cost of engineering
cost of engineering
(OP)
I am investigating the "Average Cost of Engineering" on capital projects in individual industries? ie Agricultural, pharmaceutical, Food, etc.
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RE: cost of engineering
RE: cost of engineering
ie. 1. 2 story office building with cafeteria. what would you say the % of engineering ought to be? 10500 sqft per floor.
2. process packaging line epc - what would be an expected cost of engineering on capital cost of $11M.
I understand many different variables...
RE: cost of engineering
data gathering
preliminary planning
benefit / cost analysis
risk assessment
feasibility study
design criteria report
preliminary design
final design
post design / pre-construction services
bidding and project award
construction administration
inspection
quality control
quality assurance
operation and maintenance plans or programs
emergency action plans
is the work done for / by a private company, public works agency, industry, federal government?
Is the work done by a consultant?
Is there an element of risk that the consulting fee will cover? Is the work done time and material or lump sum? Are you building a dam, nuclear powerplant or just paving a parking lot?
RE: cost of engineering
RE: cost of engineering
- Concept/Prefeasibility Study, 1-2% of total installed cost
- Feasibility Study, 2.5-5% of total installed cost
- EPCM, 15-25% of total installed cost
That said, we always prepare a 'bottom-up' estimate at the task and deliverable level. The indicative ranges help as a 'sanity check' on our estimates.
RE: cost of engineering
RE: cost of engineering
http://www.apegm.mb.ca/keydocs/cguide/index.html
One of the methods is to use a percentage of construction cost method. The guidelines have three ranges, basic, complex 1 and complex 2 fees.
Some examples are Basic is municipal design, complex 1 is dams and complex 2 is sewage treatment plants.
The suggested percentages fees are also dependant on total dollar volume of construction and range from 6 to 14% at the lower dollar contracts and from 5.5% to 9% for larger dollar contracts.
They are given in this graph:
ht
Hope that this helps
Rick Kitson MBA P.Eng
Construction Project Management
From conception to completion
www.kitsonengineering.com
RE: cost of engineering
From my experiences in power utilities,
Nuclear - small design work - minimum of 120-150 man-hours engineering
- large design work - need a detailed evaluation
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 overall construction. Engineering - Mechanical and Electrical - ~25% of architectural fee.
RE: cost of engineering
In the pharmaceutical industry there is the issue of validation, which drives engineering costs up tremendously.
Example: The eng. costs for a small sterilizer that needs "validated" are about $110,000. For one that does not require validation is about $40,000. (Validation is a FDA requirement to require piles and piles of testing and documentation).