This estimate is normally developed by the process engineer and the cost
estimator only. There may be some participation from equipment vendors and
licensors in the case of licensed processes. There is seldom any further input
required from other engineering disciplines for this level of estimating.
The equipment summary process data sheets and any process specifications that
may be required are used to solicit equipment prices from preselected vendors.
In addition to the pricing data that will be used for the estimate, development
vendors should also be asked for delivery time required and sufficient details to
enable the operating cost of the item to be calculated. The delivery time required is
important to the management to establish a project schedule and life span for the
engineering and construction of the facilities. Later, process engineers will also
require this schedule to develop cash flow curves and data.
On receipt of the vendor’s pricing data, the cost estimator will apply factors to
each of the equipment account data to arrive at a direct field cost for each group of
equipment. This factored cost will be the multiplier of the equipment price which
will include the materials and labor to actually install those items on site. In
Table 16, this factor is shown as a composite for the whole equipment prices to
direct field cost. In this case, the figure developed was a multiplier of 2.5. These
factors are proprietary to respective companies, but most major companies do have
the statistics to develop their own factors.
The total cost is again obtained by factoring the DFC (direct field cost) as in the
previous “capacity factored” estimate. Note that in the case of this example of an
equipment factored estimate, a factor of 1.53 has been used slightly higher than that
in Table 14. This is to account for the field erection of the heater, which was not
known previously. This would impact on future home office engineering and field
indirects to some extent (Table 15).
The Semi-definitive and the Definitive Cost Estimates
It is not proposed to describe these two estimates in detail here. It is sufficient to say
that these estimates will include input from all engineering disciplines that are
involved in the engineering and construction of the plant or process. Indeed, after
the equipment factored estimate, the input from process engineers consists merely
of updates of the process design as it develops. However, Tables 16 and 17 show the
increasing amount of actual data as opposed to factored data that is included in
these two estimates.
The numbers for these estimates are not included in these tables, but the
crosshatched items show where normally firm cost data would be included. The
factored data are also indicated for both tables.
Although major manufacturing companies such as large oil companies and
chemical companies have sufficient statistical data to develop semi-definitive and
definitive estimates, these are normally left to the engineering and construction
companies. These companies develop the estimates and use them during the course
of the installation project as cost control tools for project management.
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D.S.J. Jones and P.R. Pujado ´
estimator only. There may be some participation from equipment vendors and
licensors in the case of licensed processes. There is seldom any further input
required from other engineering disciplines for this level of estimating.
The equipment summary process data sheets and any process specifications that
may be required are used to solicit equipment prices from preselected vendors.
In addition to the pricing data that will be used for the estimate, development
vendors should also be asked for delivery time required and sufficient details to
enable the operating cost of the item to be calculated. The delivery time required is
important to the management to establish a project schedule and life span for the
engineering and construction of the facilities. Later, process engineers will also
require this schedule to develop cash flow curves and data.
On receipt of the vendor’s pricing data, the cost estimator will apply factors to
each of the equipment account data to arrive at a direct field cost for each group of
equipment. This factored cost will be the multiplier of the equipment price which
will include the materials and labor to actually install those items on site. In
Table 16, this factor is shown as a composite for the whole equipment prices to
direct field cost. In this case, the figure developed was a multiplier of 2.5. These
factors are proprietary to respective companies, but most major companies do have
the statistics to develop their own factors.
The total cost is again obtained by factoring the DFC (direct field cost) as in the
previous “capacity factored” estimate. Note that in the case of this example of an
equipment factored estimate, a factor of 1.53 has been used slightly higher than that
in Table 14. This is to account for the field erection of the heater, which was not
known previously. This would impact on future home office engineering and field
indirects to some extent (Table 15).
The Semi-definitive and the Definitive Cost Estimates
It is not proposed to describe these two estimates in detail here. It is sufficient to say
that these estimates will include input from all engineering disciplines that are
involved in the engineering and construction of the plant or process. Indeed, after
the equipment factored estimate, the input from process engineers consists merely
of updates of the process design as it develops. However, Tables 16 and 17 show the
increasing amount of actual data as opposed to factored data that is included in
these two estimates.
The numbers for these estimates are not included in these tables, but the
crosshatched items show where normally firm cost data would be included. The
factored data are also indicated for both tables.
Although major manufacturing companies such as large oil companies and
chemical companies have sufficient statistical data to develop semi-definitive and
definitive estimates, these are normally left to the engineering and construction
companies. These companies develop the estimates and use them during the course
of the installation project as cost control tools for project management.
724
D.S.J. Jones and P.R. Pujado ´