Budget Preparation for 2012 & 2013
Budget Preparation for 2012 & 2013
(OP)
Hi,
we are oil and gas operating company and we are in the phase of budget preparation but, all projects in early stage, no contract is awarded yet and budget proposal came.Shell i start to calculate the cost for each project and then add % increase annually or there is any other method.
I want to seek your advise in this regard, what is the starting point.
10815L
we are oil and gas operating company and we are in the phase of budget preparation but, all projects in early stage, no contract is awarded yet and budget proposal came.Shell i start to calculate the cost for each project and then add % increase annually or there is any other method.
I want to seek your advise in this regard, what is the starting point.
10815L





RE: Budget Preparation for 2012 & 2013
RE: Budget Preparation for 2012 & 2013
TTFN
FAQ731-376: Eng-Tips.com Forum Policies
RE: Budget Preparation for 2012 & 2013
IRstuff, could you please explain what is industrial practice is?, i'm new in this field and my company located in africa region.
Thanks
RE: Budget Preparation for 2012 & 2013
Pamela K. Quillin, P.E.
Quillin Engineering, LLC
RE: Budget Preparation for 2012 & 2013
OK, you might be new, but is your company? Are there no other companies that do similar work? How do they escalate costs? That is what industry standard refers to.
Again, your posting is very confusing about what stage you are at. Are you doing a bid for a proposal? Have you already won the contract? Who did the original bid? Why aren't they involved?
TTFN
FAQ731-376: Eng-Tips.com Forum Policies
RE: Budget Preparation for 2012 & 2013
escalation rates should cover inflation costs as a minimum and contingencies should already be included. Lacking anything else, base your future inflation on the past inflation or hire an economist.
RE: Budget Preparation for 2012 & 2013
TTFN
FAQ731-376: Eng-Tips.com Forum Policies
RE: Budget Preparation for 2012 & 2013
RE: Budget Preparation for 2012 & 2013
I was trained that project phases are:
- conceptual
- feasibility
- definition
- implementation
- start-up/closeout
I've always had estimates based on hard quotes prior to asking for funding to do the detailed engineering and implementation. I've not seen it done any other way.We allowed for 10% contingency so maybe it's a matter of terminology. Or perhaps I'm old and forgetful.
Pamela K. Quillin, P.E.
Quillin Engineering, LLC
RE: Budget Preparation for 2012 & 2013
Identification, -35% +50%
selection, -20% +35%
definition -15% +20%
execution (EPCM)-7% - +10%
add contingency to all estimates