:
30. Typical mark up on “Day work” bulk materials & major equipment 5% to 10%:
31. Typical cost of day rate for Home Office / Site
Construction Consultant / Freelancer $700 to $1,250
per day:
32. Typical cost of per diem day rate for Home
Office / Site Construction Consultant / Freelancer $75
to $150 per day:
33. Typical cost of per diem day rate for field construction worker living away from home (classified as
traveler) $50 to $125 per day:
34. Typical cost of per diem day rate for field
construction supervisor living away from home $75 to
$150 per day:
35. Typical day rate for Vendor Assistance (for
starting up complex production equipment) $650 to
$1,250 per day:
36. Typical cost per day for Vendor Assistance per
diem $100 to $150 per day:
CONSTRUCTION COSTS / FIELD MAN-HOUR
METRICS FOR INSTALLATION / WELDING:
1. Cost per Ton at Module / Fabrication Facility
(non-complex modules, includes process equipment)
$10,000 to $15,000 per ton:
2. Cost per Ton at Module / Fabrication Facility (complex modules, includes process equipment)
$15,000 to $30,000 per ton:
3. Carbon Steel Pipe inside cold box, furnace &
reformer tubes 250 - 500 man-hours per ton:
4. Carbon Steel Pipe outside cold box, furnace &
reformer 125 - 225 man-hours per ton:
5. Aluminum Pipe inside cold box, furnace,
reformer tubes & pigtail manifold 600 - 1,200 manhours per ton:
6. Aluminum Pipe outside cold box, furnace &
SECTION B2 | 251.
reformer 350 - 800 man-hours per ton:
7. Steam Reformer Box / Panel Setting 40 to 60
man-hours per ton:
8. Down comer / Riser Pipe 150 to 200 manhours per ton:
9. Installation of Coils 10 to 15 man-hours per
ton :
10. Installation of Pre-Fabricated Structural Steel /
Platforms 16 to 32 man-hours per ton:
11. Installation of Pre-Fabricated Reformer Penthouse Structure & Housing including doors & miscellaneous steel ladders etc. 16 to 32 man-hours per ton:
12. Installation of Pre-Fabricated Reformer Penthouse miscellaneous steel hoists / plates / louvers etc.
24 to 48 man-hours per ton:
13. Installation of Major Equipment Items 10 to
20 man-hours per ton:
14. Typical scaffolding effort (Mat & Labor +
rental cost) falls in the range of 2.85% to 8.75% of
Field Direct man-hour total cost:
15. Installation of Refractory 15 to 25 man-hours
per Cubic Yard:
16. Air cooler 15 ton = 44 to 54 man-hours per
ton 25 ton 72 - 84 man-hours per ton:
17. Ammonia storage tank 12 to 20 man-hours
per ton:
18. Boiler - Reformer 2.50 to 3.75 man-hours per
ton:
19. Burners 30 to 40 man-hours per ton:
20. Catalyst / Grogg packings 0.35 to 0.50 manhours per Cubic Foot:
21. Compressor 10 ton = 85 man-hours 15 ton =
128 hours 20 ton = 158 man-hours:
22. Concrete reinforced 8 to 16 man-hours per
Cubic Yard:
23. Convection modules 2.50 to 3.50 man-hours
per ton:
24. Cost of Carbon Steel Pipes, Valves, & Fittings
(PVF) = $6 to $9 per pound:
25. Cost of Low Temperature Carbon Steel PVF =
$6 to $9.50 per pound:
26. Cost of Stainless Steel PVF = $7 to $11 per
pound:
27. Cost of High Alloy PVF = $7 to $11 per
pound:
28. Cost of Fiberglass Reinforced PVF = $5 to $8
per pound:
29. Cost of Materials for Instrumentation = $11 to
$14 per pound:
30. EPC cost of Furnace - $21.50 to $26.50 per
pound / $43,000 to $53,000 per ton:
31. EPC cost of Heat Exchanger (S&T) - $33.50
to $42.50 per pound / $67,000 to $85,000 per ton:
32. Epoxy coating to Structural Steel (2 coat by
spray gun) 0.017 to 0.02 5man-hours per ton:
33. Deaerator 10 tons = 60 man-hours 20 ton =
110 man-hours per ton 30 ton = 160 man-hours:
34. Demineralized water storage tank 4 to 6 manhours per ton:
35. Drum - Flash 10.50 to 15.50 man-hours per
ton:
36. Heat Exchanger (S&T) 4 to 6 man-hours per
ton:
37. Heat Exchanger Air pre-heat (S&T) 4.5 to 7.5
man-hours per ton:
38. Grating walkway 0.25 to 0.50 man-hours per
Square Foot:
39. Gravel Roads 25’ wide x 6” deep = 0.2 to 0.4
man-hours per Square Foot:
40. Gunnite / premixed castable gunned in and
troweled in ducts / walls 2” thick 0.10 to 0.15 manhours per Square Foot:
41. Gunnite / premixed castable gunned in and
troweled in ducts / walls 4” thick 0.15 to 0.25 manhours per Square Foot:
42. Gunnite / premixed castable gunned in and
troweled in ducts / walls 6” thick 0.25 to 0.40 manhours per Square Foot:
43. Inlet / Outlet manifold assemblies (set) 4 to 8
man-hours per ton:
44. Ladders open & cage 0.30 to 0.60 man-hours
per Lin Foot:
45. Modules (set) 2.5 to 5 man-hours per ton:
46. Pipe - Complex (Inside Battery Limit) 200 to
400 man-hour per ton Fabrication / Erection 50 / 50
split:
Copyright © 2017 Compass International, Inc.
252. | SECTION B2
47. Pipe - (Inside Battery Limit) 150 to 300 manhour per ton Fabrication / Erection 50 / 50 split:
48. Pipe (Inside Battery Limit) 75 to 150 manhour per ton - Fabrication / Erection 50 / 50 split:
49. PSA - Pressure Swing Absorber 1.25 to 2.50
man-hours per ton:
50. Pump 12 to 16 man-hours per ton:
51. Reactor - Desulfurization 3 to 5 man-hours
per ton:
52. Roof & wall siding / cladding 0.025 to 0.05
man-hours per Square Foot:
53. Scaffold - Install, maintain and removal $1.00
- $1.65 per square foot or $10 to $17.5 per M2 of facing wall area:
54. Scaffold - Rental cost of scaffolding per week
$0.10 to $0.15 per square foot, or $1.00 to $1.75 per
M2 of facing wall area:
55. For projects exceeding 8 weeks discount
above unit cost by 15%:
56. Separator 5 to 7 man-hours per ton:
57. Supply & erect structural steel $2,250 to
$3,450 per ton:
58. Valve / Piping skid (set) 1.75 to 3.5 man-hours
per ton:
59. Valve skid 1.25 to 2.5 man-hours per ton:
Benchmarks of Shale - Syngas - Industrial Gas Facilities
in USA, Europe & Asia
2017 COST BASIS
CAPACITY
15 MILLION
SCFD
16.8 NM3 /
HOUR
30 MILLION
SCFD
33.6 NM3 /
HOUR
60 MILLION
SCFD
67.2 NM3 /
HOUR
Detailed Design /
Engineering Deliverables
Procurement Activities /
Major Equipment Purchase
Construction Construction Mgmt.
Other Costs, Start up,
Spare parts,
Owner Field staff
TOTAL INSTALLED COST
Average Cost per 1 million $ 2,358,368
$ 2,303,523
$ 2,248,677
SCFD for a complete
facility
Low Range 0.70
$ 1,650,858
$ 1,612,466
$ 1,574,074
High Range 1.25
$ 2,947,960
$ 2,879,403
$ 2,810,846
Copyright © 2017 Compass International, Inc.
90 MILLION
SCFD
100.80 NM3 /
HOUR
APPROX.
% SPLIT
TYPICAL
% RANGE
$ 18,767,548
9.5%
8.5% to 13.5%
$ 100,076,450
50.7%
45% to 55%
$ 63,486,770
$ 8,664,565
$ 6,449,455
32.2%
4.4%
3.3%
30% to 40%
3.5% to 6%
2.5% to 4%
$ 197,444,788
$ 2,193,831
100%
100%
$ 1,535,682
$ 2,742,289
SECTION B2 | 253.
Construction Cost Range per SCFD
2017 COST BASIS
LOCATION
FACILITY
SIZE SCFD
N.W. USA (Merit Shop)
20,000,000
Mid-West USA (Merit Shop) 30,000,000
N.W. USA (Merit Shop)
40,000,000
Mid-West USA (Union)
50,000,000
Gulf Coast USA (Open Shop) 60,000,000
$ CONSTRUCTION COST
(LOW) EXCLUDES, MAJOR
EQUIPMENT, TAGGED ITEMS,
ELECTRICAL EQUIPMENT,
PIPE / STRUCTURAL STEEL
MATERIALS , OFFSITE FABRICATION & CONSTRUCTION
MANAGEMENT, INCLUDES
CIVIL / CONCRETE, FIELD RUN
PIPING, E & I, INSULATION,
REFRACTORY & PAINTING
$ CONSTRUCTION COST
(HIGH) EXCLUDES, MAJOR
EQUIPMENT, TAGGED ITEMS,
ELECTRICAL EQUIPMENT,
PIPE / STRUCTURAL STEEL
MATERIALS , OFFSITE FABRICATION & CONSTRUCTION
MANAGEMENT, INCLUDES
CIVIL / CONCRETE, FIELD RUN
PIPING, E & I, INSULATION,
REFRACTORY & PAINTING
$ COST
PER
SCFD
(LOW)
$ COST
PER
SCFD
(HIGH)
12,600,000
18,000,000
22,800,000
28,750,000
32,700,000
18,270,000
26,100,000
33,060,000
41,687,500
47,415,000
0.63
0.60
0.57
0.58
0.55
0.91
0.87
0.83
0.83
0.79
Copyright © 2017 Compass International, Inc.
SECTION B3
Square Foot / M2 Estimating
Data & Systems
S
sylvania or Kabul, Afghanistan, the footprint area –
quare foot / M2 estimate(s) are valuable
perhaps has been “roughed out.” Usable square feet,
when some basic information is known
the number of floors are possibly known, number of
about the new facility, number of floors
may be known i.e. we think 5 floors would people that will populate the building, but there are
still a lot of details that have not been nailed down.
meet the local planning board, number of people
At this point (milestone) in the projects’ life cycle
using the facility i.e. between 300 and 400 people,
plus possibly 50 visitors. However, a lot more design we typically need a budget / cost estimate particularly during this stage which is many times called,
information needs to be determined, finishes, floor
(1) conceptual stage, (2) programming stage and or
to ceiling height, materials of construction, heating
(3) schematic / preliminary stage. This is when the
/ cooling system etc., all of these issues need to be
critical design decisions are made
established in the design process.
that for the most part dictates the
The accuracy of this estimating
future, go, no go verdict and the
method is perhaps in the 15%
This section of the database
economics of the project. In the
- 20% range. Square foot / M2
provides 2017 square foot
field of planning and designing a
estimating is an excellent front end
/ M2 costs for a variety of
building component - say, roofestimating tool that is widely used
industrial and commercial
ing system or the wall system,
in the construction industry, most
facilities.
the Architect / Engineer should
Architects, Engineers and related
judge not only the quality and
construction professionals have
performance factors of similar
a decent appreciation of how this
/ contending systems, but also their comparative
estimating technique is utilized. This section of the
costs, life expectancy, maintenance costs and scheddatabase provides 2017 square foot / M2 costs for a
variety of industrial and commercial facilities. These ule implications. Other possible solutions need to
values are current and can be calibrated to a number be considered, should the project use an EPDM
roof or would a metal roof be better, the cost ramiof US / Canadian and overseas locations if needed.
We have also endeavored to assign costs for revamp fications of this selection are very important at this
and modernization / upgrade of these specific facili- stage of the project. All the way through this section,
ties. To set the ground rules of the estimating method square foot / M2 cost figures are based on North
American national averages – calibrated and benchwe need to start at the beginning of the construction
marked to Washington D.C., and adjusted to 2017
effort. We are in the earliest stages of a project, no
pricing levels, we are endeavoring to add some admore than 10% of the detailed design drawings and
ditional international M2 benchmarks in our future
specifications have been completed – or perhaps it
additions.
is still just a concept in the owners mind – a “lot”
Location factor adjustment tables indicated in
of uncertainty with the future project still exists. We
Section B – 5 may be used to calibrate these costs to
typically know the location(s) i.e. Kutztown, Penn-
Copyright © 2017 Compass International, Inc.
256. | SECTION B3
These square foot / M2 cost values include the usual / M2 price typically gets larger as the building gets
contractors’ markup and profit and therefore represmaller.
sents the anticipated actual total installed square foot
/ M2 costs. Additionally, for purposes of cost comNEW INDUSTRIAL / COMMERCIAL SQUARE
parison with similar buildings / facilities, there are
FOOT – M2 BUILDING COSTS 2017 COST BASIS
examples of average building / facilities square foot
The general approach is to determine the number
/ M2 costs indicated. The values include foundaof floors, footprint of building / facility, calculate
tions, substructure, superstructure, exterior closure,
usable square foot area of facility / building, select
roofing systems, interior construction, elevators etc., building type / specification from list below and
mechanical / electrical systems, special construcmultiply by calculated square footage by the aption, site work’s specific to the building footprint,
propriate SF/ M2 cost value. Modify for location by
contractors fee and overhead, the square foot / M2
selecting city location factor indicated in Section B values exclude land purchase and
5. The following Facility / BuildArchitectural fees usually ranging
ing costs are specified by cost
between 4% and 7%. Construction
model size in S.F. together with
Management fees – usually ranging These square foot / M2 cost
number of floors in U.S. dollars
from 3% - 5%, excluding general
per square foot / M2 by Facility
values include the usual
conditions and owner engineering
/ Building for each category of
contractors’ markup and
services and any significant items
building.
profit and therefore repreoutside the building footprint such
• Specification A Facing with
sents the anticipated actual
as parking lots, landscaping, guard
concrete block back-up
total installed square foot /
house and fencing.
• Specification B Stucco on
M2 costs.
The information / data and
concrete block
prices included in this section
• Specification C Ribbed conhave been compiled from industry
crete block
sources considered to be dependable and to be repre• Specification D Pre-Cast concrete panels
sentative of current market conditions. There is no
• Specification E Insulated metal panels
warranty, or guarantee, as to the accuracy or adequa• Specification F Tilt-up concrete panels
cy of the cost data indicated, the values indicated are
• Specification G R.C. frame cast on site
as has been indicated previously national averages.
• Specification H Curtain wall / metal & glass
They are a good starting point in the estimating efpanels
fort.
• Specification I EIFS / Dryvit wall panels
Note: Adjustments should be made for applica• See chart next page
tions that fall outside of the cost model size indicated square foot values.
Example Building Cost Model = 18,000 SF, if
proposed building is 10 % smaller (or smaller still)
add 5%-10% to SF / M2 unit value.
If proposed building is 10% larger (or larger than
that value) discount value by 5% - 10%, Buildings
and facilities typically get less expensive as they get
bigger in footprint / useable space. The opposite is
the case with smaller buildings the unit price, i.e. SF
Copyright © 2017 Compass International, Inc.
SECTION B3 | 257.
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
MODEL SF
COST
SF $
MODEL M2 LOW
SF $
HIGH
AVERAGE
COST $ SF
AVERAGE
$ M2 COST
300 mm wafer manufacturing facility
Advanced Chemical Weapons Laboratory
Agricultural R&D Center Animal Research / Testing Facility 2 Floors
Apartments 1 – 3 Floors (Spec A)
Apartments 1 – 3 Floors (Spec B)
Apartments 3 – 5 Floors (Spec C)
Apartments 3 – 5 Floors (Spec A)
Apartments 3 – 5 Floors (Spec D)
Apartments 5 – 25 Floors (Spec D)
Apartments 5 – 25 Floors (Spec A)
API – Pharmaceutical Facility
Auditorium 2 Story (Spec A)
Auditorium 2 Story (Spec D)
Auditorium 2 Story (Spec C)
Automobile Production Facility
Bakery Bank 1 Story (Spec A)
Bank 1 Story (Spec B)
Bank 1 Story (Spec C)
Biological Manufacturing Bio – Medical / R&D Center 3 Floors
Bleach Manufacturing Facility
Brewery Cable TV Facility Chemical Process Plants 3 Floors
Computer / Telecommunications Center
2 Floors
cGMP ISO 6 – 8 cGMP ISO 7 – 8 Dairy / Cheese / Butter Production
Data Processing Office
Fiber Production Facility Food Production Facility 2 Floors
GMP Production Facility 80% ISO 5,6,7 & 8
GMP Production Facility 60% ISO 5,6,7 & 8
GMP Production Facility 60% ISO 6,7 & 8
GMP Production Facility 50% ISO 7 & 8
GMP Production Unclassified 2 Floors
Heavy Manufacturing Facility
Hospital 2 - 4 Story (Spec A)
Hospital 2 - 4 Story (Spec D)
Hospital 2 - 4 Story (Spec H)
264,500
114,000
72,600
96,000
30,000
30,000
85,000
85,000
85,000
335,000
335,000
133,000
45,700
45,700
45,700
585,000
615,000
9,200
9,200
9,200
340,000
92,500
388,000
181,000
12,700
56,000
27,700
24,582 2,522
10,595 500
6,747 271
8,922 479
2,788 151
2,788 139
7,900 143
7,900 146
7,900 144
31,134 162
31,134 145
12,361 480
4,247 155
4,247 153
4,247 148
54,368 122
57,156 122
855
191
855
197
855
191
31,599 1,976
8,597 436
36,059 137
16,822 122
1,180 122
5,204 106
2,574 139
3,343
637
347
615
192
175
181
187
183
205
186
611
198
195
189
156
157
243
250
246
2,449
555
174
156
157
135
177
2,933
568 309
547
171
157
162
166 164
184
165
546
177
174
169
139
140
217
224
218
2,212
495
156
139
140
120
158
31,555
6,117
3,325
5,884
1,840
1,693
1,742
1,791
1,761
1,975
1,779
5,871
1,902
1,871
1,816
1,497
1,503
2,337
2,405
2,350
23,806
5,331
1,675
1,497
1,503
1,295
1,699
117,500
88,600
74,000
11,000
88,000
73,000
137,000
137,000
137,000
137,000
137,000
40,000
166,700
166,700
166,700
10,920
8,234
6,877
1,022
8,178
6,784
12,732
12,732
12,732
12,732
12,732
3,717
15,493
15,493
15,493
1,314
1,088
170
205
175
173
1,301
1,228
946
766
270
151
310
318
324
1,169
971
152
183
157
155
1,160
1,095
844
685
241
135
277
284
289
12,577
10,448
1,632
1,969
1,687
1,663
12,479
11,779
9,086
7,374
2,595
1,454
2,982
3,055
3,111
1,024
854
134
161
138
136
1,018
962
743
605
212
119
244
249
254
Copyright © 2017 Compass International, Inc.
258. | SECTION B3
FACILITY / BUILDING COSTS
COST
MODEL SF
Hospital 5 - 10 Story (Spec A)
333,600
Hospital 5 - 10 Story (Spec D)
333,600
Hospital 5 - 10 Story (Spec H)
333,600
Hotel 3 -5 story (Spec H) 201,750
Hotel 3 -5 story (Spec A) 201,750
Hotel 3 -5 story (Spec D) 201,750
Hotel 5 -20 story (Spec H) 742,600
Hotel 3 -5 story (Spec A) 742,600
Hotel 3 -5 story (Spec D) 742,600
Lithographic Line 44,000
Livestock / Agricultural Research Station
26,000
Manufacturing Light
32,000
Manufacturing Facility 1 Floor (Spec E)
69,400 Manufacturing Facility 1 Floor (Spec D)
69,400
Manufacturing Facility 1 Floor (Spec A)
69,400
Manufacturing Facility 1 Floor (Spec F)
69,400
Manufacturing Facility 1 Floor (Spec C)
69,400
Manufacturing Facility 2 - 3 Floor (Spec E) 108,600
Manufacturing Facility 2 - 3 Floor (Spec D) 108,600
Manufacturing Facility 2 - 3 Floor (Spec A) 108,600
Manufacturing Facility 2 - 3 Floor (Spec F) 108,600
Manufacturing Facility 2 - 3 Floor (Spec C) 108,600
Micro Chip / Satellite Manufacturing Facility 163,000
Nanoscale Science Laboratory
98,500
Office 5 - 20 Floors (Shell only – no fit out) 285,000
Office 1 - 3 Story (Spec A) 37,370
Office 1 - 3 Story (Spec I) 37,370
Office 1 - 3 Story (Spec C) 37,370
Office 1 - 3 Story (Spec D) 37,370
Office 4 - 8 Story (Spec A) 157,800
Office 4 - 8 Story (Spec I) 157,800
Office 4 - 8 Story (Spec C) 157,800
Office 4 - 38 Story (Spec D)
157,800
Paper Production 106,000
Parking Garage 3 - 5 Floors (Spec D)
255,600
Parking Garage 3 - 5 Floors (Spec A)
255,600
Parking Garage underground 2 Floors
67,800
(Spec G)
Pharmaceutical Development Facility
78,000
Pharmaceutical / Medical Device Facility
51,000
R&D / Pilot Plant ISO 7 and 8
121,500
Refrigerated Warehouses 54,000
Research Laboratory (Basic Research)
62,000
2 Floors
Research Center Auto / Jet Engine Testing 64,000
Research Laboratory / OSD
71,700
Terminal - Airport 388,000
Copyright © 2017 Compass International, Inc.
COST
SF $
MODEL M2 LOW
SF $
HIGH
AVERAGE
COST $ SF
AVERAGE
$ M2 COST
31,004
31,004
31,004
8,750
18,750
18,750
69,015
69,015
69,015
4,089
2,416
2,974
6,450
6,450
6,450
6,450
6,450
10,093
10,093
10,093
10,093
10,093
15,149
9,154
26,487
3,473
3,473
3,473
3,473
14,665
14,665
14,665
14,665
9,851
23,755
23,755
6,301
237
234
239
165
151
148
151
146
144
134
181
96
98
99
101
94
100
106
108
103
101
101
398
326
154
145
139
144
140
140
134
140
136
122
58
56
80
301
297
305
210
192
189
192
187
183
170
230
121
123
125
128
120
126
135
137
133
128
130
510
418
196
186
177
183
178
178
171
178
173
156
76
72
100
269
265
272 188
171
169
171
166
164
152
205 108 111
112
115
107
113
120
123
118
115
116
454
372
175
165
158
164
159
159
152
159
155
139
67
64
90
2,896
2,853
2,926
2,018
1,840
1,816
1,840
1,791
1,761
1,632
2,209
1,166
1,190
1,202
1,233
1,153
1,215
1,295
1,319
1,270
1,233
1,246
4,884
4,000
1,883
1,779
1,699
1,761
1,712
1,712
1,638
1,712
1,663
1,497
724
687
969
7,249
453
4,740
716
11,292 505
5,019 133
5,762 212
583
916
641
167
270
518
816
573
150
241
5,571
8,780
6,166
1,613
2,595
5,948 197
6,664 445
36,059 187
250
566
238
224
506
212
2,405
5,442
2,282
SECTION B3 | 259.
FACILITY / BUILDING COSTS
COST
MODEL SF
Tire Manufacturing Facility
73,000
Toner Production 2 Floors
98,800
Toxicology Research Laboratory 4 Floors
122,000
University Research Medical Facility
345,400
9 Floors
University / Biomedical Genomics 237,500
University Class Rooms 2 - 4 Floors (Spec A) 105,700
University Class Rooms 2 - 4 Floors (Spec C) 105,700
University Class Rooms 2 - 4 Floors (Spec D) 105,700
University Dormitory 3 - 5 Floors (Spec A) 123,700
University Dormitory 3 - 5 Floors (Spec C) 123,700
University Dormitory 3 - 5 Floors (Spec D) 123,700
University Laboratory 1 - 2 Floors (Spec A) 79,500
University Laboratory 1 - 2 Floors (Spec C) 79,500
University Laboratory 1 - 2 Floors (Spec D) 79,500
Warehouse 80% / Office 20% /
84,000
Distribution Center
Warehouse 90% / Office 10% (Spec A)
51,500
Warehouse 90% / Office 10% (Spec F)
51,500 Warehouse 90% / Office 10% (Spec C)
51,500
Warehouse 90% / Office 10% (Spec E)
51,500
Warehouse (VL) Logistics Center
427,000
COST
SF $
MODEL M2 LOW
SF $
HIGH
AVERAGE
COST $ SF
AVERAGE
$ M2 COST
6,784
9,182
11,338
32,100
154
122
429
779
196
157
548
994
175 140
489
887
1,883
1,503
5,258
9,540
22,072
9,823
9,823
9,823
11,496
11,496
11,496
7,388
7,388
7,388
7,807
454
161
154
162
154
147
146
171
165
163
78
581
205
196
207
196
188
187
217
210
208
97
518
183
175
184
175
168
166
194
188
185
87
5,571
1,969
1,883
1,982
1,883
1,804
1,791
2,086
2,018
1,994
939
4,786
4,786
4,786
4,786
39,684
90
83
88
85
71
113
106
111
108
91
101
95
99
97
81
1,092
1,018
1,067
1,043
871
FRONT END PLANNING SPECIFIC TO THE REVAMP / RETROFIT (EPC) PROJECTS
Altering an existing / functioning clean room makes
the retrofitting of this type of project the most expensive and usually the most time consuming effort of
all construction types.
Prior to the establishment of the cost estimate /
budget in the front end / initial visit to the facility
some of the following topics should be raised:
1. Are there any current facility drawings and
specifications (as-builts)?
2. Are there any equipment spec sheets / energy
usage reports?
3. Does the facility meet local codes and FDA
/ governmental guidelines, can they be “Grandfathered” or are they obsolete and need to be replaced?
4. Will we be operating in an existing facility,
what impact will this have on worker productivity
and material handling logistics, will construction
workers need to wear gowns and masks?
5. Will we encounter asbestos, lead paint and
mold, what is our plan to work through these issues?
6. How can we budget and scope out unforeseen / hidden conditions?
7. Will the current utilities (water, gas, steam,
power) be able to support the “new” or revamped
facility?
8. What are the starting completion milestones
(do we need to estimate future inflation)?
These initial questions will need to be answered
prior to commencing the estimating effort. Many
times these questions are not readily available; a
path forward needs to be established on how this
important data can be obtained. Open topics during
the front end estimating effort will help minimize the
risk items that are inherent to this Revamp / Retrofit
type of work.
New and Revamped Hi-tech facilities are
amongst some of the most costly type of construction that construction professionals will encounter.
Copyright © 2017 Compass International, Inc.
260. | SECTION B3
The data indicated below hopefully will assist in
floors will be required. Certain existing items maybe
determining the cost of new and revamp construcutilized, stairwells, elevator shafts (use 50% - 85%
tion projects specific to Hi-tech / manufacturing type of “A” values – for the example below we have used
facilities. The definition of revamp in this instance
0.70, which might be on the high side). Note: This
includes:
50% – 85% could grow to 100% – 135%, if build• Rehabilitate / repair / remodel.
ing remains in operation. The building may need
• Update / renovate.
to be completed in phases, and temporary offices
• Refurbish / raze / gut.
may need to be established to house current facil• Refurbish with an “add on” new facility.
ity residents.
A word of warning; it is not always cheaper to
C = Moderate revamp / rehabilitation. In a
renovate an existing facility, it is sometimes more
revamp (considerable to minor revamp / rehabilicost effective to design and build a new facility, an
tation - possibly 50% of the buildings will be upeconomic of the proposed revamped facility should
graded), internal walls floors, utility services can be
take place to determined the cost
saved / utilized to some extent,
differential of revamped V’s new.
however new load centers and
Consider trying to renovate a 30 –
new wiring will most probably be
...it is not always cheaper to
50 year old manufacturing facility
needed. Ductwork, new sprinkler
in a downtown area of a major city, renovate an existing facilisystems, piping systems, over 15
ty, it is sometimes more cost
traffic, problems, delivering mateyears old, would most probably
effective to design and build
rials and equipment, lifting heavy
be replaced in this application.
a new facility...
items of the equipment into the
(Use 25% - 50% of “A” values –
proposed facility and other specific
for the example below we have
construction logistical problems
used 0.35) Refer to note 1 above;
can cause the construction cost to
building may need to be comincrease.
pleted in phases. New or limited laboratory services
may be added (gas, water and power), and possibly
NEW CONSTRUCTION AND REVAMP CONnew ductwork and lighting needs could be part of
STRUCTION CAPITAL COST ESTIMATING
this component.
FACTORS / CALIBRATIONS:
D = Minor Revamp / Superficial facelift - new
This is additional to the data shown in previous Sec- carpet, some additional internal / party walls, adtion 1:
ditional services / upgrades, some new ceilings, new
Facility / Building Costs New vs. Revamped /
lobbies, new bathroom fixtures, complying with
Upgraded (values include A/E costs, CM costs, they ADA (handicap requirements), electrical upgrades,
exclude land purchase and any owner costs).
possibly upgrading a 60 amp service to a 100 amp
A = “New Build” / Grass roots facility, inservice / fiber optics and re-painting work (paint
cludes project specific site works, landscaping and
and scrape). Use 5% - 30% of “A” values – for the
new utilities required.
example below we have used 0.20, which could be
B = Major Revamp / rehabilitation, assumes
considered on the low side.
that facilities “External Enclosure” i.e. external
To convert these SF values to M2 values multiwalls, windows, roof (possibly) and structural shell
ply by 10.76. (See chart next page).
(structural steel or CIP concrete / floors) can be
reused. New services / utilities / life support services
will be required, new internal walls, ceilings and
Copyright © 2017 Compass International, Inc.
SECTION B3 | 261.
New Construction & Revamp Construction
CAPITAL COST ESTIMATING FACTORS / CALIBRATIONS
FACILITY / BUILDING COSTS
COST MODEL
SF
AVERAGE SF $ “B” SF/ $
COST “A” NEW COST 0.70
“C” SF/ $
COST 0.35
“D” SF/ $ COST 0.20
Advanced Chemical Weapons
114,000
549
385
192
110
Laboratory
Agricultural R&D Center
72,600
299
209
105
60
Animal Research / Testing Facility 96,000
521
365
182
104
2 Floors
API – Pharmaceutical Facility
133,000
528
369
185
106
Automobile Production Facility
585,000
134
94
47
27
(Shell only)
Bio – Medical / R&D Center
92,500
479
335
168
96
3 Floors
Brewery (Shell only)
181,000
134
94
47
27
Cable TV Facility
12,700
142
100
50
28
Chemical Process Plants 3 Floors 56,000
110
77
39
22
Computer / Telecommunications 27,700
151
106
53
30
Center 2 Floors
Data Processing Office / Center
11,000
183
128
64
37
Fiber Production Facility
88,000
151
106
53
30
Heavy Manufacturing Facility
40,000
134
94
47
27
High Speed / Volume Lyophilize
133,037
830
581
291
166
Facility
Hospital (3 floors RC frame)
141,000
270
189
94
54
Hotel (7 floors)
600,000
210
147
74
42
Lithographic Line
44,000
148
103
52
30
Livestock / Agricultural
26,000
199
139
70
40
Research Station
Manufacturing Light 32,000
102
72
36
20
Micro Chip / Satellite 163,000
437
306
153
87
Manufacturing Facility
Oral Solid Dosage (OSD)
168,630
495
346
173
99
tablet Facility
Office 5 - 20 Floors
285,000
168
118
59
34
(Shell only – no fit out)
Paper Production (Shell only)
106,000
133
93
47
27
Refrigerated Warehouses
54,000
148
103
52
30
Research Laboratory 2 Floors
62,000
233
163
82
47
(Basic Research)
Research Center Auto / 64,000
216
151
76
43
Jet Engine Testing
Tire Manufacturing Facility
73,000
164
115
57
33
(excludes production equipment)
Warehouse 80% / Office 20% /
84,000
83
58
29
17
Distribution Center
Warehouse (VL) Logistics Center
427,000
80
56
28
16
• The accuracy of the above values indicated in columns A, B, C and D are accurate with a + / - 15% - 20% range.
Copyright © 2017 Compass International, Inc.
262. | SECTION B3
AVERAGE BUILDING COSTS BY PERCENTAGE
BUILDING TYPE: HEAVY MANUFACTURING
BUILDINGS (2012 COST BASIS):
BUILDING SYSTEM
%
AVERAGE $ / SF TOTAL
FOUNDATIONS
3.54%
FLOORS ON GRADE (SOG) 10.24%
SUPERSTRUCTURE
10.12%
ROOFING
4.25%
EXTERIOR WALLS
12.25%
PARTITIONS
0.54%
WALL FINISHES
2.03%
FLOOR FINISHES
4.60%
CEILING FINISHES
2.47%
CONVEYING SYSTEMS
0.00%
SPECIALTIES
0.95%
FIXED EQUIPMENT
11.58%
HVAC
10.23%
PLUMBING
8.77%
ELECTRICAL
18.43%
TOTAL
100.00%
$3.67
$10.63
$10.50
$4.41
$12.71
$0.56
$2.11
$4.77
$2.56
$0.00
$0.99
$12.02
$10.62
$9.10
$19.13
$103.78
GROSS BUILDING SF COST (excludes parking areas / and items outside facility footprint and all
Design / CM fees) Preliminaries / Division 1 costs
are pro-rated against each line item:
25 floors - 200 apartments Major N.E. USA
City (not NY City) – Downtown location – 2007
Cost Basis: 437,690 Total GSF U/G parking for 200
Vehicles
• Upgrades by tenants not included
• 8 units per floor 1,200 – 1,850 SF per unit
• Excludes land purchase
• See chart below
Various all inclusive price lists (Labor &
Material) Unit Prices used for quick OOM budgets
or for checking pricing from a contractor. (Includes
contractors O/H and profit) (To convert SF to M2
multiply by 10.76 – to convert LF to M multiply by
3.28)
• See chart following pages
25 floors - 200 apartments Major N.E. USA City
DOWNTOWN LOCATION
#
CATEGORY / ELEMENT
1
General Conditions / Preliminaries 5.592
(CM staff)
Demolition
0.552
Excavation for basement
0.629
Piling / caissons
1.328
Landscaping / plantings
0.063
Exterior paving
0.168
Concrete structure
19.792
(Concrete frame & P.C. floors)
Structural steel (framing)
0.792
Steel stairs
0.614
Carpentry
0.715
Cabinets / millwork (foyer - lobby) 0.104
Membrane roof 0.527
Roofing pavers etc.
0.021
Roof screen
0.225
Garage doors
0.087
Doors / frames / lobby entrance
2.448
Door furniture
0.187
Caulking
0.153
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Copyright © 2017 Compass International, Inc.
$ COST IN MILLIONS
% OF TOTAL COST
6.99%
0.69%
0.79%
1.66%
0.08%
0.21%
24.74%
0.99%
0.77%
0.89%
0.13%
0.66%
0.03%
0.28%
0.11%
3.06%
0.23%
0.19%
COST PER UNIT
SECTION B3 | 263.
#
CATEGORY / ELEMENT
$ COST IN MILLIONS
% OF TOTAL COST
CONTINUED
19
Windows / Exit doors
3.144
3.93%
20
Internal walls / ceiling
5.835
7.29%
21
Tile work
1.656
2.07%
22
Ceiling treatments
0.350
0.44%
23
Carpet / wood floors
1.170
1.46%
24
Paint
0.908
1.13%
25
Kitchen cabinets
0.901
1.13%
26
Kitchen appliances
0.691
0.86%
27
Misc. louvers 0.105
0.13%
28
Signs
0.057
0.07%
29
Toilet Fixtures
0.487
0.61%
30
Fire Protection 1.313
1.64%
31
Plumbing (incl some fixtures)
5.101
6.38%
32
HVAC
5.311
6.64%
33
Trash chute
0.140
0.17%
34
Blinds / Drapes / WT
0.211
0.26%
35
Mail boxes
0.083
0.10%
36
Washer / dryer venting
0.281
0.35%
37
Elevators (2 #)
1.747
2.18%
38
Electrical 6.427
8.03%
39
Security system / CCTV / 0.351
0.44%
Miscellaneous items Construction Cost
70.266
87.82%
40
Insurance 0.842
1.05%
41
Business Tax
0.275
0.34%
42
Building permits
0.214
0.27%
43
Bonding / Surety / Sub guard
1.175
1.47%
44
CM Fee
2.350
2.94%
Construction Cost + above 5 items 75.122
93.89%
45
A/E Fee (includes MEP & Structural) 4.890
6.11%
Construction Cost A/E fees
80.012
100.00%
Cost per SF
COST PER UNIT
$25,505
$26,555
$32,135
$400,060
$183
Copyright © 2017 Compass International, Inc.
264. | SECTION B3
Labor & Material Unit Prices
USED FOR QUICK OOM BUDGETS OR FOR CHECKING PRICING FROM A CONTRACTOR
CONSTRUCTION CATEGORY
UNIT PRICE
Concrete paving 4” thick
Bituminous paving / parking 4” thick with 4” stone
Fume Hoods excluding HVAC ductwork
Directory Boards 4’ x 3’
Emergency Lighting (nic-cad)
Lawn Sprinkler System
Epoxy Resin Floor
Welded PVC Floor
Epoxy Terrazzo with wainscot
Vinyl Tile Floor
High Pressure Laminated Wall System
Clean Room Demountable Wall Panel
Ceiling Demount / Access Clean room
CCTV system (1 # TV / 2 # Camera’s)
Locker single tier 72” high x 18” wide
Washer Heavy Duty (20 – 30 pound)
Dryer – Gas or Electric Heavy Duty (20 – 30 pound)
Card Reader (250 Cards)
Smoke Detector
Fume Hood / with ductwork
Dock Levelers 6’ x 8’
Ditto 8’ x 8’
$3.60 / $5.50 SF
$19.65 / $30.50 SY
$920 - $2,300 each
$740 - $1,500 each
$600 - $960 each
$1.12 SF
$6.66 SF
$7.00 SF
$15.40 SF
$3.75 SF
$31.85 SF
$45.85 SF
$25.15 SF
$4,835 EACH
$228 EACH
$1,410 EACH
$1,825 EACH
$2,725 EACH
$220 EACH
$1,090 - $2,300 / LF
$5,100 EACH
$6,025 EACH
Copyright © 2017 Compass International, Inc.
SECTION B4
Unit Price Estimating
Data / Information
T
he following listing of unit prices are
focused on process / manufacturing CAPEX projects ranging in cost from $0.50
to $100 + million. These unit costs are for
new construction, it should be noted that alteration /
revamp / major renovation construction work could
cost between 10% and 50% more than the values
indicated in the nine listings. These unit prices are
2017 values (calibrated to mid point of year) they
are based on historical data of projects completed
in North America and have been adjusted to reflect
pricing within the Washington DC beltway (25 - 40
mile radius). A hybrid of Union / Non-union pay
scales have been used in determining labor / installation values: (The labor cost value includes a value
for construction / rental equipment, i.e., 6.50%, this
is for cranes, welding machines and similar types
of equipment required to complete each individual
task). The units include supervision, plus a profit
margin of 10%. (A percentage of between 7 % –
11% - suggest 8.5% should be added to the values
indicated to capture site establishment (Division 1
/ Preliminaries) costs for such items as scaffolding,
trailers, testing, temporary warehousing and testing
etc:
GENERAL CONVERSION VALUES IMPERIAL TO METRIC UNITS
• 1 Acre = 4,047 M2
• 1 Foot = 30.48 Centimeters
• 1 Foot = 0.3048 Meters
• 1 Meter = 39.37 inches
• 1 Meter = 1.094 Yards
• 1 Cubic Yard = 0.765 M3:
• 1 M3 = 1.31 Cubic Yards:
• 1 M = 3.28 Lineal Feet:
• 1 M2 = 10.76 Square Feet:
• 1 Hectare = 2.471 Acres
• 1 Kilogram = 2.205 Pounds
• 1 Gallon = 3,785 Cubic Centimeters
• 1 Imperial Gallon = 1.20095 US Gallons
• 1 Liter = 0.264 Gallons
• 1 Square Foot = 0.0929 M2
• 1 Mile = 1.609 Kilometers
• 1 Square Kilometer = 247 Acres
• 1 Square Yard = 0.836 M2
• 1 Yard = 0.9144 M
Copyright © 2017 Compass International, Inc.
266. | SECTION B4
Table 1
CSI DIVISION 1 / GENERAL CONDITIONS & DEMOLITION WORK
#
DESCRIPTION
1
2
3
4
5
Superintendent
Month
Field Engineer
Month
Foreman
Month
Timekeeper / Clerk
Month
Planner / Cost Engineer / Month
Office Administrator
Safety Engineer
Month
Warehouse Supervisor
Month
Secretary
Month
Demolition, fencing chain link 8’ to 12’high
LF
Tipping Fee’s General Construction Material
TON
Demolition, frame building, one story
SF
Demolition, frame building, two story
SF
Demolition, frame building, three story
SF
Demolition, concrete block building, SF
two story
Demolition, concrete building, pre cast panel,
SF
3.96
frame roof
Demolition, steel frame building, SF
3.71
salvage steel
Demolition, remove wall, concrete to
SF
4.14
10” thick reinforced
Demolition, remove wall, concrete block, SF
2.36 reinforced
Demolition, remove wall, 8” solid brick,
SF
1.55
reinforced, grout
Demolition, remove built-up roof, SQ
2.85
on plywood
Demolition, remove built-up roof, on concrete
SQ
2.85 Demolition, remove ceiling, plaster/
SF
0.08
lath / frame
Demolition, remove ceiling, acoustic suspended grid SF
0.11
Demolition, remove concrete foundation,
CY
74.23
plain concrete no rebar
Demolition, remove concrete foundation, with rebar CY
81.65
Demolition, remove pavement, asphalt / SF
0.32
concrete, short haul, 20,000 to 50,000 SF
Demolition, remove pavement, asphalt /
SF
0.14
concrete, short haul, over 50,000 SF
Demolition, remove pavement, concrete slab,
SF
0.86
6” thick, with rebar
Demolition, remove pavement, 4” thick
SF
0.70
concrete sidewalk
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
8,482
7,423
6,375
3,351
8,073
8,482
7,423
6,375
3,351
8,073
6,100
4,239
3,147
2.59
81.21
3.12
2.50
2.77
7.37
6,100
4,239
3,147
2.59
81.21
3.12
2.50
2.77
7.37
7.92
11.88
13.93
17.64
4.16
8.30
2.99 5.35
10.57
12.13
57.85
60.69
55.98 2.12
58.83
2.20
0.62
73.39
0.73
147.62
99.50
0.16
181.15
0.48
0.07 0.20
0.87
1.73
1.03
1.73
SECTION B4 | 267.
#
DESCRIPTION
CONTINUED
30
Demolition, remove pavement, concrete catch basin, sump and dry well
31
Demolition, remove hydrant, with reset thrust blocks
32
Demolition, remove 4” dia, storm drain line, dispose
33
Demolition, remove 4” dia, sanitary line, dispose
34
Demolition, Transformer, dry type, 50 KVA
35
Demolition, structural steel 36
Demolition, Mechanical equipment
37
Demolition, C S Pipe 2” and below
38
Demolition, C S Pipe 2” - 6”
39
Drilling & blasting under 1,000 CY
40
Drilling & blasting under 2,500 CY
41
Drilling & blasting under 5,000 CY
42
Soil & waste remediation / removal
43
Onsite encapsulation
44
C.S. 2,500 gallon & remove piping & backfill
45
Ditto 5,000
46
Ditto 10,000
47
Office Trailer 8’ x 20’
48
Mob / De-mobilize
49
Office Trailer 10’ x 48’
50
Mob / De-mobilize
51
Air Compressor 250 CFM Diesel
52
Ditto 750 CFM
53
Backhoe (JCB)
54
Concrete trowel machine 36” dia
55
Crane Tower 200’ high 125’ Radius
10,000 lift
56
Gunite / concrete pumping skid 20 CY / Hour
57
Concrete Pump (truck mounted)
Putzmeister 115 CY / hour
58
Ditto 200 CY / Hour
59
Hydra crane Terex 15 Ton
60
Ditto 30 Ton
61
Ditto 60 Ton
62
Ditto 100 ton (Grove)
63
Ditto 150 ton 64
Gradall 0.5 CY
65
Ditto 1.25 CY
66
Trencher Chain 15” 67
Ready mix concrete truck 10 CY / 7.5 M3
68
Ditto 12 CY / 9 M3
UNIT
MATERIAL
LABOR
TOTAL
EACH
168.90
211.56
380.47
EACH
192.63
446.94
639.57
LF
5.66
6.70
12.37
LF
5.66
7.29
12.95
EACH
74.09
TON
TON
LF
LF
CY
4.44
CY
4.05
CY
3.65
CY
1.68
CY
10.25
Ea
1,039.16
321.34
595.59
893.39
14.89
24.83
9.37
7.60
6.58
9.69
19.52
1,682.69
395.43
595.59
893.39
14.89
24.83
13.81
11.65
10.23
11.37
29.77
2,721.85
Ea
1,295.58
Ea
1,646.48
MONTH
L / S
MONTH
L / S
Day
Day
Day
Day
Day
3,039.72
5,020.95
329.22 653.59 444.26 1,057.72
161.12
264.63
246.97 100.42
1,000.11
4,335.30
6,667.43
329.22
653.59
444.26
1,057.72
161.12
264.63
246.97
100.42
1,000.11
Day
448.52
448.52
Hour
116.02
116.02
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
137.78
89.66
100.46
123.19
288.25
386.32
70.56
121.99
14.36
98.08
109.18
137.78
89.66
100.46
123.19
288.25
386.32
70.56
121.99
14.36
98.08
109.18
Copyright © 2017 Compass International, Inc.
268. | SECTION B4
#
DESCRIPTION
CONTINUED
69
Ditto 14 CY / 11 M3
70
Bulldozer 50 kw
71
Ditto 75 kw
72
Ditto 100 kw
73
Dump truck 65 T
74
Dozer 150 HP
75
F.E. loader 2.5 CY
76
Truck P.U. 0.50 Ton
77
Ditto 1.50 Ton
78
Ditto Dump 15 Ton
79
Forklift 3,000 pound 12’ lift
80
Roller Tandem 36” wide
81
Welding machine diesel 250 Amps
82
Bobcat skid steer loader
83
Hydraulic hammers 780 Case rubber tire
84
Hydraulic crane, truck mounted 10 T
with outriggers
85
Ditto 15 T
86
Ditto 25 T
87
Ditto 50 T
88
Ditto 75 T
89
Concrete finisher, gas 750 mm diameter
90
Ditto 1.00 M diameter
91
Hoist, electric- attached to building
50’ high 1,500 pounds capacity
92
Ditto 100’ 2,000 pounds
93
Ditto 150’ 5,000 pounds
94
Demolition of plain concrete 75 mm
thick at grade
95
Demolition of plain concrete 100 mm
thick ditto
96
Demolition of plain concrete 150 mm
thick ditto
97
Demolition of reinf, concrete 75 mm
thick ditto
98
Demolition of reinf, concrete 100 mm
thick ditto
99
Demolition of reinf, concrete 150 mm
thick ditto
100
Demolition of reinf, concrete 150 mm
thick suspended floor
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
Hour
Day
Day
Day
Day
Day
Day
Day
Day
Day
Day
Day
Day
Day
Day
Day
124.34
541.09
578.41
727.68
1,572.11
834.58
400.31
125.65
175.06
495.32
216.57
162.84
124.83
273.66
689.89
653.05
124.34
541.09
578.41
727.68
1,572.11
834.58
400.31
125.65
175.06
495.32
216.57
162.84
124.83
273.66
689.89
653.05
Day
Day
Day
Day
Day
Day
Day
733.90
851.60
914.26
1,038.66
95.78
129.90
627.92
733.90
851.60
914.26
1,038.66
95.78
129.90
627.92
Day
Day
M2
6.16 897.04
1,500.58
7.81
897.04
1,500.58
13.98
M2
8.04
9.61
17.65
M2
11.30
11.69
22.99
M2
11.76
14.80
26.56
M2
14.39
18.34
32.73
M2
17.85
22.34
40.19
M2
13.66
14.07
27.73
SECTION B4 | 269.
Table 2
CSI DIVISION 2 / SITE CONSTRUCTION WORK
#
DESCRIPTION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Clear & grub, brush and disposal
SF
0.16
Strip and stockpile 6” deep
CY
2.52
Rough grade machine
SF
0.07
Fine grade machine
SF
0.08
6” diameter 15’ high
Each
27.13
8” diameter 20’ high
Each
33.93
10” diameter 25’ high
Each
47.49
12” diameter 30’ high
Each
61.07
24” diameter 50’ high
Each
74.64
N/E 100,000 CY By Pan or FE. Loader (in spoil heaps) CY
N/E 250,000 CY ditto
CY
N/E 500,000 CY ditto
CY
Disposal of excavation n/e 2.5 miles
CY
0.61
Site, cut and fill, earth. CY
3.50
Engineered fill, imported one mile
CY
22.35
Engineered fill, imported two mile
CY
25.31
Engineered fill, imported three mile
CY
28.29
Engineered fill, compaction, by roller
CY
1.12
Engineered fill, compaction, by sheep’s foot
CY
1.46
Engineered fill, dozer spread, no material
CY
0.84
Backfill, machine, no compaction
CY
4.93
Backfill, hand, no compaction
CY
8.57
Pavement, asphalt, driveway, 2” thick, 4” base
SF
1.32
Pavement, asphalt, parking lot, 2” thick, 6” base
SF
1.63
Pavement, asphalt, street, 3” thick, 8” base,
SF
2.51
10 sub-base
Add or deduct for each additional 1” of base rock
SF
0.18
Add or deduct for each additional 1” of SF
0.63
asphalt / concrete
Pavement, concrete, driveway, 2” thick, 4” base
SF
2.00
Pavement, concrete, truck & ramp, 3” thick, 8” base SF
2.84
Bumper block, parking, pre cast, 3’ long
EACH
24.89
Curb and gutter, 4’ sidewalk, mono
LF
29.06
Brick paving, sand bed, 1” compact
SF
3.43
Underground service, concrete encased, 100 Amp, LF
24.50 600 V, 4-THHN #2 copper wire, grounded
Underground service, concrete encased, LF
54.43
400 Amp, 600 V, 3-500MCM copper wire, grounded
Underground service, fiber conduit, 300 Amp, 600 V, LF
37.72 4-THHN 350 MCM copper wire, grounded
Underground service, rigid steel conduit, 100 Amp, LF
22.66
600 V, 4-THHN #2 copper wire
Utility pole, with transformer, 250 KVA
EACH
23,462.17
Utility pole, with transformer, 100 KVA,
EACH
8,118.65
26
27
28
29
30
31
32
33
34
35
36
37
38
UNIT
MATERIAL
LABOR
TOTAL
0.18
1.68
0.08
0.27
170.91
259.78
389.69
546.93
799.87
1.71
1.39
1.12
3.21
2.47
1.49
1.49
1.49
1.27
1.54
0.74
12.49
21.16
1.65
1.89
3.55
0.34
4.19
0.15
0.35
198.05
293.72
437.18
608.00
874.51
1.71
1.39
1.12
3.82
5.97
23.84
26.80
29.78
2.39
3.00
1.57
17.42
29.74
2.97
3.52
6.05
-
0.18
0.63
2.77
4.07
16.89 12.36
5.73
10.74
4.78
6.90
41.78
41.42
9.16
35.25
18.02
72.45
23.43
61.15
20.56
43.22
10,933.21
8,641.00
34,395.37
16,759.66
Copyright © 2017 Compass International, Inc.
270. | SECTION B4
#
DESCRIPTION
UNIT
CONTINUED
39
Site drainage, under drain, 4” pvc pipe
LF
40
Site drainage, under drain, 6” pvc pipe
LF
41
Site drainage, under drain, 10” pvc pipe
LF
42
Sanitary sewer, cast iron pipe, 4” diameter
LF
43
Sanitary sewer, cast iron pipe, 6” diameter
LF
44
Sanitary sewer, cast iron pipe, 10 “ diameter
LF
45
Storm drainage, reinforced concrete pipe, 12” dia.
LF
46
Storm drainage, reinforced concrete pipe, 15” dia.
LF
47
Storm drainage, reinforced concrete pipe, 18” dia.
LF
48
Storm drainage, reinforced concrete pipe, 36” dia.
LF
49
Storm drainage, corrugated metal pipe, 8” diameter LF
50
Storm drainage, corrugated metal pipe, 15” diameter LF
51
Sanitary sewer, PVC pipe, 4” diameter
LF
52
Sanitary sewer, PVC pipe, 8” diameter
LF
53
Sanitary sewer, PVC pipe, 12” diameter
LF
54
Water service, copper pipe, 2” diameter
LF
55
Water service, copper pipe, 3” diameter
LF
56
Water service, copper pipe, 4” diameter
LF
57
Water service, PVC MUNI C900, 4” diameter
LF
58
Water service, PVC MUNI C900, 6” diameter
LF
59
Water service, ductile iron pipe, 4” diameter
LF
60
Water service, ductile iron pipe, 6” diameter
LF
61
Gas/ Steam service, black steel pipe, wrapped,
LF
1” diameter
62
Gas/ Steam service, black steel pipe, wrapped,
LF
2” diameter
63
Catch basin, with grate, 2’X 2’ X 4’
EACH
64
Manhole, with lid 4’ diameter X 6’-8’ deep
EACH
65
Fuel storage tank, underground, 1000 gallon
EACH
66
Hand excavation loose material
CY
67
Ditto medium material CY
68
Ditto hard material
CY
69
Hand backfilling
CY
70
Underpinning foundation by hand
CY
71
Site lighting, underground wire, 30’ pole, EACH
mercury vapor, 175 watt.
72
Light pole, steel. 25’ high, 1 arm bracket
EACH
73
Light pole, steel, 30’ high, 1 arm bracket
EACH
74
Light pole, aluminum, 25’ high, 1 arm bracket
EACH
75
Light pole, aluminum, 30’ high, 1 arm bracket
EACH
76
Ground Rod / Copper Spike EACH
77
Lightning Arrestor Pole mounted
EACH
78
Area N/E 50,000 SF
SF
79
Area N/E 150,000 SF
SF
80
Hydro seeding Area N/E 250,000 SF
SF
81
Track work 4’8”
LF
82
Stone / Ballast
CY
Copyright © 2017 Compass International, Inc.
MATERIAL
LABOR
TOTAL
10.92
12.21
14.60
16.49
28.63
72.11 23.08
33.22
39.88
117.68
11.17
14.19
5.81
8.57
16.99
15.36
33.05
47.07
14.72
17.59
32.60
40.98
8.61
25.50
26.43
27.91
18.43
25.13
31.05
27.01
31.98
39.66
67.71
17.95
23.64
21.59
24.27
148.29
18.56
21.38
19.89 15.24
16.89
21.28
28.51
16.29
36.41
38.64
42.51
34.92
53.76
103.16
50.09
65.20
79.54
185.39
29.12
37.83
27.40
32.84
165.29
33.92
54.43
66.96
29.95
34.48
53.88
69.49
24.89
21.15
20.68
41.83
737.38
1,653.53
13,903.77
6.11
6.11
6.11
3.40
13.57
1,638.61
747.23
1,025.47
920.20
37.09
50.83
61.82 22.02
309.08
2,424.72
1,484.60
2,679.00
14,823.96
43.21
56.94
67.93
25.42
322.65
4,063.33
1,204.88
1,606.51
1,212.17
1,913.20
24.47 34.74 0.07
0.03
0.05
37.72
20.00 946.20
1,212.34
1,020.13
1,241.90
60.29
150.73
0.28
0.27
0.23 58.37
13.04
2,151.08
2,818.85
2,232.30
3,155.10
84.76
185.48
0.35
0.30
0.28
96.09
33.05
SECTION B4 | 271.
#
DESCRIPTION
CONTINUED
83
Excavate by m/c to reduced levels n/e 1 m &
deposit on site
84
Ditto & remove from site n/e 5 miles
85
Excavate by m/c to reduced levels n/e 5 m
& deposit on site
86
Ditto & remove from site n/e 5 miles
87
Excavate by m/c for trench n/e 500 mm &
n/e 1.5 M deep & deposit on site
88
Excavate by m/c for trench n/e 500 mm & n/e
1.5 M deep & remove from site n/e 5 miles
89
Extra over excavation for breaking out rock &
removal from site
90
Ditto plain concrete
91
Ditto reinforced concrete
92
Ditto masonry (brick & block work)
93
Compact excavated material to 95% on site in
150 mm layers
94
Imported fill (sand) to 95% on site in 150 mm layers
95
Ditto crushed stone n/e 50 mm ditto
96
Ditto hardcore / demolished brick & block work ditto
97
Bitumen paving 75 mm top course on 100 mm
crusher run (excludes excavation)
98
Ditto on 150 mm crusher run (excludes excavation)
99
Ditto 100 mm top course on 200 mm crusher run
(excludes excavation)
100
Concrete 100 mm thick reinforced with fabric on
100 mm crusher run (excludes excavation)
101
Ditto 150 mm on 150 mm ditto
UNIT
MATERIAL
LABOR
TOTAL
M3
6.31
11.60
17.90
M3
M3
6.51
7.70 22.97
11.62
29.48
19.32
M3
M3
7.80
7.34
23.38
14.06
31.19
21.39
M3
7.60
24.79
32.39
M3
9.61
15.55
25.16
M3
M3
M3
M3
9.85
14.52
11.02
5.87
12.94
15.21
11.10
16.80
22.79
29.74
22.12
22.67
M3
M3
M3
M2
22.91
24.34
11.30
28.08
22.02
23.46
12.55
8.24
44.93
47.80
23.84
36.32
M2
M2
33.10
34.65
9.02 10.80
42.12
45.45
M2
38.21
6.22 44.43
M
43.57
8.29
51.86
Copyright © 2017 Compass International, Inc.
272. | SECTION B4
Table 3
CSI DIVISION 2 & 3 FOUNDATIONS / U.G. WORK
#
DESCRIPTION
1
2
3
Compaction of excavated material
CY
Ditto to 95%
CY
Excavate trench 3’ wide n/e 5’ deep and
CY
backfill (includes P & S)
Excavate trench 4’ wide n/e 10’ deep and
CY
backfill (includes P & S)
Excavate trench 5’ wide n/e 15’ deep and
CY
backfill (includes P & S)
Piles, pre cast concrete, square 10”
LF
Piles, pre cast concrete, square 12”
LF
Piles, pre cast concrete, square 18”
LF
Piles, steel H section, 10”
LF
Piles, pipe, 12”, concrete filled
LF
Piles, wood, untreated to 40’
LF
12” diameter x 10’ long with rebar, no casing
EACH
18” diameter x 20’ long with rebar, no casing
EACH
24” diameter x 30’ long with rebar, no casing
EACH
36” diameter x 40’ long with rebar, no casing
EACH
48” diameter x 50’ long with rebar, no casing
EACH
3” Bit paving on 6” crusher run 16’ wide
LF
4” ditto 24’ wide
LF
Planking & Strutting to trench
SF
Sheet piling (20 uses)
SF
Sheet piling (Left in place)
SF
Reinforced concrete foundations, including
EACH
excavation by machine, b/f, concrete, rebar
and formwork, 3,000 psi. 2’ x 2’ x 1’ Ditto 3’ x 3’ x 2’ including excavation by machine,
EACH
b/f, concrete, rebar and formwork, 3,000 psi.
Ditto 3’ x 3’ x 3’ including excavation by machine,
EACH
b/f, concrete, rebar and formwork, 3,000 psi.
Ditto 4’ x 4’ x 2’ including excavation by machine,
EACH
b/f, concrete, rebar and formwork, 3,000 psi.
Ditto 5’ x 5’ x 2’ including excavation by machine,
EACH
b/f, concrete, rebar and formwork, 3,000 psi.
Ditto 6’ x 6’ x 2’ including excavation by machine,
EACH
b/f, concrete, rebar and formwork, 3,000 psi.
Ditto 8’ x 8’ x 3’ including excavation by machine,
EACH
b/f, concrete, rebar and formwork, 3,000 psi.
Ditto 10’ x 10’ x 3’
EACH
Foundation, underpinning, 5’ deep, LF
(machine excavation – tremi - hand packed concrete
Foundation, underpinning, 10’ deep, (machine
LF
excavation – tremi - hand packed concrete
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
1.78
3.49
4.89
3.05
3.72
10.68
4.83 7.21 15.58
6.58
11.79
18.37
7.91
13.29
21.20
17.42
20.65
21.13
42.07
18.58
7.87
102.83
253.66
664.96 2,221.08
4,387.31
50.72
65.81
0.75
1.10 19.74
44.73
16.90
18.64
18.33
21.12
21.16
14.02
251.76
578.35
972.97
1,932.32
3,293.12
53.06
84.36
1.62
2.38
7.15
30.02 34.32 39.28 39.45 63.19 39.73 21.89 354.59 832.00 1,637.93
4,153.40
7,680.43
103.79 150.17 2.38 3.48 26.89 74.75
188.84
125.10
313.94
283.27
187.65
470.91
332.96
225.17
558.13
526.77
350.39
877.16
944.21
625.48
1,569.70
2,012.67
1,336.12
3,348.79
2,683.56
308.47
1,801.40
401.44
4,484.96
709.91
418.17
496.70
914.87
SECTION B4 | 273.
#
DESCRIPTION
CONTINUED
32
Concrete 3,000 PSI reinforced in 4” thick wall
above and below grade
33
Concrete 3,000 PSI reinforced in 6” thick wall
above and below grade
34
Concrete 3,000 PSI reinforced in 8” thick wall
above and below grade
35
Concrete 3,000 PSI reinforced in 10” thick wall
above and below grade
36
Concrete 3,000 PSI reinforced in 12”thick wall
above and below grade
37
8” CMU wall (with reinforcing wire and doweled
to foundation in 1- 3 struck joint)
38
10” CMU wall ditto
39
12” CMU wall ditto
40
Bituminous paint rolled on in 2 applications
41
Waterproofing, hot bitumen coatings,
vertical surfaces, walls, per coat
42
Waterproofing, hot coating, vertical surfaces,
hot mop, 30# felt, 2 ply
43
Waterproofing, cold application, verticals, waterproof, 1/16” neoprene sheet
44
Waterproofing, emulsion, verticals, waterproof,
asphalt paint, brush/coat
45
Waterproofing, emulsion, vertical, waterproof,
silicone, spray, 2 coat finish
46
Under drain, corrugated polyethylene pipe, perforated, 3” diameter
47
Under drain, corrugated polyethylene pipe, perforated, 4” diameter
48
Under drain, corrugated polyethylene pipe, perforated, 6” diameter
49
Under drain, corrugated polyethylene pipe,
perforated, 12” diameter
50
Slab on grade, reinforced concrete, 4” thick
51
Slab on grade, reinforced concrete, 5” thick
52
Slab on grade, reinforced concrete, 6” thick
53
Slab on grade, reinforced concrete, 8” thick
54
Slab on grade, reinforced concrete, 10” thick
55
Slab on grade, reinforced concrete, 12” thick
56
Topping concrete on existing SOG
57
Slab topping / screed 1”
58
Ditto 2”
59
Reinforced concrete 3000 psi 20 mm aggregate
in foundations
60
Ditto in ground beams
61
Ditto in isolated foundations
UNIT
MATERIAL
LABOR
TOTAL
SF
7.51
4.71
12.22
SF
9.24
5.51
14.75
SF
10.21
6.22
16.42
SF
11.57
7.88
19.45
SF
12.41
8.90
21.31
SF
5.62
5.38
11.00
SF
SF
SF
SF
7.16
8.64
0.25
0.14
6.54
7.55
1.38
1.15
13.69 16.19 1.63 1.29
SF
0.42
1.55
1.98
SF
1.15
1.69 2.85
SF
0.21
0.54
0.75
SF
0.37
0.46
0.83
LF
0.43
8.47
8.91
LF
0.74
8.83
9.57
LF
1.38
9.25
10.64
LF
6.73
10.06
16.79
SF
SF
SF
SF
SF
SF
SF
SF
SF
M3
2.26 2.35 2.84
4.02
4.79
5.10
1.79
1.58
1.98
98.55
2.72
2.75 2.85 5.39
5.88
6.37
1.95
0.75
0.87
71.54
4.98 5.11 5.69 9.41 10.67 11.46 3.74 2.33 2.85 170.09
M3
M3
98.22
98.22
79.44
78.01
177.66 176.23
Copyright © 2017 Compass International, Inc.
274. | SECTION B4
#
DESCRIPTION
CONTINUED
62
Ditto in slab on grade 150 mm thick excludes
excavation and stone sub base
63
Ditto in elevated slab 150 mm thick
64
Ditto in walls n/e 250 mm thick
65
Ditto in columns aver 300 x 300 mm
66
Ditto in staircases
67
Formwork to foundations n/e 1.5 M high
(based on 5 uses)
68
Formwork to soffits / u/s of elevated slabs n/e 5 M
high above FFL (based on 5 uses)
69
Formwork to walls, beams & columns
(based on 5 uses)
70
Fabric / mesh reinforcement 3 kg / M2
71
Fabricate & install 10 mm dia steel rebar 72
Fabricate & install 25 mm dia steel rebar
73
All-in rate for reinforced concrete including
concrete, rebar and formwork minimum
(excludes excavation)
74
Ditto maximum
UNIT
MATERIAL
LABOR
TOTAL
M3
94.51
70.18
164.69
M3
M3
M3
M3
M2
101.43
101.89
108.99
114.55
7.51
84.29
85.84
90.90
114.20
35.66
185.73 187.73 199.89 228.74 43.17
M2
8.94
38.12
47.06
M2
10.37
43.96
54.33
M2
T
T
M3
2.29
754.00 736.82
2.04 604.65
433.75
338.52 4.32 1,358.65
1,170.57
338.52
M3
1,244.70
1,244.70
Table 4
CSI DIVISION 3, 4 & 5 STRUCTURAL ELEMENTS / WALLS / FLOORS
STRUCTURAL STEEL FRAMING (100 – 1,000 TON)
#
DESCRIPTION
UNIT
MATERIAL
LABOR
TOTAL
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Offices 1 – 3 floors
Factory / Manufacturing Facility
Hi-Rise Building 5 – 10 floors
3” metal decking ribbed 20 g
Ditto 18 g
Ditto 16 g
10” L B wall
Ditto 12”
Ditto 14”
Flat 4” thick (PCCWS)
Ditto 6” (PCCWS)
Ditto 8” (PCCWS)
Exposed aggregate face 4” thick (PCCWS)
Ditto 6” (PCCWS)
Ditto 8” (PCCWS)
Ribbed finish 4” thick (PCCWS)
Ditto 6” (PCCWS)
Ditto 8” (PCCWS)
Concrete reinforced (Tilt up wall panels) 4” thick
Ton
Ton
Ton
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
2,603.14
2,603.14
2,603.14
8.76
10.23
11.60
6.79
7.42
9.21
7.23
9.21
16.21
9.47
10.95
14.65
16.66 19.15
24.71
3.97
550.91
550.91
688.64
1.62
1.75
1.84
7.41
8.19
10.36
5.96
6.35
7.70
5.93
6.19
7.50
6.33 6.60
8.19 6.42
3,154.05
3,154.05
3,291.78
10.38
11.98
13.44
14.20
15.61
19.57
13.20
15.56
23.91
15.40
17.14
22.16
22.98
25.75
32.90
10.39
Copyright © 2017 Compass International, Inc.
SECTION B4 | 275.
#
DESCRIPTION
CONTINUED
20
Ditto 6” thick
21
Ribbed Concrete block wall in 1-3 Cement mortar 8” wide
22
Ditto 10” wide
23
6” thick
24
8” thick
25
Concrete Column, cast in place, round, 12” diameter
26
Concrete Column, cast in place, round, 14” diameter
27
Concrete Column, cast in place, round, 18” diameter
28
Concrete Column, cast in place, square, 10”X10”
29
Concrete Column, cast in place, square, 12”X12”
30
Column, Pre cast concrete, 12”X12”
31
Column, Pre cast concrete, 14”X14”
32
Column, Pre cast concrete, 16”X16”
33
Steel column, wide flange, W6x20#
34
Steel column, wide flange, W8x24#
35
Steel column, wide flange, W10x45#
36
Steel column, wide flange, W12x72#
37
Steel column, pipe, 3” diameter
38
Steel column, pipe 4” diameter
39
Steel column, pipe, concrete filled, 3” diameter 40
Steel column, pipe, concrete filled, 4” diameter
41
Steel column, square tube, 6”
42
Steel column, square tube, concrete filled, 6”
43
Wood column, 4”x4” post
44
Wood column, 6”x6” post
45
Wood column, 8”x8” post
46
Wood column, 12”x12” post
47
Concrete beams & girders, cast in place, 12”x24”
48
Concrete beams & girders, cast in place, 18”x24”
49
Concrete beams & girders, pre cast, rectangular, 12”x24”
50
Concrete beams & girders, pre cast, rectangular, 18”x24”
51
Concrete beams & girders, pre cast, inverted tee, 12”x24”
52
Steel beams & girders, wide flange, W6x20#
53
Steel beams & girders, wide flange, W10x45#
54
Steel beams & girders, wide flange, W12x72#
55
Wood beams & girder, 4”x4”
56
Wood beams & girder, 4”x4”
57
Wood beams & girder, 4”x4”
58
Wood beams & girder, 4”x4”
59
Floor, cast in place, slab, one way beams, with topping,
6” thick
60
Floor, cast in place, slab, one way beams, with topping,
8” thick
61
Floor, cast in place, slab, two way beams, with topping,
6” thick
62
Floor, cast in place, slab, two way beams, with topping,
10” thick
UNIT
MATERIAL
LABOR
TOTAL
SF
SF
SF
SF
SF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
SF
5.21
8.67
9.64
16.54
17.90
30.77
37.04
48.73
18.58
23.94
72.33
101.55
119.55
24.93
28.04
44.84
78.63
19.36
23.73
20.09
24.24
33.86
34.89
3.16 6.42
12.62
26.01
43.86
62.98
53.62 81.80
62.38
20.49 33.59
53.78
3.02
6.05 10.72 24.28
6.33
7.37
9.90
11.78 17.20 18.99
31.88
33.31
44.97
122.49
138.39
12.90 16.95 20.93
10.94
12.54
17.85
26.70
9.27
11.02
9.76 12.09
11.42
12.16
7.34
16.12
19.52
43.40 159.72
223.06
8.51
13.82
10.27
9.43
16.32 26.15
6.73 11.46
19.10
43.24
9.49
12.57
18.57
21.43
33.75
36.89
62.65
70.35
93.70
141.07
162.34
85.24
118.51
140.48
35.86
40.58
62.69
105.33
28.62
34.74
29.85
36.33
45.28
47.05
10.50
22.54
32.13
69.42
203.58
286.03
62.13
95.61
72.65
29.91
49.91
79.93
9.75
17.51
29.82
67.52
15.82
SF
8.69
12.90
21.60
SF
7.85
11.67 19.52
SF
12.87
18.91
31.78
Copyright © 2017 Compass International, Inc.
276. | SECTION B4
#
DESCRIPTION
UNIT
CONTINUED
63
Floor, cast in place, slab, on metal form, topping, 6” thick
SF
64
Floor, cast in place, slab, on metal form, topping, 8” thick
SF
65
Floor, cast in place, waffle slab, 20” square pan, 4-1/2” thick, SF
6”x12” joist
66
Floor, pre cast concrete, single tees, with topping
SF
67
Floor, pre cast concrete, plank, with topping, 6” solid
SF
68
Floor, pre cast concrete, hollow plank, with topping, 6” thick SF
69
Floor, pre cast concrete, hollow plank, with topping, 10” thick SF
70
Floor, concrete on metal deck, open web steel joists,
SF
40 PSF load
71
Floor, concrete on metal deck, open web steel joists, SF
125 PSF load
72
Floor, concrete slab, steel beam and deck, 125 PSF load
SF
73
Floor, wood, plywood, 2”x6” joists 16” OC
SF
74
Floor, wood, plywood, 2”x12” joists 16” OC
SF
75
Roof, metal deck, open web steel joists, 20’ span
SF
76
Roof, metal deck, open web steel joists, 40’ span
SF
77
Roof, plywood, 2”x6” wood rafters 24” OC flat
SF
78
Roof, plywood, 2”x6” wood rafters 24” OC sloping
SF
79
Elastomeric membrane on insulation (excludes insulation)
SF
80
Corrugated galvanized metal 20 g
SF
81
3 layer built up roof on insulated sloping roof
SF
82
3 layer built up roof on lightweight concrete sloping roof
SF
83
Monolithic topping, 1/4”
SF
84
Monolithic topping, 1/2”
SF
85
Hardener, chemical
SF
86
Hardener, iron floor base
SF
87
Fireproofing, columns, sprayed fiber, 1-1/4”, no finish
SYCA
88
Fireproof, metal deck, sprayed fiber, ¼”, no finish
SYCA
89
Fireproof, columns, 1 hour, furring, lath & plaster, painted
LF
90
Fireproof, columns, 2 hour, furring, lath & plaster, painted
LF
91
Color additives to concrete slabs
SF
92
Epoxy Hardener / Urethane
SF
93
Acid wash and paint floor
SF
94
Non shrink grout
CF
95
Concrete Wall, cast in place, cut & patch, 8’ high, 6” thick
SF
96
Concrete Wall, cast in place, cut & patch, 8’ high, 10” thick
SF
97
Concrete Wall, cast in place, cut & patch, 12’ high, 6” thick
SF
98
Concrete Wall, cast in place, cut & patch, 12’ high, 12” thick SF
99
Finish Add, one side, concrete wall, cast in place,
SF
sandblast, light
100
Finish Add, one side, concrete wall, cast in place, SF
sandblast, heavy
101
Finish Add, one side, concrete wall, cast in place,
SF
bush hammer, heavy
102
Tilt-up, concrete wall, with pilasters, 6” thick
SF
103
Pre cast concrete panel, single form
SF
Copyright © 2017 Compass International, Inc.
MATERIAL
LABOR
TOTAL
5.87
7.66
9.50
8.73
11.45
13.84
14.60
19.12
23.34
10.88
6.04
5.93
6.77
6.50
5.23
2.93
2.68
3.40
3.82
16.11
8.97
8.60
10.17
10.32
8.67
4.78
13.45
13.62
2.51
3.78
3.28
5.34 1.89
2.06
1.60
2.29
2.04
2.15
0.14
0.56
0.31
0.37
12.13
8.67
29.29
32.42
0.07 0.05 0.18 6.07
6.96
9.80
8.33
12.86
0.23
6.75
2.51 3.72
1.33
1.90 5.04 5.38 1.70 2.41
2.15
2.30 1.65
1.59
0.08
0.56
24.68
15.92
68.50 79.77
0.70
0.29
0.54
25.61
16.47
18.99
17.27
19.50
1.22
20.37
5.01
7.49
4.61
7.24
6.93
7.44
3.31
4.70
4.19
4.45
1.78
2.15
0.39
0.93
36.81
24.59
97.79
112.19
0.77
0.33
0.72
31.68
23.43
28.80
25.60
32.36
1.44
0.61
1.96
2.57
2.43 4.16
6.59
5.15 19.20
8.49
10.31
13.64
29.50
SECTION B4 | 277.
#
DESCRIPTION
CONTINUED
104
Concrete Block, 8”x16”, reinforced, 4” thick
105
Concrete block, 8”x 16”, reinforced, 8” thick
106
Concrete block, 8”x 16”, reinforced, 12” thick
107
Concrete Block, 8”x16”, reinforced, filled 4” thick
108
Concrete Block, 8”x16”, reinforced, filled, 8” thick
109
Concrete block, split face, reinforced, filled, 8”x4”x16”
110
Concrete block, Glazed one side, reinforced, filled 4”x4”x16”
111
Brick veneer, 4” standard, 4”x8”x16” block back-up
112
Brick veneer, 4” modular, 4”x8”x16” block back-up
113
Brick veneer, 4”x4”12” Jumbo, 8”x8”x16” block back-up
114
Brick veneer, 8”x4”x12” Jumbo, 8”x8”x16” block back-up
115
Brick wall, cavity, 10” thick
116
Brick wall, reinforced, 16” thick
117
Stone veneer, Granite, 4”x8”x16” block back-up
118
Brick veneer, 4” standard, sheathing, building paper,
insulation, 2”x4” wood stud 16” OC
119
Brick veneer, 4” modular, sheathing, building paper insulation, 2”x4” wood stud 16” OC
120
Siding, Redwood Beveled, paint, sheathing, building paper,
insulation, 2”x4” wood stud 16” OC
121
Siding, hardboard, paint, sheathing, building paper,
insulation, 2”x6” wood stud 16” OC
122
Siding, Glass weld, finish two sides, sheathing, building
paper, insulation, 2”x4” wood stud 16” OC
123
Stone veneer, Granite, sheathing, building paper, insulation, 2”x4” wood stud 16” OC
124
Stone veneer, Lava stone, sheathing, building paper,
insulation, 2”x4” wood stud 16” OC
125
Stucco, paint, sheathing, building paper, insulation, 2”x4” wood stud 16” OC
126
Stucco, paint, sheathing, building paper, insulation, 16 ga 3-5/8 metal stud 16” OC
127
Metal Siding, corrugated aluminum, .1/4” thick
128
Metal Siding, corrugated galvanized iron, 26 ga
129
Curtain Wall, frame, anodized aluminum, bronze
130
Curtain Wall, glazing, plate, 1/4” thick clear
131
Curtain Wall, glazing, double glazed, 5/8” thick clear
132
Curtain Wall, glazing, double glazed, tempered,
5/8” thick clear
133
Curtain Wall, glazing, double glazed, tempered, 1” solar cool, reflective
134
Exterior coating, concrete surface, paint, prime
135
Exterior coating, concrete surface, paint, prime + 2 finish
136
Exterior coating, masonry surface, paint, prime + 1 finish
137
Exterior coating, silicone seal, spray 1 coat
137A
Exterior coating, sheet metal, paint, prime + 2 finish
UNIT
MATERIAL
LABOR TOTAL
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
5.64
6.89
10.71
5.99
8.16
14.60
16.38
11.28
13.09 11.89
16.24
13.92
23.39
34.35
9.75
6.24
7.08
7.90
6.74
7.40
10.29
10.94
12.87
16.25
14.15
15.80
18.50
22.97
33.84
11.59
11.88
13.97
18.61
12.73
15.56
24.89
27.32
24.15
29.34
26.03
32.04
32.42
46.37
68.19
21.34
SF
10.20
14.63
24.83
SF
7.15 8.63
15.78
SF
5.01
9.27
14.28
SF
5.08
9.35
14.43
SF
31.46
32.18
63.64
SF
10.12
20.54
30.67
SF
4.12 7.98
12.10
SF
6.89
10.90
17.79
SF
SF
SF
SF
SF
SF
3.88
2.77
30.04 5.27
12.19
18.08
3.34
3.63
1.54
0.76
2.56
1.65
7.21
6.40
31.58
6.03
14.75
19.73
SF
11.86
1.66
13.53
SF
SF
SF
SF
SF
0.08 0.30
0.21
0.29
0.24
0.33
0.94
0.72
0.31
1.39
0.41
1.24
0.93
0.60
1.63
Copyright © 2017 Compass International, Inc.
278. | SECTION B4
#
DESCRIPTION
CONTINUED
138
Finish interior wall, gypsum board, on stud, painted, rubber base
139
Wall painting, concrete, prime
140
Concrete block painting, prime, brush
141
Concrete block painting, prime + 2 finish, roll
142
Window, steel frame, fixed, 1/4” glass, clear
143
Window, steel frame, fixed, 1/4” glass spandrel
144
Window, aluminum frame, fixed, 1/4” glass, tempered
145
Window, metal, sliding, one vent, with screen, 2’0”x3’0”
146
Window, metal, sliding, two vent with screen, 8’0”x4’0”
147
Window, metal, casement, two vent, with screen, 10’0”x4’0”
148
Door, pre hung, solid core, 3’X7’X 1 3/8”
149
Door, metal, panic hardware, single, 3’x7’
150
Door, metal, panic hardware, double, 6’x 7’
151
Door, metal and glass, panic hardware, double, 6’ x 7’
152
Roll-up doors, chain operated, galvanized steel 24 GA,
10’x10’
153
Roll-up doors, chain operated, galvanized steel 24 GA,
10’x10’ with electric motor
154
Roll-up doors, chain operated, galvanized steel 24 GA,
12’x12’
155
Roll-up doors, chain operated, galvanized steel 24 GA,
14’x14’
156
Overhead doors, sectional, steel, 8’x8’
157
Sliding door with track steel, 12’x14’
158
Sliding door with track steel, 16’x20’
159
Sliding door with track steel, 16’x20’ electrically operated
160
Glass sliding door, 6’x8’
161
Glass sliding door, 8’x8’
162
Erect fabricated grade 40 structural steel in columns
163
Ditto in beams
164
Pre-cast concrete in elevated floors 100 mm thick
165
Ditto 150 mm thick
166
Common brick in ext walls (½ brick wide) $325 / M 167
Ditto (1 brick wide) ditto
168
Facing brick in ext walls (½ brick wide) $425 / M
169
Ditto (1 brick wide) ditto
170
Lightweight concrete block in walls (ext/ internal) 100 mm wide
171
Ditto 150 mm wide
172
Solid concrete block in walls (ext/ internal) 100 mm wide
173
Ditto 150 mm wide
174
Concrete 300 psi in ext / internal walls 100 mm wide with
fair faced finish incl rebar and formwork
175
Ditto 150 mm wide ditto
176
Ditto 200 mm wide ditto
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
SF
0.74
1.42
2.16
SF
SF
SF
SF
SF
SF
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
0.08
0.08
0.26
22.06
33.24
27.82
83.81
199.60
339.14
206.72
1,534.42
2,798.50
3,319.45
1,118.49
0.32 0.37 0.61 12.62
12.79
9.38
34.09
71.24
78.81
81.65
302.75
557.22
725.21
1,936.38
0.40
0.45
0.87
34.68
46.04
37.20
117.90
270.84
417.94
288.37
1,837.17
3,355.72
4,044.67
3,054.87
EACH
1,645.59
2,434.43
4,080.03
EACH
1,530.94
2,025.74
3,556.68
EACH
1,913.59
2,025.74
3,939.34
EACH
EACH
EACH
EACH
EACH
EACH
Kg
Kg
M2
M2
M2
M2
M2
M2
M2
610.37
1,161.85
1,898.14
2,429.36
2,166.15
2,674.03
0.33
0.40
178.93
193.32
68.54
116.60
79.50
94.04
33.54
411.13
319.01
443.59
605.71
207.98
237.68
4.10
4.13
43.90
47.97
49.14
53.08
59.11
106.28
20.97
1,021.51
1,480.85
2,341.72
3,035.08
2,374.13
2,911.71
4.43
4.53
222.84
241.29
117.68
169.67
138.60
200.32
54.51
M2
M2
M2
M2
37.90
34.73
41.06
133.38
31.45 29.41
43.90
96.32
69.35
64.14
84.96
229.70
M2
M2
156.36
171.27
98.93
120.43
255.29
291.70
SECTION B4 | 279.
#
DESCRIPTION
CONTINUED
177
External Pre-Cast wall panel 100 mm thick
178
Ditto with exposed aggregate finish
179
Metal insulated wall cladding 75 mm wide
180
Plasterboard / gyprock 2 faced wall with metal studding at
400 centers inc top and bottom rail (1 hour fire rating)
181
Cement & sand screed (1:3) to block work or brick 10 mm thick
182
Paint 1 u/c and 2 top coats emulsion based to walls
(rolled and sprayed)
183
Install glazed ceramic tiles 300 x 300 x 7 mm thick wall tiles
184
Maple flooring 15 mm thick including polyurethane finish
185
Quarry floor tiles 150 x 150 x 20 mm thick on
50 mm cement – sand screed (1:3)
186
Linoleum floor 2.5 mm thick
187
Suspended plasterboard / gyprock ceiling 10 mm thick
188
Acoustical suspended ceiling including grid
300 x 300 x 7 mm
189
Curtain wall 65% glass 35 % solid galv steel with
tinted double glazing
190
Curtain wall 65% glass 35 % solid galv steel with
tinted double glazing Class A
191
Ditto with anodized aluminum 192
Ditto with anodized aluminum Class A
193
Regular CMU 8 x 8 x 16 194
ditto with insulation
195
Split face CMU 8 x 8 x16
196
Ditto with insulation
197
Regular CMU 12 x 8 x 16
198
ditto with insulation
199
Split face CMU 12 x 8 x 16
200
Ditto with insulation
201
Cast stone sills
202
Grout
UNIT
MATERIAL
LABOR
TOTAL
M2
M2
M2
M2
300.05
380.33
95.07
68.66
99.99
124.50
26.87
58.18
400.04
504.83
121.94
126.84
M2
16.65
8.98
25.62
M2
14.60
21.69
36.29
M2
M2
M2
32.62
110.66
62.34
35.13
34.08
47.71
67.75
144.74
110.05
M2
M2
M2
44.25
41.33
24.81
17.96
26.26
19.07
62.21
67.60
43.88
M2
1,003.62
150.70
1,154.32
M2
1,467.43
212.29
1,679.72
M2
M2
SF
SF
SF
SF
SF
SF
SF
SF
LF
CY
1,151.37
1,626.79
5.00
5.31
6.56
7.74
5.25
6.12
8.12
8.87
39.16
256.62
155.94
225.39
4.93
5.04
5.24
7.29
5.04
5.93
6.98
7.68
7.92
94.52
1,307.31
1,852.18
9.93
10.35
11.79
15.03
10.30
12.05
15.10
16.54
47.07
351.14
Copyright © 2017 Compass International, Inc.
280. | SECTION B4
Table 5
CSI DIVISION 7, 8 & 9 ROOFING & MISCLANEOUS ITEMS
GENERAL ROOFING ITEMS
#
DESCRIPTION
UNIT
MATERIAL
LABOR
TOTAL
1
Copper 3/16” thick flat seam
(includes insulation & ½” plywood)
Poured gypsum 1 1/2” thick
P.C. Tee 6’ x 18” wide
Ditto 6” x 24”
Composition roofing system
3/16” thick slate
Roof cover, built-up, low rise, 3 ply
Roof cover, built-up, low rise, 4 ply
Roof cover, plastic, membrane, 1/6”
Roof cover, plastic, membrane, 1/32”
Roof cover, EPDM, 1/16”, self seal
Roof cover, urethane foam, silicone cover, 1” thick
Roof cover, shingles, composition asphalt, 240 #
Roof cover, shingles, composition asphalt, 300 #
Roof cover, tile, concrete, premium
Roof cover, corrugated aluminum, 020”
Roof cover, corrugated galvanized iron, 26 Gauge
Rigid, insulation board, deck, mineral fiber, 1”
Rigid, insulation board, deck mineral fiber, 2”
Insulation board, deck, fiberglass, 2”
Rigid, insulation board, deck, urethane, paint,
1-1/2” non-rated R11
Rigid, insulation board, deck, urethane, paint, 3” non-rated R25
Rigid, insulation board, deck, batt foam, 2” thick
Roof hatch, aluminum, 30”x48”, with curb
Roof hatch, aluminum, 30”x72”, with curb
Metal flashing 25 G / Galvanized steel 10”
Metal flashing Aluminum 10”
Galvanized steel downspout 28g 4” dia
Ditto 6”
Ditto rectangular 3” x 3” Ditto 4” x 4” Floor drain 4”CI with trap
Ditto 6”
Roof drain 4” CI with aluminum dome
Ditto 6”
Stairs, steel, concrete tread, 12 risers
Ladders, galvanized steel, 2-1/2”x3-3/8” bar, 3/4” rung
Railing, pipe 3 high, welded, with kick plate 1-1/2”
Railing, welded, flat bar and angle
Fire escape, ladder and balcony
SF
6.81
9.43
16.24
SF
SF
SF
SF
SF
SQ
SQ
SQ
SF
SQ
SQ
SQ
SQ
SQ
SF
SF
SF
SF
SF
SF
3.74
6.37
6.63
1.72
4.02
115.98
134.61
180.03
160.03
168.04
431.00
56.87
80.83
164.01
1.67
2.66 0.78 1.35
2.23
1.88
4.75
12.61
14.07
2.25
1.70
85.80
93.39
274.98
274.97
275.14
143.38
84.75
88.56
267.76
2.11
3.13
0.72
1.35
2.21
1.88
8.49
18.98
20.70
3.97
5.72
201.78
228.01
455.02
435.00
443.18
574.37
141.62
169.40
431.77
3.78
5.80
1.51
2.70
4.44
3.76
SF
3.60
3.59
7.19
SF
EACH
EACH
LF
LF
LF
LF
LF
LF
EACH
EACH
EACH
EACH
FLT
RISER
LF
LF
EACH
2.20
736.89
1,161.18
2.43
2.55
1.36
1.59
1.72
2.05
120.98
247.15
134.99
203.79
1,503.26
109.61
49.76
22.21
2,049.91
2.19
124.72
190.08
0.31
0.44 3.40
3.24
3.12
3.34
124.00
142.01
124.00 152.83
621.02
66.21
15.47
13.98
636.17
4.39
861.61
1,351.26
2.74
2.98
4.76
4.83
4.84
5.39
244.98
389.16
258.99
356.62
2,124.28
175.82
65.22
36.19
2,686.09
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Copyright © 2017 Compass International, Inc.
SECTION B4 | 281.
#
DESCRIPTION
CONTINUED
41
Gutter, galvanized iron, facia, 5”
42
Downspout, galvanized iron, fabricated, 3”x4”
43
Gravel stop, aluminum, facia 10”
44
Louvers, manual, galvanized
45
Screens, cooling tower, galvanized
46
Screens, bird
47
Smoke vent, automatic 180 degree, galvanized
48
Skylights, aluminum frame, plastic dome, 2’x2’
49
Skylights, aluminum frame, plastic dome, 3’x6’
50
Skylights, aluminum frame, plastic dome, 8’x10’
51
Skylights, double glazed, aluminum frame 2’x2’
52
Acoustic insulation, sound board vertical, 1/2”
53
Insulation, batt, wall and ceiling, mineral fiber, 2-1/2” R7
54
Insulation, batt, wall and ceiling, mineral fiber, 6” R19
55
Caulk, butyl base, 1/8”x 1/8”
56
Caulk, acrylic, 1/8” x 1/8”
57
Caulk, polysulfide, 1/8”x1/8”
58
Caulk, silicone, 1/8”x1/8”
59
Caulk, electrometric, for concrete
60
Latex/acrylic, ¼”x¼” 61
Latex/acrylic, ¼”x½ ” 62
Latex/acrylic, ½”x3/4” 63
Joint filler ½”
64
Joint filler 1”
UNIT
MATERIAL
LABOR
TOTAL
LF
LF
LF
SF
SF
SF
EACH
EACH
EACH
EACH
EACH
SF
SF
SF
LF
LF
LF
LF
LF
LF
LF
LF
LF
LF
1.94
2.71
3.16
10.89
8.64
1.83
2,113.51
144.81
369.27
2,724.88
253.18
0.24
0.23
0.54
0.05 0.07
0.36
0.08
2.42
0.13
0.32
0.42
0.26
0.34
5.05
4.36
4.36 22.15
22.15
2.72
701.56
110.88
110.88
149.63
126.04
0.65
0.36
0.42
0.98
0.98
1.01
1.08
2.17
1.33
1.63
1.81
0.22
0.33 6.99
7.07
7.52
33.03
30.78
4.55
2,815.07
255.69
480.15
2,874.51
379.22
0.90
0.59
0.97
1.02
1.04
1.37
1.16
4.59
1.46
1.95
2.24
0.48
0.67
Table 6
CSI DIVISION 4, 8, 9 & 10 INTERNALS WALLS / DOORS / CEILINGS / FLOORS / INTERIORS / GLASS
#
DESCRIPTION
UNIT
MATERIAL
LABOR
TOTAL
1
Interior gypsum board (both sides painted) on metal
studding 16” O.C. with 3” thick sound insulation with
rubber skirting board (NR)
Ditto 1 hour rated
Ditto 2 hour rated
Interior partitions, non-rated drywall metal studs 3 5/8”,
insulation, lath & plaster, both sides, painted, rubber base
Interior partitions, non-rated, drywall metal studs 3 5/8”,
insulation, lath & plaster, both sides, painted, rubber base.
Interior shaft wall, 1 hour rated, metal studs, insulation,
lath & plaster, one side, 1/2” asphalt core sheathing,
one side, paint one side, rubber base
Concrete masonry unit, 4”x 8”x 16”, #4 bar, 30” on center,
both ways, unfilled
SF
4.10
4.26
8.37
SF
SF
SF
4.64
5.68
5.55
5.22
5.90
12.07
9.87
11.58
17.62
SF
7.35
12.74
20.09
SF
5.16
9.94
15.10
SF
5.46
6.20
11.67
2
3
4
5
6
7
Copyright © 2017 Compass International, Inc.
282. | SECTION B4
#
DESCRIPTION
CONTINUED
8
Concrete masonry unit, 12”x 8”x 16”, #4 bar, 30” on center,
both ways, unfilled
9
Concrete masonry unit, 8”x4”16”, #4 bar, 30” on center,
both ways, filled
10
Concrete masonry unit, grout lock, 8”x8”16”, #4 bar, 30” on center, filled
11
Concrete masonry unit, slump stone, 8”x 8”x16”, #4 bar, 30” on center, filled
12
Concrete block painting, prime, brush
13
Concrete block painting, prime + finished, brush
14
Door, hollow metal, stock, including hardware / hinges,
stained / painted, door 20 GA, frame 18 GA,
3’ x 7’0”, non-rated
15
Door, hollow metal, stock, hardware / hinges, stained /
painted, door 20 GA, frame 18 GA, 3”6 x 8’0” 1 hour rated
16
Door, hollow metal, including hardware / hinges, stained /
painted, door 20 GA, frame 18 GA, 3’0”x 7’0”, non-rated
17
Door, hollow metal, including hardware / hinges, stained /
painted, door 20 GA, frame 18 GA, 3’0”x 7’0”, 3 hour rated
18
Door, hollow metal, including hardware / hinges, stained /
painted, door 18 GA, frame 16 GA, 4’0”x 7’0”, 1 hour rated
19
Door, hollow metal, including hardware / hinges, stained /
painted, door 18 GA, frame 16 GA, 4’0”x 7’0”, 3 hour rated
20
Glazing, interior, clear, fixed, commercial, glass 1/4”,
steel frame, painted
21
Glazing, interior, security, fixed, commercial, glass wire 1/4”, steel frame, painted
22
Glazing, interior, clear, fixed, commercial, glass 1/4”, aluminum frame
23
Sidelight, 3’x 7’, commercial, tempered glass 1/4”,
aluminum frame
24
Roof window with insulated glass 24” x 48”
25
Roof window with insulated glass 30” x 60”
26
5/8” gypsum on metal furring
27
5/8” plaster on metal furring
28
Keens plaster ¼”thick on expanded metal lathing
29
5/8 Fiberglass lay-in ceiling on grid (24” x 48”)
30
20 g metal lay-in ceiling including grid (pre-painted enamel)
31
Acoustical ceiling, suspended, 2’x 2’
32
Acoustical ceiling, suspended, 2’x 4’
33
Acoustical ceiling, glue on, metal studs, 5/8” gypsum board,
vinyl tile 1’x 1’, painted
34
Acoustical ceiling, suspended, 2’x 2’, insulated
35
Acoustical ceiling, suspended, 2’x 4’, insulated
36
Resilient floor, tile, asphalt, 1/8”, 37
Resilient floor, tile, asphalt, 1/4”, 38
Resilient floor, tile, cork, 5/16”
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
SF
10.28
7.77
18.06
SF
11.15
9.39
20.54
SF
8.19
5.55
13.74
SF
10.46
8.49
18.96
SF
SF
EACH
0.08
0.18
794.45
0.38
0.68
364.32
0.46
0.86
1,158.77
EACH
928.75
379.62
1,308.38
EACH
965.63
319.16
1,284.79
EACH
1,154.54
319.16
1,473.70
EACH
1,289.23
378.22
1,667.46
EACH
1,421.48
378.20
1,799.69
SF
17.39
10.55
27.93
SF
33.69
10.55
44.24
SF
17.17 7.78
24.96
EACH
561.70
194.13
755.83
EACH
EACH
SF
SF
SF
SF
SF
SF
SF
SF
522.86
652.50
1.73
3.21
3.79
1.48
2.97
1.60
1.57
2.77
179.10
238.79
1.42
1.52
2.28
1.74
3.17
1.52
1.31
4.50 701.96
891.28
3.15
4.74
6.07
3.22
6.14
3.12
2.88
7.27
SF
SF
SF
SF
SF
1.87
1.87
0.52
0.56
3.14
1.80
1.49
1.44
1.44
1.44
3.67
3.35
1.96
2.01
4.58
SECTION B4 | 283.
#
DESCRIPTION
CONTINUED
39
Resilient floor, vinyl, ¼”, w/cove
40
Wood Parquet, 5/16”, oak
41
Wood block industrial floor, 1”
42
Oak ¼” thick pre-finished
43
Rubber tile, 12”x12”x1/4”
44
VCT, 12”x12”x1/4”
45
Vinyl sheet, 12”x12”x1/8”
46
Brick paving, 3” thick
47
Slate 3’ x 3” ½ ” thick on 11/2” mud set base
48
PVC sheet floor ¼” thick, glued to concrete floor
49
Quarry tile 4” x 4” x 3/8” thick on 1” mud set base, acetone base (food grade)
50
Ditto 6” x 6” ditto on 11/2” mud base
51
Poly carbonate, sheet glass 1/8” thick
52
Ditto ¼”
53
Ditto ½”
54
Addition for tint Minimum
55
Ditto Maximum
56
Tile, ceramic, floor, 1”x 1”, mortar mud set
57
Tile, ceramic, floor, 4”x 4”, mortar mud set
58
Terrazzo, floor, mud bonded, 2”, non-slip abrasive
59
Terrazzo, floor, thin set, polyester, 3/8”, polished
60
Hardwood floor, oak, common, finished
61
Hardwood floor, oak, select, finished
62
Hardwood floor, teak parquet 5/16”, pre-finished
63
Vinyl wall covering. light, 6 ounces
64
Paneling, birch or ash, select
65
Paneling, walnut, select
66
Sanding existing wooden floor
67
Polyurethane finish 1 coat
68
Paint concrete floor 2 coats
69
Cabinets and laminated plastic tops, multi-unit,
hardwood, economy, base
70
Cabinets and laminated plastic tops, multi-unit, hardwood, economy, wall
71
Cabinets and laminated plastic tops, multi-unit,
hardwood, economy, wall
72
Carpet, 30 oz polyester, with 24 oz pad
73
Carpet, 30 oz polyester, with 24 oz pad
74
Carpet, 20 oz nylon level loop, with rubber back
75
Carpet, wool commercial, with 24 oz pad
76
Carpet, exterior, premium, without pad
77
Floor mat, rubber, 1/4” recessed
78
Floor mat, rubber, 1/2” recessed
79
Olefine, 24” oz.
80
Indoor - outdoor
81
Felt padding
82
Rubber based / sponge type padding
UNIT
MATERIAL
LABOR
TOTAL
SY
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
18.61
6.45
4.44
2.30
3.24
1.29
1.87
5.91
10.15
4.84
5.43
12.69
4.75
1.31
2.63
2.48
0.52
1.39
6.62
7.49
5.34
5.81
31.30
11.20
5.75
4.93
5.72
1.81
3.25
12.53
17.64
10.18
11.24
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
LF
5.55
4.88
5.43
6.08
2.80
7.05
5.01
4.86
6.17
5.86
7.12
7.25
12.57
1.81
1.91
3.92
0.26
0.39
0.24
48.53
5.98
1.70
1.70
1.96
7.13
6.44
2.15 12.61
3.90
4.09
5.41
0.59
4.69
4.74
0.76
0.33
0.34
18.57
11.53
6.59
7.13
8.04
2.80
7.05
12.14
11.30
8.33
18.47
11.02
11.34
17.98
2.40
6.60
8.66
1.01
0.72
0.57
67.10
LF
31.16
32.28
63.44
LF
120.28
41.49
161.77
SY
SY
SY
SY
SY
SF
SF
SF
SF
SF
SF
23.53
13.65
15.16
53.66
24.76
6.70
10.57
2.69
2.02
0.53
0.73
9.26
9.26
7.78
9.10
10.41
2.88
36.47
1.31
1.17
0.25
0.28 32.79
22.91
22.95
62.76
35.17
9.58
47.04
4.00
3.19
0.78
1.01
Copyright © 2017 Compass International, Inc.
284. | SECTION B4
Table 7
CSI DIVISION 11, 13 & 14 MATERIAL HANDLING EQUIPMENT
SPECIALIZED EQUIPMENT
#
DESCRIPTION
1
2
3
4
5
Dock bumper, 10”x4 1/2” x 24”
EA
Scissors lift, 60”, 2000#, 4’x 4’ deck
EA
Dock leveler, heavy duty, hydraulic
EA
Dock leveler, sliding door, 7’6”x 8’
EA
Laboratory equipment, instructor’s table, includes sinks,
EACH
fixtures and acid resistant tops, 12’x 36”x 36”
Laboratory equipment, student table for 6 students,
EACH
12’x 6’x 4’
Laboratory equipment, steel cabinet, base
LF
Laboratory equipment, wood cabinet, base
LF
Laboratory equipment, plastic laminated cabinet, base
LF
Laboratory equipment, steel cabinet, knee space, drawer unit LF
Laboratory equipment, stainless steel cabinet top
LF
Reagent rack, metal upright, wall, 1 tier
EACH
Laboratory equipment miscellaneous, add for stainless steel LF
Laboratory equipment miscellaneous, water tank,
EACH
stainless steel, 50 GAL
Laboratory equipment miscellaneous, washer
EACH
Laboratory equipment miscellaneous, EACH
portable water distiller, 20 LPH
Steel stair, steel pan, concrete tread, RISER
wrought iron rail, 44” wide
Steel stair, steel pan, concrete tread, wrought iron rail,
RISER
48” wide
Elevator, hydraulic, 100’ min, 2000 lb, 5’x 6’ cab, EACH
auto exit, 2 stop
Elevator, hydraulic, 100’ min, 2500 lb, 5’x 7’ cab, EACH
auto exit, 2 stop
Elevator, hydraulic, 100’ min, 4000 lb, 6’x 8’ cab, EACH
auto exit, 3 stop
Elevator, electric gear, 200’ min, 3500 lb, 5’x 8’cab,
EACH
auto exit, 7 stop
Elevator, electric gear, 200’ min, 4000 lb, 6’x 8’cab, EACH
auto exit, 4 stop
Elevator, electric gear less, 400’ min, 3500 lb, 6’x 9’ cab,
EACH
auto exit, 10 stop
Elevator, electric gear less, 500’ min, 4500 lb, 6’x 9’ cab,
EACH
auto exit, 15 stop
Air hoist, 25’lift, rail, 2000 lb
EACH
Air hoist, 30’lift, rail 500 lb
EACH
Electric hoist, 30’lift, rail, 1000 lb
EACH
Electric hoist, 30’lift, rail, 500 lb
EACH
Crane, hydraulic, portable, 2000 lb
EACH
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
89.77
8,491.55
7,468.27
1,149.09
2,933.67
51.38
211.61
667.81
690.41
251.87
141.15
8,703.16
8,136.08
1,839.50
3,185.54
6,486.63
244.32
6,730.96
268.18
223.77
204.38
177.10
233.66 92.69
623.83 8,131.91
140.99
140.99
140.99
89.58
40.54
419.35
409.17
364.76
345.37
266.68
233.66
133.23
623.83
8,551.26
797.66
1,291.22
808.13
129.73
1,605.79
1,420.95
402.79
136.02
538.81
425.17
130.01
555.18
68,130.21 68,130.21
71,853.72 71,853.72
98,807.57 98,807.57
242,080.37 242,080.37
300,412.84
-
300,412.84
342,675.58
-
342,675.58
417,877.65 417,877.65
9,746.49
83.12
10,729.68
83.12
6,324.10
83.12
5,639.33
83.12
3,460.66 9,829.61
10,812.80
6,407.22
5,722.45
3,460.66
SECTION B4 | 285.
#
DESCRIPTION
UNIT
MATERIAL
LABOR
CONTINUED
31
Crane, hydraulic, gantry, 4000 lb
32
Crane, monorail, overhead, 200 # L/F, manual
33
Crane, monorail, overhead, 100 # L/F, manual
34
Bridge Crane, 1 ton
35
Bridge Crane, 2.5 ton
36
Bridge crane, 5 ton
37
Man lift, 2 stop
38
Man lift, 3 stop
39
Man lift, 4 stop
40
Escalator, 12’ floor to floor, 24” wide
41
Escalator, 12’ floor to floor, 32” wide
42
Escalator, 12’ floor to floor, 36” wide
43
3” round C.S. single tube
44
4” round C.S. single tube
45
6” round C.S. single tube
46
3/16th lead lining to walls
EACH
LF
LF
EACH
EACH
EACH
EACH
EACH
EACH
Floor
Floor
Floor
LF
LF
LF
SF
3,715.34 31.61
83.12
20.57
83.25
9,390.17 19,110.59 29,593.00 22,412.37 25,770.87 26,744.07 159,105.34 164,040.01 174,667.86 27.08
14.81
29.99
17.80
50.29
19.96
11.20
3.09
TOTAL
3,715.34
114.73
103.82
9,390.17
19,110.59
29,593.00
22,412.37
25,770.87
26,744.07
159,105.34
164,040.01
174,667.86
41.88
47.78
70.25
14.29
Table 8
CSI DIVISION 15 PLUMBING & FIRE PROTECTION
#
DESCRIPTION
UNIT
MATERIAL
LABOR
TOTAL
1
CS A53 1” diameter schedule 40 including fittings / hangars and erection n/e 20’ from FFL
(4 fitting per 100’ of pipe, valves not included)
Ditto 2”:
Ditto 4”
Ditto 6”
Water heater, commercial, electric, 50 gallon, 100 GPH
Water heater, commercial, gas, 80 gallon, 100 GPH
Interceptor grease, cast iron, 50 gallons per minute
Pump, circulating, in line, flanged, iron body, 3/4” to 2”
Pumps circulating, in line flanged, iron body, 3/4” to 2”
Pumps sewage ejector, w/tank & fittings, single,
2 horsepower, 4”
Pump, sewage ejector, w/tank & fittings, duplex 5 H.P.
Pressure booster system, 2 pump, 100 GPM, 50 psi
Pressure booster system, 3 pump, 250 GPM, 100 psi
1” diameter sch 40 including fittings / hangars and
erection n/e 20’ from FFL
Ditto 1.5”
Ditto 2” Ditto 4”
Ditto 6”
Copper “L” including fittings / hangars and erection
n/e 20’ from FFL ½ dia
LF
8.02
10.88
18.90
LF
LF
LF
EACH
EACH
EACH
EACH
EACH
EACH
11.62
24.04
45.90
2,951.77
4,837.43
3,107.37
598.40
1,893.88
10,128.46
16.92
42.55
88.81
641.45
694.28
1,091.19
190.19
259.59
1,488.15
28.54
66.59
134.71
3,593.22
5,531.71
4,198.56
788.59
2,153.47
11,616.61
EACH
EACH
EACH
LF
17,975.65
18,778.35
28,716.29
4.57
2,822.33
2,822.33
3,939.23
1.85
20,797.98
21,600.68
32,655.51
6.42
LF
LF
LF
LF
LF
4.77
6.56
17.42
29.61
1.69
2.20
2.53
3.55
6.23
5.29 6.96
9.09
20.97
35.84
6.98
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Copyright © 2017 Compass International, Inc.
286. | SECTION B4
#
DESCRIPTION
UNIT
CONTINUED
20
Ditto ¾”
LF
21
Ditto 1”
LF
22
Ditto 2”
LF
23
Septic tank, steel 250 gallon, buried
EACH
24
Septic tank, steel 1000 gallon, buried
EACH
25
Compressor air, simplex, 5 H.P., reciprocating, tank mounted EACH
26
Compressor air, simplex, 10 H.P., reciprocating, tank mounted EACH
27
Tank, water, glass lined, 200 gallon, ASME
EACH
28
Water softeners, w/brine tank, 50 GPM
EACH
29
Fixture, economy grade, bath tub, steel, w/ shower
EACH
30
Fixture, economy grade, lavatory, steel, wall hung
EACH
31
Fixture, economy grade, shower & drain receptor, 24” square EACH
32
Fixture, economy grade, shower cabinet, w/door, 24” square EACH
33
Fixture, economy grade, water closet, floor, w/tank
EACH
34
Fixture, standard grade, shower and drain receptor, EACH
24” square
35
Fixture, standard grade, urinal, wall mounted.
EACH
36
Rough-in for fixtures, piping and valves, fixture to
EACH
5’ beyond building perimeter, housing
37
Rough-in for fixtures, piping and valves, fixture to 5’
EACH
beyond building perimeter, office building
38
Rough-in at fixtures, lavatory, fittings and valves,
EACH
fixture to waster line, vent riser and water runs
39
Rough-in at fixtures, urinal, fittings and valves, EACH
fixture to waste line, vent riser and water runs
40
Rough-in at fixtures, wash fountain, fittings and valves,
EACH
fixture to waster line, vent riser and water runs
41
2” diameter
LF
42
Ditto 3”
LF
43
Ditto 4”
LF
44
Ditto 6”
LF
45
Ditto 8”
LF
46
Ditto 10”
LF
47
Ditto 12”
LF
48
PVC PIPE Schedule 40 includes fitting, hangars and LF
erection ½ ‘ diameter
49
Ditto ¾”
LF
50
Ditto 1”
LF
51
Ditto 2”
LF
52
Ditto 3”
LF
53
Ditto 4”
LF
54
Ditto 6”
LF
55
Ditto 8”
LF
56
½” diameter
LF
57
Ditto ¾”
LF
58
Ditto 1”
LF
59
½” diameter
LF
60
Ditto ¾”
LF
Copyright © 2017 Compass International, Inc.
MATERIAL
LABOR
TOTAL
2.70
3.80
10.79
423.58
1,333.38
6,956.91
12,550.07
2,527.57
5,357.76
346.16
191.96
271.94
588.96
253.06
875.11
5.29 5.84
9.24
313.05
751.04
1,928.01
2,358.45
844.35
1,310.93
319.09
181.12
271.16
406.72
180.78
668.46
7.99
9.64
20.03
736.63
2,084.42
8,884.92
14,908.52
3,371.92
6,668.69
665.25
373.08
543.10
995.68
433.84
1,543.57
804.80
248.98
428.00
143.74
1,232.80
392.72
1,468.12
1,170.95
2,639.07
178.40
293.51
471.90
144.23
301.04
445.27
420.53
466.60
887.12
4.61
7.45
9.93
14.28
25.93
39.12
65.21
1.05
10.28
10.28
10.28
15.62
19.18
21.95
27.43
6.71
14.89
17.72
20.21
29.91
45.11
61.07
92.64
7.76
1.24
1.36
1.95
3.49
4.59
7.94
9.68
10.85 18.41
29.53
11.54
19.56
7.06
9.34
11.46
12.42
15.22
19.06
21.23
9.46
11.52
17.14
9.46
11.52
8.30
10.69
13.42
15.91
19.81
27.00
30.91
20.31
29.93
46.67
21.00
31.08
SECTION B4 | 287.
#
DESCRIPTION
UNIT
CONTINUED
61
Ditto 1”
LF
62
Copper pipe, underground, “K”, soft, w/ trenching, 1/2” coils LF
63
Copper pipe, underground, “K”, soft, w/ trenching, 3/4” coils LF
64
Copper pipe, underground, “K”, soft, w/ trenching, 1” coils
LF
65
Copper pipe, in building, “L”, w/fittings & supports, 1-1/2”
LF
66
Copper pipe, in building, “L”, w/fittings & supports, 3”
LF
67
PVC pipe, schedule 40, in building, w/fittings & supports 1/2” LF
68
PVC pipe, schedule 40, in building, w/fittings & supports 1” LF
69
Pipe, polypropylene, acid waste, 2”
LF
70
Pipe, polypropylene, acid waste, 3”
LF
71
Pipe, polypropylene, acid waste, 4”
LF
72
Brass pipe 0.50 “ dia with fittings / hangars and installation LF
73
1” diameter with fittings / hangars and installation
LF
74
Ditto 2”
LF
75
2” diameter with fittings / hangars and installation
LF
76
Ditto 3”
LF
77
Ditto 4”
LF
78
Steel pipe, black, weld, schedule 40, A-120, screwed, 3/4”
LF
79
Steel pipe, black, weld, schedule 40, A-120, screwed, 1”
LF
80
Steel pipe, black, weld, schedule 40, A-120, screwed, 2”
LF
81
Steel pipe, black, weld, schedule 40, A-120, screwed, 3”
LF
82
Steel pipe, galvanized, weld, schedule 40 A-120, LF
screwed, 3/4”
83
Steel pipe, galvanized, weld, schedule 40, A-120, LF
screwed, 1/2”
84
Access door, painted steel, 8”x 8”
EACH
85
Access door, painted steel, 12”x 12”
EACH
86
Clean out, cast iron, floor & wall, 4”
EACH
87
Drains, cast iron, area, w/6”x 6” strainer
EACH
88
Stainless steel pipe, non-spooled, ‘304’, schedule 10,
LF
seamless, 3/4”
89
Stainless steel pipe, non-spooled, ‘304’, schedule 10,
LF
seamless, 1”
90
Stainless steel pipe, ‘316L’, schedule 10 seamless, 1/2”
LF
91
Stainless steel pipe, ‘316L’, schedule 10 seamless, 3/4”
LF
92
Stainless steel pipe, ‘316L’, schedule 10 seamless, 1”
LF
93
Fire protection, concealed system, wet, normal hazard,
SF
1 to 5,000 SF
94
Fire protection, concealed system, wet, normal hazard,
SF
5,000 to 20,000 SF
95
Fire protection, concealed system, wet, normal hazard,
SF
over 20,000 SF
96
Fire protection, concealed system, wet, high hazard, SF
1 to 5,000 SF
97
Fire protection, concealed system, wet, high hazard, SF
5,000 to 20,000 SF
98
Fire protection, concealed system, wet, high hazard, SF
over 20,000 SF
MATERIAL
LABOR
TOTAL
32.40
2.96
5.51
6.92
9.71
29.51
0.91
1.20
9.71
13.45
17.96
6.75
9.75
25.45
13.07
18.81
25.94
2.43
2.92
6.12
12.66
2.92
17.14
7.90
7.99
6.93
8.56
8.56
6.66
7.32
5.97
8.94
10.75
7.06
9.60
13.03
15.68
19.45
25.71
11.14
13.23
22.52
31.53
12.13
49.54
10.86
13.50
13.85
18.28
38.08
7.57
8.53
15.68
22.39
28.71 13.81
19.34
38.48
28.75
38.26
51.64
13.57
16.15
28.64
44.20
15.05
5.32
16.55
21.88
50.53
50.66
157.89
101.12
15.60
36.48
38.39
95.73
136.93
11.50
87.01
89.05
253.62
238.06
27.10
21.40
13.09
34.49
23.08
28.99
42.51
1.90
11.44
15.20
16.70
2.59
34.52
44.19
59.22
4.48
1.86
2.20
4.06
1.69
2.20
3.89
2.50
2.92
5.42
2.11
2.56
4.67
2.11
2.43
4.53
Copyright © 2017 Compass International, Inc.
288. | SECTION B4
#
DESCRIPTION
CONTINUED
99
Fire protection, exposed system, wet, high hazard,
1 to 5,000 SF
99
Fire protection, exposed system, wet, high hazard,
5,000 to 20,000 SF
100
Fire protection, exposed system, wet, high hazard,
over 20,000 SF
101
Fire protection, haylon / CO2 system 10,000 SF,
8’ ceiling & 2” raised floor
102
Standpipe, dry, 6” diameter, hook up, connection, pump 6”
103
Fire pump, electric, 2500 GPM @ 40 psi
104
Fire pump, diesel, 500 GPM, @ 100 psi
105
Carbon dioxide equipment – cylinder
106
CO2 / Haylon system (computer room)
107
Emergency shower SS (excludes service pipe)
108
Eye wash station ditto
109
Furnace, up flow, 80 MBTU, gas fired
110
Furnace, up flow, 120 MBTU, gas fired
111
Unit heater, suspended, 85 MBTU, gas fired
112
Unit heater, suspended, 180 MBTU, gas fired
113
Electric furnace, unit heater, 10 MBTU, 3KW, 240v
114
Boiler, steel tube, gas fired, 600 MBH, 150# steam, pump
200 GPM, expansion tank, air separator, pipe, valves, etc.
115
Boiler, steel tube, gas fired, 6500 MBH, 150# steam, pump
250 GPM, expansion tank, air separator, pipe, valves, etc.
116
Boiler, steel tube, gas fired, 650 MBH, 15# steam, pump 200
GPM, expansion tank, air separator, pipe, valves, etc.
117
Chiller, reciprocating, air cool, 25 TON
118
Chiller, centrifugal, water cool, 50 TON
119
Chiller, absorption, hot water, 100 TON
120
Chiller, absorption, hot water, 500 TON
121
Cooling tower, 25 TON, compressor chiller
122
Cooling tower, 150 TON, compressor chiller
123
Cooling tower, 200 TON, absorption chiller
124
Cooling tower, 1000 TON, absorption chiller
125
Air conditioner, 10 TON, roof mounted, D-X
126
Air conditioner, 15 TON, roof mounted, D-X
127
Split system, air conditioner, residential, 2 TON
128
Split system, air conditioner, residential, 3 TON 129
Split system, air conditioner, commercial, 10 TON
130
Split system, air conditioner, commercial, 50 TON
131
Computer room, air conditioning unit, 5 TON
132
Computer room, air conditioning unit, 10 TON
133
Roof mounted, air-conditioner, gas heat, DX cooling, 2.5 TON cooling, 100 MBH heating
134
Roof mounted, air-conditioner, gas heat, DX cooling,
7.5 TON cooling, 200 MBH heating
135
Roof mounted, air conditioner, gas heat, DX cooling, 50 TON cooling, 750 MBH heating
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
SF
2.14
2.63
4.77
SF
1.94
2.36
4.30
SF
1.87
2.18
4.06
SF
11.70 11.70
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
1,480.29
502.70
16,330.07
3,976.43
45,513.48
4,438.47
1,116.35
177.07
4,093.27
1,475.57
518.59
329.01
405.19
164.51
651.32
451.52
880.57
599.02
906.40
484.63
1,439.28
776.61
422.08
225.76
41,426.02 1,982.98
20,306.50
49,951.95
1,293.41
5,568.85
847.60
569.70
1,102.84
1,479.60
1,391.03
2,215.89
647.83
41,426.02
EACH
99,710.68 99,710.68
EACH
32,512.24 32,512.24
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
23,566.72 52,818.38 131,270.73 682,184.66 8,326.22 50,307.59 39,427.36 121,708.44 13,227.95 20,190.98 3,110.88 5,309.35 10,227.20 38,509.45 17,843.66 32,735.73 7,615.96 23,566.72
52,818.38
131,270.73
682,184.66
8,326.22
50,307.59
39,427.36
121,708.44
13,227.95
20,190.98
3,110.88
5,309.35
10,227.20
38,509.45
17,843.66
32,735.73
7,615.96
EACH
15,536.55 15,536.55
EACH
76,566.36 76,566.36
SECTION B4 | 289.
#
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
176
177
178
179
180
DESCRIPTION
CONTINUED
Heat pump, 2 TON, 25,000 BTU, thru-wall
Heat pump, 10 TON, 120,000 BTU, roof, ductwork
Heat pump, 4 TON, 50,000 BTU, plenum
PUMPS
Pump, condensate, duplex, 40 GPM, 50’ head
Pump, condensate, duplex, 75 GPM, 50’ head
Pump, condensate, duplex, 120 GPM, 50’ head
Pump, water service, 20 GPM, 50’ head
Pump, water service, 60 GPM, 50’ head
Pump, water service, 200 GPM, 50’ head
Pump, water service, 400 GPM, 50’ head
Pump, water service, 2,000 GPM, 50’ head
Pump, water service, 4,000 GPM, 50’ head
Pump, fuel oil, 1 GPM, 1/4 horse power
Pump, fuel oil, 5 GPM, 1/4 HP
Pump, fuel oil, 10 GPM, 1/4 HP
Air handler, 2,000 CFM, 5 TON
Air handler, 5,000 CFM, 10 TON
Air handler, 15,000 CFM, 30 TON
Air handler, 30,000 CFM, 75 TON
Air handler, 2,500 CFM, 7.5 TON
Air handler, 5,500 CFM, 10 TON
Air handler, 6,400 CFM, 15 TON
Coil, chill water, 20,000 CFM, 40 SF
Coil, chill water, 27,000 CFM, 55 SF
Coil, chill water, 33,000 CFM, 60 SF
Coil, hot water, 17,000 CFM, 15 SF
Coil, hot water, 23,000 CFM, 20 SF
Coil, hot water, 30,000 CFM, 32 SF
Fan, supply, low pressure, 10,000 CFM
Fan, supply, high pressure, 10,000 CFM
Fan, supply, high pressure, 50,000 CFM
Expansion tank, chilled water, 40 GAL
Expansion tank, ASME code, 80 GAL
Expansion tank, ASME code, 250 GAL
Controls, pneumatic, air conditioning unit, to 15 TONS
Controls, pneumatic, air conditioning unit, to 30 TONS
Controls, pneumatic, boiler, to 10,000 MBH
Controls, pneumatic, cooling tower, to 100 TON
Controls, pneumatic, exhaust fan
Duct rectangular, galvanized iron, with supports,
to 10000 LBS
Duct rectangular, galvanized iron, with supports,
10,000 LBS to 25,000 LBS
Duct rectangular, galvanized iron, with supports,
25,000 LBS to 50,000 LBS
Duct flexible, insulated, with clamps, 4”
Duct flexible, insulated with clamps, 6”
UNIT
MATERIAL
LABOR
TOTAL
EACH
EACH
EACH
2,720.91 16,112.60 6,023.72 2,720.91
16,112.60
6,023.72
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
SUM
SUM
SUM
SUM
SUM
LBS
7,886.16 9,632.87 12,392.88 1,632.44 2,580.05 4,259.18 6,094.93 15,935.66 20,788.86 1,641.20 2,001.02 2,203.48 5,777.85 15,744.34 44,783.46 79,149.42 4,245.10 6,909.45 9,433.87 11,906.18 14,877.16 17,287.66 2,332.42 2,744.72 4,116.20 4,039.67
1,012.24
5,794.57
1,068.32
14,694.07
2,676.68
241.12
181.48
1,406.58
985.70
4,208.47
2,310.74
6,129.70 7,163.65 9,317.15 2,437.11 681.71 3.19
4.55
7,886.16
9,632.87
12,392.88
1,632.44
2,580.05
4,259.18
6,094.93
15,935.66
20,788.86
1,641.20
2,001.02
2,203.48
5,777.85
15,744.34
44,783.46
79,149.42
4,245.10
6,909.45
9,433.87
11,906.18
14,877.16
17,287.66
2,332.42
2,744.72
4,116.20
5,051.92
6,862.89
17,370.76
422.60
2,392.28
6,519.20
6,129.70
7,163.65
9,317.15
2,437.11
681.71
7.75
LBS
3.15
3.81
6.95
LBS
2.65
3.48
6.13
LF
LF
2.63
3.44
5.01
6.02
7.64
9.46
Copyright © 2017 Compass International, Inc.
290. | SECTION B4
#
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
DESCRIPTION
UNIT
MATERIAL
CONTINUED
Duct flexible, insulated, with clamps, 8”
LF
5.03
Duct flexible, insulated, with clamps, 10”
LF
5.14
Duct flexible, insulated, with clamps, 12”
LF
6.33
Fire dampers, insulated, UL rated, fusible link to 1 SF
EACH
126.54
Fire dampers, insulated, UL rated, fusible link to 2 SF
EACH
178.61
Fire dampers, insulated, UL rated, fusible link to 4 SF
EACH
214.31
PIPING n/e 50’ above FFL (Assumes 5 # fittings per 100’)
Steel pipe, seamless, A-53, schedule 40, welded, 2”
LF
18.67
Steel pipe, seamless, A-53, schedule 40, welded, 3”
LF
21.50
Steel pipe, seamless, A-53, schedule 40, welded, 4”
LF
28.53
Steel pipe, seamless, A-53, schedule 40, welded, 6”
LF
38.23
Valve, gate, globe & check, iron body, flange, 125#, EACH
296.20
bolt & gasket, 1-1/2”
Valve, gate, globe & check, iron body, flange, 125#,
EACH
324.48
bolt & gasket, 2”
Valve, gate, globe & check, iron body, flange, 125#, EACH
367.66
bolt & gasket, 3”
Valve, gate, globe & check, iron body, flange, 125#,
EACH
934.87
bolt & gasket, 6”
Valve, gate, globe & check, iron body, flange, 125#,
EACH
1,847.17
bolt & gasket, 8”
Steam traps, cast iron, screwed, 3/4”, bucket
EACH
190.52
Steam traps, cast iron, screwed, 1”, bucket
EACH
321.51
Butterfly valve, iron body, nylon, 2”, wafer body
EACH
142.90
Butterfly valve, iron body, nylon, 3”, wafer body
EACH
153.31
Butterfly valve, iron body, nylon, 6”, wafer body
EACH
340.85
Butterfly valve, iron body, nylon, 8” wafer, chain
EACH
504.59
Butterfly valve, iron body, nylon, 2”, lug type
EACH
162.23
Butterfly valve, iron body, nylon, 3”, lug type
EACH
199.45
Butterfly valve, iron body, nylon, 6”, lug type
EACH
391.71 Butterfly valve, iron body, nylon, 8”, lug type
EACH
546.26 Butterfly valve, iron body, nylon 10” lug type
EACH
743.78
Valve, balancing, circuit setter, 1/2”
EACH
72.94
Valve, balancing, circuit setter, 3/4”
EACH
102.72
Valve, balancing, circuit setter, 1 1/2”
EACH
135.46
Valve, balancing, circuit setter, 2”
EACH
238.14
Stainless steel 304, ½” diameter (L/M)
LF
17.11 Stainless steel 304, 1” diameter (L/M)
LF
27.24 Brass – non threaded ½” (L/M)
LF
11.85 Brass – non threaded 1” (L/M)
LF
12.50 Strainers 1” bronze
EACH
61.41
Strainers 1.5” bronze
EACH
95.96
Strainers 2” bronze
EACH
125.73
CS tee ½”
EACH
10.62
CS tee ¾””
EACH
13.70
CS tee 1”
EACH
22.19
CS tee 2”
EACH
24.87
CS tee 3”
EACH
30.87
Copyright © 2017 Compass International, Inc.
LABOR
TOTAL
8.70
11.47
16.12
81.15
118.05
154.94
13.74
16.61
22.45
207.69
296.65
369.25
22.13
32.76
41.33
50.31
140.90
40.80
54.26
69.86
88.54
437.10
156.41
480.89
174.13
541.78
404.31
1,339.18
535.91
2,383.07
51.79
66.42
123.21
169.69
336.44
485.47
123.21
169.69
329.04
485.47
729.87
30.55
36.58
79.19
132.51 30.09
47.29
60.17
32.22
32.22
32.22
61.61
93.83 242.31
387.93
266.11
323.00
677.30
990.06
285.44
369.14
720.75
1,031.74
1,473.65
103.48
139.30
214.65
370.65
17.11
27.24
11.85
12.50
91.50
143.24
185.90
42.85
45.93
54.41
86.48
124.70
SECTION B4 | 291.
#
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
246
248
249
250
251
252
253
254
255
256
257
258
259
DESCRIPTION
UNIT
MATERIAL
LABOR
CONTINUED
CS tee 4”
EACH
43.71
86.66
CS tee 6”
EACH
74.47
184.82
Floor cleanout CI 4” dia
EACH
139.44
123.20
Wall cleanout CI 4” dia
EACH
48.70
92.41
CPVC SCHEDULE 40 WITH FITTINGS / HANGARS AND INSTALLATION
1” diameter LF
4.00
7.42
Ditto 1.5”
LF
5.87 8.56
Ditto 2”
LF
7.99
11.46
Ditto 3”
LF
14.82
14.04
Ditto 4”
LF
20.10
17.20
Ditto 6”
LF
25.26
20.29
METRIC VALUES
Supply & install CI ductile pipe in trench 100 mm
M
48.68
32.62
Ditto 150 mm
M
60.53
41.74
Supply & install CI ductile pipe on walls / racks 100 mm
M
50.00
37.83
Ditto 150 mm ditto
M
61.85
50.88
Supply & install copper pipe 15 mm with cap joints on
M
17.75
13.05
walls / racks
Ditto 25 mm
M
23.02
20.99
Ditto 50 mm
M
57.37
44.61
Multiply above piping units by 1.35 for fittings / M
bends for normal applications
Ditto for congested / complex application use 1.60
M
Supply & install copper pipe 15 mm with comp joints
M
20.40
15.65
on walls / racks
Ditto 25 mm
M
30.53
20.35
Ditto 50 mm
M
65.11
47.08
Multiply above piping units by 1.35 for fittings /
M
bends for normal applications
Ditto for congested / complex application use 1.60
M
Supply & install black / galv steel pipe 15 mm with
M
3.21
13.38
screwed joints on walls / racks
Ditto 25 mm
M
4.00
14.28
Ditto 40 mm
M
7.70
23.02
Ditto 50 mm
M
9.68
31.95
Multiply above piping units by 1.35 for fittings / bends for
M
normal applications
Ditto for congested / complex application use 1.60
M
Supply & install 304L SS pipe 15 mm with screwed joints
M
5.06
9.06
on walls / racks
Ditto 25 mm
M
8.89
10.17
Ditto 50 mm
M
17.04
14.29
Multiply above piping units by 1.35 for fittings /
M
bends for normal applications
Ditto for congested / complex application use 1.60
M
Supply & install UPVC pipe 15 mm with cap joints
M
3.88
7.89
on walls / racks
Ditto 25 mm
M
6.11
8.61
TOTAL
130.38
259.28
262.64
141.11
11.42
14.43
19.45
28.86
37.30
45.55
81.30
102.28
87.83
112.73
30.80
44.01
101.98
36.05
50.88
112.19
16.59
18.28
30.71
41.62
14.12
19.06
31.33
11.76
14.72
Copyright © 2017 Compass International, Inc.
292. | SECTION B4
#
260
261
262
263
264
265
266
267
268
269
270
271
272
DESCRIPTION
UNIT
CONTINUED
Ditto 50 mm
M
Multiply above piping units by 1.35 for fittings /
M
bends for normal applications
Ditto for congested / complex application use 1.60
M
Copper pipe type L 12 mm dia including fittings and erection M
Ditto 19 mm
M
Ditto 25 mm
M
Ditto 40 mm
M
Ditto 50 mm M
Copper pipe type K 12 mm dia including fittings and erection M
Ditto 19 mm
M
Ditto 25 mm
M
Ditto 40 mm
M
Ditto 50 mm M
MATERIAL
LABOR
TOTAL
10.08
- 10.17
- 20.26
-
- 11.92
19.67
29.84
53.37
90.31
13.98
22.90
34.84
60.80
98.50
15.49
21.10
25.71
31.58
37.33
16.11
22.21
27.09
33.45
38.44
27.40
40.76
55.55
84.95
127.64
30.08
45.11
61.92
94.25
136.94
LABOR
Table 9
CSI DIVISION 16 ELECTRICAL
SWITCHGEAR / CLEAN ROOM ITEMS
#
DESCRIPTION
UNIT
MATERIAL
1
Substation, 150 KVA, 1200 AMP, with transformer,
breakers, pad, grounding
Substation, 1000 KVA, 3000 AMP, with transformer,
breakers, pad, grounding
Service switchboard, 600 A, 3PH, 277/480V MCMB,
breakers, bus, meter, enclosure
Distribution, switchboard, 600 A, 3PH, 120/208 V, enclosure, breakers
Distribution, switchboard, 800 A, 3PH, 120/208 V, enclosure, breakers
Distribution switchboard, 400 A, 3PH, 277/480 V,
enclosure, breakers
Transformer, 480/120 V, 3 phase, 500 KVA
Transformer, 480/120 V, 3 phase, 750 KVA
Transformer, 480/120 V, 3 phase, 1,000 KVA
Panel boards, bolt-on breakers, 277/480V, 3PH, 4W,
100 A, 24 circuits
Panel boards, bolt-on breakers, 277/480V, 3PH, 4W,
225 A, 42 circuits
Panel boards, bolt-on breakers, 277/480V, 3PH, 4W, 400 A, 42 circuits
Transformer, 480/120 V, 3 phase, 45 KVA
Ditto 75 KVA
Ditto 100 KVA
Ditto 150 KVA
EACH
57,066.18 57,066.18
EACH
105,687.34 105,687.34
EACH
22,133.06 22,133.06
EACH
7,921.08 7,921.08
EACH
10,045.58 10,045.58
EACH
6,644.82 6,644.82
EACH
EACH
EACH
EACH
28,194.45 39,836.09 47,189.68 3,636.31 28,194.45
39,836.09
47,189.68
3,636.31
EACH
5,566.98 5,566.98
EACH
5,816.51 5,816.51
EACH
EACH
EACH
EACH
5,051.92
6,332.65
7,296.63
8,205.66
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Copyright © 2017 Compass International, Inc.
694.26
971.98
1,180.27
1,402.42
TOTAL
5,746.18
7,304.63
8,476.90
9,608.08
SECTION B4 | 293.
#
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
DESCRIPTION
CONTINUED
Ditto 200 KVA
Ditto 500 KVA
Motors 230 / 460 v 60 Hz 0.50 HP
Ditto 1 HP
Ditto 2.50 HP
Ditto 5 HP
Ditto 10 HP
Ditto 25 HP
Ditto 50 HP
Emergency generator to 30 KW
Emergency generator to 100 KW
Emergency generator to 400 KW
Emergency generator to 750 KW
Emergency generator to 1,000 KW
Automatic transfer switch 400 A
Exit sign, incandescent, battery, surface mounted
Exit sign, incandescent, battery, recessed
Exit sign, fluorescent, battery, surface mounted
Exit sign, fluorescent, battery, recessed
600 V armored cable # 12
Ditto # 10
Ditto # 8
Conduit and wire, in slab, 60 A, 3 CU wire 600 V
THHN #6, 1 CU soft #10, in 1” PVC
Conduit and wire, in slab, 100 A, 4 CU wire 600 V
THHN #2, 1 CU soft #8, in 1” PVC
Conduit and wire, in slab, 225 A, 4 CU wire 600 V
THHN #4/0, 1 CU soft #1, in 2” PVC
Conduit and wire, in slab, 300 A, 4 CU wire 600 V
THHN 350 MCM, 1 CU soft #4, in 3” PVC
Conduit and wire, in slab, 800 A, 6 CU wire 600 V
THHN 500 MCM, 2 CU soft #3/0, in 3” PVC
Conduit and wire, in slab, 1200 A, 16 CU wire 600 V
THHN 350 MCM, 4 bare CU soft #3/0, in 3” PVC
Conduit and wire, 60 A, 3 CU wire 600 V THHN # 6,
1 bare CU soft # 10, in 1” EMT
Conduit and wire, 100 A, 4 CU wire 600 V THHN #2,
1 bare CU soft #8, in 1” EMT
Conduit and wire, 400 A, 4 CU wire 600 V THHN
500 MCM, 1 bare CU soft #2, in 3” EMT
Conduit and wire, 1600 A, 20 CU wire 600 V THHN
400 MCM, 5 bare CU soft # 4/0, in 3” EMT
Conduit and wire, 60 A, 3 CU wire 600 V THHN #6,
1 bare CU soft #10, in 1” GRS
Conduit and wire, 100 A, 4 CU wire 600 V THHN #2,
1 bare CU soft # 8, in 1” GRS
UNIT
MATERIAL
LABOR
TOTAL
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
LF
LF
LF
LF
10,726.64
2,110.59
16,315.62
2,915.95
272.91
104.15
345.82
104.15
420.09
104.15
530.39
152.74
736.73
152.74
1,280.35
201.34
2,635.38
229.11
31,743.55 58,882.53 152,554.73 316,410.89 374,071.04 15,010.67
1,240.47
508.51
127.05
535.34
165.89
508.51
127.05
547.20
165.89
2.27
1.66
3.67
2.36
6.96
4.43
9.95
6.69
12,837.23
19,231.58
377.06
449.97
524.24
683.13
889.47
1,481.69
2,864.49
31,743.55
58,882.53
152,554.73
316,410.89
374,071.04
16,251.14
635.56
701.24
635.56
713.09
3.93
6.03
11.39
16.64
LF
17.53
9.08
26.61
LF
42.31
17.72
60.03
LF
58.65
22.06
80.70
LF
124.14
43.29
167.43
LF
250.00
91.64
341.64
LF
11.58
7.78
19.36
LF
21.08
11.41
32.48
LF
84.46
26.47
110.94
LF
397.33
128.07
525.40
LF
16.20
9.65
25.85
LF
25.84
13.62
39.46
Copyright © 2017 Compass International, Inc.
294. | SECTION B4
#
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
DESCRIPTION
CONTINUED
Conduit and wire, 400 A, 4 CU wire 600 V THHN 500 MCM
1 bare CU soft #2, in 3” GRS
Conduit and wire, 1000 A, 12 CU wire 600 V THHN 400 MCM,
3bare CU soft # 2/0, in 3” GRS
Cable trays ladder type 12”, with ells, tees, 4” drop cover,
uni-strut hangers
Fixture, incandescent, commercial grade, surface mounted,
with junction box, wire, conduit, 100 watt
Fixture, incandescent, commercial grade, surface mounted,
with junction box, wire, conduit, 200 watt
Fixture, fluorescent, commercial grade, recessed,
with junction box, wire, conduit, 2’x2’
Fixture, fluorescent, commercial grade, recessed,
with junction box, wire, conduit, 2’x4’
Fixture, fluorescent strip, surface mounted, with junction box, wire, conduit, 4’, 4 lamp
Fixture, mercury vapor, hi-bay, with junction box, wire,
conduit, 1000 watt
Fixture, metal halide, hi-bay, with junction box, wire, conduit, 400 watt
Fixture, high pressure sodium, hi-bay, with junction box,
wire, conduit, 1000 watt
Perimeter security lights, industrial, 400 watt HPS wall pack,
40’ on center
Perimeter security lights, school, 250 watt HPS wall pack,
30’ on center
Telephone system, warehouse, 10,000 SF
Telephone system, office, 150,000 SF
Fire alarm system, warehouse, 10,000 SF
Fire alarm system, office, 150,000 SF
Public address/intercom system, warehouse, 10,000 SF
Public address/ intercom system, office, 150,000 SF
Security system, warehouse, 10,000 SF
Security system, office, 150,000 SF
Réceptacle, duplex, commercial, standard grade
Receptacle, 100 A, welding, heavy duty
Switch, commercial, single pole
Switch, commercial, double pole
Switch, commercial, three way toggle
Sound system, 12 outlets
Intercom system, 20 outlets
Master clock system, 10 devices
Closed circuit TV
Remote entry card reader
CLEAN ROOM ITEMS Filter Fan 2’ x 4’ with HEPA Filter 650 CFM / 90FPM
18” x 18” x 16” pass thru EP SS (w/o window)
Copyright © 2017 Compass International, Inc.
UNIT
MATERIAL
LABOR
TOTAL
LF
97.51
32.04
129.55
LF
263.27
90.00
353.28
LF
55.65
26.56
82.20
EACH
214.66
134.52
349.18
EACH
240.12
138.69
378.80
EACH
291.30
144.27
435.57
EACH
351.00
161.42
512.42
EACH
369.97
189.82
559.80
EACH
1,223.75
289.94
1,513.69
EACH
882.15
288.59
1,170.74
EACH
1,095.13
327.30
1,422.43
EACH
26.85
8.37
35.22
LF
27.46
9.53
36.99
SUM
SUM
SUM
SUM
SUM
SUM
SUM
SUM
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
EACH
5,432.80 80,898.34 13,166.38 171,148.20 7,124.99 70,623.50 5,167.21 75,805.52 152.70
118.37
749.48
255.72
111.48
83.69
136.72 97.16
135.26
101.63
17,074.24 21,468.37 16,524.29 5,318.57 6,213.29 5,432.80
80,898.34
13,166.38
171,148.20
7,124.99
70,623.50
5,167.21
75,805.52
271.07
1,005.20
195.17
233.87
236.89
17,074.24
21,468.37
16,524.29
5,318.57
6,213.29
EACH
EACH
10,222.38
2,124.67
10,347.16
2,280.66
124.78
155.99
SECTION B4 | 295.
#
DESCRIPTION
UNIT
MATERIAL
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
CONTINUED
Roll up pass thru 36” x 30” x 60” wall mounted EACH
10,751.69
Soft wall Polyurethane 40 mm clear 8’ high
LF
65.62
Acrylic glove box 2 glove 36” x 24” x 20”
EACH
1,329.98
Atmospheric chamber without air lock 36” x 24” x 24”
EACH
4,549.30
Ceiling module, fluorescent illuminators 4,600 FC, 4’ x 2’
EACH
403.13
Ditto flow thru module 3,100 FC
EACH
4,880.10
Portable A/C module 20,000 BTU’s
EACH
5,168.89
Ditto 50,000 BTU’s
EACH
6,704.13
Humidifier 20 CFM 110 V EACH
4,852.01
Horizontal laminar flow station 4’ x 2’6” x 2’6” EACH
8,861.14
Ditto vertical 4”6” x 4’ x 4’ EACH
8,225.54
HEPA filter 2’ x 4’ EACH
1,075.33
Ditto 2’ x 3’
EACH
1,033.88
ULPA filter 2’ x 4’ EACH
1,227.33
Ditto 2’ x 3’
EACH
1,172.06
Clean room dehumidification module 100CFM
EACH
5,006.01
Ditto 250 CFM
EACH
9,731.65
Pass thru chamber S.S. 1’ x 1’ x 1’
EACH
1,405.08
Ditto 1’6” x 1’ 6” x 2’
EACH
2,278.54
Ditto 2’ x 2’ 2’
EACH
2,773.75
Glove box air lock 12” x 12” x 14”
EACH
3,041.98
Ditto 12” x 12” x 16”
EACH
3,113.53
Ditto 16” x 16” x 16”
EACH
3,230.44
Vacuum Antechamber 16” diameter x 24” long (4 ports)
EACH
16,312.09
P-Thru vacuum / nitro oven 120 v / 60 Hz
EACH
11,456.39
Air Handler (High Volume) 3300 CFM 1.5 HP
EACH
2,143.91
HDPE 3,000 gallon Polyethylene tank 90” dia x 130” high
EACH
2,185.06
Ditto 5,000 gallon
EACH
4,674.42
Ditto horizontal 2,500 gallon 60” dia EACH
3,718.99
2 “PVC gate valves with EPDM seat NSF61 150 PSI 120 F
EACH
647.22
4” ditto
EACH
1,195.60
6” ditto
EACH
2,253.12
1” CPVC pressure valves EACH
531.70
2” ditto
EACH
810.65
1” – 3 way CPVC with threaded socket –true union
EACH
170.47
2” ditto
EACH
381.37
4” ditto
EACH
1,313.23
0.50” CPVC solenoid valves with EPDM seals
EACH
745.05
0.75” ditto
EACH
968.86
0.50” Clear PVC pipe (Material only)
LF
1.69 0.75” ditto
LF
2.32 1” ditto
LF
4.46 1.50” ditto
LF
5.44 2” ditto
LF
7.53 4” ditto
LF
22.51 Multiply above by 1.45 - 1.65 to above for fittings
1” CPVC sch 80 (Material only)
LF
2.78 LABOR
TOTAL
187.19
12.48
62.40
93.59
124.78
187.19
187.19
249.60
119.42
238.83
238.83
59.69
59.69
59.69
59.69
238.83
238.83
119.42
119.42
119.42
122.20
122.20 122.20 149.95
149.95
149.95
126.83
126.83
126.83
126.83
126.83
126.83 63.41
95.12
63.41
95.12
95.12
63.41
63.41
10,938.89
78.10
1,392.38
4,642.88
527.91
5,067.29
5,356.09
6,953.72
4,971.43
9,099.97
8,464.37
1,135.02
1,093.58
1,287.02
1,231.75
5,244.84
9,970.48
1,524.50
2,397.96
2,893.17
3,164.18
3,235.73
3,352.64
16,462.04
11,606.35
2,293.86
2,311.89
4,801.25
3,845.82
774.04
1,322.43
2,379.95
595.12
905.77
233.89
476.49
1,408.35
808.46
1,032.27
1.69
2.32
4.46
5.44
7.53
22.51
2.78
Copyright © 2017 Compass International, Inc.
296. | SECTION B4
#
DESCRIPTION
UNIT
MATERIAL
LABOR
TOTAL
CONTINUED
131
2” ditto
LF
9.02 9.02
132
4” ditto
LF
29.07 29.07
133
6” ditto
LF
51.61 51.61
134
Multiply above by 1.45 - 1.65 to above for fittings
135
304 SS Pass through 40” x 40” with window
EACH
17,090.41
253.67
17,344.07
136
316 SS 12g tank 500 gallon 50” dia x 60” high
EACH
14,788.67
95.12
14,883.79
137
316 SS 12g tank 1,000 gallon 70” dia x 70” high
EACH
24,653.12
95.12
24,748.24
138
316 SS 12g tank 1,500 gallon 80” dia x 70” high
EACH
33,152.67
126.83
33,279.50
139
316 SS Agitator 1 HP TEFC 115 / 230 v single speed
EACH
5,289.55
126.83
5,416.37
1” dia shaft 32” long
140
Ditto 1.5 HP 230 v
EACH
6,866.67
126.83
6,993.49
141
Clean room AC module including ductwork, EACH
6,975.96
253.67
7,229.62
EACH
9,250.65
253.67
9,504.32
220 v and controls 20,000 BTU’s
142
Ditto 50,000 BTU’s
143
25 mm dia
M
9.59
5.13
14.72
144
50 mm
M
16.03
7.29
23.32
145
75 mm
M
27.50
11.35
38.85
146
100 mm
M
44.29
UNDERGROUND PVC ELECTRICAL CONDUIT (EXCLUDED EXCAVATION AND BACKFILL)
TRENCH DUCTS WITH COVER (EXCLUDED EXCAVATION AND BACKFILL)
-
17.43
-
-
-
61.72
-
147
6” wide
LF
154.73
15.23
169.97
148
9“ wide
LF
170.51
18.88
189.39
149
12” wide
LF
196.59
20.72
217.31
150
18” wide
LF
236.64
24.37
261.01
151
24” wide
LF
317.95
32.90
350.86
CONCRETE ELECTRICAL VAULTS
-
152
6’ x 6’ x 6’ deep
Each
10,072.58
1,885.56
11,958.14
153
Ditto 9’ x 9’ x 6’ deep
Each
15,472.94
2,737.11
18,210.05
Miscellaneous Site Work
154
Armco galvanized guard rail (2 # rails)
LF
18.75
3.29
22.04
156
Rail spur (standard gauge)
LF
149.19
81.37
230.56
157
3” asphaltic concrete on 4” stone base
SF
3.16
1.59
4.75
158
Ditto 3” on 6” stone base
SF
3.72
1.70
5.43
159
General repairs to bituminous roadway 2” with 4”
LF
81.87
26.72
108.59
stone base, after installing utilities 2’ wide
160
Ditto 3’ wide
LF
130.73
51.01
181.74
161
Ditto 4’ wide
LF
206.97
77.73
284.71
• NOTE: To determine man hour units from the above data source divided labor value by $64.65, this is an average bill out rate for
skilled and unskilled labor (Union / Non Union – Merit Shop), to determine construction rental equipment multiply install value by
6.5%; i.e., the install value contains 6.5% for construction equipment, labor unit man hours should be adjusted accordingly.
Copyright © 2017 Compass International, Inc.
SECTION B5
USA City Location
(Calibration) Factors:
FOR INDUSTRIAL / COMMERCIAL CONSTRUCTION FACILITIES
T
he following values are calibration or
location factors for adjusting values from
Washington D.C. to a specific USA: Location factors are based on 50% - 50% split
of labor and materials applicable for both process
plants and buildings. An example of this is as follows; assume that you have estimated a building
or facility utilizing this publication. The value you
estimate was $6,745,700, that value would be based
on costs for Washington D.C. if the project was to
be built in Anniston, Alabama the cost would be
$6,745,700 X .84 = $5,666,388
LOCATION
ALABAMA
Anniston
Birmingham
Decatur
Dothan
Huntsville
Mobile
Montgomery
ALASKA
Anchorage
Fairbanks
Juneau
ARIZONA
Flagstaff
Mesa
Phoenix
Prescott
Tucson
ARKANSAS
Bentonville
Fort Smith
LOCATION FACTOR
.84
.86
.85
.85
.86
.88
.85
1.25
1.24
1.22
.86
.85
.92
.86
.87
.83
.82
LOCATION
ARKANSAS (CONTINUED)
Little Rock
Jonesboro
Pine Bluffs
CALIFORNIA
Anaheim
Bakersfield
Eureka
Fresno
Long Beach
Los Angeles
Oakland
Oxnard
Riverside
Sacramento
San Diego
San Francisco
San Jose
San Mateo
Santa Rosa
Stockton
Woody
Van Nuys
COLORADO
Colorado Springs
Denver
Ft Collins
Gypsum
Leadville
Vail
CONNECTICUT
Hartford
New Haven
New London
Stamford
LOCATION FACTOR
.83
.82
.82
1.06
1.06
1.06
1.07
1.08
1.14
1.10
1.06
1.06
1.07
1.07
1.19
1.12
1.12
1.11
1.06
1.04
1.06
.92
.94
.92
.90
.91
.90
1.07
1.06
1.06
1.06
Copyright © 2017 Compass International, Inc.
298. | SECTION B5
LOCATION
LOCATION FACTOR
D.C. CITY of WASHINGTON BASE CITY
Washington D.C.
1.00
DELAWARE
Dover
.93
Newark
.95
Wilmington
.96
FLORIDA
Celebration
.92
Daytona
.91
Fort Lauderdale
.87
Gainesville
.89
Jacksonville
.88
Miami
.89
Naples
.88
Orlando
.92
Panama City
.88
St. Petersburg .88
Tampa
.91
GEORGIA
Albany
.92
Athens
.93
Atlanta
.94
Columbus
.91
Macon
.87
Savannah
.87
HAWAII
Honolulu
1.15
IDAHO
Boise
.90
Coeur d’Alene
.89
Great Falls
.88
Idaho Falls
.87
Jerome
.88
Ketchum
.89
Pocatello
.88
Twin Falls
.86
ILLINOIS
Chicago
1.05
Kankakee
.96
Moline
.95
Peoria
.95
Rock Island
.97
Rockford
.94
INDIANA
Evansville.
.94
Fort Wayne
.93
Copyright © 2017 Compass International, Inc.
LOCATION
INDIANA (CONTINUED)
Hammond
Indianapolis
South Bend
Terra Haute
IOWA
Cedar Rapids
Council Bluffs
Des Moines
Davenport
KANSAS
Salina
Topeka
Wichita
KENTUCKY
Bowling Green
Georgetown
Lexington
Louisville
Paducah
LOUISIANA
Baton Rouge
New Orleans
Shreveport
MAINE
Bangor
Bath
Portland
MARYLAND
Baltimore
Hagerstown
Salisbury
Silver Spring
MASSACHUSETTS
Boston
Fitchburg
New Bedford
Lowell
Springfield
Worcester
MICHIGAN
Detroit
Flint
Grand Rapids
Holland
Kalamazoo
LOCATION FACTOR
.94
.95
.93
.93
.88
.89
.90
.88
.85
.86
.85
.87
.86
.86
.87
.86
.92
.93
.90
.89
.89
.87
.97
.93
.92
.97
1.06
1.03
1.04
1.03
1.04
1.02
.94
.92
.93
.91
.92
SECTION B5 | 299.
LOCATION
MICHIGAN (CONTINUED)
Lansing
Saginaw
MINNESOTA
Duluth
Minneapolis
St Cloud
St. Paul
Worthington
MISSISSIPPI
Biloxi
Canton
Hattiesburg
Jackson
Tupelo
MISSOURI
Bowling Green
Columbia
Hannibal
Kansas City
Springfield
St. Louis
MONTANA
Billings
Butte
Missoula
NEBRASKA
Grand Island
McCook
Omaha
NEVADA
Elko
Las Vegas
Reno
NEW HAMPSHIRE
Berlin
Concord
Manchester
Nashua
NEW JERSEY
Atlantic City
Burlington
Cranbury
Elizabeth
Ewing
Flemington
LOCATION FACTOR
.93
.92
.94
.96
.93
.93
.92
.88
.86
.85
.86
.86
.92
.92
.91
.94
.91
.95
.86
.86
.86
.86
.86
.87
.94
.97
.95
.90
.94
.93
.90
.95
.97
.97
1.04
.97
.95
LOCATION
NEW JERSEY (CONTINUED)
Hightstown
Jersey City
Medford
Newark
New Brunswick
Pennington
Princeton
Trenton
NEW MEXICO
Albuquerque
Las Cruces
Santa Fe
NEW YORK
Albany Buffalo
Lake George
New York City
Rochester
Saratoga Springs
Schenectady
Staten Island
Syracuse
Utica
NORTH CAROLINA
Asheville
Charlotte
Greensboro
Kingston
Raleigh / RTP
Wilmington
NORTH DAKOTA
Bismarck
Crosby
Fortuna
Fargo
Minot
OHIO
Akron
Canton
Cincinnati
Cleveland
Columbus
Dayton
Lima
Toledo
LOCATION FACTOR
.97
1.03
.96
1.07
1.05
.95
1.04
1.02
.87
.86
.88
1.01
1.01
.96
1.20
1.05
.98
1.03
1.14
1.02
1.00
.89
.89
.91
.89
.94
.92
.94
.94
.94
.94
.94
.92
.92
.93
.94
.91
.91
.91
.91
Copyright © 2017 Compass International, Inc.
300. | SECTION B5
LOCATION
OHIO (CONTINUED)
Youngstown
Zanesville
OKLAHOMA
Oklahoma City
Ponca City
Tulsa
OREGON
Eugene
Portland
PENNSYLVANIA
Conshohocken Erie
Newtown
Kutztown
Morrisville
New Hope
Philadelphia
Pittsburgh
Pottstown
Quakertown
Reading
Scranton
Yardley
York
West Chester
(PUERTO RICO)
San Juan
RHODE ISLAND
Newport
Providence
SOUTH CAROLINA
Charleston
Columbia
Greenville
SOUTH DAKOTA
Rapid City
Sioux Falls
TENNESSEE
Chattanooga
Clarksville
Cleveland
Jackson
Knoxville
Memphis
Murfreesboro
LOCATION FACTOR
.90
.90
.87
.85
.85
.94
.93
.99
.95
.98
.90
.97
.96
1.06
1.01
.95
.93
.95
.95
.98
.94
.96
.94
.96
.97
.83
.82
.83
.84
.85
.86
.85
.85
.84
.88
.87
.84
Copyright © 2017 Compass International, Inc.
LOCATION
LOCATION FACTOR
TENNESSEE (CONTINUED)
Nashville
Sweetwater
TEXAS
Abilene
Amarillo
Austin
Beaumont / Port Arthur / Sabine Pass
Corpus Christi
Dallas El Paso
Fort Worth
Houston
Kennedy
Lubbock
Midland
San Antonio
Victoria
Waco
UTAH
Ogden
Provo
Salt Lake City
VERMONT
Brattleboro
Burlington
St Albans
VIRGINIA
Chatham
Hopewell
Norfolk
Richmond
Roanoke
WASHINGTON
Bellingham
Ferndale
Seattle
Spokane
Tacoma
WEST VIRGINIA
Charleston
Huntington
Hurricane
Institute
Parkersburg
Wheeling
.87
.85
.89
.89
.91
.92
.90
.93
.88
.91
.94
.89
.89
.89
.91
.90
.90
.90
.90
.92
.93
.95
.93
.85
.90
.87
.91
.87
.93
.92
.97
.94
.93
.89
.88
.87
.88
.86
.89
SECTION B5 | 301.
LOCATION
WISCONSIN
Green Bay
Madison
Milwaukee
WYOMING
Casper
Cheyenne
Gillett
LOCATION FACTOR
.93
.92
.95
.86
.87
.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. Remote locations, such as, Anchorage or Fairbanks
in Alaska, will generally have, to a greater degree,
higher prices compared to lower 48 states comparable 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 STANDARDS
(Washington D.C. – 30 - 40 mile radius = 1.00)
The factors indicated below would be appropriate for ($5 - $100+ million) hi-tech / manufacturing / pharmaceutical type facility. (* Applicable if
the above value is for a “first of its kind” building /
facility (engineering / construction endeavor will initially 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 Refineries, Chemical Plants, Power Stations, Hi-Tech Type
Facilities (Pharmaceutical / Chip Manufacturing
Facilities), these facilities typically contain sophisticated 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, hospitals, office buildings, hotels, shopping malls, roads,
bridges, airports, marine works (jetties / piers) and
warehouses.
Global Location Factors
CONSTRUCTION PRODUCTIVITY & ENGINEERING PRODUCTIVITY V’S USA STANDARDS
COUNTRY
CITY
LOCATION
FACTOR * A
LOCATION
FACTOR * B
CONSTRUCTION
PRODUCTIVITY
ENG / DESIGN
PRODUCTIVITY
Argentina
Australia
Melbourne
Perth
Sydney
Austria
Belgium 0.94
1.00
1.00
1.01
1.07
1.05
0.90
0.97
0.97
0.99
1.01
1.03
1.40 -1.55
1.10 - 1.20
1.10 - 1.20
1.10 – 1.20
1.10 – 1.15
1.10 – 1.15
1.20 – 1.30
1.10
1.10
1.10
1.07
1.05
Copyright © 2017 Compass International, Inc.
302. | SECTION B5
COUNTRY
CITY
LOCATION
FACTOR * A
LOCATION
FACTOR * B
CONSTRUCTION
PRODUCTIVITY
ENG / DESIGN
PRODUCTIVITY
Brazil
Canada
Calgary
Edmonton
Fort McMurray
Halifax
Montreal
Toronto
Vancouver
China
Beijing
Guangzhou
Shanghai
Cyprus
Czech Republic
Denmark
Egypt Finland
France
Nice
Paris
Germany
Berlin
Hamburg
Munich
Greece Hong Kong
Hungary India
Israel Indonesia
Ireland
Cork
Dublin
Galway
Italy
Japan Kuwait
Malaysia
Mexico
The Netherlands New Zealand
Nigeria Norway Oman
Romania
Russia Poland Portugal Saudi Arabia
Singapore
South Africa
0.96
1.05 - 1.10
1.05 - 1.15
1.40 - 1.50
0.97
0.98
0.99
1.01
0.93
0.93
0.94
0.95
0.94
1.12
0.90
1.12
1.02
1.04
1.02
1.04
1.05
0.95
0.94
0.92
0.92
0.94
0.86
0.98
1.01
0.99
0.98
1.09
0.96
0.92
0.93
1.04
1.05
0.97
1.15
0.98
0.94
0.94
0.94
0.92
0.97
0.95
0.94
0.89
1.00 - 1.05
1.00 - 1.07
1.03
0.93
0.94
0.95
0.98 - 1.00
0.86
0.87
0.87
0.92
0.90
1.08
0.85
1.07
0.95
0.98
0.98
0.99
0.99
0.90
0.90
0.87
0.80 - 0.85
0.91
0.74
0.96
0.97
0.96
0.94
1.05
0.91
0.80 - 0.84
0.85 - 0.87
1.00
1.01
0.80 – 0.85
1.06
0.93
0.89
0.91
0.90
0.89
0.88
0.90
0.80 - 0.85
2.25
1.10 -1.20
1.10 - 1.20
1.15 – 1.55
1.10 - 1.20
1.10 - 1.20
1.10 - 1.15
1.10 – 1.15
2.00 – 3.00
2.00 – 3.00
2.00 – 3.00
1.45 - 1.65
1.45 – 1.65
1.10 - 1.20
2.50 – 3.00
1.10 – 1.20
1.10 – 1.15
1.10 – 1.15
1.10 – 1.15
1.10 – 1.15
1.10 – 1.15
1.45 - 1.65
1.20 – 2.00
1.40 – 1.65
2.30 – 3.25
1.20 - 1.40
2.40 – 3.25
1.10 - 1.20
1.10 - 1.20
1.10 - 1.20
1.00 - 1.15
1.15 – 1.30
1.75 – 2.15
1.40 – 2.20
1.65 – 2.15
1.05 - 1.20
1.10 - 1.15
2.50 – 3.50
1.20 – 1.40
2.00 – 3.00
1.45 – 2.00
1.50 – 2.00
1.25 – 1.60
1.25 – 1.55
1.80 – 2.50
1.40 – 1.90
1.35 – 1.90
1.15
1.06
1.06
1.07
1.05
1.05
1.05
1.05
1.10 – 1.25
1.10 – 1.25
1.10 – 1.25
1.20
1.15 – 1.25
1.10
1.25 – 1.40
1.10
1.05
1.05
1.05 – 1.10
1.05 – 1.10
1.05 – 1.10
1.15 – 1.30
1.10 – 1.20
1.10 – 1.25
1.15 – 1.40
1.05 – 1.20
1.20 – 1.40
1.05 – 1.15
1.05 – 1.15
1.05 – 1.15
0.95 – 1.05
1.00 – 1.10
1.25 – 1.40
1.20 – 1.40
1.15 – 1.35
1.05 – 1.15
1.10 – 1.15
1.20 – 1.50
1.10 – 1.25
1.20 – 1.35
1.20 – 1.40
1.10 – 1.40
1.15 – 1.35
1.10 – 1.25
1.20 – 1.35
1.10 – 1.25
1.10 – 1.25
Copyright © 2017 Compass International, Inc.
SECTION B5 | 303.
COUNTRY
CITY
LOCATION
FACTOR * A
LOCATION
FACTOR * B
CONSTRUCTION
PRODUCTIVITY
ENG / DESIGN
PRODUCTIVITY
South Korea
Spain
Sri Lanka
Sweden Switzerland
Taiwan Thailand
Turkey U A E United Kingdom Birmingham
Cambridge
Edinburgh
Liverpool / Speke
London
Manchester
Oxford
United States
Atlanta
Boston, MA
Chicago, IL
Kalamazoo, MI
Houston, TX
Hartford, CT
Los Angeles, CA
New Brunswick, NJ
New York City, NY
Philadelphia, PA
Phoenix, AZ
San Juan, Puerto Rico
Raleigh / RTP, NC
St Louis, MO
Washington DC Benchmarked Value
Venezuela
Vietnam 0.95
0.94
0.84
1.15
1.15
0.94
0.93
0.92
0.97
1.06
1.06
1.06
1.06
1.09
1.06
1.06
0.95
1.08
1.05
0.94
0.93
1.08
1.12
1.06
1.20
1.06
0.96
0.93
0.94
0.95
1.00
0.90
0.92
0.79
1.08
1.07
0.88
0.80 - 0.87
0.86
0.93
1.03
1.03
1.03
1.02
1.04
1.03
1.03
0.92
1.04
1.02
0.91
0.90
1.03
1.10
1.03
1.10
1.03
0.94
0.91
0.92
0.93
0.96
1.20 – 1.35
1.10 – 1.35
1.90 – 3.00
1.15 –1.35
1.10 – 1.25
1.35 – 1.65
1.50 – 2.10
1.30 – 2.20
1.75 – 2.30
1.15 –1.20
1.15 –1.20
1.15 – 1.20
1.15 –1.20
1.15 – 1.20
1.15 – 1.20
1.15 –1.20
1.00**
1.00**
1.00**
0.95**
0.90 – 1.00
1.00**
1.00**
1.00**
1.10**
1.00**
0.95**
See below 1.85
0.95**
1.00**
1.00
1.05 – 1.20
1.10 – 1.25
1.20 – 1.40
1.10 – 1.25
1.10 – 1.25
1.10 – 1.20
1.20 – 1.45
1.20 – 1.50
1.20 – 1.45
1.05 – 1.15
1.05 – 1.15
1.05 – 1.15
1.05 – 1.15
1.05 – 1.15
1.05 – 1.15
1.05 – 1.15
1.00
1.00
1.00
1.00
0.90 – 1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.15 – 1.25
1.00
1.00
1.00
0.93
0.90
0.90
0.86
1.40 - 2.20
1.65 – 2.75
1.20 – 1.40
1.25 – 1.40
** Above Washington D.C. using a hybrid of merit shop labor (a combination of union and non-union labor)
Copyright © 2017 Compass International, Inc.
304. | SECTION B5
PUERTO RICO PRODUCTIVITY V’S
US CONSTRUCTION NORMS
The following is based on 6 # projects ranging in
value from $5 - $55 million built in the last ten
years:
TRADE / SKILL
PUERTO RICO RANGE USA NORM
Site / Civil work /
1.45 – 2.15 (1.75)
U G utilities
Masonry / external
1.50 – 2.20 (1.80)
walls / internal partitions
Structural steel `
1.50 – 2.25 (1.80)
Architectural finishes
1.45 – 2.25 (1.85)
Floors / Walls / Ceilings /
Painting / Special finishes
Major Equipment Setting 1.55 – 2.30 (1.85)
Piping (process & utility) 1.90 – 2.60 (2.15)
HVAC (AHU’ s / 1.45 – 2.15 (1.85)
Ductwork / balancing)
Instrumentation /
1.65 – 2.35 (1.90)
Electrical / BMS
Insulation
1.55 – 2.25 (1.85)
Engineering /
1.15 – 1.25
Design work /
CAD operations
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
• Field labor for new work will average 1.75
– 1.95 for all trades, revamp or alteration work could
be 20% - 50% more.
• The all-in selling rate for a skilled worker is
$42 - $47 per hour.
• The all-in selling rate for an un-skilled worker
is $34 - $39 per hour
USA PRODUCTIVITY FACTORS
(VERSUS GULF COAST):
The normal approach of comparing “process / refinery / manufacturing” construction productivity is
to compare various locations around the USA to a
known basis or benchmark of 1.00 or 100 for Texas
Gulf Coast (open shop labor working from say Mobile, AL in the north and south to say Corpus Christi, TX, - because there is so much historical cost data
that has been collected over the last 20 – 30 years,
the term Gulf Coast productivity is well known and
understood term in the engineering / construction
industry):
STATE
OPEN SHOP / NON-UNION
UNION
Alabama
Alaska
Arizona (Phoenix / Tucson)
Arizona
Arkansas
California (LA / Long Beach / SF / SD / SJ)
California
Colorado (Denver)
Colorado
Connecticut
Delaware
Florida (Jacksonville / Miami / Orlando / St P )
Florida
Georgia (Atlanta)
Georgia
Hawaii
1.00
1.10 – 1.15
1.00
1.00
1.00
1.10
1.05
1.00 - 1.10
1.00
1.15
1.10
1.00 – 1.10
1.00
1.00 - 1.10
1.00
1.10 - 1.15
1.10 - 1.15
1.25 – 1.35
1.10 - 1.15
1.10
1.15
1.20 – 1.30
1.10 - 1.20
1.10 - 1.15
1.05 - 1.10
1.20 - 1.30
1.20
1.15 - 1.20
1.10
1.10 - 1.20
1.10
1.30
Copyright © 2017 Compass International, Inc.
SECTION B5 | 305.
STATE
OPEN SHOP / NON-UNION
UNION
CONTINUED
Idaho
Illinois (Chicago)
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland (Baltimore)
Maryland
Massachusetts (Boston)
Massachusetts
Michigan (Detroit)
Michigan
Minnesota (Minneapolis –St Paul)
Minnesota
Mississippi
Missouri (St Louis)
Missouri
Montana
Nebraska
Nevada (LV / Reno)
Nevada
New Hampshire
New Jersey (Newark / Northern)
New Jersey
New Mexico
New York City
New York
North Carolina
North Dakota
Ohio (Cleveland)
Ohio
Oklahoma
Oregon
Pennsylvania (Philadelphia / Pittsburgh)
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas (Dallas / Houston)
1.05
1.00 - 1.15
1.05
1.05
1.05
1.05
1.05
1.00
1.05 - 1.15
1.05 – 1.10
1.00 – 1.05
1.10 - 1.15
1.00 – 1.10
1.05 - 1.10
1.05
1.05 - 1.10
1.05
0.90 - 1.00
1.05 – 1.10
1.00 – 1.05
1.05 - 1.10
1.05
1.05
1.00 – 1.05
1.05 - 1.10
1.15
1.10
1.05
1.10 - 1.15
1.05 - 1.10
1.05
1.05
1.05 – 1.10
1.05
1.05
1.05
1.10 - 1.15
1.05 - 1.10
1.60 – 1.90
1.05
0.90 - 1.00
1.05
1.00 - 1.05
1.05 - 1.10
1.25
1.20 – 1.30
1.10 - 1.15
1.10 - 1.15
1.10 - 1.15
1.10 - 1.15
1.10 – 1.15
1.10 – 1.15
1.10 - 1.25
1.10 - 1.25
1.10 – 1.15
1.20 – 1.30
1.10 – 1.15
1.20 - 1.30
1.10 - 1.20
1.10 - 1.20
1.10 - 1.15
1.10 - 1.15
1.10 – 1.20
1.05 – 1.15
1.10 - 1.20
1.10 - 1.15
1.15
1.05 – 1.10
1.10 - 1.20
1.20 - 1.30
1.10 - 1.20
1.15
1.30 – 1.40
1.10 - 1.20
1.15
1.15
1.15 – 1.20
1.10 - 1.15
1.15
1.15
1.20 – 1.30
1.10 - 1.20
1.50 – 2.00
1.15
1.05 - 1.10
1.15
1.10 - 1.15
1.10 - 1.20
Copyright © 2017 Compass International, Inc.
306. | SECTION B5
STATE
OPEN SHOP / NON-UNION
CONTINUED
Texas (Gulf Coast) - Base Case this includes Gulfport, Baton Rouge,
1.00 New Iberia, Lake Charles, Beaumont, Port Arthur, Baytown, Texas City and Victoria: (Note: in certain cases i.e. large projects with a lot of repeat /
similar work activities: productivity could be 0.90 – 1.00 say an
average of 0.95)
Utah
1.05
Vermont
1.05
Virginia (Washington D.C.)
1.10 - 1.15
Virginia
1.05
Washington
1.05
West Virginia
1.00 - 1.05
Wisconsin
1.05
Wyoming
1.05
DETAILED DESIGN / ENGINEERING / ARCHITECTURAL AND CM FEES (D.D.E.A & CM)
The tables following are representative D.D.E.A and
CM percentage fees by project size, for professional
services, these fees include Architectural, Civil,
Structural, Building Services, Process, Mechanical,
Instrumentation (I/C) and Electrical services, together with drafting / CAD and H.O. usual reports. The
percentages indicated include EPC / Construction
Management services. D.D.E.A and CM fees may
possibly fluctuate from those indicated depending on
the following notes 1 –10 listed below.
These percentages exclude Front End Studies,
Owner Engineering, Owner Project Management /
Owner Construction Management services. Home
Office Procurement of sophisticated major equipment i.e. the Major Equipment list, Owner provided
equipment, Home Office Project Control activities
(this could range from 0.25% – 1.00% for a full
blown project control effort during the EPC effort).
The CM percentages include site purchasing and site
cost control / planning.
General Notes / Considerations: when selecting
the appropriate Detailed Design / Construction Management value or percentage.
1. Type and size of project (a complex project
Copyright © 2017 Compass International, Inc.
UNION
1.10 – 1.15
(typically all work
is completed on open shop basis) 1.10 - 1.15
1.15
1.20 - 1.30
1.15
1.15
1.00 - 1.15
1.15
1.15
would trend towards higher percentage values).
2. Local or Federal Government contracts
(Complex Contracts together with rigid Terms and
Conditions) would trend towards mid to higher percentage values.
3. Repeat work could tend to optimize percentage values indicated below.
4. Location: (Domestic or Foreign) - distance
from various Home Office(s) could have an impact
on the selected percentages indicated for items such
as travel cost / temporary lodging and associated
expenses.
5. Revamp work could translate into more detailed design activities, depending on availability of
current / existing facility drawings.
6. Degree of technical design complexity and
sophistication of required design deliverables (CAD
drawings, P. & I. D’s and specifications).
7. Fast Track construction effort (over design of
structural elements together with overtime premiums
to the design team).
8. Complex Owner Specifications and procedures would usually carry higher percentages V’s
industry standards.
9. Current market conditions, plenty of work
or lack of work, percentages tend to rise when the
SECTION B5 | 307.
economy is doing well and fall when times are
tough.
10. A new client together with the “new learning
curve” could tend to increase the values indicated
below.
Note: These fees / percentage markup’s are, of
course, subject to negotiation, these fees have an
accuracy of +/-15% and are dependent on client’s required engineering deliverables. (Some clients want
minimal drawings and specifications, some clients
require a significant amount of engineering / design work together with 30%, 60% and 90% design
reviews and specifications).
Detailed Design / Engineering / Architectural & CM Fees
D.D.E.A AND CM PERCENTAGE FEES BY PROJECT SIZE
#
D.D.E.A. & CM SERVICES
GENERAL FACILITIES / CONSTRUCTION CATEGORIES
& REFINERY / CHEMICAL PLANT
TOTAL INSTALLED COST (TIC)
$5 - $150 MILLION +
PERCENTAGE OF TIC RANGE
1
(A) LOW TECH FACILITIES Aircraft Hangars, Manufacturing Facilities
(Not Hi-tech Factories), Hypermarket, Parking Garages, Strip Shopping malls,
Warehouses / Shipping Logistics Centers / Mini Warehouse.
(Big Box type facilities) for applications less than $5 million percentages
could be 10% - 30% more:
For Re-vamp applications consider adding possibly 20% - 50% to new work
percentage value, due to lack of data and possible concealed conditions.
CONSTRUCTION MGMT* on above facilities
(B) MID TECH FACILITIES
Auditorium, Bowling Alley, Motels, Schools, Shopping Mall, 2 – 4 story
Townhouse Buildings) for applications less than $5 million percentages could
be 10% - 30% more:
For Re-vamp applications consider adding possibly 20% - 50% to new work
percentage value.
CONSTRUCTION MGMT* on above facilities
(C). MID / HI - TECH FACILITIES (Low End): Banks, College Laboratories,
Computer Centers Hospitals, 3-5 Star Hotels, Libraries, High End Offices) for
applications less than $5 million percentages could be 10% - 30% more:
For Re-vamp applications consider adding possibly 20% - 50% to new work
percentage value.
CONSTRUCTION MGMT* on above facilities
(D) HI - TECH FACILITIES Research Center / Hi - tech manufacturing facilities,
Clean Room Modules, Pharmaceutical, Manufacturing (Class 1,000 - ISO # 6,
10,000 - ISO # 7 & 100,000 - ISO # 8) Chip Manufacturing facility, Oncology
R&D Facility) for applications less than $5 million percentages could be
10% - 30% more:
For Re-vamp applications consider adding possibly 20% - 50% to new work
percentage value.
API Facilities
Animal Testing / Vivarium
Computer Chip Manufacturing Facility ISO # 4 and similar.
Nanoscale R& D Facility
Oral Solid Dosage (OSD)
3.5% - 7%
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
2.5% - 5%
4.5% - 8.5%
3.5% - 5.5%
4.5% - 10.5%
3.5% - 7.0%
6.5% - 15.5%
8.5% – 16%
8% – 16.5%
8.5% - 18%
8% - 17.5%
7.5% - 14.5%
Copyright © 2017 Compass International, Inc.
308. | SECTION B5
#
D.D.E.A. & CM SERVICES
GENERAL FACILITIES / CONSTRUCTION CATEGORIES
& REFINERY / CHEMICAL PLANT
TOTAL INSTALLED COST (TIC)
$5 - $150 MILLION +
PERCENTAGE OF TIC RANGE
17
18
19
Toxicology R&D Facility
University – Medical R & D facility
For Re-vamp applications consider adding possibly 20% - 50%
to new work percentage value.
Validation Services: CONSTRUCTION MGMT* on above facilities
(E) REFINERY / CHEMICAL FACILITY
(I.S.B.L.) MANUFACTURING PLANT (or 400 – 1,200 M.H.’ s for new and
500 – 1,750 for retrofit per M. E. item see following chart for additional
data points) for applications less than $5 million percentages could be
10% - 30% more:
Auto production facility Tire Manufacturing facility
Bakery
Brewery
Dairy
Cement Plant
Toner facility
Paper production
Power Station 100 – 250 Mw (Coal)
Ditto (Gas)
Ditto (Nuclear)
Ditto (Wind)
Pipelines (onshore)
Pipelines (offshore)
Water treatment facility
Off-sites / OSBL / Utilities
Offshore production Facility / Single Point mooring System
For Re-vamp applications consider adding possibly 20% - 50% to new work
percentage value.
CONSTRUCTION MGMT* on above facilities.
Infrastructure Projects
Airport runway and terminal
Railway (passenger & freight) Electrical transmission system Bridge (rail or vehicle) Major Road (excludes bridges)
Telecommunications tower 150’ high Jetty / Wharf 500’ – 1,000’ with rail, loading cranes and oil, water and
electrical supplies / services.
For Re-vamp applications consider adding possibly 20% - 50% to new
work percentage value.
CONSTRUCTION MGMT* on above facilities.
8% - 16%
7.5% - 15%
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Copyright © 2017 Compass International, Inc.
1% - 6%
4.5% - 8.5%
7.5% - 11.5%
6.5% - 12.5%
6.5% - 12%
6.5% - 11%
6.5% - 11%
6.5% - 10.5%
5.5% - 10%
6.5% - 11.5%
7% - 12.5%
7% - 11%
7% - 10.5%
8% - 13.5%
4.5% - 7.5%
2.5% - 6%
4% - 8%
5.5% - 8.5%
3.5% - 7.5%
9.5% - 17.5%
4.5% - 8%
8% - 14%
4.5% - 8%
7% - 13%
5% - 12%
3.5% - 7%
6% - 12%
8% - 13%
4.5% - 7.5%
SECTION B5 | 309.
* Construction Management includes site staff,
site staff employee expenses and a fee, trailers and
site accommodation are included in Division 1 / Preliminaries. Typically CM firms are charging 2%-5%
fee on the total cost of the construction effort (funds
that pass through there books). EPCM firms working in the oil / gas and power sectors may be able to
charge 7% - 10% as a profit / fee due to the design
difficulty and current (reasonably elevated) workload in this sector.
Procurement costs, the activities related to the
buyout / purchasing of all project materials, major
equipment typically falls in the range of 0.50% –1%
of the TIC cost. Engineering support, i.e. home office and field support during construction, vendor
drawing approvals and Request for Information Q.A.
/ Q.C. submittals / shop drawings etc; typically is
1.25% - 1.75% of the TIC cost.
Union Labor Costs: The charge / bill out rates
is in the right hand column “A”, these rates have
been calibrated to Washington D.C. for other locations use the city location factors previously indicated.
Note these values should be calibrated with the
previous location factors to determine the charge
out rate for each specific location. Typical uplift 60
– 95% (used 85% - “A”).
• Total Fringe Benefits (Vacation, holidays,
sick pay, and employer paid FICA / Unemployment
rates, BRI) is average 15 - 30% of base wage.
• Supervision is average 5 - 10% of base wage.
• Workers Compensation Insurance is average 15
- 20% of base wage.
• Overhead and Home Office Support 15 – 20%.
• Profit is average 10 - 15% of base wage.
• Excludes small tools, typically 2 – 6% of total
all in rate.
• Excludes construction equipment / fueling and
maintenance.
• Excludes general conditions / Division 1 /
Preliminaries (trailers and scaffold etc,) / Excludes
consumables (gases, rags and grease).
TRADE
BASE WAGE “A” ALL-IN RATE
Bricklayer
47.80
Carpenter
46.50
Electrician
55.31
Laborer, General
34.43
Operating Engineer,
48.54
General
Painter, General
42.02
Plumber / Pipe fitter
55.29
Roofer
41.79
Sheet Metal Worker,
54.50
General
Structural Iron Worker
52.28
AVERAGE RATE
88.43
86.03
102.32
63.69
89.80
77.75
102.28
77.31
100.82
96.71
88.52
Construction Management
DATA TABLE
# OF M.E. ITEMS
New Facility
10 - 50
50 - 100
150 - 250
Retrofit / Revamp
10 - 50
50 - 100
150 - 250
“A” DETAILED DESIGN M.H.’ S PER M.E ITEM
(EXCLUDES PM / PC / PROCUREMENT
PM / PC / PROCUREMENT
M.H.’ S PER M.E ITEM
400 – 1,200
400 – 900
350 – 750
15 - 25% of “A”
15 - 25% of “A”
15 - 25% of “A”
500 – 1,750
500 – 1,500
400 – 1,250
15 - 25% of “A”
15 - 25% of “A”
15 - 25% of “A”
Copyright © 2017 Compass International, Inc.
310. | SECTION B5
Open Shop / Non - Union Costs: The charge /
bill out rates is in the right hand column “A”, these
rates have been calibrated to Washington D.C. for
other locations use the city location factors previously indicated. Typical uplift 60 – 95% (used 85%
- “A”).
• Total Fringe Benefits (Vacation, holidays,
sick pay, and employer paid FICA / Unemployment
rates, BRI) is average 15 - 30% of base wage.
• Supervision is average 5 - 10% of base wage.
• Workers Compensation Insurance is average 15
- 20% of base wage.
• Overhead and Home Office Support 15 – 20%.
• Profit is average 10 - 15% of base wage.
• Excludes small tools, typically 2 – 6% of total
all in rate.
• Excludes construction equipment and fueling /
maintenance.
• Excludes general conditions / Division 1 /
Preliminaries (trailers and scaffold etc,) / Excludes
consumables (gases, rags and grease).
TRADE
BASE WAGE “A” ALL-IN RATE
Bricklayer
37.22
Carpenter
39.14
Electrician
45.34
Laborer, General
24.53
Operating Engineer,
37.35
General
Painter, General
30.49
Plumber / Pipe fitter
45.11
Roofer
33.15
Sheet Metal Worker,
37.88
General
Structural Iron Worker
39.14
AVERAGE RATE
68.97
72.51
83.98
45.56
69.21
56.48
83.23
61.36
70.01
72.29
68.36
State Sales Tax / GST: Sales tax on materials is
indicated below. Typically labor is not taxed. Some
businesses may be able to obtain sales tax / exemption forms (certificate) that allow them to claim the
sales tax back from the specific state. Additionally,
local authority / townships / counties may levy additional taxes such as business and operating taxes,
city payroll tax, etc.
Copyright © 2017 Compass International, Inc.
STATE
TAX (%)
Alabama.
Alaska.
Arizona.
Arkansas.
California.
Colorado
Connecticut
Delaware
D.C.
Florida.
Georgia.
Hawaii.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Kentucky.
Louisiana.
Maine.
Maryland.
Massachusetts.
Michigan.
Minnesota.
Mississippi.
Missouri.
Montana.
Puerto Rico
4
Nebraska.
5.5
0
Nevada.
6.85
5.6
New Hampshire. 0
6.5
New Jersey.
7
7.5
New Mexico.
5.125
2.9
New York.
4
6.35
North Carolina. 4.75
0
North Dakota.
5
6
Ohio.
5.75
6
Oklahoma.
4.5
4
Oregon.
0
4.166
Pennsylvania.
6
6
Rhode Island.
7
6.25
South Carolina. 6
7
South Dakota.
4
6
Tennessee.
7
6.15
Texas.
6.25
6
Utah.
5.7
4
Vermont.
6
5
Virginia.
5.3
6
Washington.
6.5
6.25
West Virginia.
6
6
Wisconsin.
5
6.875
Wyoming.
4
7
4.225
0
5.5
STATE
TAX (%)
PROVINCE
TAX (%)
Canada Provinces impose
QST/GST/PST & HST tax
Average Check with each Province
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland & Labrador
Northwest Territories
Nova Scotia
Nunavut
Ontario
PEI
Quebec
Saskatchewan
Yukon
5
12
13
15
15
5
15
5
13
14
14.975
10
5
SECTION B5 | 311.
INFLATION / COST (COMPASS) INDEXES
Base year is 1980
The following historical database is a measure of
inflation / escalation that has occurred in the process
industry since 1980.
(A) Bricks Common / Facing Brick Unit
Prices. Unit Prices are per thousand for fourteen
U.S.A. cities, delivered to site.
(B) Carbon Steel Pipe 1” diameter Schedule
40: Unit Prices are per thousand feet for fourteen
USA cities, delivered to site.
Inflation
DATA TABLE
YEAR
MATERIAL / LABOR INDEX INCREASE
YEAR
MATERIAL / LABOR INDEX INCREASE
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
5.3%
4.6%
4.6%
4.2%
2.4%
1.8%
1.8%
2.7%
2.8%
1.8%
0.7%
1.8%
3.4%
3.2%
3.1%
2.2%
1.8%
1.4%
1.5%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1.2%
1.8%
1.8%
1.9%
1.0%
1.8%
3.6%
3.7%
3.9%
3.8%
0.9%
1.7%
2.6%
2.8%
2.4%
2.4%
2.5%
2.3%
2.1%
Table A
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
COMMON
BRICK
FACING
BRICK
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington, D.C.
Wilmington DE
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
5 – 7.5%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
414
496
470
407
431
401
472
451
478
479
557
484
465
474
550
596
580
530
546
557
573
584
598
577
735
716
521
571
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
Copyright © 2017 Compass International, Inc.
312. | SECTION B5
Table B
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
PIPE 1,000 FOOT
DELIVERED TO SITE
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington, D.C.
Wilmington DE
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
7 – 12.5%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
3,498
3,593
3,471
3,503
3,429
3,674
3,486
3,574
3,731
3,561
3,776
3,487
3,519
3,534
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
10 TONS FABRICATED,
D/D TO SITE
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington, D.C.
Wilmington DE
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
7 – 10%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10 – 15%
10,604
11,926
10,590
10,130
11,252
10,849
10,620
10,560
10,984
10,697
10,885
10,654
11,672
10,649
Table C
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
(C) Reinforcing (Rebar) Prices: Unit prices indicated above are for 10 tons delivered, cut and bent
from a rebar fabricator in the following fourteen
USA cities, spec is A 36 steel.
Copyright © 2017 Compass International, Inc.
(D) Ready Mix Concrete Unit Price Ready
Mix Concrete Price per CY / 10 – 14 CY load:
Listed following are unit prices for ready mix concrete in the following fourteen USA cities. The
prices are for 3,000 PSI and 5,000 PSI grades of
concrete (1:2:4) mix 1 part - cement, 2 parts - sand
and 4 parts - gravel. Add a premium of 5 – 15% for
distances greater than 25 miles from batch plant.
SECTION B5 | 313.
Table D
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
3,000 PSI
5,000 PSI
Atlanta
2.5%
Boston
2.5%
Burlington NJ
2.5%
Chicago
2.5%
Dallas
2.5%
Los Angeles
2.5%
Medford NJ
2.5%
Minneapolis
2.5%
New York City
2.5%
Philadelphia
2.5%
San Francisco
2.5%
Trenton NJ
2.5%
Washington, D.C. 2.5%
Wilmington DE 2.5%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
108
112
106
117
98
102
107
110
136
110
132
105
124
105
127
129
118
129
114
115
119
121
154
124
150
118
136
128
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
CONCRETE BLOCK (8” X 8” X 16”):
100 UNITS DELIVERED TO SITE
Atlanta
2.5%
Boston
2.5%
Burlington NJ
2.5%
Chicago
2.5%
Dallas
2.5%
Los Angeles
2.5%
Medford NJ
2.5%
Minneapolis
2.5%
New York City
2.5%
Philadelphia
2.5%
San Francisco
2.5%
Trenton NJ
2.5%
Washington, D.C. 2.5%
Wilmington DE 2.5%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
170
181
158
162
168
182
158
174
185
154
234
158
183
157
Table E
(E) Lightweight Concrete Block (8” x 8” x
16”): Unit Prices are per hundred for fourteen USA
cities, delivered to site, typically delivered in 100 /
1,000 standard units.
(F) R.C. 24” Diameter Pipe: Unit Prices are
per hundred foot for fourteen USA cities, delivered to site, typically delivered in 20 foot standard
lengths.
(G) Copper Pipe Type “L” Unit Prices. Unit
Prices are per thousand feet for fourteen U.S.A. cities, delivered to site.
(H) Galvanized Steel (Rigid) Conduit 2”
diameter: Unit Prices are per thousand feet for
fourteen USA cities, delivered to site.
Copyright © 2017 Compass International, Inc.
314. | SECTION B5
Table F
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
PIPE 1,000 FOOT
DELIVERED TO SITE
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington, D.C.
Wilmington DE
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
2,434
2,584
2,408
2,452
2,363
2,533
2,418
2,520
2,653
2,456
2,573
2,436
2,461
2,431
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
Table G
CITY
WASTE
DISCOUNT FOR
PREMIUM FOR
LARGE QUANTITY
SMALL QUANTITY
0.50”DIA PIPE
PER 1,000 FT
DELIVERED
TO SITE
2”DIA PIPE
PER 1,000 FT
DELIVERED
TO SITE
Atlanta
2.0%
Boston
2.0%
Burlington NJ
2.0%
Chicago
2.0%
Dallas
2.0%
Los Angeles
2.0%
Medford NJ
2.0%
Minneapolis
2.0%
New York City
2.0%
Philadelphia
2.0%
San Francisco
2.0%
Trenton NJ
2.0%
Washington, D.C. 2.0%
Wilmington DE 2.0%
2,013
2,166
2,085
2,130
2,063
2,205
2,059
2,167
2,304
2,137
2,326
2,053
2,084
2,121
11,467
11,951
11,490
11,562
11,733
12,255
11,788
11,968
12,179
11,820
12,222
11,768
11,794
11,754
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
Copyright © 2017 Compass International, Inc.
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
SECTION B5 | 315.
Table H
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
CONDUIT 1,000 FOOT
DELIVERED TO SITE
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington, D.C.
Wilmington DE
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
5 – 15%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
15 – 20%
6,568
6,860
6,633
6,728
6,480
6,988
6,649
6,773
6,945
6,748
6,934
6,616
6,723
6,703
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
Table I
CITY
WASTE
DISCOUNT
PREMIUM
304 SS 0.065 WALL
FOR LARGE
FOR SMALL
ANNEALED
QUANTITY
QUANTITY
PER 1,000 FT
DELIVERED TO SITE
Atlanta
2.0%
5 – 10%
15 – 25%
4,400
Boston
2.0%
Burlington NJ
2.0%
Chicago
2.0%
Dallas
2.0%
Los Angeles
2.0%
Medford NJ
2.0%
Minneapolis
2.0%
New York City
2.0%
Philadelphia
2.0%
San Francisco
2.0%
Trenton NJ
2.0%
Washington, D.C. 2.0%
Wilmington DE 2.0%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
4,660
4,399
4,427
4,196
4,716
4,379
4,557
4,874
4,354
4,994
4,390
4,449
4,382
316L SS 0.065 WALL
NO POLISH
PER 1,000 FT
DELIVERED TO SITE
6,297
6,651
6,331
6,371
5,744
6,781
6,337
6,463
6,899
6,400
6,646
6,341
6,419
6,337
(I) Stainless Steel 1” diameter: Unit Prices are
per thousand feet for fourteen U.S.A. cities, delivered to site.
(J) Corrugated steel pipe 36” diameter: Unit
Prices are per hundred feet for fourteen U.S.A. cities, delivered to site.
Copyright © 2017 Compass International, Inc.
316. | SECTION B5
Table J
CITY
WASTE
DISCOUNT FOR
LARGE QUANTITY
PREMIUM FOR
SMALL QUANTITY
100 FEET
DELIVERED TO SITE
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington, D.C.
Wilmington DE
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
5 – 10%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
15 – 25%
2,715
3,042
3,017
2,546
2,723
3,147
3,017
3,077
3,213
3,065
3,274
2,955
3,019
2,992
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
MAN HOUR / PRODUCTIVITY MODIFIERS FOR
HIGH RISE BUILDINGS / FACILITIES
Multiply standard man-hours by the following modifiers to compensate for double handling of materials
and equipment / loss of productivity / travel time etc.
Number of Floors in Building
Ground Floor
1.00
01
1.02
02
1.04
03
1.06
04
1.08
05
1.10
10
1.14
Copyright © 2017 Compass International, Inc.
GENERAL REQUIREMENTS / GENERAL
CONDITIONS / DIVISION 1 / PRELIMINARIES
General Conditions will typically range from 4% on
large projects to 15% on small / complicated projects; a reasonable value for General Conditions is
4% - 6%. General Condition items include:
• Scaffolding / Temp Fencing / Barriers / Enclosures / Project Signs
• Hard Standings / Temp Storage Areas / Temp
Parking Areas
• Superintendents / Field Engineers / Clerks /
Secretaries / Timekeepers
• Field Offices / Trailers / Office Supplies / Telephones / Radio’s / Office Furniture / Computers
• Site Layout / Batter Boards / Testing / QA
Activities
• Clean Up / Dumpsters / Final Clean Up / Road
Sweeping
• Permits / As Built Drawings / Postage / Express
Mail
• Temp Utilities
• Video’s / Photographs
• Bonds / Watchmen
SECTION C1
Major Equipment (M.E.)
Budget Pricing
& MAN-HOUR INSTALLATION VALUES
T
he following tables are a listing of current
budgetary pricing – mid 2017 and manhour installation values related to major
equipment items that would many times
be encountered on a typical “process / chemical /
manufacturing” type facility. The man-hour units
contain direct labor hours for receiving, storing, allocating, assembling, installing, aligning and making
ready for any required inspection / testing and (system) handover. The major equipment (M.E.) item is
assumed to be off-loaded a distance not exceeding
(n/e) 0.50 miles – 0.80 km from ultimate operating location (typically 500 feet – 1,000 feet or 250
meters): All millwright installation work documented below is to be executed by skilled journeymen
(millwright’s) familiar with the type of M.E. being
installed, the man-hour units are merit shop - a hybrid of union and non-union workers. The budgetary
dollar values should be considered +/- 15% accurate,
when considering future contingency values.
The Labor Installation Units include the items
listed below, note – some of these work items could
be considered Preliminaries / Division 1 items:
• Hardcore (hard standings) / Temporary staging
areas
• Offloading and temporary storage / Placing on
temporary timber sleepers
• Pick up at lay down area / Temporary weather
protection
• Clean up of any packing materials / Come
along’s / chains & pullies
• Millwright’s work and other related trades in
aligning, leveling and assembling various compo-
nents together, including any required welding and
fitting / marrying pieces together.
The Labor Installation Units exclude the items
listed below:
• Labor and material for foundations (concrete
– rebar, formwork and excavation) and structural
steel / brackets / core drilling and grouting of M.E.
• Associated service / utility piping systems and
final hook up.
• Electrical cable, conduit and hookups, M.E.
supports / brackets / instrumentation
• Expenses associated with the use of construction rental or owned equipment
• Initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals
• M.E. passivation and cleaning (pickling)
• M.E. identification / Stenciling & subsequent
tagging
• H.D. bolts, sleeves and jumpers / final balancing and adjusting finished systems
• Vendor start up assistance, witness testing and
operational tests
• Commissioning / Validation activities / ND
testing
• Scaffolding requirements / Barricades and
safety measures
Productivity Adjustments: Adjust indicated
man-hour units by the following calibration values
or use judgment to determine the appropriate calibration factor:
• Low Productivity (Difficult / cramped working conditions- scattered areas of work): 1.25
• Average Productivity: 1.00
Copyright © 2017 Compass International, Inc.
318. | SECTION C1
• Good Productivity (Decent access to the
work area, a reasonable amount of repeat work /
good working conditions): 0.75
The following list presents the approximate
cost of diverse major equipment commonly used in
refineries / chemical plants / process facilities and
manufacturing buildings. The list indicates F.O.B.
equipment prices and man-hours. Freight costs of
3 - 5% should be added to the equipment values
for North American manufactured items shipped
to North American locations and the same percentages for European manufactured equipment shipped
to European locations, note these percentages need
to be adjusted upwards for any ocean or air freight.
The following is a listing of various material adjust-
ment values (specific to major equipment) calibrated
against carbon steel A 53, A 36, A 515 and A 285C.
The following is a listing of various material
adjustment values (specific to piping) calibrated
against carbon steel A 53, A 36, A 515 and A 285C.
These adjustments could be utilized to determine
various OOM budget variables between differing
material specifications (a word of warning this is
reasonable for the material content however the
installation / welding activities should be separately
evaluated, welding of stainless steel and other exotic
materials may require 10-35% more man hours than
the welding / installation of carbon steel piping systems).This material uplift is dependent upon size of
order, for large orders use the lower uplift.
Various Material Adjustment Values (Piping)
CALIBRATED AGAINST CARBON STEEL A 53, A 36, A 515 & A 285C
MATERIAL
MATERIAL UPLIFT (LOW)
MATERIAL UPLIFT (HIGH)
PVC (Sch 80)
CPVC (Sch 80)
Base Case - Carbon Steel
Material cost / LF for 2” Diameter A 53
(refer to above table for material cost)
C.S. Glass Lined
C.S. Kynar Lined
C.S. Polypropylene Lined (Sch 40)
C.S. TFE
C.S. Rubber Lined
C.S. Saran Lined (Sch 40)
C.S. PVDF Lined (Sch 40)
Aluminum
S. S. 304
S. S. 316
S.S. 304 L (Sch 10)
S.S. 316 L (Sch 40)
FRP
Glass (Solid)
Inconel 625
Titanium (Sch 10)
Zirconium (Sch 10)
Alloy 20 (Sch 10)
Monel (Sch 10)
Nickle (Sch 10)
Hastelloy G
Hastelloy B
0.50
0.60
1.00
0.60
0.70
1.00
2.40
2.00
1.80
2.70
1.15
1.80
2.40
1.25
1.45
1.50
1.20
1.40
1.40
1.75
4.00
4.20
5.50
2.40 3.10
3.10
5.80
5.50
2.70
2.30
2.00
3.30
1.35
2.00
2.60
1.50
1.65
1.75
1.40
1.60
1.60
2.00
4.50
4.60
6.50
2.70
3.40
3.40
6.20
6.00
Copyright © 2017 Compass International, Inc.
SECTION C1 | 319.
General Conversion Values
IMPERIAL TO METRIC UNITS
UNIT
CONVERSION FACTOR
25 US Gallons 1 Inch 1 Square Foot 1 Meter
1 Meter
1 Square yard 1 Cubic foot
1 Foot 1 Yard
1 Mile – 1,760 yards
1 Cubic Yard
10.76 Square Feet:
1 Gallon (Imp.) 1 Acre 1 M3 = 10 HP
°F to °C
1000 kg - 1 Tonne
94.63 L / 20.81 Imperial Gallons
2.54 (cm)
0.09 (M2)
3.28 Lineal Feet (LF)
39.37 inches
0.84 (M2)
0.0283 m3
0.30 (M)
0.91 (M)
1.61 kilometer (km)
0.765 (M3)
1 (M2)
4.55 liters (L)
0.40 hectare (HA)
1.31 Cubic Yards:
7.646 KW
Deduct 32, then multiply by 5,
then divide by 9
0.984 (long) ton
1 (A) General Demolition: The following is
man-hour data specific to the demolition of crude oil
- still heater facility.
• A 100-ton crane was utilized for the total duration.
• Typical range of man-hours to demolish a Refinery / Process Facility 1.50 – 3.50 man-hours / Ton
• Consider scrap value when estimating this type
demolition scope.
• Consider the removal of any piping, E&I, insulation and jackets.
(B) Refurbished Equipment: Use the following percentage of new major equipment to determine
a budget value. Consider any draining of existing
fluids / materials, blinds, temporary supports, removal of any piping, E/I systems and insulation, there
could be additional costs associated with this effort
in that the major equipment would most probably be
shipped to a refurbishing vendor. Excludes cranes,
foundations, grouting, brackets, supports, new piping, cable, conduit and electrical hook-up, refer to
Table 1A
PROCESS EQUIPMENT
SIZE / FEET
WEIGHT / TONS
DAYS
M.H.’S
H 2 Heater
40 x 40 x 25
375 T
15
H 3 Heater
40 x 40 x 25
375 T
15
Stack
160
30 T
6
H 1 Heater
50 x 40 x 20
25 T
5
Stack
135
25 T
3
H 2A Heater
45 x 15 x 10
50 T
7
H 3A Heater
45 x 12 x 7
50 T
4
Stack
90
15 T
2
Total
945T
M.H.’ s per Ton
720
720
350
145
115
265
155
60
2,530
2.67
Table 1B
TYPE OF MAJOR EQUIPMENT
% OF NEW MAJOR EQUIP.
(LABOR & MATERIALS)
Rotating Equipment 5% - 30%
Pressure vessels
5% - 20%
Atmospheric storage
5% - 15%
tanks / vessels
COMMENTS
Consider any new seals, bushings, packing’s, impellers, & new motors etc.
Consider any new nozzles, man-ways, baffles & internals; consider any modifications or removals of agitators.
Consider any new nozzles, man-ways, baffles & any
internals, ladders & walkways.
Copyright © 2017 Compass International, Inc.
320 . | SECTION C1
productivity adjustments on earlier page to calibrate
installation man-hours.
(C) Relocate Major Equipment: Use the following percentages to determine a budget value:
Consider any draining of existing fluids / materials,
blinds, temporary supports, removal of any piping, E/I systems and insulation. Excludes cranes,
new foundations, grouting, brackets, supports, new
piping, cable, conduit and electrical hook-up, refer
to productivity adjustments on page 2 to calibrate
installation man-hours.
Note: It is worthwhile mentioning that in certain
circumstances it may be prudent to consider / utilize
used / 2nd hand major equipment – savings of as
much as 50% - 70% of the cost of new major equipment could be realized together with savings in time
by ordering and delivering this equipment item to
the site.
(D) General / Sundry Manufacturing Related
Equipment: Absorption Water Chiller
• Excludes crane costs and crane operator
Table 1C
TYPE OF MAJOR EQUIPMENT
(A) TRANSPORT COSTS WITHIN COMMENTS
CONTINENTAL USA
(B) REMOVE & PACK COMPONENTS Rotating Equipment (A) 3% - 5%
(B) 5% - 25% of new major equip. cost
Pressure vessels
(A) 3% - 5%
(B) 5% - 20% of new major equip. cost
Atmospheric storage
(A) 3% - 5%
tanks / vessels
(B) 5% - 15% of new major equip. cost
Consider any out of the ordinary
transportation trestles. Give consideration to any local piping, E/I items that could be
utilized. Take into account if any new seals, bushings, impellers, and new motors at
new location that may be required due to the
relocation effort.
Consider any out of the ordinary
transportation trestles. Give consideration
to any local piping, E/I items that could be utilized. Consider any new nozzles,
man-ways, baffles and internals; consider any modifications or removals of agitators at
new location.
Consider any out of the ordinary
transportation trestles. Give consideration to
any local piping, E/I items that could be
utilized. Consider any new nozzles,
man-ways, baffles and any internals, ladders
and walkways at new location.
Table 1D
SIZE / TONS
INSTALLATION MAN-HOURS
$ EQUIPMENT COST
COST PER TON
50
100
250
500
80
96
110
124
114,422
182,126
255,819
416,188
2,288
1,821
1,023
832
Copyright © 2017 Compass International, Inc.
SECTION C1 | 321.
AGGLOMERATION / BRIQUETTE / COMPACTOR
Stainless Steel Compactor with screw feeders and
associated equipment
AGGLOMERATION / BRIQUETTE / COMPACTOR
10” diameter 40 Ton with 25 HP
12” diameter 30 Ton with 30 HP
$33,864
$40,652
$56,218
$67,484
• Add 3 % for freight.
• Add 5% - 10% for labor / construction equipment to install equipment.
• Multiply Production Equipment by a factor of
2 .00 – 3.50, for a completely installed system, this
allows for a foundation (excavation, stone, backfill),
equipment rigging and setting, piping, electrical service, instrumentation, insulation and painting.
• Add 2.5% -7.5% for integration costs.
DOUBLE CONE BLENDER / DRUM:
• Specification: S.S. 27 CF / 1 CY with 15 HP /
7.5 HP -2 speed drive
• Cost per CF - Low: $60.26
• Cost per CF - High: $89.59
• Excludes installation (allow 3 - 7% of purchase
cost as a budget to install unit).
TUNNEL FREEZER (AMMONIA)
10,000 POUNDS PER HOUR
• Specification: 65’ long with compressor,
evaporator, 2 # screw conveyors, to -30 degrees C
• Cost per LF - Low: $5,938
• Cost per LF - High: $9,106
• Excludes installation (allow 3 - 5% of purchase
cost as a budget to install unit)
SPIRAL FREEZER S. S48” WIDE. 480 V, WITH 20
HP (NEMA 4) DRIVE
• Cost per LF - Low: $142.88
• Cost per LF - High: $212.70
• Cost per M - Low: $468.38
• Cost per M - High: $696.12
• Excludes installation (allow 3 - 5% of purchase
cost as a budget to install unit)
PLATE FILTER (RECESSED) 15 HP VACUUM
PUMPS AND 7.5 HP HOT WATER PUMP AND
PLATE CONDENSER.
• Cost per CF - Low: $2,373
• Cost per CF - High: $3,251
• Excludes installation (allow 4 - 7% of purchase
cost as a budget to install unit)
WALK - IN COOLER WITH 2 # EVAPORATORS TO
– 20 C 15’ X 25’ X 10’ HIGH, WITH 6 # GLASS
DOORS:
• Cost per SF - Low: $58
• Cost per SF - High: $85
• Cost per M2 - Low: $622
• Cost per M2 - High: $910
• Excludes installation (allow 4 - 7% of purchase
cost as a budget to install unit)
FREEZER – BALLY BOX, COMPLETE WITH 7.5 HP
CONDENSER AND CONTROL; PANEL:
• Cost per CF - Low: $1.49
• Cost per CF - High: $2.93
• Excludes installation (allow 4 - 7% of purchase
cost as a budget to install unit)
Hot Water Heater (Electric)
DATA TABLE
GALLONS
INSTALLATION MAN-HOURS
$ EQUIPMENT COST
COST PER GALLON
50
100
250
500
1,000
2.5
3.5
6.0
10.0
18.0
3,255
5,326
12,782
21,558
40,090
65.09
53.26
51.13
43.12
40.09
Copyright © 2017 Compass International, Inc.
322. | SECTION C1
Dust Collector / Cartridge Filter Unit
DATA TABLE
SURFACE AREA OF FILTER IN SF / M2
EQUIPMENT COST
COST PER SF
500 / 46.50
$8,619
$17.24
1,000 / 92.90
$11,992
$11.99
2,500 / 232.35
$18,424
$7.37
5,000 / 464.70
$24,671
$4.93
• Excludes installation (allow 5 - 8% of purchase cost as a budget to install unit)
INSTALLATION MAN-HOURS
20
24
32
46
Crusher – (Impact)
DATA TABLE
PRODUCTION RATE
IN TONS PER DAY
HP
EQUIPMENT
COST IN $’S
APPROX. WEIGHT
IN POUNDS
NO OF COST PER TON INSTALLATION
PIECES
MAN-HOURS
2,000
4,000
7,500
25/30
40
50
229,524
294,055
380,946
40,000
60,000
80,000
6/8
6/8
6/8
$114.76
$73.51
$50.79
Screw Conveyor
Bin Activator (CS)
DIAMETER
DIA.
DATA TABLE
DATA TABLE
HP
240
340
440
$ COST PER LF $ COST PER M
4”
5.0
52.87
173.42
6”
7.5
55.56
218.32
9”
10
80.25
263.21
12”
12.5
127.90
419.51
• 5 – 7% of Conveyor purchase cost should provide an adequate installation budget for setting conveyor, includes drives,
frames and final alignment.
HP
$ MATERIAL
COST
24”
1.5
6,791
30”
2.5
8,106
36”
2.5 / 5.0
9,103
42”
2.5 / 5.0
10,133
48”
7.5
11,385
• Multiply by 1.70 for Stainless Steel 304
INSTALLATION
MAN-HOURS
10
12
14
18
28
Air Dryer – Desiccant
CAPACITY
SFCM
EQUIPMENT
COST IN $
APPROXIMATE
WEIGHT IN LBS.
INSTALLATION
MAN-HOURS
NO. OF
ITEMS
COST PER
SFCM
1.0
2.5
5.0
10.0
25.0
2,224
2,857
3,432
3,873
5,956
30
50
70
140
250
4
6
8
12
16
4/6
4/6
4/6
4/6
4/6
2,224
1,143
686
387
238
Horizontal Screw Press 12” Diameter
WITH 15 HP VARIABLE SPEED DRIVE
COST PER LF - LOW
COST PER LF - HIGH
COST PER M - LOW
COST PER M - HIGH
$3,874
$6,271
$12,707
$20,567
• 5 – 7% of Screw purchase cost should provide an adequate installation budget for setting screw press, includes drives, frames
and final alignment.
Copyright © 2017 Compass International, Inc.
SECTION C1 | 323.
Communintors
SOLIDS / LIQUIDS
INLET / OUTLET GALLONS
DIAMETER
PER DAY
$ EQUIPMENT COST
HP
# OF ITEMS
INSTALLATION COST PER HP $
MAN-HOURS
4”
6”
8”
4,732
5,965
7,622
0.5
1.0
1.5
4/6
4/6
4/6
16
20
24
70,000
120,000
180,000
9,463
5,965
5,081
Diesel Generator
SKID MOUNTED UNIT 50 HZ
KW
COST PER KW (LOW)
COST PER KW (HIGH)
INSTALLATION MAN HOURS
650
1,250
2,000
$268
$240
$223
$388
$330
$283
0.07 – 0.15 hours per KW
0.07 – 0.15 hours per KW
0.07 – 0.15 hours per KW
WIND TURBINES
• Commercial scale wind turbines 1.5 - 2.3 MW
cost $1.85 - $3.25 million to install.
• Cost to power average home by wind = $40
- $60K rule of thumb turbines under 100 KW cost
$4,000 - $6,000 per Kilowatt
to calibrate installation man-hours. The man-hour
installation units exclude initial chemical charging,
cooling liquids, refrigerant / anti freeze chemicals,
M.E. passivation and cleaning (pickling) and M.E.
identification / Stenciling & subsequent tagging.
H.P.
$ / H.P.
(2) ACTIVATOR / BIN HOPPER DISCHARGER / BINS
(A) BIN CONED BOTTOM C.S.
0.5 – 2.5
2.5 – 5.0
5.0 – 10.0
$6,600
$3,505
$2,553
CU YARDS / M3
MATERIAL
M.H.’ S
25 / 19
50 / 38
100 / 76
250 / 190
$4,989
$10,457
$21,005
$53,367
6
10
16
44
• Cost per Cu Yard: $200 - $213
• Cost per M3: $262 - $281
(C) BIN / STORAGE HOPPER VERTICAL
C.S. A- 515
CUBIC YARDS COST
/ M3
20 / 15
100 / 76
250 / 190
INSTALLATION $ COST PER
MAN-HOURS CUBIC YARD
$11,886
$25,127
$38,132
8
18
26
608
257
156
• Cost per Cubic Yard $153 – $594 (excluding
(B) BIN DISCHARGER C.S. Installation manlabor installation)
hours include unloading, temporary warehousing,
• Cost per M3 $200 - $792 ditto
site transportation n/e 0.50 miles – 0.80 km, unpackAdd 3% for transport to site for US and overseas
ing, lifting into position, setting, leveling, aligning,
and system check out. Excludes cranes, foundations, applications (ocean freight would increase freight
cost).
setting holding down bolts, grouting, brackets, supAdd Installation Man-hours.
ports, piping, cable, conduit and electrical hook-up,
refer to productivity adjustments on previous page
Copyright © 2017 Compass International, Inc.
324. | SECTION C1
Table 3A
H.P.
MATERIAL COST
HOOKUP MATERIALS
MAN HOURS
10 HP
$17,417
$1,945
28 hours
25 HP
$36,028
$3,175
38 hours
50 HP
$51,548
$4,350
44 hours
COST PER HP
(3) AERATORS
(A) AERATOR SURFACE
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• See chart above.
(B) AIR ENTRAINMENT RING AND AERATOR TOGETHER WITH TOP ENTRY PROPELLER TYPE AGITATOR:
H.P.
$ / H.P.
5.0 – 10.0
10.0 – 25.0
25.0 – 50.0
50.0 – 100.0
$1,560
$971
$766
$726
CHART 4A
Copyright © 2017 Compass International, Inc.
COST PER H.P.
$1,936
$1,568
$1118
$1,118 - $1,936
(4) AGITATORS / BLENDER / MIXERS /
EMULSIFIER
(A) AGITATOR:
Installation man-hours include unloading, temporary warehousing, site transportation 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
cranes, foundations, setting holding down bolts,
grouting, brackets, supports, piping, cable, conduit
and electrical hook-up, refer to productivity adjustments on earlier page to calibrate installation manhours. The man-hour installation units exclude initial
chemical charging, cooling liquids, refrigerant /
anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / Stenciling &
subsequent tagging.
SECTION C1 | 325.
(B) Material / Equipment Budget Cost:
• Propeller: $2,190 - $2,850 / per H.P.
• Turbine: $4,975 - $6,315 / per H.P.
(C) Agitator / Mixer- A285 - 1,800 RPM
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• Add installation man-hours.
• See chart below.
(D) Agitator 316 L – 1,800 RPM
• 2.5 – 5 HP = $7,100 - $7,920 per HP
• 10 – 15 HP = $5,300 - $6,425 per HP
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(E) AGITATOR / MIXER / BLENDER – ROTATING TYPE: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Excludes cranes, foundations, setting
holding down bolts, grouting, brackets, supports,
piping, cable, conduit and electrical hook-up, refer
to productivity adjustments on earlier page to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling
liquids, refrigerant / anti freeze chemicals, M.E.
passivation and cleaning (pickling) and M.E. identification / Stenciling & subsequent tagging.
• See chart below
(F) AGITATOR: Top Mounted Entry C.S.
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours. See chart next page.
Table 4C
HP
$ COST OF EQUIPMENT INSTALLATION MAN-HOURS
$ COST PER H.P. LESS INSTALLATION MAN-HOURS
10
50
100
150
2,466
12,067
23,208
34,116
247
241
232
227
38
52
62
82
Table 4E
VOLUME CUBIC FEET /
H.P.
CUBIC YARD / M3 /
# OF MAJOR PIECES
INSTALLATION MAN-HOURS
ROTATING MIXER
M.H. PER HP
M.H. PER M3
5 / 0.20 / 0.15 (4 / 6)
10 / 0.40 / 0.30 (4 / 6)
25 / 1.00 / 0.76 (6 / 8)
50 / 2.00 / 1.52 (6 / 8)
75 / 2.75 / 2.10 (6 / 8)
100 / 3.70 / 2.80 (6 / 8)
250 / 8.00 / 6.10 (6 / 8)
270 / 10.00 / 7.60 (8 / 10)
32
36
48
60
72
88
120
140
12.8
7.2
6.4
6.0
4.8
3.52
3.43
2.8
213
120
63
39
34
31
19.6
18.4
2.5
5.0
7.5
10.0
15.0
25.0
35.0
50.0
Copyright © 2017 Compass International, Inc.
326. | SECTION C1
Table 4F
HP
MATERIAL
INSTALLATION MAN-HOURS
M.H. PER HP
5
10
15
25
$9,078
$12,801
$15,859
$20,197
22
28
36
42
4.4
2.8
2.4
1.7
HP
MATERIAL
INSTALLATION MAN-HOURS
M.H. PER HP
5
10
15
25
$10,994
$15,445
$18,771
$24,461
22
30
39
48
4.4
3.0
2.6
1.9
HP
MATERIAL
INSTALLATION MAN-HOURS
M.H. PER HP
5
10
15
25
$13,113
$18,758
$22,924
$31,393
24
35
39
51
4.8
3.5
2.6
2.0
Table 4G
Table 4H
Table 5
REF
TYPE OF AIR CONDITIONING
$ COST PER TON
A
B
C
D
E
F
G
H
I
J
K
L
Accumulation / multi-zone heating & cooling
Cooling unit(s) rooftop mounted
Air cool steam or hot water coil (packaged)
Rooftop mounted heating & cooling multi-zone
Ditto with electric baseboard heating
Ditto with hot water baseboard heating
2 Pipe FCU
4 Pipe FCU
Refrigeration compressor heating & cooling
Ditto absorption / combination unit
Chilled water (Refrigeration Absorption)
Air Conditioning (Low – High range per ton)
AIR CONDITIONING (HVAC) COST PER SF
Admin offices
Industrial Bldg / Factory
Hospital
Research Lab (non classified)
2,330
2,605
3,915
4,600
5,435
7,545
$3,940 - $5,320
$4235 - $5,740
6,505
7,485
8,615
$2,295 - $8,560
$ / SF
$15.15 - $27.85
$10.05 - $14.85
$15.00 - $27.90
$26.40 - $60.00
M
N
O
P
Copyright © 2017 Compass International, Inc.
SECTION C1 | 327.
(G) AGITATOR Top Mounted Entry S.S. 304.
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
cranes, setting holding down bolts, foundations,
grouting, brackets, supports, piping, cable, conduit
and electrical hook-up, refer to productivity adjustments on earlier page to calibrate installation manhours.
• See chart previous page.
(H) AGITATOR Top Mounted EntryMonel:Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours.
• See chart previous page.
(5) AIR CONDITIONING PER TON
BUDGET PRICING
Includes labor / material (ductwork & controls)
• See chart previous page.
(A) Air Conditioning Cost Comparison: 2
Pipe Fan Coil Unit system V’s 4 Pipe Fan Coil Unit
system Cost Model 244,500 SF Mixed use facility
Offices / Apartments / Hotel on 7 floors
• See chart below.
(B) Axial Fan / Vane (with adjustable pitch):
1,000 CFM $630 - $1,020
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• See chart below.
(C) Air Conditioner (D-X) Roof Mounted Unit
(excludes hook materials)
• Cost per Ton $1,200 - $1,625
• Man hours per ton 0.60 – 1.60
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• See chart below.
(D) Fan Horizontal Coil Unit with Hydronic
Heating – cooling (2-pipe system)
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• See chart next page.
Table 5A
SYSTEM
SF
M2
$ SF COST
$ M2 COST
2 Pipe FCU system
4 Pipe FCU system
244,500
244,500
22,723
22,723
$30.11
$32.98
$324
$355
Table 5B
Table 5C
CFM
H.P.
MAN HOURS
5,000
10,000
25,000
50,000
2.5
5
10
15-20
6
8
14
28
$ COST
TONS
MAN HOURS
$ COST
$5,062
$14,481
$25,481
$31,755
5
10
15
20
25
50
8
11
14
16
22
30
$7,962
$16,133
$21,267
$25,039
$32,555
$60,344
Copyright © 2017 Compass International, Inc.
328. | SECTION C1
Table 5D
CFM
$ EQUIP.
250
500
1,000
2,500
5,000
$1,070
$1,619
$2,625
$8,792
$10,986
MAN HOURS HOOK UP MATERIAL
4
5
6
8
12
$150
$150
$150
$250
$250
Table 5E
CFM
$ EQUIP.
250
500
1,000
2,500
5,0000
$1,265
$1,759
$2,713
$6,371
$11,244
MAN HOURS HOOK UP MATERIAL
4
5
6
8
12
$150
$150
$150
$250
$250
Table 5F
CFM
$ EQUIP.
250
500
1,000
2,500
5,0000
$1,269
$1,642
$2,846
$6,729
$11,953
MAN HOURS HOOK UP MATERIAL
4
5
6
8
12
$150
$150
$150
$250
$250
Table 5G
CFM
$ EQUIP.
250
500
1,000
2,500
5,0000
$1,331
$1,945
$3,020
$7,003
$12,510
MAN HOURS HOOK UP MATERIAL
4
5
6
8
12
$150
$150
$150
$250
$250
Table 5H
TONS
$ EQUIPMENT INSTALLATION MAN HOURS
5
10
15
20
25
50
$8,037
$16,645
$21,389
$25,867
$33,015
$66,120
8
11
14
16
22
30
Copyright © 2017 Compass International, Inc.
(E) Fan Horizontal Coil Unit with Hydronic
Heating – cooling (4-pipe system): Add 3% for
transport to site for US and overseas applications
(ocean freight would increase freight cost).
(F) Ditto Vertical – heating / cooling (2 pipe
systems): Add 3% for transport to site for US and
overseas applications (ocean freight would increase
freight cost).
(G) Ditto Vertical – heating / cooling (4 pipe
systems: Add 3% for transport to site for US and
overseas applications (ocean freight would increase
freight cost).
(H) Air Conditioner (D-X) Roof Mounted Unit
(excludes hook materials)
• Cost per Ton $1,322 - $1,607
• Man hours per ton 0.60 – 1.60
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(I) Air Coolers, C. S. A 515: Add 3% for transport to site for US and overseas applications (ocean
freight would increase freight cost).
• See chart next page.
(J) Miscellaneous Costs: Add 3% for transport to site for US and overseas applications (ocean
freight would increase freight cost).
• See chart next page.
(6) AIR DRYERS:
(A) AIR DRYERS: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up,
refer to productivity adjustments on earlier page
to calibrate installation man-hours. The man-hour
installation units exclude initial chemical charging,
cooling liquids, refrigerant / anti freeze chemicals,
M.E. passivation and cleaning (pickling) and M.E.
identification / stenciling & subsequent tagging.
SECTION C1 | 329.
Table 5I
S.F.
H.P.
SHIPPING WEIGHT
IN TONS
$ EQUIPMENT COST
INSTALLATION
MAN-HOURS
$ COST PER S.F.
EXCL INSTALLATION)
500
1,000
2,000
2,500
2.5
7.50
15
15/20
5.50
9
15
18
48,942
65,497
95,232
104,969
154
182
210
254
98
65
48
42
Table 5J
UNIT TYPE
$ EQUIPMENT COST
INSTALLATION MAN-HOURS
Self contained through wall units cooling only, 8,000 BTU’s 120 volt
Thru wall units 0.5 – 2.5 Ton with electric heat
Roof top gas fired multi-zone 1 – 50 Ton
FCU 2 pipe boiler / chiller 10 – 250 Ton
FCU 4 pipe boiler / chiller 10 – 250 Ton
FCU Floor or ceiling mounted units 1 ton
Ditto 2.5 ton
Ditto 5 ton
Multi-zone Rooftop H/C including dampers and controls
10 – 100 ton
Reheat Coils (Electrical) 5 kw material Ditto 10 kw
Ditto 15 kw
Ditto 20 kw
Ditto 25 kw
Ditto 50 kw
$383
2.5 hours
$3,920 - $4,140 per Ton
$4,700 - $4,970 per Ton
$5,200 - $5,550 per Ton
$5,650 - $6,060 per Ton
$588
$1,500
$2,525
$1,990 - $2,420 per ton
included
included
included
included
included
included
included
included
$1,580
$2,115
$2,260
$2,885
$3,030
$4,120
3.50 hours
14 hours
16 hours
18 hours
18 hours
22 hours
(B) Air Dryer, C S A 285C:
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• Add installation man-hours.
(7) AIR HANDLER UNITS:
(A) AIR HANDLERS: includes coils, dampers,
controls, etc.
• See chart next page.
(B) CONCEPTUAL ESTIMATING for budgeting Air handling type equipment.
• See chart next page.
Table 6A
CAPACITY / TONS
MAN HOURS
M.H. PER HP
1
2.5
5
10
25
22
34
42
64
125
22
13.6
8.4
6.4
5.0
Table 6B
CFM
$ EQUIP.
COST 5,000 232,650
10,000 460,981
15,000 685,503
INSTALLATION COST PER
MAN-HOURS CFM
428
845
1,580
46.53
46.10
45.70
Copyright © 2017 Compass International, Inc.
330. | SECTION C1
Table 7A
CFM
WEIGHT IN POUNDS / KG
M.H.’ S
M.H. PER POUND
75,000
100,000
10,500 – 4,775
14,500 – 6,590
138
164
0.013
0.011
Table 7B
SYSTEM
UNIT COST OR MAN HOURS
Air Handlers
Fans & Blowers
Exhaust Fans
Housekeeping vacuum system
Dust Collectors
Cyclone Dust Collector
Bag Filter / Electrostatic unit
16,000 CFM Air Handler 2017
Purchase Cost Equipment Only = $71,050
$3.70 - $8.10 per CFM (Equipment Only)
$3.05 - $5.95 per CFM. Ditto
$2.30 - $4.50 per CFM. Ditto
$32.30 - $47.60 CFM. Ditto
$33.60 - $49.60 CFM. Ditto
14 – 16 man-hours / per ton to install
26 – 31 / man-hours per ton to install
$4.44 per CFM
(8) BALL MILLS
(A) BALL MILL: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Installation man-hours exclude
installation of packing’s, internals, and brackets and
any special testing / inspection if required. Excludes
cranes, setting holding down bolts, foundations,
grouting, brackets, supports, piping, cable, conduit
and electrical hook-up, refer to productivity adjustments on earlier page to calibrate installation manhours.
(9) BAGHOUSE
(A) BAGHOUSE: C.S.: Installation man-hours
include unloading, transportation n/e 0.50 miles –
0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Installation
man-hours exclude installation of trays, packings,
internals brackets and any special testing / inspection
if required. Excludes cranes, foundations, setting
holding down bolts, grouting, brackets, supports,
piping, cable, conduit and electrical hook-up, refer
to productivity adjustments one earlier page to calibrate installation man-hours. See chart next page.
Copyright © 2017 Compass International, Inc.
Table 8A
TONS / $ EQUIPMENT INSTALLATION M.H.’ S
HOUR COST
M.H.’ S
PER TON
10
25
50
100
36,708
89,032
178,211
328,646
42
94
174
314
4.20
3.76
3.48
3.14
(10) BLOWERS / FANS
(A) BLOWERS (SKID MOUNTED): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Includes thermostat,
holding brackets and fuel pump: Excludes cranes,
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on
earlier page to calibrate installation man-hours.
• See chart next page.
(B) FANS & BLOWERS CENTRIFUGAL
(PACKAGED-SKID MOUNTED / INDUSTRIAL
APPLICATION): Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into
SECTION C1 | 331.
Table 9A
CAPACITY / CFM
$ EQUIPMENT
# OF SHIPPING PIECES
MAN-HOURS
$ COST PER CFM
1,000
2,500
5,000
10,000
20,000
25,000
50,000
40,306 56,670 74,898 95,338 112,039 127,143 154,817 8 to 12
8 to 12
8 to 12
8 to 12
8 to 12
8 to 12
8 to 12
20
32
42
56
120
140
156
40.31
22.67
14.98
9.53
5.60
5.09
3.10
Table 10A
H.P.
BELT DRIVE (M.H.’S)
DIRECT DRIVE (M.H.’S)
10
15
20
1.6
1.0
0.8
1.75
1.40
0.85
Table 10B
VOLUME CUBIC FEET
1,000’S / M3
APPROXIMATE WEIGHT
POUNDS / KG
NO. OF MAJOR INSTALLATION
PIECES
MAN HOURS
M.H.’ S PER CFM
1,500 / 42
2,000 / 56
3,000 / 85
5,000 /141
10,000 / 283
15,000 / 424
25,000 / 707
50,000 / 1,414
75,000 / 2,120
100,000 / 2,827
150,000 / 4,240
250,000 / 7,068
100 - 45
150 - 68
200 - 90
250 - 115
400 - 180
600 - 275
900 - 410
1,500 - 680
2,100 - 955
3,000 - 1,365
4,000 - 1,820
6,000 - 2,730
3 / 5
3 / 5
3 / 5
3 / 5
3 / 5
3 / 5
3 / 5
3 / 5
5 / 10
5 / 10
5 / 10
5 / 10
2.66
3.00
2.66
2.00
1.20
0.93
0.64
0.48
0.48
0.48
0.48
0.38
position, setting, leveling, aligning and calibrating
equipment and system check out. Includes thermostat,
holding brackets and fuel pump: Excludes cranes,
foundations, setting holding down bolts, grouting,
brackets, supports, piping, fixing / adjustment of inlet
vane controls systems, belts, electrical motors, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours. The man-hour installation units exclude
4
6
8
10
12
14
16
24
36
48
72
96
initial chemical charging, cooling liquids, refrigerant
/ anti freeze chemicals, M.E. passivation and cleaning
(pickling) and M.E. identification / Stenciling & subsequent tagging.
(C) BLOWERS & FANS: Centrifugal: Installation man-hours include unloading, temporary
warehousing, site transportation n/e 0.50 miles –
0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Includes
Copyright © 2017 Compass International, Inc.
332. | SECTION C1
thermostat, holding brackets and fuel pump: Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up: Typically is shipped
in 6 / 9 major pieces, refer to productivity adjustments on earlier page to calibrate installation manhours.
Table 10C
VOLUME C.F.M. APPROXIMATE
WEIGHT LBS / KG
MAN HOURS
1,000
5,000
10,000
25,000
50,000
75,000
100,000
150,000
4
8
12
24
44
72
96
138
70 - 32 185 - 85 315 - 145
560 - 255
880 - 400
1,210 - 550
2,200 - 1,000
3,000 - 1,365
(D) FANS CENTRIFUGAL VENTURI TYPE:
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Includes
thermostat, holding brackets and fuel pump: Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on page 2 to calibrate installation manhours. See chart below
(11) BLENDERS
(A) Blender O.O.M. / Equipment Cost
Table 11A
SIZE
$ COST RANGE
25 CF
50 CF
$137,200 - $191,200
$250,200 - $330,650
(12) BOILERS:
(A) BOILER: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Refer to item above for items included in
installation man-hours. Excludes cranes, foundations, setting holding down bolts, grouting, brackets,
supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on earlier page
to calibrate installation man-hours. The man-hour
installation units exclude initial chemical charging,
cooling liquids, refrigerant / anti freeze chemicals,
M.E. passivation and cleaning (pickling) and M.E.
identification / stenciling & subsequent tagging.
• 0.085 – 0.115 M.H.’S per pound of steam produced.
(B) BOILER: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Refer to item above for items included
Table 10D
VOLUME C.F. PER MINUTE
WEIGHT IN POUNDS / KG
MAN-HOURS
M.H. PER HP
100 (5 HP)
250 (7.5 HP)
500 (10/15 HP) 750 (15/25 HP) 1,000 (25/35 HP)
2,500 (35/50 HP)
5,000 (50/75 HP)
10,000 (75/100 HP)
150 - 68 (3/5 pieces)
350 - 160 (ditto) 570 - 260 (ditto) 780 - 355 (ditto) 1,000 - 455 (ditto)
1,500 - 680 (ditto)
2,200 – 1,000 (ditto)
3,000 – 1,365 (ditto)
14
28
46
62
74
120
170
220
2.8
3.7
3.7
3.1
2.4
2.8
2.7
2.5
Copyright © 2017 Compass International, Inc.
SECTION C1 | 333.
in installation man-hours. Excludes cranes, foundations, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours.
Weight in Tons
1 – 10
10 – 20
20 – 40
Man-Hours per Ton
5.22
3.84
2.46
(C) BOILERS ELECTRIC - HYDRONIC
TYPE: Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Refer to item above for items included in installation
man-hours. Excludes cranes, foundations, setting
holding down bolts, grouting, brackets, supports,
piping, cable, conduit and electrical hook-up, refer to
productivity adjustments on earlier page to calibrate
installation man-hours.
Table 12C
PRODUCTION
INSTALLATION MAN HOURS
MBT’ S PER
MAN HOURS
PER MBT’ S
HOUR / KW
PER HOUR / KW
10 / (5/10)
25 / 6 ditto
50 / 12 ditto
75 / 24 ditto
100 / 24 ditto
125 / 36 ditto
150 / 48 ditto
0.45
0.24
0.12
0.13
0.12
0.12
0.112
4.5
6
6
10
12
16
19
(D) BOILER Gas Fired Cast Iron (Commercial): Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Installation cost includes boiler, controls, 100 / 150
foot of 1”/ 2” local C.S. piping, fittings and valves,
insulation, vent chimney and electrical hook-up.
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours.
• See table below.
(E) BOILER FLUE / VENT / CHIMNEY /
CS (A 36 / A285): Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Typical heights of boiler chimney’s
range from 30’ to 120’, for height’s over 120’ add
15% to man hour units indicated below, man hour
units include installing steel guying / wire and guying connections. Excludes cranes, refractory work
/ fire brickwork, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up:
• See table next page.
Table 12D
MBH / NET IBR
# OF PIECES
WEIGHT POUNDS
MAN-HOURS
M.H. PER POUND
150
250
500
1,200
2,000
5/8
Ditto
Ditto
Ditto
Ditto
1,350
1,700
2,750
6,350
10,570
18
24
32
48
72
.013
.014
.012
.008
.007
Copyright © 2017 Compass International, Inc.
334. | SECTION C1
Table 12E
FLUE DIAMETER
WALL THICKNESS
POUNDS
WEIGHT PER
10 L.F. POUNDS
MAN-HOURS PER
10 FT SECTION
M.H. PER
POUND
12
.20
18
.25
24
.25
30
.25
36
.25
42
.25
48
.37
60*
.40
72*
.40
* Includes gussets and stiffeners
380
580
630
830
940
1,140
1,590
1,990
2,880
3.00
4.50
5.00
5.50
8.00
9.50
12.50
16.50
19.50
.007
.007
.007
.006
.008
.008
.008
.008
.007
(F) GUYED STACKS
(G) BOILERS GAS FIRED: Installation manhours include unloading, temporary warehousing,
site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning,
and system check out. Cast iron gas fired boilers
consist of automatic gas valve, fail safe type pilot
light (igniters), manual shut-off valve / safety valve,
drain valve, low water cut-off device, gauge / site
glass, steam pressure gauge and other minor miscellaneous trim. Boilers are complete package units
including an automatic temperature control system,
electrically they are factory wired for hook-up / connection to 240 volt power supply. Excludes cranes,
refractory work, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours. The man-hour installation units exclude
initial chemical charging, cooling liquids, refrigerant
/ anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling &
subsequent tagging.
(H-1.2 & 3) CAST IRON BOILER SECTIONAL UNITS: See graph next pages.
Copyright © 2017 Compass International, Inc.
Table 12F
TONS
M.H.’S PER TON
1 – 10
10 – 20
20 – 40
12.4
9.3
8.1
Table 12G
THOUSAND BTU’ S
PER HOUR / WEIGHT
# OF PIECES
INSTALLATION M.H.’ S PER
MAN-HOURS POUND
500 (4,650 lb) 5/9
600 (5,600 lb) 5/9
750 (6,600 / 7,000 lb) 10+
1,000 (7,700 / 9,500 lb) 10+
1,500 (10,000 lb) 10+
2,000 (13,500 + lb) 10+
54
66
84
100
114
148
.012
.012
.012
.012
.011
.011
SECTION C1 | 335.
CAST IRON BOILERS - HEAVY OIL FIRED
60
0
20
40
MAN HOURS
80
100
120
12H-1
0
50
100
250
HORSEPOWER
CAST IRON BOILERS - GAS OR OIL FIRED
100
80
60
40
20
0
MAN HOURS
120
140
12H-2
12H-2
0
50
100
250
HORSEPOWER
Copyright © 2017 Compass International, Inc.
336. | SECTION C1
CAST IRON BOILERS - LIGHT OIL FIRED
60
0
20
40
MAN HOURS
80
100
120
12H-3
12H-2
0
50
100
250
HORSEPOWER
(I) Re boiler / Kettle: (150 PSIG, Tube Material C. S. A 515, Shell Material C. S. A 285C, Design
Temperature 600 Deg F):
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• See chart next page.
(J) Package Boiler, C S A 285C, and 250
PSIG
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• Add installation man-hours.
• See chart next page.
(13) BOX HEATER
(A) Box Type Heater Cabin CS / 300 PSI: Cost
per 1 Million BTU’s $36,300 - $44,600
Copyright © 2017 Compass International, Inc.
(14) BREAKERS (IMPACT)
(A). BREAKERS: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:
Typically is shipped to site in 3 / 5 major pieces,
refer to productivity adjustments on earlier page
to calibrate installation man-hours. The man-hour
installation units exclude initial chemical charging,
cooling liquids, refrigerant / anti freeze chemicals,
M.E. passivation and cleaning (pickling) and M.E.
identification / stenciling & subsequent tagging.
SECTION C1 | 337.
Table 12I
S. F. / M2 TRANSFER AREA
SHIPPING WEIGHT
IN TONS
$ COST OF
EQUIPMENT
INSTALLATION $ COST PER S.F.
MAN-HOURS
500 / 46.46
1,000 / 93
2,500 / 232
5,000 / 465
1.75
4
8.5
15
$20,038
$38,888
$60,398
$95,375
18
37
45
54
$40.08
$38.89
$24.16
$19.07
Table 12J
POUNDS PER HOUR
SHIPPING WEIGHT
IN TONS
$ COST OF
EQUIPMENT
INSTALLATION
MAN-HOURS
$ COST PER POUND
5,000
10,000
100,000
500,000
8.5
18
57
145
$69,931
$131,380
$441,643
$1,754,196
164
314
788
1,150
$13.99
$13.14
$4.42
$3.51
Table 14A
H.P.
APPROX WEIGHT/ LBS - KG
# OF PIECES
M.H.’ S
M.H’ S PER HP
25
50
75
100
3,400 – 1,545
7,100 – 3,225
8,900 – 4,045
12,300 – 5,590
3 / 5
3 / 5
3 / 5
3 / 5
21
31
42
54
0.84
0.62
0.56
0.54
(B) Breaker / Impact Hammer – Crusher 250 /
300 HP A – 515 CS
• Cost per pound $4.95 - $6.75
• Cost per Kg $10.90 - $14.85
• Cost per HP $1,160 - $1,500
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(15) CENTRIFUGE:
(A) CENTRIFUGE / EXTRACTORS CENTRIFUGAL (CONSTANT) TYPE (c / w controls): Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out. Includes thermostat, holding brackets and fuel pump:
Excludes cranes, foundations, setting holding down
Table 15A
VOLUME G.P.M.
(APPROX WEIGHT
IN POUNDS)
# OF PIECES
INSTALLATION M.H.’ S PER
MAN-HOURS POUND
5 (2,450) ditto
10 (3,570) ditto
25 (7,700) ditto
50 (8,650) ditto
75 (10,000) ditto
100 (11,500+) ditto
250 (30,000+) ditto
98
142
302
342
462
628
1,200
.04
.04
.04
.04
.04
.04
.04
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours.
Copyright © 2017 Compass International, Inc.
338. | SECTION C1
(B) Centrifugal Air Compressors- with motor:
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(C) Centrifugal Pump, C S API 100 Deg F,
1,800 Motor
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• If pumps and motor are skid mounted multiply
above units by 0.85.
• Cost range is $24.96 - $60.69 per GPM
(D) Centrifugal Compressor C.S. – 100 PSI
• Cost range is $296 - $2,461 per HP.
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(16) CHILLER:
(A) ABSORPTION WATER CHILLERS:
Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final
location n/e 0.50 miles – 0.80 km, installation on
base, adjusting drive alignment, calibrating and system check out. Man-hours exclude cranes, foundations, setting holding down bolts, grouting, brackets,
supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on earlier page
to calibrate installation man-hours. The man-hour
installation units exclude initial chemical charging,
cooling liquids, refrigerant / anti freeze chemicals,
M.E. passivation and cleaning (pickling) and M.E.
identification / stenciling & subsequent tagging.
(B) CHILLERS, PACKAGED WATER HOTWATER OR STEAM TYPE: Includes installation
of motor and drives, controls: Excludes crane rental,
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on
Copyright © 2017 Compass International, Inc.
Table 15B
CFM
$ EQUIP. COST INSTALLATION MAN-HOURS
5,000 $397,164
10,000 657,064
25,000 $1,191,888
420
710
1,334
Table 15C
GPM
$ EQUIP. COST INSTALLATION MAN-HOURS
100
3,000
$6,069
$74,869
420
710
Table 15D
H.P.
$ EQUIPMENT $ COST
INSTALLATION
COST
PER H.P. MAN-HOURS
25
50
100
250
500
1,000
$61,518
$66,317
$73,561
$108,781
$169,360
$296,051
$2,461
$1,326 $736 $435
$339 $296 38
44
54
74s
106
184
Table 16A
RATINGS TON
$ EQUIPMENT INSTALLATION
COST
MAN-HOURS
25
50
100
250
$20,945
$39,991
$47,289
$110,825
30
38
46
108
Table 16B
TONS
$ COST / EQUIPT.
MAN-HOURS PER TON
100
150
200
250
500
1,000
2,500
135,589 176,769 199,210 216,347
318,176
503,814 690,737
3.2
2.6
2.33
2.14
1.45
0.95
0.55
SECTION C1 | 339.
Table 18A
earlier page to calibrate installation man-hours.
• Cost range $276- $1,358 per ton
DESCRIPTION
(17) CHLLER – Water Cooled 200 Ton with
condensers and compressor R-22 Refrigeration:
460v with PLC
• $190 - $270 per ton:
• Add 3 % for freight.
• Add 5% - 10% for labor / construction equipment to install equipment.
• Multiply Production Equipment by a factor of
2 .00 – 3.50, for a completely installed system, this
allows for a foundation (excavation, stone, backfill),
equipment rigging and setting, piping, electrical service, instrumentation, insulation and painting.
• Add 2.5% -7.5% for integration costs.
(18) CHLORINATION INJECTION EQUIPMENT /
WATER TREATMENT
(A) CHLORINATION TREATMENT
EQUIPMENT: Installation man-hours include unloading, temporary warehousing, site transportation
n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check
out. Excludes foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours.
(19) CLARIFIER:
(A) ROTATING SCREEN TYPE 1,800 RPM:
Includes installation of motor and drives, controls:
Excludes crane rental, foundations, setting holding
down bolts, grouting, brackets, supports, piping,
MAN-HOURS
Hockey puck dispenser 25,000 gallon unit
Wall mounted up to 1,000 – 5,000 lbs/day
Floor mounted up to 1,000 – 5,000lbs/day
Chemical injection unit (calcium) 500 pound
per day
3-6
12
10
4 - 12
cable, conduit and electrical hook-up, refer to productivity adjustments on earlier page to calibrate
installation man-hours.
• See chart below.
(20) COILS:
(A) COILS: Steam / Water
Remarks: man-hours include chiller condenser,
compressor, motor, heat exchanger and essential
controls. Man-hours exclude crane rental, foundations, setting holding down bolts, grouting, brackets,
supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on earlier page
to calibrate installation man-hours.
• See chart next page.
(21) COMMINUTORS
(A) COMMINUTORS: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning,
and system check out. Excludes foundations, setting
holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up,
refer to productivity adjustments on earlier page to
calibrate installation man-hours.
Table 19A
DIAMETER
H.P
NUMBER OF PIECES
POUNDS
$ EQUIPMENT COST
M.H.’ S TO INSTALL
12” 18”
24”
30”
2.5
2.5
5
5
4/6
4/6
4/6
4/6
250
550
1,050
1,450
27,483 36,819
43,375
53,554
11
17
27
35
Copyright © 2017 Compass International, Inc.
340. | SECTION C1
Table 20A
AREA SF
WEIGHTS POUNDS
# OF ITEMS
MAN-HOURS
M.H. PER POUND
2
4
6
8
10
12
100
225
370
480
570
660
4/8
4/8
6/10
6 10
6/10
6/10
4
6
12
15
18
21
0.04
0.03
0.03
0.03
0.03
0.03
Table 21A
H.P.
G.P.M
WEIGHT (POUNDS - KG)
MAN-HOURS
M.H. PER HP
2.5
5
10
5,000
7,000
15,500
1,150 - 525
2,550 – 1,160
4,900 – 2,230
23
37
52
9.2
7.4
5.2
H.P.
CENTRIFUGAL
RECIPROCATING
500
1,000
0.33 / M.H.’S PER H.P.
0.30 / M.H.’S PER H.P.
0.37 / M.H.’S PER H.P.
0.35 / M.H.’S PER H.P.
Table 22A
Table 22B
CFM
H.P.
SHIPPING WEIGHT IN TONS
100
20 / 25
250
25 / 40
500
75 / 100
1,000 150 / 200
1
2.25
3.5
5.25
$ EQUIP. COST INSTALLATION MAN-HOURS
$ COST PER CFM
31,215 53,340 103,832
146,801
312
213
208
147
(22) COMPRESSOR:
(A) COMPRESSOR MULTI STAGE CENTRIFUGAL / RECIPROCATING: Installation
man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Includes installation of motor and drives, controls: Excludes lifting
equipment / cranes etc., foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to
productivity adjustments on earlier page to calibrate
installation man-hours.
Copyright © 2017 Compass International, Inc.
32
38
66
88
(B) Reciprocating Compressor, 1 stage, 100
PSIG:
• Add installation man-hours
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(23) COMPUTER ROOM:
(A) COMPUTER ROOM HYDRONIC HEAT
AIR COOLED CONDENSER: Installation manhours include unloading, temporary warehousing,
site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning,
SECTION C1 | 341.
and system check out. Includes valves / regulators,
filters and controls: Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up,
refer to productivity adjustments on earlier page to
calibrate installation man-hours.
identification / stenciling & subsequent tagging.
(B) CONDENSERS Shell and Tube: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Excludes founda(24) CONDENSORS / CENTRIFUGES:
tions, setting holding down bolts, grouting, brackets,
(A) AIR COOLED CONDENSERS: Installasupports, piping, cable, conduit and electrical hooktion man-hours include unloading, temporary wareup, refer to productivity adjustments on earlier page
housing, site transportation n/e 0.50 miles – 0.80 km, to calibrate installation man-hours.
unpacking, lifting into position, setting, leveling,
• See chart next page
aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets,
(C) RECIPROCATING – AIR COOLED
supports, piping, cable, conduit and electrical hookCONDENSING UNITS (CONDENSER – COMup, refer to productivity adjustments on earlier page PRESSOR): Installation man-hours include unloadto calibrate installation man-hours. The man-hour
ing, temporary warehousing, site transportation n/e
installation units exclude initial chemical charging,
0.50 miles – 0.80 km, unpacking, lifting into posicooling liquids, refrigerant / anti freeze chemicals,
tion, setting, leveling, aligning, and system check
M.E. passivation and cleaning (pickling) and M.E.
out. Excludes foundations, setting holding down
Table 23A
TONS
EQUIPMENT COST IN $’S
INSTALLATION M.H.’ S
M.H PER TON
2.5
5
7.5
10
15
25
50
16,506 19,011 24,059 26,822
30,251 44,353 75,401 18.5
23.5
31
38
56
95
124
7.4
4.7
4.1
3.8
3.7
3.8
2.5
Table 24A
TONNAGE
# OF PIECES
WEIGHTS POUNDS
MAN-HOURS
M.H. PER POUND
5
10
20
25
50
75
100
150
3/5
3/5
3/5
3/5
3/5
7/9
7/9
10/12
175
280
440
500
1,500
2,000
2,700
3,700
6
6
7
8
12
16
18
27
1.20
0.60
0.35
0.32
0.24
0.21
0.18
0.17
Copyright © 2017 Compass International, Inc.
342. | SECTION C1
Table 24B
TONNAGE
GPM
NUMBER OF PIECES
MAN-HOURS
M.H. PER POUND
10
25
50
100
250
500
1,000
30
80
160
310
760
1,550
2,450
3/5
3/5
3/5
4/5
4/6
5/7
5/7
6.50
10
20
30
52
75
108
0.65
0.40
0.32
0.30
0.21
0.15
0.11
TONS
# OF PIECES
POUNDS WEIGHTS
MAN-HOURS
M.H. PER POUND
25
50
100
250
3/5
3/5
3/6
4/7
1,760
3,430
6,560
16,050
28
54
81
191
1.12
1.08
0.82
0.77
Table 24C
Table 24D
TONS
NUMBER OF ITEMS
WEIGHTS POUNDS
MAN-HOURS
M.H. PER POUND
5
10
15
25
50
75
100
150
4/6
4/6
4/6
4/6
4/6
6/8
6/8
7/9
370
530
800
1,500
2,000
2,500
3,000
4,350
6
8
8
10
12
14
16
23
1.2
0.8
0.53
0.4
0.24
0.19
0.16
0.15
(E) SCREW ACTION- WATER COOLED
CONDENSER - COMPRESSOR UNIT: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
(D) CONDENSERS (COALESCER): Installa- aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets,
tion man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on earlier page
unpacking, lifting into position, setting, leveling,
to calibrate installation man-hours.
aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets,
(F) BAROMETRIC CONDENSER / MISsupports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on earlier page CELLANEOUS, C S H.E.
• Add installation man-hours.
to calibrate installation man-hours.
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours.
Copyright © 2017 Compass International, Inc.
SECTION C1 | 343.
• Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(G) CONDENSER (EVAPORATION)
(25) CONTINUOUS SPRAY DRYER:
(A) CONTINUOUS SPRAY DRYER C.S. A 36
/ A 285: Installation man-hours includes unloading,
unpacking, transport from temporary site warehouse
to final location, n/e 0.50 miles – 0.80 km distance,
installation on base, adjusting drive, bearings, shaft
alignment, calibrating and system check out. Manhours exclude lifting equipment / cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up.
The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze
chemicals, M.E. passivation and cleaning (pickling)
and M.E. identification / stenciling & subsequent tagging.
(26) CONVEYORS
(A). CONVEYOR: RECIPROCATING / CONTINUOUS ACTION: Installation man-hours include
unloading, temporary warehousing, site transportation
n/e 0.50 miles – 0.80 km, unpacking, checking out of
conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out.
Erection of supports, frames, complete with idlers,
conveyor frame, pulley, end supports, bolts, shims
and cables. Erection man hours include installation
of conveyor motors, head and bottom shaft, chain /
belt, buckets and brackets such as head and bottom
section, typical bracing piece’s, and filler piece’s are
included in the following man hour units, including pulleys, springs, brake, bolts and return belt etc.
Add additional man-hours for lubrication system.
Excludes foundations, setting holding down bolts,
grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook up,
refer to productivity adjustments on earlier page to
calibrate installation man-hours.
Table 24E
TONNAGE
# OF WEIGHT
PIECES IN POUNDS
MAN-HOURS
100
250
500
1,000
3/5
3/5
4/6
4/6
28
48
82
144
3,500
4,500
9,500
17,500
Table 24F
GPM
$ EQUIPMENT INSTALLATION COST PER
COST
MAN-HOURS GPM
500
1,000
2,500
5,000
10,980 20,451 39,735 59,365 24
32
38
62
21.96
20.45
15.89
11.87
Table 24G
RATING TON
$ EQUIPMENT INSTALLATION
COST
MAN-HOURS
5
10
25
50
100
$5,113 $6,838 $13,555
$21,027
$37,197
20
24
32
36
40
Table 25A
EVAPORATION WEIGHT /
RATE PER HOUR NUMBER
IN POUNDS
OF PIECES
1,000
2,500
5,000
MAN- M.H. HOURS
PER LB.
11,000 - 5/8 388
27,000 - 6/8 594
55,500 - 7/10 706
0.39
0.24
0.14
Table 26A
DIA.
INCHES
8
10
12
18
24
30
MAN HOURS PER
100’ LENGTH
CARBON
110
180
204
280
330
377
MAN HOURS PER 100’
LENGTH STAINLESS
STEEL 304 / 316
144
220
376
420
484
564
Copyright © 2017 Compass International, Inc.
344. | SECTION C1
(B). BUCKET ELEVATOR – CONTINUOUS
CARBON STEEL Bucket size 12” x 9” x 12” 70 /
100 tons per hour: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking
out of conveyor and all components, lifting into
final position, setting, leveling, aligning, and system
check out. Erection of supports, frames, complete
with idlers, conveyor frame, pulley, end supports,
bolts, shims and cables. Erection man hours include
installation of conveyor motors, head and bottom
shaft, chain / belt, buckets and brackets such as head
and bottom section, typical bracing piece’s, and filler
piece’s are included in the following man hour units,
including pulleys, springs, brake, bolts and return
belt etc. Add additional man-hours for lubrication
system. Excludes foundations, setting holding down
bolts, grouting, brackets, temporary supports, piping,
painting, electrical cable, conduit and electrical hook
up, refer to productivity adjustments on earlier page
to calibrate installation man-hours.
(C). BUCKET ELEVATOR – CONTINUOUS CARBON STEEL: Bucket size 12” x 12” x
18” 100 / 150 ton per hour: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
checking out of conveyor and all components, lifting
into final position, setting, leveling, aligning, and
system check out. Erection of supports, frames, complete with idlers, conveyor frame, pulley, end sup-
Table 26B
TRAVEL LENGTH FEET
TOTAL M. H. ’S
10
82
15
136
20
163
25
145
50
196
75
256
100
286
250
330
500
585
1,000
1,145
Copyright © 2017 Compass International, Inc.
ports, bolts, shims and cables. Erection man hours
include installation of conveyor motors, head and
bottom shaft, chain / belt, buckets and brackets such
as head and bottom section, typical bracing piece’s,
and filler piece’s are included in the following man
hour units, including pulleys, springs, brake, bolts
and return belt etc. Add additional man-hours for
lubrication system. Excludes foundations, setting
holding down bolts, grouting, brackets, temporary
supports, piping, painting, electrical cable, conduit
and electrical hook up, refer to productivity adjustments on page 2 to calibrate installation man-hours.
Table 26C
TRAVEL LENGTH FEET
TOTAL M. H. ’S
10
94
15
148
20
179
25
196
50
264
75
278
100
308
250
356
500
637
1,000
1,186
(D). CONVEYORS: BELT (INCLINED):
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, checking out of conveyor and
all components, lifting into final position, setting,
leveling, aligning, and system check out. Erection
of supports, frames, complete with idlers, conveyor
frame, pulley, end supports, bolts, shims and cables.
Erection man hours include installation of conveyor
motors, head and bottom shaft, chain / belt, buckets
and brackets such as head and bottom section, typical bracing piece’s, and filler piece’s are included
in the following man hour units, including pulleys,
springs, brake, bolts and return belt etc. Add additional man-hours for lubrication system. Excludes
foundations, setting holding down bolts, grouting,
SECTION C1 | 345.
brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook up:
(E) ROLLER CONVEYOR
(F) SCREW CONVEYOR
(G) EQUIPMENT COST ONLY
• Equipment cost only.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost)
(H) BUCKET ELEVATOR
(I) CONVEYOR ELEVATOR (Material Cost
only) – 2017 Cost Basis: Add 3% for transport to
site for US and overseas applications (ocean freight
would increase freight cost)
• See chart next page.
(J) BELT CONVEYOR / OPEN, 1,750 RPM:
• Add installation man-hours
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost)
• See chart next page.
(27) COOLER (ACID):
(A) GRAPHITE TUBE H.E. INCL. PUMP:
Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final
location, assume n/e 0.50 miles – 0.80 km distance,
installation on base, adjusting drive, bearings, shaft
alignment, calibrating and system check out. Manhours exclude lifting equipment / cranes, foundations, setting holding down bolts, grouting, brackets,
supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on earlier page
to calibrate installation man-hours.
• See chart previous page
Table 26D
WIDTH
M.H.’S / LF (BASED ON 100’ LENGTH)
12”
16”
20”
24”
30”
2.10
2.45
2.75
3.10
3.35
36”
3.45
Table 26E
WIDTH
M.H.’S / LF
10”
12”
14”
18”
1.25
1.55
1.75
2.10
Table 26F
DIAMETER
M.H.’S / LF
6”
8”
10”
12”
4.10
5.25
6.50
6.75
Table 26G
EQUIP. COST ONLY
COST PER LF $ COST PER M $
6” diameter
8” diameter
12” diameter
16” diameter
1,593
2,067
2,166
2,317
5,225
6,781
7,105
7,600
Table 26H
BUCKET SIZE
MAN HOURS
6” X 4”
10” X 6”
12” X 9”
16” X 9”
3.30 M.H.’S / LF
4.75 M.H.’S / LF
5.25 M.H.’S / LF
6.25 M.H.’S / LF
Copyright © 2017 Compass International, Inc.
346. | SECTION C1
Table 26I
LENGTH FEET / M
18”
24”
30”
36”
42”
50’ / 15.25 M
100’ / 30.50 M
250’ / 76.20 M
500’ / 152.40 M
$15,899
$27,607
$60,823
$117,103
$17,662
$32,755
$73,417
$130,134
$20,459
$37,513
$82,426
$149,825
$22,744
$42,164
$90,616
$164,061
$25,940
$44,093
$98,806
$180,319
TON PER HOUR WIDTH IN INCHES
LENGTH IN FT
$EQUIPMENT COST
INSTALLATION MAN-HOURS
60
110
260
340
20
50
100
150
37,496 42,158 64,370 84,126 55
102
202
312
Table 26J
18
24
36
42
Table 27A
S.F. / M2
H.P.
WEIGHT IN POUNDS
NUMBER OF PIECES
MAN-HOURS
M.H. PER SF
10 / 0.93
25 / 2.32
50 / 4.65
100 / 9.30
250 / 23.23
0.50
1.50
2.50
5.0
15
225
790
1,070
1,370
2,750
4/6
4/6
4/6
7/9
7/9
21
51
77
98
235
2.10
2.04
1.54
0.98
0.94
Table 28A
WEIGHT IN TONS
PACKAGED M.H.’ S PER TON
K.D. M.H.’ S PER TON
1 – 10
10 – 20
20 – 30
30 – 40
4.5
4
3
2.5
21
15.5
12
10
Table 28B
TONNAGE
WEIGHT POUNDS
NUMBER OF MAJOR PIECES
MAN-HOURS
M.H. PER TON
10
25
50
100
250
500
1,000
2,500
850
1,100
1,750
3,330
8,500
11,770
23,600
37,700
4/5
4/5
4/5
6/8
8/10
8/10
8/10
8/10
14
16
23
28
86
108
172
298
1.40
0.64
0.40
0.28
0.34
0.21
0.17
0.12
Copyright © 2017 Compass International, Inc.
SECTION C1 | 347.
(28) COOLING TOWER:
(A) COOLING TOWER, PACKAGE &
KNOCKED DOWN. – Carbon Steel: Installation
man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Excludes cranes,
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on
earlier page to calibrate installation man-hours.
• See chart previous page
(B) COOLING TOWERS, PACKAGED
TYPE – Carbon Steel: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:
• See chart previous page
(29) CRUSHERS A 285 CS (ROTARY):
See chart below
(A) CRUSHER: Installation man-hours includes
unloading, unpacking, transport from temporary site
warehouse to final location, assume n/e 0.50 miles
– 0.80 km distance, installation on base, adjusting
drive, bearings, shaft alignment, calibrating and
system check out. Man-hours exclude lifting equipment / cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up. See chart below.
(B) Breaker / Impact Hammer – Crusher 250 /
300 HP A – 515 CS
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost). See chart next page.
(C) CRUSHER (JAW) C.S. A 285C
• Cost range $4,796 - $5,674 per H.P.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
Table 29
HP
$ COST PER HP
TO PURCHASE
$ COST PER HP INSTALLED WITH
BULK MATERIALS & FIELD LABOR
$ COST PER HP WITH DESIGN /
CM & INSPECTION
5
10
25
50
100
1,235
1,045
867
817
758
2,216
1,584
1,165
1,102
988
2,549
1,821
1,340
1,267
1,136
Table 29A
TONS PER HOUR
NUMBER OF PIECES
WEIGHT / POUNDS
M.H.’ S
100
150
250
500
1,000
7/12
7/12
7/12
7/12
10/12
5,000
6,000
7,000
12,500
17,500
26
36
48
88
124
Copyright © 2017 Compass International, Inc.
348. | SECTION C1
Table 29B
Table 29C
COST PER UNIT
$ COST LOW
$ COST HIGH
H.P.
$ COST
M.H.’ S
Cost per pound
Cost per Kg
Cost per HP
$5.16 $11.36 $1,141 $6.80
$14.96
$1,497
10 H P
50 H.P
100 H.P
56,744 266,482
479,616
58 M.H.’ s
245 M.H.’ s
420 M.H.’ s
Table 29D
H.P.
SHIPPING WEIGHT
OF EQUIPMENT
$ EQUIPMENT COST
INSTALLATION
MAN-HOURS
COST PER H.P.
2
10
25
50
0.25
0.75
2
5
3,310 11,614 20,978 38,943 6.5
14
26
46
1,655
1,161
839
779
(D) ROTARY CRUSHER, C S A 285C
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(30) CRYSTALIZER
(A) CRYSTALLIZER C.S. FORCED FLOW
• Cost range $4,830 - $8,860 per ton (without
erection work)
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(31) DEARATOR:
(A) FEEDWATER - DEAERATOR PACKAGED UNIT complete with local controls: Installation man-hours include unloading, temporary
warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Includes
installation of motor and drives, controls: Assume
unit is mounted on a skid unit the hook-up piping
and electrical between tank(s) and pump is included,
typically trim is shipped loose: Excludes cranes,
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on
Copyright © 2017 Compass International, Inc.
Table 30A
TONS / DAY
$ EQUIPMENT COST
MAN-HOURS
25
50
100
150
221,506 299,992 483,593
724,494 164
272
378
540
earlier page to calibrate installation man-hours. See
chart next page.
(32) DE MINERALIZERS
(A) DE MINERALIZER / ION EXCHANGE
UNIT: Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Excludes foundations, setting holding down bolts,
grouting, cranes, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours. See chart next page.
(33) DEMISTERS:
(A) DEMISTER PADS- TOWER INTERNALS: Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
SECTION C1 | 349.
Table 31A
BOILER H.P. / KW
NUMBER OF PIECES
WEIGHT POUNDS
MAN-HOURS
M.H. PER HP
25 / 18.64
50 / 37.29
100 / 74.57
250 / 186.43
500 / 372.85
1,000 / 746
2,500 / 1,864
4
4
5/6
7/8
7/8
10/12
10/12
350
450
1,000
1,500
2,500
5,000
9,600
12
16
24
51
85
124
195
0.48
0.32
0.24
0.20
0.17
0.12
0.08
Table 32A
FLOW RATE GPM
APPROXIMATE WEIGHT POUNDS
NUMBER OF PIECES
MAN-HOURS
100
250
500
750
1,000
2,500
5,000
10,000
500
700
800
1,000
1,300
2,500
3,500
7,500
10 / 15
10 / 15
10 / 15
10 / 15
10 / 15
20+
20+
25
8
12
16
20
24
42
48
72
Table 33A
TOWER DIAMETER FEET
WEIGHT IN POUNDS
MAN-HOURS
M.H. PER POUND
1.0
1.5
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
30 (4/6 # items)
40 ditto
72 ditto
90 ditto
150 ditto
180 ditto
240 ditto
340 ditto
450 ditto
600 + ditto
14
18
24
28
32
40
48
56
64
72
0.46
0.45
0.33
0.31
0.21
0.22
0.20
0.17
0.14
0.12
Table 34A
DIAMETER (FEET)
WEIGHT LBS
MAN- HOURS
5
10
20
25
140
250
440
770
4
6
16
28
Copyright © 2017 Compass International, Inc.
350. | SECTION C1
setting, leveling, aligning, and system check out.
Installation man-hours exclude, internal packing,
grog / chemicals / catalyst and any special testing /
inspection if required. Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:
• See chart previous page.
(34) DIGESTER (FIBERGLASS):
(A) DIGESTER Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Excludes foundations, setting holding
down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up:
• See chart previous page.
(35) DOWTHERM UNIT:
(A) DOWTHERM UNITS complete with local
controls: Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Includes installation of motor and drives, controls:
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up: The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E.
passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging
(36) DRYERS
(A) Rotary Dryer, C S A 285C
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(37) (A) EJECTORS SINGLE STAGE
(NON CONDENSING 150 PSIG)
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Includes installation of motor and drives, controls:
Excludes cranes, foundations, setting holding down
Table 35A
DUTY MILLION
BTU’ S PER HOUR
MATERIAL
MAN-HOURS
C.S TUBES
MATERIAL S.S
304 TUBES
MAN-HOURS
5
10
25
50
75
100
$280,843
$526,504
$1,089,960
$1,827,258
$2,827,258
$3,257,968
$426,834 $752,441
$1,731,044 $2,854,711 $3,742,027
$4,690,811
198
274
390
604
724
842
175
246
352
565
646
785
Table 36A
S.F. / M2
$ EQUIP. INSTALLATION $ COST
COST MAN-HOURS PER S.F.
100 / 9.30
250 / 23.23
500 / 46.50
1,500 / 139.40
41,555 97,861 188,425
540,400
66
164
274
768
Copyright © 2017 Compass International, Inc.
416
391
377
360
SECTION C1 | 351.
Table 37A
Table 38A
POUNDS OF
MATERIAL MANAIR / HOUR
HOURS
M.H.’ S PER
LB. OF AIR
CAPACITY
INSTALLATION APPROX. $ COST
MAN-HOURS
50
100
250
500
1,000
0.08
0.05
0.032
0.024
0.019
1,000
2,500
5,000
10,000
20,000
140
194
274
307
475
$2,150 $2,931 $4,894 $7,145 $10,627
4
5
8
12
19
$42,103
$76,894
$99,429
$113,716
$137,129
Table 39A
VOLUME / CU FEET / MIN
$ MATERIAL
MAN-HOURS
MAN-HOURS PER 1K CFM
50,000 100,000 250,000 295,082 437,073 769,934
280
370
710
5.6
3.7
2.8
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(B) Dust Collector Stainless Steel 400 SF /
37.20 M2 cloth area with 25 HP blower $21.00 $33.00 / SF - $226 - $355 M2
• Add 3% for freight.
• Add 5% - 10% for labor / construction equipment to install equipment.
• Multiply Production Equipment by a factor of
2 .00 – 3.50, for a completely installed system, this
allows for a foundation (excavation, stone, backfill),
equipment rigging and setting, piping, electrical service, instrumentation, insulation and painting.
• Add 2.5% -7.5% for integration costs.
(38) ELECTRIC FREIGHT ELEVATOR
(A) ELECTRIC FREIGHT ELEVATOR 200
fpm / 4 stops Installation man-hours include unloading, temporary warehousing, site transportation n/e
0.50 miles – 0.80 km, unpacking, checking out of
conveyor and all components, lifting into final position, setting, leveling, aligning, and system check
out. Excludes foundations, setting holding down
bolts, grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical
hook-up, refer to productivity adjustments on earlier
page to calibrate installation man-hours.
(39) ELECTROSTATIC PRECIPITATOR
(A) ELECTROSTATIC PRECIPITATOR
C.S.: Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position,
setting, leveling, aligning, and system check out.
Erection of supports, guides, brackets, frames, bolts
and shims excludes setting holding down bolts, refer
to productivity adjustments on earlier page to calibrate installation man-hours.
(40) (A) ELECTRONIC LOAD CELL / SCALES:
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Includes pit foundations, formwork, grouting. Excludes cranes, setting holding down bolts, brackets,
supports, piping, cable, conduit and electrical hookup:
• Pit is typically 5’ - 6’ deep with 4” thick con-
Copyright © 2017 Compass International, Inc.
352. | SECTION C1
Table 40A
SCALE LOADING
WEIGHT IN TONS
FOOTPRINT OF SCALE
L X W IN FEET APPROXIMATE
TOTAL WEIGHT LBS.
MAN HOURS INCLUDING
PIT / CIVIL WORK
M.H. PER TON
5
10
25
50
100
10 x 8 / 96 SF
15 x 12 / 180 SF
40 x 12 / 480 SF
50 x 12 / 600 SF
70 x 12 / 840 SF
1,850
2,450
3,700
7,100
17,800
98 (civil = 72)
122 (ditto = 92)
208 (ditto = 122)
272 (ditto = 162)
308 (ditto = 192)
19.6
12.2
8.3
5.4
3.1
Table 41A
KW / RATING
RPM / FREQUENCY
APPROX WEIGHT
M.H.’ S
$ COST
100
150
200
1800 / 60
1500 / 60
1500/ 60
3,500 #
4,400 #
8,000 #
80
88
128
$43,174
$64,782
$70,136
Table 42A
SURFACE
AREA SF
$ COST PER SF TO
PURCHASE & D/D TO SITE
$ COST PER SF INSTALLED WITH
BULK MATERIALS & FIELD LABOR
50
100
250
500
1,000
2,500
610
544
361
255
182
141
1,287
1,135
734 501
350
305
crete walls and 6” SOG with 4” diameter drain.
(41) EMERGENCY POWER SUPPLY:
(A) EMERGENCY POWER GENERATION:
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Open
type, skid mounted, 3 phase, radiator cooled, approx cost includes elect starter (battery) and factory
assembled control system. Installation man-hours
exclude any special testing / inspection if required.
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
Copyright © 2017 Compass International, Inc.
$ COST PER SF WITH
DESIGN CM & INSPECTION
1,481
1,305
844
576
402
352
man-hours. The man-hour installation units exclude
initial chemical charging, cooling liquids, refrigerant
/ anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling &
subsequent tagging.
(B) Conceptual Estimating for budgeting Generator Set / U.P.S. type equipment.
• UPS.: $1,330 - $2,560
• Generator Set: $350 - $485
SECTION C1 | 353.
Table 42B
COOLING / HEATING AREA S.F. / M2 (EDR)
NUMBER OF MAJOR PIECES
MAN-HOURS
M.H. PER SF(EDR)
100 / 9.30
250 / 23.23
500 / 46.50
1,000 / 92.90
2,500 / 232.35
5,000 / 464.70
3/5
3/5
3/5
5/7
5/7
5/7
120
200
310
555
807
1,110
1.21
0.80
0.62
0.55
0.32
0.22
Table 42C
Table 43A
S.F. / M2
$ EQUIPT
COST
INSTALLATION $ COST
M.H.’ S
PER S.F.
S.F. / M2
EQUIPT COST
10 / 0.93
25 / 2.37
50 / 4.65
100 / 9.30
81,438
175,774
327,508
592,688
53
127
197
382
110 / 0.93
25 / 2.37
50 / 4.65
91,008
221,982
396,846
8,144
7,031
6,550
5,927
(42) EVAPORATORS:
(A) EVAPORATORS HORIZONTAL A285
CS 50 PSIG
• See chart previous page.
(B) EVAPORATORS / CONDENSERS Long
Tube Carbon Steel: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Excludes foundations, setting holding
down bolts, grouting, brackets, supports, piping,
cable, conduit and electrical hook-up, refer to productivity adjustments on earlier page to calibrate
installation man-hours.
(C) EVAPORATOR (VERTICLE TUBE):
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up
• Add installation man-hours
INSTALLATION M.H.’ S
71
202
370
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(43) FLAKERS:
(A) DRUM TYPE: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Excludes foundations, setting
holding down bolts, grouting, brackets, supports,
piping, cable, conduit and electrical hook-up, refer to
productivity adjustments on earlier page to calibrate
installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(44) FILTERS:
(A) ROTARY / VACUUM / DISK: Installation
man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets,
Copyright © 2017 Compass International, Inc.
354. | SECTION C1
supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on earlier page
to calibrate installation man-hours. The man-hour
installation units exclude initial chemical charging,
cooling liquids, refrigerant / anti freeze chemicals,
M.E. passivation and cleaning (pickling) and M.E.
identification / stenciling & subsequent tagging.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(B) DITTO / PAPER / MANUFACTURING
APPLICATIONS: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Excludes foundations, setting holding
down bolts, grouting, brackets, supports, piping,
cable, conduit and electrical hook-up:
(C) Filter – Horizontal scrolling with hydraulic tilting pot: To determine installation / equipment
setting hours multiply tank cost by 6.5 % divide
resulting value by $64 / hour, add crane usage:
(D) Rotary Drum Filter: Equipment cost only:
$9,220 / SF
(E) Pressure Leaf Filter Vertical C.S.
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(45) FORK LIFTS
(A) Fork Lift Truck (excludes Battery charging station)
(46) FUEL TANKS:
(A) Fuel Oil Tank Installation: On finished
floor installation, man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Installation man-hours exclude installation of trays,
packing’s, internals brackets, and any special testing
/ inspection if required. Excludes cranes, founda-
Copyright © 2017 Compass International, Inc.
Table 44A
SF / M2
$ COST / SF
MAN HOURS / SF
50 / 4.65
100 / 9.30
250 / 23.23
500 / 46.50
1,000 / 92.95
1,804 1,055 605 423 269 2.25
1.33
0.85
0.635
0.37
SF / M2
$ COST / SF
MAN HOURS / SF
50 / 4.65
100 / 9.30
250 / 23.23
500 / 46.50
1,000 / 92.95
2,375 1,609 974 753 540 3.15
2.1
1.27
1
0.85
Table 44B
Table 44C
AREA IN SF / M2
$ COST PER SF
10 / 0.93
25 / 2.37
50 / 4.65
100 / 9.30
6,953
6,549
4,204
2,498
Table 44E
S.F. / M2
$ EQUIP.
COST
INSTALLATION $ COST
MAN-HOURS PER S.F.
50 / 4.65
15,298
100 / 9.30
28,836
250 / 23.23 70,602
500 / 46.50 138,856
14
27
68
124
306
288
282
278
Table 45A
LIFTING WEIGHT
$ COST
2,500 Pound
5,000 Pound
10,000 Pound
45,375
68,460
78,451
VOLUME
$ MATERIAL
LABOR MAN-HOURS
1,000 gallon
2,500 gallon
5,000 gallon
$1,348 $1,655
$5,234 16
40
108
Table 46A
SECTION C1 | 355.
tions, setting holding down bolts, grouting, brackets,
supports, piping, cable, conduit and electrical hookup: See chart previous page.
(47). GENERATORS
(A) PACKAGED / SKID MOUNTED GENERATORS EMERGENCY / STANDBY UNITS
Diesel Powered: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
check out. Engine 1,800 RPM and 60 Hz rating:
Excludes foundations, setting holding down bolts,
grouting, brackets, cranes, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours. The man-hour installation units exclude
initial chemical charging, cooling liquids, refrigerant
/ anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling &
subsequent tagging.
(48). GENERATOR STEAM TURBINE UNITS
(A) GENERATOR TURBINE - STEAM
UNITS: Approximate Installation man-hours
for unit ranging from 1,000 K.W. to 10,000 K.W.
including all construction scope items, note piping
lengths / man-hour units are for the immediate footprint area of turbine, i.e. an imaginary line / battery
limit of 50’ surrounding turbine. Note add 5-15% to
the following direct hours for scaffolding, clean up,
temporary barricades etc, crane rental / operator(s)
not included in man hour units: Man-hours Per K.W.
Rating.
(B) Order of Magnitude- check value per
KW: See chart at right.
(49) GIN POLES:
(A) GIN POLE, SINGLE AND DOUBLE:
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
Table 47A
K.W.
APPROX.
NO. OF
RATING WEIGHT LBS. PIECES
MAN-HOURS
25
50
75
100
125
150
175
200
250
500
28
40
56
72
84
100
122
134
146
220
1,450
2,050
2,460
2,750
3,350
4,100
6,200
7,500
8,600
10,500
5 / 7
5 / 7
5 / 7
5 / 7
5 / 7
5 / 7
7 / 10
7 / 10
7 / 10
7 / 10
Table 48A-1
SCOPE ITEM
% VALUE REMARKS
Off loading & setting
(Millwright work)
Foundations /
supports
9.6
Aligning & grouting
Piping systems
5.2
21.1
Electrical / Controls
Insulation / Painting
14.7
5.2
Testing / Start-up /
Commissioning
Miscellaneous items
TOTAL
5.2
Excavation, backfill,
concrete, rebar and
formwork includes some
structural steel supports
34.5
50’ 2 # 2”- 4” C.S. of
piping systems
Insulation of piping
systems
4.5
100.0%
Table 48A-2
MW SIZE MAN-HOURS MW SIZE MAN-HOURS
500
1,000
2,500
9,690
14,382
15,647
5,000
10,000
25,000
19,349
22,083
33,099
These man-hour units could increase by +/- 25% dependant
upon site conditions and the state of the economy.
Copyright © 2017 Compass International, Inc.
356. | SECTION C1
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up: Excludes concrete dead men and any
movement to new location:
Type
• 100’ SINGLE
• 100’ DOUBLE
• 200’ SINGLE
• 200’ DOUBLE
Man Hours
1,180
1,690
1,540
2,470
(50) GLYCOL UNITS:
(A) GLYCOL UNITS: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Excludes foundations, setting
holding down bolts, grouting, brackets, supports,
piping, cable, conduit and electrical hook-up: The
man-hour installation units exclude initial chemical
charging, cooling liquids, refrigerant / anti freeze
chemicals, M.E. passivation and cleaning (pickling)
and M.E. identification / stenciling & subsequent
tagging. See graph next page.
Ton
• 1 - 5
• 5 - 10
• 10 - 20
• 20 – 50
Man hours per ton
4.40
3.60
2.25
1.88
(51) GRANULATOR
(A) GRAVITY / IMPACT Installation manhours include unloading, temporary warehousing,
site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components,
lifting into final position, setting, leveling, aligning,
and system check out. Erection of supports, guides,
brackets, frames, bolts and shims, excludes setting
holding down bolts. See chart next page.
(B) Granulator 250 HP A – 515 CS: Add 3%
for transport to site for US and overseas applications
(ocean freight would increase freight cost).
Copyright © 2017 Compass International, Inc.
Table 48B
FACILITY TYPE
OOM COST
Power Plant (Coal):
Wind Powered Facility:
Geothermal Powered
Facility: Combined Cycle
Power Plant (Gas):
Hydro Powered Facility:
Nuclear Fueled
Power Plant: Simple Cycle Power
Plant (Gas):
Operating Costs:
Decommissioning Costs:
Construction Cost - (Total Facility
based on production capacity)
$1,670 - $2,180 per kW Average Cost $1,925 / kW
Construction Cost (Total Facility based on
production capacity) $1,000 - $2,200 per kW
Average Cost $1,600 / kW
Construction Cost (Total Facility based on
production capacity)
$1,100 - $2,200 per kW
Average Cost $1,650 / kW
Construction Cost - (Total Facility
based on production capacity)
$820 - $1,200 per kW
Average Cost $1,010 / kW
Construction Cost - (Total Facility
based on production capacity)
$1,760 - $2,560 per kW
Average Cost $2,160 / kW
Construction Cost
$4,100 - $7,300 per kW
Average Cost $5,700 / kW
Construction Cost - (Total Facility
based on production capacity)
$800 - $1,100 per kW
Average Cost $950 / kW
0.17 – 0.30 cents per kW hour
10% - 15% of Capital Cost
(52) HAMMERMILL:
(A) HAMMERMILLS: Installation man-hours
includes unloading, unpacking, transport from temporary site warehouse to final location, assume n/e
0.50 miles – 0.80 km, installation on base, adjusting drive, bearings, shaft alignment, calibrating and
system check out. Man-hours exclude crane costs,
foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and
electrical hook-up: Typically is shipped in 6 /12
main pieces, refer to productivity adjustments on
SECTION C1 | 357.
50A
12H-2
3
2
0
1
MAN HOURS PER TON
4
5
GLYCOL UNITS
0
1-5
5-10
10-20
20-50
TONS
Table 51A
H.P.
APPROX WEIGHT
# OF PIECES
M.H.’ S
M.H.’ S PER HP
25
50
75
2,400
3,700
5,400
3 / 5
3 / 5
3 / 5
23
27
34
0.92
0.54
0.45
Table 51B
COST PER UNIT
$ COST LOW
$ COST HIGH
Cost per pound
Cost per Kg
Cost per HP
$8.12
$17.85
$377
$10.77
$23.69
$498
Copyright © 2017 Compass International, Inc.
358. | SECTION C1
earlier page to calibrate installation man-hours. The
man-hour installation units exclude initial chemical
charging, cooling liquids, refrigerant / anti freeze
chemicals, M.E. passivation and cleaning (pickling)
and M.E. identification / stenciling & subsequent
tagging.
(B) Hammer Mill 250 HP 135 ton per hour
A – 515 CS: Add 3% for transport to site for US and
overseas applications (ocean freight would increase
freight cost).
(53) HEATERS:
(A) Heaters – Cabin fired type heaters: Installation man-hours include unloading, temporary
warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
cranes, foundations, setting holding down bolts,
grouting, brackets, supports, piping, cable, conduit
and electrical hook-up:
(B) CONVECTORS - Surface - Wall Mounted
Unit: Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Excludes foundations, setting holding down bolts,
grouting, brackets, supports, piping, cable, conduit
and electrical hook-up, refer to productivity adjustments on earlier page to calibrate installation manhours.
(C) FEEDWATER HEATERS complete with
local controls: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, leveling, aligning, and system
Table 52A
TONS PER HOUR
MOTOR HORSE POWER
WEIGHT POUNDS
MAN-HOURS
M.H. PER TON
10
15
20
25
50
75
100
150
200
250
500
750
1,000
10
20
25
30
50
100
100/125
150
200
275
400
500
500/650
2,500
3,000
4,200
5,000
7,500
10,000
14,000
17,500
22,500
30,000
40,000
50,000
75,000+
24
28
36
42
64
78
104
122
144
164
188
208
238
2.4
1.87
1.80
1.68
1.30
1.04
1.04
0.80
0.72
0.66
0.37
0.27
0.24
Table 53A
Table 52B
COST PER UNIT
$ COST LOW
$ COST HIGH
MMBTU’ S C.S. TUBES M.H.’ S ALLOY TUBES M.H.’ S
Cost per pound
Cost per Kg
Cost per HP
$7.24 $15.93 $540 $9.53
$20.96
$721
10
20
30
40
50
Copyright © 2017 Compass International, Inc.
1,840
2,870
3,925
4,705
5,580
2,740
3,770
5,740
6,675
7,370
SECTION C1 | 359.
check out. Includes installation of motor and drives,
control.. Assume unit is mounted on a skid unit
the hook-up piping and electrical between tank and
pump is included, typically trim is shipped loose.
Assumed that equipment is shipped in one piece:
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up, refer to productivity
adjustments on earlier page to calibrate installation
man-hours.
(D) TANK HEATERS (immersion / electrical): Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Includes installation of motor and drives, controls:
Assume unit is mounted on a skid unit the hookup piping and electrical between tank and pump is
included, typically trim is shipped loose: Assumed
that equipment is shipped in one piece: Excludes
cranes, foundations, setting holding down bolts,
grouting, brackets, supports, piping, cable, conduit
and electrical hook-up:
(E) BOX TYPE FIRED HEATER C.S.
TUBES 250 PSI TUBE PRESSURE: Installation
man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Includes installation of motor and drives, controls: Assume unit is
mounted on a skid unit the hook-up piping and electrical between tank and pump is included: typically
trim is shipped loose. Assumed that equipment is
shipped in one piece: Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:
See chart previous page.
(F) BOX TYPE FIRED HEATER S.S. 304.
TUBES 250-PSI TUBE PRESSURE: Installation
man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Includes installa-
Table 53B
S.F / M2 EDR
NO. OF PIECES LBS. WEIGHTS M.H.’ S
50 / 4.65
100 / 9.30
250 / 23.23
500 / 46.46
4-6
4-6
12
12/15
75
125
420
780
5
5
22
38
Table 53C
BOILER WEIGHTS LBS. MAN-HOURS
H.P
# OF PIECES
50 / 4.65
100 / 9.30
250 / 23.23
500 / 46.46
4-6
4-6
12
12/15
M.H. PER HP
75
125
420
780
5
5
22
38
Table 53D
M.W.
EQUIPMENT COST
INSTALLATION M.H.’ S
10
25
50
100
$1,464 $3,455 $6,613 $12,770 2.5
4.5
8
14.5
Table 53E
DUTY /
MILLION
BTU’ S
MATERIAL COST
(REFER TO PREVIOUS TABLES FOR
INSTALLATION WORK)
5
10
25
50
100
$267,006
$442,009
$840,373
$1,364,609
$2,235,515
Table 53F
DUTY /
MILLION
BTU’ S
MATERIAL COST
(REFER TO PREVIOUS TABLES FOR
INSTALLATION WORK)
5
10
25
50
100
$407,263
$676,260
$1,277,433
$2,091,646
$3,445,864
Copyright © 2017 Compass International, Inc.
360. | SECTION C1
tion of motor and drives, controls: Assume unit is
mounted on a skid unit the hook-up piping and electrical between tank and pump is included, typically
trim is shipped loose: Assumed that equipment is
shipped in one piece. Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:
See chart previous page.
(G) Heaters Unit Gas Fired: Cost Range is
$10.65 - $25.00 per MBTU.
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(H) Heater Water Industrial (Gas fired): Cost
Range is $18.36 - $25.17 per gallon.
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(I) Heater Water Industrial (Electric): Cost
Range is $11.47 - $15.23 per gallon.
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(J) Steam Heater Immersion O.O.M. / Equipment, Cost: Price per KW: $139 - $187
(54) HEAT EXCHANGERS
(A) FIXED TUBE SHEET C.S. SHELL, C.S.
TUBES:
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up: see chart previous
page.
(B) Shell and Tube Heat Exchanger:
Copyright © 2017 Compass International, Inc.
Table 53G
MBTU’S
WEIGHT
MAN HOURS
$ COST
50
100
150
250
185
250
345
510
2.50
4
6
10
$1,250
$1,627
$1,886
$2,635
Table 53H
GALLONS
MAN HOURS
$ COST
100
250
500
2.5
4
8
$2,517
$5,379
$9,181
GALLONS
MAN HOURS
$ COST
100 - 20 kw
250 - 30 kw
500 - 40 kw
2.5
4
8
$1,523
$3,235
$5,734
Table 53I
Table 53K (Hot Oil Heater)
MILLION BTU / HOUR
MAN HOURS
$ COST
50
100
2,200
3,700
$1,509,663
$2,750,694
Table 54A
AREA / S.F.:
MAN HOURS
$ COST
50
100
150
200
6
8
10.5
12.5
4,210
6,745
7,064
8,055
SECTION C1 | 361.
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
Table 54B
INSTALLATION
MAN-HOURS
PER S.F
(C) Plate Heat Exchanger 316 S.S. Equipment
Cost
• Cost Range $279 – $377 SF
• Cost Range $3,002 – $4,057 M2
6”
8”
12”
0.10 - .0.25
0.10 - .0.25
0.10 - .0.25
0.10 - .0.25
0.10 - .0.25
0.10 - .0.25
0.10 - .0.25
0.10 - .0.25
0.10 - .0.25
(D) Plate Heat Exchanger 304 S.S. Equipment
Cost
• Cost Range $253 – $316 SF
• Cost Range $2,722– $3,400 M2
(E) Heat Exchanger C.S. / 316SS (internals)
Equipment Cost
• Cost Range $65 – $128 SF
• Cost Range $699– $1,377 M2
(F) Heat Exchanger S/T TEMA-R Equipment
Cost M.H. ’s
• Cost Range $33 – $55 / SF
• Cost Range $355 – $592 / M2
(55) HIGH VOLTAGE SUB STATION:
(A) HIGH VOLTAGE UNIT SUBSTATION:
Man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Excludes cranes,
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up: See graph next page.
DIAMETER
S.F.
25
50
100
25
50
100
50
100
150
$ / SF RANGE
59 - 69
47 - 55
42 - 51
72 - 80
54 - 61
40 - 49
67 - 77
48 - 58
43 - 51
Table 54C
SF
$ COST
250
500
750
1,000
377
303
286
279
Table 54D
SF
$ COST
250
500
750
1,000
316
290
275
253
Table 54E
SF
$ COST
100
250
500
128
78
65
Table 54F
SF
MAN HOURS
$ COST
250
500
750
1,000
2.50
4
6.50
8
55
42
36
33
Copyright © 2017 Compass International, Inc.
362. | SECTION C1
55A
12H-2
250
200
150
0
50
100
MAN HOURS
300
350
400
HIGH VOLTAGE SUB STATION
0
150
225
300
500
750
1,000
1,500
2,000
KVA
(56) HOISTS:
(A) Hoist, 5 speeds, C. S.: Add 3% for transport to site for US and overseas applications (ocean
freight would increase freight cost).
(57) HOPPERS
(A) Hopper Conical O.O.M. Equipment Cost:
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(58) HORIZONTAL DRUMS:
(A) Horizontal Drum / Pressure Vessel: Wall
7/16” thick A – 515 C.S.
• Cost per pound $2.10 - $2.80
• Cost per Kg $4.62 - $6.16
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
Copyright © 2017 Compass International, Inc.
Table 56A
TONS
$ COST
MAN-HOURS
2.5
5
12.50
25
$11,832
$21,020
$45,000
$82,540
8.5
11
18
32
Table 57A
CUBIC FEET
$ COST LOW
$ COST HIGH
5,000
10,000
15,000
$26,962
$50,459
$86,907
$38,516
$78,950
$117,188
SECTION C1 | 363.
(59) HYDRAULIC FREIGHT ELEVATOR
(A) HYDRAULIC FREIGHT ELEVATOR
200 fpm / 4 stops Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking
out of conveyor and all components, lifting into
final position, setting, leveling, aligning, and system
check out. Excludes foundations, setting holding
down bolts, grouting, brackets, temporary supports,
piping, painting, electrical cable, conduit and electrical hook-up.
(60) HYDROPULPERS / RAGGERS
(A) VARIOUS PAPERMILL EQUIPMENT
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, checking out of conveyor and
all components, lifting into final position, setting,
leveling, aligning, and system check out. Erection of
supports, guides, brackets, frames, bolts and shims,
excludes setting holding down bolts.
EQUIPMENT WEIGHT / TONS: 50 – 100
M.H.’ s PER TON: 14 – 18.5
(61) INSTALLATION OF TRAYS:
(A) INSTALLATION OF TRAYS – IN TOWERS / TOWER INTERNALS: Installation manhours include unloading, temporary warehousing,
site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours
exclude, internal packing, grog / chemicals / catalyst and any special testing / inspection if required.
Excludes cranes, foundations, setting holding down
bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up: 2 sections: Sieve
/ Perforated tray excludes packing’s, brackets and
clips:
(62) LIFT STATIONS
(A) Lift Stations F/G, Steel or Concrete with
Generator
Table 59A
CAPACITY /
LBS / KG
INSTALLATION APPROX. COST
M.H.
1,000 / 454
2,500 / 1,136
5,000 / 2,272
10,000 / 4,545
20,000 / 9,090
97
126
144
240
340
$22,221
$40,960
$56,365
$63,800
$78,631
Table 61A
DIAMETER
SIEVE TRAY
C.S. $ COST
VALVE TRAY
C.S. $ COST
24”
36”
48”
60”
$5,422
$6,774 $7,432 $8,068 $5,602
$7,455
$8,181
$8,644
Table 62A
GPM
$ COST
100
250
500
$89,126
$165,408
$232,549
Table 63A
NUMBER OF STOPS
$ MATERIAL
MAN HOURS
2
3
4
5
$15,880
$17,969
$19,464
$20,870
122
132
148
164
Table 64A
DESCRIPTION
MAN HOURS
Laboratory Fume Hood
Laboratory Sink
Fire Pump
Hose Cabinet Recessed
Ditto Surface mounted
12.00
4.50
16.50
2.50
1.50
Copyright © 2017 Compass International, Inc.
364. | SECTION C1
(63) MANLIFT
(A) MANLIFT: Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking
out of conveyor and all components, lifting into
final position, setting, leveling, aligning, and system
check out. Erection of supports, guides, brackets,
frames, bolts and shims excludes setting holding
down bolts. See chart previous page.
(64) MISCELLANEOUS ITEMS:
(A) Miscellaneous Items: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. See chart previous page.
(B) Horizontal Drum / Pressure Vessel: Wall
7/16” thick A – 515 C.S.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(C) Granulator 250 HP A – 515 CS: Add 3%
for transport to site for US and overseas applications
(ocean freight would increase freight cost)
(D) Hammer Mill 250 HP 135 ton per hour A
– 515 CS: Add 3% for transport to site for US and
overseas applications (ocean freight would increase
freight cost).
(E). BIN – HOPPER DISCHARGER C.S.
(F) AERATION EQUIPMENT STEEL: Add
3% for transport to site for US and overseas applications (ocean freight would increase freight cost).
(G) Bagging Machine O.O.M. / Equipment,
Cost: Add 3% for transport to site for US and
overseas applications (ocean freight would increase
freight cost).
(H) Blender (Ribbon Type): Add 3% for transport to site for US and overseas applications (ocean
freight would increase freight cost). See chart next
page.
(I) FORCED DRAFT C.S.: Installation manhours include unloading, temporary warehousing,
site transportation n/e 0.50 miles – 0.80 km, unpack-
Copyright © 2017 Compass International, Inc.
Table 64B
COST PER UNIT
$ COST LOW
$ COST HIGH
Cost per pound
Cost per Kg
2.10
4.62
2.74
6.03
Table 64C
COST PER UNIT
$ COST LOW
$ COST HIGH
Cost per pound
Cost per Kg
Cost per HP
7.96
17.50
367
10.25
22.55
482
Table 64D
COST PER UNIT
$ COST LOW
$ COST HIGH
Cost per pound
Cost per Kg
Cost per HP
7.34
16.16
529
9.54
20.98
696
Table 64E
H.P/ EQUIP. TOP DIAMETER / BOTTOM
COST:
# OF ITEMS
DIAMETER
0.5 / $3,078
1.0 / $3,729
2.5 / $7,356
5.0 / $8,330
7.5 / $13,365
10.0 / $16,210
24” / 3 - 5
30” / 3 - 5
60” / 3 - 5
84” / 3 - 5
120” / 3 - 5
144” / 3 - 5
4”
6”
9”
12”
18” / 20”
22” / 24”
M.H.’ S
6
11
19
33
44
54
Table 64F
GPD
$ EQUIPMENT COST
$ COST PER GPD
1,000
2,500
5,000
$25,366 $33,823 $51,652 $25.37
$13.53
$10.33
Table 64G
COST PER UNIT
$ COST LOW
50 Bags / min (10 lb bag) $20,966
100 ditto
$31,220
$ COST HIGH
$27,000
$43,250
SECTION C1 | 365.
ing, lifting into position, setting, leveling, aligning, and system check out. Man-hours are based on
pre-assembled units delivered to project, if cooling
tower is to be installed on roof level, i.e. above 20’
grade increase man-hours by 10 - 15% depending on
difficulty. Man hours units exclude excavation and
backfill, concrete basin, setting holding down bolts,
supporting structural steel, water treatment system
(piping), condenser return water piping, m. c. c ’ s,
or power cable and conduit also excludes foundations, setting holding down bolts, grouting, cranes,
brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on
earlier page to calibrate installation man-hours.
(J) Compressor – Centrifugal:
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(K) Centrifugal Pump STD ANSI Single Stage
– C S: Add 3% for transport to site for US and
overseas applications (ocean freight would increase
freight cost).
(L) Centrifuge Solid Bowl: Add 3% for transport to site for US and overseas applications (ocean
freight would increase freight cost). See chart next
page.
(M) Fan Centrifugal, C S A 285C, 1,800 RPM
Motor:
• Cost range $0.49- $2.16 CFM.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• See chart next page.
Table 64H
SIZE / HP
$ EQUIP. COST INSTALLATION
MAN HOURS
1 CY / 0.76 M3 10 HP / CS $17,140
1 CY / 0.76 M3 10 HP / SS $32,194
2.5 CY / 1.91 M3
$26,624
15 HP / CS
2.5 CY / 1.91 M3 $47,601
15 HP / SS
5 CY / 3.82 M3 25 HP / CS $45,633
5 CY / 3.82 M3 25 HP / SS $82,274
16
16
22
22
36
36
Table 64I
COOLING DUTY /
MILLION BTU’ S /
HOURS
MATERIAL COST MAN-HOURS
0.25
0.5
1
2.5
5
$45,730
$70,790
$108,086
$188,796
$452,794
28
42
82
142
186
Table 64J
H.P.
$ EQUIP. COST $ COST
INSTALLATION
PER H.P. MAN-HOURS
250
500
1,000
$169,184
$247,681
$320,211
$677
$495
$320
36
56
76
Table 64K
GPM
H.P.
$ EQUIPMENT COST
INSTALLATION MAN-HOURS
$ COST PER GPM
50
100
250
500
1,000
2.5
5
7.5
20/25
50 / 75
$3,103 $3,454 $3,879 $5,576
$7,412 14
20
28
36
52
$62.05
$34.54
$15.52
$11.15
$7.41
Copyright © 2017 Compass International, Inc.
366. | SECTION C1
(N) Horizontal Batch Centrifuge
• Cost Range $7,998 - $8,872 / SF
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(O) Reciprocating, Compressor with Motor:
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(P) Reciprocating Compressor C.S – 500 PSI:
Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight
cost).
(Q) Rotary Blower, C S A 285C, 1,800-RPM
Motor: Add 3% for transport to site for US and
overseas applications (ocean freight would increase
freight cost).
(R) Rotary Vacuum Drum: (multi section) CS
/ SS - (25’ X 15’ high): see chart next page.
(S) PORCELAIN SADDLE PACKINGS:
MATERIAL COST $78 - $88 / C.F.
(T) CEMENT PLANT: 2017 construction cost
basis: $310 - $475 per ton to engineer, procure and
construct a fully operational facility.
(65) MOTOR CONTROL
(A) Motor Control Center (600V): Add 3% for
transport to site for US and overseas applications
(ocean freight would increase freight cost). See chart
next page.
(66) MOTORS
(A) Electric Motor, explosion proof: Add 3%
for transport to site for US and overseas applications
(ocean freight would increase freight cost). See chart
next page.
(67) PNEUMATIC CONVEYING
(A) PNEUMATIC CONVEYOR SYSTEM
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, checking out of conveyor and
Copyright © 2017 Compass International, Inc.
Table 64L
TONS / HOUR
MATERIAL COST
$ / TON
MAN HOURS
5
10
15
20
25
144 188 242 274 360 4
4
6
8
8
Table 64M
CFM / HP
$ COST
MAN-HOURS
1,000 CFM, 2.5 HP
10,000 CFM, 20 HP
100,000 CFM, 200 HP
2,164 4,416 49,540 14
32
76
Table 64N
SF
$ COST
MAN-HOURS
10
25
50
$88,721
$173,468
$399,886
88
154
410
Table 64O
BRAKE H P
$ EQUIPMENT COST
MAN HOURS
250
500
1,000
$325 $638 $866 104
260
750
Table 64P
HP
$ EQUIP. COST $ COST PER HP MAN HOURS
100
250
500
1,000
$96,374
$233,728
$430,788
$744,822
$964 $935
$862 $745 65
112
230
346
Table 64Q
CFM
$ COST
MAN-HOURS
150 CFM, 7.5 HP
1,500 CFM, 75 HP
3,000 CFM, 150 HP
$8,920 $30,139
$41,251
17
54
72
SECTION C1 | 367.
all components, lifting into final position, setting,
leveling, aligning, and system check out. Erection of
supports, guides, brackets, frames, bolts and shims
excludes setting holding down bolts.
(B) PNEUMATIC CONVEYOR SYSTEM
C.S. Material Only
(68) PRESSURE LEAF FILTER
(A) PRESSURE LEAF FILTER: Carbon Steel
shell, carbon steel tubes: (A 36):Installation manhours include unloading, temporary warehousing,
site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning,
and system check out. Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:
See chart next page.
(69) PUMPS
(A) Gear Pump, C S A 285C:
• Add installation man-hours.
• Add 3% for transport to site for US applications
• See chart next page.
(B) Rotary Gear Pump, Canned - SS 316
– 1,800 RPM
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
• If pumps and motor are skid mounted multiply
above units by 0.85.
• See chart next page.
(C) Miscellaneous Pumps: see chart next page.
Table 64R
DRUM AREA
SF / M2
CS COST
PER SF
SS 304 COST
PER SF
250 / 23.23
500 / 46.50
1,000 / 92.90
2,500 / 232.30
$7.11 $3.33 $1.26 $0.18 $8.29
$3.79
$1.45
$0.32
Table 65A
SIZE
$ EQUIPMENT COST
MAN HOURS
100 A
225 A
400 A
800 A
$1,825 $2,085 $2,774 $3,126 6
8
11
16
Table 66A
SIZE
$ EQUIPMENT COST
5 HP (0.05 ton)
100 HP (0.50 ton)
1,500 HP (3.30 ton)
$910 $10,926
$127,914
MAN HOURS
6.5
32
118
Table 67A
SIZE
DIAMETER
MAN HOURS
50’section
50’section
50’ section
50’ section
2”dia with 10/15HP
motor
4”dia with 20/25HP
motor
6”dia with 25/35 HP
motor
8”dia with 35/40 HP
motor
10 man-hours /
0.22 LF
16 man-hours /
0.32 LF
20 man-hours /
0.40 LF
32 man-hours /
0.64 LF
Table 67B
LENGTH / LF - M
2” PER LF
4” PER LF
6” PER LF
8” PER LF
50 / 15.25
100 / 30.50
250 / 76.20
500 / 152.45
35.65
83.54
114.51
145.00
77.28
118.28
163.38
214.94
89.06
148.37
205.62
267.87
102.11
176.92
244.80
295.22
Copyright © 2017 Compass International, Inc.
368. | SECTION C1
Table 68A
AREA / SF – M2
# OF PIECES
M.H.’ S
M.H. PER SF
100 / 9.30
200 / 18.60
300 / 27.90
400 / 37.20
500 / 46.50
4/7
4/7
4/7
5/8
5/8
42
48
54
64
82
0.42
0.24
0.18
0.16
0.16
Table 69A
GPM
H.P.
$ EQUIPMENT COST
INSTALLATION MAN-HOURS
$ COST PER GPM
50
100
300
500
2.5
5
15
20
5,010
5,343 9,596 14,521 8
11
16
32
100.19
53.43
31.99
29.04
GPM
H.P.
$ EQUIPMENT COST
INSTALLATION MAN-HOURS
$ COST PER GPM
50
100
250
500
2.5
5
15
25
5,803 9,318
17,034 25,890 14
20
30
52
116.06
93.18
68.14
51.78
Table 69B
Table 69C
PUMP TYPE
$ COST
MAN-HOURS
Sump Pump 15 M3 hour / 2.5 HP SS
Transfer Pump 25 M3 hour / 2.5 HP SS
Ditto 5 M3 hour / 1 HP SS
Transfer pump 50 GPM / 2.5 HP SS
Transfer pump 100 GPM / 5 HP SS
$6,180
$8,452 $2,500 $6,057 $6,190 4
6
4
4
6.5
Table 70B
GALLONS
2,500
5,000
10,000
MATERIAL COST 304 S.S
61,671
92,832 135,007 Copyright © 2017 Compass International, Inc.
M.H.’S
MATERIAL COST $316 S.S.
M.H.’S
46
104
145
72,076 99,682 148,065 49
116
153
SECTION C1 | 369.
Table 71A
Table 73A
DIAMETER
COST PER LF
COST PER M
HEIGHT
18”
24”
36”
48”
270
418
688
906
886
1,372
2,257
2,971
20’ high, 5,810 24” diameter (2.00 ton)
40’ high, 25,864
48” diameter (3.50 ton)
96’ high, 82,887 72” diameter (15.00 ton)
$ COST
MAN-HOURS
12
33
96
Table 74A
GALLONS
$ COST PER GALLON TO
PURCHASE MATERIAL
D/D TO SITE
$ COST OF TANK PER GALLON
INSTALLED WITH BULK
MATERIALS & FIELD LABOR
$ COST OF TANK PER
GALLON WITH DESIGN /
CM & INSPECTION
25,000
50,000
100,000
250,000
500,000
1,000,000
2,500,000
1.50
1.33
0.93
0.62
0.49
0.41
0.34
3.18
2.76
1.89
0.95
0.69
0.56
0.41
3.66
3.17
2.18
1.08
0.80
0.63
0.47
(70) REACTORS:
(A) REACTOR CARBON STEEL: (Glass
Lined) with full jacket Cost per gallon $168.78 /
$44.66 per Liter.
(B) REACTORS – DIMPLE JACKET, REACTOR 50 PSI: JACKET 100 PSI: Installation
man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Excludes cranes,
foundations, setting holding down bolts, grouting,
brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on
earlier page to calibrate installation man-hours. See
chart previous page.
(71) REFRACTORY LINING
(A) Refractory Lining 1 Brick thick to stack.
(72) SILO / HOPPER:
(A) CONICAL ROOF: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
lifting into position, setting, leveling, aligning, and
system check out. Excludes cranes, foundations,
setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:
• Equipment and labor cost $5.60 - $7.50 per
cubic foot.
(73) STACKS
(A) Stack w/o flare tip, C S A 515: Add 3% for
transport to site for US and overseas applications
(ocean freight would increase freight cost).
(74) TANKS / STORAGE / SPHERES
(A). STORAGE TANK CONE ROOF A515
25 PSIG: Installation man-hours include unloading,
temporary warehousing, site transportation n/e 0.50
miles – 0.80 km, unpacking, lifting into position,
setting, leveling, aligning, and system check out.
(B). STORAGE SILO: Installation man-hours
include unloading, temporary warehousing, site
transportation n/e 0.50 miles – 0.80 km, unpacking,
Copyright © 2017 Compass International, Inc.
370. | SECTION C1
Table 74B
VOLUME (GALLONS)
WEIGHTS POUNDS / KG
MAN-HOURS
M.H. PER GALLON
1,000
2,500
5,000
10,000
25,000
50,000
100,000
2,600 - 1,180
3,100 - 1,410
7,100 - 3,225
12,500 - 5680
22,500 -10,225
51,500 -23,410
83,500 - 37,955
28
35
41
53
69
82
106
0.028
0.014
0.008
0.005
0.003
0.002
0.001
Table 74C - M.H.’S
GALLONS
MATERIAL COST $
MAN HOURS
1,000
2,500
5,000
7,500
10,000
6,511 10,801 16,363 19,044 23,453
8
14
19
26
32
Table 74D
DIAMETER IN FEET / M
WEIGHT / LBS
$ MATERIAL COST
INSTALLATION M.H.’ S
15’ / 4.57
20’ / 610
25’ / 7.62
30’ / 9.15
35’ / 10.67
40’ / 12.20
45’ / 13.72
50’ / 15.24
19,500
29,800
48,800
69,600
88,600
119,500
151,400
189,600
$60,542
$89,386 $122,478 $149,099 $197,620 $259,741 $292,860 $358,371 98
139
183
214
283
387
445
502
lifting into position, setting, leveling, aligning, and
system check out. Excludes cranes, foundations, setting holding down bolts, grouting, cranes, brackets,
supports, piping, cable, conduit and electrical hookup: 0.25 – 0.50” thick wall. Size 5’ – 15’ Diameter
- 10 - 66’ high.
(C). STORAGE TANKS - Reinforced Fiber
Glass (Flat Bottom): Installation man-hours include
unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting
into position, setting, supports, brackets, leveling,
aligning, stairway / handrail and system check out.
Excludes cranes, foundations, setting holding down
Copyright © 2017 Compass International, Inc.
bolts, grouting, piping, cable, conduit and electrical
hook-up:
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(D) SPHERES (ASME incl. stairs A 515):
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
foundations, setting holding down bolts, grouting,
cranes, brackets, supports, piping, cable, conduit and
electrical hook-up:
SECTION C1 | 371.
Table 74E
CAPACITY IN GALLONS
CARBON STEEL COST
M.H.’ S
S. S. 304
M.H.’ S
5,000
7,500
10,000
20,000
25,000
$27,951 $34,877 $42,544 $71,354 $92,844 26
37
42
56
67
$41,126
$50,840
$63,329
$105,080
$109,474
29
43
49
65
73
(E). STORAGE TANKS (ATMOSPH) Installation man-hours include unloading, temporary
warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
cranes, foundations, setting holding down bolts,
grouting, cranes, brackets, supports, piping, cable,
conduit and electrical hook-up.
(F) STORAGE TANKS (CONE ROOF)
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
cranes, foundations, setting holding down bolts,
grouting, cranes, brackets, supports, piping, cable,
conduit and electrical hook-up.
(G) STORAGE TANKS (FLOATING ROOF)
Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles
– 0.80 km, unpacking, lifting into position, setting,
leveling, aligning, and system check out. Excludes
cranes, foundations, setting holding down bolts,
grouting, cranes, brackets, supports, piping, cable,
conduit and electrical hook-up.
(H) VESSEL MATERIAL COST: Installation
man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,
unpacking, lifting into position, setting, leveling,
aligning, and system check out. Excludes cranes,
foundations, setting holding down bolts, grouting,
cranes, brackets, supports, piping, cable, conduit and
electrical hook-up.
(I). TANKS / VESSEL, API CONE ROOF
C.S. MATERIAL ONLY Refer to previous tables
for man-hour installation:
Table 74F
CAPACITY /
GALLONS
MATERIAL
COST
INSTALLATION
M.H.’ S
25,000
60,000
100,000
200,000
325,000
$60,259
$91,809
$104,966
$144,143
$195,200
78
118
133
183
218
Table 74G
CAPACITY /
GALLONS
MATERIAL
COST
INSTALLATION
M.H.’ S
15,000
30,000
50,000
100,000
150,000
250,000
$11,444
$16,874
$22,810
$36,083
$48,232
$73,000
14
21
28
43
78
94
Table 74H
GALLONS
MATERIAL $ COST PER GALLON
15.70 – 21.85
1,000
2,500
11.25 – 16.80
5,000
6.50 – 10.60
10,000
3.90 – 5.75
Table 74I
GALLONS
MATERIAL COST
$35,747 5,000
10,000
$43,952 25,000
$61,022 50,000
$76,861 100,000
$97,294 250,000
$158,894 COST / GALLON
$7.15
$4.40
$2.44
$1.54
$0.97
$0.64
Copyright © 2017 Compass International, Inc.
372. | SECTION C1
(J) TANKS / VESSEL, API CONE ROOF C.S
/ Glass Lined: MATERIAL ONLY Refer to previous tables for man-hour installation.
(K). TANKS / VESSEL, API CONE ROOF
FRP: MATERIAL ONLY Refer to previous tables
for man-hour installation.
(L). Spheres A – 515 CS - 5/8’thick wall: Add
3% for transport to site for US and overseas applications (ocean freight would increase freight cost).
(M) STORAGE TANK - ATMOSPHERIC: 25
– 50 M3 = $300 - $375 / M3
(N) Vertical Storage Tank, C S A 285C:
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(O) Vertical Storage Bin CS Coned Bottom:
Cost per CF = $6.00 - $9.80
(P) FRP Tank, (Design Temp, 75 Deg F)
• Add installation man-hours.
• Add 3% for transport to site for US and overseas applications (ocean freight would increase
freight cost).
(Q) Glass lined C.S. Tank (Horizontal Rounded Ends):
• Add installation man-hours.
• Add 3% for transport to site for US and over-
Table 74J
GALLONS
MATERIAL COST
5,000
$53,483 10,000
25,000
50,000
100,000
250,000
$73,278 $101,372 $122,299
$159,562 $221,387
COST / GALLON
$10.70
$7.33
$4.05
$2.45
$1.60
$0.89
Table 74K
GALLONS
MATERIAL COST
5,000
$65,065
10,000
25,000
50,000
100,000
250,000
$84,538
$117,166 $149,935
$191,354
N/A
COST / GALLON
$13.01
$8.45
$4.69
$3.00
$1.91
N/A
Table 74L
CF
$ MATERIAL COST
50,000
$11.40 100,000
$7.05 150,000
$3.80 INSTALLATION
installation 1.5% –
3.5% of material cost
installation 1.5% –
3.5% of material cost
installation 1.5% –
3.5% of material cost
Table 74N
GALLONS
WEIGHT (TONS)
$ EQUIP. COST INSTALLATION MAN-HOURS
$ COST PER GALLON
10,000
30,000
75,000
100,000
3.1
6.5
11.75
16
21,433 33,192 69,298 81,149
2.14
1.11
0.92
0.81
19
28
64
118
Table 74P
GALLONS
WEIGHT (TONS)
$ EQUIP. COST INSTALLATION MAN-HOURS
$ COST PER GALLON
1,000
10,000
30,000
50,000
0.50 ton 1.50 ton 2.10 ton 3.85 ton 11,402
40,179 73,253 114,718
11.40
4.02
2.44
2.29
Copyright © 2017 Compass International, Inc.
12
24
32
62
SECTION C1 | 373.
Table 74Q
GALLONS
WEIGHT (TONS)
$ EQUIP. COST INSTALLATION MAN-HOURS
$ COST PER GALLON
5,000
10,000
25,000
35,000
3.50 ton 4.80 ton 5.70 ton 8.45 ton 34,462 53,069
85,340
116,050
6.89
5.31
3.41
3.32
seas applications (ocean freight would increase
freight cost).
(R) Glass Lined C.S. Tank: 250 – 1,000 gallon
= $136 - $153 / gallon
(75) TOWERS
(A) Tower Packing, Calcium: Add 3% for
transport to site for US and overseas applications
(ocean freight would increase freight cost).
(B) Tower Trays / Perforated S.S.316 (2 Sections): Add 3% for transport to site for US and
overseas applications (ocean freight would in