CONTENTS

I N T E R N AT I O N A L I N C .

IV ABOUT THE FIRM

V ACKNOWLEDGEMENTS

A1

E
01 INTRODUCTION TO CAPITAL COST ESTIMATING:

PL
The General Forecast for 2016 and beyond
The Project Control Cycle
Cost breakdown of a typical Chemical process facility
The CAPEX Estimating process
Presenting the estimate to Senior Management
Optimizing the estimating effort

A2
M
27 CAPITAL COST ESTIMATING FUNDAMENTALS:
Questions that need to be asked
The Estimating four step process
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Capital Cost Estimating Terms

Estimating Types / Accuracy
Engineering Deliverables & Budget:
Pricing to compile various estimates
Resolution allowance / Undefined Scope Allowance
Developing an Estimating Plan

A3
55 CAPITAL COST ESTIMATING METHODS:
CAPEX estimating (10 +) approaches:
Various factoring methods:
Seven historical Ratio / M.E. percentage cost models:
Typical Solids, Fluids M.E. multiplying values:
General Process Industry Benchmarks
Summarizing the CAPEX Estimate:

Copyright 2016 Compass International, Inc.

II. | CONTENTS

A4
107 BASIC MAN-HOUR BENCHMARKING DATA & REFERENCE TABLES

A5
159 SITE SELECTION / COST DATA SOURCES / ESTIMATING CHECKLIST

E
A6
179 VALUE ENGINEERING / CHANGE ORDERS / CLAIMS / CONTINGENCY

209
B1 PL
SCALE OF OPERATIONS / EXPONENTS (180 + PLANTS / M.E. ITEMS)
M
B2
213 ADDITIONAL ESTIMATING FACTORS COST MODELS (18 + EXAMPLES)
SA

B3
243 SQUARE FOOT / M2 ESTIMATING DATA (100 + BUILDINGS / FACILITIES)

REVAMP / REHABILITATION COST VALUES

B4
252 UNIT PRICE DATA (1,000 + UNIT COST ITEMS)

Copyright 2016 Compass International, Inc.

 CONTENTS | III.

B5
284 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):

E
Inflation / Compass Cost Index:
Rebar / Pipe / Concrete / Bricks Pricing (14 cities):
General Condition / Preliminaries Data:

305
C1

PL
MAJOR EQUIPMENT / PROCESS EQUIPMENT COST & LABOR MODELS

(125 # MAJOR EQUIPMENT ITEMS)

M
D1
367 FRONT END / SEMI-DETAILED ESTIMATING METHODS
Front End Issues / Types of Data Required:
SA

Benchmarking Metrics:
Detailed Design / Engineering Metrics:
Civil, Structural, Architectural / Miscellaneous Costs:
Structural Steel Costs:
Facilities / Buildings Costs:
Piping / Insulation Metrics:
Electrical Systems:
Instrumentation:
Security Equipment / Robotics:
Miscellaneous estimating items:

Copyright 2016 Compass International, Inc.

58. | SECTION A3

BUSINESS
ANALYSIS
Items A G
(above)

SCOPE OF WORK FRONT END /

DEVELOPMENT CONCEPTUAL
ESTIMATING
+/- 30%
PROCEED

E
(Yes or no)

Abandon study
if companies
ROI investment
criteria is not
PL Continue with study
if companies ROI
investment criteria
is achieved produced
achieved, move more defined scope
to next prospect and +/- 20% Estimate
M
with numerous single point metrics that hopefully
wners, A/E, EPC, CM firms and contractors when will assist the reader in future estimating and audit-
they generate their project Front End / Concep- ing activities. The number one basic principle of
SA

tual and Detailed / Lump Sum estimates use many
different formats and configurations (i.e. estimat-
ing templates and summaries). There seems to be
no standard approach in industry, this initially can
cause some problems to individuals charged with the
responsibility of reviewing and checking these es-
timating deliverables and was one of the drivers for
the production of this database. We have endeavored
to standardize some of these Front End / Conceptual
and Detailed / Lump Sum estimating summaries in
this particular section. The underlying principle of
this section is to outline a number of different ap-
proaches and methodologies related to estimating
the cost of Process / Manufacturing type facilities.
This section contains historical estimating bench-
marks (based on return cost data records) together
Project Management and its sub elements i.e. Proj-
ect Control Cost Estimating is to deliver the best
technical and business solution to the business unit
considering or building a new facility expansion(s)
or upgrade(s), together with value (which of course
is part of the business solution) for future CAPEX
investments. The project team must deliver the
correct business solution at the front end stage(s)
of CAPEX project, the scope, needs to be to some
extent reasonably defined, some front end design
work needs to have been completed, various manu-
facturing / production schemes need to have been
considered and scoped out. The decision to engi-
neer / procure and construct (EPC) a new Chemical
/ Manufacturing Facility, or to upgrade, revamp or

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70. | SECTION A3

(2) Average Historical (Multiplier) Factors - $1.00 million delivered to site the following aver-
Liquid Plants +/- 25% Accuracy (Chemicals / Fluids age percentages should be used as a starting point.
/ Wet Processs type facilities, high percentage of Off sites (O.S.B.L.) are excluded from the following
pumps / piping) Assume Major Equipment cost is data values.

Table 2
AVERAGE HISTORICAL (MULTIPLIER) FACTORS LIQUID PLANTS

REF DIRECT CONSTRUCTION TYPICAL % % BULK % LABOR TOTAL REMARKS

COSTS OF M.E. MATERIALS - S/C

E
1 Major Equipment (M.E.) 0 1.00* 0.00 1.00 Assume $1.00 million
2 Freight (used 4%) 2.5 - 5 0.02 0.02 0.04 50/50 split
3 Overseas Freight 5 - 8 N/A N/A N/A for this example
4 M.E. Setting 1 - 7 0.01 0.05 0.06 Heavy lift cranes in line 15

6
7
8
(Millwright work)
Site work / civil
(excavation / roads)
Concrete work
Structural steel
Facilities / Buildings
(including services)
PL
3 - 10

8 - 25
15 - 35
3 - 15
0.02

0.03
0.10
0.03
0.03

0.10
0.11
0.02
0.05

0.13
0.21
0.05
Site clearance /
minor demolition
SOG & elevated
Including platforms

9 Piping** 50 - 150 0.40 0.60 1.00 ISBL only

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(includes hangars & testing)
10 Electrical 15 - 45 0.09 0.13 0.22 Including tracing
11 Instrumentation / Controls 20 - 65 0.15 0.13 0.28
12 Insulation 3 - 25 0.02 0.03 0.05
13 Painting 2 - 10 0.01 0.01 0.02
SA

14 Safety / F P / Misc. (A) 4 - 12 0.02 0.03 0.05

TOTAL DIRECT COST 1.90 1.26 3.16
INDIRECT PROJECT COSTS
15 Field Establishment Costs *** 0.29 23% of labor / S.C. costs
16 EPC Office H.O. range 20% - 30% 0.86 27% of total direct costs
17 Construction Management range 20% -.45% of line 16 0.21 25% of EPC H.O
18 Owner Engineering & CM 5% 15% of line 16 & 17 0.11 10% of line 16 & 17
19 TOTAL INDIRECT COSTS 1.47
20 TOTAL COST MULTIPLIER 4.63

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

* 1.00 = Total value of Major Equipment / Assume 25 items (M.E.)

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

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 SECTION B2 | 217.

Table 2
RESEARCH & DEVELOPMENT FACILITY 40 50% ISO 8 CLASS 100,000
DIV NO DESCRIPTION % TOTAL VALUE SF / COST M2 / COST
1 Preliminaries / General Requirements 9.53% 2,076,086 28.83 310.26
2 Site Works / Civil 3.76% 819,107 ** 11.38 122.41
3 Concrete 5.84% 1,272,228 17.67 190.13
4 Masonry 6.48% 1,411,651 19.61 210.96
5 Metals / Structural Steel 7.46% 1,625,142 22.57 242.87
6 Wood Plastics 4.84% 1,054,381 14.64 157.57
7 Thermal & Moisture Protection 3.55% 773,358 10.74 115.57
8 Doors & Windows 3.36% 731,968 10.17 109.39
9 Finishes 5.73% 1,248,266 17.34 186.55
10 Specialties 1.90% 413,910 5.75 61.86

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11 Equipment* 9.31% 2,028,160 * 28.17 303.10
12 Furnishings 0.72% 156,850 2.18 23.44
13 Special Construction 0.32% 69,711 0.97 10.42
14 Conveying Systems (3P / 1G) 1.97% 429,159 5.96 64.14
15A
15B
15C
16
16A

Plumbing

Electrical
BMS / HVAC Controls
SUB TOTAL
PL
HVAC (AHU s / Ductwork / Balancing)
Fire Protection / Sprinklers

`
5.93% 1,291,835
16.79% 3,657,657
1.25% 272,309
9.59% 2,089,156
1.67% 363,805
100% 21,784,740
17.94
50.80
3.78
29.02
5.05
302.57
193.06
546.62
40.70
312.21
54.37
3,255.61
17 A/E Services 8.85% 1,927,949 26.78 288.12
18 CM 4.75% 1,034,775 14.37 154.64
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19 Validation Services N/A N/A N/A N/A
TOTAL 113.60% 24,747,465 343.71 3,698.37

(4) CHEMICAL PERCENTAGE RANGE (6) Paint Manufacturing Facility / Partial Ret-
PROCESS PLANT (CONCEPTUAL ESTIMAT- rofit located in Mid West (2004 Costs) Constructed
ING APPROACH) ACCURACY +/- 30% ISBL on an established operating site with adequate utili-
SA

ONLY PERCENTAGES OF MAJOR EQUIP- ties (needing some modification / upgrading)

MENT DELIVERED TO SITE
** The above Includes craft supervision, tem-
porary facilities, testing, clean up, security, rental
equipment, warehousing, payroll taxes / benefits,
workers comp, small tools / consumables.
For OSBL work add 5 70%
See chart next page.
See chart following pages
Excludes: Owner corporate engineer-
ing $515,000 and Front End Engineering Study
$330,000 that was completed in 2002:
Demolition and asbestos removal could be an
expense item. Refer to previous L & M ratios to
determine man-hours and material ratios / splits.

(5) ZEOLITE PLANT SUMMARY ESTI-
MATE RATIO / PRELIMINARY ESTIMATE
+/- 20% Accuracy
See chart following pages
M.E. Multiplier = 5.22 with contingency / 4.99
w / o contingency
(7) Consumer Products Facility Personal Care
Products - Central America: (Soap, Shampoo and
Dental Hygiene Products)
Production 21,500 M2 - Admin / Laboratory
5,700 M2 - Warehouse - 10,500 M2
See chart following pages

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110. | SECTION A4

Major Equipment INP

TYPICAL DELIVERY TIMES

MAJOR EQUIPMENT CATEGORY INQUIRE / NEGOTIATE & PURCHASE (INP)

IN WEEKS AND DELIVERY TO SITE:
Boilers 250 HP and above 20 - 36
Columns / Towers with trays 20 - 40
Compressors Reciprocating 20 - 40
Ditto Centrifugal 24 - 40
Control valves 10 - 16
DCS i.e. TDC 3000 16 - 36
Electric Motors (250 500 HP) 16 - 26
Furnace (cabin type) 20 - 35
Hammer mill 26 - 44
Heat Exchangers 16 - 32

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Instrumentation devices 8 - 16
Pumps 200 GPM and above 8 - 20
Reactors high pressure 25 - 45
Turbines
Tanks (Floating Head)
Transformers / Sub stations
Spheres
PL 25 - 36
12 - 24
12 - 36
12 - 36
Vessels (Heavy wall) 20 - 40

with an understanding of the accuracy of the capital
cost estimate deliverables (its a tall order - however
M
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
SA
Refineries (2) Pharmaceutical / Fine Chemicals /
Consumer Products (3) Power Generation (Oil, Gas
and Nuclear facilities) (4) Food Processing (Dairies
& Bakeries) Beverage (Soft drinks and beer produc-
tion) (5) Manufacturing (i.e. paint, toner, plastics
production, glass, paper manufacturing, detergents,
cement, man-made fibers and various automo-

sector - as it is many times described, embraces the
following major business sectors / industry nomen-
clature, (they mean the same thing to the lay person)
that many times overlap each other and basically
refer to the same industry sectors. This gets more
complicated when discussing this in the context of
building new facilities in this industry. The names
bandied around when discussing this is that it is an
industrial project, or it is an Oil & Gas project, or it
is a Petro-Chemical project. Its hard to have a col-
lective name for all these project types, the best way
forward is to refer to them all as Process Manu-
facturing type projects. Some of the most prominent
sectors include (1) Petroleum / Gas Production /
tive components) (6) R&D Facilities Pilot Plants
Animal Testing / Research Facilities etc. (7) Steel
Mills & Rolling Mills and (8) Automobile Produc-
tion this one could fall into # 5 above. There are
most probably others that have not been mentioned.
These Process / Chemical Industry facilities
production plants utilize equipment (many times
referred to as Major Equipment (M.E.)) that carries
out the following actions - heating, cooling, grind-
ing, drying, mixing, blending, hammering, pressing,
compacting, conveying, transporting / moving and
pumping - conveying powders, fluids and gases.
Typically a fair amount of rotating equipment i.e.
pumps and agitators and mixers are required in these

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96. | SECTION A3

Module Cost Per Ton

2016 COST BASIS
TONS COST PER TON LOW $ COST / TON HIGH $ COST / TON
60 12,000 10,200 14,400
80 11,500 9,775 13,800
100 11,000 9,350 13,200
NOTE:
The above values include for major equipment items such as pumps, drums and tanks. Values need to be adjusted if sophisti-
cated equipment such as compressors and the like are part of the module.

Major Equipment Multipliers (M.E.)

E
FOR POWER, STEEL, PHARMACEUTICAL & CHEMICAL FACILITIES
TYPE OF PLANT LOW RANGE M.E. MULTIPLIER MEDIAN M.E. MULTIPLIER HIGH RANGE M.E. MULTIPLIER
Chemical - Liquids
PL
Chemical - Liquids / Solids (Hybrid)
Chemical - Solids
Ethanol Facility (corn / sugar cane)
Pharmaceutical
3.75
3.25
2.50
2.75
1.75
5.00
4.50
3.75
3.25
2.50
6.25
5.75
5.25
3.75
4.50
Power 2.00 3.30 4.00
Steel 1.50 2.00 2.50
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Typically major equipment multipliers (to arrive a combination of union construction workforce and a
at a total installed cost of the proposed facility, this normal construction schedule.
multiplier would cover, materials, labor, in directs, High Range: Characteristically the major equip-
SA

detailed design, construction management) for pow-
er, steel, pharmaceutical, chemical facilities (liquids,
solids and a hybrid of both) type facilities fall into
one of the following categories / major equipment
(M.E.) multipliers.
Low Range: Typically is an open structure, has
a high level of carbon steel piping, an unsophisti-
cated instrumentation / control system, open shop
construction workforce and a normal construction
schedule. Solids has a limited amount of piping, the
major equipment is usually material handling, crush-
ers and grinders.
Median Range: Typically is a combination
of enclosed / open structure, has an assortment of
carbon steel and stainless steel piping (60% C.S. and
the balance S.S. or better), a reasonably sophisti-
cated instrumentation / control system, open shop or
ment is housed in an enclosed structure / building,
has an assortment of carbon steel and a high content
of stainless steel piping (30% C.S. and the balance
70% S.S. or better), has a state of the art instrumen-
tation / control system TDC 3000 or equal, open
shop or a combination of union construction work-
force and a fast track construction schedule, is a
hazardous process, is based on new technology.
Other considerations: (refer to other benchmarks
on page 28 - 33)
(D) Front End Semi-Detailed / Square Foot /
Conceptual Estimates (+/- 25% Accuracy)
Front end semi detailed, conceptual, capital
cost estimates are usually compiled in the more
advanced stage of the front end / conceptual defini-
tion / design development effort, or early on in the

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94. | SECTION A3

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

20 Ton Module Cost Model

DELIVERED TO SITE CONTRACTORS CRANE HOOK,
SITE CONTRACTOR WILL SET IN PLACE WITH THEIR OWN HEAVY LIFT CRANE
COST RANGE $11,020 TO $15,560 PER TON

E
DESCRIPTION MATERIAL LABOR ENGINEERING / OTHER $ TOTAL

Purchase Steel Materials 46,004 46,004

Fabrication of Steel Frame & Grating 19,377 19,377

PL
Purchase of Major Equipment, Purchase
cost is included, would be free issued to
module fabricator to install in module
by owner or EPC
Install Major Equipment into module
Piping Material (Pipe, fittings & valves)
Pipe Fabrication
38,967

8,225
8,324

26,487

38,967

8,324
8,225
26,487
M
Heat treat & NDT of pipe systems 745 4,182 4,927
Paint for steel material 6,506 6,506
Labor to paint steel material 9,655 9,655
Paint for pipe material 1,324 1,324
Labor to paint pipe material 879 879
Insulation material 6,413 6,413
SA

Insulation labor 4,600 4,600

Electrical & Instr materials 7,639 7,639
Electrical & Instr labor 6,413 6,413
S/T 115,824 79,918 195,742
Module Shop Detailed Design, 19,860
PM & Purchasing and Site Visits
Lift module onto truck 3,353
Transport to jobsite assume 8,556
250 mile one way trip
S/T 31,769 31,769
Total cost of Material, Free-Issued 227,511
(4 Pumps, 4 Other) Major Equipment,
Fabrication & Detailed Design
Module Fabricators G&A ,O-H & Profit 14% 31,852
TOTAL COST OF 20 TON MODULE $259,362
COST PER TON $12,968
Labor Rate $34.85 = 2,109 Shop hours (open shop)
Engineering Rate $94.45 = 210 hours
225 to 400 M-Hs to fabricate
EPC basic / detailed engineering is excluded from above costs
1 C.F. of module weighs 4.50-6.50 pounds
1 S.F. footprint of module weighs 130-175 pounds

Copyright 2016 Compass International, Inc.

 SECTION B3 | 245.

New Industrial / Commercial Sq. Ft. M2 Building Costs

2016 COST BASIS: INCLUDE ALL MATERIAL, LABOR, PLANT, GENERAL CONDITIONS,
PRELIMINARIES, OVERHEAD, AND PROFIT.
FACILITY / BUILDING COSTS COST COST SF $ SF $ AVERAGE AVERAGE
MODEL SF MODEL M2 LOW HIGH COST $ SF $ M2 COST
300 mm wafer manufacturing facility 264,500 24,582 2,472 3,246 2,859 30,765
Advanced Chemical Weapons Laboratory 114,000 10,595 490 618 554 5,964
Agricultural R&D Center 72,600 6,747 266 337 301 3,242
Animal Research / Testing Facility 2 Floors 96,000 8,922 469 597 533 5,737
Apartments 1 3 Floors (Spec A) 30,000 2,788 148 186 167 1,795
Apartments 1 3 Floors (Spec B) 30,000 2,788 137 170 153 1,651
Apartments 3 5 Floors (Spec C) 85,000 7,900 140 176 158 1,699
Apartments 3 5 Floors (Spec A) 85,000 7,900 143 181 162 1,747
Apartments 3 5 Floors (Spec D) 85,000 7,900 141 178 160 1,717
Apartments 5 25 Floors (Spec D) 335,000 31,134 159 199 179 1,926

E
Apartments 5 25 Floors (Spec A) 335,000 31,134 142 180 161 1,735
API Pharmaceutical Facility 133,000 12,361 470 594 532 5,725
Auditorium 2 Story (Spec A)
PL 45,700 4,247 152 193 172 1,854
Auditorium 2 Story (Spec D) 45,700 4,247 150 189 170 1,825
Auditorium 2 Story (Spec C) 45,700 4,247 145 184 165 1,771
Automobile Production Facility 585,000 54,368 120 151 136 1,460
Bakery 615,000 57,156 120 152 136 1,466
Bank 1 Story (Spec A) 9,200 855 187 236 212 2,279
Bank 1 Story (Spec B) 9,200 855 193 243 218 2,345
Bank 1 Story (Spec C) 9,200 855 187 239 213 2,291
Biological Manufacturing 340,000 31,599 1,937 2,378 2,157 23,214
M
Bio Medical / R&D Center 3 Floors 92,500 8,597 427 539 483 5,198
Bleach Manufacturing Facility 388,000 36,059 134 169 152 1,633
Brewery 181,000 16,822 120 151 136 1,460
Cable TV Facility 12,700 1,180 120 152 136 1,466
Chemical Process Plants 3 Floors 56,000 5,204 104 131 117 1,262
Computer / Telecommunications Center 27,700 2,574 137 171 154 1,657
SA

2 Floors
cGMP ISO 6 8 117,500 10,920 1,004 1,276 1,140 12,264
cGMP ISO 7 8 88,600 8,234 837 1,056 947 10,187
Dairy / Cheese / Butter Production 74,000 6,877 131 165 148 1,591
Data Processing Office 11,000 1,022 158 199 178 1,920
Fiber Production Facility 88,000 8,178 136 170 153 1,645
Food Production Facility 2 Floors 73,000 6,784 133 168 151 1,621
GMP Production Facility 80% ISO 5,6,7 & 8 137,000 12,732 998 1,263 1,131 12,168
GMP Production Facility 60% ISO 5,6,7 & 8 137,000 12,732 943 1,192 1,067 11,486
GMP Production Facility 60% ISO 6,7 & 8 137,000 12,732 728 918 823 8,859
GMP Production Facility 50% ISO 7 & 8 137,000 12,732 593 744 668 7,190
GMP Production Unclassified 2 Floors 137,000 12,732 208 262 235 2,530
Heavy Manufacturing Facility 40,000 3,717 117 147 132 1,418
Hospital 2 - 4 Story (Spec A) 166,700 15,493 239 301 270 2,907
Hospital 2 - 4 Story (Spec D) 166,700 15,493 245 309 277 2,979
Hospital 2 - 4 Story (Spec H) 166,700 15,493 249 315 282 3,033

Copyright 2016 Compass International, Inc.

 SECTION B5 | 289.

GLOBAL LOCATION FACTORS, CONSTRUCTION

LOCATION LOCATION FACTOR
WISCONSIN PRODUCTIVITY AND ENGINEERING (DESIGN
Green Bay .93 & DRAFTING) PRODUCTIVITY VS USA STAN-
Madison .92 DARDS
Milwaukee .95 (Washington D.C. 30 - 40 mile radius = 1.00)
WYOMING The factors indicated below would be appropri-
Casper .86 ate for ($5 - $100+ million) hi-tech / manufactur-
Cheyenne .87 ing / pharmaceutical type facility. (* Applicable if
Gillett .86
the above value is for a first of its kind building /

E
The above USA city indexes / location factors facility (engineering / construction endeavor will ini-
are intended for calibrating building / facility costs. tially experience a steep learning curve as the staff
The base / standard benchmark city is Washington, navigates it way through local import regulations

PL
D.C; i.e. which is fixed at a value of 1.00. Less built
up areas close to major cities, i.e. suburbs outside
major cities generally have a lower cost basis than
major city center costs by 1 5 basis points. Re-
mote locations, such as, Anchorage or Fairbanks
in Alaska, will generally have, to a greater degree,
higher prices compared to lower 48 states compara-
M
ble cities, due to increases in logistics and increased
shipping / transportation costs of materials and
equipment to Alaska, also keep in mind that weather
conditions in Alaska can be significantly different to
lower the 48 states.
SA
and various permitting issues) if company has built
or has operating facilities already in country reduce
location factor value by 0.04 0.08 points):
Location Factor A: is applicable to Refiner-
ies, Chemical Plants, Power Stations, Hi-Tech Type
Facilities (Pharmaceutical / Chip Manufacturing
Facilities), these facilities typically contain sophis-
ticated manufacturing / production equipment, these
facilities more often than not require complex piping
/ air conditioning systems, more often than not these
facilities are highly automated systems, many times
these complex equipment items / materials need to

be imported from North America, Europe or Japan /

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

Global Location Factors

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

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 SECTION D1 | 383.

O.O.M. Packaged Water Chiller / Recip. Compressor

C / W CONDENSER / H.E. / CHILLER / PIPING & LOCAL CONTROLS

CENTRIFUGAL COST PER TON ABSORPTION COST PER TON

TONS SYSTEM SYSTEM
100 $37,482 $375 $41,516 $415
200 $42,979 $215 $72,431 $362
300 $61,827 $206 $106,730 $356
400 $74,940 $187 $133,104 $333
500 $88,880 $178 $160,217 $320

Low Pressure Scotch Boiler

FIRED BY NATURAL GAS (MATERIAL & LABOR)
POUNDS OF STEAM / HOUR COST (M&L) COST PER POUND

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

plant cost if we built it in Mexico, would we save

his section in many ways will assist in condens- time and money if we used modules in the construct
ing the cost estimators estimating efforts and will effort, should we stick build it, lots of questions,
optimize the time needed to compile a front end coming at the estimator, of course all these factors
estimate. The end result should be a more consistent will impact the cost of the plant). This resource / tool
M
and accurate front end estimates. can be used to explain or support
Semi-Detailed estimating is a pow- the decisions made and is many
erful estimating tool. It is basically There are more than 200 times the genesis of the project(s)
a hybrid of two estimating methods diverse piping related scope and how the scope was
(1) Conceptual Estimating and (2) materials specified by the developed and how the final esti-
American Society for Test-
SA

Detailed Estimating, an estimator / mated cost was arrived at (how it

engineer familiar with this method ing Materials was compiled and possibly modi-
can save a great amount of time fied along the early stages of the
utilizing this method, it can be used projects life cycle). An estimator
to generate new estimates with an accuracy of or engineer who is skilled in producing front end &
+/- 15% it can also be used to check conceptual and semi-detailed estimates is a valuable resource to his
detailed estimates. The activity of Conceptual / Front or her employer.
End cost estimating is a first-rate tool for forecast- The (CAPEX) capital cost for the Engineering,
ing the cost of a CAPEX project (s). As we all know, Procurement and Construction (EPC) project(s)
many times the scope and timing of capital proj- comprises all of the activities and expenditures asso-
ects will typically be subject to numerous changes ciated with a specific building, plant or facility; the
during the projects life cycle (how much would it major activities will comprise of:
cost if we produced 10, 000 gallons per day, what if Front End Economic studies
we produced 14,000 gallons a day, what would the The Detailed Design Effort

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