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Review Design Cost

Review Design Cost

Review Design Cost

(OP)
Add to cost of design and fabrication of many equipments (pressuere vessels by ASME code and fired heaters by API 560) to a refinery, We need know approach costing of following activities developed by our reperesentative (Purchaser's representive) on site, versus (%) total cost of equipments :

- Develop of each Job Instruction
- Contact to potential vendors and selction of best
- Review of calculations
- Review of technical drawings
- Visit to fabrication shop (if necessary)
- Control of fabricaction schedule
- Thecnical Review and received equipments on site

How is recommended to define fees and budget about?

RE: Review Design Cost

Estimate man-hours required for each task, and multiply by appropriate labor rate.

RE: Review Design Cost

Estimating the hours is a very sharp double-edged sword.  If you use a P10 case you'll get a lot of bids, and lose money on most of the.  With a P90 case you won't get as many bids, but you'll usually do pretty well on the ones you get.  Even with a P50 case you'll be under actuals half the time and over on the other half--with the real possibility of a bias that puts you over on the big projects and under on the small ones.  

I generally use a P75 case and accept that I won't get all the jobs I bid on, but I won't lose money on many that I do get (I say that on the very day I lost my shirt on a hard-dollar bid that I blew).

David Simpson, PE
MuleShoe Engineering
www.muleshoe-eng.com
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