2009 Front - End / Conceptual

Estimating Yearbook
8th Annual Edition

Front End / Conceptual CAPEX Estimating Issues

Capital Cost Estimating Fundamentals
Capital Cost Estimating Methods
Benchmarking Data
Exponents / 6/10 th Rule Scale Up Values
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 Fees, Labor
Rates
Process Equipment Prices (85+ pages)
Front End / Semi-Detailed Estimating Systems

COMPASS INTERNATIONAL

COMPASS INTERNATIONAL
Table of Contents
Section / Reference Number
A-1 Introduction to Capital Cost Estimating:
The General Forecast for 2009 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:
A-2 - 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:
A-3 - 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:
A-4 - Basic Man-Hour Benchmarking Data & Reference Tables:
A-5 - Site Selection / Cost Data Sources / Estimating Checklist:
A-6 - Value Engineering / Change Orders / Claims / Contingency:
B-1 - Scale of Operations / Exponents (150 + Plants / M.E. items):
B-2 - Additional Estimating Factors Cost Models (7 examples):
B-3 - Square Foot / M2 Estimating Data (104+ Buildings /
Facilities) Revamp / Rehabilitation cost values.
B-4 - Unit Price Data (1,000+ unit cost items):
B-5 - General Cost Estimating Data.
Location Factors (200+ North American / International Cities):
International Location Factors / Productivity:
Engineering / Engineering / CM Fees:
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:

Page Number
1 - 28

1 - 30

1 - 40

1 - 72
1 - 25
1 - 34
1-6
1 -14
1 - 13
1 - 40
1 - 24

C-1 - Major Equipment / Process Equipment Cost & Labor

Models (125 # Major Equipment Items).
D-1 - 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:
ISBN 0-9725845-2-8

1 - 85
1 - 59

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 / Fax (215) 504 9777
E Mail
sales@compassinternational.net
info@compassinternational.net
compassinternational@rcn.com
Acknowledgements: This data source is the result of more than twenty years research and data
collection. The information contained in this data source was collected from more than 50 +
completed CAPEX projects (Refinery, Chemical and Manufacturing facilities) located in North
America, the UK, Europe, Asia, Africa and South America valued between $0.50 million to over $3
billion. The data is based on Compass Internationals twenty year old cost library, augmented with
latest cost and labor data from International Development Banks and Agencies, European Union
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 unions, professional society articles, an
assortment of newspaper / magazine articles, various almanacs / directories / tables / reference
books, internet data and various cost construction related publications, the cost models and tables
have also been augmented by a number of personal estimating libraries (that in some cases are more
than twenty five years old), this information has been audited, expanded upon, modified and
calibrated and refined to todays 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 individuals 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 2009: 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
budgeting tool or as a check against received bids. 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

SECTION A - 1
INTRODUCTION TO CAPEX ESTIMATINGAS 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.
A front-end estimate / conceptual estimate is usually the first step in the CAPEX
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
there decisions to build new / revamped facilities): as we look into the future as of late
2008, the issues to be faced in 2009 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 the
understanding the dynamics of this situation, and the associated engineering /
construction related costs specific to Process / Manufacturing / Chemical facilities.
THE GENERAL FORECAST FOR 2009 AND BEYOND: (Specific to the Process /
Manufacturing / Chemical Industry and to the construction of these facilities).

Barack Obama won convincingly the 4th November 2008 American General
Election, he becomes the first African - American to take up office in the White
House and he will become Americas 44th President. Will his future policies have
an impact on global construction costs, only time will tell?
The worldwide economy is under extreme stress, this has been caused by the
global economic / finance downturn. Global construction activity will experience a
significant slowdown that could last anywhere from 2 4 years.
2009 will be a pivotal year for the global economy, trade imbalances, budget
deficits, the banking / finance problems, entitlement programs, energy prices just
a few of the issues that will impact the global economy and the global
construction market.

-1-

The enduring pain from the global finance / credit crunch is impacting all US /
Global construction sectors, the question is how long will it take for this malaise
to improve.
As much as 75% of all new refinery / gas plant construction projects have been
put on hold, with oil prices in the $35 - $45 a barrel range and with the possibility
that prices could go lower, it might be a long time before these projects come to
life again.
The actions of Russia and the Ukraine in blocking gas supplies to Western
Europe have still to play out; gas is still not flowing as of 1/17/2009.
The Israeli move into Gaza in early January, 2009 does not bode well for Middle
East peace and future construction prospects in the Middle East.
Inflation in the USA will continue to rise in 2009 averaging 3.5% for the year.
Volatile energy and food prices will be the main drivers of this significant rise in
prices.
The USA had a 7.2% unemployment rate in January, 2009; President Obama
hinted that this could rise to 10% by the end of 2009.
Uncertainties remain as oil and raw material prices increase relentlessly and then
decrease just as dramatically i.e. copper, steel, glass and lumber, it difficult to
forecast these costs as we move into 2009, will oil head back up to $140 again,
or will head south, below $30 a barrel, will we see another 1985.
Growing pessimism about the German, French Italian and UK economies as of
1st Q 2009 (they re all in recession) is impacting the Euro / Dollar exchange rate,
the forecast for the future growth of the Euro zone is cloudy going into 2009.
Spending on power plants, wind and solar facilities, and transmission lines
soared in 2008. In the USA it is forecast that 20 - 30 new nuclear power plants
will get green light to proceed in 2009. In the UK the Prime Minster announced
that 6 - 8 new nuclear plants will be ordered in the next year or two.
Construction related to US and overseas onshore oil and gas development will
slow down in 2009 with oil in the $40 a barrel range, $50 billion worth of tar sand
projects in Canada have been cancelled as of 1/2009, Saudi Arabia has
cancelled half a dozen major refinery projects also.
Some ethanol plants are now being delayed or cancelled, due to negative
publicity of increases in animal feed and food costs. With the increase in corn
prices, this could signal problems for ethanol industry, the 200 or so producing
ethanol facilities in US may have to be retrofitted to use a combination of switch
grass, sorghum, palm oil, hemp, wood waste bark, sawdust, sugar cane
rapeseed and possibly solid waste.
The US construction market related to automobiles, housing, and lodging will
slow or decline significantly in 2009.
Residential construction and commercial construction will decline in 2009 due to
the sub-prime lending crisis
Lumber prices in US have declined 10 - 12% in the last year due to drastic slow
down in housing market.
In 2009 will a continuing major interest / activity in Tidal / Hydro, Fuel Cell
Technology, Nuclear, Geothermal, Solar (Photovoltaic) Wind Power
The OECD reported in October 2008 that the Euro zone plus Japan economies
look to be entering a long period of recession for 2009 and 2010.
VW in mid 2008 announced the construction of a grass roots auto plant in
Tennessee, the facility will initially produce 150,000 cars per year, and the facility
is forecast to cost $990 million.

-2-

Some experts are forecasting $25 a barrel oil in 2009; this will stymie future
CAPEX oil and gas projects, most probably.
In the petro-chemical industry Saudi Arabia, Venezuela and Iran are set to
become formidable players in the global oil / chemical market, these countries
could account for 30% of the world supply by the year 2011.
Will inflation experience a spike, with $120 oil and the pressure on commodities
this situation could change dramatically in 2009?
On the political front the USA faces some serious decision making situations in
2009 especially with a new President, specific to Russia and Georgia, North
Korea, Iran, Iraq, Venezuela and Pakistan (the next big problem country).
Globalization has had a 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 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 1990s history has a habit
of repeating itself.
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.
Geopolitical risks include:
1. The world economic downturn (could it turn into a depression).
2. Iran producing an atomic bomb and the ramifications of this.
3. Venezuela flexing its regional muscle and its future nationalization
policy, with falling oil prices this problem may go away.
4. Russias future energy policy, consider the recent gas disruption
(1/2009). Lower energy prices are not good for Russia growth
plans.
5. The continuing war against al Qaeda in Pakistan and Afghanistan.

Additional topics and questions that could impact the Process / Manufacturing /
Chemical companies in 2009 - and consequently the engineering / construction
marketplace, include:

The recent hostilities between Russia and Georgia, together with Ukraine (gas
shutdown) and the consequences of these to the global construction market:
Worldwide population growth, especially in Asia and South America, we will most
probably see 8 billion people on the planet by 2015.
China and India are seeking long term toll manufacturing / supply contracts
countries such as Brazil, Venezuela, Nigeria, Angola, Algeria, Saudi Arabia, Iran,
Qatar and the UAE, these countries in the past dealt exclusively with North
American and Euro zone chemical / manufacturing companies
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.

-3-

The rapid increase of commodity prices, such as steel, copper, aluminum, lumber
and cement.
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 decade 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.
The ongoing U.S.A. Trade imbalance: and the consequential impact of a falling
US dollar to the world economy, this trend seems to have relented as of
September 2008.
Increases in military hardware and manpower expenditures by China: and its
future worldwide consequences.
The impact of $147+ a barrel oil (as of June, 2008) and the economic impact this
will have on the worlds economy and the drop in price to $40 in January, 2009.
The ability for Automobile / Capital goods manufacturers to develop and to bring
to market there products more rapidly, the use of 3D / digital design to ensure
that piping / utility collisions are avoided in the design and construction process,
thus minimizing re-work and generally speeding up the design process.

To see how things have changed in this industry in the last five years is the fact that
China will have a construction market as large as or bigger than the USA in the next
decade or two, the lions share of future CAPEX expenditures appear to be headed
overseas, it would appear that the days of big corporate engineering / estimating
departments would be over in North America. This situation was one the main driver for
producing this database, the publisher of this database determined that there would be a
need for this type of information, the writer(s) have always wanted an estimating note
book that they could carry around with them to produce or audit / check CAPEX
estimates hence the creation of this book and its companion publications. The
(CAPEX) capital cost for the Engineering, Procurement and Construction project (s)
comprises of all the expenditures associated with the primary creation of the specific
plant or facility: this usually embraces the following described direct and indirect
construction and engineering related elements: Project Control (Capital Cost
Estimating, Planning and Cost Engineering) is understanding were the project is in
relation to its planned goals, it is being aware of where the project is headed and
communicating these findings with the appropriate project stakeholder so that
constructive mid course solutions can be implemented to maintain or improve the current
budget and schedule, this publication is focused on the activity of Conceptual Cost
Estimating CAPEX estimating, a flow diagram is depicted on the following pages
indicating how conceptual cost estimating fits into the overall Project Management /
Control cycle. CAPEX estimating specific to future capital expenditures related to
Process / Manufacturing / Chemical facilities involves the collection, review and
condensing a wide assortment of information and data, some of the more significant
items and work tasks are as follows: (1) Owner front-end costs including internal ROI
studies and marketing analysis reviews, Research and Development costs. (2) Property
or land purchase or leasing / lease back arrangements, including perhaps third party
tolling arrangements (including any site improvements and modifications). (3) Production
of Front End Engineering Architectural Design Deliverables - Any front-end
architectural or engineering economic - feasibility studies completed internally or by a
third party i.e. A / E or EPC firm: (4) Production of the Issued for Construction - The
Architectural - Engineering (A / E) (EPC) design effort (production of specifications and

-4-

design drawings and project design deliverables) including reproduction expenses and
associated travel costs. (5) Project Management activities associated with directing the
CAPEX project includes owners and contractors staff. (6) Procurement activities the
buy-out of the work (scope), i.e. purchase orders and construction contracts: (7) The
actual field construction effort, including site purchasing together with major equipment
(which could be bought out in the home office, bulk and engineered materials, i.e.
concrete, stone and lumber. (8) Field indirect support including field supervision of the
construction scope, trailers, storage sheds / small tools and consumables. (9)
Construction equipment requirements i.e. cranes, welding equipment and the
subsequent maintenance of this equipment, and Field establishment i.e. (Division 1 or
General Conditions / Preliminaries): (10) Construction Management of the project,
including any third party NDT inspection / testing requirements, and, (11) Other items
could include contractors overhead, fees, freight, bonding; insurance (BAR and workers
compensation) and local state taxes / B&O taxes, (VAT / GST on overseas applications),
tariffs and duties, specific to the project. There are a bunch of related matters (perhaps
we could call it (12) that may need to be considered includes: expense items
(relocation), demolition work, owner provided equipment / materials free issued to the
contractor, furniture and fixtures, spare parts, initial chemicals and vendor assistance,
start-up expenses, commissioning and possible validation activities. The extent of each
of the above cost elements of course is based on the type of facility (i.e. unique first of
its type (needing new utilities or an continuing ongoing production facility, that has a
history and has an existing utility infrastructure in place), magnitude or scale of operation
small operating unit i.e. 2 or 3 operators or a toll manufacturing plant or a large
operation with 100s of plant operators, its operation 24 / 7 / 365 days or 8:00 to 5:00,
plant control philosophy and the actual location of the CAPEX project (s) North America
or overseas. The essential principles of Project Control are to provide the best technical
and business solution to the business unit contemplating a new facility expansion(s) or
upgrade(s). The initial description of a project scope begins at project commencement, it
is accomplished with the establishment (creation) of an approved design basis that is
accepted by management (accepted to a least go to the next step of project approval
cycle), this particular section will not get into how the scope of a capital project is
developed, however its purpose is to provide basic details of how to successfully
estimate early / front end scopes of work. An accurate Front End / Conceptual Cost
Estimate can be the first step in the successful execution of a capital project, this first
capital cost estimate should provide the project team with early (a budgetary and an
initial path forward document) - information specific to cost, schedule, manpower
requirements for the usual activities associated with a Engineering, Procurement and
Construction (EPC) project, the tasks that will derive benefit from this first estimate are:

The initial capital cost of completing the EPC effort.

Detailed design (The approximate Engineering / Design staffing needs).
Procurement. (The number of Purchase orders and construction contacts
required).
Field Labor (The peak manpower needs) / Construction Management. (The
number of individuals needed to supervise and ensure the project is completed
on time and in a safe manner).
The major milestones associated with the CAPEX project i.e. start and finish
date.

The decision on were to locate a new Chemical Facility / Manufacturing location(s) is

many times a tough call, an easier said than done undertaking, it needs the input from

-5-

corporate engineering, corporate finance personnel and the business units senior
management (the folks that will take ownership of the completed facility) this decision is
one in which the cost estimator can play a significant role in finalizing the manufacturing
process and possibly selection of the final site location, what are some of the key site
selection factors that need to be analyzed and estimated, some of these factors are
listed below, what is the 5-10-15 year growth plan for this facility / and or product, is this
were future growth for this product will occur, i.e. South East. Asia (China or India) 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 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 there viability. The decision to engineer /
procure and construct (EPC) a new Chemical / Manufacturing 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 an 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 its 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.

-6-

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.

Project Manager
Engineering Data
Procurement Data
Construction Data
Project Controls
Cycle

Capital
Estimating

Planning /
Scheduling

Cost
Engineering

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 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):

-7-

#
1
2
3
4
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

Issues and factors that can impact the bottom line of a CAPEX Estimate
Engineering
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).

-8-

10
11
12

Liquidated damages / Consequential damages clauses.

Bonus / Penalty clause for early or delayed completion.
Contingency issues (technical and general contingency).

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.
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 PFDs
early P&IDs, preliminary plot plans indicating were 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-offs 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):
Category
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

-9-

Percentage Value
22.9

Percentage Range
18 - 27

21.5
24.3
11.7
13.9

17 -26
19 - 29
9 - 13
10 - 17

design deliverables.
Construction Management (incl CM Gen Conditions)
Total

5.7
100.0

4-8
100.0

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 time-consuming 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 unit costs,
taxes and escalation and to attempt to look into the future, say two or three years is very
difficult and demanding, encumbered with potential dangers (future events are of course
difficult to anticipate, for example, who would have thought in the early 2000s that a
barrel of oil would cost $140 + a barrel in January of 2009 and then drop like a stone to
$35), hopefully this publication will shed some light on this important topic(s).
A CAPEX capital cost estimate can be considered as one of the following:

The bottom line cost / bid for completing an Engineering, Procurement and
Construction effort, it is the work effort of determining all the numerous cost
elements which will be required for a particular activity / (EPC) construction
project and arriving at a total cost value for completing the itemized scope of
work (basically a shopping list of required items).
A cost summary together with a description of work (scope of work / mission
statement) specific to a project to be performed or considered.
A current photograph / snapshot of an (EPC) project(s) current scope of work
together with a cost value of its anticipated final cost.
A judgment / opinion of final cost by a person(s) / cost engineer(s) / cost
estimator(s) / project team that has considered the SOW to be performed.

This data source and the basic focus of this publication is targeted primarily at the
manufacturing / process industry / chemical engineering / pharmaceutical / industrial
sectors, 60% to 70% of the cost estimating / benchmarking data contained in this data
source is targeted on these specific industry sectors, however it is not aim of the
database to exclude other construction industry sectors, some of the following
benchmarks and data can be use in estimating the cost of General Buildings (Airports,
Logistic centers / Warehouses, Office facilities, Public Buildings, Schools, together with
civil engineering related projects etc.) some of this data is outlined / indicated in section
B 3, B 4 and C 1, this data can be used in the production of cost estimates for other
specific / one off engineering and construction discipline items such as demolition, civil,
site work, architectural, engineering and construction management fees, mechanical,
electrical and instrumentation / controls and insulation (refer to section A 4 and D 1 for
examples of these topics) which may be required and budgeted using similar / parallel
conceptual / front end estimating methods and procedures described in this data source,
this should allow a cost estimator the ability to compile a reasonably accurate front end
CAPEX estimate. The main goal of this publication is to assist the user in not dropping
the ball and making erroneous front end / conceptual type capital estimates and
basically to provide a more focused and disciplined approach in producing a more
accurate and concise front end / conceptual estimate(s) i.e. to shed some light on an

- 10 -

area of cost estimating that can be a challenge to new young estimators that are starting
out in this business and need an initial road map to get started. The responsibilities,
mission statement and basic activities of capital cost estimating (the job) is for all
intents and purposes a data gathering activity (getting your arms around the projects
scope and documenting it), it includes reviewing design documents (design deliverables
drawings and specifications and scopes of work) if they exist and the preparing a takeoff / shopping list of scope items that need to be completed in the execution of the
CAPEX project, in addition it includes gathering local construction cost data, local
material costs, field crew productivity / production statistics, determining 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 make the world go round, - CAPEX funds whether they be dollars,
pounds, yen or euros 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 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 there employer and there 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:

- 11 -

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 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, the most important prerequisite is the
ability to look into the future (crystal ball and tea leaf readersapply here.) and the
second most important trait is the ability to get along with people and be a team players
(being able to communicate and collect relevant data with or from the other team
members is very important squeezing out all of the relevant data from the team
members is important), complete with the skill of being able to cut through all the details
and focus on the specific cost drivers of the future / current EPC project. A number of
the more important qualities and basic traits are Business Acumen (understanding the
importance of cash flow, change management i.e. change orders / claims, negotiations
with clients / vendors / sub contractors). Knowledge of the construction process i.e. the
understanding of the following main categories (1) Construction / Engineering /
Procurement / Construction Management, field experience is a definite advantage: (2)
Communications and Computer skills (computer skills are becoming increasingly more
important in this business environment): (3) Team Player / People Skills as was
mentioned above (work individually or as part of a team): (4) Time Management (create
shortcuts and ability to think outside the box): Additional know-how that would be
beneficial to an Owner or EPC organization is the aptitude to visualize each physical
engineering, procurement and construction activity / operation (and how they impact /
ripple into each other fitting all the pieces of the puzzle together) that is required to be
integrated into the construction project, and how each activity / work effort fits into the
total / whole scope of work (big picture), and to interpret the extensive and less
significant details into accurate and detailed total cost budget / cost elements, ensuring
that the scope (the intent of the design team is captured in the take-off process is
followed as carefully as possible). One of the main prerequisites of professional
estimator / cost engineer is to ask questions and to question the feedback and answers
that are provided by his or hers questions. The preponderance of seasoned cost
engineers / estimators, individuals that have been involved with estimating for more than
five years have in many cases collected and formulated there own personal estimating
libraries during their career(s), many times when these individuals retire these libraries
are lost, or thrown out, the exercise of this publication is to download the writers own
extensive library and some of his co-workers / colleagues and to make it available to
rookie and journeymen / women cost engineers / cost estimators joining the industry.

- 12 -

This important and vital subject matter i.e. Front End / Conceptual Estimating is a data
source that cost engineers and estimators are constantly searching for on a day too day
basis (hopefully this data source will be beneficial to the reader on future Front End /
Conceptual cost estimating activities). For the reasons just touched on, the author(s)
after years of searching / compiling and collecting this type of process related capital
cost estimating data decided to summarize there thoughts and views on this subject in
an effort to fill this void, without getting too deep / long winded and detailed, which is
hard to do on a such a large and complex topic, the book is aimed at giving the reader
the headlines of various cost estimating items, a quicker way of arriving at a cost.
All CAPEX capital cost estimates have one universal objective, they provide the basis for
management action (go or no-go or go back and re-work the numbers), how much will
this project cost, what is the ROI, can we buy this product from a Toller, does it make
economic sense to build this proposed facility, should we expand this facility, were
should we locate this facility in North America, Europe or in South East Asia, questions
and more questions 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 there 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 these 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% - 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

- 13 -

more is known about the project and we would basically need less contingency, and 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 A3 discusses and describes various capital cost estimating methods, the remaining
sections drill down into more detailed estimating data. Many EPC projects are
successful, it was estimated correctly, it was built on time and it produces the specified
material / product that it was design to produce, however perhaps 10% 30% are
unsuccessful (the capital budget was exceeded, the plant was handed over late and the
facility is not producing the product in the quantities it was designed for or to the
specification required), no one wants this situation. Loosing money on EPC (CAPEX)
projects is the reality all companies face today, this situation has occurred since Adam
was a boy, cost over runs are not a new event although such incidences seem to be
more customary in recent years, perhaps because more CAPEX projects are being
undertaken now than in the 1960s and 1970s (many times because goals are set
unrealistically high) this is because interactions / communications are much more
widespread (the curse of e mail, more individuals seem to be in the loop and have input
into the day to day business running of the project), everyone always remembers bad
news, cost over runs have happened in the past and guess what they will happen in the
future. Some of the reasons that this situation seems more prevalent today are:

Failure to scope out and estimate the project and failure to recognize the risks
associated with the project.
Clients are trying to get to the marketplace quicker, to beat there competitors to
the punch (it seems everyone is in a rush these days).
Less CAPEX dollars are available now and this will be the same possibly in 2009
and 2010 (refer to next point).
Many major projects are being built in S.E. Asia (China and India are currently
experiencing significant inflows of CAPEX from North American and Western
European operating companies, however with the recent credit crisis this seems
to have slowed down) and in other remote locations (language, culture, time
differences all add to the challenge).
Companies are trying to do more with less money (i.e. CAPEX spending in USA
down between 50 60% since 2000, less qualified staff are available than
previously).
Many projects are built using fast track engineering and construction methods.
A lot of the old hands have retired, Corporate Engineering groups have
downsized, and Project Managers are getting loaded up with additional

- 14 -

responsibilities, it seems that more and more reports are needed now,
construction professionals are working harder now than they did in the past.
The capital cost estimate, be it a five page Front End study or a detailed 500+ page
document with hundreds of line items (is a dynamic and living document) it is a listing
of basic assumptions, a priced out shopping list of the owners (projects) needs,
(hopefully it corresponds to the needs of the client) its end result, at best can only be a
forecast / educated opinion / snapshot of the funds needed to complete the scoped out
work of the individual(s) involved in the engineering, procurement and construction
scope definition and estimating effort. The cost estimator more often than not develops
the path forward / road map of the estimating process (and is the focal point of the
estimating effort refer to Section A-2 for information on the Estimate Plan), it is he or
she who should determine the estimating plan, who does what and when - with
management buy-in of course, what are the required engineering and procurement
deliverables needed to produce the capital cost estimate, do we require vendor quotes
and layout sketches, it is the cost estimators / cost engineers function to determine the
resources, tasks, construction equipment, crew sizes, field installation production man
hour rates, bulk and engineered material 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 data bases 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 / high light / 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 magazine(s) 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. Lets
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, its embarrassing and it could 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 discs, C D ROMs and smart sticks and can be accessed via the internet, also
dial up / direct on line service is 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

- 15 -

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 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 sheets / block diagrams.
Latest engineering deliverables (plot plans and general arrangements).
Conceptual plot plan (Major Equipment locations / foundations).
Applicable sketches / notes / photographs / videos, reports such as PCAs
etc.

It goes without saying, to have all of this data, together with outline specifications of
major equipment, phone quote pricing of major equipment items, engineered materials
and conceptual quantity take off information available, (foundations, piping lengths,
electrical motor(s) list, and perhaps an instrumentation list etc), this is a lot of data to
absorb, however the estimating effort / endeavor must be completed to support this early
cost estimating (of course there is a cost to procure this front end engineering
documentation, that may have to be included with the CAPEX estimate, the question is
how do we estimate these scope items, how much time do we available (1) should we
produce detailed take-offs of the foundations and piping systems etc, or should we (2)
estimate the bulk accounts by historical ratios, percentages and factors (described in
following sections) remember the more definition (design information) that is available
usually means the estimate is more complete and its accuracy is improved, this is an
important decision that needs to be made in the CAPEX estimating effort. Loosely
defined scope items / construction categories that are often / difficult or challenging to
put your hands around and price out are:
1. Outside Battery Limits: OSBL piping (above and below grade).
2. Outside Battery Limits: OSBL electrical work (ditto).
3. Other work outside the battery limits (Roads, jetties and loading areas
etc).
4. Fencing / Gatehouses / Parking and Lay down areas.
5. Product loading area / tank farm facilities / warehouses.
6. Process support utilities (steam / electricity / WWT facilities).
The reason these are many times difficult to price out is that there is limited information
(design parameters / basic design information) on the scope of these items, these cost

- 16 -

items are typically not started and defined from an engineering point of view until the
heart of the project the ISBL facility is nailed down we need to know the product
specification / production rates of the ISBL unit before we can size out the OSBL utility
needs. Many times these items 1 6 are understated (undervalued in the initial
estimating effort) a lot of times these process supporting components are called the offsites or outside battery limits items (OSBL), the actual process operating unit is as we
know is the inside battery limits i.e. - (ISBL). The (OSBL) scope items can sometimes be
a separate capital cost estimating effort, but usually it is estimated by the individual
estimating the (ISBL) scope of work: The OSBL / Off Sites are loosely described above
1 - 6 and include (ISBL) support systems i.e. power / electrical production / steam
generation and distribution systems / process support utilities and systems (compressed
air, gas, process and cooling water / ponds), storage / tank farm facilities, loading /
shipping / receiving facilities, jetties, wharfs, pumping stations, elevated water storage
tanks, road crossings, etc, the facilities are of course vital for the plant / facilities safe
ongoing operations, by there very support function they are not a part of the specific
processing units manufacturing / chemical reaction production major equipment, these off sites might support two or more (ISBL) operating units, they are necessary
utilities / services needed to ensure the manufacturing plant / facility operates in a safe,
reliable and cost effective way, typically these support systems are some of the last
items to be engineered and estimated / evaluated, (hence the reasoning why they are
difficult to estimate / scope out at the early stages of the project). The OSBL / off-sites
include the scope described above, plus some of the following. Think of them as items
outside the main process, however they are needed to make the main process work
and function safely:

Perimeter roads / tank farms / product storage tanks / pipe track crossings.
Power plants / electrical power generation.
Utility water, gas supplies / plant air.
Process water / cooling ponds.
Sub stations, or supply / steam production by means of oil / gas fired boilers,
potable cooling and process water supply and needs.
Wastewater treatment facilities and sewage plants.
Administrative / control / warehouse / repair & maintenance workshops / support
buildings change rooms / etc.
Parking areas, fenced off lay down / marshalling areas etc.
Raw material receiving etc.
Flares.
Pipe racks etc.
Product shipment buildings, guard houses jobsite security etc.
Jetties and off-site piping / pump houses etc.
Plus other Off Site (OSBL) specific items not described above.

As was mentioned earlier in the normal detailed engineering timeline of a project, these
scope items / elements are many times engineered and defined at the 20% design level
or detailed design mid point of the detailed design / engineering and procurement effort;
and that is the problem for the estimator / cost engineer, definition of these work tasks /
scope items is typically loose i.e. not to well defined (the definition of the project is not
yet focused at this point in the projects life cycle). Many times cost estimators / cost
engineers use a percentage of between 20% and 70% of the defined ISBL process unit
cost to come up with a value for this OSLB / off sites scope of work (not very scientific

- 17 -

to say the least, but the percentage has some validity and when nothing else is
available), then again, many times senior management will consider this as not accurate
enough and requests better definition (and rightfully so, this value could be a significant
part of the projects final cost), i.e. more scope definition (hence more design and
additional engineering costs) to define and scope out this important part of the project.
An estimator needs to review the OSBL scope, is it a complex piece of work, or is it
minor in nature, its the call of the estimator and his or hers management on how to
estimate it.
In Front End Conceptual / Preliminary Estimates, determining and calculating the
commodities (many times referred to as bulk or engineered commodities or bulks)
examples of these items are as follows:

Stone / Gravel / Hardcore / Engineered fill.

Concrete / Rebar / Formwork.
Architectural finishes and features.
Bricks / Masonry / Pre-cast walls / Curtain walls.
Structural Steel / Gratings / Miscellaneous Metals.
Miscellaneous, Steel / Ironwork / Platforms.
Pipe / Valves (not control valves) / Fittings.
Electric cable / Conduit.
Insulation (equipment and pipe).
Refractory.
Instrumentation Material (none tagged).
Paint / Coatings.
Road Paving (Blacktop material) / Concrete curbs.
Plus many other specific items.

In the early stages of a CAPEX project the above are usually inadequately scoped out
due to the fact that little or no detailed design / engineering (or more importantly the
specification(s) have not yet been fully developed) has been completed (basically the
design team has not thought this scope out yet), bear in mind 5% to 15% of the
engineering scope has been defined at this point, the engineering team is trying to
scope out the big ticket major equipment items (long lead time items), towers,
compressors, heat exchangers, filling lines etc, the big push in the engineering effort is
to get the big ticket items on order. Front end / conceptual capital cost estimating
problems/ challenges usually begin to develop in the take off of the commodities / bulk
materials see above listing of for types of materials, they included the above and
some or all of the following, concrete formwork, rebar, foundations, piping systems, brick
/ block walls, painting, siding, steel platforms, roofing, structural steel supports and the
items mentioned above, the problem in estimating these items (as mentioned above) is
that the scope is not defined and some scope items are missed from the quantity take
off. The cost estimator / cost engineer at this stage of the project must many times use
his or her judgment on how to estimate these items, should we perform detailed / semi
detailed estimate or take-off of these items, should we get quotes from various vendors
for these systems (design / build quotes for specific systems, i.e. a high speed
packaging line, or a specific black box system or component), or should we use the
down and dirty method of coming up with historical allowances to establish a price, time
is the deciding factor in determining the path forward on this approach. Will management

- 18 -

accept factors and allowances or will they insist in a complete take-off. Other questions
that may need to be resolved / estimated include the following:

Under ground rock, how extensive - what type of rock, how should we estimate
this item, unit prices or an allowance?
High water table / Bad ground conditions running sand conditions how will we
keep foundation free of water well point system or another method.
Hot taps (system shut down) will plant remove insulation and drain systems, do
we need special permits.
Tie-ins, yard / utility / service piping do we need to shut down any operating
unit (s) what about plant permits (hot work).
Electrical sub station expansions do we need to contact local utility company?
Removal of hazardous materials were do we remove material to, do we need
documentation do we need to keep records for future audits.
Shut downs at night or on a specific weekend.
Fire water system can we calculate GPM needs or should we just make an
allowance.
Revamp / upgrades do we have current drawings (as-builts).
Cooling towers what are requirements, what type of tower (Concrete or timber).
Waste water treatment facilities is this scoped out, can we get a vendor price.
Roads, gate houses tank farms, tank loading areas and a myriad of other items
that need to be considered and estimated that are unique to that particular
project.

In the marketplace there are currently some excellent cost estimating tools / software
systems and procedures for each estimating phase of a CAPEX project (Conceptual
M2 / Square Foot and Detailed Estimating), which when appropriately used, can create
comprehensive and accurate capital cost estimates and front end tools which are usually
satisfactory and helpful to management for resolution and the CAPEX decision making
process. The downside of some of these systems is the initial cost 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 perhaps
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 (videos):

- 19 -

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):
PCAs, Environmental impact studies:
Lists of major equipment / instrumentation:
Basis of escalation:
Exclusions from the estimate, estimating assumptions:

Compiling a CAPEX estimate is challenging undertaking as we have previously

discussed 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, visualizes
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 drawing (consisting of perhaps 3-6 sketches and a preliminary
major equipment list) to the detailed design , procurement effort and construction
approach (consisting of 100s 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:

- 20 -

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, PFDs PCAs, 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 in-direct costs.
16. Explain ISBL work and OSBL work scope.

- 21 -

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 philosophy.
19. Provide details of lead paint removal, asbestos removal,
underground obstructions, hazardous waste, and mold
remediation.
20. Provide cost details of any refurbished equipment.
21. Make available details of expense items (demolition, asbestos
removal and relocations).
22. Make known required tie-ins, and any shut downs that may be
required.
23. Provide details on any required overtime or shift work.
24. Explain general condition Division 1 costs.
25. Be prepared to discussion assumptions made regarding
productivity.
26. Provide details of any allowances and provisional sums.
27. Indicate the anticipated accuracy of the capital cost estimate.
28. Explain how currency fluctuations are estimated, if applicable.
29. Provide details of transportation costs.
30. Provide details of any temporary roads, temporary camps /
accommodation that may be required.
31. Provide details of costs specific to vendor assistance, spare
parts and initial chemicals are estimated.
32. Provide supporting documentation for demolition and any
hazardous material removal.
33. Determine the percentage of pricing that is based upon firm
quotes.
34. Be prepared to discuss QA/QC requirements, NDT, inspection
costs and acceptance provisions.
35. Provide any other project specific details that may be applicable,
such as warranty issues, what is the warranty period 12 months
or two years.
36. Explain insurance and contractors fees.
37. Be prepared to discuss a modular construction application.
38. Explain contingency value that was utilized and method used to
determine indicated amount.
39. Explain the work that the operating group will complete and be
responsible for.
40. Describe any Royalties / Licensor fees contained in the
estimate.
41. Spare parts how is this accounted for, detailed list or an
allowance.
42. Be prepared to discuss any shared saving provisions in the
contract.
43. Explain any initial operating costs such as plant operator
training.
44. Explain costs associated with initial fill / catalyst.

- 22 -

45. Be prepared to discuss the cost ramifications of the contract

between the owner and the contractor, (i.e. payment terms,
payment cycle 30 days or 45 days or possibly more, retention,
liquidated damages and bonus / penalty provisions, bonds,
parent company guarantee and consequential damages).
To recap the previous paragraphs on front end / conceptual estimating methods, this
type of capital cost estimates are compiled and used for many different reasons,
including the following activities:

Control and monitoring of capital expenditures / Cost control Pro active

involvement in reducing / forecasting costs:
Proposal evaluation / Bid check reviews.
Choice from among alternate layouts / designs / process configuration.
Board of Director Approval / Appropriation of funds (A.F.E.).
Compilation of bids / proposals.
Funding / Feasibility studies.
Choice from among varying site / manufacturing locations / countries.
Choice of alternate investments methods, lease 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.

- 23 -

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 revamped building, manufacturing facilities or production unit has many times a different
point of view on CAPEX (capital cost estimating) i.e. how to go about it, this section and
the subsequent sections goes 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 consumers purchase.
Optimization of the construction process especially the CAPEX estimating effort is a winwin 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 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 revamped 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.
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Activity
New needs or demand, for new product / new
or expanded or re-vamped building,
manufacturing facility or production unit.
Definition of project goals, scope and mission
statement.
Conceptual engineering, planning and Front
End / feasibility study including possible Front
End estimate.
Submittal of Approval of Expenditure AFE.
Package.
Commencement of detailed engineering effort if
project is approved.
(Optional) Possible milestone to compile
CAPEX estimate.
Production of engineering deliverables.
(Optional) Possible milestone to compile
CAPEX estimate.
Start of Procurement effort.
Start of Construction effort.
(Optional) Possible milestone to compile
CAPEX estimate.
Completion of Construction effort.
Start up / handover of completed project.
Close out report.
Collection of historical data for future CAPEX

- 24 -

Estimating Input
Refer to Section 2 and 3 for appropriate
estimating method to be utilized.

Refer to Section 2 and 3 for appropriate

estimating method to be utilized.

Refer to Section 2 and 3 for appropriate

estimating method to be utilized.
Refer to Section 2 and 3 for appropriate
estimating method to be utilized
Refer to Section 2 and 3 for appropriate
estimating method to be utilized.

estimating / benchmarks.
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 an
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 pluss and minuss 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.
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 in 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 re-vamped building, manufacturing facilities or
production unit will include the costs associated with the effort to create the new or revamped building, manufacturing facilities or production unit, items to be reviewed or
considered include:

Land purchase or lease.

Financing cost(s).
Front-end studies.
A/E fees, detailed design.
Construction Management fees.

- 25 -

Procurement of material and major equipment:

Construction and startup of the completed facility:
Owner's cost items.
Operation and maintenance costs.

A large amount of additional information and data of course needs to collected and
evaluated, from any design or reports that have been previously completed, in most
cases this information can be found / or is discussed in the following sections of this
publication. The following is a summary recap and pointers for compiling accurate Front
End Capital Cost Estimates / Conceptual CAPEX estimating efforts:

Produce an estimate plan, who does what, what are the required deliverables,
when is the information required, perhaps the man-hours that have been
budgeted for the estimating effort needs to be indicated, rather than leaving this
as an open issue.
Develop and use standardized estimating forms and spreadsheets.
Follow the standard practice for compiling a capital cost estimate, review scope,
visit the site (if possible), take photographs, perform take-off calculations, assign
appropriate material, labor and in-direct costs to quantity take-offs and
summarize results for review with senior management.
Ensure that capital cost estimate is fully qualified and documented / described,
including basis of estimate, exclusions, assumptions and the listing of
engineering deliverables that the estimate is based upon.
List alternatives or different case studies or any value engineering concepts that
could positively impact the capital cost estimate.

Conceptual / Front End cost estimating is a excellent business resource / tool, as we all
know many times the scope and timing of capital projects will 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 and possibly modified, the front end / conceptual estimate can be used as the
audit trail of why it was adjusted, it can provide the history of what was originally (scoped
out) and estimated / planned versus what was actually engineered and built, used
correctly the conceptual estimator can benchmark his or hers conceptual estimating
library with the return cost / man-hour data from the completed project and calibrated
there current library for future front end / conceptual activities. Remember that the Cost
Estimator / Cost Engineer is a vital member of the Project management team, his or hers
recommendations and advice can have a major impact on the future of the EPC project.
Some final thoughts related to estimating skills, ethical considerations and basically the
estimating effort specific to consistently producing CAPEX estimates, which were
discussed previously in this section. Forecasting the cost of a CAPEX project(s) both
precisely and in a timely manner of future new or revamped construction projects is
essential to the continued existence of any business (Owner / operating company or
contracting company). Cost estimators and cost engineers furnish this essential skill set
(ability and wherewithal to produce CAPEX cost estimates) and developing data /
information by compiling and transforming the engineering data / deliverables (sketches,
drawings and specifications) into the completed cost estimate, this cost estimate
(document - data source) is a road map of the resources (labor and materials) required
by the project execution team to establish if a proposed project / scope of work (to
formulate a proposal or lump sum bid for a specific project) or if future manufactured

- 26 -

goods / 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 Owners cost estimators / cost engineers need to ensure that the 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 takeoffs 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 t 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 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.

- 27 -

SECTION A - 2
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 included understanding various estimating terms,
estimating methods, quantity takeoff approaches and generally all the steps required to
produce a CAPEX estimate.
Construction professionals all around the world are continually challenged to engineer
(design) procure and construct various process / manufacturing facilities, they are
tasked with constructing under budget and within a specific time limit, and of course the
facility has to work properly and be safe. This database has been produced to provide
construction professionals with a front-end estimating tool that will allow them the ability
to produce more accurate and complete conceptual / front-end estimates in less time.
The activity of Capital Cost Estimating is a significant and important undertaking in the
projects life cycle i.e. Project Management and execution (Engineering, Procurement
and Construction) (EPC effort). All practical efforts must be made in the early stages of
a CAPEX project to accurately estimate the future project; it should be based on the
current and anticipated scope of work of the specific project. The capital cost estimate
(CAPEX) determines the total cost of the project, as the detailed design, procurement
and construction is completed the capital cost estimate can be continually refined at
various major milestone(s) to forecast the cost of the completed facility. Producing
CAPEX estimates and controlling these subsequent budget(s) necessitates a wideranging and coordinated effort, involving various skills the task of CAPEX estimating
requires engineering, procurement, construction and estimating / forecasting input, this
will be described in some detail in this and the following sections of this database.
Owner companies involved in major capital projects / capital expansions refer to there
annual expenditures as CAPEX programs, it goes without saying that the execution and
management of these programs is critical to the future heath and growth of these
organizations. A CAPEX project is the conduit by which the business expands and
establishes new or retains current market share or future penetration, a CAPEX project
or EPC Project (as they are many times referred to) can be described as a unique one
time effort to engineer, procure and construct a manufacturing / process plant / chemical
facility or something similar. What is a capital cost estimate, well to individuals involved
in the big picture EPC Engineering, Procurement and Construction effort it is the
following, a shopping list of all the cost items, labor, materials, engineering, field indirects etc, 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, then generally the overall accuracy of the estimating deliverables / product
increases.

The three keys to successful Project Management are # 1 is it safe, does the facilities
produces what it was planned to produce in a safe and controlled method. # 2 was it
built for the value we estimated and # 3 was it built on time, in accordance with the preestablished 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.
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 re-visit and modify this number especially in the case
were 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.

Step 1

Step 2

Step 3

Step 4

Knowledge of
Scope / Site
Visit

Take-Off
activities

Compiling of
Estimating Data

Summarization

Completion of Estimating
Effort
(Presentation to Management)
Approval of CAPEX Project

Items and questions that need to be asked and considered prior to commencing the
CAPEX estimating effort includes:

Has any preliminary engineering / design deliverables been produced specific to

this new / proposed project.
Have any PCAs (Property Condition Assessment) been produced, many times
they have.

Have any Phase One Environmental Site Assessments been completed in the
last 3 5 years.
Who is going to develop a scope of work, (corporate engineering, the estimating
group or a third party engineering firm)?
What type of facility is being considered / being - engineered, procured and
constructed.
Is the project a grassroots facility or is it expansion or upgrade.
What type of estimate is required (level of accuracy) - establish an estimating
plan.
What engineering deliverables need to be produced to match the estimating
requirements? Who is tasked with the production of these engineering
deliverables?
How should the estimate be formatted - structured WBS - COA.
What are the timing and staffing needs to meet the goals of the estimating effort?
Develop the CAPEX cost estimate following the 4-step approach depicted above.
Who will get quotes from vendors, (corporate engineering, the estimating group
or a third party engineering firm)?
Document estimate basis (inclusions and exclusions assumptions) include a
listing of engineering deliverables, with the completed CAPEX estimate.
Consider contingency, currency impact, escalation, E / I programming,
commissioning and any vendor assistance.
Check the estimate math, completeness, quality and accuracy needs.
Present estimate to management for review and eventual approval, after
approval utilize estimate as a control tool to monitor progress of the work.

Owners and contractors have to understand that there is no specific method in executing
a CAPEX project, there are perhaps dozens of methods or ways to execute a project, all
methods have pluss and minuss and risks associated with them, hopefully some of the
data and methods contained in the following sections will help the reader in
understanding these complex issues that need to be considered. Industrial Construction
(refineries, chemical plants, pharmaceutical facilities, power facilities etc,) has unique
features and requirements. Assembling and calibrating the capital cost estimate for
these types of facilities are complicated tasks; the initial sections of this publication
should be a good starting point data source for individuals tasked with this
responsibility. The following sections should provide the various fundamentals and steps
that are required in order to compile a logical and hopefully accurate CAPEX estimate.
As was mentioned previously there is no common denominator when it comes to a
standardized estimating methodology - different countries / different companies /
different industry sector all use different terms / nomenclature for in compiling and
discussing CAPEX estimates, there is no standard name or classification / approach.
Again a lot of the issues related to the basics of CAPEX estimating, CAPEX estimating
fundamentals are discussed in some detail in Section 1, 2 and 3 of this publication.
Construction (i.e. the EPC cycle) is a perilous business, to continue in business and to
remain in the black, organizations need to lessen the inherent risks associated with the
construction industry (labor shortages, price increases, changes in scope, failure to
communicate, disputes, late payments, bad weather and strikes to name but a few are
some of the challenges to be faced) the following is one of the many checklists scattered
throughout this publication that hopefully will mitigate some of these risks.

The (CAPEX) capital cost for the Engineering, Procurement and Construction (EPC)
project(s) comprises of all the activities and expenditures associated with the primary
establishment of the specific building, plant or facility: this will consist of:

Front End Economic studies - consist of owner front-end initial costs including
internal ROI investment studies and a marketing analysis, needs analysis, this
may entail the corporate engineering group compiling various front end case
studies of the proposed future project, the accuracy of these first / blue sky
estimates would be accurate to perhaps +/- 25% - 30%.

Land purchase (if working on a new property) - The real estate purchase or
leasing cost may need to be included with the CAPEX (including any
remediation, site improvements and modifications that may be required):

The Detailed Design Effort: - The Architectural - Engineering (A/E) (EPC) design
effort (production of specifications and design drawings and project deliverables)
including reproduction expenses and travel costs associated with completing the
engineering / architectural scope.

Project Management / Construction Management and Procurement activities

associated with completing the CAPEX project.

Field Construction / Site In-Directs / Construction Equipment / Field

Establishment - The actual field installation / construction work, associated with
major equipment, bulk and engineered commodities and materials, the site indirects including field supervision related to the construction scope, this includes
trailers, storage sheds, small tools and consumables, including construction
equipment requirements i.e. cranes, welding equipment etc, and the subsequent
maintenance of this equipment and the field establishment i.e. (Division 1 or
General Conditions / or Preliminaries as it is called in Europe):

Other items could include contractors fees, bonding; insurance (BAR and
workers compensation) and local state taxes, (VAT on overseas applications),
tariffs and import duties, ocean freight, currency fluctuations specific to the
CAPEX project.

Further items that may need to be considered includes: expense items (relocation or
refurbishment of equipment), demolition work, owner provided equipment / materials,
furniture and fixtures, spare parts, initial chemicals and vendor assistance. The extent of
each of the above cost elements of course is based on the type of facility (i.e. unique
first of its type, needing utilities or an continuing ongoing production facility, that has a
history and has an existing utility infrastructure and spare parts inventory), magnitude or
scale of operation small operating unit or a large operation with 100s of plant
operators, its planned operation and approach i.e. continuous operation or some other
time frame, control philosophy and the actual location of the CAPEX project (s). This
publication is focused on the Front End / Order of Magnitude Capital Cost Estimates,
basically the most difficult Capital Cost Estimate to compile, because of the lack of
information / definition and usually limited time and staffing resources to complete the
estimating effort that is on hand at this point in the EPC project(s) life cycle. The
execution phase of a capital project involves a series of activities and steps covering a
4

wide range of management, engineering, procurement and construction functions, one

of the major elements / work items is the production of a Capital Cost Estimate (s) be
that estimate an conceptual (limited engineering definition) or detailed (a large amount of
engineering has been completed or is available). The basic tenet of Project Management
and its 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 units 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
(including product).
Will we need to get any special permits from Local or national Government
agencies?
Is this were 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 a common goal, to provide the path forward for
management action - a go or no-go decision tool, how much will this project cost, what is
the ROI, can we buy this product from a toller, does it make economic sense to build
this proposed facility, should we expand this facility or at another facility, were should we
locate this new manufacturing plant in North America, Europe or in South East Asia,
questions and more questions that need to be resolved, of course the cost estimator can
take a leading position in this decision making process. A CAPEX project (this could be
any of the following), a process plant, a manufacturing / production facility, a resins
plant, a food processing facility, an offshore pipeline, a state of the art - pharmaceutical
facility, a research and development building, an API facility, an Animal testing /
research facility, an alumina smelter, a petroleum refinery, an industrial chemical plant,
or a power plant or the upgrade, revamp of any of these or similar type capital projects,
plus numerous general buildings / facilities such as hospitals, airports, universities,
public buildings and offices etc:
THE CAPITAL ENGINEERING / COST BUDGET PROCESS
ENGINEERING AND CAPITAL COST ESTIMATING
This effort consists of the following tasks that need to be completed:

Project Commencement (Initiation / Kick Off meeting).

Scope Definition / Scope Development (usually the first item to be started).
Compile listing of required engineering deliverables.
Determine an estimating plan.
Conduct a site visit.
Quantity Take Offs.
Compiling / Solicit and obtain quotes from vendors and sub contractors if time
permits for major equipment and other key scope items.
Summarization and calibration of estimate to match site / project specific location
conditions, produce milestone schedule.
Management Review and Approval (Approve yes or no).
If yes proceed with production of design deliverables, issue ASAP approved for
construction (AFC) / issue revision O estimate / estimate basis document.
WHAT IS A CAPITAL COST ESTIMATE / HOW IS IT COMPILED / WHAT
ENGINEERING INFORMATION IS REQUIRED / HOW ACCURATE IS THE
RESULTING CAPITAL COST ESTIMATE

The specific activity of capital cost estimating is characterized as the collection /

assemblage / of all the Engineering, Procurement and Construction (design deliverables
drawings and specifications and other project related reports) related work, including
Construction Management, Commissioning, Start Up, Validation (if required) items /
enumerated costs and allowances, i.e. physical work / installation activities that are
project specific or the actual effort / endeavor included within a pre-approved /
established scope of work (project basis) / project brief. The major equipment,

engineered materials services, labor and bulk materials and in-directs to be furnished
and work to be completed, that matches the projects intent and scope of work. The
CAPEX capital cost estimate must provide sufficient accurate information to establish its
authenticity and it should contain an adequate amount of specific details to permit future
trending activities, together with future ongoing expenditure and progress analysis. The
activity of Capital Cost Estimating is a procedure realized in four basic and important
activities that need to be completed, these activities are as follows; note these four steps
are depicted earlier in this section:

Item
#

Step

Knowledge of Scope /
Site Visit: Familiarization
with SOW.

Take-Off: Quantifying all

SOW items.

Compiling: Pricing out the

work items

Summarization: Finalizing
the CAPEX estimate

Description
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 assemble 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 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 - clients 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.
Accuracy:

Acknowledgment:
Addendum:

ACPH:
Allowances:
Alternate:

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

Amortization:
Ampoule:
API:
A.Q.:
Assets:
Backlog Order:
Bare Cost:
Batch Process:
Battery Limit:

Bid Documents:

Bid Form
Bid Opening:
Bid Price:
Binder:
Bulk material:

Burden:

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.
The bare cost of a project includes all costs except for overhead
and profit margin.
A manufacturing process that process / 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 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 areas / operating
areas 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 / hand over to a bidder, signed and tendered as
the basis of the bidders 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.

C & F:
Calibration:

Capital (Budget):

Capital (Direct Cost):

Cash (Flow):

Change Control:
Change in scope:
Change Order:

Claim:
Clean room:
Contingency:
Contract (Types):

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.
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.

10

Cost of Capital:
Cost Control:

Cost Engineer /
Estimator:

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
Vs budget cost expenditures. The submission of measures / work
actions / flow to follow the advancement / execution of an (EPC)
engineering procurement and construction projects:
An individual / in many cases an engineer whose expertise and
knowledge are called upon to compile and produce the following
estimating / cost engineering deliverables:

Cost index:
Continuous Process:
Contract Documents:

Cost:
Cost savings:
cGMP s:
D.F.:
Design-Build Process
Design to Cost:
Direct cost:

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.
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 takes the
on 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

11

Distributed Costs:
Earnings:
Estimates (Types and
Accuracy):

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 complied by utilizing historical cost data, cost capacity
curves, exponents, Wroth, Miller, Cran, Guthrie, Lang, Chilton,
Peters / Timmerhaus and Compass type ratios / 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 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,

12

Escalation:

Escalator Clause:
Extra
Fee:
Field Costs:

F.O.T.:
Function:
Fringe Benefits:

General Conditions:

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 contractors business /
establishment to the amount specified in the contract, sometimes
known as margin.
Indirect related cost of engineering, procurement and construction
specific to the projects 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.

13

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:

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
manufacturer? 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 employees. / 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

14

OPEX
Overhead Cost:
Pledge:
Price:
Process:
Productivity:
R.F.Q.
Scope of Work:
Secondary Air:
Start-up costs:

Ton / Refrigeration:
Turnkey:
U.S.P.:
WFI:
V.A.T.:
Validation:
Validation
Protocol:

Value Engineering:

Ventilation air:

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
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 BTUs
A contract that provides all the required services to construct a
building, plant or facility.
United States Pharmacopia.
Water for injection - Water purified by distillation / reverse osmosis
(contains no added substances).
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-

15

Vivarium
V.N.X.:
Warranty:
WFI:
Worth:

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 / Manufacturers certification of quality and
performance that many times includes an assurance of
satisfaction.
Water for injection
The minimum overall capital expenditure to complete or perform a
specific activity or function.

As mention previously the OOM / Front End / Conceptual / AFE / Funding / Preliminary /
Semi-detailed 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 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 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-offs, electrical motor

16

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 manhours including items mention 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.
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 mention 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) mention 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 Engineers (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

17

engineering effort is the greater the accuracy of the estimate, the major
categories of capital cost estimates considered by AACE are as follows:

Name
1. Front End OOM Order of
magnitude
2. Budget / AFE (approval
for expenditure)
3. Definitive / Lump Sum /
Fixed Price

Typically Completed
Engineering
0-10%

Accuracy Range

5-20%

-15%, +30%

30-100%

-5%, +15%

-30%, +50%

Another method for determining contingency and accuracy is as follows:

Type of Estimate
OOM / Ball Park / Blue Sky
Conceptual / Pre - Design / Feasibility
Front End / (FEED) / Preliminary
Budget Control
Lump Sum / GMP / Turnkey

Contingency %
30 - 40
20 30
15 20
7.5 15
2.5 7.5

Accuracy % +/40 50
20 30
15 20
5 10
0-5

The best solution is to use an average of both methods indicated above to arrive at a
value that meets the readers 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.
2.
3.
4.
5.
6.

Ballpark estimates / Blue Sky / O.M.M.

Square / cubic foot estimates.
Combination of (3) and Semi detailed estimates (partial take-off).
Systems / assembly estimates
Owners / engineers estimate.
And 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 sector all use different terms /
nomenclature for in 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 writers have come into contact with after working in this arena for almost thirty
years, these (22) names - designations - estimates include:

18

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 (2008 NORTH AMERICAN BASIS) AND TO SUPPORT
ESTIMATE BASIS: (Includes Front End conceptual engineering and estimating
activities, with procurement group involvement in obtaining budget quotes.)
Engineering
Deliverables &
Tasks

(1) Ball Park

Conceptual
Estimate

(2) Business
Evaluation /
O.O.M.
Estimate

Objective of
Estimate

Initial / Front
End Phase
Assessments
& Economic
Appraisal

Initial / Front
End Phase
Assessments
& Economic
Appraisal

Estimating
Procedure Utilized

Typically
Supported by
Historical Cost
Data Points,
Return Cost
Data for
Comparable
Plants,
Location
Factors and

In -House
Estimates
Supported
by. Initial
Major
Equipment
Lists and
Facility
Operating
Needs,

19

(Hybrid of 2
& 3) F.E. /
Semi
Detailed
Estimate
Preliminary /
Front End
Studies
(For Business
/ Venture
Team).
Verbal /
Phone
Quotations
Supported by.
Initial Major
Equipment
Lists and
Facility
Operating
Needs,

(3) Budget /
AFE
Estimate

(4) Lump
Sum /
Control
Estimate

Project
Definition
Package
completed

EPC Project
Execution
Basis

Semi Firm
Quotations
Based on
Equipment
Lists and
Equipment
Facility
Operating
Needs,
Location

In depth
Estimating
Procedures
with Firm
Quoted Major
Equipment
Costs.
Utilization of
EPC
Contractors

Computerized
Estimating
Systems
Compiled by

Project
Control Group
with support
of a
Purchasing
Agent in
obtaining M.E.
pricing

Location
Factors
Computerize
d Estimating
Systems
Project
Control
Group with
Project.
Engineering.
Support and
Purchasing
Assistance

Estimate
Accuracy Range

-25% +35%

-20% +30%

-/+ 20%

-15% +15%

-5% +5%

Capital Cost
Estimate
Preparation Cost
Estimating &
Engineering man
hours at $65 /
hour (Based on $5
to $25 million
Project)

$5K - $15K

$15K - $40K

$40K-$100K

$100K-$250K

$250K $500K+

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

Milestones /
Remarks

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

20

Location
Factors
Computerized
Estimating
Systems
Project
Control Group
with Project.
Engineering.
Support and
Purchasing
Assistance

Factors
Computerized
Estimating
Systems

In-house
Computerized
estimating
system

Project
Control Group
with Project.
Engineering.
Support and
Purchasing
Assistance

EPC
Contractors /
Detailed
review by
Cost
Engineering
Group

4,000 to
8,000 M.H. s

Typically
compiled
when the
detailed
design and
the
engineering
deliverables
are between
35% and 60%
completed

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)

Detailed
Process /
Project Scope
Document
Preliminary
(P.F.D. s)
Preliminary
(P. & I. D. s)
25% to 50%
completed

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

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

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

Scope out
work items /
Project Team
needs to
define and
scope out.

21

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

Project Team
needs to
define and
scope out.
Resolution
Allowances
added to
undefined
scope.

Resolution
Allowances
added to
undefined
scope.

required work
items.
Resolution
Allowance
should not be
required at
this advance
point in the
projects life
cycle.
Detailed
Estimate

Indirect Field
Costs

Factored

Factored

Semi detailed

Semi detailed

Resolution
Allowance to
known scope
of each account /
sometimes known
as undefined
scope allowance.

N/A
Assumed to
be included
in factors

N/A
Assumed to
be included in
factors

5 10%

5 7.5%

Less than 5%

EPC Contractor /
Office Costs

Factored

Factored

Factored /
Semi Detailed

Factored /
Semi Detailed
/ Detailed
Estimate

Detailed
Estimate

Spare Parts / VA /
I-C Programming

Factored

Factored

Factored /
Semi Detailed

Factored /
Semi Detailed
/ Detailed
Estimate

Detailed
Estimate

Factored

Factored

Factored /
Semi Detailed

Factored /
Semi Detailed
/ Detailed
Estimate

Detailed
Estimate

Factored

Factored

Factored /
Semi Detailed

Factored /
Semi Detailed
/ Detailed
Estimate

Detailed
Estimate

25% or
Greater

15 - 25%

10 - 20%

7.5 - 15%

2.5- 7.5%

80%
To
85%

80%
To
85%

80%
To
85%

80%
To
85%

GC / Field
Estimate

Owner Costs
Contingency
Range (Does Not
Include Revamp
Considerations or
Process
Development
Allowance)
Typical Industry
Confidence Range
(using REP) i.e.
Range Estimating
Program

80%
To
85%

Notes. C and D above could be reversed dependant on execution strategy. C could be

used as a check estimate of the AFE Estimate.

22

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 is 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 preestablished budget (the AFE) the agreed to capital cost estimate no major cost overruns, the EPC organization is challenged to make a profit (fee) on there projects and to
keep the workforce / staff busy and billable (at the same time ensuring that a positive
relationship is maintained with the Owner that will result in additional projects in the
future), the cost estimate is the established metric by which the project is measured for
an Owner it is ensuring that the approved budget is not exceeded (we dont want to go
back to management for additional / supplementary AFE funds and for the EPC
contractor it is the making or exceeding the established fee, for both organizations it
establishes the cost specific to scope of work that is currently established, the
opposing goals mentioned above (of the Owner and the EPC contractor) are many times
the cause of problems and friction on CAPEX EPC projects, the owner doesnt want to
hear about extras and the contractor is of course motivated to issue change orders to
recoup all the costs they have expended, this is why bi-weekly change order meetings
are so important. Capital projects that are deemed a success by the appropriate
stakeholders (Owner and EPC contracting entity) are identified as the capital projects
that meet the three legged stool criteria, (refer to Section A - 3) (1) Schedule (executed
and handed over to the future operating / business unit in accordance with the preestablished milestones - completion date.) (2) Cost (did the cost fall within the preestablished AFE funding basis, did the EPC effort realize an adequate return on
investment ROI), for an EPC firm did we make a reasonable return / fee on our activities
and (3) Quality / Safety (can facility produce / meet pre-established production goals and
current and future commercial metrics, was the EPC effort safely performed and is the
new facility safe to operate.). Capital projects that meet the three legged stool, criteria,
will enhance future sales and profit margins, just as CAPEX projects that fall outside the
three legged stool model could be considered failure. History has proved over and over
that to be successful in executing a CAPEX - Capital project(s) that a road map needs to
be established and closely followed (an outline of the scope of work, project goals,
milestone schedule and cost estimate / budget. It must be recognized by the project
team that external factors such as worker productivity, contract type, market conditions,
climatic condition (hot or cold working conditions), sophistication of plant, government
involvement / changes in tax structure when project is being executed (similar to what
has occurred recently in a major oil producing country in South America), team continuity
and a whole host of other project specific situations could seriously impact the cost of
the final facility, if 60 % - 75% of the scope can be nailed down, i.e. PFDs, location,
major equipment requirements, control philosophy etc, the resulting 25% - 30% of the
unknown / risk items can be somewhat identified and costs can be allocated to these
items, an adequate resolution allowance and contingency can be established, to protect
the bottom line cost of the capital estimate. The following chart summarizes the eight
steps of a project management / capital cost estimating process and the level and type
of capital cost estimate effort required to compile various estimating types (A - G. refer to

23

Section A - 3 Page 6 18 for description of seven capital cost estimating methods (A G) and nomenclature and required design deliverables. In reviewing this chart consider
required accuracy of estimate, timing considerations milestones of when estimates
should be prepared, resources needed to establish the scope of work, the management
approval cycle, and funding approval limitations / monetary approval levels and the
experience of the estimating / engineering resources compiling the capital estimate.
Step
Number

Business Unit / Project

Management Activity

Business unit identifies potential

market need / commercial
prospect need for further
evaluation eventually leading
to a CAPEX project.

Produce an initial Front End

scope of work statement that
satisfies the business units
current and long term business
plan and goals.
Consider various alternatives
(Case Studies) / business
solutions (i.e. tolling or produce
product in house) at a new or
existing manufacturing /
production facility.

Capital Cost
Estimating activity /
Deliverables
A. Blue Sky (refer to
Section A 3 page 7)
Tons or pounds of
product / barrels of oil
Capacity driven factors /
exponents
Ratios
A. Blue Sky
B. Scale Up / Capacity
Estimates SF/ M2 unit
costs.
(Hybrid of A & B)
B. Scale Up / Capacity
Estimates
C. Ratio / Factored
Method
D Some initial F.E. /
Semi-Detailed
Engineering Estimating
activities refer to
Section D-1

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.
Develop detailed SOW and
getting operating unit approval
of required scope and select
EPC approach / select EPC
contracting organization.

C. Ratio / Factored
Method
D. Front End Semi
Detailed Estimate
E. AFE Funding
estimate (Refer to A-3
page 9)

Audit / monitor / trending

activities.

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

E. AFE Funding
estimate (used as initial
control tool)
F Control Estimate
G Lump Sum Estimate

24

Remarks / Comments

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%
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.
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 PFDs 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 a
on preliminary engineering as # 3
above, location, production rate,
technology and layout is identified.
Conduct Value Engineering Study or in
step 5.
Conduct 2 day Value Engineering study
/ session. Engineering / detailed design
should be in the 20- 50% completion
range, engineering deliverables should
include. Site development plan, PFDs,
P&IDs, 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.
8

Lessons learned -Internal

management review (Senior
Operating group staff and
Construction Services Senior
Management / Project Manager
/ Estimator / Cost Engineer).

Produce executive
summary type report,
indicating lessons
learned, successs and
problems encountered,
reconciliation of
forecasted and actual
project goals

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).

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). A cost
estimate to be a useful tool must contain enough detail for management 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 were possible) a field labor cost allocation / report (indicating total manhours and appropriate dollar values) an 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 mentioned, the building
blocks and components of the production of a high-quality capital construction cost
estimate(s) and the education / knowledge requirements / job experiences / credentials
of a successful estimator are, at least 5 years hands on experience in compiling all types
of construction estimates, construction field experience / knowledge of the total
engineering, procurement and construction process cycle, this perhaps is one of the
most important attributes, insight of the construction process, including the construction
procurement cycle, i.e. the INP cycle and engineering and design techniques that are
utilized by the design team, installing / construction methods, capital major equipment
types and construction crew make-ups, bulk and engineered materials, an
understanding of basic economics and knowledge of the proposed project execution
minutiae, detailed knowledge of capital cost estimating techniques and bidding
procedures, an understanding of all current estimating tools, including, rotometers, scale
rules, 3 D CAD drawings, digitizers, lap top computers, to the latest linked computerized
spreadsheets, access database versions or a complex purpose made computerized
estimating project control software package, a roll up your sleeves / take charge"
attitude and aspirations for constant improvement, an open mind to new estimating / cost
control methods, a penchant for collecting historical / actual construction cost data,
together with organizational / filing skills, an understanding of what the purpose of the
capital cost estimate, is it a budget, a study / ROI feasibility evaluation, or is it an update
of an earlier compiled estimate, the gumption to speak up when problem (estimating /
cost trends) are encountered, a flexible work ethic and the ability to work flat out for
extended periods to get the job done. It is an interesting and rewarding job, every project
is different; construction (CAPEX) projects by their very nature are a one-time effort

25

lasting from six months to possibly three years. It is rewarding profession and its a job
were every day is a new challenge.
Developing an Estimate Plan
Many owner companies i.e. corporate engineering departments (and in some cases
EPC & A/E firms) in the last ten years have significantly downsized there estimating
groups, many of these owner organizations now rely on outside EPC, A/E, CM and
specialized consulting firms to take care of there estimating needs and deliverables,
there are pluses and minuses associated with this trend, the owner company can save
overhead costs by not having full time in-house estimating resources, however there are
distinct minuses in not having dedicated estimating professionals available when they
are needed, plus in-house estimating data usually fails to be incorporated into these
third party estimating deliverables. The purpose of the following list is to make sure that
no scope of work item is overlooked in the estimating effort, the list however is not all
encompassing, the objective to make sure a cost is assigned to each line item in the
cost estimate and to ensure the scope of work is capture within the current estimate.

Description of Project Location of Project:

Responsible individuals / design groups responsible for providing engineering
deliverables and quotations.
Project Manager / Lead Estimator responsible for estimate preparation:
Provide a brief Scope of Work Description:
Date and revision number of when estimate(s) was compiled:
Type of Estimate completed (OOM, Preliminary, Detailed etc):
Type of Project New (Greenfield) / Retrofit (Brownfield) / Upgrade /
Debottlenecking / Add-on:
Accuracy of completed estimate:
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.

26

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 allowances:
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:
Instrumentation / Number of devices / Number of I/Os (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.

27

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 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 claimed back.
Describe and list details of Detailed Design / Engineering Home Office Support
man-hours and cost.

28

Provide details of Home Office expenses.

Provide details of CAD costs compared to normal / typical pricing submissions.
Travel / Per Diem costs compared to normal / typical pricing submissions.
Provide details of Engineering Fee percentage compared to normal / typical
pricing submissions.
Describe and List details of Construction Management man-hours and costs.
Construction Management General Conditions requirements.
Construction Management Fee basis compared to normal / typical pricing
submissions.
Provide details related to start up costs.
Provide details related to various Bonds used in the CAPEX estimate.
Provide details on any Warranty / Extended Warranty issues:
Describe and list details of any required inspection / validation costs.
Describe and list details of commissioning scope man-hours and cost.
Statement on the basis of the dates / currency exchange rates that were used in
compiling estimate:
Detail basis of Contingency (Provide a Monte Carlo / REP analysis of
contingency).
Provide data on Management reserve.
Provide a project by month Cash Flow forecast
Basis of Escalation / Inflation / Exclusions / Assumptions / Inclusions mid points
of EPC effort.

When the above checklist is completed the compiled / completed estimate can serve as
the baseline cost budget for tracking scope changes or until the next estimate is
completed (when additional engineering / design work has been completed).
The construction each year of industrial facilities i.e. (chemical and manufacturing
facilities) is a major undertaking, employing, thousands of companies and millions of
individuals around the world. The cost of construction has an influence on just about
everyone; the cost of the completed construction project is passed on to consumers via
price increases on just about every product, so any time we can contain costs it is a
good situation for people. This section discusses some capital cost estimating
fundamentals, it goes into how to optimization of the construction process especially the
CAPEX estimating effort, it touches on the needs or demand, for new products together
with methods on going about producing various levels of CAPEX estimates, refer to this
Section 2 and 3 for appropriate estimating methods to be utilized in producing CAPEX
estimates. The Engineering, Procurement and Construction of a new or upgraded
building, chemical plant or manufacturing facility requires a substantial capital
investment expenditure possibly over a period of three years period prior to any return
on investment (ROI) being realized, this section and the following sections has been
written to provide some guidance in producing these important project deliverables. The
construction industry is a mixture of assorted sectors, that all have a common thread,
i.e. see the players listed previously in Section 1 and in later sections of this publication.
A large amount of information and data needs to generated, collected and evaluated in
the production of a CAPEX estimate, from any design or reports that have been
previously completed, in most cases this information can be found / or is discussed in
the following sections of this publication. Some of these documents include: (A) Scope
of Work / Mission statement / Estimating plan. (B) Process Flow Diagrams, (P.F.D.s).
(C) Front end / preliminary scope of work statements (execution approach) (D) Plant /

29

facility location (and location within an existing 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 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.

30

SECTION A - 3
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. 100s of drawings and specifications:
Owners, A/E, EPC, CM firms and contractors when they generate their project Front End /
Conceptual and Detailed / Lump Sum estimates use many different formats and configurations (i.e.
estimating templates and summaries), there seems to be no standard approach in industry, this
initially can cause some problems to individuals charged with the responsibility of reviewing and
checking these estimating deliverables and was one of the drivers for the production of this
database, we have endeavored to standardize some of these Front End / Conceptual and Detailed /
Lump Sum estimating summaries in this particular section. The underlying principles of this section
is to outline a number of different approaches and methodologies related to estimating the cost of
Process / Manufacturing type facilities, this section contains ten historical estimating benchmarks
(based on return cost data records) together with numerous single point metrics that hopefully will
assist the reader in future estimating and auditing activities. The number one basic principle of
Project Management and its sub elements i.e. Project Control Cost Estimating is to deliver the
best technical and business solution to the business unit considering or building a new facility
expansion(s) or upgrade(s), together with value (which of course is part of the business solution) for
future CAPEX investments, the project team must deliver the correct business solution at the front
end stage(s) of CAPEX project, the scope, needs to be to some extent reasonably defined, some
front end design work needs to have been completed, various manufacturing / production schemes
need to have been considered and scoped out. The decision to engineer / procure and construct
(EPC) a new Chemical / Manufacturing 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 generate and increase profits. Chemical / Manufacturing Facilities must be designed to meet the
goals of (1) Safety, (2) Quality of final product and (3) Profit Return on Investment. A substantial
capital investment is necessary for any new or upgraded Chemical / Manufacturing Facility.
Compiling the required funding documentation, management approval procedures, and the
approval for expenditure (AFE) is a key project related milestone, one in which the estimating effort
is crucial. Engineers, Architects and Estimators - (All construction professionals that get mixed up
with estimating and budgeting) involved in the engineering / procurement and construction (EPC)
Chemical / Manufacturing Facilities should were possible collect and maintain a personal
construction cost database of completed projects lets call it a personal construction cost library
(magazines, articles, historical cost records, technical papers, rules of thumb etc,) annual cost
databases should also be purchased to keep the individual abreast of current construction costs
and trends, additionally it makes sense to keep notes on value engineering ideas, different material
applications, alternative construction practices and utility / energy requirements and costs. The
personal construction cost library should be continuously maintained with latest data from a
multitude of sources, i.e. your last project. The personal construction cost library should provide
benchmark data on, construction materials, construction labor, delivery times on complex
production equipment long lead delivery items, labor productivity, engineering / architectural costs
and man-hours, indirect field costs, transport costs, escalation and start-up costs, spare parts costs
plus numerous other line items that need to be evaluated and estimated during the Estimating /
Budgeting effort.

The final review or verdict as to whether or not to proceed forward with the new or revamped
process / chemical facility is to say the least an involved one, the decision process entails many
issues, these issues must be weighed against the current market forces, can we make a decent
return on the capital investment, what is the payback period 5 years or 10 years, how will our
operating costs stack up against our competitors, what is the local and governmental permitting
requirements, does the location that has been selected make sense, is there existing utilities close
to our plant, will we have to build roads and other related utilities to support this new facility, are we
trying to beat a competitor to the marketplace. What are the main drivers (business goals) that need
to be realized, some of the questions that must be answered by the EPC Management Team /
Business Unit Operations team are as follows:
1.

How much capital will be required / what is life cycle costs needed to complete this project.
(This includes all engineering, procurement and construction related costs)
Plant operating life cycle, i.e. the number of years or some other period that the plant
operate to ensure recovery of the investment.
What are the estimated operating costs (who compiles this input data), is it needed prior to
the completion of the Front End / Conceptual Estimate.
What are the ROI / EBITDA on the capital expenditure, how many years will it take to
achieve payback on the capital expenditure.
Are there other technical manufacturing solutions that can be used / evaluated to improve
the ROI / capital outlay, tolling, value engineering and or risk management?
Is this plant located in the best location to provide maximum Return on Investment; is it
close to future markets?
What codes / standards / specifications current and future will be used in the design of the
facility, metric, imperial, CSI Company or engineering firms specifications?
What are the permit needs - timing, local / national / environmental.
What is the timing / milestone to be achieved, normal schedule or fast track, are there any
unique situations such as modular construction or toxic materials that needs to be
considered.
Any financial incentives / tax breaks tax holidays, training costs, offered by country or state
government.

2.
3.
4.
5.
6.
7.
8.
9.
10.

The CAPEX capital cost estimate to be useful project control tool needs to reflect the current scope
of work, if the scope is not defined to well a resolution factor needs to be applied to the known
scope to put meat on the bones, the CAPEX estimate needs to take account of the partial or
completed design deliverables (current drawings and specifications even though some of these
drawings maybe less than 50% complete), latest schedule (completion date), and the execution
strategy (procurement buy-out - contracting approach) in order to set up a realistic capital cost
baseline, that can be used as a project control tool to monitor future changes in design and
operating philosophy. In the last 5-10 years there has been an industry wide trend to move away
from single point (an single estimator(s) or group of estimators working as a single point of contact
producing the final estimate) we are now seeing a more of a team approach in compiling a capital
cost estimate(s), there are real benefits to this approach:

The CAPEX estimate can be produced usually in a shorter time frame; the correct scope of
work is captured and known sooner.
Mistakes can be picked and resolved much sooner.
The specialist engineers / designers can focus on there discipline, i.e. civil, piping to
produce quantities and take-offs.

The design team can assist in the estimating effort, (obtaining bulk material pricing, vendor
quotes and bids, ensuring there is a quality control and accuracy associated with the
auditing function being utilized during the capital cost estimating effort).
The estimate can be broken out by WBS / COA, via the work effort of the specialist
engineers / designers for future bid packages and additionally used as procurement / buy
out tool.
The capital cost estimate can / should be used as a project control tool to track and monitor
the project expenditures, changes in scope of course need to be considered they can be
scoped out early and the cost benefits or penalties can be considered.

Prior to commencing any capital cost estimating activities, the Business Unit / Operating Unit would
have completed a Business Economic Analysis; this would include such items / activities as:
A. Market Research / Sales Volume
B. Return on Investment (ROI) / EBITDA
C. Selling Price / Cash Flow analysis / Payback Period
D. Operating Costs / Energy Costs / Capitalized Spare parts
E. Raw materials cost / Investment Costs / Depreciation Rates
F. Investment Incentives / Tax Holidays / Maintenance costs / Operator training
G. Leasing / Tolling / Third Party Manufacturing
The Cost Estimator / Engineer if he or she works for on Owner Company may sometimes get
involved in estimating some of the above cost related items.
The flow chart below depicts the analysis / business cycle that most Owner companies follow to
determine which capital projects should be pursued and rejected.

Business Analysis
Items A G
(above)

Scope of Work
Development

Front End /
Conceptual Estimating
+/- 30%

Proceed
(Yes or no)
Continue with study if
companies ROI investment
criteria is achieved produced
more defined scope and +/20% Estimate

Abandon study if companies ROI

investment criteria is not
achieved move to next prospect

The EPC Management team sometime know as (1) task force or (2) core team is established
typically the task force / core team members come out of the ranks of the operating company and
possibly key members of the selected EPCM contractor, these individuals must understand and be
involved in the questions posed above and the answers coming out of the above analysis and
assist with the next steps in the projects path forward, in order to proceed to project approval, they
have significant responsibility in optimizing the capital effectiveness of the project i.e. (optimizing
the bottom line cost of the project). 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 a (+/-40%) project budget, this early estimate is 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.
2.
3.
4.

The best location to place the CAPEX project:

The profitability of the CAPEX project, the return on investment (ROI) or (EBITA):
A cash flow plan can be developed from the project budget,
The initial project budget can be used as an initial baseline / control tool, to use as a staring
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 has historically used these
early front end CAPEX estimates to make there 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 were future (CAPEX) capital funds should be assigned and to
that point it is in the businesses / owner interest to make sure these conceptual / front-end
estimates are as complete and accurate as they can be, even though a reasonable amount of front
end engineering expenditure needs to be made.
Additional cost related topics that may need discussed and made part of the initial CAPEX estimate
include some or all of the following:

Relocation of manufacturing equipment from a current company location to this specific

project location.
Start up related materials and labor / commission costs.
Management reserve allowances and how they are spent.
Design and construction (resolution) allowances for both detailed design, procurement and
construction work and the overall management philosophy on contingency allowances and
how this issue(s) are captured in the CAPEX estimate.
Various location incentives provided by countries, states or regional development agencies.
Such as free real estate / government grants / tax holidays, this could be considered as a
credit line item in the CAPEX estimating summary if in fact this is a reality.
First run chemicals, catalysts / chemical / initial fill needed during start up activities.
Licenses fees / Royalties that need to be paid to an owner / holders of certain technology.
Costs related to refurbishment of existing facility production or utility equipment.
Operator training grants paid by a local government departments / agencies:
Early studies / previous owner related front end engineering activities and expenditures.
Expense items such as demolition and decommissioning work.

Mothballing activities and de-commissioning work.

The sale of any production equipment / utility equipment to another third party.
Facility abandonment costs and future clean up provisions.
Scrap metal / material cost related credit(s) related to any demolition work.

What is a scope document? It basically verifies the CAPEX projects charter, it focuses in on (1)
what, (2) were and (3) when. Scope is the term used to describe the extent or boundaries of a
project (consider it as a dotted line around the project). Scope definition entails describing the major
project components / deliverables into a listing of manageable work activities or tasks. The scope of
work (SOW) statement (project baseline) is a critical document it defines in specific language the
services of work to be performed and the activities to be performed. The cost and schedule could
and does many times experience problems and issues, if the SOW is inconsistent or does not fully
reflect the work to be performed, it is therefore critical to the wellbeing of the CAPEX project that the
SOW is correct and all changes are incorporated in the latest SOW statement and is communicated
to the project team members. The Project Scope of Work: is essentially determining:
1. The location(s) of the proposed CAPEX project.
2. The CAPEX project(s) schedule, from funding approval to start of production, list out of key
Engineering, Procurement, Construction and handover milestones that need to be
accomplish.
3. The Engineering, Procurement and Construction approach and contracting strategy.
4. A listing of project restraints / challenges i.e. permits that are needed, consent decrees
(must be completed by such a date), construction activities in an operating facility.
5. The WBS / COA structure or any enterprise software coding issues needs to be known.
6. Any land acquisition costs or major site improvement issues.
7. Facility capacity / production nameplate, this includes the number of items / pounds kg of
product to be manufactured.
8. The quality specifications and requirements that the product needs to meet.
9. The hourly / daily / weekly / annual production or campaign rate that the facility will produce.
10. The manufacturing operating philosophy i.e. (Batch operation, 8 hours operation or a
Continuous operation).
11. The technology to be utilized, the major equipment (production equipment) and the
manufacturing control / automation philosophy.
12. The required services and utilities required to meet the needs of the CAPEX project.
13. The number of facility operators needed to operate the proposed facility, this maybe optional
in the early scope development phase.
14. The facilities / buildings / support requirements needed for the proposed facility.
15. The offsite requirements, the storage / warehouse needs and unloading and loading
methods, new access roads, rail spur etc.
CAPEX estimating and project planning / scheduling are of course closely allied and of cause this is
why these two activities fall within the Project Control scope of work; neither of these activities can
be adequately realized without contribution (feedback) from the other, manpower requirements,
installation rates, peak manpower needs, worker / facility footprint ratio, worker productivity plus a
bunch of other related topics impinge on each other. It is a given that the job function / role of the
cost estimator / engineer on any future / ongoing CAPEX project is to develop the estimating
documentation basis, i.e. exclusions, inclusions and to appraise and determine all the required
scope items and to forecast the final cost(s) of the CAPEX project(s), in this role he or she needs to
be the eyes and ears of the Senior Management (BOD level individuals) and the EPC management
team supervising the overall Engineering, Procurement and Construction effort, they must accept
and take ownership of the estimate (the buck stops here). Senior Management should be constantly

conscious of the committed and to date costs and any trends to date (on a bi-monthly or monthly
basis) and more importantly the projected total installed cost of the EPC CAPEX project, sometimes
there is some marginal relief of this situation (some owner companies will allow a CAPEX project
to over run by 10% or less without a lot of problems - prior to obtaining additional / supplementary
funds to complete the project, however be aware hell hath no fury like the Board of Directors
wanting to know why a CAPEX project over ran its budget by more than 10%), it is the cost
estimators / engineers function / responsibility to know the current status of there project, they are
responsible for the two of the three main aspects of Project Delivery / Management cost and
schedule. These three key metrics are known in the EPC industry as the Three Legged Stool they
are as follows.
1. Schedule (when is it going to be completed, was the project delivered on schedule).
2. Cost (what will it cost, did the final cost fall with in a -/+ 10% range of the authorized
budget).
3. Quality / Safety (will the facility produce the items / at the required production rate / with in
specification it was designed for in a safe and economic manner).
When all three of these metrics are achieved on a specific EPC CAPEX project, success can be
claimed.
The management and organizational progression within the EPC engineering / construction industry
has been going through major changes in the last decade or two, Project Managers are coming out
of the ranks of Project Controls not out of focused 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 were 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 to 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, 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 chemical / manufacturing enterprise, these early
and important cost evaluations are the essential decision making tool and metric, on whether to
proceed with a proposed project or not (perhaps the project needs to be stopped because of a
huge potential over run in the final forecasted cost), or to delay the decision to proceed (1) to
another location, (2) until some time in the future three years from now when the economy is in
more of a growth mode, or (3) look for other process / technical / business solutions (look into tolling
activities). Again accurate / timely and comprehensive capital cost estimating of the cost of a
CAPEX project is fundamental and vital to any organization, this skill set give a competitive
advantage both Owners and EPC companies, this is why accurate and timely front end /
conceptual estimating is so important in todays competitive global marketplace.
A capital cost estimate is not over and done with when a project management / engineering review
has approved the CAPEX capital cost estimate. The estimator / cost engineer must all the time
examine / evaluate the capital cost estimate with the project manger / engineer perhaps on a biweekly / monthly basis to ensure the project is remaining within the projects budget, these bi-weekly
/ monthly meeting should be called status meetings / trend meetings, potential change orders /
claims / scope changes etc should be discussed and laid out on the table so the real impact of
these change orders / claims are fully understood by the project team. The production of a Capital
Cost estimate is a team effort, it is not a single individuals work effort, however many times the
cost estimator / engineer (or in the case of a large project perhaps a team of cost estimators /
engineers 4 6) will complete and compile the lions share of the effort, scope definition together
with certain key engineering deliverables i.e. a major equipment list, a plot plan of the proposed
facility, indicating location of major equipment typically are provided by the engineering group, as
we have mentioned before, some time the discipline engineers will assist in the capital cost
estimating effort, compiling take offs and lists of required materials such as piping (including
valves and fittings) and E&I quantities (instrument devices), whoever compiles the total capital cost
estimate they should consider the following topics. (A) Have an enhanced understanding (the big
picture) of EPC project(s) specific to capital cost estimating and how specific scope items / change
orders / scope modifications can impact a capital cost estimate, field experience will be a big plus in
this situation. (B) Utilize adequate estimating expertise i.e. in house expertise, historical data, and
benchmarking metrics and to be able to compile front end / conceptual, preliminary and detailed
estimates when required. (C) Be aware of the relationship of external forces (escalation such as
oil price spikes, terrorism, labor shortages and political events, such as we have witnessed in at
least two South American countries) scope creep / change order control and how this can impact
the final cost of a project. (D) Be capable of gathering relevant and germane project data / scope

items and become adept in reviewing / auditing all types of estimates to establish the level of detail,
completeness and accuracy that reflects the current scope of the proposed project.
CAPEX EPC projects are the means by which a future business plan(s) are built into important /
sustainable / flexible and profitable future operating assets it is basically how companies grow and
prosper successful companies typically build there new plant or add on to there existing plants in
the right locations and they typically dont pay to much for there facilities, i.e. they are not gold
plated they are designed in a safe and cost effective manner, successful capital EPC projects are
deemed successful if they meet the legged stool metric previously 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 need 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) were 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, PFDs, 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, GMPs, 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-offs, we have plot plans, general arrangement drawings and the P&IDs
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
with out 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 or develop a rational and comprehensive scope of
work statement and to use logical estimating method (a ratio approach or a an exhaustive detailed
quantity take-off approach utilizing the four step approach described earlier), together with the
time and resources to complete the assignment, a milestone event schedule and finally an
estimate basis, that documents inclusions, exclusions, assumptions and a complete listing of
drawings and specifications that the capital cost estimate is based upon. A viable scope of work
or mission statement (project brief) must be founded or formulate on front-end engineering studies
or basic production or manufacturing concepts, it should be based on an established design
philosophy that will be implemented, layout concepts / preliminary plot plans etc, to corroborate and
support the capital cost estimate basis.
On multi million dollar CAPEX EPC projects the owner or a consortium of owners may require an
independent cost estimating audit / review that would include a detailed assessment of the
estimating basis and methodology employed in producing the CAPEX estimate, together with the
anticipated accuracy of the CAPEX estimate, typically these audits / reviews are performed usually
by specific independent engineering / construction individuals (industry experts / gurus,
graybeards consultants or third party E / A firms), sometimes if the cost of this third party
estimating review is cost prohibitive and in house experts or seasoned senior project managers
with many years of capital implementation / cost estimating experience and major project / field
execution experience will be called in to complete this effort if it is deemed necessary. The
engineering deliverables and project specific data that is typically required to complete this type of
audit / review effort includes some or all of the following:

A detailed scope of work statement / mission statement.

A listing of current engineering deliverables currently completed.
Basis of design.
Operating philosophy (24 / 365 days or 8 hours per day).
A manufacturing / process description and P.F.D.s (process flow sheets).
Sketches / Drawings / photographs / other germane Engineering Deliverables.
Outline and Detailed Specifications (owner or EPC firm).
Project specific layout information, location / tie-ins / access problems.
Major Equipment and Bulk / Engineered Materials.
A major E-P-C milestone schedule, indicating major start and finish dates.
Procurement schedule showing any long lead delivery items.
Any owner provided major equipment or materials.
Off-site information (required facilities and utilities, etc.).
Realistically accurate quantity take-offs and listing of allowances.
Project specific major equipment, unit material prices.
Installation Work Hours / All in Labor Rates (union or open shop).
Detailed and systematic assessment of all scope of work items with likely cost impact.
Engineering hours and billing rates / Field In-directs costs.
Miscellaneous items, e.g., spare parts, vendor assistance, training costs, owner costs, front end
engineering studies etc.
Operating costs.
Utility production and costs.

Some of the most important features of a reliable capital cost estimating system in order of
importance are as follows: An estimating plan or memo, outlining who provides what and when,
adequate time and resources to get the assignment completed, estimating tools that will be utilized,
relevant cost data publications, procedures and systems, historical return cost data if possible /
man-hour production rates, computerized estimating formats or spreadsheet formats, a roll up your
sleeves / get it done by an individual or a team approach and a levelheaded businesslike / attitude
and relevant engineering and field experience. The development of Front End / Conceptual
Estimating methods and systems can seem to be a overwhelming undertaking to the uninitiated,
nevertheless with the use of the most recent computer applications and sophisticated database
programs the effort can be a lot less challenging than it use to be - before that advent of the
computer age, some of the key items to consider are, (1). CAPEX EPC related data gathering
(close out reports of completed CAPEX EPC projects), (2). CAPEX EPC data review and calibration
and conditioning for future applications (understanding high point and low points and applying
common sense to make the data real separating the odd ball values from a collection of relevant
data and (3) the development of benchmarking metrics from this data for future use in CAPEX
capital cost estimating and analysis of current in-house and external estimating data. The
consistent and attentive approach concerning nailing down the project(s) scope and the timely
completion and fine tuning of a CAPEX estimate is the secrete of success in estimating EPC
projects, developing and defining the project requirements (the shopping list of items to be installed)
is imperative in the early stage of a projects life cycle. Capital cost estimating approaches
(methods of compiling an estimate) are very important, particularly when they are built / based on a
well-maintained databases (usually large owner operating companies and some of the larger EPC
firms maintain large proprietary estimating systems, in recent years we are seeing a movement to
Enterprise Business Systems i.e. SAP, J D Edwards etc) perhaps these systems will develop
modules that produce CAPEX estimates in the future. That being said, they are no substitute for or
replacement for hard work, an ability to drill down to the details, an inquiring mind, a resolve to
optimize the capital cost estimating system (or the project controls system) and knowledge of the
specific EPC project and the stated goals and business objectives. The capital cost estimate
should supply adequate details and data to determine its credibility throughout the projects life cycle
and contain sufficient details to allow cost control, value engineering and progress monitoring.
Listed below A thru, G are some of the main categories of capital cost estimates methods together
with their accuracies.
Capital Cost Estimating Nomenclature / Approaches / Methods
Capital Cost Estimating methods can be grouped into at least seven basic methods or
classifications (possibly more, there are many names / nomenclature / descriptions / types of
estimates used within the engineering / construction industry), these are as follows (the seven
methods shown below relate or correspond to the estimate descriptions on the following pages),
together with the amount of detailed design engineering required to compile the appropriate
estimating method.
(A)

Blue Sky / Order of Magnitude Estimate less than a couple of percent of the
engineering is completed, 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).

10

A.

(C)

Ratio / Factored Method, Some of the more frequently referred to ones 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 100s 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.

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 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
Were the following inputs 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)

11

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 its 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 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 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
1940s and early 1950s the method is known as the Lang Factor method is widely used in the
Process related industries, Mr. Lang is perhaps on 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 introduce 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):

12

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. Langs factors would fall in the 3.80 3.90 range

Hand Factors (circa 1960 data)

Mr. Hand who was employed by a large multi national petroleum company in the 1960s and 70s.
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. Hands 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
Blender
Blowers / fans (including motor)
Centrifuges
Columns w / o trays
Compressor, Centrifugal Motor-driven (less motor)
Compressor, Steam turbine (including turbine)
Compressor Reciprocating Steam and gas
Ejectors
Furnaces (Cabin type)
Heat exchangers
Pump, Centrifugal, Motor-driven (less motor)
Pump, Positive displacement (less motor)
Refrigeration (package unit)
Tanks, Process
Tanks, Storage

Multiplier / Factor
2.0
2.5
2.1
4.0
2.0
2.0
2.3
2.5
2.0
4.8
7.0
5.2
2.5
4.1
3.5

Data source / Information reference: Wroth. Cost Estimating Factors / Chemical Engineering
Magazine: circa 1960 data.
Typically Mr. Wroths multipliers fall in the 3.80 4.00 range.

Guthrie Factors (circa 1960) and similar factors produced between 1970 and 2007:

13

Mr. Guthrie was a chief estimator for a large USA based chemical company in the 1960s and 70s
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 ratios, multipliers, percentage uplift factors take into account if the
process is applicable with processing fluids (usually needs a lot 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.
Description
Major Equipment M.E. (28 M.E. items. M.E. $1.96M in 2001)

Material

Labor

Total

Ratio

Ratio

Ratio

1.00

0.00

1.00

Freight

0.04

0.00

0.04

M.E. Installation (millwright work)

0.02

0.10

0.12

Site Preparation / Earthworks

0.02

0.04

0.06

Foundations

0.04

0.10

0.14

Structural Steel / Siding / Platforms

0.07

0.09

0.16

Buildings

0.13

0.11

0.24

Piping Systems

0.22

0.26

0.48

Electrical Systems

0.08

0.11

0.19

Instrumentation / Controls

0.12

0.05

0.17

Insulation / Refractory

0.05

0.06

0.11

Painting

0.01

0.02

0.03

Miscellaneous items (spare parts, vendor asst, I-C programming, etc.)

0.04

0.03

0.07

Direct Costs S/T

1.84

0.97

2.81

14

Detailed Design / Project Mgmt / Procure

0.03

0.30

0.33

Engineering Support

0.01

0.06

0.07

Owner Eng / CM

0.02

0.09

0.11

CM

0.04

0.08

0.12

Gen Conditions / Field Establishment

0.04

0.07

0.11

Contingency (Future scope and change orders)

0.23

0.14

0.37

Indirect Cost S/T

0.37

0.74

1.11

Total

2.21

1.71

3.92

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 1.15

Average revamp projects multiply by 1.15 to 1.25
Major revamps multiply by 1.25 to 1.75

(2) Average Historical (Multiplier) Factors - Liquid Plants +/- 25% Accuracy (Chemicals / Fluids /
Wet Processs 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.
Ref
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Direct Construction
Costs
Major Equipment
(M.E.)
Freight (used 4%)
Overseas Freight
M.E. Setting
(Millwright work)
Site work / civil
(excavation / roads)
Concrete work
Structural steel
Facilities / Buildings
(including services)
Piping** (includes
hangars & testing)
Electrical
Instrumentation /
Controls
Insulation
Painting
Safety / F P /
Miscellaneous (A)
Total Direct Cost

Typical %
of M.E.
0

% Bulk
Materials
1.00*

% Labor S/C
0.00

Total

Remarks

1.00

2.5 - 5
5-8

0.02
N/A

0.02
N/A

0.04

1-7

0.01

0.05

0.06

3 - 10

0.02

0.03

0.05

8 - 25
15 - 35

0.03
0.10

0.10
0.11

0.13
0.21

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

3 - 15

0.03

0.02

0.05

50 - 150

0.40

0.60

1.00

ISBL only

15 - 45
20 - 65

0.09
0.15

0.13
0.13

0.22
0.28

Including tracing

3 - 25
2 - 10
4 - 12

0.02
0.01
0.02

0.03
0.01
0.03

0.05
0.02
0.05

1.90

1.26

3.16

15

15
16
17
18
19
20

Indirect Project
Costs
Field Establishment
Costs ***
EPC Office H.O.
range 20% - 30%
Construction
Management range
20% -.45% of line 16
Owner Engineering &
CM 5% 15% of line
16 & 17
Total Indirect Costs
Total Cost Multiplier

0.29
0.86
0.21
0.11

23% of labor / S.C.

costs
27% of total
direct costs
25% of EPC H.O
10% of line 16 &
17

1.47
4.63

(A) = Start up costs, initial chemicals, expense items and other minor items.
* 1.00 = Total value of Major Equipment / Assume 25 items (M.E.)
** 50% - 150% is based on using a 60 - 40 split of Carbon Steel and 304-316 SS, this value
could in some situations exceed 150% in circumstances were exotic / expensive piping
materials are utilized, i.e. Glass / Kynar / Teflon lined / Alloy 20 / Nickel, etc., or high percentage
of 304 - 316 SS, etc. is used due to hazardous / highly corrosive chemical applications.
*** Field establishment includes, construction equipment, field offices, field in directs, G.C.s &
S/C trailers, temporary 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.
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.
Ref
1
2
3
4
5
6

Direct Construction
Costs
Major Equipment
(M.E.)
Freight (used 4%)
Overseas Freight
M.E. Setting
(Millwright work)
Site work / civil
(excavation / roads)
Concrete work

Typical %
of M.E.
0

% Bulk
Materials
1.00*

% Labor S/C
0.00

Total

Remarks

1.00

2.5 - 5
5-8

0.02
N/A

0.02
N/A

0.04

1-7

0.01

0.05

0.06

3 - 10

0.03

0.04

0.07

10 - 50

0.04

0.12

0.16

Assume $1.00
million
50/50 split
N/A for this
example
Heavy lift cranes
in line 15
Site clearance /
minor demolition
SOG & elevated

16

Structural steel

20 - 50

0.13

0.15

0.28

Facilities / Buildings
(including services)
Piping** (includes
hangars & testing)
Electrical
Instrumentation /
Controls
Insulation
Painting
Safety / F P /
Miscellaneous (A)
Total Direct Cost
Indirect Project
Costs
Field Establishment
Costs ***
EPC Office H.O.
range 20% - 30%
Construction
Management range
20% -.45% of line 16
Owner Engineering &
CM 5% 15% of line
16 & 17
Total Indirect Costs
Total Cost Multiplier

3 - 20

0.03

0.02

0.05

25 - 100

0.25

0.40

0.65

ISBL only

15 - 45
15 - 60

0.09
0.13

0.13
0.12

0.22
0.25

Including tracing

3 - 25
2 - 10
4 - 12

0.02
0.01
0.02

0.03
0.01
0.03

0.05
0.02
0.05

1.78

1.12

2.90

9
10
11
12
13
14

15
16
17
18
19
20

0.25
0.67
0.17
0.08

Including
platforms

22% of labor / S.C.

costs
23% of total
direct costs
25% of EPC H.O
10% of line 16 &
17

1.17
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 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.
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 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, were the contingency was

17

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 / preassemblies / 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 1990s 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.

(A) Direct Work - ISBL

Material

Labor

Total

Major Equipment (M.E.) 76 # items

5,354,832

0.00%

5,354,832

Freight

112,034

2.09%

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

210,665

3.93%

332,887

6.22%

543,552

187,097

3.49%

203,599

3.80%

390,696

654,942

12.23%

275,348

5.14%

930,290

1,587,337

29.64%

1,824,484

34.07%

3,411,821

683,457

12.76%

588,244

10.99%

1,271,701

Civil / Concrete
Facilities / Architectural Finishes / Siding
Structural Steel / Miscellaneous platforms
Piping Systems
Electrical Systems
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

50,098
10,616,359

0.94%

65,644

1.23%

115,742

98.26%

4,394,139

82.06%

15,010,499

See note (1)

(A) Total Direct Mat & Labor
(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

Construction Equipment costs. Rental / Owned.

63,773

1.19%

346,667

6.47%

410,440

Construction 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 (optional cost item could be excluded)

297,974

5.56%

0.00%

297,974

(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

18

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

Freight

19,234

2.18%

0
0

882,657

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
212,324

19,234

Civil / Concrete / Roads / Tank farm / Jetty Mods

77,760

8.81%

134,564

15.25%

Structural Steel / Miscellaneous platforms

27,860

3.16%

38,664

4.38%

66,524

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

1,627,482

84.38%

491396

55.67%

2,118,878

(D) Total Direct Mat & Labor

(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

Construction Equipment costs. Rental / Owned.

12,092

1.37%

65,758

7.45%

77,850

Construction 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 (optional cost item could be excluded)

48,723

5.52%

0.00%

Total Indirect Work

227,726

214,044

1,855,208

705,440

Total D & I (D+E) OSBL

48,723
441,770

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

19

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

Total (includes ISBL & OSBL)

10.00%

Of
Total

$27,156,142

All % are related to M.E. values.

Note 1. Vendor assistance, start up, I/C programming and initial chemicals

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.
$ Millions

$ Millions

Bulk Material

$36/ Hour

Bulk Labor Labor Hours

Major Equipment (86 items)

Freight

3.15% Of M.E.

ME install

0.97%

Demolition

0.00%

Site Works

2.17%

0.097
0.216

3.95%

Total in
$ Millions
$

9.954

0.314

0.393

10,922

0.490

2.03%

0.202

5,625

0.202

2.80%

0.279

7,754

0.495

Foundations / Concrete work

3.97%

0.395

2.57%

0.256

7,117

0.651

Building structure

9.39%

0.935

8.59%

0.855

23,758

1.790

Pipe

23.09% $

2.298

29.95%

2.981

82,819

5.280

Electrical

11.09% $

1.104

14.12%

1.405

39,040

2.509

20

Instrumentation / Control

16.60% $

1.653

5.68%

0.566

15,718

2.219

Paint

2.26%

0.225

2.65%

0.264

7,326

0.488

Insulation

3.89%

0.387

3.86%

0.384

10,674

0.772

Fire protection

2.06%

0.205

2.16%

0.215

5,981

0.421

Refractory / Miscellaneous items

2.45%

0.244

3.41%

0.339

9,424

0.583

Total Directs (A)

77.95% $

7.759

81.79%

8.142

226,157

26.167

16.04% Of labor

1.306

1.69% Of labor

0.138

Field establishment

2.46% Of material

0.191

Field establishment

2.57% Of labor

0.209

Consumables

0.87% Of material

0.067

Small tools

0.88% Of material

0.068

Construction equipment

7.67% Of labor

0.624

Construction maintenance

1.45% Of labor

0.118

Material handling

2.23% Of material

0.173

Clean up

1.85% Of labor

0.151

Road maintenance/ barriers

2.17% Of labor

0.177

Vendor assistance

0.89% Of M.E.

0.089

Contractors fee

2.25% Of directs

0.589

I/C programming

4.75% Of I/C L & M

0.105

Spare parts

2.18% Of M.E.

Field in directs
Field supervision
Field admin / secretary

0.217

Total Indirect (B)

4.222

Total (A) + (B)

30.389

Engineering / CM (C)
EPC firm Detailed design

10.23%

3.109

3.109

0.35%

0.106

0.106

EPC firm Procurement

0.57%

0.173

0.173

EPC firm Construction Mgmt

3.85%

1.170

1.170

EPC firm Field support (RFIs)

Owners Engineering

0.45%

0.137

0.137

Owners Construction Mgmt

0.18%

0.055

0.055

Front End studies

1.48%

0.450

0.450

Owner General conditions

0.33%

0.100

0.100

5.300

5.300

35.689

Engineering / CM (C)
Total Project (A+B+C)

Total Project = $35.689 million divided by Major Equipment = $9.954 million = 3.58 (note: off-sites
not included off-sites were a separate contract valued at $4.70 million)
(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:
Category

$ Million

21

Remarks

Major Equipment (M.E) 121 items

17.20

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

0.41
0.87
0.21
0.84
1.88
8.33
2.95
3.21
1.47
0.44
0.37

693 Design hours /

Per M.E. item

38.18
12.79
50.97
5.37
1.63
57.97
6.85

83,900 M.H. s

0.51
0.20
65.53

7,950 M.H. s
3.37
3.81

Excludes: Owner corporate engineering $298,000 and Front End Study $445,000:
Demolition could be an expense item. Refer to previous L & M ratios to determine man-hours and
material splits.

(7) Glycerol Esters / Fatty Acids Facility - 2007 Cost Basis:

Ref
Category of Work
# (A) Direct Work - ISBL / OSBL
1

Material

% of M.E.

Labor

% of
M.E.

Total

1,985,200

0.00%

1,985,200

Major Equipment (M.E.) 41 #

items
Freight

60,549

3.05%

M.E. Setting in place

8,933

0.45%

Site Work / Preparation

56,578

2.85%

0.00%

60,549

6.35%

134,994

4.25%

140,949

8.65%

313,662

2.95%

113,355

5.47%

439,523

62.65%

1,866,088

11.35%

537,989

8.37%

925,500

126,060
84,371
5

Piling / Civil / Concrete

141,942

7.15%
171,720

6
7
8
9

Facilities / Architectural Finishes

/ Siding
Structural Steel / Miscellaneous
platforms
Piping Systems (40% CS - 55%
SS)
Electrical Systems

54,792

2.76%
58,563

330,933

16.67%
108,590

622,360

31.35%
1,243,728

312,669

15.75%
225,320

10 Instrument / Controls

759,339

38.25%
166,161

22

11 Paint / Insulation / Refractory

53,600

2.70%

3.77%

128,442

11.25%

329,742

74,842
12 Fire Protection / Safety

106,407

5.36%
223,335

13 Off sites / Miscl items See note

(1)
(A) Total Direct Mat & Labor

155,838
4,649,140

(B) Indirect Work

7.85%
134.19%

7.05%

295,795

139,957
2,622,648

82.06%

7,271,788

164,772

30,771

1.55%

134,001

% of
M.E.
6.75%

34,741

1.75%

8,933

0.45%

43,674

44,667

2.25%

7,147

0.36%

51,814

134,001

6.75%

58,563

2.95%

192,564

3,970

0.20%

20,845

1.05%

24,815

19 Construction Equipment costs.

Rental / Owned.

45,064

2.27%

108,392

5.46%

153,456

20 Construction Equipment Repairs

etc. / Fueling.

10,919

0.55%

25,212

1.27%

36,131

21 Material Mgmt / Logistics / Field

Support
22 Testing Activities

62,137

3.13%

32,756

1.65%

94,893

5,559

0.28%

5,757

0.29%

11,316

23 Site Clean Up activities / snow

removal
24 Expense items (Demo /
relocations of cooling tower,
oxygen tank, pipe bridge and
pad # 3A)
(B) Total Indirect Work Mat &
Labor
Total D & I (A+B) ISBL / OSBL

13,896

0.70%

30,771

1.55%

44,667

68,489

3.45%

68,489

3.45%

136,979

454,214

22.88%

500,866

25.23%

955,080

14 Trade Supervision / Foreman /

Gangers etc.
15 Consumable supplies
16 Small Tools (items less than
$200 per item)
17 Site Establishment / Trailers /
Temp Offices.
18 Safety / Training

(C) Detailed Design - D.D.& S.

/ ISBL
25 EPC Detailed Design / Project
Management / Procurement
26 CAD / Computer charges /
Express mail
27 Construction Mgmt / field project
controls
28 Home Office support / field
coordination (RFI s),
inspections at vendor shops
29 Travel Costs

% of M.E.

5,103,354

3,123,514

8,226,867

% of A & B
10.23%

841,609

0.24%

19,744

3.76%

309,330

0.39%

32,085

1.05%

86,382

30 Owner Project Eng / CM

0.42%

34,553

31 Plant C.M. / Eng Support

0.75%

61,702

32 Front End Project Eng

2.35%

193,331

33 O/S Peer Review / V.E. Study /

Risk study
34 Plant Gen Conditions / Trailers

0.75%

61,702

0.37%

30,439

1.37%

112,708

35 Consultants / Miscellaneous
Costs
Total (D.D.& S) ISBL / OSBL

1,783,585

Total Project Cost

ISBL / OSBL (A+B+C)

10,010,452

23

Multiplier M.E. to TIC = 5.04, this includes some off sites work approx $250K direct x 1.35 for indirects 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-ins.
Detailed design hours $841,609 / $59.75 average cost per hour = 14,085 hours / 41 M.E. items =
344 hours per M.E. item:

(8) 250 and 500 MW Power Facility (Coal Fired) 2008 Cost Basis:
Description
Site Works
Site clearance / Site Improvement
Demolition
Retention ponds / M.U. Ponds / Piping river intake / dredging
Walkways
Perimeter roads
Railroad spur
Water Vault / Sewage treatment facility
Site fire main
Security fence / gates
Potable water main
Miscellaneous signs / site works items
Sub Total
Buildings / Facilities
Steam Generation Bldg / Stack foundation
Turbine Facility 2 floors 1 mezzanine (150 250 x 50 high)
Operator Changing Rooms / Break Areas /
Warehouse
Control Bldg
Office / Admin Bldg / Cafeteria
W W T Control Room
Coal Handling Bldg / Area
Emergency Generator Bldg (black start)
Chemical treatment Bldg
River Intake Bldg

24

250
MW

500
MW

18.73
0.00
19.83
0.59
5.85
3.51
0.99
3.51
2.14
0.60
0.77
56.52

23.45
0.27
26.72
1.34
7.65
3.96
1.74
5.16
3.38
1.06
0.96
75.69

33.43
19.88
1.04
2.67
0.70
5.91
0.70
2.32
0.98
1.69
0.98

59.66
36.58
1.83
4.92
1.27
7.44
1.27
4.08
1.81
2.97
1.75

% of "A"

% of "A"

13.9%

10.8%

Guard / Security Center

Fire Engine Bldg
Gatehouses
Hard standings / Pads
Parking Area
Plant air / vacuum system
Miscellaneous Building items
Sub Total
Turbine / Steam Generation
Turbines & Ancillary equipment (incl piping / electrical / controls)
Steam Production / Boilers (incl piping / electrical / controls)
Electrical Transformers / Switchgear (incl piping / electrical / controls)
Turbine Vent systems (incl piping / electrical / controls)
Drafting Systems & Concrete Stack (incl piping / electrical / controls)
Scrubber(s) system (incl piping / electrical / controls)
Coal Handling / Crushers (incl piping / electrical / controls)
Coal Washing Equipment (incl piping / electrical / controls)
Ash / Cinder Collection (incl piping / electrical / controls)
Feed water Condensate Systems (incl piping / electrical / controls)
Chemical Injection - Treatment / sampling system / tanks
Insulation and refractory
Cooling Tower systems / M.U. water tanks (incl electrical / controls)
Spare parts (Pumps, impellers, valves, blades and other items)
Operating Equipment "AA"
Miscellaneous Generation items
Sub Total "A"
Construction Total
Div 1 / G C's / Temp Construction
Sub Total
Detailed Design / Construction Management
Detailed Design (Engineering deliverables) and Fee
FE Engineering Studies
Owner Engineering / CM / Procurement / Inspection / Start up
CM and Fee
Sub Total
T.I.C. in US $ millions - mid 2007 Cost Basis - Mid West USA
Cost per MW
Low Range MW cost
High Range MW cost
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 miscl items.

25

0.42
0.56
0.35
0.91
0.98
1.76
0.45
75.76

0.77
1.03
0.63
1.62
1.80
3.21
0.72
133.35

51.25
71.66
8.25
6.71
35.30
12.95
4.13
6.61
20.16
14.64
1.93
3.73
34.69
1.75
1.15
0.66
275.58
407.86
43.43
451.29

89.18
132.35
15.86
12.19
62.29
23.96
7.34
11.94
35.48
26.06
3.51
6.49
60.35
2.57
1.57
1.25
492.39
701.43
82.54
783.97

48.25
7.55
14.56
19.17
89.53

80.58
10.12
23.59
31.84
146.12

540.82
$
2,163
$
1,514
$
2,812

930.10
$
1,860
$
1,302
$
2,418

18.6%

19.0%

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%

(9) Steel Production Facility (2008 Cost Basis):

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Category
% of M.E.
Major Equipment A
Freight
3.2%
Major Equipment setting
8.9%
Demolition
1.0%
Site work
3.4%
Civil work (foundations)
12.1%
Structural Steel
12.8%
Piping
7.3%
Insulation / Refractory
1.0%
Electrical
15.5%
Instrumentation / Controls
7.7%
G C / Site Establishment
13.0%
TIC w/o Detailed Design / CM
185.9%
Detailed Design
13.9%
Construction Mgmt
6.1%
TIC - 2007 Cost Basis B in millions of US $

% of TIC
48.6%
1.5%
4.3%
0.5%
1.7%
5.9%
6.2%
3.5%
0.5%
7.5%
3.7%
6.3%
90.3%
6.7%
3.0%
100%

$ 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

M.E. Multiplier (B / A)

2.05

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.
(10) Combined Sewage - Process / Water Conditioning Facility: (2008 Cost Basis)

Major Equipment (53 # items)

Major Equip setting

$ Cost in
Millions
1.111
0.074

6.60%

Concrete Tanks / vault

Roads / Walkways
Fire main
Site works
Civil / Concrete excluding vault
Pre cast Concrete

0.952
0.537
0.068
0.137
0.257
0.117

85.70%
48.30%
6.10%
12.30%
23.10%
10.60%

Structural Steel / Platforms

Building (W-H / control admin)
Pipe (CS, SS and CPVC)
Insulation
Electrical / tracing
Instrumentation

0.233
0.291
0.578
0.228
0.537
0.429

20.90%
26.10%
52.00%
20.50%
48.30%
38.60%

Category

% of
M.E.

26

Notes
$20,962 per M.E. item
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

Painting
Epoxy coating to tanks
Lab / Office Equipment /
Maintenance Equipment

0.079
0.04

7.10%
3.60%

0.053

4.70%

Total Construction Cost

5.719

Preliminaries / General
Conditions - 5.5%
Detailed Design 9.90%
P M / CM 5%

0.672
0.535
0.292

Total

60.50%
48.10%
26.20%

9,570 man-hours

7.218

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.

27

(11) Crude Distillation Cabin Oil Heater Re-boiler- Flue Gas Add-on Facility
320 Million BTUs ($177,300 per million BTUs - 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)
Construction Category

Qty

U/M

Material

Hours

$ Rate

Labor

Total
9,336,700

Major Equipment (M.E.)

Columns / Tower / Trays - Modifications

Ea

7,210,500

30,314

70.14

2,126,200

Bayonet Section / Re Tubing & Manifold

Ea

453,000

2,582

70.14

181,090

634,090

Heater / Re-boiler / Flue Gas Stack

Ea

9,038,000

65,441

70.14

4,590,000

13,628,000

Compressor

Ea

345,600

381

70.14

26,740

372,340

Cabin / Pre-Heater section

Ea

275,500

423

70.14

29,670

305,170

Injection skids/ manifolds

Ea

175,230

250

70.14

17,550

192,780

Pumps with motors

Ea

54,560

211

70.14

14,790

69,350

Heat Exchangers 3 new ( 5 modified)

Ea

148,100

2,467

70.14

173,050

321,150

Refurbish M.E. (Compressor, Blower & Pumps)

Ea

65,720

1,668

70.14

117,000

182,720

Miscellaneous equipment: coils / drums / tanks etc

Ea

532,600

390

70.14

27,340

559,940

Tank modifications / Baffle reconfigurations

Ea

128,500

1,860

70.14

130,450

258,950

S/T

42

18,427,310

105,986

7,433,880

25,861,190

19,053,839

105,986

7,433,880

26,487,719

AC

384,300

6,470

50.15

324,450

708,750
454,700

Freight 3.34% (on M.E.)

626,529

M.E. Sub Total (A) $26,487,719 / 42 M.E. = $631 K

626,529

Non Engineered / Engineered Materials

Site improvements / 190 LF Rail spur with switch

Caissons / Piling ($75 / LF)

6,100

LF

246,700

4,148

50.15

208,000

Concrete (Foundations and flatwork - $499 CY)

1,695

CY

376,900

7,797

60.14

468,900

845,800

412

Ton

543,980

7,257

70.14

508,990

1,052,970

Structural Steel / Platforms ($2,556 Ton)

Piping (Aver 8" diameter - CS 65% / SS 35% - $515
LF)

6,920

LF

2,012,000

22,165

70.14

1,554,640

3,566,640

Piping small bore 1.5" diameter and less ($81 LF)

Electrical (Equipment, switchgear, MCC, cable /
conduit and hook ups)

7,900

LF

122,500

7,340

70.14

514,828

637,328

413,600

6,483

70.14

454,720

868,320

Instruments / controls / cable I/C ($1,288 per I/O)

1,020

No

934,370

5,410

70.14

379,450

1,313,820

Insulation to pipe ($149 LF)

5,450

LF

536,000

4,588

60.14

275,900

811,900

Flue Gas Stack & Duct Modifications ($3,814 Ton)

142

Ton

296,750

4,071

60.14

244,800

541,550

Firebrick (2.5) and (1) gunite type lining ($63 SF)

4,710

SF

172,000

2,084

60.14

125,360

297,360

Painting ($2.10 SF)

79,900

SF

65,660

1,694

60.14

101,890

167,550

Buildings (Control Room / Change Area - $112 SF)

3,350

SF

184,600

3,157

60.14

189,850

374,450

147,800

6,250

60.14

375,900

523,700

50.15

Asbestos / Lead paint removal

Demolition / removals ($300 Ton)

1,930

Ton

65,500

10,261

6,502,660

99,174

SY

67,550

1,740

Non Engineered / Eng Materials S-T (B)

514,600

580,100

6,242,278

12,744,938

50.15

87,250

154,800
131,800

Offsite work / OSBL

Roads / Parking area ($25 / SY)

6,100

Additional Bund Walls to tank farm ($488 CY)

270

CY

54,870

1,534

50.15

76,930

Modify pipe rack ($4,881 / Ton)

27

Ton

48,987

585

70.14

41,040

131,800

Move existing u/g drains & utilities ($158 LF)

1,300

LF

116,980

1,772

50.15

88,880

205,860

Pipe runs & tie ins (Aver 8" diameter - $370 LF)

1,780

LF

246,230

5,881

70.14

412,470

658,700

28

Piping small bore 1.5" diameter and less ($69 LF)

2,680

LF

43,560

2,010

70.14

140,981

184,541

Insulation with metal jacket ($121 LF)

1,320

LF

74,570

1,419

60.14

85,310

159,880

680

SF

23,450

857

60.14

51,550

75,000

Elect runs & tie ins from D sub station ($260 LF)

1,020

LF

79,700

2,642

70.14

185,300

265,000

Fence to E side + 2 Gates (1,750 LF - $69 LF)

120,000

Modifications to control room ($110 SF)

1,950

LF

76,890

860

50.15

43,110

Truck loading area (CSA & MEP systems) ($86 SF)

800

SF

43,510

423

60.14

25,460

68,970

Mod to Tank age area ($445 / CY)

780

CY

236,780

1,571

70.14

110,220

347,000

1,348,501

2,503,351

15,024,659

41,736,008
1,000,699

Offsite work / OSBL Sub Total ( C)

1,113,077

21,294

Total of M.E. & Field Construction (D)

26,669,576

226,454

Field Support / General Conditions

Supervision (6.7% of Field Construction Labor)

13,587

73.65

1,000,699

Labor support (clean up / mat deliveries 0.013 of D)

157,000

6,161

60.14

370,500

527,500

Scaffolding / Barricades 0.0108 of D

147,670

4,744

60.14

285,330

433,000

Small tools / Consumables / Hard hats etc $3.37 / hr

696,580

1,118

60.14

67,260

763,840

Field offices / Trailers / Secretary / Security

163,000

8,637

37.55

324,330

487,330

Construction Equipment / Fuel / Site Vans

375,450

8,637

57.01

492,350

867,800

Temporary power / utilities

26,340

264

65.36

17,260

43,600

2,557,729

4,123,769

17,582,388

45,859,777

Field Support / General Conditions S-T (E)

1,566,040

43,149

Total of D + E

28,235,616

269,603

Detailed Design / PM-PC-Proc effort 7.9% of D+E

32,614

110.50

3,603,800

Computers / CAD / Xerox copies F-X $7.25 per HO hour

32,614

CM Staff (7) 3.36% of D+E

15,217

101.25

1,540,700

Detailed Design & Construction Mgmt

238,082

CM General Conditions (including above)

HO Start -up assistance

3,150

110.50

348,075

HO Field Support / RFI's / Vendor visits / Surveys

1,460

110.50

161,330

Travel / Per Diem / Miscellaneous items

445,800

D. D. / CM Sub Total

6,337,787

Other Project Related Costs

Overtime / Shift work (HO & Field) allowance.
Vendor Support 300 Hrs @ $120 hr + expenses.

570,500
300

Hours

39,600

Spare Parts (Expense)

287,000

Initial fill / Grogg.

165,800

Owner Support / Consultants (7,160 Hours) 2% of D+E

894,800

Owner travel / expenses.

87,740

Sales tax 5.5%

1,518,500

BAR Insurance / Bonds.

238,600

Owner Start up assistance / commissioning.

174,300

Early Engineering studies.

570,000

Other Project Related Costs Sub Total

4,546,840

Total Project Cost

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.

29

(12) Chemical Production Facility: Multiplier 3.00

2008 US Gulf Coast, 10 month Construction Effort
Open Shop Construction

Category

Material

M-H's

Rate
including
Fringes

Labor

% of
M.E.

Total
1,621,00
0
50,778
1,671,77
8
93,570

5.6%

M.E. (12 items)

Freight 3.15%

1,621,000
50,778

S/T M.E. A
M.E. setting
Site work /
Excavation
Concrete
Structural Steel

1,671,778
3,200

2,884

31.33

90,370

17,520
49,690
97,720

1,843
2,884
1,518

27.35
28.93
32.75

67,920
133,120
147,440

4.1%
8.0%
8.8%

155,230

4,804

31.88

308,370

18.4%

Pipe
259,360
8,451
Electrical
108,270
2,383
Instrumentation
47,260
1,070
Insulation
29,660
980
Fire protection
15,060
465
Painting
11,830
702
Demolition
11,530
862
OSBL
(Pipe/Electrical)
33,530
1,287
Fence / Road / Stone
45,850
1,512
Construction Total
B
885,710
31,644
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

32.85
33.25
33.42
28.85
29.77
28.25
26.47

50,400
83,430
49,720
153,14
0
277,63
0
79,230
35,760
28,260
13,830
19,820
22,820

536,990
187,500
83,020
57,920
28,890
31,650
34,350

32.1%
11.2%
5.0%
3.5%
1.7%
1.9%
2.1%

41,620
41,340
987,37
0

75,150
87,190
1,873,08
0

4.5%
5.2%

Bldg / Siding / Roof

32.33
27.35

76,521
174,271
161,435
123,421
87,350
17,280
16,450
39,230
159,212
855,170
4,400,02
8

S/T A+B+C
Other Costs
Detailed design + fee 7.7%
CM 3.7+ fee%
CM Trailer / Services 10 months
Spare Parts

338,802
162,801
12,500
14,500

30

112.0%

Refurbish pumps / heat exchanger

Demo (Expense)
Commissioning / Start Up
S/T

19,540
38,760
27,600
614,503
5,014,53
1

Total

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.
TYPE OF PLANT
Chemical - Liquids
Chemical - Liquids /
Solids (Hybrid)
Chemical - Solids
Ethanol Facility (corn /
sugar cane)
Pharmaceutical
Power
Steel

LOW RANGE M.E.

Multiplier
3.75
3.25

MEDIAN M.E.
Multiplier
5.00
4.50

HIGH RANGE M.E.

Multiplier
6.25
5.75

2.50
2.75

3.75
3.25

5.25
3.75

1.75
2.00
1.50

2.50
3.30
2.00

4.50
4.00
2.50

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 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
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

31

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.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

A preliminary / detailed scope of work statement / project execution approach.

The location of the new / existing plant.
A major equipment list and specifications / materials of construction, with vendor pricing if
possible.
P.C.A.s / Phase 1 Environmental Reports (if available).
Process Flow Diagrams P.F.D.s.
Reasonably complete P. & I. D.s say 30-70% complete.
Some general arrangement drawings, plot plan, some out line / detailed specifications.
Preliminary Electric motor list.
Electrical classification map.
Instrumentation / Control philosophy.
Preliminary Instrumentation list.
Preliminary equipment arrangements.
A milestone event schedule (start of engineering, procurement and construction and finish
date).
Knowledge of off-site requirements.
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 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)

These 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 time
companies use this estimate to get funding from their board of directors, this is the stage in the
projects life cycle to obtain its full approved funding, typically the detailed engineering effort might

32

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 and 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, is very much more labor (engineering, design staff, procurement and project
controls), intensive that the previous mentioned front end approaches described previous. B of Qs,
(Bills of quantity), Major Equipment lists, Instrument lists, bulk material take-off s are typically
made to a large extent from 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: To be reviewed and added to the previous cost models if appropriate:
Ref

Description

Range

Offsites (OSBL)

Fringes (vacations,
holidays, sick days)
Worker Compensation
Insurance

5% - 50% of
Inside Battery
Limits (ISBL)
22% - 30% of
base wage rate
10% - 17.5% of
base wage rate

Cost of
Facility

33

Cost of
Activity

Comments

1.5% of TIC

Inspections / QA-QC
services
Front End Studies /
Scoping study / BOD
Builders all risk insurance
(BAR)
Contractors O/H
(Supporting construction /
field activities)
Profit

9
10

Performance Bond
Procurement activities

11

Engineering support

12

H.O Project Controls

13

Value Engineering Study

14

Risk Mgmt Review

15

Project Reviews / Audit /

Benchmarking Analysis

16

5% - 8% of TIC

17

General Conditions /
Preliminaries
Small Tools

18

Consumables

19

Temporary Services

20

Field Supervision

21

Major Equipment multiplier

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

5
6
7

0.5 2.5% of
TIC of facility.
0.15% - 0.60%

$1 - $100 +
million
$1 - $100 +
million

4 00% - 15.00%

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.

3.5% - 15%

0.35% - 1.25%
0.50 1.00% of
TIC
0.50 1.00% of
TIC
0.50 1.50% of
TIC

Purchase orders and

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

$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
(Gases, welding rods,
grease etc.)

1.5 5% of
Direct - S/C
Labor

Could be 5.0
7.0 for
remote
plants and
facilities
using SS
and exotic

34

Multiplier of d/d M.E item

(cost).
An example of a high
multiplier would be
Canadian Tar Sands
projects

metals
22

Construction Equipment

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

23

Protection materials

24

Contractors Fee

25

Vendor Assistance

26

Spare Parts

27

Royalties / Licensor Fees

28

Overtime shift work

29

Validation Services (were

required)

30

Operator Training

31

Owners Staff / Engineers,

Consultant based at EPC
office / field location
during construction effort

32

Owners Engineers North

American Staff /
Consultants based at EPC
office / field location
during construction effort

South America
($70 - $125 /
hour)

33

Owners engineers North

American Staff /
Consultants based at EPC
office / field location
during construction effort

Europe
($70 - $125 /
hour)

0.50 1.50% of
Major
Equipment
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)

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)

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)
$10 - $17K
per month
(based on
166 m/h
per month)

$10 - $20K
per month
(based on
166 m/h
per month)

35

Excludes
per diem &
trip home
every 2 - 6
weeks
Excludes
per diem &
trip home
every 8 - 12
weeks
(* Excludes
local
country
income
taxes)
Excludes
per diem &
trip home
every 8 - 12
weeks
(* Excludes
local
country
income

2.5 5% of M.E. on large

/ complex EPC projects
Per diem varies and is in
the $100 - $150 / day
range). Airline fare $0.5K
- $1.5K
Per diem varies and is in
the $100 - $250/ day
range. Airline fare $1K $2K
Business Class $4K

Per diem varies and is in

the $100 - $250 / day
range. Airline fare $1K $3K
Business Class $4K

34

Owners Engineers North

American Staff /
Consultants based at EPC
office / field location
during construction effort

Africa, Middle
and Far East
($75 - $135 /
hour)

35

Expense items /
Demolition / initial fill
Chemicals /

36

Steel Pipe Mill

Construction Cost - (Total
Facility based on
production capacity)
Steel Mill Construction
Cost - (Total Facility based
on production capacity)
LNG Construction Cost (Total Facility based on
production capacity)

TBD
Historically
0.50% - 1.50%
of TIC
$300 - $450 Ton

37

38

$550 -$700 Ton

$300 - $450 Ton

$12 - $22K
per month
(based on
166 m/h
per month)

Average
Cost $375 /
Ton
Average
Cost $625 /
Ton
Average
Cost $250
- $325 /
Ton of
annual
production
capacity
Average
Cost $2.00
per Gallon

Ethanol 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.

40

Bio-Diesel Facility
Construction Cost - (Total
Facility based on
production capacity)
Flax, palm oil, sunflower
and soybean.
Cement Plant
Construction Cost - (Total
Facility based on
production capacity)
Refinery (Oil)
Construction Cost - (Total
Facility based on
production capacity)

$0.90 - $1.40
per gallon

$1.15 per
gallon

$225 -$335 Ton

Average
Cost $280 /
Ton

$6,750 - $11,250
per BBL

Average
Cost
$9,000 per
BBL

42

Per diem varies and is in

the $100 - $250 / day
range. Airline fare $1.5K $4K
Business Class $7K

Use quoted values were

possible:

39

41

taxes)
Excludes
per diem &
trip home
every 8 - 12
weeks
(* Excludes
local
country
income
taxes)

36

43

50,000 BBL 250,000 BBL /

day
Alumina Facility

44

Boric Acid Facility

45

Ethyl Acetate Facility

46

Power Plant (Coal)

Construction Cost - (Total
Facility based on
production capacity)
Combined Cycle Power
Plant (Gas) Construction
Cost - (Total Facility based
on production capacity)
Simple Cycle Power Plant
(Gas) Construction Cost (Total Facility based on
production capacity)
Wind Power Construction
Cost - (Total Facility based
on production capacity)

47

48

49

Facility cost
per pound / kg
of production
Facility cost
per pound / kg
of production
Facility cost
per pound / kg
of production
$1,475 - $1,875
per MW

$550 - $700 per

MW

$0.27 - $0.30
per kg of
production
$0.06 - $0.09
per kg of
production
$0.13 - $0.15
per kg of
production

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

$500 - $670 per

MW

Average
Cost $585 /
MW

$850 - $1,650 of
installed MW of
capacity

Average
Cost
$1,250 /
MW

Average
Cost
$1,333 /
MW

Based on facility capable

of generating 200 450
MW

Average

Excludes hangers and

50

Geothermal Power Facility

$890 - $1,775 of
installed MW of
capacity

51

Hydro power plant

52

Desalination Facility

53

Construction temporary
services (water, electricity
etc)
Cost of CS pipe and

$1,400 - $1,975
of installed MW
of capacity
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

54

$0.60 $0.65 per

pound
$0.14 $0.20 per
pound
$0.28 $0.34 per
pound
Average
Cost
$1,675 /
MW
Average
Cost $675 /
MW

37

Optimum wind speed

need 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

55

56

fittings delivered to site ,

excludes field fabrication
and erection
Cost of CS A-36 0.25 inch
plate ex works

60

Bonds / taxes (B&O)

Import duties / VAT
payments
Refurbished major
Equipment / E&I
programming / Tie-ins /
Facility Shut-downs
I/O point new
I/O point modifying
existing system
Operating consumables

61

Annual Maintenance Costs

57

58
59

per pound
$5.83 - $8.03
per kg
$0.33 $0.37
per pound
$0.73 - $0.81
per kg
TBD

supports

Determine if sales
exemption certificate is
in place.

TBD

$1,500 $2,500
$800 - $950
0.5 1.75% of
annual sales

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)

2.5% - 8.5%

62

Utility costs for Refinery /

Chemical Plant

63

Freight (USA in country)

64

Ocean Freight

65

Operator training

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

Owner Engineering (PM/

Engineering / CM)
Construction Equipment

67

cost $3.15
per pound
and $6.93

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:

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)

38

68
69

Rail spurs, roads,

footpaths and fences
Pre-Commissioning

70

Project Insurance
(Umbrella)

71

Third party inspection

services

5% - 10% of
M.E. cost.
0.80% - 1.80%
of M.E. plus
bulk materials.
0.65% - 1.30%
of Construction
costs

Exclude detailed design,

procurement, CM and
fees from the
calculation.

0.75% 2.25%
of M.E. plus
bulk materials

* 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 were applicable.
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 ratios
compared to normal company estimating standards. This summary / information should include
some of the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.

Type of Estimate O.O.M. / Funding / Lump Sum

Name and location of plant / facility
Basis of estimate / scope work statement
Percentage of Engineering Complete
Estimating plan / key people involved with capital cost estimate
Percentage breakdown between direct and indirect costs
Major equipment list (percentage of firm quotes)
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 areas of buildings, etc.
Estimated engineering and field construction hours
Labor rates, union or non union labor
Take-off allowances / Resolution factors and allowances / Design growth
In-house engineering / Support cost details
Estimating assumptions / listing of drawings and specifications estimate is based upon
Contracting / construction approach
Basis of Inflation / Escalation value
Expense items Start-up cost details Vendor Assistance costs
Plant tie-ins and shutdown work / Royalties / T & C review / M.E. multiplier
Engineering hours per piece of M.E / Shift work or overtime requirements
Premiums for M.E. early delivery / Milestone schedule / Accuracy of estimate
Project risks, i.e., demolition, hazardous waste, LBP, long lead equipment items / L Ds
Percentage of estimate based on formal quotations, percentage based on internal company
estimating systems / Contingency (Technical and General) values / Currency impact etc.
Inflation values utilized.

39

This detailed listing will greatly assist management in their review process. It is important to have
this information on file, many times capital cost estimates are delayed, cancelled or deemed to
expensive, or the ROI / EBITDA is not considered high enough, many times these estimates are put
aside for a period of time only to needed again, two or three years down the road, using the older /
previous capital cost estimate and calibrating it to todays cost can save a lot of time and resources,
when the CAPEX estimate is needed again. The basis of the bid, i.e., assumptions, clarifications,
exclusions from bid or alternates to proposal, need to be documented and made part of the bid
submission, the physical effort of a detailed capital cost estimate involves many individuals, to be
successful it needs to be a total team effort. There must be a substantial / in depth analysis,
review and checking procedure by senior management and the estimating / proposal team prior to
the estimate / bid being submitted to client / or if the capital cost estimate is 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 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 pluss and minuss associated with them, hopefully some of the
information contained in the following sections will help the reader in understanding these complex
issues. Industrial Construction (refineries, chemical plants, pharmaceutical facilities, power facilities
etc) need to be looked at differently, they all have distinctive scopes of work that are unique to their
market sector. Assembling and calibrating the capital cost estimate for these types of facilities are
complicated tasks; the initial sections of this publication should be a good starting point data
source for individuals tasked with this responsibility. As has been mentioned previously, there is no
common denominator when it comes to a standardized estimating methodology - different countries
/ different companies / different industry sector all use different terms / nomenclature for in
compiling and discussing CAPEX estimates, there is no standard name or classification / approach.
Again a lot of the issues related to the basics of CAPEX estimating, CAPEX estimating
fundamentals are discussed in some detail in Section 1, 2 and 3 of this publication.

40

SECTION A - 4
BASIC BENCHMARKING DATA AND ELEMENTS OF A PROCESS PLANT /
CHEMICAL FACILITY MANUFACTURING PLANT
What is benchmarking and how does it fit into the execution of CAPEX projects:
Benchmarking is basically about making comparisons with other businesss and our
main competitors how they execute CAPEX projects, and then learning from the pluss
and minuss that those comparisons come up with and making changes in the way we
will execute CAPEX projects in the future to gain a competitive advantage.
Benchmarking is the constant measurement of installation methods, man-hour
performance standard / routine(s), product(s), or service compared to those that are
considered best in class: Benchmarking allows a company to recognize specifically
where their performance standards / operations are relative to there competition, it is a
tool that can be used to detect major production and performance disparities both on the
plus side and on the minus side. By recognizing various production failings shortcomings, management can focus on remedies to improve that specific failing
metric. Benchmarking is the continuous process of measuring our performance and
practices against our toughest competitors or those companies recognized as industry
leaders - best in class. Basically it is activity of refining ourselves by learning from the
successes of others and considering our past failures.
This section is focused on basic benchmarking data (man-hour units man-hour units to
install various construction components), graphs and various fundamentals of a process
plant / chemical facility / manufacturing plants, the focus of this section is to drill down
deeper than the ratio and factor estimating methods described in Section A 3, the
reader will find numerous man-hour benchmarks for site works, civil, masonry, concrete
work, structural steel, equipment setting (millwright work), piping, electrical work and an
number of other related metrics that may be useful in compiling or auditing front end
conceptual estimates. The Engineering, Procurement and Construction (EPC) effort
involved in the expansion or creation of a new or revamped CAPEX process (chemical
or manufacturing facility) journeys from initial idea to execution and final handover, the
effort involves most of the following work stages / steps.

Project Initiation (this could mean obtaining a project #, or obtaining

funding for this effort).

Front End assessments, PCAs, site visit and evaluations.

Engineering studies for economics - ROI / EBITDA returns
Basic and detailed process design followed by detail design.
Development of Front End engineering / concept reports including deliverables
for final design.
Engineering / detailed design / effort (E).
Procurement (Buy-out of major equipment and bulks) - Expediting - QA-QC effort
(P).
Construction / Field erection and installation(C).
Construction Management and Commissioning / Start up of plant or facility (CM).
Validation (on pharmaceutical facilities) (V).
Plant Acceptance / Handover.
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 man-hours 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 plates 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.
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.
2

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 fluctuation clauses that are
contained in a vendors quotation, the installation of major equipment is typically made
up of millwright work and erection equipment i.e. cranes and other lifting devices:
Category
Major Equipment (includes freight)
Materials (Bulks / Engineered)
Field Labor including sub-contractors
Field In directs / General Conditions
Detailed Design / H O support /
Procurement / PM (includes Owner
Engineering) Includes all necessary
design deliverables
Construction Management
Total

Percentage Value
22.9
21.5
24.3
11.7
13.9

Percentage Range
18 - 27
17 -26
19 - 29
9 - 13
10 - 18

5.7
100.0

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.
Major Equipment Category

Inquire / Negotiate & Purchase (INP) in

weeks and delivery to site:
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

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)

Note: The percentages shown above 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:

Such as 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 a accurate capital cost estimate in a timely manner that conforms to

the pre-established company estimating standards.
Have 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 electrical engineering issues i.e. area classification.
The same situation with mechanical engineering and instrumentation / controls
systems.
And last but not least have a general business acumen / an understanding of the
organizations business cycle / process- business economics, together with an
understanding of the accuracy of the capital cost estimate deliverables (its 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 a Industrial
project, or it is an Oil & Gas project, or it is a Petro-Chemical project, its 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 / 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 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 / electromechanical
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, silos 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 (PLCs), 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 to long to describe 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 (PLCs),
together with dedicated control systems such as TDC 3000 and Delta V to name but
two), these systems are growing in there use and application, this trend will continue in
the next couple of decades, historical cost data collected in the 1970s and 1980s 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 alongs / chains & pullies, hardcore (hard standings) / temporary
staging areas, aligning and leveling 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) Crusher (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)
6

Hammer Mills (B) / Heaters (C) / Heat Exchangers (C)

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 its final
location and set and align internals, does not include piping or E&I, excludes heavy lift
crane.) 2005 Cost basis:
Labor / Other
Foreman
Millwright
Millwright
Millwright
Millwright
Millwright
Equipment Operator
Chains / cables
Miscellaneous l
shims / rags /
grease
Flatbed trailer
Tractor
Total

Hours
6
6
6
6
6
6
6
1 day
LS

Unit Cost
$55
$52
$52
$52
$52
$52
$48
$200
$350

Total
330
312
312
312
312
312
288
200
350

6
6

$25
$35

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 percentage would increase.
All major equipment items need foundations, structural steel, platforms, piping, valves,
insulation, painting, electrical services, etc, 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 were 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 breakdown 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 break down 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.
2.

Summary and overall project capital cost breakdown refer to Table A 3 1

Historical refinery / process related project cost breakdowns ditto

3.
4.
5.
6.
7.
8.
9.
10.

Historical home office (EPC engineering firm) man-hour breakdown

Bulk Material cost breakdown
Construction man-hour and craft breakdowns
Major Equipment Costs
Construction in-directs breakdown and percentage refer to A 3 1
Engineering benchmarking standards
Various Conceptual construction installation units
Various Conceptual construction material unit costs

This above mentioned data can offer guidance in reviewing / auditing scopes of work,
execution plans, home office staffing or field man-power levels, reviewing claims and
potential cost over-under runs. Representative cost and man-hour breakdowns can be
useful in reviewing current estimates or considering and reflecting on historical norms.
The listing indicated is an overall breakdown of project costs, the data is based on
historical data for process type projects built in North America described earlier and
shown on table A.3.1, on a sub-contractor basis, during the period 1995-2001. When
only a total installed cost (T.I.C.) value is known, this breakdown can be valuable in
providing overall basic data points for a rapid evaluation of engineering, procurement
and construction efforts that were / or will be required. The cost breakdown covers the
following major categories.

Major Equipment
Materials (Bulks / Commodities)
Labor Costs
Detailed Engineering and Procurement Activities (EPC Data)
Indirect Cost Elements

The capital project summary indicated in Section A 3 Table (5) has an estimated overall
T.I.C. cost of $35.689 million. From Table (5). Outside Engineering / Design firm is
10.23% or $3,109,000. By a further analysis / hypothesis assume that the Outside
Engineering all-in cost (billing rate) is $69 / hour, therefore we can calculate the total
number of engineering man-hours is as follows. Consideration should be given to the
fact that specific cost items such as CAD machines, computers etc, are included in
$3,109,000 value or are included in the $69 / hour billing rate.

Number of EPC H.O. man-hours = $3,109,000 = 45,058

$69
If we knew that the engineering effort was needed to be complete in eight months, we
could determine the peak manpower level, or the approximate number of EPC home
office staff required to get the work effort completed.

Number of engineering man-hours = 45,058 = 32.6 EPC H.O. staff (average)

8 Months x 173 m hs / month

This number would need to peak at possibly 50 65 at the mid-point of the detailed
design effort.

The number of detailed design hours per M.E. items = 45,058 = 523 man-hours
86 M.E. items

From the table A.3. (5), direct field labor costs are $8,142,000 the direct field cost hourly
rate is $36 / hr.

Number of field man-hours = $8,142,000 = 226,166 man hours

$36 / hour

If we knew that the construction effort was planned too be completed in fourteen months,
we could determine the average manpower level, or the approximate number of
construction workers required too complete the work effort.

Number of field workers m h s =

226,166 = 93* field workers
14 months x 173 m h s / month

The number of field man-hours per M.E. item = 226,166

= 2,630 man-hours
86 M.E. items

* This number could peak at 125 140 during the mid point of the construction effort;
this also excludes field indirect support, which could be another 20 35% more hours.
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 moths divided by 166 man-hours 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 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 construction industry):
State
Alabama
Alaska
Arizona (Phoenix / Tucson)
Arizona

Open Shop / Non-Union

1.00
1.10 1.15
1.00
1.00

10

Union
1.10 - 1.15
1.25 1.35
1.10 - 1.15
1.10

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
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

1.00
1.10

1.15
1.20 1.30

1.05
1.00 - 1.10
1.00
1.15
1.10
1.00 1.10

1.10 - 1.20
1.10 - 1.15
1.05 - 1.10
1.20 - 1.30
1.20
1.15 - 1.20

1.00
1.00 - 1.10
1.00
1.10 - 1.15
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

1.10
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

1.05
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 - 1.15
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
1.05
1.10 - 1.15
1.05 - 1.10
1.05
1.05

1.10 - 1.20
1.15
1.30 1.40
1.10 - 1.20
1.15
1.15

11

Ohio (Cleveland)
Ohio
Oklahoma
Oregon
Pennsylvania (Philadelphia
/ Pittsburgh)
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas (Dallas / Houston)
Texas (Gulf Coast) - Base
Case this includes Gulfport,
Baton Rouge, 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
Vermont
Virginia (Washington D.C.)
Virginia
Washington
West Virginia
Wisconsin
Wyoming

1.05 1.10
1.05
1.05
1.05
1.10 - 1.15

1.15 1.20
1.10 - 1.15
1.15
1.15
1.20 1.30

1.05 - 1.10
1.60 1.90
1.05
0.90 - 1.00
1.05
1.00 - 1.05
1.05 - 1.10
1.00

1.10 - 1.20
1.50 2.00
1.15
1.05 - 1.10
1.15
1.10 - 1.15
1.10 - 1.20
1.10 1.15 (typically all
work is completed on
open shop basis)

1.05
1.05
1.10 - 1.15
1.05
1.05
1.00 - 1.05
1.05
1.05

1.10 - 1.15
1.15
1.20 - 1.30
1.15
1.15
1.00 - 1.15
1.15
1.15

12

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.
Major Construction Activities
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 dia production weld (sch 160)
6 ditto
Average cost per pound / kg to fabricate and erect
piping system based on Average cost $12,500 -

$48 - $80*/ Hour

$37 - $64 / Hour
0.75
$58 - $95 / 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:
$57.0 per pound and $15.00 kg

$17,500 per ton, average $15,000 per ton

Structural steel erection hours

8 - 25 / ton

* In major cities such as New York, Chicago Philadelphia and Los Angeles etc this union
hourly rate ranges between $75 and $91:
Engineering / Home Office Costs / Data:
Function / General Data
Project Manager
Architect
Civil Engineer
Home office engineer
Estimator
Designer
Man-hours per item of major equipment
Man hours per PFD

Cost / Man-hour Units

$65 - $135 / hour
$65 $135 / hour
$65 - $115 / hour
$65 - $115 / hour
$65 - $115 / hour
$47 - $75 / hour
600 1200 (aver 700)
40 - 100

13

Man-hours per P. & I.D:

Man-hours per plot plan / G. A.
Man hours per ISO.
CAD machine bill out rate
Procurement / Contract / Project Control
Procurement / Contracts Engineer
Project Control Engineer
Man-hours per material inquiry / requisition
Man-hours per purchase order
Man-hours per contract
Inspection of M.E. item

250 -500
100 200
4/6
$21 - $50 / hour
$43 - $86 / hour
$43 - $91 / hour
4 - 12
30 - 50
60 100
4 8 / hours

For additional data specific to installation man-hour units refer to later chapters.
ESTIMATE ASSESSMENT SHEET / RATIO ANALYSIS
The following capital cost estimate review sheet 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.
Number
1
2
3
4
5
6
7
8
9

Ratios & Percentages

Site Works as a percentage of
M.E. (I.S.B.L)
Buildings / Structures as a
percentage of M.E. (I.S.B.L)
Piping material as percent M.E.
(I.S.B.L)
Labor as percent of T.I.C.
Piping labor as percent of pipe
material
Indirect cost as percent D.L.
Piping labor as percent D.L.
Typical M.E. Multiplier to T.I.C.

15
16

Instrument material as percent

M.E. (I.S.B.L.)
Electrical work as a percentage
of M.E. (I.S.B.L)
Electrical labor as a percentage
of M.E. (I.S.B.L)
Insulation work as a percentage
of M.E. (I.S.B.L)
Field Establishment as a
percentage of field in-directs
Small tools / consumables as
percent of D.L.
Scaffolding as percent of D.L.
Spare Parts

17

Spare parts as percent of D.L.

10
11
12
13
14

14

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
0.1 1.5%

18

Freight

3% to 5% of major equipment cost.

19

Operator Training

0.5% to 2.5% of major equipment

20

Operator Training

21

Royalties as a percentage of
M.E. (I.S.B.L)
Vendor assistance as percent of
D.L.
Home office engineering as
percent T.I.C.
Field supervision as percent D.L.
Construction equipment as
percent D.L.
Construction fee as percent D.L.
Construction fee as percent T.I.C.
CM cost as percentage of T.I.C.
Off sites, needs to be considered
as a separate issue.

2.5% to 5% of major equipment on

complex process facilities
0.25 3.5%

22
23
24
25
26
27
28
29

30
31
32
33
34

Overtime / shift work as a

percentage of D.L
Construction Management Fee
Fabricate pipe offsite
Erect piping (2 and above)
Average cost per ton to fabricate
and erect piping system

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 $12,500 - $17,500
per ton, average $15,000 per ton

(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.

15

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)
Front End Miscellaneous Costing Studies.
Licensor initial PFD / concept report.
Completion of PCA report / outside consultant.
Completion of Front End Engineering Report.
Compile AFE funding request (estimate); obtain full or partial
approval to proceed with project.
Mobilize to EPC / detail design office.
Mobilize to site.
Obtain permits (local and state).
Asbestos abatement / removal.
Lead paint removal.
Removal of contaminated / hazardous soil material.
Subsequent disposal of hazardous soil with necessary
documentation.
Shutdowns decommission / mothball obsolete facilities. (Remove
any working M.E. to other company facilities).
Removal of underground utilities / foundations / obstructions.
Tank / piping sludge disposal.
Tank / piping cleaning activities.
Shutdown and drain all process / utility piping systems.
Remove insulation, prepare for hot-taps and complete temporary
tie-ins.
Develop construction equipment requirements and associated
operating and maintenance costs.
Develop Division 1 / Preliminaries budget. (Note: some of the items
are listed below).
Install temporary roads and subsequent maintenance.
Remove any standing water / de-water any foundations and any
snow removal, together with protection of completed work.
Provide any temporary utilities (water, gas and electricity).
Establish concrete batching facility if required.
Provide and maintain site offices, trailer, and warehousing facilities.
Provide brass ally / construction parking lots / lay down storage
areas.
Provide construction management staff and trailer facilities.
Provide medical staff and trailer facilities.
Provide safety staff and trailer facilities.
Provide warehousing staff and trailer facilities.
16

Provide security and trailer facilities.

Provide testing staff and trailer facilities. (Soils, concrete, welding,
and NDT).
Provide adequate builders all risk / sub guard / project wrap-up
insurance.
Provide site office furniture and site computer network.
Provide site office supplies and consumables.
Provide commissioning / start-up materials / initial fill.
Provide necessary spares parts.
Provide I/C programming.
Provide vendor assistance services.
Obtain necessary O/M manuals and warrantees.
Obtain plant assistance for commissioning and start-up sequencing.
* Excludes Engineering / Detailed design and Procurement
DEMOLITION / REVAMP / UPGRADE WORK
Demolition / Revamp / Upgrade Factors and Main Points to consider:
1. Quality of work, low-end specifications, high or medium specifications.
2. Productivity, low, medium or high output.
3. Labor and construction equipment limitations due to small / confined work areas,
considerable amount of manual / handwork could be required.
4. Dust / debris and noise protection / temporary screens.
5. Material handling logistics / storage off-loading limitations.
6. Temporary bracing and support of future and present work areas.
7. Protection of existing buildings / facilities and services during demolition
activities.
8. Overtime, shift work and possible weekend work schedule.
9. Cutting and making good to current construction features / materials and
equipment.
10. Removal of hazardous materials, contaminated ground, PCBs,: lead paint and
asbestos materials, 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 videos were possible. Credit values / income from scrap / salvage of
demolished equipment / materials may appreciably lessen the demolition costs (on some

17

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, PCBs, 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 be required, what about safety measures (Scott air packs special
safety measures). Establish if it going to be a manual operation (sledge hammers
and pick axes) or can a headache ball / arrow breaker or can 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.

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

18

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 / PCBs, 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 remove how many will stay), can any of the systems be reused, what
about latest building codes, does 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, is 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.
19

$5.00 - $7.00 per SF for concrete / masonry buildings.

Walks and Driveways:
Removal and transportation of asphalt or concrete 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.
Concrete: To remove and load concrete foundations and walls 4 - 6 MH per CY
Slabs of Grade1.5 2.5 MH per CY.
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
2 and below
2 6
6 12

Man hour per LF

0.15 0.25
0.25 0.40
0.40 0.75

Electrical / Instrumentation:
To dismantle and remove electrical conduit, wiring, fixtures, equipment,
instrumentation, etc., estimate as new work and multiply by 0.40. To dismantle
and re-install multiply man-hours by 1.4
Trees and Shrubs (softwood): Remove trees / stumps and haul off surplus
aver 1-2.5 miles:
Diameter. Tree
0 to 9
9 to 12
12 to 18
18 to 24

Height
10 to 20
20 to 30
30 to 40
over 50

MH Each
4
8
10
16

Stump Removal by Hand

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. Tree
0 to 9
9 to 12

Height
10 to 20
20 to 30

MH Each
6
10

20

Stump Removal / Blasting

1 MH
1.5 MH

12 to 18
18 to 24

30 to 40
over 50

12
24

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:
indicates values as follows.
Light Work
Medium Work
Heavy Work

$78.75 to $414.75 per Acre

$341.25 to $682.50 per Acre
$ 551.25 to $1,548.75 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

EXCAVATING BY HAND UNITS, ETC. (excludes planking & strutting)

Loading trucks by hand

Trenches to 50 deep
Foundations to 100 deep (1 lift)
Foundations to 150 deep (2 lifts)
Foundations to 200 deep (3 lifts)
Backfill by hand, no tamping 95% compaction
Spread loose material by hand
Hand tamping

Man Hours per 10 Cubic Yards

Heavy Soil Solid Clay
Normal
&
or
Soil
Clay
Solid Earth
13.5
22.5
25.5
16.5
24.5
27.8
21.0
23.5
26.9
42.0
46.5
51.7
64.0
68.5
71.5
5.0
6.5
7.2
3.0
3.5
3.9
9.0
11.0
12.3

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
OFF LOADING MATERIALS BY HAND:
Sand from trucks
Gravel / stone from trucks
Crushed rock / crusher run from trucks
Cement (sacked) from trucks
Bricks per 1,000

0.65 Man-hours per CY

0.70 Man-hours per CY
0.85 Man-hours per CY
0.10 Man-hours per sack
2.50 Man-hours per 1,000

MACHINE & HAND BACKFILL:

Typical for Sand, Loose Soil and Stone / Gravel
Dozer 200 HP / Backhoe 100 HP

21

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 these units. Hand place labor units contain, placing by hand with
shovels, loose earth in hand-throwing distance of stockpiles. The transfer of prestockpiled 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
Placed by machine

17.5 man hours / 10 CY

11.5 man hours / 10 CY

LOADING EXCAVATED MATERIAL FROM STOCKPILE:

Front end Loader / Backhoe 100 HP
WORK HOURS PER (10) CY

ITEM

OPERATOR

2.0 CY bucket
1.5 CY bucket
1.0 CY bucket
0.5 CY bucket
0.25 CY bucket

0.10
0.15
0.20
0.35
0.40

MAN-HOURS
BANKSMAN /
HELPER
0.10
0.15
0.20
0.35
0.40

TOTAL
0.20
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.

22

SITE GRADING:
WORK HOURS PER (10) CY
ITEM

MAN-HOURS
OPERATOR

9 -11 CY Capacity (Cat 613 c)

Distance 500 feet (load & discharge into stockpile)
Distance 1,000 feet ditto
Distance 1,500 feet ditto
Distance 2,500 feet ditto
Distance 5,000 feet ditto

0.08
0.10
0.14
0.20
0.30

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 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

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 above units by 0.85.
COMPACT / TAMP/ FINE GRADE IMPORTED FILL
WORK HOURS PER 10 SY
ITEM
Motor grader 911
Sheeps foot / spiker
Vibrating roller (self propelled)
Fine Grade by hand
Fine Grade by machine

UNIT
10 SY
10 SY
10 SY
10 SY
10 SY

TOTAL
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)

23

By hand
With vibratory compactor

4.55 hours / 10 CY
1.15 hours / 10 CY

BACK HOE EXCAVATION

Work hours per 10 C.Y. (Cat 225 / 235)
SOIL TYPE
Light

Medium

Heavy

Rock
(Rippable)
Load with
F.E. Loader

ITEM

TOTAL
0.33
0.39
0.57
0.66
0.54
0.78
1.11
1.22
0.93
1.02
1.14
1.20
1.38
1.47
1.98
2.10
0.52

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
1.00 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

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 above units by 0.90.
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 fees required. (2005 Cost Basis :)
Equipment / Labor
Hydraulic backhoe 1 CY
bucket
Operator
Truck 10 CY / 15 Ton
Driver

Hours & Rate

8 hours x $91.50

$ Cost
732

8 hours x $42.50
8 hours x $62.50
8 hours x $40.50
S/T
+ O / H & Profit
27.5%
Total
Cost per CY / 400 CY

340
500
324
1,896
521

24

2,417
6.04

Excludes; banksman, supervision and maintenance

Excavation Equipment Production Rates (daily output per 8 hour day)
Type of excavation
equipment / bucket
size
Front end loader
(tracked)
Ditto with wheels
Bulldozer

0.25
CY

Bob Cat
Hydraulic Backhoe
Motorized Scraper D8
(cut & fill 35 cycles per
hour)
Dragline 75 ton crane
with 70 100 boom (with
clamshell or open
bucket)

100

0.50
CY

1 CY

1.50
CY

2 CY

2.5
CY

3 CY

7.5
CY

10
CY

500

600

750

1,000

1,250

1,500

N/A

N/A

600
500

750
1,00
0

1,000
1,500

1,500
2,500

1,750
3,000

2,000
3,500

N/A
N/A

N/A
N/A

250
N/A

400
N/A

750
N/A

1,200
N/A

1,500
N/A

N/A
N/A

N/A
2,500

N/A
3,500

75

100

150

250

400

500

N/A

N/A

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. (2005 Cost Basis :)

Front End loader 2 CY (tracked) $725 / Day (w/o operator)

Ditto with wheels 2 CY $705 / Day (w/o operator)
Bulldozer $775 / Day 2 CY (w/o operator)
Bob Cat $265 / Day 0.25 CY (w/o operator)
Hydraulic Backhoe $827 / Day (w/o operator)
Motorized Scraper D8 10 CY $1,468 / Day (w/o operator)
Dragline 75 ton crane with 70 100 boom $1,365 / Day (w/o operator)

Excludes: banksman, supervision and maintenance, mobilization and de-mobilization:

Hardcore / Stone Road Sub-Base:
4 thick (100 mm)
6 ditto (150 mm)
8 ditto (200 mm)

$5.70 / SY
$6.80 / SY
$7.25 / SY

$6.83 / M2
$8.14 / M2
$8.66 / M2

Paving Bitumen Based Topping

1 thick (25 mm)

$8.19 / SY

$9.82 / M2
25

2 ditto (50 mm)

3 ditto (75 mm)

$13.55 / SY
$19.58 / SY

$16.22 / M2
$23.42 / M2

Approximate weights of materials per CY

Material
Cement
Concrete (1:2:4)
Earth (Bank)
Sand
Stone
Gravel
Cement Mortar

Natural / Loose
Condition
Pounds
2,565
2,737
2,425
2,820
2,745
3,136
N/A

Compacted to 90
95%
Pounds
3,030
3,615
2,825
3,140
3,135
N/A
3,696 (mixed)

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).
CY per Hour:
90 Swing Output per Hour
Drag line Bucket
Capacity
In C.Y.
Light Soil or Loam
Material
Sand Stone or Gravel

1.0

1.25

1.50

1.75

2.0

2.50

3.0

3.5

4.0

5.0

140

185

205

245

260

310

340

360

400

450

135

160

195

215

235

295

320

360

420

510

In place Earth

120

150

185

200

220

245

285

325

355

420

Hard Clay

100

120

150

170

175

210

250

295

325

390

Rock drilled & blasted

(Fragmented)

60

85

95

120

125

155

195

210

225

310

Underpinning / Excavation of existing Foundations: (Including timbering)

12.50 17.50 man hours / CY
Hand pack concrete to u/s of existing Foundations:
3.50 6.50 man hours / CY
Steel Sheet Piling:
Interlocking (left in place)

$19.16 / SF

Ditto removed for future use $14.18 / SF

26

Concrete Piles:
Pile Type
Pre-cast Concrete
Piles up to 50 in depth
12 diameter
Ditto 18 diameter
Drilled Concrete piles
up to 50 in depth
12diameter
Ditto 18 diameter

$ per LF
(Low)
22.58

$ per LF
(High)
27.09

20.16
31.40
28.67

Unit

$ per M
(High)
88.83

Unit

LF

$ per M
(Low)
74.24

24.20
37.70

LF
LF

66.15
102.90

79.38
123.64

M
M

32.87

LF

94.03

107.78

Add 10% - 20% for drilling through rock.

General data:
All types of excavated material enlarge (swell) up 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 imported borrow)
Use contours (if possible) and interpolate were 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 were borrow will come from
Clearing / Grubbing General Excavation
General Areas
Roads /
Pavement
Tree removal / Stumps
Grubbed and brush areas

Acre / Sq Yards
Acre / Sq Yards
Acre / Sq Yards
Acre / Each
Acre / Sq Yards

Sub Structure / De-watering:

Segregate quantities of common or rock above and below water table.
Indicate de-watering requirements; i.e., Sykes Pumping system needed.
Construction / Basic Materials
Material types (sand, clay, loam, rock etc.)
Scrapers (D8s and 663 / dozers / pans) and trucks, etc:

27

Units
Cu Yd
Cu Yd

Specific backhoe / front end loader and trucks etc:

Ripping requirements; heavy, medium, light (blasting)
Hand excavation work / Number of lifts
Foundation preparation, if required / P & S:

Cu Yd
Cu Yd
Cu Yd
Sq Yd

Mass, above 15 ft depth - shovel or loader and trucks

Intermediate, 5 ft to 15 ft depth - shovel or loader
and trucks
Specific or bottom 5 ft - backhoe, clamshell, etc.
Hand excavation work / Number of lifts
Foundation cleanup (special considerations such as
Hazardous material)
Consider blasted size requirements

Cu Yd

Rock

Transportation / Hauls
Total distance to tip, round trip
On site disposal distance
Hazardous Materials distance
Tipping Fees

Cu Yd
Cu Yd
Cu Yd
Cu Yd / Ton
Cu Yd
Lin Ft / Mile
Lin Ft / Mile
Lin Ft / Mile
Cu Yd / Ton

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.
U.G. CONCRETE SEWER PIPE (excludes excavation and backfill)
Diameter

M.H.s per 100 LF

4
6
8
10
12
18
24

24.00
37.50
40.00
44.00
47.00
54.00
75.00

Placing In-site Concrete

Continuous Footings
Isolated foundations
Elevated slab
Housekeeping / Equipt pads

By Crane

M / Hs per Cubic Yard

By Chute*
By Pump

0.60
0.70
0.45
0.75

0.30
0.33
0.63*
0.70*

* Wheel barrow / concrete buggy

Materials for One Cubic Yard of Concrete 1:2:4 mix

28

0.55
0.60
0.35
0.60

Portland Cement 520 pounds

Cement 5.30 Cubic feet
Sand 10.72 Cubic Feet
Stone 21.12 Cubic Feet
37.14 Cubic Feet of material in 1 Cubic Yard of Concrete.

Pounds / Kg / SF of rebar in CY / M3:

Pounds /
Kg / SF of
rebar &
formwork
in one CY /
M3 of
concrete
Footings
(spread)
Isolated
Foundation
s
Pipe Rack
foundations
SOG
Suspended
Floors
Walls 12
Columns &
Beams

Low

Average
pounds /
CY of
concrete

High

Kg / M3
of
concrete

Low

Average
SF of
formwork
per CY of
concrete

High

30

55

100

33

10

25

35

35

65

140

38

10

25

35

40

70

150

40

10

25

35

40
55

75
115

130
200

40
65

7
20

15
40

20
70

40
70

75
175

150
250

40
105

25
30

50
65

85
100

Finishes (Concrete)

Man Hour per 100 Sq. Ft. Area

Steel Trowel Float

Steel Trowel plus Grinding
Repair Defects. Fill Form Holes
Ditto - plus Bag finish
Ditto - plus Floating
Power float
Brush / Broom Finish
Iron hard
Curing (Sprayed or Rolled Compound)
Visqueen / Poly Sheet
Joint Filler
Grout, Sand (3) - Cement
Embeco grout
Grouting anchor bolt

1.5
3.5
0.7
1.5
0.5
1.0
1.2
0.8
0.5
1.0
3.5 / 5.0
6.5 MH s per cu. yd.
8.0 MH s per cu. yd.
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,

29

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. (2009 Cost Basis)
Description
Concrete Foundations
Footings 3 x 1
Mat foundation
Pile caps 3 x 3 x 3
Slab on Grade (excludes u/s
stone)
4 thick
6 ditto
8 ditto
Walls
6 thick
9 thick
12 thick
Elevated slab / Waffle slab /
Flat work
4 thick
6 thick
8 thick
Column / Beams
18 x 18
24 x 24
Stairs
Stairs and landing
Plinths / Housekeeping
Pads (less than 5 CY / M3)

$ Cost per CY

$ Cost per M3

173 205
173 231
173 252

226 268
226 305
226 331

152 205
152 205
152 205

200 268
200 - 268
200 268

278 599
278 599
278 599

362 782
362 782
362 782

289 389
289 389
289 389

378 509
378 509
378 509

504 714
504 714

662 935
662 935

452 872

593 1,139

525 1,019

688 1,097

Adjustment
For excavation and backfill add 5% 15% to above values.
For quantities less than 10 CY / M3 add 25% - 50% to the above values.
For 2,500-PSI - 17.5 MPA application multiply above values by 0.95
For 3,000-PSI - 20 MPA application multiply above values by 0.97
For 4,500-PSI - 30 MPA application multiply above values by 1.06
For slab on grade stone add 10% - 15% to above values.
For applications in major US cities such as New York, Chicago, Philadelphia, Los
Angeles etc add 10% - 22% to above values.
Occupancy Load Pounds / Square Foot:
Type of Facility

Occupancy Load
Pounds / Square
Foot

30

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)

Wall
Thickness
6
9
12
15
18
21
24

Pounds of
Rebar per
SF
1.00 2.00
1.25 2.50
1.75 3.50
2.00 4.50
2.40 4.80
2.75 6.00
3.00 7.00

Average

Kg per M2

Average

1.50
1.87
2.62
3.25
3.60
4.38
5.00

4.90 9.78
6.11 12.23
8.55 17.12
9.78 22.00
11.74 23.48
13.45 29.35
14.67 34.24

7.34
9.17
12.84
15.90
17.61
21.40
24.45

Hours to install 50 CY of reinforced concrete

Work Item
Form
Strip / Repair / Reuse
Rebar
Install concrete
HD Bolts
Grout
Total

Quantities
350 SF
350 SF
500 #
50 CY
1 set
1 item
50 CY

31

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
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 Pascals)
PSI

MPA
(Approx)

2,500
3,000
3,500
4,000
4,500
5,000

17.5
20
25
30
30
35

Formwork and Rebar Quantities:

Type of
Concrete
Stanchions
Pile Caps
Beams
Columns

SF per CY of
Concrete
20 30 SF
30 40 SF
70 100 SF
70 100 SF

Pounds
of Rebar
per CY
60 - 70
70 - 100
120 - 170
120 - 170

M2 per M3 of
Concrete
98 - 147
147 196
342 - 490
342 - 490

Kg of Rebar
per M3 of
concrete
36 - 42
42 - 60
73 - 103
73 - 103

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 $8.40 - $13.13 / CY

Per M3 $11.18 - $17.46 / M3

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 2009
Application

Fabricate &
erect &
dismantle
1st use

Erect,
clean &
repair 2
uses

Erect,
clean &
repair 3
uses

32

Erect,
clean &
repair 4
uses

Erect,
clean &
repair 5
uses

Erect,
clean &
repair 10
uses

Isolated
foundations

Walls 10 high

Elevated
columns &
beams
Elevated floor
slabs

Materials
$2.57

Materials
$0.50

Materials
$0.50

Materials
$0.50

Materials
$0.50

Materials
$0.50

Labor 1.25
hours
Materials
$2.81

1.00

0.90

0.80

0.70

0.70

Materials
$0.56

Materials
$0.56

Materials
$0.56

Materials
$0.56

Materials
$0.56

Labor 1.50
hours
Materials
$5.01

1.25

1.15

1.05

0.95

0.95

Materials
$1.00

Materials
$1.00

Materials
$1.00

Materials
$1.00

Materials
$1.00

Labor 2.25
hours
Materials
$3.57

2.00

1.90

1.80

1.70

1.70

Materials
$0.71

Materials
$0.71

Materials
$0.71

Materials
$0.71

Materials
$0.71

Labor 1.00
hours

0.75

0.65

0.55

0.45

0.45

Rule of thumb for formwork is 10 20 SF of formwork per one cubic yard of installed
reinforced concrete.
Formwork Erect, Strip and Repair:
Application
Formwork to u/s of
suspended floors
Formwork to walls

Man-Hours
SF
0.12 - 0.18

ManHours M2
1.30 - 1.95

0.10 - 0.15

1.08 - 1.65

Pre-Cast Concrete Floor Slabs (Elevated) 3,000 PSI Concrete:

Solid or Hollow 3,500 PSI concrete strapped and grouted.
Floor
Thickness
4
6
8
10

Material Cost
per SF
$5.15
$6.51
$6.93
$8.24

Installation
Man-hours per
SF
0.15
0.17
0.20
0.23

Material Cost
per M2
$55.34
$70.04
$74.55
$89.04

Installation
Man-hours per
M2
1.60
1.83
2.15
2.48

Excludes crane costs:

For areas larger than 25,000 SF / 2,323 M2 multiply installation hours by 0.85

33

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

3
4
5
6

3.75
4.50
5.75
6.50

Installation
Man-hours per
SF
0.20
0.20
0.25
0.25

Material Cost
per M2
40.35
48.40
61.90
69.95

Installation
Man-hours per
M2
2.15
2.15
2.70
2.70

Excludes crane costs:

For areas larger than 25,000 SF / 2,323 M2 multiply installation hours by 0.85

Slab on Grade (SOG) Concrete Floors: includes supply and installation complete with
concrete, formwork and rebar, includes 4 thick sub base and polythene.
Thickness of Floor Slab
4 - 200 mm
6 - 250 mm
9 - 225 mm

$ SF
6.67
8.09
9.40

$ M2
71.35
86.99
101.12

Concrete Walls: includes supply and installation complete with concrete, formwork and
rebar.
Thickness of Wall
4 - 200 mm
6 - 250 mm
9 - 225 mm

$ SF
20.48
21.95
23.42

S M2
220.50
236.25
252.00

Pipe Bridge Budget Pricing Includes Foundations and Structural Steel (2009
Cost Basis)
Type

Materials per LF

Light Duty
Heavy duty

$66.68
$102.38

Man-hours to
install per LF
1.77
2.33

Materials per
M
$218.72
$335.79

Man-hours to
install per M
5.80
7.64

Reinforced Concrete Data:

Using $473 per CY $620 per M3 for installed concrete as a benchmark for concrete: The
approximate break out of this cost would be as follows:
Category
Concrete

Cost per CY
$95

Cost per M3
$124

34

Percentage
20%

Rebar
Formwork
Total

$158
$221
$474

$207
$289
$620

33%
47% (20% M 80% L)
100%

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
Use the above ratios to determine approximate values for rebar and formwork.
Gunite / Sprayed on Concrete
Thickness
1
1.5
2.5
3.0

Material cost
per SF
$3.31
$3.94
$6.77
$7.98

Installation
man-hours per
SF
0.10
0.12
0.17
0.22

Material cost
per M2
$35.60
$42.37
$72.87
$85.87

Installation
man-hours per
M2
1.08
1.29
1.83
2.37

For applications using mesh reinforcement add $0.50 $1.25 to material cost and add
10% to installation man-hours:
Injection grout / Concrete: (1:3:6) mix: (includes batching plant and pressure
pumps, excludes drilling costs)

$578 - $683 / CY
$767 - $908 / M3

Concrete General Estimating Data

Bush hammer concrete
Acid wash concrete
Pattern concrete slabs
Colorize concrete slab
Bag / Dress concrete walls

$0.58 - $1.21 / SF
$0.21 - $0.35 / SF
$0.47 - $0.79 / SF
$0.53 - $0.95 / SF
$0.26 - $0.68 / SF

$6.24 - $13.02 / M2
$2.26 - $3.77 / M2
$5.06 - $8.50 / M2
$5.70 - $10.22 / M2
$2.80 - $7.32 / M2

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

35

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.

36

Percentage Breakout of Structural Steel

Based on 500 Ton - 3 story Building

Material Cost
29%

Installation
20%

Priming paint
8%

Shop Draw ings

5%

Fabrication
34%

Align & level

2%

Delivery to site
2%

MISCELLANEOUS STRUCTURAL STEEL ITEMS: (Labor & Material Costs, excludes

crane and scaffolding costs):
Description
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 (RSJs and wide
flange beams)
Metal studs / framing
Miscellaneous lintels and angles /
channels
Corrugated metal decking, galvanized 2
rib 18 g
Ditto 20 g

Cost per Ton / Pound /

SF
$1,961 - $2,650 ($0.99 $1.33 per pound)

Cost per Kg / M2

$2,2374 - $3,021 ($1.19 $1.52 per pound)

$2,226 - $2,862 ($1.11 $1.43 per pound)
$3,021 - $3,445 ($1.52 $1.73 per pound
$2,650 - $3,180 ($1.33 $1.59 per pound
$1.75 - $2.07 / SF

$2.37 - $3.02

$18.82 - $22.26

$1.96 - $2.28 / SF

$10.49 - $24.54

37

$1.96 - $2.39

$2.23 - $2.86
$3.02 - $3.45
$2.65 - $3.18

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

$41.87 / LF

$136.10

$69.43 / LF
$23.85 / LF

$225.67
$77.54

$159 - $186 per tread

$477 - $795 each
$11.13 / Each

AVERAGE MH UNITS FOR STRUCTURAL STEEL ERECTION

Structure Type
Pipe Racks
Equipment Structures
Platforms, Walkways, Ladders
Other Misc. Ironwork

Avg. MH/Ton
18-25
30-40
45-70
40-80

Adjust Units for Job Conditions, Including Height Factors and size of project.
Average Weights for Misc. Iron
Structure Type
1 x 3/16 Bar Type Grating - Galv
1 1/4 x 3/16 Bar Type Grating
Galv
Ladders - W Cage
Ladders - No Cage
Stairways 2 L - Handrail W Toe Plate
1 50 Pipe Handrail
Stair Treads Grating1.25 x 3/16
(9 wide x 3-0)
Ditto 1.25 x 3/16 Floor Grating

Average Weight
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 Man-hours
per SF
per M2
1.5" ribbed depth 18g galvanized
0.010
0.108
1.5" ribbed depth 20g galvanized
0.010
0.108
1.5" ribbed depth 22g galvanized
0.010
0.108
3" ribbed depth 18g galvanized
0.013
0.140
3" ribbed depth 20g galvanized
0.013
0.140
3" ribbed depth 22g galvanized
0.013
0.140

38

Ref
#
1

Type of Material

Handrails: @ # horizontal
1.25 diameter CS welded to
vertical 1.50 diameter post
at 6 centers:
Ditto

Ladders w/o cage CS

Ditto with cage

Floor grating / checker plate/

diamond plate

Fabricate
& Install
Fabricate
Install

M.Hs per LF
0.60 M.Hs per LF
0.25 M.Hs per LF

Fabricate
Install
Fabricate
Install
Fabricate
Install
Fabricate
Install

0.60 M.Hs per LF

0.25 M.Hs per LF
1.15 M.Hs per LF
0.25 M.Hs per LF
2.15 M.Hs per LF
0.25 M.Hs per LF
0.25 M.Hs per SF
5 15 SF per hour

Excludes painting:
Steel plate / ductwork
$3,000 - $3,500 per ton supply and erect
Erection of steel refractory duct work
Excluding brick lining 40 - 60 man-hours per ton
Aluminum Cable Tray (12 wide with all fittings and supports)
Width
18
24

Man-Hours
0.60
0.75

$ Material Cost
$43
$50.50

OOM pricing for a Field Erected Storage Tanks 250,000 - 500,000 gallons
Carbon Steel $1.80 - $2.30 per gallon
SS $2.20 - $2.70 per gallon
OOM pricing for installed piping system 2009 Pricing Basis:
Includes, Pipe material, fabrication and erection labor, fittings, valves, hangars, testing
and all required activities:
Pipe
Diameter
1.5

C. S.
$ Cost per
LF
$40 - $60

$60 - $80

$85 - $105

C. S
$ Cost
per M
$130 $200
$200 $260
$280 $340

SS 304
$ Cost per
LF
$65 - $95
$95 - $130
$135 $170
39

SS 304
$ Cost
per M
$210 $315
$315 $420
$445 $550

SS 316
$ Cost per
LF
$70 - $100
$100 $140
$145 $180

SS 316
$ Cost
per M
$225 $335
$335 $445
$475 $585

$110 $130
$130 $150

$360 $430
$430 $490

$175 $210
$210 $240

$575 $680
$680 $785

$190 $220
$220 $260

$615 $725
$725 $835

OOM Process Pipe Man-Hours

ISBL 4 - 8" 200 300 man-hours per ton
OSBL 75 - 125 man-hours per ton
OOM Miscellaneous Items
Sandblasting 0.010 hours / SF
Scaffolding 0.115 0.020 hours / CF

Insulated Metal Siding: supply and install, excludes structural framing / support:
Thickness
3.5 85 mm thick corrugated
metal siding with 1 thick
insulation

SF
$8.63

M2
$92.93

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
$1.84 $2.10

Cost per kg
$4.15 - $4.36

MASONRY UNIT COSTS / DATA

FACE BRICK
Brick Type
STANDARD SIZE
JUMBO SIZE
ECONOMY SIZE
UTILITY SIZE
8 SQUARE
12 SQUARE
UTILITY THRU-WALL

Brick Size in Inches

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
11-5/8 X 3-5/8 X 11-5/8
3-5/8 X 7-5/8 X 11-5/8

Number of Bricks per

SF.
6.75
5.6
4.5
3.0
2.25
1.00
3.00

CONCRETE MASONRY FACING UNITS

Block Type

Block Size in Inches

40

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

1.125
1.125
3.375
1.125
1.125

CONCRETE BLOCK (hollow) Back-up

Block Size in Inches
4 X 8 X 16 (SM - 1 side)
6 X 8 X 16 (SM - 1 side)
8 X 8 X 16 (SM - 1 side)
10 X 8 X 16 (SM - 1 side)
12 X 8 X 16 (SM - 1 side)

Number of Blocks
per SF.
1.125
1.125
1.125
1.125
1.125

Facing bricks cost $263 - $473 per 1,000

Common bricks cost $189 - $299 per 1,000
8 thick concrete block cost $0.84 - $1.37 each
10 C.F. of mortar required for 1,000 bricks / mortar costs approximate, $4.85 / 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.

Concrete Masonry M / H installation units

Hollow load bearing / Solid load bearing:
Thickness
4 thick
6 ditto
8 ditto
10 ditto
12 ditto

Hollow M / H s per SF
0.055
0.060
0.070
0.075
0.085

Solid M / H s per SF
0.060
0.065
0.075
0.080
0.090

Brick Mortar: (1:3) 1 part cement & 3 parts sand:

10 CF of mortar required for 1,000 installed bricks.

Mortar costs $4.35 per CF
Mortar cost for 1,000 installed bricks = 10 CF x $4.85 = $48.50
Approximately 5 bricks per SF of wall surface
5 bricks x $48.50 = $0.24 / SF
1,000

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.

41

Cost of mortar per SF = 15 CF x $4.85 = $0.72

100 SF

Masonry Installation
Labor only: (excludes scaffolding)

Man-Hours Man-Hours
Per SF

Per M2

Solid Foundation wall 6" thick

0.060

0.646

Solid Foundation wall 8" thick

0.065

0.699

Solid Foundation wall 10" thick

0.070

0.753

Solid Foundation wall 12" thick

0.075

0.807

Solid Split ribbed face 6" thick

0.070

0.753

Solid Split ribbed face 8" thick

0.075

0.807

Solid Split ribbed face 10" thick

0.080

0.861

Solid Split ribbed face 12" thick

0.085

0.915

Wood Framing Man Hours per 100 Board Foot: (Douglas Fir):
Framing Type
Floor / ceiling
Joists
Bearing Plates &
Sills
Wall Framing /
Studs
(Hip) Short
Framing Pieces
Roof Ridge
Trusses (Stick
Built - not preengineered)
Roof Rafters

2 x 4
3.7 - 4.2

2 x 6
2.8 - 3.4

2 x 8
1.9 - 2.2

2 x 10
1.6 - 1.9

2 x 12
1.6 - 1.9

3.5 4.1

4.5 5.1

3.1 - 3.5

3.1 - 3.5

3.1 - 3.5

1.9 - 2.4

1.8 - 2.2

1.6 - 2.2

1.5 - 2.0

1.4 - 1.8

3.9 - 4.4

3.7 - 4.2

3.5 - 3.9

3.2 - 3.4

2.9 - 3.2

N/A
5.0 - 6.2

5.0 - 4.2
4.3 - 4.8

5.0 - 4.1
3.7 - 4.1

4.4 - 3.7
2.9 - 3.3

4.4 - 3.7
2.7 - 3.0

8.0 - 7.2

7.3 - 5.8

6.0 - 4.8

5.5 - 4.2

5.0 - 3.3

Plywood 0.5 exterior grade 16 Man Hours per 1,000 Sq. Ft.
QUARRY TILE FLOORING L & M (Dairy / Food Facilities) 2009 Cost basis:
4 x 4 x 3/8 floor thin set base
6 x 6 x 3/8 floor thin set base
4 x 4 x 3/8 floor mud set base
4 x 4 x 3/8 wall thin set base
4 x 4 x 3/8 base with cove top thin set base
FLOOR DRAINS (flat round top C.S. & S.S.)
4 diameter
6 diameter

2.50 MH
4.00 MH

42

$8.00 / SF
$7.25 / SF
$8.80 / SF
$8.45/ SF
$8.15 / LF

EXTERIOR FINISH
Wood Siding Cedar
Fiberglass Siding
Galv. Correg, Iron
Vinyl Siding
Correg, Aluminum

7.2 MH per 100 Sq. Ft.

8.0 MH per 100 Sq. Ft.
3.5 MH per 100 Sq. Ft.
4.2 MH per 100 Sq. Ft.
3.3 MH per 100 Sq. Ft,

ROOFING
Built Up (3 layers)
$1.58 to $2.42 per layer of roof per Sq. Ft.
EPDM $0.89 to $1.63 per Sq Ft.
Asphalt Shingles
2.0 MH to 2.4 MH per 100 Sq. Ft. depending
On type of roof.
INSTALLED DUCTWOK PRICE / SUBCONTRACT BASIS (2009 Cost Basis)
Based on cost per pound includes all support / brackets etc.
Galv rectangular ductwork - commercial gauge (22-26)
Galv ditto ductwork - Rehab & Restoration
Galv ductwork - heavy gauge (10-14)(welded)
Aluminum ductwork
Stainless steel ductwork
Fiberglass ductwork - rigid
Insulation acoustical lining (internal)
Air Balancing
Plenum insulation rigid 2 thick

$5.34 - $6.99 / lb
$8.31 - $10.73 / lb
$9.79 - $15.18 / lb
$10.45 - $16.28 / lb
$14.85 - $20.74 / lb
$4.95 / SF
$2.09 - 2.92 / SF
$440 - $743 / AHU
$4.90 - $5.78 / SF

Estimating Rules of Thumb (2009 Basis)

Construction Category
Engineered Stone/Fill
Ditto
Structural Steel
Ditto
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

Price per Unit

$25 - $35 CY
$33 - $46 M3
$2,500 - $4,000 Ton
$2.50 - $4.00 kg
$30 - $950 CY
$460 - $1,245 M3
$80 - $160 LF
$262 - $525 M
Multiply equipment
purchase price by 2 5 to
arrive at total installed cost.
$1,750 - $2,750 per ton

43

Remarks
Columns / Beams
Foundations and Flatwork
All in budget price (includes
pipe, fittings, hangars,
valves and erection)
Includes Engineering,
Procurement and
Construction activities

1
2
3
4
5
6
7
8

Material
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

Weight (Pounds per SF)

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)

2009 Basis
Type of Facility
$ Per SF
$ Per M2
Hospital
2.30 -2.80
24.75 30.15
Manufacturing Facility /
2.25 2.75
24.20 29.60
Factory
R&D Center Laboratory
Warehouse

1
2
3
4
5
6
7
8

2.85 3.35
0.85 1.20

Material
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

30.66 36.00
9.15 - 12.90

Weight (Pounds per SF)

0.75 1.25
1.50 2.25
100 - 125
165 - 190
16 20
5.50
12
10 - 12

PAINTING COSTS
Mid 2009 cost basis
Material Cost
Exterior (Alkyd/oil based) 5 gallon
Primer $29.82
Flat $28.04
Gloss $23.52
Masonry Exterior $25.52
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

44

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 hours / cost range from 5% to 12% of the F.O.B. / ex works purchase
price of the particular piece of major equipment item.

Approximate Major Equipment Installation / Erection / Setting Man Hours

Includes aligning and leveling (excludes crane and crane operator):

45

A.C. Units (10 Ton 50 Ton Units)

Air Conditioning Units
80

70

60

Man Hours

50

40

30

20

10

0
0

10

20

30

40

Tons of Refrigeration

Agitators (Top Entry)

1 - 10 hp
10 - 50 hp
50 - 100 hp

Ea
Ea
Ea

16/18
56/64
95/120

Ea
Ea
Ea

188/224
456/628
590/740

Air Dryer
2,500 CFM
5,000 CFM
10,000 CFM

Coalesce type Separator (Oil Gas)

46

50

60

Co al e sc e T y p e S e p er a to r (O i l-G as )
90

80

70

Man Hours

60

50

40

30

20

10

0
0

10 0

20 0

300

40 0

GM P

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
50 - 100 hp
100 - 250 hp
250 - 500 hp

Ea
Ea
Ea
Ea

Crusher (Jaw)

47

38
86
246/294
444/526

5 00

60 0

Crusher (Jaw)

450

400

350

Man Hours

300

250

200

150

100

50

0
0

20

40

60

80

100

120

HP

Dryer Drum (Single)

Dryer Drum (Single)
160

140

120

Man Hours

100

80

60

40

20

0
0

10

15
HP

48

20

25

30

Dryer Drum (Double)

Dryer Drum (Double)
250

200

Man Hours

150

100

50

0
0

10

15

20

25

30

400

500

600

HP

Expansion Tank (ASME)

Expansion Tank (ASME)
30

25

Man Hours

20

15

10

0
0

100

200

300
Gallons

49

Packaged Hydronic H & C

Unit
Packaged Hydronic H & C Unit
60

50

Man Hours

40

30

20

10

0
0

50

100

150

200

Tons

Field erected storage tanks C.S.

10,000 gal
25,000 gal
50,000 gal
100,000 gal
250,000 gal
500,000 gal

(238 barrels)
(595 barrels)
(1,190 barrels) Ea
(2,380 barrels) Ea
(5,950 barrels) Ea
(11,900 barrels)

Ea
Ea

Ea

70/90
120/180
250/400
540/620
700/850
900/1,250

Heat Exchangers (shell & tube)

Up to 50 SF
50 - 100 SF
100 - 500 SF
500 -1,000 SF

Ea
Ea
Ea
Ea

16
40
40/80
80/100

Ea
Ea
Ea

88
164
420

Horizontal Batch Centrifuge

10 SF
50 SF
100 SF

50

250

300

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, grouting, brackets, supports, piping, cable, conduit and
electrical hook-up:

CUBIC FEET /
CUBIC YARD
VOLUME (H.P.) / # OF PIECES
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
(2)

M.H. per HP

96
120
180
240
280
300
350
450

38.4
24
24
24
18.6
15
14
12.8

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:

C.F.M.

500
1,000
2,500
5,000
10,000
25,000
50,000
75,000
100,000
250,000

(3)

Man-hours

HP

0.5
1
1.5
3
5
12.5
25
35
50
75

Weight in
Pounds
(# Of Major
Pieces)
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)

FLUID TYPE:
51

Man-hours

2.5
4
8
12
16
32
60
84
108
160

M.H. per
HP
5
4
5.33
4
3.2
2.56
2.4
2.4
2.16
2.13

Includes installation of motor and drives, controls. Excludes crane rental,

foundations, grouting, brackets, supports, piping, cable, conduit and
electrical hook-up:
GPM
10
25
50
100
150
(4)

H.P
1
2.5
5
7.5
15

M.H.s
6.5
8
12
22
32

MH. Per gallon

0.65
0.32
0.24
0.22
0.20

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:
Compressor
H.P.

(5)

# Of Pieces
3/5
3/5
3/5
3/5
5/7

Approximate
Weight Pounds
(# of Pieces)

Man-Hours

M.H. per H.P.

1,000

65,000 / 7/14

720

0.72

2,500

95,000 / 7/14

920

0.56

4,000

125,000 / 7/14

1,250

0.37

5,000

250,000 / 7/14

1,500

0.30

OIL / GAS FIRED HEATERS INDIRECT - FLOOR 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 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:
CFM

Number
Of Pieces

Weight
Pounds

ManHours

M.H. per
pound

2,500

6/12

600

21

0.04

5,000

6/12

1,000

32

0.03

52

(6)

10,000

10/20

1,500

42

0.03

25,000

10/20

3,700

72

0.02

50,000

10/20

4,500

81

0.02

100,000

10/20

6,300

114

0.02

HEATERS EXCHANGERS Shell and Tube: Converter:

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, grouting, brackets, supports, piping, cable, conduit and
electrical hook-up:
Diameter
(Inches)

Weight
Pounds /
# Of Items

ManHours

220 / 5

4.5

400 / 5

600 / 5

10

900 / 5

12

1,200 / 5

14

1,400 / 7

10/14

16

1,750 / 7

10/14

20

2,400 / 7

16/18

24

3,000 / 7

20/22

30

5,500 / 7

24/28

36

7,500 / 7

30/37

Mixer / Extruder

53

Mixer / Extruder
600

500

400

300

200

100

0
0

10

20

30

40

50

60

HP

Fuel Storage Tank Fiberglass

2,500 Gallon
5,000 Gallon
10,000 Gallon

$2,380
$3,752
$9,874

4/6
6
16

Pressure Leaf Filter

Vertical
P r e s s u r e L e a f F ilt e r V e r t ic a l
14 0

12 0

Man Hours

10 0

8 0

6 0

4 0

2 0

0
0

1 00

20 0

3 00

40 0

S q u a re F o o t

50 SF
100 SF
500 SF

Ea
Ea
Ea

54

14
27
124

5 00

60 0

Process vessels (Vertical with skirt)

Process vessels (Vertical with skirt)
200
180
160
140

Man Hours

120
100
80
60
40
20
0
0

1000

2000

3000

4000

Gallons

Pumps & motors

1-10 hp
10 - 25 hp
25 - 50 hp
50 -100 hp
100 150 hp

Ea
Ea
Ea
Ea
Ea

22
40
58
84
96/108

Ea
Ea
Ea
Ea
Ea

42
80
88/96
122/136
158/172

Reactors (multi wall)

500 gal
750 gal
1,000 gal
2,500 gal
5,000 gal

Towers / Columns (excludes tray installation)

12 Dia x 20 high
24 Dia x 30 high
48 Dia x 40 high
60 Dia x 60 high
72 Dia x 60 high

Ea
Ea
Ea
Ea
Ea

55

38/42
72/84
116/124
160/172
184/192

5000

6000

Sewage Ejectors (Simplex 1,800 RPM)

Sewag e Ejecto rs (Sim plex - 1,800 RPM)
80

70

60

Man Hours

50

40

30

20

10

0
0

10

12

14

16

12

14

16

GPM

Sewage Ejectors (Duplex 1,800 RPM)

Sew age Ejectors (Duplex - 1,800 RPM)
90

80

70

60

50

40

30

20

10

0
0

8
GP M

56

10

Sub Station
Sub Station
60

50

40

30

20

10

0
0

100

200

300

400

500

600

K VA

Vessels Vertical
Vessels Vertical
9

Man Hours per Ton

0
1 - 10

10 - 20

20 - 40
Weight in Tons

57

40 - 60

Weight in Tons

M.H.s / per Ton

1 10
10 20
20 40
40 60

8.40
5.10
4.10
3.70

Vessels Horizontal
Weight in Tons

M.H.s / per Ton

1 10
10 20
20 40
40 60

8.10
4.90
3.90
3.40

LIGHTING FIXTURES CEILING WAREHOUSE TYPE APLLICATIONS: (excludes

cable, conduit and terminations) 2009 Cost Basis.
Mercury Vapor
100 watt
250 watt

Material
$512
$607

M.H. s
2.25
2.45

Sodium H.P.
100 watt
250 watt

Material
$745
$814

M.H. s
2.75
2.95

Incandescent
100 watt
250 watt

$130
$162

Material

M.H. s
2.25
2.45

LIGHTING FIXTURES CEILING WAREHOUSE TYPE APLLICATIONS

Explosion Proof (excludes cable, conduit and terminations) 2009 Cost Basis:
Mercury Vapor
100 watt
250 watt

Material
$713
$891

M.H. s
2.75
3.15

Sodium H.P.
100 watt
250 watt

Material
$831
$1022

M.H. s
3.25
3.65

Incandescent
100 watt
250 watt

Material
$345
$392

M.H. s
3.35
3.50

58

Allow $17 LF for (L/M) for cable, conduit and terminations.

MEDICAL / LABORATORY PIPING (All in price L&M) 2009 Cost Basis:
0.50 S.S. 304 Sch 10 seamless
0.75 S.S. 304 Sch 10 seamless
1.00 S.S. 304 Sch 10 seamless

$17.56 / LF
$20.26 / LF
$25.61 / LF

0.50 S.S. 304 Sch 80 seamless

0.75 S.S. 304 Sch 80 seamless
1.00 S.S. 304 Sch 80 seamless

$22.86 / LF
$28.33 / LF
$34.93 / LF

0.50 S.S. 316 Sch 10 seamless

0.75 S.S. 316 Sch 10 seamless
1.00 S.S. 316 Sch 10 seamless

$19.56 / LF
$23.32 / LF
$30.20 / LF

0.50 S.S. 316 Sch 80 seamless

0.75 S.S. 316 Sch 80 seamless
1.00 S.S. 316 Sch 80 seamless

$27.39 / LF
$31.79 / LF
$40.10 / LF

Walk In Freezers (Pre-Assembled) 2009 Cost Basis.

10 x 10 x 10 high
15 x 15 x 10 high

Material
$8,402
$12,179

M.H.s
42
64

Lab Equipment (2009 Cost Basis):

Material

Man hours

Anaerobaric Chamber 12 CF

$5,924

Automatic Coagulation Bench top / timer unit

$4,406

Glassware Washer / Dryer

$5,946

10

Lab Centrifuge Unit 2.5 CF

$3,339

1.5

O.O.M. PRICING FOR VESSELS & TANKS C.S. & S.S. ASME 100 PSIG (2009
Pricing Basis):
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.
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

59

O. O. M. Costs per pound with typical brackets, supports and nozzles etc.
2009 Cost Basis.
Pounds
Weight

Cost /
Pound
C.S.
9.07
7.97
6.57
6.02
4.98
3.36
2.42
1.87

500
1,000
2,500
5,000
10,000
25,000
50,000
100,000

Cost /
Kg
C.S.
19.96
17.52
14.45
13.23
10.94
7.38
5.31
4.12

Cost /
Pound S.S.
304
13.55
12.42
10.31
9.27
7.78
5.48
3.59
2.86

Cost /
Kg S.S.
304.
29.79
27.33
22.68
20.39
17.13
12.05
7.90
6.27

Cost /
Pound S.S.
316
16.20
14.43
12.00
10.61
8.79
5.70
4.21
3.33

Cost / Kg
S.S. 316
35.64
31.74
26.40
23.34
19.32
12.55
9.27
7.32

Adjustments: To determine setting man hours multiply the above results by 6% -8% and
divide by $45 / 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
Electric Motor hours to install 240/440 v
H.P.
2.5
5
10
25
50

Man-Hours
3
5.5
8
16
24

DUCTWORK BUDGET PRICING: (2009 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

$12.05
$13.70
$17.90
$23.08
$26.69
$29.40
$34.24
$36.09
$37.15

60

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

$13.43
$13.85
$17.63
$22.51
$26.05
$29.70
$33.39
$37.66
$42.24
$47.01

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

$220.00
$313.50
$410.30
$715.00
$819.50
$974.60
$1034.00
$1262.80

UNDERGROUND FIBREGLASS DUCTWORK

SIZE

UNIT

COST

4
6
8
10
12
18

LF
LF
LF
LF
LF
LF

$31.21
$34.06
$38.67
$46.86
$52.16
$84.24

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).
LABOR MAN HOURS PULLING CABLE IN CONDUIT (excludes hookup / connections)

61

WORK ITEM
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

UNIT
1000 LF
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
87.50

LABOR MAN HOURS TO INSTALL COPPER BUSWAY IN STEEL CASE

WORK ITEM
225 amp
1000 amp
2500 amp

UNIT
1000 LF
1000 LF
1000 LF

M.H.s per unit

450.00
850.00
2750.00

Miscellaneous Electrical Items: (2009 Pricing Basis)

General Description
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
Ditto 400 amp
Ditto 600 amp
Ditto 100 amp NEMA 7 Explosion proof
Ditto 250 amp
Ditto 400 amp
Ditto 600 amp
2400 V - 4160 V MCC 600 amp Disconnect
switch
Ditto 1000 amp
Ditto 1200 amp
Circuit breaker 600 v 3 pole 100 amp
breaker NEMA 1 Enclosed Indoor
Ditto 200 amp
Ditto 500 amp
Ditto 1000 amp
Circuit breaker 600 v 3 pole 100 amp

Material
Cost
40,378
69,178
91,651
1,209
230

Labor manhours
44
84
142
26
3

541
1,131
2,310
262

6
8
12
6

376
777
1,426
277
416
844
1,616
801
1,016
1,929
3,929
6,108

8
10
12
8
10
14
16
10
14
18
24
10

6,970
7,737
217

14
17
2

460
1,932
2,048
285

4
6
12
3

62

breaker NEMA 12 Dust proof

Ditto 200 amp
Ditto 500 amp
Ditto 1000 amp
Circuit breaker 600 v 3 pole 100 amp
breaker NEMA 7 Explosion proof
Ditto 200 amp
Ditto 500 amp
Ditto 1000 amp
Panel Enclosure1x 2x 6 NEMA 1
Ditto 2 x 3 x 6
Ditto NEMA 12 2 x 2 x 6
Transformer 3 phase Dry - 4160 v 480 /
277 v 150 kVA
Ditto 500 kVA
Ditto 1,000 kVA
Ditto 480 v 208/120 v 150 kVA
Ditto 500 kVA
Bus Duct 225 amp Copper / LF
Ditto 400 amp
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

564
2,321
2,426
343

5
8
18
4

690
2,735
3211
59
173
227
7,516

6
12
22
2.2
4.2
3.5
30

18,081
34,516
3,078
8,100
135
190
245
317
392
96
149
180
234
279
Add 25% to
above
24

56
84
26
48
0.30
0.35
0.40
0.45
0.55
0.30
0.35
0.40
0.45
0.55
Add 25% to
above
0.75

56
67
9
14
19
25
14
20
26
30
Add 25% to
above values
1.57
2.15
3.03
13.56
45.91
257.51

0.95
0.55
0.33
0.40
0.50
0.55
0.33
0.40
0.50
0.55
Add 25% to
above values
0.175
0.375
0.425
0.50
2
3.50

INSTRUMENTATION

63

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.
BELT CONVEYOR Man Hours (includes steel structure, belts and drives,
excludes foundations
Width in inches
12
14
16
18
20
24
30

Man-hours per LF
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 D 1 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:
Diameter /
inches

2 screwed
joints
2 welded
4
6
8
10
12
14
16

Lift into place,

lineup and
tack weld
Man-hours per
LF
N/A
N/A
0.35
0.45
0.50
0.60
0.65
0.75
0.80

Production
weld Manhours Number

1.95
2.50
3.30
3.75
4.35
4.85
5.50
64

Column A
Combined
erect and weld
Man-hours per
LF
0.30
0.35
0.45
0.55
0.60
0.75
0.80
0.90
0.95

Column A
Combined
erect and weld
Man-hours per
M
0.98
1.15
1.48
1.80
1.97
2.46
2.62
2.95
3.12

18
20
24

0.85
0.90
1.00

6.00
6.75
7.75

1.00
1.05
1.15

3.28
3.44
3.77

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
Erection Man-hours for CS schedule 40, 80 and 120 piping
ISBL applications:
Diameter /
inches

2 screwed
joints
2 welded
4
6
8
10
12
14
16
18
20
24

Lift into place,

lineup and
tack weld
Man-hours per
LF
N/A
N/A
0.90
1.05
1.22
1.55
1.68
1.75
1.87
1.95
2.10
2.30

Production
weld Manhours Number

1.95
2.50
3.30
3.85
4.55
5.35
6.20
7.10
7.85
9.45

Column A
Combined
erect and weld
Man-hours per
LF
0.60

Column A
Combined
erect and weld
Man-hours per
M
1.97
3.12
3.44
4.17
5.44
5.74
6.04
6.46
7.05
7.54
8.36
9.02

0.95
1.05
1.27
1.66
1.75
1.84
1.97
2.15
2.30
2.55
2.75

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
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: (2009 Pricing Basis).
Diameter
2
4
6
8
10
12

OSBL $ / LF
19.40
34.66
55.65
75.58
104.83
137.38

OSBL $ / M
63.18
114.06
182.74
248.15
343.44
450.82

ISBL $ / LF
38.80
69.32
111.30
151.05
209.56
274.75

ISB / $ M
127.41
227.05
365.59
495.13
687.83
900.58

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:
65

Steam tracing copper pipe 0.50 diameter: to piping systems and major equipment.
Material Cost / LF
17.86

Labor Man-hours /
LF
0.55

Material Cost / M
58.62

Labor Man-hours /
M
1.80

Vitrified clay pipe installed in trenches (excludes excavation and backfill).

Diameter
4
6

Material Cost /
LF
4.66
7.26

Labor Manhours / LF
0.25
0.30

Material Cost /
M
15.32
23.80

Labor Manhours / M
0.82
0.98

Concrete U/G sewer installed in trenches (excludes excavation and backfill).

Diameter
4
6
8

Material Cost /
LF
6.31
8.69
10.49

Labor Manhours / LF
0.25
0.30
0.53

Material Cost /
M
20.67
28.51
34.45

Labor Manhours / M
0.82
0.98
1.74

Piping / Welding Stress Relieving (Electric Resistance Application)

Pipe wall Schedule
40,80 and 120
1.55 man-hours per
diameter inch

Minimum Hours
per task
4

0.50 wall and

above
2.15 man-hours per
diameter inch

Minimum Hours
per task
6

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
Diameter

0.5
0.75
1
1.5
2
4

Couplings / Elbows
unions / (90 & 45
Flanges (50% degree)
(30%)

291
305
187
119
91
82

173
110
111
70
55
49

Tees /
concentric
- eccentric
reducers
(10%)
57
52
37
25
18
16

66

Caps / blinds /
plugs &
miscellaneous /
weldolets /
sockolets /
nipples
(10%)
58
54
37
24
18
16

Number of
Fittings

579
521
372
238
182
163

Number o
Valves

372
247
81
35
26
14

74
64
59
57
33
25

6
8
10
12
18
24

44
38
35
35
21
16

16
13
12
10
7
5

15
13
12
11
6
5

149
128
118
113
67
51

12.5
6.75
6.25
5.75
4.35
3.70

Typical percentage breakdown of various fittings:

Fitting Category
Flanges / Couplings / Unions
Elbows 90 & 45 degree
Tees / Reducers / Caps / Plugs / Strainers / Minor
items

Percentage
35%
25%
40%

Typical percentage breakdown of various valves:

Fitting Category

Percentage
10%
10%
15%
15%
10%
15%
10%
15%

Ball
Butterfly
Check
Gate
Globe
Plug
Swing
Other

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 2009 Cost Basis
On 7 floors (2009 Cost basis)
SF
M2
Cost
Cost
2 Pipe FCU system
244,500 SF 22,723 M2 $25.38
$273
4 Pipe FCU system
244,500 SF 22,723 M2 $27.13
$292
Welding single pass to metal plate - Horizontal:
Weld width
1/16"
1/8"
3/16"
1/4"
5/16"

Man-hours per LF
0.25
0.35
0.55
0.70
0.85

67

Man-hours per M
0.82
1.148
1.804
2.296
2.788

Welding single pass to metal plate - Vertical:

Weld width
1/16"
1/8"
3/16"
1/4"
5/16"

Man-hours per LF
0.31
0.44
0.69
0.88
1.06

Man-hours per M
1.025
1.435
2.255
2.87
3.485

Electrical Fittings Man-Hours per 10 # items:

Diameter
0.50
0.75
1
1.50
2

Elbows / Unions
/ Tees
4.0
4.5
5.0
8.5
14.5

Ground Fault
Indicator (GFI)
8.0
11.0
14.0
18.0
22.0

Explosion proof
fittings
7.0
9.5
14.0
17.5
21.0

Fire Protection / Safety Items: (2009 Pricing Basis).

Item
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

Material Cost
$1,221

Man-hours
4.5

$974
$1,466
$2,294

3.75
4.25
26

Steam Tracing: (2009 Pricing Basis) includes one length of pipe / tube, shut off valve,
supports, strainers, traps, excludes insulation and any excavation.

Diameter

0.50
0.75
1

C S schedule
40 tube / pipe /
LF
Material
$17.66
$20.09
$23.47

C S schedule
40 tube / pipe /
LF
Man-Hours
0.75
0.84
1.10

Copper pipe /
tube / LF

Copper pipe /
tube LF

Material
$16.61
$19.13
$22.90

Man-Hours
0.64
0.72
0.93

Instrumentation Tubing: allow 35 of S.S. 304 tubing per device:

Level Transmitters / Pressure Transmitter / Flow Transmitter:
Material Cost: $756 Man-Hours: 18
Fire Alarm / Security Systems Man-Hours to Install
Labor only: (excludes device and materials)

68

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: (2006 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 (2009 Pricing basis):
Up to 1,000 Cubic Yards / 765 M3$58 - $69 / Cubic yard - $75 - $90 / M3
1,000 - 2,500 Cubic Yards / 1,530 M3 - $52 - $63 / Cubic yard - $67 - $83 / M3

Labor Man-hours to install various electrical items:

Switchgear Motor drives:
1 5 HP
10 25 HP
25 50 HP
50 100 HP

Man-hours
4.5
8
12
17.5

Man-hours to install 1,000 LF of Conduit:

Diameter
0.50 diameter
0.75 diameter
1 diameter
2 diameter

Man-hours

82 man-hours
104 man-hours
124 man-hours
144 man-hours

Man-hours to install 1,000 LF of Cable:

#
# 14
# 12
# 10
#8

Man-hours
10.2
10.8
12.3
14.5

Average for Field Run Piping Labor units 80% straight run - 20% direction/ elevation changes
Field installation only n/e 25' above grade or FFL:

69

Diameter in inches

0.05

0.05

PVC/CPVC

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

0.030

0.048

0.035

0.056

0.045

0.074

0.085

0.140

0.175

0.289

M-H's per LF
Average per LF

0.039

Average per M

0.046

0.128

Diameter in inches

0.05

C.S.A53
M-H's per LF

0.060

0.149

0.05

0.113

0.196
2

0.232

0.369
4

0.761
6

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

0.030

0.048

0.035

0.058

0.045

0.074

0.15

0.248

0.185

0.305

Average per LF

0.039

0.046

0.06

0.199

0.245

Average per M

0.128

0.152

0.196

0.652

0.804

Diameter in inches

0.05

0.05

Glass

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

M-H's per LF

N/A

N/A

N/A

N/A

0.015

0.025

0.225

0.349

0.3

0.465

Average per LF

N/A

N/A

N/A

N/A

0.05

0.05

0.02

Average per M

0.287

0.065

Diameter in inches

0.383

0.941
4

1.255
6

Stainless Steel

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

M-H's per LF

0.12

0.192

0.125

0.206

0.15

0.248

0.185

0.305

0.235

0.388

Average per LF

0.156

0.166

0.199

0.245

0.311

Average per M

0.512

0.543

0.652

0.804

1.021

Note: For projects experiencing good productivity use minimum values.

Excludes valve installation, includes hangar installation
Includes field welds / joints

ISBL Piping Installation / Erection Man-Hours

Excludes material and valves
Diameter

Sch 20 Sch 20

Sch 20

Sch 40 Sch 40

Sch 40

Sch 80

Sch 80

Sch 80

Sch 120 Sch 120 Sch 120

inches

7' Str't

3' Com

10' Aver

7' Str't

3' Com

10' Aver

7' Str't

3' Com

10' Aver

7' Str't

3' Com

10' Aver

0.07

0.26

0.13

0.07

0.26

0.13

0.08

0.28

0.14

0.08

0.33

0.16

0.11

0.65

0.27

0.11

0.65

0.27

0.12

0.75

0.31

0.14

0.77

0.33

0.20

1.15

0.49

0.20

1.15

0.49

0.24

1.40

0.59

0.26

1.55

0.65

0.26

1.65

0.68

0.26

1.65

0.68

0.32

2.00

0.82

0.33

2.15

0.88

10

0.30

2.30

0.90

0.35

2.40

0.97

0.40

3.15

1.23

0.48

3.65

1.43

12

0.36

2.80

1.09

0.43

3.25

1.28

0.54

4.00

1.58

0.62

4.75

1.86

14

0.42

3.50

1.34

0.47

3.85

1.48

0.57

5.20

1.96

0.68

5.85

2.23

16

0.45

4.25

1.59

0.56

4.95

1.88

0.68

6.50

2.43

0.80

7.35

2.77

18

0.52

4.85

1.82

0.66

6.00

2.26

0.83

7.90

2.95

0.95

9.30

3.46

20

0.60

5.85

2.18

0.77

7.10

2.67

0.85

9.45

3.43

1.07

10.90

4.02

24

0.72

7.40

2.72

0.95

9.60

3.55

1.15

12.25

4.48

1.35

13.75

5.07

30

1.00

11.70

4.21

1.20

13.65

4.94

1.50

16.50

6.00

1.75

18.50

6.78

Notes:
(1) Hours are for erection of spools / piping runs n/e 25 ' above grade or finished floor level
(2) Hours exclude shop or field fabrication, hangars, brackets, valves and any testing

70

(3) Hours include material handling from piping lay down area
(4) Cranes / welding machines are excluded
(5) Assumes 7' straight pipe and 3' of complex pipe (elbows / tee's / stub ends)
(6) Man-hours are for bolt-up's and field welds (not fabrication production welds)
For complete piping system including fabrication shop and items in (2) above add 35% to units
For OSBL piping multiply above units by 1.22
Note on large projects multiply above values by 0.85
Note on small / complex projects multiply above values by 1.20

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:
2009 Cost Basis.
Ref
#
1
2
3
4
5
6
7

System Type
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

Materials

Labor

Total Cost

$3.14
$1.35

$4.02
$2.37

$7.15
$3.72

$2.59

$4.76

$7.35

$1.57

$2.70

$4.27

$2.86

$4.79

$7.65

$38.50

$28.60

$67.10

$59.40

$45.10

$104.50

Includes: hangars, excludes holes through floors and walls, excludes painting
Miscellaneous Piping Units: 2009 Cost Basis.
Piping Values
Material Cost (CS - A53)
Fabrication
Erection

Ton
$3,300 - $4,400
20 40 hours per ton
100 200 hours per ton

Average Value
$3,850
30 hours per ton
150 hours per ton

OOM pricing for overland pipeline cost per M and LF:

Includes burial, wrapping /tapping, backfilling and testing: 2009 Cost Basis:
Diameter
6
8
10
12
14
16
18

$ Cost per M
102
131
167
207
228
260
312

$ Cost per LF
31.24
40.21
51.25
63.12
69.78
79.37
95.21

71

20
24

364
407

111.24
124.16

Excludes river and road crossings, extensive rock ripping, pumping stations, detailed design and
construction management:
Adjustments:

Detailed Design / Engineering add 2.5% - 5%

Construction Management add 1% 3%
Rock excavation $21 $42 / LF
Road crossing and reinstall $11 - $26 / LF
Road crossing thrust bore $11 - $63 / LF
River crossing $26 - $68 / 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, (its a demanding job !!! and 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 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 will be a demand for competent cost
estimators in the foreseeable future.

72

SECTION A - 5
SITE SELECTION CRITERIA / CAPITAL COST ESTIMATING DATA
SOURCES & ESTIMATING CHECKLIST
The compilation of an early front end / conceptual cost estimate (CAPEX) is the first part
of interrelated engineering activities in the projects life cycle; the end result is to convey
the estimated EPC cost of the proposed CAPEX project to the business owner or to
senior corporate management. This database focuses primarily on the compilation of
CAPEX estimates. The challenge the individual compiling an early phase CAPEX
estimate is to accurately capture the final costs of the following activities (of course there
may be additional activities that need to be estimated).

Major Equipment / Freight / Major Equipment setting

Demolition / Relocation of Production Equipment / Refurbishment activities

Excavation / Foundations / Concrete / Flatwork / Formwork and Rebar

Underground and above ground services and utilities

Structural Steel / Platforms

Buildings / Pipe work

Electrical / Instrumentation / BAS / BMS

Insulation / Refractory / Painting

Off sites (work outside the facilities footprint roads, rail spurs, piping, electrical
work, product loading areas etc,).

The procurement of major equipment and materials (Bulk and Engineered)

Construction Labor / Construction Equipment / Field In-Directs / Supervision

A/E EPC CM costs and activities

Profit and Overhead

Escalation and Contingency

The extent and magnitude of each of the above cost items (estimate line items) of
course is dependent in many ways on the complexity of the proposed facility, physical
size and location (remote or easily accessible) of the proposed CAPEX project, the cost
of labor and materials, together with the construction approach, the anticipated
productivity that the workforce will achieve and the date when the project is needed by
its eventual facility user. The CAPEX estimate basically determines the projects cost
budget. As the detailed design effort is completed and more project data is established,
additional CAPEX estimates will be compiled during the projects life cycle to ensure that
the project budget is maintained. This particular section deals primarily with Site
Selection, Estimating Data Sources and provides a detailed Estimating checklist.

Site Selection Criteria and Business Decisions:

The typical approach regarding site selection is that a steering committee made up of
senior management line staff from Finance, Sales, Operations, R&D and Engineering
will be established to determine a future path forward related to the new product or a
new facility, topics that will be covered are as follows,

Need for new product or expansion of current product identified.

Decisions on were to locate new facility, in North America, Europe or in some

other overseas location (possibly closer to future markets).

Size of facility, configuration, operating philosophy, future expansion

considerations and flexibility (could modules be sent to other operating
locations).

Existing facility / site can a current site accommodate new facility, can existing
buildings be reconfigured, is the current infrastructure capable of such a
significant expansion - Yes or No.

New Location closer to marketplace, new staffing needs (were will they come
from), new utilities (can we obtain them or will we have to produce them), new
facilities, training issues, quality of life issues, community dedication to new
facility and employment opportunities, government help or interference, can we
get grants / special treatment for locating a large number of employees into this
community Yes or No.

Land and Construction cost issues (see above). This will serve as the initial
Owner Budget (the more detail that can be provided with this estimate, the more
realistic the cost estimate will be). Many times the site selection study might
include 3 6 different locations, some in the US and some overseas.

Project timing needs (normal construction approach, fast track, or full speed
ahead damn the torpedoes we need to beat our competitors to the marketplace
money is not the main consideration, getting the product into stores ASAP is
the main driver).

Usually because the project is so complex and the cost of the future investment is so
significant to the business, the steering committee will bring in the expertise of key
individuals to process this Site Selection Criteria Report. The individuals / team that
would produce this work effort include: Corporate Engineering staff, A Project Manager,
Legal assistance, Purchasing, Realtors (possibly if new facility is required), R&D staff,
Operations / Facilities Management staff, Human Resource staff, Finance staff,
Estimating staff, perhaps the services of a third party A/E firm, this task force typically
would be charged with coming up with a recommendation in perhaps a period of 8 12
weeks. Research and topics that need to be evaluated include some or all of the issues
above and possibly more. When these decisions / questions have been addressed, the
Business leadership typically will approve a partial release on the project (say - $0.50

$ 2 Million) typically 1% to 2.5% of the project budget for the services of an Architectural
/ Engineering firm (A/E) - Engineering firm (EPC), for a front end concept study, this will
allow some conceptual engineering to take place, another important and key deliverable
will be an additional cost estimate, this will be compiled by an A/E - EPC firm when the
design concept is 5 10% complete (of the final construction / engineering deliverables),
so this second estimate is basically used to confirm the owners first initial cost
estimate, if the cost estimate / economics are still positive the project will be partially or
fully fund and allowed to proceed. Topics to be that should be considered in this frontend concept study include:

Scope of Work Statement of the total project.

Site-specific considerations.
Future sales of product established (partial funding need for some Front End
engineering / analysis required).
Best location for product manufacture location determined (i.e. close to raw
materials / close to future or current marketplace).
Codes and standards to be considered.
Environmental issues.
Operating philosophy (365 days a year and 24 hours a day, or 8:00 AM to 6:00
PM.
List of Major Manufacturing / Equipment needed in new facility.
Size / Footprint of Facility Plant.
Size of land / property requirements i.e. facility needs 10 acres to adequately
support new facility.
Room Sizes / Conceptual Architectural Finishes.
Warehouse / storage requirements.
Services / Utilities / Energy requirements (water, gas, waste water and
electricity).
Layout of main roads and possible rail requirements.
Headcount of future personnel / staffing requirements.
Layouts of Major Equipment and Utilities.
Facility Control Philosophy.
Cost Estimate +/-25%.
Project Schedule Recommendations / Considerations / Major Milestones to
complete facility.

The Site Selection Criteria and Business Decision (Front End Study) should perhaps
come up with 2 or 3 locations for senior management to consider and to make the final
decision on were to locate the new facility. After conclusion of this front-end report, if the
project is released for execution, the owner will enter into a contract(s) for detailed
design and construction management services, typically the construction manager or the
owners estimating resources will compile a number of estimates to confirm and control
the cost of the future facility, during the Engineering, Procurement and Construction
(EPC) effort. To produce an accurate front end / conceptual estimate some engineering
data will many times need to be produces this includes:
A scope of wok statement, a site development layout or plan indicating the utilization of
the property, any boring logs, an environmental assessment report, any preliminary
engineering reports, any Property Conditions Assessments (PCA), a major equipment
list) priced out were possible), any Process Flow Diagrams (PDFs), any modular / pre3

assembly assessments an d studies, facility / building sections and elevations, together

with any blocking diagrams showing location of current new facilities.
Capital cost estimating is at best an inexact activity, collecting and forecasting the
significant variables such as, weather, labor productivity, labor costs, material costs,
major equipment etc. is a difficult undertaking, hopefully some of the data contained in
this publication will be beneficial in future front-end estimating efforts.
Capital Cost Estimating to be accurate requires the skill set of analyzing and
forecasting the future costs as they relate to engineering and of course construction
activities.
The forecast of a capital projects final cost value involves looking down the road:
1. An analysis of past data and trends, think of recent events such as the oil crisis in
the 1970s and 2008 the 9 / 11 WTC terrorist attack in 2001, the second Gulf war,
the general worldwide economic downturn of the last two or three years and the
knock on effect these events have had on business and prices, also consider the
ramifications of crude oil costs that have recently exceeded $140 a barrel in mid
2008.
2. Calculating / fine tuning this data, together with current latest data and forecasting
future developments / risks into the near future (say 2 or 3 years or possibly longer),
consider oil price spikes, shortages of key materials and construction professionals.
3. calibrating, fine tuning the CAPEX estimate to allow for possible future trends to
compensate for any reasons likely to cause deviations from the current and future
knowledge of the marketplace, this includes future strikes, disruptions (think of what
is happening in certain West African countries were 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 changes costs. 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:
Compass International:
Laxton:
Marshall & Swift:
R.S. Means:
Walker Publications
Spons (UK publication):

Cost Engineering Data for possible use Process / Manufacturing Industry - Historical
Cost Indexs / 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 related magazines that can be helpful in
providing cost data / historical data for future CAPEX estimating efforts:

Engineering News Record (ENR)

Building (UK)

Professional Associations and Societies:

The following is a listing of USA and international cost related professional
organizations that can be helpful in providing cost data for future CAPEX estimating
efforts:

Australian Institute of Quantity Surveyors (AIQS):

The Association of Cost Engineers (ACostE) (UK):
American Society of Professional Estimators (ASPE):
Canadian Institute of Quantity Surveyors (CIQS):
Association for the Advancement of Cost Engineering International (AACEI) US
based:
The Dutch Association of Cost Engineers (NAP / DACE):
Royal Institution of Chartered Surveyors (RICS): UK based:
Society of American Value Engineers (SAVE):

Estimate Review Requirements / Assessment of the completed capital cost

estimate and calibrating to internal / external industry norms and management
approval:
A management review of a Capital Cost Estimate be it a Front End, Preliminary / AFE or
Lump Sum tender submission can be thought of as a series of questions and answers
posed to the estimating team responsible for the CAPEX estimate, the most important
question to be asked is of course, is the capital cost estimate complete and reflective of
the scope of work document or bid package the client or engineering firm has provided,
this is the question that needs to be tabled at the estimate review 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:

Estimate basis (inclusions / exclusions / drawings with latest revision and date /
specifications used in the estimating effort).
Bulk material quantities (how were these determined).
Quality of scope document.
Specific project risks.
Undeveloped engineering / scope.

Evaluation of the quality of the engineering deliverables upon which the capital cost
estimate is based.
Specifications to be used (industry standard or owner produced specs and
standards).
Bidding climate / competitors.
Labor productivity basis.
New technology.
Validity of bid 30 days or 90 days.
Current market conditions.
Political outlook.
Hourly rates for engineering / procurement and construction.
Engineering / estimating errors.
Engineering / estimating omissions.
Currency exchange rates.
General contingencies / resolution factors.
Project approach, Design build / lump sum / GMP / fast track.
Take off allowances.
Cost impact of T & Cs.
Overtime / shift work allowance.
Warranty costs.
Consequential damages.
Bond requirements.
Performance guarantee.
Design growth allowance / resolution allowance.
Profit margin.
Payment terms 45 days (finance costs).
Incentives from state / host country.
Import duties, taxes, VAT.
Penalty clause / liquidated damages.
Escalation / inflation rates should be considered and compiled in relation to long lead
equipment purchases, labor and material categories.
A detailed risk analysis should be conducted with the key project players to
determine what level of accuracy is required based on the goals of the project.
Plus many more project specific situations.

After these topics / issues have been discussed / modified /agreed to and if necessary
missing scope items have been discovered and the errors have been incorporated into
the capital cost estimate, the capital cost estimates correctness should be confirmed
by an independent audit / benchmark comparison, hopefully by (an in house expert) or
by a third party / outside expert, sometimes this situation is not feasible due to time
constraints and economic factors, this is typically done by owner companies when
reviewing a estimate from a EPC firm. The benchmarking review / audit / validation
effort is initiated by comparing major project cost elements for example, ratio of major
equipment to total installed (is it 4.0 times the major equipment or 5.0 times or 6.0
times), engineering costs per piece of major equipment, engineering man hours per
piece of major equipment, labor and bulk material estimated costs / percentages Vs
typical norms / ranges for the process industry, cost of concrete per CY / M3, man hours
per LF / M of process pipe etc. refer to section A 3 Estimate Review sheet for examples
of this benchmarking data.

After this activity if time is available: Key project elements such as;

How was the demolition cost determined?

Civil / site works, cost per acre.
Concrete, cost per CY / M3, pounds / kg of rebar included in the concrete unit cost,
SF of formwork used in concrete unit cost.
Structural steel, cost per ton
Major Equipment / Processing Chemical Manufacturing Production Equipment.
Cost per piece of M.E.
Piping, m / hs per LF /M or man hours per ton.
Instrumentation / controls, cost per bubble / device, cost per I/O.
Electrical work, cost per SF / M2 or per H.P.
Painting / insulation work.
How was the fire protection cost determined?
General buildings unit costs cost per SF / M2.
Off sites, how is this estimated, percentage method or based on complete take-off.
Execution approach is the project fast track, is overtime included / shift work.
How was the detailed design cost determined?
How was the construction management cost determined?
How were the escalation / contingency / management reserve costs determined?
How was the sales tax cost determined?
How was the plant hire / construction equipment cost determined?
How was the equipment maintenance cost determined?
How do the material to major equipment and the same with the construction labor
ratios look to similar projects?

This benchmarking data should be collected and calibrated for all future capital cost
reviews. These metrics must be judged against related / similar capital projects (refer to
section A - 3 Estimate Review sheet(s) for examples of this and the ratio / percentages
and general capital cost estimating standards 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 there 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 there 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
projects 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 Number

Work Item

01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16

General Requirements / General Conditions

Site Construction
Concrete
Masonry
Metals
Woods / Plastics
Thermal / Moisture Protection
Doors / Windows
Finishes
Specialties
Equipment
Furnishings
Special Construction
Conveying Systems
Mechanical
Electrical Systems

Below is a typical Industrial / Process facility - C.O.A. / W.B.S. that is described in more
detail in Section B 2.
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.

Major Equipment (M.E.).

Installation of M.E.
Freight.
Site work.
Civil / Concrete.
Structural Steel.
Facilities / Buildings.
Piping.
Electrical.
Instrumentation / Controls.
Insulation / Heat tracing.
Painting.
Roads and Concrete Paving.
Minor miscellaneous.

O.
P.
Q.
R.
S.
T.

Off-sites.
Construction Equipment / Fueling / Maintenance.
O / H and In-directs / Field In-directs.
Engineering / CM / Validation / Start-up.
Contingency.
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.):
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

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

80.xxxx
81.0000
82.0000
83.0000

Field Indirect Costs

Temporary Construction Facilities
Permits / Testing / Surveys
Field C.M. Staff
10

84.0000
84.5000
85.0000
86.0000
87.0000
88.0000

Equipment Rental
Equipment Maintenance
Small Tools
Consumables
Commissioning / Start up activities
Other

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

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

100.0000
101. -199.
200. 500
700. - 1000

Total Project Cost

Grants / Incentives
Other Project Related Items
Operating items

(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 cost.
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 certain costs / benchmarks are high compared to industry standards, there
may be a reason that our benchmark for installing pipe is 25% above industry
norms, fabricated at site using overtime to play catch-up.

11

This data should be categorized by the type of facility it is, i.e. Sulfur Recovery Unit,
Amine Plant and Research Laboratory expansion etc, location, union, non union or merit
shop, revamp or new work, this plus the collection of magazine articles, cost data books
and any technical papers. This data collection will greatly enhance the companys capital
estimating tools and could give the company a competitive advantage in the future. Prior
to the commencement of the capital cost estimate effort it is essential that a estimating
plan / responsibility matrix is established together with the crucial dates of when key
estimating related activities need to be completed. The cost estimator / engineer should
play an important roll / part in the site investigation effort, he or she should become
cognizant with the scope of work, potential make-up of the bid package(s), drawings,
specifications, general conditions (preliminaries) and bidding instructions and the
estimate / proposal due date. Prior to commencing the site investigation and in order that
they can appropriately communicate actual physical conditions to other individuals
involved with the capital cost estimating / proposal / engineering effort. Inestimable cost
related items in a new or revamp CAPEX E.P.C. project are not incorporated or
mentioned in the scope of work statement, specifications or indicated on the drawings,
(just think about were are the in-directs mentioned, were is the construction equipment
spelled out, were is the freight and vendor assistance documented many times its not)
these work items are however required in the execution of the project, it is the cost
estimators / cost engineers charge to ensure all these countless items are scoped out
evaluated / estimated and incorporated into the completed CAPEX estimate. As you
would expect all costs related scope of items must be painstaking considered /
estimated and included in the final CAPEX estimate.
To be consistent from one project to the next a detailed capital cost estimating checklist
is indispensable and crucial for this ongoing work effort. It is suggested that the cost
estimator / engineer utilize this list as a starting point and future tool in developing an all
encompassing capital cost estimate and as a means for extracting the intent / definition
that is indicated / depicted in the scope of work, drawings and specifications. The
subsequent checklist should provide a roadmap to the cost estimator / engineer in
assessing the cost values / budgets and allowances needed for capital engineering /
construction related project(s). Using this list and possibly taking it to the proposed
project site should prove beneficial, as mentioned before the cost engineer / estimator
should were possible visit the proposed site and endeavor to make a video tape
recording / or as a minimum take photographs to supplements notes and a condition
assessment of the project site and make detailed sketches of general areas when
photography is not allowed as is sometimes the case.
Items to research and check on at the site include

Buildings / Facilities / Areas to be demolished / revamped.

Extent of site, entrance points, these will be necessary to gain access to the site
and to perhaps allow wide pieces of major equipment or construction equipment
to get onto the site.
Hazardous materials removal i.e. asbestos or lead paint.
Existing buildings / facilities should be reviewed, especially if the scope calls for
modifying these existing facilities.
Review Off site facilities, O.S.B.L. work (piping, utilities, any other items that will
need to be estimated).
Existing fences, existing and proposed access roads.

12

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.
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 projects 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.
13

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

Specifications / Codes

Which specification standards will be used Owners specifications, CSI or EPC

Contractors.
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 & Cs or
EPC firms T & Cs.
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.

14

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, were will surplus excavation 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 were 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
areas / roads.

15

Will a temporary construction sewer / drainage 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 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.
Is 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 is 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 (TCNs) because the
local labor force lacks welding and electrical installation skills?
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.

16

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
diems / travel allowances etc to attract suitable workers.

Temporary Construction Facilities and Site Utilities

Are temporary water storage ponds requires

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 contractors
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?

Local Site Specific Conditions

Are any temporary / permanent road , 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

17

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.
Will there be a need for helicopters or fixed wing aircraft.

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 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 in on-site, how
will this be handled.
Will we need to establish concrete batching g plant (silos. 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, faxs, furniture and stationary?
Will construction staff / workforce be exposed to toxic harmful / chemicals / materials,
how will this be handled.
18

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, will
work force be subject to drug testing.
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.
2.
3.
4.
5.
6.
7.

Lack of home comforts / family pressures.

Lack of family contact.
Contact with friends occurs.
Personal difficulties / new situations.
Likely risks and challenges.
Cultural shock.
Work pressures (not unusual to work 60+ hours a week)

The pluses of an international work assignment include.

1.
2.
3.
4.
5.
6.

Increased job responsibility and experience.

Interesting job assignments.
International travel.
New challenges, friends and experiences.
Increased earnings.
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 visas, work permits and temporary residence.
3. The overseas countrys 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,
19

questions that should be raised include, (a) were should the detailed design be
completed, can it be completed locally, should we consider the least expensive
engineering location, i.e. Indian, Venezuela or China, (b) were 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 TCNs / local
personnel, and of local qualified skilled labor.
5. Bulk and engineered materials / major equipment were 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 Vs North America and Western Europe, i.e.
productivity could be anywhere from 2 to 3 times the US Gulf coast.
10. Imported or domestically produced major equipment, QA / QC issues, plus a whole
host of other issues, and last but not least the size of the contingency fund and how
it will be expended.
11. Local taxes, import duties, sales tax, VAT taxes, B & O taxes and local tariffs.
12. Local country incentives, tax holidays, low cost loans and local inducements /
incentives.
13. Government monitoring / special documentation.
14. Availability of U.S. Government investment insurance or other ones such as
COFACE the French equivalent.
15. Are there any anti-trust / trade restriction practices currently in effect.
It is prudent to be on reasonably familiar terms with the history, key events and general
background of the specific country and the proposed CAPEX project, this will hopefully
smooth the progress of better public relations and enhance understanding by the local
populace. By being on familiar terms with the countrys potential industries / business /
growth prospects will many times enhance current and future forecasting, estimating,
planning and future potential work. The strategic planning / risk tolerance and the
decision to invest / pursue work in a specific overseas country is typically made by
corporate management, any related venture / investment costs should were possible be
incorporated into future proposals / capital cost estimates to recover this overhead /
development set up cost. Perform a detailed market research of the targeted country
prior to establishing a presence. Developed countries (1st and 2nd world nations) usually
contain the basic infrastructure (roads, harbors, airports, telecommunications services
etc,) necessary to support a new capital project, while less developed countries (3rd
world) lack this basic infrastructure (lack of major roads, harbors, water, electricity etc),
an understanding of this situation and the logistics of working through these problems
coupled with the financial ramifications of this situation needs to be fully understood and
valued and incorporated into the business start up costs or proposal / future capital cost
estimating efforts.
While constructing or functioning in an overseas country, care must be taken to fully
conform (learn the rules and play the game) to local regulations / bureaucracy and
practices, business procedures and applicable country laws. Underdeveloped countries

20

(Third World Countries) of which there are many, i.e. some countries in Africa, Asia and
South America, many times these projects must in many ways be self-reliant /
autonomous. Many times it is very beneficial to conduct a pre-estimating / proposal
survey to establish if qualified suppliers, vendors and contractors are available locally
and what materials, major equipment must be imported into the country / or fabricated in
the country and what are the requirements to do this action. To have a successful
project the project team should have a reasonable knowledge of the local contracting
traditions / customs and business practices. Transferring staff overseas for an extensive
duration will necessitate some essential front-end training. Each and every staff member
is not appropriate for an overseas project assignment; each potential applicant should
be conscientiously evaluated / considered and equipped / trained for his or her foreign
country work assignment. A lot of countries have fashioned / formed economic links /
associations or have profitable / commerce amalgamations such as the European Union
(25 + countries), NAFTA, ASEAN, etc: Importation of goods, services, materials,
equipment and labor from inside the economic market area will be financially beneficial
than importing from the outside, due to no import duties / tariffs being levied. A number
of countries have a lot of public / religious holidays and additional officially authorized
vacation days, four to six weeks is not unusual in some European countries, i.e. Norway,
Sweden and Denmark, work ethic, productivity, sick time and a some what limited
appreciation / respect to practical completion / schedule compliance (it is difficult to
actually finish a project, it seems to drag on for ever) this should be considered and
understood when compiling the proposal / cost estimate. Serious consideration should
be given to importation of goods and services / customs clearance, paper work,
documentation and inspection QA /QC activities when compiling the cost estimate /
planning the schedule for engineering, procurement and construction, major equipment,
means of delivery equipment engineered and bulk materials delivery and ocean freight
logistics if required and insurance requirements, this freight item is many times
understated and is many times delayed, local customs officials are sticklers for original
/ certified forms, importation documents, importation certificates , bills of laden,
insurance coverage etc, getting this freight situation right will dramatically assist the
ongoing project execution effort.
Deciding on the appropriate employees for a foreign country project should be balanced
by the following important attributes:
Previous overseas experience and enthusiasm.
In depth job knowledge.
Age, an individual with at least 7 years hands on experience.
Rolled up sleeves attitude / ability to get things accomplished,
Being a team player, having the ability to get along with other team members.
Health status / ability to travel to various overseas locations
And current family situation.
The front-end investment cost to mobilize / de-mobilize an employee to a foreign location
is exceptionally high. In many cases it may be prudent to send third-country nationals
(TCNs), i.e. Indians, Egyptians, Turks etc, or to employ local citizens, these individuals
are much more cost effective. The challenges mentioned above will be significantly
enhanced in a country with an identical / similar ethnic mix, North American or W.
Europeans working in Europe or N. America, for example in the middle east this situation
may require, women to wear dresses / robes burka that cover all parts of the body in
public, women are many times not allowed be part of the workforce, divided / separated

21

living quarters, expatriates not being allowed to drive, separate dining facilities, and
different work schedules, such as working on Saturday and Sunday. Several religions
require their followers to dedicate more time to services than others. For instance, some
Moslems pray five to seven times a day some of these prayer times are in there normal
work day, in the middle east you will hear the call to prayer many times during the day
and you will observe a line of worshippers going to the mosque, many times a mosque
may need to be established at the construction site. Also in this part of the world it is
normal practice to take a two-three hour mid daybreak, and to work until 8:00 PM in the
evening. In addition, their holy day is observed on Friday. These situations must be
considered when compiling the proposal or capital cost estimate and when executing the
project. Time and again on an overseas project documentation / communications will be
in English, (English is considered the major business language) if this is the case there
is usually no extra cost to include in the capital cost estimate. Nonetheless, there are
situations were the project documentation / correspondence is conducted in two
languages, i.e. one side of a drawing will be in English the other side in the local
language, this adds costs to the project that must be established / estimated and
incorporated into the proposal / capital cost estimate. In some counties it will be required
to utilize the services of chauffeurs, again this cost will need to be established and
included in the capital cost estimate. Many countries have restrictions / limitations on
what can be imported into that country. This is done many times to protect the local
manufacturing community, an example of this is were the host country requires 80%
local produced materials and equipment, even though the local manufacturing
community can not produce this stipulated percentage.
The above items are not all encompassing, when compiling an international capital cost
estimate. The requisite to be able to speak / write in the local language should be based
on the persons assignment duration, title, and extent of interaction with the local
construction community and work force. Local language courses prior to and during the
project will assist the project by cultivating contact with local enterprises and the local
workforce, minimizing conflicts, optimizing cooperation and enhancement of project
productivity. The proposal / capital cost estimate for expatriate professional staff have
got to take account costs for acquiring and maintaining the following activities and
support services:
1. Entry visas and work permits and for the administration organization performing
this activity.
2. Medicals for staff and family members.
3. Insurance costs, medical, life, automobile.
4. Supervision / senior staff members.
5. Logistics, (trips back home) trips to other business locations.
6. Tax equalization U.S., and local country taxes.
7. Income tax exemption, use of big five accounting firms / support.
8. Business travel and emergencies trips back home.
9. Training expatriates and local staff.
10. Orientation costs / hand books / new hire meetings.
11. Regular / emergency medical treatment.
12. Home maintenance compensation.
13. Schooling for expatriate children.
14. Local transportation, company car, allowance or a low cost loan.
15. Furniture rental.
16. Completion bonus.
17. Local insurance costs.

22

18. Local driving license.

19. Transportation of household goods to country and back to home country.
20. Local housing / hotels / camps etc.
21. Company / personal cars / vans, transportation to the jobsite.
22. Vacations, work hours, public holidays etc.
23. Transfers back to home / country.
24. Fees / taxes related to leaving host country
On major EPC capital projects located in remote regions of the world temporary housing
/ or pre-fabricated housing units may be required or be part of the projects deliverables,
some times this temporary housing is used as permanent housing by the staff eventually
operating and managing the facility. Housing may be of varied types and cost,
depending on employees rank, vocation / profession, importance to the project, length
of assignment and family status. The above-mentioned temporary / permanent housing
must be completed prior to the start of the construction effort (many times a pioneer
camp will be established to house the initial say 100 staff), it is usually a critical path
item, many times pre-fabricated / modular housing units are utilized. Staffing
requirements and needs (both imported and local) should be carefully considered.
Some overseas counties impose penalties for releasing / firing employees prior to a preestablished completion date. A number of countries require a sizable completion bonus
for all local employees, this may be a week or a couple of months salary, again this has
to be considered when compiling the proposal / capital cost estimate. A tuition /
education contribution / allowance may be required 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 there 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 Vs 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

23

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 TCNs such as Indians, Turks and Egyptians.
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; dont 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.
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.

24

SECTION A - 6
VALUE ENGINEERING / CHANGE ORDERS /
CLAIMS AND CONTINGENCY ISSUES
The fashionable phrase(s) that are bandied around and that are getting some mileage in the
EPC engineering / construction industry in the last five years include:

Cost containment.
Cost cutting.
Out-sourcing.
Right sizing.
Downsizing.

Value Engineering is about reducing unnecessary costs and expenditures. Think outside the
box, if you were spending $20 million on a new building and it was coming out of your pocket
you would have lots of questions, why are we doing this and why are we doing that, the focus
of Value Engineering is to get the most bang for your buck, while still getting an attractive,
functional, quality built facility, that is safe for the people working and visiting the facility.
Value Engineering is defined as a structured attempt at optimizing designed facility
configurations / size, design intent and needs, materials of construction, facility operations /
operating equipment, with the goal of providing the best facility possible while paying the
most economical price for the completed facility, at the same time of designing and
constructing the facility that meets the organizations, safety, reliability, maintainability, quality
and possibly future expansion goals.
There is an enormous pressure from both owner and EPC firms to contain costs. All these
terms mentioned above have connotations with the term - Value Engineering, the question is
can Value Engineering help in the engineering and construction process, usually the answer
is yes, if the detailed design effort is less than say 75% complete, then Value Engineering
can be a major help in maintaining and possibly reducing a CAPEX budget. Value
Engineering has evolved in the last thirty years it has become a last resort many times
when projects are about to go over there budgets; Value Engineering is basically a front-end
activity that result in real project related cost savings. Value Engineering is best summed up
as a methodical approach to providing an optimized design and construction solution(s),
without forfeiting quality, reliability and of course safety - without incurring unnecessary
additional cost(s), and of course in meeting the needs and expectations of the end use, a
good example of this is purchasing a car you could buy a Porsche at $70,000 or you could
buy a Ford Taurus at $20,000, both car will get you to were you need to get to, both cars are
safe and reliable, so it basically come down to personal preference, buy a Ford and save
$50,000, its your call.
Top five reasons for poor value in the construction industry:
1. Why change now we are making a profit. (The answer to this is that the company
could perhaps make more money by utilizing this concept).
2. Communications, the construction industry is plagued by lack of or mixed
communications, youve heard the old saying nobody told us. We were not in the
loop.

3. We have never done this before, engineers / construction workers are reluctant to
embrace new ideas and concepts, we could put ourselves out of a job.
4. Planning, nobody thought through at the beginning of the project, we never
considered the concept.
5. The perceived idea that there is not enough design data available at the early stage
the project
The fact of the matter is that any early mini value engineering session / brain storming
session (perhaps half a day focusing on the big ticket items at the early stage of a CAPEX
project can result in savings of perhaps as much as 5% or more.
Time and again when a capital project is in trouble, i.e. going over its budget the call will be
for Value Engineering it seems like this is the panacea that will cure the problem and many
times it will. However many projects just pay lip service to Value Engineering, they say they
do it on an ongoing basis, however if the conducted a formal 2 or 3 day Value Engineering
with all the key players, they could realize big CAPEX cost savings. Value Engineering is
best summed up as a systematic approach to providing an optimized design solution(s),
without incurring unnecessary cost, in meeting the needs of the end user. Value Engineering
is a function oriented systematic team approach used to analyze and improve value in a
product, facility design, system or service. The term value engineering is being used more
frequently in the construction industry. Value Engineering (V.E.) is an organized, across the
board review / practical team activity that is focused at the initial concept / preliminary
design of a specific project / manufacturing approach and to optimize the elements within the
total design deliverables package. The purpose of V.E. is to develop a new approach, better
/ optimized design that will generate the optimum life-cycle operating costs / afford the
maximum value at the same time as focusing all safety, economical, quality, operability,
maintainability, resilience, and other operating goals / criteria created and established for the
project / specific process. V.E. is applicable to,

Manufacturing, Products, Parts and Services.

Chemical Plants / Process Facilities / Administration and Public type buildings and
support type facilities.
Energy Consumption.
The purchase and utilization of raw materials.
Systems and Operating Procedures.
Your own personal budget.
Plus a host of other topics, there is really no end to the cost saving ideas that V.E. can
generate.

Value Engineering (VE) is not engineering / design review or a cost reduction application.
Value Engineering is an innovative organized effort which analyses the needs of a CAPEX
project with the goal of reducing capital expenditures, expense related values, soft costs and
eventual operating costs. Value Engineering is additionally a most important instrument at
the outset of a project in developing / optimizing the concepts / designs to meet a specific
budget, V.E. is best when the design deliverables are in the 10% - 50% completion range.
The expression value engineering (V.E.) is many times allied with a project, manufacturing
process or product that is in its early development stage.
In contrast, the expression value analysis (V. A.) is interconnected to value evaluation /
review of a product that has been designed and is in its production / operating phase. Value

Engineering provides an incentive to the design team to search for cost effective design
choices, examples of this thought process include some of the following.

Materials of construction, plastic pipe Vs carbon steel Vs stainless steel.

Differing layout(s) - (tighter area utilization of the tank farm possibly saving piping /
electrical runs).
Rent or Own the facility.
Different location, operating costs in S.E. Asia are significantly less than operating
costs in North America or Western Europe.
Different manufacturing solutions.
Utilize a smaller facility footprint.
Reduce automation costs and I/O points were possible.
Locate facility closer to existing roads / parking areas.
Toll manufacturing (use third parties to produce key ingredients).
Optimize OPEX costs.
Gravity feed tanks housed in building, Vs dedicated tank farm.
Exterior walls use facing brick Vs Pre-cast tilt up wall system Vs metal siding.
Plus 100s of other technical solutions, some more of these ideas are discussed
below.

The term Value Engineering is related by way of the life-cycle costs of a building or other
related items, how long will the building remain in its production mode, what are the
operating costs, what are the costs associated with water, steam, electricity and
maintenance. Value Engineering is a positive money saving methodology / procedure that
needs to be presented to construction professionals (perhaps 20% - 40% of the construction
profession has been introduced to Value Engineering concepts) by an individual who has
significant hands on knowledge and education in this topic, a Certified Value Specialist (CVS)
would be a real plus or individuals that have conducted perhaps 10 plus V.E. studies. The
headlines of Value Engineering are described in the following brief write up, the basic
philosophy and steps that are outlined below are appropriate to all types of CAPEX
construction, attaining a basic appreciation of the concept / principals of V.E. can be
tremendously valuable to cost estimators / cost engineers, its another skill that they can offer
to there employers. Realizing and achieving optimum cost value / cost containment / profit
enhancement is a major goal(s) - objective of all estimators / cost engineers, it a good
feeling to bring real cost savings to a CAPEX project. The listings below are some types of
costs elements that are linked / allied to the construction process.
The V.E. group should be made up of personnel with different skill sets i.e. civil, mechanical,
electrical, project controls, purchasing, operations, safety etc. etc. to obtain an expansive
assortment of new concepts / ideas. The V.E. facilitator / leader should endeavor to set up a
date and location (2-3 days is the best duration for a V.E. study). The V.E. facilitator / leader
as well creates the agenda and the ground rules for the creativity / brainstorming discussions
and also presents the V.E. big picture i.e. (competitive environment issues, if this was your
money how would you spend it) including concepts and overall path forward, the V.E.
facilitator / leader should not be domineering or try to force pre-conceived concepts on the
team, he or she should be open to new ideas. Discussions should focus on topics such as
possible out-sourcing, value to the customer, cost cutting and cost synergies as they relate to
the overall concept of Value Engineering; discussions should focus on engineering,
procurement, construction, energy usage and future operating methods and costs.

The procedure to create a good number of brainstorming ideas is as follows (the more ideas
the better the V.E. savings in most cases).
1. The establishment of a well rounded / diverse team (10 20 individuals is about right
number for a two to four day V.E. / COM effort).
2. Identify the issues; describe project goals budget, major milestones and the current
project path forward (note this path forward can be modified to optimize the CAPEX
project).
3. No criticism / we all walk away from the session as professionals and friends.
4. Generate a receptive atmosphere, were here to help the CAPEX project and the project
team to be successful.
5. Encouragement of free wheeling off the wall thinking, what would be the benefits of
using a toller to make 60% of the products, this idea might cause so of the future
operators to be concerned, because it could eliminate jobs, but it needs to be raised.
6. Generation of a large quantity of brainstorming ideas is the secrete of success.
7. Use these ideas to create more value saving concepts; its like a snowball effect.
8. At the conclusion of the 2 3 day session, chart a path forward using these ideas to bring
value to the client. Set up a list of tasks, with dates, put names of individuals who are
responsible for coming up with a conclusion recommendation and a path forward.
The V.E. team participants should be at ease in articulating and considering any cost saving
idea that comes to mind, even if the concept / idea may perhaps happen to be outlandish to
the other participants, dont immediately dismiss it. The logic and rationale is that an
improbable - outlandish idea may be the light bulb that opens up Aladdins cave on future
cost savings. The phases of the V.E. process are as follows.
(A)

The current game plan sharing the design deliverables (drawings, SOW, cost
estimates, specifications, execution strategy) with the V.E. team, all project data /
information encompassing the project is pulled together and displayed on the walls of
the room in which the V.E. session is being conducted (an overhead projector is used
many times).

(B)

Functional Analysis. (Utilization of F.A.S.T. diagrams) The indispensable (basic) and

less important functions / operations to be provided by the facility are recognized and
discussed, is this required, could it be outsourced: Why are we doing this, do we need
to perform this function is it necessary. What is the payback - value of a specific
function: What are the functions concerning meeting the objectives / goals of the
project / facility or product.

(C)

Set the stage and conduct what if scenarios, come up with diverse brainstorming
ideas spend at least 2 4 hours or more on this important topic. Remember the
more ideas the better results will most probably be realized.

(D)

Pick the best ideas assume 100 ideas were generated, select the best 30 ideas and
move forward with them this is the investigative / analytical phase.

(E)

Path Forward / Proposal / Formal Management Report. In this segment, the groups
suggestions are fine tuned / condensed for submittal to management, usually a round
table discussion many times is also be given indicating what needs to be done next /
action item list, who does what and when. The 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 topic 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).
Ensuring correct / proven technology is chosen, why go with unproven technology.
Adapt and customize current company SOPs, 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 customers
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) were possible to minimize disruption and a
general loss in productivity.
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, Vs 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 were
possible.
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.
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 were possible.
Use natural daylight / windows / skylights in an effort to optimize electrical load.

Re-visit building insulation designs; consider best / optimum R value for walls and
roofing systems.
Re-route new or existing roads / rail spur to save construction costs and schedule,
locate new facility close to existing services if possible, to save on piping and
electrical runs.
Can we optimize future long term operating (OPEX) expenditures, by reducing
number of operators?
Discuss with local utility / Power Company on ways to optimize electrical usage to
save operating costs.
Use cost effective materials such as PVC, CPVC versus high cost alloys.
Design facility / building with sufficient employee parking space; be cognizant of local
transport needs / bus stops / bike racks / unloading areas / handicap buses / van
access and the general location of access roads to the new facility.
Utilize used equipment / refurbished equipment / use pre-purchased equipment
currently in owners inventory, purchase key spare parts with initial P.O.
Consider future facility production / campaign increases and decreases to meet
market demand and design to needed capacity / demand, can this plant be modified
and expanded to increase future production needs.
Conduct mini - V.E. sessions during pre-construction reviews / input from construction
engineers during the detailed design effort to optimize the EPC effort.
Plus many more cost saving ideas.

Cost Optimization Methods (COM) and value enhancement approaches: A number of leading
process -, chemical, manufacturing, oil and gas, pharmaceutical organizations have put into
practice the application of a suite of Cost Optimization Methods (COM) and value
enhancement approaches to optimize their CAPEX capital project executions programs, this
activity relates to front end planning, engineering, procurement, construction and eventual
facility operations. This is basically an upgrade to the Value Engineering concept were the
total scope of a CAPEX project is re-evaluated to see if additional costs can be squeezed
out of the current scope of work. Cost Optimization Methods (COM): A front end project
practice targeted at optimizing hard and soft Engineering, Procurement and Construction
project related costs. (COM) practices are intended to enhance the value / worth of a
manufacturing / production facility by reducing critical and non-critical scope of work items, by
improving reliability and simplifying the manufacturing / production process. Topics that are
reviewed and evaluated include in this methodology are: (1) Front End Economic / Business
drivers, (2) Early and detailed Engineering / Design activities, (3) Procurement methods and
approach to be used in completing the CAPEX project, (4) Construction techniques, (5)
Project related soft costs, such as Start up costs, Owner Engineering / Construction
support, Validation costs, F, F & E and Operating costs. Cost Optimization Methods (COM)
and value enhancement approaches, to be performed during the following CAPEX estimating
efforts:
#

Estimate Type and

Accuracy

Initial Business Idea

Basis - ROM, Blue
Sky, OOM, Concept
Study, Ratio Estimate
type estimates (+/ -

Detailed Design Completion

/ Available Engineering /
Estimating / Data
1 5%, Preliminary SOW
statement, partial M.E. list,
sketches, known location

Suggested COM Effort

Estimator / Project Manager /
Project Controls / Project
Stakeholders (minimal 2 4
hours)

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
Estimate, GMP
Estimate, A Not to
Exceed Estimate (+/ 10% accuracy)
Lump Sum - Hard
Money / Lump Sum
Proposal Estimate (+/ 5% accuracy)

2 10% all of the above, M.E.

list, preliminary layout known,
preliminary OSBL data.

Estimator / Project Manager /

Project Controls / Project
Stakeholders) (minimal 2 4
hours)

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.

All the Project Stakeholders

(0.5 - 1 day effort)

30 80% all 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.

All the Project Stakeholders (1

2 day effort)

50 100% all of the above all

of the above, priced out M.E.
list, 80 - 100% CSA / piping /
electrical completed, OSBL
design 70 - 100% complete,
with perhaps 80% - 100%
detailed quantity take-offs
completed.

All the Project Stakeholders (1

2 day effort)

The (COM) approach should be considered as a work in progress list of planned, well
thought out historical best practices, that encompass the entire CAPEX projects scope, COP
when adopted can bring enhanced value to the completed facility. The following is a listing of
these best value practices that should be considered during a CAPEX projects execution
cycle. (These concepts have worked successfully in the past and there is no reason why they
should be appropriate in the future). The five main features of Cost Optimization Methods
(COM) are to financially enhance each facility by optimizing the following.
(1) Improving Cost Performance the final cost of the facility - compared to the approved /
allocated CAPEX funds.
(2) Optimize the Completion Schedule / Facility Start-Up Vs 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 80 concepts / applications focus primarily on Manufacturing, Refinery, and HiTech type CAPEX projects, similar considerations and concepts should be considered and
developed for other non-process related construction projects listed above.
Ref #
1
2

3
4

5
6
7
8

Front End Evaluation / Economic and Business Drivers

Are there any developing governmental rules / edits / directives / codes /
changes in the pipeline that could impact this CAPEX projects economics or
delivery?
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?
Will this CAPEX project add value and create alignment between key business
units and company stakeholders.
Characterize 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 noncritical CAPEX project this particular project will not really influence or drive
future businesss 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 companys 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 a vested interest / agenda that is 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.

9
10
11
12
13
14

15

16

17
18
19
20
21
22
23
24
25

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 to restrictive or disproportionate?
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?
Does this CAPEX project align and support the companys 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?
Will the execution of this CAPEX project improve the organizations overall
supply chain and manufacturing flexibility.
Outsourcing / Third Party Manufacturing / Contract Manufacturing: Have we fully
considered the manufacturing outsourcing option and determine if this is 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 there facility? What is the best physical location for this future CAPEX project,
North America, South America, Europe or Asia? Were do we expect future
market growth for this particular product?
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 companys 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.
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.
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 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.
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 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 economic sense to ship offsite.
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 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

26
27
28
29

30

31

32

33
34
35

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
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.
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 there 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 could it 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 use to have 20 + volumes of specifications 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.
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.
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).
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).
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.
Use Best / Appropriate Manufacturing Technology: Consider new
manufacturing technology were 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

10

36
37

38

39

40

41

42
43

44

45
46

47
48

can be used or modified to produce the manufacturing steps needed.

Does it make economic / business sense to utilize re-furbished, used production
equipment for this CAPEX project?
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 pipe be
carbon steel, or can we utilize plastic piping were we use to use stainless steel
pipe.
Are we over designing the new facility is it to sophisticated, what happens if a
key component goes down / to many bells and whistles?
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 consider 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
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 predetermined manufacturing / handover schedule? Are there activities that could
be streamlined or deferred?
Procurement / Contracting Considerations
Have all lease or buy opportunities been explored, have we considered
procuring bulk quantities and free issuing to contractor.
Can owner buy out critical equipment to save time and money? Can we get
import duty / tax exemptions?

11

49
50
51

52
53

54
55

56

57
58

59

Have we considered just in time JIT inventory control / materials management

bar coding / leasing of key items / perhaps warehouse equipment?
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?
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. 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 vendors production
schedule or to jump the queue.
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.
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.
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 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.
We possible re-negotiate and reduce fees, mark-ups; multipliers and profit
margins of various contracting / engineering consultants and vendors were
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 were possible from preferred vendors by utilizing there
products on all future CAPEX projects. Possible savings of 10% - 35% could be
achieved.
Consider outsourcing (of non-critical staff / engineers) were it makes economic
sense.

12

60
61
62

63
64
65

66
67
68

69

70

71
72
73
74
75
76
77
78
79
80

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.
Construction / Execution Considerations
Permits construction / environmental / various will they impact completion of the
CAPEX project.
Select the most experienced and cost effective Construction Management firm to
support / direct the construction effort.
If fast track construction methods are to be exercised does CAPEX budget have
adequate monies for shift work, overtime, week end working, has productivity
loss been considered, have additional monies been added to the Preliminaries /
Division 1 budget.
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?
Demolition / Removal of Hazardous Waste Materials (asbestos, PCBs, lead
paint and mold) consider most timely and cost effective method of demolition
and removal from site. Do we need to provide temporary offices ad maintain
them for current operating staff? Can we obtain a credit for scrap metal or used
process equipment?
Take into account 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.
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.
Furniture, fixtures and equipment excluded these cost from capital budget,
consider perhaps as an operating costs.
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 30 days to 15 days
/ reduce 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 optimization.
Could we use a 3rd party to package finished products?
How can we optimize the energy needs of the facility?
Consider establishing one or two centralized global spare parts warehouse(s) for

13

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 were 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 it also assist 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.

Brings into focus cost saving concepts with the highest potential cost impact, it is not
just focused on construction, operating costs can be optimized:

Reduces CAPEX projects cost by generating ideas that save money while
maintaining design intent.

Best time to do Value Engineering when detailed design is between 5 50%

complete.

Typical VE / COM meeting / study takes 2 3 days, with a detailed follow up report
issued 2 weeks later.

Typical number of participants that attend VE / COM session is 10 20, these people
come from the Owners organization (Management and Operations), the EPC
companies Project Management, Engineering, Procurement, Construction, Project
Controls (Estimating and Planning).

Documents used in the V.E. study, scope of work, execution philosophy, latest
drawings, P&IDs, latest cost estimate.

The Value Engineering Workshop Process:

Set the stage Project Manager describes project goals, project execution / schedule
and cost.
Understand project V.E. group needs to understand the technical scope of the
project by asking questions.
Create improvement ideas - V.E. group generates cost savings or project
enhancement / improvement ideas.

14

Evaluate and selection of best ideas - V.E. group participates and votes on these
ideas. V.E sub groups develop cost savings from best ideas.
Develop a path forward Assign responsibility and timing needs to individuals to
compete outstanding V.E. items

As was mentioned previously the reasons for poor value

Other responsibilities than project.

Lack of time / pre-planning.
Habits and attitudes (weve always done it that way).
Lack of information.
Lack of communication.
Lack of ideas.
Lack of experience.
Failure to use available experts.
Desire not to conform to new methods.
Fear of personal loss.
Not part of the big picture.
Were making a profit why change now.

Claims / Change Order issues:

Construction projects time and again involve multifaceted interrelationships among, owners,
and design professionals, contractors / sub-contractors and vendors (that sometimes dont
work out as well as they should have remember construction is all about communications),
as a result numerous projects do not meet their original goals for time (completion date), final
cost, quality and safety. Changes are to be expected in the construction industry (we are
dealing with a team of people that have typically never worked together and who have a
technical challenge of pulling together a complex engineering (design), procurement and
construction effort on time and within pre-established budget, the variables are many,
weather, labor, materials, interpretation of the owners needs) is it any wonder that
construction projects seem to manifest disputes and delays, therefore the subject of change
order and claims management is crucial if the contracting party is to defend his or her profit
margin and business survival. Owners often initially refuse to go along with paying the cost of
change orders and claims (there first reaction is NO!!! its included in the price, you included
that in your bid!!!!). Contracting organizations typically do an inadequate job in providing
evidence of additional engineering, procurement and construction costs. The reasons for
change orders and claims are numerous, some of the main reasons encountered in the
engineering / construction delivery process include.

Client / Owner requested modifications during the engineering / construction effort.

Differing / Unforeseen field conditions, i.e. underground rock, bad soil conditions,
hazardous / asbestos materials / interferences.
Engineering discrepancies, we need the concrete design mix; we waited four weeks until
the design team agreed to the concrete specifications.
Scope of work additions (add a new wing).
Schedule acceleration, the client is telling us that we need it built three months earlier - to
hit the Christmas sales period.
Acts of God (wind damage to foyer area); this will delay us by 8 weeks.

15

Plus many more situations.

Analysis of a construction claim: the following is a listing of the steps that should be taken to
pulling together a claim or change order;
1. Identify issue / dispute (overview).
2. Identify / collect more (appropriate) data, timesheets, invoices; e-mails etc i.e.
relevant details that will be needed to support the documentation requirements.
3. Analysis schedule impact, compare to original program.
4. Determine cost of change or claim (collect relevant cost data).
5. Prepare interim and final cost impact of change / claim.
6. Inform relevant parities of cost impact.
The contracting parties (Owner / Engineering firm / Construction Company and a host of
sub contractors and suppliers)) must be able to provide a timely written notice, together
with documentation of the cost and schedule impact of the potential / pending change
order(s). The main goal of all parties is to construct the plant / facility to the agreed price /
quality at the promised / stipulated completion date outlined in the original engineering /
or construction contract. The topic of change orders and claims on any construction
project can cause both serious personal (confrontational) problems and possibly
significant budget overruns for all parties involved in the project construction process.
This topic more than any others in the construction industry perhaps causes the most
conflict between the project team players, due to the fact that change orders and claims
typically run in the 2.5% to as much as 10% of the original total install cost (T.I.C.) of the
project, people many times taken change orders and claims as a personal affront. The
intent of this section is to propose a straightforward / path forward standard for
implementing change orders and claims and to assist in supporting enhanced conformity
among clients / owners, engineers, architects and contractors. (The project team the
individual involved in the construction process), and to gain acquiescence (buy-in) of this
standard as a series of steps (in some ways similar to the four-step estimating approach
described in section A 2) which will help construction professionals when faced with this
vexing problem of change order(s) and claim preparation, submission and eventual
resolution.
A change order (refer to section A 2 for a detailed description) is written / verbal formal
request contractual instruction usually compiled and issued following the execution
(signing) of the construction contract to the contractor, signed / authorized by the
individual named / nominated in the contract (the owners representative / project
manager). This is the individual authorized to act for the owner the individual who
coordinates and instruct the contractor to proceed with the performance of the work /
change order (the individual who approves monthly pay requests, many times an
Architect / Owners Representative / Project Manager / Clerk of the Works. Like in other
industries there are always divergence of opinion / execution practices on how to proceed
with change orders, (push them away, leave them till the end of the project etc) the best
way to handle them is to resolve them when they show up and get them approve and out
of the way Change orders and claims are a fact of life. A Change Order is contractual
document requesting a scope modification or variation; a written (formal) change made
by the client / architect / engineer to the contract drawings or specifications or completion
date. By and large, a change order must be agreed by the owner / client and the
engineer / contractor prior to it becoming a legal modification to the contract, if the Owner
refuses to approve a change order it usually ends up as the basis of a claim.

16

Checklist of supporting documentation change orders / claims:

1. Understand contract language regarding change orders (read the contract language
specific to change orders).
2. Issue immediately a written notice to Owners representative of any scope changes,
amendments, changes conditions, additions or deletions or change conditions.
3. Make sketches, take video / or photographs of relevant work area that indicates
changed condition or problem area.
4. Collect relevant drawings / revisions / specifications, red line changes, issue copies to
Owner or related party.
5. Request advice from owner. (Document conversations, collect e-mails and any
correspondence)
6. Create a change order specific file, assign number and collect costs.
7. Collect quotes / pricing details and make adequate copies.
8. Maintain complete set of drawings, specification, correspondence, minutes of
meetings that assists in supporting change order / claim.
Estimating and costing out the changed work:
In estimating / costing out the changed work the path forward is define or scope out the work
to be modified or changed, this includes. Analysis the current documentation, or produce the
necessary back up materials; compile required take-offs. Catalog and gather together the
relevant drawings, cut sheets, shop drawings and specifications. Mark up / red line / highlight
the changes on the drawings and specifications, cloud out changes. Transmit copies of
relevant documentation to sub contractors / vendors in a form of Request for Quotation / RFQ
if appropriate, stipulate when the pricing details needs to be returned, ask for alternates, and
consider value engineering issues. Additional questions that must be considered when
considering change orders / claims include some or all of the following issues.

What trades will be impacted all just one or two.

Can we get this material on time in small quantities, will we have to pay a premium,
shipping and handling fee.
Supervision, does it need to be supplemented?
Work space congestion, were can we store this material.
Will change order impact other trades / sub contractors, will we need to demolish
previously installed work.
Clean up / Demolition of previous installed work.
Material logistics.
Re work issues.
Winter working / protection / temporary heat.
Overtime / shift work, will this be required.
Material storage, offsite storage fees.
Warranty extension impact, will this have a cost impact?
Escalation of labor and material costs, new labor rates may kick in.
Learning curve issues could slow the overall project, loss of labor productivity.
Scrap existing installed equipment and construction work.
Extension of time, preliminaries and site establishment trailers etc are at the project
for a period above and beyond what we bid on.
Job site overhead, warehouses, temporary toilets and administration staff.

17

Construction equipment / downtime / idle period this could be part of the change order
/ claim because they are at the site longer than originally planned.
Additional travel expenses / subsistence costs.
Additional home office support to order equipment and materials.

The following basic cost items / terms are involved with the vast majority of all change orders
and claims.

Recovery of direct costs (labor, materials and construction equipment).

Recovery of indirect project / field related costs.
General and Administrative Costs (H.O. support and field related).
Overhead Costs.
Contingency (Technical and General).
Risk Allowance.
Profit Margin, mark-up on vendors and sub-contractors.
Time Extension. (Extension of Division 1 / Preliminaries / site establishment).
Additional site establishment / preliminaries costs due to additional staffing needs.
Possible relief of Liquidated Damages (L. D.s) and consequential damages.
Bond premiums / bonding capacity / additional insurance premiums (BAR insurance).
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 best 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) this is another good solution the work continues to get done. 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 data base / 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, public holidays etc, indirect labor on and off site, construction
equipment / rental (backhoes, welding machines mob, demob costs etc.), specialist
subcontract work (typically painting, roofing, siding, electrical etc.), permanent and
temporary materials (bulks / engineered) small tool cost (picks, drill bits, saws) project
related insurance (BAR), project office supplies project consumables, grease, rags, welding
rods and gases etc. telephone / fax communication costs, postage express mail, blue print
machine, copying machines, permits, performance bonds, temporary services and facilities,
clean-up costs, NDT testing of materials, temporary facilities, sheds and toilets etc.

18

Permanent / temporary bulk / commodity materials, construction equipment (contractor

owned and 3rd party) and specialist subcontract cost elements are typically easy to assign
and calibrate, because many times there costs are itemized on invoices or are part of the
companies internal financial reporting systems, they typically get invoiced per the CSI 1 16
divisions. On the other hand, labor costs are complex to determine and not easily itemized,
unless special time card reporting / collection systems are established such as time cards
with assigned cost codes.
The subsequent topics itemized below listing specific scope situations should assist in
distinguishing the number various factors to take into account when determining / collecting
labor man hours / costs / productivity modifiers. The total work hours needed to finish a
change order in regular circumstances / conditions can be estimated utilizing in house
historical data, industry standard labor units etc. Fine-tuning / calibrating should be made for
unusual / difficult or less than favorable circumstances that apply at the project site, i.e.
working in crowded areas. A number of factors to be considered are. Client imposed delays
such as failure to respond to requests for information (RFI) and failure to pay contractors
monthly invoice, or late payments. Limited (restricted i.e. small items like bobcats because
of there size) usage of construction equipment due confined work areas / tight work areas.
Functioning in tight spaces / small rooms were space is restricted were numerous operations
must be performed concurrently were it is just about impossible to use construction
equipment. The workmen of several trades could become stacked in a limited work area
creating a situation in which work cannot be done efficiently, interfering with concrete,
brickwork, piping, painting, etc. Limited use of construction equipment, every thing needs to
be man handled / triple handling etc. Man hour efficiency / productivity loss / worker burnout
due to prolong periods of overtime / shift work effort can be a major problem. How will other
work crews / crafts be affected due to possible demobilization / remobilization and congested
work areas? Small order of say concrete, bricks, steel etc usually cost more due to the minor
nature of the order, these costs need to be determined and passed on to the owner via a
C.O. or claim. General attitude of the work force (positive or negative), construction
professional and journeymen craftsman have an extreme sense of ownership / pride in their
work effort and in what the finished product looks like (remember the 9 / 11 / 2001 WTC
construction / repair / rescue effort). Change orders many times may possibly cause logistical
related problems in the planned work sequence / program that many times require re
evaluating and modifying the size and composition of the work crews / utilization of
construction equipment, necessitating reallocating workers to other sections or hiring
additional labor resources. Labor shortage / non-availability of skilled workers, due to
substantial construction activity in a specific area many times will generate a scarcity /
shortage of skilled workers which could have a significant impact on labor related costs, (you
could be getting the 3rd team when really you need the 1st team) example after the 9/11/2001
WTC event skilled worker in the New York area were not available they were just sucked
up by the events and the huge repair efforts.
Buildings exceeding three floors / high rise buildings / basement work, construction specific
labor costs and field indirect costs tend to increase in high rise buildings this is still the case
when temporary elevators / hoists / scaffolding are supplied, this remains the case when
logistic support such as drinking water temporary porta johns / toilets are made available on
every third or forth floor, the physical effort of getting to the construction work location
impacts labor productivity, carrying materials up the building impacts the productivity, we
have some data on this in the following sections.. Mistakes and knock on delays, when
additional work is necessary because of the issue of a change order, many times the
consequence on the base project / original contract scope is not as it should be, i.e. general

19

momentum is many times lost or diluted, it is possible that this will cause field mistakes / re
work and knock on delays which can be very costly to correct. Extreme weather conditions
(hot or cold) impacts labor productivity, examples could include storms, significant snow /
frost, heavy rainfall, high winds. Concrete, paint, drywall etc may not be installed in
temperatures lower than 32 degrees F; heated aggregate, potable heaters, temporary
partitions etc may be required; of course this has a cost consequence. Effect that change
orders have on any bonus / penalty provisions or liquidated damages, should be carefully
considered, why should the contractor lose out on a bonus just because the owner has
issued a change order. Will the change order work be completed in the later stages of the
project, will this impact labor and material costs, i.e. inflation, the materials and labor costs
will most probably be more than originally bid, will the work be carried out in winter months,
what impact will this mean, temporary heat, partitions and potential loss of productivity.
Increased costs / cost escalation / inflation: When a new change order delays completion of
the project, the additional costs of labor (increased wage rates), material, construction
equipment and sub-contract work should be calculated and included with the change order
value. Contract end date / time extension (additional Division 1 Costs / Preliminaries) each
change order should be evaluated and estimated pragmatically (endeavor to capture all the
cost items) and managed on a case by case basis to safeguard the current project / contract
end date (or extended completion date). Fast tracking / accelerating the completion date
could affect a decreased production rate / productivity / efficiency; a larger labor force may be
required together with additional supervision. An authorized time / schedule extension (i.e. 1
week or 1 month) will typically produce extra project related overhead costs, the site
establishment and the site staff will need to be at the site that additional period of time, this
cost will need to be established by the contractor and passed onto the owner via a change
order or claim. A change order producing a delay to the basic contract completion date will of
course impact the construction project with additional costs to the Contractor (direct and
indirect costs including H.O. and any loss of future potential profit). These above and beyond
the current project related costs should be recognized (fully scoped out) collected and
(estimated) priced out and included in the new change order value together with a time
extension (if necessary) and presented to the owner. Acceleration activities, contractor is
requested to accomplish a greater amount of work in a shorter time period, overtime, loss of
productivity, supervision are typically associated with this situation. Partial facility acceptance
occupancy or partial / staged transfer / partial start up of facility. When a change order delays
completion of the project, this particular situation could result in the work being carried out
after an area section / floor of the facility is occupied by the owners staff, security restrictions
in specific areas, protection of (owner supplied fixtures / equipment) furniture, fixtures,
equipment, inventory, noise, intrusion of owners employees / customers, dust protection and
schedule issues could negatively impact worker attitude / productivity. Finance costs and any
bank charges should be part of the change order or claim if the contractor in fact pays them.
Rescheduling caused by change orders may postpone the completion and hand over of the
project this may cause additional costs to the contractor by having to finance the project for a
longer period of time than originally estimated / anticipated, retention funds could be with
held for longer periods of time, this could also mean additional insurance premiums.
Temporary protection of completed construction work: (Protection of previously completed
work with tarpaulins, temporary heat, temporary partition etc). In certain shift work situations,
auxiliary weather protection materials / heating / support systems may be required
(salamanders / gas bottles, plus the labor to maintain and control this activity etc). Given that
both shifts will be working on the same construction effort, there will be a specific
ineffectiveness in the hand over from one shift to the next. The new crew will have to go
through a learning curve with the work completed by the earlier shift. In view of the fact that
both shifts use the same gear, tools and construction equipment, many times they will be in

20

different locations. Overtime / shift work - grave yard (night work) versus normal daytime
work, in view of the fact that the extra shift will be performed at night, ordinary light will not be
on hand, temporary electric lighting will have to be made available / maintained, watchmen
and perhaps[s other labor costs could be part of this activity. Typically temperature / weather
conditions at night are more difficult to work, temporary heating could be required to allow
paint / concrete to cure properly. Site management / field supervision shortages / restrictions
(Additional site staff for short durations to complete the change order work): Construction
field activities required and linked with the integration of a change order work and the work of
the basic / original contract may entail a dilution / digression of supervisory attention from the
original / basic contract work. At the same time as the project manger is evaluating the
change order, man power loading craft workers, inquiring ordering / purchasing the additional
major equipment, bulk materials, construction equipment and specialized sub contractors
resources etc. Field progress / labor productivity on the original / basic contract could be
negatively impacted both from a cost and schedule point of view. Field supervision will be
thinned out, because the existing supervisory staff must be extended over a number of
different work shifts, makes the coordination difficult, as to work completed, whats next,
ordering of materials, deliveries, field orders, imagine the logistics of doing slip forming on a
major high rise building, this is the sort of coordination that may be required. Successfully
coordinating some or all of the above with the above issues should help facilitate the
contractor to establish accurately the cost of executing the work that is necessary in
completing the change order collecting the relevant data and putting it on paper is the
secrete of success, thought must be given to the knock-on effect of the specific change order
will have upon the total execution of the total project, it can sometimes work to the
contractors advantage to get a number of change orders and many times it will depended on
the sophistication of the owner and his or hers knowledge of the construction process on how
this will all work out. The construction industry in the twenty first century is more multifaceted
and complicated than ever before. The quantity of issues concerned in executing even minor
projects can be daunting, causing planning and scheduling to be difficult to say the least
creating schedule stoppages. As a result, every contractor will be faced with delays, at the
same time this delay / stoppage is the usually the responsibility of another party working on
the project and puts the contractor in jeopardy to disrupt the customary operating methods /
proceedings and impact the expect return on investment / profit margin, if this is the case the
contractor will be obliged to issue a documented delay claim to the owner. The subsequent
list of issues may impact productivity when work is performed on a shift work basis.
Additional hard standings / special scaffolding needs / requirements, barricades, fences and
the subsequent rental, erection and dismantling, having to prepare outside areas with stone /
sleepers, etc for scaffolding support could result in additional costs incurred by the
contractor. Extra support staff / additional logistical support: (Both H.O. and field staff)
Difficulties can come about because of problems in ordering, purchasing and delivery of
major equipment, bulk materials and construction equipment, to site etc., due to a new
change order, how are these costs recovered. Increased overhead costs and inflation /
escalation of material, labor and major equipment costs many times can also play a part in
extra costs to the contractor. Deliberation must now be focused on commercial conditions,
general and administrative overhead costs, in view of the fact that the general contractors
change order will be compiled with many change order pricing submissions from a number
vendors and sub-contractors, and because the terms and conditions, profit margins general
and administrative overhead percentage uplifts in the construction industry vary widely, good
documentation must be kept to support the commercial basis of the change order. A
reasonable overhead and profit fee perhaps 10% 15% should of course be part of the
change order, it should be added / incorporated after all the costs have been collected
together with the appropriate percentage for general and administrative overhead costs 5%

21

t0 10% seems to be a value seen in industry, cost related to pricing out the change order
should also be included. The change order should contain specific language for acceptance
of a change orders. (Pricing basis is valid for 30 - 60 days after this time we reserve the right
to re-visit the cost values, due to potential cost increases from our sub contractors and
vendors related to price increase related to material cost and increased costs of labor and
overhead fees) When a change order is not approved, the contractor should be compensated
for all costs incurred in the study / preparation of the change order quotation, the cost of the
estimating effort should be reimbursed. (Many owners will not like this statement, however
many owners understand the work effort required by the contractor to come up with the cost
of executing a change order proposal, phone calls, copies of specifications, memos, scopes
of work etc there is no such thing as a free lunch).
Listing of construction field reports / documents that should be maintained, to support any
future change orders and potential claims:

Monthly job cost reports.

Visitor log.
Purchase order log.
Sub contractor log.
Commitment register:
Timesheets
Safety log
Bid evaluation files.
Daily construction equipment and usage report.
Minutes of all meetings.
Schedules and subsequent updates.
Site superintendent diary.
Photographs / videos.
Correspondence files.
Log of potential change orders / claims (PCOs).

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. Like all other situations in business, there is
the right time and a wrong time to submit a claim to a client / owner, to just send it out of the
blue is of course not a smart way of doing it, the client should have some insight to the claim,
so it doesnt catch them off guard.
Reasons for a claim could be one of the following.

Additional work (not part of the original scope).

An order by the owner to stop or terminate the work.
Underground earthwork conditions or concealed physical conditions (rock, underground
conditions such as pipes, electrical cables, that are not shown on the contract drawing,
high water table).
Change orders that substantially alter the intent and scope of the original contract.
The owners failure to promptly reimburse / pay the contracting parties.
The owners failure to provide timely interpretation of the detailed design / specification
and failure to respond to requests for information. (RFIs).
Acts of God. / Force Majeure.

22

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.

Prior to producing and sending a claim or notifying the party that a claim will be forthcoming,
be satisfied the claim is just legitimate and that the claim is fair and represents real life
situation (costs have been incurred, outside the scope of the original project, due to no fault
of the contracting firm).
The point of the following observations is to improve the task of researching and collecting
documents / back up data needed to support the claim, following a thorough assessment, if
the contractor or engineering firm is persuaded a claim is appropriate, consider and follow
the subsequent measures and steps indicated (of course no two claims situations are the
same basically use the methodology as a guide). Have a good handle on the terms and
conditions of the project contract and determine what length of time is required prior to
informing the owner regarding a potential claim (dont leave the claim resolution to the end of
the project!!!!) Have appreciation of the big picture and be aware of all direct and supporting
items that could be part of the claim if management has made the decision to submit the
claim know the issues so you can talk with some authority when the owner starts asking
questions about the claim. A valid question is are the legal fees recoverable or is this a cost
the contractor will have to absorb, are they considered a cost of doing business.
All construction related organizations, contractors and A/E firms that encounter a delay,
disruption or stoppage of work have to bear in mind that it is fundamental for future survival to
keep up to date documentation / records on every project they are involved with. This
includes the retention of all project related:
Memos:
Minutes of meetings:
E-mails:
Phone messages / verbal instructions should be documented.
Drawings
Specifications
Other relevant documents:
These must be filed away for possible future action. This includes project related
correspondence between the project team members must be acknowledged, acted upon
and filed during the projects life cycle, verbal communications should always be confirmed in
writing e-mails are a great application of confirming actions. The contractors project
manager / site superintendent must be educated to maintain a precise daily activity log /
diary, recording each days major events, visitors, accidents, number of workers, deliveries,
weather conditions, delays, stoppages, completion of certain units, when work areas were
handed over by the client, problems experienced, milestones achieved etc. Signed daily
project timecards, brass ally records, payroll documents, overtime logs, accident notices, etc.
must be retained together with copies of all purchase orders, sub contracts, site meetings,
invoices, delivery receipts, progress photographs, schedules and all other relevant site
related documents. With the cooperation of lawyer if necessary or a specialist claims consult
if deemed appropriate, draft and prepare a position letter delineating the details of the claim
to the appropriate owner project representative(s), i.e. clerk of the works / owners

23

representative or perhaps to all of them lay it out on the table. The letter: should give
details the nature of your claim in adequate detail to portray the claim in some detail (it
basically gives a basic outline of the issues and challenges being faced or recently
experienced) note this should not come out of the blue hopefully the groundwork has be laid
with conversations and comments in various weekly meetings and reports; point out that the
delay and the ensuing damages / costs are the liability / responsibility of other parties on the
project; spell out the value / lump sum amount if known you are requesting for as additional
payment to relieve this problem; and indicate the time extension required that will impact the
general conditions and the completion date. If the claim is rejected, indicate that you reserve
the right to take legal proceedings on this subject at a later date if necessary, it may be a
wise move to state the following, we are giving notice to you of these additional costs
sustained by us that were not caused by our actions so you can take appropriate actions
i.e. (back charge them) against other project related organizations / parties i.e. the owner(s),
architect / engineer / construction management firm, nominated sub-contractor(s) and
nominated vendors etc. who are possibly responsible for impacting our ability to perform our
scope of work and are a root cause for our delays on the project. Initially when this is
happening it is redundant to include in the claim letter an itemized listing of the amount you
are requesting perhaps a budget value should be initially established, it may be impossible
to determine the real cost because it is currently evolving, on the other side of the coin, it is
very important to data collection activity moving along and start the due diligence effort. All
related claim letters / correspondence should at all the times be sent via express mail with
return receipt signature to make sure it arrived and who signed for it. If the claim is rejected,
the contractor / engineering firm etc should request in writing the grounds for rejection of the
claim and at the same time present and pay for a submission for arbitration. As a general
rule, this situation gets the involved parties into an initial review / possible meeting of the
minds / resolution of the claim. Many times it is prudent to utilize the services of a lawyer or a
claims consultant (an expert on producing claims) these parties typically focuses on
construction disputes this resources can be very helpful to the contractor / engineering firm
who are not usually involved on a daily basis with claims.
The following is a listing of some key issues that can be responsible for change orders and
claims:
Changed
Conditions
Rock. (Not
shown in
contract
documents)
Water (high
water table)
Scope of work
(additional
work)

Changes in
Specification /
Errors / Scope
Materials changes
Equipment
changes
Changes in
installation
methods
Design errors

Change in schedule /
Delays

Execution

Delays / Accelerated
handover
requirements

Poor productivity

Late or delayed
payment

Late detailed design

Failure to answer
RFIs / Late shop
drawing approval

Termination

To summarize the above write up it would be reasonable to say that owners are often initially
skeptical of contractors or A/E proposals (submissions) for claims and change orders,
communications is the basic problem if the issues are discussed when they happen the
problems can many times be reduced, the root cause of the problem many times is that the

24

claim or change order is not adequately documented or discussed with the owner, it is many
times sprung on them. The contractor or A/E firm has the task to prove the scope change
(change order or claim) together with the costs and delays that he or she is passing onto the
owner; the following documentation can in many ways support a claim or can defend against
a claim.
1. Original bid documents (contract drawings, specifications and the construction
contract).
2. Instructions to bidders information.
3. Sub contractor / vendor quotes / addendum and change orders.
4. Daily time sheets.
5. PCAs.
6. Work stoppage reports.
7. As-built documentation.
8. Bore holes, sub-surface conditions.
9. Telephone conversation records.
10. Shop drawing register / vendor documentation / submittal records.
11. Keep all related project correspondence.
12. Daily equipment usage reports.
13. Photographs / videos.
14. Keep all specifications and drawings including all revisions.
15. Marked up drawings and specifications.
16. Field records, daily, weekly installed quantities.
17. Inspection reports.
18. Bid tabulations for materials and equipment.
19. Request for information log (RFIs).
20. Costing / pricing details copies of all change order bids.
21. Applicable invoices and payments.
22. Superintendents daily diary.
23. Cut sheets / fabrication drawings.
24. Relevant schedules / CPM networks.
25. Separate cost coding / WBS structure.
26. Other relevant supporting data.
27. Warranty data.
28. Punch list items.
29. Change order log (showing date submitted and date approved).
30. Owner payment schedule (planned and actual).
31. Release of liens documentation.
32. Retention release log.
Having some or all of the above documentation will many times be all that is required to settle
and finalize the specific change order, claim or dispute, time and again some negotiations /
give and take will be required to close the issue (all parties should aim for a win-win
situation). If the dispute or claim cannot be resolved contact a lawyer or a specialist claims
consultant to determine what the best path forward is to resolve this impasse.
CONTINGENCY CONSIDERATIONS AND THOUGHTS
(CAPEX) i.e. capital investment in a new facility is a common / ongoing activity for just about
all major chemical / manufacturing organizations. Prior to the ruling (by the companies
investment committee) to proceed to invest funds into a new facility, a cost estimate is

25

compiled to determine the cost of the engineering (detailed design), procurement (the
purchase of bulks and major equipment) and construct work related to the proposed facility,
an estimate by its very nature is inexact and typically fails to capture the full extent of the final
scope of the project, because it is compiled with incomplete information. The cost
ramifications of this missing scope together with the perceived risks is typically captured by
the application of a contingency provision (line item), be it 20% or 5% of the total cost of the
project, the amount / value of the contingency of course is dependent on the perceived
challenges and risks that the projects may encounter during its execution phase and of
course the accuracy of the scope of work and the skill of the team compiling the estimating
deliverables.
The definition of the word contingency is as follows: An amount / value of money or time
incorporated into a capital cost estimate for changes / 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 an indeterminate happenings; together with
attendant expenditure / cost, an unanticipated cost related occurrence. The word contingency
is in all probability is 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. Preconceived 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 know and unknown project specific risks)
Which team / parties compiles / selects / controls 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 Vs E.P.C.
contracting industry seem to be fundamentally different.

26

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; there 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 is 15% or even more, should the value be (low) a 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 that covers
its overall use in the construction industry.
Contingency values should be included in a capital cost estimate to compensate for the main
topics 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 Vs
government operating parameters.
How good are we at capital cost estimating, who 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.

27

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
OOM / Ball Park / Blue Sky
Conceptual / Pre - Design / Feasibility
Front End / (FEED) / Preliminary
Budget Control
Lump Sum / GMP / Turnkey

Contingency %
30 - 40
20 30
15 20
7.5 15
2.5 7.5

Accuracy % +/40 50
20 30
15 20
5 10
0-5

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 at 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 to be become a mixture of, catch-all line item, its always 5% or 10%,
it should have a approach, basis and a methodology in its 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 its value, some use 5% or 10%) it is many times indicated as a specific
percentage / line item this together with a value that is of the estimated for the 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%)?

28

What is the probability of under running the capital cost estimate (do these under run
fund 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).

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
sub-contracts 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 offs 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

RISK MITIGATION / APPRAISAL AND OPTIMIZATION THOUGHTS

A risk analysis workshop is an essential scope definition deliverable the assists greatly in the
estimating effort, it provides a 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.

29

CONTRACTORS CAPABILITY TO SUCCESSFULLY EXECUTE EPC PROJECT

Adequate bonding capacity of general contractor / sub-contractor(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:

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:
Current engineering and construction activity in this immediate location:
Welcoming local community, looking for new jobs:

LABOR FACTORS

Union current labor agreements):

Non Union (open shop):
Merit shop.
Drug testing requirements:
Interface with clients workforce.
Need for worker training.
Required worker proficiency (pipe fitters, millwrights, electricians use of TCNs):
Local Productivity Vs Gulf Coast (or other specified location).
Union Wage Scales, future increases:

30

Prevailing Wage rates:

Unemployment levels:

MONETARY ISSUES

Cost of proposal preparation:

Performance Bonds, other boding requirements:
Import duties / Sales Tax issues:
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 Vs 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:

31

Onerous terms:
Extended Warranty issues:
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:

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:

32

Phased completion issues:

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.

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.

33

SECTION B - 1
SCALE OF OPERATIONS - CONCEPTUAL ESTIMATES / COST CAPACITY
EXPONENTS OR 6/10 RULE VALUES
The following pages list out 150+ # Process Unit (Operating Units) / Major Equipment
items and Construction related exponent values (it is the intent to add additional
categories in future annual updates). A quick capital cost estimate(s) can be compiled by
using this method / approach known in the Process / Manufacturing - EPC industry as
cost capacity ratio exponents (however the accuracy of the resulting value
unfortunately is not very accurate so be careful with the resulting values). This is
relatively seasoned approach / method of estimating process related plants / facilities
and processing equipment major equipment (M.E.), many times called capacity or
equipment factoring or 6/10 ths rule. On many industrial / manufacturing plant projects
such as chemical facility / process plants, there is a relationship between the capacity of
the plant and the historical / current cost of the facility.
New facility production rate, divided by known facility production rate, multiplied by
known facility cost, multiplied by appropriate exponents listed below. An example of this
is as follows:
An Acetic Acid Plant: A 15,000 gallon a day facility cost US$14.45 million to engineer,
procure and construct what would an 8,500 gallon plant cost to engineer, procure and
construct.
The exponent for an Acetic Acid Plant is 0.70, taken from the list below.
The calculation is 8.500 gallons divided by 15,000 gallons = 0.566 this value multiplied
by xy multiplied by 0.70 (exponent) = 0.672
The original 15,000 gallon plant cost $14.45 million this value multiplied by 0.672 =
$9.71 million, this would be the cost of an 8,500 gallon a day plant. This value can be
calibrated for escalation if necessary.
This approach should be utilized for very early / order of magnitude estimates, many
times it is the first estimate compiled. The industry average (exponent) cost capacity
factor (n) has an average value of between 0.5 and 0.7 (of course there are exponents
that fall above and below these values), 0.6 is widely used, hence its name the 6/10th
factor. The $64,000 question is - is the OSBL work / scope included in the factors, (this
issue is the subject of some debate and can be considered a grey area) this feeds the
argument of why the accuracy range i.e. +/- 35% of this estimating method is so wide).
This procedure is assumed for the same time period and location, the value / outcome
should be calibrated by an inflation / escalation indexs. This concept is thought to have
originated in the 1940s and this estimating approach is widely utilized in the Process /
Chemical / Manufacturing industries for a good number processes, plants and major
equipment items, however these exponents in a lot of cases fluctuate over a wide range.
Exponents / factor values can be found in various published 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 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, bulks, labor, in directs including
detailed design, construction management and contingency. The exponents indicated
below do not reflect the O.S.B.L. scope of work.
The following are 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 2008 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%.

PROCESS UNIT / MAJOR EQUIPMENT /

CONSTRUCTION RELATED EXPONENT VALUES /
FACTORS
Acrylonitrile Butadiene Styrene 0.72
Acetaldehyde Plant 0.73
Acetic Acid Plant 0.70
Acetone plant 0.52
Acetylene plant 0.78
Acrylonitrile plant 0.63
Agitator Propeller 0.5 5 HP 0.70
Agitators Propeller 5-50 HP 0.45
Ditto turbine 0.37
Air compressor 0.35
Air dryer 0.58
Air handler Draw thru (DX) 0.82
Alkylation, large unit 0.65
Alkylation, small unit 0.71
Argon facility 0.86
Ammonia plants 0.72
Ammonium Nitrate 0.57
Ammonia Sulfate 0.75
Autoclave 1, 000 PSI 0.95
Aviation fuel 0.85
Axial duct fan up to 10,000 CFM 0.45
Bagging Machine 0.77
Ball mill 0.65
Bauxite 0.75

Benzene facility 0.71

Blender rotary 0.45
Blower Axial 0.55
Blower centrifugal 0.55
Boiler (packaged) 0.70
Brewery 0.63
Butane 0.72
Butanol plant 0.45
Carbon Black 0.67
Caustic soda plant 0.45
Cat Cracker 0.58
Centrifuge 0.95
Chlorine plants 0.49
Column fractionating 0.60
Conveyor Belt 0.67
Ditto Bucket 0.75
Ditto Vibrating 0.85
CO and CO2 hydrogen stripper 0.71
Cooling towers 0.60
Coke oven gas stripping unit 0.78
Coking (delayed) top entry unit 0.63
Compressor recip, air cooled 2 stage, 100 psi 0.70
Cracking unit, catalytic (cat cracker) 0.80
Cracking, thermal reforming unit 0.66
Crusher cone 0.83
Crystallizer 0.75
Cyclohexane unit 0.63
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
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

Ethylene unit 0.77
Ethylene Oxide unit 0.75
Evaporator vertical tube 0.55
Evaporator horizontal tube 0.55
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
Formaldehyde 0.60
Furnace 0.75
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. 200 SF 0.62
Heat Exchanger S/T fixed sheet c.s. 200 SF 0.48
Hopper / Silo conical 0.65
Hydrogen production facility 0.70
Hydrogen Peroxide 0.72
Hydrofluoric Acid plant 0.71
Hydrogen sulfide stripping unit 0.61
Hydrotreating unit 0.68
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 0.86
Natural gas facility

0.63

Nitric acid 0.87

Oxygen production plant 0.68
Paraxylene 0.60
Phenol plant (High Purity) 0.68
Phosphoric Acid plant 0.74
Polyethylene plant (High Density) 0.62
Polymer plant, large unit 0.66

Polymerization 0.55
Polymer plant, small unit 0.78
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
Power Plant Nuclear 150 1,500 MW 0.77
Precipitator dust collector 0.75
Pressure Vessel (CS) 0.60
Pressure Vessel (SS) 0.65
Propylene unit 0.72
Pump centrifugal 400 GPM and above 0.37
Reactor, C.S. or S.S. 1,000 gallon and above 0.50
Reactor SS glass lined 1,000 gallon and above 0.55
Refineries, 50,000 bbls /day and above and larger 0.63
Refineries, 50,000 bbls /day and smaller 0.65
Reforming, catalysts units 0.60
Refrigeration plant

0.65

Rotary Drum Filter 0.66

Roller mill 0.63
Scrubber 0.70
Separator centrifugal 0.55
Soda bicarbonate facility 0.68
Solvent extraction plant 0.88
Solvent dewaxing unit 0.77
Soybean extraction plant 0.73
Styrene plant 0.67
Steam Boiler / Production 100 psi 0.63
Steam Boiler / Production 500 psi 0.77
Sulfur production / recovery unit (Clause / Amine) 0.59
Sulfuric acid plant 0.67
Tanks C.S. Floating head 10,000 gallon and above 0.54
Tank C.S. Glass lined 0.51
Topping Unit 0.66
Tower C.S. W/o trays 0.60
Toluene facility 0.67
Transformer 0.58
Tray sieve type 0.83
Turbine 0.66
Urea plant 0.75
Vacuum Distillation unit 0.62

Vacuum Flash unit 0.64

Vibrating screen 0.65
Vinyl chloride unit 0.83
Visbreaker 0.65
Non Equipment Facility items:
Civil works 0.67
Constriction Labor 0.45
Piping 0.87
Structural steel 0.67
Engineering / Drafting work 0.47

SECTION B - 2
CHEMICAL PLANTS / MANUFACTURING FACILITIES
RATIO / PERCENTAGE ESTIMATING FACTORS
The data and various cost models contained in this section are supplementary to the
data contained in Section A 3. This first method Lang factors comes up with a total
installed cost (T.I.C.), it is compiled a by multiplying the cost of major equipment item,
i.e. a compressor, a pump, a tower etc, by specific multiplier, this multiplier includes such
items as concrete, structural steel, piping, electrical etc. (i.e., all the bulk material items
and in directs plus detailed design). The grandfather of ratio factors is thought to be
Mr. Hans Lang who was an Engineer / Estimator with a major engineering firm in
Philadelphia, Pennsylvania, in the late 1940s and early 1950s the method is known as
the Lang Factor method is widely used in the Process / Chemical related industries.
There are a number of similar factors produced by other individuals, these include Hand,
Cran, Gallagher, Suarez, Guthrie, Nishimura who has done additional research work
on these factors, other proponents of this approach include 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 introduce 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 +/- 30%. When evaluating the
above methodology consider what Mr. Hans J. Lang published in the June1948 edition
of Chemical Engineering.
1) Delivered Major Equipment Cost x 4.74 for a fluid / liquid process plant. = Total
Estimated Plant Cost.
2) Delivered Major Equipment Cost x 3.63 for a solids / fluid - liquid process plant: =
Total Estimated Plant Cost.
3) Delivered Major Equipment Cost x 3.10 for a solids process plant. = Total Estimated
Plant Cost.
Mr. Lang presented this data approx 50 + years ago, is this data still relevant today, in
many ways the answer is yes, things that have changed in the last 50 years include,
instrumentation / control systems use of Delta V and TDC 3000 are commonplace today,
these are totally different than systems utilized in the 1940 / 50s, they are much more
expensive today than the time these factors were established, environmental issues,
project delivery methods, different materials, different major equipment etc, etc. The
above values do not mention O.S.B.L. work the assumption being that the above values
are for I.S.B.L. work only. There are other individuals that developed ratios and
multipliers; some of the most frequently used multipliers, are mention 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, 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 2, Example 3, Example 4, Example 5, Example 6 and Example 7 ) was
assembled from historical cost data from over 19+ comparable grass roots chemical /
manufacturing facilities which were constructed in North America within the last 8 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 110 million. The base
data which was commenced in the early 1990s has been updated / calibrated to reflect
to todays time frame, i.e. 4th quarter 2008, this type of could be consider 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 major equipment based at 100.0, civil work, piping 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 / ratios 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, when a plant or facility has the
following situations.
1) Economic climate, in boom periods / times such as is the case in South East Asia,
material and labor shortages 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 required longer, this could impact the cost by 0 10%, consider if the initial
CAPEX estimated needs to be adjusted for this situation.
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, in this situation the piping and instrumentation
typically are higher. (In this situation use mid point to high end range of piping and
instrumentation values / percentages, plus a value of between 0 50% to
compensate for additional scope requirements related to these two major accounts.
Refer to Note (C) later for suggestions on how to compensate for high usage of

expensive alloys etc.), this could increase the cost by 0 15%, evaluated if the initial
CAPEX estimated 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 Vs 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, similar to (1) above for painting, structural steel, piping
and instrumentation. And note (C) following. 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 and 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 time 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, especially the detailed design value. 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, 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.
Example (1) Percentage / Multiplier Method Accuracy +/- 25%
Direct Costs
Major Equipment Cost (including freight)
% of M.E. cost
Major Equipment setting
12%
Site Development
1%
Civil / Concrete
2%
Structural Steel
4%
Facility (a)
73%
Piping
80%
Instrumentation
40%
Electrical
22%
Insulation
5%
Painting / Coatings
4%
F/Protection / Refractory
2%
245%

$1,093,000

S/T

$2,677,850
$3,770,850

S/T

$263,960
$641,045
$75,417
$115,000
$57,000
$123,000
$1,275,422

Indirect Costs
Construction Mgmt
7%
Detailed Design / H.O.EPC costs
General Conditions 2%
Client front end engineering
Spare Parts
Taxes

17%

Total Direct & Indirect cost

Contingency
Total Project Cost

total
15%

$5,046,272
$756,940
$5,803,212

Multiplier is $5,803,212 / $1,093,000 = 5.30 or 4.61 w / o contingency

(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
Description
Percent Total Value
Div
No
9.53%
1 Preliminaries /
2,076,086
General
Requirements
2 Site Works / Civil 3.76%
819,107 **
3 Concrete
5.84%
1,272,228
4 Masonry
6.48%
1,411,651
5 Metals /
7.46%
1,625,142
Structural Steel
6 Wood Plastics
4.84%
1,054,381
3.55%
7 Thermal &
773,358
Moisture
Protection
8 Doors &
3.36%
731,968
Windows
9 Finishes
5.73%
1,248,266
10 Specialties
1.90%
413,910
11 Equipment*
9.31%
2,028,160 *
12 Furnishings
0.72%
156,850
13 Special
0.32%
69,711
Construction
1.97%
14 Conveying
429,159
Systems (3P /
1G)
15A Plumbing
5.93%
1,291,835
16.79%
15B HVAC (AHU s /
3,657,657
Ductwork /
Balancing)
15C Fire Protection /
1.25%
272,309
Sprinklers
16 Electrical
9.59%
2,089,156
16A BMS / HVAC
1.67%
363,805
Controls
100.00% 21,784,740
17 A/E Services
8.85%
1,927,949
18 CM
4.75%
1,034,775

SF / Cost M2 / Cost
28.83

310.26

11.38
17.67
19.61
22.57

122.41
190.13
210.96
242.87

14.64
10.74

157.57
115.57

10.17

109.39

17.34
5.75
28.17
2.18
0.97

186.55
61.86
303.10
23.44
10.42

5.96

64.14

17.94
50.80

193.06
546.62

3.78

40.70

29.02
5.05

312.21
54.37

302.57
26.78
14.37

3,255.61
288.12
154.64

19

Validation
Services
Total

N/A

N/A

N/A

N/A

113.60%

24,747,465

343.71

3,698.37

* 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.
(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
2005 Fermentation / Chemical Facility enclosed in Metal siding Building
With structural steel, columns and EPDM roof (Located in Mid West USA calibrated to
Washington D.C. area)
Scope item
$ Cost
%
Remarks
Major Equipment (M.E.) 117 # 14,377,570 30.25%SS glass lined tanks / reactors / pumps
Freight
504,865
1.06%
Demolition
151,788
0.32%
M.E. Installation
721,254
1.52%Millwright / setting work
Site preparation
285,286
0.60%
Concrete / civil
391,983
0.82%
Structural steel
587,835
1.24%
Pipe
7,486,743 15.75%60 - 70% SS / glass lined
Electrical
4,836,984 10.18%
Instrumentation / BMS
2,767,543
5.82%
Buildings
1,753,882
3.69%3 # buildings see note A
Utilities / Miscellaneous items
638,765
1.34%Cooling tower / sub station / new boiler,
existing piping and some utilities chillers
could be utilized
Detailed design
7,052,090 14.84%114,750 hours see note B
Field Eng support
371,989
0.78%
Construction Mgmt
1,978,994
4.16%See note C
Owner Eng Support
1,066,870
2.24%Design review / CM oversight
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%Division 1 items
Total Installed Cost
47,534,970 100.00%
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.

EXAMPLE (4) CHEMICAL PERCENTAGE RANGE PROCESS PLANT (CONCEPTUAL

ESTIMATING APPROACH)
ACCURACY +/- 30% ISBL ONLY PERCENTAGES OF MAJOR EQUIPMENT
DELIVERED TO SITE
% RANGE

Major Equipment see note A

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)
Construction Management

100.0
24
3 10
4 12
10 35
15 40
5 25
40 150
15 50
15 50
3 15
26
27

LABOR %

0
85
40
55
40
55
55
40
40
40
75
40

MATERIAL %

100
15
60
45
60
45
45
60
60
60
25
60

36
50
50
25 45
35
65
10 15% of the above total value
4 7% of the above total value

** 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%

EXAMPLE (5) 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.
Ref
#

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
29
30
31
32
33
34
35
36
37

Major Equipment (M.E.) Item

Air Handler Unit

Air Cooled Heat Exchanger
Agitator (CS / SS)
Bag house
Bagging Machine
Ball mill
Blender
Blower / Fan
Boiler
Clarifier
Centrifuge (solid bowl)
Compressor (electric motor
driven)
Ditto (gas or steam driven)
Chiller
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

Assume
Purchase Order
Value
Ex works
(excludes freight)
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000

Multiplying % range
to obtain a fully
installed M.E. item
(Excluded M.E.
cost)
40 60%
80 100%
45 75%
70 90%
40 60%
50 70%
40 80%
40 80%
40 80%
40 80%
50 90%
50 90%

Total (Average)
Installed cost M.E.
including / excluding
items below

$50,000
$50,000
$50,000
$50,000

50 90%
40 60%
30 60%
70 120%

$85,000
$75,000
$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

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%

$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

$75,000
$95,000
$80,000
$90,000
$75,000
$80,000
$80,000
$80,000
$80,000
$80,000
$85,000
$85,000

38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

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

$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

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%

$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

The above multipliers include or exclude the following items:

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 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).

EXAMPLE (6) ZEOLITE PLANT SUMMARY ESTIMATE

RATIO / PRELIMINARY ESTIMATE +/- 20% Accuracy

COST OF MAJOR EQUIPMENT
UNLISTED ITEMS / DESIGN GROWTH
FREIGHT

5%
5%

$1,969,375
98,469
98,469
$2,166,313

TOTAL MAJOR EQUIPMENT

EQUIPMENT INSTALLATION
PIPING
INSTRUMENTATION
ELECTRICAL
SITE WORK
CONCRETE
STEEL
BUILDINGS
PAINTING
INSULATION FIRE PROTECTION
DISMANTLING REPAIRS

9%
25%
25%
20%
10%
20%
10%
10%
5%
7%
3%

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

TOTAL DIRECTS
TOTAL M.E. & BULKS OF A

$5,285,804

EPCM SERVICES 16% of A

OWNER COSTS
SPARE PARTS
VENDOR ASSISTANCE

845,729
200,000
50,000
50,000

TOTAL DIRECTS & INDIRECTS

ESCALATION
CONTINGENCY

3%

$9,551,023
286,531

15%

$9,837,554
1,475,633

TOTAL

$11,313,187

M.E. MULTIPLIER = 5.22 with contingency / 4.99 w / o contingency

10

(7) Paint Manufacturing Facility / Partial Retrofit located in Mid West (2004 Costs)
Constructed on an established operating site with adequate utilities (needing
some modification / upgrading)
Category
Major Equipment (M.E) 89 items

$ Million
14.15

Freight
Setting of M.E. (L&M)
Demolition (L&M)
Asbestos removal (L&M)
Site Preparation (L&M)
C/S/A (L&M)
Existing Pipe modifications (L&M)
Piping (L&M)
Electrical (L&M)
I/C (L&M)
Insulation (L&M)
Painting (L&M)
Warehouse / Loading Area
Warehouse Racks / Forklifts /
Pallets / Robotic packers
Miscellaneous items (F-P, Spare
Parts, V.A. I/C programming
(L&M)
Utilities / tie ins
Direct Costs
Field Establishment / In Directs
37.5%
Directs + Indirect Costs
Detailed Design (E&P ) 9.7%
CM 3.5%
Total Plant Cost

0.49
0.63
0.64
0.37
0.66
1.88
0.17
6.12
2.53
2.24
0.88
0.52
0.47
0.22

Remarks
757 Design hours /
Per M.E. item

3 floors with siding

0.32
0.58
32.87
12.33
45.20
4.38
1.58
51.16

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
ratios to determine man-hours and material ratios / splits.
Definition of Terms / Nomenclature of Major Accounts
The subsequent listing is an explanation of the significant elements that are
incorporated in the various work disciplines as delineated in the previous Ratio /
Estimating Factor Tables (refer to page 2 & 3 for typical uplift percentages).

Economic climate.
Congested work area / poor site conditions.

11

Hazardous Process / High toxicity.

Location
Percentage split or types of plant i.e. all fluids, 50/50 or 25/75 split of Fluids and
Solids or all Solids.
Corrosive chemicals.
Inclement / bad weather.
Control system.
New Technology / Prototype / Pioneer / First of it type plant.
Revamp / Modifications / Upgrade / Modernization to existing Facility / Plant.
Working inside an ongoing facility, temporary partitions, barricades, shift work,
overtime limited use of construction equipment.
Other considerations, Fast track / Flash track Construction / Modular
Construction / other unique situations.

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 its 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 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

12

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 pre-cast 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 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 buy
out 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

13

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 owners work
force.
Insulation / F.P. / Ref. Insulation / Fireproofing / Refractory Work Scope of work
includes all labor 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.
North American Location Factors
The above four examples can be calibrated to different North American countries, i.e.
USA, Canada and Mexico. The selected multipliers / values determined from examples
(1) through (6) can be adjusted by the following multipliers (location factors), note these
multipliers (location factors) are valid for the year 2009.
Canada 1.03 (Montreal)
Mexico 0.94
USA 1.00 Base Case
For additional international cost data refer to The 2009 Global Construction Cost
Database Yearbook. (85 + countries)

14

SECTION B - 3
SQUARE FOOT / M2 ESTIMATING DATA
& SYSTEMS
Square foot / M2 estimate(s) are valuable when some basic information is known about
the new facility, number of floors may be known i.e. we think 5 floors would meet the
local planning board, number of people using the facility i.e. between 300 and 400
people, plus possibly 50 visitors, however a lot more design information needs to be
determined, finishes, floor to ceiling height, materials of construction, heating / cooling
system etc, all these issues need to be established in the design process, the accuracy
of this estimating method is perhaps in the 15% - 20% range. Square foot / M2
estimating is an excellent front end estimating tool that is widely used in the construction
industry, most Architects, Engineers and related construction professionals have a
decent appreciation of how this estimating technique is utilized, this section of the
database provides 2009 square foot / M2 costs for a variety of industrial and commercial
facilities, these values are current and can be calibrated to a number of overseas
locations if needed, we have also endeavored to assign costs for revamp and
modernization / upgrade of these specific facilities. To set the ground rules of the
estimating method we need to start at the beginning, we are the earliest stages of a
project, no more than 10% of the detailed design drawings and specifications have been
completed or perhaps it is still just a concept in the owners mind a lot of uncertainty
with the future project still exists, we typically know the location(s) i.e. Kutztown,
Pennsylvania or Kabul, Afghanistan, footprint area perhaps has been roughed out,
usable square foot, number of floors are possibly known, number of people that will
populate the building, but there is still a lot of details that have not been nailed down. At
this point (milestone) in the projects life cycle we typically need a budget / cost estimate
particularly during this stage which is many times called, (1) conceptual stage, (2)
programming stage and or (3) schematic / preliminary stage, this is when the critical
design decisions are made that for the most part dictate the future, go, no go verdict and
the economics of the project. In the field of planning and designing a building component
- say, roofing system or the wall system, the Architect / Engineer should judge not only
the quality and performance factors of similar / contending systems, but also their
comparative costs, life expectancy, maintenance costs and schedule implications.
Similar / contending systems in this meaning it does not simply mean the relative unit
costs of dissimilar solutions for the same roofing system. For the Architect / Engineer to
accurately consider the cost ramifications of the for a chosen system, he or she should
know the consequences which each solution will bring to bear on the total cost of the
specific facility / building he or she is planning to design. All the way through this section,
square foot / M2 cost figures are based on North American national averages
calibrated and benchmarked to Washington D.C., adjusted to 2009 pricing levels.
Locality adjustment tables may be used to calibrate these costs to local conditions for
both labor and materials. These square foot / M2 cost values include the usual
contractors markup and profit and therefore represents the anticipated actual total
installed square foot / M2 costs. Additionally, for purposes of cost comparison with
similar buildings / facilities, there are examples of average building / facilities square foot
/ M2 costs are indicated. The values include foundations, substructure, superstructure,
exterior closure, roofing systems, interior construction, elevators etc, mechanical /
electrical systems, special construction, site works specific to the building footprint,

contractors fee and overhead, the square foot / M2 values exclude land purchase,
Architectural fees usually ranging between 4% and 7%. Construction Management fees
usually ranging from 3% - 5% excluding general conditions and owner engineering
services and any significant items outside the building footprint such as parking lots,
landscaping, guard house and fencing.
The information / data and prices included in this section have been compiled from
industry sources considered to be dependable and to be representative of current
market conditions. There is no warranty, or guarantee, as to the accuracy or adequacy
of the cost data indicated, the values indicated are as has been indicated previously
national averages. They are a good starting point in the estimating effort.
Note: Adjustments should be made for applications that fall out side 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 /
M2 price typically gets larger as the building gets smaller.
NEW INDUSTRIAL / COMMERCIAL SQUARE FOOT M2 BUILDING COSTS 2009 COST BASIS
The general approach is to determine the number of floors, footprint of building / facility,
calculate usable square foot area of facility / building, select building type / specification
from list below and multiply by calculated square footage by the appropriate SF/ M2 cost
value. Modify for location by selecting city location factor indicated in Section B - 5. The
following Facility / Building costs are specified by cost model size in S.F. together with
number of floors in U.S. dollars per square foot / M2 by Facility / Building for each
category of building.
Facility / Building Costs

Cost Model
SF

$ Low

$ High

Average $
SF Cost

Average $
M2 Cost

Advanced Chemical Weapons

Laboratory
Agricultural R&D Center

114,000

414

436

425

4,573

72,600

229

239

234

2,518

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

96,000

398

420

409

4,401

30,000

120

151

136

1,463

30,000

110

135

123

1,323

85,000

116

142

129

1,388

85,000

121

148

135

1,453

85,000

117

143

130

1,399

335,000

130

159

145

1,560

335,000

120

146

133

1,431

133,000

393

425

409

4,401

Auditorium 2 Story (Spec A)

45,700

125

153

139

1,496

Auditorium 2 Story (Spec D)

45,700

122

148

135

1,453

Auditorium 2 Story (Spec C)

45,700

117

142

130

1,399

Automobile Production Facility

585,000

101

107

104

1,119

Bakery

615,000

102

108

105

1,130

Bank 1 Story (Spec A)

9,200

150

184

167

1,797

Bank 1 Story (Spec D)

9,200

160

194

177

1,905

Bank 1 Story (Spec C)

9,200

146

179

163

1,754

Biological Manufacturing

340,000

719

763

741

7,973

Bio Medical / R&D Center 3

Floors
Bleach Manufacturing Facility

92,500

349

393

371

3,992

388,000

121

128

125

1,345

Brewery

181,000

102

108

105

1,130

Cable TV Facility

12,700

79

81

80

861

Chemical Process Plants 3

Floors
Computer / Telecommunications
Center 2 Floors
cGMP ISO 6 - 8

56,000

70

80

75

807

27,700

104

117

111

1,194

117,500

926

970

948

10,200

cGMP ISO 7 - 8

88,600

704

747

726

7,812

Dairy / Cheese / Butter

Production
Data Processing Office

74,000

104

111

108

1,162

11,000

111

125

118

1,270

Fiber Production Facility

88,000

109

118

114

1,227

Food Production Facility 2

Floors
GMP Production Facility 80%
ISO 5,6,7 and 8
GMP Production Facility 60%
ISO 5,6,7 and 8
GMP Production Facility 60%
ISO 6,7,and 8
GMP Production Facility 50%
ISO 7 and 8
GMP Production Unclassified 2
Floors
Heavy Manufacturing Facility

73,000

100

106

103

1,108

137,000

926

970

948

10,200

137,000

883

910

897

9,652

137,000

654

687

671

7,220

137,000

528

578

553

5,950

137,000

169

212

191

2,055

40,000

89

95

92

990

Hospital 2 - 4 Story (Spec A)

166,700

198

243

221

2,378

Hospital 2 - 4 Story (Spec D)

166,700

195

238

217

2,335

Hospital 2 - 4 Story (Spec H)

166,700

203

248

226

2,432

Hospital 5 - 10 Story (Spec A)

333,600

195

238

217

2,335

Hospital 5 - 10 Story (Spec D)

333,600

192

234

213

2,292

Hospital 5 - 10 Story (Spec H)

333,600

200

244

222

2,389

Hotel 3 -5 story (Spec H)

201,750

126

154

140

1,506

Hotel 3 -5 story (Spec A)

201,750

122

149

136

1,463

Hotel 3 -5 story (Spec D)

201,750

119

145

132

1,420

Hotel 5 -20 story (Spec H)

742,600

122

149

136

1,463

Hotel 3 -5 story (Spec A)

742,600

119

145

132

1,420

Hotel 3 -5 story (Spec D)

742,600

114

141

128

1,377

Lithographic Line

44,000

106

118

112

1,205

Livestock / Agricultural
Research Station
Manufacturing Light

26,000

146

154

150

1,614

32,000

75

81

78

839

Manufacturing Facility 1 Floor

(Spec E)
Manufacturing Facility 1 Floor
(Spec D)
Manufacturing Facility 1 Floor

69,400

79

97

88

947

69,400

78

95

87

936

69,400

82

100

91

979

(Spec A)
Manufacturing Facility 1 Floor
(Spec F)
Manufacturing Facility 1 Floor
(Spec C)
Manufacturing Facility 2 - 3
Floor (Spec E)
Manufacturing Facility 2 - 3
Floor (Spec D)
Manufacturing Facility 2 - 3
Floor (Spec A)
Manufacturing Facility 2 - 3
Floor (Spec F)
Manufacturing Facility 2 - 3
Floor (Spec C)
Micro Chip / Satellite
Manufacturing Facility
Nanoscale Science Laboratory

69,400

74

89

82

882

69,400

77

95

86

925

108,600

82

100

91

979

108,600

81

99

90

968

108,600

85

103

94

1,011

108,600

77

93

85

915

108,600

80

98

89

958

163,000

321

354

338

3,637

98,500

256

299

278

2,991

Office 5 - 20 Floors (Shell only

no fit out)
Office 1 - 3 Story (Spec A)

285,000

121

139

130

1,399

37,370

118

144

131

1,410

Office 1 - 3 Story (Spec I)

37,370

112

138

125

1,345

Office 1 - 3 Story (Spec C)

37,370

117

143

130

1,399

Office 1 - 3 Story (Spec D)

37,370

113

139

126

1,356

Office 4 - 8 Story (Spec A)

157,800

114

140

127

1,367

Office 4 - 8 Story (Spec I)

157,800

109

133

121

1,302

Office 4 - 8 Story (Spec C)

157,800

113

139

126

1,356

Office 4 - 38 Story (Spec D)

157,800

110

134

122

1,313

Paper Production

106,000

101

107

104

1,119

Parking Garage 3 - 5 Floors

(Spec D)
Parking Garage 3 - 5 Floors
(Spec A)
Parking Garage underground 2
Floors (Spec G)
Pharmaceutical Development
Facility
Pharmaceutical / Medical Device
Facility
R&D / Pilot Plant ISO 7 and 8

255,600

47

58

53

570

255,600

44

55

50

538

67,800

62

76

69

742

78,000

371

398

385

4,143

51,000

589

632

611

6,574

121,500

441

462

452

4,864

Refrigerated Warehouses

54,000

102

104

103

1,108

Research Laboratory (Basic

Research) 2 Floors
Research Center Auto / Jet
Engine Testing
Tire Manufacturing Facility

62,000

167

183

175

1,883

64,000

163

169

166

1,786

73,000

124

127

126

1,356

Toner Production 2 Floors

98,800

103

108

106

1,141

Toxicology Research Laboratory

4 Floors
University Research Medical
Facility 9 Floors
University / Biomedical
Genomics
University Class Rooms 2 - 4
Floors (Spec A)
University Class Rooms 2 - 4
Floors (Spec C)
University Class Rooms 2 - 4
Floors (Spec D)
University Dormitory 3 - 5 Floors
(Spec A)

122,000

354

376

365

3,927

345,400

643

681

662

7,123

237,500

371

398

385

4,143

105,700

130

160

145

1,560

105,700

125

152

139

1,496

105,700

133

163

148

1,592

123,700

124

151

138

1,485

University Dormitory 3 - 5 Floors

(Spec C)
University Dormitory 3 - 5 Floors
(Spec D)
University Laboratory 1 - 2
Floors (Spec A)
University Laboratory 1 - 2
Floors (Spec C)
University Laboratory 1 - 2
Floors (Spec D)
Warehouse 80% / Office 20% /
Distribution Center
Warehouse 90% / Office 10%
(Spec A)
Warehouse 90% / Office 10%
(Spec F)
Warehouse 90% / Office 10%
(Spec C)
Warehouse 90% / Office 10%
(Spec E)
Warehouse (VL) Logistics
Center

123,700

119

146

133

1,431

123,700

121

148

135

1,453

79,500

135

166

151

1,625

79,500

130

159

145

1,560

79,500

134

164

149

1,603

84,000

63

68

66

710

51,500

71

87

79

850

51,500

66

81

74

796

51,500

69

85

77

829

51,500

67

82

75

807

427,000

63

71

67

721

Specification A Facing with concrete block back-up

Specification B Stucco on concrete block
Specification C Ribbed concrete block
Specification D Pre Cast concrete panels
Specification E Insulated metal panels
Specification F Tilt-up concrete panels
Specification G R.C. frame cast on site
Specification H Curtain wall / metal & glass panels
Specification I EIFS / Dryvit wall panels

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, the data indicated below
hopefully will assist in determining the cost of new and revamp construction projects
specific to Hi-tech / manufacturing type facilities. The definition of revamp in this
instance includes:

Rehabilitate / repair / remodel.

Update / renovate.
Refurbish / raze / gut.
Refurbish with an add on new facility.

A word of warning it is not always cheaper to renovate an existing facility, it is sometimes

more cost effective to design and build a new facility, an economic of the proposed
revamped facility should take place to determined the cost differential of revamped Vs
new. Consider trying to renovate a 30 50 year old manufacturing facility in a downtown
area of a major city, traffic, problems, delivering materials and equipment, lifting heavy
items of the equipment into the proposed facility and other specific construction logistical
problems can cause the construction cost to increase.
New Construction and Revamp Construction Capital Cost Estimating Factors /
Calibrations:
Facility / Building Costs New Vs Revamped / Upgraded (values include A/E costs, CM
costs, they exclude land purchase and any owner costs)
A = New Build / Grass roots facility, includes project specific site works, landscaping
and new utilities required.
B = Major Revamp / rehabilitation, assumes that facilities External Enclosure i.e.
external walls, windows, roof (possibly) and structural shell (structural steel or CIP
concrete / floors) can be reused, new services / utilities / life support services will be
required, new internal walls, ceilings and floors required, certain existing items maybe
utilized, stairwells, elevator shafts (use 50% - 85% of A values). Note 1. This 50 85%
could grow to 100% 135% if building remains in operation, building may need to be
completed in phase and temporary offices may need to be established to house current
facility residents.
C = Moderate revamp / rehabilitation. A (considerable to minor revamp / rehabilitation possibly 50% of the buildings will be upgraded) revamp, internal walls floors, utility

services can be saved / utilized to some extent, however new load centers and new
wiring will most probably be needed, ductwork, piping systems over 15 year would most
probably be replaced in this application (use 25% - 50% of A values) refer to note 1
above; building may need to be completed in phases. New or limited laboratory services
may be added (gas, water and power), possibly new ductwork and lighting needs could
be part of this component.
D = Minor Revamp / Superficial facelift (new carpet, some additional internal walls,
additional services / upgrades, some new ceilings, new lobbies, new bathroom fixtures,
complying with ADA (handicap requirements), electrical upgrades / fiber optics and repainting work (paint and scrape), (use 5% - 20% of A values) Assumes building will
remain in operation.
Facility / Building
Costs

Cost
Average Average B / SF C / SF D / SF
Model SF SF $ Cost M2 $
= 0.75
= 0.45
= 0.15
Cost
A

Advanced Chemical
Weapons Laboratory

114,000

425

4574

319

191

64

Agricultural R&D Center

72,600

234

2521

175

105

35

Animal Research / Testing

Facility 2 Floors

96,000

408

4397

307

184

61

Apartments 1 3 Floors
(Spec A)

30,000

135

1457

102

61

20

Apartments 1 3 Floors
(Spec B)

30,000

123

1321

92

56

19

Apartments 3 5 Floors
(Spec C)

85,000

128

1384

97

58

19

Apartments 3 5 Floors
(Spec A)

85,000

134

1449

101

61

20

Apartments 3 5 Floors
(Spec D)

85,000

129

1393

97

58

19

Apartments 5 25 Floors
(Spec D)

335,000

145

1554

109

65

22

Apartments 5 25 Floors
(Spec A)

335,000

132

1425

100

60

20

API Pharmaceutical
Facility

133,000

408

4397

307

184

61

Auditorium 2 Story (Spec

A)

45,700

140

1497

105

63

21

Auditorium 2 Story (Spec

D)

45,700

135

1452

102

61

20

Auditorium 2 Story (Spec

C)

45,700

129

1390

97

58

19

Automobile Production
Facility

585,000

104

1119

78

47

16

Bakery

615,000

105

1132

79

47

16

Bank 1 Story (Spec A)

9,200

167

1798

125

76

25

Bank 1 Story (Spec D)

9,200

177

1905

133

80

26

Bank 1 Story (Spec C)

9,200

162

1743

122

72

24

340,000

741

7975

557

334

111

Biological Manufacturing

Bio Medical / R&D Center

3 Floors

92,500

371

3987

278

167

56

Bleach Manufacturing
Facility

388,000

125

1340

93

57

19

Brewery

181,000

105

1126

79

47

16

Cable TV Facility

12,700

80

856

60

36

12

Chemical Process Plants 3

Floors

56,000

76

810

57

34

12

Computer /
Telecommunications
Center 2 Floors

27,700

110

1184

83

49

17

cGMP ISO 6 - 8

117,500

948

10203

711

426

142

cGMP ISO 7 - 8

88,600

725

7798

544

327

109

Dairy / Cheese / Butter

Production

74,000

107

1155

81

48

16

Data Processing Office

11,000

119

1273

89

54

18

Fiber Production Facility

88,000

113

1220

85

51

17

Food Production Facility 2

Floors

73,000

103

1108

78

46

16

GMP Production Facility

80% ISO 5,6,7 and 8

137,000

948

10203

711

426

142

GMP Production Facility

60% ISO 5,6,7 and 8

137,000

897

9645

673

403

134

GMP Production Facility

60% ISO 6,7,and 8

137,000

670

7212

503

301

101

GMP Production Facility

50% ISO 7 and 8

137,000

553

5951

415

249

83

GMP Production
Unclassified 2 Floors

137,000

191

2053

144

86

28

Heavy Manufacturing
Facility

40,000

92

991

69

42

14

Hospital 2 - 4 Story (Spec

A)

166,700

221

2375

166

100

34

Hospital 2 - 4 Story (Spec

D)

166,700

216

2329

163

98

33

Hospital 2 - 4 Story (Spec

H)

166,700

225

2422

169

101

34

Hospital 5 - 10 Story (Spec

A)

333,600

217

2336

163

98

33

Hospital 5 - 10 Story (Spec

D)

333,600

213

2294

160

96

32

Hospital 5 - 10 Story (Spec

H)

333,600

222

2388

166

100

34

Hotel 3 -5 story (Spec H)

201,750

141

1509

106

63

21

Hotel 3 -5 story (Spec A)

201,750

135

1463

102

61

20

Hotel 3 -5 story (Spec D)

201,750

132

1422

100

60

20

Hotel 5 -20 story (Spec H)

742,600

135

1463

102

61

20

Hotel 3 -5 story (Spec A)

742,600

131

1415

99

59

20

Hotel 3 -5 story (Spec D)

742,600

128

1374

97

58

19

Lithographic Line

44,000

112

1205

84

50

17

Livestock / Agricultural
Research Station

26,000

150

1618

112

67

22

Manufacturing Light

32,000

78

836

59

35

12

Manufacturing Facility 1
Floor (Spec E)

69,400

88

944

66

40

14

Manufacturing Facility 1
Floor (Spec D)

69,400

86

929

65

39

13

Manufacturing Facility 1
Floor (Spec A)

69,400

90

975

68

41

14

Manufacturing Facility 1
Floor (Spec F)

69,400

82

876

62

37

13

Manufacturing Facility 1
Floor (Spec C)

69,400

86

922

65

39

13

Manufacturing Facility 2 - 3
Floor (Spec E)

108,600

91

980

68

41

14

Manufacturing Facility 2 - 3
Floor (Spec D)

108,600

89

964

67

40

14

Manufacturing Facility 2 - 3
Floor (Spec A)

108,600

93

1011

70

42

14

Manufacturing Facility 2 - 3
Floor (Spec F)

108,600

85

911

64

38

13

Manufacturing Facility 2 - 3
Floor (Spec C)

108,600

89

957

67

40

14

Micro Chip / Satellite

Manufacturing Facility

163,000

338

3635

254

152

50

Nanoscale Science
Laboratory

98,500

278

2990

209

125

42

Office 5 - 20 Floors (Shell

only no fit out)

285,000

130

1395

98

59

20

Office 1 - 3 Story (Spec A)

37,370

130

1405

98

59

20

Office 1 - 3 Story (Spec I)

37,370

125

1344

93

57

19

Office 1 - 3 Story (Spec C)

37,370

129

1392

97

58

19

Office 1 - 3 Story (Spec D)

37,370

126

1353

95

57

19

Office 4 - 8 Story (Spec A)

157,800

127

1370

96

57

19

Office 4 - 8 Story (Spec I)

157,800

122

1308

91

55

18

Office 4 - 8 Story (Spec C)

157,800

126

1357

95

57

19

Office 4 - 38 Story (Spec D)

157,800

123

1318

92

56

19

Paper Production

106,000

104

1117

78

47

16

Parking Garage 3 - 5
Floors (Spec D)

255,600

53

561

40

24

Parking Garage 3 - 5
Floors (Spec A)

255,600

49

530

37

22

Parking Garage
underground 2 Floors
(Spec G)

67,800

68

735

51

30

11

Pharmaceutical
Development Facility

78,000

384

4134

289

173

58

Pharmaceutical / Medical
Device Facility

51,000

610

6568

458

274

91

R&D / Pilot Plant ISO 7 and

8

121,500

452

4862

339

204

68

Refrigerated Warehouses

54,000

103

1108

78

46

16

Research Laboratory
(Basic Research) 2 Floors

62,000

175

1883

131

79

26

Research Center Auto / Jet

Engine Testing

64,000

166

1783

125

75

25

Tire Manufacturing Facility

73,000

126

1351

95

57

19

Toner Production 2 Floors

98,800

105

1135

79

47

16

Toxicology Research
Laboratory 4 Floors

122,000

365

3929

274

165

55

University Research
Medical Facility 9 Floors

345,400

663

7124

497

298

100

University / Biomedical
Genomics

237,500

384

4134

289

173

58

University Class Rooms 2 4 Floors (Spec A)

105,700

145

1556

109

65

22

University Class Rooms 2 4 Floors (Spec C)

105,700

139

1494

104

62

21

University Class Rooms 2 4 Floors (Spec D)

105,700

148

1591

111

66

22

University Dormitory 3 - 5
Floors (Spec A)

123,700

138

1481

103

62

21

University Dormitory 3 - 5
Floors (Spec C)

123,700

132

1424

100

60

20

University Dormitory 3 - 5
Floors (Spec D)

123,700

134

1447

101

61

20

University Laboratory 1 - 2
Floors (Spec A)

79,500

151

1623

113

68

23

University Laboratory 1 - 2
Floors (Spec C)

79,500

145

1555

109

65

22

University Laboratory 1 - 2
Floors (Spec D)

79,500

149

1603

112

67

22

Warehouse 80% / Office

20% / Distribution Center

84,000

65

704

49

29

Warehouse 90% / Office

10% (Spec A)

51,500

79

852

59

36

12

Warehouse 90% / Office

10% (Spec F)

51,500

74

792

56

34

12

Warehouse 90% / Office

10% (Spec C)

51,500

77

831

58

35

12

Warehouse 90% / Office

10% (Spec E)

51,500

75

799

56

34

12

Warehouse (VL) Logistics

Center

427,000

67

722

50

30

11

Note: the accuracy of these numbers indicated in columns A, B; C and D are in the 10%
15% range:
AVERAGE BUILDING COSTS BY PERCENTAGE

10

BUILDING TYPE: HEAVY MANUFACTURING BUILDINGS

(2009 Cost Basis):

PERCENTAG
E
BUILDING SYSTEM

FOUNDATIONS
FLOORS ON
GRADE (SOG)
SUPERSTRUCTUR
E
ROOFING
EXTERIOR WALLS
PARTITIONS
WALL FINISHES
FLOOR FINISHES
CEILING FINISHES
CONVEYING
SYSTEMS
SPECIALTIES
FIXED EQUIPMENT
HVAC
PLUMBING
ELECTRICAL
Total

AVERAGE
$ / SF TOTAL

3.2%
9.1%

$3.35
$9.70

19.9%

$9.59

3.8%
10.9%
0.5%
1.8%
4.1%
2.2%
0.0%

$4.03
$11.60
$0.51
$1.92
$4.36
$2.34
$0.00

0.9%
10.3%
9.1%
7.8%
16.4%
100.0%

$0.90
$10.97
$9.69
$8.31
$17.46
$94.73

GROSS BUILDING SF COST (excludes parking areas / and items outside facility footprint and all
Design / CM fees)

11

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
#
Category / Element
$ Cost in millions % of Total Cost Cost per unit
1 General Conditions / Preliminaries (CM
5.592
6.99%
staff)
2 Demolition
0.552
0.69%
3 Excavation for basement
0.629
0.79%
4 Piling / caissons
1.328
1.66%
5 Landscaping / plantings
0.063
0.08%
6 Exterior paving
0.168
0.21%
7 Concrete structure (Concrete frame & P.C.
19.792
24.74%
floors)
8 Structural steel (framing)
0.792
0.99%
9 Steel stairs
0.614
0.77%
10 Carpentry
0.715
0.89%
11 Cabinets / millwork (foyer - lobby)
0.104
0.13%
12 Membrane roof
0.527
0.66%
13 Roofing pavers etc
0.021
0.03%
14 Roof screen
0.225
0.28%
15 Garage doors
0.087
0.11%
16 Doors / frames / lobby entrance
2.448
3.06%
17 Door furniture
0.187
0.23%
18 Caulking
0.153
0.19%
19 Windows / Ext 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 Miscl 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%
$25,505
32 HVAC
5.311
6.64%
$26,555
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%
$32,135
39 Security system / CCTV / Miscellaneous
0.351
0.44%
items
Construction Cost
87.82%
70.266

12

40
41
42
43
44

Insurance
Business Tax
Building permits
Bonding / Surety / Sub guard
CM Fee
Construction Cost + above 5 items
45 A/E Fee (includes MEP and Structural)
Construction Cost A/E fees
Cost per SF

0.842
0.275
0.214
1.175
2.350
75.122
4.890
80.012

1.05%
0.34%
0.27%
1.47%
2.94%
93.89%
6.11%
100.00%

$400,060
$183

Upgrades by tenants not included

8 units per floor 1,200 1,850 SF per unit
Excludes land purchase

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)
Construction category
Concrete paving 4 thick
Bituminous paving / parking 4 thick with 4 stone
Fume Hoods excluding HVAC ductwork
Dock Levelers 6 x 8
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 # Cameras)
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

13

Unit Price
$2.99 / $4.15 SF
$16.70 / $25.94 SY
$777 - $1,901 each
$3,812 to $6,195 each
$546 - $982 each
$462 - $751 each
$0.79 SF
$5.67 SF
$5.57 SF
$13.44 SF
$2.94 SF
$28.77 SF
$38.85 SF
$21.50 SF
$3,990 EACH
$173 EACH
$1,124 EACH
$1,407 EACH
$2,021 EACH
$163 EACH
$903 - $1,827 / LF
$4,641 EACH
$5,381 EACH

SECTION B 4
UNIT PRICE ESTIMATING DATA / INFORMATION
The 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 the nine listings
indicated. Theses unit prices are 2009 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
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

Description

Unit

Material

Labor

Total

(1)
CSI DIVISION 1 / GENERAL CONDITIONS &
DEMOLITION WORK
Superintendent

Month

7,063.80

7,063.80

Field Engineer

Month

6,180.72

6,180.72

Foreman

Month

5,309.20

5,309.20

Timekeeper / Clerk

Month

2,791.36

2,791.36

Planner / Cost Engineer / Office Administrator

Month

6,723.60

6,723.60

Safety Engineer

Month

5,080.40

7
8
9

Demolition, fencing chain link 8 to 12high

Warehouse Supervisor

Month

3,530.80

3,530.80

Secretary

Month

2,620.80

2,620.80

LF

1.96

1.96

TON
SF

67.64
2.58

67.64
2.58

12 Demolition, frame building, two story

SF

1.98

1.98

13 Demolition, frame building, three story

SF

2.26

2.26

14 Demolition, concrete block building, two story

15 Demolition, concrete building, pre cast panel,
frame roof

SF
SF

3.33

6.14
6.62

6.14
9.95

16 Demolition, steel frame building, salvage steel

SF

3.12

11.65

14.77

17 Demolition, remove wall, concrete to 10 thick

reinforced

SF

3.48

3.48

6.97

18 Demolition, remove wall, concrete block,

reinforced

SF

1.98

2.50

4.47

19 Demolition, remove wall, 8 solid brick,

reinforced, grout

SF

1.30

8.84

10.14

20 Demolition, remove built-up roof, on plywood

21 Demolition, remove built-up roof, on concrete
22 Demolition, remove ceiling, plaster/ lath/ frame

SQ
SQ
SF

2.39
2.39
0.07

48.36
46.80
1.77

50.75
49.19
1.84

23 Demolition, remove ceiling, acoustic

suspended grid

SF

0.10

0.52

0.62

24 Demolition, remove concrete foundation, plain

concrete no rebar

CY

62.40

61.36

123.76

25 Demolition, remove concrete foundation, with

rebar

CY

68.64

83.20

151.84

26 Demolition, remove pavement, asphalt /

concrete, short haul, 20,000 to 50,000 SF

SF

0.26

0.14

0.40

27 Demolition, remove pavement, asphalt /

concrete, short haul, over 50,000 SF

SF

0.12

0.06

0.19

28 Demolition, remove pavement, concrete slab,

6 thick, with rebar

SF

0.73

0.73

1.46

29 Demolition, remove pavement, 4 thick

concrete sidewalk

SF

0.59

0.86

1.46

30 Demolition, remove pavement, concrete catch

basin, sump and dry well

EACH

142.00

176.88

318.88

31 Demolition, remove hydrant, with reset thrust

blocks

EACH

161.94

373.68

535.62

32 Demolition, remove 4 dia, storm drain line,

dispose

LF

4.76

5.61

10.37

33 Demolition, remove 4 dia, sanitary line,

dispose

LF

4.76

6.09

10.86

EACH

62.28

268.67

330.95

35 Demolition, structural steel

TON

497.96

497.96

36 Demolition, Mechanical equipment

TON

746.95

746.95

37 Demolition, C S Pipe 2 and below

LF

12.45

12.45

38 Demolition, C S Pipe 2 - 6

LF

20.75

20.75

10 Tipping Fees General Construction Material

11 Demolition, frame building, one story

34 Demolition, Transformer, dry type, 50 KVA

5,080.40

39 Drilling & blasting under 1,000 CY

CY

3.74

7.83

11.58

40 Drilling & blasting under 2,500 CY

CY

3.40

6.35

9.76

41 Drilling & blasting under 5,000 CY

CY

3.07

5.50

8.57

42 Soil & waste remediation / removal

CY

1.41

8.11

9.53

43 Onsite encapsulation

CY

8.62

16.28

24.90

44 C.S. 2,500 gallon & remove piping & backfill

Ea

873.62

1,406.87

2,280.49

45 Ditto 5,000

Ea

1,089.19

2,541.45

3,630.64

46 Ditto 10,000
47 Office Trailer 8 x 20
48 Mob / De-mobilize
49 Office Trailer 10 x 48

Ea

1,384.18

4,197.93

5,582.11

MONTH

276.77

276.77

L/S

549.47

549.47

MONTH

373.48

373.48

50 Mob / De-mobilize

L/S

889.22

889.22

51 Air Compressor 250 CFM Diesel

Day

124.80

124.80

52 Ditto 750 CFM

Day

221.25

221.25

53 Backhoe (JCB)

Day

206.49

206.49

54 Concrete trowel machine 36 dia

Day

83.96

83.96

55 Crane Tower 200 high 125 Radius 10,000 lift

Day

836.18

836.18

56 Gunite / concrete pumping skid 20 CY / Hour

Day

375.00

375.00

57 Concrete Pump (truck mounted) Putzmeister

115 CY / hour
58 Ditto 200 CY / Hour

Hour

97.00

97.50

Hour

115.00

115.00

59 Hydra crane Terex 15 Ton

Hour

73.00

73.00

60 Ditto 30 Ton

Hour

84.00

84.00

61 Ditto 60 Ton

Hour

103.00

103.00

62 Ditto 100 ton (Grove)

Hour

241.00

241.00

63 Ditto 150 ton

Hour

323.00

323.00

64 Gradall 0.5 CY

Hour

59.00

59.00

65 Ditto 1.25 CY

Hour

102.00

102.00

66 Trencher Chain 15

Hour

12.00

12.00

67 Ready mix concrete truck 10 CY / 7.5 M3

Hour

68 Ditto 12 CY / 9 M3

Hour

69 Ditto 14 CY / 11 M3

Hour

82.00

82.00

90200

90200

102.00

102.00

70 Bulldozer 50 kw

Day

452.40

452.40

71 Ditto 75 kw

Day

483.60

483.60

72 Ditto 100 kw

Day

608.40

608.40

73 Dump truck 65 T

Day

1,294.80

1,294.80

74 Dozer 150 HP

Day

697.77

697.77

75 F.E. loader 2.5 CY

Day

334.70

334.70

76 Truck P.U. 0.50 Ton

Day

102.11

102.11

77 Ditto 1.50 Ton

Day

146.36

146.36

78 Ditto Dump 15 Ton

Day

414.13

414.13

79 Forklift 3,000 pound 12 lift

Day

178.13

178.13

80 Roller Tandem 36 wide

Day

136.15

136.15

81 Welding machine diesel 250 Amps

Day

104.37

104.37

82 Bobcat skid steer loader

Day

228.80

228.80

83 Hydraulic hammers 780 Case rubber tire

Day

576.80

576.80

84 Hydraulic crane, truck mounted 10 T with

outriggers
85 Ditto 15 T

Day

546.00

546.00

Day

613.60

613.60

86 Ditto 25 T

Day

712.00

712.00

87 Ditto 50 T

Day

764.40

764.40

88 Ditto 75 T

Day

868.40

868.40

89 Concrete finisher, gas 750 mm diameter

Day

80.08

80.08

90 Ditto 1.00 M diameter

Day

98.80

98.80

91 Hoist, electric- attached to building 50 high

1,500 pounds capacity
92 Ditto 100 2,000 pounds

Day

525.00

525.00

Day

750.00

750.00

93 Ditto 150 5,000 pounds

Day

1,235.00

1,235.00

94 Demolition of plain concrete 75 mm thick at

grade
95 Demolition of plain concrete 100 mm thick ditto

M2

5.18

6.53

11.71

M2

6.75

8.04

14.79

96 Demolition of plain concrete 150 mm thick ditto

M2

9.50

9.77

19.26

97 Demolition of reinf, concrete 75 mm thick ditto

M2

9.88

12.37

22.25

98 Demolition of reinf, concrete 100 mm thick ditto

M2

12.10

15.33

27.42

99 Demolition of reinf, concrete 150 mm thick ditto

M2

15.01

18.68

33.69

100 Demolition of reinf, concrete 150 mm thick

suspended floor

M2

11.49

11.76

23.25

Description

Unit

Material

Labor

Total

(2)
CSI DIVISION 2 / SITE CONSTRUCTION
WORK
Clear & grub, brush and disposal

SF

0.12

0.15

0.27

Strip and stockpile 6 deep

CY

2.07

1.39

3.46

Rough grade machine

SF

0.06

0.07

0.13

Fine grade machine

SF

0.07

0.22

0.29

6 diameter 15 high

Each

22.69

141.82

164.52

8 diameter 20 high

Each

28.37

215.57

243.94

10 diameter 25 high

Each

39.72

323.36

363.07

12 diameter 30 high

Each

51.06

453.84

504.90

24 diameter 50 high

Each

62.41

663.73

726.14

CY

1.37

1.37

CY

1.05

1.05

10 N/E 100,000 CY By Pan or FE. Loader (in spoil

heaps)
11 N/E 250,000 CY ditto
12 N/E 500,000 CY ditto

CY

0.92

0.92

13 Disposal of excavation n/e 2.5 miles

CY

0.51

2.66

3.17

14 Site, cut and fill, earth.

CY

2.93

2.04

4.97

15 Engineered fill, imported one mile

CY

18.69

1.24

19.93

16 Engineered fill, imported two mile

CY

21.17

1.24

22.41

17 Engineered fill, imported three mile

CY

23.66

1.24

24.90

18 Engineered fill, compaction, by roller

CY

0.94

1.05

1.99

19 Engineered fill, compaction, by sheeps foot

CY

1.23

1.26

2.49

20 Engineered fill, dozer spread, no material

CY

0.70

0.61

1.31

21 Backfill, machine, no compaction

CY

4.13

10.31

14.44

22 Backfill, hand, no compaction

CY

7.17

17.48

24.65

23 Pavement, asphalt, driveway, 2 thick, 4 base

SF

1.10

1.36

2.46

24 Pavement, asphalt, parking lot, 2 thick, 6

base

SF

1.36

1.57

2.93

25 Pavement, asphalt, street, 3 thick, 8 base, 10

sub-base

SF

2.10

2.93

5.03

26 Add or deduct for each additional 1 of base

rock

SF

0.16

0.16

27 Add or deduct for each additional 1 of asphalt /

concrete

SF

0.51

0.51

28 Pavement, concrete, driveway, 2 thick, 4 base

SF

1.68

2.29

3.97

29 Pavement, concrete, truck & ramp, 3 thick, 8

base

SF

2.37

3.36

5.73

EACH

20.81

13.95

34.76

31 Curb and gutter, 4 sidewalk, mono

LF

24.29

10.21

34.51

32 Brick paving, sand bed, 1 compact

SF

2.87

4.74

7.61

30 Bumper block, parking, pre cast, 3 long

33 Underground service, concrete encased, 100

Amp, 600 V, 4-THHN #2 copper wire, grounded

LF

20.49

8.87

29.36

34 Underground service, concrete encased, 400

Amp, 600 V, 3-500MCM copper wire, grounded

LF

45.51

14.88

60.39

35 Underground service, fiber conduit, 300 Amp,

600 V, 4-THHN 350 MCM copper wire,
grounded

LF

31.54

19.35

50.90

36 Underground service, rigid steel conduit, 100

Amp, 600 V, 4-THHN #2 copper wire

LF

18.95

16.98

35.93

37 Utility pole, with transformer, 250 KVA

EACH

19,618.58

9,030.78

28,649.36

38 Utility pole, with transformer, 100 KVA,

EACH

6,788.65

7,137.43

13,926.08

39 Site drainage, under drain, 4 pvc pipe

LF

9.13

21.06

30.19

40 Site drainage, under drain, 6 pvc pipe

LF

10.21

21.83

32.04

41 Site drainage, under drain, 10 pvc pipe

LF

12.21

23.05

35.26

42 Sanitary sewer, cast iron pipe, 4 diameter

LF

13.79

15.22

29.01

43 Sanitary sewer, cast iron pipe, 6 diameter

LF

23.94

20.75

44.69

44 Sanitary sewer, cast iron pipe, 10 diameter

LF

60.29

25.65

85.94

45 Storm drainage, reinforced concrete pipe, 12

diameter

LF

19.30

22.31

41.61

46 Storm drainage, reinforced concrete pipe, 15

diameter

LF

27.78

26.41

54.18

47 Storm drainage, reinforced concrete pipe, 18

diameter

LF

33.35

32.75

66.10

48 Storm drainage, reinforced concrete pipe, 36

diameter

LF

98.40

55.92

154.33

49 Storm drainage, corrugated metal pipe, 8

diameter

LF

9.34

14.82

24.16

50 Storm drainage, corrugated metal pipe, 15

diameter

LF

11.86

19.52

31.38

51 Sanitary sewer, PVC pipe, 4 diameter

LF

4.86

17.83

22.68

52 Sanitary sewer, PVC pipe, 8 diameter

LF

7.17

20.05

27.22

53 Sanitary sewer, PVC pipe, 12 diameter

LF

14.21

122.49

136.70

54 Water service, copper pipe, 2 diameter

LF

12.84

15.33

28.17

55 Water service, copper pipe, 3 diameter

LF

27.64

17.67

45.31

56 Water service, copper pipe, 4 diameter

LF

39.36

16.43

55.80

57 Water service, PVC MUNI C900, 4 diameter

LF

12.30

12.59

24.90

58 Water service, PVC MUNI C900, 6 diameter

LF

14.71

13.95

28.65

59 Water service, ductile iron pipe, 4 diameter

LF

27.26

17.58

44.83

60 Water service, ductile iron pipe, 6 diameter

LF

34.26

23.55

57.80

61 Gas/ Steam service, black steel pipe, wrapped,

1 diameter

LF

7.20

13.45

20.64

62 Gas/ Steam service, black steel pipe, wrapped,

2 diameter

LF

17.69

17.08

34.77

63 Catch basin, with grate, 2X 2 X 4

EACH

616.58

617.21

1,233.79

64 Manhole, with lid 4 diameter X 6-8 deep

EACH

1,382.65

847.03

2,229.68

65 Fuel storage tank, underground, 1000 gallon

EACH

11,626.05

760.08

12,386.13

66 Hand excavation loose material

CY

5.11

30.64

35.74

67 Ditto medium material

CY

5.11

41.98

47.09

68 Ditto hard material

CY

5.11

51.06

56.17

69 Hand backfilling

CY

2.84

18.19

21.03

70 Underpinning foundation by hand

CY

11.35

255.29

266.64

71 Site lighting, underground wire, 30 pole,

mercury vapor, 175 watt.
72 Light pole, steel. 25 high, 1 arm bracket

EACH

1,370.18

1,993.00

3,363.18

EACH

1,007.49

781.56

1,789.05

73 Light pole, steel, 30 high, 1 arm bracket

EACH

1,343.33

1,001.38

2,344.71

74 Light pole, aluminum, 25 high, 1 arm bracket

EACH

1,013.59

842.63

1,856.22

75 Light pole, aluminum, 30 high, 1 arm bracket

EACH

1,599.77

1,025.80

2,625.57

76 Ground Rod / Copper Spike

EACH

20.46

49.80

70.25

77 Lightning Arrestor Pole mounted

EACH

29.05

124.50

153.55

78 Area N/E 50,000 SF

SF

0.04

0.23

0.27

79 Area N/E 150,000 SF

SF

0.03

0.22

0.25

80 Hydro seeding Area N/E 250,000 SF

SF

0.04

0.19

0.23

81 Track work 48

LF

31.54

48.22

79.77

82 Stone / Ballast

CY

16.73

10.77

27.51

83 Excavate by m/c to reduced levels n/e 1 m &

deposit on site
84 Ditto & remove from site n/e 5 miles

M3

5.27

9.58

14.85

M3

5.44

18.97

24.41

M3

6.44

9.60

16.04

M3

6.53

19.31

25.84

M3

6.14

11.61

17.74

M3

6.35

20.48

26.83

M3

8.04

12.84

20.88

M3

8.04

10.69

18.73

91 Ditto reinf concrete

M3

12.15

12.57

24.72

92 Ditto masonry (brick & block work)

M3

9.22

9.17

18.40

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

M3

4.91

13.87

18.78

M3

19.16

18.19

37.35

M3

20.35

19.38

39.73

M3

9.44

10.36

19.80

M2

23.48

6.80

30.28

M2

27.58

7.45

35.03

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

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

M2

28.98

8.90

37.89

M2

31.95

5.14

37.09

M2

36.43

6.85

43.28

Description

Unit

Material

Labor

Total

(3)
CSI DIVISION 2 & 3 FOUNDATIONS / U.G.
WORK
Compaction of excavated material

CY

1.44

2.54

3.97

Ditto to 95%

CY

2.88

3.09

5.97

Excavate trench 3 wide n/e 5 deep and backfill

(includes P & S)

CY

4.08

8.88

12.96

Excavate trench 4 wide n/e 10 deep and

backfill (includes P & S)

CY

5.44

9.76

15.20

Excavate trench 5 wide n/e 15 deep and

backfill (includes P & S)

CY

6.59

11.05

17.64

Piles, pre cast concrete, square 10

LF

14.59

14.05

28.64

Piles, pre cast concrete, square 12

LF

17.28

15.49

32.77

Piles, pre cast concrete, square 18

LF

17.69

15.24

32.93

Piles, steel H section, 10

LF

35.22

17.56

52.78

10 Piles, pipe, 12, concrete filled

LF

15.55

17.59

33.13

11 Piles, wood, untreated to 40

LF

6.59

11.66

18.25

12 12 diameter x 10 long with rebar, no casing

EACH

86.08

209.30

295.38

13 18 diameter x 20 long with rebar, no casing

EACH

212.33

480.80

693.13

14 24 diameter x 30 long with rebar, no casing

EACH

556.64

808.88

1,365.52

15 36 diameter x 40 long with rebar, no casing

EACH

1,859.26

1,606.44

3,465.70

16 48 diameter x 50 long with rebar, no casing

EACH

3,672.61

2,737.74

6,410.35

17 3 Bit paving on 6 crusher run 16 wide

LF

42.46

44.12

86.58

18 4 ditto 24 wide

LF

55.09

70.14

125.23

19 Planking & Strutting to trench

SF

0.63

1.35

1.99

20 Sheet piling (20 uses)

SF

0.92

1.98

2.89

21 Sheet piling (Left in place)

SF

16.53

5.94

22.46

22 Reinforced concrete foundations, including

excavation by machine, b/f, concrete, rebar and
formwork, 3,000 psi. 2 x 2 x 1
23 Ditto 3 x 3 x 2 including excavation by
machine, b/f, concrete, rebar and formwork,
3,000 psi.

EACH

37.44

24.96

62.40

EACH

158.08

104.00

262.08

24 Ditto 3 x 3 x 3 including excavation by

machine, b/f, concrete, rebar and formwork,
3,000 psi.
25 Ditto 4 x 4 x 2 including excavation by
machine, b/f, concrete, rebar and formwork,
3,000 psi.
26 Ditto 5 x 5 x 2 including excavation by
machine, b/f, concrete, rebar and formwork,
3,000 psi.
27 Ditto 6 x 6 x 2 including excavation by
machine, b/f, concrete, rebar and formwork,
3,000 psi.
28 Ditto 8 x 8 x 3 including excavation by
machine, b/f, concrete, rebar and formwork,
3,000 psi.

EACH

237.12

156.00

393.12

EACH

278.72

187.20

465.92

EACH

440.96

291.20

732.16

EACH

790.40

520.00

1,310.40

EACH

1,684.80

1,110.78

2,795.58

29 Ditto 10 x 10 x 3

EACH

2,246.40

1,497.60

3,744.00

30 Foundation, underpinning, 5 deep, (machine

excavation tremi - hand packed concrete

LF

258.23

333.74

591.97

31 Foundation, underpinning, 10 deep, (machine

excavation tremi - hand packed concrete

LF

350.05

412.93

762.99

32 Concrete 3,000 PSI reinforced in 4 thick wall

above and below grade

SF

6.28

3.91

10.19

33 Concrete 3,000 PSI reinforced in 6 thick wall

above and below grade

SF

7.74

4.59

12.32

34 Concrete 3,000 PSI reinforced in 8 thick wall

above and below grade

SF

8.55

5.17

13.72

35 Concrete 3,000 PSI reinforced in 10 thick wall

above and below grade

SF

9.69

6.56

16.26

36 Concrete 3,000 PSI reinforced in 12 thick wall

above and below grade

SF

10.39

7.40

17.79

37 8 CMU wall (with reinforcing wire and doweled

to foundation in 1- 3 struck joint)

SF

4.71

4.47

9.18

38 10 CMU wall ditto

SF

5.99

5.43

11.42

39 12 CMU wall ditto

SF

7.18

6.27

13.45

40 Bituminous paint rolled on in 2 applications

SF

0.19

1.15

1.34

41 Waterproofing, hot bitumen coatings, vertical

surfaces, walls, per coat

SF

0.12

0.96

1.08

42 Waterproofing, hot coating, vertical surfaces,

hot mop, 30# felt, 2 ply

SF

0.35

1.29

1.64

43 Waterproofing, cold application, verticals,

waterproof, 1/16 neoprene sheet

SF

0.97

1.40

2.37

44 Waterproofing, emulsion, verticals, waterproof,

asphalt paint, brush/coat

SF

0.18

0.45

0.62

45 Waterproofing, emulsion, vertical, waterproof,

silicone, spray, 2 coat finish

SF

0.30

0.38

0.69

46 Under drain, corrugated polyethylene pipe,

perforated, 3 diameter

LF

0.36

7.04

7.40

47 Under drain, corrugated polyethylene pipe,

perforated, 4 diameter

LF

0.62

7.34

7.97

48 Under drain, corrugated polyethylene pipe,

perforated, 6 diameter

LF

1.16

7.70

8.86

49 Under drain, corrugated polyethylene pipe,

perforated, 12 diameter

LF

5.64

8.36

14.00

50 Slab on grade, reinforced concrete, 4 thick

SF

1.89

2.25

4.14

51 Slab on grade, reinforced concrete, 5 thick

SF

1.97

2.28

4.24

52 Slab on grade, reinforced concrete, 6 thick

SF

2.37

2.37

4.74

53 Slab on grade, reinforced concrete, 8 thick

SF

3.37

4.48

7.85

54 Slab on grade, reinforced concrete, 10 thick

SF

4.01

4.89

8.90

55 Slab on grade, reinforced concrete, 12 thick

SF

4.26

5.29

9.56

56 Topping concrete on existing SOG

SF

1.50

1.62

3.12

10

57 Slab topping / screed 1

SF

1.32

0.62

1.94

58 Ditto 2

SF

1.66

0.73

2.39

59 Reinforced concrete 3000 psi 20 mm

aggregate in foundations
60 Ditto in ground beams

M3

82.50

59.47

141.97

M3

82.23

66.04

148.27

61 Ditto in isolated foundations

M3

82.23

64.85

147.09

62 Ditto in slab on grade 150 mm thick excludes

excavation and stone sub base
63 Ditto in elevated slab 150 mm thick

M3

79.11

58.34

137.46

M3

84.91

70.08

154.98

64 Ditto in walls n/e 250 mm thick

M3

85.29

71.36

156.66

65 Ditto in columns aver 300 x 300 mm

M3

91.24

75.57

166.81

66 Ditto in staircases

M3

95.88

94.94

190.82

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

M2

6.28

29.65

35.93

M2

7.48

31.70

39.18

M2

8.68

36.55

45.23

M2

1.91

1.68

3.60

631.18

502.68

1,133.86

614.26

360.60

974.85

71 Fabricate & install 10 mm dia steel rebar

72 Fabricate & install 25 mm dia steel rebar

M3

73 All-in rate for reinforced concrete including

concrete, rebar and formwork minimum
(excludes excavation)
74 Ditto maximum

265.00
M3

11

895.00

Unit

Material

Labor

Total

(4)
CSI DIVISION 3, 4 & 5 STRUCTURAL
ELEMENTS / WALLS / FLOORS
STRUCTURAL STEEL FRAMING (100
1,000 TON)
Offices 1 3 floors

Description

Ton

2,166.28

459.51

2,625.79

Factory / Manufacturing Facility

Ton

2,166.28

459.51

2,625.79

Hi-Rise Building 5 10 floors

Ton

2,166.28

574.39

2,740.67

3 metal decking ribbed 20 g

SF

7.15

1.28

8.43

Ditto 18 g

SF

8.35

1.37

9.72

Ditto 16 g

SF

9.47

1.50

10.97

10 L B wall

SF

5.54

6.03

11.58

Ditto 12

SF

6.06

6.67

12.73

Ditto 14

SF

7.51

8.43

15.94

10 Flat 4 thick (PCCWS)

SF

5.90

4.85

10.75

11 Ditto 6 (PCCWS)

SF

7.51

5.17

12.68

12 Ditto 8 (PCCWS)

SF

13.23

6.26

19.49

13 Exposed aggregate face 4 thick (PCCWS)

SF

7.74

4.82

12.55

14 Ditto 6 (PCCWS)

SF

9.12

5.17

14.29

15 Ditto 8 (PCCWS)

SF

12.20

6.26

18.46

16 Ribbed finish 4 thick (PCCWS)

SF

13.86

5.28

19.15

17 Ditto 6 (PCCWS)

SF

15.94

5.51

21.46

18 Ditto 8 (PCCWS)

SF

20.57

6.83

27.40

19 Concrete reinforced (Tilt up wall panels) 4

thick
20 Ditto 6 thick

SF

3.30

5.35

8.64

SF

4.33

6.15

10.47

21 Ribbed Concrete block wall in 1-3 Cement

mortar 8 wide
22 Ditto 10 wide

SF

7.22

8.25

15.47

SF

8.03

9.83

17.86

23 6 thick

SF

13.77

14.36

28.13

24 8 thick

SF

14.90

15.85

30.75

25 Concrete Column, cast in place, round, 12

diameter

LF

25.62

26.61

52.23

26 Concrete Column, cast in place, round, 14

diameter

LF

30.83

27.80

58.62

27 Concrete Column, cast in place, round, 18

diameter

LF

40.57

37.54

78.11

28 Concrete Column, cast in place, square,

10X10

LF

15.46

102.17

117.63

29 Concrete Column, cast in place, square,

12X12

LF

19.93

115.43

135.36

30 Column, Pre cast concrete, 12X12

LF

60.22

10.76

70.98

31 Column, Pre cast concrete, 14X14

LF

84.54

14.14

98.69

32 Column, Pre cast concrete, 16X16

LF

99.52

17.46

116.98

33 Steel column, wide flange, W6x20#

LF

20.75

9.12

29.87

12

34 Steel column, wide flange, W8x24#

LF

23.34

10.46

33.80

35 Steel column, wide flange, W10x45#

LF

37.33

14.88

52.21

36 Steel column, wide flange, W12x72#

LF

65.45

22.27

87.71

37 Steel column, pipe, 3 diameter

LF

16.12

7.73

23.85

38 Steel column, pipe 4 diameter

LF

19.75

9.19

28.94

39 Steel column, pipe, concrete filled, 3 diameter

40 Steel column, pipe, concrete filled, 4 diameter

LF
LF

16.73
20.18

8.14
10.09

24.88
30.26

41 Steel column, square tube, 6

LF

28.15

9.52

37.67

42 Steel column, square tube, concrete filled, 6

43 Wood column, 4x4 post

LF
LF

29.05
2.63

10.15
6.13

39.20
8.76

44 Wood column, 6x6 post

LF

5.34

13.44

18.77

45 Wood column, 8x8 post

LF

10.50

16.27

26.77

46 Wood column, 12x12 post

LF

21.66

36.20

57.87

47 Concrete beams & girders, cast in place,

12x24

LF

36.51

133.22

169.74

48 Concrete beams & girders, cast in place,

18x24

LF

52.42

186.05

238.46

49 Concrete beams & girders, pre cast,

rectangular, 12x24

LF

44.64

7.10

51.74

50 Concrete beams & girders, pre cast,

rectangular, 18x24

LF

68.09

11.53

79.62

51 Concrete beams & girders, pre cast, inverted

tee, 12x24

LF

51.93

8.57

60.50

52 Steel beams & girders, wide flange, W6x20#

LF

17.06

7.86

24.92

53 Steel beams & girders, wide flange, W10x45#

LF

27.96

13.62

41.58

54 Steel beams & girders, wide flange, W12x72#

LF

44.76

21.81

66.57

55 Wood beams & girder, 4x4

LF

2.51

5.61

8.11

56 Wood beams & girder, 4x4

LF

5.01

9.56

14.57

57 Wood beams & girder, 4x4

LF

8.92

15.93

24.86

58 Wood beams & girder, 4x4

LF

20.21

36.07

56.27

59 Floor, cast in place, slab, one way beams, with

topping, 6 thick

SF

5.26

7.92

13.19

60 Floor, cast in place, slab, one way beams, with

topping, 8 thick

SF

7.24

10.76

18.00

61 Floor, cast in place, slab, two way beams, with

topping, 6 thick

SF

6.53

9.74

16.28

62 Floor, cast in place, slab, two way beams, with

topping, 10 thick

SF

10.72

15.77

26.49

63 Floor, cast in place, slab, on metal form,

topping, 6 thick

SF

4.88

7.28

12.16

64 Floor, cast in place, slab, on metal form,

topping, 8 thick

SF

6.38

9.55

15.92

65 Floor, cast in place, waffle slab, 20 square

pan, 4-1/2 thick, 6x12 joist

SF

7.90

11.55

19.46

66 Floor, pre cast concrete, single tees, with

topping

SF

9.06

4.36

13.42

13

67 Floor, pre cast concrete, plank, with topping, 6

solid

SF

5.03

2.44

7.48

68 Floor, pre cast concrete, hollow plank, with

topping, 6 thick

SF

4.93

2.24

7.17

69 Floor, pre cast concrete, hollow plank, with

topping, 10 thick

SF

5.64

2.83

8.47

70 Floor, concrete on metal deck, open web steel

joists, 40 PSF load

SF

5.41

3.19

8.60

71 Floor, concrete on metal deck, open web steel

joists, 125 PSF load

SF

7.22

3.99

11.21

72 Floor, concrete slab, steel beam and deck, 125

PSF load

SF

11.34

5.63

16.96

73 Floor, wood, plywood, 2x6 joists 16 OC

SF

2.09

2.09

4.18

74 Floor, wood, plywood, 2x12 joists 16 OC

SF

3.15

3.10

6.25

75 Roof, metal deck, open web steel joists, 20

span

SF

2.74

1.11

3.85

76 Roof, metal deck, open web steel joists, 40

span

SF

4.45

1.59

6.04

77 Roof, plywood, 2x6 wood rafters 24 OC flat

78 Roof, plywood, 2x6 wood rafters 24 OC
sloping

SF
SF

1.57
1.72

4.21
4.48

5.78
6.20

79 Elastomeric membrane on insulation (excludes

insulation)
80 Corrugated galvanized metal 20 g

SF

1.33

1.42

2.76

SF

1.90

2.01

3.91

81 3 layer built up roof on insulated sloping roof

SF

1.70

1.79

3.48

82 3 layer built up roof on lightweight concrete

sloping roof
83 Monolithic topping, 1/4

SF

1.79

1.92

3.71

SF

0.12

1.37

1.50

84 Monolithic topping, 1/2

SF

0.47

1.32

1.79

85 Hardener, chemical

SF

0.25

0.07

0.32

86 Hardener, iron floor base

SF

0.30

0.47

0.77

87 Fireproofing, columns, sprayed fiber, 1-1/4, no

finish

SYCA

10.10

20.54

30.64

88 Fireproof, metal deck, sprayed fiber, , no

finish

SYCA

7.22

13.25

20.47

89 Fireproof, columns, 1 hour, furring, lath &

plaster, painted

LF

24.38

57.02

81.40

90 Fireproof, columns, 2 hour, furring, lath &

plaster, painted

LF

26.99

66.40

93.39

91 Color additives to concrete slabs

SF
SF
SF
CF

0.06

0.58

0.64

0.04

0.24

0.28

0.16

0.45

0.60

5.06

21.31

26.37

95 Concrete Wall, cast in place, cut & patch, 8

high, 6 thick

SF

5.79

13.72

19.51

96 Concrete Wall, cast in place, cut & patch, 8

high, 10 thick

SF

8.16

15.81

23.97

97 Concrete Wall, cast in place, cut & patch, 12

high, 6 thick

SF

6.93

14.38

21.31

92 Epoxy Hardener / Urethane

93 Acid wash and paint floor
94 Non shrink grout

14

98 Concrete Wall, cast in place, cut & patch, 12

high, 12 thick

SF

10.71

16.23

26.95

99 Finish Add, one side, concrete wall, cast in

place, sandblast, light

SF

0.19

1.01

1.20

100 Finish Add, one side, concrete wall, cast in

place, sandblast, heavy

SF

0.50

1.63

2.13

101 Finish Add, one side, concrete wall, cast in

place, bush hammer, heavy

SF

1.99

3.46

5.45

102 Tilt-up, concrete wall, with pilasters, 6 thick

SF

4.28

7.07

11.36

103 Pre cast concrete panel, single form

SF

15.98

8.58

24.56

104 Concrete Block, 8x16, reinforced, 4 thick

SF

4.70

5.19

9.89

105 Concrete block, 8x 16, reinforced, 8 thick

SF

5.74

5.89

11.63

106 Concrete block, 8x 16, reinforced, 12 thick

SF

8.91

6.58

15.50

107 Concrete Block, 8x16, reinforced, filled 4

thick

SF

4.99

5.61

10.60

108 Concrete Block, 8x16, reinforced, filled, 8

thick

SF

6.79

6.17

12.96

109 Concrete block, split face, reinforced, filled,

8x4x16

SF

12.15

8.57

20.72

110 Concrete block, Glazed one side, reinforced,

filled 4x4x16

SF

13.64

9.10

22.74

111 Brick veneer, 4 standard, 4x8x16 block

back-up

SF

9.39

10.72

20.11

112 Brick veneer, 4 modular, 4x8x16 block backup

SF

10.89

13.53

24.42

113 Brick veneer, 4x412 Jumbo, 8x8x16 block

back-up

SF

9.89

11.77

21.66

114 Brick veneer, 8x4x12 Jumbo, 8x8x16 block

back-up

SF

13.52

13.15

26.67

115 Brick wall, cavity, 10 thick

SF

11.59

15.40

26.99

116 Brick wall, reinforced, 16 thick

SF

19.47

19.12

38.58

117 Stone veneer, Granite, 4x8x16 block back-up

SF

28.60

28.17

56.77

118 Brick veneer, 4 standard, sheathing, building

paper, insulation, 2x4 wood stud 16 OC

SF

8.12

9.65

17.77

119 Brick veneer, 4 modular, sheathing, building

paper insulation, 2x4 wood stud 16 OC

SF

8.49

12.18

20.66

120 Siding, Redwood Beveled, paint, sheathing,

building paper, insulation, 2x4 wood stud 16
OC

SF

5.95

7.19

13.14

121 Siding, hardboard, paint, sheathing, building

paper, insulation, 2x6 wood stud 16 OC

SF

4.17

7.72

11.89

122 Siding, Glass weld, finish two sides, sheathing,

building paper, insulation, 2x4 wood stud 16
OC

SF

4.23

7.74

11.97

15

123 Stone veneer, Granite, sheathing, building

paper, insulation, 2x4 wood stud 16 OC

SF

26.19

26.78

52.97

124 Stone veneer, Lava stone, sheathing, building

paper, insulation, 2x4 wood stud 16 OC

SF

8.43

17.10

25.53

125 Stucco, paint, sheathing, building paper,

insulation, 2x4 wood stud 16 OC

SF

3.43

6.64

10.07

126 Stucco, paint, sheathing, building paper,

insulation, 16 ga 3-5/8 metal stud 16 OC

SF

5.74

9.08

14.82

127 Metal Siding, corrugated aluminum, .1/4 thick

SF

3.23

2.77

6.00

128 Metal Siding, corrugated galvanized iron, 26 ga

SF

2.30

3.03

5.32

129 Curtain Wall, frame, anodized aluminum,

bronze

SF

25.01

1.27

26.28

130 Curtain Wall, glazing, plate, 1/4 thick clear

SF

4.39

0.63

5.02

131 Curtain Wall, glazing, double glazed, 5/8 thick

clear

SF

10.15

2.13

12.28

132 Curtain Wall, glazing, double glazed, tempered,

5/8 thick clear

SF

15.05

1.37

16.42

133 Curtain Wall, glazing, double glazed, tempered,

1 solar cool, reflective

SF

9.87

1.38

11.25

134 Exterior coating, concrete surface, paint, prime

SF

0.07

0.27

0.34

135 Exterior coating, concrete surface, paint, prime

+ 2 finish

SF

0.22

0.78

1.00

136 Exterior coating, masonry surface, paint, prime

+ 1 finish

SF

0.17

0.60

0.77

137 Exterior coating, silicone seal, spray 1 coat

SF

0.24

0.25

0.49

137 Exterior coating, sheet metal, paint, prime + 2

A finish

SF

0.20

1.16

1.36

138 Finish interior wall, gypsum board, on stud,

painted, rubber base

SF

0.62

1.19

1.81

139 Wall painting, concrete, prime

SF

0.07

0.26

0.33

140 Concrete block painting, prime, brush

SF

0.07

0.30

0.37

141 Concrete block painting, prime + 2 finish, roll

SF

0.22

0.51

0.73

142 Window, steel frame, fixed, 1/4 glass, clear

SF

18.36

10.51

28.87

143 Window, steel frame, fixed, 1/4 glass spandrel

SF

27.68

10.65

38.33

144 Window, aluminum frame, fixed, 1/4 glass,

tempered

SF

23.16

7.80

30.96

145 Window, metal, sliding, one vent, with screen,

20x30

EACH

69.76

28.37

98.13

146 Window, metal, sliding, two vent with screen,

80x40

EACH

166.16

59.28

225.44

16

147 Window, metal, casement, two vent, with

screen, 100x40

EACH

282.31

65.60

347.91

148 Door, pre hung, solid core, 3X7X 1 3/8

EACH

172.08

67.96

240.04

149 Door, metal, panic hardware, single, 3x7

EACH

1,277.31

252.01

1,529.32

150 Door, metal, panic hardware, double, 6x 7

EACH

2,329.58

463.82

2,793.40

151 Door, metal and glass, panic hardware, double,

6 x 7

EACH

2,763.24

603.67

3,366.91

152 Roll-up doors, chain operated, galvanized steel

24 GA, 10x10

EACH

931.07

1,611.83

2,542.90

153 Roll-up doors, chain operated, galvanized steel

24 GA, 10x10 with electric motor

EACH

1,369.85

2,026.41

3,396.26

154 Roll-up doors, chain operated, galvanized steel

24 GA, 12x12

EACH

1,274.41

1,686.22

2,960.63

155 Roll-up doors, chain operated, galvanized steel

24 GA, 14x14

EACH

1,592.95

1,686.22

3,279.17

156 Overhead doors, sectional, steel, 8x8

EACH

508.10

342.23

850.34

157 Sliding door with track steel, 12x14

EACH

967.17

265.54

1,232.71

158 Sliding door with track steel, 16x20

EACH

1,580.09

369.24

1,949.33

159 Sliding door with track steel, 16x20 electrically

operated

EACH

2,022.29

504.20

2,526.49

160 Glass sliding door, 6x8

EACH

1,803.16

173.12

1,976.28

161 Glass sliding door, 8x8

EACH

2,225.96

197.84

2,423.80

162 Erect fabricated grade 40 structural steel in

columns
163 Ditto in beams

Kg

0.27

3.41

3.68

Kg

0.33

3.44

3.78

164 Pre-cast concrete in elevated floors 100 mm

thick
165 Ditto 150 mm thick

M2

148.95

36.62

185.57

M2

160.93

40.01

200.94

M2

57.05

40.99

98.04

M2

97.06

44.27

141.34

M2

66.18

49.30

115.47

M2

78.27

88.65

166.92

M2

27.92

17.49

45.42

M2

31.55

26.23

57.78

M2

28.91

24.53

53.45

M2

34.18

36.62

70.80

M2

111.03

80.34

191.37

166 Common brick in ext walls ( brick wide) $325

/M
167 Ditto (1 brick wide) ditto
168 Facing brick in ext walls ( 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

M2

130.16

82.52

212.68

176 Ditto 200 mm wide ditto

M2

142.57

100.45

243.03

177 External Pre-Cast wall panel 100 mm thick

M2

249.76

83.40

333.15

178 Ditto with exposed aggregate finish

M2

316.60

103.84

420.44

179 Metal insulated wall cladding 75 mm wide

M2

79.14

22.41

101.56

17

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

M2

57.16

48.53

105.68

M2

13.85

7.49

21.34

M2

12.15

18.09

30.23

M2

27.15

29.30

56.45

M2

92.12

28.42

120.55

M2

51.89

39.79

91.68

M2

36.83

14.98

51.80

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

M2

34.40

21.91

56.32

M2

20.66

15.90

36.57

M2

835.45

125.70

961.16

M2

1,214.71

177.07

1,391.78

M2

953.08

130.07

1,083.15

192 Ditto with anodized aluminum Class A

M2

1,346.62

188.00

1,534.62

193 Regular CMU 8 x 8 x 16

SF

4.16

4.11

8.27

194 ditto with insulation

SF

4.42

4.21

8.63

195 Split face CMU 8 x 8 x16

SF

5.46

4.37

9.83

196 Ditto with insulation

SF

6.45

6.08

12.53

197 Regular CMU 12 x 8 x 16

SF

4.37

4.21

8.58

198 ditto with insulation

SF

5.10

4.94

10.04

199 Split face CMU 12 x 8 x 16

SF

6.76

5.82

12.58

200 Ditto with insulation

SF

7.38

6.40

13.78

201 Cast stone sills

LF

32.55

6.60

39.16

202 Grout

CY

212.90

78.00

290.90

18

Description

Unit

Material

Labor

Total

7.74

13.39

(5)
CSI DIVISION 7, 8 & 9 ROOFING &
MISCLANEOUS ITEMS
GENERAL ROOFING ITEMS
1

SF

5.65

Copper 3/16 thick flat seam (includes

insulation & plywood)
Poured gypsum 11/2 thick

SF

3.09

3.95

7.04

P.C. Tee 6 x 18 wide

SF

5.25

10.48

15.74

Ditto 6 x 24

SF

5.48

11.68

17.16

Composition roofing system

SF

1.42

1.86

3.29

3/16 thick slate

SF

3.30

1.41

4.71

Roof cover, built-up, low rise, 3 ply

SQ

95.78

71.52

167.30

Roof cover, built-up, low rise, 4 ply

SQ

111.17

77.85

189.02

Roof cover, plastic, membrane, 1/6

SQ

148.69

229.23

377.92

10 Roof cover, plastic, membrane, 1/32

SF

132.16

229.22

361.38

11 Roof cover, EPDM, 1/16, self seal

SQ

138.77

229.35

368.12

12 Roof cover, urethane foam, silicone cover, 1

thick

SQ

355.94

119.52

475.46

13 Roof cover, shingles, composition asphalt, 240

#

SQ

46.97

70.65

117.61

14 Roof cover, shingles, composition asphalt, 300

#

SQ

66.75

73.82

140.57

15 Roof cover, tile, concrete, premium

SQ

135.44

222.66

358.10

16 Roof cover, corrugated aluminum, 020

SF

1.38

1.75

3.13

17 Roof cover, corrugated galvanized iron, 26

Gauge

SF

2.20

2.60

4.80

18 Rigid, insulation board, deck, mineral fiber, 1

SF

0.55

0.60

1.15

19 Rigid, insulation board, deck mineral fiber, 2

SF

1.12

1.10

2.23

20 Insulation board, deck, fiberglass, 2

SF

1.83

1.83

3.66

21 Rigid, insulation board, deck, urethane, paint,

1-1/2 non-rated R11

SF

1.55

1.56

3.11

22 Rigid, insulation board, deck, urethane, paint,

3 non-rated R25

SF

2.97

2.98

5.96

23 Rigid, insulation board, deck, batt foam, 2 thick

SF

1.82

1.82

3.64

24 Roof hatch, aluminum, 30x48, with curb

EACH

608.57

103.51

712.08

25 Roof hatch, aluminum, 30x72, with curb

EACH

958.96

157.75

1,116.71

26 Metal flashing 25 G / Galvanized steel 10

LF

2.01

0.25

2.26

27 Metal flashing Aluminum 10

LF

2.11

0.36

2.48

28 Galvanized steel downspout 28g 4 dia

LF

1.13

2.82

3.95

29 Ditto 6

LF

1.31

2.69

4.00

30 Ditto rectangular 3 x 3

LF

1.42

2.59

4.01

31 Ditto 4 x 4

LF

1.70

2.77

4.46

19

32 Floor drain 4 CI with trap

EACH

99.91

102.90

202.81

33 Ditto 6

EACH

204.11

117.85

321.96

34 Roof drain 4 CI with aluminum dome

EACH

111.49

102.90

214.39

35 Ditto 6

EACH

168.30

126.83

295.13

36 Stairs, steel, concrete tread, 12 risers

FLT

1,241.47

515.38

1,756.85

37 Ladders, galvanized steel, 2-1/2x3-3/8 bar,

3/4 rung

RISER

90.53

54.95

145.49

38 Railing, pipe 3 high, welded, with kick plate 11/2

LF

41.09

12.83

53.92

39 Railing, welded, flat bar and angle

LF

18.34

11.60

29.93

40 Fire escape, ladder and balcony

EACH

1,692.93

527.96

2,220.89

41 Gutter, galvanized iron, facia, 5

LF

1.60

4.19

5.79

42 Downspout, galvanized iron, fabricated, 3x4

LF

2.24

3.62

5.86

43 Gravel stop, aluminum, facia 10

LF

2.61

3.62

6.23

44 Louvers, manual, galvanized

SF

8.99

18.38

27.36

45 Screens, cooling tower, galvanized

SF

7.14

18.38

25.52

46 Screens, bird

SF

1.51

2.25

3.75

47 Smoke vent, automatic 180 degree, galvanized

EACH

1,740.00

582.23

2,322.24

48 Skylights, aluminum frame, plastic dome, 2x2

EACH

119.22

92.02

211.23

49 Skylights, aluminum frame, plastic dome, 3x6

EACH

304.01

92.02

396.03

50 Skylights, aluminum frame, plastic dome, 8x10

EACH

2,145.29

124.18

2,269.47

51 Skylights, double glazed, aluminum frame 2x2

EACH

209.09

104.60

313.70

52 Acoustic insulation, sound board vertical, 1/2

SF

0.20

0.54

0.74

53 Insulation, batt, wall and ceiling, mineral fiber,

2-1/2 R7

SF

0.19

0.29

0.48

54 Insulation, batt, wall and ceiling, mineral fiber,

6 R19

SF

0.45

0.35

0.80

55 Caulk, butyl base, 1/8x 1/8

LF

0.04

0.81

0.85

56 Caulk, acrylic, 1/8 x 1/8

LF

0.06

0.81

0.87

57 Caulk, polysulfide, 1/8x1/8

LF

0.29

0.83

1.12

58 Caulk, silicone, 1/8x1/8

LF

0.07

0.89

0.97

59 Caulk, electrometric, for concrete

LF

1.98

1.80

3.78

60 Latex/acrylic, x

LF

0.11

1.11

1.23

61 Latex/acrylic, x

LF

0.25

1.35

1.60

62 Latex/acrylic, x3/4

LF

0.34

1.50

1.84

63 Joint filler

LF

0.21

0.18

0.38

64 Joint filler 1

LF

0.27

0.23

0.50

20

Description

Unit

Material

Labor

Total

SF

3.45

3.62

7.07

(6)
CSI DIVISION 4, 8, 9 & 10 INTERNALS
WALLS / DOORS / CEILINGS / FLOORS /
INTERIORS / GLASS
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

SF

3.96

4.43

8.39

Ditto 2 hour rated

SF

4.83

5.00

9.83

Interior partitions, non-rated drywall metal studs

3 5/8, insulation, lath & plaster, both sides,
painted, rubber base

SF

4.74

10.24

14.99

Interior partitions, non-rated, drywall metal

studs 3 5/8, insulation, lath & plaster, both
sides, painted, rubber base.

SF

6.26

10.80

17.06

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

SF

4.39

8.43

12.82

Concrete masonry unit, 4x 8x 16, #4 bar, 30

on center, both ways, unfilled

SF

4.66

5.26

9.92

Concrete masonry unit, 12x 8x 16, #4 bar,

30 on center, both ways, unfilled

SF

8.76

6.59

15.35

Concrete masonry unit, 8x416, #4 bar, 30

on center, both ways, filled

SF

9.50

7.96

17.45

10 Concrete masonry unit, grout lock, 8x816, #4

bar, 30 on center, filled

SF

6.98

4.71

11.69

11 Concrete masonry unit, slump stone, 8x

8x16, #4 bar, 30 on center, filled

SF

8.92

7.21

16.13

12 Concrete block painting, prime, brush

SF

0.07

0.32

0.39

13 Concrete block painting, prime + finished,

brush

SF

0.16

0.58

0.74

14 Door, hollow metal, stock, including hardware /

hinges, stained / painted, door 20 GA, frame 18
GA, 3 x 70, non-rated

EACH

675.36

308.98

984.34

15 Door, hollow metal, stock, hardware / hinges,

stained / painted, door 20 GA, frame 18 GA,
36 x 80 1 hour rated

EACH

789.53

321.96

1,111.49

16 Door, hollow metal, including hardware /

hinges, stained / painted, door 20 GA, frame 18
GA, 30x 70, non-rated

EACH

820.88

270.69

1,091.57

17 Door, hollow metal, including hardware /

hinges, stained / painted, door 20 GA, frame 18
GA, 30x 70, 3 hour rated

EACH

981.47

270.69

1,252.16

21

18 Door, hollow metal, including hardware /

hinges, stained / painted, door 18 GA, frame 16
GA, 40x 70, 1 hour rated

EACH

1,095.98

320.77

1,416.76

19 Door, hollow metal, including hardware /

hinges, stained / painted, door 18 GA, frame 16
GA, 40x 70, 3 hour rated

EACH

1,208.40

320.75

1,529.15

20 Glazing, interior, clear, fixed, commercial, glass

1/4, steel frame, painted

SF

14.78

8.92

23.70

21 Glazing, interior, security, fixed, commercial,

glass wire 1/4, steel frame, painted

SF

28.64

8.92

37.56

22 Glazing, interior, clear, fixed, commercial, glass

1/4, aluminum frame

SF

14.60

6.59

21.20

23 Sidelight, 3x 7, commercial, tempered glass

1/4, aluminum frame

EACH

477.50

164.20

641.69

24 Roof window with insulated glass 24 x 48

EACH

444.49

151.49

595.97

25 Roof window with insulated glass 30 x 60

EACH

554.69

201.97

756.66

26 5/8 gypsum on metal furring

SF

1.47

1.21

2.67

27 5/8 plaster on metal furring

SF

2.74

1.28

4.01

28 Keens plaster thick on expanded metal

lathing
29 5/8 Fiberglass lay-in ceiling on grid (24 x 48)

SF

3.23

1.93

5.17

SF

1.26

1.47

2.73

30 20 g metal lay-in ceiling including grid (prepainted enamel)

31 Acoustical ceiling, suspended, 2x 2

SF

2.53

2.68

5.21

SF

1.36

1.28

2.64

32 Acoustical ceiling, suspended, 2x 4

SF

1.34

1.11

2.45

33 Acoustical ceiling, glue on, metal studs, 5/8

gypsum board, vinyl tile 1x 1, painted

SF

2.35

3.80

6.15

34 Acoustical ceiling, suspended, 2x 2, insulated

SF

1.59

1.53

3.12

35 Acoustical ceiling, suspended, 2x 4, insulated

SF

1.59

1.25

2.84

36 Resilient floor, tile, asphalt, 1/8,

SF

0.44

1.23

1.67

37 Resilient floor, tile, asphalt, 1/4,

SF

0.48

1.23

1.71

38 Resilient floor, tile, cork, 5/16

SF

2.68

1.23

3.91

39 Resilient floor, vinyl, , w/cove

SY

15.86

10.74

26.60

40 Wood Parquet, 5/16, oak

SF

5.50

4.02

9.53

41 Wood block industrial floor, 1

SF

3.78

1.11

4.89

42 Oak thick pre-finished

SF

1.96

2.23

4.18

43 Rubber tile, 12x12x1/4

SF

2.75

2.10

4.85

44 VCT, 12x12x1/4

SF

1.10

0.44

1.54

45 Vinyl sheet, 12x12x1/8

SF

1.59

1.18

2.77

46 Brick paving, 3 thick

SF

5.04

5.60

10.64

47 Slate 3 x 3 thick on 11/2 mud set base

SF

8.65

6.33

14.98

22

48 PVC sheet floor thick, glued to concrete

floor

SF

4.13

4.51

8.64

49 Quarry tile 4 x 4 x 3/8 thick on 1 mud set

base, acetone base (food grade)

SF

4.60

4.91

9.51

50 Ditto 6 x 6 ditto on 11/2 mud base

SF

4.71

5.06

9.78

51 Poly carbonate, sheet glass 1/8 thick

SF

4.14

1.44

5.57

52 Ditto

SF

4.60

1.44

6.03

53 Ditto

SF

5.16

1.66

6.82

54 Addition for tint Minimum

SF

2.38

2.38

55 Ditto Maximum

SF

6.01

6.01

56 Tile, ceramic, floor, 1x 1, mortar mud set

SF

4.27

6.03

10.31

57 Tile, ceramic, floor, 4x 4, mortar mud set

SF

4.14

5.45

9.59

58 Terrazzo, floor, mud bonded, 2, non-slip

abrasive

SF

5.25

1.82

7.07

59 Terrazzo, floor, thin set, polyester, 3/8,

polished

SF

4.99

10.67

15.66

60 Hardwood floor, oak, common, finished

SF

6.06

3.30

9.36

61 Hardwood floor, oak, select, finished

SF

6.18

3.46

9.64

62 Hardwood floor, teak parquet 5/16, prefinished

SF

10.71

4.58

15.29

63 Vinyl wall covering. light, 6 ounces

SF

1.54

0.50

2.04

64 Paneling, birch or ash, select

SF

1.63

3.97

5.61

65 Paneling, walnut, select

SF

3.34

4.01

7.35

66 Sanding existing wooden floor

SF

0.22

0.64

0.86

67 Polyurethane finish 1 coat

SF

0.30

0.27

0.57

68 Paint concrete floor 2 coats

SF

0.21

0.28

0.49

69 Cabinets and laminated plastic tops, multi-unit,

hardwood, economy, base

LF

41.36

15.71

57.08

70 Cabinets and laminated plastic tops, multi-unit,

hardwood, economy, wall

LF

26.55

27.30

53.85

71 Cabinets and laminated plastic tops, multi-unit,

hardwood, economy, wall

LF

102.50

35.10

137.60

72 Carpet, 30 oz polyester, with 24 oz pad

SY

20.05

7.83

27.88

73 Carpet, 30 oz polyester, with 24 oz pad

SY

11.63

7.83

19.46

74 Carpet, 20 oz nylon level loop, with rubber back

SY

12.92

6.59

19.51

75 Carpet, wool commercial, with 24 oz pad

SY

45.73

7.70

53.42

76 Carpet, exterior, premium, without pad

SY

21.10

8.80

29.90

77 Floor mat, rubber, 1/4 recessed

SF

5.70

2.43

8.13

78 Floor mat, rubber, 1/2 recessed

SF

8.93

30.84

39.77

79 Olefine, 24 oz.

SF

2.27

1.11

3.38

80 Indoor - outdoor

SF

1.71

0.99

2.69

81 Felt padding

SF

0.45

0.21

0.66

82 Rubber based / sponge type padding

SF

0.60

0.21

0.81

23

Description

Unit

Material

Labor

Total

(7)
CSI DIVISION 11, 13 & 14 MATERIAL
HANDLING EQUIPMENT
SPECIALIZED EQUIPMENT
1

Dock bumper, 10x4 1/2 x 24

EA

74.78

42.65

117.43

Scissors lift, 60, 2000#, 4x 4 deck

EA

7,093.28

175.65

7,268.92

Dock leveler, heavy duty, hydraulic

EA

6,154.96

554.32

6,709.28

Dock leveler, sliding door, 76x 8

EA

959.87

573.09

1,532.96

Laboratory equipment, instructors table,

includes sinks, fixtures and acid resistant tops,
12x 36x 36

EACH

2,450.59

209.07

2,659.66

Laboratory equipment, student table for 6

students, 12x 6x 4

EACH

5,418.51

202.80

5,621.31

Laboratory equipment, steel cabinet, base

LF

224.02

117.03

341.05

Laboratory equipment, wood cabinet, base

LF

186.92

117.03

303.95

Laboratory equipment, plastic laminated

cabinet, base

LF

170.73

117.03

287.76

10 Laboratory equipment, steel cabinet, knee

space, drawer unit

LF

147.94

74.36

222.30

11 Laboratory equipment, stainless steel cabinet

top

LF

195.19

195.19

EACH

77.42

33.65

111.07

LF

491.70

491.70

14 Laboratory equipment miscellaneous, water

tank, stainless steel, 50 GAL

EACH

6,792.86

348.09

7,140.95

15 Laboratory equipment miscellaneous, washer

EACH

666.31

670.79

1,337.10

16 Laboratory equipment miscellaneous, portable

water distiller, 20 LPH

EACH

1,078.60

107.69

1,186.30

17 Steel stair, steel pan, concrete tread, wrought

iron rail, 44 wide

RISER

336.47

112.90

449.37

18 Steel stair, steel pan, concrete tread, wrought

iron rail, 48 wide

RISER

355.17

107.91

463.08

19 Elevator, hydraulic, 100 min, 2000 lb, 5x 6

cab, auto exit, 2 stop

EACH

56,329.34

56,329.34

20 Elevator, hydraulic, 100 min, 2500 lb, 5x 7

cab, auto exit, 2 stop

EACH

60,441.88

60,441.88

21 Elevator, hydraulic, 100 min, 4000 lb, 6x 8

cab, auto exit, 3 stop

EACH

81,154.13

81,154.13

22 Elevator, electric gear, 200 min, 3500 lb, 5x

8cab, auto exit, 7 stop

EACH

203,633.06

203,633.06

23 Elevator, electric gear, 200 min, 4000 lb, 6x

8cab, auto exit, 4 stop

EACH

250,740.35

250,740.35

24 Elevator, electric gear less, 400 min, 3500 lb,

6x 9 cab, auto exit, 10 stop

EACH

288,251.70

288,251.70

12 Reagent rack, metal upright, wall, 1 tier

13 Laboratory equipment miscellaneous, add for
stainless steel

24

25 Elevator, electric gear less, 500 min, 4500 lb,

6x 9 cab, auto exit, 15 stop

EACH

348,568.97

348,568.97

26 Air hoist, 25lift, rail, 2000 lb

EACH

8,141.58

69.00

8,210.58

27 Air hoist, 30lift, rail 500 lb

EACH

8,962.86

69.00

9,031.86

28 Electric hoist, 30lift, rail, 1000 lb

EACH

5,282.74

69.00

5,351.75

29 Electric hoist, 30lift, rail, 500 lb

EACH

4,710.73

69.00

4,779.74

30 Crane, hydraulic, portable, 2000 lb

EACH

2,871.20

2,871.20

31 Crane, hydraulic, gantry, 4000 lb

EACH

3,100.61

3,100.61

32 Crane, monorail, overhead, 200 # L/F, manual

33 Crane, monorail, overhead, 100 # L/F, manual
34 Bridge Crane, 1 ton

LF
LF
EACH

26.40
17.19
7,825.76

69.00
69.10
-

95.40
86.29
7,825.76

35 Bridge Crane, 2.5 ton

EACH

15,926.75

15,926.75

36 Bridge crane, 5 ton

EACH

24,662.78

24,662.78

37 Man lift, 2 stop

EACH

18,678.45

18,678.45

38 Man lift, 3 stop

EACH

21,477.42

21,477.42

39 Man lift, 4 stop

EACH

22,288.49

22,288.49

40 Escalator, 12 floor to floor, 24 wide

Floor

132,598.27

132,598.27

41 Escalator, 12 floor to floor, 32 wide

Floor

136,710.82

136,710.82

42 Escalator, 12 floor to floor, 36 wide

Floor

145,569.00

145,569.00

43 3 round C.S. single tube

LF

22.62

12.29

34.91

44 4 round C.S. single tube

LF

25.05

14.77

39.82

45 6 round C.S. single tube

LF

42.01

16.57

58.57

SF

9.35

2.57

11.92

th

46 3/16 lead lining to walls

25

Description

Unit

Material

Labor

Total

LF

6.61

8.96

15.58

(8)
CSI DIVISION 15 PLUMBING & FIRE
PROTECTION
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:

LF

9.58

14.10

23.68

Ditto 4

LF

19.71

35.35

55.06

Ditto 6

LF

37.82

73.79

111.61

Water heater, commercial, electric, 50 gallon,

100 GPH

EACH

2,433.62

532.97

2,966.59

Water heater, commercial, gas, 80 gallon, 100

GPH

EACH

3,988.26

576.87

4,565.13

Interceptor grease, cast iron, 50 gallons per

minute

EACH

2,559.60

906.65

3,466.25

Pump, circulating, in line, flanged, iron body,

3/4 to 2

EACH

492.91

158.02

650.93

Pumps circulating, in line flanged, iron body,

3/4 to 2

EACH

1,560.02

215.69

1,775.71

10 Pumps sewage ejector, w/tank & fittings, single,

2 horsepower, 4

EACH

8,374.36

1,236.48

9,610.84

11 Pump, sewage ejector, w/tank & fittings, duplex

5 H.P.

EACH

14,875.93

2,345.02

17,220.95

12 Pressure booster system, 2 pump, 100 GPM,

50 psi

EACH

15,540.22

2,345.02

17,885.24

13 Pressure booster system, 3 pump, 250 GPM,

100 psi

EACH

23,764.46

3,273.03

27,037.48

14 1 diameter sch 40 including fittings / hangars

and erection n/e 20 from FFL
15 Ditto 1.5

LF

3.76

1.54

5.30

LF

3.93

1.83

5.76

16 Ditto 2

LF

5.41

2.11

7.52

17 Ditto 4

LF

14.35

2.96

17.32

18 Ditto 6

LF

24.39

5.20

29.59

19 Copper L including fittings / hangars and

erection n/e 20 from FFL dia
20 Ditto

LF

1.39

4.40

5.79

LF

2.23

4.40

6.62

21 Ditto 1

LF

3.13

4.86

7.99

22 Ditto 2

LF

8.89

7.71

16.60

23 Septic tank, steel 250 gallon, buried

EACH

349.03

260.83

609.87

24 Septic tank, steel 1000 gallon, buried

EACH

1,098.41

625.76

1,724.16

25 Compressor air, simplex, 5 H.P., reciprocating,

tank mounted

EACH

5,730.95

1,606.40

7,337.36

26 Compressor air, simplex, 10 H.P.,

reciprocating, tank mounted

EACH

10,338.47

1,965.05

12,303.52

27 Tank, water, glass lined, 200 gallon, ASME

EACH

1,984.12

703.51

2,687.63

28 Water softeners, w/brine tank, 50 GPM

EACH

4,413.61

1,092.26

5,505.87

26

29 Fixture, economy grade, bath tub, steel, w/

shower

EACH

285.24

265.86

551.10

30 Fixture, economy grade, lavatory, steel, wall

hung

EACH

158.18

150.90

309.09

31 Fixture, economy grade, shower & drain

receptor, 24 square

EACH

224.08

225.92

450.00

32 Fixture, economy grade, shower cabinet,

w/door, 24 square

EACH

485.30

338.88

824.18

33 Fixture, economy grade, water closet, floor,

w/tank

EACH

208.52

150.63

359.15

34 Fixture, standard grade, shower and drain

receptor, 24 square

EACH

721.10

556.96

1,278.07

35 Fixture, standard grade, urinal, wall mounted.

EACH

663.16

356.61

1,019.76

36 Rough-in for fixtures, piping and valves, fixture

to 5 beyond building perimeter, housing

EACH

205.16

119.76

324.92

37 Rough-in for fixtures, piping and valves, fixture

to 5 beyond building perimeter, office building

EACH

1,209.74

975.63

2,185.37

38 Rough-in at fixtures, lavatory, fittings and

valves, fixture to waster line, vent riser and
water runs

EACH

147.00

244.55

391.55

39 Rough-in at fixtures, urinal, fittings and valves,

fixture to waste line, vent riser and water runs

EACH

118.85

250.82

369.67

40 Rough-in at fixtures, wash fountain, fittings and

valves, fixture to waster line, vent riser and
water runs

EACH

349.03

388.76

737.80

41 2 diameter

LF

3.82

8.56

12.38

42 Ditto 3

LF

6.18

8.56

14.74

43 Ditto 4

LF

8.24

8.56

16.80

44 Ditto 6

LF

11.85

13.02

24.87

45 Ditto 8

LF

21.53

15.98

37.51

46 Ditto 10

LF

32.47

18.28

50.75

47 Ditto 12

LF

54.12

22.85

76.97

48 PVC PIPE Schedule 40 includes fitting,

hangars and erection diameter
49 Ditto

LF

0.87

5.60

6.47

LF

1.03

5.88

6.91

50 Ditto 1

LF

1.13

7.77

8.90

51 Ditto 2

LF

1.62

9.55

11.17

52 Ditto 3

LF

2.90

10.34

13.24

53 Ditto 4

LF

3.80

12.69

16.48

27

54 Ditto 6

LF

6.55

15.98

22.54

55 Ditto 8

LF

8.03

17.70

25.73

56 diameter

LF

9.00

7.88

16.88

57 Ditto

LF

15.27

9.60

24.87

58 Ditto 1

LF

24.50

14.28

38.78

59 diameter r

LF

9.58

7.88

17.46

60 Ditto

LF

16.24

9.60

25.84

61 Ditto 1

LF

26.88

14.28

41.16

62 Copper pipe, underground, K, soft, w/

trenching, 1/2 coils

LF

2.44

6.58

9.03

63 Copper pipe, underground, K, soft, w/

trenching, 3/4 coils

LF

4.54

6.66

11.20

64 Copper pipe, underground, K, soft, w/

trenching, 1 coils

LF

5.71

5.77

11.48

65 Copper pipe, in building, L, w/fittings &

supports, 1-1/2

LF

8.00

7.14

15.14

66 Copper pipe, in building, L, w/fittings &

supports, 3

LF

24.32

7.14

31.46

67 PVC pipe, schedule 40, in building, w/fittings &

supports 1/2

LF

0.75

5.55

6.30

68 PVC pipe, schedule 40, in building, w/fittings &

supports 1

LF

0.99

6.10

7.09

69 Pipe, polypropylene, acid waste, 2

LF

8.00

4.97

12.97

70 Pipe, polypropylene, acid waste, 3

LF

11.08

7.45

18.52

71 Pipe, polypropylene, acid waste, 4

LF

14.80

8.96

23.76

72 Brass pipe 0.50 dia with fittings / hangars and

installation
73 1 diameter with fittings / hangars and
installation
74 Ditto 2

LF

5.56

5.88

11.44

LF

8.03

8.00

16.03

LF

20.97

10.85

31.81

75 2 diameter with fittings / hangars and

installation
76 Ditto 3

LF

10.76

13.07

23.84

LF

15.50

16.21

31.71

77 Ditto 4

LF

21.37

21.42

42.80

78 Steel pipe, black, weld, schedule 40, A-120,

screwed, 3/4

LF

2.00

9.28

11.27

79 Steel pipe, black, weld, schedule 40, A-120,

screwed, 1

LF

2.40

11.03

13.44

80 Steel pipe, black, weld, schedule 40, A-120,

screwed, 2

LF

5.05

18.76

23.82

81 Steel pipe, black, weld, schedule 40, A-120,

screwed, 3

LF

10.43

26.27

36.70

82 Steel pipe, galvanized, weld, schedule 40 A120, screwed, 3/4

LF

2.40

10.11

12.51

83 Steel pipe, galvanized, weld, schedule 40, A120, screwed, 1/2

LF

4.38

13.79

18.17

84 Access door, painted steel, 8x 8

EACH

41.64

30.39

72.03

85 Access door, painted steel, 12x 12

EACH

41.65

31.98

73.63

28

86 Clean out, cast iron, floor & wall, 4

EACH

130.10

79.76

209.86

87 Drains, cast iron, area, w/6x 6 strainer

EACH

83.32

114.10

197.42

88 Stainless steel pipe, non-spooled, 304,

schedule 10, seamless, 3/4

LF

12.75

9.58

22.33

89 Stainless steel pipe, non-spooled, 304,

schedule 10, seamless, 1

LF

17.64

10.91

28.55

90 Stainless steel pipe, 316L, schedule 10

seamless, 1/2

LF

19.02

9.53

28.55

91 Stainless steel pipe, 316L, schedule 10

seamless, 3/4

LF

23.89

12.67

36.56

92 Stainless steel pipe, 316L, schedule 10

seamless, 1

LF

35.03

13.92

48.94

93 Fire protection, concealed system, wet, normal

hazard, 1 to 5,000 SF

SF

1.57

2.16

3.73

94 Fire protection, concealed system, wet, normal

hazard, 5,000 to 20,000 SF

SF

1.54

1.83

3.37

95 Fire protection, concealed system, wet, normal

hazard, over 20,000 SF

SF

1.39

1.83

3.22

96 Fire protection, concealed system, wet, high

hazard, 1 to 5,000 SF

SF

2.06

2.43

4.49

97 Fire protection, concealed system, wet, high

hazard, 5,000 to 20,000 SF

SF

1.74

2.14

3.88

98 Fire protection, concealed system, wet, high

hazard, over 20,000 SF

SF

1.74

2.02

3.75

99 Fire protection, exposed system, wet, high

hazard, 1 to 5,000 SF

SF

1.76

2.20

3.96

99 Fire protection, exposed system, wet, high

hazard, 5,000 to 20,000 SF

SF

1.60

1.96

3.56

100 Fire protection, exposed system, wet, high

hazard, over 20,000 SF

SF

1.55

1.82

3.37

101 Fire protection, haylon / CO2 system 10,000

SF, 8 ceiling & 2 raised floor

SF

9.64

9.64

102 Standpipe, dry, 6 diameter, hook up,

connection, pump 6

EACH

1,219.75

418.84

1,638.59

103 Fire pump, electric, 2500 GPM @ 40 psi

EACH

13,456.02

3,313.14

16,769.16

104 Fire pump, diesel, 500 GPM, @ 100 psi

EACH

37,503.21

3,698.12

41,201.33

105 Carbon dioxide equipment cylinder

EACH

919.87

147.53

1,067.40

106 CO2 / Haylon system (computer room)

EACH

3,372.86

1,229.44

4,602.29

107 Emergency shower SS (excludes service pipe)

EACH

427.32

274.13

701.45

108 Eye wash station ditto

EACH

333.87

137.07

470.94

109 Furnace, up flow, 80 MBTU, gas fired

EACH

536.69

376.21

912.90

110 Furnace, up flow, 120 MBTU, gas fired

EACH

725.60

499.11

1,224.70

111 Unit heater, suspended, 85 MBTU, gas fired

EACH

746.87

403.79

1,150.66

112 Unit heater, suspended, 180 MBTU, gas fired

EACH

1,185.97

647.07

1,833.04

113 Electric furnace, unit heater, 10 MBTU, 3KW,

240v

EACH

347.79

188.10

535.89

29

114 Boiler, steel tube, gas fired, 600 MBH, 150#

steam, pump 200 GPM, expansion tank, air
separator, pipe, valves, etc.

EACH

34,403.17

34,403.17

115 Boiler, steel tube, gas fired, 6500 MBH, 150#

steam, pump 250 GPM, expansion tank, air
separator, pipe, valves, etc.

EACH

84,781.92

84,781.92

116 Boiler, steel tube, gas fired, 650 MBH, 15#

steam, pump 200 GPM, expansion tank, air
separator, pipe, valves, etc.

EACH

26,809.06

26,809.06

117 Chiller, reciprocating, air cool, 25 TON

EACH

19,574.86

19,574.86

118 Chiller, centrifugal, water cool, 50 TON

EACH

43,871.71

43,871.71

119 Chiller, absorption, hot water, 100 TON

EACH

109,035.37

109,035.37

120 Chiller, absorption, hot water, 500 TON

EACH

556,828.54

556,828.54

121 Cooling tower, 25 TON, compressor chiller

EACH

6,879.41

6,879.41

122 Cooling tower, 150 TON, compressor chiller

EACH

41,565.90

41,565.90

123 Cooling tower, 200 TON, absorption chiller

EACH

30,527.45

30,527.45

124 Cooling tower, 1000 TON, absorption chiller

EACH

100,288.01

100,288.01

125 Air conditioner, 10 TON, roof mounted, D-X

EACH

10,899.86

10,899.86

126 Air conditioner, 15 TON, roof mounted, D-X

EACH

16,637.41

16,637.41

127 Split system, air conditioner, residential, 2 TON

EACH

2,563.37

2,563.37

128 Split system, air conditioner, residential, 3 TON

EACH

4,374.91

4,374.91

129 Split system, air conditioner, commercial, 10

TON

EACH

8,427.24

8,427.24

130 Split system, air conditioner, commercial, 50

TON

EACH

31,731.87

31,731.87

131 Computer room, air conditioning unit, 5 TON

EACH

14,703.22

14,703.22

132 Computer room, air conditioning unit, 10 TON

EACH

26,974.30

26,974.30

133 Roof mounted, air-conditioner, gas heat, DX

cooling, 2.5 TON cooling, 100 MBH heating

EACH

6,079.49

6,079.49

134 Roof mounted, air-conditioner, gas heat, DX

cooling, 7.5 TON cooling, 200 MBH heating

EACH

12,802.15

12,802.15

135 Roof mounted, air conditioner, gas heat, DX

cooling, 50 TON cooling, 750 MBH heating

EACH

63,051.63

63,051.63

136 Heat pump, 2 TON, 25,000 BTU, thru-wall

EACH

2,237.14

2,237.14

137 Heat pump, 10 TON, 120,000 BTU, roof,

ductwork

EACH

13,276.81

13,276.81

138 Heat pump, 4 TON, 50,000 BTU, plenum

EACH

4,904.74

4,904.74

PUMPS

30

139 Pump, condensate, duplex, 40 GPM, 50 head

EACH

6,512.69

6,512.69

140 Pump, condensate, duplex, 75 GPM, 50 head

EACH

7,961.18

7,961.18

141 Pump, condensate, duplex, 120 GPM, 50 head

EACH

10,236.32

10,236.32

142 Pump, water service, 20 GPM, 50 head

EACH

1,349.15

1,349.15

143 Pump, water service, 60 GPM, 50 head

EACH

2,132.30

2,132.30

144 Pump, water service, 200 GPM, 50 head

EACH

3,520.04

3,520.04

145 Pump, water service, 400 GPM, 50 head

EACH

5,037.22

5,037.22

146 Pump, water service, 2,000 GPM, 50 head

EACH

13,225.28

13,225.28

147 Pump, water service, 4,000 GPM, 50 head

EACH

17,154.99

17,154.99

148 Pump, fuel oil, 1 GPM, 1/4 horse power

EACH

1,362.06

1,362.06

149 Pump, fuel oil, 5 GPM, 1/4 HP

EACH

1,660.68

1,660.68

150 Pump, fuel oil, 10 GPM, 1/4 HP

EACH

1,823.80

1,823.80

151 Air handler, 2,000 CFM, 5 TON

EACH

4,780.88

4,780.88

152 Air handler, 5,000 CFM, 10 TON

EACH

12,826.68

12,826.68

153 Air handler, 15,000 CFM, 30 TON

EACH

37,056.08

37,056.08

154 Air handler, 30,000 CFM, 75 TON

EACH

65,296.12

65,296.12

155 Air handler, 2,500 CFM, 7.5 TON

EACH

3,497.97

3,497.97

156 Air handler, 5,500 CFM, 10 TON

EACH

5,693.40

5,693.40

157 Air handler, 6,400 CFM, 15 TON

EACH

7,773.53

7,773.53

158 Coil, chill water, 20,000 CFM, 40 SF

EACH

9,810.73

9,810.73

159 Coil, chill water, 27,000 CFM, 55 SF

EACH

12,258.81

12,258.81

160 Coil, chill water, 33,000 CFM, 60 SF

EACH

14,242.13

14,242.13

161 Coil, hot water, 17,000 CFM, 15 SF

EACH

1,921.92

1,921.92

162 Coil, hot water, 23,000 CFM, 20 SF

EACH

2,261.66

2,261.66

163 Coil, hot water, 30,000 CFM, 32 SF

EACH

3,391.26

3,391.26

164 Fan, supply, low pressure, 10,000 CFM

EACH

3,328.70

843.40

4,172.10

165 Fan, supply, high pressure, 10,000 CFM

EACH

4,774.74

890.12

5,664.86

166 Fan, supply, high pressure, 50,000 CFM

EACH

12,107.95

2,230.20

14,338.15

167 Expansion tank, chilled water, 40 GAL

EACH

198.69

151.22

349.91

168 Expansion tank, ASME code, 80 GAL

EACH

1,159.03

821.27

1,980.30

169 Expansion tank, ASME code, 250 GAL

EACH

3,482.01

1,925.29

5,407.30

170 Controls, pneumatic, air conditioning unit, to 15

TONS

SUM

5,089.95

5,089.95

171 Controls, pneumatic, air conditioning unit, to 30

TONS

SUM

5,948.51

5,948.51

172 Controls, pneumatic, boiler, to 10,000 MBH

SUM

7,726.92

7,726.92

173 Controls, pneumatic, cooling tower, to 100 TON

SUM

2,023.72

2,023.72

174 Controls, pneumatic, exhaust fan

SUM

561.74

561.74

176 Duct rectangular, galvanized iron, with

supports, to 10000 LBS

LBS

2.63

3.79

6.42

31

177 Duct rectangular, galvanized iron, with

supports, 10,000 LBS to 25,000 LBS

LBS

2.60

3.17

5.77

178 Duct rectangular, galvanized iron, with

supports, 25,000 LBS to 50,000 LBS

LBS

2.19

2.90

5.10

179 Duct flexible, insulated, with clamps, 4

LF

2.17

4.18

6.35

180 Duct flexible, insulated with clamps, 6

LF

2.83

5.02

7.85

181 Duct flexible, insulated, with clamps, 8

LF

4.15

7.25

11.40

182 Duct flexible, insulated, with clamps, 10

LF

4.24

9.56

13.80

183 Duct flexible, insulated, with clamps, 12

LF

5.22

13.43

18.65

184 Fire dampers, insulated, UL rated, fusible link

to 1 SF

EACH

104.26

67.62

171.88

185 Fire dampers, insulated, UL rated, fusible link

to 2 SF

EACH

147.18

98.35

245.53

186 Fire dampers, insulated, UL rated, fusible link

to 4 SF

EACH

176.60

129.10

305.70

LF

15.45

18.44

33.89

188 Steel pipe, seamless, A-53, schedule 40,

welded, 3

LF

17.79

27.30

45.09

189 Steel pipe, seamless, A-53, schedule 40,

welded, 4

LF

23.62

34.43

58.05

190 Steel pipe, seamless, A-53, schedule 40,

welded, 6

LF

31.65

41.92

73.57

191 Valve, gate, globe & check, iron body, flange,

125#, bolt & gasket, 1-1/2

EACH

244.07

117.40

361.47

192 Valve, gate, globe & check, iron body, flange,

125#, bolt & gasket, 2

EACH

267.37

130.32

397.70

193 Valve, gate, globe & check, iron body, flange,

125#, bolt & gasket, 3

EACH

302.95

145.08

448.03

194 Valve, gate, globe & check, iron body, flange,

125#, bolt & gasket, 6

EACH

770.33

336.87

1,107.20

195 Valve, gate, globe & check, iron body, flange,

125#, bolt & gasket, 8

EACH

1,522.07

442.60

1,964.67

196 Steam traps, cast iron, screwed, 3/4, bucket

EACH

156.99

43.16

200.15

197 Steam traps, cast iron, screwed, 1, bucket

EACH

264.92

55.33

320.25

198 Butterfly valve, iron body, nylon, 2, wafer body

EACH

117.75

102.66

220.41

199 Butterfly valve, iron body, nylon, 3, wafer body

EACH

126.32

141.38

267.70

200 Butterfly valve, iron body, nylon, 6, wafer body

EACH

280.86

280.32

561.18

201 Butterfly valve, iron body, nylon, 8 wafer, chain

EACH

415.78

404.49

820.27

202 Butterfly valve, iron body, nylon, 2, lug type

EACH

133.68

102.66

236.34

203 Butterfly valve, iron body, nylon, 3, lug type

EACH

164.35

141.38

305.73

PIPING n/e 50 above FFL (Assumes 5 #

fittings per 100)
187 Steel pipe, seamless, A-53, schedule 40,
welded, 2

32

204 Butterfly valve, iron body, nylon, 6, lug type

EACH

322.57

274.16

596.73

205 Butterfly valve, iron body, nylon, 8, lug type

206
207 Valve, balancing, circuit setter, 1/2

EACH

450.12

404.49

854.61

EACH

60.10

25.45

85.55

208 Valve, balancing, circuit setter, 3/4

EACH

84.64

30.48

115.12

209 Valve, balancing, circuit setter, 1 1/2

EACH

111.62

65.98

177.60

210 Valve, balancing, circuit setter, 2

EACH

196.24

110.40

306.63

211 Stainless steel 304, diameter (L/M)

LF

14.10

14.10

212 Stainless steel 304, 1 diameter (L/M)

LF

21.47

21.47

213 Brass non threaded (L/M)

LF

9.76

9.76

214 Brass non threaded 1 (L/M)

LF

10.30

10.30

215 Strainers 1 bronze

EACH

50.60

25.07

75.67

216 Strainers 1.5 bronze

EACH

79.07

39.40

118.47

217 Strainers 2 bronze

EACH

103.60

50.14

153.74

218 CS tee

EACH

8.75

26.85

35.60

219 CS tee

EACH

11.29

26.85

38.15

220 CS tee 1

EACH

18.28

26.85

45.14

221 CS tee 2

EACH

20.49

51.33

71.82

222 CS tee 3

EACH

25.43

78.19

103.62

223 CS tee 4

EACH

36.02

72.21

108.22

224 CS tee 6

EACH

61.36

153.99

215.35

225 Floor cleanout CI 4 dia

EACH

114.90

102.65

217.55

226 Wall cleanout CI 4 dia

EACH

40.13

76.99

117.12

CPVC Schedule 40 with fittings / hangars

and installation
227 1 diameter

LF

3.26

6.18

9.43

228 Ditto 1.5

LF

4.85

7.14

11.99

229 Ditto 2

LF

6.61

9.55

16.16

230 Ditto 3

LF

12.25

11.70

23.95

231 Ditto 4

LF

16.63

14.33

30.96

232 Ditto 6

LF

20.59

16.90

37.49

40.11

27.18

67.29

49.88

34.78

84.66

41.20

31.52

72.73

50.96

42.39

93.35

Metric Values
233 Supply & install CI ductile pipe in trench 100
mm
234 Ditto 150 mm
235 Supply & install CI ductile pipe on walls / racks
100 mm
236 Ditto 150 mm ditto
237 Supply & install copper pipe 15 mm with cap
joints on walls / racks
238 Ditto 25 mm

14.63

10.87

25.50

18.97

17.49

36.46

239 Ditto 50 mm

47.27

37.17

84.44

240 Multiply above piping units by 1.35 for fittings /

bends for normal applications
241 Ditto for congested / complex application use
1.60
242 Supply & install copper pipe 15 mm with comp

16.81

13.04

29.85

33

joints on walls / racks

243 Ditto 25 mm

25.16

16.95

42.11

244 Ditto 50 mm

53.66

39.23

92.89

245 Multiply above piping units by 1.35 for fittings /

bends for normal applications
246 Ditto for congested / complex application use
1.60
246 Supply & install black / galv steel pipe 15 mm
with screwed joints on walls / racks
248 Ditto 25 mm

2.64

11.15

13.79

3.30

11.89

15.19

249 Ditto 40 mm

6.34

19.18

25.52

250 Ditto 50 mm

7.97

26.62

34.59

251 Multiply above piping units by 1.35 for fittings /

bends for normal applications
252 Ditto for congested / complex application use
1.60
253 Supply & install 304L SS pipe 15 mm with
screwed joints on walls / racks
254 Ditto 25 mm

4.17

7.55

11.72

7.32

8.48

15.80

255 Ditto 50 mm

14.04

11.90

25.94

256 Multiply above piping units by 1.35 for fittings /

bends for normal applications
257 Ditto for congested / complex application use
1.60
258 Supply & install UPVC pipe 15 mm with cap
joints on walls / racks
259 Ditto 25 mm

3.20

6.57

9.78

5.04

7.18

12.22

260 Ditto 50 mm

8.30

8.48

16.78

261 Multiply above piping units by 1.35 for fittings /

bends for normal applications
262 Ditto for congested / complex application use
1.60
263 Copper pipe type L 12 mm dia including fittings
and erection
264 Ditto 19 mm

9.93

12.90

22.83

16.38

17.58

33.96

265 Ditto 25 mm

24.86

21.42

46.28

266 Ditto 40 mm

44.46

26.31

70.77

267 Ditto 50 mm

75.24

31.10

106.34

268 Copper pipe type K 12 mm dia including fittings

and erection
269 Ditto 19 mm

11.65

13.42

25.06

19.08

18.51

37.60

270 Ditto 25 mm

29.02

22.57

51.58

271 Ditto 40 mm

50.65

27.87

78.52

272 Ditto 50 mm

82.06

32.03

114.09

34

Description

Unit

Material

Labor

Total

(9)
CSI DIVISION 16 ELECTRICAL
SWITCHGEAR / CLEAN ROOM ITEMS
1

Substation, 150 KVA, 1200 AMP, with

transformer, breakers, pad, grounding

EACH

46,707.30

46,707.30

Substation, 1000 KVA, 3000 AMP, with

transformer, breakers, pad, grounding

EACH

86,865.70

86,865.70

Service switchboard, 600 A, 3PH, 277/480V

MCMB, breakers, bus, meter, enclosure

EACH

17,995.35

17,995.35

Distribution, switchboard, 600 A, 3PH, 120/208

V, enclosure, breakers

EACH

6,527.12

6,527.12

Distribution, switchboard, 800 A, 3PH, 120/208

V, enclosure, breakers

EACH

8,277.75

8,277.75

Distribution switchboard, 400 A, 3PH, 277/480

V, enclosure, breakers

EACH

5,475.46

5,475.46

Transformer, 480/120 V, 3 phase, 500 KVA

EACH

23,168.26

23,168.26

Transformer, 480/120 V, 3 phase, 750 KVA

EACH

32,440.44

32,440.44

Transformer, 480/120 V, 3 phase, 1,000 KVA

EACH

38,777.24

38,777.24

10 Panel boards, bolt-on breakers, 277/480V,

3PH, 4W, 100 A, 24 circuits

EACH

2,996.39

2,996.39

11 Panel boards, bolt-on breakers, 277/480V,

3PH, 4W, 225 A, 42 circuits

EACH

4,587.29

4,587.29

12 Panel boards, bolt-on breakers, 277/480V,

3PH, 4W, 400 A, 42 circuits

EACH

4,753.70

4,753.70

13 Transformer, 480/120 V, 3 phase, 45 KVA

EACH

3,593.14

569.74

4,162.88

14 Ditto 75 KVA

EACH

4,420.58

797.65

5,218.23

15 Ditto 100 KVA

EACH

5,044.00

968.57

6,012.57

16 Ditto 150 KVA

EACH

5,610.74

1,150.88

6,761.62

17 Ditto 200 KVA

EACH

7,106.93

1,732.03

8,838.96

18 Ditto 500 KVA

EACH

11,051.46

2,392.94

13,444.39

19 Motors 230 / 460 v 60 Hz 0.50 HP

EACH

139.41

85.47

224.88

20 Ditto 1 HP

EACH

199.49

85.47

284.96

21 Ditto 2.50 HP

EACH

260.70

85.47

346.16

22 Ditto 5 HP

EACH

311.71

125.34

437.05

23 Ditto 10 HP

EACH

481.74

125.34

607.08

24 Ditto 25 HP

EACH

889.79

165.24

1,055.03

25 Ditto 50 HP

EACH

1,983.59

188.02

2,171.61

26 Emergency generator to 30 KW

EACH

26,157.30

26,157.30

27 Emergency generator to 100 KW

EACH

48,520.35

48,520.35

28 Emergency generator to 400 KW

EACH

124,723.04

124,723.04

29 Emergency generator to 750 KW

EACH

259,499.08

259,499.08

35

30 Emergency generator to 1,000 KW

EACH

306,592.00

306,592.00

31 Automatic transfer switch 400 A

EACH

11,351.10

1,017.98

12,369.08

32 Exit sign, incandescent, battery, surface

mounted

EACH

314.77

104.26

419.03

33 Exit sign, incandescent, battery, recessed

EACH

305.00

136.14

441.14

34 Exit sign, fluorescent, battery, surface mounted

EACH

314.77

104.26

419.03

35 Exit sign, fluorescent, battery, recessed

EACH

314.77

136.14

450.90

36 600 V armored cable # 12

LF

0.51

1.36

1.87

37 Ditto # 10

LF

1.08

1.94

3.03

38 Ditto # 8

LF

2.10

3.64

5.74

39 Conduit and wire, in slab, 60 A, 3 CU wire 600

V THHN #6, 1 CU soft #10, in 1 PVC

LF

2.70

5.49

8.20

40 Conduit and wire, in slab, 100 A, 4 CU wire 600

V THHN #2, 1 CU soft #8, in 1 PVC

LF

6.99

7.45

14.44

41 Conduit and wire, in slab, 225 A, 4 CU wire 600

V THHN #4/0, 1 CU soft #1, in 2 PVC

LF

20.32

14.54

34.86

42 Conduit and wire, in slab, 300 A, 4 CU wire 600

V THHN 350 MCM, 1 CU soft #4, in 3 PVC

LF

30.22

18.10

48.32

43 Conduit and wire, in slab, 800 A, 6 CU wire 600

V THHN 500 MCM, 2 CU soft #3/0, in 3 PVC

LF

66.78

35.52

102.29

44 Conduit and wire, in slab, 1200 A, 16 CU wire

600 V THHN 350 MCM, 4 bare CU soft #3/0, in
3 PVC

LF

130.79

75.21

206.00

45 Conduit and wire, 60 A, 3 CU wire 600 V THHN

# 6, 1 bare CU soft # 10, in 1 EMT

LF

3.16

6.38

9.54

46 Conduit and wire, 100 A, 4 CU wire 600 V

THHN #2, 1 bare CU soft #8, in 1 EMT

LF

8.00

9.36

17.36

47 Conduit and wire, 400 A, 4 CU wire 600 V

THHN 500 MCM, 1 bare CU soft #2, in 3 EMT

LF

47.87

21.73

69.60

48 Conduit and wire, 1600 A, 20 CU wire 600 V

THHN 400 MCM, 5 bare CU soft # 4/0, in 3
EMT

LF

222.30

105.10

327.40

49 Conduit and wire, 60 A, 3 CU wire 600 V THHN

#6, 1 bare CU soft #10, in 1 GRS

LF

5.43

7.92

13.35

50 Conduit and wire, 100 A, 4 CU wire 600 V

THHN #2, 1 bare CU soft # 8, in 1 GRS

LF

10.11

11.18

21.29

51 Conduit and wire, 400 A, 4 CU wire 600 V

THHN 500 MCM 1 bare CU soft #2, in 3 GRS

LF

54.05

26.29

80.34

52 Conduit and wire, 1000 A, 12 CU wire 600 V

THHN 400 MCM, 3bare CU soft # 2/0, in 3
GRS

LF

143.08

73.86

216.94

53 Cable trays ladder type 12, with ells, tees, 4

drop cover, uni-strut hangers

LF

24.07

21.79

45.85

36

54 Fixture, incandescent, commercial grade,

surface mounted, with junction box, wire,
conduit, 100 watt

EACH

66.50

110.39

176.88

55 Fixture, incandescent, commercial grade,

surface mounted, with junction box, wire,
conduit, 200 watt

EACH

84.05

113.81

197.86

56 Fixture, fluorescent, commercial grade,

recessed, with junction box, wire, conduit, 2x2

EACH

121.65

118.39

240.04

57 Fixture, fluorescent, commercial grade,

recessed, with junction box, wire, conduit, 2x4

EACH

156.78

132.46

289.24

58 Fixture, fluorescent strip, surface mounted, with

junction box, wire, conduit, 4, 4 lamp

EACH

149.08

155.77

304.86

59 Fixture, mercury vapor, hi-bay, with junction

box, wire, conduit, 1000 watt

EACH

770.45

237.94

1,008.39

60 Fixture, metal halide, hi-bay, with junction box,

wire, conduit, 400 watt

EACH

490.08

236.83

726.91

61 Fixture, high pressure sodium, hi-bay, with

junction box, wire, conduit, 1000 watt

EACH

633.81

268.60

902.41

62 Perimeter security lights, industrial, 400 watt

HPS wall pack, 40 on center

EACH

15.26

6.87

22.13

LF

14.81

7.82

22.63

64 Telephone system, warehouse, 10,000 SF

SUM

4,465.28

4,465.28

65 Telephone system, office, 150,000 SF

SUM

66,491.31

66,491.31

66 Fire alarm system, warehouse, 10,000 SF

SUM

10,821.61

10,821.61

67 Fire alarm system, office, 150,000 SF

SUM

140,668.76

140,668.76

68 Public address/intercom system, warehouse,

10,000 SF

SUM

5,856.12

5,856.12

69 Public address/ intercom system, office,

150,000 SF

SUM

58,195.14

58,195.14

70 Security system, warehouse, 10,000 SF

SUM

4,257.88

4,257.88

71 Security system, office, 150,000 SF

SUM

62,465.23

62,465.23

72 Rceptacle, duplex, commercial, standard

grade

EACH

28.67

97.15

125.82

73 Receptacle, 100 A, welding, heavy duty

EACH

407.74

209.85

617.59

63 Perimeter security lights, school, 250 watt HPS

wall pack, 30 on center

74 Switch, commercial, single pole

EACH

23.18

68.68

91.86

75 Switch, commercial, double pole

EACH

32.94

79.73

112.66

76 Switch, commercial, three way toggle

EACH

28.06

83.40

111.46

77 Sound system, 12 outlets

EACH

14,030.28

14,030.28

78 Intercom system, 20 outlets

EACH

17,690.35

17,690.35

79 Master clock system, 10 devices

EACH

13,420.26

13,420.26

80 Closed circuit TV

EACH

4,382.61

4,382.61

81 Remote entry card reader

EACH

4,923.79

4,923.79

CLEAN ROOM ITEMS

37

82 Filter Fan 2 x 4 with HEPA Filter 650 CFM /

90FPM

EACH

8,321.04

102.40

8,423.44

83 18 x 18 x 16 pass thru EP SS (w/o window)

EACH

1,622.74

128.01

1,750.76

84 Roll up pass thru 36 x 30 x 60 wall mounted

EACH

8,706.00

153.62

8,859.61

LF

43.83

10.24

54.07

86 Acrylic glove box 2 glove 36 x 24 x 20

EACH

1,044.72

51.21

1,095.93

87 Atmospheric chamber without air lock 36 x 24

x 24

EACH

3,671.91

76.80

3,748.71

88 Ceiling module, fluorescent illuminators 4,600

FC, 4 x 2

EACH

229.79

102.40

332.19

89 Ditto flow thru module 3,100 FC

EACH

3,849.59

153.62

4,003.21

90 Portable A/C module 20,000 BTUs

EACH

4,086.49

153.62

4,240.11

91 Ditto 50,000 BTUs

EACH

5,294.67

204.82

5,499.49

92 Humidifier 20 CFM 110 V

EACH

3,882.18

98.00

3,980.18

93 Horizontal laminar flow station 4 x 26 x 26

EACH

7,072.93

195.99

7,268.91

94 Ditto vertical 46 x 4 x 4

EACH

6,551.53

195.99

6,747.52

95 HEPA filter 2 x 4

EACH

833.11

48.99

882.11

85 Soft wall Polyurethane 40 mm clear 8 high

96 Ditto 2 x 3

EACH

799.12

48.99

848.11

97 ULPA filter 2 x 4

EACH

957.80

48.99

1,006.79

98 Ditto 2 x 3

EACH

912.45

48.99

961.45

99 Clean room dehumidification module 100CFM

EACH

3,910.51

195.99

4,106.50

100 Ditto 250 CFM

EACH

7,787.02

195.99

7,983.01

101 Pass thru chamber S.S. 1 x 1 x 1

EACH

1,059.81

98.00

1,157.81

102 Ditto 16 x 1 6 x 2

EACH

1,779.56

98.00

1,877.56

103 Ditto 2 x 2 2

EACH

2,187.62

98.00

2,285.62

104 Glove box air lock 12 x 12 x 14

EACH

2,406.38

100.28

2,506.66

105 Ditto 12 x 12 x 16

EACH

2,465.33

100.28

2,565.61

106 Ditto 16 x 16 x 16

EACH

2,561.67

100.28

2,661.94

107 Vacuum Antechamber 16 diameter x 24 long

(4 ports)
108 P-Thru vacuum / nitro oven 120 v / 60 Hz

EACH

13,318.42

123.06

13,441.48

EACH

9,317.22

123.06

9,440.29

109 Air Handler (High Volume) 3300 CFM 1.5 HP

EACH

1,643.55

123.06

1,766.62

110 HDPE 3,000 gallon Polyethylene tank 90 dia x

130 high
111 Ditto 5,000 gallon

EACH

1,696.45

104.08

1,800.53

EACH

3,747.72

104.08

3,851.81

112 Ditto horizontal 2,500 gallon 60 dia

EACH

2,960.43

104.08

3,064.52

113 2 PVC gate valves with EPDM seat NSF61

150 PSI 120 F
114 4 ditto

EACH

429.24

104.08

533.32

EACH

881.12

104.08

985.20

115 6 ditto

EACH

1,752.54

104.08

1,856.62

116 1 CPVC pressure valves

EACH

386.10

52.04

438.14

117 2 ditto

EACH

589.93

78.06

667.99

118 1 3 way CPVC with threaded socket true

union
119 2 ditto

EACH

88.43

52.04

140.47

EACH

236.18

78.06

314.25

120 4 ditto

EACH

1,004.07

78.06

1,082.13

38

121 0.50 CPVC solenoid valves with EPDM seals

EACH

561.89

52.04

613.93

122 0.75 ditto

EACH

746.30

52.04

798.35

123 0.50 Clear PVC pipe (Material only)

LF

1.39

1.39

124 0.75 ditto

LF

1.86

1.86

125 1 ditto

LF

3.68

3.68

126 1.50 ditto

LF

4.48

4.48

127 2 ditto

LF

5.91

5.91

128 4 ditto

LF

18.55

18.55

2.29

2.29

129 Multiply above by 1.45 - 1.65 to above for

fittings
130 1 CPVC sch 80 (Material only)

LF

131 2 ditto

LF

7.43

7.43

132 4 ditto

LF

23.96

23.96

133 6 ditto

LF

42.46

42.46

13,874.65

208.17

14,082.82

134 Multiply above by 1.45 - 1.65 to above for

fittings
CPVC
135 304 SS Pass through 40 x 40 with window

EACH

136 316 SS 12g tank 500 gallon 50 dia x 60 high

EACH

12,108.10

78.06

12,186.16

137 316 SS 12g tank 1,000 gallon 70 dia x 70

high
138 316 SS 12g tank 1,500 gallon 80 dia x 70
high
139 316 SS Agitator 1 HP TEFC 115 / 230 v single
speed 1 dia shaft 32 long
140 Ditto 1.5 HP 230 v

EACH

20,236.60

78.06

20,314.66

EACH

27,214.37

104.08

27,318.45

EACH

4,254.61

104.08

4,358.69

EACH

5,554.17

104.08

5,658.26

141 Clean room AC module including ductwork, 220

v and controls 20,000 BTUs
142 Ditto 50,000 BTUs

EACH

5,540.15

208.17

5,748.32

EACH

7,414.56

208.17

7,622.72

UNDERGROUND PVC ELECTRICAL

CONDUIT (excluded excavation and backfill)
143 25 mm dia

3.69

4.21

7.90

144 50 mm

7.23

5.98

13.21

145 75 mm

13.36

9.31

22.67

146 100 mm

22.20

14.30

36.50

Trench Ducts with cover (excluded

excavation and backfill)
147 6 wide

LF

105.00

12.50

127.50

148 9 wide

LF

125.00

15.50

140.50

149 12 wide

LF

145.00

17.00

162.00

150 18 wide

LF

175.00

20.00

195.00

151 24 wide

LF

235.00

27.00

262.00

152 6 x 6 x 6 deep

Each

6,750.00

1,550.00

8,300.00

153 Ditto 9 x 9 x 6 deep

Each

10,500.00

2,250.00

12,750.00

LF

12.50

2.70

15.20

Concrete Electrical Vaults

Miscellaneous Site Work

154 Armco galvanized guard rail (2 # rails)

39

156 Rail spur (standard gauge)

LF

55.50

67.00

122.50

157 3 asphaltic concrete on 4 stone base

SF

1.30

1.30

2.60

158 Ditto 3 on 6 stone base

SF

1.65

1.40

3.05

159 General repairs to bituminous roadway 2 with

4 stone base, after installing utilities 2 wide
160 Ditto 3 wide

LF

45.00

22.00

67.00

LF

65.00

42.00

107.00

161 Ditto 4 wide

LF

105.00

64.00

169.00

NOTE: To determine man hour units from the above data source divided labor value by
$53.00, 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.

40

SECTION B 5
GENERAL CAPITAL COST ESTIMATING DATA /
CALIBRATION FACTORS (LOCATION FACTORS / PRODUCTIVITY)
The following general cost estimating data is applicable to City Location Factors, Country Location
Factors (North America and International Locations) Engineering / Architectural CM and Validation
Fees, Labor Rates (union and non union), Sales Tax, Inflation Rates, Bricks, Carbon Steel Pipe,
Rebar, Ready Mix Concrete, L.W. Concrete Blocks, R.C. Pipe, Copper Pipe, Conduit, Stainless Steel
pipe, Average hourly labor rates, Average Productivity Modifiers and General Conditions.

CITY LOCATION FACTORS

(USA and Canada Locations)

Location factors are based on 50 / 50 split of labor and materials

ALABAMA
Anniston
Birmingham
Decatur
Huntsville
Mobile
Montgomery
ALASKA
Anchorage
Fairbanks
Juneau
ALBERTA
Calgary
Edmonton
Fort McMurray
ARIZONA
Flagstaff
Phoenix
Tucson
ARKANSAS
Little Rock
Jonesboro
BRITISH COLUMBIA
Vancouver
Victoria
CALIFORNIA
Anaheim
Fresno
Long Beach
Los Angeles
Oakland

Location Factor
.84
.86
.83
.86
.88
.85
1.27
1.24
1.22
1.15 1.30
1.20 1.30
1.25 1.60
.86
.92
.87
.81
.80
1.08
1.07
1.06
1.07
1.08
1.14
1.10

Riverside
Sacramento
San Diego
San Francisco
San Jose
Santa Rosa
Woody
COLORADO
Colorado Springs
Denver
Ft Collins
Gypsum
Leadville
Vail
CONNECTICUT
Hartford
New Haven
Stamford
D.C. CITY of WASHINGTON - BASE CITY
Washington D.C.
DELAWARE
Dover
Wilmington
FLORIDA
Fort Lauderdale
Jacksonville
Miami
Naples
Orlando
St. Petersburg
Tampa
GEORGIA
Atlanta
Macon
Savannah
HAWAII
Honolulu
IDAHO
Boise
Ketchum
Pocatello
Twin Falls
ILLINOIS
Chicago
Kankakee
Peoria
Rock Island
Rockford

1.06
1.07
1.07
1.20
1.12
1.11
1.04
.93
.94
.92
.91
.92
.91
1.08
1.07
1.06
1.00
.95
.96
.87
.87
.89
.88
.92
.88
.91
.93
.87
.87
1.17
.90
.89
.88
.86
1.06
.96
.95
.97
.94

INDIANA
Evansville.
Hammond
Indianapolis
South Bend
IOWA
Cedar rapids
Des Moines
Davenport
KANSAS
Topeka
Wichita
KENTUCKY
Bowling Green
Georgetown
Louisville
Paducah
LOUISIANA
New Orleans
Shreveport
MAINE
Bath
Portland.
MANITOBA
Winnipeg
MARYLAND
Baltimore
Silver Spring
MASSACHUSETTS
Boston
New Bedford
Lowell
Springfield
Worcester
MICHIGAN
Detroit.
Flint
Grand Rapids.
Kalamazoo
Lansing
Saginaw
MINNESOTA
Duluth
Minneapolis
St. Paul
MISSISSIPPI
Biloxi
Canton

.96
.95
.96
.94
.88
.90
.88
.86
.85
.86
.86
.86
.86
.93
.82
.89
.87
.99
.96
.97
1.08
1.05
1.05
1.05
1.05
.94
.93
.93
.94
.93
.92
.94
.96
.93
.88
.86

Jackson
Tupelo
MISSOURI
Columbia
Kansas City
St. Louis
MONTANA
Butte
Missoula
NEBRASKA
Omaha
NEVADA
Las Vegas
Reno
NEW HAMPSHIRE
Concord
Manchester
NEW JERSEY
Atlantic City
Burlington
Cranbury
Ewing
Hightstown
Jersey City
Medford
Newark
New Brunswick.
Princeton
Trenton
NEW MEXICO
Albuquerque
Las Cruces
Santa Fe
NEW YORK
Albany
Buffalo
Lake George
New York City
Rochester
Saratoga Springs
Schenectady.
Syracuse
Utica
NORTH CAROLINA
Asheville
Charlotte
Raleigh / RTP
Wilmington

.86
.86
.92
.94
.95
.86
.86
.86
.99
.96
.94
.93
.97
.98
.97
.98
.98
1.03
.96
1.08
1.06
1.04
1.02
.87
.86
.88
1.03
1.04
.97
1.20
1.05
1.00
1.06
1.02
1.02
.89
.89
.94
.92

NORTH DAKOTA
Bismarck
Crosby
Fortuna
Fargo
Minot
OHIO
Akron
Canton
Cincinnati
Cleveland
Columbus
Dayton
Lima
Toledo
Youngstown
Zanesville
OKLAHOMA
Oklahoma City
Tulsa
ONTARIO
Hamilton
London
Thunder Bay
Toronto
Sarnia
Sudbury
Windsor
OREGON
Eugene
Portland
PENNSYLVANIA
Conshohocken
Erie
Newtown
Kutztown
Morrisville
New Hope
Philadelphia
Pittsburgh
Reading
Scranton
Yardley
York
West Chester
PUERTO RICO
San Juan
QUEBEC

.88
.89
.89
.88
.87
.91
.90
.91
.94
.88
.89
.90
.90
.89
.90
.87
.85
.99
.97
.97
1.00
.99
.98
.97
.94
.93
.99
.94
.97
.90
.97
.96
1.07
1.01
.95
.94
.98
.93
.96
.94

Alma
Kirkland
Mirabel
Montreal
Sorel
Verdun
RHODE ISLAND
Newport
Providence
SOUTH CAROLINA
Charleston
Columbia
Greenville
SOUTH DAKOTA
Rapid City
Sioux Falls
TENNESSEE
Chattanooga
Clarksville
Cleveland
Jackson
Knoxville
Memphis
Murfreesboro
Nashville
Sweetwater
TEXAS
Abilene
Amarillo
Austin
Beaumont / Port Arthur / Sabine Pass
Corpus Christi
Dallas
El Paso
Fort Worth
Houston
Kennedy
Lubbock
San Antonio
Victoria.
Waco
UTAH
Salt Lake City
VERMONT
Burlington
VIRGINIA
Chatham
Hopewell

.94
.94
.94
.95
.95
.94
.96
.97
.83
.82
.83
.84
.85
.86
.85
.85
.84
.88
.87
.84
.87
.85
.88
.88
.90
.89
.88
.91
.86
.89
.91
.87
.87
.87
.88
.89
.92
.95
.84
.90

Norfolk
Richmond
Roanoke
WASHINGTON
Bellingham
Ferndale
Seattle
Spokane
Tacoma
WEST VIRGINIA
Charleston
Huntington
Hurricane
Institute
Parkersburg
WISCONSIN
Madison
Milwaukee.
WYOMING
Casper
Cheyenne
Gillett

.85
.91
.87
.92
.92
.97
.94
.93
.89
.88
.86
.88
.86
.92
.96
.86
.86
.86

The above North American city indexes / location factors are intended for comparison objectives only.
The base / standard benchmark city is Washington, D.C; i.e. which is fixed at a value of 1.00. Built up
areas close to major cities / Suburbs outside major cities generally have a lower cost basis than major
city center costs. Remote locations, such as, Anchorage or Fairbanks, Alaska, will generally have to a
greater degree have higher prices contrasted to lower 48 major cities, due to increases in logistics
and increased shipping / transportation costs. Canadian city indexes reflect August 2008 Canadian
currency projections. The exchange rate used was: C$ 0.94 (Canadian) = $1.00 US

GLOBAL LOCATION FACTORS, CONSTRUCTION PRODUCTIVITY AND ENGINEERING

(DESIGN & DRAFTING) PRODUCTIVITY Vs USA STANDARDS
(Washington D.C. - 30 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:

Country

City

Argentina
Australia

Melbourne

Location
Factor *
0.96
1.05

Construction
Productivity
1.40 -1.55
1.10 - 1.20

Eng / Design Work

Productivity
1.20 1.30
1.10

Perth
Sydney
Austria
Belgium
Brazil
Canada

China

Cyprus
Czech Republic
Denmark
Egypt
Finland
France
Germany

Greece
Hong Kong
Hungary
India
Israel
Indonesia
Ireland

Italy
Japan
Kuwait
Malaysia
Mexico
The Netherlands
New Zealand
Nigeria
Norway
Oman
Romania
Russia
Poland

Calgary
Edmonton
Fort McMurray
Halifax
Montreal
Toronto
Vancouver
Beijing
Guangzhou
Shanghai

Nice
Paris
Berlin
Hamburg
Munich

Cork
Dublin
Galway

1.05
1.06
1.08
1.06
0.96
1.06
1.06
1.10 1.15
1.03
1.03
1.02
1.03
0.92
0.92
0.92
0.97
0.95
1.10
0.94
1.10
1.04
1.06
1.05
1.04
1.04
0.96
0.99
0.97
0.96
0.94
0.93
1.04
1.06
1.03
0.97
1.08
1.01
0.96
0.94
1.05
1.05
1.00
1.17
1.00
0.96
0.97
0.95

1.10 - 1.20
1.10 1.20
1.10 1.15
1.10 1.15
2.25
1.20
1.20
1.30 1.65
1.15
1.15
1.15
1.10 1.15
2.00 3.00
2.00 3.00
2.00 3.00
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
1.60
1.20 1.60
1.40
2.30 3.25
1.25 - 1.40
2.40 3.25
1.10 - 1.20
1.10 - 1.20
1.10 - 1.20
1.00 - 1.15
1.20 1.35
1.75 2.15
1.40 1.70
1.65 2.15
1.05 - 1.20
1.10 - 1.15
2.50 3.50
1.20 1.40
2.00 2.75
1.45 1.80
1.50 1.85
1.25 1.60

1.10
1.10
1.07
1.05
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

Portugal
Saudi Arabia
Singapore
South Africa
South Korea
Spain
Sri Lanka
Sweden
Switzerland
Taiwan
Thailand
Turkey
UAE
United Kingdom

United States

Venezuela
Vietnam

Birmingham
Cambridge
Edinburgh
Liverpool
London
Manchester
Oxford
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 D C
Benchmarked
Value

0.93
1.00
0.98
0.98
0.96
0.98
0.97
1.12
1.10
0.94
0.94
0.95
0.99
1.07
1.07
1.08
1.07
1.11
1.09
1.07
0.93
1.08
1.06
0.94
0.91
1.08
1.14
1.06

1.25 1.55
1.80 2.50
1.40 1.90
1.35 1.70
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 1.25
1.20 1.35
1.10 1.25
1.10 1.25
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

1.20
1.07
0.92
0.94

1.00
1.00
1.00
1.15 1.25

0.94
0.95
1.00

1.10**
1.00**
0.95**
See below
1.85
0.95**
1.00**
1.00

0.96
0.90

1.40 - 2.00
1.65 2.25

1.20 1.40
1.25 1.40

1.00
1.00
1.00

** Above Washington D.C. using a hybrid of merit shop labor (a combination of union and non-union
labor)
Puerto Rico Productivity Vs US Construction Norms
The following is based on 6 # projects ranging in value from $5 - $55 million built in the lat ten years:

Trade / Skill
Site / Civil work / U G
utilities
Masonry / external walls /
internal partitions
Structural steel
Architectural finishes
Floors / Walls / Ceilings /
Painting / Special finishes
Major Equipment Setting
Piping (process & utility)
HVAC (AHU s / Ductwork /
balancing)
Instrumentation / Electrical /
BMS
Insulation
Engineering / Design work /
CAD operations

Puerto Rico
Range
1.45 2.15
(1.75)
1.50 2.20
(1.80)
1.50 2.25
(1.80)
1.45 2.25
(1.85)

USA Norm

1.55 2.30
(1.85)
1.90 2.60
(2.15)
1.45 2.15
(1.85)
1.65 2.35
(1.90)
1.55 2.25
(1.85)
1.15 1.25

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 $36 - $38 per hour.
The all-in selling rate for an un-skilled worker is $30 - $32 per hour

10

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
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
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

Open Shop / Non-Union

1.00
1.10 1.15
1.00
1.00
1.00
1.10

Union
1.10 - 1.15
1.25 1.35
1.10 - 1.15
1.10
1.15
1.20 1.30

1.05
1.00 - 1.10
1.00
1.15
1.10
1.00 1.10

1.10 - 1.20
1.10 - 1.15
1.05 - 1.10
1.20 - 1.30
1.20
1.15 - 1.20

1.00
1.00 - 1.10
1.00
1.10 - 1.15
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

1.10
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

1.05
0.90 - 1.00
1.05 1.10
1.00 1.05

1.10 - 1.15
1.10 - 1.15
1.10 1.20
1.05 1.15

11

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)
Texas (Gulf Coast) - Base
Case this includes Gulfport,
Baton Rouge, 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
Vermont
Virginia (Washington D.C.)
Virginia
Washington
West Virginia
Wisconsin
Wyoming

1.05 - 1.10
1.05
1.05
1.00 1.05
1.05 - 1.10
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
1.05
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

1.10 - 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

1.05 - 1.10
1.60 1.90
1.05
0.90 - 1.00
1.05
1.00 - 1.05
1.05 - 1.10
1.00

1.10 - 1.20
1.50 2.00
1.15
1.05 - 1.10
1.15
1.10 - 1.15
1.10 - 1.20
1.10 1.15 (typically all
work is completed on
open shop basis)

1.05
1.05
1.10 - 1.15
1.05
1.05
1.00 - 1.05
1.05
1.05

1.10 - 1.15
1.15
1.20 - 1.30
1.15
1.15
1.00 - 1.15
1.15
1.15

12

Detailed Design / Engineering / Architectural and CM Fees (D.D.E.A & CM)

The tables below 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

1. Type and size of project (complex project would trend towards higher percentage values).
2. Local or Federal Government contracts (Contract 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 and associated expenses.
5. New or revamp work revamp work could be a more expensive undertaking.
6. Degree of technical design complexity and sophistication of required design deliverables
(drawings and specifications).
7. Fast Track construction effort (over design of structural elements together with overtime
payments to the design team).
8. Owner Specifications and procedures (complex design deliverables) or Industry standards
using CSI (Masterspec type boilerplate).
9. Current market conditions, plenty of work or lack of work, percentages tend to rise when the
economy is doing well.
10. A new client together with the new learning curve could tend to increase the values indicated
below.

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) LOW TECH FACILITIES Aircraft Hangars,

Manufacturing Facilities (Not Hi-tech Factories),
Hypermarket, Parking Garages, Strip Shopping
malls, Warehouses / Shipping Logistics Center /
Mini Warehouse. (Big Box type facilities) for
applications less than $5 million percentages
could be 10% - 30% more:
For Revamp applications: add 20% - 50% to
selected value.
CONSTRUCTION MGMT* on above facilities
(2) MID TECH FACILITIES
Auditorium, Bowling Alley, Motels, Schools,
Shopping Mall, 2 4 story Townhouse

3.5% - 7%

2.5% - 5%
4.5% - 8.5%

13

Buildings) for applications less than $5 million

percentages could be 10% - 30% more:
Revamp applications: consider adding 20% 50% to selected value.
CONSTRUCTION MGMT* on above facilities
(3). 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 Revamp applications: consider adding 20%
- 50% to selected value.
CONSTRUCTION MGMT* on above facilities
(4) 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:
API Facilities
Animal Testing / Vivarium
Computer Chip Manufacturing Facility ISO # 4
and similar.
Nanoscale R& D Facility
Oral Solid Dosage (OSD)
Toxicology R&D Facility
University Medical R & D facility
Revamp applications: consider adding 20% 50% to selected value.
Validation Services:
CONSTRUCTION MGMT* on above facilities
(5) 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)

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%
8% - 16%
7.5% - 15%
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%

14

Water treatment facility

Off-sites / OSBL / Utilities
Offshore production Facility / Single Point
mooring System
Revamp applications: consider adding 20% 50% to selected 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.
Revamp applications: consider adding 20% 50% to selected value.
CONSTRUCTION MGMT* on above facilities.

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%

Note: These fees / percentage markups are, of course, subject to negotiation, these fees have an
accuracy of +/-20% and are dependent on clients 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).
* 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% - 12% as a profit / fee due to the current high
workload in this sector.
Procurement costs, the activities related to the buy out / 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.
# 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
400 1,200
400 900
350 750
500 1,750
500 1,500
400 1,250

PM / PC / Procurement
M.H. s per M.E. item
15 - 25% of
15 - 25% of
15 - 25% of
15 - 25% of
15 - 25% of
15 - 25% of

A
A
A
A
A
A

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.

15

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

Bricklayer
Carpenter
Electrician
Laborer, General
Operating Engineer, General
Painter, General
Plumber / Pipe fitter
Roofer
Sheet Metal Worker, General
Structural Iron Worker
Average Rate

BASE WAGE
40.14
39.17
46.46
28.88
40.65
35.36
46.32
35.06
45.80
43.75

A
ALL-IN RATE
74.27
72.37
85.94
53.42
75.22
65.42
85.68
64.86
84.74
80.93
74.29

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

Bricklayer
Carpenter

BASE WAGE
30.88
32.48

16

A ALL IN
RATE
57.12
60.08

Electrician
Laborer, General
Operating Engineer, General
Painter, General
Plumber / Pipe fitter
Roofer
Sheet Metal Worker, General
Structural Iron Worker
Average Rate

37.64
20.34
30.94
25.22
37.05
27.45
31.28
32.22

69.60
37.70
57.24
46.57
68.54
50.75
57.88
59.60
56.51

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.

State
Alabama.
Alaska.
Arizona.
Arkansas.
California.
Colorado
Connecticut
Delaware
District of Columbia.
Florida.
Georgia.
Hawaii.
Idaho.
Illinois.
Indiana.
Iowa.
Kansas.
Kentucky.
Louisiana.
Maine.
Maryland.
Massachusetts.
Michigan.
Minnesota.
Mississippi.
Missouri.
Montana.

Tax
(%)
4
0
5.6
6
7.25
2.9
6
0
5.75
6
4
4
6
6.25
6
5
5.3
6
4
5
5
5
6
6.5
7
4.225
0

State
Nebraska.
Nevada.
New Hampshire.
New Jersey.
New Mexico.
New York.
North Carolina.
North Dakota.
Ohio.
Oklahoma.
Oregon.
Pennsylvania.
Rhode Island.
South Carolina.
South Dakota.
Tennessee.
Texas.
Utah.
Vermont.
Virginia.
Washington.
West Virginia.
Wisconsin.
Wyoming.
Canada Provinces impose
QST/GST/PST & HST tax
Average Check with each
Province

17

Tax
(%)
5
6.50
0
6
5
4
4.5
5
5.5
4.5
0
6
7
6
4
7
6.25
4.65
6
5
6.5
6
5
4

Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland
Northwest Territories
Nova Scotia
Nunavut
Ontario
PEI
Quebec
Saskatchewan
Yukon

5
12
12
13
13
5
13
5
13
15.5
12.5
10
5

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.
Year

Material /
Labor Index
Increase
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%
1.2%
1.8%
1.8%
1.9%
1.0%
1.8%
3.6%
3.7%

1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

18

2007
2008
2009 (TBD)

3.9%
3.8%
2.0% - 4.5%

(A) Bricks Common / Facing Brick Unit Prices. Unit Prices are per thousand for fourteen U.S.A.
cities, delivered to site.
City

Waste

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%

Discount Premium
for large for small
quantity quantity
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%
5 7.5%
10 15%

Common
Brick

Facing
Brick

320.90
419.00
396.60
345.10
363.00
338.00
396.80
379.00
405.00
406.80
469.00
408.00
303.40
397.50

466.20
593.20
611.20
452.70
464.50
469.80
605.80
498.52
492.80
618.80
645.20
613.00
443.50
586.00

(B) Carbon Steel Pipe 1 diameter Schedule 40: Unit Prices are per thousand feet for fourteen
USA cities, delivered to site.

City
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington,
D.C.
Wilmington DE

Waste

Premium
for small
quantity
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%

Pipe 1,000 foot Delivered

to site

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%

Discount
for large
quantity
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%

2.5%

7 12.5%

10 15%

3,035

19

3,037
3,092
3,025
3,053
2,975
3,161
3,027
3,104
3,235
3,089
3,296
3,042
3,056

(C) Reinforcing (Rebar) Prices: Unit prices indicated below are for 10 tons delivered, cut and

bent from a rebar fabricator in the following fourteen USA cities, spec is A 36 steel (Cost per
pound $0.40).
Waste

City
Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington,
D.C.
Wilmington DE

Premium
for small
quantity
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 Tons Fabricated, d/d

to site

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%

Discount
for large
quantity
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%

2.0%

7 10%

10 15%

9,225

9,129
10,370
9,206
8,790
9,642
9,400
9,201
9,126
9,522
9,290
9,454
9,217
9,979

(D) Ready Mix Concrete Unit Price Ready Mix Concrete Price per CY / 10 14 CY load: Listed
below 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.
City

Waste

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%

Discount
for large
quantity
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%

Premium
for small
quantity
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%

3,000 PSI

5,000 PSI

96
100
92
104
86
90
95
95
121
97
118
93
107
95

105
110
101
113
95
99
103
103
134
106
129
102
117
105

(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.

20

City

Waste

Discount for
large quantity

Premium
For small
Quantity

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%

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%

Concrete
Block (8 x 8
x 16): 100
units
Delivered to
site
145
155
135
138
146
157
135
150
160
134
200
132
159

2.5%

5 10%

15 20%

133

(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.
City

Waste

Discount for
large quantity
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%

Premium
For small
Quantity
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%

Pipe 100 foot

Delivered to
site
2,105
2,230
2,072
2,116
2,044
2,196
2,092
2,180
2,275
2,126
2,226
2,096
2,124

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%

5 10%

15 20%

2,098

(G) Copper Pipe Type L Unit Prices. Unit Prices are per thousand feet for fourteen U.S.A. cities,
delivered to site.

21

City

Waste

Discount
for large
quantity

Premium
For small
Quantity
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%

0.50Dia
Pipe per
1,000 foot
Delivered
to site
1,685
1,803
1,737
1,772
1,727
1,846
1,722
1,813
1,929
1,785
1,947
1,724
1,750

2Dia Pipe
per 1,000
foot
Delivered
to site
9,596
10,072
9,618
9,737
9,818
10,215
9,830
9,978
10,250
9,895
10,227
9,850
9,870

Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington,
D.C.
Wilmington DE

2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%

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%

2.0%

5 10%

15 20%

1,778

9,860

(H) Galvanized Steel (Rigid) Conduit 2 diameter: Unit Prices are per thousand feet for fourteen
USA cities, delivered to site.
City

Waste

Discount for
large quantity
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%

Premium
For small
Quantity
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%

Conduit 1,000
foot Delivered
to site
5,745
6,028
5,775
5,858
5,647
6,055
5,789
5,886
6,047
5,875
6,020
5,747
5,845

Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington,
D.C.
Wilmington DE

2.0%
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%

5 15%

15 20%

5,840

(I) Stainless Steel 1 diameter: Unit Prices are per thousand feet for fourteen U.S.A. cities,
delivered to site.

22

City

Waste

Discount
for large
quantity

Premium
For small
Quantity

Atlanta
Boston
Burlington NJ
Chicago
Dallas
Los Angeles
Medford NJ
Minneapolis
New York City
Philadelphia
San Francisco
Trenton NJ
Washington,
D.C.
Wilmington DE

2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%

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%

304 SS
0.065 wall
Annealed
Per 1,000
foot
Delivered
to site
3,635
3,858
3,624
3,673
3,475
3,912
3,627
3,780
4,038
3,612
4,150
3,648
3,687

2.0%

5 10%

15 25%

3,628

316L SS
0.065 wall
No polish
per 1,000
foot
Delivered
to site
5,185
5,522
5,252
5,282
4,765
5,621
5,257
5,359
5,702
5,318
5,523
5,257
5,314
5,235

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
01
02
03
04
05
10

1.00
1.02
1.04
1.06
1.08
1.10
1.14

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 Conditions 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 / Radios / Office Furniture / Computers
Site Layout / Batter Boards / Testing / QA Activities

23

Clean Up / Dumpsters / Final Clean Up / Road Sweeping

Permits / As Built Drawings / Postage / Express Mail
Temp Utilities
Videos / Photographs
Bonds / Watchmen

24

SECTION C 1
MAJOR EQUIPMENT (M.E.) BUDGET PRICING & MAN-HOUR
INSTALLATION VALUES
The following tables are a listing of current budgetary pricing mid 2008
and man-hour 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
(millwrights) 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 alongs / chains & pullies:
Millwrights work and other related trades in aligning, leveling and
assembling various components 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 conditionsscattered areas of work)

Average
Productivity

1.25

1.00

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 adjustment 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 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.
Material
PVC (Sch 80)
CPVC (Sch 8)
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)

Material
uplift (Low)
0.50
0.60

Material
uplift (High)
0.60
0.70

1.00

1.00

2.40
2.00
1.80

2.70
2.30
2.00

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

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

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

General Conversion Values - Imperial to Metric Units

Unit
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

Conversion Factor
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.
Process
Equipment
H 2 Heater
H 3 Heater
Stack
H 1 Heater
Stack
H 2A Heater
H 3A Heater
Stack
Total
M.H. s per
Ton

Size / Feet

Weight /
Tons
375 T
375 T
30 T
25 T
25 T
50 T
50 T
15 T
945T

40 x 40 x 25
40 x 40 x 25
160
50 x 40 x 20
135
45 x 15 x 10
45 x 12 x 7
90

Days

M.H.s

15
15
6
5
3
7
4
2

720
720
350
145
115
265
155
60
2,530
2.67

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
productivity adjustments on page 2 to calibrate installation man-hours.
Type of Major
Equipment
Rotating Equipment

Percentage of new
major equipment
(Labor and Materials)
5% - 30%

Pressure vessels

5% - 20%

Atmospheric storage
tanks / vessels

5% - 15%

Comments
Consider any new seals,
bushings, packings, impellers,
and new motors etc.
Consider any new nozzles,
man-ways, baffles and internals;
consider any modifications or
removals of agitators.
Consider any new nozzles,
man-ways, baffles and any
internals, ladders and
walkways.

(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 manhours.
Type of Major
Equipment

Rotating Equipment

(A) Transport Costs

within continental
USA
(B) Remove and pack
components
(A) 3% - 5%

(B) 5% - 25% of new

major equipment cost

Pressure vessels

(A) 3% - 5%

(B) 5% - 20% of new

major equipment cost

Atmospheric storage
tanks / vessels

(A) 3% - 5%

(B) 5% - 15% of new

major equipment cost

Comments

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.

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

Size / Tons
50
100
250
500

Installation
Man-hours
80
96
110
124

$ Equipment
Cost
96,500
153,600
215,750
351,000

Cost per Ton

1,930
1,536
863
702

Excludes crane costs and crane operator

Agglomeration / Briquette / Compactor Stainless Steel 40 Ton

Compactor 10 diameter 25 HP motor with screw feeders and associated
equipment $28.875 - $47,250

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

Cost per CF - Low

Cost per CF - High

S.S. 27 CF / 1 CY with 15
HP / 7.5 HP -2 speed drive

$50.56

$73.87

Excludes installation (allow 3 - 7% of purchase cost as a budget to install

unit).

Hot Water Heater (Electric)

Gallons
50
100
250
500
1,000

Installation
Man-hours
2.5
3.5
6.0
10.0
18.0

$ Equipment
Cost
2,750
4,500
10,800
18,300
34,030

Cost per Gallon

55
45
43
37
34

Tunnel Freezer (Ammonia) 10,000 pounds per hour

Specification

Cost per LF - Low

Cost per M - High

$5,040

$7,613

$28 per pound

production rate

$44 per pound

production rate

65 long with compressor,

evaporator, 2 # screw
conveyors, to -30 degrees
C

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

Cost per LF - High

Cost per M Low

Cost per M - High

$118.13

$173.25

$388.50

$568.05

Excludes installation (allow 3 - 5% of purchase cost as a budget to install

unit).

Plate Filter (Recessed) 15 HP vacuum pump and 7.5 HP hot

water pump and plate condenser.
Cost per CF - Low

Cost per CF - High

$1,969

$2,625

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

Cost per SF - High

Cost per M2 Low

Cost per M2 High

$47

$68

$508

$735

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

Cost per CF - High

$1.21

$2.36

Excludes installation (allow 4 - 7% of purchase cost as a budget to install

unit).

Dust Collector / Cartridge Filter Unit

Surface Area
of Filter in SF
/ M2

Equipment
Cost

Cost per SF

Installation
Man-Hours

500 / 46.50
1,000 / 92.90
2,500 / 232.35
5,000 / 464.70

$7,245
$10,080
$15,488
$20,738

$14.58
$10.08
$6.20
$4.15

20
24
32
46

Excludes installation (allow 5 - 8% of purchase cost as a budget to install

unit).

Crusher (Impact)
Production
Rate in
Tons per
Day

HP

2,000
4,000
7,500

25/30
40
50

Equipment Approximate No of Cost

Cost in $s
Weight in
pieces per
pounds
Ton
194,565
249,270
322,980

40,000
60,000
80,000

6/8
6/8
6/8

Installatio
n Manhours

$98
$62
$43

Screw Conveyor
Diameter

HP

$ Cost per LF

$ Cost per M

4
6
9
12

5.0
7.5
10
12.5

44.63
56.18
67.73
108.36

146.37
184.28
222.18
355.43

5 7% of Conveyor purchase cost should provide an adequate installation

budget for setting conveyor, includes drives, frames and final alignment.

240
340
440

Bin Activator (CS):

Diameter

HP

$ Material
Cost

Installation
Man-Hours

24
30
36
42
48

1.5
2.5
2.5 / 5.0
2.5 / 5.0
7.5

5,628
6,720
7,623
8,484
9,534

10
12
14
18
28

Multiply by 1.70 for Stainless Steel 304

Air Dryer Desiccant:

Capacity
$
Approximate
SFCM
Equipment
Weight in
Cost in $
pounds
1.0
2.5
5.0
10.0
25.0

1,838
2,363
2,867
3,234
4,977

30
50
70
140
250

Installation
Man-Hours

Number
of
items

Installation
Man-Hours
per SFCM

4
6
8
12
16

4/6
4/6
4/6
4/6
4/6

4.00
2.40
1.60
1.20
0.64

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

$3,255

$5,250

$10,679

$17,220

5 7% of Screw purchase cost should provide an adequate installation

budget for setting screw press, includes drives, frames and final alignment.

Communintors: (Solids / Liquids):

Inlet /
Gallons
$
Outlet
per Day Equipment
Diameter
Cost $
4
6
8

70,000
120,000
180,000

3,948
4,977
6,363

HP

# of
items

Installation
Man-Hours

Cost
per
Gallon
$

0.5
1.0
1.5

4/6
4/6
4/6

16
20
24

57
42
36

Wind Turbines
Commercial scale wind turbines 1.5 - 2.3 MW cost $$1.6 - $2.3
million to install
Cost to power aver home wind = $40 - $60K rule of thumb turbines
under 100 KW cost $4,000 - $6,000 per Kilowatt
(2)

ACTIVATOR / BIN - HOPPER DISCHARGER / BINS

(A)

BIN CONED BOTTOM C.S.

Cu Yards / M3

Material

M.H. s

25 / 19
50 / 38
100 / 76
250 / 190

$4,175
$8,751
$17,578
$44,751

6
10
16
44

Cost per Cu Yard

Cost per M3

$167 - $179
$219 - $235

(B)
BIN DISCHARGER 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 page 2 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.

(C)

H.P.

$ / H.P.

0.5 2.5
2.5 5.0
5.0 10.0

$5,497
$2,919
$2,126

BIN / STORAGE HOPPER VERTICAL C.S. A- 515

Cubic Yards /
M3

Cost

Installation
Man-hours

$ Cost per
Cubic Yard

20 / 15
100 / 76
250 / 190

$9,991
$21,139
$32,062

8
18
26

475
201
122

Cost per Cubic Yard $128 $499 (excluding labor

installation)
Cost per M3 $169 - $666 ditto

10

Add 3% for transport to site for US and overseas applications (ocean freight
would increase freight cost)
Add Installation Man-hours
(3)

AERATORS
(A)

AERATOR SURFACE

10 HP Material Cost $14,606 - hookup materials $1,500 - 28 hours

to install
25 HP Material Cost $30,214 - hookup materials $2,500 - 38 hours
to install
50 HP Material Cost $43,229 - hookup materials $3,500 - 44 hours
to install
Cost per HP $864 - $1,461

Add 3% for transport to site for US and overseas applications (ocean

freight would increase freight cost)
(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

$1,300
$809
$638
$605

(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 page 2 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.

11

AGITATORS

120

100

Man Hours

80
Top Entry
60

Side Entry
Bottom Entry

40

20

0
2.5

10

15

20

25

50

Horsepower

(B) Material / Equipment Budget Cost:

$1,874 - $2,258 / per H.P.
$4,331 - $5,287 / per H.P.

Propeller
Turbine

(C) Agitator / Mixer- A285 - 1,800 RPM

HP

$ Cost of
Equipment

Installation
Man-hours

$ Cost per H.P. less

installation manhours

10
50
100
150

2,020
9,883
19,055
28,010

38
52
62
82

202
198
191
187

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
Add installation man-hours
(D) Agitator 316 L 1,800 RPM

2.5 5 HP = $6,022 - $6,689 per HP

10 15 HP = $4,494 - $5,366 per HP

12

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 page 2 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.

VOLUME
CUBIC FEET /
CUBIC YARD / M3
# OF MAJOR PIECES
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)

(F)

H.P.

INSTALLATION
MAN-HOURS
ROTATING
MIXER

M.H. per HP

M.H. per M3

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

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 page 2 to calibrate installation man-hours.
HP

Material

INSTALLATION
MAN-HOURS

M.H. per HP

5
10
15
25

$7,545
$10,642
$13,241
$16,866

22
28
36
42

4.4
2.8
2.4
1.7

13

(G)

(H)

(5)

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 page 2 to calibrate installation man-hours.
HP

$ Material

INSTALLATION
MAN-HOURS

M.H. per HP

5
10
15
25

$9,135
$12,836
$15,681
$20,426

22
30
39
48

4.4
3.0
2.6
1.9

AGITATOR Top Mounted Entry Monel:

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 page 2 to calibrate installation man-hours.
HP

Material

INSTALLATION
MAN-HOURS

M.H. per HP

5
10
15
25

$10,887
$15,572
$19,121
$26,181

24
35
39
51

4.8
3.5
2.6
2.0

AIR CONDITIONING PER TON BUDGET PRICING Includes

labor / material (ductwork & controls)
Ref

TYPE OF AIR
CONDITIONING

$ COST PER TON

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

$1,985

B
C
D
E
F
G

14

$2,195
$3,329
$3,943
$4,673
$6,489
$3,500 - $4,500

H
I
J
K
L

M
N
O
P

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
Admin offices
Industrial Bldg / Factory
Hospital
Research Lab (non
classified)

$3,750 - $5,000
$5,602
$6,358
$7,550
$1,985 - $7,550
$ / SF
$12.70 - $22.50
$7.67 - $ 11.30
$11.87 - $22.30
$22.26 - $49.60

(Q) 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
System

SF

M2

2 Pipe FCU system 244,500

4 Pipe FCU system 244,500
(R)

SF 22,723 M2
SF 22,723 M2

$ SF
$ M2
Cost
Cost
$25.15 $270.90
$26.83 $288.75

Axial Fan / Vane (with adjustable pitch)

5,000 CFM 2.5 HP $4,247 - 6 hours to install

10,000 CFM 5 HP $12,149 - 8 hours to install
25,000 CFM 10 HP $21,378 14 hours to install
50,000 CFM 15 20 HP $26,644 - 28 hours to install

1,000 CFM $519 - $853

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(S)

Air Conditioner (D-X) Roof Mounted Unit (excludes hook

materials)
5 Ton $6,720 8 hours to install
10 Ton $13,619 11 hours to install
15 Ton $17,955 14 hours to install
20 Ton $21,142 16 hours to install
25 Ton $27,494 22 hours to install
50 Ton $50,962 30 hours to install

Cost per Ton $1,019 - $1,344

Man hours per ton 0.60 1.60
15

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(T)

Fan Horizontal Coil Unit with Hydronic Heating cooling

(2-pipe system)
250 CFM Material $888 - 4 hours to install $150 hookup material
500 CFM Material $1,344 - 5 hours to install $150 hookup material
1,000 CFM Material $2,179 - 6 hours to install $150 hookup material
2,500 CFM Material $7,298 - 8 hours to install $250 hookup material
5,000 CFM Material $9,119 -12 hours to install $250 hookup
material
Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)

(U)

Fan Horizontal Coil Unit with Hydronic Heating cooling

(4-pipe system)
250 CFM Material $1,066 - 4 hours to install $150 hookup material
500 CFM Material $1,481 - 5 hours to install $150 hookup material
1,000 CFM Material $2,284 - 6 hours to install $150 hookup material
2,500 CFM Material $5,366 - 8 hours to install $250 hookup material
5,000 CFM Material $9,471 -12 hours to install $250 hookup
material
Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)

(V)

Ditto Vertical heating / cooling (2 pipe systems)

250 CFM Material $1,066 - 4 hours to install $150 hookup material
500 CFM Material $1,376 - 5 hours to install $150 hookup material
1,000 CFM Material $2,389 - 6 hours to install $150 hookup material
2,500 CFM Material $5,649 - 8 hours to install $250 hookup material
5,000 CFM Material $10,038 - 8 hours to install $250 hookup
material
Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)

(W)

Ditto Vertical heating / cooling (4 pipe systems)

250 CFM Material $1,118 - 4 hours to install $150 hookup material
500 CFM Material $1,633 - 5 hours to install $150 hookup material
1,000 CFM Material $2,536 - 6 hours to install $150 hookup material
2,500 CFM Material $5,880 - 8 hours to install $250 hookup material

16

5,000 CFM Material $10,505 -12 hours to install $250 hookup

material
Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)

(X)

Air Conditioner (D-X) Roof Mounted Unit (excludes hook

materials)
5 Ton $6,662 8 hours to install
10 Ton $13,797 11 hours to install
15 Ton $17,729 14 hours to install
20 Ton $21,441 16 hours to install
25 Ton $27,468 22 hours to install
50 Ton $55,010 30 hours to install

(Y)

Cost per Ton $1,099 - $1,334

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)
Air Coolers, C. S. A 515

S.F.

H.P.

Shipping
weight

$
Equipment
Cost

Installation
man-hours

500
1,000
2,000
2,500

2.5
7.50
15
15/20

5.50 ton
9 ton
15 ton
18

40,754
54,540
79,301
87,409

154
182
210
254

$ Cost per
H.P. (excl
installation)
82
55
40
35

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(Z)

Miscellaneous Costs:
Self contained Thu wall units cooling only, 8,000 BTUs 120 volt
$310 plus 2.5 hours to install.
Thru wall units 0.5 2.5 Ton with electric heat $2,982 - $3,218 per
Ton
Roof top gas fired multi-zone 1 50 Ton $3,560 - $3,959 per Ton
FCU 2 pipe boiler / chiller 10 250 Ton $3,864 - $4,389 per Ton
FCU 4 pipe boiler / chiller 10 250 Ton $3,995 - $4,578 per Ton
FCU Floor or ceiling mounted units 1 ton $499
2.5 ton
$1,118
5 ton
$2,016
Multi-zone Rooftop H/C including dampers and controls10 100 ton
$1,580 - $1,801 per ton

17

Reheat Coils (Electrical) 5 kw material = $1,265 installation

3.5 hours
Ditto 10 kw
$1,612
14 hours
Ditto 15 kw
$1,775
16 hours
Ditto 20 kw
$2,268
18 hours
Ditto 25 kw
$2,405
18 hours
Ditto 50 kw
$3,476
22 hours
Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)

(6)

AIR DRYERS:
(A)

(B)

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 page 2 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.
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

Air Dryer, C S A 285C

CFM

$
Equipment
Cost

Installation
man-hours

Cost per
CFM

5,000
15,000
45,000
60,000

195,239
584,624
1,573,026
1,963,416

428
1,580
1,700
2,150

37.20
37.10
33.30
31.20

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
Add installation man-hours

18

(7)

AIR HANDLER UNITS:

(A)

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

(B)

(8)

CONCEPTUAL ESTIMATING for budgeting Air handling

type equipment.
(1)

Air Handlers $2.84 - $6.62 per CFM

(Equipment Only)

(2)

Fans & Blowers

$2.21 - $4.57 per CFM. Ditto

(3)

Exhaust Fans

$1.63 - $3.47 per CFM. Ditto

(4)

Housekeeping vacuum system. $27 - $40 CFM. Ditto

(5)

Dust Collectors

(6)

Cyclone Dust Collector 14 16 man-hours / per ton

to install

(7)

Bag Filter / Electrostatic unit 26 31 / man-hours

per ton to install

$27 - $41 CFM. Ditto

BALL MILLS
(A)

(9)

AIR HANDLERS: includes coils, dampers, controls, etc.

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 packings, 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 page 2 to calibrate installation man-hours.

Tons / Hour

Equipment Cost

Installation
M.H. s

M.H. s per
Ton

10
25
50
100

$30,581
$74,174
$148,468
$273,797

42
94
174
314

4.20
3.76
3.48
3.14

BAGHOUSE
19

(A)

(10)

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 on page
2 to calibrate installation man-hours.

Capacity /
CFM

Material

# of shipping
pieces

ManHours

$ Cost per
CFM

1,000
2,500
5,000
10,000
20,000
25,000
50,000

$33,890
$47,649
$62,976
$80,163
$94,366
$107,403
$130,778

8/12
8/12
8/12
8/12
8/12
8/12
8/12

20
32
42
56
120
140
156

$33.89
$19.06
$12.60
$8.02
$4.72
$4.30
$2.62

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 page 2 to calibrate installation man-hours.
H.P.
10
15
20

(B)

BELT DRIVE
(M. H. s)
1.6
1.0
0.8

DIRECT DRIVE
(M. H. s)
1.75
1.40
0.85

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 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
20

controls systems, belts, electrical motors, cable, conduit

and electrical hook-up, refer to productivity adjustments on
page 2 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.

Volume Cubic
Feet
1,000s / M3

Approximate
Weight
Pounds / KG

Number of
major
Pieces

Installation
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

4
6
8
10
12
14
16
24
36
48
72
96

2.66
3.00
2.66
2.00
1.20
0.93
0.64
0.48
0.48
0.48
0.48
0.38

(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 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 page 2 to
calibrate installation man-hours.
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

70 - 32
185 - 85
315 - 145
560 - 255
880 - 400
1,210 - 550
2,200 - 1,000
3,000 - 1,365

4
8
12
24
44
72
96
138

21

(D)

(11)

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 man-hours.

VOLUME
C.F. PER MINUTE

WEIGHT IN
POUNDS / KG

MAN-HOURS

M.H. per
HP

100 (5 HP)

150 - 68 (3/5 pieces)

14

2.8

250 (7.5 HP)

350 - 160 (ditto)

28

3.7

500 (10/15 HP)

570 - 260 (ditto)

46

3.7

750 (15/25 HP)

780 - 355 (ditto)

62

3.1

1,000 (25/35 HP)

1,000 - 455 (ditto)

74

2.4

2,500 (35/50 HP)

1,500 - 680 (ditto)

120

2.8

5,000 (50/75 HP)

2,200 1,000 (ditto)

170

2.7

10,000 (75/100 HP)

3,000 1,365 (ditto)

220

2.5

BLENDERS

(A)

Blender O.O.M. / Equipment Cost

25 CF
50 CF

(12)

$113,400 - $155,610
$212,520 - $284,550

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 hook-up, refer to productivity adjustments
on page 2 to calibrate installation man-hours. The man-hour
installation units exclude initial chemical charging, cooling
liquids, refrigerant / anti freeze chemicals, M.E. passivation and

22

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 in
installation man-hours. Excludes cranes, foundations,
grouting, brackets, supports, piping, cable, conduit and
electrical hook-up, refer to productivity adjustments on page
2 to calibrate installation man-hours.
Weight in Tons

Man-Hours per Ton

1 10
10 20
20 40

(C)

(D)

5.22
3.84
2.46

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 page 2 to calibrate installation
man-hours.
Production
MBT s per Hour / KW
# of pieces

Installation
Man hours

Man hours
Per
MBT s per
Hour / KW

10 / (5/10)
25 / 6 ditto
50 / 12 ditto
75 / 24 ditto
100 / 24 ditto
125 / 36 ditto
150 / 48 ditto

4.5
6
6
10
12
16
19

0.45
0.24
0.12
0.13
0.12
0.12
0.112

BOILER Gas Fired Cast Iron (Commercial):

23

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 page 2 to
calibrate installation man-hours.
MBH / NET
IBR

# OF
PIECES

WEIGHT
POUNDS

MANHOURS

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

(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 chimneys range from 30 to 120, for heights
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:
* Includes gussets and stiffeners
Flue
Wall
Weight
Man-hours
M.H. per
Diameter
Thickness
Per 10 L.F.
Per 10 Foot
Pound
Inches
Inches
Pounds
Section
12

.20

380

3.00

.007

18

.25

580

4.50

.007

24

.25

630

5.00

.007

30

.25

830

5.50

36

.25

940

8.00

42

.25

1,140

9.50

48

.37

1,590

12.50

60*

.40

1,990

16.50

72*

.40

2,880

19.50

24

.006
.008
.008
.008
.008
.007

(F)

GUYED STACKS
TONS

M.H.S PER TON

1 10
10 20
20 40
40 60

(G)

12.4
9.3
8.1
6.3

BOILERS GAS FIRED:

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. 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 page 2 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.
Thousand BTU s
Per hour / weight
# of pieces

Installation
Man-hours

M.H. s per
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

25

(H-1.2 & 3)

CAST IRON BOILER SECTIONAL UNITS:

CAST IRON BOILERS

HEAVY OIL FIRED

120

100

80

60

40

20

0
50

100

250

H or se po we r

CAST IRON BOILERS

GAS OR OIL FIRED

140

120

100

80

60

40

20

0
50

100
H o r se p owe r

26

250

CAST IRON BOILERS

LIGHT OIL FIRED
120

100

Man Hours

80

60

40

20

0
50

100

250

Horsepow er

(I)

Re boiler / Kettle: (150 PSIG, Tube Material C. S. A 515,

Shell Material C. S. A 285C, Design Temperature 600 Deg
F):

S. F. / M2
Transfer
Area

Shipping $ Cost of
weigh in Equipment
tons

500 / 46.46
1,000 / 93
2,500 / 232
5,000 / 465

1.75
4
8.5
15

Installation
man-hours

$ Cost
per S.F.

18
37
45
54

34
33
20.31
16.00

16,842
32,687
50,768
80,010

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
Add installation man-hours
(J)

Package Boiler, C S A 285C, and 250 PSIG

Pounds
per hour

Shipping
weigh in
tons

$ Cost of
Equipment

Installation
man-hours

$ Cost
per
pound.

5,000
10,000

8.5
18

58,601
110,145

164
314

11.72
11.01

27

100,000
500,000

57
145

370,262
1,470,672

788
1,150

3.70
2.94

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
Add installation man-hours

(13)

Box Heater
(A)

Box Type Heater Cabin CS / 300 PSI:

Cost per 1 Million BTUs $29,647 - $35,322

(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 page 2 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)

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

Breaker / Impact Hammer Crusher 250 / 300 HP A 515

CS

Cost per pound $4.12 - $5.57

Cost per Kg $9.08 - $12.23
Cost per HP $950 - $1,226

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)

28

(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
bolts, grouting, brackets, supports, piping, cable, conduit and
electrical hook-up, refer to productivity adjustments on page 2 to
calibrate installation man-hours.

(B)

Volume G.P.M.
(Approx weight in pounds)
# of pieces

Installation
Man hours

M.H. s
per
Pound

5 (2,450) ditto

98

.04

10 (3,570) ditto

142

.04

25 (7,700) ditto

302

50 (8,650) ditto

342

75 (10,000) ditto

462

100 (11,500+) ditto

628

250 (30,000+) ditto

1,200

.04
.04
.04
.04
.04

Centrifugal Air Compressors- with motor

5,000 CFM
10,000 CFM
25,000 CFM

$ 331,065
$ 549,570
$ 1,003,485

420 M.H. s
710 M.H. s
1,334 M.H. s

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

100 GPM
3,000 GPM

$ 5,145
$ 63,683

18 M.H. s
32 M.H. s

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)

29

If pumps and motor are skid mounted multiply above units by 0.85.
Cost range is $21 - $51 per GPM
(D)

Centrifugal Compressor C.S. 100 PSI

25 HP $51,492 $ 2,060 / HP - 38 hours to install

50 HP $55,508 $ 1,110 / HP - 44 hours to install
100 HP $61,572 $ 616 / HP - 54 hours to install
250 HP $91,361 $ 365 / HP - 74 hours to install
500 HP $142,238 $ 284 / HP - 106 hours to install
1,000 HP $248,640 $ 249 / HP - 184 hours to install

Cost range is $249 - $2,060 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 hook-up, refer to
productivity adjustments on page 2 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.

Ratings Ton
25
50
100
250
(B)

$ Equipment Cost
$17,650
$33,700
$39,850
$93,550

Installation Man-hours
30
38
46
108

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 hookup, refer to productivity adjustments on page 2 to calibrate
installation man-hours.
TONS
100

$ COST / EQUIPT.
116,802

30

Man-Hours per Ton

3.2

150
200
250
500
1,000
2,500

152,276
171,607
186,375
274,103
434,018
595,035

2.6
2.33
2.14
1.45
0.95
0.55

Cost range $238 - $1,168 per ton

(C) CHLLER Water Cooled 200 Ton with condensers and
compressor R-22 Refrigeration: 460v with PLC
$150 - $210 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 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 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 man-hours.
Description
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

(19)

CLARIFIER:
31

Man-Hours
3-6
12
10
4 - 12

(A)

(20)

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, cable, conduit and electrical hook-up,
refer to productivity adjustments on page 2 to calibrate
installation man-hours.

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

23,058
30,896
36,398
44,935

11
17
27
35

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
hook-up, refer to productivity adjustments on page 2 to calibrate
installation man-hours.

Area SF

Weights
pounds

# of items

Man-Hours

M.H. per
pound

100

4/8

0.04

225

4/8

0.03

370

6/10

12

0.03

480

6 10

15

0.03

10

570

6/10

18

0.03

12

660

6/10

21

0.03

32

(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 page
2 to calibrate installation man-hours.

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

(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 page 2 to calibrate installation manhours.
H.P.
500
1,000

(B)

CENTRIFUGAL
0.33 / M.H.S PER H.P.
0.30 / M.H.S PER H.P.

RECIPROCATING
0.37 / M.H.S PER H.P.
0.35 / M.H.S PER H.P.

Reciprocating Compressor, 1 stage, 100 PSIG

CFM

H.P.

Shipping
weight in
Tons

$ Equipment
Cost

Installation
man-hours

$ Cost
per
CFM

100
250
500
1,000

20 / 25
25 / 40
75 / 100
150 / 200

1
2.25
3.50
5.25

26,350
45,029
87,649
123,921

32
38
66
88

263
180
175
124

Add installation man-hours

Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)

33

(23)

COMPUTER ROOM:
(A)

(24)

COMPUTER ROOM HYDRONIC HEAT AIR COOLED

CONDENSER:
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 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 page 2 to
calibrate installation man-hours.
TONS

EQUIPMENT
COST in $s

INSTALLATION
M.H. s

M.H per Ton

2.5
5
7.5
10
15
25
50

13,771
15,860
20,072
22,381
25,242
37,013
62,916

18.5
23.5
31
38
56
95
124

7.4
4.7
4.1
3.8
3.7
3.8
2.5

CONDENSORS / CENTRIFUGES:
(A) AIR COOLED CONDENSERS:
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 page 2 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.

Tonnage

# Of
Pieces

Weights
Pounds

Man-Hours

M.H. per
Pound

5
10
20
25
50
75
100
150
250
500

3/5
3/5
3/5
3/5
3/5
7/9
7/9
10/12
15
20

175
280
440
500
1,500
2,000
2,700
3,700
6,000
10,800

6
6
7
8
12
16
18
27
44
72

1.20
0.60
0.35
0.32
0.24
0.21
0.18
0.17
0.16
0.14

34

(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 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 man-hours.

Tonnage

GPM

Number of
pieces

Man Hours

M.H. per
Ton

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

(C)
RECIPROCATING AIR COOLED CONDENSING UNITS
(CONDENSER COMPRESSOR):
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 page
2 to calibrate installation man-hours.
Tons

# Of
Pieces

Pounds
Weights

ManHours

M.H. s
per Ton

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

(D)
CONDENSERS (COALESCER):
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 page 2 to calibrate installation manhours.
Tonnage

Number of
Items

Weights
Pounds

ManHours

M.H. s
per Ton

5
10
15
25
50

4/6
4/6
4/6
4/6
4/6

370
530
800
1,500
2,000

6
8
8
10
12

1.2
0.8
0.53
0.4
0.24

35

75
100
150

(E)

6/8
6/8
7/9

2,500
3,000
4,350

14
16
23

0.19
0.16
0.15

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, 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 page 2
to calibrate installation man-hours.

Tonnage

# of Pieces

100
250
500
1,000

3/5
3/5
4/6
4/6

Weight in
Pounds
3,500
4,500
9,500
17,500

Man-Hours
28
48
82
144

(F) Barometric Condenser / Miscellaneous, C S H.E.

GPM

$ Equipment
Cost

Installation
man-hours

Cost per
GPM

500
1,000
2,500
5,000

9,190
17,117
33,388
49,882

24
32
38
62

18.38
17.18
13.36
9.98

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)
(G) Condenser (Evaporation)
Rating Ton

$ Equipment Cost

Installation Man-hours

5
10
25
50
100

$4,300
$5,750
$11,400
$17,750
$31,400

20
24
32
36
40

36

(25)

CONTINUOUS SPRAY DRYER:

(A)

(26)

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. Man-hours
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.
Evaporation
Rate Per Hour
in Pounds

Weight /
Number of
Pieces

Man-Hours

M.H. per
Pound

1,000
2,500
5,000

11,000 - 5/8
27,000 - 6/8
55,500 - 7/10

388
594
706

0.39
0.24
0.14

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 pieces, and filler pieces 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.
Diameter
inches
8
10
12
18
24
30

Man Hours per 100

length Carbon
Steel A36

Man Hours per 100

length Stainless
Steel 304 / 316

110
180
204
280
330
377

144
220
376
420
484
564

37

(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 pieces, and filler pieces 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.
Travel Length
Feet

Total M. H. s

10
15
20
25
50
75
100
250
500
1,000

82
136
163
145
196
256
286
330
585
1,145

(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 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 pieces, and filler pieces 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.

38

Travel Length
Feet
10
15
20
25
50
75
100
250
500
1,000

Total M. H. s
94
148
179
196
264
268
308
356
637
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 pieces, and filler pieces 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:
WIDTH

M.H.S / LF (BASED ON 100 LENGTH)

12
16
20
24
30
36

(E)

2.10
2.45
2.75
3.10
3.35
3.45

ROLLER CONVEYOR
10 WIDE
12 WIDE
14 WIDE
18 WIDE

(F)

1.25 M.H.S / LF
1.55 M.H.S / LF
1.75 M.H.S / LF
2.10 M.H.S / LF

SCREW CONVEYOR
6 DIA
8 DIA
10 DIA
12 DIA

4.10 M.H.S / LF
5.25 M.H.S / LF
6.50 M.H.S / LF
6.75 M.H.S / LF

(G) Equipment cost only

39

Equipment cost only.

Cost per LF $

Cost per M $

1,339
1,738
1,822
1,948

4,392
5,701
5,976
6,389

6 diameter
8 diameter
12 diameter
16 diameter

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(H)

BUCKET ELEVATOR
6 X 4
10 X 6
12 X 9
16 X 9

(I)

3.30 M.H.S / LF
4.75 M.H.S / LF
5.25 M.H.S / LF
6.25 M.H.S / LF

CONVEYOR ELEVATOR (Material Cost only) 2009 Cost

Basis:

Length Feet /
M

18

24

30

36

42

50 / 15.25 M
100 / 30.50 M
250 / 76.20 M
500 / 152.40 M

$13,187
$22,898
$50,945
$98,085

$14,650
$27,168
$61,494
$109,000

$16,970
$31,115
$68,367
$124,270

$18,846
$34,938
$75,752
$137,149

$21,464
$36,483
$82,229
$150,068

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(J)

Belt Conveyor / open, 1,750 RPM, 320 FPM

Ton per
hour
60
110
260
340

Width in
inches

Length
in feet

18
24
36
42

20
50
100
150

$ Equipment
cost

Installation
man-hours

31,542
35,464
54,364
71,048

55
102
202
312

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)

40

(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. Man-hours exclude lifting
equipment / 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 man-hours.

(28)

S.F. / M2

H.P.

Weight in
Pounds

Number
of
Pieces

ManHours

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

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 page 2 to calibrate installation man-hours.
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

(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:

41

(29)

Tonnage

Weight
Pounds

Number of
Major Pieces

ManHours

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

CRUSHERS:
(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. Manhours exclude lifting equipment / cranes, foundations, setting
holding down bolts, grouting, brackets, supports, piping, cable,
conduit and electrical hook-up.

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

(B)

Breaker / Impact Hammer Crusher 250 / 300 HP A 515

CS

Cost per pound $4.31 - $5.62

Cost per Kg $9.45 - $12.29
Cost per HP $950 - $1,229

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(C)

Crusher (Jaw) C.S. A 285C

H.P.

$ Cost

M.H. s

10 H P
50 H.P
100 H.P

$47,455
$222,857
$401,100

58 M.H. s
245 M.H. s
420 M.H. s

Cost range $4,011 - $4,746 per H.P.

42

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(D) Rotary Crusher, C S A 285C
H.P.

Shipping
weight of
equipment

$
Equipment
cost

Installation
man-hours

Cost
per
H.P.

2
10
25
50

0.25
0.75
2.00
5.00

2,756
9,671
17,467
32,487

6.50
14
26
46

1,313
921
665
619

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

25 Tons / Day
50 Tons / Day
100 Tons / Day
150 Ton / Day

$ 186,328
$ 252,362
$ 406,823
$ 609,473

164 Man-Hours
272 Man-Hours
378 Man-Hours
540 Man-Hours

Cost range $4,064 - $7,455 per ton

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 page 2 to
calibrate installation man-hours.
Boiler
H.P. / KW

Number of
Pieces

Weight
Pounds

ManHours

M.H.
per HP

25 / 18.64
50 / 37.29
100 / 74.57
250 / 186.43

4
4
5/6
7/8

350
450
1,000
1,500

12
16
24
51

0.48
0.32
0.24
0.20

43

500 / 372.85
1,000 / 746
2,500 / 1,864

(32)

7/8
10/12
10/12

2,500
5,000
9,600

85
124
195

0.17
0.12
0.08

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 page 2 to
calibrate installation man-hours.

(33)

Flow Rate
GPM

Approximate
Weight
Pounds

Number of
pieces

ManHours

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

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, 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:
TOWER
DIAMETER
FEET

WEIGHT
IN
POUNDS

MANHOURS

M.H. per
Pound

1.0

30 (4/6 # items)

14

0.46

1.5

40 ditto

18

0.45

3.0

72 ditto

24

0.33

4.0

90 ditto

28

0.31

44

(34)

5.0

150 ditto

32

0.21

6.0

180 ditto

40

0.22

7.0

240 ditto

48

0.20

8.0

340 ditto

56

0.17

9.0

450 ditto

64

0.14

10.0

600 + ditto

72

0.12

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:

(35)

Diameter (Feet.)

Weight Pounds

Man- Hours

5
10
20
25

140
250
440
770

4
6
16
28

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.
Duty million
BTU s
Per Hour
5

Material
C.S
Tubes

ManHours

$234,856

175

45

Material
S.S 304
Tubes
$354,209

ManHours
198

$440,289

10

$911,480

25
50
75
100

(36)

$624,415

246

$1,436,510

352

$1,528,003
$2,146,082
$2,744,859

274

$2,368,987

565

$3,105,328

646

$3,892,677

785

390
604
724
842

DRYERS
(A)

Rotary Dryer, C S A 285C

S.F. / M2

$
Equipment
Cost

Installation
man-hours

$ Cost
per S.F.

100 / 9.30
250 / 23.23
500 / 46.50
1,500 / 139.40

35,018
82,467
158,860
456,804

66
164
274
768

350
330
318
305

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 bolts, grouting, brackets,
supports, piping, cable, conduit and electrical hook-up
Pounds of Air /
Hour

Material

Man-Hours

M.H. s per
pound of
air

50
100
250
500
1,000

$1,806
$2,462
$4,111
$6,001
$8,925

4
5
8
12
19

0.08
0.05
0.032
0.024
0.019

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)

46

(B)

Dust Collector Stainless Steel 400 SF / 37.20 M2 cloth area

with 25 HP blower $17 - $25 / SF - $181 - $271 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 page 2 to calibrate installation man-hours.
CAPACITY

Installation Man-Hours

1,000
2,500
5,000
10,000
20,000

(39)

140
194
274
307
475

Approx, $ Cost
$35,018
$62,486
$80,798
$92,663
$111,741

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 page 2 to calibrate installation man-hours.
Volume / Cu Feet /
min

$ Material

Man-Hours

Man-Hours per
1K CFM

50,000
100,000
250,000

249,848
370,073
651,908

280
370
710

5.6
3.7
2.8

47

(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
hook-up:
Scale Loading
weight in Tons

Footprint of
Scale L x W in
Feet

Approximate
Total Weight
Pounds

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 (ditto122)
272 (ditto 162)
308 (ditto 192)

19.6
12.2
8.3
5.4
3.1

Pit is typically 5-6 deep with 4 thick concrete wall 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 page 2 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.

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

$36,125
$54,206
$58,685

(B)

Conceptual Estimating for budgeting Generator Set /

U.P.S. type equipment.
UPS.

$1,050 - $1,775 per KW

48

Generator Set

(42)

$289 - $383 per KW

EVAPORATORS:
(A)
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 page
2 to calibrate installation man-hours.

(B)

Cooling / Heating
Area S.F. / M2
(EDR)

Number of
Major Pieces

ManHours

M.H. per
SF

100 / 9.30
250 / 23.23
500 / 46.50
1,000 / 92.90
2,500 / 232.35
5,000 / 464.70
10,000 / 929.40

3/5
3/5
3/5
5/7
5/7
5/7
5/7

120
200
310
555
807
1,110
1,450

1.21
0.80
0.62
0.55
0.32
0.22
0.14

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

S.F. / M2

$ EQUIPT
COST

INSTALLATION
M.H. s

$ Cost per
S.F.

10 / 0.93
25 / 2.37
50 / 4.65
100 / 9.30

68,775
148,444
276,586
500,535

53
127
197
382

6,550
5,655
5,268
4,767

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)

49

(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 page
2 to calibrate installation man-hours.
S.F. / M2

EQUIPT
COST

INSTALLATION
M.H. s

10 / 0.93
25 / 2.37
50 / 4.65

76,151
185,745
332,068

71
202
370

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, supports, piping, cable, conduit and
electrical hook-up, refer to productivity adjustments on page 2 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.
SF / M2

$ COST / SF

Man Hours / SF

50 / 4.65
100 / 9.30
250 / 23.23
500 / 46.50
1,000 / 92.95

1,517
887
509
357
226

2.25
1.33
0.85
0.635
0.37

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)

50

(B)

(C)

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:
SF / M2

$ COST / SF

Man Hours / SF

50 / 4.65
100 / 9.30
250 / 23.23
500 / 46.50

1,996
1,352
819
634

3.15
2.10
1.27
1.00

1,000 / 92.95

455

0.85

Filter Horizontal scrolling with hydraulic

tilting pot:
Area in SF /
M2

$ Cost per SF

10 / 0.93
25 / 2.37
50 / 4.65
100 / 9.30

5,832
5,493
3,527
2,102

To determine installation / equipment setting hours multiply tank

cost by 6.5 % divide resulting value by $48 / hour, add crane
usage:

(D)

Rotary Drum Filter

Equipment cost only

$8,001 / SF

(E) Pressure Leaf Filter Vertical C.S.

S.F. / M2

$ Equipment
cost

Installation
man-hours

$ Cost per
S.F.

50 / 4.65
100 / 9.30
250 / 23.23
500 / 46.50

12,844
24,211
59,306
116,945

14
27
68
124

257
242
237
234

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)

51

(45)

FORK LIFTS
(A)

Fork Lift Truck (excludes Battery charging station)

2,500 Pound
5,000 Pound
10,000 Pound

(46)

$37,847
$57,488
$65,562

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, 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:
Volume

Material

1,000 gallon
2,500 gallon
5,000 gallon

$1,124
$1,381
$4,342

Labor Man-Hours
16
40
108

(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 page 2 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.

K.W.
Rating

Approximate
Weight
Pounds

Number of
pieces

ManHours

25
50
75

1,450
2,050
2,460

5/7
5/7
5/7

28
40
56

52

100
125
150
175
200
250
500

2,750
3,350
4,100
6,200
7,500
8,600
10,500

5/7
5/7
5/7
7/10
7/10
7/10
7/10

72
84
100
122
134
146
220

(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
Scope Item

% Value

Off loading & setting (Millwright work)

Foundations / supports

34.5
5.2

Aligning & grouting

Piping systems
Electrical / Controls
Insulation / Painting
Testing / Start-up / Commissioning
Miscellaneous items

Total
MW Size
500
1,000
2,500
5,000
10,000
25,000

Remarks

9.6

21.1
14.7
5.2
5.2
4.5
100.0%

Excavation, backfill, concrete,

rebar and formwork includes
some structural steel supports
50 2 # 2- 4 C.S. of piping
systems
Insulation of piping systems

Man-Hours
9,500
14,100
15,340
18,970
21,650
32,450

These man-hour units could increase by +/- 25% dependant upon site
conditions and the state of the economy.

53

(B) Order of magnitude- check value per KW:

Facility Type
Power Plant (Coal):

OOM Cost
Construction Cost - (Total Facility
based on production capacity) $1,57
- $1,875 per MW Average Cost
$1,675 / MW
Construction Cost - (Total Facility
based on production capacity) $850
- $1,650 per MW Average Cost
$1,250 / MW
Construction Cost - (Total Facility
based on production capacity) $890
- $1,775 per MW Average Cost
$1,333 / MW
Construction Cost - (Total Facility
based on production capacity) $550
- $700 per MW Average Cost $675 /
MW
Construction Cost - (Total Facility
based on production capacity)
$1,400 - $1,975 per MW Average
Cost $1,690 / MW
Construction Cost $1,415 - $2,260
per MW Average Cost $1,840 / MW
Construction Cost - (Total Facility
based on production capacity) $500
- $670 per MW Average Cost $585 /
MW
0.15 0.25 cents per KW hour
10% - 15% of Capital Cost

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:
(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 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

M.H.S

100 SINGLE
100 DOUBLE
200 SINGLE
200 DOUBLE

1,180
1,690
1,540
2,470

54

(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.

GLYCOL UNITS
5

0
1-5

5- 10

10-20
To ns

Ton

Man hours per ton

1-5
5 - 10
10 - 20
20 50

4.40
3.60
2.25
1.88

(51) GRANULATOR
(A)

GRAVITY / IMPACT 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
55

20-50

supports, guides, brackets, frames, bolts and shims,

excludes setting holding down bolts.
H.P.

APPROX
WEIGHT

# OF PIECES

M.H. s

M.H. s per
HP

25
50
75
100
150

2,400
3,700
5,400
6,800
11,900

3/5
3/5
3/5
3/5
3/5

23
27
34
39
46

0.92
0.54
0.45
0.39
0.36

(B)

Granulator 250 HP A 515 CS

Cost per pound $6.77 - $8.72

Cost per Kg $14.91 - $19.16
Cost per HP $315 - $404

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight 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 page 2 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.
Tons per
hour

Motor
Horse
Power

Weight
Pounds

ManHours

M.H. per
Ton

10
15
20
25
50
75
100
150
200
250

10
20
25
30
50
100
100/125
150
200
275

2,500
3,000
4,200
5,000
7,500
10,000
14,000
17,500
22,500
30,000

24
28
36
42
64
78
104
122
144
164

2.4
1.87
1.80
1.68
1.30
1.04
1.04
0.80
0.72
0.66

56

500
750
1,000

(B)

400
500
500/650

40,000
50,000
75,000+

188
208
238

0.37
0.27
0.24

Hammer Mill 250 HP 135 ton per hour A 515 CS

Cost per pound $6.14 - $7.98
Cost per Kg $13.49 - $17.56
Cost per HP $449 - $589

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:
MMBTU s

C.S. Tubes
M.H. s

Alloy Tubes
M.H. s

10
20
30
40
50

1,840
2,870
3,925
4,705
5,580

2,740
3,770
5,740
6,675
7,370

(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 page
2 to calibrate installation man-hours.

(C)

S.F / M2
EDR

Number of
Pieces

Pounds
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

FEEDWATER HEATERS complete with local controls:

57

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, 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 hookup, refer to productivity adjustments on page 2 to calibrate installation
man-hours.

Boiler
H.P
100
250
500
1,000
2,500

(D)

(E)

Weights
Pounds
# of pieces
1,500 (5/6)
2,500 (7/8)
3,000 (7/8)
4,500 (8/9)
8,500+ (10+)

ManHours

M.H. per HP

34
64
78
98
182

0.34
0.26
0.16
0.10
0.07

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 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:
M.W.

Equipment Cost

Installation M.H. s

10
25
50
100

$1,218
$2,872
$5,497
$10,616

2.5
4.5
8
14.5

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:
58

(F)

(G)

Duty /
Million
BTU s

MATERIAL COST
(refer to previous
tables for installation
work)

5
10
25
50
100

$229,681
$380,221
$722,898
$1,177,288
$1,928,908

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 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:
Duty / Million
BTU s

MATERIAL COST (refer to

previous tables for
installation work)

5
10
25
50
100

$350,729
$582,385
$1,100,108
$1,807,238
$2,977,613

Heaters Unit Gas Fired

MBTUs

Weight

50
100
150
250

185
250
345
510

Hours
2.5
4
6
10

$ Cost
1,071
1,365
1,580
2,221

Cost Range is $9 - $21 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)

100 gallons
250 gallons
500 gallons

2.5 hours
4
8

59

$2,111
$4,510
$7,697

Cost Range is $15.39 - $21 per gallon

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)
(I)

Heater Water Industrial (Electric)

100 gallons
250 gallons
500 gallons

(20 kw) 2.5 hours

(30 kw) 4
(40 kw) 8

$1,265
$2,683
$4,720

Cost Range is $9.44 - $13 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
(K)

$113 - $149

Fired Heaters Box Type C.S.

Million BTU / hour

Equipment cost Total installation M.H.s

50
100

$1,292,550
$2,315,250

2,200
3,700

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(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:
AREA / S.F.:

MATERIAL COST $

50
100
150
200

(B)

3,539
5,670
5,938
6,767

M.H.S
6
8
10.5
12.5

Shell and Tube Heat Exchanger

Diameter

S.F.

$ / SF
Range

60

Installation
man-hours

per S.F
6
8
12

25
50
100
25
50
100
50
100
150

53 58
41 45
37 - 42
65 70
48 51
34 39
61 65
42 47
37 41

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

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)
(C)

Plate Heat Exchanger 316 S.S. Equipment Cost

250 SF
500 SF
750 SF
1,000 SF

$320 / SF
$257 / SF
$243 / SF
$236 / SF

Cost Range $236 $302 SF

Cost Range $2,539 $3,250 M2
(D)

Plate Heat Exchanger 304 S.S. Equipment Cost

250 SF
500 SF
750 SF
1,000 SF

$266 / SF
$244 / SF
$231 / SF
$213 / SF

Cost Range $213 $266 SF

Cost Range $2,292 $2,862 M2
(E)

Heat Exchanger C.S. / 316SS (internals) Equipment Cost

100 SF
250 SF
500 SF

$108 / SF
$64 / SF
$54 / SF

Cost Range $54 $108 SF

Cost Range $581 $1,162 M2
(F)

Heat Exchanger S/T TEMA-R Equipment Cost

M.H.s

250 SF
500 SF
1,000 SF
1,500 SF

2.5
4
6.5
8

$45 / SF
$35 / SF
$29 / SF
$27 / SF

Cost Range $27 $45 / SF

Cost Range $291 $484 / M2
(55)

HIGH VOLTAGE SUB STATION:

61

(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:
HIGH VOLTAGE SUB STATION

400

350

300

250

200

150

100

50

0
150

225

300

500

750

1,000

1,500

K VA

(56)

HOISTS:
(A)

Hoist, 5 speeds, C. S.
Tons
2.5
5
12.50
25

$ Cost
$9,980
$17,724
$37,947
$69,600

Man-Hours
8.5
11
18
32

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)

(57)

HOPPERS

62

2,000

(A)

Hopper Conical O.O.M. Equipment Cost

5,000 CF
10,000 CF
15,000 CF

$22,712 - $32,167
$42,504 - $65,935
$73,206 - $97,871

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 $1.73 - $2.24

Cost per Kg $3.81 - $4.92

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(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.
CAPACITY /
Pounds / Kg

Installation M.H.

Approx, Cost

1,000 / 454
2,500 / 1,136
5,000 / 2,272
10,000 / 4,545
20,000 / 9,090

97
126
144
240
340

$18,865
$34,774
$47,853
$54,165
$66,756

(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 /

M.H. s PER TON

63

TONS
50 100

(61)

14 18.5

INSTALLATION OF TRAYS:
(A) INSTALLATION OF TRAYS IN TOWERS / TOWER
INTERNALS:
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, 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 packings, brackets and clips:

(62)

Diameter

Sieve Tray C.S. $

COST

Valve Tray C.S. $

COST

24
36
48
60

$4,574
$5,713
$6,269
$6,805

$4,710
$6,269
$6,878
$7,269

LIFT STATIONS
(A)

Lift Stations F/G, Steel or Concrete with Generator

100 GPM
250 GPM
500 GPM

(63)

$74,708
$138,653
$195,510

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.

Number of Stops

Material

Man-Hours

2
3
4

$12,936
$14,637
$15,855

122
132
148

64

(64)

$17,000

164

MISCELLANEOUS ITEMS:
(A)

(B)

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.
Description

M.H.s

Lab Fume Hood:

Lab Sink.
Fire Pump.
Hose Cabinet Recessed.
Ditto Surface.

12.0
4.5
16.5
2.5
1.5

Horizontal Drum / Pressure Vessel: Wall 7/16 thick A

515 C.S.

Cost per pound $1.74 - $2.26

Cost per Kg $3.83 - $4.97

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(C)

Granulator 250 HP A 515 CS

Cost per pound $6.74 - $8.66

Cost per Kg $14.83 - $19.06
Cost per HP $310 - $404

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

Cost per pound $6.20 - $8.01

Cost per Kg $13.63 - $17.62
Cost per HP $447 - $583

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(E).

BIN HOPPER DISCHARGER C.S.

H.P/ Equipment
Cost:

Top
Diameter / #
of items

Bottom
Diameter

M.H. s

0.5 / $2,840

24 / 3 - 5

65

1.0 / $3,447
2.5 / $6,818
5.0 / $7,732
7.5 / $12,505
10.0 / $15,204

(F)

30 / 3 - 5
60 / 3 - 5
84 / 3 - 5
120 / 3 - 5
144 / 3 - 5

6
9
12
18 / 20
22 / 24

11
19
33
44
54

AERATION EQUIPMENT STEEL

1,000 GPD
2,500 GPD
5,000 GPD

$21,368 / $21.37
$28,492 / $11.39
$43,607 / $8.72

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

50 Bags / min (10 lb bag)
100 ditto

$ 17,603 - $22,376
$ 26,402 - $35,753

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(H)

Blender (Ribbon Type)

1 CY / 0.76 M3 10 HP CS $14,537 16 hour to install:

1 CY / 0.76 M3 10 HP SS $27,164 16 hour to install:
2.5 CY / 1.91 M3 15 HP CS $22,559 22 hour to install:
2.5 CY / 1.91 M3 15 HP SS $40,163 22 hour to install:
5 CY / 3.82 M3 25 HP CS $38,666 36 hour to install:
5 CY / 3.82 M3 25 HP SS $69,547 36 hour to install:

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(I)
FORCED DRAFT 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. 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 page 2 to calibrate installation manhours.
Cooling Duty / Million

Material Cost

66

Man-Hours

BTU s / Hour
0.25
0.50
1.00
2.50
5.00

(J)

$38,135
$59,035
$90,138
$157,445
$377,604

28
42
82
142
186

Compressor Centrifugal:
H.P.

$ Equipment
Cost

$ Cost per H.P.

Installation
man-hours

250
500
1,000

$141,979
$207,854
$268,721

518
379
245

36
56
76

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

GPM

H.P.

50
100
250
500
1,000

2.5
5
7.5
20/25
50 / 75

$ Equipment
cost
$2,600
$2,895
$3,251
$4,680
$6,234

Installation
man-hours
14
20
28
36
52

$ Cost
per
GPM
$49.52
$27.57
$12.38
$8.91
$5.94

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(L)

Centrifuge Solid Bowl

Tons / hour

Material Cost $ / Ton M.H. s

5
10
15
20
25

121
158
203
229
300

4
4
6
8
8

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(M)

Fan Centrifugal, C S A 285C, 1,800 RPM Motor

CFM / HP

$ Cost

Man-Hours

1,000 CFM, 2.5 HP

10,000 CFM, 20 HP

$1,817
$3,707

14
32

67

100,000 CFM, 200 HP

$41,869

76

Cost range $0.42 - $1.82 CFM

Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)
(N)

Horizontal Batch Centrifuge

10 SF
25 SF
50 SF

$74,582
$145,824
$336,158

88 M.H.s
154 M.H.s
410 M.H.s

Cost Range $6,725 - $7,458 / SF

Add 3% for transport to site for US and overseas applications
(ocean freight would increase freight cost)
(O)

Reciprocating, Compressor with Motor

Brake H P
Equipment Cost

Man Hours

250
500
1,000

104
260
750

$273
$536
$728

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(P)

Reciprocating Compressor C.S 500 PSI

100 HP $81,218 $ 813 / HP - 65 hours to install

250 HP $196,970 $ 788 / HP -112 hours to install
500 HP $363,038 $ 726 / HP - 230 hours to install
1,000 HP $672,683 $ 672 / HP - 346 hours to install

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

CFM

$ Cost

Man-Hours

150 CFM, 7.5 HP

1,500 CFM, 75 HP
3,000 CFM, 150 HP

$7,497
$25,331
$34,671

17
54
72

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)

Drum Area SF / M2

CS Cost per

68

SS 304 Cost per

250 / 23.23
500 / 46.50
1,000 / 92.90
2,500 / 232.30

SF

SF

$5.81
$2.72
$1.03
$0.15

$6.66
$3.05
$1.17
$0.25

(S)

PORCELAIN SADDLE PACKINGS: MATERIAL COST $68 /

C.F.:

(T)

CEMENT PLANT: 2009 construction cost basis:

$248 - $369 per ton to Engineer, Procure and Construct: a
fully operational facility.

(65)

MOTOR CONTROL
(A)

Motor Control Center (600V)

100 A Compartment / Section
225 A Compartment / Section
400 A Compartment / Section
800 A Compartment / Section

$1,475
$1,685
$2,242
$2,526

6 M.H. s
8 M.H. s
11 M.H. s
16 M.H. s

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(66)

MOTORS
(A)

Electric Motor, explosion proof

5 HP (0.05 ton)
100 HP (0.50 ton)
1,500 HP (3.30 ton)

$ 740
$ 8,888
$ 104,055

6.5 M.H. s
32 M.H. s
118 M.H. s

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(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 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.
50section
50section
50 section
50 section

2dia with 10/15HP motor 10 man-hours / .22 LF

4dia with 20/25HP motor 16 man-hours / .32 LF
6dia with 25/35 HP motor 20 man-hours / .40 LF
8dia with 35/40 HP motor 32 man-hours / .64 LF

69

(B)

(68)

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

29.84
69.93
95.84
121.37

64.69
99.00
136.75
179.91

74.55
124.19
172.11
224.21

85.47
148.09
204.90
247.11

PRESSURE LEAF FILTER

(A)

(69)

PNEUMATIC CONVEYOR SYSTEM C.S. Material Only

PRESSURE LEAF FILTER:

Carbon Steel shell, carbon steel tubes: (A 36):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:

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

PUMPS
(A) Gear Pump, C S A 285C
GPM

H.P.

$
Equipment
Cost

Installation
man-hours

$ Cost
per
GPM

50
100
300
500

2.5
5
15
20

4,207
4,487
8,059
12,195

8
11
16
32

84
45
27
24

Add installation man-hours

Add 3% for transport to site for US applications
(B)

Rotary Gear Pump, Canned - SS 316 1,800 RPM

GPM

H.P.

$
Equipment
Cost

Installation
man-hours

$ Cost
per
GPM

50

2.5

4,846

14

97

70

100
250
500

5
15
25

7,782
14,226
21,624

20
30
52

78
57
43

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.
(C) Miscellaneous Pumps
Pump Type
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
(70)

$ Cost
$5,219

Man-Hours
4

$7,135

2,111

$5,114

$6,447

6.5

REACTORS:
(A) REACTOR CARBON STEEL: (Glass Lined) with full jacket Cost
per gallon $140.18 / $37 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 page 2 to calibrate installation manhours.

GALLONS

MATERIAL
COST 304 S.S

M.H.S

MATERIAL
COST $316 S.S.

M.H.S

2,500
5,000
10,000

51,842
78,036
113,490

46
104
145

59,701
82,568
122,653

49
116
153

71

(71)

REFRACTORY LINING
(A)

Refractory Lining 1 Brick thick to stack.

Diameter

Cost per LF

18
24
36
48

(72)

Cost per M

224
347
571
751

735
1,138
1,873
2,463

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 $4.57 - $6.20 per cubic foot.

(73)

STACKS
(A)

Stack w/o flare tip, C S A 515

Height
20 high, 24 diameter
(2.00 ton
40 high, 48 diameter
(3.50 ton
96 high, 72 diameter
(15.00 ton)

$ Cost

Man-Hours

$4,809

12

$21,404

33

$68,591

96

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(74) TANKS / STORAGE / SPHERES
(A).
STORAGE SILO: 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: 0.25 0.50 thick wall. Size 5 15
Diameter - 10 - 66 high.
Volume
(Gallons)

Weights
Pounds / kg

Man
Hours

M.H. per
Gallon

1,000

2,600 - 1,180

28

0.028

72

2,500
5,000
10,000
25,000
50,000
100,000

(B).

3,100 - 1,410
7,100 - 3,225
12,500 - 5680
22,500 -10,225
51,500 -23,410
83,500 - 37,955

35
41
53
69
82
106

0.014
0.008
0.005
0.003
0.002
0.001

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 bolts,
grouting, piping, cable, conduit and electrical hook-up:
GALLONS

MATERIAL COST $

1,000
2,500
5,000
7,500
10,000

5,481
9,093
13,776
16,034
19,745

M.H.S
8
14
19
26
32

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(C)

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.:

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

$51,053
$75,376
$103,281
$125,729
$166,646
$220,263
$248,348
$303,902

98
139
183
214
283
387
445
502

(D).

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 hookup.
73

CAPACITY in
gallons

CARBON
STEEL Cost

M.H. s

S. S. 304
Cost

M.H. s

5,000
7,500
10,000
20,000
25,000

$23,730
$29,610
$36,120
$60,585
$78,855

26
37
42
56
67

$34,230
$42,315
$52,710
$87,885
$91,560

29
43
49
65
73

(E)

(F)

(G).

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.
CAPACITY /
GALLONS

MATERIAL COST

INSTALLATION
M.H. s

25,000
60,000
100,000
200,000
325,000

$50,804
$77,404
$88,498
$121,812
$164,954

78
118
133
183
218

STORAGE TANKS (FLOATING ROOF) 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, cranes, brackets, supports, piping, cable,
conduit and electrical hook-up.
CAPACITY /
GALLONS

MATERIAL COST

INSTALLATION M.H. s

15,000
30,000
50,000
100,000
150,000
250,000

$9,622
$14,187
$19,178
$30,479
$40,742
$61,671

14
21
28
43
78
94

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.

74

(H).

GALLONS

MATERIAL $ COST PER

GALLON

1,000
2,500
5,000
10,000

13.55 18.59
9.71 14.28
5.72 8.93
3.41 4.73

TANKS / VESSEL, API CONE ROOF C.S.: MATERIAL

ONLY Refer to previous tables for man-hour installation.

Gallons

Material Cost

Cost / Gallon

5,000
10,000
25,000
50,000
100,000
250,000

$30,311
$37,268
$51,741
$65,172
$82,734
$135,116

$6.06
$3.73
$2.07
$1.30
$0.83
$0.54

(I).

TANKS / VESSEL, API CONE ROOF C.S / Glass Lined:

MATERIAL ONLY Refer to previous tables for man-hour
installation.
Gallons

Material Cost

Cost / Gallon

5,000
10,000
25,000
50,000
100,000
250,000

$45,157
$61,872
$85,592
$103,262
$135,113
$187,465

$9.03
$6.19
$3.42
$2.07
$1.35
$0.75

(J).

TANKS / VESSEL, API CONE ROOF FRP: MATERIAL

ONLY Refer to previous tables for man-hour installation.

Gallons

Material Cost

Cost / Gallon

5,000
10,000
25,000
50,000
100,000

$54,522
$70,839
$98,179
$125,639
$160,346
N/A

$10.90
$7.08
$3.93
$2.51
$1.60
N/A

250,000

(K). Spheres A 515 CS - 5/8thick wall

50,000 CF
material cost)
100,000 CF
material cost)
150,000 CF
material cost)

Material Cost - $9.50 / CF (installation 1.5% 3.5% of

Material Cost - $3.89 / CF (installation 1.5% 3.5% of
Material Cost - $3.15 / CF (installation 1.5% 3.5% of

75

Add 3% for transport to site for US and overseas applications (ocean

freight would increase freight cost)
(L) STORAGE TANK - ATMOSPHERIC
25 50 M3 = $242 - $297 / M3
(M) Vertical Storage Tank, C S A 285C
Gallons

Weight
(tons)

$
Equipment
cost

Installation
man-hours

$ Cost
per
gallon

10,000
30,000
75,000
100,000

3.10
6.50
11.75
16.00

17,953
27,803
58,049
67,976

19
28
64
118

1.80
0.93
0.77
0.68

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)
(N) Vertical Storage Bin CS Coned Bottom
Cost per CF = $5.15 - $8.09
(O) FRP Tank, (Design Temp, 75 Deg F)
Gallons

Weight

$
Equipment
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

$9,540
$33,620
$61,293
$96,179

12
24
32
62

9.54
3.36
2.04
1.92

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)

(P)

Glass lined C.S. Tank (Horizontal Rounded Ends)

Gallons

Weight

$
Equipment
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

$28,809
$44,364
$71,483
$97,320

30
36
44
58

5.76
4.44
2.86
2.78

76

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.

250 1,000 gallon = $116 / gallon

(75)

TOWERS
(A)

Tower Packing, Calcium

Cubic Feet

$ Cost

Man-Hours

50 CF
150 CF
500 CF
50 CF Porcelain Saddles

$ 628
$ 2,006
$ 7,660
$ 3,197

15
45
122
12

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)

Diameter

$ Cost

Man-Hours

30
36
42
48
54
60
66
72

988
1,138
1,286
1,460
1,612
1,706
2,273
2,489

2.5
3.0
3.5
4.5
5.5
6.5
7.5
8.0

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)

(C) Tower Trays / Bubble Cap S.S.316 (2 Sections)

Diameter

$ Cost

Man-Hours

30
36
42
48
54
60
66
72

1,255
1,423
1,643
2,157
2,504
2,867
3,371
3,953

2.5
3.0
3.5
4.5
5.5
6.5
7.5
8.0

77

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(D)

Tower 15 PSIG C S A 515 / Height, diameter, # of trays

Height and Diameter

$ Cost

Man-Hours

32 x 5 diameter (8.5
Ton) 10 trays
52 x 7.50 diameter (22
Ton) 20 trays
72 x 10 diameter (50
Ton) 30 trays

60,323

42

135,293

162

261,188

337

Add 3% for transport to site for US and overseas applications

(ocean freight would increase freight cost)
(76)

TRANSFORMERS:
(A)

TRANSFORMER (DISTRIBUTION):
3 Phase, Dry Type 480 v primary and 208 / 120 v 60 hz
secondary 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:
Transformer
Capacity KVA

Installation
M.H. s

Approx Cost

20
50
100

12
32
40

$1,131
$3,059
$4,817

(B)

OIL FILLED TRANSFORMERS

KVA
250
500
1,000

(C)

Man-Hours
32
42
56

DRY TRANSFORMERS
KVA
250
500
1,000

(D)

Man-Hours
28
38
52

TRANSFORMER 15KV 480/277 V

78

KVA
100
150
300
500

$ Cost

Man-Hours

11,172
14,396
24,329
36,278

32
42
56

Average Cost per KVA $73 - $112

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(77) TRAVELLING CRANE
(A) OVERHEAD TRAVELLING CRANE: 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.
Lifting Capacity

Material $ Cost

Man-Hours

2.5
5.0
10.0
15.0
20.0
25.0

20,186
26,182
34,461
42,053
46,064
54,348

18
24
30
36
40
48

(78) TREATMENT / SEWAGE PLANT

(A).
TREATMENT PLANT SEWAGE (Packaged 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 cranes,
foundations, setting holding down bolts, grouting, cranes, brackets,
supports, piping, cable, conduit and electrical hook-up, refer to
productivity adjustments on page 2 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.
Plant Volume
Gallons Per Day

Motor
H.P. / # of items

ManHours

M.H. per
HP

2,500
5,000
10,000
15,000
25,000
50,000

2.5 (5-7)
2.5 / 5 (5-7)
5 / 7.5
7.50 / 10 (5-7)
15 (10-15)
25 (10-15)

38
57
102
127
208
337

15.2
15.2
15.1
14.5
13.9
13.5

79

(79)

VACUUM BATCH DRYER:

(A)

VACUUM BATCH TRAY DRYER:

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:

Area / SF
M2

# Of pieces

M.H. s

M.H. per SF

25 / 2.32
50 / 4.65
75 / 6.97
100 / 9.29
200 / 18.60

4/7
4/7
4/7
4/7
7/10

12
22
32
42
54

0.48
0.44
0.42
0.42
0.22

(B)

Vacuum Dryer O.O.M. Equipment Cost

10 SF
20 SF

$113,925 - $188,265
$199,710 - $277,935

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(C) Vacuum Pump 200 HP $110 - $163 per HP
(80)

Vertical Receiver (25 PSI Full Vacuum):

(A)

(81)

Vertical Receiver (Labor & Material)

Capacity in
gallons

304 SS

316 SS

1,000
2,500
5,000
10,000

$20.19
$14.70
$13.13
$10.59

$30.61
$18.11
$17.06
$13.97

VERTICAL TOWERS:
(A)
VERTICAL TOWERS PRESSURE VESSELS -- not
exceeding 120 T/T:
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, internal packing, internals brackets, and
any special testing / inspection if required. Excludes cranes,

80

foundations, setting holding down bolts, grouting, brackets,

supports, piping, cable, conduit and electrical hook-up.:
Tons

Man-Hours per Ton

1 10
10 20
20 40
40 60
60 80
80 100

12.5
10
8.4
4.35
3.25
2.85

(B)
C.S.

Vertical Distillation Tower 1 wall thick A 515

Cost per pound $1.82 - $2.52

Cost per Kg $3.99 - $5.57

Add 3% for transport to site for US and overseas

applications (ocean freight would increase freight cost)
(82)

VESSEL (GLASS LINED)

(A)

.
Horizontal Vessel / Drum, SS 316
Gallons

Weight

$
Equipment
cost

Installation
man-hours

$ Cost
per
gallon

1,000
3,500
7,500
9,000

0.75 ton
1.50 ton
3.20 ton
4.80 ton

26,861
61,577
130,694
145,786

27
37
56
68

26.86
17.59
17.43
16.20

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)
(B)

Horizontal Vessel / Drum, C S 100 PSIG

Gallons

Weight

$
Equipment
cost

Installation
man-hours

$ Cost
per
gallon

500
1,000
2,500
4,000

0.70 ton
1.60 ton
3.00 ton
4.80

5,881
9,057
15,246
23,547

8
12
27
38

11.76
9.06
6.10
5.89

81

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)
(C)

Process Vessel, Vertical 15 PSIG, (Design Temp, 600

Deg F), C S A 515
Gallons

Weight

$
Equipment
cost

Installation
man-hours

$ Cost
per
gallon

1,000
5,000
10,000
15,000

1.60 ton
3.75 ton
5.75 ton
8.25 ton

16,736
31,956
37,122
49,398

23
26
29
42

16.74
6.39
3.71
3.29

Add installation man-hours

Add 3% for transport to site for US and overseas
applications (ocean freight would increase freight cost)
(D)

VESSEL / REACTOR TANK - STAINLESS STEEL (304 /

316):
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

82

VESSEL / REACTOR TANK - STAINLESS STEEL (304 / 316)

400
350
300

Man Hours

250
200
150
100
50
0
100

250

500

750

1,000

2,500

5,000

10,000

15,000

Volume in Gallons

(83)

VIBRATING SCREENS
(A)

VIBRATING SCREENS C.S. A 36:

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 crane rental,
foundations, setting holding down bolts, grouting, brackets,
supports, piping, cable, conduit and electrical hook-up.

Size
Of Screen L X
W inches

Motor
/H.P

Weigh /
Poundst

# Of
pieces

M.H. s

M.H. per
HP

60 x 72
60 x 84
60 x 108
60 x 120
96 x 72
96 x 84
96 x 108
96 x 120

5
7.5
10
10 / 15
7.5 / 10
10 / 12.5
15 / 20
15 / 20

4,150
5,270
7,350
8,150
5,150
5,960
7,850
8,950

7 /10
7 /10
7 /10
7 /10
7 /10
7 /10
7 /10
7 /10

18.5
25
37
45
25
31
47
54

3.7
3.33
3.7
3.6
2.85
2.75
2.68
3.10

83

(84)

UNDER GROUND FUEL OIL TANK:

(A) Under Ground Fuel Oil Tank Installation:
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 pumps, cranes, foundations,
setting holding down bolts, grouting, brackets, supports,
piping, cable, conduit and electrical hook-up.

(85)

Volume

Material

Labor
M.H. s

5,000 gallon
10,000 gallon
25,000 gallon

$4,986
$7,337
$20,810

16
48
64

WIPED FILM EVAPORATOR:

(A)

WIPED FILM EVAPORATOR:

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, 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
on page 2 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.

AREA / SF M2

# Of pieces

M.H. s

M.H. per SF

20 / 1.85
25 / 2.32
50 / 4.65
100 / 9.30

5/9
5/9
5/9
10+

78
88
132
188

4.10
3.70
2.77
1.97

(86) Vertical Distillation Tower 1 wall thick A 515 CS

Cost per pound $1.91 - $2.52

Cost per Kg $4.20 - $5.54

Add 3% for transport to site for US and overseas applications (ocean freight
would increase freight cost)

(87)

Vinyl Lined C.S. Tank

84

500 1,000 M3 = $470 / M3

(88)

Vessels 316 L
10,000 gallon
15,000 gallon
20,000 gallon

$37,013
$54,107
$68,901

$3.70 gallon
$3.61 gallon
$3.45 gallon

Vessel 316l / Alloy 20

25 M3
50 M3
75 M3

$133,770
$239,820
$301,980

$5,350 M3
$4,796 M3
$4,026 M3

Storage Tank C.S.

25 M3
50 M3
75 M3

$557 M3
$525 M3
$488 M3

Storage Tank C.S. Lined

25 M3
50 M3
75 M3

$583 M3
$546 M3
$509 M3

85

SECTION D 1
FRONT END & SEMI - DETAILED ESTIMATING METHODS
The section will in many ways will assist in condensing the cost estimators estimating
efforts and the will optimize the time needed to compile a front end estimate. The end
result should result in more consistent and accurate front end estimates. Semi-Detailed
estimating is a powerful estimating tool, it is basically a hybrid of two estimating methods
(1) Conceptual Estimating and (2) Detailed Estimating, an estimator / engineer familiar
with this method can save a great amount of time utilizing this method, it can be used to
generate new estimates with an accuracy of +/- 15% it can also be used to check
conceptual and detailed estimates. The activity of Conceptual / Front End cost
estimating is a first-rate tool for forecasting the cost of a CAPEX project (s), as we all
know many times the scope and timing of capital projects will typically be subject to
numerous changes during the projects life cycle (how much would it cost if we produced
10, 000 gallons per day, what if we produced 14,000 gallons a day, what would the plant
cost if we built it in Mexico, would we save time and money if we used modules in the
construct effort, should we stick build it, lots of questions, coming at the estimator, of
course all these factors will impact the cost of the plant), this resource / tool can be
used to explain or support the decisions made and is many times the genesis of the
project (s) scope and the how the scope was developed and how the final estimated cost
was arrived at, (how it was compiled and possibly modified along the early stages of the
projects life cycle), an estimator or engineer who is skilled in producing front end & semidetailed estimates is a valuable resource to his or her employer.
The (CAPEX) capital cost for the Engineering, Procurement and Construction (EPC)
project(s) comprises of all the activities and expenditures associated with a specific
building, plant or facility: the major activities will comprise of:

Front End Economic studies

The Detailed Design Effort
Field Construction / Site In-Directs / Construction Equipment / Field
Establishment
Project Management / Construction Management and Procurement activities

Other items could include contractors fees, bonding; insurance (BAR and workers
compensation) and local state taxes, (VAT on overseas applications), tariffs and import
duties, currency fluctuations specific to the CAPEX project. It is the contention of the
authors of this database that a complete Front End & Semi-Detailed Estimate(s) can be
compiled for a Manufacturing / Process and Commercial type facility from the data
contained within this section together with data from earlier sections of this annual cost
database. Depending on extent / degree of design definition (i.e., engineering
deliverables) the estimator / cost engineer / project manager can either use the ratio
method described earlier in section B 2 or if better / enhanced definition on the study /
proposed project is available can choose to compile a Front End / Semi Detailed
Estimating approach described in this section. When you come right down to it a capital
cost estimate is an evaluation / opinion of the final capital cost of a Engineering,
Procurement and Construction (EPC) project, the end uses of an capital cost estimate
are focused on the expected / probable final cost of the completed EPC CAPEX
project(s), used correctly it is the initial control budget, in addition it is a planning and
scheduling tool that can be utilized to determine the manpower requirements / peak

manpower needs to complete the current known scope this can be used to determine
field labor needs and Home Office engineering needs, it can be used as a means for
arriving at a cash flow / spend out plan, a discussion document to resolve risk or scope
items, a bidding / budget tool, or one of the final deliverables of a proposal effort and or
the initial project control framework of an EPC project. The know-how of estimating is not
magic or a mystery nor is it an exact science, it requires the input of an individual(s) that
is organized and analytical in his or her work effort. The endeavor of estimating
(looking into the future, is what this activity is all about) has been around for a long time,
hundreds if not thousands of years, the reasons / need for cost estimating have stayed
much the same over the years, how much material do we need order, how many men
should we hire, how long should we keep this labor resource, how much will it will the
piping cost, when will it be completed, questions and more questions are needed to be
known before moving forward upon any significant EPC project(s). A front end / semidetailed cost estimate can be any kind of capital cost estimate blue sky, order of
magnitude, feasibility, conceptual, appropriation (A.F.E.), preliminary, definitive or lump
sum capital cost estimate, (dependent upon the level of effort applied to the front end
engineering / estimating effort, the resulting accuracy is in many ways contingent upon
the quality / exactness / accuracy of the scope of work statement and other project
related data / information and time and resources available to complete the front end
engineering package and estimating effort, refer to Classification of Cost Estimates and
Range of Accuracy on the following pages. Whatever the case may be, the following
scope / data / deliverables (engineering and estimating) information is many times
required to complete a front end / semi detailed estimate (accuracy +/- 20%):
Assumptions and exclusions, contingencies, source of the cost data and the resulting
accuracy need to be fully document in finalizing the capital cost estimate, the following
engineering deliverables are usually required to complete the type of capital cost
estimate.
1.

A Preliminary scope of work statement / execution strategy.

2.

A Major Equipment list together with an outline specification, capacity / sizes and
materials of construction.

3.

PFDs and P& I D are at between 10% and 100% complete.

4.

Available site plans, general arrangement and major equipment location

drawings / photographs / videos.

5.

Preliminary sketches / drawings indicating major equipment foundations.

6.

Sizes / footprints / number of floors etc. specifications of facilities / buildings

(siding, concrete block, open structure etc.).

7.

A listing Offsite related work, roads, utilities and main piping locations (if this
scope is not defined apply a value of between 20% and 60% to the I.S.B.L. value
to cover the cost of the offsite related work).

8.

Bar chart schedule indicating major project milestones.

9.

An engineering / estimating plan, how are we going to engineer / estimate this

study / project, who does what, when is the information required, who is the point
of contact, when is the study / estimate required, who does it get presented to.
2

10.

A preliminary instrument list, (sometimes this is not available).

The following is a recap of engineering deliverables basic estimating data required to

compile an estimate for the following estimating types / categories A, B, C, D and E.
CAPEX COST ESTIMATING TYPES / ENGINEERING DELIVERABLES REQUIRED
Ref
#
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
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

Engineering Deliverables / Detailed Design Data

Approved written Scope Document / Scope of Work Statement.
Plant location
Facility / Plant production target
Milestone schedule dates / Bar chart listing Engineering / Procurement and
Construction start and finish dates
Detailed CPM / gnat chart schedule / Integrated project schedule
Permits (Environmental / State / Local / Building)
Approve Project Design Basis
Completion of similar project
Soil investigation / hydrology report
Preliminary plot plan
Final plot plan
Site visit (mandatory for C, D & E)
Product and manufacturing capacity / targets
Process flow diagrams PFDs / Block flow diagram
Approved Equipment List
Approved Equipment specifications
Approved Heat & Balance
Preliminary engineering (P&I Ds) flow diagrams
Final / Signed Off engineering (P&I Ds) flow diagrams
Preliminary Major equipment (M.E.) list with sizes and materials specifications
Major Equipment (M.E.) detailed list with sizes and specifications
Approved equipment layout drawings
Final equipment layout drawings
S/C quotations
(M.E.) Major Equipment list with firm bids / prices and vendor assistance values
Use of refurbished equipment
Plan for providing utilities / services
Approved utility flow diagrams (UFDs)
Listing of utility equipment together with budget pricing
Final utility flow diagrams and Final Pricing from vendors
Preliminary plot plan
Approved Final plot plan
Building footprint sizes / Space needs / Room use
Building footprint sizes / elevations / sections and specifications
Demolition scope details
Preliminary foundation design
Preliminary structural steel design
Architectural elevations, details and finish schedule
AFC C/S/A drawings
25 40% engineering (P&I Ds) flow diagrams Material of construction selected
P& I Ds flow diagrams %0 70%% complete, pipe racks / hangars are
conceptually designed (early conceptual take-off completed)
P&I Ds 80% approved (computerized bills of quantity generated)
I/C philosophy is determined
PLC / DCS needs are determined 25 50% engineering (P&I Ds) flow diagrams
completed
Preliminary Instrument list and specifications is determined budget pricing
obtained

Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes

Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes

Yes
Yes
Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes

Yes

Yes

Yes
Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes

Yes
Yes

46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71

Approved Final engineering (P&I Ds) approved / instrument list is generated and
out for final pricing
Instrumentation list is approved
Sub-station MCC designed and sized and placed on order
Preliminary single line diagram and specifications / motor list area classification
determined
Preliminary lighting needs and specifications / motor list
Approved Final single lines / motor list / area classification
Final specs power / lighting needs, area classification map
Quantity take-offs completed for cable, conduit and cable tray together with all
miscellaneous electrical materials completed and priced out by vendors
Preliminary insulation requirements
Detailed equipment list / piping with insulation requirements
Approved engineering (P&I Ds) Detailed insulation specs
Various unit prices / bids from Sub Contractors
Spare Parts, Vendor Assistance, Refractory, Painting, Heat Tracing Freight Costs
Percentage factor of direct costs
Detailed estimate of construction equipment and small tools
Detailed estimate of field support man hours
Detailed estimate of bulk materials, taxes and insurance
Percentage factor of construction costs for initial estimates and benchmarking
final values
Preliminary / Final estimate of man hour requirements (HO and Field)
Detailed estimate of EPC H.O. travel, drawings and other H.O. related costs. C M
details. O.S.B.L. Data
Procurement plan / Contracting strategy
Construction Field Establishment & Support - Cranes, trailers, support labor,
batch plant, testing, field offices and staff
Field procurement / warehousing
COA / Escalation / Fee / Detailed Design and field professional man hours
determined / Bonds / Insurance / Start up costs / other costs
Contingency determination (use REP / MC simulation for D & E estimates
Detailed Management Estimate Review / Estimate Basis (exclusions / inclusions)

Yes

Yes

Yes

Yes

Yes
Yes
Yes

Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes

Yes
Yes
Yes
Yes

Yes

Yes
Yes
Yes

Yes

Yes

Yes

A: OOM / Concept / Screening Estimate: Class 5 / FEL1 - Design typically 0 5% complete.

B: Preliminary / Front End / FEED / Feasibility Study: Class 4 / FEL2 - Design typically 5 10%
complete.
C: AFE / Board Approval Estimate: Class 3 / FEL3 - Design typically 10 15% complete.
D: Budget Control / Baseline Estimate: Class 2 - Design typically 25 45% complete.
E: Lump Sum / Bid / Definitive Estimate / Turnkey: Class 1 - Design typically 50 100%
complete.
Note: (D) & (E) above would be compiled when detailed design is well advanced, the most
current detailed design and pricing data should be incorporated into (E) estimates, in addition a
detailed Management review should be initiated to ensure the total scope has been captured
and priced / included in the Lump Sum / Bid / Definitive Estimate / Turnkey estimate.

Estimate Range of Accuracy: Consider both applications listed below a make a

judgement.
Estimate Type
Front End / O.O.M. / Conceptual Estimates
Appropriation / Preliminary Estimates
Definitive Estimates / Lump Sum

Accuracy
+/- 25% - 35%
+/- 25% - 20%
+/- 10% - 5%

Another method for determining contingency and accuracy is as follows:

Type of Estimate
OOM / Ball Park / Blue Sky
Conceptual / Pre - Design / Feasibility
Front End / (FEED) / Preliminary
Budget Control
Lump Sum / GMP / Turnkey

Contingency %
30 - 40
20 30
15 20
7.5 15
2.5 7.5

Accuracy % +/40 50
20 30
15 20
5 10
0-5

The best solution perhaps is to use an average of both methods indicated above to
arrive at a value that meets the readers needs.
The following data / man hours, material and installation units have been collected over
a period of 15 + years the charts / tables following are not in alphabetical order, it is the
intent of the publisher to update / add to this data source in the next and subsequent
updates.
The following front end and semi-detailed capital cost estimating method detailed in this
section includes a reasonably uncomplicated procedures that will permit estimators, cost
engineers and project / site managers to rapidly and precisely:
Evaluate EPC firms / contractors / subcontractors / vendors proposals.
Compile O.O.M. / front end / conceptual / semi detailed estimates with negligible / limited
project specific data.
Pre-Project / early funding studies:
Audit cost estimates compiled by other organizations.
Verify / Audit / Challenge the cost of proposed scope modifications / change orders.
Assistance in auditing any possible claims (the official audit trail):
Planning / Scheduling the Engineering, Procurement and Construction effort, i.e.,
manpower requirements and long lead delivery items.
Cash Flow forecasting:
Assist in providing basic capital cost data specific to future Value Engineering studies.
Assist in benchmarking actual performance Vs planned.
This method / approach can be put into action at the early engineering / design phase
(the overall detailed engineering effort may be less than 5% complete, sometimes even
before detailed design has been started) i.e., partially complete P & I Ds, i.e., the P & I
Ds may only be between 20% and 50% complete and the general arrangement / plot
plan related drawings, i.e., these drawings could be substantially less than 100%
complete, the merit / worth of the resultant cost estimate(s) may well be as superior as a
traditional detailed cost estimate typically prepared at the 10% - 20% detailed
engineering milestone by corporate engineering group, EPC contractors / engineering
firms and contractors, more often than not with more engineering resources required to
produce the level of engineering required to produce the resultant engineering
deliverables (drawings, specification and bills of quantities) and the resulting significant
financial expenditure to get to this level of engineering. Sometimes these front end /
semi detailed estimates are more cost effective than and as accurate as the detailed
capital cost estimate that is produced at the 20% - 25% engineering milestone. This front
end estimating method / approach does not rely totally on priced / quoted major
equipment values (described in Section B 2 earlier) this method can be helpful if certain
key quantities can be established, i.e., cubic yards of concrete, tons of structural steel,
lengths of piping etc. can be established and added to the Major Equipment (M.E.) cost.
The data indicated on the following pages under the heading of Historical
Benchmarking data. These data point include (1) Cubic yards of concrete per M.E. item,
5

(2) Tons of structural steel per M.E. item, (3) L.F. of pipe per item of M.E. plus a number
of other useful metrics that will assist in compiling a Front End / Semi-Detailed Capital
Cost Estimate. The following comments apply to the data contained within this section.
1.
The estimating all in unit costs which are detailed are on a U.S. basis, these units
can be modified / calibrated by use of international location factors to determine the cost
of plant / or facility located in an overseas location.
2.
This front end capital cost estimating method / approach presents sufficient
general data / information to allow the scope of work statement, cost control, value
engineering data and EPC (eng / procurement and field activities) to be monitored
throughout the detailed execution phase of the project, perhaps until a detailed control
estimate is compiled, usually when the detailed engineering effort is 20% to 40%
complete, hopefully the civil drawings will be completed, allowing the civil field work to
commence.
3.
The method / approach contains basic milestone / benchmarking points for the
application of risk management, value engineering considerations, resolution / focusing
factors, range estimating, escalation determination and contingency considerations, to
make the capital cost estimate more complete and reflective of the scope to be
completed.
The compilation i.e., the nuts and bolts (front end engineering and estimating effort) of
producing a front end / semi-detailed capital cost estimate for a intermediate sized i.e.,
$5 - $10 million refinery / chemical / process / manufacturing related grass roots and revamp plant with approximately 10 - 40 items of major equipment, i.e., pumps, heat
exchangers, vessels etc., (not the off sites; this is usually estimated with a percentage
value 20 60% of the I.S.B.L. work, this is usually adequate at this stage of the projects
life cycle, if the I.S.B.L. scope is known use the following data to budget / estimate the
cost of compiling a front end / semi detailed estimate) this effort would more often than
not take an estimator / project manager no more than 40 60 hours (this is only the
estimating, cost data collection effort ) this together with the front end engineering /
study effort (perhaps no more than 60 to 160 hours of additional effort by a Chemical
Engineer / Project Engineer P.E. / Purchasing Agent, making calls to vendors for budget
pricing, etc.). The Front End / Semi detailed engineering / estimate study should contain
the following deliverables, items 1 5 would be produced by the Chemical Engineer /
P.E. / Purchasing Agent (would have a minor role), with the Estimator / Project Manager
compiling items 6 and 7, this effort say 200 hours x $70 / hour would cost $14,000
1.
Production of conceptual / preliminary / front end scope of work statement /
package / execution approach.
2.
Preliminary major equipment list (with vendor budget quotes on the main
equipment items, hopefully based on prelim, spec sheets).
3.

Preliminary project outline specifications.

4.

Preliminary P. F. D.s / P. & I.D.s.

5.
Conceptual plot layout sketches / general arrangements / major equipment
locations / footprints and numbers of floors for any required buildings / facilities.

6.
A Front End / Semi Detailed Estimate, with a narrative / basis of estimate and a
contingency allowance of between 10% and 15%.
7.
Milestone schedule indicating the start and finish dates of the major Engineering,
Procurement and Construction activities.
Historical Benchmarks
The following table indicates typical ranges of support facilities / services / utilities,
expressed as percentages of the bottom line (TIC) cost of a Chemical facility. In addition
to this table there are a number of additional tables that highlight various historical
benchmarks.
Category
Admin building / guard house
Buildings / change rooms / control
rooms / administration offices (not
main admin office)
Cooling water supply and distribution
Expensed items (demo / dismantle /
repairs / sunken costs)
Fencing
Firewater water supply and
distribution
Gas supply and distribution
Loading area (scales / loading
docks)
Railroads
Roads / walkways
Steam production / boiler and
distribution
Water treatment
Water supply and distribution
Waste treatment
Warehouse finished products
Warehouse raw products
Tank farm
Yard lighting

Percentage Range
1.50% - 8.50%
0.50% - 4.50%
0.50% - 1.50%
0.25% - 1.75%
0.10% - 0.25%
0.50% - 0.75%
0.50% - 1.25%
0.15% - 0.50%
0.50% - 1.00%
0.50% - 2.50%
1.50% - 5.00%
0.25% - 1.50%
0.25% - 0.75%
0.50% - 1.50%
0.50% - 5.00%
0.50% - 2.50%
0.50% - 7.50%%
0.15% - 0.30%

Major Equipment Cost per item (I.S.B.L.):

Number of M.E. items
25
50
100
200
300

Cost per M.E. item

$2,638,283 / 105,531
$4,147,883 / 82,958
$7,870,690 / 78,707
$15,305,997 / 76,530
$22,660,176 / 75,534

For applications were the M.E. count are less than 25 use $110,800 per M.E. item.
Cubic Yards of Concrete per piece of Major Equipment (I.S.B.L.):
7

Number of M.E. items

25
50
100
200
300

Cubic Yards per M.E. item

515 / 20.6
788 / 15.76
1,137 / 11.37
2,269 / 11.34
3,331 / 11.10

For applications were the M.E. count is less than 25 use 25 CY per M.E. item.
Tons of Structural Steel per piece of Major Equipment (I.S.B.L.):
Number of M.E.
items
25
50
100
200
300

Tons of S.S. per M.E. item

69 / 2.76
117 / 2.34
221 / 2.21
423 /2.11
689 / 2.2

For applications were the M.E. count is less than 25 use 3.0 tons per M.E. item.
LF of pipe per piece of Major Equipment (I.S.B.L.):
Number of M.E. items
25
50
100
200
300

LF of pipe per M.E. item

14,370 / 575
26,370 / 527
48,760 / 488
73,830 / 369
94,167 / 313

For applications were the M.E. count is less than 25 use 650 LF per M.E. item.
Heat Exchanger (S & T) C.S.:
Area
100
500
1,000

Cost per SF
$69 - $102
$46 - $79
$28 - $54

Heat Exchanger (S & T) Polished S.S.:

Area
100
500
1,000

Cost per SF
$350 - $625
$145 - $254
$117 - $151

Vessel Atmosphere / Pressure, C.S.

Gallons

Cost per Gallon

8

100
500
1,000
5,000
10,000

$46 - $74
$18 - $34
$9.24 - $13.13
$2.84 - $6.93
$2.10 - $3.47

Tower (Distillation) with 20 30 trays 60 to 70 high

Dia / Inches
24
36
48
60
72

100 PSI Material only $

Cost
55,055
69,901
73,555
81,855
112,874

250 PSI Material only $

Cost
72,500
79,671
96,185
114,104
161,461

Direct Field Construction Hours per piece of M.E. (I.S.B.L.)

Number of M.E. items
25
50
100
200
300

Number of M. H.s
40,990 / 1,639
79,600 / 1,592
143,700 / 1,437
296.800 / 1,484
471,200 / 1,570

For applications were the M.E. count is less than 25 use 1,750 M.H. s per M.E. item.
Number of piping lines per piece of M.E. (I.S.B.L.):
Number of M.E. items
25
50
100
200
300

Number of piping lines per M.E.

189 / 7.9
346 / 6.9
678 / 6.8
873 / 4.4
1,065 / 3.5

For applications were the M.E. count is less than 25 use 10 lines per M.E. item.
Number of instrumentation loops per piece of M.E. (I.S.B.L.)
Number of M.E. items
25
50
100
200
300

Number of instrumentation, loops per

M.E.
98 / 3.9
179 / 3.6
316 / 3.2
588 / 2.9
N/A

For applications were the M.E. count is less than 25 use 5 loops per M.E. item
Bulk Material (L-M) per item of M.E. (I.S.B.L.):
Number of M.E. items
25
50
100
200
300

Bulk Material (L-M) per item of M.E.

$3,786,300 / 151,452
7,373,100 / 147,462
14,488,000 / 144,880
28,612,080 / 143,060
40,950,315 / 136,501

For applications were the M.E. count is less than 25 use $156,700 per M.E. item.
Home Office - Engineering, Procurement and Construction (EPC): Typical Hourly Rates:
- Charged to Owners by EPC firms working on major US domestic and overseas
Refinery / Chemical / Manufacturing CAPEX Projects - ranging in value from $25 million
- $500+ million. (Note these are 2009 bill-out rates for US based staff, CAD machine
costs are not included in rates, Xerox copies, express mail, long distance telephone calls
are not included in rates and would be additional to the rates indicated below (this value
could range between $4.50 - $7.50). Rates include salaries of staff, fringe benefits, and
rent or leasing costs of office accommodation, electricity, heating / air conditioning,
maintaining office (cleaning); support staff such a HR department / security services, the
rates include a profit margin of 7.5% - 10%. (Note these rates correspond to a multiplier
of 1.8 - 2.6 of W2 salaries). The day rates are based on 8 hours per day, many projects
work 5 -10 hour days and 4-10 hour days the following week, for an average of 45 hours
per week, adjust day rates if this is the situation.
Skill
#

1
2
3
4
5
6
7
8
9
10
11
12
13

Staffing Description / Classification

Project Director / Project Manager

Deputy Project Director / Project
Manager
Engineering Manager
Business Manager (Contracts /
Procurement / Project Controls /
Administration)
Deputy Business Manager
Lead Discipline Engineer *
Senior Discipline Engineer *
Discipline Engineer *
Project Controls Manager
Field Manager / Agent
Lead Estimator
Estimator
Junior Estimator

Minimum
Man-hour
Hourly /
Rate in US
$
$150
$140
$140
$140
$135
$120
$110
$100
$130
$105
$115
$105
$60

10

Minimu
m Day
Rate in
US $
$1,200
$1,120
$1,120
$1,120
$1,080
$960
$880
$800
$1,040
$840
$920
$840
$480

Maximum
Man-hour
Hourly /
Rate in US
$
$200
$180
$175
$175
$155
$145
$135
$120
$150
$140
$135
$125
$85

Maximum
Day Rate
in US $
$1,600
$1,440
$1,400
$1,400
$1,240
$1,160
$1,080
$960
$1,200
$1,120
$1,080
$1,000
$680

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

Lead Planner
Planner
Junior Planner
Lead Cost Engineer
Cost Engineer / Cost Analyst
Senior Quantity Surveyor
Junior Quantity Surveyor
Lead QA / QC Engineer
QA / QC Engineer
Lead Procurement / Contracts
Manager
Deputy Procurement / Contracts
Manager
Contracts Engineer - S/C Coordinator
Procurement Team Member
Expeditor / Trafficking Coordinator
Warehouse Materials Coordinator
Vendor Inspector (Equipment)
Contracts Administrator
Lead Designer
Designer / CAD Operator
Document Control Team Member
Secretary / Administrator
Home Office Construction Manager
Project Accountant
Accounts Payable Clerk
H O Safety & Health Manager
Commissioning / Start Up Engineer

$115
$105
$60
$115
$100
$115
$50
$110
$95
$110

$920
$840
$480
$920
$800
$920
$400
$880
$760

$130
$125
$85
$130
$120
$130
$85
$130
$120
$135

$880
$100
$100
$85
$80
$55
$75
$65
$85
$60
$55
$40
$105
$85
$50
$85
$105

$1,080
$125

$800
$800
$680
$640
$440
$600
$520
$680
$480
$440
$320
$840
$680
$400
$680
$840

$125
$110
$90
$90
$110
$95
$115
$95
$85
$65
$135
$110
$85
$120
$125

* (Civil / Structural / Architectural, Process, Mechanical / Rotating Equipment, Building

Services, Piping, Electrical, Instrumentation and various specialist engineers)
Detailed Design / EPC Engineering Hours:
Determining and estimating the EPC contractors detailed engineering costs can be
calculated as a percentage of the direct project costs, refer to section A-3 for examples
of this application, this method is used many times in front end / semi detailed estimates.
Items to consider when selecting a value / or percentages are:
1.

Location North America or overseas.

2.

Productivity of engineering firm.

3.

New technology / duplicate plant.

4.

Green field site / inside an existing operating unit.

5.

Revamp / upgrade / demolition.

6.

Plant size and complexity.

11

$1,040
$1,000
$680
$1,040
$960
$1,040
$680
$1,040
$960

$1,000
$1,000
$880
$720
$720
$880
$760
$920
$760
$680
$520
$1,080
$880
$680
$960
$1,000

7.

EPC Engineering contractor skill set / size.

8.

Non-process buildings / facilities.

9.

Execution method, lump sum / direct hire.

10.

Off-sites, additional utilities.

11.

Corporate Engineering / Plant Engineering involvement.

12.

Schedule requirements, fast track / shift work. / over time.

The following is the engineering / design man (detailed design) hours per piece of major
equipment (pumps, vessels, heat exchangers, towers, etc.) data is from a number of
new / green field and revamp / upgrade chemical / refinery projects completed in North
America in the 1990s.
Total EPC Home Office per piece of Major Equipment
#
1
2
3
4
5
6
7

New or
Revamp
New plant
New plant
New plant
Revamp
Revamp
Revamp
Revamp

Facility Size
Small
Mid-sized
Large
Small
Mid sized
Large
Mid sized

Hours / M.E.
items
5,560 / 12
17,750 / 23
40,204 / 97
7,970 / 7
33,395 / 31
73,899 / 83
31,370 / 34

Hours per M.E

item
463
772
414
1,138
1,077
890
923

As can be seen from the above data, the engineering man hours per piece of major
equipment falls in the range of 400 1,200 man hours, these man hours include:
Project Management / Project Engineering
Engineering / Drafting / CAD
Procurement activities / Contracts / QA/QC
Project Control
H.O. Construction Support / H.O. Accounting / Administration
Above man hours include the total home office involvement as listed, excludes site
management team. Note the above data points exclude O.S.B.L. (off sites work).
Typical Production hours to produce various Drawings specific to a $10 - $50 +
million process related facility:
Discipline
Civil

Drawing / Arrangement Type

Site Works General Layout
Foundation layout
Foundation / wall sections and detail
Underground services
Rebar details
Parking lot drawing
12

Man-hour Range
60 120
80 120
80 120
60 120
60 80
40 60

Architectural

Structural

Mechanical

Major Equipment

Process

Process Pipe

Electrical

I/C
OSBL Data

Facility General Arrangements

Wall sections
Floor plans
Finish schedule
Framing arrangement
Flooring details
Platforms / ladders and stairs
Pipe rack arrangement
Building MEP systems
HVAC layout
Building MEP list
Major Equipment layout
Major Equipment list
Data sheet
Insulation / tracing schedule
Block Flow Diagram (BFD)
Utility Flow Diagram
Process Flow Diagram (PFD)
Piping & Instrumentation Diagram (P&ID)
Heat and Material Balance
Piping General arrangements
Plot Plan
ISOs
Insulation / tracing schedule
Area classification
Single line drawings
Motor / Electrical load list
Lighting plan
I/C List
Utility tie-in points
Other OSBL key data
OSBL equipment list

80 120
40 80
60 100
80 120
40 80
40 80
50 100
60 120
60 90
40 60
40 60
40 80
60 140
25 50
30 60
50 100
50 100
60 120
80 160
50 100
60 120
60 120
10 18
30 60
40 80
40 100
40 80
30 60
50 100
20 40
30 60
40 80

Demolition
1.5 3.5 hours per ton for demo of equipment and piping
0.0025 0.005 hours per CF content of demolished facility
Miscellaneous Items: when sketches and preliminary drawings / engineering
deliverables are on hand, formulate approximate quantity take-offs and use prices
indicated in B 4 earlier in unit price section and / or the all in pricing data indicated
below. Quantify and estimate as many work items that can be quantified from the
engineering deliverables available and the time / resources available.
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)
Item

Unit Of Measure
13

$ Cost

Vinyl Tile Floor

Cabinets 30 high with doors 30 deep (metal/
wood)
Casework 30 high ditto
Self leveling epoxy floor 0.50
Sheet vinyl floor (lino)
Polyurethane concrete screed 0.50
Epoxy Terrazzo
Phenolic resin work top 1 thick
Ditto 0.75 thick
Directory Boards 4 x 3
Emergency Lighting (nic-cad)
Bally boxes / cold storage areas
Lawn Sprinkler System
Welded PVC Floor
High Pressure Laminated Wall System
Clean Room Demountable Wall Panel
Ceiling Demount / Access Clean Room
Ceiling board (glass fiber coated)
Metal pan tile
Ceiling board (with sheet vinyl)
Gyprock ceiling board (on metal studs)
Air handlers (Equipment only)
Fans & Blowers (Equipment only)
Dust Collectors (Equipment only)
Lab Centrifuge Unit 2.5 CF (Equipment only)
Anaerobaric chamber 12 CF (Equipment only)
Dock Levelers 6 x 8
Elevator (hydraulic)
Building Demolition (excludes tipping fees)
Tipping Fees
Hand excavation one lift / medium soil (2 M.H. s
CY)
Site clearing / grubbing
Excavation and disposal within 5 miles
Rock removal (light)
Rock removal (heavy)
Backfill compacted
Imported stone / sub base
Asphalt roads (6paving/ 6stone)
6 Wire / Chain fence
Manhole, Concrete, 4 I.D. 4 deep
Metal sheet piling
PVC U.G. drains, incl, excav & b/fill 2 dia
ditto 4
ditto 6
ditto 8
Land drain porous concrete, 6dia
ditto 8
Slab on grade 4reinf, with 6 stone base
Ditto 6 thick SOG
Ditto 6 broom finish
Copper pipe, 0.75 dia, type M
Ready mixed concrete 3,000 PSI
Railroad track
14

SF
LF

2.75
231

LF
SF
SF
SF
SF
SF
SF
Ea
Ea
SF
SF
SF
SF
SF
SF
SF
SF
SF
SF
CFM
CFM
CFM
Ea
Ea
Ea
Per floor
CF
TON
CY

100-139
2.10
1.68 2.81
5.25
13.07
14 19
11 17
546 945
446 756
16 34
0.84
5.30
29.61
39.17
20.69
5.46
2.94
5.20
5.36
2.89 7.14
2.89 4.99
22 39
3,145
5,350
3,812 6,353
38,850 54,075
0.30 0.53
45.15 70.88
27.20 53.55

ACRE
CY
CY
CY
CY
CY
SY
LF
Ea
SF
LF
LF
LF
LF
LF
LF
SF
SF
SF
LF
CY
LF

2,987
7.09
9.29
18.64
20.63
23.94
28.25
23.47 41.48
2678
29.56
21.95
29.19
34.81
43.79
20.84
25.57
4.25
4.73
5.09
0.95
79.43
152.25

Caisson 24 dia, filled with concrete

Ditto 30 ditto
Ditto 36 ditto
Concrete curb, cast in place 6 x 12
Sandblasting
Bush hammer concrete
Grout non shrink
Rubber Water stop 6
1 dia Pharmaceutical Grade 316 SS pipe
1.5 dia ditto
2 dia ditto
3 dia ditto
Lay in Ceiling Tile 4x 4
Lay in tile with epoxy / PVC finish
Lay in washable tile with mastic sealed joints
Drywall / plasterboard with epoxy paint
Drywall / plasterboard with h p laminated
Demountable walk able clean room system
Vinyl Tile (VCT)
Casework
Vinyl Sheets with welded seams
Welded PVC floor
Epoxy Resin 3/8thick
Ground Epoxy Terrazzo with 3coved skirt
4 concrete block wall with drywall on both sides
4 Drywall / plasterboard both sides with epoxy
paint
6 Block with screed and epoxy paint both sides
4 Demountable Clean room wall panel
4 Drywall / plasterboard b /s with welded PVC
4 Drywall / plasterboard with h p laminate
Trespa wall facing (both sides) 0.25
Glazed ceramic tiles (both sides)
CCTV system (1 TV & Camera)

LF
LF
LF
LF
SF
SF
CF
LF
LF
LF
LF
LF
SF
SF
SF
SF
SF
SF
SF
SF of lab are
SF
SF
SF
SF
SF
SF

54.08
66.68
79.12
16.22
1.44
2.26
42.58
12.44
47
54
64
82
2.47 3.57
2.99 4.25
4.15 5.67
4.73 6.41
6.88 9.08
15.75 21.89
1.89 3.57
84 103
2.42 3.57
3.15 4.73
4.10 6.20
11.55 14.54
7.19 9.56
10.19 14.70

SF
SF
SF
SF
SF
SF
Each

15.49 20.16
31.40 37.17
20.11 23.99
25.04 29.93
12.50
13.49
3,885

Structural Steel (Misc., iron work), generate quantity take-offs and convert to pounds /
tons (weights can be obtained from various construction reference books / tables) from
available drawings / sketches and costs from Section B 4, or use the following all in
pricing listed below. Compile estimate by buildings / facilities, process structures,
miscellaneous platforms and pipe supports / racks. Structural Steel material costs and
erection man hours typify the average of the hours and material unit prices utilized by
various large structural steel fabricators / installers, fabricated and delivered to the job
site, including associated aligning and leveling, bolts / brackets / gusset plates, welding
and one primer coat of paint (excludes grouting).
Material

$ Cost - M.H. s / Ton

Structural Steel light / medium

Structural Steel heavy
Miscellaneous, platforms w/o grating
Miscellaneous ladders
Grating, galv

$2,619
$2,446
$5,972
$6,334
$11.77/SF
15

12/14
12/14
48/56
44/60
0.20/0.25 SF

Grating, galv
Stairs, galv
Pipe rack steel
Metal Decking 20 g 1.50 deep
Open Mesh / Checker plate
Staircase
Handrail CS Single
Ditto Double

$5,999
$6,329
$2,597
$2.86/SF
$19.39 / SF
$201.42 /LF
$33.97 / LF
$45.90 / LF

40/48
36/42
16/18
0.10/SF
0.12/SF

Excludes crane / crane driver costs

Structural Steel weights per SF

Warehouse 8 14 pounds

Manufacturing Building (2-4 floors) 12 20 pounds

Office / Admin Building (2- 4 floors) 16 28 pounds

Heavy Duty Manufacturing Facility 25 65 pounds

Welding Fillet Man Hours 100% Full Penetration

Fillet / Thickness
1/8
3/16
1/4"
5/16
3/8
1/2"
1

M.H. s / LF
(Vertical)
.185
.235
.335
.41
.715
.935
1.90

M.H. s / LF
(Horizontal)
.105
.155
.22
.275
.475
.64
1.45

M.H. s / LF
(Overhead)
.21
.31
.45
.51
.87
1.15
3.33

Facilities / Buildings calculate footprint area / usable space / multiply by number of

floors, refer to section B 3 for appropriate building type or below for approximate square
foot unit costs. The following are typical buildings / facilities that would be found on a
typical process / refinery / manufacturing facility.

1.
2.
3.
4.
5.
6.
7.
8.

Warehouse
Control room 3 operators
MCC room
3-5 admin offices
Field laboratory (2 people)
Lunch room (12 users)
Change / wash room
Reception / waiting area

SF / $ cost

Typical size in SF

53 79
95 152
89 - 163
84 - 126
95 - 126
95 - 173
63 116
89 121

5,000 / 10,000
500 / 700
250 / 400
750 / 1,000
200 / 350
300 / 500
400 / 600
250 / 350

16

9.
Garage / Parking Stall R.C. open Structure cost per car
$11,000 low $16,500 high
10.
Hospital cost per bed / patient
$57,225 low - $173,250 high
11.
Hotel / Motel cost per room Average
$28,665 low - $59,850 high
12.
12 Hotel / Motel cost per room (3 star)
$46,725 low - $115,500 high

O.M. Air Conditioning / Cooling Values

Facility Type
SF per Ton M2 per Ton Cost per Ton
$3,875
Apartment (3-5 story)
500
46.5
$6,563
Computer / Data Processing Center
100
9.3
$2,641
Manufacturing Facility / Factory
300
27.9
$6,778
Hospital (3-5 story)
250
23.2
$5,581
Hotel (3- 5 story)
350
32.5
$5,948
Office Building (3 - 5 story)
300
27.9
$7,686
Refrigerated Warehouse
500
46.5
O.O.M. Air - Handler Units (DX - Chilled water includes coils, blower and
drives)
Tons HP
CFM
Material Cost Man-Hours
$4,641
10
1
5,000
6
$10,815
25
2.5
10,000
12.5
$20,843
50
10
20,000
30
O.O.M. Packaged Water Chiller / Recip Compressor
C / W condenser / H.E. / chiller / Piping and local controls
Tons
Material
Man-Hours
Miscl hook-up materials
$30,949
25
2.5
18
$225
$52,227
50
10
22
$225
$80,640
100
15
36
$350

Tons
100
200
300
400
500

Centrifugal Cost per Ton Absorption Cost per Ton

System
System
$31,904
$319
$356,370
$3,564
$183
$61,709
$309
$36,582
$52,626
$175
$90,930
$303
$159
$113,400
$284
$63,788
$75,653
$151
$136,500
$273

Low Pressure Scotch Boiler, fired by natural gas (Material & Labor)
Pounds of steam / hour
5,000
7,500
10,000

Cost (M&L) Cost per pound

$65,294
$13.06
$89,145
$11.89
$111,825
$11.18

17

O.O.M. / Conceptual Estimating for budgeting Air Handling Blower type equipment
(1)

Air Handlers

$2.85 - $6.35 per CFM.

(2)

Fans & Blowers

$2.20 -$4.05 per CFM.

(3)

Exhaust Fans

$1.65 - $3.35 per CFM.

(4)

Housekeeping vacuum system.

$28 - $38 CFM.

(5)

Dust Collectors

$28 - $39 CFM.

Miscellaneous Major Equipment, the majority of major equipment items can be

estimated / budgeted by utilizing the details indicated in earlier Section B 4 and C1 of
this publication, it is important to remember that 3 - 5% should be added for freight, for
international projects, freight, import duties and tariffs may need to be added to F.O.B. /
ex works value. The most precise, method of pricing major equipment is with the
assistance of vendors / equipment manufactures, i.e., providing the vendor with an
equipment data sheet (outline specification) and getting a written quote faxed back from
the vendor, indicating the budget or firm price for the specific piece of equipment, or
historically by analysis of recent procurement activities / purchase orders to collect
recent pricing values and trends. On the other hand, it repeatedly came about that
either the reason / purpose of compiling the estimate does not validate the expense or
resources / time limitation and the compilation of the capital cost estimate does not allow
it to transpire. The following budget price should assist the Cost Engineer / Estimator or
the Project Manager when faced with this situation.
Note: Refer to section C - 1 and A - 4 for specific details regarding Major Equipment
budget pricing and man-hour installation values.
Process Plant / Chemical Facility Piping / Biotech / Pharmaceutical Process
Facility Piping Considerations:
There are more than 200 diverse piping related materials specified by the American
Society for Testing Materials (ASTM) for utilization in the production and manufacture of
piping and related fittings that can be used in the following facilities:

Process plants
Refineries
Chemical facilities
Biotech manufacturing plants
Pharmaceutical process facilities
Manufacturing facilities

Metal pipes are usually made from ductile iron, black or galvanized steel (CS), copper,
or stainless steel (i.e. 304 / 316) and numerous alloy type materials that all have cost
and installation consequences. Basically there are three manufacturing methods for
producing metal piping systems. (1) Seamless pipe is manufactured by drawing a solid
ingot / casting slab over or through a piercing rod / dye to produce the circular / hollow
shell, i.e. pipe while the ingot is at an extremely high temperature, this production
method is perhaps the most widely used in the industry, it is often more readily available
than welded pipe, which is the second most widely used material. (2) Welded pipe is
18

formed by rolling steel plate in circular form and welding the joint / seam together, the
slag is ground off the pipe both externally and internally. (3) Cast pipe is not widely used
and is only used in special circumstances; this is of course more expensive than the
above 2 # manufacturing steps / methods. The materials that are used include carbon
steel such as (A-53, A-106, A-83, A-120 which are the most widely used in industry - to
name but a few), alloy steels (sometimes referred to as exotic materials) such as
(Stainless Steel S 304, 316, 304L, 316L, 317 254SMO, AL6XN, 309, 310, 347 - to name
but a few) together with and an extensive variety of nonferrous materials. Both the
ASTM and the American Society of Mechanical Engineers (ASME) have over many
years supplied a very useful service / role and guidance in compiling and updating
comprehensive bulletins and specifications for this complex / maze-like range of
applications specific to piping related materials and their appropriate applications. In the
last decade or two the use of plastic piping (applications and materials) Polypropylene
(PP) and polyvinyl chloride (PVC) piping systems, Hi-Temp CPVC (PVDC) pipe and
fittings have made a giant leap forward in the process industries, plastic pipe can be put
in place with less hours than steel pipe, it weighs less and can be cut relatively quickly.
The following points / topics should be considered when initiating the estimating and
take-off effort specific to process piping / utility piping inside or outside a manufacturing
facility or in the application of a chemical plant - Inside Battery Limit (ISBL) and Outside
Battery Limit (OSBL). Process Piping. Process piping work essentially is made up of the
following items and components. The vast majority of all piping systems have the
following components associated with them that need to be evaluated and estimated.

Material unit prices (remember sizable discounts can be achieved from suppliers
for large quantity orders possible as much as 40%- 50%).
Waste 2.5% 5% (typically).
Freight, 2% to 3% for US applications should be added to the purchase price if
this is missing from a suppliers quote.
Man-hours for (field fabrication or shop pre-fabrication and field erection).
Labor costs (union Vs non-union).
Construction equipment (welding machines or cranes).
Consumables (gases and welding rods).
Small tools.
Indirect labor (support to direct field labor).
Supervision.
Overhead and profit.

All of these topics / elements to need to be considered and allowed for in the estimate,
additional scope issues to be considered include, new or revamp work, productivity,
weather, onsite or offsite fabrication, union / non-union work or merit shop and any
unique constraints such as completion date or working in an existing facility, working on
grade or working 100 above grade. Initiating the process (ISBL or OSBL) piping
estimate, must start with a review of the available engineering data (design deliverables)
if it exists, line lists, sketches, plot plans, major equipment locations, piping and
instrument diagrams (P. & I.D. s), photographs - a site visit would be helpful, and an
appreciation of the total scope of work (written or verbal), project goals, restraints,
materials of construction and specifications, scope items to take account of in the
process piping take off / estimate include the following:

Piping system: The entire piping system used for the movement of fluids /
chemicals / water / powders / air etc used in the process / manufacturing effort.

19

This work includes cutting, beveling, fit up, preheating, welding, stress relieving,
grinding and any required x-ray testing or NDT, together with any hydro testing
and or pickling of the piping system. This should also include piping related bolts,
nuts, gaskets, weldolets, caps, unions, strainers and nipples etc.

Pipe Fittings: All required piping fitting (elbows, caps, reducers, tees)

Pipe Flanges / Couplings (150# / 300#): All required pipe flanges, couplings
utilized to join pipe to pipe and any required fittings (elbows, reducers, tees) to
each other.

Pipe Valves: All necessary valves (gate, globe, check, butterfly etc) utilized in
starting, stopping and regulating the flow of fluids throughout the process /
manufacturing steps.

Pipe hangars, shoes, guides and any required supports and frames.

Evaluation and points to consider before starting the Scope Review / Take Off /
Estimating effort: The estimate / take off effort should recognize its physical location i.e.
Inside Battery Limits (ISBL) and OSBL (Outside Battery Limits Off-sites) piping
material and labor should were possible be separated out by its material of construction,
codes, (API, ASTM, ASME, and ANSI etc.) specification, diameter, schedule wall
thickness i.e. schedule 40, 80, small bore piping (2diameter and less, usually joined
together with screwed fittings) and large bore piping (2diameter and greater, typically
welded together). Take off the quantity of pipe in LF or Meters; count the number of
fittings and their rating (150# or 300# tees, elbows, reducers etc, welded or screwed)
and number of valves. Fabrication of process pipe includes the collection of material
from lay down yard, preparation, measuring, cutting, beveling, welding, stress relieving
and any grinding to manufacture various piping isometrics / spools for eventual field
assembly and installation. Additional factors to take account of include the following.

Weather protection issues, tarpaulins, sheds, and covered work area.

Material handing issues, the need for forklifts, trucks, lay down area, bar coding
and other warehousing and transportation / logistics issues.

Control valve installation and the demarcation of pipe fitter & electrician work
(consider control wiring and hook-up issues).

Make sure underground piping is wrapped or coated and is accounted for in the
estimate, include and thrust blocks.

Ensure that all required orifices, strainers, blinds; rupture discs, pressure relief
valves and any flexible hoses are accounted for.

Worker protection issues such as weather, noise, fumes and eye protection.

Sizes of project issues, i.e. smaller projects have larger mobilization and
demobilization activities, these projects typically experience a greater learning
curve.

20

Shift work / overtime issues such as additional supervision, worker fatigue and
shift pay differentials.

Ensure that pipe sleepers (usually pre-cast concrete) are accounted for.

Tie ins and shut down issues such as hot taps, hot work permits and equipment
standby.

Limited use of construction equipment / cranes / hoists due to working in existing

operating plants.

Temporary protection of existing production equipment / screens.

Fire blankets / safety / fire watch personnel.

Material cost premiums for small quantities / deliveries.

Small bore diameter pipe (2diameter and less, usually joined together with
screwed fittings). This type of piping is usually fabricated at the site sometimes
referred to as field run piping.

Large bore diameter pipe (2diameter and greater, typically welded together) is
typically fabricated in a pipe fabrication vendors facility and shipped in spool
pieces to the jobsite, the benefits of this is (1) quality control (produced in a
factory type environment), (2) schedule enhancement, (3) optimized costs and
the need for less welding activities at the job site, i.e. less field manpower
requirements.

The estimate / take off should recognize any vents, drains and waste piping
systems (that are usually field run), couplings, expansion joints, thermo welds,
weldolets, jumpers and strainers etc that are need and to what level of
magnitude.

Establish scope / and quantity of steam tracing required and estimate accordingly
(spiral or straight run tubing).

Ensure that existing systems are drained and safe prior to new tie-ins to piping
systems.

The estimate / take off should recognize any breaking up of paved areas,
excavation, planking & strutting, stone bedding materials, thrust blocks,
backfilling and any off site disposal, road crossings and the reinstatement of road
or paved areas.

The piping related to a Biotech / Pharmaceutical Process Facility is typically a big piece
of the overall pie, the cost of this work typically runs between 25% - 50% of the total
installed cost of the completed facility, so care and attention needs to be taken in
scoping out and estimating this element of the project. This topic can be somewhat
complex due to the fact that there are so many systems to consider, the only way to
estimate this scope is to break it down into smaller pieces. Some of the systems that will
be encountered are listed below:
21

Process piping
HVAC piping
Service piping for Manufacturing / Process Equipment
Vacuum systems
Compressed air systems
Reverse Osmosis piping (RO)
Water systems
Water for injection piping (WFI)
De-ionized water piping (DI)
Laboratory gases
Cryogenic storage systems
Sanitary treatment
Drainage system
Clean in place systems (CIP)
Steam in place systems (SIP)
Gases (CO2, nitrogen, argon, natural gas and perhaps more) needed to be
quantified.

These and many other systems to numerous to mention need to be scoped out and
estimated. Biotech / Pharmaceutical process facility type piping must be fabricated and
installed to high quality standards, the quality of these piping systems is vital for the
future production / safety / quality and future profitability of any biotech / pharmaceutical
company. Issues that need to be considered in estimating this type of work includes:
materials to be used: There are numerous materials that could be selected that have
cost consequences associated with them, some of the most commonly used materials
are aluminum, brass, carbon steel, stainless steel, cast iron, copper, some of these are
corrosion resistant materials, CPVC, polypropylene pipe, double wall materials
jacketed piping, additional items to bear in mind are various cleanouts / clover leaf
fittings, gas piping, glass pipe applications, PVC applications, fiberglass reinforced pipe
(FRP), various pipe liners, fittings, valves, shock absorbers, hangars and various
wrappings. There are two distinct types of piping in Biotech facilities, (1) piping that
comes into direct contact with the finished product, many times referred to as clean
piping more often than not SS 304 and 316, and (2) piping that does not come into
direct contact with the finished product, many times referred to as non clean piping,
these piping systems can be copper, carbon steel, plastic and a host of other less
expensive materials. Pharmaceutical piping systems and manufacturing / production
equipment usually make use of stainless steels applications, stainless steel 304, 304 L,
316, and 316L are the most frequently used materials, these materials are less likely to
corrode over time than carbon steel applications, the manufacturing steps in the
pharmaceutical industry is usually subject high operating temperatures and pressures,
the industry has to ensure that cleanliness is always maintained in the manufacturing
process, hence the use of these materials.
Manufacturing / production equipment can typically be made of a combination of both
S.S. 304 - 316 and SS 304 L - 316 L and other materials such as 317 and 321(plus on
some occasions 2205, 254SMO, AL6XN, 309, 347, 405, 7MO, monel, titanium, inconel
and admiralty), The most conventional type of stainless steel is a type of steel called
austenitic, this is a type of alloy(s) that has a high amount of chromium within its
makeup. These austenitic steel products have a somewhat high resistance to surface
deterioration (pitting and corrosion) when in its passive condition, when oxygen makes
22

contact with the surface of plates or pipe it forms a protecting build-up or layer of
chromium oxide material. 304 stainless steel is used in sheet metal products, food
production, manufacturing facilities (bakeries, dairies etc), hospitals and various storage
tanks and road transportation tanks together with piping, fitting and associated valves
and applications that are not sensitive to a marine or corrosive location. 304 is readily
shaped and welded; however it does not have good milling characteristics. 316 stainless
steel is used in more extreme corrosive locations / applications, it is widely used in
refineries, chemical plants, on the other hand, 316 stainless steel is subject to pitting /
corrosion if it encounters high levels of chlorine for extended periods of time. 316
Stainless Steel is utilized in corrosive environment or in marine environment. 304 costs
6% - 10% less than 316 stainless steel, stainless steel type 304L and 316L stainless
steels are utilized when components need to be welded, the L indicates a low carbon
level, this grade basically allows extra corrosion resistance after the weld has been
made, it is not crucial to use 304L and 316L for sheet metal applications. Typically the
cost differential between 304 and 304 L and 316 and 316 L is not that great, over the
last five years 304 L and 316 L applications have been averaging 3% to 6% more
expensive than 304 and 316 stainless steel. Extruded seamless and / longitudinally
welded SS piping / tubing is frequently used in stainless steel piping systems 0.50 to 2
diameter. Specifications that are many times followed are ASTM 269 and 270. The
above mentioned piping systems are many times used in manufacturing of Biotech /
Pharmaceutical products such as vaccines, sterile products, oral solid dosage products,
potent compounds, pharmaceutical intermediates, hormone growth products,
fermentation related products, tablets, R & D medicine facilities and Active
Pharmaceutical Ingredients (APIs), these piping systems are required to be cleaned /
flushed and sterilized many times over there production life. The most common piping
material and size utilized in Biotech / Pharmaceutical Process Facility is stainless steel
as previously described; the piping typically is 1 to 4 diameter (typically 2 diameter is
the most common diameter).
The piping systems typically encountered on these types of facilities are DI (de-ionized
water piping), WFI (water for injection piping), CIP (clean in place piping), SIP (steam in
place piping), RO (reverse osmosis piping) and other service / utility type piping. Electropolishing (EP) and mechanical polishing (MP) and passivation methods are applied to
stainless steel piping and process / manufacturing equipment to curtail future corrosion
activities, the cost impact of this progressive polishing activity is considerable and can
increase the cost of these stainless steel materials / systems by as much as 10 - 20%,
other materials such as monel, titanium and inconel do not require this polishing /
passivation activity. The vast majority of Biotech / Pharmaceutical Process Facility
Piping utilizes the orbital welding applications, orbital welding machines (were the
welding activity takes place in a vacuum chamber / the welding arc moves around the
pipe wall) Vs manual welds, the use of orbital welding has increased dramatically to
perhaps were perhaps 75% of all shop / field welding applications uses the orbital
welding method. Orbital welding has become the favored technique for installing (the
actual welding together of the pipe to each other) in SS piping systems. Plastic piping is
also used in this type of construction, plastic piping / thermoplastics are used in some
piping systems; PVC, Clear PVC, CPVC, PVDC, ABS, PVDF, PB and PP are widely
used; these materials are readily obtainable and will lessen the construction (installation)
costs and construction schedule. Polypropylene (PP) and polyvinyl chloride (PVC, this
is good for a service temperature up to 140 degrees F, it is not recommended for
compressed air or gases) piping systems could be specified if the temperature, pressure
and fluid is non corrosive, this piping material are cost effective (materials and field
installation less man-hours to install), however these materials do not perform well in
23

hot / high pressure applications, CPVC performs reasonably well in hot / high pressure
situation, (it can handle temperatures up 200 degrees F, it is not recommended for
compressed air or gases). Additional plastic piping / thermoplastics such as
polyvinylindene fluoride (PVDF) or Hi-Temp CPVC (PVDC) pipe and fittings can be used
in higher temperature / pressure applications also, the cost benefit of using plastic (PVC)
type piping / thermoplastics materials in various piping systems is usually 20% 70%
lower than the cost of a similar 304 / 316 SS system / application, it must be
remembered that these stainless steel piping systems / applications typically need non
destructive testing (NDT), x ray inspection, electro-polishing (EP) and mechanical
polishing (MP) polishing / passivation and bore scoping that of course impacts the cost
of these piping systems.
Piping Material Take-Offs: use the Process Flow Diagrams (P F D s) / Piping and
Instrumentation Diagrams (P & IDs), site lay outs, plot plans, general arrangement,
equipment locations, elevation drawings, building sections and follow the existing pipe
racks if possible to develop quantity take-offs as follows: Locate and become aware of
all process / utility lines in specific process areas and ascertain their diameter, schedule
(wall thickness), material of construction and operating specification, line number (if
available) and flange rating, i.e., 150# or 300#. Quantify length lineal feet or meters
(i.e., perform quantity take off use a rotometer if possible, use a red pencil to check off
lengths as you go through this exercise) starting from the closest point to the main
header pipe rack, to end of line or piece of major equipment (be aware of changes in
vertical and horizontal direction, i.e., drops, underground sections, road crossings, risers
etc.), be attentive to the fact that drawing scales do change from one drawing to the
next. Ensure that all piping lines in the interconnecting pipe racks including main
headers, off site / utility supplies from remote storage / utility / and other process trains
and operating units such as, WFI, chilled water / heating / cooling lines / process water /
steam high & low pressure / condensate returns / city / potable water / manifolds / plant
air / hydrogen / nitrogen / instrument air / tie-ins / drain points etc., are taken off or
accounted for (use the allowances described later to ensure the take off is complete i.e.
small bore piping), count up all valves both - manual and motor controlled valves
indicated on P F D s / P & I Ds, count fittings (elbows, tees, reducers and any other
fittings) if time permits. Be aware that not all piping is shown on the P & I Ds. / Piping
drawings, piping below 1 diameter many times is not indicated; time and again this
small bore piping is field run and is not shown on any of the piping drawings. Compile
piping insulation and heat tracing (piping or electrical) quantities when performing the
above take-off activity. Use the following allowances to capture all the piping required
that is not highlighted / shown on the completed piping drawings. These allowances
should be added to the piping main quantities (or estimated cost value sheet / summary
page) mentioned above the allowances are for the following:
Allowances

Small bore piping 1 and below (usually field run) add 3 5% to the main piping
take off quantities / or cost
In-line devices (not the actual device) add $275 (L&M) for each $10,000 (L&M) of
piping value
Floor drain 4 diameter: includes 150 of u / g pipe allow $5,775 (L&M) includes
excavation and backfill.
Utility stations (U.S.)(water / steam / compressed air) allow 1 # U.S. per 7,500 SF
of process facility area allow $3,950 (L&M) for each U.S.

24

Drains / ejectors / sumps / traps together with any minor (50 100) underground
piping allow $4,725 each
Hot taps / tie ins allow $1,315 for 2 and below, $2,310 for 4 diameter 6 12
diameter use $3,465 - $4,620 for each tie-in
Safety showers 1 # per 10,000 SF of process facility area allow $5,985 (L&M)
Eye wash safety unit 1 # per 5,000 SF allow $3,100 (L&M)
Heat tracing piping / tubing allow $16 - $35 LF
Strainers / flexible couplings / jumpers add $420 (L&M) for each $10,000 (L&M)
of piping value
Wrapping to u / g 4 diameter pipe $1.45 / LF 6 diameter $1.90 / LF

Carbon Steel and Stainless Steel Piping budget pricing per LF and M: The following
table outlines 2009 budget pricing for 2 diameter thru 6 diameter piping systems, (the
accuracy of these values can be considered +/- 15%):
(A) Carbon Steel process pipe: inside / outside an operating unit, reasonably
complex with numerous changes in direction requiring small sections of pipe /
spools with fittings and subsequent welding, A 53 schedule 40, 1,000 LF installed
with 50 Number 150# flanges and 10 number fittings (elbows and tees, valves
are not included) includes 5% X-ray, hydro testing, hangars and field erection.
Installation hours are for pre-fabrication offsite and field erection. Includes 2
foam insulation with aluminum jacket. Field erection rate is $53 / hour (which is a
non-union application).
(B) Carbon Steel process pipe: inside / outside an operating unit, reasonably
complex with numerous changes in direction requiring small sections of pipe /
spools with fittings and subsequent welding, A 53 schedule 40, 1,000 LF installed
with 100 Number 150# flanges and 20 number fittings (valves not included)
includes 5% X-ray, hydro testing, hangars and field erection. Installation hours
are for pre-fabrication offsite and field erection. Includes 2 foam insulation with
aluminum jacket. Field erection rate is $53 / hour.
(C) Stainless Steel process pipe: inside / outside an operating unit, reasonably
complex with numerous changes in direction requiring small sections of pipe /
spools with fittings and subsequent welding, Stainless Steel 304, 1,000 LF
installed with 50 Number 150# flanges and 10 number fittings (valves not
included) includes 5% X-ray, hydro testing, hangars and field erection.
Installation hours are for pre-fabrication offsite and field erection. Includes 2
foam insulation with aluminum jacket. Field erection rate is $53 / hour.
(D) Stainless Steel process pipe: inside / outside an operating unit, reasonably
complex with numerous changes in direction requiring small sections of pipe /
spools with fittings and subsequent welding, Stainless Steel 316, 1,000 LF
installed with 50 Number 150# flanges and 10 number fittings (valves not
included) includes 5% X-ray, hydro testing, hangars and field erection.
Installation hours are for pre-fabrication offsite and field erection. Includes 2
foam insulation with aluminum jacket. Field erection rate is $53 / hour.
Pipe 2009 Pipe 2009
Insulation
Insulation Pipe 2009 Cost Pipe 2009
cost per LF Cost per LF 2009 Cost per 2009 cost per per M low
Cost per M
low
high
LF low
LF high
high

25

Insulation Insulation
2009 Cost 2009 Cost
per M low per M high

Diameter

Inches

A (see
above)
2

64.72

70.85

16.70

17.45

212.26

232.39

54.77

57.23

76.96

84.27

19.63

20.50

252.44

276.39

64.36

67.27

92.59

101.38

23.27

24.32

303.70

332.51

76.33

79.76

108.48

118.76

27.88

29.13

355.81

389.57

91.45

95.55

129.19

141.45

31.60

33.02

423.77

463.96

103.65

108.32

10

166.28

182.05

37.23

38.92

545.40

597.12

122.14

127.64

12

199.39

218.30

43.74

45.72

654.00

716.03

143.49

149.95

14

234.98

257.26

49.37

51.59

770.72

843.82

161.93

169.23

16

279.58

306.09

52.85

55.22

917.02

1,003.99

173.32

181.13

18

327.58

358.64

57.48

60.06

1,074.46

1,176.37

188.51

196.99

above)
2

72.39

79.25

16.70

17.45

237.42

259.94

54.77

57.23

105.99

116.05

23.27

24.32

347.66

380.64

76.33

79.76

129.37

141.64

27.88

29.13

424.33

464.59

91.45

95.55

B (see

151.78

166.18

31.60

33.02

497.84

545.06

103.65

108.32

10

197.29

216.00

37.23

38.92

647.10

708.47

122.14

127.64

12

235.57

257.92

43.74

45.72

772.67

845.96

143.49

149.95

14

285.54

312.62

49.37

51.59

936.56

1,025.39

161.93

169.23

C (see
above)
2

71.51

78.29

16.70

17.45

234.54

256.79

54.77

57.23

104.18

114.05

23.27

24.32

341.68

374.09

76.33

79.76

128.13

140.27

27.88

29.13

420.25

460.10

91.45

95.55

156.14

170.95

31.60

33.02

512.15

560.73

103.65

108.32

10

206.66

226.26

37.23

38.92

677.85

742.14

122.14

127.64

12

235.81

258.18

43.74

45.72

773.46

846.82

143.49

149.95

14

276.85

303.11

49.37

51.59

908.08

994.21

161.93

169.23

above)
2
4
6

76.12
107.74
131.40

83.34
117.96
143.87

16.70
23.27
27.88

17.45
24.32
29.13

249.67
353.40
430.99

273.35
386.91
471.87

54.77
76.33
91.45

57.23
79.76
95.55

D (see

161.09

176.38

31.60

33.02

528.38

578.50

103.65

108.32

10

213.84

234.11

37.23

38.92

701.37

767.90

122.14

127.64

12

253.58

277.63

43.74

45.72

831.73

910.61

143.49

149.95

14

287.60

314.89

49.37

51.59

943.35

1,032.83

161.93

169.23

For OSBL / yard piping (long reasonably straight run piping multiply above values by 0.74
Additional insulation: Add $1.58 for each additional inch.
Piping Unit Prices (Budget Pricing):

26

The following tables include all-inclusive material unit prices and work hours for the
fabrication and installation / erection of process related piping systems in Carbon Steel A
53 / A 106. These unit prices can be used for budget estimating piping on refinery /
chemical plant / manufacturing process plants, the accuracy of these values could be
considered +/- 15%.
Pricing Basis:

Based on 1,000 LF of OSBL / Yard piping laid on pipe sleepers.

A 53-B Std / A 106 Carbon Steel pipe schedule 40 d /d to fabrication
yard / site in standard lengths (material cost included freight and
waste).
7 # fittings / 3 # tees / 35 # welds
Excludes steam or electric heat tracing.
Excludes cranes and scaffolding.
Excludes insulation.

Diameter 2009 $
Inches
Cost per
LF low
12.95
0.5

2009 $
Cost per
LF high

2009 $
2009 $
Cost per Cost per
M low
M high

15.55

42.50

50.99

17.85

21.42

58.54

70.26

1.5

24.71

29.66

81.06

97.27

34.55

41.46

113.30

135.97

43.47

52.16

142.59

171.11

56.12

67.34

184.08

220.89

72.31

86.77

237.18

284.61

89.92

107.90

294.92

353.91

10

113.59

136.32

372.59

447.11

12

137.37

164.84

450.57

540.68

14

167.73

201.28

550.17

660.20

16

190.73

228.88

625.59

750.71

18

218.02

261.63

715.12

858.14

Additions to above values:

7% - 14% for pipe fittings / bolts / gaskets and flanges

3% - 7% for hangars.
3% - 5% for manual valves.
3% - 8% for motor controlled valves.
2% - 5% for vents, drains, caps, blinds, strainers, nipples and in-line devices.
4% 6% for sand blasting, x ray / hydro testing, hangars and field erection.
3% - 6% for piping installed 20 and above finished grade level.
8% - 12% O/H & Profit to installing contractor and fabrication shop.

The above additions range from 33% - 63%

27

Notes: multiply above (Material and labor) values by 1.15 1.65 for (Inside Battery
Limits): ISBL applications (higher value for complex applications).
Multiply by 1.07 for 300 # service.
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 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).
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 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.
Material
PVC (Sch 80)
CPVC (Sch 8)
Base Case - Carbon Steel
Material cost / LF for 2 Diameter A 53
(refer to above table for material cost)

Material
uplift (Low)
0.50
0.60

Material
uplift (High)
0.60
0.70

1.00

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

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
28

The following chart indicates budget-pricing (material only for various types of Stainless
steel tubing / piping) conforming to ASTM 269 and ASTM 270 0.065 wall thickness:
Note: for large orders discounts of 10% -35% are available on the following prices.
Type and Diameter
304 1
304L 1
316L (no polish) 1
AL-6XN (polished ID / OD) 1
317 1
317L 1
321 1
347 1
Admiralty 1
304 Sanitary 1
304 Seamless 1
304 Sanitary 1.5
304 Sanitary 2
304 Sanitary 3
304 Sanitary 4
304 Sanitary 6

Material Cost per LF

$4.00
$4.04
$5.46
$18.48
$4.44
$5.41
$3.90
$4.11
$4.13
$5.17
$3.77
$6.47
$8.46
$12.08
$23.00
$67.68

MH s per LF
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.30 0.65
0.40 - 0.80
0.30 0.75
N/A
N/A
N/A

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
Diameter

0.5
0.75
1
1.5
2
4
6
8
10
12
18
24

Couplings /
Elbows
unions /
(90 & 45
Flanges (50%) degree)
(30%)

291
305
187
119
91
82
74
64
59
57
33
25

173
110
111
70
55
49
44
38
35
35
21
16

Tees /
concentric
- eccentric
reducers
(10%)
57
52
37
25
18
16
16
13
12
10
7
5

29

Caps / blinds /
plugs &
miscellaneous /
weldolets /
sockolets /
nipples
(10%)
58
54
37
24
18
16
15
13
12
11
6
5

Number of
Fittings

Number of
Valves

579
521
372
238
182
163
149
128
118
113
67
51

372
247
81
35
26
14
12.5
6.75
6.25
5.75
4.35
3.70

Copper L Type - 1,000 LF of installed pipe with 50 fittings:

Diameter
0.50
1
2

Material
$1,717
$3,365
$10,070

Man hours
54 x $53 = Installed cost
58 x $53 = Installed cost
67 x $53 = Installed cost

Tubing Stainless Steel 304 L - 1,000 LF of installed pipe with 10 fittings:

Diameter
0.50
0.75
1

Material
$1,785
$2,000
$2,489

Man hours
28 x $53 = Installed cost
32 x $53 = Installed cost
37 x $53 = Installed cost

Tubing Stainless Steel 316 Pharmaceutical Grade Piping Cost / LF of

installed pipe (includes pipe and fittings, excludes valves):
Diameter
1
1.50
2
3

Material / Labor Cost per

LF
$64 / LF
$67 / LF
$96 / LF
$113 / LF

Material / Labor Cost per M

$210
$220
$315
$371

Automatic Sprinkler System:

Dry System
Wet System

$1.84 $2.94 / SF
$1.63 $2.73 / SF

Valves Installation Man hours:

The following man-hours apply for all material types.

Diameter

Man hours

2
3
4
6
8
10
12

2.50
3
4
5
7
10
12/16

Approximate Unit Pricing per SF Area by facility type:

Facility Type
Warehouse
plumbing
Warehouse heating

Unit
SF
SF

Material / Labor
2.94 - 3.62
5.78 7.30
30

Warehouse cooling
Office plumbing
Office heating
Office cooling
Laboratory plumbing
Laboratory heating
Laboratory cooling
Fire protection
(sprinklers)
Ditto extra
hazardous area
CO2 / Haylon

SF
SF
SF
SF
SF
SF
SF
SF

5.88 7.46
1.31 2.17
5.51 8.19
4.67 6.72
12.86 17.48
5.25 9.35
4.94 9.03
1.58 3.36

SF

4.46 8.51

SF

4.73 10.45

Demolition & removal of C.S. / S.S. Piping (include hangars, fittings and valves)
Diameter
1
2
3
4
6
8
10
12

$ Cost / 100 LF
13.97
24.10
34.97
46.62
58.12
74.34
88.73
109.04

Multiply values by 1.20 if pipe is insulated

Multiply by 1.12 if pipe is steam or heat traced
Note: credit the estimated cost if pipe is sold for scrap.
Note: multiply above (labor man-hours) values by 1.25 1.80 (higher value for complex
applications):
Valves - Approximate Cost: use multipliers / calibration factors shown earlier for
different material types, note these indicated material costs can sometimes be
discounted by as much as 35% - 65% for orders greater than 10 /12 valves.
Carbon Steel - 150 # Rating:
Diameter
2
3
4
6
8
10
12

Ball
$417
$485
$617
$1,233
$2,371
$4,615
$6,177

Butterfly
$938
$956
$1,188
$1,901
$4,099
$4,800
$6,156

Check
$592
$773
$1,172
$1,642
$2,944
$4,347
$5,515

Valves Installation Man hours:

The following man-hours apply for all material types.

31

Gate
$694
$950
$1,265
$1,847
$4,017
$4,805
$5,986

Globe
$811
$1,063
$1,620
$2,600
$4,781
$9,908
$13,271

Diameter

Man hours

2
3
4
6
8
10
12

2.50
3
4
5
7
10
12/16

Relief Valves, 150 pound rating:

Size

Material

Man hours

1x2
2x3
3x4
4x6

$1,746
$3,124
$3,430
$5,098

2.5
3.5
4.5
6.0

For 300 pound rating multiply above material cost by 14%, man hours remain the same
as above:
OOM $ Labor Cost to erect 1,000 FL of pipe with 150 # fittings n/e 15 above grade
or FFL:
$ LF Cost (excludes hangars, testing, valve installation and construction
equipment):
Diameter in inches
A 53 CS Sch 40
Ditto Sch 80
Plastic lined Sch 40
Stainless steel 304
Ditto 316
Glass
C.S. Kynar Lined

1
10.44
15.14
19.54
12.15
12.41
13.60
21.72

2
14.42
21.27
26.36
16.35
16.80
20.37
27.71

4
23.74
32.34
41.05
25.02
25.82
30.98
43.62

6
34.96
51.41
61.97
37.64
38.13
N/A
63.81

8
54.26
72.43
82.71
60.34
62.15
N/A
85.37

Multiply by 1.15 for 15 25 above grade or FFL.

Multiply by 1.20 for 25- 40 above grade or FFL.
Multiply by 1.45 2.10 for total installed value, excluding material cost and valve
installation.
Divide above values by $48 / hour to determine installation hours.
Man-hour units for CS A-53 straight run pipe (OSBL): (includes cutting, handling, flanges
/ gaskets and erection (excludes hangars, testing, scaffolding and cranes) for pipe n/e
15above grade / FFL.
Diameter in
inches
Pipe / LF
(handling and
cutting)
Production
weld

10

12

14

16

18

0.11

0.18

0.27

0.37

0.49

0.55

0.63

0.72

0.83

0.65

1.95

2.50

3.30

3.75

4.35

4.85

5.50

6.0

32

Joints /
flanges
Elbows
Reducer
Tees
Valves

0.45
0.85
0.81
1.3
1.25

0.93
1.8
1.73
2.55
2.25

1.35
2.75
2.55
3.85
2.85

1.75
3.65
3.35
5.25
3.35

2.13
3.9
3.73
5.85
3.75

2.25
4.15
4.03
6.25
4.5

2.45
4.45
4.25
6.75
5.5

3.23
6.2
6.15
9.25
6.5

3.33
6.45
6.5
9.75
7.35

Multiply piping handling and cutting values by 1.35 2.35 for ISBL piping
Multiply by 1.15 for 15 25 above grade or FFL.
Multiply by 1.20 for 25- 40 above grade or FFL.
Multiply by 1.15 for SS pipe handling and cutting.
Multiply piping handling and cutting values by 1.45 2.55 SS for ISBL piping
Multiply by 1.75 - 2.25 for SS joints / flanges, elbows, reducers, tees, and valves.
Multiply by 1.09 for 300 # service
Piping Black Iron with screwed fittings includes fabrication and erection labor, material
and hangars.
1 (25 mm)
2 ditto (50 mm)

$19.37 / LF
$31.24 / LF

$63.53 / M
$102.47 / M

Ditto with welded fittings

1 (25 mm)
2 ditto (50 mm)
3 ditto (75 mm)
4 ditto (100 mm)

$18.43 / LF
$26.57 / LF
$36.49 / LF
$50.56 / LF

$60.45 / M
$87.15 / M
$119.69 / M
$165.84 / M

Glass Pipe includes fabrication and erection labor, material and hangars.
1 (25 mm)
2 ditto (50 mm)
3 ditto (75 mm)
4 ditto (100 mm)

$26.72 / LF
$30.24 / LF
$39.48 / LF
$55.55 / LF

$87.64 / M
$99.19 / M
$129.49 / M
$182.20 / M

CPVC Natural Gas Pipe (excludes trench work).

1 (25 mm)
2 ditto (50 mm)
4 ditto (100 mm)

$4.46 / LF
$6.61 / LF
$23.31 / LF

$14.63 / M
$21.68 / M
$76.46 / M

Add 20 40% for fittings

CPVC Diesel / Gas Pipe (excludes trench work).
1 (25 mm)
2 ditto (50 mm)
4 ditto (100 mm)

$6.04 / LF
$8.24 / LF
$11.24 / LF

$19.81 / M
$27.03 / M
$36.87 / M

Add 20 40% for fittings

33

Approximate Unit Pricing per SF Area by facility type:

Facility Type
Warehouse
plumbing
Warehouse heating
Warehouse cooling
Office plumbing
Office heating
Office cooling
Laboratory plumbing
Laboratory heating
Laboratory cooling
Fire protection
(sprinklers)
Ditto extra
hazardous area
CO2 / Haylon

Unit
SF

Material / Labor
2.94 - 3.62

SF
SF
SF
SF
SF
SF
SF
SF
SF

5.78 7.30
5.88 7.46
1.31 2.17
5.51 8.19
4.67 6.72
12.86 17.48
5.25 9.35
4.94 9.03
1.58 3.36

SF

4.46 8.51

SF

4.73 10.45

Budget Piping Prices

CS A-106 and A-53
OSBL
2" dia
4" dia
6" dia
8" dia
10" dia
12" dia
CS A-106 and A-53
ISBL
2" dia
4" dia
6" dia
8" dia
10" dia
12" dia
Stainless Steel 304
ISBL
2" dia
4" dia
6" dia
8" dia
10" dia
12" dia

$ L & M Cost per

LF
12.43
30.53
55.39
56.03
77.11
99.24
$ L & M Cost per
LF
16.79
39.19
69.18
75.02
95.12
121.00
$ L & M Cost per
LF
29.04
66.25
111.17
162.93
256.89
304.35

Includes fittings and erection

Material = 60% Labor = 40%
Excludes valves and valve installation
Excludes X-Ray / hydro testing (5% 10%)
34

$ L & M Cost per

M
40.77
100.14
181.68
183.78
252.92
325.51
$ L & M Cost per
M
55.07
128.54
226.91
246.07
311.99
396.88
$ L & M Cost per
M
95.25
217.30
364.64
534.41
842.60
998.27

Excludes O/H & P (10% 20%)

Labor & Materials Stainless Steel tubing (304 L) 2009 Basis

Diameter
0.25
0.50
0.75
1.00

$ Cost per LF
1.75
2.50
3.45
7.55

$ Cost per M
5.75
8.20
11.30
24.75

For total installed cost with fittings, valves, hangars, etc, multiply by 2.0 to 4.0

Pipeline OOM Costs

Diameter
inches
8
12
20
24
36

$ Cost per
Mile / Low
Range
350,000
400,000
550,000
650,000
900,000

$ Cost per
Mile / High
Range
450,000
500,000
650,000
700,000
1,200,000

$ M Cost
Low
Range
218
249
342
404
559

$ M Cost
High
Range
280
311
404
435
746

Typical split:
Mater pipe 30% - 35%
Labor/ Equip 45% - 50%
Other Eng/CM 2% - 4%
OHP 7% - 10%
Welding OOM Data:
Welding is the activity and work effort that joins metals together. Numerous situations
impact the cost of welding including the following main items:

Labor cost - union Vs non union applications.

Material costs - welding materials and gases etc.
Type of welding to be performed (Manual, Automated, Orbital, Laser,
Horizontal, Vertical and Overhead SMAW / OFW / SAW / PAW / GMAW /
GTAW Process or other applications)
Various specifications, applicable codes and welder certification issues
Electrical Energy costs
Types of joints and welds to be accomplished i.e. fillet, tee, butt, V groove,
bevel, J and U groove etc.
Electrode various types of electrodes (materials and coatings): Warehousing
and documentation related to electrodes.
Construction Equipment costs scaffold, cherry pickers and welding machines.
Robotic Equipment / Orbital Tube welder related costs.
Any required special treatments, grinding, electro polishing and passivation
activities.

35

Testing of completed welds i.e. mechanical tests bore scope; destructive tests,
bend tests, ultrasonic, x-ray, dye-penetration, test coupons etc. Together with
appropriate documentation that supports the testing effort.

In welding there are perhaps more than seventy distinct categories or methods of
welding or brazing and soldering. One of the most widely used methods is Shielded
metal arc welding (SMAW) also known as stick or manual metal arc welding, this type of
welding is by far the most widely used welding method used on construction and on
repair type work, the preparation work, cutting, grinding required to form the welding
joints, make the process time consuming, welding by its very nature is very time
consuming and labor intensive effort. The (SMAW) welding method uses a consumable
welding rod electrode (stick), electrical current AC or DC is passed though the welding
rod / stick, great heat is generate and the welding rod melts and forms a weld between
the item being welded and the welding rod, the welding rod is used up in the process.
Other widely used welding applications include TIG welding i.e. tungsten inert gas this
application utilizes individual welding rods, it has a wide application and is used to join
carbon steel, stainless steel, alloys and other metals together (pipe and plates), the
welder strikes an arc on the pipe, plate or fabricated element being welded as described
above. Another widely used welding process is MIG welding i.e. metal inert gas; MIG
welding can be considered more of a factory method of welding. MIG welding make
use of a reel(s) of wire feed of welding rod metal that allows long runs of welding / metal
deposit to be competed, its ideal application is welding steel plates and sections
together, i.e. a shipyard is a good example were one can see this welding method.
Other welding processes include Oxyfuel Gas Welding (OFW), Semi Automatic
Submerged Arc Welding (SAW), Manual and semi automatic Plasma welding (PAW)
and Semi Automatic Gas Tungsten Arc Welding 9GTAW), brazing and soldering uses
liquefied hot metal(s) to connect metals together, brazing creates a stronger linkage than
is the case with soldering, soldering is generally utilized to link / tie small diameter
cables / wire, electrical components and minor metal apparatus / fabrications.
Autogenous welding (completed welds are required to be completely smooth on the
internal and external surface of the tube / piping no joints should be present that could
capture particles flowing through the tube / pipe) is used primarily on Pharmaceutical /
Microchip facilities in piping / tubing applications such as Clean in place (CIP), Steam in
Place (SIP), Water for Injection (WFI) and other critical finished product lines, it is used
to mitigate contamination (bacterial build up) Stainless Steel 316 L is used extensively,
the welding approach utilized is were all the completed welds and the internal surface of
the pipe / tube is required to be joint free / entrapment-free internally to prevent any
bacterial contamination to the finished product. Full penetration (100%) welds should be
aimed for. It is important to understand that any gaps, fissures, fractures including any
imperfect weld joints can entrap the product / fluid flowing through the pipe / tubing, if
any gaps, fissures, fractures are present they can develop into a haven for future
problems and possible product contamination. Automated welding is many times utilized
to lower welding production costs i.e. the main element being the cost of employing a
workforce (labor costs), however the cost of purchasing the welding equipment together
with its subsequent maintenance costs can be substantial, never the less automated
welding is usually the best avenue to proceed on, on major welding projects, the best
example of this is in ship building, just about all the welding is done using an automated
process. Orbital welding is used in Pharmaceutical, Aerospace, Microchip and other HiTech industries. Orbital welding uses the Gas Tungsten Arc Welding (GTAW)
methodology; it is used primarily on small-bore piping and tubing 2 diameter and below.
Stainless Steel 316 L and some other alloys that work well in extreme / harsh operating

36

conditions are usually the specified materials that are utilized. Other industry sectors that
are embarking on orbital welding in their construction process include:

Food Production.
Dairy (Milk, Butter and Cheese production).
Brewery / Beverage.
Nuclear / Conventional (Power Facilities).
The Petro Chemical and the Offshore Oil and Gas sector.

These industry sectors look at this approach as a practical and cost effective opportunity
for welding small bore stainless steel piping and tubing. Orbital welding makes available
a process to make sure construction productivity is optimized while also ensuring that
the quality of the finished weld is of a high quality.
Fillet welding using (SMAW) welding process for connecting various carbon steel plates,
vessels, sections, channels and angles together: Labor cost includes transport of welded
metals to the welding area, preparation work, measuring, initial tack welding, final
welding and any necessary grinding.
Thickness in
inches

Unit of
Measure

1/8
3/16"
1/4"
3/8"
1/2"
5/8"
3/4"
7/8
1

LF
LF
LF
LF
LF
LF
LF
LF
LF

$ Cost
Range
per LF
16 22
29 - 37
39 51
54 - 71
83 97
100 118
110 137
120 152
131 179

Man hours
per LF *
(Low)
0.18
0.34
0.45
0.62
0.97
1.16
1.28
1.39
1.53

Man hours
per LF *
(High)
0.26
0.43
0.60
0.83
1.12
1.37
1.59
1.77
2.08

$ Cost
Range per
M
51 72
97 121
127 169
175 234
272 317
328 385
361 447
393 500
431 607

Man hours
per M *
(Low)
0.59
1.12
1.48
2.03
3.18
3.80
4.20
4.56
5.02

Man hours
per M *
(High)
0.85
1.41
1.97
2.72
3.67
4.49
5.22
5.81
6.82

Split of (L&M) Labor = 55% Material = 45% (Construction Equipment of 5%

10% is included in Labor value)
Using $45 / per hour for a welder
For applications with a good amount of repeat work, were good productivity can
be achieved multiply above values by 0.75
For applications with small / difficult / intricate welding work multiply above values
by 1.25
Add 8% - 12% to above for vertical / horizontal applications
Add 18% - 24% to above for overhead applications

Order of Magnitude Prices:

Cost per pound of deposited welding material = $13.50 $20.50 (Labor and
material) to use this method determine cubic content of weld.
Weight of metal deposited in 0.25 fillet weld = 0.15 pounds per LF
Weight of metal deposited in 0.25 fillet weld = 0.50 pounds per Meter
Weight of metal deposited in 0.50 fillet weld = 0.30 pounds per LF
Weight of metal deposited in 0.50 fillet weld = 1.00 pounds per Meter
Weight of metal deposited in 0.75 fillet weld = 0.90 pounds per LF
Weight of metal deposited in 0.75 fillet weld = 3.00 pounds per Meter

37

For tee, butt, V groove, bevel, J and U groove welds compare size (area) of weld
and pro-rate above values to determine cost or cubic content of weld.

Automatic Welding Units

Pipe Diameter
0.50
1
2
3
4

Man-Hours per Weld

1.00
2.10
3.15
6.00
8.00

OOM Man-hour Units

For 1 4 diameter pipe 2.00 3.50 man-hours per LF of pipe or 6.50 man-hour
11.50 man-hours per M

Insulation
The quantity take-offs for piping assists greatly in determining insulation requirements,
the following are unit prices for both piping and major equipment. (Casil and mineral
wool are more widely used in non flammable applications, foam / cellar glass type
insulation is used in flammable applications)

Major Equipment Insulation:

Diameter /
Specification
1 thick with
Alumin, cover
1 ditto SS cover

Casil

Man hours / LF

4.35

0.27

4.46

0.33

2 ditto Alumin,
cover
2 ditto SS cover

4.41

0.33

4.77

0.38

3 ditto Alumin,
cover
3 ditto SS, cover

7.80

0.55

8.76

0.59

Diameter /
Specification
1 thick with
Alumin, cover
1 ditto SS cover
2 ditto Alumin,
cover
2 ditto SS cover

Mineral Wool

Man hours / LF

4.06

0.23

4.29

0.31

4.35

0.32

4.65

0.35

38

SF / $ Material
Cost M.H. s
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
SF / $ Material
Cost M.H. s
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed

3 ditto Alumin,
cover
3 ditto SS, cover

8.64

0.54

8.79

0.57

Diameter /
Specification
1 thick with
Alumin, cover
1 ditto SS cover

Foam

Man hours / LF

2.61

0.26

2.97

0.29

2 ditto Alumin,
cover
2 ditto SS cover

3.37

0.30

3.58

0.32

3 ditto Alumin,
cover
3 ditto SS, cover

7.21

0.50

7.39

0.55

cost
x $48 = installed
cost
x $48 = installed
cost

Foam:

Piping Insulation:
Casil LF/ $ Material Cost
Diameter /
Thickness
2 dia 1 thick with
Alumin, cover
2 dia 1 ditto SS
cover
3 dia 1 ditto
Alumin, cover
3 dia 1 ditto SS
cover
4 dia 1 ditto
Alumin, cover
4 dia 1 ditto SS
cover
6 dia 1 ditto SS
cover
6 dia 1 ditto
Alumin, cover
8 dia 1 ditto SS
cover
8 dia 1 ditto
Alumin, cover

M. H. s

Material Cost / LF
3.66

M.H. / LF x $48 /
Hour
18 ditto

4.04

.22 ditto

4.68

.21 ditto

5.09

.23 ditto

5.70

.20 ditto

6.24

.23 ditto

8.38

.25 ditto

7.74

.21 ditto

10.82

.26 ditto

10.31

.22 ditto

39

SF / $ Material
Cost M.H. s
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost
x $48 = installed
cost

8 dia 2 ditto SS
cover
10 dia 1 ditto
Alumin, cover
10 dia 1 ditto SS
cover

16.26

.36 ditto

11.87

.27 ditto

12.63

.33 ditto

Mineral Wool LF/ $ Material Cost M. H. s

Diameter /
Thickness
2 dia 1 thick with
Alumin, cover
2 dia 1 ditto SS
cover
3 dia 1 ditto
Alumin, cover
3 dia 1 ditto SS
cover
4 dia 1 ditto
Alumin, cover
4 dia 1 ditto SS
cover
6 dia 1 ditto SS
cover
6 dia 1 ditto
Alumin, cover
8 dia 1 ditto SS
cover
8 dia 1 ditto
Alumin, cover
8 dia 2 ditto SS
cover
10 dia 1 ditto
Alumin, cover
10 dia 1 ditto SS
cover
10 dia 2 ditto
Alumin, cover
12 dia 1 ditto
Alumin, cover
12 dia 1 ditto SS
cover

Material Cost / LF

Foam LF/ $ Material Cost

3.68

M.H. / LF x $48 /
Hour
.19 ditto

4.12

.22 ditto

4.76

.21 ditto

5.26

.23 ditto

5.73

.20 ditto

6.27

.24 ditto

8.49

.25 ditto

7.78

.21 ditto

10.49

.26 ditto

9.64

.22 ditto

14.54

.35 ditto

12.00

.28 ditto

13.07

.32 ditto

3.68

.36 ditto

4.08

.33 ditto

4.76

.40 ditto

M. H. s

40

Diameter /
Thickness
2 dia 1 thick with
Alumin, cover
2 dia 1 ditto SS
cover
3 dia 1 ditto
Alumin, cover
3 dia 1 ditto SS
cover
4 dia 1 ditto
Alumin, cover
4 dia 1 ditto SS
cover
6 dia 1 ditto SS
cover
6 dia 1 ditto
Alumin, cover
8 dia 1 ditto SS
cover
8 dia 1 ditto
Alumin, cover
8 dia 2 ditto SS
cover
10 dia 1 ditto
Alumin, cover
10 dia 1 ditto SS
cover

Material Cost / LF

M.H. / LF x $48 /
Hour
.23 ditto

3.54
3.40

19 ditto

4.26

.20 ditto

4.70

.25 ditto

5.71

.26 ditto

5.03

.21 ditto

7.75

.28 ditto

8.59

.24 ditto

9.31

.30 ditto

10.75

22 ditto

14.35

.36 ditto

11.67

.27 ditto

12.90

.32 ditto

Electrical Work Estimating Data:

Detailed and electrical cost estimates cannot usually be prepared until after a
reasonable amount of detailed design / engineering has been completed, usually 30 % 60%. This modus operandi is time and resource consuming, especially if the proposed
project is a funding study. The following unit prices should assist the cost engineer /
estimator and / or project manager in preparing front end / semi detailed cost estimates.
These unit prices are accurate to +/- 15%. A reasonably accurate +/- method of
estimating labor and material electrical costs is as follows.
Motor
H.P.
Rating

Cost per
LF

100

150

5
10
15
25
50
75
100

$40.19
$43.96
$47.86
$58.49
$77.91
$91.43
$102.88

$4,019
$4,396
$4,786
$5,849
$7,791
$9,143
$10,288

$6,029
$6,595
$7,179
$8,773
$11,688
$13,714
$15,431
41

250

$10,049
$10,991
$11,965
$14,621
$19,478
$22,859
$25,720

Determine H.P. of each motor and use the above value for 100, 150, or 250, (note the
typical length of cable / conduit from a motor to its panel board station / starter is 150)
this should provide a budget estimate with an accuracy of +/- 10%. The above data is
based on the following specification. Cable tray (75%) / Conduit (25%) cable,
terminations / hook up connections / splicing / fittings, start stop / emergency shut down
disconnect switch (on-off light) and any miscellaneous minor items etc. assumes an M
(45%) & L (55%) split. For explosion proof applications uplift the above values by 20% 35%. Another approach is to count the number of drives and multiply by $16,900, this
value includes MCC s, new starters, cable, cable tray, lightning protection, lighting and
all hook-ups and terminations.
The all in unit material prices and man hour units embody all electrical and bulk
materials and electrical labor scope activities essential for an all-inclusive and working
system, i.e. unloading, temporary warehousing, material distribution, the actual
materials, electrical installation units including if required start / stop push buttons,
breakers, a percentage of the sub station / switch gear / motor control center, conduit /
and or cable tray, pulling and installation of power and control cable, terminators,
miscellaneous brackets / supports, sealing of floor and wall penetrations, system testing
and commissioning. The estimating units are an average of Class 1, 11 and 111
Division 1 & 2 service:
Work Item
Warehouse service & distrib, 600-ampWarehouse lighting & powerWarehouse alarm & emerg lightingOffice service & distrib, 1,000-amp
Office lighting & power
Office alarm & emerg lighting
Laboratory service & distrib, 800-amp
Laboratory lighting & power
Laboratory alarm & emerg lighting
5kV copper 3C wi PVC cover # 1
Ditto 4/0
15 kV ditto # 1
Ditto 4/0Mineral Insul cable 600 v #8
Ditto # 2
Ditto 4/0230 v 5 HP
230 v 10 HP
230 v 25 HP
230 v 50 HP
230 v 100 HP
230 v 250 HP
460 v 5 HP
460 v 10 HP
460 v 25 HP

Unit
SF
SF
SF
SF
SF
SF
SF
SF
SF
LF
LF
LF
LF
CLF
CLF
CLF
Ea
Ea
Ea
Ea
Ea
Ea
Ea
Ea
Ea

42

Material
1.13
7.09
1.27
1.19
9.22
0.41
1.53
9.26
0.83
9.29
16.75
13.79
23.78
368
756
1,523
788
1,197
1,843
3,612
8,486
21,893
887
898
1,202

M.H.s
incl
incl
incl
incl
incl
incl
incl
incl
incl
.05
.06
.09
4.60
6.50
10
18
24/28
34
48
72
84
18
20/24
28/32

460 v 50 HP460 v 100 HP460 v 250 HP0.5 dia rigid galv, steel conduit1 dia ditto2 dia ditto
4 dia ditto
12 wide galv, cable tray, 6 rung space:
24 ditto
200 Amp panel board 24 circuits
4 x 2 Fluorescent steel, flush 3 lamp
400 watt mercury vapor high bay 120 v
Switch gear 800 amps 120/208 v
25 Aluminum floodlight pole excl, light
Main control room panel
Local panel board
Wire connections 600 V P & C
Ditto 3Kv / 5 Kv:
Ditto 15 Kv:
Rigid metal conduit 1
Ditto 1.25 2
Ditto 2.5 4
Wire / cable 1/C & M/C, # 6 & greater
Ditto 1/C, # 8 & smaller
Power Plant per KW (range)
Ditto 10 KW

Ea
Ea
Ea
LF
LF
LF
LF
LF
LF
Ea
Ea
Ea
Ea
Ea
LF
LF
Ea
Ea
Ea
LF
LF
LF
LF
LF

6
2,105
4,158
52
9,781
96
1.63
.15
3.94
.22
6.67
.27
19.11
.40
11.18
.14
15.12
.22
563.85
12/16
129.57
1.25
456.75
3.50
11,670.75
120
4/6
1,391.25
N/A
28
N/A
24
N/A
0.25
N/A
3.50
N/A
5.00
N/A
0.20
N/A
0.25
N/A
0.60
N/A
0.035
N/A
0.015
$0.47 million - $0.735 million
$4.46 million - $7.19 million

Instrumentation Estimating Data:

In many cases a significant engineering effort needs to be completed on order to arrive

at a precise cost estimate for the instrumentation / process controls scope of work, the
items / data to be reviewed include:
1. Instrumentation list (preliminary or final).
2. Inspection and review of the P & IDs. / related installation drawings.
3. Detailed quantity take-off s. (shopping list of instrument devices & cable / control
wire, etc.).
4. Preliminary / Outline / Detailed specifications / Design Philosophy.
5. Up to date material prices / labor rates / estimating catalogs, etc.
6. Vendor quotes / pricing.
This activity is to say the least is a very time / resource intensive effort and many times
the cost and effort can not be warranted if the proposed project is a study or has a
marginal ROI, many times the instrumentation scope of work can be estimated as a
percentage of the major equipment cost, this is a widely used method. On the other
hand, this approach is imprecise at best; available historical data from many sources in
43

the process related industry confirms that a value of between 15% to 60% of the major
equipment F.O.B. purchase price, will provide sufficient dollars to install a complete
instrumentation system, the split of this dollar value is typically 50 / 50 labor and
materials. Typically at the early stages of a project there is no more than a preliminary
major equipment list and some basic plot plans to be had, when this is the case a useful
estimating approach is to count the major equipment items and multiply this number of
pieces of major equipment by $15,000 to $20,000 the resulting value will provide an
adequate starting dollar budget for the instrumentation scope of work. Another
conceptual estimating method is to count the bubbles on the P. & I. D.s and to multiply
the number of bubbles by $2,460 (L&M 50/50, L = $1,230 M = $1,230). A similar
method is to use $1,500 / $2,500 per I / O for a new control system and $800 / $950 per
I / O for extending an existing control system.
The following is a listing of budget instrumentation costs related to categories of major
equipment, the values include level, flow, pressure, temperature, alarms and devices,
the costs include the purchase, installation, together with 50 of conduit and control
cable, these values are direct costs, add 30- 60% to capture in-direct costs, plus
programming is excluded, these values do no not include control room systems i.e. TDC
3000 type costs, these values are budgetary and can be considered +/- 20% accurate.

Ref #

Major
Equipment
Item

$ Material
Cost

$ Labor
Cost

Total

Man-hours

Compressor
(each stage)
Condenser
Evaporator
Heat
exchanger
Heater
Incinerator
Pressure leaf
filter
Pump
Reactor
Reboiler
Tank Pressure
Tank storage
Tower
Vessel
Pressure

1,939

1,219

3,158

23

6,372
5,808
6,129

4,322
3,879
3,879

10,694
9,687
10,008

81
73
73

13,565
8,379
3,081

8,312
4,311
1,773

21,877
12,690
4,854

156
81
33

1,640
20,570
12,812
2,382
1,696
24,105
13,876

1,153
12,745
6,207
1,441
1,219
18,287
8,689

2,793
33,315
19,019
3,823
2,915
42,392
22,565

22
240
117
27
23
344
163

2
3
4
5
6
7
8
9
10
11
12
13
14

For detail design / EPC services (add 10% - 15%)

For Construction management (add 4% - 7%)
For field in directs (add 30% - 60%)
For contractors markup (add 7% - 10%)

The following is a listing of some key instrumentation items.

44

Instrument Device

Pressure relief valve 2

Pressure relief valve 4
Electrical Indicating Controller
Orifice plate 2 dia 300 #
Ditto 4 dia 300 #
Ditto 6 dia 300 #
Differential pressure switch
Orifice union
Combustion control alarm switch
Position Indicating Meter
Gas Regulator
Flow switch
Sight Glass
Flow Meter
Electric Flow Transmitter
Indicating Controller
Annunciator Point
Alarm Switch
Thermowell
Solenoid Valve
Push Button Station
Level Indicator Electronic
Thermocouple temperature control
2 Control Valve150/300 lb CS Actuator
4 ditto
6 ditto
2 ditto SS 304/316
4 ditto
6 ditto
Thermocouple temperature control
12 CS liquid level gauge
1 x 2 300 lb safety relief valves
2 x 3 ditto
2 dia electronic flow transmitter
4 ditto
4 electronic liquid level transmitter
Electronic pressure transmitter 2,000psi
Electronic temp transmitter
Local temperature gauge
Local pressure gauge
Ditto with diaphragm, seal
Level transducer with flange
O2 Analyzer
Chromatograph
E / P Converter
PIC Electronic
Conductivity Probe
Turbine meter 4 dia
Analyzer Indicator
45

Material $ Cost

M. H. s

excluded
excluded
excluded
149
231
270
excluded
excluded
excluded
excluded
excluded
excluded
excluded
excluded
excluded
excluded
184
446
excluded
excluded
excluded
998
excluded
4,279
6,746
9,618
6,694
11,965
19,325
excluded
452
1,859
3,035
3,927
4,573
2,420
1,397
924
205
193
607
914
31,836
55,860
1,607
15,908
357
4,006
111

2.4
3.4
17.5
2.5
3.5
6
2.5
2.1
2.1
6.6
2.5
2.1
2.5
4.4
10.7
16.5
0.8
0.8
1.7
2.1
2.5
excluded
2.4
3.00
4.50
6.00
3.00
4.50
6.00
2.1
4.50
2.50
3.00
3.50
4.50
6.00
6.00
6.00
2.00
2.00
6.50
6.50
220
240
4.50
116
3.00
6.00
2.50

Flow ratio / indicator controller

Combustion control flame arrester
Pressure indicator
Electronic temperature recorder
Differential Pressure Gauge
Differential Pressure Transmitter

2,373
excluded
1,554
excluded
$174
$1,820

8.50
10.0
2.5
16.0
1.50
2.50

Robotic Systems: 2009 Pricing Basis:

The following are budget pricing and installation costs associate with a number of
industrial robots.
Type / application

Cost d/d to site

Painting / finishing
robot multi axis 15
pound load electric
servo reach 70
80 reach unit weight
1,050 1,250
pounds (shipped to
site in 4-7 pieces)
Welding robot multi
axis 35 pound load
electric servo reach
60 70 reach unit
weight 800 950
pounds (shipped to
site in 6-9 pieces)
Welding robot multi
axis 60 pound load
electric servo
reach 70 90
reach unit weight
800 950 pounds
(shipped to site in 69 pieces)
Material handling /
packaging / clean
room application
multi axis 15 pound
load electric servo
reach 30 50 unit
weight 120 pounds
(shipped to site in 58 pieces)
Material handling /
packaging / clean
room application

$45,150 - $56,175

Installation man
hours (does not
include integration
/ programming)
6 - 12

$58,275 - $76,650

6 - 10

10% 30% of unit

cost

$63,525 - $85,680

6 - 12

10% 30% of unit

cost

$32,025 - $41,685

4-8

10% 30% of unit

cost

$35,385 - $43,575

4 - 10

10% 30% of unit

cost

46

Integration costs

10% 30% of unit

cost

multi axis 25 pound

load electric servo
reach 40 60 unit
weight 220 pounds
(shipped to site in 58 pieces)
Material handling /
clean room multi
axis 15 pound load
electric servo
reach 30 50 unit
weight 330 450
pounds (shipped to
site in 5-8 pieces)
Material handling
palletizing / depalletizing multi axis
100 pound load
electric servo reach
50 70 unit weight
1,500 - 1,750
pounds (shipped to
site in 5-8 pieces)
Material handling /
palletizing / depalletizing /
packaging multi axis
350 pound load
electric servo reach
70 120 unit
weight 3,350 - 4,200
pounds (shipped to
site in 5-8 pieces)
Material handling /
palletizing / depalletizing /
packaging multi axis
550 pound load
electric servo reach
90 140 unit
weight 3,800 - 4,800
pounds (shipped to
site in 6-10 pieces)

$73,185 - $88,830

8 - 12

10% 30% of unit

cost

$70,350 - $89,880

6-8

10% 30% of unit

cost

$78,000 - $90,800

12 - 16

10% 30% of unit

cost

$89,250 - $111,300

16 - 20

10% 30% of unit

cost

Note there are currently more than 1,000,000 robotic welding / material handling
machines in operation worldwide in 2003 according to the UN/ECE and this
number is expected to grow dramatically in the next decade or two. Reconditioned machines/ units can cost anywhere from 20 50% of the above
values

47

The following are budget pricing and installation costs associate with a number of
industrial wrappers / palletizes, case erectors roller conveyors and various material
handling equipment. 2009 Pricing Basis:
Type of Equipment
Stretch Wrappers
(Rotating)

Palletizes / Wrapper

Case Erector

Case Sealer

Specification

Cost in $s

Turntable speed 1
10 RPM, Maximum
weight 4,000
pounds, turntable
diameter 60,
maximum load size
48 length x 48
wide x 72 high,
turntable electric
motor 0.75 HP
TEFC motor, plastic
film 50 150 gauge
Footprint of
equipment 15 x 20
2,000 boxes per
hour, maximum
pallet size 48 x 48
Palletized load
height 108
Electrical
requirements 460
Volts, 60 Amps
(Lantech)
10 20 cases per
min, maximum case
size 20 L x 12 W
Electrical
requirements 115
Volts, 20 Amps
10 20 cases per
min, maximum case
size 24 L x 18 W x
18 H
Electrical
requirements 230
Volts, 15 Amps

10,537

Installation Man
hours
10

191,468

22

37,170

14,648

Roller Conveyors in 10 section: (2009 Pricing basis)

Specification
Speed
Weight capacity

Gravity Feed

Electrically driven
standard duty
25 FPM
4,500 #

N/A
3,500 #

48

Electrically driven
standard duty
25 FPM
7,000 #

Width
Frame
Roller centers
Electric drive

48
4 x 0.25 channel,
with 3 cross braces
3.50
N/A

Cost per 10 section

48
4 x 0.25 channel,
with 3 cross braces
3.50
0.50 HP TEFC AC
motor
$971

$289

48
4 x 0.25 channel,
with 3 cross braces
3.50
0.75 HP TEFC AC
motor
$1,360

Warehouse Miscellaneous Equipment (2009 cost basis)

Type of Equipment

Cost

Remarks

Fork Lift (Hyster / Daewoo /

Clark / Pettibone /
Mitsubishi) Electric
Ditto with moving cab (25
high Crown)
Personnel Cart (Golf Cart)
(Taylor Dunn / E-Z-Go)
Tennant Floor Sweeper
Battery charger (Exide /
Ferro Five) Volts 208 / 240 /
480 - 37 / 32 / 16 Amps

$32,424

N/A

$48,153

N/A

$7,219

N/A

$20,496
$6,153

N/A
N/A

Warehouse / Material Handling Equipment:

The following are SF / M2 costs related to storage racking, the pricing basis is
2009:
Description

10' high metal racking

10' - 20' ditto
20' - 40' ditto

$ SF / Cost of
Racking
footprint
$14.18
$29.24
$46.20

$ M2 / Cost of
Racking
footprint
$152.58
$314.62
$497.11

* Allowance for bar coding system: $100,000 - $250,000 for a 30,000 SF / 2,800
M2 Warehouse facilities.
Painting
Primer & 2 coats of paint to the following:
Description
Pipes up to 4 dia / 100 LF
Ditto 4 to 8
Ditto 8 to 10
Ditto 10 to 12

Material
7.14
10.08
25.73
40.64
49

M. H. s
2.50
4.50
6.50
8.00

Sprayed acrylic paint / SF

1.47 3.52

incl

Typically liquids and solids type chemical plants / facilities fall into one of the following
categories / major equipment (M.E.) multipliers. These multipliers apply to North
American plants.
TYPE OF PLANT
Chemical - Liquids
Chemical - Liquids / Solids
Chemical - Solids
Pharmaceutical
Power
Steel

LOW RANGE
M.E. Multiplier
3.75
3.25
2.50
1.75
2.00
1.50

MEDIAN M.E.
Multiplier
5.00
4.50
3.75
2.50
3.30
2.00

HIGH RANGE
M.E. Multiplier
6.25
5.75
5.25
4.50
4.00
2.50

Low Range: In general 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, most probably located on U.S. gulf coast.
Median Range: More often than not 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 a
combination of union construction workforce and a normal construction schedule.
High Range: Usually 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, open shop or a combination of union construction workforce and a fast track
construction schedule, is a hazardous process, the process is based on new technology,
the project will utilizes modular construction concepts, the work involves upgrading /
modernizing various systems.
Other factors

Royalties / licensor fees 0.25% - 3.5% of M.E. (could be more in many cases,
use quoted value were possible)
Vendor assistance 0.5% 1.5% of M.E.
Spare Parts 2.5% to 5% of major equipment cost
Spare Parts 5% to 7.5% of major equipment on complex process facilities
Operator Training 0 to 2.5% of major equipment
Operator training 2.5% to 5% of major equipment on complex process facilities
Freight 3% to 5% of major equipment cost.
Overtime / shift work 0 10% of direct labor, plus the same value specific to the
indirect values less the design effort.

The following is a discussion on the merits / advantages and some disadvantages of

utilizing modular construction components. Some of the initial observations / Benefits
that modular construction can provide are:

50

Condenses the overall construction effort

Lessens the number of field labor hours
Diminishes interference of existing facility / plant production operations
Cuts down on the amount of check out / punch list time
Curtails potential start-up problems
Optimizes facility commercial operations
Modular construction methods have for decades been utilized in the offshore oil industry
and to some extent in the Chemical / Process industry. The first question that needs to
be asked when considering the path forward for the detailed design of a future
manufacturing / process project is what category of engineering / construction should be
applied.
Conventional methods (stick built)
Or modular / pre-fabricated systems
Or a combination of both approaches
Like in all engineering / construction decisions there are numerous issues to take into
account when selecting the optimum approach. These topics / considerations include:
Clients requirements / standardization for future applications
High quality appearance
Fabricated / Constructed off site optimizing the need for site based labor
The project will need to be broken out into various elements what will be stick built and
what will be modularized
Can modules be ordered / purchased as fully completed functional units, i.e. with load
centers, control valves, complete with installed instrument devices, motors, PLCs and
any other features
What will be the hook-up requirements for piping, cable and control wiring
Future maintenance considerations
Future modifications
Expansion considerations
Costs / Life cycle
Ease of installation
Schedule / Fast track construction
Undemanding future alteration / modifications
Pluss and minuss of Conventional methods (stick built) V s modular / pre-fabricated
systems
Work can start relatively quickly.
No cost premium for stick built applications.
Need for qualified workers for short / long periods of time, could be shortages of
qualified workers in certain areas, which could help the case for modules / preassemblies.
Training of workers to fabricated sophisticated stick built systems is not really required.
Waste / cutting and dust from construction activities are a problem, especially if other
phases of the project have been completed.
51

As has been mentioned earlier a good cost estimator / cost engineer is an invaluable
asset to any organization, just as a bad cost estimator / cost engineer could be a real
danger to any profit motivated organization. The successful cost estimator / cost
engineer must have an open and inquiring mind, he or she must have a command /
knowledge of process related business intelligence, he or she must be a speed reader
of trade publications, vendor publication data / pricing, cost related journals / cost
estimating articles / publications, he or she must keep up to date with computer /
technology advances, new estimating tools / data bases and electronic cost sources,
computerized spreadsheet methods, new construction equipment and support systems,
and product modifications that take place on a constant basis in todays construction
industry, he or she must be able to estimate the margin between what the business will
bear and what the real cost is to execute the EPC project. An in depth exploration /
search / assessment of current specific data sources / published work dealing with
capital cost estimating and specifically Process related Conceptual / Front End
Estimating indicates a real need for current / real time comprehensive front end /
conceptual capital cost estimating data. There is a fair amount of detailed cost
estimating data in the marketplace, much of it biased towards general construction, i.e.
housing, schools, office building, hotels, etc, but no one publication has been developed
to service Front End Conceptual Estimating for work specific to the process /
manufacturing / chemical / refinery industries, hence the reason for the production of
this data source, rookie cost estimators / engineers frequently find difficulty in obtaining
rules of thumb / historical norms / instructions / tutoring on how to prepare / compile a
Front End / Conceptual Cost Estimate, it is the intent that this database / document and
subsequent updates will fill / satisfy this current void.
TYPICAL DETAILED EPC ENGINEERING MAN-HOUR BREAKDOWN:
The following is a characteristic Engineering, Procurement and Construction (EPC)
detailed breakdown of detailed design man-hours for a process related project. The
data is based on historical data for small to large ($3-$65 million T.I.C.) sized projects,
This EPC effort is many times executed on a lump sum basis with change orders for
additional or reduced scope.
Detailed (EPC) Engineering Man-hour Breakdown
Function
Project Management

Design, Drafting and CAD

Description / Task
Project Manager /
Project Engineer
Chemical / Process
Engineering Design
Civil / Structural
(Drawings & spec)
Architectural
(ditto)
Electrical (ditto)
Instrumentation (ditto)
Mechanical (ditto)
Building services /
utilities / piping
S/T
Civil / Structural /
52

Man-hour
Percentage

M.H. s on a typical
10,000 assignment

7.50%

750

3.50 (Heat balance

PFDs)
2.00
1.00
3.50
3.00
3.50
2.50
19.00%
8.50

1,900

Architectural (ditto)

(Engineering
Deliverables)

Contracts / Procurement

Project Controls / Support

Services / Accounting

Document Control / Office

Administration

Equipment (ditto)
Piping (P & I Ds) (ditto)
Electrical (ditto)
Instrumentation (ditto)
Mechanical (ditto)
S/T
Purchasing / Contracts
Inspection QA / QC
Expediting /
Transportation
S/T
Estimating / Estimating
Database Mgmt
Cost Engineering /
Return Data
Planning / Scheduling
Value Engineering
Accounting
Computer support / IT
Library /Technology
services
RFQ s / Bidding /
Proposals / Sales
S/T
Secretaries
Document control
Office admin / HR
Construction support /
Safety
S/T

Total

3.50
14.50
5.00
6.00
5.50
43.00%
3.50
1.50
1.50

4,300

6.50%
3.50

650

2.50
2.50
0.50
1.25
1.00
0.75
0.50
12.50%
3.50

1,250

5.00
1.00
2.00
11.50%
100.00 %

1,150
10,000 M.H. s

The above would typically be between 9% and 14% of the Direct Construction and in
direct cost. Construction Management would be 4% to 7% of the same cost.
PROJECT MANAGEMENT ENGINEERING PROCUREMENT & PROJECT CONTROL
INFORMATION
The subsequent lists below are typical reporting deliverables required for a $10-$65
million process related EPC project.
Project
Management
1

Deliverables

Weekly

Project status report,

summarizing major goals
achieved problem areas:
reporting current status
of Engineering / Detailed
Design / Procurement
53

BiWeekly

Monthly

2
3
4
5
6
7
8

Engineering /
Detailed
Design /
Design
Control
1

2
3
4
5

and Construction Vs
planned performance.
Project safety report
30 day look ahead
schedule
Detailed CPM schedule
update
PM work hours spent to
date compared to original
budget
Scope
of
Work
modification report
EPC S Curves
Approved client C.C.
report

X
X

X
X

X
X

Deliverables

Weekly

BiWeekly

Monthly

Engineering status report

discipline man-hours
expended to date: Vs
current budget issued
weekly
Discipline trend bi-weekly
report, i.e., civil, piping,
electrical, etc
Average Engineering /
Design hourly cost Vs
original value
Third party Engineering /
Consultants status report
Major Activities /
Deliverables drawings
compiles and percentage
complete / specifications
completed by discipline /
SOW deviation report
Status of Process Data,
Equipment (PFDs)
layouts, C-S-A
deliverables, Process
piping (P&IDs), Electrical
Instrumentation,
Insulation and any other
engineering needs

54

Procurement /
Materials
Management /
Contracts /
Q.A.-Q.C.
1
2
3
4
5
6
7
8
9
10

Accounting
Reports
1
2
3
4
5
6
7
8

Deliverables

Weekly

BiWeekly

Monthly

Purchase Inquires /
Requisitions issued, biweekly
Purchase Orders placed,
bi-weekly / Monthly
status report
Contracts placed, biweekly
Current commitment
report, monthly
Inspection Reports, QA /
QC monthly
M.E. status report
Expediting Record
Report / M.E. Status
report
Procurement Summary
Executive Report,
monthly
Long lead delivery status
report
Warranty / spare parts
status

Deliverables

X
X
X

X
X

Invoice to clients
Invoices from vendors
Invoices from sub
contractors
Payments received
Payments to vendors
Payments to sub
contractors
Payments to 3rd parties
total accounting reports
Accounting report /
Accruals / Commitment
report / Expense status
reports / Expended to
date report
Back charge register /
scrap salvage report /
consumables report

55

Weekly

BiWeekly

Monthly

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

X
X
X

Construction
Management /
Field
Activities
1

2
3
4
5

6
7
8
9
10

Deliverables

Weekly

BiWeekly

Monthly

Monthly site / field cost

statement, by major bid
package / WBS / by
area, C.O.A. s with total
to date costs & final
forecast
Sub Contract status
report / Major quantities
installed
Field labor efficiency
status report, monthly
Site / Field scope /
change order report,
monthly
Batch Plant / Bulk
Material / Major
Equipment receiving
report
Construction Equipment
utilization / Local
Purchasing Report
Milestones / Percentage
complete per week
Safety Report, weekly
Rental / leased
construction equipment
report
Field manpower report
(daily headcount report) /
Visitor log

X
X

X
X

X
X

Note this field information / reporting system is issued to both the P M and
Project Control groups for integration into the PM monthly status report.
Project
Control
Issues
1

Deliverables

Weekly

BiWeekly

Monthly
X

Monthly cost report: by

work breakdown
structure by area, with
total to date costs & final
cost impact
Weekly change order /
trend report including
actual and potential
change orders

56

3
4
5
6
7
8
9

Field change order log /

Quantities installed report
/ Trend reports
Value Engineering
Monthly Report / Biweekly Trend report
Bi-Monthly Cost
Management Status
Executive Cost /
Schedule Summary
Report
30 / 60 / 90 day look
ahead schedule
Project cash flow report
Expended and
Committed funds report
Monte Carlo Risk
Analysis report indicating
contingency funding
requirements /
Contingency run down
report

X
X

Note there are other project specific reports in addition to the above, such as:

Close out reports

Final account reports
Punch list reports
System acceptance / handover reports
Insurance status log
Purchase order log
Change order log
Bid opening sheets
Major Equipment Bid summary
Addendum / Bulletin log
Inspection / Expediting status reports
Receiving reports
Back charge log

Which need to be compiled as an ongoing project related activity?

To summarize some of the points made earlier in this data source: The profession /
activity of a Project Control Engineer (this includes capital cost estimators / cost
engineers / planners etc.) has been in the last couple of decades been a third or fourth
career choice / profession and a profession that rookie engineers / business majors
have to a large extent steered clear of, due in part to the non glamorous appearance /
appeal of the job function (appears to be akin to accounting), i.e. the eye shade and
adding machine look, young engineers all want to be Project Managers when they leave
college !!!, its only after the first six months of work that they realize that there is a lot to
learn in this EPC business, however in the last 5 10 years many young engineers now
57

realize that starting off there career in Project Controls can be a smart move, more and
more Project Control engineers are being promoted to Project Managers and eventually
migrating into the ranks of upper management. Many owner type companies i.e. Fortune
500 companies and some of the major EPC companies have dedicated staffing (data
retrieval / collection) resources that collect / calibrate in-house proprietary return
historical material costs and man hour data production rates that is calibrated for use on
there future capital projects. Topics the cost estimator / engineer must consider that
could impact the final cost of a project includes the following:

Size of Project (small or large)

Location of Project (North America or Overseas)
Completeness of Engineering Deliverables
Timing of the Estimate (due date)
Contract Clauses (L. D.s. Performance Guarantees, insurance requirements
and payment terms):
Site Specific Items (Access / Egress, Operating Plant)
Economic / Business climate (Inflation, Cost Increases and shortages of key
materials, such as steel and plywood)
Type of Contract
Labor Factors (Productivity, Union / Non Union Labor)
Regulatory Permits
Weather conditions (winter work requiring snow removal or summer work were
extreme hot weather is encounter that typically impacts labor productivity):
Completion Date (overtime / shift work)
Quality of Engineering Deliverables / Specifications
Type of Project (New / Revamp / New Technology)

A mixed bag of numbers is of little use to anyone involved in the construction process if
its estimate basis is not consistent and the estimating effort is not fully thought out, i.e.
the scope of work and the estimate format are flawed. The point and focus of this frontend / conceptual estimating database is to provide an up to date tool for construction
professionals that will assist in the compilation of more accurate, timely and dependable
front end / conceptual CAPEX estimates. Conceptual / Front End cost estimating is a
tremendous business tool, as we all know many times the scope and timing of capital
projects will typically be subject to change during the projects life cycle, however this
resource / tool can be used to give details or support the decisions and the genesis of
the project(s) scope and how it was developed and possibly modified, the front end /
conceptual estimate can be used as the audit trail of why it was adjusted, it can present
the history of what was originally (scoped out) and estimated / planned versus what was
actually engineered and built, used correctly the conceptual estimator can benchmark
his or hers conceptual estimating library with the return cost / man-hour data from the
completed project and calibrated there current library for future front end / conceptual
activities. Bear in mind that the Cost Estimator / Cost Engineer is a vital member of the
Project management team, his or hers suggestions and advice can have a major impact
on the future of the EPC project.

58