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EPCM Service Costs

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.

RE: EPCM Service Costs

StacyFling,

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

Good post SNORGY

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