EPCM Service Costs 1

[StacyFling]

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.

 

[SNORGY]

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.

 

[bimr]

Good post SNORGY