0000005446 00000 n For starters, the DCS platform is locked in place. Project manager. Project estimating is one of the most critical components of PM. Indirect rate = $42,307 IC/$150,000 DC = 28.21% on total direct costs (remember to add TC, equipment costs and dollars over $25K for each subcontract back into total costs after determining indirect costs). %���� 0000001482 00000 n 0000003894 00000 n The Most Overlooked Total Installed Cost (TIC) Items - An Integrated Consulting Article. Lang method A method that is slightly more detailed and therefore needs some more project information, is the so-called Lang method. 2. Done poorly, or not at all and the project can incur significant impacts. The objective of FEL 3 is to narrow the TIC range to plus or minus 10 percent. 0.15: 0.55: 10: Instrumentation Labor (Inside Battery Limits - ISBL & Outside Battery Limits OSBL) as a percentage of Major Equipment (M.E.) 0000008173 00000 n They are generally paid in instalments based on regular dates or at pre-defined stages of completed work. 0000003069 00000 n Given the much reduced engineering required for the streamlined approach, this offers a quicker route to sanction than the conventional approach. Variability of structural engineer costs Fees are entirely dependent on the nature of the project and the circumstances of the appointment. $640,000. Projects in the process industries vary enormously in terms of cost makeup, but generally engineering costs somewhere between 10% and 20% of the Total Installed Cost (TIC). 58 0 obj << /Linearized 1 /O 60 /H [ 1125 357 ] /L 553864 /E 32645 /N 9 /T 552586 >> endobj xref 58 32 0000000016 00000 n Civil Engineering projects (Public Works) cost a lot! 0000029817 00000 n $10,000,000, resulting in a design fee percentage of . You get to deal with big budgets, design huge stuff, watch the dirt move, see it built, and hopefully see it used. stream 0000007687 00000 n percentage is developed by linear interpolation between the percentages listed and will be based on an estimated construction cost of . 0000001904 00000 n 0000001125 00000 n ���� JFIF � � �� C 0000001966 00000 n A less obvious benefit is the flexibility for optioneering. Direct Construction Labor as percent of Total Installed Cost (TIC). Application Update: Comprehensive front-end engineering and design (FEED) can reduce risk and lower total cost of ownership for small and large capital projects. The AIA said so. 8/23/2015 06:17:20 am. Figure 1,"Percent of Total Installed Cost vs. Project Size in Millions of Dollars," shows the result of applying a simple statisti-cal average across the entire project data population. Often, contractors will leave out essential additional costs, such as contingencies, taxes, delivery, fees, permits, design, etc. costs, which include “soft” costs such as engineering, permitting, and right of way acquisition, are given. Selecting engineering services for the apparent least cost is often false economy, and can be a disservice to the project and … Outsourcing TIC services to third-party service providers is a business practice used by multiple product and component manufacturers to ensure adherence to national and international standards of quality and safety, as well as to reduce recall costs and improve production efficiency by shifting non-core tasks, operations, jobs, or processes to an external third-party specialist for a long time. 0000001461 00000 n 0000029726 00000 n FEL 3 begins with more concrete assumptions than the earlier two phases. The year of expenditure dollars are inflated to a construction start date of 2012 with 3.5% annual inflation rate “End-to-end lifecycle.” Cost engineering is not a standalone activity; it must be an integral part of the full produce lifecycle, from initial ideation to ultimate disposal or recycling. As a thumb rule, for most Oil & Gas projects, typically, the engineering costs generally ranges between 5 and 15% of the overall CAPEX (Capital Expenditure), depending on the scope of engineering required, project size, complexity, brownfield / greenfield development etc. Useful for proportional cost checks (e.g., engineering cost to total cost). Reply. x���Mk�@����9ځ�ff�!�U�P�i��C������)u����$�1Q������W/[��O�������S����Ct� ����A����'��We�,`&�V�ǯ����&��sN�������(g (�ى�b��LC 3�M�N�&o�!x�"����hD�B��>N�2@Q��uH Zx�u�o�"�l߄ic$�,6aP���u��,��770�r ��(��q��>�d� msU2�@U�.(�v�?��RU��\��L���~�z��mY��k��b�]���Ɯ�vʈ����*��C2�m�? Instead of spending 2%-3% of TIC expect to spend around 0.5% using the streamlined approach. "Accounting records – You or your customer likely have good records based on accounting standards as to what previous projects cost. Large new build projects may attract lower percentage fees than small works to existing buildings, commercial work may attract lower fees than private residential work, works to historic or listed buildings may attract higher fees, and so on. endobj The big scale of them is a part of what makes the career fun. COST TIC = Equipment & Materials Costs + 709.2-2SC-003-2 PROCESS EQUIPMENT @ 50% Scale Platform 709.2-2SC-003-2 UTILITIES @ 50% Scale Platform HIPPO New MTO PROCESS PIPEWORK (4.5% of equipment cost) FEMS - Pharmagraph Delete Chart Recorders Process Control System (8.9% of equipment cost) Process Instruments (3.4% of equipment cost) %PDF-1.7 stream $.' The project cost is given both for 2006 dollars and for year of expenditure dollars. 0000008152 00000 n program, the impact of the scope change and cost overrun will drive changes downstream on other projects being executed. endobj MEP Design Fee (as percentage of the MEP construction) = 4%. Cost engineering is holistic in scope, considering all types of cost (e.g., capex and opex, together with recurring and non-recurring costs) across the entire value chain. 0.65: 0.35: 8: Indirect costs (Support Labor, Field Establishment, and Construction Equipment) as percent Direct Labor Cost. In cost engineering, cost estimation is a basic activity. endstream -�Z`Q~��7L�Xd&7Y3�00H E;0020��*Z��r���r�y�&�e��� ��L8��d��$�X �aa���Y��0 q�J� endstream endobj 89 0 obj 244 endobj 60 0 obj << /Contents [ 70 0 R 72 0 R 74 0 R 76 0 R 78 0 R 80 0 R 82 0 R 84 0 R ] /Type /Page /Parent 55 0 R /Rotate 0 /MediaBox [ 0 0 612 792 ] /CropBox [ 0 0 612 792 ] /Resources 65 0 R >> endobj 61 0 obj << /Count 1 /Type /Outlines /First 62 0 R /Last 62 0 R >> endobj 62 0 obj << /Title (Table of Contents) /Parent 61 0 R /A 63 0 R /Count 0 >> endobj 63 0 obj << /S /Launch /F 64 0 R >> endobj 64 0 obj << /Type /FileSpec /F (../misc/toc.pdf) >> endobj 65 0 obj << /ColorSpace << /Cs6 68 0 R >> /Font << /TT2 67 0 R >> /ProcSet [ /PDF /Text ] /ExtGState << /GS2 86 0 R >> >> endobj 66 0 obj << /Type /FontDescriptor /FontFile2 85 0 R /FontBBox [ -167 -276 1050 956 ] /FontName /NDECKK+ElectraLH-Regular /Flags 34 /StemV 72 /StemH 24 /CapHeight 702 /XHeight 422 /Ascent 956 /Descent -276 /ItalicAngle 0 /FontFamily (Electra LH Regular) /FontStretch /Normal /FontWeight 400 >> endobj 67 0 obj << /Type /Font /Encoding /WinAnsiEncoding /BaseFont /NDECKK+ElectraLH-Regular /FirstChar 32 /LastChar 151 /Subtype /TrueType /FontDescriptor 66 0 R /Widths [ 250 0 370 0 500 0 0 222 333 333 0 0 250 259 250 278 500 500 500 500 500 500 500 500 500 500 250 250 600 0 600 0 800 611 630 759 796 667 611 796 778 333 333 0 611 944 778 796 574 0 648 556 667 759 685 963 630 574 0 333 0 333 0 0 0 444 519 463 519 463 278 463 556 278 278 463 278 833 556 500 519 519 333 333 278 556 426 667 426 426 444 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 500 0 1000 ] >> endobj 68 0 obj [ /ICCBased 87 0 R ] endobj 69 0 obj 726 endobj 70 0 obj << /Filter /FlateDecode /Length 69 0 R >> stream <> I address that issue in it. Fossil - Small projects (<100k), engineering ~$10k or 10% Medium projects (100k - 500k), engineering 10-15% Large projects (>500k) - should do a detailed evaluation During a short stent in an Engineering firm doing HVAC/Plumbing - Total mechanical/electrical installed cost ~30% of … ����j�I���� зd ߦ> GeE^�I"��'�KH�ۄ���m�� 4-��m�#`�r�ۯ6��&c�#�Ĕf�p��h��`�-���*K����W�����C�mY`���{P�J���/o#��(d(�Bf�r�&�. <> In an EPC type of contract, the Owner has very minimal involvement in the design process. A FEED executed for ConocoPhillips optimized the project’s site selection, identified pipeline specifications, and provided refinery process design basis and preliminary piping and instrumentation diagrams (P&IDs) and other … Once upon a time the percent fee was the standard. PHASES ENGINEERING COST ( % of TIC) - Conceptual Design (Front-End Design 1) Range (A-B%) - … C. EXAMPLE: (Iconic Building) The design fee percentage will be calculated based upon a new Total Installation Cost (TIC): US$ 900 Million 2 0 obj [l�����\��6����#0�o1�]Mr��\X*J������Q��j���#���9�].�����*�:���i4ԃO-��� u�e�=@�G������ۗUj��Dg���Uo�"���ʐ�޽UZ,s������L�� 0000000987 00000 n <> 4 0 obj ! 6 0 obj 0000001689 00000 n �P �VwO�g�@AR ?-�e%d~a1��yQ��qr�Z�Xx��ʧ�%�]R������"���y��t]I�]�4�yE=�2'� <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 960 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> endobj Structural engineer. Rick Wolnitzek. cost, excludes M.E.setting. 0000002417 00000 n Services engineer.Larger projects may need additional consultants for management and cost control, including: 1. In any given project size, engineering is close to both the industry average and the expected 18 percent of TIC for refining projects. Cost estimating and cost management tools continue to be developed and will be added to the department’s estimating tool box as they become available. 0000007708 00000 n The 9% overrun becomes multiplied for the overall program. So utilization within a reasonable range has some, but not a dominant, impact on your optimum maintenance cost target. The primary benefit of the streamlined approach is it provides the information required for an investment decision at a fraction of the cost of conventional FEED. 0000002101 00000 n The fixed capital investment provides the … 0000001857 00000 n [a] The state of process technology, availability of applicable reference cost data, and many other risks affect the range markedly. Project Definition & Detailed Engineering Cost Growth 0% 5% 10% 15% 20% 25% 30% Project A Project B Project C Project D Project E Mix Greenfield 1 0 obj Posted Mon, 2011-11-14 17:38 by Millie Brinkley. 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