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Is modularization right
for your project?
One gasoil hydrotreater case history illustrates
how $12.5 million was saved
P. H. Jameson, CB&I, Tyler, Texas
Fig. 1
An 18-ft x 18-ft module leaves the fabrication shop in Texas bound for South Korea.
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Fig. 2
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required in the plant arrangement and layout. The end users specifications and spacing requirements were incorporated into the
design. Access and maintainability had to
be designed into each module. In addition,
constructability reviews were conducted to
ensure that construction concerns were met
and that the scheduled sequence of module
fabrication matched the preferred erection
sequence in the field.
Schedule. As is evidenced by the schedule
150
16
16
180,000
Arizona
120
14
16
250,000
Arkansas
100
14
14
120,000
California
120
14
16
220,000
Colorado
130
17
16
228,000
Connecticut
120
15
16
250,000
Delaware
120
15
15
250,000
Florida
150
16
16
250,000
Georgia
100
14
14
120,000
Idaho
110
16 156
200,000
Illinois
145
146
15
250,000
Indiana
110
16
15
250,000
Iowa
120
18
16
250,000
Kansas
126
166
16
250,000
Kentucky
110
16
15
250,000
Louisiana
125
18
16
250,000
Maine
125
16
16
250,000
Maryland
100
1511 1511
220,000
Massachusetts 115
14
240,000
Michigan
150
16
15
230,000
Minnesota
95
146
14
250,000
Mississippi
100
14
14
120,000
Missouri
100
14
14
120,000
Montana
110
18
17
240,000
Nebraska
120
14 156
212,000
Nevada
105
17
16
240,000
15
16
250,000
New Jersey
120
18
16
220,000
New Mexico
120
14
16
250,000
New York
120
14
14
160,000
14
14
120,000
North Dakota
120
146 156
150,000
Ohio
100
14 1410
120,000
Oklahoma
100
16
16
212,000
Oregon
105
14
16
220,000
Pennsylvania
120
16 156
201,000
Rhode Island
90
14 136
120,000
16
14
250,000
146 156
150,000
Fig. 3
14
South Dakota
120
Tennessee
120
16
15
250,000
Texas
125
20 1811
252,000
Utah
125
15 166
250,000
Vermont
100
15
14
150,000
Virginia
150
14
15
150,000
Washington
150
14
16
200,000
West Virginia
150
16
15
212,000
Wisconsin
150
16
16
250,000
Wyoming
110
18
17 252,000
QA/QC
Shipping/receiving
5,100 hr, 4% 11,100 hr, 8%
Mechanical
assembly
25,200 hr, 19%
Vessel
1,800 hr, 1%
Module
structural
8,600 hr, 7%
Misc.
structural
28,600 hr,
22%
Piping
45,100 hr, 34%
Fig. 4
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Equipment operators
24,600 hr, 12%
Tools, warehouse
4,200 hr, 2%
Cleanup
11,200 hr, 6%
Module assembly
14,000 hr, 7%
Equipment
32,500 hr,
16%
Insulation
900 hr,
0%
I&E
28,300 hr,
14%
Piping
87,600 hr,
43%
Fig. 5
Fig. 7
140
120
Budget
Actual
$115.00
$96.00
100
Dollars
80
60
40
$36.00
$37.00
20
0
Average shop rate
Fig. 6
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120
100.0%
89.7%
89.7%
80
120
60
100
40
20
0
Modular
Equipment
Engineering
Freight
Shop labor
Subcontractor
(insulation/
fireproofing)
Bulk materials
Fig. 8
21.1%
24.6%
4.2%
11.9%
0.0%
21.1%
24.6%
4.2%
11.9%
0.0%
28.1%
27.9%
27.9%
450,000
383,200 hr
400,000
350,000
60
20
0
Modular
Indirect/temp
facilities
Field labor w/staff
Field subcontract
Fig. 9
5.4%
7.0%
7.0%
60.9%
33.7%
71.4%
39.0%
94.7%
39.0%
140
414,000 hr
118.1%
120
335,100 hr
100
100.0%
105.1%
250,000
200,000
Percent
Hours
100.0%
80
300,000
150,000
100,000
50,000
0
Field work hr
Shop work hr
Fig. 10
117.4%
40
21.1%
24.9%
5.7%
16.0%
4.2%
140.7%
140
Percent
Percent
100
80
60
40
Modular
Stick built
(budget
productivity)
Stick built
(actual
productivity)
203,300
131,800
285,200
98,000
316,000
98,000
20
0
Construction total
FOB total
Modular
Stick built
(budget field
productivity
and labor rate)
Stick built
(actual field
productivity
and labor rate)
55.7%
44.3%
65.4%
39.7%
78.4%
39.7%
Fig. 12
A sixth consideration relates to schedule extension and field indirect cost. It was
estimated that the field construction would
have been extended by 10 to 12 weeks if
the project was totally stick built. However,
since loaded field labor rates were used in the
analysis, as previously noted, no additional
indirect labor costs were added. However, a
30% increase was applied to field indirect
material and temporary facilities.
A seventh consideration relates to foundation design and installation cost. It was
estimated that the stick-built construction
would have added 68 foundation piles, at
an estimated cost of $132,000. Modular
construction allows the loads to be distributed more, thus decreasing the number of
piles needed for the foundations.
A final consideration relates to transportation and crane cost. It was estimated that
30% of the actual cost of module shipment
would be required to ship the modularized components minus the modular steel
that would be unnecessary for stick-built
construction. This resulted in a $471,000
decrease in the FOB cost. In addition, the
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