EPCM Service Costs
EPCM Service Costs
(OP)
Kindly advise what percentage should I consider for Engineering, Procurement and Construction Management (EPCM) Services Cost of the Total Project Cost.
Also for Erection and Commissioning what % of the Total Project Cost should be considered
Regards,
Stacy.
Also for Erection and Commissioning what % of the Total Project Cost should be considered
Regards,
Stacy.





RE: EPCM Service Costs
These answers, particularly Erection and Commissioning, can be highly sensitive to geographic location, industry sector, union versus non-union labor, etc. What region are you concerned with?
I am in upstream oil and gas EPCM in Alberta, Canada, so what has worked for me is:
I usuually go in with EPCM at 7% to 10% of TIC for green-field, and EPCM at 15% of TIC for brown-field projects.
If you assume erection and commissioning at 40% to 50% of TIC for non-union labor, you are probably close.
RE: EPCM Service Costs