Cost estimation is a specialized subject and a profession in its own right, but the design engineer must be able to make rough cost estimates to decide between project alternatives and … DEFS Engineering Design and Cost Estimates – Final Report 2/9/2007 placement of the dredged materials along Deschutes Parkway to provide intertidal habitat. Variable costs can be greatly cut through optimization techniques and intelligent plant design (Towler and Sinnott, 2013). estimating plant capital cost total plant capital cost tic = engineering design costs + tic engineering, procurement, construction management (@20%) commissioning & validation (@ 8%) Engineering Costs and Cost Estimating Cost Types: Fixed and Variable Direct and Indirect Marginal and Average Sunk and Opportunity Recurring and Non- Recurring Incremental Cash and Book Life-Cycle 2. The fixed capital investment provides the physical facilities. Ideally, of course, deliverables and activity based resource requirement would be established and costed by Individual estimators / project engineers to arrive at the overall engineering cost for the required scope. Cost estimating is one of three activities performed in project cost management. <>>> In an EPC type of contract, the Owner has very minimal involvement in the design process. CEF Guidance and Resources. Engineering Costs and Cost Estimating Engineering Costs. There is no one formula that will satisfy every situation and the chances of estimating what a project will cost exactly are almost zero. 2 0 obj Life-cycle costs refer to costs that occur over the various phases of a product or service life cycle, from needs assessment through design, production, and operation to decline and retirement. Engineering Costs and Cost Estimating Estimating Costs: Per-Unit Model WBS Model Cost Indices Estimating Benefits Cash Flow Diagrams 3. Download Bar Bending Schedule Spreadsheet to IS 2502: 1999 Breakeven point the operating - condition, such as output, at which two alternatives are equal in economy. This facility was designed by the Master of Engineering (High Performance Structures) group of 1999. Estimating methods & Techniques. endobj The direct costs represents the cost of any resource that has a direct relation with the project. Engineering Costs and Cost Estimating Engineering Costs. xœu‘KoÂ0„ï–üæ˜p0ëí$â@H+*Uê#j¨D!¥*¡¤þýÚ4Ðôuˆ³–vg¾£…Á YLÆ á£q7)¤ˆH3SŠ” Ö¶)î{h¤Ð¨O=DN“ùÖ´ìIq-ÊËèèÖ@+‹w/ 2/á@¸9—B$“¬e¨,3^¤piv,oÿäVωóaÞe&Tÿ%íШ’¢¦‘XEΠZ†½üR^,ÏTnÙã°ò:ÕúsYã?ƶîÞù4*›zÕÄ&Z,¶«¦FœFå|ÓlÖ«8‰æ;Ä6*‹É]ø[66~@u!EYýg~ÂÑ70Îm âÜ)NZ°Ï£xš½î[t‚ÎqØP®¬ëO#îô¤‚ƒÉ}“V)Cs^˝žõ°í 4eÊZ°÷Ëôe›SR±Ùí}4&š5ˆ]î(w{ÙjíÙ>¤×Ô?Óú 0+Ó Capital cost estimating is a critical part of any construction project, whether a major field development or a modest expansion. Return to Engineering Costs Variable costs can be greatly cut through optimization techniques and intelligent plant design (Towler and Sinnott, 2013). Staff costs (salary plus overhead) Principal: $150 per hour; Project Manager: $120 per hour; Senior Engineer: $100 per hour; Design Engineer: $75 per hour; CADD operator: $50 per hour A greater quantity of initial dredging, associated with higher initial costs, would most likely lead to And ultimately just as important as hard costs. GENERAL PROCESS PLANT COST ESTIMATING ( ENGINEERING DESIGN GUIDELINE) Page 14 of 119. DOI: 10.1080/09544820110038997 Corpus ID: 15317761. Estimating has traditionally had a very robust side A, an ade-quate side B, but a poor side C. Estimating engineering using a percent of TIC makes side C collapse. MasterFormat, often referred to as CSI MasterFormat™, currently provides WBS into 16 trade/materials based divisional categories (in the process of being expanded to 49 divisions). These costs should not be considered a handy slush fund to compensate for inaccurate estimating. Uniforma… Box 281 Bandar Johor Bahru, 80000 Johor Bahru, Johor, West Malaysia Kolmetz Handbook of Process Equipment Design GENERAL PROCESS PLANT COST ESTIMATING (ENGINEERING DESIGN GUIDELINE) Co Author: Reni Mutiara Sari Author / Editor Sometimes a very rough high level engineering cost for a future project might be needed for budget approvals, initial planning, contracting strategy discussions, benchmarking of bid prices or negotiating with the engineering contractors. Sorry, your blog cannot share posts by email. NOTE: “Contract” and “Force Account” above mean engineering and design services performed by contract or by an applicant’s own employees, respectively. No matter how careful and expert the initial estimate, no matter how excellent the design, no matter how skilled the constructor, the unexpected is likely to occur and must be intelligently gaged in each estimate. Question 3. A cost engineering reference book has chapters on capital investment cost estimation and operating cost estimation. Cost Estimating Tool for Engineering and Design Services Online Training: IS-1013: Costing - Estimates and the Cost Estimating Format An overview of using the CEF tool and reporting requirements are located in the Cost Estimating Format Standard Operating Procedure . <> Raw Materials Cost. endobj Depending on the size of the project and the amount contracted to the outside, engineering costs may include 30% of the ISBL and up to all of the OSBL, or only 10% of the ISBL. %µµµµ Once both parties are familiar with each other , this can drop to 50% or even to 25% of the subcontractors engineering effort.