Engineering Cost Compared to Total Cost
Engineering Cost Compared to Total Cost
(OP)
What is the engineering cost compared to total cost of a new process? I am interested in first time projects that have been unique to industry.
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Engineering Cost Compared to Total Cost
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Engineering Cost Compared to Total CostEngineering Cost Compared to Total Cost(OP)
What is the engineering cost compared to total cost of a new process? I am interested in first time projects that have been unique to industry.
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RE: Engineering Cost Compared to Total Cost
I will investigate and may send you more details later.
RE: Engineering Cost Compared to Total Cost
HAZOP at www.curryhydrocarbons.ca
RE: Engineering Cost Compared to Total Cost
RE: Engineering Cost Compared to Total Cost
RE: Engineering Cost Compared to Total Cost
The capital investment for engineering and supervision (design,engineering,drafting,purchasing,accounting,cost engineering,...)is approximately 30% of the purchased equipment cost or 8% of total direct costs of the plant with the following break down:
engineering 2.2%
drafting 4.8%
purchasing 0.3%
accounting,construction and cost engineering 0.3%
travel&living 0.3%
reproduction&communication 0.2%
TOTAL 8.1%
hope to be helpful.
RE: Engineering Cost Compared to Total Cost
Regards
RE: Engineering Cost Compared to Total Cost
I would caution you that the above percentages do not apply to very small process "projects"...
I have seen a few cases where the job was scoped out, meeting made with the clients,some small piping/valve changes were made, PIDs and HAZOPs were updated, new piping drawings were made, inteface with the fabricator etc. etc
The so-called "engineering" of these tiny projects can run 20-40% of the capital cost.....
Utility projects ( particularly those that are nuclear) can have high engineering costs also.
MJC
RE: Engineering Cost Compared to Total Cost
Ilve been doing chemical plant projects from conceptual design, through detail engineering and contruction for the last 15+ years. When we prepare the +/- ~20% cost estimate (based on pfd/pid/no takeoffs) we allow 15% of total installed cost for home office engineering, and 5% for field indirects including construction management for a 20% total project management and engineering category. 5% is also commonly the number used for front end (scheule A) engineering design, and would actually be in addition to that.
If you are the one doing the cost estimate I would go in with these numbers as they allow you room to work for the future phases of the project.
These numbers have worked for me on $2 to $30 MM dollar projects.
SG
RE: Engineering Cost Compared to Total Cost
RE: Engineering Cost Compared to Total Cost
DO NOT use any one fixed ratio.