2009 Front End Conceptual Estimating Yearbook

2009 Front - End / Conceptual Estimating Yearbook 8th Annual Edition

• Front End / Conceptual CAPEX Estimating Issues • Capital Cost Estimating Fundamentals • Capital Cost Estimating Methods • Benchmarking Data • Exponents / 6/10 th Rule Scale Up Values • Ratio / Percentage Factors and M.E. Multipliers • Square Foot / M2 Unit Prices (60 + Building - Facility Types) • Unit Prices (Labor & Materials) 1,000 + cost line items • Location Factors, Engineering / CM Fee’s, Labor Rates • Process Equipment Prices (85+ pages) • Front End / Semi-Detailed Estimating Systems

COMPASS INTERNATIONAL

COMPASS INTERNATIONAL Table of Contents Section / Reference Number A-1 Introduction to Capital Cost Estimating: • The General Forecast for 2009 and beyond: • The Project Control Cycle: • Cost breakdown of a typical Chemical process facility: • The CAPEX Estimating process: • Presenting the estimate to Senior Management: • Optimizing the estimating effort: A-2 - Capital Cost Estimating Fundamentals: • Questions that need to be asked: • The Estimating four step process: • Capital Cost Estimating Terms: • Estimating Types / Accuracy: • Engineering Deliverables & Budget: • Pricing to compile various estimates: • Resolution allowance / Undefined Scope Allowance: • Developing an Estimating Plan: A-3 - Capital Cost Estimating Methods: • CAPEX estimating (10) approaches: • Various factoring methods: • Seven historical Ratio / M.E. percentage cost models: • Typical Solids, Fluids M.E. multiplying values: • General Process Industry Benchmarks • Summarizing the CAPEX Estimate: A-4 - Basic Man-Hour Benchmarking Data & Reference Tables: A-5 - Site Selection / Cost Data Sources / Estimating Checklist: A-6 - Value Engineering / Change Orders / Claims / Contingency: B-1 - Scale of Operations / Exponents (150 + Plants / M.E. items): B-2 - Additional Estimating Factors Cost Models (7 examples): B-3 - Square Foot / M2 Estimating Data (104+ Buildings / Facilities) Revamp / Rehabilitation cost values. B-4 - Unit Price Data (1,000+ unit cost items): B-5 - General Cost Estimating Data. • Location Factors (200+ North American / International Cities): • International Location Factors / Productivity: • Engineering / Engineering / CM Fee’s: • Union Labor Costs (10 trades): • Open Shop Labor Costs (10 trades): • Sales Tax (50 US states and 10 Canadian Provinces): • Inflation / Compass Cost Index: • Rebar / Pipe / Concrete / Bricks Pricing (14 cities): • General Condition / Preliminaries Data:

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C-1 - Major Equipment / Process Equipment Cost & Labor Models (125 # Major Equipment Items). D-1 - Front End / Semi-Detailed Estimating Methods. • Front End Issues / Types of Data Required: • Benchmarking Metrics: • Detailed Design / Engineering Metrics: • Civil, Structural, Architectural / Miscellaneous Costs: • Structural Steel Costs: • Facilities / Buildings Costs: • Piping / Insulation Metrics: • Electrical Systems: • Instrumentation: • Security Equipment / Robotics: • Miscellaneous estimating items: ISBN 0-9725845-2-8

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About the Firm Compass International Consultants Inc. was founded in 1992 (C.I.C.I) and is a provider of estimating services, international construction cost data, location factors, training seminars, value engineering, estimating support and conceptual construction economic cost data. Compass International is backed by an excellent staff of experienced Cost Engineers, Cost Estimators, Civil / Mechanical / Chemical Engineers and Economists. Web site: http://www.compassinternational.net Mailing Address: Compass International P.O. Box 1295 Morrisville, PA. 19067 - USA Telephone / Fax (215) 504 9777 E Mail [email protected] [email protected] [email protected] Acknowledgements: This data source is the result of more than twenty years research and data collection. The information contained in this data source was collected from more than 50 + completed CAPEX projects (Refinery, Chemical and Manufacturing facilities) located in North America, the UK, Europe, Asia, Africa and South America valued between $0.50 million to over $3 billion. The data is based on Compass International’s twenty year old cost library, augmented with latest cost and labor data from International Development Banks and Agencies, European Union Commission Reports, various Country National Libraries and Bibliotheques from around the world, various Government Information Agencies, Global Quasi-Governance Organizations, an assortment of Government Trade Promotion Departments / Labor Departments, numerous trade magazines, hourly and annual salary rates from US / Overseas labor unions, professional society articles, an assortment of newspaper / magazine articles, various almanacs / directories / tables / reference books, internet data and various cost – construction related publications, the cost models and tables have also been augmented by a number of personal estimating libraries (that in some cases are more than twenty five years old), this information has been audited, expanded upon, modified and calibrated and refined to today’s construction methods and installation applications. We would like to express our sincere thanks to the many engineers, contractors, vendors and other individuals (friends and colleagues) too many to mention who have given freely of their advice, input, time and knowledge so that this data source could be produced for the benefit of individuals that have an interest in this subject matter. We welcome any comments or data that could be used in future updates to make this database more complete and accurate. Copyright © 2003 – 2009: By Compass International. All rights reserved. This information may not be reproduced or transmitted in any, electronic or mechanical means, including photocopying, faxing, scanning, uploading, copying and pasting, recording, or by any information storage or retrieval system without permission of the publisher; it is illegal and punishable by law. Compass International makes no warranty or guarantee as to the accuracy and completeness of the estimating data contained in this publication and assumes no liability for damages that are incurred by utilizing the data contained within this publication. The data is conceptual and should be considered +/- 15% accurate, the cost and man-hour data contained in this database should only be used as an early budgeting tool or as a check against received bids. The publisher recommends obtaining a number of lump sum quotes and bids that are supported by a scope of work statement and a timeline of when the work would be completed, reliance on the data contained in this document could result in losing bids or worse still losing money

SECTION A - 1 INTRODUCTION TO CAPEX ESTIMATINGAS IT RELATES TO FRONT END / CONCEPTUAL - CAPEX ESTIMATING Introduction to Front End / Conceptual Estimating: “A Front End / Conceptual estimate is an estimation of the cost of a proposed CAPEX project based on initial conceptual engineering and design data, even though the specific details are not clearly revealed or specified at this early stage of the proposed CAPEX project, an all-inclusive value is required to determine the viability of the proposed undertaking”. A front-end estimate / conceptual estimate is usually the first step in the CAPEX Estimating process. This publication has been compiled to assist all construction professionals with an annual reference guide that will help them with “quick” reasonably accurate construction prices for work associated with chemical plants, refineries, manufacturing facilities and other related industrial plants. A vast number of challenges and hurdles remain in place for “Process / Manufacturing / Chemical” companies (and there decisions to build new / revamped facilities): as we look into the future as of late 2008, the issues to be faced in 2009 and beyond include numerous issues (that have financial, construction and operating cost consequences) that will need to be gauged and planned for, if the decision is made to proceed with the EPC effort. The Process / Manufacturing / Chemical industry as the engineering / construction professionals knew it in the early years of the last decade will have changed dramatically in the next two or three decades. Emerging economies such as China, India, Brazil and South Korea to name but a few will continue to forge ahead in developing their R & D and manufacturing bases, there is an increasing anxiety in some of the more developed nations as to how this will all play out and what impact this manufacturing / economic “sea change” will have on the future employment opportunities, facility costs and engineering / construction activities in Western Europe, North America and around the world, hopefully this publication and it’s future updates will assist the reader in navigating the understanding the dynamics of this situation, and the associated engineering / construction related costs specific to Process / Manufacturing / Chemical facilities. THE GENERAL FORECAST FOR 2009 AND BEYOND: (Specific to the Process / Manufacturing / Chemical Industry and to the construction of these facilities). •

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Barack Obama won convincingly the 4th November 2008 American General Election, he becomes the first African - American to take up office in the White House and he will become Americas 44th President. Will his future policies have an impact on global construction costs, only time will tell? The worldwide economy is under extreme stress, this has been caused by the global economic / finance downturn. Global construction activity will experience a significant slowdown that could last anywhere from 2 – 4 years. 2009 will be a pivotal year for the global economy, trade imbalances, budget deficits, the banking / finance problems, entitlement programs, energy prices just a few of the issues that will impact the global economy and the global construction market.

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The enduring pain from the global finance / credit crunch is impacting all US / Global construction sectors, the question is how long will it take for this malaise to improve. As much as 75% of all new refinery / gas plant construction projects have been put on hold, with oil prices in the $35 - $45 a barrel range and with the possibility that prices could go lower, it might be a long time before these projects come to life again. The actions of Russia and the Ukraine in blocking gas supplies to Western Europe have still to play out; gas is still not flowing as of 1/17/2009. The Israeli move into Gaza in early January, 2009 does not bode well for Middle East peace and future construction prospects in the Middle East. Inflation in the USA will continue to rise in 2009 averaging 3.5% for the year. Volatile energy and food prices will be the main drivers of this significant rise in prices. The USA had a 7.2% unemployment rate in January, 2009; President Obama hinted that this could rise to 10% by the end of 2009. Uncertainties remain as oil and raw material prices increase relentlessly and then decrease just as dramatically i.e. copper, steel, glass and lumber, it difficult to forecast these costs as we move into 2009, will oil head back up to $140 again, or will head south, below $30 a barrel, will we see another 1985. Growing pessimism about the German, French Italian and UK economies as of 1st Q 2009 (they re all in recession) is impacting the Euro / Dollar exchange rate, the forecast for the future growth of the Euro zone is cloudy going into 2009. Spending on power plants, wind and solar facilities, and transmission lines soared in 2008. In the USA it is forecast that 20 - 30 new nuclear power plants will get green light to proceed in 2009. In the UK the Prime Minster announced that 6 - 8 new nuclear plants will be ordered in the next year or two. Construction related to US and overseas onshore oil and gas development will slow down in 2009 with oil in the $40 a barrel range, $50 billion worth of tar sand projects in Canada have been cancelled as of 1/2009, Saudi Arabia has cancelled half a dozen major refinery projects also. Some ethanol plants are now being delayed or cancelled, due to negative publicity of increases in animal feed and food costs. With the increase in corn prices, this could signal problems for ethanol industry, the 200 or so producing ethanol facilities in US may have to be retrofitted to use a combination of switch grass, sorghum, palm oil, hemp, wood waste bark, sawdust, sugar cane rapeseed and possibly solid waste. The US construction market related to automobiles, housing, and lodging will slow or decline significantly in 2009. Residential construction and commercial construction will decline in 2009 due to the sub-prime lending crisis Lumber prices in US have declined 10 - 12% in the last year due to drastic slow down in housing market. In 2009 will a continuing major interest / activity in Tidal / Hydro, Fuel Cell Technology, Nuclear, Geothermal, Solar (Photovoltaic) Wind Power The OECD reported in October 2008 that the Euro zone plus Japan economies look to be entering a long period of recession for 2009 and 2010. VW in mid 2008 announced the construction of a grass roots auto plant in Tennessee, the facility will initially produce 150,000 cars per year, and the facility is forecast to cost $990 million.

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Some experts are forecasting $25 a barrel oil in 2009; this will stymie future CAPEX oil and gas projects, most probably. In the petro-chemical industry Saudi Arabia, Venezuela and Iran are set to become formidable players in the global oil / chemical market, these countries could account for 30% of the world supply by the year 2011. Will inflation experience a “spike”, with $120 oil and the pressure on commodities this situation could change dramatically in 2009? On the political front the USA faces some serious decision making situations in 2009 especially with a new President, specific to Russia and Georgia, North Korea, Iran, Iraq, Venezuela and Pakistan (the next big problem country). Globalization has had a awe-inspiring impact on the automotive, manufacturing and the pharmaceutical industries, these industries are in transition, in the next 5 – 10 years there will be a significant consolidation, instead there being ten major global players in each industry there will be five or less, these industries in many ways are following the same flight path / happenings of the US airline industry, remember Pan Am, TWA, and Eastern Airlines in the 1990’s – history has a habit of repeating itself. The growth in infrastructure and general construction projects around the globe is producing strong demand for qualified engineering and construction professional and skilled workers, this situation plus the spike in escalation is causing significant shortages in the global construction market, this publication has been produced to assist various construction professionals with a “road map” to navigate through these complex procurement issues. Geopolitical risks include: 1. The world economic downturn (could it turn into a depression). 2. Iran producing an atomic bomb and the ramifications of this. 3. Venezuela flexing its regional muscle and its future nationalization policy, with falling oil prices this problem may go away. 4. Russia’s future energy policy, consider the recent gas disruption (1/2009). Lower energy prices are not good for Russia growth plans. 5. The continuing war against al Qaeda in Pakistan and Afghanistan.

Additional topics and questions that could impact the Process / Manufacturing / Chemical companies in 2009 - and consequently the engineering / construction marketplace, include: • • •

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The recent hostilities between Russia and Georgia, together with Ukraine (gas shutdown) and the consequences of these to the global construction market: Worldwide population growth, especially in Asia and South America, we will most probably see 8 billion people on the planet by 2015. China and India are seeking long term toll manufacturing / supply contracts countries such as Brazil, Venezuela, Nigeria, Angola, Algeria, Saudi Arabia, Iran, Qatar and the UAE, these countries in the past dealt exclusively with North American and Euro zone chemical / manufacturing companies The rapid pace of technology advancements: (wireless technology / faster chips / communications etc.). The chemical / manufacturing industry will continue to focus on reducing production / manufacturing costs.

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The rapid increase of commodity prices, such as steel, copper, aluminum, lumber and cement. The drive by big North American, Western European and Japanese Automobile / Chemical / Consumer Product companies to establish a manufacturing presence in China and India, this trend should continue for another decade at least. The globalization and integration of the world economy: with countries such as Brazil, China and India becoming “global” players in the next five years. The ongoing U.S.A. Trade imbalance: and the consequential impact of a “falling” US dollar to the world economy, this trend seems to have relented as of September 2008. Increases in military hardware and manpower expenditures by China: and its future worldwide consequences. The impact of $147+ a barrel oil (as of June, 2008) and the economic impact this will have on the world’s economy and the drop in price to $40 in January, 2009. The ability for Automobile / Capital goods manufacturers to develop and to bring to market there products more rapidly, the use of 3D / digital design to ensure that piping / utility collisions are avoided in the design and construction process, thus minimizing re-work and generally speeding up the design process.

To see how things have changed in this industry in the last five years is the fact that China will have a construction market as large as or bigger than the USA in the next decade or two, the lion’s share of future CAPEX expenditures appear to be headed overseas, it would appear that the days of big corporate engineering / estimating departments would be over in North America. This situation was one the main driver for producing this database, the publisher of this database determined that there would be a need for this “type of information”, the writer(s) have always wanted an “estimating note book” that they could carry around with them to produce or audit / check CAPEX estimates – hence the creation of this book and it’s companion publications. The (CAPEX) capital cost for the Engineering, Procurement and Construction project (s) comprises of all the expenditures associated with the primary creation of the specific plant or facility: this usually embraces the following described direct and indirect construction and engineering related elements: “Project Control” (Capital Cost Estimating, Planning and Cost Engineering) is understanding were the project is in relation to it’s planned goals, it is being aware of where the project is headed and communicating these findings with the appropriate project stakeholder so that constructive mid course solutions can be implemented to maintain or improve the current budget and schedule, this publication is focused on the activity of Conceptual Cost Estimating – CAPEX estimating, a flow diagram is depicted on the following pages indicating how conceptual cost estimating “fits” into the overall Project Management / Control cycle. CAPEX estimating specific to future capital expenditures related to “Process / Manufacturing / Chemical” facilities involves the collection, review and condensing a wide assortment of information and data, some of the more significant items and work tasks are as follows: (1) Owner front-end costs including internal ROI studies and marketing analysis reviews, Research and Development costs. (2) Property or land purchase or leasing / lease back arrangements, including perhaps third party tolling arrangements (including any site improvements and modifications). (3) Production of Front End Engineering – Architectural Design Deliverables - Any front-end architectural or engineering economic - feasibility studies completed internally or by a third party i.e. A / E or EPC firm: (4) Production of the “Issued for Construction” - The Architectural - Engineering (A / E) (EPC) design effort (production of specifications and

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design drawings and project design deliverables) including reproduction expenses and associated travel costs. (5) Project Management activities associated with directing the CAPEX project includes owners and contractors staff. (6) Procurement activities – the buy-out of the work (scope), i.e. purchase orders and construction contracts: (7) The actual field construction effort, including site purchasing together with major equipment (which could be bought out in the home office, bulk and engineered materials, i.e. concrete, stone and lumber. (8) Field indirect support including field supervision of the construction scope, trailers, storage sheds / small tools and consumables. (9) Construction equipment requirements i.e. cranes, welding equipment and the subsequent maintenance of this equipment, and Field establishment i.e. (Division 1 or General Conditions / Preliminaries): (10) Construction Management of the project, including any third party NDT inspection / testing requirements, and, (11) Other items could include contractors overhead, fees, freight, bonding; insurance (BAR and workers compensation) and local state taxes / B&O taxes, (VAT / GST on overseas applications), tariffs and duties, specific to the project. There are a “bunch” of related matters (perhaps we could call it (12) that may need to be considered includes: expense items (relocation), demolition work, owner provided equipment / materials – free issued to the contractor, furniture and fixtures, spare parts, initial chemicals and vendor assistance, start-up expenses, commissioning and possible validation activities. The extent of each of the above cost elements of course is based on the type of facility (i.e. unique – first of it’s type (needing new utilities or an continuing ongoing production facility, that has a history and has an existing utility infrastructure in place), magnitude or scale of operation – small operating unit i.e. 2 or 3 operators or a toll manufacturing plant or a large operation with 100’s of plant operators, it’s operation – 24 / 7 / 365 days or 8:00 to 5:00, plant control philosophy and the actual location of the CAPEX project (s) North America or overseas. The essential principles of Project Control are to provide the best technical and business solution to the business unit contemplating a new facility expansion(s) or upgrade(s). The initial description of a project scope begins at project commencement, it is accomplished with the establishment (creation) of an “approved” design basis that is accepted by management (accepted to a least go to the next step of project approval cycle), this particular section will not get into how the scope of a capital project is developed, however it’s purpose is to provide “basic” details of how to successfully estimate early / front end scopes of work. An accurate Front End / Conceptual Cost Estimate can be the first step in the successful execution of a capital project, this “first” capital cost estimate should provide the project team with early (a “budgetary” and an initial path forward document) - information specific to cost, schedule, manpower requirements for the usual activities associated with a Engineering, Procurement and Construction (EPC) project, the tasks that will derive benefit from this “first” estimate are: • • • • •

The “initial” capital cost of completing the EPC effort. Detailed design (The approximate Engineering / Design staffing needs). Procurement. (The number of Purchase orders and construction contacts required). Field Labor (The peak manpower needs) / Construction Management. (The number of individuals needed to supervise and ensure the project is completed on time and in a safe manner). The major milestones associated with the CAPEX project i.e. start and finish date.

The decision on were to locate a new Chemical Facility / Manufacturing location(s) is many times a tough call, an easier said than done undertaking, it needs the input from

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corporate engineering, corporate finance personnel and the business units senior management (the folks that will take ownership of the completed facility) this decision is one in which the cost estimator can play a significant role in finalizing the manufacturing process and possibly selection of the final site location, what are some of the key site selection factors that need to be analyzed and estimated, some of these factors are listed below, what is the 5-10-15 year growth plan for this facility / and or product, is this were future growth for this product will occur, i.e. South East. Asia (China or India) or South America, were should the new facility be built, at an existing company owned facility, on a new grass roots location, or should we renovate an existing facility to accommodate this new product, should the capital cost estimate include land purchase, is any demolition or site remediation costs to be evaluated, are there differing manufacturing process (steps) that can be used, are there cost differences in the operating costs of these processes, will the new facility be given grants, tax holidays and or incentives by the state or country that the new facility will be located?, will this facility new or add on require new services and utilities, will we need to train / educate the plant operators, will the new plant require state of the art control systems, or can we obtain a competitive advantage by using low cost labor to operate the plant and minimize costs on the I/C account, lots of questions need to be tabled and answered during the CAPEX estimating effort. These questions and many more will have to be analyzed in some detail prior to proceeding with the prospective CAPEX project. In the early phases of the project the Front End / Conceptual Cost Estimate should provide a framework to measure trends and to determine key project milestones. The number one indispensable principle of Project Control – Cost Estimating is to deliver the best technical and business solution to the business unit considering or bidding on a new facility expansion(s) or upgrade(s), together with value (which of course is part of the business solution) for future CAPEX investments, the project team must deliver the correct business solution at the front end stage(s) of CAPEX project, the scope, needs to be to some extent defined, some front end design work (basic design) needs to have been completed, various manufacturing / production schemes need to have been considered and scoped out to determine there viability. The decision to engineer / procure and construct (EPC) a new Chemical / Manufacturing Facility, or to upgrade, revamp or modernize an existing facility is many times based on future business growth, maintaining market share and to ultimately to increase profits and ROI. Chemical / Manufacturing Facilities must be designed to meet the goals of (1) Safety, (2) Quality of final product and (3) Profit – Return on Investment. The conceptual estimator / engineer is an person who can predict / analyze the “future” cost of an Engineering, Procurement and Construction (EPC) project(s) with a very modest (minimal) amount of “real” data regarding the details of the project (basically there are no detailed design deliverables at this stage – the future “CAPEX project” is in it’s infancy, very much in the speculative or conceptual mode), typically these types of estimates are required at the very front end / early stages of a project, they are typically used to: 1. Evaluate the capital costs associated with a new or add on to a current facility. In addition they can be used to determine the viability of producing new products at a certain location. They can also be used to audit and initially checkout the proposal of an A/E firm or EPCM contracting company. 2. Used in the traditional annual or five year capital expansion / forecasting effort i.e. does the business outlook in Chile enable the project to produce an attractive ROI now or in the next two years.

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3. Used as a tool to determine the best EPC approach to maximize the owner companies Return on Investment (ROI). They can also be used as the management “go / no go” decision tool. The Project Control cycle - is the methodical review and analysis of the projects (Scope of Work) from a cost / schedule standpoint. The following flow chart demonstrates the coordination that is required to have “accurate” Project Control on a CAPEX Project.

Project Manager Engineering Data Procurement Data Construction Data Project Controls Cycle

Capital Estimating

Planning / Scheduling

Cost Engineering

Regular updates / communications to the Project Manager of any departures from the current cost estimate and schedule and counseling the Project Manager / Project Team on any potential (EPC) problems is the job of the Project Controls Group and possible solutions that will ensure the projects budget and schedule is maintained or optimized, this publication focuses on Capital Cost Estimating element of the above Project Control Cycle. The foremost purpose of the compilation of a capital cost estimate is to transform engineering / design, procurement and construction deliverables and data into an accurate prediction of current and or future construction cost(s). Capital Cost Estimates (CAPEX) - what are they used for: • • • • • • • •

A tool for analyzing various case studies / business economic models: An assessment of costs and resources to complete a specific scope of work: An appropriation for funds, appropriation for expenditure - (AFE): A basis for analysis of contractors and vendors bids and submissions. The supporting documents that are the basis of an offer / bid to complete a work / scope item: A basis for future cash flow requirements and forecasting. A project control tool: (used to monitor and control the EPC effort). A benchmark tool for determining future project costs and possible use as a historical data tool for future CAPEX estimating applications.

Issues and factors that can influence a capital cost estimate, this list together with other data within this publication should be used as a checklist to ensure that the cost estimating effort is completed and fully budgeted (i.e. scoped out):

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# 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 6 7 8 9

Issues and factors that can impact the bottom line of a CAPEX Estimate Engineering Production of design deliverables / specifications (who produces Owner or EPC firm / when). C / S / A design deliverables (who produces / when). Process Flow Diagrams (who produces – Owner or EPC firm / when). E/I design deliverables / Control Philosophy / Classification (does owner have a preferred vendor who produces outline spec / when). Piping design and detailing (who produces – does this exist – has Owners Engineering group produced the first draft of this document / when). Relevant codes to be utilized. Other Engineering issues. Procurement Long lead items (M.E. items) some complex items such as a multi-stage compressor could take as long as twelve months to design and produce. Freight issues. Import duties. Bulk material purchasing. Expediting. Inspection / trafficking / performance testing. Warehousing. Early delivery bonuses / payments. Other Procurement issues i.e. spare parts, vendor assistance. Construction Location of facility (USA or Overseas). Weather issues (cold or hot climate). Productivity expectations of workforce. Union / Non union / Merit Shop construction approach. Plant start up activities. Labor availability and possible overtime / shift work requirements. Protection of the completed work. General Conditions / Preliminaries. Construction equipment usage. Establish camp / Establish concrete batch plant. All required permits. Small tools / Consumables. Guards / Security. Special safety issues. Cleaning protocols / special requirements. Project Specific items Completion date (Normal schedule or fast track schedule). Escalation / Taxes. Operator Training issues. Owner costs / Owner provided items. Contractual issues / Type of contract. Warranty issues (procure extended warranty period). Payment terms / Financing costs. Currency impact issues. Insurance issues (BAR / Umbrella / Bonds).

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Liquidated damages / Consequential damages clauses. Bonus / Penalty clause for early or delayed completion. Contingency issues (technical and general contingency).

The following pages and sections A -1, A -2 and A -3 of this database will describe in some detail, the following types of capital cost estimates, a more complete description of these estimates and hybrids of these estimates are discussed in section A-3. •

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Order of Magnitude Estimate (OOM). Typically arrived at by utilizing cost capacity curves, SF / M2 / M3 units, ratios, factors, exponents and historical percentages, for example barrels per day, $’s per MW, tons of production per year. A Preliminary Estimate / Funding Estimate. Typically prepared when the conceptual / detailed design is 20% - 50% complete (or when the detailed design is perhaps 5% - 25% complete, or even less) Many times based on early PFD’s early P&ID’s, preliminary plot plans – indicating were major equipment is located – many times the operation(s) group has not bought into these early concepts and they have a habit of moving around, however there is some realism usually associated with these concepts. A Definitive Estimate / Control Estimate / Validation Estimate with the detailed design effort perhaps 30% - 50% complete, more information is known, bids / quotes have been obtained for some of the key major equipment, initial quantity take-off’s are available for civil, piping, electrical and instrumentation, the scope of the engineering effort is pretty well known. A Lump Sum Bid – Hard Money / GMP Estimate. A lot is now known about the project, the scope of work is reasonably “nailed down” the detailed design is typically 70% - 100% complete, bulk materials and major equipment (long lead items) are on order or some of the construction work is under way i.e. site work, piling and foundations may be partially installed).

The following table will give the reader an appreciation of were the “big cost drivers” are in a typical chemical facility project, not surprisingly these values will not be the same for each specific facility, however these values can be used as a benchmark or guide, the percentages are based on numerous (30+) projects that have been executed in the last ten years, they are a mix of new and revamped CAPEX projects with perhaps 70% of the data coming from “new” $5 - $45 million chemical and manufacturing facilities. Typical Cost Breakdown of a new Chemical / Process related Facility (constructed on an existing facility with available utilities – that may need some upgrading): Category Major Equipment (includes freight) the value for freight is 3%. For overseas applications requiring ocean freight this number could increase, ocean freight typically is 7% - 10% of the M.E. value. Materials (Bulks / Engineered). Labor costs – including sub-contractors. Field In directs / General Conditions / Preliminaries. Detailed Design / H O support / Procurement / PM (includes Owner Engineering) Includes all necessary

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Percentage Value 22.9

Percentage Range 18 - 27

21.5 24.3 11.7 13.9

17 -26 19 - 29 9 - 13 10 - 17

design deliverables. Construction Management (incl CM Gen Conditions) Total

5.7 100.0

4-8 100.0

Note: These values are appropriate to Inside Battery Limits (ISBL work) – Outside Battery Limits (OSBL scope / work) is not included in above values. Contingency is included in above values (it has been pro-rated into the above percentages). The activity of capital cost estimating is at best a time-consuming and an easier said than done undertaking, trying to forecast the many project variables such as weather, productivity, labor costs, major equipment, field in directs, bulk material quantities and unit costs, taxes and escalation and to attempt to look into the future, say two or three years is very difficult and demanding, encumbered with potential dangers (future events are of course difficult to anticipate, for example, who would have thought in the early 2000’s that a barrel of oil would cost $140 + a barrel in January of 2009 and then drop like a stone to $35), hopefully this publication will shed some light on this important topic(s). A CAPEX capital cost estimate can be considered as one of the following: •

• • •

The bottom line cost / bid for completing an Engineering, Procurement and Construction effort, it is the work effort of determining all the numerous cost elements which will be required for a particular activity / (EPC) construction project and arriving at a total cost value for completing the itemized scope of work (basically a shopping list of required items). A cost summary together with a description of work (scope of work / mission statement) specific to a project to be performed or considered. A current photograph / snapshot of an (EPC) project(s) current scope of work together with a cost value of its anticipated final cost. A judgment / opinion of final cost by a person(s) / cost engineer(s) / cost estimator(s) / project team that has considered the SOW to be performed.

This data source and the basic focus of this publication is targeted primarily at the manufacturing / process industry / chemical engineering / pharmaceutical / industrial sectors, 60% to 70% of the “cost estimating / benchmarking data” contained in this data source is targeted on these specific industry sectors, however it is not aim of the database to exclude other construction industry sectors, some of the following benchmarks and data can be use in estimating the cost of General Buildings (Airports, Logistic centers / Warehouses, Office facilities, Public Buildings, Schools, together with civil engineering related projects etc.) some of this data is outlined / indicated in section B 3, B 4 and C 1, this data can be used in the production of cost estimates for other “specific / one off” engineering and construction discipline items such as demolition, civil, site work, architectural, engineering and construction management fee’s, mechanical, electrical and instrumentation / controls and insulation (refer to section A 4 and D 1 for examples of these topics) which may be required and budgeted using similar / parallel conceptual / front end estimating methods and procedures described in this data source, this should allow a cost estimator the ability to compile a reasonably accurate front – end CAPEX estimate. The main goal of this publication is to assist the user in not “dropping the ball” and making erroneous front end / conceptual type capital estimates and basically to provide a more focused and disciplined approach in producing a more accurate and concise front end / conceptual estimate(s) – i.e. to shed some light on an

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area of cost estimating that can be a challenge to new young estimators that are starting out in this business and need an initial road map to get started. The responsibilities, mission statement and basic activities of capital cost estimating (the “job”) is for all intents and purposes a data gathering activity (getting your arms around the projects scope and documenting it), it includes reviewing design documents (design deliverables – drawings and specifications and scopes of work) if they exist and the preparing a takeoff / shopping list of scope items that need to be completed in the execution of the CAPEX project, in addition it includes gathering local construction cost data, local material costs, field crew productivity / production statistics, determining contracting methods, plus a host of other cost related issues. Capital cost estimating is a four step process; these four basic estimating steps are as follows. (This assumes that the cost estimator has read and absorbed the current scope of work and reviewed the current engineering deliverables that currently exist). 1. Familiarization - Site visit / investigation (if timing allows) 2. Quantities Effort - Quantity take-off (shopping list of required items), the quantification of all the necessary items needed and depicted upon the preliminary and final design drawings 3. Costing Routine / Effort - Collection and selection of pricing / benchmarking data. 4. Finalizing the CAPEX Estimating Effort - Summarization of this data, is the work effort of calculating all the costs which will be required for a particular activity / construction project and arriving at a total cost value for performing the (EPC) work. They say “money make the world go round”, - CAPEX funds whether they be dollars, pounds, yen or euro’s and the subsequent cash flow of these funds and the profit that is realized as they relate to the implementation / execution of the “CAPEX project”, is the oxygen of any profit motivated construction / manufacturing related organization (Owner / EPC firm), many times it is identified as the bottom line, selling price, required funds, contract price, P & L (profit and loss), anticipated or final bid cost. Cash Flow - Money and the management of it, is of acute importance in estimating / cost engineering and project management, as is the essential metrics of knowing the current status of the project and the performance to date and how much it will cost to complete the work remaining (forecast to complete), i.e. are we making a profit or loss on this project, how does it measure up against the original capital cost estimate, (basically we are performing ongoing benchmarking activities as the project proceeds). Each and every able cost engineer / estimator / project manager must become familiar with basic cost estimating methods, procedures and techniques that were touched on earlier (and are mentioned in some detail in the first three sections of this publication) i.e. the visit to the site to collect data (project specific information), the take-off routine, the pricing effort together with the summarization of all the relevant data, the cost engineer / cost estimator must also have a basic knowledge of the background / supporting data that is the estimate based upon, i.e. scope of work – project definition, additionally they should understand basic accounting principals, cost control methods, value engineering principals, cash flow and profit generation specific to their current project(s) to be beneficial to there employer and there clients, these are important attributes that can not be learnt overnight, it could take 3 – 5 years to get up to speed with these issues. The important attributes / skills of a cost estimator are:

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• • • • • • •

Technical ability - (EPC) knowledge. (understand the big picture): Team player. (help out on other estimating / project management assignments when needed): Basic Construction - Business acumen. Ability to work well under pressure / a hard worker that can think outside the box. An inquiring mind. (Ask questions never assume): Good computer skills (a very important ability). Pack rat mentality – collects information for future use. (Discard out of date data when necessary):

The best cost estimator (the one with the best potential) that the writer has come across in the last twenty years is a young engineer with 3 – 5 years experience – his filing and data collection skills were first class, he was never at a loss when questions were asked of him, he did his homework, his estimates were accurate and well prepared, he kept his own audit trail (a large three binder that contained all the relevant estimating / pricing data). As has been touched upon, the forte and skill set of the professional estimator / cost engineer must be comprehensive - they should have an appreciation of all construction disciplines i.e. CSI Division 1 - 16, the most important prerequisite is the ability to look into the future (crystal ball and tea leaf readers…apply here.) and the second most important trait is the ability to get along with people and be a team players (being able to communicate and collect relevant data with or from the other team members is very important – squeezing out all of the relevant data from the team members is important), complete with the skill of being able to cut through all the details and focus on the specific “cost drivers” of the future / current EPC project. A number of the more important qualities and basic traits are Business Acumen (understanding the importance of cash flow, change management i.e. change orders / claims, negotiations with clients / vendors / sub contractors). Knowledge of the construction process i.e. the understanding of the following main categories – (1) Construction / Engineering / Procurement / Construction Management, field experience is a definite advantage: (2) Communications and Computer skills (computer skills are becoming increasingly more important in this business environment): (3) Team Player / People Skills as was mentioned above (work individually or as part of a team): (4) Time Management (create shortcuts and ability to think outside the box): Additional know-how that would be beneficial to an Owner or EPC organization is the aptitude to visualize each physical engineering, procurement and construction activity / operation (and how they impact / ripple into each other – fitting all the pieces of the puzzle together) that is required to be integrated into the “construction project”, and how each activity / work effort fits into the total / whole scope of work (big picture), and to interpret the extensive and less significant details into accurate and detailed total cost budget / cost elements, ensuring that the scope (the intent of the design team is captured in the take-off process is followed as carefully as possible). One of the main prerequisites of professional estimator / cost engineer is to ask questions and to question the feedback and answers that are provided by his or hers questions. The preponderance of “seasoned” cost engineers / estimators, individuals that have been involved with estimating for more than five years have in many cases collected and formulated there own personal “estimating” libraries during their career(s), many times when these individuals retire these libraries are lost, or thrown out, the exercise of this publication is to download the writers own extensive library and some of his co-workers / colleagues and to make it available to “rookie” and journeymen / women cost engineers / cost estimators joining the industry.

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This important and vital subject matter i.e. Front End / Conceptual Estimating is a data source that cost engineers and estimators are constantly searching for on a day too day basis (hopefully this data source will be beneficial to the reader on future Front End / Conceptual cost estimating activities). For the reasons just touched on, the author(s) after years of searching / compiling and collecting this type of process related capital cost estimating data decided to summarize there thoughts and views on this subject in an effort to fill this void, without getting too deep / long winded and detailed, which is hard to do on a such a large and complex topic, the book is aimed at giving the reader the “headlines” of various cost estimating items, a quicker way of arriving at a “cost”. All CAPEX capital cost estimates have one universal objective, they provide the basis for management action (go or no-go or go back and re-work the numbers), how much will this project cost, what is the ROI, can we buy this product from a “Toller”, does it make economic sense to build this proposed facility, should we expand this facility, were should we locate this facility in North America, Europe or in South East Asia, questions and more questions that need to be resolved. For those reasons to assemble and compile accurate (CAPEX) capital cost estimates historical data and benchmarking data is required, this means that a source of easy to use and precise – up to date historical / current cost specific data is essential, this data should be broken down basically into quantities of materials, labor man-hours and total dollars (money), the data source could be via the use of in-house return data or “proven” third party external resources, i.e. estimating books / pricing catalogs that are up to date. Annually or real time updated i.e. current capital cost estimating data sources (material unit costs, man-hour installation units, construction equipment – plant and productivity adjustments) - (calibrated to a key location(s) i.e. U.S. Gulf coast, Washington D.C or the North Western area of the UK) are what is needed this data can provide Owners and EPC firms a competitive advantage over there competitors. There are today numerous capital cost estimating systems / procedures / methodologies both computerized and hard copy – and perhaps half a dozen or more reference books being used in the EPC industry to generate capital cost estimates. One of the main problems with some of these cost data reference books is that these the data is focused primarily on general construction, i.e. housing, remodeling, office buildings, schools etc (low tech construction as it referred to). The basic focus of the data contained within this publication is the process / manufacturing / chemical industries and to some extent the pharmaceutical sector of the construction industry, the data in this publication reflects man-hour benchmarks, bulk materials, capital major equipment (CAPEX equipment), EPC construction practices, labor rates (union & non union or merit shop), schedule of rates / unit prices, engineering costs / fee’s, owner costs, plant / construction equipment. Capital cost estimates may be and are prepared and compiled at any point in the projects life cycle development, from the initial early stages 0% to perhaps 5% of the design has been established, to defined / complete engineering stages (the detailed design may be 70% - 100% complete) of the project. An example of this early estimate is (Identification / Conceptual / Business Concept Estimate ) – as it is sometime referred to (little or no engineering produced – real lack of engineering documentation - i.e. engineering deliverables and reports, the only document might be a preliminary “major equipment” list) the estimate is compiled by multiplying the major equipment items by a factor to arrive at a total installed cost, this early stage estimate would need perhaps 20 – 25% contingency to cover risks and lack of project definition, the next “update” of the estimate would be a preliminary stage estimate, possibly 10 - 20% engineering phase is compiled, we would need less contingency because we know more about the project (and we have less risk going forward), the semi detailed execution phase submission would perhaps be the next estimating step or update, perhaps, 20 - 50% of the detailed design completed, again

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more is known about the project and we would basically need less contingency, and last but not least the lump sum / turnkey bid / hard money estimate (proposal or budget), perhaps 50% - 100% of the detailed design in completed (pricing from vendors and sub contactors is typically available), the contingency requirements with this “detailed” estimate may be less than 10% and could be as low as 5%. A detailed estimating plan i.e. a plan that lists various engineering deliverables and required data is described in Section A - 2 of this publication. Prior to getting up to speed / on board with the basics of conceptual capital cost estimating techniques, there are number of basic fundamentals / terms and methodologies that will be discussed and described via tables and charts in this and subsequent sections. This initial section A-1 is devoted to describing a few basic capital cost estimating goals / tasks / perceptions (a view down from 30,000 feet) and methods that are utilized (in some organizations) in the “Process / Chemical / Manufacturing” (PCM) industries, section A-2 discusses capital cost estimating fundamentals, section A3 discusses and describes various capital cost estimating methods, the remaining sections “drill” down into more detailed estimating data. Many EPC projects are successful, it was estimated correctly, it was built on time and it produces the specified material / product that it was design to produce, however perhaps 10% – 30% are unsuccessful (the capital budget was exceeded, the plant was handed over late and the facility is not producing the product in the quantities it was designed for or to the specification required), no one wants this situation. Loosing money on EPC (CAPEX) projects is the reality all companies face today, this situation has occurred since “Adam” was a boy, cost over runs are not a new event although such incidences seem to be more customary in recent years, perhaps because more CAPEX projects are being undertaken now than in the 1960’s and 1970’s (many times because goals are set unrealistically high) this is because interactions / communications are much more widespread (the curse of e mail, more individuals seem to be in the loop and have input into the day to day business ‘running” of the project), everyone always remembers bad news, cost over runs have happened in the past and guess what they will happen in the future. Some of the reasons that this situation seems more prevalent today are: • • • •

• • •

Failure to scope out and estimate the project and failure to recognize the risks associated with the project. Clients are trying to get to the marketplace quicker, to beat there competitors to the punch (it seems everyone is in a rush these days). Less CAPEX dollars are available now and this will be the same possibly in 2009 and 2010 (refer to next point). Many major projects are being built in S.E. Asia (China and India are currently experiencing significant inflows of CAPEX from North American and Western European operating companies, however with the recent credit crisis this seems to have slowed down) and in other remote locations (language, culture, time differences – all add to the challenge). Companies are trying to do more with less money (i.e. CAPEX spending in USA down between 50 – 60% since 2000, less qualified staff are available than previously). Many projects are built using fast track engineering and construction methods. A lot of the “old hands” have retired, Corporate Engineering groups have downsized, and Project Managers are getting loaded up with additional

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responsibilities, it seems that more and more reports are needed now, construction professionals are working harder now than they did in the past. The capital cost estimate, be it a five page Front End study or a detailed 500+ page document – with hundreds of line items (is a dynamic and living document) it is a listing of basic assumptions, a “priced out” shopping list of the owners (projects) needs, (hopefully it corresponds to the needs of the client) it’s end result, at best can only be a forecast / educated opinion / snapshot of the funds needed to complete the scoped out work of the individual(s) involved in the engineering, procurement and construction scope definition and estimating effort. The cost estimator more often than not develops the path forward / road map of the estimating process (and is the focal point of the estimating effort – refer to Section A-2 for information on the Estimate Plan), it is he or she who should determine the estimating plan, who does what and when - with management buy-in of course, what are the required engineering and procurement deliverables needed to produce the capital cost estimate, do we require vendor quotes and layout sketches, it is the cost estimators / cost engineers function to determine the resources, tasks, construction equipment, crew sizes, field installation production man hour rates, bulk and engineered material requirements, overhead, profit margin, contingency and risks, (again, with the buy in of upper management) it is he or she who responsible for providing an estimating audit trail / document / basis of estimate and last but not least forecasting the “final” cost of the construction related project(s), of course again with the “blessing” of senior management. To successfully perform accurate and timely front end or hard money estimating activities, it is necessary to be able to access updated “estimating” data bases of construction cost information / data (purchased from third parties, in house or personal historical data), the estimator / cost engineer must constantly accumulate cost estimating data, annual cost estimating reference books, vendor pricing / cut sheets, installation catalog(s), and copy / high light / file ad infinitum all pertinent estimating data and verify return cost data, unit costs and values from ongoing field operations. Keeping this up to date with current world events such as 9/11/2001 (and the recent worldwide financial crisis) together with the spike in oil prices above $140+ a barrel is an ongoing challenge, it is prudent to subscribe and read the ENR / Chemical Engineering / Building and other relevant industry magazine(s) together with various specialized trade magazines etc, keep copies of cost indexes as they specifically relate to labor and material costs, keep a file on labor rates, sub-contractor bids and proposals etc. It is his or her occupation / function to calibrate, adjust, make recommendations / comments and notes on specific project / construction installation problems and potential under-runs or over-runs, location factors, scrutinize productivity profiles, performance hours and return costs from the job-site and file them away for future use, this is a vital function that must be performed on a constant basis if the cost data is to be useful to organizations that depend on this data to grow and prosper. Lets face it capital cost estimating and how it is performed is a very important topic to any profit or non profit organization, getting the budget right is important, nobody wants to go back to management and ask for more money, its embarrassing and it could impact your career prospects. Developments and improvements by software / estimating / consulting firms in prevailing computer technology / data storage and retrieval systems has resulted in more than a few of these estimating data sources being put on the market to assist estimators / cost engineers, they can be purchased on various software formats i.e. floppy disc’s, C D ROM’s and smart sticks and can be accessed via the internet, also dial up / direct on line service is currently available. Operating, maintaining and running this software data and applying it to compute accurate and well-timed front end / conceptual capital cost estimates is today the distinctive challenge and important job

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function of the estimator / cost engineer and an occupation / skill that will expand in the future (skill and dexterity in the use of computers is a “needed” proficiency if one is to be employed as a cost estimator). Front End / Conceptual capital cost estimates of refinery, chemical and manufacturing / process related (PCM) facilities need to be grounded on real life / historical benchmarks for management to buy into them and eventually approve them, the following is a listing of engineering deliverables that should be made available prior the commencing the front end / conceptual estimating effort, (note some of these early engineering might constitute no more than 2.5% - 5% of the eventual detailed design effort). • • • • • • • • • • • •

Assignment / mission statement / estimating plan. Any relevant engineering deliverables. Front end / preliminary scope of work statements (execution approach) Process Flow Diagrams, (P.F.D.’s). Preliminary / early major equipment lists (with budget pricing if possible). Plant / facility location (and location within an existing facility). Location of any existing utilities / existing tank farms. A bar chart / major milestone schedule (start and finish date) Preliminary P. & I. D.’s and or process flow sheets / block diagrams. Latest engineering deliverables (plot plans and general arrangements). Conceptual plot plan (Major Equipment locations / foundations). Applicable sketches / notes / photographs / videos, reports such as PCA’s etc.

It goes without saying, to have all of this data, together with outline specifications of major equipment, phone quote pricing of major equipment items, engineered materials and conceptual “quantity take off” information available, (foundations, piping lengths, electrical motor(s) list, and perhaps an instrumentation list etc), this is a lot of data to absorb, however the estimating effort / endeavor must be completed to support this early cost estimating (of course there is a “cost” to procure this front end engineering documentation, that may have to be included with the CAPEX estimate, the question is how do we estimate these scope items, how much time do we available (1) should we produce detailed take-off’s of the foundations and piping systems etc, or should we (2) estimate the bulk accounts by historical ratio’s, percentages and factors (described in following sections) – remember the more definition (design information) that is available usually means the estimate is more complete and it’s accuracy is improved, this is an important decision that needs to be made in the CAPEX estimating effort. Loosely defined scope items / construction categories that are often / difficult or challenging to put your hands around and price out are: 1. Outside Battery Limits: OSBL piping (above and below grade). 2. Outside Battery Limits: OSBL electrical work (ditto). 3. Other work outside the battery limits (Roads, jetties and loading areas etc). 4. Fencing / Gatehouses / Parking and Lay down areas. 5. Product loading area / tank farm facilities / warehouses. 6. Process support utilities (steam / electricity / WWT facilities). The reason these are many times difficult to price out is that there is limited information (design parameters / basic design information) on the scope of these items, these cost

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items are typically not started and defined from an engineering point of view until the “heart” of the project – the ISBL facility is nailed down – we need to know the product specification / production rates of the ISBL unit before we can size out the OSBL – utility needs. Many times these items 1 – 6 are understated (undervalued in the initial estimating effort) a lot of times these process supporting components are called the offsites or outside battery limits items (OSBL), the actual process operating unit is as we know is the inside battery limits i.e. - (ISBL). The (OSBL) scope items can sometimes be a separate capital cost estimating effort, but usually it is estimated by the individual estimating the (ISBL) scope of work: The OSBL / Off Sites are ‘loosely” described above 1 - 6 and include (ISBL) support systems i.e. power / electrical production / steam generation and distribution systems / process support utilities and systems (compressed air, gas, process and cooling water / ponds), storage / tank farm facilities, loading / shipping / receiving facilities, jetties, wharf’s, pumping stations, elevated water storage tanks, road crossings, etc, the facilities are of course vital for the plant / facilities safe ongoing operations, by there very support function they are not a part of the specific processing units manufacturing / chemical reaction production “major equipment”, these off sites might support two or more (ISBL) operating units, they are necessary utilities / services needed to ensure the manufacturing plant / facility operates in a safe, reliable and cost effective way, typically these support systems are some of the last items to be engineered and estimated / evaluated, (hence the reasoning why they are difficult to estimate / scope out at the early stages of the project). The OSBL / off-sites include the scope described above, plus some of the following. Think of them as items outside the “main process”, however they are needed to make the “main process” work and function safely: • • • • • • • • • • • • • •

Perimeter roads / tank farms / product storage tanks / pipe track crossings. Power plants / electrical power generation. Utility water, gas supplies / plant air. Process water / cooling ponds. Sub stations, or supply / steam production by means of oil / gas fired boilers, potable cooling and process water supply and needs. Wastewater treatment facilities and sewage plants. Administrative / control / warehouse / repair & maintenance workshops / support buildings change rooms / etc. Parking areas, fenced off lay down / marshalling areas etc. Raw material receiving etc. Flares. Pipe racks etc. Product shipment buildings, guard houses jobsite security etc. Jetties and off-site piping / pump houses etc. Plus other Off Site (OSBL) specific items not described above.

As was mentioned earlier in the normal detailed engineering timeline of a project, these scope items / elements are many times engineered and defined at the 20% design level or detailed design mid point of the detailed design / engineering and procurement effort; and that is the problem for the estimator / cost engineer, definition of these work tasks / scope items is typically “loose” i.e. not to well defined (the definition of the project is not yet focused at this point in the projects life cycle). Many times cost estimators / cost engineers use a percentage of between 20% and 70% of the defined ISBL process unit cost to come up with a value for this OSLB / “off sites” scope of work (not very scientific

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to say the least, but the percentage has some validity and when nothing else is available), then again, many times senior management will consider this as not accurate enough and requests better definition (and rightfully so, this value could be a significant part of the projects final cost), i.e. more scope definition (hence more design and additional engineering costs) to define and scope out this important part of the project. An estimator needs to review the OSBL scope, is it a complex piece of work, or is it minor in nature, it’s the call of the estimator and his or hers management on how to estimate it. In Front End Conceptual / Preliminary Estimates, determining and calculating the commodities (many times referred to as bulk or engineered commodities or “bulks”) examples of these items are as follows: • • • • • • • • • • • • • •

Stone / Gravel / Hardcore / Engineered fill. Concrete / Rebar / Formwork. Architectural finishes and features. Bricks / Masonry / Pre-cast walls / Curtain walls. Structural Steel / Gratings / Miscellaneous Metals. Miscellaneous, Steel / Ironwork / Platforms. Pipe / Valves (not control valves) / Fittings. Electric cable / Conduit. Insulation (equipment and pipe). Refractory. Instrumentation Material (none tagged). Paint / Coatings. Road Paving (Blacktop material) / Concrete curbs. Plus many other specific items.

In the early stages of a CAPEX project the above are usually inadequately scoped out due to the fact that little or no detailed design / engineering (or more importantly the specification(s) have not yet been fully developed) has been completed (basically the design team has not thought this scope out yet), bear in mind 5% to 15% of the engineering scope has been defined at this point, the engineering team is trying to scope out the big ticket major equipment items (long lead time items), towers, compressors, heat exchangers, filling lines etc, the big push in the engineering effort is to get the “big ticket” items on order. Front end / conceptual capital cost estimating problems/ challenges usually begin to develop in the “take off” of the commodities / bulk materials – see above listing of for types of materials, they included the above and some or all of the following, concrete formwork, rebar, foundations, piping systems, brick / block walls, painting, siding, steel platforms, roofing, structural steel supports and the items mentioned above, the problem in estimating these items (as mentioned above) is that the scope is not defined and some scope items are missed from the quantity take off. The cost estimator / cost engineer at this stage of the project must many times use his or her judgment on how to estimate these items, should we perform detailed / semi detailed estimate or take-off of these items, should we get quotes from various vendors for these systems (design / build quotes for specific systems, i.e. a high speed packaging line, or a specific “black box” system or component), or should we use the down and dirty method of coming up with historical allowances to establish a price, time is the deciding factor in determining the path forward on this approach. Will management

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accept factors and allowances or will they insist in a complete take-off. Other questions that may need to be resolved / estimated include the following: • • • • • • • • • • • •

Under ground rock, how extensive - what type of rock, how should we estimate this item, unit prices or an allowance? High water table / Bad ground conditions – running sand conditions how will we keep foundation free of water – well point system or another method. Hot taps (system shut down) will plant remove insulation and drain systems, do we need special permits. Tie-in’s, yard / utility / service piping – do we need to shut down any operating unit (s) what about plant permits (hot work). Electrical sub station expansions – do we need to contact local utility company? Removal of hazardous materials – were do we remove material to, do we need documentation do we need to keep records for future audits. Shut downs at night or on a specific weekend. Fire water system – can we calculate GPM needs or should we just make an allowance. Revamp / upgrades – do we have current drawings (as-built’s). Cooling towers – what are requirements, what type of tower (Concrete or timber). Waste water treatment facilities – is this scoped out, can we get a vendor price. Roads, gate houses tank farms, tank loading areas and a myriad of other items that need to be considered and estimated that are unique to that particular project.

In the marketplace there are currently some excellent cost estimating tools / software systems and procedures for each estimating phase of a CAPEX project (Conceptual – M2 / Square Foot and Detailed Estimating), which when appropriately used, can create comprehensive and accurate capital cost estimates and front end tools which are usually satisfactory and helpful to management for resolution and the CAPEX decision making process. The downside of some of these systems is the initial cost of buying and subsequent annual renewals can be very expensive. However it is always good to have a couple of different cost estimating systems, reliance on a single system is not perhaps the way to go. Of course it is always good to have a couple of different reference points to validate the CAPEX estimate; hopefully this publication will satisfy that need in a lot of cases. Of course it is vital that the cost estimator / cost engineer maintain control throughout the life cycle of the estimating effort (total reliance “blind faith” on computerized CAPEX estimating systems and methods is dangerous to say the least) the cost estimator needs to know the “details” that backup the computerized estimating systems and question any irregularities that show up – hopefully this database will assist and augment in that audit effort, the cost engineer has an important and significant audit / oversight responsibility – function, it is imperative that a completed cost estimate encompass an audit trail to support the capital cost estimate of it’s basis this includes: • • • • • • •

List of assumptions / Inclusions: Start date of Engineering: Commencement date of procurement activities: Start date of Construction: Construction completion: Description of the project / Scope of work statement / Major milestone schedule: Sketches / Drawings and any Photographs (video’s):

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• • • • • • • •

Details (quantities, related to civil, mechanical and electrical systems and pricing basis). Vendor / Sub Contractor Quotes: Pricing basis (source of labor rates – union – non union and material costs): Reports (soils / boring logs): PCA’s, Environmental impact studies: Lists of major equipment / instrumentation: Basis of escalation: Exclusions from the estimate, estimating assumptions:

Compiling a CAPEX estimate is challenging undertaking as we have previously discussed in some detail, after reading this section and the remainder of this data source there will be questions that the reader needs to ask themselves, these questions are, who should be involved in the verification process, which stakeholders should audit and “buy into / approve” estimated cost (is it one person or is it a committee) how will the estimate be reviewed, how can we improve the capital cost estimate preparation and approval process, should we consider the “Gatekeeper” type of estimating approach, how can we improve the CAPEX estimating accuracy, how should we react to a project if the project shows potential for going out of control, i.e. schedule, cost and quality, should we: 1. Scale down / back the original scope, 70 tons of production of cement per day, instead of 90 tons per day. 2. Stop the design effort and evaluate the immediate path forward. 3. Call in the “experts”, understand what the problem is, A.S.A.P. and come up with a list of corrective options. 4. Perform a re-evaluation (re-estimate). 5. Consider a detailed value engineering effort. 6. Chart a new course; determine the most cost effective and prudent path forward to meet the original or “new” goals of the project. As stated before the rationale of this data source is to provide more general conceptual / rule of thumb estimating data, front end / methodology and source document to rookie / journeymen and journeywomen cost estimators and project managers. It goes without saying, that it is the cost estimator / cost engineer who must conceptualize, visualizes the intent of the scope of work, understand the manufacturing process of the facility outlined on the preliminary drawings, the business future dynamics of the facility / project, to be aware of the materials of construction, operating parameters, EPC execution method, capital major equipment and implementation techniques required to construct the facility / process related plant, estimating and compiling the final cost of the project from, concept drawing (consisting of perhaps 3-6 sketches and a preliminary major equipment list) to the detailed design , procurement effort and construction approach (consisting of 100’s of detailed drawings, reports and specifications) and eventually to successful commissioning hand over of the “Process / Manufacturing” facility to the end user / operations group is a challenging effort, hopefully some of the data contained in this data source / guide will shed some light on the needs of the required Front End / Conceptual Estimating effort. CAPEX Estimate Schedule and Review Cycle:

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Factors to consider and plan for include. 1. When is the CAPEX Estimate required? 2. What accuracy is required? 3. What resources will be required to complete the estimating effort, together with the required engineering deliverables? 4. Has a budget been established to pay for the CAPEX Estimate? 5. Who will review and “buy” into and approve the CAPEX Estimate? Presenting the completed Capital Cost Estimate to Senior Management: This activity is usually undertaken / conducted by the cost estimator and the appropriate senior management to upper management, it may take an hour or it could take a couple of days, if the capital cost estimate is a lump sum bid that needs to be submitted at a specific time and delivered to a certain address this listing may need to be optimized to reflect these timing and delivery logistics. 1. Provide a written description of the projects scope and the current goals the project team is aiming for, discussion the expectations and timing needs of the business unit. 2. Describe in detail the engineering deliverables that the capital cost estimate was based upon, PFD’s PCA’s, Phase 1 Environmental reports. 3. Describe any de-commissioning activities, removal of tanks and other “good” condition major equipment items. 4. Include a bar chart that indicated major milestones, start of engineering, mobilization to field and project completion, plus any other unique milestone specific to this project or study. 5. Be prepared to show quotes, records of telephone calls, faxes, sub-contractor pricing, e-mails and conference notes (have a file with all the associated documentation available for review). 6. Explain basis of labor / wage rates (union, open shop or merit shop). 7. Describe any necessary operating unit shut downs / tie-ins. 8. Describe any demolition, disposal of chemicals / sludge, required clean-up activities. 9. Describe labor productivity basis, i.e. Gulf Coast or N.W. England. 10. Explain purpose of estimate (funding, validation or lump sum submission). 11. Is the project delivery need to be in a phased approach, what are the cost consequences of this approach? 12. Provide listing of major cost components (M.E. multiplier, cost per SF / M2, cost per gallon – try to measure the cost of the facility to company benchmarks). 13. Describe pricing received for major equipment, how many bids; pricing basis, how long is pricing valid, delivery time. 14. Be prepared to discuss any relocations of equipment. 15. Provide an explanation of direct and in-direct costs. 16. Explain ISBL work and OSBL work scope.

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17. Describe how costs for civil, concrete, structural steel, buildings, piping, electrical, instrumentation, insulation, painting, engineering, construction management and any other significant accounts were derived and estimated and compiled (Ratio approach or detailed take-off or based on sub-contractor bids and vendor quotes). 18. Explain instrumentation scope and control philosophy. 19. Provide details of lead paint removal, asbestos removal, underground obstructions, hazardous waste, and mold remediation. 20. Provide cost details of any “refurbished equipment”. 21. Make available details of “expense” items (demolition, asbestos removal and relocations). 22. Make known required tie-ins, and any shut downs that may be required. 23. Provide details on any required overtime or shift work. 24. Explain general condition Division 1 costs. 25. Be prepared to discussion assumptions made regarding productivity. 26. Provide details of any allowances and provisional sums. 27. Indicate the anticipated accuracy of the capital cost estimate. 28. Explain how currency fluctuations are estimated, if applicable. 29. Provide details of transportation costs. 30. Provide details of any temporary roads, temporary camps / accommodation that may be required. 31. Provide details of costs specific to vendor assistance, spare parts and initial chemicals are estimated. 32. Provide supporting documentation for demolition and any hazardous material removal. 33. Determine the percentage of pricing that is based upon “firm” quotes. 34. Be prepared to discuss QA/QC requirements, NDT, inspection costs and acceptance provisions. 35. Provide any other project specific details that may be applicable, such as warranty issues, what is the warranty period 12 months or two years. 36. Explain insurance and contractors fees. 37. Be prepared to discuss a “modular” construction application. 38. Explain contingency value that was utilized and method used to determine indicated amount. 39. Explain the work that the operating group will complete and be responsible for. 40. Describe any Royalties / Licensor fees contained in the estimate. 41. Spare parts how is this accounted for, detailed list or an allowance. 42. Be prepared to discuss any shared saving provisions in the contract. 43. Explain any initial operating costs such as plant operator training. 44. Explain costs associated with initial fill / catalyst.

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45. Be prepared to discuss the cost ramifications of the “contract” between the owner and the contractor, (i.e. payment terms, payment cycle 30 days or 45 days or possibly more, retention, liquidated damages and bonus / penalty provisions, bonds, parent company guarantee and consequential damages). To recap the previous paragraphs on front end / conceptual estimating methods, this type of capital cost estimates are compiled and used for many different reasons, including the following activities: • • • • • • • • • • •

Control and monitoring of capital expenditures / Cost control – Pro active involvement in reducing / forecasting costs: Proposal evaluation / Bid check reviews. Choice from among alternate layouts / designs / process configuration. Board of Director Approval / Appropriation of funds (A.F.E.). Compilation of bids / proposals. Funding / Feasibility studies. Choice from among varying site / manufacturing locations / countries. Choice of alternate investments methods, lease or purchase / toll manufacture, 3rd party outsourcing. Claims mitigation / Change order control. Value engineering baseline cost model. Future benchmarking points / data.

Designing and constructing new process related facilities is a risky undertaking, the individual preparing these CAPEX capital cost estimates should understand the ramifications / risks that could influence and impact the final cost of the EPC effort, these risks include. • • • • • • • • • • • • • • • • • •

The state of the economy. Federal and local Government grants / incentives. Technology being used (proven or first of its kind). Sophistication of specifications (high end or industry standards). Schedule requirements. Current market conditions. Union or Open Shop labor utilization. Productivity of the workforce. Weather conditions. Ambiguous site conditions (rock or high water table). Strikes / lock-outs: Material / Major Equipment shortages. Accidents at the jobsite or accidents to equipment in transit. Type of contract. Estimating errors. Joint Venture arrangements. Possible bankruptcy of key players Contractual issues.

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All of the many partakers in the efforts of compiling front end engineering studies and estimating, planning, funding, constructing and successfully starting up a new or revamped building, manufacturing facilities or production unit has many times a different point of view on CAPEX (capital cost estimating) i.e. how to go about it, this section and the subsequent sections goes over a “proven” method for compiling these important project related documents, by following the steps indicated in the following sections the reader should be better served to understand and complete these types of cost estimates. Construction is an important industry employing hundreds of thousands. The cost of construction has an impact on everyone; the cost of construction is passed on to consumers via price increases on every product consumer’s purchase. Optimization of the construction process especially the CAPEX estimating effort is a winwin situation for everyone, savings can be ploughed back into the economy, providing new opportunities for companies and individuals. The Engineering, Procurement and Construction of a new or upgraded building, chemical plant or manufacturing facility more often than calls for a significant capital expenditure possibly over a two to three year period prior to any return on investment (ROI). In view of the fact that the requirement of new capital i.e. CAPEX dollars for the above capital projects is initiated by market forces / evident demand, the new or re-vamped building, manufacturing facilities or production unit is planned to comply with the stated goals of the new or revamped building, manufacturing facilities or production unit, that were initially spelled out by the client. The following table lists some of the major activities that need to be considered in the CAPEX, i.e. estimating process. # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Activity New needs or demand, for new product / new or expanded or re-vamped building, manufacturing facility or production unit. Definition of project goals, scope and mission statement. Conceptual engineering, planning and Front End / feasibility study including possible Front End estimate. Submittal of Approval of Expenditure – AFE. Package. Commencement of detailed engineering effort if project is approved. (Optional) Possible milestone to compile CAPEX estimate. Production of engineering deliverables. (Optional) Possible milestone to compile CAPEX estimate. Start of Procurement effort. Start of Construction effort. (Optional) Possible milestone to compile CAPEX estimate. Completion of Construction effort. Start up / handover of completed project. Close out report. Collection of historical data for future CAPEX

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Estimating Input Refer to Section 2 and 3 for appropriate estimating method to be utilized.

Refer to Section 2 and 3 for appropriate estimating method to be utilized.

Refer to Section 2 and 3 for appropriate estimating method to be utilized. Refer to Section 2 and 3 for appropriate estimating method to be utilized Refer to Section 2 and 3 for appropriate estimating method to be utilized.

estimating / benchmarks. If we look at the execution of a CAPEX project from the end users standpoint we can concentrate / shed some light on the responsibilities and normal work effort of the various players that are required to complete the engineering, procurement an construction of a CAPEX project. Facility End Users / Clients have to appreciate that there is no particular best method in executing a CAPEX project, all methods have plus’s and minus’s associated with them, and hopefully some of the information contained in the following sections will shed some light on the “best” project approach for the reader of this publication. Main Categories of Construction: The construction industry is a “hodgepodge” of assorted sectors, that all have a common thread, i.e. see the “players listed below: The annual cost expended on these construction categories in discussed in some of the following sections of this publication. • • • • • •

Industrial Construction (refineries, chemical plants, power facilities etc) Civil / Infrastructure and Heavy Construction (Bridges, Roads and Dams etc) Institutional Construction (Public Buildings) Commercial Construction (Hotels, Shopping Malls and Offices) Residential Housing Construction (Apartments and Single Family Homes) Repair and Remodeling Construction

Major players in the Construction Process: The vast majority of CAPEX projects will include all or some of the following players: • • • • • • • • •

Owner / Client Companies Owner / Client Companies (Corporate Engineering Group(s)) Engineering, Procurement and Construction (EPC Firms) Architectural and Engineering (A/E) Firms including Structural and MEP firms. Design / Build Companies Construction Managers (CM) Firms General Contractors / Prime Contractors Specialty Sub Contractors (L & M or Labor only) Vendors / Material and Equipment Suppliers

The CAPEX cost elements for a new or re-vamped building, manufacturing facilities or production unit will include the costs associated with the effort to create the new or revamped building, manufacturing facilities or production unit, items to be reviewed or considered include: • • • • •

Land purchase or lease. Financing cost(s). Front-end studies. A/E fees, detailed design. Construction Management fees.

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• • • •

Procurement of material and major equipment: Construction and startup of the completed facility: Owner's cost items. Operation and maintenance costs.

A large amount of additional information and data of course needs to collected and evaluated, from any design or reports that have been previously completed, in most cases this information can be found / or is discussed in the following sections of this publication. The following is a summary recap and pointers for compiling accurate Front End Capital Cost Estimates / Conceptual CAPEX estimating efforts: •

• •

• •

Produce an estimate plan, who does what, what are the required deliverables, when is the information required, perhaps the man-hours that have been budgeted for the estimating effort needs to be indicated, rather than leaving this as an open issue. Develop and use standardized estimating forms and spreadsheets. Follow the standard practice for compiling a capital cost estimate, review scope, visit the site (if possible), take photographs, perform take-off calculations, assign appropriate material, labor and in-direct costs to quantity take-off’s and summarize results for review with senior management. Ensure that capital cost estimate is fully qualified and documented / described, including basis of estimate, exclusions, assumptions and the listing of engineering deliverables that the estimate is based upon. List alternatives or different case studies or any value engineering concepts that could positively impact the capital cost estimate.

Conceptual / Front End cost estimating is a excellent business resource / tool, as we all know many times the scope and timing of capital projects will typically be subject to change during the projects life cycle, however this resource / tool can be used to explain or support the decisions and the genesis of the project(s) scope and how it was developed and possibly modified, the front end / conceptual estimate can be used as the audit trail of why it was adjusted, it can provide the history of what was originally (scoped out) and estimated / planned versus what was actually engineered and built, used correctly the conceptual estimator can benchmark his or hers conceptual estimating library with the return cost / man-hour data from the completed project and calibrated there current library for future front end / conceptual activities. Remember that the Cost Estimator / Cost Engineer is a vital member of the Project management team, his or hers recommendations and advice can have a major impact on the future of the EPC project. Some final thoughts related to estimating skills, ethical considerations and basically the estimating effort specific to consistently producing CAPEX estimates, which were discussed previously in this section. Forecasting the cost of a CAPEX project(s) both precisely and in a timely manner of future new or revamped construction projects is essential to the continued existence of any business (Owner / operating company or contracting company). Cost estimators and cost engineers furnish this essential skill set (ability and wherewithal to produce CAPEX cost estimates) and developing data / information by compiling and transforming the engineering data / deliverables (sketches, drawings and specifications) into the completed cost estimate, this cost estimate (document - data source) is a road map of the resources (labor and materials) required by the project execution team to establish if a proposed project / scope of work (to formulate a proposal or lump sum bid for a specific project) or if future manufactured

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goods / products will be advantageous, i.e. profitable or have an adequate ROI / EBITDA. From a contractor's point of view the cost estimate will establish the bid price of performing the work, contractors need definition (i.e. drawings and specifications that perhaps are more than 50% complete) to adequately produce lump sum bids. On the other hand Owner’s cost estimators / cost engineers need to ensure that the have a total understanding of the scope, they do not need to go into as much detail as a contractor, they need to be able to compile semi-detailed estimates that are a combination of takeoff’s and allowances that adequately captures the intent of the scope of work statement. Optimizing the Conceptual Estimating Effort: Conceptual estimating is a complicated topic. The major challenges to be overcome to ensure the conceptual estimate is “complete” and that the conceptual estimate reflects the known scope of work are as follows. •

• • • •

• • • • •

The scope of work: An ill defined scope usually results in a flawed conceptual estimate, , improving the scope definition effort and place greater emphasis on the front end definition phase of a project will result in a more defined scope package. The quality of the current engineering data: Greater emphasis should be placed on improving any engineering deliverables that come out of early engineering studies i.e. FEL-1 and the FEL-2 effort. A new technology or projects with significant challenges such as large complex overseas projects should be looked at more closely than standard projects being constructed in North America or Western Europe. The skill set of the estimator(s): It is vitally important to utilize “experienced” estimators; it is many times counter productive t use “greenhorn” estimators in a lead role. The estimating method used in compiling the estimate and its historical past performance: The estimating methods should be reviewed on a constant basis and fine tuned with latest feed back from completed projects to optimize the estimating output. The time allowed in compiling the estimate: An estimate plan should be developed, assigning roles and responsibilities and timing needs. The issues of how unknown scope, unlisted items, scope growth are recognized and allowed for in the body of the conceptual estimate. The required accuracy of the conceptual estimate, related to the owners requirements for obtaining additional CAPEX funding. The estimate review process: The project team needs to allow enough time to perform a line by line estimate review of the estimate basis and pricing philosophy that was used in compiling the conceptual estimate. How contingency and risks are captured and incorporated into the conceptual estimate.

Using some or all of the ideas presented in this section will hopefully improve the conceptual estimating effort and improve the accuracy of the conceptual estimate output.

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SECTION A - 2 CAPITAL COST ESTIMATING FUNDAMENTALS Estimating Fundamentals: “The actions involved in assembling a CAPEX estimate related to the Engineering, Procurement and Construction (EPC) effort. The procedure includes having the understanding of the different types of CAPEX estimates employed by individuals employed in the Manufacturing, Chemical and Pharmaceutical sectors of the construction industry, this included understanding various estimating terms, estimating methods, quantity takeoff approaches and generally all the steps required to produce a CAPEX estimate”. Construction professionals all around the world are continually challenged to engineer (design) procure and construct various process / manufacturing facilities, they are tasked with constructing under budget and within a specific time limit, and of course the facility has to work properly and be safe. This database has been produced to provide construction professionals with a front-end estimating tool that will allow them the ability to produce more accurate and complete conceptual / front-end estimates in less time. The activity of Capital Cost Estimating is a significant and important undertaking in the projects life cycle i.e. Project Management and execution (Engineering, Procurement and Construction) – (EPC effort). All practical efforts must be made in the early stages of a CAPEX project to accurately estimate the future project; it should be based on the current and anticipated scope of work of the specific project. The capital cost estimate (CAPEX) determines the total cost of the project, as the detailed design, procurement and construction is completed the capital cost estimate can be continually refined at various major milestone(s) to forecast the cost of the completed facility. Producing CAPEX estimates and controlling these subsequent budget(s) necessitates a wideranging and coordinated effort, involving various skills – the task of CAPEX estimating requires engineering, procurement, construction and estimating / forecasting input, this will be described in some detail in this and the following sections of this database. Owner companies involved in major capital projects / capital expansions refer to there annual expenditures as CAPEX programs, it goes without saying that the execution and management of these programs is critical to the future heath and growth of these organizations. A CAPEX project is the conduit by which the business expands and establishes new or retains current market share or future penetration, a CAPEX project or EPC Project (as they are many times referred to) can be described as a unique one time effort to engineer, procure and construct a manufacturing / process plant / chemical facility or something similar. “What is a capital cost estimate”, well to individuals involved in the big picture “EPC” Engineering, Procurement and Construction effort it is the following, a shopping list of all the cost items, labor, materials, engineering, field indirects etc, required to meet the requirements of a scope of work statement written or verbal (drawings, specifications, execution plans, sketches etc,), it is more or less the capturing / collection of all the necessary work items in order to make the planned facility work in a safe, cost effective way. Producing a CAPEX estimate takes a lot more art than science, there is no substitution for experience. An estimator must exercise significant business savvy / estimating knowledge in compiling a CAPEX estimate. As more project data / design information is produced, then generally the overall accuracy of the estimating deliverables / product increases.

1

The three keys to successful Project Management are # 1 is it safe, does the facilities produces what it was planned to produce in a safe and controlled method. # 2 was it built for the value we estimated and # 3 was it built on time, in accordance with the preestablished schedule. Capital cost estimate(s) can be one of the following three categories – or hybrids of these. The data contained within this particular section endeavors to touch on items 1 through 3 below, with perhaps more emphasis item # 2. 1. Front End / Order of Magnitude Capital Cost Estimate. (Little or no engineering has been completed) 2. Preliminary Budget / Funding for execution Capital Cost Estimate. (Perhaps 10%-20% of the engineering has been compiled) 3. Control / Definitive / Bid / Lump Sum Capital Cost Estimate. (Possibly 50% or more of the detailed design / engineering has been completed) The initial CAPEX Estimate be it a Blue Sky / Order of Magnitude or a Scale up Capacity estimate is either the initial pathfoward towards a profitable and sustainable project / future profitable asset or the initial step towards a potential business failure – once a number is published it is difficult re-visit and modify this number especially in the case were the Business Unit has used the initial number in there forecasting / economic models. The following diagram depicts the four basic steps / approach that is common to all estimating efforts, this four step approach will be described in more detail in this section and subsequent sections of this publication.

Step 1

Step 2

Step 3

Step 4

Knowledge of Scope / Site Visit

Take-Off activities

Compiling of Estimating Data

Summarization

Completion of Estimating Effort (Presentation to Management) Approval of CAPEX Project

Items and questions that need to be asked and considered prior to commencing the CAPEX estimating effort includes: • •

Has any preliminary engineering / design deliverables been produced specific to this new / proposed project. Have any PCA’s (Property Condition Assessment) been produced, many times they have.

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• • • • • • • • • • • • •

•

Have any Phase One Environmental Site Assessments been completed in the last 3 – 5 years. Who is going to develop a scope of work, (corporate engineering, the estimating group or a third party engineering firm)? What type of facility is being considered / being - engineered, procured and constructed. Is the project a grassroots facility or is it expansion or upgrade. What type of estimate is required (level of accuracy) - establish an estimating plan. What engineering deliverables need to be produced to match the estimating requirements? Who is tasked with the production of these engineering deliverables? How should the estimate be formatted - structured – WBS - COA. What are the timing and staffing needs to meet the goals of the estimating effort? Develop the CAPEX cost estimate following the 4-step approach depicted above. Who will get quotes from vendors, (corporate engineering, the estimating group or a third party engineering firm)? Document estimate basis (inclusions and exclusions – assumptions) include a listing of engineering deliverables, with the completed CAPEX estimate. Consider contingency, currency impact, escalation, E / I programming, commissioning and any vendor assistance. Check the estimate math, completeness, quality and accuracy needs. Present estimate to management for review and eventual approval, after approval utilize estimate as a control tool to monitor progress of the work.

Owners and contractors have to understand that there is no specific method in executing a CAPEX project, there are perhaps dozens of methods or ways to execute a project, all methods have plus’s and minus’s and risks associated with them, hopefully some of the data and methods contained in the following sections will help the reader in understanding these complex issues that need to be considered. Industrial Construction (refineries, chemical plants, pharmaceutical facilities, power facilities etc,) has unique features and requirements. Assembling and calibrating the capital cost estimate for these types of facilities are complicated tasks; the initial sections of this publication should be a good “starting point” data source for individuals tasked with this responsibility. The following sections should provide the various fundamentals and steps that are required in order to compile a logical and hopefully accurate CAPEX estimate. As was mentioned previously there is no common denominator when it comes to a standardized estimating methodology - different countries / different companies / different industry sector all use different terms / nomenclature for in compiling and discussing CAPEX estimates, there is no standard name or classification / approach. Again a lot of the issues related to the basics of CAPEX estimating, CAPEX estimating fundamentals are discussed in some detail in Section 1, 2 and 3 of this publication. Construction (i.e. the EPC cycle) is a perilous business, to continue in business and to remain in the black, organizations need to lessen the inherent risks associated with the construction industry (labor shortages, price increases, changes in scope, failure to communicate, disputes, late payments, bad weather and strikes to name but a few are some of the challenges to be faced) the following is one of the many checklists scattered throughout this publication – that hopefully will mitigate some of these risks.

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The (CAPEX) capital cost for the Engineering, Procurement and Construction (EPC) project(s) comprises of all the activities and expenditures associated with the primary establishment of the specific building, plant or facility: this will consist of: •

Front End Economic studies - consist of owner front-end initial costs including internal ROI investment studies and a marketing analysis, needs analysis, this may entail the corporate engineering group compiling various front end case studies of the proposed future project, the accuracy of these “first / blue sky” estimates would be accurate to perhaps +/- 25% - 30%.

•

Land purchase (if working on a new property) - The real estate purchase or leasing cost may need to be included with the CAPEX (including any remediation, site improvements and modifications that may be required):

•

The Detailed Design Effort: - The Architectural - Engineering (A/E) (EPC) design effort (production of specifications and design drawings and project deliverables) including reproduction expenses and travel costs associated with completing the engineering / architectural scope.

•

Project Management / Construction Management and Procurement activities associated with completing the CAPEX project.

•

Field Construction / Site In-Directs / Construction Equipment / Field Establishment - The actual field installation / construction work, associated with major equipment, bulk and engineered – commodities and materials, the site indirects including field supervision related to the construction scope, this includes trailers, storage sheds, small tools and consumables, including construction equipment requirements i.e. cranes, welding equipment etc, and the subsequent maintenance of this equipment and the field establishment i.e. (Division 1 or General Conditions / or Preliminaries as it is called in Europe):

•

Other items could include contractor’s fees, bonding; insurance (BAR and workers compensation) and local state taxes, (VAT on overseas applications), tariffs and import duties, ocean freight, currency fluctuations specific to the CAPEX project.

Further items that may need to be considered includes: expense items (relocation or refurbishment of equipment), demolition work, owner provided equipment / materials, furniture and fixtures, spare parts, initial chemicals and vendor assistance. The extent of each of the above cost elements of course is based on the type of facility (i.e. unique – first of it’s type, needing utilities or an continuing ongoing production facility, that has a history and has an existing utility infrastructure and spare parts inventory), magnitude or scale of operation – small operating unit or a large operation with 100’s of plant operators, it’s planned operation and approach i.e. continuous operation or some other time frame, control philosophy and the actual location of the CAPEX project (s). This publication is focused on the Front End / Order of Magnitude Capital Cost Estimates, basically the most difficult Capital Cost Estimate to compile, because of the lack of information / definition and usually “limited” time and staffing resources to complete the estimating effort that is on hand at this point in the EPC project(s) life cycle. The execution phase of a capital project involves a series of activities and steps covering a 4

wide range of management, engineering, procurement and construction functions, one of the major elements / work items is the production of a Capital Cost Estimate (s) be that estimate an conceptual (limited engineering definition) or detailed (a large amount of engineering has been completed or is available). The basic tenet of Project Management and it’s sub elements i.e. Project Control – Cost Estimating is to provide the optimum technical and business solution to the business unit planning a new plant / facility expansion(s) or upgrade(s), together with value (which of course is part of the business solution) for future CAPEX investments, the project team must hand over the optimal business evaluation at the front end stage(s) of CAPEX project, the scope, needs to be to some extent defined, some front end / preliminary design work needs to have been completed, various manufacturing / production schemes need to have been considered and scoped out. Selecting and agreeing on a new Chemical Facility / Manufacturing location is a challenging task, that needs the input from corporate engineering, corporate finance staff and the business units senior management that will take possession of and operate the completed facility - more importantly it is one in which the cost estimator can play a key role in advising / finalizing / selecting the final location(s), what are some of the key site selection factors that need to be analyzed and estimated, some of these issues and factors are listed below: • • • • • • • • • • •

What is the 5 - 10 - 15 + year production plan for this facility / and or product (including product). Will we need to get any special permits from Local or national Government agencies? Is this were future growth for this product will occur, i.e. South E. Asia or South America Were should the new facility be built, at an existing company owned facility, on a new grass roots location, or should we renovate an existing facility to accommodate this new facility and future product demands. Are there differing manufacturing processes that can be used, are there cost differences in the operating costs of these processes? Will this facility new or add on require new services and utilities. Should the capital cost estimate include land purchase, any demolition or site remediation costs? Will the new facility be given relocation grants, training assistance, tax holidays and or incentives by the state or country that the new facility will be located? Should we consider future expansions in this CAPEX cost estimate? Will we need to train / educate the plant operator? Will the new plant require state of the art control systems, i.e. Delta V or similar or can we obtain a competitive advantage by using low cost labor to operate the plant and minimize costs on the I/C account.

These questions and many more will have to be analyzed, the first activity on the this Site Selection Procedure / Process is to come up with a Front End Conceptual Engineering study that perhaps gives 3 or 5 execution options together with a Blue Sky / Order of Magnitude Cost Estimate with a +/- 25% accuracy, hopefully some of the benchmarks and data points contained in this publication will assist the reader in moving forward on this initial estimating requirement and it will be useful in the next cost estimating stages. CAPEX capital cost estimating completed in a business like manner is one of the more significant (milestones) activities of the above mention execution phase. Project specific and accurate cost estimating is the hallmark and central issue for

5

a CAPEX project success, a (high) overstated estimate could be the reason to cancel a future profitable EPC project, while a (low) understated CAPEX cost estimate containing basic errors and one that has missing scope items in contrast can lead to significant cost overruns, that cause the business unit serious problems, this situation can boomerang back on the cost estimator / project manager that compiled this estimate. All CAPEX capital cost estimates a common goal, to provide the path forward for management action - a go or no-go decision tool, how much will this project cost, what is the ROI, can we buy this product from a “toller”, does it make economic sense to build this proposed facility, should we expand this facility or at another facility, were should we locate this new manufacturing plant in North America, Europe or in South East Asia, questions and more questions that need to be resolved, of course the cost estimator can take a leading position in this decision making process. A CAPEX project (this could be any of the following), a process plant, a manufacturing / production facility, a resins plant, a food processing facility, an offshore pipeline, a state of the art - pharmaceutical facility, a research and development building, an API facility, an Animal testing / research facility, an alumina smelter, a petroleum refinery, an industrial chemical plant, or a power plant or the upgrade, revamp of any of these or similar type capital projects, plus numerous general buildings / facilities such as hospitals, airports, universities, public buildings and offices etc: THE CAPITAL ENGINEERING / COST BUDGET PROCESS ENGINEERING AND CAPITAL COST ESTIMATING This effort consists of the following tasks that need to be completed: • • • • • • • • • •

Project Commencement (Initiation / Kick Off meeting). Scope Definition / Scope Development (usually the first item to be started). Compile listing of required engineering deliverables. Determine an estimating plan. Conduct a site visit. Quantity Take Off’s. Compiling / Solicit and obtain quotes from vendors and sub contractors if time permits for major equipment and other key scope items. Summarization and calibration of estimate to match site / project specific location conditions, produce milestone schedule. Management Review and Approval (Approve – yes or no). If yes proceed with production of design deliverables, issue ASAP approved for construction (AFC) / issue revision “O” estimate / estimate basis document. WHAT IS A CAPITAL COST ESTIMATE / HOW IS IT COMPILED / WHAT ENGINEERING INFORMATION IS REQUIRED / HOW ACCURATE IS THE RESULTING CAPITAL COST ESTIMATE

The “specific” activity of capital cost estimating is characterized as the collection / assemblage / of all the Engineering, Procurement and Construction (design deliverables – drawings and specifications and other project related reports) related work, including Construction Management, Commissioning, Start Up, Validation (if required) items / enumerated costs and allowances, i.e. physical work / installation activities that are project specific or the actual effort / endeavor included within a pre-approved / established scope of work (project basis) / project brief. The major equipment,

6

engineered materials services, labor and bulk materials and in-directs to be furnished and work to be completed, that matches the projects intent and scope of work. The CAPEX capital cost estimate must provide sufficient accurate information to establish its authenticity and it should contain an adequate amount of specific details to permit future trending activities, together with future ongoing expenditure and progress analysis. The activity of Capital Cost Estimating is a procedure realized in four basic and important activities that need to be completed, these activities are as follows; note these four steps are depicted earlier in this section:

Item #

Step

1

Knowledge of Scope / Site Visit: Familiarization with SOW.

2

Take-Off: Quantifying all SOW items.

3

Compiling: Pricing out the work items

4

Summarization: Finalizing the CAPEX estimate

Description Reviewing documents and scope issues, becoming familiar with the goals of the proposed project, visiting the proposed project location (if time / estimating budget permits). Quantifying, collection and grouping the physical quantities of work, preparing a detailed listing of all materials, equipment and labor required for the proposed project, basically the take-off is a “shopping list” of all the required scope items / work items that are depicted on the available drawings or that are described in the scope of work statement. Applying the take-off and the data contained and described. In the scope of work statements with appropriate cost values man-hour units to the items of work earlier collected in the take-off phase. Selecting the value / amount to be charged to the owner / client so as to completely include all cost elements including engineering, procurement, construction, productivity, waste, square foot or M2 units, risk items, contingency and profit and all other project related cost elements such as overheads needed to successfully execute the project and realize a profit, this compiling or formatting effort could also include assigning the work to a work breakdown structure. Compiling and calibrating the capital cost estimate into a final capital cost estimate or the following “bid or proposal” document, includes assigning contingency funds, risk, profit margin and possibly shared saving.

Project deliverables / documents or reports known as “Capital Cost Estimates” are the benchmark / road map against which the project(s) / cost execution / performance on a specific project is calculated and measured and perhaps used as a future metric or benchmark. The term “capital cost estimating” as its description signifies / implies or suggests is a thought-out / educated approximation of value or worth of a product / project or activity (cost estimators with ten or more years in this business can focus in on the main cost drivers in a CAPEX cost estimate and can usually come up with an opinion whether the cost estimate is accurate or not), a specific method / approach or system for determining “the final cost” of a specific product or project. In order to adequately estimate, compile and assemble an inclusive front end or detailed capital cost estimate

7

correctly, (as per the four basic activities described above) it is essential that the cost engineer / cost estimator discernibly comprehend and “buy into” the previous described “the four step estimating process” together with the basic fundamentals of capital cost estimating methods / techniques described in the previous section(s) A – 1 and this section. The following subsections give a synopsis of these needs / essentials; they include the following important issues: 1. Understand key cost estimating terms and nomenclature i.e. definitions and common cost estimating terms. 2. Capital Cost Estimate categories (OOM, preliminary estimates, lump sum bid or validation type estimate etc), applications and uses. 3. Development of the estimating plan, who, what and when. 4. Comprehend and have a total understanding of the “scope of work” to be estimated. 5. Develop a listing of all components of a capital cost estimate, which include materials (bulks), installing labor, major equipment, and detailed engineering specific costs, construction management, validation services if required. 6. Format the CAPEX estimate to the Operating Companies - client’s code of accounts (C.O.A. / W.B.S.) Breakout estimate into direct and in-direct cost elements be Project specific (breakout into major E.P.C. categories / scope items) 7. Indirect Cost Elements. (Not part of the final project item, temporary items). 8. Consider and assign overhead costs, contingency, profit and risk Items 9. Value Engineering / Functional Benchmarking. 10. Utilization of capital cost estimate document, management tool, reporting document, procurement and schedule basis, the bench mark basis and part of closeout package. KEY CAPITAL (CAPEX) - COST ESTIMATING / INDUSTRY NOMENCLATURE The listing below provides a generic description of cost estimating / engineering terms, while not all-encompassing these are some of the basic terms and nomenclature encountered in the cost estimating / cost engineering function: Refer to section A -3 for specific CAPEX estimating methods. Accuracy:

Acknowledgment: Addendum:

ACPH: Allowances: Alternate:

The required actual range of accuracy is a report of the least expected cost and the highest expected cost, judged against to the most probable cost, many times depicted as a +/- percentage value. A standard form used by a vendor / supplier to confirm that the goods / supplies / materials / equipment have been received. A formal change or drawing modification provided prior to the actual date proposals are opened. An addendum may explain or revise the bidding documents by making additions, eliminate scope items, clarify the scope of work, or modify the bid package. The number of times per hour the entire air volume of a space turns. Supplementary funds included in a capital cost estimate to cover the cost of known but indeterminate scope requirements for an individual activity or work item to be performed. A formal instruction from the A/E, owner / client for the cost of adding or removing a scope of work item from the proposal / bid documents. The cost of adding a scope item is usually identified

8

Amortization: Ampoule: API: A.Q.: Assets: Backlog Order: Bare Cost: Batch Process: Battery Limit:

Bid Documents:

Bid Form Bid Opening: Bid Price: Binder: Bulk material:

Burden:

as an add alternate (put), the cost of pulling out a scope item is known as a deduct or alternate (take) in construction industry. A plan to pay off a financial responsibility / loan according to some agreed timetable. A small glass vial sealed after the filling process is completed. Active Pharmaceutical Ingredients. Any quantity. Cash in bank, petty cash, stocks, outstanding invoices, bonds, investments, plant equipment, stock / inventory, property, basically what the company owns. Orders that have been received but for some reason have not been accepted by the buyer. The bare cost of a project includes all costs except for overhead and profit margin. A manufacturing process that process / produces a specific quantity of product. Many times known as I.S.B.L. (inside battery limits). An imaginary border around an operating plant / production unit / manufacturing area (usually depicted on plot plans as a dotted or hatched line). Or an area encompasses one or more geographic limits, imaginary or actual, surrounding a plant or unit being engineered and / constructed or operated, established many times for the specific reason of providing a means of specifically / accounting for / designating / recognizing / locating certain area’s / operating area’s of the plant, interrelated groups of equipment or related facilities. On some occasions an O.S.B.L. unit may support 2 – 5 operating units (I.S.B.L.) or more. Usually refers to the actual manufacturing / chemical processing unit / area and includes all process / chemical production major equipment, and excludes such other shared services / amenities / utilities as storage / loading areas, tank farms, utilities, roads, admin buildings, warehouses or other (shared) supporting facilities, these items are usually known as off-sites or O.S.B.L. Instructions to bidders, information / project data and design deliverables made available to bidders, bid forms with all drawings and specifications, and proposed contract documents, including all addenda distributed prior to or during the bidding period. A form provided / hand over to a bidder, signed and tendered as the basis of the bidders proposal. A prescribed meeting held at a specified location, date and time at which sealed bids are opened, tabularize and read out loud. The proposal values i.e. offer to complete a specific scope of work. A temporary but binding commitment by an insurance company to provide insurance coverage. Basic materials procured in lots; in general, no exact item is distinguishable from any other item in the lot. These items can be purchased from a standard list description and are bought in quantity for allocation as necessary. Examples are bricks, reinforcement, pipe, conduit, fittings and cable. Includes local taxes federal, state and general insurance requirements, fringe benefits and union contract responsibilities. The actual cost of sustaining / maintaining an office (Main or branch) with support and management staff other than specific jobsite work crews / field force.

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C & F: Calibration:

Capital (Budget):

Capital (Direct Cost): Cash (Flow):

Change Control: Change in scope: Change Order:

Claim: Clean room: Contingency: Contract (Types):

Cost and freight. The demonstration that a particular instrument or device produces results within specified limits by comparison with results produced by a reference or traceable standard over an appropriate range of measurements. An organized modus operandi for cataloging, evaluating, and grading future capital expenditures for the purpose of evaluation and selection, combined with the assessment of the financing necessities / cash flow. The value / real cost of actual material and labor required / concerned in the fabrication, installation and construction of buildings / facilities / and manufacturing plants. The cash stream of money into or out of the ongoing / future project(s) or production operations. The calculations / sum or values in any time phase of all money receipts (invoices) and expenses. The process / procedures used to denote for all changes that are made to a manual or computerized tracking system. A change in intention specific to the scope of work or plan, or program that results in a pertinent disparity from the terms of an approval by senior management, i.e. AFE document. A contractual document requesting a scope modification or adjustment. A written (formal) change request made by the client or the A/E firm to the design deliverables or the completion date following contract award. By and large, all the parties that are associated with the construction contract must buy in to the subject change order for it to be an approved change order. A request for extra payment, for additional / modified scope. A specially engineered and constructed room that is control to mitigate airborne particles / temperature / humidity ISO 14644 – 1 defines the requirements of a clean room. A sum of money supplementary to the capital cost estimate to allow / compensate for errors that knowledge shows will probably be required, refer to later section for additional details. A written or oral agreement between two or more parties / entities to render a “specified” act that is enforceable by law. A legal agreement between two or more participants / parties, which may be of the kinds detailed below or a combination of the following: •

A reimbursable cost plus contract.

•

Negotiated contract.

•

Fixed-Price / Lump Sum Hard Money type contract.

•

Design / Build contract.

•

A Bonus-Penalty contract.

•

A G.M.P. (Guaranteed Maximum Price) contract.

•

A Schedule of Rates contract / Unit Price contract.

•

Concession contracts.

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Cost of Capital: Cost Control:

Cost Engineer / Estimator:

•

BOT build, operate, and transfer type of contract.

•

Major Fortune 500 type companies, many times have there own forms of contract.

•

ICE / RIBA / JCT / AIA / AGC / EJCDC / FIDIC contracts.

•

Plus numerous other applications.

The cost of borrowing money / loans from internal or external sources. A cost control system procedure is used to control / monitor actual V’s budget cost expenditures. The submission of measures / work actions / flow to follow the advancement / execution of an (EPC) engineering procurement and construction projects: An individual / in many cases an engineer whose expertise and knowledge are called upon to compile and produce the following estimating / cost engineering deliverables: •

Cost index: Continuous Process: Contract Documents:

Cost: Cost savings: cGMP s: D.F.: Design-Build Process Design to Cost: Direct cost:

Capital cost estimating (CAPEX -through all phases of construction and all types of estimates, i.e. Front End thru Detailed Estimates / Lump Sum Bids). • Change order production and related audits. • Quantity surveys and related audits. • Cost engineering reports (bi-weekly and monthly). • Project control (trending) and administration activities. • Cash flow projects / management / forecasting. • Value engineering (ongoing though project life cycle). • Project / construction management assistance. • Claim production and mitigation. • Planning and scheduling. A value (data point) which relates the cost of an item at a precise point in time to the analogous cost at some subjectively specified time in previous times. A method of manufacturing at a continuous production rate while still maintaining sampling, inspection and quality goals. The contractual agreement (terms and conditions), the design / engineering deliverables, project drawings, specifications, data sheets, performance guarantees supplementary conditions and addenda informing the various parties to the contract of the projects scope the that are in effect in the signed contract. The actual value or the price to be paid for a specific contract element or specified line item. A reduction in forecasted cost expenditures below the projected value of a specific scope item. Current Good Manufacturing Practices Damage free. A course of action in which an individual or entity / firm takes the on responsibility under a single contract to complete both the detailed design and the construction effort. Allocating a fixed monetary amount / value to design a specific system or component. Real / tangible costs or direct value / that can be directly ascribed

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Distributed Costs: Earnings: Estimates (Types and Accuracy):

to a specific item of work / scope or actions. As it applies in the construction industry cost of installed major equipment, bulk and engineered materials, and labor directly concerned in the physical construction of the permanent plant, building or facility. A specific cost element that is pro-rated usually as a percentage value over other itemized cost elements. The variance between income (sales) and operating / production costs. To understand the basic differences between an Order of Magnitude Estimate and a Definitive Capital Cost Estimate the following should be understood. An Order of Magnitude Estimate are typically complied by utilizing historical cost data, cost capacity curves, exponents, Wroth, Miller, Cran, Guthrie, Lang, Chilton, Peters / Timmerhaus and Compass type ratio’s / factors. Definitive Capital Cost Estimates are compiled from defined engineering deliverables; say 40% - 70% (or in some cases the detailed design is 100% complete), of the detailed engineering is completed. An appraisal / listing / collection of all the future and anticipated expenditures (direct and indirect construction cost elements) and allowances (provisional sums and allowances) of the components of a project or endeavor as described by an established and approved scope of work statement together with any specific drawings and specifications: Some of these estimates are known as: OOM / Front End / Conceptual etc. AFE / Funding / Preliminary / Semi-detailed. And Lump Sum / Hard Money / Tender submission / Turnkey etc. The above nomenclature are perhaps the most widely used capital cost estimating types used for a manufacturing / process industry facilities, they are described as follows, however there is possibly four to ten additional (hybrids) types that are used throughout the engineering and construction industry on perhaps a less frequent basis some of these are described within this publication: Front End Estimate / Order of Magnitude Estimate / O.M.M. - an early (in the projects life cycle) estimate made with no complete engineering deliverables or project specific data / or information. Illustrations would be: end product unit method, square foot / square meter unit prices, an estimate from historical percentages, cost capacity curves, an estimate using exponents i.e. 6/10th type factors, or an approximate percentage / ratio type estimate. Lang or Wroth, Peters / Timmerhaus, Cran, Guthrie, Hand, Miller or Chilton type published multipliers. It follows that a capital cost estimate of this kind would be accurate within +40% or -30% range. Typically less than 5% of the detailed design has been completed. AFE Funding Estimate / Budget / Preliminary Estimate / the detailed design in this situation would perhaps be in the 10% to 35% completion range. A budget estimate is prepared with the use of some basic engineering such as preliminary P. F. D. ’s / P. & I. D. ’s general arrangement drawings, approved / preliminary plot plan, layouts, and preliminary major equipment list together with outline specifications /materials of construction and or pricing,

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Escalation:

Escalator Clause: Extra Fee: Field Costs:

F.O.T.: Function: Fringe Benefits:

General Conditions:

a motor list, a preliminary instrumentation list, a preliminary piping listing. In general it is probable / likely that an estimate of this type would be accurate within +25% or -20% range. Lump Sum Bid Definitive / Hard Money Bid / Tender submission Estimates – this kind of capital cost estimate is an estimate organized from perhaps 70% to 100% complete engineering deliverables. The engineering deliverables include approved / signed off general arrangement drawings, signed off piping and instrument diagrams (P. & I. D’ s), electrical area classification map, single line electrical diagrams (home runs), a major equipment list and related data sheets and quotations, motor lists, structural drawings, insulation requirements, soil data and layout of major equipment foundations, building / facility drawings (indicating specification and footprint size), a detailed piping list / specification, instrumentation list and project specifications a listing of offsite O.S.B.L. requirements and a scope of work statement, together with a detailed plan 30 –90 look ahead schedule and a project execution basis - approach, complete with a risk evaluation study and contingency evaluation (perhaps a Monte Carlo simulation). It is anticipated that an estimate of this kind would estimate would fall in the range of accuracy of +10% and -5%, due to the fact that the design deliverables detailed engineering level of effort would be perhaps 70 –100% complete, with perhaps a contingency of 5% - 10%. Most probably some of the construction would be being installed i.e. the foundations and the long lead major equipment items would be on order. The value / stipulation in actual or estimated costs for future increases in the value of major equipment, bulk / engineered materials, labor, engineering etc. due to ongoing increase in prices, i.e. sometimes referred to as inflation. Article included in a contract / agreements / terms and conditions, allowing for future price adjustment based on changes in specific escalation / inflation value. An expression sometimes used to signify an item of work involving additional scope and perhaps cost. The “cost/ price” for the use of a contractor’s business / establishment to the amount specified in the contract, sometimes known as margin. Indirect related cost of engineering, procurement and construction specific to the project’s field performance / site establishment / preliminaries Division 1 effort as opposed to direct cost, i.e. direct labor, equipment and bulk materials. Free on truck. The particular reason for which a building / facility / activity is completed for its intended purpose. Worker / Employee related costs / charges specific to the cost of employing an individual; operating expense of employment not paid directly to the employee, welfare benefits typically these include vacations, public holidays, sick day(s) paid leave / absence, (F.I.C.A), social security, public liability insurance, etc. Many times refereed to as Division 1 or Preliminaries. A specific section of the contract documents: They outline the tasks, requirements and relationships of all parties to the contract, as well as any special requirements / needs and conditions germane to the main contract.

13

Good Manufacturing Practice:

Gross National Product G.N.P.: Home Office Costs (EPC Firm Costs):

I.T.C.: Indirect Expense Invitation to Bid L & D: Labor Burden: Labor Cost(s):

L.P.C. L.T.T.: Mark-Up: Monte Carlo Technique:

N.C.: O.B.L.: Off-sites:

Are the undertaking / guarantee of a quality product through quality of the manufacturing / fabrication operations of the whole thing associated with the product from concept through manufacturer? Good Manufacturing Practices requires that validation be performed. Validation is completed through three phases or steps: (1) Installation Qualification (IQ), (2) Operation Qualification (OQ) and (3) Process Qualification (PQ). The IQ stage is the engineering function, after consultation with appropriate operations / research / technical staff. OQ stage is still an engineering task but more of a collaborative task. It is the exhibition and audit trail of what has been designed and assembled / constructed will operate and perform its ultimate function. The PQ stage is more often than not conducted by the operations / research / technical group, to make sure that the equipment will operate and within envisaged operating parameters. All of three steps must be adequately documented. The summation of national production of goods / services, manufacturing production at present market values. Costs associated with the performance of business activities which can be allocated to particular ongoing projects, typical items include engineering (civil, electrical, process etc.), drafting, procurement, estimating, value engineering, document control, expediting, QA/QC activities, inspection, administration, copying services, telephone, CAD, validation etc. Investment tax credit. Basic overhead related expenses (rent, salaries, telephones, office supplies etc), common office expenses, indirectly incurred / required and not precisely related to specific project. A section of the bidding package / RFQ that request bids for a project. Loss and damage. Related taxes, emoluments and insurance expenses originating on labor payroll costs (LPC) that an employer is lawfully obliged to pay on behalf of his or her employee’s. / Labor force. The base salary or stipulated fixed hourly rate, plus all related fringe benefits and labor related costs associated with unit labor costs, which can be allocated to specific C.O.A. items / work, end products or specified cost area. Labor payroll costs Less than truckload. A multiplier / percentage add on. Used in construction estimating and forecasting, is usually a percentage uplift to recover and capture and recover general overhead costs and profit. A project control statistical tool or model used to evaluated contingency needs related the a the level of known scope of a CAPEX project, a mathematical replication / model technique by which approximate assessments / ranges i.e. confidence levels are obtained in the resolution of mathematical models so as to establish the range or most advantageous cost or confidence level that is utilized to determine the rand or value of contingency that should be applied to the cost of a completed CAPEX estimate. Range estimating is a well-known application of this approach. Notification charge. Overland bill of lading. Specific or shared utilities / services / amenities outside the battery

14

OPEX Overhead Cost: Pledge: Price: Process: Productivity: R.F.Q. Scope of Work: Secondary Air: Start-up costs:

Ton / Refrigeration: Turnkey: U.S.P.: WFI: V.A.T.: Validation: Validation Protocol:

Value Engineering:

Ventilation air:

limits of process units / manufacturing unit, includes such items as pipe racks, tank farms, loading jetties, power or steam generation, shared support systems / services, i.e. waste treatment facilities and office / changing rooms / control rooms and other administrative facilities – gate houses, warehouses, lay down areas and possible parking lots etc. Sometimes called or known as O.S.B.L. i.e. out side battery limits. Operating Expenses An actual support related cost involved in the execution of an specific function / activity To commit by a promise. The value / worth / sum of money required or received for an item / object (e.g. the real value or asking price). A progression of activities / events that result in a new facility or product. The assessment of labor effectiveness, judged against to an established data point as compared to an area of significant knowledge i.e. industry standard man-hours. Request for price. The description of the necessary major equipment, services, labor and materials to be furnished, and the work or effort to be completed. Air introduced into a combustion chamber of a boiler to maintain correct fuel / air ratio. Required production / operating needs / resources equipment (labor and materials) to commence production the chemical plant / manufacturing facility into partial or full production, typically happens between the completion of construction (practical completion) effort and commencement of the manufacturing plant production operation / activities. A means of expressing cooling capacity – 1 ton = 12,000 BTU’s A contract that provides all the required services to construct a building, plant or facility. United States Pharmacopia. Water for injection - Water purified by distillation / reverse osmosis (contains no added substances). Value added tax. A documented program that provides a high degree of assurance that a specific process, method, or system will be consistently producing a result meeting predetermined acceptance criteria. A written plan stating how validation will be conducted and defining acceptance criteria. For example, the protocol for a manufacturing process identifies processing equipment, critical process parameters and/or operating ranges, product characteristics, sampling, test data to be collected, number of validation runs, and acceptable test results. A routine function that is focused at the engineering / design / procurement / construction effort, typically completed at the 10% 50% design effort. The goal of value engineering is to design a facility or plant that will provide the lowest life-cycle costs or offer the best “real” value while fulfilling all performance goals / expectations and other specific criteria it was originally created for, e.g. cost, reliability and quality. The portion of air supplies which comes from outside, plus any re-

15

Vivarium V.N.X.: Warranty: WFI: Worth:

circulated air that has been treated to maintain the desired quality of air within a designated space. An area (indoor) for keeping, breeding and raising animals. Value not exceeding. Contractors / Manufacturer’s certification of quality and performance that many times includes an assurance of satisfaction. Water for injection The minimum overall capital expenditure to complete or perform a specific activity or function.

As mention previously the OOM / Front End / Conceptual / AFE / Funding / Preliminary / Semi-detailed And Lump Sum / Hard Money / Tender submission / Turnkey etc, are perhaps the most widely used capital cost estimating types used for a manufacturing / process industry facilities, however there is possibly four to ten additional (hybrids) types that are used throughout the engineering and construction industry on perhaps a less frequent basis some of these are described in more detail on the following pages: Additional Types of Capital Cost Estimate / Classifications / Accuracy (1) Ball Park Estimates / Front End / Order of Magnitude: Application / Use: Front end feasibility studies / Starting Point Evaluation Expected Accuracy: range +35%, -25% Required Data / Deliverables: Engineering complete 0 – 5%. A preliminary scope statement: This capital cost estimate type is necessary because there is a requirement by the business unit for very early, first time / very approximate estimate for a possible new business opportunity or to upgrade or optimize a current operating plant. These early CAPEX estimates are typically made using, ratio’s - approximate percentage / historical in-house data, ratio type estimates such as Lang or Wroth, Peters / Timberhaus, Cran, Guthrie, Hand, Miller or Chilton type published multipliers are good examples of this initial approach, elements of actual historical past project costs and factoring / exponents for differences in capacity i.e. various case studies are used to fine tune the cost estimate, locations (location factor), off sites – usually a percentage value, escalation, spare parts, engineering costs, royalties etc are added as a line item to the estimate. These initial cost estimates are made by cost engineers / estimators / project managers most familiar with the process / technology or facility being considered. A basic scope of work statement is also required and any relevant engineering data. (2) Business Evaluation / Pre - Funding Study Estimate / R.O.I. Analysis: Application / Use: Capital project forecasting; process economics Expected Accuracy: range +30%, -20%. Required Data: / Deliverables Engineering complete 5 – 10%. Preliminary scope of work statement: Major Equipment list (outline specifications, capacities, materials of construction, together with perhaps 50% - 70% of the major equipment priced out from at least one vendor) A plot plan indicating locations of major equipment, P.F.D.’s sheets (main piping runs and materials of construction, piping take-off’s, electrical motor

16

list and main electrical equipment listing, approximate line sizes, insulation requirements M.E. and piping) Preliminary P. &. I. D. ’s. Preliminary site plan, including: / Sketches / Photographs. I/C control philosophy, Facilities and buildings, structures pipe racks (type, size, height) I.S.B.L. Storage, tank farms (capacities, materials of construction) Support services, off site requirements (services required, capacity): Royalties, spare parts list, EPC engineering manhours including items mention in (1) above. (3) Authorization for Funding, sometimes called an (AFE Estimate) / Preliminary Estimate. Application / Use: Authorization Request submittal to B.O.D. major scope changes for approved projects. Expected Accuracy: range +25%, -15% Required Data / Deliverables: Engineering complete 10 – 30% Scope of work statement with execution approach. • • • • • • • • • • • • • • • • •

Major Equipment list (specification complete, with budget semi firm proposals / prices from vendors). P.C.A.’s. Phase 1 Environmental Site assessments. Preliminary P. F. D.’s. Preliminary P. & I. D.’s 20 – 50% complete. Facilities, buildings, structures, pipe racks, layouts / materials of construction. Major equipment locations and foundation requirements. I.S.B.L. Tanks / storage needs. Support services / off site requirements. Site plan (showing process area, tank farms, and off sites). Main pipe headers / Pipe bridge locations and tie-in points. Electrical scope of work / classification together with preliminary motor list. Instrumentation device list. / Control philosophy. Electrical area classification. Insulation, tracing and painting specifications together with line lists. Royalties, spare parts list, EPC engineering man-hours. All items previously mention in (1) and (2). (4) Control Estimate / Detailed Estimates / Hard Money Proposal Refer to additional data / estimating approaches contained in following sections. Expected accuracy +5%, -5%. Required Data / Deliverable: Engineering complete 50% – 100% (closer to 100% would provide greater accuracy) Scope of work statement with execution approach and detailed EPC and start up Schedule, including items (1), (2) and (3) mention above. Refer to later section for specific details / approaches on compiling this capital cost estimate. The following listing of estimating data / types of estimates is recommended by the American Association of Cost Engineer’s (A.A.C.E.). The American Association of Cost Engineers (A.A.C.E.) perhaps the most widely respected authority on capital cost estimating and cost engineering, has outlined the following most widely used types / classifications of capital cost estimates. In ever-increasing order of accuracy, of course it goes without saying that the more advanced the

17

engineering effort is the greater the accuracy of the estimate, the major categories of capital cost estimates considered by AACE are as follows:

Name 1. Front End OOM Order of magnitude 2. Budget / AFE (approval for expenditure) 3. Definitive / Lump Sum / Fixed Price

Typically Completed Engineering 0-10%

Accuracy Range

5-20%

-15%, +30%

30-100%

-5%, +15%

-30%, +50%

Another method for determining contingency and accuracy is as follows: Type of Estimate OOM / Ball Park / Blue Sky Conceptual / Pre - Design / Feasibility Front End / (FEED) / Preliminary Budget Control Lump Sum / GMP / Turnkey

Contingency % 30 - 40 20 – 30 15 – 20 7.5 – 15 2.5 – 7.5

Accuracy % +/40 – 50 20 – 30 15 – 20 5 – 10 0-5

The best solution is to use an average of both methods indicated above to arrive at a value that meets the reader’s needs. Cost Estimators / Engineers typically can utilize the 3 to 6 capital estimating types / methods that are described below, they can be one of the following or some of the estimates that were discussed earlier – there is no hard and fast rule to this selection / choice. 1. 2. 3. 4. 5. 6.

Ballpark estimates / Blue Sky / O.M.M. Square / cubic foot estimates. Combination of (3) and Semi detailed estimates (partial take-off). Systems / assembly estimates Owner’s / engineers estimate. And Contractors Lump Sum / Hard Money / GMP proposals.

As has been mentioned previously the engineering / construction – process – manufacturing industry is scattered all around the world, there is no common denominator when it comes to a standardized estimating methodology - different countries / different companies / different industry sector all use different terms / nomenclature for in compiling and discussing CAPEX estimates, there is no standard name or classification / approach. Again we are making a partial list of these names that the writer’s have come into contact with after working in this arena for almost thirty years, these (22) names - designations - estimates include:

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• • • • • • • • • • • • • • • • • • • • • •

Early Identification Business Estimate. SWAG. Ballpark. Blue sky. Front-end study. Order of magnitude. Conceptual. Pre-Design Case Study. Preliminary. Semi – detailed. Square Foot. Cubic Foot. AFE / Budget. Final / Project Control Estimate. Guaranteed maximum Price GMP. Tender submission. Control estimate. Turn Key Lump Sum (TKLS), usually the estimate is converted into a lump sum at a stipulated milestone i.e. 30% of detailed design. Turnkey. Lump sum. Hard money. Definitive Capital Cost Estimates.

ENGINEERING DELIVERABLES NEEDED AND BUDGET PRICE TO COMPILE VARIOUS COST ESTIMATES (2008 NORTH AMERICAN BASIS) AND TO SUPPORT ESTIMATE BASIS: (Includes Front End conceptual engineering and estimating activities, with procurement group involvement in obtaining budget quotes.) Engineering Deliverables & Tasks

(1) Ball Park Conceptual Estimate

(2) Business Evaluation / O.O.M. Estimate

Objective of Estimate

Initial / Front End Phase Assessments & Economic Appraisal

Initial / Front End Phase Assessments & Economic Appraisal

Estimating Procedure Utilized

Typically Supported by Historical Cost Data Points, Return Cost Data for Comparable Plants, Location Factors and

In -House Estimates Supported by. Initial Major Equipment Lists and Facility Operating Needs,

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(Hybrid of 2 & 3) F.E. / Semi Detailed Estimate Preliminary / Front End Studies (For Business / Venture Team). Verbal / Phone Quotations Supported by. Initial Major Equipment Lists and Facility Operating Needs,

(3) Budget / AFE Estimate

(4) Lump Sum / Control Estimate

Project Definition Package completed

EPC Project Execution Basis

Semi Firm Quotations Based on Equipment Lists and Equipment Facility Operating Needs, Location

In depth Estimating Procedures with Firm Quoted Major Equipment Costs. Utilization of EPC Contractors

Computerized Estimating Systems Compiled by

Project Control Group with support of a Purchasing Agent in obtaining M.E. pricing

Location Factors Computerize d Estimating Systems Project Control Group with Project. Engineering. Support and Purchasing Assistance

Estimate Accuracy Range

-25% +35%

-20% +30%

-/+ 20%

-15% +15%

-5% +5%

Capital Cost Estimate Preparation Cost Estimating & Engineering man hours at $65 / hour (Based on $5 to $25 million Project)

$5K - $15K

$15K - $40K

$40K-$100K

$100K-$250K

$250K $500K+

75 to 230 M.H. ’s

150 to 600 M.H. ’s

600 to 1,500 M.H. ’s

1,500 to 4,000 M.H. ’s

Milestones / Remarks

Compiled with less than 5% of the detailed design completed

Compiled with less than10% of the detailed design completed

Compiled with less than 15% of the detailed design completed

Compiled with less than 25% of the detailed design completed and key major equipment items have been places on order

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Location Factors Computerized Estimating Systems Project Control Group with Project. Engineering. Support and Purchasing Assistance

Factors Computerized Estimating Systems

In-house Computerized estimating system

Project Control Group with Project. Engineering. Support and Purchasing Assistance

EPC Contractors / Detailed review by Cost Engineering Group

4,000 to 8,000 M.H. ’s

Typically compiled when the detailed design and the engineering deliverables are between 35% and 60% completed

Scope Definition

Information of Project (Initial SOW statement is available) Historical benchmarks of completed facilities exists

Information of Project / Location Operating Methods (Preliminary SOW statement is available) Historical benchmarks of completed facilities exists

Information of Project / Location Operating Methods (Preliminary SOW statement is available) Preliminary Plot Plan, Preliminary Execution Plan Milestone Schedule

Information of Project / Location Operating Methods (Detailed SOW statement is available) Preliminary Design Specifications 100 + Activity Schedule

Process Engineering Deliverables

F E / Initial Process Scope of Work Document is Commenced Initial (P.F.D. ’s)

Initial Process Scope Document Preliminary Process Flow Diagram (P.F.D. ’s)

Preliminary Process Flow Diagram (P.F.D. ’s) Preliminary (P. & I. D. ’s)

Detailed Process / Project Scope Document Preliminary (P.F.D. ’s) Preliminary (P. & I. D. ’s) 25% to 50% completed

Major / Process Equipment

Initial List / M.E. Count

Preliminary List / M.E. Count / Size Magnitude / Operating Constraints

Preliminary List / Size Magnitude / Operating Constraints Verbal / Fax Telephone Vendor Quotes on key Major Equipment items

Semi-Firm List / Size Magnitude / Operating Constraints Verbal / Fax Telephone Vendor Quotes on key Major Equipment items / Sketches / Layout Drawings Major Equip. Semi Firm Quotes

Off sites (Support Services / Utilities, Storage)

Factored Typically 30% to 70% of I.S.B.L. value

Factored Typically 30% to 70% of I.S.B.L. value

Scope out work items / Initial Off sites / Support Services Flow Diagrams

Scope out work items / Project Team needs to define and scope out.

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Information of Project / Location Operating Methods is fully scoped out (Detailed Execution Approach and Approved SOW statement is being utilized) Detailed Design / Procurement / Construction effort is well advanced Detailed Process / Project Scope Document Detailed Engineering (P. & I. D. ’s) signed off or 70% complete or better Definitive / Firm List / Size Magnitude / Operating Constraints Written / Itemized Vendor Quotes on all Major Equipment items. (EPC effort should be well advanced, approx 50% 70% complete). In depth control estimate by EPC Contractor, defining all

Project Team needs to define and scope out. Resolution Allowances added to undefined scope.

Resolution Allowances added to undefined scope.

required work items. Resolution Allowance should not be required at this advance point in the projects life cycle. Detailed Estimate

Indirect Field Costs

Factored

Factored

Semi detailed

Semi detailed

Resolution Allowance to known scope of each account / sometimes known as undefined scope allowance.

N/A Assumed to be included in factors

N/A Assumed to be included in factors

5 – 10%

5 – 7.5%

Less than 5%

EPC Contractor / Office Costs

Factored

Factored

Factored / Semi Detailed

Factored / Semi Detailed / Detailed Estimate

Detailed Estimate

Spare Parts / VA / I-C Programming

Factored

Factored

Factored / Semi Detailed

Factored / Semi Detailed / Detailed Estimate

Detailed Estimate

Factored

Factored

Factored / Semi Detailed

Factored / Semi Detailed / Detailed Estimate

Detailed Estimate

Factored

Factored

Factored / Semi Detailed

Factored / Semi Detailed / Detailed Estimate

Detailed Estimate

25% or Greater

15 - 25%

10 - 20%

7.5 - 15%

2.5- 7.5%

80% To 85%

80% To 85%

80% To 85%

80% To 85%

GC / Field Estimate

Owner Costs Contingency Range (Does Not Include Revamp Considerations or Process Development Allowance) Typical Industry Confidence Range (using REP) i.e. Range Estimating Program

80% To 85%

Notes. C and D above could be reversed dependant on execution strategy. C could be used as a check estimate of the AFE Estimate.

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Resolution Allowance (Undefined Scope Allowance) is an allowance / estimate for required scope that has not yet been defined, an example of this is floor drains, the scope requires floor drains however the engineering is only 20% to 50% complete, floor drains are not shown on current drawings, but we know they are required, typically a resolution allowance of 5% would be added to the drainage account to cover the cost of this undefined scope item, it should not be taken out of the contingency value. There are two points of views concerning Capital projects; these points are what / which organization is involved with the Capital project an Owner or Engineering, Procurement and Construction (EPC) organization. Capital projects and the eventual estimating effort and the final cost has differing challenges / goals for each of these organizations, the Owner company needs to ensure that the capital project is executed within the preestablished budget (the AFE) the agreed to capital cost estimate – no major cost overruns, the EPC organization is challenged to make a profit (fee) on there projects and to keep the workforce / staff busy and billable (at the same time ensuring that a positive relationship is maintained with the Owner – that will result in additional projects in the future), the cost estimate is the established metric by which the project is measured – for an Owner it is ensuring that the approved budget is not exceeded (we don’t want to go back to management for additional / supplementary AFE funds and for the EPC contractor it is the making or exceeding the established fee, for both organizations it establishes the “cost” specific to scope of work that is currently established, the opposing goals mentioned above (of the Owner and the EPC contractor) are many times the cause of problems and friction on CAPEX – EPC projects, the owner doesn’t want to hear about extras and the contractor is of course motivated to issue change orders to recoup all the costs they have expended, this is why bi-weekly change order meetings are so important. Capital projects that are deemed a success by the appropriate stakeholders (Owner and EPC contracting entity) are identified as the capital projects that meet the “three legged stool” criteria, (refer to Section A - 3) (1) Schedule (executed and handed over to the future operating / business unit in accordance with the preestablished milestones - completion date.) (2) Cost (did the cost fall within the preestablished AFE funding basis, did the EPC effort realize an adequate return on investment ROI), for an EPC firm did we make a reasonable return / fee on our activities and (3) Quality / Safety (can facility produce / meet pre-established production goals and current and future commercial metrics, was the EPC effort safely performed and is the new facility safe to operate.). Capital projects that meet the “three legged stool”, criteria, will enhance future sales and profit margins, just as CAPEX projects that fall outside the “three legged stool” model could be considered failure. History has proved over and over that to be successful in executing a CAPEX - Capital project(s) that a road map needs to be established and closely followed (an outline of the scope of work, project goals, milestone schedule and cost estimate / budget. It must be recognized by the “project team” that external factors such as worker productivity, contract type, market conditions, climatic condition (hot or cold working conditions), sophistication of plant, government involvement / changes in tax structure when project is being executed (similar to what has occurred recently in a major oil producing country in South America), team continuity and a whole host of other project specific situations could seriously impact the cost of the final facility, if 60 % - 75% of the scope can be “nailed” down, i.e. PFD’s, location, major equipment requirements, control philosophy etc, the resulting 25% - 30% of the unknown / risk items can be somewhat identified and costs can be allocated to these items, an adequate resolution allowance and contingency can be established, to protect the bottom line cost of the capital estimate. The following chart summarizes the eight steps of a project management / capital cost estimating process and the level and type of capital cost estimate effort required to compile various estimating types (A - G. refer to

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Section A - 3 Page 6 – 18 for description of seven capital cost estimating methods (A G) and nomenclature and required design deliverables. In reviewing this chart consider required accuracy of estimate, timing considerations – milestones of when estimates should be prepared, resources needed to establish the scope of work, the management approval cycle, and funding approval limitations / monetary approval levels and the experience of the estimating / engineering resources compiling the capital estimate. Step Number

Business Unit / Project Management Activity

1

Business unit identifies potential market need / commercial prospect – need for further evaluation – eventually leading to a CAPEX project.

2

Produce an initial Front End scope of work statement that satisfies the business unit’s current and long term business plan and goals. Consider various alternatives (Case Studies) / business solutions (i.e. tolling or produce product in house) at a new or existing manufacturing / production facility.

3

Capital Cost Estimating activity / Deliverables A. Blue Sky (refer to Section A – 3 – page 7) Tons or pounds of product / barrels of oil Capacity driven factors / exponents Ratios A. Blue Sky B. Scale Up / Capacity Estimates SF/ M2 unit costs. (Hybrid of A & B) B. Scale Up / Capacity Estimates C. Ratio / Factored Method D Some initial F.E. / Semi-Detailed Engineering Estimating activities refer to Section D-1

Choose best business solution / technical approach. Utilize 3rd party engineering firm to compile conceptual / PCA / preliminary / design. Obtain full or partial AFE funding. Produce preliminary – semi final SOW / Path forward statement. Develop detailed SOW and getting operating unit approval of required scope and select EPC approach / select EPC contracting organization.

C. Ratio / Factored Method D. Front End Semi Detailed Estimate E. AFE Funding estimate (Refer to A-3 page 9)

6

Audit / monitor / trending activities.

7

Complete and hand over facility to business unit.

F Control Estimate G Lump Sum Estimate Produce any applicable change orders Produce any applicable change orders / reject or accept any claims

4

5

E. AFE Funding estimate (used as initial control tool) F Control Estimate G Lump Sum Estimate

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Remarks / Comments

Typically less than 1 - 2.5% of future design deliverables completed, or it could be the situations were no design work has yet started. Cost estimate would be based on a combination of factors, ratios and exponents, the resulting accuracy would be +/-30% Less than 2% - 5% of future design deliverables completed, could be an update of step # 1 and SF / M2 / Cubic Feet historical unit costs would be the desired estimating solution. Less than 5% - 10% of detailed design completed (this could be considered preliminary engineering – the detailed engineering has not commenced), initial location and layout may be identified; early PFD’s and preliminary engineering studies need to be completed (consider different locations, different technology, different manufacturing steps). Still less than 10% of detailed design completed – or the estimate is based a on preliminary engineering as # 3 above, location, production rate, technology and layout is identified. Conduct Value Engineering Study or in step 5. Conduct 2 day Value Engineering study / session. Engineering / detailed design should be in the 20- 50% completion range, engineering deliverables should include. Site development plan, PFD’s, P&ID’s, M.E. list, E&I control philosophy, Electrical classification, foundation plans, structural arrangements, building sections, footprint of facility and itemized listing of engineering and CM activities and any other significant project related scope / cost item. Conduct cost engineering activities, implement bi-weekly / weekly cost trending meetings, and continue to monitor / trending activities. Complete final cost report and compile benchmarking project database for future estimating / forecasting

applications. 8

“Lessons learned” -Internal management review (Senior Operating group staff and “Construction Services” Senior Management / Project Manager / Estimator / Cost Engineer).

Produce executive summary type report, indicating lessons learned, success’s and problems encountered, reconciliation of forecasted and actual project goals

Report based on original project concept and goals of project, compared to final close out report and a detailed comparison of final cost, safety and schedule (plant handover).

Note: the above mentioned Capital Estimating Deliverables should contain supporting backup, basis of estimate, accuracy of the resulting estimate, basis of escalation, estimating assumptions, exclusions, listing of engineering deliverables the estimate is based upon and other items that are described in greater detail in Section A - 3. A CAPEX Estimate / EPC Estimate can never be considered complete without the approval buy-in of Senior Management (this could mean both engineering and construction support management as well as the business unit management (the management that will operate the facility when the “project” is completed). A cost estimate to be a useful tool must contain enough detail for management to choose possible different approaches and of course make sound business decisions, it should contain: A scope of work statement, a Major Equipment listing with costs (Preliminary / Budget quotes were possible) a field labor cost allocation / report (indicating total manhours and appropriate dollar values) an detailed engineering / design spreadsheet (total man-hours by month and appropriate dollar values) a breakout of field in-direct costs – division 1 / preliminaries a major milestone schedule that the capital estimate is based upon, together with details on how escalation values were established, fees, insurance costs, currency exchange rates utilized and any other high risk items that need to get buy in by senior management. To reiterate on what was earlier mentioned, the building blocks and components of the production of a high-quality capital construction cost estimate(s) and the education / knowledge requirements / job experiences / credentials of a successful estimator are, at least 5 years hands on experience in compiling all types of construction estimates, construction field experience / knowledge of the total engineering, procurement and construction process cycle, this perhaps is one of the most important attributes, insight of the construction process, including the construction procurement cycle, i.e. the INP cycle and engineering and design techniques that are utilized by the design team, installing / construction methods, capital major equipment types and construction crew make-ups, bulk and engineered materials, an understanding of basic economics and knowledge of the proposed project execution minutiae, detailed knowledge of capital cost estimating techniques and bidding procedures, an understanding of all current estimating tools, including, rotometers, scale rules, 3 D CAD drawings, digitizers, lap top computers, to the latest linked computerized spreadsheets, access database versions or a complex purpose made computerized estimating project control software package, a “roll up your sleeves / take charge" attitude and aspirations for constant improvement, an open mind to new estimating / cost control methods, a penchant for collecting historical / actual construction cost data, together with organizational / filing skills, an understanding of what the purpose of the capital cost estimate, is it a budget, a study / ROI feasibility evaluation, or is it an update of an earlier compiled estimate, the “gumption” to speak up when problem (estimating / cost trends) are encountered, a flexible work ethic and the ability to work flat out for extended periods to get the job done. It is an interesting and rewarding job, every project is different; construction (CAPEX) projects by their very nature are a one-time effort

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lasting from six months to possibly three years. It is rewarding profession and it’s a job were every day is a new challenge. Developing an Estimate Plan Many owner companies i.e. corporate engineering departments (and in some cases EPC & A/E firms) in the last ten years have significantly downsized there estimating groups, many of these owner organizations now rely on outside EPC, A/E, CM and specialized consulting firms to take care of there estimating needs and deliverables, there are pluses and minuses associated with this trend, the owner company can save overhead costs by not having full time in-house estimating resources, however there are distinct minuses in not having dedicated estimating professionals available when they are needed, plus in-house estimating data usually fails to be incorporated into these third party estimating deliverables. The purpose of the following list is to make sure that no scope of work item is overlooked in the estimating effort, the list however is not all encompassing, the objective to make sure a cost is assigned to each line item in the cost estimate and to ensure the scope of work is capture within the current estimate. • • • • • • • • • • • • •

• • • • • • • •

Description of Project Location of Project: Responsible individuals / design groups responsible for providing engineering deliverables and quotations. Project Manager / Lead Estimator responsible for estimate preparation: Provide a brief Scope of Work Description: Date and revision number of when estimate(s) was compiled: Type of Estimate completed (OOM, Preliminary, Detailed etc): Type of Project New (Greenfield) / Retrofit (Brownfield) / Upgrade / Debottlenecking / Add-on: Accuracy of completed estimate: Validity of Estimate (1, 2 or 3 months or longer) Estimate is based on specific project major milestone / schedule: Hazardous Materials / contaminated soil plan and cost issues / considerations: Basis of Refurbishment / Demolition / Dismantling / Relocation considerations: Basis of labor rate build up (indicate survey date and basis, union , non-union, merit shop, basis of base rate, date of next pay increase fringes, Workers Compensation Insurance, FICA, State Unemployment, home office overhead, profit and any other add-ons). Comment on any additional costs or bonuses required in attracting labor or sub contractor bids. Describe Contracting / Procurement / Construction Approach estimate is based on: Is schedule based or normal construction or fast track construction. List of Engineering Deliverable, sketches etc, to be utilized in compiling estimate, together with date and revision: Provide details WBS / Owner Code of Accounts / SAP coding system that was utilized. Description of how unknown scope / design development / resolution allowance / growth allowance was evaluated and estimated: Pricing Basis (describe percentages of estimates, quotes or bids) Worker Productivity and basis of productivity assumptions.

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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Describe estimating methods / techniques to be used for estimating major scope items: Description of Capital and Expense basis. Description of Inside Battery Limits (ISBL) and Outside Battery Limits (OSBL) scope and issue that impact the CAPEX estimate: List utilities / services that will be required or that are part of the estimate, i.e. waste water treatment, sub stations, jetties, roads, rail spurs, weighbridges, loading areas, flares etc. Description of waste and material take-off allowances: Basis of Allowances / Provisional Sums / Prime Cost sums. List owner supplied equipment and dates they must be at site to maintain schedule: Describe foreign currency issues and stipulate currency exchange rate / date basis. List of Major Equipment (Tagged items): Freight (domestic and ocean freight basis and insurance issues): Major Equipment Installation / Heavy lift crane requirements / Temporary storage issues: Detail Import duties / tariffs. Use of refurbished / relocated equipment / used equipments: Describe scope and basis of demolition / dismantling costs: Describe and list details of Site works. Basis of Excavation / Soil disposal / Civil / Foundation issues: Rock removal / Well pointing / High water table, unsuitable soil issues: Describe and list details of any stone coverings to process areas Structural Steel (Main members / platforms / grating / miscellaneous steel): Describe Architectural / Building / Control rooms cost items. Is foundation design based on soil borings and a completed geotechnical report? Welder qualification costs. Piping estimating method / materials of construction (ISBL / OSBL): Basis of small bore piping / field run piping: Describe and list details of any pneumatic / tubing / in-line devices: Basis of fitting and valves: Description of control valves in-line devices and associated costs: Hangars / Testing / Pickling issues and associated costs: Electrical scope / area classification and associated costs: Instrumentation / Number of devices / Number of I/O’s (Control wiring): I/C Calibration / Integration costs. BAS / BMS / Control philosophy issues: Painting / Sandblasting. HVAC / Ductwork issues and associated costs: HVAC balancing / testing and associated costs: Ductwork – steel / other material and associated costs: Insulation (Pipe and Equipment) type and covers and associated costs: Describe and list details of any special coatings: Basis of Heat tracing (electrical or steam) and associated costs: Fireproofing / Refractory / brick linings and associated costs: Describe and list details of Sprinkler / Firefighting systems.

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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Description of Fire main loop and associated costs: Road crossings /Duct banks and associated costs: Basis of spare parts and associated costs: Description of Owner Provided Equipment/Materials. Procurement / inspection issues and associated costs: Maintenance of construction equipment / fueling, greasing and associated costs: Other miscellaneous items construction equipment / buses / transportation / vans and associated costs: Listing and description of Indirect Costs / Mob – De-Mob Costs. Insurance items included / excluded BAR/ WCI Public Liability and OPI: Describe and List details of Construction Equipment and duration required and associated costs: Description of Quarry / Concrete Batch plant / Ready mix trucks details and associated costs: Site fabrication facilities and associated costs: Description of Site warehouses and associated costs: Provide a basis of the security / guards estimate and relevant cost details: Material lay-down areas and relevant cost details: Provide details of fencing / gates site access cost details: Protection of completed work details. Basis of Field Supervision estimate. Field Labor Support details with supporting cost details Description of Temporary worker camps with supporting cost details Messing / Camp supplies / food with supporting cost details: Small Tools / Consumables / Scaffolding listing with cost details: Vendor Assistance / Support costs: Offices / Trailers / Toilets / Field Establishment with supporting cost details Temporary Water / Heat / Electricity and relevant cost details: Description of Overtime basis. Basis of Shut downs / tie ins. Provide details related of any Shift work. Describe and List details of Fire watch. Provide details related of any Site Clean up requirements. Winter working requirements Safety issues, hard hats, goggles etc, Alcohol / Drug testing requirements. Describe and list details of Site Establishment costs (secretaries / staff / office equipment). Provide details related of any initial start up materials / chemicals. O/H and Profit assumptions. Describe and list details of any Royalties / Patents. Describe and list details of any Owner costs. FE Engineering Costs: Details of various permits included Sales Taxes / GST. Provide details related of VAT and if it can be claimed back. Describe and list details of Detailed Design / Engineering Home Office Support man-hours and cost.

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• • • • • • • • • • • • • • • • •

Provide details of Home Office expenses. Provide details of CAD costs compared to normal / typical pricing submissions. Travel / Per Diem costs compared to normal / typical pricing submissions. Provide details of Engineering Fee percentage compared to normal / typical pricing submissions. Describe and List details of Construction Management man-hours and costs. Construction Management General Condition’s requirements. Construction Management Fee basis compared to normal / typical pricing submissions. Provide details related to start up costs. Provide details related to various Bonds used in the CAPEX estimate. Provide details on any Warranty / Extended Warranty issues: Describe and list details of any required inspection / validation costs. Describe and list details of commissioning scope man-hours and cost. Statement on the basis of the dates / currency exchange rates that were used in compiling estimate: Detail basis of Contingency (Provide a Monte Carlo / REP analysis of contingency). Provide data on Management reserve. Provide a project by month Cash Flow forecast Basis of Escalation / Inflation / Exclusions / Assumptions / Inclusions mid points of EPC effort.

When the above checklist is completed the compiled / completed estimate can serve as the “baseline” cost budget for tracking scope changes or until the next estimate is completed (when additional engineering / design work has been completed). The construction each year of industrial facilities i.e. (chemical and manufacturing facilities) is a major undertaking, employing, thousands of companies and millions of individuals around the world. The cost of construction has an influence on just about everyone; the cost of the completed construction project is passed on to consumers via price increases on just about every product, so any time we can contain costs it is a good situation for people. This section discusses some capital cost estimating fundamentals, it goes into how to optimization of the construction process especially the CAPEX estimating effort, it touches on the needs or demand, for new products together with methods on going about producing various levels of CAPEX estimates, refer to this Section 2 and 3 for appropriate estimating methods to be utilized in producing CAPEX estimates. The Engineering, Procurement and Construction of a new or upgraded building, chemical plant or manufacturing facility requires a substantial capital investment expenditure possibly over a period of three years period prior to any return on investment (ROI) being realized, this section and the following sections has been written to provide some guidance in producing these important project deliverables. The construction industry is a “mixture” of assorted sectors, that all have a common thread, i.e. see the “players listed previously in Section 1 and in later sections of this publication. A large amount of information and data needs to generated, collected and evaluated in the production of a CAPEX estimate, from any design or reports that have been previously completed, in most cases this information can be found / or is discussed in the following sections of this publication. Some of these documents include: (A) Scope of Work / Mission statement / Estimating plan. (B) Process Flow Diagrams, (P.F.D.’s). (C) Front end / preliminary scope of work statements (execution approach) (D) Plant /

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facility location (and location within an existing facility). (E) Preliminary / early major equipment lists (with budget pricing). (F) Location of any existing utilities / existing tank farms. (G) A major milestone schedule (start and completion date) (H) Applicable sketches / notes / photographs / videos etc. (I) Preliminary P. & I. D. ’s and or process flow sheets / block diagrams and any other relevant data that will help support or add accuracy the estimating effort. Again a lot of the issues related to the basic of CAPEX estimating effort, the CAPEX estimating fundamentals are discussed in some detail in Section 1, 2 and 3 of this publication. Optimization of the construction process especially the CAPEX estimating effort is a win-win situation for everyone, savings can be ploughed back into the economy, providing new opportunities for companies and individuals. The Engineering, Procurement and Construction of a new or upgraded building, chemical plant or manufacturing facility more often than calls for a significant capital expenditure possibly over a two to three year period prior to any return on investment (ROI). In view of the fact that the requirement of new capital i.e. CAPEX dollars for the above capital projects is initiated by market forces / evident demand, the new or re-vamped building, manufacturing facilities or production unit is planned to comply with the stated goals of the new or re-vamped building, manufacturing facilities or production unit, that were initially spelled out by the client. A large amount of additional information and data of course needs to collect and evaluated, some of this data is contained in the following sections of this publication.

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SECTION A - 3 CAPITAL COST ESTIMATING METHODS Estimating Methods: “Basically this boils down to understanding the two basic types of CAPEX estimates: (1) Front End / Conceptual – estimates not having specific engineering deliverables (details) to support it: and (2) Detailed / Lump Sum CAPEX estimates that are based on specific details i.e. 100’s of drawings and specifications”: Owners, A/E, EPC, CM firms and contractors when they generate their project Front End / Conceptual and Detailed / Lump Sum estimates use many different formats and configurations (i.e. estimating templates and summaries), there seems to be no standard approach in industry, this initially can cause some problems to individuals charged with the responsibility of reviewing and checking these estimating deliverables and was one of the drivers for the production of this database, we have endeavored to standardize some of these Front End / Conceptual and Detailed / Lump Sum estimating summaries in this particular section. The underlying principles of this section is to outline a number of different approaches and methodologies related to estimating the cost of Process / Manufacturing type facilities, this section contains ten historical estimating benchmarks (based on return cost data records) together with numerous single point metrics that hopefully will assist the reader in future estimating and auditing activities. The number one basic principle of Project Management and it’s sub elements i.e. Project Control – Cost Estimating is to deliver the best technical and business solution to the business unit considering or building a new facility expansion(s) or upgrade(s), together with value (which of course is part of the business solution) for future CAPEX investments, the project team must deliver the correct business solution at the front end stage(s) of CAPEX project, the scope, needs to be to some extent reasonably defined, some front end design work needs to have been completed, various manufacturing / production schemes need to have been considered and scoped out. The decision to engineer / procure and construct (EPC) a new Chemical / Manufacturing Facility, or to upgrade, revamp or modernize an existing facility is many times based on future business growth, maintaining market share and to ultimately to generate and increase profits. Chemical / Manufacturing Facilities must be designed to meet the goals of (1) Safety, (2) Quality of final product and (3) Profit – Return on Investment. A substantial capital investment is necessary for any new or upgraded Chemical / Manufacturing Facility. Compiling the required funding documentation, management approval procedures, and the approval for expenditure (AFE) is a key project related milestone, one in which the estimating effort is crucial. Engineers, Architects and Estimators - (All construction professionals that get mixed up with estimating and budgeting) involved in the engineering / procurement and construction (EPC) Chemical / Manufacturing Facilities should were possible collect and maintain a personal construction cost database of completed projects – lets call it a “personal construction cost library” (magazines, articles, historical cost records, technical papers, rules of thumb etc,) annual cost databases should also be purchased to keep the individual abreast of current construction costs and trends, additionally it makes sense to keep notes on value engineering ideas, different material applications, alternative construction practices and utility / energy requirements and costs. The “personal construction cost library” should be continuously maintained with latest data from a multitude of sources, i.e. your last project. The “personal construction cost library” should provide benchmark data on, construction materials, construction labor, delivery times on complex production equipment – long lead delivery items, labor productivity, engineering / architectural costs and man-hours, indirect field costs, transport costs, escalation and start-up costs, spare parts costs plus numerous other line items that need to be evaluated and estimated during the Estimating / Budgeting effort.

1

The final review or verdict as to whether or not to proceed forward with the “new or revamped” process / chemical facility is to say the least an involved one, the decision process entails many issues, these issues must be weighed against the current market forces, can we make a decent return on the capital investment, what is the payback period 5 years or 10 years, how will our operating costs stack up against our competitors, what is the local and governmental permitting requirements, does the location that has been selected make sense, is there existing utilities close to our plant, will we have to build roads and other related utilities to support this new facility, are we trying to beat a competitor to the marketplace. What are the main drivers (business goals) that need to be realized, some of the questions that must be answered by the EPC Management Team / Business Unit Operations team are as follows: 1.

How much capital will be required / what is life cycle costs needed to complete this project. (This includes all engineering, procurement and construction related costs) Plant operating life cycle, i.e. the number of years or some other period that the plant operate to ensure recovery of the investment. What are the estimated operating costs (who compiles this input data), is it needed prior to the completion of the Front End / Conceptual Estimate. What are the ROI / EBITDA on the capital expenditure, how many years will it take to achieve payback on the capital expenditure. Are there other technical – manufacturing solutions that can be used / evaluated to improve the ROI / capital outlay, tolling, value engineering and or risk management? Is this plant located in the best location to provide maximum Return on Investment; is it close to future markets? What codes / standards / specifications current and future will be used in the design of the facility, metric, imperial, CSI Company or engineering firm’s specifications? What are the permit needs - timing, local / national / environmental. What is the timing / milestone to be achieved, normal schedule or fast track, are there any unique situations such as modular construction or toxic materials that needs to be considered. Any financial incentives / tax breaks – tax holidays, training costs, offered by country or state government.

2. 3. 4. 5. 6. 7. 8. 9. 10.

The CAPEX capital cost estimate to be useful project control tool needs to reflect the current scope of work, if the scope is not defined to well a resolution factor needs to be applied to the known scope to “put meat on the bones”, the CAPEX estimate needs to take account of the partial or completed design deliverables (current drawings and specifications – even though some of these drawings maybe less than 50% complete), latest schedule (completion date), and the execution strategy (procurement – buy-out - contracting approach) in order to set up a realistic capital cost baseline, that can be used as a project control tool to monitor future changes in design and operating philosophy. In the last 5-10 years there has been an industry wide trend to move away from single point (an single estimator(s) or group of estimators working as a single point of contact – producing the final estimate) we are now seeing a more of a team approach in compiling a capital cost estimate(s), there are real benefits to this approach: • • •

The CAPEX estimate can be produced usually in a shorter time frame; the correct scope of work is captured and known sooner. Mistakes can be picked and resolved much sooner. The specialist engineers / designers can focus on there discipline, i.e. civil, piping to produce quantities and take-off’s.

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• • •

The design team can assist in the estimating effort, (obtaining bulk material pricing, vendor quotes and bids, ensuring there is a quality control and accuracy associated with the auditing function being utilized during the capital cost estimating effort). The estimate can be broken out by WBS / COA, via the work effort of the specialist engineers / designers for future bid packages and additionally used as procurement / buy out tool. The capital cost estimate can / should be used as a project control tool to track and monitor the project expenditures, changes in scope of course need to be considered they can be scoped out early and the cost benefits or penalties can be considered.

Prior to commencing any capital cost estimating activities, the Business Unit / Operating Unit would have completed a Business Economic Analysis; this would include such items / activities as: A. Market Research / Sales Volume B. Return on Investment (ROI) / EBITDA C. Selling Price / Cash Flow analysis / Payback Period D. Operating Costs / Energy Costs / Capitalized Spare parts E. Raw materials cost / Investment Costs / Depreciation Rates F. Investment Incentives / Tax Holidays / Maintenance costs / Operator training G. Leasing / Tolling / Third Party Manufacturing The Cost Estimator / Engineer if he or she works for on Owner Company may sometimes get involved in estimating some of the above cost related items. The flow chart below depicts the analysis / business cycle that most Owner companies follow to determine which capital projects should be pursued and rejected.

Business Analysis Items A – G (above)

Scope of Work Development

Front End / Conceptual Estimating +/- 30%

Proceed (Yes or no) Continue with study if companies ROI investment criteria is achieved produced more defined scope and +/20% Estimate

Abandon study if companies ROI investment criteria is not achieved move to next prospect

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The EPC Management team sometime know as (1) task force or (2) core team is established’ typically the task force / core team members come out of the ranks of the operating company and possibly key members of the selected EPCM contractor, these individuals must understand and be involved in the questions posed above and the answers coming out of the above analysis and assist with the next steps in the projects path forward, in order to proceed to project approval, they have significant responsibility in optimizing the capital effectiveness of the project i.e. (optimizing the bottom line cost of the project). The EPC Project Management team “must” know what the CAPEX projects final cost is projected to be and the construction / commissioning completion date i.e. the date the project will be handed over and accepted by the operating group. The effort of producing a conceptual / front-end estimate is one of the first actions that are made to ascertain if the proposed CAPEX project is a viable enterprise / opportunity for the business. The conceptual / front-end estimate perhaps a (+/-40%) project budget, this early estimate is of course is predicated on an early front end scope of work statement and typically a number of specific key milestones that need to be achieved, this project budget can be used as a “what if tool” to determine: 1. 2. 3. 4.

The best location to place the CAPEX project: The profitability of the CAPEX project, the return on investment (ROI) or (EBITA): A cash flow plan can be developed from the project budget, The initial project budget can be used as an initial baseline / control tool, to use as a staring tool to select the best path forward in considering technology, future business opportunities and goals. Later updates of this early estimate will provide an audit trail of the CAPEX projects life cycle.

The “process” industry i.e. chemical / refinery / manufacturing industries has historically used these early front end CAPEX estimates to make there business / investment decisions, they have a wide application in both North America, Europe and around the world, they are used primarily as a selection tool in shaping and deciding were future (CAPEX) capital funds should be assigned and to that point it is in the businesses / owner interest to make sure these conceptual / front-end estimates are as complete and accurate as they can be, even though a reasonable amount of front end engineering expenditure needs to be made. Additional cost related topics that may need discussed and made part of the initial CAPEX estimate include some or all of the following: • • • • • • • • • • •

Relocation of manufacturing equipment from a current company location to this specific project location. Start up related materials and labor / commission costs. Management reserve allowances and how they are spent. Design and construction (resolution) allowances for both detailed design, procurement and construction work and the overall management philosophy on contingency allowances and how this issue(s) are captured in the CAPEX estimate. Various location incentives provided by countries, states or regional development agencies. Such as free real estate / government grants / tax holidays, this could be considered as a credit line item in the CAPEX estimating summary if in fact this is a reality. First run chemicals, catalysts / chemical / initial fill needed during start up activities. Licenses fees / Royalties that need to be paid to an owner / holders of certain technology. Costs related to refurbishment of existing facility production or utility equipment. Operator training grants paid by a local government departments / agencies: Early studies / previous owner related front end engineering activities and expenditures. Expense items such as demolition and decommissioning work.

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• • • •

Mothballing activities and de-commissioning work. The sale of any production equipment / utility equipment to another third party. Facility abandonment costs and future clean up provisions. Scrap metal / material cost related credit(s) related to any demolition work.

What is a scope document? It basically verifies the CAPEX projects charter, it focuses in on (1) what, (2) were and (3) when. Scope is the term used to describe the extent or boundaries of a project (consider it as a dotted line around the project). Scope definition entails describing the major project components / deliverables into a listing of manageable work activities or tasks. The scope of work (SOW) statement (project baseline) is a critical document it defines in specific language the services of work to be performed and the activities to be performed. The cost and schedule could and does many times experience problems and issues, if the SOW is inconsistent or does not fully reflect the work to be performed, it is therefore critical to the wellbeing of the CAPEX project that the SOW is correct and all changes are incorporated in the latest SOW statement and is communicated to the project team members. The Project Scope of Work: is essentially determining: 1. The location(s) of the proposed CAPEX project. 2. The CAPEX project(s) schedule, from funding approval to start of production, list out of key Engineering, Procurement, Construction and handover milestones that need to be accomplish. 3. The Engineering, Procurement and Construction approach and contracting strategy. 4. A listing of project restraints / challenges i.e. permits that are needed, consent decrees (must be completed by such a date), construction activities in an operating facility. 5. The WBS / COA structure or any enterprise software coding issues needs to be known. 6. Any land acquisition costs or major site improvement issues. 7. Facility capacity / production nameplate, this includes the number of items / pounds – kg of product to be manufactured. 8. The quality specifications and requirements that the product needs to meet. 9. The hourly / daily / weekly / annual production or campaign rate that the facility will produce. 10. The manufacturing operating philosophy i.e. (Batch operation, 8 hours operation or a Continuous operation). 11. The technology to be utilized, the major equipment (production equipment) and the manufacturing control / automation philosophy. 12. The required services and utilities required to meet the needs of the CAPEX project. 13. The number of facility operators needed to operate the proposed facility, this maybe optional in the early scope development phase. 14. The facilities / buildings / support requirements needed for the proposed facility. 15. The offsite requirements, the storage / warehouse needs and unloading and loading methods, new access roads, rail spur etc. CAPEX estimating and project planning / scheduling are of course closely allied and of cause this is why these two activities fall within the Project Control scope of work; neither of these activities can be adequately realized without contribution (feedback) from the other, manpower requirements, installation rates, peak manpower needs, worker / facility footprint ratio, worker productivity plus a bunch of other related topics impinge on each other. It is a “given” that the job function / role of the cost estimator / engineer on any future / ongoing CAPEX project is to – develop the estimating documentation basis, i.e. exclusions, inclusions and to appraise and determine all the required scope items and to forecast the final cost(s) of the CAPEX project(s), in this role he or she needs to be the eyes and ears of the Senior Management (BOD level individuals) and the EPC management team supervising the overall Engineering, Procurement and Construction effort, they must accept and take ownership of the estimate (the buck stops here). Senior Management should be constantly

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conscious of the committed and to date costs and any trends to date (on a bi-monthly or monthly basis) and more importantly the projected total installed cost of the EPC CAPEX project, sometimes there is some “marginal” relief of this situation (some owner companies will allow a CAPEX project to over run by 10% or less without a lot of problems - prior to obtaining additional / supplementary funds to complete the project, however be aware hell hath no fury like the Board of Directors wanting to know why a CAPEX project over ran it’s budget by more than 10%), it is the cost estimators / engineers function / responsibility to know the current status of there project, they are responsible for the two of the three main aspects of Project Delivery / Management cost and schedule. These three key metrics are known in the EPC industry as the “Three Legged Stool” they are as follows. 1. Schedule (when is it going to be completed, was the project delivered on schedule). 2. Cost (what will it cost, did the final cost fall with in a -/+ 10% range of the authorized budget). 3. Quality / Safety (will the facility produce the items / at the required production rate / with in specification it was designed for in a safe and economic manner). When all three of these metrics are achieved on a specific EPC CAPEX project, success can be claimed. The management and organizational progression within the EPC engineering / construction industry has been going through major changes in the last decade or two, Project Managers are coming out of the ranks of Project Controls not out of focused engineering / discipline ranks (just consider how much we rely on the computer today as compared to 5 or 10 years back). This “sea change” has made significant transformation to project management styles, proficiency and reporting systems, historically the focus had been on the production of the detailed design, now we see a more rounded approach were the focus is on cost and schedule, this has driven the need for current and well-founded cost and performance metrics (estimating / performance standards, reports) many construction professionals have a distinct dislike for this new approach – the criticism is that there are just to many reports. The fact of the matter is that Estimators, Cost Engineers, Project Managers and other Construction Professionals all around the world across a broad spectrum of construction sectors are doggedly searching for valid, accurate and easy to use Front End / Conceptual capital cost estimating methods, systems and benchmarking data, hopefully some of the following methodologies presented and specific to ratio estimating in this section and the other conceptual cost estimating methods and data contained within the other sections will assist the reader in this endeavor. A word of advice on estimating “rules of thumb” – check them out before using them, there are thousands of these historical units / numbers, benchmarks and factors “floating around” in the engineering / construction industry (some are valid and some are just plain wrong – do your homework prior to using and relying on them) numbers that work in North America may have no relevance in Europe or the far east, the basis of the numbers should be fully understood prior to relying on them, invalid or erroneous numbers can lead to unrealistic capital cost estimates and potential over-runs and other personal (career) ramifications – buyer beware. It is the EPC Management team (with significant input from the project controls professional(s), estimator / cost engineer) task to insure, by timely communications (e-mails, “dashboards” / weekly, bi-weekly and monthly reports and updates), that the dialog - cross pollination - communication on the current and forecasted cost and schedule status takes place with all the team members and that both the capital cost estimate, project plan and the execution plan are reflective of the current status of the CAPEX project and are completely updated and fully mirror the “current” scope of work to be accomplished and reflects the actual Engineering, Procurement and Construction project deliverables, methodology and status. In the last five to ten years, there has been a move by Project Management / Project Control professionals to put great importance on sophisticated

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computerized cost estimating systems / project control systems linking cost, schedule, procurement, field performance, document distribution etc., these systems have some excellent advantages, they can provide, future benchmarks, current histograms, level 1, 2, 3 and 4 schedules, 30- 90-120 day look ahead schedules, earned value reports, S curves, productivity performance profiles and much more. The reality is that all the computerized estimating outputs are only as good as the information that is inputted into the computer, the old saying “garbage in garbage out” still applies today. As a result, maintaining and keeping up to date the capital estimate final cost “budget” with frequent enhancements, adds and deduction due to change orders / scope modification / field changes / productivity changes etc. is the primary function of the estimator / cost engineers on Engineering, Procurement and Construction (EPC) related capital projects. The unceasing review of numerous actions such as expenditure tracking, change orders, trending reports, bulk material buy out activities, number of purchase orders placed, commitments, tracking home office activities (man-hours), tracking engineering and procurement progress, monitoring field labor costs / productivity measuring, etc. These measures are required to manage, monitor and control the project and report the final capital cost / expenditure of the project(s) to the EPC Project Management team. Accurate / timely and rationally compiled complete and precise capital cost estimates are the life blood of any profit motivated chemical / manufacturing enterprise, these early and important cost evaluations are the essential decision making tool and metric, on whether to proceed with a proposed project or not (perhaps the project needs to be stopped – because of a huge potential over run in the final forecasted cost), or to delay the decision to proceed (1) to another location, (2) until some time in the future – three years from now when the economy is in more of a growth mode, or (3) look for other process / technical / business solutions (look into tolling activities). Again accurate / timely and comprehensive capital cost estimating of the cost of a CAPEX project is fundamental and vital to any organization, this skill set give a ”competitive advantage” both Owners and EPC companies, this is why accurate and timely front end / conceptual estimating is so important in today’s competitive global marketplace. A capital cost estimate is not over and done with when a project management / engineering review has approved the CAPEX capital cost estimate. The estimator / cost engineer must all the time examine / evaluate the capital cost estimate with the project manger / engineer perhaps on a biweekly / monthly basis to ensure the project is remaining within the projects budget, these bi-weekly / monthly meeting should be called status meetings / trend meetings, potential change orders / claims / scope changes etc should be discussed and laid out on the table so the real impact of these change orders / claims are fully understood by the project team. The production of a Capital Cost estimate is a ”team” effort, it is not a single individuals work effort, however many times the cost estimator / engineer (or in the case of a large project perhaps a team of cost estimators / engineers 4 – 6) will complete and compile the lions share of the effort, scope definition together with certain key engineering deliverables i.e. a major equipment list, a plot plan of the proposed facility, indicating location of major equipment typically are provided by the engineering group, as we have mentioned before, some time the discipline engineers will assist in the capital cost estimating effort, compiling “take off’s” and lists of required materials such as piping (including valves and fittings) and E&I quantities (instrument devices), whoever compiles the total capital cost estimate they should consider the following topics. (A) Have an enhanced understanding (the big picture) of EPC project(s) specific to capital cost estimating and how specific scope items / change orders / scope modifications can impact a capital cost estimate, field experience will be a big plus in this situation. (B) Utilize adequate estimating expertise i.e. in house expertise, historical data, and benchmarking metrics and to be able to compile front end / conceptual, preliminary and detailed estimates when required. (C) Be aware of the relationship of external forces (escalation – such as oil price spikes, terrorism, labor shortages and political events, such as we have witnessed in at least two South American countries) scope creep / change order control and how this can impact the final cost of a project. (D) Be capable of gathering relevant and germane project data / scope

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items and become adept in reviewing / auditing all types of estimates to establish the level of detail, completeness and accuracy that reflects the current scope of the proposed project. CAPEX EPC projects are the “means” by which a future business plan(s) are built into important / sustainable / flexible and profitable future operating assets – it is basically how companies grow and prosper – successful companies typically build there new plant or add on to there existing plants in the right locations and they typically don’t pay to much for there facilities, i.e. they are not “gold plated” they are designed in a safe and cost effective manner, successful capital EPC projects are deemed successful if they meet the legged stool metric previously referred to, it must be remembered that the end use of a capital project is to increase product sales, beat competitors to the market place, to operate the facility at lower unit operating costs and to be flexible and sustainable for the future growth goals of the owners operating unit (future expansion added operating units or addition production trains need to be considered- going forward). A capital cost estimate, to be effective management tool (and a project control tool) for implementation and future cost management and planning (consider a capital cost estimate as a road map – you start out in A and you need to get to Z), this document and an execution plan are key tools need to get the project completed, the capital cost estimate should have line by line items (by Company code of accounts (COA) – or work breakdown structure (WBS) were possible) showing major equipment, freight costs, bulk and engineered materials together with construction labor (man hours) by discipline i.e. civil, mechanical, piping, E/I, etc including indirect build up such as engineering costs and man hours, construction management, general conditions and contingency etc. This data is needed to pragmatically establish, possible long lead major equipment items, extent of bulk materials, field labor requirements, do we need to establish a concrete batching plant, design staffing needs, construction management needs, spare part requirements and period / timing / duration requirements. The EPC project team requires “estimating details” as early as possible in the execution phase to plan the purchasing effort (buy out) and execute the project, perhaps by various work packages. Capital Cost Estimates can be (1) early front end conceptual, (2) preliminary a decent amount of engineering has been completed, or (3) definitive / lump sum at least 50% of the required engineering effort has been compiled, these estimating types are of course reliant on the quality of information provided and the estimating effort required to produce them. Cost estimating procedures vary from down and dirty relatively quick (and not very accurate) ratio / percentage factoring to highly developed “details oriented” computerized capitalized cost estimating / scheduling systems that can produce substantial amounts of capital cost estimating and in some situations engineering data, if the above described methods are correctly utilized, they can generate very precise and detailed capital cost estimates that have a high degree of creditability and more importantly can forecast the final cost of the CAPEX project. To drive home a basic point again, it should be kept in mind that there are three basic types of estimates, (A) Front End Estimate (OOM, preliminary, conceptual etc) perhaps a good amount of basic process design has been compiled, PFD’s, plot plans, we know the number of major equipment items, we know we need offsite storage, we know we need loading areas, we know we need a warehouse, however the detailed design has not been completed or it may only be less than 20%. (B) AFE Funding / Preliminary (perhaps a hybrid of A and C, and (C) Detailed Estimates (Lump sum bids, GMP’s, Design / Build etc) are based on a lot more definition, the design deliverables may be 30% - 60% complete, we have a priced out major equipment list, we have detailed quantity take-off’s, we have plot plans, general arrangement drawings and the P&ID’s could be well advanced. Precise (bearing in mind the level of design work that has been compiled) and timely capital cost estimating preparation is a very important aspect to successful project execution and profitable projects. Typically the decision to execute the EPC project cannot proceed with out management approval of the capital cost estimate. An overstated capital cost estimate could annul a prospective / attractive money making project while on the other side of the coin, an

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understated or inconsistent capital cost estimate can lead to problematical financial implications for the EPC project and probable substandard future personal evaluations for all members of the “EPC project management” team. The crucial requirements of a precise and well defined CAPEX capital cost estimate, be it (A) Blue Sky / Front end / conceptual, (B) AFE Funding / Preliminary or (C) Lump Sum / Hard Money / Definitive, are to have or develop a rational and comprehensive scope of work statement and to use logical estimating method (a ratio approach or a an exhaustive detailed quantity take-off approach – utilizing the four step approach described earlier), together with the time and resources to complete the assignment, a milestone event schedule and finally an ”estimate basis”, that documents inclusions, exclusions, assumptions and a complete listing of drawings and specifications that the capital cost estimate is based upon. A viable “scope of work” or mission statement (project brief) must be founded or formulate on front-end engineering studies or basic production or manufacturing concepts, it should be based on an established design philosophy that will be implemented, layout concepts / preliminary plot plans etc, to corroborate and support the capital cost estimate basis. On multi million dollar CAPEX EPC projects the owner or a consortium of owners may require an independent cost estimating audit / review that would include a detailed assessment of the estimating basis and methodology employed in producing the CAPEX estimate, together with the anticipated accuracy of the CAPEX estimate, typically these audits / reviews are performed usually by specific “independent “ engineering / construction individuals (industry experts / guru’s, graybeards consultants or third party E / A firms), sometimes if the cost of this “third party” estimating review is cost prohibitive and in house experts or “seasoned” senior project managers with many years of capital implementation / cost estimating experience and major project / field execution experience will be called in to complete this effort if it is deemed necessary. The engineering deliverables and project specific data that is typically required to complete this type of audit / review effort includes some or all of the following: • • • • • • • • • • • • • • • • • • • • •

A detailed scope of work statement / mission statement. A listing of current engineering deliverables currently completed. Basis of design. Operating philosophy (24 / 365 days or 8 hours per day). A manufacturing / process description and P.F.D.’s (process flow sheets). Sketches / Drawings / photographs / other germane Engineering Deliverables. Outline and Detailed Specifications (owner or EPC firm). Project specific layout information, location / tie-ins / access problems. Major Equipment and Bulk / Engineered Materials. A major E-P-C milestone schedule, indicating major start and finish dates. Procurement schedule showing any long lead delivery items. Any owner provided major equipment or materials. Off-site information (required facilities and utilities, etc.). Realistically accurate quantity take-offs and listing of allowances. Project specific major equipment, unit material prices. Installation Work Hours / All in Labor Rates (union or open shop). Detailed and systematic assessment of all scope of work items with likely cost impact. Engineering hours and billing rates / Field In-directs costs. Miscellaneous items, e.g., spare parts, vendor assistance, training costs, owner costs, front end engineering studies etc. Operating costs. Utility production and costs.

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Some of the most important features of a reliable capital cost estimating system in order of importance are as follows: An estimating plan or memo, outlining who provides what and when, adequate time and resources to get the assignment completed, estimating tools that will be utilized, relevant cost data publications, procedures and systems, historical return cost data if possible / man-hour production rates, computerized estimating formats or spreadsheet formats, a roll up your sleeves / get it done by an individual or a team approach and a levelheaded businesslike / attitude and relevant engineering and field experience. The development of Front End / Conceptual Estimating methods and systems can seem to be a overwhelming undertaking to the uninitiated, nevertheless with the use of the most recent computer applications and sophisticated database programs the effort can be a lot less challenging than it use to be - before that advent of the computer age, some of the key items to consider are, (1). CAPEX EPC related data gathering (close out reports of completed CAPEX EPC projects), (2). CAPEX EPC data review and calibration and conditioning for future applications (understanding high point and low points and applying common sense to make the data “real” – separating the odd ball values from a collection of relevant data and (3) the development of benchmarking metrics from this data for future use in CAPEX capital cost estimating and analysis of current in-house and external estimating data. The consistent and attentive approach concerning nailing down the project(s) scope and the timely completion and fine tuning of a CAPEX estimate is the secrete of success in estimating EPC projects, developing and defining the project requirements (the shopping list of items to be installed) is imperative in the early stage of a projects life cycle. Capital cost estimating approaches (methods of compiling an estimate) are very important, particularly when they are built / based on a well-maintained databases (usually large owner – operating companies and some of the larger EPC firms maintain large proprietary estimating systems, in recent years we are seeing a movement to Enterprise Business Systems i.e. SAP, J D Edwards etc) – perhaps these systems will develop modules that produce CAPEX estimates in the future. That being said, they are no substitute for or replacement for hard work, an ability to drill down to the details, an inquiring mind, a resolve to optimize the capital cost estimating system (or the project controls system) and knowledge of the specific EPC project and the stated goals and business objectives. The capital cost estimate should supply adequate details and data to determine its credibility throughout the projects life cycle and contain sufficient details to allow cost control, value engineering and progress monitoring. Listed below A thru, G are some of the main categories of capital cost estimates methods together with their accuracies. Capital Cost Estimating Nomenclature / Approaches / Methods Capital Cost Estimating methods can be grouped into at least seven basic methods or classifications (possibly more, there are many names / nomenclature / descriptions / types of estimates used within the engineering / construction industry), these are as follows (the seven methods shown below relate or correspond to the estimate descriptions on the following pages), together with the amount of detailed design engineering required to compile the appropriate estimating method. (A)

Blue Sky / Order of Magnitude Estimate less than a couple of percent of the engineering is completed, or perhaps no detailed design work has been completed.

(B)

Scale up / Capacity Estimates / Exponents (6/10th factor) 1% - 5% of engineering completed (this method could also be grouped together with item A. above) Square Foot / Cubic Foot - 5% -10% of engineering compiled (could be grouped together with item C below).

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A.

(C)

Ratio / Factored Method, Some of the more frequently referred to one’s include: Hand Factors, Miller Factors, Cran Factors, Guthrie Factors, Wroth Factors, Peters & Timmerhaus Factors, Compass Factors, Chilton Factors, Bach Factors and Lang Factors (to name but a few, research would indicate that there are possibly 100’s of these ratio / factored type estimating techniques in use today) these estimates are applicable when perhaps 5% or less of engineering is completed.

(D)

Front End Semi-Detailed Estimates - 5% - 20% of engineering / scope definition is completed, could be considered a hybrid of perhaps (C) and (E).

(E)

AFE Funding Estimate / Validation / Preliminary Estimate 10 % - 25% of engineering deliverables have been completed.

(F)

Validation / Control / Control Estimate (Monitoring) 30% - 70% - usually 50% of detailed engineering completed; some key Purchase Orders have been placed.

(G)

Lump Sum / Hard Money / GMP - 50% - 100% detailed design completed, major equipment is perhaps 90% committed, civil work is underway, engineered bulks are being delivered, construction may be 10% – 25% complete.

Blue Sky / O.O.M. Order of Magnitude Estimate / Factored / Ratio Estimates / Exponent Estimates / Square Foot, etc. (+/- 30% Accuracy)

Typically these classifications and types of capital cost estimates present only blue sky / O.O.M. (+/- 30% accuracy) costs and are usually needed in the early concept / front end stage of a project (or design study) they are used as a trigger mechanism or as “go /no go” managerial assessment metric (stop the engineering / study - now, this project will not provide the ROI / EBITDA on the future capital expenditure, i.e. bad economics or on the other side of the coin – yes - proceed with more research / engineering, the initial ROI / EBITDA for this particular capital cost estimate looks promising). The starting point could be no more than a given production capacity, i.e. tons of cement produced per day or barrels of oil production per day or year. B.

Capacity / Exponent Estimates (6/10th rule) Method (+/- 25% - 30% Accuracy)

Front End capital cost estimates can be created by means of utilizing capacity cost ratio exponents based on existing / historical cost data of (1) company facilities or (2) by reviewing published industry references. The exponent technique is used to estimate the cost for a new size or volume / production rate from the actual cost of a comparable operating plant of identified size or capacity. The correlation has a straightforward exponential mathematical structure: Required Cost (Cost 2 New Plant) = Cost 1 (C2 / C1) n Were the following inputs values are as follows? Known Cost Cost 1 = identified cost of plant / facility equipment item Required Cost Cost 2 = new cost estimate of plant / facility / equipment item Known Production Rate C1 = identified plant / facility volume / production rate or size New Production Rate C2 = new plant / facility volume / production rate or size Cost factor n = exponent / cost capacity factor (typically ranges from .5 to .7)

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This approach should be utilized for very early / order of magnitude estimates, the resulting CAPEX estimate could only be considered to be perhaps +/- 25 - 30% accurate. The industry average (exponent) cost capacity factor (n) has an average value of between 0.4 and 0.8, 0.6 is widely used value that has been widely used, hence it’s name the 6/10th factor, there is good amount of published data on exponents for a significant number of chemical / process plants and major pieces of equipment, even construction labor costs, piping, structural steel, engineering service costs have been researched and these values have been published. The off sites estimate is many times excluded from the 6/10th factor. This procedure is assumed for the same time period and location, the value / outcome should be calibrated by an appropriate inflation / escalation index, a listing of these indexes is outlined in the following sections of this publication. This estimating approach is widely utilized in the “Process / Chemical / Manufacturing“ industries for a good number processes, plants and major equipment items, however these exponents in a lot of cases fluctuate over a wide range, so care should be exercised when embarking on this estimating approach. Exponents / factor values can be found in various published books, a listing of some of these exponents is detailed later in this book in Section B 2.

C.

Ratio / Percentage Uplift / Factored Model / Multiplying Factor

This methodology / approach comes up with a total installed cost (T.I.C.) for a plant or facility, it is compiled a by multiplying the cost of major equipment item, i.e. a compressor, a pump, a tower etc, by specific multiplier, that is an all-inclusive value, this multiplier includes such items as excavation and subsequent backfill, concrete, structural steel, pipe, I/E, insulation etc. (i.e., all the bulk material items and in directs plus detailed design and construction management). The original thought process and subsequent factors - is thought to be originally researched and compiled by Mr. Hans Lang (Engineer / Estimator with a major engineering firm in Philadelphia, PA in the USA), in the late 1940’s and early 1950’s the method is known as the “Lang “Factor method is widely used in the “Process” related industries, Mr. Lang is perhaps on of the early experts on Process / Chemical plant economics and estimating. There are a number of similar factors produced by other individuals, these include Hand, Cran, Gallagher, Suarez, Guthrie, Nishimura, Bach, Chilton, Peters & Timmerhaus, Miller, Wroth and Compass International to name but a few. In view of the fact that some of these factors were introduce 20 - 40 + years ago many estimators / engineers are skeptical about using them today, however these factors remain valid today as an early estimating tool, many engineers, contractors and owners have compiled their own factors / multipliers to replicate their particular practices and historical data. Note these factors are useful for coming up with very early order of magnitude estimates, the accuracy of these factors are at best +/- 20 -30 %.

Lang Factors (As per his Chemical Engineering article dated June 1948) Total Installed Cost (T.I.C.) can be established for (1) Liquids / Fluids, (2) Solids and (3) a hybrid of (1) and (2) above, namely a Liquids / Solids plant, this includes installation labor, bulk / engineered materials, major equipment (delivered to site), detailed design, field in directs, construction management can be estimated from the cost of the delivered cost of major equipment, using one of the following Lang factors as multipliers. (The values excluding land purchase, demolition, relocation, refurbishment and off-sites related scope). The multipliers are as follows: 4.74 For liquids / fluid process plants (significant pumps and piping): 3.10 For solid process plants (usually less piping than fluids plants, with a preponderance of grinders, crushers, material handling equipment) example a cement plant: 3.63 For solid-liquids / fluid process plants (possibly a hybrid of the above two values):

12

Example (cement plant – solid processing plant) major equipment d/d to site = $2.25 million multiplied by 3.10 above = $6.975 million. This value would include all the necessary scope / work items for a fully operational cement plant excluding the off sites. An average of Mr. Lang’s factors would fall in the 3.80 – 3.90 range

Hand Factors (circa 1960 data) Mr. Hand who was employed by a large multi national petroleum company in the 1960’s and 70’s. In his methodology he recommends using a summing up of single factors (multipliers) multiplied by the delivered cost of different major types of process equipment. The following is a sample of Hand factors: Typically Mr. Hand’s multipliers fall in the 3.30 – 3.50 range.

Wroth Factors (circa 1960 data) Multiply the purchased major equipment (M.E.) delivered to site cost by the appropriate multiplier / factor below, multiplier / factors include site work, civil work, M.E. setting (millwright work), internal(s) alignment, concrete foundations piping, mechanical installation, structural steel, electrical, instrumentation, insulation, painting, buildings / facilities detailed design, engineering construction management, construction equipment, etc. Assume that the factors / multipliers excludes off sites and demolition work.

Major Equipment • Blender • Blowers / fans (including motor) • Centrifuges • Columns w / o trays • Compressor, Centrifugal Motor-driven (less motor) • Compressor, Steam turbine (including turbine) • Compressor Reciprocating Steam and gas • Ejectors • Furnaces (Cabin type) • Heat exchangers • Pump, Centrifugal, Motor-driven (less motor) • Pump, Positive displacement (less motor) • Refrigeration (package unit) • Tanks, Process • Tanks, Storage

Multiplier / Factor 2.0 2.5 2.1 4.0 2.0 2.0 2.3 2.5 2.0 4.8 7.0 5.2 2.5 4.1 3.5

Data source / Information reference: Wroth. Cost Estimating Factors / Chemical Engineering Magazine: circa 1960 data. Typically Mr. Wroth’s multipliers fall in the 3.80 – 4.00 range.

Guthrie Factors (circa 1960) and similar factors produced between 1970 and 2007:

13

Mr. Guthrie was a chief estimator for a large USA based chemical company in the 1960’s and 70’s he developed a “module” conceptual estimating approach that is still valid and widely used today. Other cost ratio (multipliers) factors that have been available via articles and publications in last couple of decades include installation factors produced by Miller, Gallagher, Chilton, Nishimura and Peters & Timmerhaus. Analysis on Guthrie, Miller, Lang, Gallagher, Compass, Chilton and Peters & Timmerhaus published factor data, using a benchmark of $10 million of assorted major equipment, i.e., Towers, Heaters, Compressors, Heat Exchangers, etc. delivered to site would indicate that the average installation multiplier would be 3.80 - 4.10 range for a liquids plants i.e. with a predominance of pumps, vessels and good amount of interconnecting piping, note this value would exclude O.S.B.L. scope of work items, such as waste water treatment facilities, cooling towers etc, . The following seven data / benchmarking values / tables are factored / ratio / percentage estimating tables based on return cost data, these can be used by the reader on future CAPEX estimating assignments. These tables indicate a basic methodology for determining and compiling a factored CAPEX capital cost estimate, the key to obtaining reasonable results with this approach is to obtain accurate major equipment pricing, from more than one vendor if possible (with written quotes if possible), these percentage uplifts / percentages should be adjusted for the readers own unique specific applications, these ratio’s, multipliers, percentage uplift factors take into account if the process is applicable with processing fluids (usually needs a lot of piping systems, together with pumps), solids or a combination of both typically construction equipment (cranes, welding machines, etc.) is included in both the material percentage and the 10% - 30% field establishment cost uplift. The following cost models should give the reader an appreciation of the ratios / percentages associated with Chemical / Refinery / Manufacturing type facilities: (1) Typical Ratio Factored Values of a grass roots North American Chemical 75% Fluids and 25 % Solids Plant, I.S.B.L. only, built on an established / existing site with major utilities available or needing minimal upgrade to support this new plant, this data is base on three similar $5- $15 million facilities. Accuracy would be in the +/- 25% range. Description Major Equipment M.E. (28 M.E. items. M.E. $1.96M in 2001)

Material

Labor

Total

Ratio

Ratio

Ratio

1.00

0.00

1.00

Freight

0.04

0.00

0.04

M.E. Installation (millwright work)

0.02

0.10

0.12

Site Preparation / Earthworks

0.02

0.04

0.06

Foundations

0.04

0.10

0.14

Structural Steel / Siding / Platforms

0.07

0.09

0.16

Buildings

0.13

0.11

0.24

Piping Systems

0.22

0.26

0.48

Electrical Systems

0.08

0.11

0.19

Instrumentation / Controls

0.12

0.05

0.17

Insulation / Refractory

0.05

0.06

0.11

Painting

0.01

0.02

0.03

Miscellaneous items (spare parts, vendor asst, I-C programming, etc.)

0.04

0.03

0.07

Direct Costs S/T

1.84

0.97

2.81

14

Detailed Design / Project Mgmt / Procure

0.03

0.30

0.33

Engineering Support

0.01

0.06

0.07

Owner Eng / CM

0.02

0.09

0.11

CM

0.04

0.08

0.12

Gen Conditions / Field Establishment

0.04

0.07

0.11

Contingency (Future scope and change orders)

0.23

0.14

0.37

Indirect Cost S/T

0.37

0.74

1.11

Total

2.21

1.71

3.92

Notes: above values exclude O.S.B.L. values, demolition / expense items, future inflation; profit has been incorporated into each specific line item. To establish a budget value for O.S.B.L. add between 5% and 70% of the above compiled values, typically the O.S.B.L. value will fall in the 10% to 25% range. For revamp / upgrade / modernization projects calibrate the above values by the following. • • •

Minor revamps multiply by 1.05 –1.15 Average revamp projects multiply by 1.15 to 1.25 Major revamps multiply by 1.25 to 1.75

(2) Average Historical (Multiplier) Factors - Liquid Plants +/- 25% Accuracy (Chemicals / Fluids / Wet Process’s type facilities, high percentage of pumps / piping) Assume Major Equipment cost is $1.00 million delivered to site the following average percentages should be used as a starting point. Off sites (O.S.B.L.) are excluded from the following data values. Ref 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Direct Construction Costs Major Equipment (M.E.) Freight (used 4%) Overseas Freight M.E. Setting (Millwright work) Site work / civil (excavation / roads) Concrete work Structural steel Facilities / Buildings (including services) Piping** (includes hangars & testing) Electrical Instrumentation / Controls Insulation Painting Safety / F P / Miscellaneous (A) Total Direct Cost

Typical % of M.E. 0

% Bulk Materials 1.00*

% Labor S/C 0.00

Total

Remarks

1.00

2.5 - 5 5-8

0.02 N/A

0.02 N/A

0.04

1-7

0.01

0.05

0.06

3 - 10

0.02

0.03

0.05

8 - 25 15 - 35

0.03 0.10

0.10 0.11

0.13 0.21

Assume $1.00 million 50/50 split N/A for this example Heavy lift cranes in line 15 Site clearance / minor demolition SOG & elevated Including platforms

3 - 15

0.03

0.02

0.05

50 - 150

0.40

0.60

1.00

ISBL only

15 - 45 20 - 65

0.09 0.15

0.13 0.13

0.22 0.28

Including tracing

3 - 25 2 - 10 4 - 12

0.02 0.01 0.02

0.03 0.01 0.03

0.05 0.02 0.05

1.90

1.26

3.16

15

15 16 17 18 19 20

Indirect Project Costs Field Establishment Costs *** EPC Office H.O. range 20% - 30% Construction Management range 20% -.45% of line 16 Owner Engineering & CM 5% – 15% of line 16 & 17 Total Indirect Costs Total Cost Multiplier

0.29 0.86 0.21 0.11

23% of labor / S.C. costs 27% of total direct costs 25% of EPC H.O 10% of line 16 & 17

1.47 4.63

(A) = Start up costs, initial chemicals, expense items and other minor items. * 1.00 = Total value of Major Equipment / Assume 25 items (M.E.) ** 50% - 150% is based on using a 60 - 40 split of Carbon Steel and 304-316 SS, this value could in some situations exceed 150% in circumstances were exotic / expensive piping materials are utilized, i.e. Glass / Kynar / Teflon lined / Alloy 20 / Nickel, etc., or high percentage of 304 - 316 SS, etc. is used due to hazardous / highly corrosive chemical applications. *** Field establishment includes, construction equipment, field offices, field in directs, G.C.’s & S/C trailers, temporary warehouses, Division 1 (Preliminaries) etc. If the proposed project is a hybrid of a liquids and solids plant, use an average of both plants / facilities. To establish a budget value for O.S.B.L. add between 5% and 70% of the above compiled values, typically the O.S.B.L. value will fall in the 10% to 25% range. For revamp / upgrade / modernization projects calibrate the above values by the following. • • •

Minor revamps multiply by 1.05 –1.15 Average revamp projects multiply by 1.15 to 1.25 Major revamps multiply by 1.25 to 1.75

(3) Average Historical (Multiplier) Factors - Solids Plants +/- 25% Accuracy (Cement / Powder(s) / Material Handling type facilities, typically low in piping). Assume Major Equipment cost is $1.00 million delivered to site the following average percentages should be used as a starting point. Off sites (O.S.B.L.) are excluded from the following data values. Ref 1 2 3 4 5 6

Direct Construction Costs Major Equipment (M.E.) Freight (used 4%) Overseas Freight M.E. Setting (Millwright work) Site work / civil (excavation / roads) Concrete work

Typical % of M.E. 0

% Bulk Materials 1.00*

% Labor S/C 0.00

Total

Remarks

1.00

2.5 - 5 5-8

0.02 N/A

0.02 N/A

0.04

1-7

0.01

0.05

0.06

3 - 10

0.03

0.04

0.07

10 - 50

0.04

0.12

0.16

Assume $1.00 million 50/50 split N/A for this example Heavy lift cranes in line 15 Site clearance / minor demolition SOG & elevated

16

7

Structural steel

20 - 50

0.13

0.15

0.28

8

Facilities / Buildings (including services) Piping** (includes hangars & testing) Electrical Instrumentation / Controls Insulation Painting Safety / F P / Miscellaneous (A) Total Direct Cost Indirect Project Costs Field Establishment Costs *** EPC Office H.O. range 20% - 30% Construction Management range 20% -.45% of line 16 Owner Engineering & CM 5% – 15% of line 16 & 17 Total Indirect Costs Total Cost Multiplier

3 - 20

0.03

0.02

0.05

25 - 100

0.25

0.40

0.65

ISBL only

15 - 45 15 - 60

0.09 0.13

0.13 0.12

0.22 0.25

Including tracing

3 - 25 2 - 10 4 - 12

0.02 0.01 0.02

0.03 0.01 0.03

0.05 0.02 0.05

1.78

1.12

2.90

9 10 11 12 13 14

15 16 17 18 19 20

0.25 0.67 0.17 0.08

Including platforms

22% of labor / S.C. costs 23% of total direct costs 25% of EPC H.O 10% of line 16 & 17

1.17 4.07

(A) = Start up costs, initial chemicals, expense items and other minor items. * 1.00 = Total value of Major Equipment / Assume 25 items (M.E.) ** 25% - 100% is based on using a 60 - 40 split of Carbon Steel and 304-316 SS this value could in some situations exceed 100% in circumstances were exotic / expensive piping materials are utilized, i.e. Glass / Kynar / Teflon lined / Alloy 20 / Nickel, etc., or high percentage of 304 - 316 SS etc is used due to hazardous / highly corrosive chemical applications. *** Field establishment includes, construction equipment, field offices, field in directs, G.C. ’s & S/C trailers, temporary warehouses, Division 1 (Preliminaries) etc. If the proposed project is a hybrid of a liquids and solids plant, use an average of both plants / facilities. To establish a budget value for O.S.B.L. add between 5% and 70% of the above compiled values, typically the O.S.B.L. value will fall in the 10% to 25% range. For revamp / upgrade / modernization projects calibrate the above values by the following. • • •

Minor revamps multiply by 1.05 –1.15 Average revamp projects multiply by 1.15 to 1.25 Major revamps multiply by 1.25 to 1.75 and possibly more for extreme situations.

Above costs exclude land purchase, currency impact, front end (study) engineering, spare parts, vendor assistance and off-sites, percentages / multipliers include contingency funds because the above stated values are based on numerous ”historical” return cost data, were the contingency was

17

expended / incorporated into the capital cost of the completed facility. Engineering, Procurement Activities and Construction Management costs are included in the indirect costs. EPC Office includes Engineering and design, procurement, project management / control and required administration. Owner C.M. is not included in the EPC office percentage. Note: the factors for piping, electrical and instrumentation work indicated in (2) and (3) above could be reduced by 20 – 40% (use 30%) if work is fabricated as modules / pre-assemblies / skid, structural steel values should be increased by 10 – 20 % if work is completed as modules / preassemblies / skid (use 15%). (4) M.E. / Percentage Uplift Cost Model: The following historical data reflects a chemical process facilities (valued between $3 - $65 million): 8 liquid process and 4 liquid / solid process and 2 solid process, 3 minor revamp projects are included) constructed in North America in the 1990’s the costs have been calibrated to the mid point of 2006. M.E. / Process Equipment multipliers / benchmarks, data is based on average direct labor hourly rate $33.50, to establish union all in rate add 80 – 90%, for union application. For open shop all in rate add 40 – 75% uplift. Cost model is based on 76 # M.E. ISBL items costing $5,354,832, plus 32 # M.E. OSBL items costing $882,657.

(A) Direct Work - ISBL

Material

%

Labor

%

Total

Major Equipment (M.E.) 76 # items

5,354,832

0

0

0.00%

5,354,832

Freight

112,034

2.09%

0

0.00%

112,034

M.E. Setting in place

36,745

0.69%

392,564

7.33%

429,309

Site Work / Preparation

134,567

2.51%

102,456

1.91%

237,023

210,665

3.93%

332,887

6.22%

543,552

187,097

3.49%

203,599

3.80%

390,696

654,942

12.23%

275,348

5.14%

930,290

1,587,337

29.64%

1,824,484

34.07%

3,411,821

683,457

12.76%

588,244

10.99%

1,271,701

Civil / Concrete Facilities / Architectural Finishes / Siding Structural Steel / Miscellaneous platforms Piping Systems Electrical Systems Instrument / Controls

1,315,337

24.56%

356,445

6.66%

1,671,782

Paint / Insulation / Refractory

198,605

3.71%

161,446

3.01%

360,051

Fire Protection / Safety

90,643

1.69%

91,022

1.70%

181,665

50,098 10,616,359

0.94%

65,644

1.23%

115,742

98.26%

4,394,139

82.06%

15,010,499

See note (1) (A) Total Direct Mat & Labor (B) Indirect Work Trade Supervision / Foreman / Gangers etc.

87,698

1.64%

423,477

7.91%

511,175

Consumable supplies

158,688

2.96%

19,769

0.37%

178,457

Small Tools (items less than $200 per item)

182,486

3.41%

21,094

0.39%

203,580

Site Establishment / Trailers / Temp Offices.

402,577

7.52%

163,974

3.06%

566,551

Safety / Training

29,228

0.55%

63,779

1.19%

93,007

Construction Equipment costs. Rental / Owned.

63,773

1.19%

346,667

6.47%

410,440

Construction Equipment Repairs etc. / Fueling.

25,399

0.47%

68,621

1.28%

94,020

Material Mgmt / Logistics / Field Support

197,099

3.68%

75,025

1.40%

272,124

Testing Activities

19,987

0.37%

10,995

0.21%

30,982

Site Clean Up

29,766

0.56%

71,987

1.34%

101,753

Expense items (Demo / relocations)

17,564

0.33%

37,665

0.70%

55,229

Sales Tax (optional cost item could be excluded)

297,974

5.56%

0

0.00%

297,974

(B) Total Indirect Work Mat & Labor

1,512,239

28.24%

1,303,053

24.33%

2,815,292

Total D & I (A+B) ISBL

12,128,598

5,697,192

18

17,825,790

(C) Detailed Design - D.D.& S. / ISBL EPC Detailed Design

2,041,053

11.45% Of D&I

Construction Mgmt

650,641

3.65% Of D&I

Home Office support / field coordination

55,260

0.31% Of D&I

Travel Costs

276,300

1.55% Of D&I

Owner Project Eng / CM

62,390

0.35% Of D&I

Plant C.M. / Eng Support

128,346

0.72% Of D&I

Front End Project Eng

383,254

2.15% Of D&I

O/S Review / V.E. Study

96,259

0.54% Of D&I

Plant Gen Conditions

51,695

0.29% Of D&I

Consultants / Miscellaneous Costs

258,474

1.45% Of D&I

Total (D.D.& S) ISBL

4,003,672

Total ISBL (A+B+C)

21,829,462

(D) Off sites OSBL Major Equipment / Tank age 32 # items

882,657

Freight

19,234

2.18%

0 0

882,657

M.E. Setting in place

7,868

0.89%

38,960

4.41%

46,828

Site Work / Preparation

27,564

3.12%

18,564

2.10%

46,128 212,324

19,234

Civil / Concrete / Roads / Tank farm / Jetty Mods

77,760

8.81%

134,564

15.25%

Structural Steel / Miscellaneous platforms

27,860

3.16%

38,664

4.38%

66,524

Piping Systems

88,745

10.05%

93,664

10.61%

182,409

Electrical Systems

40,453

4.58%

36,553

4.14%

77,006

Instrument / Controls

58,894

6.67%

14,640

1.66%

73,534

Paint / Insulation

18,547

2.10%

19,336

2.19%

37,883

Fire Protection / Safety

15,453

1.75%

16,677

1.89%

32,130

Loading Facilities

362,447

41.06%

79,774

9.04%

442,221

1,627,482

84.38%

491396

55.67%

2,118,878

(D) Total Direct Mat & Labor (E) Indirect Work Trade Supervision / Foreman / Gangers etc.

16,594

1.88%

66,641

7.55%

83,235

Consumable supplies

29,392

3.33%

2,383

0.27%

31,776

Small Tools (items less than $200 per item)

26,921

3.05%

2,207

0.25%

29,128

Site Establishment / Trailers / Temp Offices.

48,899

5.54%

25,156

2.85%

74,055

Safety / Training

3,089

0.35%

7,503

0.85%

10,592

Construction Equipment costs. Rental / Owned.

12,092

1.37%

65,758

7.45%

77,850

Construction Equipment Repairs etc. / Fueling.

4,855

0.55%

9,268

1.05%

14,123

Material Mgmt / Logistics / Field Support

19,860

2.25%

10,592

1.20%

30,452

Testing Activities

1,854

0.21%

1,324

0.15%

3,178

Site Clean Up

3,707

0.42%

8,827

1.00%

12,534

Expense items (Demo / relocations)

11,739

1.33%

14,387

1.63%

26,127

Sales Tax (optional cost item could be excluded)

48,723

5.52%

0

0.00%

Total Indirect Work

227,726

214,044

1,855,208

705,440

Total D & I (D+E) OSBL

48,723 441,770

1

2,560,648

(F) Detailed Design D.D.& S. for OSBL EPC Detailed Design

136739

5.34% Of D&I

Construction Mgmt

82,197

3.21% Of D&I

Home Office support / field coordination

10,243

0.40% Of D&I

19

Travel Costs

19,205

0.75% Of D&I

Owner Project Eng / CM

11,523

0.45% Of D&I

Plant C.M. / Eng Support

16,644

0.65% Of D&I

Plant Gen Conditions

8,450

0.33% Of D&I

Consultants / Miscellaneous Costs

12,291

0.48% Of D&I

Total (D.D.& S) ISBL

297,291

Total OSBL (D+E+F)

2,857,939

Total w/o contingency

24,687,401

Contingency 10% (range 5% - 20%)

2,468,740

Total (includes ISBL & OSBL)

10.00%

Of Total

$27,156,142

All % are related to M.E. values. Note 1. Vendor assistance, start up, I/C programming and initial chemicals

Total M.E. multiplier = $27,156,142 divided by $6,237,489 (ISBL & OSBL M.E.) = 4.35 Sales Tax may not be applicable because of sales tax exemption certificate. Note (1): other items that may need to be considered, expensed costs v’ s capital costs, demolition, shutdowns and tie-ins and spare parts. For revamp / upgrade / modernization projects calibrate the above values by the following. • Minor revamps multiply by 1.05 to1.15 • Average revamp projects multiply by 1.15 to 1.25 • Major revamps multiply by 1.25 to 1.75 (possibly more for extreme situations)

(5) The following historical return cost data reflects a chemical process facility (liquid / solid process) built in S.E. USA calibrated to the mid point of 2006.M.E. / Process Equipment multipliers / benchmarks, data is based on average direct labor hourly rate $36, to establish union all in rate add 80 – 90%, for union application. For open shop all in rate add 40 – 75% uplift. Cost model is based on 86 # M.E. items costing $9,954,000. $ Millions

$ Millions

Bulk Material

$36/ Hour

Bulk Labor Labor Hours

Major Equipment (86 items) Freight

3.15% Of M.E.

ME install

0.97%

$

Demolition

0.00%

$

Site Works

2.17%

$

0.097 0.216

3.95%

$

Total in $ Millions $

9.954

$

0.314

0.393

10,922

$

0.490

2.03%

$

0.202

5,625

$

0.202

2.80%

$

0.279

7,754

$

0.495

Foundations / Concrete work

3.97%

$

0.395

2.57%

$

0.256

7,117

$

0.651

Building structure

9.39%

$

0.935

8.59%

$

0.855

23,758

$

1.790

Pipe

23.09% $

2.298

29.95%

$

2.981

82,819

$

5.280

Electrical

11.09% $

1.104

14.12%

$

1.405

39,040

$

2.509

20

Instrumentation / Control

16.60% $

1.653

5.68%

$

0.566

15,718

$

2.219

Paint

2.26%

$

0.225

2.65%

$

0.264

7,326

$

0.488

Insulation

3.89%

$

0.387

3.86%

$

0.384

10,674

$

0.772

Fire protection

2.06%

$

0.205

2.16%

$

0.215

5,981

$

0.421

Refractory / Miscellaneous items

2.45%

$

0.244

3.41%

$

0.339

9,424

$

0.583

Total Directs (A)

77.95% $

7.759

81.79%

$

8.142

226,157

$

26.167

16.04% Of labor

$

1.306

1.69% Of labor

$

0.138

Field establishment

2.46% Of material

$

0.191

Field establishment

2.57% Of labor

$

0.209

Consumables

0.87% Of material

$

0.067

Small tools

0.88% Of material

$

0.068

Construction equipment

7.67% Of labor

$

0.624

Construction maintenance

1.45% Of labor

$

0.118

Material handling

2.23% Of material

$

0.173

Clean up

1.85% Of labor

$

0.151

Road maintenance/ barriers

2.17% Of labor

$

0.177

Vendor assistance

0.89% Of M.E.

$

0.089

Contractors fee

2.25% Of directs

$

0.589

I/C programming

4.75% Of I/C L & M

$

0.105

Spare parts

2.18% Of M.E.

Field in directs Field supervision Field admin / secretary

$

0.217

Total Indirect (B)

$

4.222

Total (A) + (B)

$

30.389

Engineering / CM (C) EPC firm Detailed design

10.23%

3.109

$

3.109

0.35%

0.106

$

0.106

EPC firm Procurement

0.57%

0.173

$

0.173

EPC firm Construction Mgmt

3.85%

1.170

$

1.170

EPC firm Field support (RFI’s)

Owners Engineering

0.45%

0.137

$

0.137

Owners Construction Mgmt

0.18%

0.055

$

0.055

Front End studies

1.48%

0.450

$

0.450

Owner General conditions

0.33%

0.100

$

0.100

5.300

$

5.300

$

35.689

Engineering / CM (C) Total Project (A+B+C)

Total Project = $35.689 million divided by Major Equipment = $9.954 million = 3.58 (note: off-sites not included – off-sites were a separate contract – valued at $4.70 million) (6) Refinery / Petro-Chemical Expansion (SRU) USA Gulf Coast (2004 Costs) Constructed on an established operating site with adequate utilities (needing some upgrading) Costs are based on final close out report: Category

$ Million

21

Remarks

Major Equipment (M.E) 121 items

17.20

Freight Setting of M.E. (L&M) Demolition (L&M) Site Preparation (L&M) C/S/A (L&M) Piping (L&M) Electrical (L&M) I/C (L&M) Insulation (L&M) Painting (L&M) Miscellaneous items (F-P, Spare Parts, V.A. I/C programming (L&M) Direct Costs Field Establishment / In Directs 33.5% Directs + Indirect Costs Detailed Design ISBL 10.5% CM ISBL 3.20% ISBL Cost OSBL (Tank Farm / Loading Facilities) Detailed Design OSBL 7.5% CM OSBL 2.9% Total Facility ME multiplier without OSBL ME with OSBL

0.41 0.87 0.21 0.84 1.88 8.33 2.95 3.21 1.47 0.44 0.37

693 Design hours / Per M.E. item

38.18 12.79 50.97 5.37 1.63 57.97 6.85

83,900 M.H.’ s

0.51 0.20 65.53

7,950 M.H.’ s 3.37 3.81

Excludes: Owner corporate engineering $298,000 and Front End Study $445,000: Demolition could be an expense item. Refer to previous L & M ratio’s to determine man-hours and material splits.

(7) Glycerol Esters / Fatty Acids Facility - 2007 Cost Basis: Ref Category of Work # (A) Direct Work - ISBL / OSBL 1

Material

% of M.E.

Labor

% of M.E.

Total

1,985,200

0

0

0.00%

1,985,200

0

2

Major Equipment (M.E.) 41 # items Freight

60,549

3.05%

3

M.E. Setting in place

8,933

0.45%

4

Site Work / Preparation

56,578

2.85%

0.00%

60,549

6.35%

134,994

4.25%

140,949

8.65%

313,662

2.95%

113,355

5.47%

439,523

62.65%

1,866,088

11.35%

537,989

8.37%

925,500

126,060 84,371 5

Piling / Civil / Concrete

141,942

7.15% 171,720

6 7 8 9

Facilities / Architectural Finishes / Siding Structural Steel / Miscellaneous platforms Piping Systems (40% CS - 55% SS) Electrical Systems

54,792

2.76% 58,563

330,933

16.67% 108,590

622,360

31.35% 1,243,728

312,669

15.75% 225,320

10 Instrument / Controls

759,339

38.25% 166,161

22

11 Paint / Insulation / Refractory

53,600

2.70%

3.77%

128,442

11.25%

329,742

74,842 12 Fire Protection / Safety

106,407

5.36% 223,335

13 Off sites / Miscl items See note (1) (A) Total Direct Mat & Labor

155,838 4,649,140

(B) Indirect Work

7.85% 134.19%

7.05%

295,795

139,957 2,622,648

82.06%

7,271,788

164,772

30,771

1.55%

134,001

% of M.E. 6.75%

34,741

1.75%

8,933

0.45%

43,674

44,667

2.25%

7,147

0.36%

51,814

134,001

6.75%

58,563

2.95%

192,564

3,970

0.20%

20,845

1.05%

24,815

19 Construction Equipment costs. Rental / Owned.

45,064

2.27%

108,392

5.46%

153,456

20 Construction Equipment Repairs etc. / Fueling.

10,919

0.55%

25,212

1.27%

36,131

21 Material Mgmt / Logistics / Field Support 22 Testing Activities

62,137

3.13%

32,756

1.65%

94,893

5,559

0.28%

5,757

0.29%

11,316

23 Site Clean Up activities / snow removal 24 Expense items (Demo / relocations of cooling tower, oxygen tank, pipe bridge and pad # 3A) (B) Total Indirect Work Mat & Labor Total D & I (A+B) ISBL / OSBL

13,896

0.70%

30,771

1.55%

44,667

68,489

3.45%

68,489

3.45%

136,979

454,214

22.88%

500,866

25.23%

955,080

14 Trade Supervision / Foreman / Gangers etc. 15 Consumable supplies 16 Small Tools (items less than $200 per item) 17 Site Establishment / Trailers / Temp Offices. 18 Safety / Training

(C) Detailed Design - D.D.& S. / ISBL 25 EPC Detailed Design / Project Management / Procurement 26 CAD / Computer charges / Express mail 27 Construction Mgmt / field project controls 28 Home Office support / field coordination (RFI ‘s), inspections at vendor shops 29 Travel Costs

% of M.E.

5,103,354

3,123,514

8,226,867

% of A & B 10.23%

841,609

0.24%

19,744

3.76%

309,330

0.39%

32,085

1.05%

86,382

30 Owner Project Eng / CM

0.42%

34,553

31 Plant C.M. / Eng Support

0.75%

61,702

32 Front End Project Eng

2.35%

193,331

33 O/S Peer Review / V.E. Study / Risk study 34 Plant Gen Conditions / Trailers

0.75%

61,702

0.37%

30,439

1.37%

112,708

35 Consultants / Miscellaneous Costs Total (D.D.& S) ISBL / OSBL

1,783,585

Total Project Cost ISBL / OSBL (A+B+C)

10,010,452

23

Multiplier M.E. to TIC = 5.04, this includes some off sites work approx $250K direct x 1.35 for indirects and detailed design = $337,500 = $9,672,952 / $1,985,200 = 4.87 items 30, 31, and 34 should also be excluded from 4.87 multiplier: Note 1. Miscellaneous items are spare parts, initial fill, and some vendor assistance for a total of $49,800; the off sites included piping utilities, an addition to a tank farm, product loading area and tie-in’s. Detailed design hours $841,609 / $59.75 average cost per hour = 14,085 hours / 41 M.E. items = 344 hours per M.E. item:

(8) 250 and 500 MW Power Facility (Coal Fired) 2008 Cost Basis: Description Site Works Site clearance / Site Improvement Demolition Retention ponds / M.U. Ponds / Piping river intake / dredging Walkways Perimeter roads Railroad spur Water Vault / Sewage treatment facility Site fire main Security fence / gates Potable water main Miscellaneous signs / site works items Sub Total Buildings / Facilities Steam Generation Bldg / Stack foundation Turbine Facility 2 floors 1 mezzanine (150’ 250’ x 50’ high) Operator Changing Rooms / Break Areas / Warehouse Control Bldg Office / Admin Bldg / Cafeteria W W T Control Room Coal Handling Bldg / Area Emergency Generator Bldg (black start) Chemical treatment Bldg River Intake Bldg

24

250 MW

500 MW

18.73 0.00 19.83 0.59 5.85 3.51 0.99 3.51 2.14 0.60 0.77 56.52

23.45 0.27 26.72 1.34 7.65 3.96 1.74 5.16 3.38 1.06 0.96 75.69

33.43 19.88 1.04 2.67 0.70 5.91 0.70 2.32 0.98 1.69 0.98

59.66 36.58 1.83 4.92 1.27 7.44 1.27 4.08 1.81 2.97 1.75

% of "A"

% of "A"

13.9%

10.8%

Guard / Security Center Fire Engine Bldg Gatehouses Hard standings / Pads Parking Area Plant air / vacuum system Miscellaneous Building items Sub Total Turbine / Steam Generation Turbines & Ancillary equipment (incl piping / electrical / controls) Steam Production / Boilers (incl piping / electrical / controls) Electrical Transformers / Switchgear (incl piping / electrical / controls) Turbine Vent systems (incl piping / electrical / controls) Drafting Systems & Concrete Stack (incl piping / electrical / controls) Scrubber(s) system (incl piping / electrical / controls) Coal Handling / Crushers (incl piping / electrical / controls) Coal Washing Equipment (incl piping / electrical / controls) Ash / Cinder Collection (incl piping / electrical / controls) Feed water Condensate Systems (incl piping / electrical / controls) Chemical Injection - Treatment / sampling system / tanks Insulation and refractory Cooling Tower systems / M.U. water tanks (incl electrical / controls) Spare parts (Pumps, impellers, valves, blades and other items) Operating Equipment "AA" Miscellaneous Generation items Sub Total "A" Construction Total Div 1 / G C's / Temp Construction Sub Total Detailed Design / Construction Management Detailed Design (Engineering deliverables) and Fee FE Engineering Studies Owner Engineering / CM / Procurement / Inspection / Start up CM and Fee Sub Total T.I.C. in US $ millions - mid 2007 Cost Basis - Mid West USA Cost per MW Low Range MW cost High Range MW cost General Notes: Excludes land purchase. Detailed design 38 month effort. Procurement 28 month effort. Construction 55 month effort. "AA" Fire truck(s), forklifts, van(s), crane(s), truck(s), w/h tools - racks, f/f, office equipment, cafeteria equipment, other miscl items.

25

0.42 0.56 0.35 0.91 0.98 1.76 0.45 75.76

0.77 1.03 0.63 1.62 1.80 3.21 0.72 133.35

51.25 71.66 8.25 6.71 35.30 12.95 4.13 6.61 20.16 14.64 1.93 3.73 34.69 1.75 1.15 0.66 275.58 407.86 43.43 451.29

89.18 132.35 15.86 12.19 62.29 23.96 7.34 11.94 35.48 26.06 3.51 6.49 60.35 2.57 1.57 1.25 492.39 701.43 82.54 783.97

48.25 7.55 14.56 19.17 89.53

80.58 10.12 23.59 31.84 146.12

540.82 $ 2,163 $ 1,514 $ 2,812

930.10 $ 1,860 $ 1,302 $ 2,418

18.6%

19.0%

67.6% 100.0% 10.6%

70.2% 100.0% 11.8%

10.7% 1.7% 3.2% 4.2% 19.8%

10.3% 1.3% 3.0% 4.1% 18.6%

(9) Steel Production Facility (2008 Cost Basis):

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Category % of M.E. Major Equipment “A” Freight 3.2% Major Equipment setting 8.9% Demolition 1.0% Site work 3.4% Civil work (foundations) 12.1% Structural Steel 12.8% Piping 7.3% Insulation / Refractory 1.0% Electrical 15.5% Instrumentation / Controls 7.7% G C / Site Establishment 13.0% TIC w/o Detailed Design / CM 185.9% Detailed Design 13.9% Construction Mgmt 6.1% TIC - 2007 Cost Basis “B” in millions of US $

% of TIC 48.6% 1.5% 4.3% 0.5% 1.7% 5.9% 6.2% 3.5% 0.5% 7.5% 3.7% 6.3% 90.3% 6.7% 3.0% 100%

$ Total Cost 269.70 8.55 23.95 2.79 9.30 32.64 34.58 19.59 2.79 41.71 20.77 35.05 501.41 37.49 16.51 555.41

M.E. Multiplier (“B” / “A”)

2.05

Notes: The detailed design is low at 6.7%, this is due to the fact that a good amount of the “systems” in the major equipment are designed by specific vendors. Steel mills / steel facilities usually have a M.E. multiplier of 1.75 – 2.35. (10) Combined Sewage - Process / Water Conditioning Facility: (2008 Cost Basis)

Major Equipment (53 # items) Major Equip setting

$ Cost in Millions 1.111 0.074

6.60%

Concrete Tanks / vault Roads / Walkways Fire main Site works Civil / Concrete excluding vault Pre cast Concrete

0.952 0.537 0.068 0.137 0.257 0.117

85.70% 48.30% 6.10% 12.30% 23.10% 10.60%

Structural Steel / Platforms Building (W-H / control – admin) Pipe (CS, SS and CPVC) Insulation Electrical / tracing Instrumentation

0.233 0.291 0.578 0.228 0.537 0.429

20.90% 26.10% 52.00% 20.50% 48.30% 38.60%

Category

% of M.E.

26

Notes $20,962 per M.E. item 1,390 man-hours 1 # 35’ diameter tank and 2 # 55’ x 55’ x 30’ high vaults 195’ 260’ 7 Acres

Includes 170’ pipe bridge – 105 ton

275 # devices

Painting Epoxy coating to tanks Lab / Office Equipment / Maintenance Equipment

0.079 0.04

7.10% 3.60%

0.053

4.70%

Total Construction Cost

5.719

Preliminaries / General Conditions - 5.5% Detailed Design 9.90% P M / CM 5%

0.672 0.535 0.292

Total • •

60.50% 48.10% 26.20%

9,570 man-hours

7.218

Excludes: Royalties / Technology Fee. Typical Range 7.5% - 15% of Total Construction Cost, Demo $211,250, re-routing utilities $43,710 Front End studies, Owner engineering costs of $298,700.

27

(11) Crude Distillation – Cabin Oil Heater – Re-boiler- Flue Gas Add-on Facility 320 Million BTU’s ($177,300 per million BTU’s - Typically $160,000 - $185,000) USA Upper mid West (Ohio) 2009 Cost Basis Total Construction Cost $56,744,404 / 42 M.E. Items = $1,351,057 Merit Shop Construction (Combination of Union & Non Union) 12 month Detailed design (DD) effort, 21 Month Construction effort (Construction started 5 months into DD) Construction Category

Qty

U/M

Material

Hours

$ Rate

Labor

Total 9,336,700

Major Equipment (M.E.) Columns / Tower / Trays - Modifications

4

Ea

7,210,500

30,314

70.14

2,126,200

Bayonet Section / Re Tubing & Manifold

1

Ea

453,000

2,582

70.14

181,090

634,090

Heater / Re-boiler / Flue Gas Stack

3

Ea

9,038,000

65,441

70.14

4,590,000

13,628,000

Compressor

1

Ea

345,600

381

70.14

26,740

372,340

Cabin / Pre-Heater section

2

Ea

275,500

423

70.14

29,670

305,170

Injection skids/ manifolds

2

Ea

175,230

250

70.14

17,550

192,780

Pumps with motors

6

Ea

54,560

211

70.14

14,790

69,350

Heat Exchangers 3 new ( 5 modified)

8

Ea

148,100

2,467

70.14

173,050

321,150

Refurbish M.E. (Compressor, Blower & Pumps)

7

Ea

65,720

1,668

70.14

117,000

182,720

Miscellaneous equipment: coils / drums / tanks etc

6

Ea

532,600

390

70.14

27,340

559,940

Tank modifications / Baffle reconfigurations

2

Ea

128,500

1,860

70.14

130,450

258,950

S/T

42

18,427,310

105,986

7,433,880

25,861,190

19,053,839

105,986

7,433,880

26,487,719

AC

384,300

6,470

50.15

324,450

708,750 454,700

Freight 3.34% (on M.E.)

626,529

M.E. Sub Total (A) $26,487,719 / 42 M.E. = $631 K

626,529

Non Engineered / Engineered Materials Site improvements / 190 LF Rail spur with switch

8

Caissons / Piling ($75 / LF)

6,100

LF

246,700

4,148

50.15

208,000

Concrete (Foundations and flatwork - $499 CY)

1,695

CY

376,900

7,797

60.14

468,900

845,800

412

Ton

543,980

7,257

70.14

508,990

1,052,970

Structural Steel / Platforms ($2,556 Ton) Piping (Aver 8" diameter - CS 65% / SS 35% - $515 LF)

6,920

LF

2,012,000

22,165

70.14

1,554,640

3,566,640

Piping small bore 1.5" diameter and less ($81 LF) Electrical (Equipment, switchgear, MCC, cable / conduit and hook ups)

7,900

LF

122,500

7,340

70.14

514,828

637,328

413,600

6,483

70.14

454,720

868,320

Instruments / controls / cable I/C ($1,288 per I/O)

1,020

No

934,370

5,410

70.14

379,450

1,313,820

Insulation to pipe ($149 LF)

5,450

LF

536,000

4,588

60.14

275,900

811,900

Flue Gas Stack & Duct Modifications ($3,814 Ton)

142

Ton

296,750

4,071

60.14

244,800

541,550

Firebrick (2.5”) and (1”) gunite type lining ($63 SF)

4,710

SF

172,000

2,084

60.14

125,360

297,360

Painting ($2.10 SF)

79,900

SF

65,660

1,694

60.14

101,890

167,550

Buildings (Control Room / Change Area - $112 SF)

3,350

SF

184,600

3,157

60.14

189,850

374,450

147,800

6,250

60.14

375,900

523,700

50.15

Asbestos / Lead paint removal Demolition / removals ($300 Ton)

1,930

Ton

65,500

10,261

6,502,660

99,174

SY

67,550

1,740

Non Engineered / Eng Materials S-T (B)

514,600

580,100

6,242,278

12,744,938

50.15

87,250

154,800 131,800

Offsite work / OSBL Roads / Parking area ($25 / SY)

6,100

Additional Bund Walls to tank farm ($488 CY)

270

CY

54,870

1,534

50.15

76,930

Modify pipe rack ($4,881 / Ton)

27

Ton

48,987

585

70.14

41,040

131,800

Move existing u/g drains & utilities ($158 LF)

1,300

LF

116,980

1,772

50.15

88,880

205,860

Pipe runs & tie ins (Aver 8" diameter - $370 LF)

1,780

LF

246,230

5,881

70.14

412,470

658,700

28

Piping small bore 1.5" diameter and less ($69 LF)

2,680

LF

43,560

2,010

70.14

140,981

184,541

Insulation with metal jacket ($121 LF)

1,320

LF

74,570

1,419

60.14

85,310

159,880

680

SF

23,450

857

60.14

51,550

75,000

Elect runs & tie ins from D sub station ($260 LF)

1,020

LF

79,700

2,642

70.14

185,300

265,000

Fence to E side + 2 Gates (1,750 LF - $69 LF)

120,000

Modifications to control room ($110 SF)

1,950

LF

76,890

860

50.15

43,110

Truck loading area (CSA & MEP systems) ($86 SF)

800

SF

43,510

423

60.14

25,460

68,970

Mod to Tank age area ($445 / CY)

780

CY

236,780

1,571

70.14

110,220

347,000

1,348,501

2,503,351

-

15,024,659

41,736,008 1,000,699

Offsite work / OSBL Sub Total ( C)

1,113,077

21,294

Total of M.E. & Field Construction (D)

26,669,576

226,454

Field Support / General Conditions Supervision (6.7% of Field Construction Labor)

-

13,587

73.65

1,000,699

Labor support (clean up / mat deliveries 0.013 of D)

157,000

6,161

60.14

370,500

527,500

Scaffolding / Barricades 0.0108 of D

147,670

4,744

60.14

285,330

433,000

Small tools / Consumables / Hard hats etc $3.37 / hr

696,580

1,118

60.14

67,260

763,840

Field offices / Trailers / Secretary / Security

163,000

8,637

37.55

324,330

487,330

Construction Equipment / Fuel / Site Vans

375,450

8,637

57.01

492,350

867,800

Temporary power / utilities

26,340

264

65.36

17,260

43,600

2,557,729

4,123,769

17,582,388

45,859,777

Field Support / General Conditions S-T (E)

1,566,040

43,149

Total of D + E

28,235,616

269,603

-

Detailed Design / PM-PC-Proc effort 7.9% of D+E

32,614

110.50

3,603,800

Computers / CAD / Xerox copies F-X $7.25 per HO hour

32,614

CM Staff (7) 3.36% of D+E

15,217

101.25

1,540,700

Detailed Design & Construction Mgmt 238,082

CM General Conditions (including above) HO Start -up assistance

3,150

110.50

348,075

HO Field Support / RFI's / Vendor visits / Surveys

1,460

110.50

161,330

Travel / Per Diem / Miscellaneous items

445,800

D. D. / CM Sub Total

6,337,787

Other Project Related Costs Overtime / Shift work (HO & Field) allowance. Vendor Support 300 Hrs @ $120 hr + expenses.

570,500 300

Hours

39,600

Spare Parts (Expense)

287,000

Initial fill / Grogg.

165,800

Owner Support / Consultants (7,160 Hours) 2% of D+E

894,800

Owner travel / expenses.

87,740

Sales tax 5.5%

1,518,500

BAR Insurance / Bonds.

238,600

Owner Start up assistance / commissioning.

174,300

Early Engineering studies.

570,000

Other Project Related Costs Sub Total

4,546,840

Total Project Cost

56,744,404

Notes A. Field Labor unskilled rate = $29.85 x 1.68% $50.15 Laborer. B. Field Labor semi-skilled rates = $35.80 x 1.68% $60.14 Painters / Insulation workers. C. Field Labor skilled rates = $41.75 x 1.68% $70.14 Millwrights / Pipefitters / Electricians. 68% = Fringes, WCI, FICA, Unemployment Insurance, OH & P. Contingency / Escalation pro –rated and included above.

29

(12) Chemical Production Facility: Multiplier 3.00 2008 US Gulf Coast, 10 month Construction Effort Open Shop Construction

Category

Material

M-H's

Rate including Fringes

Labor

% of M.E.

Total 1,621,00 0 50,778 1,671,77 8 93,570

5.6%

M.E. (12 items) Freight 3.15%

1,621,000 50,778

S/T M.E. A M.E. setting Site work / Excavation Concrete Structural Steel

1,671,778 3,200

2,884

31.33

90,370

17,520 49,690 97,720

1,843 2,884 1,518

27.35 28.93 32.75

67,920 133,120 147,440

4.1% 8.0% 8.8%

155,230

4,804

31.88

308,370

18.4%

Pipe 259,360 8,451 Electrical 108,270 2,383 Instrumentation 47,260 1,070 Insulation 29,660 980 Fire protection 15,060 465 Painting 11,830 702 Demolition 11,530 862 OSBL (Pipe/Electrical) 33,530 1,287 Fence / Road / Stone 45,850 1,512 Construction Total B 885,710 31,644 In-Directs Sup 7.75%L WC Insurance 17.65% of Labor FICA State Unemployment BAR 16.35% of Labor HO support 12.5% of Labor Temp facilities plus admin / clerk Small tools / consumables 1.75% of Labor Scaffolding Rental of Const equipment GC profit 8.5% on L &M excl M.E. S/T In-Directs C

32.85 33.25 33.42 28.85 29.77 28.25 26.47

50,400 83,430 49,720 153,14 0 277,63 0 79,230 35,760 28,260 13,830 19,820 22,820

536,990 187,500 83,020 57,920 28,890 31,650 34,350

32.1% 11.2% 5.0% 3.5% 1.7% 1.9% 2.1%

41,620 41,340 987,37 0

75,150 87,190 1,873,08 0

4.5% 5.2%

Bldg / Siding / Roof

32.33 27.35

76,521 174,271 161,435 123,421 87,350 17,280 16,450 39,230 159,212 855,170 4,400,02 8

S/T A+B+C Other Costs Detailed design + fee 7.7% CM 3.7+ fee% CM Trailer / Services 10 months Spare Parts

338,802 162,801 12,500 14,500

30

112.0%

Refurbish pumps / heat exchanger Demo (Expense) Commissioning / Start Up S/T

19,540 38,760 27,600 614,503 5,014,53 1

Total

Typically major equipment multipliers (to arrive at a total installed cost of the proposed facility, this multiplier would cover, materials, labor, in-directs, detailed design, construction management) for power, steel, pharmaceutical, chemical facilities (liquids, solids and a hybrid of both) type facilities fall into one of the following categories / major equipment (M.E.) multipliers. TYPE OF PLANT Chemical - Liquids Chemical - Liquids / Solids (Hybrid) Chemical - Solids Ethanol Facility (corn / sugar cane) Pharmaceutical Power Steel

LOW RANGE M.E. Multiplier 3.75 3.25

MEDIAN M.E. Multiplier 5.00 4.50

HIGH RANGE M.E. Multiplier 6.25 5.75

2.50 2.75

3.75 3.25

5.25 3.75

1.75 2.00 1.50

2.50 3.30 2.00

4.50 4.00 2.50

Low Range: Typically is an open structure, has a high level of carbon steel piping, an unsophisticated instrumentation / control system, open shop construction workforce and a normal construction schedule. Solids has a limited amount of piping, the major equipment is usually material handling, crushers and grinders. Median Range: Typically is a combination of enclosed / open structure, has an assortment of carbon steel and stainless steel piping (60% C.S. and the balance S.S. or better), a reasonably sophisticated instrumentation / control system, open shop or a combination of union construction workforce and a normal construction schedule. High Range: Characteristically the major equipment is housed in an enclosed structure / building, has an assortment of carbon steel and a high content of stainless steel piping (30% C.S. and the balance 70% S.S. or better), has a state of the art instrumentation / control system – TDC 3000 or equal, open shop or a combination of union construction workforce and a fast track construction schedule, is a hazardous process, is based on new technology. Other considerations: (refer to other benchmarks on page 28 33) (D) Front End – Semi-Detailed / Square Foot / Conceptual Estimates (+/- 25% Accuracy) Front end – semi detailed, conceptual, capital cost estimates are usually compiled in the more advanced stage of the front end / conceptual definition / design development effort or early on in the process design stages, i.e. 5% - 15% of the detailed design should have been completed (or a front end design package has been completed). They are typically prepared to formulate the first round of project viability / economics, ROI, that are used to select one chemical / manufacturing process over another or to validate earlier economic evaluations / estimates. The front end / semi-detailed

31

method can in some situations be of great assistance as quick / cost effective and reasonably defined cost forecast, (accuracy is in the +/- 20-15% range) compared to the lump sum / detailed method described below, the lump sum / detailed method estimating approach takes much more resources / deliverables to compile, the accuracy may be better say +/-15 -10%, however by perhaps increasing the contingency value by a couple of percentage points this accuracy differential could be mitigated. The front end / semi-detailed estimate provides a reasonable cost evaluation at a much smaller preparation cost and time value, in essence it is based on one premise, the major equipment price list (delivered to site), it is typically predicated upon major equipment listing, i.e., quotes / pricing, hopefully from pre-qualified fabricators / vendors together with preliminary sketches, major quantity take-offs and material unit prices / unit erection hours. This capital cost estimating method / approach is the best “path forward” when a detailed capital cost estimate can not be compiled without the knowledge and advantage of a reasonable amount of completed detailed engineering and the costs associated with this effort, a reasonably accurate front end / semi-detailed estimate, with an accuracy of say -/+ 20% - 15% can be completed with some of the following engineering deliverables. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

A preliminary / detailed scope of work statement / project execution approach. The location of the new / existing plant. A major equipment list and specifications / materials of construction, with vendor pricing if possible. P.C.A.’s / Phase 1 Environmental Reports (if available). Process Flow Diagram’s P.F.D.’s. Reasonably complete P. & I. D.’s …say 30-70% complete. Some general arrangement drawings, plot plan, some out line / detailed specifications. Preliminary Electric motor list. Electrical classification map. Instrumentation / Control philosophy. Preliminary Instrumentation list. Preliminary equipment arrangements. A milestone “event” schedule (start of engineering, procurement and construction and finish date). Knowledge of off-site requirements. Construction approach union / open shop labor (merit shop).

In general the cost estimate must be a reflection of the (1) Scope of Work, (2) Project Execution Plan (i.e., direct hire, construction packages, GC approach) and (3) The current Milestone schedule (start and finish date). If the plan of attack is to use multiple construction contractors, the cost estimate basis and backup supporting documentation must include sufficient details so that the final anticipated cost can be established with least amount of effort to mirror potential scope changes. Additional front end / semi-detailed unit prices and various pricing methods can be found in section D –1. (E)

A.F.E. Funding Estimates / Preliminary Estimates (+/- 20% Accuracy)

These A.F.E. (Approval for Expenditure) “funding” initial control capital cost estimates are produced after the project studies / basic process design package is completed or substantially completed, perhaps 70% complete and the scope of the off-sites has been established or at least initially scoped out. AFE / Preliminary estimates are typically used to assist in the compilation of detailed project execution plan, also to finalize the R.O.I. / EBITDA payback economics. Many time companies use this estimate to get funding from their board of directors, this is the stage in the projects life cycle to obtain it’s full approved funding, typically the detailed engineering effort might

32

be considered 10% to 20% complete, an appropriate contingency for this type of capital cost estimate would be in the 15% – 20% range. (F)

Validation (Check Estimate) Control / Estimates (+/- 15% Accuracy)

A hybrid of an AFE estimate and a lump sum / definitive estimate, used sometime as a preliminary control estimate, sometimes used to confirm or validate the AFE funding estimate; the engineering typically would be at the 20% - 35% level, when this capital cost estimate is assembled. (G)

Lump Sum (Control)/ Definitive Estimates / GMP / Hard Money / Tender Submission (+/- 5% Accuracy or less)

The lump sum / definitive capital cost estimates are typically compiled / arranged when the project has been comprehensively documented (a good amount of engineering deliverables i.e. drawings and specifications have been completed), i.e., 50% -75% engineering is defined, including plant location, actual location of facility within the plant, detailed scope of work, project approach, specifications, timing, major equipment requirements are known and long lead items may have been ordered and any off-site requirements are known and engineering on the off-sites is well advanced, many times construction could have commenced. This approach the lump sum / hard money / detailed method of capital cost estimating is typically utilized by EPC / engineering firms and / or contractors, some owner type companies still compile this type of “detailed” capital cost estimates. This is vital of course to any firm providing a lump sum bid. This approach is, as its name means, is very much more labor (engineering, design staff, procurement and project controls), intensive that the previous mentioned front end approaches described previous. B of Q’s, (Bill’s of quantity), Major Equipment lists, Instrument lists, bulk material take-off ‘s are typically made to a large extent from completed drawings and specifications, typically the engineering effort is in the 50% -70% range, possibly even more advanced. Lump Sum Quotes are obtained on the major equipment and specific construction work packages from a reasonable number (2 or 3) of pre-qualified vendors and individual subcontractors. Detailed bulk material lists are compiled and forwarded to vendors, the estimator / cost engineer will also price these items out to ensure / check / verify vendor and sub contractor pricing. The field labor man-hours are evaluated based on quantity take-off measurements / productivity is evaluated. The EPC home office and field support engineering / procurement hours are compiled based on the required project deliverables, typically by each engineering lead engineer. Detailed Engineering and field supervision and field establishment expenses and other items, such as copies, drawings, telephone expenses, travel expenses, CAD machines, construction rental equipment, freight, import duties and taxes, safety requirements, insurance, contingency, management reserve, insurance, vendor assistance, taxes, permits, testing, freight, import duties / tariffs if required, etc., are all reviewed, estimated, compiled and priced out and incorporated into the estimate summary. General Benchmarks: To be reviewed and added to the previous cost models if appropriate: Ref

Description

Range

1

Offsites (OSBL)

2

Fringes (vacations, holidays, sick days) Worker Compensation Insurance

5% - 50% of Inside Battery Limits (ISBL) 22% - 30% of base wage rate 10% - 17.5% of base wage rate

3

Cost of Facility

33

Cost of Activity

Comments

4

1.5% of TIC

8

Inspections / QA-QC services Front End Studies / Scoping study / BOD Builders all risk insurance (BAR) Contractors O/H (Supporting construction / field activities) Profit

9 10

Performance Bond Procurement activities

11

Engineering support

12

H.O Project Controls

13

Value Engineering Study

14

Risk Mgmt Review

15

Project Reviews / Audit / Benchmarking Analysis

16

5% - 8% of TIC

17

General Conditions / Preliminaries Small Tools

18

Consumables

19

Temporary Services

20

Field Supervision

21

Major Equipment multiplier

1.25 – 3.5% of Direct - S/C Labor 0.75% – 1.50% of Direct - S/C Labor 2.5 – 12.5% of Direct - S/C Labor 3.0 – 5.0

5 6 7

0.5 – 2.5% of TIC of facility. 0.15% - 0.60%

$1 - $100 + million $1 - $100 + million

4 00% - 15.00%

The larger the TIC value of the project the lower the % typically is. Typically on a $20 million new building / facility a profit margin between 5% - 8.5% can be realized dependent on economic climate and number of bidders - 5 + or more bidders generally translates to lower profit margins.

3.5% - 15%

0.35% - 1.25% 0.50 – 1.00% of TIC 0.50 – 1.00% of TIC 0.50 – 1.50% of TIC

Purchase orders and contracts Field questions, vendor visits, answers to RFI Estimating, cost engineering and planning activities $5 million $10 million $50 million $5 million $10 million $50 million $5 million $10 million $50 million

$20 - $40 K $30 - $60K $40 - $100K $20 - $30 K $30 - $40K $40 - $60K $20 - $45 K $35 - $70K $45 - $100K (CSI Division 1 Preliminaries) Hand tools / typically valued less than $100 per item Typically $2.50 $4.00 per construction man-hour (Gases, welding rods, grease etc.)

1.5 – 5% of Direct - S/C Labor

Could be 5.0 – 7.0 for remote plants and facilities using SS and exotic

34

Multiplier of d/d M.E item (cost). An example of a high multiplier would be Canadian Tar Sands projects

metals 22

Construction Equipment

2 – 7% of Direct - S/C Labor 0.20 – 0.40% of Direct S/C Labor 2 – 4% of Total Installed Cost of Facility on CM General Construction Projects

23

Protection materials

24

Contractors Fee

25

Vendor Assistance

26

Spare Parts

27

Royalties / Licensor Fees

28

Overtime shift work

29

Validation Services (were required)

30

Operator Training

31

Owners Staff / Engineers, Consultant based at EPC office / field location during construction effort

32

Owners Engineers North American Staff / Consultants based at EPC office / field location during construction effort

South America ($70 - $125 / hour)

33

Owners engineers North American Staff / Consultants based at EPC office / field location during construction effort

Europe ($70 - $125 / hour)

0.50 – 1.50% of Major Equipment 2.5 – 5.50% of Major Equipment, typically in the 2-4% range on complex facilities use 55 – 7.5% of the M.E. cost 0.25% - 3.5% of major equipment 0 – 10% of Direct Labor 10 – 40% of Detailed design costs 0.5 – 2.5% of M.E. North America ($70 - $100 / hour)

Tarpaulins / temporary screens / worker rain gear. Large projects would see fee in the 2 – 3% range. On Refinery / Process / Power type construction fees can range from 6% 10% of TIC Another approach is to obtain pricing from vendors for this activity Another approach is 1.5% – 7.5% of rotating equipment (Pumps, compressors etc)

Another approach is 0.5% – 3.5%% of TIC of facility Use 5% - 10% of labor cost if o/t is anticipated 1 – 5% of TIC

$10 - $15K per month (based on 166 m/h per month) $10 - $17K per month (based on 166 m/h per month)

$10 - $20K per month (based on 166 m/h per month)

35

Excludes per diem & trip home every 2 - 6 weeks Excludes per diem & trip home every 8 - 12 weeks (* Excludes local country income taxes) Excludes per diem & trip home every 8 - 12 weeks (* Excludes local country income

2.5 – 5% of M.E. on large / complex EPC projects Per diem varies and is in the $100 - $150 / day range). Airline fare $0.5K - $1.5K Per diem varies and is in the $100 - $250/ day range. Airline fare $1K $2K Business Class $4K

Per diem varies and is in the $100 - $250 / day range. Airline fare $1K $3K Business Class $4K

34

Owners Engineers North American Staff / Consultants based at EPC office / field location during construction effort

Africa, Middle and Far East ($75 - $135 / hour)

35

Expense items / Demolition / initial fill Chemicals /

36

Steel Pipe Mill – Construction Cost - (Total Facility based on production capacity) Steel Mill – Construction Cost - (Total Facility based on production capacity) LNG – Construction Cost (Total Facility based on production capacity)

TBD Historically 0.50% - 1.50% of TIC $300 - $450 Ton

37

38

$550 -$700 Ton

$300 - $450 Ton

$12 - $22K per month (based on 166 m/h per month)

Average Cost $375 / Ton Average Cost $625 / Ton Average Cost $250 - $325 / Ton of annual production capacity Average Cost $2.00 per Gallon

Ethanol Plant – Construction Cost - (Total Facility based on production capacity)

$1.60 - $1.75 per gallon for a 25 million gallon a year plant. $1.50 - $1.65 per gallon for a 50 million gallon a year plant. $1.40 - $1.55 per gallon for a 100 million gallon a year plant.

40

Bio-Diesel Facility – Construction Cost - (Total Facility based on production capacity) – Flax, palm oil, sunflower and soybean. Cement Plant – Construction Cost - (Total Facility based on production capacity) Refinery (Oil) – Construction Cost - (Total Facility based on production capacity) –

$0.90 - $1.40 per gallon

$1.15 per gallon

$225 -$335 Ton

Average Cost $280 / Ton

$6,750 - $11,250 per BBL

Average Cost $9,000 per BBL

42

Per diem varies and is in the $100 - $250 / day range. Airline fare $1.5K $4K Business Class $7K

Use quoted values were possible:

39

41

taxes) Excludes per diem & trip home every 8 - 12 weeks (* Excludes local country income taxes)

36

43

50,000 BBL – 250,000 BBL / day Alumina Facility

44

Boric Acid Facility

45

Ethyl Acetate Facility

46

Power Plant (Coal) – Construction Cost - (Total Facility based on production capacity) Combined Cycle Power Plant (Gas) – Construction Cost - (Total Facility based on production capacity) Simple Cycle Power Plant (Gas)– Construction Cost (Total Facility based on production capacity) Wind Power Construction Cost - (Total Facility based on production capacity)

47

48

49

Facility cost per pound / kg of production Facility cost per pound / kg of production Facility cost per pound / kg of production $1,475 - $1,875 per MW

$550 - $700 per MW

$0.27 - $0.30 per kg of production $0.06 - $0.09 per kg of production $0.13 - $0.15 per kg of production

Excludes OSBL work typically an additional 10% - 30% of facility cost Excludes OSBL work typically an additional 10% - 30% of facility cost Excludes OSBL work typically an additional 10% - 30% of facility cost

$500 - $670 per MW

Average Cost $585 / MW

$850 - $1,650 of installed MW of capacity

Average Cost $1,250 / MW

Average Cost $1,333 / MW

Based on facility capable of generating 200 – 450 MW

Average

Excludes hangers and

50

Geothermal Power Facility

$890 - $1,775 of installed MW of capacity

51

Hydro power plant

52

Desalination Facility

53

Construction temporary services (water, electricity etc) Cost of CS pipe and

$1,400 - $1,975 of installed MW of capacity 25 million gallon per day of brackish water $40 – $50 million investment Ditto sea water 100 million gallons per day $110 – $125 million investment 0.65% - 1.40% of construction cost. $2.65 - $3.65

54

$0.60 $0.65 per pound $0.14 $0.20 per pound $0.28 $0.34 per pound Average Cost $1,675 / MW Average Cost $675 / MW

37

Optimum wind speed need to be between 15 – 25 MPH for cost effective solutions: Typically these wind farm facilities are in the 10 – 75 MW range (The wind turbine unit typically represent 50% - 75% of the TIC). Current turbines are sized 1.5 – 3.0 MW

55

56

fittings delivered to site , excludes field fabrication and erection Cost of CS A-36 0.25 inch plate ex works

60

Bonds / taxes (B&O) Import duties / VAT payments Refurbished major Equipment / E&I programming / Tie-in’s / Facility Shut-downs I/O point new I/O point modifying existing system Operating consumables

61

Annual Maintenance Costs

57

58 59

per pound $5.83 - $8.03 per kg $0.33 – $0.37 per pound $0.73 - $0.81 per kg TBD

supports

Determine if sales exemption certificate is in place.

TBD

$1,500 – $2,500 $800 - $950 0.5 – 1.75% of annual sales

Public Building

0.25% – 1.0%

Manufacturing Facility (Auto Production / Paint / Tire type facility)

3.5% - 7.5%

Chemical / Fluids Plant** (Refinery / Amine Clause SRU)

1.5% – 5.5%

Chemical / Solids Plant (Cement / Toner)

1.5% - 5.5%

Pharmaceutical Facility*** (Class 10,000 – 100,000)

2.5% - 8.5%

62

Utility costs for Refinery / Chemical Plant

63

Freight (USA in country)

64

Ocean Freight

65

Operator training

Power $0.070 $0.080 / Kw hour Water $0.060 $0.070 / M3 of cooling 3% - 5% of M.E. / Bulks cost 5% - 10% of M.E. / Bulks 0.5%– 2.5% of M.E.

66

Owner Engineering (PM/ Engineering / CM) Construction Equipment

67

cost $3.15 per pound and $6.93

Asset first time cost (TIC of installed facility EPC cost) or facilities insurance / book value / replacement cost. **Could be up to 12.5% for high pressures / hazardous chemicals / materials that corrode pipe / seals / bushings / impellers: ***Could be up to 15% for cleaning protocols / chemicals / HEPA Filters / miscellaneous materials, dismantling and flushing tri-clover type piping systems etc:

Add in-country freight (both countries) On complex process facilities use 1.5% – 3.75% of M.E. cost

3% - 6% of TIC 10% - 25% of Labor cost (direct hire plus S.C labor)

38

68 69

Rail spurs, roads, footpaths and fences Pre-Commissioning

70

Project Insurance (Umbrella)

71

Third party inspection services

5% - 10% of M.E. cost. 0.80% - 1.80% of M.E. plus bulk materials. 0.65% - 1.30% of Construction costs

Exclude detailed design, procurement, CM and fees from the calculation.

0.75% – 2.25% of M.E. plus bulk materials

* Current US tax allow for the first $82.5K of earnings to be non taxable (6/26/2006), however working overseas for periods of more than six months will require US expatriates to pay both US and local country income taxes were applicable. Capital Cost Estimating Summaries. (Cover Sheet) The capital cost estimate summary on all types of estimates should contain adequate information to permit management to evaluate and consider the compiled / established factors and ratio’s compared to “normal” company estimating standards. This summary / information should include some of the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

Type of Estimate O.O.M. / Funding / Lump Sum Name and location of plant / facility Basis of estimate / scope work statement Percentage of Engineering Complete Estimating plan / key people involved with capital cost estimate Percentage breakdown between direct and indirect costs Major equipment list (percentage of firm quotes) Significant quantities, total cubic yards of concrete, tons of structural steel, lengths of piping, number of valves, number of motors, number of instrumentation devices, number and footprint area’s of buildings, etc. Estimated engineering and field construction hours Labor rates, union or non union labor Take-off allowances / Resolution factors and allowances / Design growth In-house engineering / Support cost details Estimating assumptions / listing of drawings and specifications estimate is based upon Contracting / construction approach Basis of Inflation / Escalation value Expense items Start-up cost details Vendor Assistance costs Plant tie-ins and shutdown work / Royalties / T & C review / M.E. multiplier Engineering hours per piece of M.E / Shift work or overtime requirements Premiums for M.E. early delivery / Milestone schedule / Accuracy of estimate Project risks, i.e., demolition, hazardous waste, LBP, long lead equipment items / L D’s Percentage of estimate based on formal quotations, percentage based on internal company estimating systems / Contingency (Technical and General) values / Currency impact etc. Inflation values utilized.

39

This detailed listing will greatly assist management in their review process. It is important to have this information on file, many times capital cost estimates are delayed, cancelled or deemed to expensive, or the ROI / EBITDA is not considered high enough, many times these estimates are put aside for a period of time only to needed again, two or three years down the road, using the older / previous capital cost estimate and calibrating it to today’s cost can save a lot of time and resources, when the CAPEX estimate is needed again. The basis of the “bid”, i.e., assumptions, clarifications, exclusions from bid or alternates to proposal, need to be documented and made part of the bid submission, the physical effort of a detailed capital cost estimate involves many individuals, to be successful it needs to be a “total team effort”. There must be a substantial / in depth analysis, review and checking procedure by senior management and the estimating / proposal team prior to the estimate / bid being submitted to client / or if the capital cost estimate is to be used as a project control tool. This method is suitable for EPC contractors (some owner / operating companies will produce similar type capital cost estimate) bidding process related work on a lump sum / turnkey / tender submission / GMP basis, it is vital that these activities are completed to minimize any “risk” items that have been overlooked or estimated incorrectly. Capital cost estimates can be made at all stages of a projects life cycle, these include the capital cost estimates previously described earlier in this section. Owners / Clients and EPC firms have to appreciate that there is no single “best” method of completing a CAPEX project, there are possibly dozens of methods or ways to execute a project, all methods have plus’s and minus’s associated with them, hopefully some of the information contained in the following sections will help the reader in understanding these complex issues. Industrial Construction (refineries, chemical plants, pharmaceutical facilities, power facilities etc) need to be looked at differently, they all have distinctive scopes of work that are unique to their market sector. Assembling and calibrating the capital cost estimate for these types of facilities are complicated tasks; the initial sections of this publication should be a good “starting point” data source for individuals tasked with this responsibility. As has been mentioned previously, there is no common denominator when it comes to a standardized estimating methodology - different countries / different companies / different industry sector all use different terms / nomenclature for in compiling and discussing CAPEX estimates, there is no standard name or classification / approach. Again a lot of the issues related to the basics of CAPEX estimating, CAPEX estimating fundamentals are discussed in some detail in Section 1, 2 and 3 of this publication.

40

SECTION A - 4 BASIC BENCHMARKING DATA AND ELEMENTS OF A PROCESS PLANT / CHEMICAL FACILITY – MANUFACTURING PLANT What is benchmarking and how does it fit into the execution of CAPEX projects: Benchmarking is basically about making comparisons with other business’s and our main competitors – how they execute CAPEX projects, and then learning from the plus’s and minus’s that those comparisons come up with and making changes in the way we will execute CAPEX projects in the future to gain a competitive advantage. Benchmarking is the constant measurement of installation methods, man-hour performance standard / routine(s), product(s), or service compared to those that are considered” best in class”: Benchmarking allows a company to recognize specifically where their performance standards / operations are relative to there competition, it is a tool that can be used to detect major production and performance disparities both on the plus side and on the minus side. By recognizing various production failings shortcomings, management can focus on remedies to improve that specific failing metric. Benchmarking is the continuous process of measuring our performance and practices against our toughest competitors or those companies recognized as industry leaders - best in class. Basically it is activity of refining ourselves by learning from the successes of others and considering our past failures. This section is focused on basic benchmarking data (man-hour units – man-hour units to install various construction components), graphs and various fundamentals of a process plant / chemical facility / manufacturing plants, the focus of this section is to drill down deeper than the ratio and factor estimating methods described in Section A – 3, the reader will find numerous man-hour benchmarks for site works, civil, masonry, concrete work, structural steel, equipment setting (millwright work), piping, electrical work and an number of other related metrics that may be useful in compiling or auditing front end conceptual estimates. The Engineering, Procurement and Construction (EPC) effort involved in the expansion or creation of a new or revamped CAPEX process (chemical or manufacturing facility) journeys from initial idea to execution and final handover, the effort involves most of the following work stages / steps. •

Project Initiation (this could mean obtaining a project #, or obtaining funding for this effort).

• • • •

Front End assessments, PCA’s, site visit and evaluations. Engineering studies for economics - ROI / EBITDA returns Basic and detailed process design – followed by detail design. Development of Front End engineering / concept reports including deliverables for final design. Engineering / detailed design / effort (E). Procurement (Buy-out of major equipment and bulks) - Expediting - QA-QC effort (P). Construction / Field erection and installation(C). Construction Management and Commissioning / Start up of plant or facility (CM). Validation (on pharmaceutical facilities) (V). Plant Acceptance / Handover. Operator training.

• • • • • • •

1

•

•

Manufacturing / on going operation activities. Maintenance of the operating unit / facility.

Typical Major Equipment that will be utilized on a Process / Manufacturing Facility (This is a Partial List) are as follows: Air Dryers, Air Handlers, Agitators, Bag Houses, Bins, Blenders, Blowers, Boilers, Centrifuges, Classifiers, Coils, Compressors, Condensers, Conveyors, Cooling Towers, Crushers, Crystallizers, Drums, Dryers, Emulsifiers, Evaporators, Extruders, Fans, Fluidizers, Filters, Furnaces, Hammer- Mills, Heaters, Hoppers, Incinerators, Jacketed Vessels, Presses, Pumps, Reactors, Screens, Scrubbers, Separators, Spheres, Tanks, Towers and Vessels. Items to consider when estimating these major equipment items include: 1. Obtain (2- 3) vendor prices if possible or determine weight and apply cost per pound or kg for the first initial Front End / conceptual estimating efforts, use values obtained in section C-1 for specific man-hours and pricing. 2. For installation man-hours review following data tables (5% - 10% of the ex works price is a starting point divided by $48 to determine man-hours for installation cost), this is a very rough method of estimating, but better than nothing if you have no other details. 3. Material used in the fabrication process – type of steel / alloy. 4. Pressure / operating temperature. 5. Welding – manual or automatic at fabrication shop or is field welding necessary. 6. Shell plate’s thickness can be 0.50” – 2” and more in some situations, the thickness typically increases in increments of 1/16”. 7. Codes can be ASME or API or other. 8. Heads can be flanged, dished, hemispherical or elliptical. 9. Nozzles, internal elements, internal supports, baffles, vessel internals, trays, manholes, external lifting points, insulation clips, legs and skirts. 10. Steam jackets requirements. 11. Stress relieving requirements. 12. Gaskets, seals and bolts. 13. Inspection NDT – X-raying / stamp requirements. 14. Size of major equipment (road, rail or air transportation) to jobsite. 15. Ladders and platforms make sure that these elements are covered in the estimate. 16. Consider weather protection if item is stored in outside location i.e. lay down area. 17. Does item need to be broken down for delivery to site. 18. Consider cranes, scaffolding, lay down areas. 19. Estimate the cost of holding down bolts and grouting work. 20. Transportation costs / freight / ocean freight / insurance costs. 21. Delivery time, how long will it take to design, go out for bid, purchase, fabricate and ship to site, is there any cost fluctuation clauses that could impact the purchase price, that needs to be added to the purchase price. 22. Do we need to pay any premiums for early delivery? 23. Do we need to estimate any refractory work? 24. Estimate the cost of removing any packing materials. 25. What about vendor assistance. 2

26. Consider other issues, such as currency fluctuations and inflation. One of the more expensive elements to consider when installing a piece of Major Equipment is the cost associated with installing the internals and the lining up and aligning these internal elements. The following table(s) reflect the average cost breakdown of a Chemical Facility / Process Plant – broken out by main categories, together with a listing of lead times in weeks that a number of these major equipment items take to procure, engineer and fabricate, this data should assist the reader in determining the mid-points for major equipment and subsequent installation, this can also assist in forecasting future escalation and any monthly fluctuation clauses that are contained in a vendors quotation, the installation of major equipment is typically made up of millwright work and erection equipment i.e. cranes and other lifting devices: Category Major Equipment (includes freight) Materials (Bulks / Engineered) Field Labor – including sub-contractors Field In directs / General Conditions Detailed Design / H O support / Procurement / PM (includes Owner Engineering) Includes all necessary design deliverables Construction Management Total

Percentage Value 22.9 21.5 24.3 11.7 13.9

Percentage Range 18 - 27 17 -26 19 - 29 9 - 13 10 - 18

5.7 100.0

4-8 100.0

Note: Typical delivery times associated with the (INP) - Inquire / Negotiate & Purchase of Major Equipment items, with the recent up tick in the refinery / process related construction and the recent damage to the Gulf coast region these delivery times could move out by 4 – 12 weeks. Major Equipment Category

Inquire / Negotiate & Purchase (INP) in weeks and delivery to site: 20 - 36 20 - 40 20 - 40 24 - 40 10 - 16 16 - 36 16 - 26 20 - 35 26 - 44 16 - 32 8 - 16 8 - 20 25 - 45 25 - 36 12 - 24 12 - 36 12 - 36 20 - 40

Boilers 250 HP and above Columns / Towers with trays Compressors Reciprocating Ditto Centrifugal Control valves DCS – i.e. TDC 3000 Electric Motors (250 – 500 HP) Furnace (cabin type) Hammer mill Heat Exchangers Instrumentation devices Pumps 200 GPM and above Reactors – high pressure Turbines Tanks (Floating Head) Transformers / Sub stations Spheres Vessels (Heavy wall)

3

Note: The percentages shown above are appropriate to Inside Battery Limits (ISBL work) – Outside Battery Limits (OSBL scope / work) is not included in above values. Contingency is included in above values. This front-end section of A - 4 will focus on the major equipment element which as can be seen is in the order of 23% of the cost typical chemical facility, it can range anywhere from 18% - 27%. Cost Estimators / Engineers to be successful should be aware of the manufacturing “global” competition- big picture, they should have an appreciation of the changes that are happening in the Process / Manufacturing industries and the impact these changes are having on costs and schedules, these issues include the following: • • • •

Such as material and labor shortages and deliveries of major equipment taking 20% -40% longer due to the demand of these items in China and other S.E. Asian markets: Price spikes related to material / commodities demand and shortages (copper, steel, lumber, plywood, glass products, and oil related products). CAPEX projects moving to S.E. Asia: (this trend is continuing). It takes almost 50% - 70% more time to build a manufacturing facility or plant in S.E. Asia, than it does in the USA, why, productivity, bureaucratic red tape a lack of basic infrastructure, plus a bunch of other issues that slows the EPC effort down.

Cost Estimators should become cognizant with the issue and factors and what impact they will have on projects they are involved with. As has been pointed out before, to be successful today individuals working for chemical / process related organizations, both owner and EPC firms, should be able to coalesce a number engineering and basic business disciplines, this includes the following: • • • • • • • • •

To compile a accurate capital cost estimate in a timely manner that conforms to the pre-established company estimating standards. Have appreciation of EPC construction related costs and how the global economy can impact these costs. Have an awareness of different types of capital cost estimates, and have an awareness of the differing project delivery methods, i.e. lump sump, GMP, reimbursable contracts etc. Have a basic knowledge of chemistry / process manufacturing steps, i.e. (continuous or batch process) Have an understanding of civil / structural / construction methods / engineering considerations and needs. Have a basic understanding of piping systems, materials of construction, ISBL and OSBL issues. Have a basic knowledge electrical engineering issues i.e. area classification. The same situation with mechanical engineering and instrumentation / controls systems. And last but not least have a general business acumen / an understanding of the organizations business cycle / process- business economics, together with an understanding of the accuracy of the capital cost estimate deliverables (it’s a tall order - however these individuals are out there, the challenge is to find them and hire them and educate them to the organizations methods).

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The term “Process / Chemical Industry” or “Manufacturing / Industrial / Chemical Production” sector - as it is many times described, embraces the following major business sectors / industry nomenclature, (they mean the same thing to the lay person) that many times overlap each other and basically refer to the same industry sectors, this gets more complicated when discussing this in the context of building new facilities in this industry, the names bandied around when discussing this is that it is a Industrial project, or it is an Oil & Gas project, or it is a Petro-Chemical project, it’s hard to have a collective name for all these project types, the best way forward is to refer to them all as Process – Manufacturing type projects. Some of the most prominent sectors include (1) Petroleum / Gas Production / Refineries. (2) Pharmaceutical / Fine Chemicals / Consumer Products (3) Power Generation (Oil, Gas and Nuclear facilities). (4) Food Processing (Dairies & Bakeries) Beverage (Soft drinks and beer production). (5) Manufacturing (i.e. paint, toner, plastics production, glass, paper manufacturing, detergents, cement, man-made fibers and various automotive components). (6) R&D Facilities – Pilot Plants – Animal Testing / Research Facilities etc. (7) Steel Mills & Rolling Mills and (8) Automobile Production – this one could fall into # 5 above. There are most probably others that have not been mentioned. These “Process / Chemical Industry” facilities – production plants utilize equipment (many times referred to as Major Equipment (M.E.) that carries out the following actions - heating, cooling, grinding, drying, mixing, blending, hammering, pressing, compacting, conveying, transporting / moving and pumping - conveying powders, fluids and gases, typically a fair amount of rotating equipment i.e. pumps and agitators and mixers are required in these facilities (perhaps 20 – 30% of the major equipment could be considered rotating equipment).The majority of process equipment / major equipment can be classified into three main categories (1) Rotating equipment / electro–mechanical such as compressors, pumps, agitators and turbines and etc, major equipment items that are driven primarily by an electric motor(s) or steam turbines(s) etc, this type of major equipment - rotating equipment - typically are the most intricate and expensive to procure, these major equipment type items are typically long lead items (they could take anywhere from 2 – 12 months, or even longer to engineer and fabricate), (2) Heat Transfer – Pressure Vessels (equipment items with a fair amount of internal elements / components that need to be aligned and hooked-up to fine tolerances) category of major equipment – typically consisting of heat exchangers, reactors, pressure vessels, columns / towers (with various trays), this type of major equipment is used to raise or lower temperatures (under pressure many times) during the chemical reaction phase of the manufacturing step and (3) Static fixed / inert equipment; i.e., (bins, storage tanks, hoppers, silo’s this could also include dispensing and possibly packaging equipment etc.), note some of these action in (3) are done by gravity – gravity feed - on the whole, many of the operations / functions carried out are supporting / supplementing, i.e., storing - rather than performing the actual chemical / process reaction / manufacturing step, other electro – mechanical items that fall within the above (3) categories include utility equipment, including all rotating equipment, adjustable speed drives, pneumatics, mechanical / piping systems, programmable logic controllers (PLC’s), instrumentation devices, servo and non-servo robotic systems, electrical cable, conduits and fittings, motor control centers (MCC), transformers, regular and explosion proof conduit, panel boards enclosures and fittings, push buttons and control stations, various power & lighting systems, signaling devices / equipments, various bushings, brake motors, variable speed drives and a host of other systems to long to describe in detail all of these systems will need to be estimated and accounted for in the estimating effort. In

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order to play a significant part in the capital cost estimating effort specific to of process / major equipment the estimator / cost engineer should have an understanding to the extent and details of the required detail / engineering design and the equipment selection criteria, they should have more than a basic awareness of some of the above three categories and following stated issues. Process plants / chemical plants / manufacturing facilities in the last decade have become much more sophisticated in how they are operated, with the use of highly complex computerized control systems (PLC’s), together with dedicated control systems such as TDC 3000 and Delta V to name but two), these systems are growing in there use and application, this trend will continue in the next couple of decades, historical cost data collected in the 1970’s and 1980’s is no longer valid due to this specific situation, i.e. the instrumentation account values have grown by as much as 40% - 80% due to the use of these control systems. The above three categories of major equipment are perhaps more often than not fabricated and constructed out of Carbon Steel (research has indicated that perhaps 40 – 70% of Process Equipment / Major Equipment is specified / called out to be Carbon Steel) the remaining Process Equipment / Major Equipment is made out of various costly types of “exotic” metals and special alloys, such as Stainless Steel (304, 316, 304 L or 316 L), Monel, Aluminum, Inconnel, or Hastaloy to name but a few, as has previously mentioned these major equipment items usually take weeks or months to procure, engineer / design, fabricate and deliver / transport to job site for subsequent erection and installation into the new facility. Cost items to consider when estimating major equipment installation include: Pick up at lay down area / temporary weather protection - tarpaulins, clean up of any packing materials, use of come along’s / chains & pullies, hardcore (hard standings) / temporary staging areas, aligning and leveling items, i.e. shims, items that may need to be included or excluded are: labor and material for foundations (concrete and excavation) and structural steel / brackets, core drilling and grouting of equipment / utility piping systems, and subsequent final hook up, electrical cable, conduit and hookups, equipment supports / brackets, H D bolts (anchors), sleeves and jumpers / final balancing and adjusting finished systems, equipment and piping passivation and cleaning (pickling), equipment identification / stenciling & subsequent tagging, commissioning / validation activities, testing and NDT work, costs associated with the use of construction rental or owned equipment, vendor start up assistance, barricades and OSHA safety measures, factory witness testing and any acceptance testing and operational tests, initial chemical charging, cooling liquids, “grogg” type chemicals and any scaffolding and hoisting needs, remember there could be a need for a full time hoist operator on union projects. Major Equipment (M.E.) / Chemical / Manufacturing facility major equipment is fundamentally all the components that are utilized in the above mentioned industries / business sectors, the (M.E.) major equipment includes items such as the following together with the “judgment” percentage to set the particular piece of major equipment described below, a description of (A), (B) and (C) is described below. • • • • • • •

Activators (B) / Agitators (A) / Air Dryers (B) / Air Handlers (B) Bag house (B) / Blenders (B) / Bins (B) / Boilers (C) Centrifuges (B) / Chlorine Evaporators (B) / Columns (B) Compressors (B) / Condensers (B) / Conveyors (C) Crusher (B) Crystallizers (B) Dearators (B) / Drums (A) / Dryers (B) Emulsifiers (B) / Electrical Switch Gear (B) / Evaporators (B) Extruders (B) Filters (B) / Presses (B) / Furnaces (C) 6

• • • • •

Hammer Mills (B) / Heaters (C) / Heat Exchangers (C) Instrument and process control equipment (B) Reactors (C) / Pressure vessels (B) / Pumps & Motors (B) Size reduction and separation equipment (B) / Scrubbers (B) Steam Turbines (C) Tanks (A) / Towers (B) / Valves (motor controlled) (B) / Vessels (B)

(A) = Large / static pieces of M.E. needing relatively minimal setting hours (and minimal internal setting and aligning) 3% -7% of M.E. cost divided by $50 / hour will provide a man hour budget for setting the M.E. (B)= Mid sized pieces of M.E. needing additional setting and requiring internal work and aligning work hours 5% -10% of M.E. cost. (C)= Complex pieces of M.E. requiring a fair amount of assembly and setting / internal aligning hours 7% -14% of M.E. cost will provide a man hour budget for setting the M.E. Example of a calculation to determine the cost and percentage value of installing a Reactor: 20 ton Reactor (with internals 5 ton), total weight 25 ton Purchase price delivered to site = $98,345 Labor and construction equipment to install (lift into it’s final location and set and align internals, does not include piping or E&I, excludes heavy lift crane.) 2005 Cost basis: Labor / Other Foreman Millwright Millwright Millwright Millwright Millwright Equipment Operator Chains / cables Miscellaneous l shims / rags / grease Flatbed trailer Tractor Total

Hours 6 6 6 6 6 6 6 1 day LS

Unit Cost $55 $52 $52 $52 $52 $52 $48 $200 $350

Total 330 312 312 312 312 312 288 200 350

6 6

$25 $35

150 210 $3,088

$98,345 divided by $3,088 = 3.14% note if you add the cost of the crane to this calculation the percentage would increase. All major equipment items need foundations, structural steel, platforms, piping, valves, insulation, painting, electrical services, etc, etc. the commodities / bulk materials required will be described in the following sections. Typical break-downs of the major cost elements cost models of a Chemical / Process Plant are indicated on the next couple of pages, hopefully this data will give the reader an appreciation of how large an element of a capital cost estimate the major equipment really represents. The hours for installing major equipment typically include all the activities related to receiving, storing, lifting, moving to field location, setting, aligning, welding, bolting, leveling, grouting and testing. Items or topics that the estimator / cost engineer needs to consider and be

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aware of when considering the major equipment elements of the capital cost estimate should include. • • • • • • • • • •

Pricing basis, in-house estimate or based on a quote (potential for scope creep / future pricing increase due to situations were nozzles / baffles / bracket locations are not fully known) Long lead time in the fabrication and delivery of complicated pieces of major equipment. Transportation costs and logistics (wide loads, ocean freight or air freight). Vendor assistance in the start up of complex items of equipment. Insurance issues / Special QA / QC requirements. Any performance / witness testing. Cash flow / Special payment terms. Warranty issues. Required documentation O-M manuals etc / Spare parts. Possible currency considerations for items being imported.

To determine the setting hours for these items of major equipment mentioned above divide the setting value by $50 / hour, cranes and other lifting devices are not included in this method. If the total cost of chemical / process plant is 100%, a characteristic breakdown of other major equipment specific items MAJOR EQUIPMENT / PROCESS EQUIPMENT TYPICAL BREAKDOWN RANGE OF FREIGHT, M.E. SETTING AND SPARE PARTS COST Freight Costs North American domestic 3% - 5 % of ex works value of M.E.: Freight Costs European domestic 3% - 5 % of ex works value of M.E.: Overseas freight typically 7% - 10% of Major Equipment ex works value, consider import duties if applicable. Setting M.E. in place, millwright related activities (excludes civil, structural, piping, electrical insulation etc) typically range between 3% and 14% of the Major.Equipment (ex-works value): Spare parts (5% of rotating equipment and 1% - 2% of heat transfer and static equipment) typically cost 1% - 2.5% of the M.E. ex works value. These values are the average of 10 small, medium and large facilities constructed in North America in the last seven years and cover a wide assortment of new / grassroots process chemical / refinery plants. This values / percentages can vary by as much as plus or minus 10% due to the specific situation encountered. Revamps and upgrade projects do not fall into the above ranges. An additional break down of major equipment / process equipment and support systems is indicated below GENERAL BENCHMARKING / COST ESTIMATING DATA This section of this chapter encompasses general data / “rules of thumb” for preparing, benchmarking and auditing all types of capital cost estimates and project execution plans. The assortment of data includes the following: 1. 2.

Summary and overall project capital cost breakdown refer to Table A 3 1 Historical refinery / process related project cost breakdowns ditto

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3. 4. 5. 6. 7. 8. 9. 10.

Historical home office (EPC engineering firm) man-hour breakdown Bulk Material cost breakdown Construction man-hour and craft breakdowns Major Equipment Costs Construction in-directs breakdown and percentage refer to A 3 1 Engineering benchmarking standards Various Conceptual construction installation units Various Conceptual construction material unit costs

This above mentioned data can offer guidance in reviewing / auditing scopes of work, execution plans, home office staffing or field man-power levels, reviewing claims and potential cost over-under runs. Representative cost and man-hour breakdowns can be useful in reviewing current estimates or considering and reflecting on historical norms. The listing indicated is an overall breakdown of project costs, the data is based on historical data for “process” type projects built in North America described earlier and shown on table A.3.1, on a sub-contractor basis, during the period 1995-2001. When only a total installed cost (T.I.C.) value is known, this breakdown can be valuable in providing overall basic data points for a rapid evaluation of engineering, procurement and construction efforts that were / or will be required. The cost breakdown covers the following major categories. • • • • •

Major Equipment Materials (Bulks / Commodities) Labor Costs Detailed Engineering and Procurement Activities (EPC Data) Indirect Cost Elements

The capital project summary indicated in Section A 3 Table (5) has an estimated overall T.I.C. cost of $35.689 million. From Table (5). Outside Engineering / Design firm is 10.23% or $3,109,000. By a further analysis / hypothesis assume that the Outside Engineering all-in cost (billing rate) is $69 / hour, therefore we can calculate the total number of engineering man-hours is as follows. Consideration should be given to the fact that specific cost items such as CAD machines, computers etc, are included in $3,109,000 value or are included in the $69 / hour billing rate. •

Number of EPC H.O. man-hours = $3,109,000 = 45,058 $69 If we knew that the engineering effort was needed to be complete in eight months, we could determine the peak manpower level, or the approximate number of EPC home office staff required to get the work effort completed. •

Number of engineering man-hours = 45,058 = 32.6 EPC H.O. staff (average) 8 Months x 173 m h’s / month

This number would need to peak at possibly 50 – 65 at the mid-point of the detailed design effort. •

The number of detailed design hours per M.E. items = 45,058 = 523 man-hours 86 M.E. items

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From the table A.3. (5), direct field labor costs are $8,142,000 the direct field cost hourly rate is $36 / hr. •

Number of field man-hours = $8,142,000 = 226,166 man hours $36 / hour

If we knew that the construction effort was planned too be completed in fourteen months, we could determine the average manpower level, or the approximate number of construction workers required too complete the work effort. •

Number of field workers m h’ s = 226,166 = 93* field workers 14 months x 173 m h’ s / month

•

The number of field man-hours per M.E. item = 226,166 = 2,630 man-hours 86 M.E. items

* This number could peak at 125 – 140 during the mid point of the construction effort; this also excludes field indirect support, which could be another 20 – 35% more hours. The value of Construction Management is $1,170,000 if we divide this value by $65.50 which is the all-in rate for Construction Management effort we would come up with 17,860 man-hours divided by a 14 month construction effort at 170 man-hours per month would indicate that the average number of Construction management staff would average out to be 7.5 individuals. Following on in the same vain the procurement effort is valued at $173,000 the hourly rate for this activity is $59 per hour, the procurement effort would typically take 5 months to complete, so $59 divided into $173,000 = 2,930 hours divided by 5 moths divided by 166 man-hours per month would equal 3.5 procurement personnel involved with the procurement / buy out effort. Utilizing historical benchmark relationships, we can establish a number of front end reporting tools to allow management to make some key decisions. The reports could include: A scope of work, an appropriation budget (AFE estimate), front end loading / schedules / project milestone schedules (30 – 90 – 180 day look ahead schedule), engineering, procurement and construction work packages, field labor needs, progress measurement / progress tools and cash call / expenditure and commitment reports USA Productivity Factors (versus Gulf Coast): The normal approach of comparing “process / refinery / manufacturing” construction productivity is to compare various locations around the USA to a known basis or benchmark of 1.00 or 100 for Texas Gulf Coast (open shop labor working from say Mobile, AL in the north and south to say Corpus Christi, TX, - because there is so much historical cost data that has been collected over the last 20 – 30 years, the term Gulf Coast productivity is well known and understood term in the construction industry): State Alabama Alaska Arizona (Phoenix / Tucson) Arizona

Open Shop / Non-Union 1.00 1.10 – 1.15 1.00 1.00

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Union 1.10 - 1.15 1.25 – 1.35 1.10 - 1.15 1.10

Arkansas California (LA / Long Beach / SF / SD / SJ) California Colorado (Denver) Colorado Connecticut Delaware Florida (Jacksonville / Miami / Orlando / St P ) Florida Georgia (Atlanta) Georgia Hawaii Idaho Illinois (Chicago) Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland (Baltimore) Maryland Massachusetts (Boston) Massachusetts Michigan (Detroit) Michigan Minnesota (Minneapolis – St Paul) Minnesota Mississippi Missouri (St Louis) Missouri Montana Nebraska Nevada (LV / Reno) Nevada New Hampshire New Jersey (Newark / Northern) New Jersey New Mexico New York City New York North Carolina North Dakota

1.00 1.10

1.15 1.20 – 1.30

1.05 1.00 - 1.10 1.00 1.15 1.10 1.00 – 1.10

1.10 - 1.20 1.10 - 1.15 1.05 - 1.10 1.20 - 1.30 1.20 1.15 - 1.20

1.00 1.00 - 1.10 1.00 1.10 - 1.15 1.05 1.00 - 1.15 1.05 1.05 1.05 1.05 1.05 1.00 1.05 - 1.15 1.05 – 1.10 1.00 – 1.05 1.10 - 1.15 1.00 – 1.10 1.05 - 1.10 1.05 1.05 - 1.10

1.10 1.10 - 1.20 1.10 1.30 1.25 1.20 – 1.30 1.10 - 1.15 1.10 - 1.15 1.10 - 1.15 1.10 - 1.15 1.10 – 1.15 1.10 – 1.15 1.10 - 1.25 1.10 - 1.25 1.10 – 1.15 1.20 – 1.30 1.10 – 1.15 1.20 - 1.30 1.10 - 1.20 1.10 - 1.20

1.05 0.90 - 1.00 1.05 – 1.10 1.00 – 1.05 1.05 - 1.10 1.05 1.05 1.00 – 1.05 1.05 - 1.10 1.15

1.10 - 1.15 1.10 - 1.15 1.10 – 1.20 1.05 – 1.15 1.10 - 1.20 1.10 - 1.15 1.15 1.05 – 1.10 1.10 - 1.20 1.20 - 1.30

1.10 1.05 1.10 - 1.15 1.05 - 1.10 1.05 1.05

1.10 - 1.20 1.15 1.30 – 1.40 1.10 - 1.20 1.15 1.15

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Ohio (Cleveland) Ohio Oklahoma Oregon Pennsylvania (Philadelphia / Pittsburgh) Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas (Dallas / Houston) Texas (Gulf Coast) - Base Case this includes Gulfport, Baton Rouge, New Iberia, Lake Charles, Beaumont, Port Arthur, Baytown, Texas City and Victoria: (Note: in certain cases i.e. large projects with a lot of repeat / similar work activities: productivity could be 0.90 – 1.00 say an average of 0.95) Utah Vermont Virginia (Washington D.C.) Virginia Washington West Virginia Wisconsin Wyoming

1.05 – 1.10 1.05 1.05 1.05 1.10 - 1.15

1.15 – 1.20 1.10 - 1.15 1.15 1.15 1.20 – 1.30

1.05 - 1.10 1.60 – 1.90 1.05 0.90 - 1.00 1.05 1.00 - 1.05 1.05 - 1.10 1.00

1.10 - 1.20 1.50 – 2.00 1.15 1.05 - 1.10 1.15 1.10 - 1.15 1.10 - 1.20 1.10 – 1.15 (typically all work is completed on open shop basis)

1.05 1.05 1.10 - 1.15 1.05 1.05 1.00 - 1.05 1.05 1.05

1.10 - 1.15 1.15 1.20 - 1.30 1.15 1.15 1.00 - 1.15 1.15 1.15

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Engineering, Procurement and Construction (EPC) Benchmarking Data: The subsequent dollar and man-hour values are typical benchmarking guides for future estimating / auditing estimates. This data applies to mid sized “process / chemical related” projects executed in the last 10 years specific to North American applications. Major Construction Activities Field labor union skilled worker Ditto non union For unskilled application multiply by Construction Manager / Clerk of the Works Demolition Rock excavation - loose / rippable, hours per CY / M3 Ditto needing jackhammers, hours per CY / M3 Machine excavation, hours per CY / M3 Hand excavation (Loose non stiff), hours per CY / M3 Ditto stiff / hard material, hours per CY / M3 Concrete foundations (inc. excavation, formwork / Rebar / installation etc.) Hours per CY / M3 1” dia conduit 2” ditto Bricks (800 – 1,000 per day is considered a good production rate) Fabricate & erect C.S. piping (2”) hours Fabricate & erect C.S. piping (6”) hours Fabricate pipe offsite Erect piping (2” and above) Average Fabricate & erect 4” dia production weld (sch 160) 6” ditto Average cost per pound / kg to fabricate and erect piping system based on Average cost $12,500 -

$48 - $80*/ Hour $37 - $64 / Hour 0.75 $58 - $95 / Hour 5% - 35% of the cost of new work 1.0 - 2.5 CY & 1.3 – 3.3 M3 2.0 - 5.0 CY & 2.6 – 6.5 M3 0.2 - 0.4 CY & 0.26 – 0.5 M3 1.5 - 2.0 CY & 2.0 – 2.6 M3 2.25 - 3.25 CY & 2.9 – 4.25 M3 12 - 24 CY & 15.7 – 31 M3 0.12 - 0.14 / MH per LF & 0.39 - 0.45 M 0.14 - 0.16 / MH per LF & 0.45 - 0.52 M 500 - 750 per day 1.25 - 1.85 / L.F & 4.1 - 6.1 M. 2.4 - 3.0 / L.F & 7.87 - 9.84 M. 20 - 40 hours / ton 100 - 200 hours / ton 150 - 200 hours / ton 2.0 - 2.50 hrs: 2.75 - 3.5 hrs: $57.0 per pound and $15.00 kg

$17,500 per ton, average $15,000 per ton Structural steel erection hours

8 - 25 / ton

* In major cities such as New York, Chicago Philadelphia and Los Angeles etc this union hourly rate ranges between $75 and $91: Engineering / Home Office Costs / Data: Function / General Data Project Manager Architect Civil Engineer Home office engineer Estimator Designer Man-hours per item of major equipment Man hours per PFD

Cost / Man-hour Units $65 - $135 / hour $65 – $135 / hour $65 - $115 / hour $65 - $115 / hour $65 - $115 / hour $47 - $75 / hour 600 –1200 (aver 700) 40 - 100

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Man-hours per P. & I.D: Man-hours per plot plan / G. A. Man hours per ISO. CAD machine bill out rate Procurement / Contract / Project Control Procurement / Contracts Engineer Project Control Engineer Man-hours per material inquiry / requisition Man-hours per purchase order Man-hours per contract Inspection of M.E. item

250 -500 100 –200 4/6 $21 - $50 / hour $43 - $86 / hour $43 - $91 / hour 4 - 12 30 - 50 60 –100 4 – 8 / hours

For additional data specific to installation man-hour units refer to later chapters. ESTIMATE ASSESSMENT SHEET / RATIO ANALYSIS The following capital cost estimate review sheet sets the ranges minimum and maximum for various activities, this data can be used as a data source to calibrate / compare specific key elements of a process related project, this data applies to new / green field construction applications. Number 1 2 3 4 5 6 7 8 9

Ratios & Percentages Site Works as a percentage of M.E. (I.S.B.L) Buildings / Structures as a percentage of M.E. (I.S.B.L) Piping material as percent M.E. (I.S.B.L) Labor as percent of T.I.C. Piping labor as percent of pipe material Indirect cost as percent D.L. Piping labor as percent D.L. Typical M.E. Multiplier to T.I.C.

15 16

Instrument material as percent M.E. (I.S.B.L.) Electrical work as a percentage of M.E. (I.S.B.L) Electrical labor as a percentage of M.E. (I.S.B.L) Insulation work as a percentage of M.E. (I.S.B.L) Field Establishment as a percentage of field in-directs Small tools / consumables as percent of D.L. Scaffolding as percent of D.L. Spare Parts

17

Spare parts as percent of D.L.

10 11 12 13 14

14

Normal Range 2 – 5% 5 – 12% 20-50% 20-30% 40-125% 70-125% 10-55% 3.0 – 5.50 (Typical average 4.00) Refer to Benchmark Data. 15-20% 7 – 12% 10 – 20% 3 – 5% 4 – 9% 0.15 – 2.25% 0.5 – 2% 5% to 7.5% of major equipment on complex process facilities 0.1 – 1.5%

18

Freight

3% to 5% of major equipment cost.

19

Operator Training

0.5% to 2.5% of major equipment

20

Operator Training

21

Royalties as a percentage of M.E. (I.S.B.L) Vendor assistance as percent of D.L. Home office engineering as percent T.I.C. Field supervision as percent D.L. Construction equipment as percent D.L. Construction fee as percent D.L. Construction fee as percent T.I.C. CM cost as percentage of T.I.C. Off sites, needs to be considered as a separate issue.

2.5% to 5% of major equipment on complex process facilities 0.25 – 3.5%

22 23 24 25 26 27 28 29

30 31 32 33 34

Overtime / shift work as a percentage of D.L Construction Management Fee Fabricate pipe offsite Erect piping (2” and above) Average cost per ton to fabricate and erect piping system

0.1 –0 25% 8-17% 5-15% 12-20% 3 - 9% 1.25 - 4.0% 5 - 7.5% If limited / or no scope or data is available use 15-70% of the (I.S.B.L.) value. If multiplier is smaller / or greater than 3.0 – 5.50 a more in depth review should take place: 0 – 10% 2 – 6% on pass through value: 20 – 40 hours / ton 100 – 200 hours / ton Average cost $12,500 - $17,500 per ton, average $15,000 per ton

(I.S.B.L.) inside battery limits (M.E.) major equipment (T.I.C.) total installed cost (D.L.) direct labor The following data / tables are a variety of man hour production units for various construction trades that can assist an estimator / cost engineer in compiling both conceptual and detailed cost estimates, for more detailed estimating units refer to Section B-4.

15

FRONT END / SITE ISSUES: Checklist of Front End / Division 1 items that need to evaluated and included in Cost estimate: Check-list of Front End Estimating / Site Management Issues * (budgets that need to be established) Front End Miscellaneous Costing Studies. Licensor initial PFD / concept report. Completion of PCA report / outside consultant. Completion of Front End Engineering Report. Compile AFE funding request (estimate); obtain full or partial approval to proceed with project. Mobilize to EPC / detail design office. Mobilize to site. Obtain permits (local and state). Asbestos abatement / removal. Lead paint removal. Removal of contaminated / hazardous soil material. Subsequent disposal of hazardous soil with necessary documentation. Shutdowns decommission / mothball obsolete facilities. (Remove any working M.E. to other company facilities). Removal of underground utilities / foundations / obstructions. Tank / piping sludge disposal. Tank / piping cleaning activities. Shutdown and drain all process / utility piping systems. Remove insulation, prepare for hot-taps and complete temporary tie-ins. Develop construction equipment requirements and associated operating and maintenance costs. Develop Division 1 / Preliminaries budget. (Note: some of the items are listed below). Install temporary roads and subsequent maintenance. Remove any standing water / de-water any foundations and any snow removal, together with protection of completed work. Provide any temporary utilities (water, gas and electricity). Establish concrete batching facility if required. Provide and maintain site offices, trailer, and warehousing facilities. Provide brass ally / construction parking lots / lay down storage areas. Provide construction management staff and trailer facilities. Provide medical staff and trailer facilities. Provide safety staff and trailer facilities. Provide warehousing staff and trailer facilities. 16

Provide security and trailer facilities. Provide testing staff and trailer facilities. (Soils, concrete, welding, and NDT). Provide adequate builders all risk / sub guard / project wrap-up insurance. Provide site office furniture and site computer network. Provide site office supplies and consumables. Provide commissioning / start-up materials / initial fill. Provide necessary spares parts. Provide I/C programming. Provide vendor assistance services. Obtain necessary O/M manuals and warrantees. Obtain plant assistance for commissioning and start-up sequencing. * Excludes Engineering / Detailed design and Procurement DEMOLITION / REVAMP / UPGRADE WORK Demolition / Revamp / Upgrade Factors and Main Points to consider: 1. Quality of work, low-end specifications, high or medium specifications. 2. Productivity, low, medium or high output. 3. Labor and construction equipment limitations due to small / confined work areas, considerable amount of manual / handwork could be required. 4. Dust / debris and noise protection / temporary screens. 5. Material handling logistics / storage off-loading limitations. 6. Temporary bracing and support of future and present work areas. 7. Protection of existing buildings / facilities and services during demolition activities. 8. Overtime, shift work and possible weekend work schedule. 9. Cutting and making good to current construction features / materials and equipment. 10. Removal of hazardous materials, contaminated ground, PCB’s,: lead paint and asbestos materials, toxic materials 11. Weather protection, rain, snow, wind etc. 12. Phasing issues, single, various or multiple. 13. Small quantities of material, bricks, pipe and steel are typically more expensive than standard shipments. 14. Work inside ongoing operations such as offices, production areas, stores, factories and process facilities, requiring special work permits / approvals. Demolition / Revamp / Upgrade work is difficult and an intricate item to estimate the cost of, time and again the best estimates / efforts values are attained by having either a cost estimator or qualified field personnel review the demolition / revamp / upgrade scope of work at the site and have them produce a take off listing of items / quantities to be demolished / revamped / upgraded, utilize site visits, sketches, mark up drawings, photographs and video’s were possible. Credit values / income from scrap / salvage of demolished equipment / materials may appreciably lessen the demolition costs (on some

17

occasions it may be cost effective to demolish a facility). This is the case if sizeable amounts of alloy metals (stainless steel 304 and 316, brass, copper), carbon steel, cast iron, sheet metal, aluminum, copper roofing / cable, structural steel, electrical equipment and various piping materials are part of the scope of work to be demolished. The hazardous material aspects / environmental facets of demolition / revamp work should be considered, lead paint, toxic chemicals, PCB’s, asbestos, contaminated soil and on site or off site removal dumping / disposal costs for disposal of demolished / scrap material must also be considered and estimated, credit values also should be evaluated. Demolition / Revamp / Upgrade of Site Work / Concrete / Buildings: •

Be aware if demolition is in a restricted area, near in use highways (what about traffic control measures), pedestrian traffic or close to a processing / manufacturing activity operating machinery / equipment, will blowers and venting equipment be required, what about safety measures (Scott air packs special safety measures). Establish if it going to be a manual operation (sledge hammers and pick axes) or can a headache ball / arrow breaker or can be used, what other means of demolition will be utilized, jackhammers, saw cutting, explosives D8 ripper. Compile detailed scope of work / listing of facilities, roads, paving, underground rock, utilities, underground services etc. that is to be demolished / or to be upgraded. Establish and measure the quantity in items, cubic yards or square yards of concrete for slabs on grade, elevated floor areas, pile caps, spread footings, grade beams and isolated foundations to be demolished or upgraded.

•

Establish the quantities of demolition / revamp work, i.e., square feet, cubic yards, tons, lineal feet etc. and the disposal methods, truck, railcar or barge, etc., consider disposal methods / tipping fees / disposal distance, hazardous materials, specialized sub contractors and construction equipment and any federal or state required documentation. Determine if the concrete is reinforced or non-reinforced (plain), is it on grade or elevated, what method will be used to cut or burn through this rebar.

•

Resolve if temporary noise / dust barriers, visqueen screens or enclosures, air locks are considered necessary to be erected during demo / upgrade. Make a note of if needle and pinning or shoring is needed to support demolition / revamp work. Scope out and make a checklist and or complete take off description of all the facility / building items of demolition / removal / upgrade, i.e., west wing, top floor, walls, slab on grade, floors, roofing systems, doors, windows, fixtures, roofing (lead or copper) etc. Scope out and establish if any demolished materials can be refurbished / reused; i.e., stone, bricks, copper flashing, flooring systems / tiles etc. Measure quantities of wall systems, exterior closure and roofing systems.

Demolition / Revamp / Upgrade of Structural Steel / Ductwork / Miscellaneous Metals: •

Ascertain if any of the steel is fireproofed / sprayed on, does this need to be removed, is any asbestos material contained within the fireproofing material, what is required to encapsulate and remove this material. Resolve if any

18

demolished materials; i.e., structural steel, handrails, platform features etc. can be salvaged and recycled. Determine pounds of ductwork to be removed or revamped, can any main headers be reused, what about the insulation material. •

Determine the quantity of structural steel in pounds / tons, metal decking (SF), floor joists, platforms and grating in square feet and ladders / handrails in linear feet (LF). Find out disposal methods, salvage costs from third party vendors / haulers. Can any existing material be upgraded?

Demolition / Revamp of Major Equipment / Mechanical Equipment / Piping Systems / Electrical / Instrumentation / Fire Protection / Painting / Insulation: •

Establish quantity, dimensions, lifting weight, number of pieces, and location within the plant of major equipment, i.e., agitators, blowers, heaters, compressors, drums, vessels, columns / towers, heat exchangers, etc. Determine if any special cranes / lifting equipment is required. Document if existing equipment is to be reused, does refurbishment of major equipment need to be estimated / established. Confirm place of disposal of major equipment. Determine if any major equipment will be refurbished and or reused or sold.

•

Resolve if any special passivation / cleaning needs of major equipment / mechanical equipment, in particular towers, trays, pressure vessels, tanks or silos, estimate for any extraordinary dumping necessities of hazardous materials. Estimate and allow for testing of asbestos in fireproofing and insulation materials, estimate for remedial action if required. Resolve if piping systems are to be demolished, or left in place, or reused. When demolition is needed, measure length (LF) by diameter / spec / wall thickness of pipe to be removed. Can the demolished pipe / fittings / valves be re-used or sold as salvage, do piping systems need to be passivated prior to removal. Estimate and allow for testing of asbestos / lead paint on the pipe and in the insulation if encountered. Describe removal and disposal methods. Scope out and perform take-off and establish number of items or length / dimensions, number of pieces, weight and location in plant of sub stations, switchgear, transformers panels, motor control centers, motors etc that are to removed and confirm if cables, conduit, and cable trays are to be demolished or left in place (determine if local building code officials allow this situation) or are to be refurbished and or reused, establish which equipment / systems that can be reused. Establish if sub stations / transformers, etc., contain chemicals such as glycol / PCB’s, acids, cooling mediums, hazardous or toxic materials. Quantify and estimate the cost of removal, refurbishment, reuse or sale / salvage or electrical equipment and or materials. Quantify fire protection / sprinkler demolition / upgrade requirements, count number of heads (how many will be remove how many will stay), can any of the systems be reused, what about latest building codes, does the existing systems need to be refurbished, what about latest building codes, the same situation needs to be completed for the painting and insulation systems, disposal and associated costs need to be established. Resolve if control wiring, mounting brackets, is to be reused, refurbished, demolished or left in place, can any existing material be reused. Buildings: Estimate the building on a square foot basis and then multiply by 0.25 for an approximate estimate value. 19

$5.00 - $7.00 per SF for concrete / masonry buildings. Walks and Driveways: Removal and transportation of asphalt or concrete paving or sidewalks: This is based on loading and hauling to edge of site. Multiply cost of new installation of similar quality by a factor of 0.35. Concrete: To remove and load concrete foundations and walls 4 - 6 MH per CY Slabs of Grade1.5 – 2.5 MH per CY. Structural Steel: To dismantle and remove Structural Steel: Determine the hours as if it was new work and multiply by a factor of 0.4. Alternatively use 2.50 – 7.50 hours per ton to demolish structural steel. Piping Systems: To dismantle and remove piping use multiply by a factor 0.40 x cost of erection. The factor does not consider any salvage, if pipe / valves / fittings are to be salvaged. Alternatively 0.2 MH per 100 lb. of material to be dismantled is reasonable approach. On the other hand use the following data to arrive at a man-hour budget: Pipe Diameter 2” and below 2” – 6” 6” – 12”

Man hour per LF 0.15 – 0.25 0.25 – 0.40 0.40 –0.75

Electrical / Instrumentation: To dismantle and remove electrical conduit, wiring, fixtures, equipment, instrumentation, etc., estimate as new work and multiply by 0.40. To dismantle and re-install multiply man-hours by 1.4 Trees and Shrubs (softwood): Remove trees / stumps and haul off surplus aver 1-2.5 miles: Diameter. Tree 0” to 9” 9” to 12” 12” to 18” 18” to 24”

Height 10’ to 20’ 20’ to 30’ 30’ to 40’ over 50’

MH Each 4 8 10 16

Stump Removal by Hand 8/10 MH 10/12 MH 12/14 MH 16/18 MH

If excavation machine, bulldozer or backhoe is used to push over trees for stacking and burning, multiply MH ‘s indicated above by 0.33 Trees and Shrubs (hardwood): Remove trees / stumps and haul off surplus aver 1-2.5 miles: Diameter. Tree 0” to 9” 9” to 12”

Height 10’ to 20’ 20’ to 30’

MH Each 6 10

20

Stump Removal / Blasting 1 MH 1.5 MH

12” to 18” 18” to 24”

30’ to 40’ over 50’

12 24

2 MH 2.5 MH

Clearing and Grubbing Shrubs: This item varies as to density of brush of debris to be cleared and type of equipment to be used. Previous experience, based on sub-contracting this work: indicates values as follows. Light Work Medium Work Heavy Work

$78.75 to $414.75 per Acre $341.25 to $682.50 per Acre $ 551.25 to $1,548.75 per Acre

Drilling for rock anchors

0.05 hours / LF

Drill & blast rock (loading with Front End Loader) 0 – 1,000 CY 1,000 CY and above

4.10 man hours / 10 CY 3.33 man hours / 10 CY

EXCAVATING BY HAND UNITS, ETC. (excludes planking & strutting)

Loading trucks by hand Trenches to 5’0” deep Foundations to 10’0” deep (1 lift) Foundations to 15’0” deep (2 lifts) Foundations to 20’0” deep (3 lifts) Backfill by hand, no tamping 95% compaction Spread loose material by hand Hand tamping

Man Hours per 10 Cubic Yard’s Heavy Soil Solid Clay Normal & or Soil Clay Solid Earth 13.5 22.5 25.5 16.5 24.5 27.8 21.0 23.5 26.9 42.0 46.5 51.7 64.0 68.5 71.5 5.0 6.5 7.2 3.0 3.5 3.9 9.0 11.0 12.3

Hand Excavation Excavation 2.0 man-hours per CY / 2.62 man-hours per M3 Backfill 0.6 CY man-hours per CY / 0.80 man-hours per M3 OFF LOADING MATERIALS BY HAND: Sand from trucks Gravel / stone from trucks Crushed rock / crusher run from trucks Cement (sacked) from trucks Bricks per 1,000

0.65 Man-hours per CY 0.70 Man-hours per CY 0.85 Man-hours per CY 0.10 Man-hours per sack 2.50 Man-hours per 1,000

MACHINE & HAND BACKFILL: Typical for Sand, Loose Soil and Stone / Gravel Dozer 200 HP / Backhoe 100 HP

21

WORK HOURS Per 10 Cubic Yards Item Unit Total Bulldoze Loose Material Bulldoze Dense Material Compaction by Hand Pneumatic Compaction 1.50 CY bucket 1.00 CY bucket 0.50 CY bucket 0.25 C.Y. bucket Hand Place and Tamp

10 CY 10 CY 10 CY 10 CY 10 CY 10 CY 10 CY 10 CY 10 CY

0.33 0.55 7.50 3.00 0.10 0.28 0.34 0.50 4.50

NOTES: Man-hours do not take into consideration trucking or fine grading work; refer to pertinent tables for these units. Hand place labor units contain, placing by hand with shovels, loose earth in hand-throwing distance of stockpiles. The transfer of prestockpiled loose earth over an area: Stone, sand and spreading units take account of, hand placing, with shovels, these materials from located stockpiles. Clamshell labor units include the placement of materials from accessible stockpiles. Tamping by hand and pneumatic tamping units include the compacting of pre-spread materials in 6” layer lifts. Man-hours above for this type work are shown as laborer hours. If air tool operators are needed for this work substitute / alternate this effort for above laborer hours. For quantities over 1,500 CY multiply above units by 0.80. RIP RAP Placed by hand Placed by machine

17.5 man hours / 10 CY 11.5 man hours / 10 CY

LOADING EXCAVATED MATERIAL FROM STOCKPILE: Front end Loader / Backhoe 100 HP WORK HOURS PER (10) CY

ITEM

OPERATOR

2.0 CY bucket 1.5 CY bucket 1.0 CY bucket 0.5 CY bucket 0.25 CY bucket

0.10 0.15 0.20 0.35 0.40

MAN-HOURS BANKSMAN / HELPER 0.10 0.15 0.20 0.35 0.40

TOTAL 0.20 0.30 0.40 0.70 0.80

Labor man-hour units are for loading excavated material from stockpile onto trucks for transportation onsite or offsite. For quantities over 500 CY multiply above units by a factor of 0.85.

22

SITE GRADING: WORK HOURS PER (10) CY ITEM

MAN-HOURS OPERATOR

9 -11 CY Capacity (Cat 613 c) Distance 500 feet (load & discharge into stockpile) Distance 1,000 feet ditto Distance 1,500 feet ditto Distance 2,500 feet ditto Distance 5,000 feet ditto

0.08 0.10 0.14 0.20 0.30

Work hours include necessary labor for operating and maintaining equipment for the above type of work. For quantities over 5,000 C.Y. multiply above values by 0.85 HAND TRIM TRENCH BOTTOM WORK HOURS PER (10) L.F. ITEM

MAN-HOURS LABORERS

Trim trench bottom for piping systems / with self propelled vibrator roller 4” to 10” Pipe 12” to 18” Pipe 20” to 36” Pipe 36” and greater

0.28 0.58 0.75 1.00

Work hours are typical for ten (10) linear feet of trench. Work hours include small amount of hand trimming. Work hours do not include trench excavation or installation of pipes. For quantities over 1,000 LF multiply above units by 0.85. COMPACT / TAMP/ FINE GRADE IMPORTED FILL WORK HOURS PER 10 SY ITEM Motor grader 911 Sheep’s foot / spiker Vibrating roller (self propelled) Fine Grade by hand Fine Grade by machine

UNIT 10 SY 10 SY 10 SY 10 SY 10 SY

TOTAL 0.30 0.65 0.35 0.20 0.15

Work hours include labor as required for the above-defined items. For quantities over 1,500 SY multiply above units by 0.90. COMPACTION OF BACKFILL AROUND ISOLATED FOUNDATIONS (to 95% of maximum density per 10 CY)

23

By hand With vibratory compactor

4.55 hours / 10 CY 1.15 hours / 10 CY

BACK HOE EXCAVATION Work hours per 10 C.Y. (Cat 225 / 235) SOIL TYPE Light

Medium

Heavy

Rock (Rippable) Load with F.E. Loader

ITEM

TOTAL 0.33 0.39 0.57 0.66 0.54 0.78 1.11 1.22 0.93 1.02 1.14 1.20 1.38 1.47 1.98 2.10 0.52

1.00 CY bucket 0.75 CY bucket 0.50 CY bucket 0.25 CY bucket 1.00 CY bucket 0.75 CY bucket 0.50 CY bucket 0.25 CY bucket 1.00 CY bucket 0.75 CY bucket 0.50 CY bucket 0.25 CY bucket 1.00 CY bucket 0.75 CY bucket 0.50 CY bucket 0.25 CY bucket 1.50 – 2.50 bucket

Work hours include excavating and loading onto trucks. Work hours excluding blasting and transportation. Work hours are based on excavations not exceeding 5 foot in depth. If excavation is greater than 5 foot above units need to be multiplied by 1.20. For quantities over 1,500 C.Y. multiply above units by 0.90. Cost per CY for Excavating trench n / e 10’ deep (average 7’ deep) with 1 CY bucket (daily output of backhoe = 400 CY / day) assume truck travels 1 mile to an on-site location and off-loads materials in heaps, spreading and leveling transported material not included in unit price, no tipping fee’s required. (2005 Cost Basis :) Equipment / Labor Hydraulic backhoe 1 CY bucket Operator Truck 10 CY / 15 Ton Driver

Hours & Rate 8 hours x $91.50

$ Cost 732

8 hours x $42.50 8 hours x $62.50 8 hours x $40.50 S/T + O / H & Profit 27.5% Total Cost per CY / 400 CY

340 500 324 1,896 521

24

2,417 6.04

Excludes; banksman, supervision and maintenance Excavation Equipment Production Rates (daily output per 8 hour day) Type of excavation equipment / bucket size Front end loader (tracked) Ditto with wheels Bulldozer

0.25 CY

Bob Cat Hydraulic Backhoe Motorized Scraper D8 (cut & fill 35 cycles per hour) Dragline 75 ton crane with 70 100’ boom (with clamshell or open bucket)

100

0.50 CY

1 CY

1.50 CY

2 CY

2.5 CY

3 CY

7.5 CY

10 CY

500

600

750

1,000

1,250

1,500

N/A

N/A

600 500

750 1,00 0

1,000 1,500

1,500 2,500

1,750 3,000

2,000 3,500

N/A N/A

N/A N/A

250 N/A

400 N/A

750 N/A

1,200 N/A

1,500 N/A

N/A N/A

N/A 2,500

N/A 3,500

75

100

150

250

400

500

N/A

N/A

Note: The above production rates could increase by 50% if construction site is open and not congested and if excavation is completed in spring or summer months. Multiply the above by 1.35 – 1.55 for rip able rock. Multiply the above by 1.15 for dense / hard soil. Multiply the above by 0.85 for sand / loose material Equipment cost per day. (2005 Cost Basis :) • • • • • • •

Front End loader 2 CY (tracked) $725 / Day (w/o operator) Ditto with wheels 2 CY $705 / Day (w/o operator) Bulldozer $775 / Day 2 CY (w/o operator) Bob Cat $265 / Day 0.25 CY (w/o operator) Hydraulic Backhoe $827 / Day (w/o operator) Motorized Scraper D8 10 CY $1,468 / Day (w/o operator) Dragline 75 ton crane with 70 100’ boom $1,365 / Day (w/o operator)

Excludes: banksman, supervision and maintenance, mobilization and de-mobilization: Hardcore / Stone Road Sub-Base: 4” thick (100 mm) 6” ditto (150 mm) 8” ditto (200 mm)

$5.70 / SY $6.80 / SY $7.25 / SY

$6.83 / M2 $8.14 / M2 $8.66 / M2

Paving – Bitumen Based Topping 1” thick (25 mm)

$8.19 / SY

$9.82 / M2 25

2” ditto (50 mm) 3” ditto (75 mm)

$13.55 / SY $19.58 / SY

$16.22 / M2 $23.42 / M2

Approximate weights of materials per CY Material Cement Concrete (1:2:4) Earth (Bank) Sand Stone ½” Gravel Cement Mortar

Natural / Loose Condition Pounds 2,565 2,737 2,425 2,820 2,745 3,136 N/A

Compacted to 90 – 95% Pounds 3,030 3,615 2,825 3,140 3,135 N/A 3,696 (mixed)

The following table is the hourly output for Dragline operations. For quantities over 5,000 C.Y. multiply units by 0.85 (set up and dismantle of crane not included in following production rates). CY per Hour: 90° Swing – Output per Hour Drag line Bucket Capacity In C.Y. Light Soil or Loam Material Sand Stone or Gravel

1.0

1.25

1.50

1.75

2.0

2.50

3.0

3.5

4.0

5.0

140

185

205

245

260

310

340

360

400

450

135

160

195

215

235

295

320

360

420

510

In place Earth

120

150

185

200

220

245

285

325

355

420

Hard Clay

100

120

150

170

175

210

250

295

325

390

Rock drilled & blasted (Fragmented)

60

85

95

120

125

155

195

210

225

310

Underpinning / Excavation of existing Foundations: (Including timbering) 12.50 – 17.50 man hours / CY Hand pack concrete to u/s of existing Foundations: 3.50 – 6.50 man hours / CY Steel Sheet Piling: Interlocking (left in place)

$19.16 / SF

Ditto removed for future use $14.18 / SF

26

Concrete Piles: Pile Type Pre-cast Concrete Piles up to 50’ in depth 12” diameter Ditto 18” diameter Drilled Concrete piles up to 50’ in depth 12”diameter Ditto 18” diameter

$ per LF (Low) 22.58

$ per LF (High) 27.09

20.16 31.40 28.67

Unit

$ per M (High) 88.83

Unit

LF

$ per M (Low) 74.24

24.20 37.70

LF LF

66.15 102.90

79.38 123.64

M M

32.87

LF

94.03

107.78

M

M

Add 10% - 20% for drilling through rock. General data: All types of excavated material enlarge (swell) up upon excavation or blasting activities to their least dense or loosest condition, by as much as 15% - 35%. As a general rule all excavated materials (soil, sand and rock) will shrink after compaction to a higher density than in the pre excavation (original) state. Scope Definition / Checklist for Site Work Takeoff: Initially perform a general examine of the plans, bore logs and specification requirements in detail before trying to organize the take off / estimating effort. Quantity Take Off Methods Plot sections and use average depth below a fixed datum point Break out areas / color code areas (cut and or imported borrow) Use contours (if possible) and interpolate were possible Determine averages for odd sized areas need to excavated Establish average length x width x depth (in feet or parts of a foot) if no specific drawings are available Cut and fill (borrow) requirements, establish were borrow will come from Clearing / Grubbing General Excavation General Areas Roads / Pavement Tree removal / Stumps Grubbed and brush areas

Acre / Sq Yards Acre / Sq Yards Acre / Sq Yards Acre / Each Acre / Sq Yards

Sub Structure / De-watering: Segregate quantities of common or rock above and below water table. Indicate de-watering requirements; i.e., Sykes Pumping system needed. Construction / Basic Materials Material types (sand, clay, loam, rock etc.) Scrapers (D8’s and 663 / dozers / pans) and trucks, etc:

27

Units Cu Yd Cu Yd

Specific backhoe / front end loader and trucks etc: Ripping requirements; heavy, medium, light (blasting) Hand excavation work / Number of lifts Foundation preparation, if required / P & S:

Cu Yd Cu Yd Cu Yd Sq Yd

Mass, above 15 ft depth - shovel or loader and trucks Intermediate, 5 ft to 15 ft depth - shovel or loader and trucks Specific or bottom 5 ft - backhoe, clamshell, etc. Hand excavation work / Number of lifts Foundation cleanup (special considerations such as Hazardous material) Consider blasted size requirements

Cu Yd

Rock

Transportation / Hauls Total distance to tip, round trip On site disposal distance Hazardous Materials distance Tipping Fee’s

Cu Yd Cu Yd Cu Yd Cu Yd / Ton Cu Yd Lin Ft / Mile Lin Ft / Mile Lin Ft / Mile Cu Yd / Ton

Compaction / Bore Log Considerations Thickness requirements, 6’ or 3” (lifts), 90% or 95% compaction / density: Number of passes required and kinds of rollers specified. Review any available bore logs to determine water table level, weather rock or unsuitable materials exist. U.G. CONCRETE SEWER PIPE (excludes excavation and backfill) Diameter

M.H.’s per 100 LF

4” 6” 8” 10” 12” 18” 24”

24.00 37.50 40.00 44.00 47.00 54.00 75.00

Placing In-site Concrete Continuous Footings Isolated foundations Elevated slab Housekeeping / Equipt pads

By Crane

M / H’s per Cubic Yard By Chute* By Pump

0.60 0.70 0.45 0.75

0.30 0.33 0.63* 0.70*

* Wheel barrow / concrete buggy Materials for One Cubic Yard of Concrete 1:2:4 mix

28

0.55 0.60 0.35 0.60

• • • • •

Portland Cement 520 pounds Cement 5.30 Cubic feet Sand 10.72 Cubic Feet Stone 21.12 Cubic Feet 37.14 Cubic Feet of material in 1 Cubic Yard of Concrete.

Pounds / Kg / SF of rebar in CY / M3: Pounds / Kg / SF of rebar & formwork in one CY / M3 of concrete Footings (spread) Isolated Foundation s Pipe Rack foundations SOG Suspended Floors Walls 12” Columns & Beams

Low

Average pounds / CY of concrete

High

Kg / M3 of concrete

Low

Average SF of formwork per CY of concrete

High

30

55

100

33

10

25

35

35

65

140

38

10

25

35

40

70

150

40

10

25

35

40 55

75 115

130 200

40 65

7 20

15 40

20 70

40 70

75 175

150 250

40 105

25 30

50 65

85 100

Finishes (Concrete)

Man Hour per 100 Sq. Ft. Area

Steel Trowel Float Steel Trowel plus Grinding Repair Defects. Fill Form Holes Ditto - plus Bag finish Ditto - plus Floating Power float Brush / Broom Finish Iron hard Curing (Sprayed or Rolled Compound) Visqueen / Poly Sheet Joint Filler Grout, Sand (3) - Cement Embeco grout Grouting anchor bolt

1.5 3.5 0.7 1.5 0.5 1.0 1.2 0.8 0.5 1.0 3.5 / 5.0 6.5 MH ‘s per cu. yd. 8.0 MH ‘s per cu. yd. 0.22 MH ’ s each

Reinforced Concrete 3,500 PSI / 25 MPA Budget Pricing: includes rebar / mesh fabric were applicable, formwork (under slab and edge), concrete material, cranes, pumps,

29

buggies and labor to install (concrete, formwork and rebar), includes 5% waste and 5 to 7 uses of formwork, for quantities 10 CY / 10 M3 and above: Labor is based on merit shop labor (hybrid of union and non-union). For applications with a high rebar content use higher value. (2009 Cost Basis) Description Concrete Foundations Footings 3’ x 1’ Mat foundation Pile caps 3’ x 3’ x 3’ Slab on Grade (excludes u/s stone) 4” thick 6” ditto 8” ditto Walls 6” thick 9” thick 12” thick Elevated slab / Waffle slab / Flat work 4” thick 6” thick 8” thick Column / Beams 18” x 18” 24” x 24” Stairs Stairs and landing Plinths / Housekeeping Pads (less than 5 CY / M3)

$ Cost per CY

$ Cost per M3

173 – 205 173 – 231 173 – 252

226 – 268 226 – 305 226 – 331

152 – 205 152 – 205 152 – 205

200 – 268 200 - 268 200 – 268

278 – 599 278 – 599 278 – 599

362 – 782 362 – 782 362 – 782

289 – 389 289 – 389 289 – 389

378 – 509 378 – 509 378 – 509

504 – 714 504 – 714

662 – 935 662 – 935

452 – 872

593 – 1,139

525 – 1,019

688 – 1,097

Adjustment • For excavation and backfill add 5% – 15% to above values. • For quantities less than 10 CY / M3 add 25% - 50% to the above values. • For 2,500-PSI - 17.5 MPA application multiply above values by 0.95 • For 3,000-PSI - 20 MPA application multiply above values by 0.97 • For 4,500-PSI - 30 MPA application multiply above values by 1.06 • For slab on grade stone add 10% - 15% to above values. For applications in major US cities such as New York, Chicago, Philadelphia, Los Angeles etc add 10% - 22% to above values. Occupancy Load Pounds / Square Foot: Type of Facility

Occupancy Load Pounds / Square Foot

30

Admin / Office Facility 2 Floors Admin / Office Facility 4 Floors Manufacturing Facility 2 – 4 Floors

70 – 120 PSF 100 – 300 PSF 150 – 350 PSF

Concrete Rebar in Walls: (Based on 10’ high wall) Wall Thickness 6” 9” 12” 15” 18” 21” 24”

Pounds of Rebar per SF 1.00 – 2.00 1.25 – 2.50 1.75 – 3.50 2.00 – 4.50 2.40 – 4.80 2.75 – 6.00 3.00 – 7.00

Average

Kg per M2

Average

1.50 1.87 2.62 3.25 3.60 4.38 5.00

4.90 – 9.78 6.11 – 12.23 8.55 – 17.12 9.78 – 22.00 11.74 – 23.48 13.45 – 29.35 14.67 – 34.24

7.34 9.17 12.84 15.90 17.61 21.40 24.45

Hours to install 50 CY of reinforced concrete Work Item Form Strip / Repair / Reuse Rebar Install concrete HD Bolts Grout Total

Quantities 350 SF 350 SF 500 # 50 CY 1 set 1 item 50 CY

31

Man-Hours 120 50 90 100 25 25 410 / 8.20 hours per CY or 10.75 hours per M3

Caisson Concrete 3,500 PSI Reinforced: Diameter 12” Diameter 16” Diameter 18” Diameter 24” Diameter

Cu Yd / LF 0.029 Cu Yd / LF 0.051 Cu Yd / LF 0.066 Cu Yd / LF 0.117 Cu Yd / LF

Concrete strength expressed in PSI (Pounds per square inch) and Metric Units - MPA (Mega Pascal’s) PSI

MPA (Approx)

2,500 3,000 3,500 4,000 4,500 5,000

17.5 20 25 30 30 35

Formwork and Rebar Quantities: Type of Concrete Stanchions Pile Caps Beams Columns

SF per CY of Concrete 20 – 30 SF 30 – 40 SF 70 – 100 SF 70 – 100 SF

Pounds of Rebar per CY 60 - 70 70 - 100 120 - 170 120 - 170

M2 per M3 of Concrete 98 - 147 147 – 196 342 - 490 342 - 490

Kg of Rebar per M3 of concrete 36 - 42 42 - 60 73 - 103 73 - 103

Concrete Pumping: Based on 100 CY / 75 M3 The following rate is for the pumping activity only, excluded final placing of the concrete: • •

Per Cubic Yard $8.40 - $13.13 / CY Per M3 $11.18 - $17.46 / M3

Formwork: Material cost and man hours per 1 SF of Contact area timber formwork with plywood and timber or metal framing with associated cast in place connections / bolts: Cost basis 2009 Application

Fabricate & erect & dismantle 1st use

Erect, clean & repair 2 uses

Erect, clean & repair 3 uses

32

Erect, clean & repair 4 uses

Erect, clean & repair 5 uses

Erect, clean & repair 10 uses

Isolated foundations

Walls 10’ high

Elevated columns & beams Elevated floor slabs

Materials $2.57

Materials $0.50

Materials $0.50

Materials $0.50

Materials $0.50

Materials $0.50

Labor 1.25 hours Materials $2.81

1.00

0.90

0.80

0.70

0.70

Materials $0.56

Materials $0.56

Materials $0.56

Materials $0.56

Materials $0.56

Labor 1.50 hours Materials $5.01

1.25

1.15

1.05

0.95

0.95

Materials $1.00

Materials $1.00

Materials $1.00

Materials $1.00

Materials $1.00

Labor 2.25 hours Materials $3.57

2.00

1.90

1.80

1.70

1.70

Materials $0.71

Materials $0.71

Materials $0.71

Materials $0.71

Materials $0.71

Labor 1.00 hours

0.75

0.65

0.55

0.45

0.45

Rule of thumb for formwork is 10 – 20 SF of formwork per one cubic yard of installed reinforced concrete. Formwork – Erect, Strip and Repair: Application Formwork to u/s of suspended floors Formwork to walls

Man-Hours SF 0.12 - 0.18

ManHours M2 1.30 - 1.95

0.10 - 0.15

1.08 - 1.65

Pre-Cast Concrete Floor Slabs (Elevated) 3,000 PSI Concrete: Solid or Hollow 3,500 PSI concrete strapped and grouted. Floor Thickness 4” 6” 8” 10”

Material Cost per SF $5.15 $6.51 $6.93 $8.24

Installation Man-hours per SF 0.15 0.17 0.20 0.23

Material Cost per M2 $55.34 $70.04 $74.55 $89.04

Installation Man-hours per M2 1.60 1.83 2.15 2.48

•

Excludes crane costs:

•

For areas larger than 25,000 SF / 2,323 M2 multiply installation hours by 0.85

33

Pre-Cast Concrete Wall 3,500 PSI Reinforced Concrete (Insulated with batt insulation 0.50 – 1.00 inch): Tilt –up and industrial applications: Floor Thickness

Material Cost per SF

3” 4” 5” 6”

3.75 4.50 5.75 6.50

Installation Man-hours per SF 0.20 0.20 0.25 0.25

Material Cost per M2 40.35 48.40 61.90 69.95

Installation Man-hours per M2 2.15 2.15 2.70 2.70

•

Excludes crane costs:

•

For areas larger than 25,000 SF / 2,323 M2 multiply installation hours by 0.85

Slab on Grade (SOG) Concrete Floors: includes supply and installation complete with concrete, formwork and rebar, includes 4” thick sub base and polythene. Thickness of Floor Slab 4” - 200 mm 6” - 250 mm 9” - 225 mm

$ SF 6.67 8.09 9.40

$ M2 71.35 86.99 101.12

Concrete Walls: includes supply and installation complete with concrete, formwork and rebar. Thickness of Wall 4” - 200 mm 6” - 250 mm 9” - 225 mm

$ SF 20.48 21.95 23.42

S M2 220.50 236.25 252.00

Pipe Bridge – Budget Pricing Includes Foundations and Structural Steel (2009 Cost Basis) Type

Materials per LF

Light Duty Heavy duty

$66.68 $102.38

Man-hours to install per LF 1.77 2.33

Materials per M $218.72 $335.79

Man-hours to install per M 5.80 7.64

Reinforced Concrete Data: Using $473 per CY $620 per M3 for installed concrete as a benchmark for concrete: The approximate break out of this cost would be as follows: Category Concrete

Cost per CY $95

Cost per M3 $124

34

Percentage 20%

Rebar Formwork Total

$158 $221 $474

$207 $289 $620

33% 47% (20% M – 80% L) 100%

As a rule of thumb for a quick method of estimating concrete, there is typically 100 – 200 pounds of rebar in 1 CY of reinforced concrete or 55 kg – 110 kg in 1 M3 Use the above ratio’s to determine approximate values for rebar and formwork. Gunite / Sprayed on Concrete Thickness 1” 1.5” 2.5” 3.0”

Material cost per SF $3.31 $3.94 $6.77 $7.98

Installation man-hours per SF 0.10 0.12 0.17 0.22

Material cost per M2 $35.60 $42.37 $72.87 $85.87

Installation man-hours per M2 1.08 1.29 1.83 2.37

For applications using mesh reinforcement add $0.50 – $1.25 to material cost and add 10% to installation man-hours: Injection grout / Concrete: (1:3:6) mix: (includes batching plant and pressure pumps, excludes drilling costs) • •

$578 - $683 / CY $767 - $908 / M3

Concrete General Estimating Data Bush hammer concrete Acid wash concrete Pattern concrete slabs Colorize concrete slab Bag / Dress concrete walls

$0.58 - $1.21 / SF $0.21 - $0.35 / SF $0.47 - $0.79 / SF $0.53 - $0.95 / SF $0.26 - $0.68 / SF

$6.24 - $13.02 / M2 $2.26 - $3.77 / M2 $5.06 - $8.50 / M2 $5.70 - $10.22 / M2 $2.80 - $7.32 / M2

Estimating Thoughts for Structural Steel and Miscellaneous Steel Obtain and review any available engineering deliverables / drawings or sketches. Take off lengths of steel section and multiply by appropriate weight in pounds per LF, determine pounds / tons of steel that is depicted on the drawings. Structural steel is usually fabricated in a vendors shop, and delivered to the site for eventual erection. Structural steel has a number of differing specifications / materials of construction, that have differing cost consequences the most widely used is A36. Issues that may perhaps impact the erection activity of new structural steel are: •

Lifting equipment / cranes / hoists

35

• • • • • • •

Mobilization / de-mobilization of crane (crane are typically rented by the day or week) Crane reach Lifting capacity Number of floors Bolted connections Welded connections Painting / touch up painting

Platforms, ladders, handrails, stair risers and other miscellaneous: perform take off and establish pounds / tons of material and assign appropriate installation man-hours. Checker plate, grating and floor plate and metal decking: perform take off and establish square feet of material and assign appropriate installation man-hours, allow at least 5% for waste in the cutting / fit up activity. Order of Magnitude Structural Steel Estimating Data Structural Steel weights per SF: Manufacturing Building = 10 - 15 lb / S.F. 5 Floor Office Building = 15 – 25 lb / S.F. Heavy industrial Facility = 25 – 75 lb / S.F. Process Structures: Preliminary weights of structures can vary from 1.5 lb to 3.5 lb (Cubic Foot of enclosed area). Structural Steel as percentage of major equipment cost: usually falls in the 5% to 8% of major equipment cost. The following pie chart delineates the various cost / fabrication and installation activities associated with structural steel.

36

Percentage Breakout of Structural Steel Based on 500 Ton - 3 story Building

Material Cost 29%

Installation 20%

Priming paint 8%

Shop Draw ings 5%

Fabrication 34%

Align & level 2%

Delivery to site 2%

MISCELLANEOUS STRUCTURAL STEEL ITEMS: (Labor & Material Costs, excludes crane and scaffolding costs): Description Structural Steel (Columns and Beams – 100 Ton and above) For applications less than 100 Ton multiply value by 1.15 Light framing steel (tubular and channels) Heavy framing steel (RSJ’s and wide flange beams) Metal studs / framing Miscellaneous lintels and angles / channels Corrugated metal decking, galvanized 2” rib 18 g Ditto 20 g

Cost per Ton / Pound / SF $1,961 - $2,650 ($0.99 $1.33 per pound)

Cost per Kg / M2

$2,2374 - $3,021 ($1.19 $1.52 per pound) $2,226 - $2,862 ($1.11 $1.43 per pound) $3,021 - $3,445 ($1.52 $1.73 per pound $2,650 - $3,180 ($1.33 $1.59 per pound $1.75 - $2.07 / SF

$2.37 - $3.02

$18.82 - $22.26

$1.96 - $2.28 / SF

$10.49 - $24.54

37

$1.96 - $2.39

$2.23 - $2.86 $3.02 - $3.45 $2.65 - $3.18

Galvanized steel ladders connected to masonry or concrete w/o safety loops. Ditto with safety loops Handrails 1.5” diameter CS 2 rail system 30”- 36” high Stairs – galvanized steel 36” wide c/w side plate and handrails (open grating) Bollards 3” diameter 6’ long (3’ in ground filled with concrete) H.D. bolts 1/2” diameter x 8” long

$41.87 / LF

$136.10

$69.43 / LF $23.85 / LF

$225.67 $77.54

$159 - $186 per tread $477 - $795 each $11.13 / Each

AVERAGE MH UNITS FOR STRUCTURAL STEEL ERECTION Structure Type Pipe Racks Equipment Structures Platforms, Walkways, Ladders Other Misc. Ironwork

Avg. MH/Ton 18-25 30-40 45-70 40-80

Adjust Units for Job Conditions, Including Height Factors and size of project. Average Weights for Misc. Iron Structure Type 1” x 3/16” Bar Type Grating - Galv 1 1/4” x 3/16” Bar Type Grating Galv Ladders - W Cage Ladders - No Cage Stairways 2” L - Handrail W Toe Plate 1 50” Pipe Handrail Stair Treads Grating1.25” x 3/16” (9” wide x 3’-0) Ditto 1.25” x 3/16” Floor Grating

Average Weight 8 / 9 # SF / 0.03 M.H.’s / SF: 9.5 /10.5 # SF / 0.03 M.H.’s / SF 27 / 30 # LF 11 / 13 # LF 75 / 85 # LF 14 / 16 # LF 13 / 15 # LF 25 /30 # each 11 / 12 # / SF

Metal Decking Installation (Roof & U/S of elevated slabs, laid on joists) Labor only: Man-hours Man-hours per SF per M2 1.5" ribbed depth 18g galvanized 0.010 0.108 1.5" ribbed depth 20g galvanized 0.010 0.108 1.5" ribbed depth 22g galvanized 0.010 0.108 3" ribbed depth 18g galvanized 0.013 0.140 3" ribbed depth 20g galvanized 0.013 0.140 3" ribbed depth 22g galvanized 0.013 0.140

38

Ref # 1

Type of Material

2

Handrails: @ # horizontal 1.25” diameter CS welded to vertical 1.50” diameter post at 6’ centers: Ditto

3

Ladders w/o cage CS

4

Ditto with cage

5

Floor grating / checker plate/ diamond plate

Fabricate & Install Fabricate Install

M.H’s per LF 0.60 M.H’s per LF 0.25 M.H’s per LF

Fabricate Install Fabricate Install Fabricate Install Fabricate Install

0.60 M.H’s per LF 0.25 M.H’s per LF 1.15 M.H’s per LF 0.25 M.H’s per LF 2.15 M.H’s per LF 0.25 M.H’s per LF 0.25 M.H’s per SF 5 – 15 SF per hour

Excludes painting: Steel plate / ductwork $3,000 - $3,500 per ton supply and erect Erection of steel refractory duct work Excluding brick lining 40 - 60 man-hours per ton Aluminum Cable Tray (12” wide with all fittings and supports) Width 18” 24”

Man-Hours 0.60 0.75

$ Material Cost $43 $50.50

OOM pricing for a Field Erected Storage Tanks 250,000 - 500,000 gallons Carbon Steel $1.80 - $2.30 per gallon SS $2.20 - $2.70 per gallon OOM pricing for installed piping system 2009 Pricing Basis: Includes, Pipe material, fabrication and erection labor, fittings, valves, hangars, testing and all required activities: Pipe Diameter 1.5

C. S. $ Cost per LF $40 - $60

2

$60 - $80

3

$85 - $105

C. S $ Cost per M $130 $200 $200 $260 $280 $340

SS 304 $ Cost per LF $65 - $95 $95 - $130 $135 $170 39

SS 304 $ Cost per M $210 $315 $315 $420 $445 $550

SS 316 $ Cost per LF $70 - $100 $100 $140 $145 $180

SS 316 $ Cost per M $225 $335 $335 $445 $475 $585

4

$110 $130 $130 $150

6

$360 $430 $430 $490

$175 $210 $210 $240

$575 $680 $680 $785

$190 $220 $220 $260

$615 $725 $725 $835

OOM Process Pipe Man-Hours ISBL 4 - 8" 200 – 300 man-hours per ton OSBL 75 - 125 man-hours per ton OOM Miscellaneous Items Sandblasting 0.010 hours / SF Scaffolding 0.115 – 0.020 hours / CF

Insulated Metal Siding: supply and install, excludes structural framing / support: Thickness 3.5” – 85 mm thick corrugated metal siding with 1” thick insulation

SF $8.63

M2 $92.93

COST TO FABRICATE A COMPLETE C.S. PRESSURE VESSEL / TOWER / DRUM: (Assume wall thickness is 1” thick and finished product weighs 10.000 pounds / 4,550 kg – 100,000 pound / 45,500 kg) Cost per pound $1.84 – $2.10

Cost per kg $4.15 - $4.36

MASONRY UNIT COSTS / DATA FACE BRICK Brick Type STANDARD SIZE JUMBO SIZE ECONOMY SIZE UTILITY SIZE 8 SQUARE 12 SQUARE UTILITY THRU-WALL

Brick Size in Inches 2-1/4 X 3-3/4 X 8” 2-3/4 X 3-3/4 X 8 3-5/8 X 3-5/8 X 7-5/8” 3-5/8 X 3-5/8 X 11-5/8” 7-5/8 X 3-5/8 X 7-5/8” 11-5/8 X 3-5/8 X 11-5/8” 3-5/8 X 7-5/8 X 11-5/8”

Number of Bricks per SF. 6.75 5.6 4.5 3.0 2.25 1.00 3.00

CONCRETE MASONRY FACING UNITS Block Type

Block Size in Inches

40

Number of Blocks per SF.

GROUND FACE UNITS SPLIT FACE FLUTED UNITS 8 SQUARE

3-5/8 X 7-5/8 X 15-5/8” 7-5/8 X 7-5/8 X 15-5/8” 2-1/4 X 3-5/8 X 15-5/8” 3-5/8 X 7-5/8 X 15-5/8” 7-5/8 X 7-5/8 X 15-5/8”

1.125 1.125 3.375 1.125 1.125

CONCRETE BLOCK (hollow) Back-up Block Size in Inches 4 X 8 X 16” (SM - 1 side) 6 X 8 X 16” (SM - 1 side) 8 X 8 X 16” (SM - 1 side) 10 X 8 X 16” (SM - 1 side) 12 X 8 X 16” (SM - 1 side)

Number of Blocks per SF. 1.125 1.125 1.125 1.125 1.125

• • • •

Facing bricks cost $263 - $473 per 1,000 Common bricks cost $189 - $299 per 1,000 8” thick concrete block cost $0.84 - $1.37 each 10 C.F. of mortar required for 1,000 bricks / mortar costs approximate, $4.85 / C.F. • A Mason can install / lay 700-900 bricks in 8 hours 1,000 brick a day is considered excellent productivity. 1,000 bricks weigh 6,500 – 6,750 pounds. • Concrete Masonry M / H installation units Hollow load bearing / Solid load bearing: Thickness 4” thick 6” ditto 8” ditto 10” ditto 12” ditto

Hollow M / H ‘s per SF 0.055 0.060 0.070 0.075 0.085

Solid M / H ‘s per SF 0.060 0.065 0.075 0.080 0.090

Brick Mortar: (1:3) 1 part cement & 3 parts sand: • • • • •

10 CF of mortar required for 1,000 installed bricks. Mortar costs $4.35 per CF Mortar cost for 1,000 installed bricks = 10 CF x $4.85 = $48.50 Approximately 5 bricks per SF of wall surface 5 bricks x $48.50 = $0.24 / SF 1,000

Concrete Block Mortar: (1:3) 1 part cement & 3 parts sand. • •

1.12 Blocks + 2.5% waste = 115 blocks per 100 SF of wall surface. 15 CF of mortar required for 100 SF of wall surface.

41

•

Cost of mortar per SF = 15 CF x $4.85 = $0.72 100 SF

Masonry Installation Labor only: (excludes scaffolding)

Man-Hours Man-Hours Per SF

Per M2

Solid Foundation wall 6" thick

0.060

0.646

Solid Foundation wall 8" thick

0.065

0.699

Solid Foundation wall 10" thick

0.070

0.753

Solid Foundation wall 12" thick

0.075

0.807

Solid Split ribbed face 6" thick

0.070

0.753

Solid Split ribbed face 8" thick

0.075

0.807

Solid Split ribbed face 10" thick

0.080

0.861

Solid Split ribbed face 12" thick

0.085

0.915

Wood Framing Man Hours per 100 Board Foot: (Douglas Fir): Framing Type Floor / ceiling Joists Bearing Plates & Sills Wall Framing / Studs (Hip) Short Framing Pieces Roof Ridge Trusses (Stick Built - not preengineered) Roof Rafters

2” x 4” 3.7 - 4.2

2” x 6” 2.8 - 3.4

2” x 8” 1.9 - 2.2

2” x 10” 1.6 - 1.9

2” x 12” 1.6 - 1.9

3.5 – 4.1

4.5 – 5.1

3.1 - 3.5

3.1 - 3.5

3.1 - 3.5

1.9 - 2.4

1.8 - 2.2

1.6 - 2.2

1.5 - 2.0

1.4 - 1.8

3.9 - 4.4

3.7 - 4.2

3.5 - 3.9

3.2 - 3.4

2.9 - 3.2

N/A 5.0 - 6.2

5.0 - 4.2 4.3 - 4.8

5.0 - 4.1 3.7 - 4.1

4.4 - 3.7 2.9 - 3.3

4.4 - 3.7 2.7 - 3.0

8.0 - 7.2

7.3 - 5.8

6.0 - 4.8

5.5 - 4.2

5.0 - 3.3

Plywood 0.5” exterior grade 16 Man Hours per 1,000 Sq. Ft. QUARRY TILE FLOORING L & M (Dairy / Food Facilities) 2009 Cost basis: 4” x 4” x 3/8” floor thin set base 6” x 6” x 3/8” floor thin set base 4” x 4” x 3/8” floor mud set base 4” x 4” x 3/8” wall thin set base 4” x 4” x 3/8” base with cove top thin set base FLOOR DRAINS (flat round top C.S. & S.S.) 4” diameter 6” diameter

2.50 MH 4.00 MH

42

$8.00 / SF $7.25 / SF $8.80 / SF $8.45/ SF $8.15 / LF

EXTERIOR FINISH Wood Siding Cedar Fiberglass Siding Galv. Correg, Iron Vinyl Siding Correg, Aluminum

7.2 MH per 100 Sq. Ft. 8.0 MH per 100 Sq. Ft. 3.5 MH per 100 Sq. Ft. 4.2 MH per 100 Sq. Ft. 3.3 MH per 100 Sq. Ft,

ROOFING Built Up (3 layers) $1.58 to $2.42 per layer of roof per Sq. Ft. EPDM $0.89 to $1.63 per Sq Ft. Asphalt Shingles 2.0 MH to 2.4 MH per 100 Sq. Ft. depending On type of roof. INSTALLED DUCTWOK PRICE / SUBCONTRACT BASIS (2009 Cost Basis) Based on cost per pound includes all support / brackets etc. Galv rectangular ductwork - commercial gauge (22-26) Galv ditto ductwork - Rehab & Restoration Galv ductwork - heavy gauge (10-14)(welded) Aluminum ductwork Stainless steel ductwork Fiberglass ductwork - rigid Insulation acoustical lining (internal) Air Balancing Plenum insulation rigid 2” thick

$5.34 - $6.99 / lb $8.31 - $10.73 / lb $9.79 - $15.18 / lb $10.45 - $16.28 / lb $14.85 - $20.74 / lb $4.95 / SF $2.09 - 2.92 / SF $440 - $743 / AHU $4.90 - $5.78 / SF

Estimating – Rules of Thumb (2009 Basis) Construction Category Engineered Stone/Fill Ditto Structural Steel Ditto Reinforced Concrete Ditto Piping 2” – 4” CS Ditto (multiply by 1.80 for S.S applications) Manufacturing/Production Equipment (Installation) HVAC per ton of cooling / refrigeration

Price per Unit $25 - $35 CY $33 - $46 M3 $2,500 - $4,000 Ton $2.50 - $4.00 kg $30 - $950 CY $460 - $1,245 M3 $80 - $160 LF $262 - $525 M Multiply equipment purchase price by 2 – 5 to arrive at total installed cost. $1,750 - $2,750 per ton

43

Remarks Columns / Beams Foundations and Flatwork All in budget price (includes pipe, fittings, hangars, valves and erection) Includes Engineering, Procurement and Construction activities

1 2 3 4 5 6 7 8

Material 3 ply roofing shingles Corrugated metal roofing (20 g) 1 Brick thick wall with mortar Ditto with concrete block wall 4” thick glass blocks 3/8” thick glass 1” thick terrazzo flooring (excludes bedding material) Gypsum plaster ceiling with lathing

Weight (Pounds per SF) 0.75 – 1.25 1.50 – 2.25 100 - 125 165 - 190 16 – 20 5.50 12 10 - 12

Annual Maintenance Costs (Internal and Exterior Maintenance) 2009 Basis Type of Facility $ Per SF $ Per M2 Hospital 2.30 -2.80 24.75 – 30.15 Manufacturing Facility / 2.25 – 2.75 24.20 – 29.60 Factory R&D Center Laboratory Warehouse

1 2 3 4 5 6 7 8

2.85 – 3.35 0.85 – 1.20

Material 3 ply roofing shingles Corrugated metal roofing (20 g) 1 Brick thick wall with mortar Ditto with concrete block wall 4” thick glass blocks 3/8” thick glass 1” thick terrazzo flooring (excludes bedding material) Gypsum plaster ceiling with lathing

30.66 – 36.00 9.15 - 12.90

Weight (Pounds per SF) 0.75 – 1.25 1.50 – 2.25 100 - 125 165 - 190 16 – 20 5.50 12 10 - 12

PAINTING COSTS Mid 2009 cost basis Material Cost Exterior (Alkyd/oil based) 5 gallon Primer $29.82 Flat $28.04 Gloss $23.52 Masonry Exterior $25.52 One gallon of paint will cover 300-400 SF (1 coat) Painter (in 8 hours) can perform the following Spray 2,000-2,500 SF Roller 1,000-1,500 SF Brushwork 500-750 SF

44

Revamp / Alteration work. Consider the following: • • • • • • • • • • • • • • • •

Demolition items, value obtain for selling “scrap metal” Materials of construction, i.e. carbon steel, stainless steel, aluminum, plastic, galvanized steel etc. Welded or bolted connections Modifications to existing steel Cut out openings Shoring Small quantities Fire watch, spark / dust protection Weather protection Limited use of equipment Lifting equipment / cranes / hoists Mobilization / de-mobilization of crane (crane are typically rented by the day or week) Crane reach Lifting capacity Number of floors Painting / touch up painting

Major Equipment Installation / Erection / Setting: Major equipment installation / erection / setting man-hours are hardly ever greater than 10% of the total field construction man-hour effort. Typically a good rule of thumb is that major equipment hours / cost range from 5% to 12% of the F.O.B. / ex works purchase price of the particular piece of major equipment item.

Approximate Major Equipment Installation / Erection / Setting Man Hours Includes aligning and leveling (excludes crane and crane operator):

45

A.C. Units (10 Ton – 50 Ton Units) Air Conditioning Units 80

70

60

Man Hours

50

40

30

20

10

0 0

10

20

30

40

Tons of Refrigeration

Agitators (Top Entry) 1 - 10 hp 10 - 50 hp 50 - 100 hp

Ea Ea Ea

16/18 56/64 95/120

Ea Ea Ea

188/224 456/628 590/740

Air Dryer 2,500 CFM 5,000 CFM 10,000 CFM

Coalesce type Separator (Oil –Gas)

46

50

60

Co al e sc e T y p e S e p er a to r (O i l-G as ) 90

80

70

Man Hours

60

50

40

30

20

10

0 0

10 0

20 0

300

40 0

GM P

Belt Conveyor 50 ton 100 ton 250 ton

Ea Ea Ea

38/44 98/106 158/168

Compressors & chiller equipment with driver 1 - 50 hp 50 - 100 hp 100 - 250 hp 250 - 500 hp

Ea Ea Ea Ea

Crusher (Jaw)

47

38 86 246/294 444/526

5 00

60 0

Crusher (Jaw)

450

400

350

Man Hours

300

250

200

150

100

50

0 0

20

40

60

80

100

120

HP

Dryer Drum (Single) Dryer Drum (Single) 160

140

120

Man Hours

100

80

60

40

20

0 0

5

10

15 HP

48

20

25

30

Dryer Drum (Double) Dryer Drum (Double) 250

200

Man Hours

150

100

50

0 0

5

10

15

20

25

30

400

500

600

HP

Expansion Tank (ASME) Expansion Tank (ASME) 30

25

Man Hours

20

15

10

5

0 0

100

200

300 Gallons

49

Packaged Hydronic H & C Unit Packaged Hydronic H & C Unit 60

50

Man Hours

40

30

20

10

0 0

50

100

150

200

Tons

Field erected storage tanks C.S. 10,000 gal 25,000 gal 50,000 gal 100,000 gal 250,000 gal 500,000 gal

(238 barrels) (595 barrels) (1,190 barrels) Ea (2,380 barrels) Ea (5,950 barrels) Ea (11,900 barrels)

Ea Ea

Ea

70/90 120/180 250/400 540/620 700/850 900/1,250

Heat Exchangers (shell & tube) Up to 50 SF 50 - 100 SF 100 - 500 SF 500 -1,000 SF

Ea Ea Ea Ea

16 40 40/80 80/100

Ea Ea Ea

88 164 420

Horizontal Batch Centrifuge 10 SF 50 SF 100 SF

50

250

300

Miscellaneous Items (1)

AGITATOR / MIXER / BLENDER – VESSEL / POT BLENDER: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:

CUBIC FEET / CUBIC YARD VOLUME (H.P.) / # OF PIECES 5 / 0.20 (2.5) / 7 10 / 0.40 (5.0) / 7 15 / 0.55 (7.5) / 7 25 / 1.00 (10.0) / 7 50 / 2.00 (15.0 / 7) 75 / 2.75 (20.0) / 7 100 / 3.70 (25.0) / 7 250 / 10.00 (35.0) / 7 (2)

M.H. per HP

96 120 180 240 280 300 350 450

38.4 24 24 24 18.6 15 14 12.8

BLOWERS & FANS- Suspended Type Fans (ceiling / hung by brackets): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km,, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes thermostat, holding brackets and fuel pump. Excludes cranes, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:

C.F.M.

500 1,000 2,500 5,000 10,000 25,000 50,000 75,000 100,000 250,000

(3)

Man-hours

HP

0.5 1 1.5 3 5 12.5 25 35 50 75

Weight in Pounds (# Of Major Pieces) 200 (4 / 8) 350 (4 / 8) 450 (4 / 8) 700 (4 / 8) 1,500 (6 / 12) 3,000 (6 / 12) 5,000 (10 / 20) 7,000 (10 / 20) 10,000 (10 / 20) 15,000 (10 / 20)

FLUID TYPE: 51

Man-hours

2.5 4 8 12 16 32 60 84 108 160

M.H. per HP 5 4 5.33 4 3.2 2.56 2.4 2.4 2.16 2.13

Includes installation of motor and drives, controls. Excludes crane rental, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: GPM 10 25 50 100 150 (4)

H.P 1 2.5 5 7.5 15

M.H.’s 6.5 8 12 22 32

MH. Per gallon 0.65 0.32 0.24 0.22 0.20

COMPRESSOR – RECIPROCATING UNIT (Packaged unit with local controls): Gas Powered Engine Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls. Excludes cranes, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Compressor H.P.

(5)

# Of Pieces 3/5 3/5 3/5 3/5 5/7

Approximate Weight Pounds (# of Pieces)

Man-Hours

M.H. per H.P.

1,000

65,000 / 7/14

720

0.72

2,500

95,000 / 7/14

920

0.56

4,000

125,000 / 7/14

1,250

0.37

5,000

250,000 / 7/14

1,500

0.30

OIL / GAS FIRED HEATERS INDIRECT - FLOOR MOUNTED: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls. Assume unit is mounted on a skid unit the hook-up piping and electrical between tank and pump is included, typically trim is shipped loose. Assumed that equipment is shipped in one piece. Excludes cranes, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: CFM

Number Of Pieces

Weight Pounds

ManHours

M.H. per pound

2,500

6/12

600

21

0.04

5,000

6/12

1,000

32

0.03

52

(6)

10,000

10/20

1,500

42

0.03

25,000

10/20

3,700

72

0.02

50,000

10/20

4,500

81

0.02

100,000

10/20

6,300

114

0.02

HEATERS EXCHANGERS Shell and Tube: Converter: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Diameter (Inches)

Weight Pounds / # Of Items

ManHours

4

220 / 5

4.5

6

400 / 5

6

8

600 / 5

7

10

900 / 5

8

12

1,200 / 5

8

14

1,400 / 7

10/14

16

1,750 / 7

10/14

20

2,400 / 7

16/18

24

3,000 / 7

20/22

30

5,500 / 7

24/28

36

7,500 / 7

30/37

Mixer / Extruder

53

Mixer / Extruder 600

500

400

300

200

100

0 0

10

20

30

40

50

60

HP

Fuel Storage Tank Fiberglass 2,500 Gallon 5,000 Gallon 10,000 Gallon

$2,380 $3,752 $9,874

4/6 6 16

Pressure Leaf Filter Vertical P r e s s u r e L e a f F ilt e r V e r t ic a l 14 0

12 0

Man Hours

10 0

8 0

6 0

4 0

2 0

0 0

1 00

20 0

3 00

40 0

S q u a re F o o t

50 SF 100 SF 500 SF

Ea Ea Ea

54

14 27 124

5 00

60 0

Process vessels (Vertical with skirt) Process vessels (Vertical with skirt) 200 180 160 140

Man Hours

120 100 80 60 40 20 0 0

1000

2000

3000

4000

Gallons

Pumps & motors 1-10 hp 10 - 25 hp 25 - 50 hp 50 -100 hp 100 – 150 hp

Ea Ea Ea Ea Ea

22 40 58 84 96/108

Ea Ea Ea Ea Ea

42 80 88/96 122/136 158/172

Reactors (multi wall) 500 gal 750 gal 1,000 gal 2,500 gal 5,000 gal

Towers / Columns (excludes tray installation) 12“ Dia x 20’ high 24“ Dia x 30’ high 48” Dia x 40’ high 60” Dia x 60’ high 72” Dia x 60’ high

Ea Ea Ea Ea Ea

55

38/42 72/84 116/124 160/172 184/192

5000

6000

Sewage Ejectors (Simplex – 1,800 RPM) Sewag e Ejecto rs (Sim plex - 1,800 RPM) 80

70

60

Man Hours

50

40

30

20

10

0 0

2

4

6

8

10

12

14

16

12

14

16

GPM

Sewage Ejectors (Duplex – 1,800 RPM) Sew age Ejectors (Duplex - 1,800 RPM) 90

80

70

60

50

40

30

20

10

0 0

2

4

6

8 GP M

56

10

Sub Station Sub Station 60

50

40

30

20

10

0 0

100

200

300

400

500

600

K VA

Vessels Vertical Vessels Vertical 9

8

7

Man Hours per Ton

6

5

4

3

2

1

0 1 - 10

10 - 20

20 - 40 Weight in Tons

57

40 - 60

Weight in Tons

M.H.’s / per Ton

1 – 10 10 – 20 20 – 40 40 – 60

8.40 5.10 4.10 3.70

Vessels Horizontal Weight in Tons

M.H.’s / per Ton

1 – 10 10 – 20 20 – 40 40 – 60

8.10 4.90 3.90 3.40

LIGHTING FIXTURES CEILING WAREHOUSE TYPE APLLICATIONS: (excludes cable, conduit and terminations) 2009 Cost Basis. Mercury Vapor 100 watt 250 watt

Material $512 $607

M.H. ’s 2.25 2.45

Sodium H.P. 100 watt 250 watt

Material $745 $814

M.H. ’s 2.75 2.95

Incandescent 100 watt 250 watt

$130 $162

Material

M.H. ’s 2.25 2.45

LIGHTING FIXTURES CEILING WAREHOUSE TYPE APLLICATIONS Explosion Proof (excludes cable, conduit and terminations) 2009 Cost Basis: Mercury Vapor 100 watt 250 watt

Material $713 $891

M.H. ’s 2.75 3.15

Sodium H.P. 100 watt 250 watt

Material $831 $1022

M.H. ’s 3.25 3.65

Incandescent 100 watt 250 watt

Material $345 $392

M.H. ’s 3.35 3.50

58

Allow $17 LF for (L/M) for cable, conduit and terminations. MEDICAL / LABORATORY PIPING (All in price L&M) 2009 Cost Basis: 0.50” S.S. 304 Sch 10 seamless 0.75” S.S. 304 Sch 10 seamless 1.00” S.S. 304 Sch 10 seamless

$17.56 / LF $20.26 / LF $25.61 / LF

0.50” S.S. 304 Sch 80 seamless 0.75” S.S. 304 Sch 80 seamless 1.00” S.S. 304 Sch 80 seamless

$22.86 / LF $28.33 / LF $34.93 / LF

0.50” S.S. 316 Sch 10 seamless 0.75” S.S. 316 Sch 10 seamless 1.00” S.S. 316 Sch 10 seamless

$19.56 / LF $23.32 / LF $30.20 / LF

0.50” S.S. 316 Sch 80 seamless 0.75” S.S. 316 Sch 80 seamless 1.00” S.S. 316 Sch 80 seamless

$27.39 / LF $31.79 / LF $40.10 / LF

Walk In Freezers (Pre-Assembled) 2009 Cost Basis. 10’ x 10’ x 10’ high 15’ x 15’ x 10’ high

Material $8,402 $12,179

M.H.’s 42 64

Lab Equipment (2009 Cost Basis): Material

Man hours

Anaerobaric Chamber 12 CF

$5,924

5

Automatic Coagulation Bench top / timer unit

$4,406

4

Glassware Washer / Dryer

$5,946

10

Lab Centrifuge Unit 2.5 CF

$3,339

1.5

O.O.M. PRICING FOR VESSELS & TANKS C.S. & S.S. ASME 100 PSIG (2009 Pricing Basis): Weights as per Standard Gage for steel sheet are as follows; 0.25” thick = 10.46 pounds / SF. 0.50” thick = 20.91 pounds / SF. 0.75” thick = 31.36 pounds / SF. 1.00” thick= 41.82 pounds / SF. To determine weight use the following formula Weight (W) = 12DTL Where W = weight in pounds and D = Diameter of Vessel / Tank in inches and T = Shell / wall thickness in inches and L = Height or length of Vessel / Tank Add 10% for normal nozzles skirts, man ways and baffles Add 20% for complex nozzles skirts, man ways and baffles

59

O. O. M. Costs per pound with typical brackets, supports and nozzles etc. 2009 Cost Basis. Pounds Weight

Cost / Pound C.S. 9.07 7.97 6.57 6.02 4.98 3.36 2.42 1.87

500 1,000 2,500 5,000 10,000 25,000 50,000 100,000

Cost / Kg C.S. 19.96 17.52 14.45 13.23 10.94 7.38 5.31 4.12

Cost / Pound S.S. 304 13.55 12.42 10.31 9.27 7.78 5.48 3.59 2.86

Cost / Kg S.S. 304. 29.79 27.33 22.68 20.39 17.13 12.05 7.90 6.27

Cost / Pound S.S. 316 16.20 14.43 12.00 10.61 8.79 5.70 4.21 3.33

Cost / Kg S.S. 316 35.64 31.74 26.40 23.34 19.32 12.55 9.27 7.32

Adjustments: To determine setting man hours multiply the above results by 6% -8% and divide by $45 / hour. For intricate designs needing internal brackets / supports etc add 15% to 25% to above results. For vessels with half and full jackets add 15% and 25% to above results Electric Motor hours to install 240/440 v H.P. 2.5 5 10 25 50

Man-Hours 3 5.5 8 16 24

DUCTWORK BUDGET PRICING: (2009 Pricing) FLEXIBLE WITH CLAMPS SIZE

UNIT

$ COST

3” 4” 6” 8” 10” 12” 16” 18” 20”

LF LF LF LF LF LF LF LF LF

$12.05 $13.70 $17.90 $23.08 $26.69 $29.40 $34.24 $36.09 $37.15

60

GALVANIZED STEEL WITH SUPPORTS SIZE

UNIT

COST

3” 4” 6” 8” 10” 12” 14” 16” 18” 20”

LF LF LF LF LF LF LF LF LF LF

$13.43 $13.85 $17.63 $22.51 $26.05 $29.70 $33.39 $37.66 $42.24 $47.01

FIRE DAMPERS IN WALL SIZE

UNIT

COST

1 SF 2 SF 4 SF 8 SF 12 SF 18 SF 24 SF 36 SF

EACH EACH EACH EACH EACH EACH EACH EACH

$220.00 $313.50 $410.30 $715.00 $819.50 $974.60 $1034.00 $1262.80

UNDERGROUND FIBREGLASS DUCTWORK SIZE

UNIT

COST

4” 6” 8” 10” 12” 18”

LF LF LF LF LF LF

$31.21 $34.06 $38.67 $46.86 $52.16 $84.24

ELECTRICAL WORK: If the scope of this item is vague an allowance of $15,000 to $25,000 per motor is usually adequate to estimate the costs associated with a unit sub station and switch gear, power / control wire & conduit, grounding and area lighting, this would exclude main sub station (refer to Section D 1 for more details). LABOR MAN HOURS PULLING CABLE IN CONDUIT (excludes hookup / connections)

61

WORK ITEM No 12 solid wire No 10 ditto No 8 ditto No 1/0 stranded wire No 2/0 ditto No 500 MCM stranded wire No 1,000 ditto

UNIT 1000 LF 1000 LF 1000 LF 1000 LF 1000 LF 1000 LF 1000 LF

M.H. ’s per unit 7.50 12.50 14.50 26.50 28.50 60.00 87.50

LABOR MAN HOURS TO INSTALL COPPER BUSWAY IN STEEL CASE WORK ITEM 225 amp 1000 amp 2500 amp

UNIT 1000 LF 1000 LF 1000 LF

M.H.’s per unit 450.00 850.00 2750.00

Miscellaneous Electrical Items: (2009 Pricing Basis) General Description Unit substation 150 kVA Ditto 500 kVA Ditto 1,000 kVA Main switchboard 600 v 400 amp Safety switch 240 v – 3 pole NEMA 1 Enclosed Indoor 100 amp Ditto 200 amp Ditto 400 amp Ditto 600 amp Safety switch 100 amp NEMA 1 Enclosed Indoor Ditto 250 amp Ditto 400 amp Ditto 600 amp Ditto 100 amp NEMA 12 -Dust proof Ditto 250 amp Ditto 400 amp Ditto 600 amp Ditto 100 amp NEMA 7 Explosion proof Ditto 250 amp Ditto 400 amp Ditto 600 amp 2400 V - 4160 V MCC 600 amp Disconnect switch Ditto 1000 amp Ditto 1200 amp Circuit breaker 600 v – 3 pole 100 amp breaker NEMA 1 Enclosed Indoor Ditto 200 amp Ditto 500 amp Ditto 1000 amp Circuit breaker 600 v – 3 pole 100 amp

Material Cost 40,378 69,178 91,651 1,209 230

Labor manhours 44 84 142 26 3

541 1,131 2,310 262

6 8 12 6

376 777 1,426 277 416 844 1,616 801 1,016 1,929 3,929 6,108

8 10 12 8 10 14 16 10 14 18 24 10

6,970 7,737 217

14 17 2

460 1,932 2,048 285

4 6 12 3

62

breaker NEMA 12 Dust proof Ditto 200 amp Ditto 500 amp Ditto 1000 amp Circuit breaker 600 v – 3 pole 100 amp breaker NEMA 7 Explosion proof Ditto 200 amp Ditto 500 amp Ditto 1000 amp Panel Enclosure1’x 2’x 6” NEMA 1 Ditto 2’ x 3’ x 6” Ditto NEMA 12 2’ x 2’ x 6” Transformer 3 phase Dry - 4160 v – 480 / 277 v 150 kVA Ditto 500 kVA Ditto 1,000 kVA Ditto 480 v – 208/120 v 150 kVA Ditto 500 kVA Bus Duct 225 amp Copper / LF Ditto 400 amp Ditto 600 amp Ditto 800 amp Ditto 1,000 amp Bus Duct 225 amp Aluminum / LF Ditto 400 amp Ditto 600 amp Ditto 800 amp Ditto 1,000 amp For bus duct elbows and junctions Galvanized 1” diameter NEMA 7 Explosion proof conduit / LF Ditto 2” Ditto Junction box - 3 branch Galvanized steel cable tray 12” wide / LF Ditto 18” Ditto 24” Ditto 30” Galvanized steel cable tray 12” wide / LF Ditto 18” Ditto 24” Ditto 30” For elbows and junctions EMT 1” diameter / LF Ditto 1.5” Ditto 2” Ditto 4” Pull box 1’ x 1’ x 1’ Ditto 2’ x 2’ x 2’

564 2,321 2,426 343

5 8 18 4

690 2,735 3211 59 173 227 7,516

6 12 22 2.2 4.2 3.5 30

18,081 34,516 3,078 8,100 135 190 245 317 392 96 149 180 234 279 Add 25% to above 24

56 84 26 48 0.30 0.35 0.40 0.45 0.55 0.30 0.35 0.40 0.45 0.55 Add 25% to above 0.75

56 67 9 14 19 25 14 20 26 30 Add 25% to above values 1.57 2.15 3.03 13.56 45.91 257.51

0.95 0.55 0.33 0.40 0.50 0.55 0.33 0.40 0.50 0.55 Add 25% to above values 0.175 0.375 0.425 0.50 2 3.50

INSTRUMENTATION

63

An allowance of $15,000 to $25,000 per Major Equipment item is usually adequate for early budgeting of instrumentation work. Refer to Section D 1 for additional information. BELT CONVEYOR – Man Hours (includes steel structure, belts and drives, excludes foundations Width in inches 12 14 16 18 20 24 30

Man-hours per LF 1.75 2.05 2.25 2.40 2.65 3.25 3.50

ENGINEERING Typically 400 – 800 home office engineering & design hours are adequate for each major Equipment item refer to section D 1 for additional data. Revamp projects typically take 20 – 50% more H.O. engineering hours to design. Refer to Section D 1 for additional information on: • • • • •

Major Equipment Piping Systems Insulation E/I Systems Civil / Structural and Architectural

Erection Man-hours for CS schedule 40, 80 and 120 piping OSBL applications: Diameter / inches

2 screwed joints 2 welded 4 6 8 10 12 14 16

Lift into place, lineup and tack weld Man-hours per LF N/A N/A 0.35 0.45 0.50 0.60 0.65 0.75 0.80

Production weld Manhours Number

1.95 2.50 3.30 3.75 4.35 4.85 5.50 64

Column A Combined erect and weld Man-hours per LF 0.30 0.35 0.45 0.55 0.60 0.75 0.80 0.90 0.95

Column A Combined erect and weld Man-hours per M 0.98 1.15 1.48 1.80 1.97 2.46 2.62 2.95 3.12

18 20 24

0.85 0.90 1.00

6.00 6.75 7.75

1.00 1.05 1.15

3.28 3.44 3.77

Excludes: pipe fabrication, hangar / valve installation, testing and installation. To determine total hours (fabrication and erection) per LF multiply column A values by 1.50 – 2.00 Erection Man-hours for CS schedule 40, 80 and 120 piping ISBL applications: Diameter / inches

2 screwed joints 2 welded 4 6 8 10 12 14 16 18 20 24

Lift into place, lineup and tack weld Man-hours per LF N/A N/A 0.90 1.05 1.22 1.55 1.68 1.75 1.87 1.95 2.10 2.30

Production weld Manhours Number

1.95 2.50 3.30 3.85 4.55 5.35 6.20 7.10 7.85 9.45

Column A Combined erect and weld Man-hours per LF 0.60

Column A Combined erect and weld Man-hours per M 1.97 3.12 3.44 4.17 5.44 5.74 6.04 6.46 7.05 7.54 8.36 9.02

0.95 1.05 1.27 1.66 1.75 1.84 1.97 2.15 2.30 2.55 2.75

Excludes: pipe fabrication, hangar / valve installation, testing and installation. To determine total hours (fabrication and erection) per LF multiply column A values by 1.50 – 2.00 Budget pricing for totally installed CS schedule 40 OSBL and ISBL (Labor and Material) includes pipe material, fittings, fabrication, erection, hangars, testing. Based on piping installed 15’ – 25’ above grade on racks: (2009 Pricing Basis). Diameter 2 4 6 8 10 12

OSBL $ / LF 19.40 34.66 55.65 75.58 104.83 137.38

OSBL $ / M 63.18 114.06 182.74 248.15 343.44 450.82

ISBL $ / LF 38.80 69.32 111.30 151.05 209.56 274.75

ISB / $ M 127.41 227.05 365.59 495.13 687.83 900.58

OSBL multiply by 0.80 – 1.25 depending on complexity of piping configuration: ISBL multiply by 0.80 – 1.50 depending on complexity of piping configuration: Excludes valves and insulation and cranes: 65

Steam tracing copper pipe 0.50” diameter: to piping systems and major equipment. Material Cost / LF 17.86

Labor Man-hours / LF 0.55

Material Cost / M 58.62

Labor Man-hours / M 1.80

Vitrified clay pipe installed in trenches (excludes excavation and backfill). Diameter 4” 6”

Material Cost / LF 4.66 7.26

Labor Manhours / LF 0.25 0.30

Material Cost / M 15.32 23.80

Labor Manhours / M 0.82 0.98

Concrete U/G sewer installed in trenches (excludes excavation and backfill). Diameter 4” 6” 8”

Material Cost / LF 6.31 8.69 10.49

Labor Manhours / LF 0.25 0.30 0.53

Material Cost / M 20.67 28.51 34.45

Labor Manhours / M 0.82 0.98 1.74

Piping / Welding Stress Relieving (Electric Resistance Application) Pipe wall Schedule 40,80 and 120 1.55 man-hours per diameter inch

Minimum Hours per task 4

0.50” wall and above 2.15 man-hours per diameter inch

Minimum Hours per task 6

Average number of fittings / valves for various C.S. / S.S. piping diameters / per 1,000 LF of process related piping systems (based on 17 process related projects) I.S.B.L. work: Pipe Diameter

0.5” 0.75” 1” 1.5” 2” 4”

Couplings / Elbows unions / (90 & 45 Flanges (50% degree) (30%)

291 305 187 119 91 82

173 110 111 70 55 49

Tees / concentric - eccentric reducers (10%) 57 52 37 25 18 16

66

Caps / blinds / plugs & miscellaneous / weldolets / sockolets / nipples (10%) 58 54 37 24 18 16

Number of Fittings

579 521 372 238 182 163

Number o Valves

372 247 81 35 26 14

74 64 59 57 33 25

6” 8” 10” 12” 18” 24”

44 38 35 35 21 16

16 13 12 10 7 5

15 13 12 11 6 5

149 128 118 113 67 51

12.5 6.75 6.25 5.75 4.35 3.70

Typical percentage breakdown of various fittings: Fitting Category Flanges / Couplings / Unions Elbows 90 & 45 degree Tees / Reducers / Caps / Plugs / Strainers / Minor items

Percentage 35% 25% 40%

Typical percentage breakdown of various valves: Fitting Category

Percentage 10% 10% 15% 15% 10% 15% 10% 15%

Ball Butterfly Check Gate Globe Plug Swing Other

Air Conditioning Cost Comparison: 2 Pipe FCU system V's 4 Pipe FCU system Cost Model 244,500 SF Mixed use facility Offices / Apartments / Hotel 2009 Cost Basis On 7 floors (2009 Cost basis) SF M2 Cost Cost 2 Pipe FCU system 244,500 SF 22,723 M2 $25.38 $273 4 Pipe FCU system 244,500 SF 22,723 M2 $27.13 $292 Welding single pass to metal plate - Horizontal: Weld width 1/16" 1/8" 3/16" 1/4" 5/16"

Man-hours per LF 0.25 0.35 0.55 0.70 0.85

67

Man-hours per M 0.82 1.148 1.804 2.296 2.788

Welding single pass to metal plate - Vertical: Weld width 1/16" 1/8" 3/16" 1/4" 5/16"

Man-hours per LF 0.31 0.44 0.69 0.88 1.06

Man-hours per M 1.025 1.435 2.255 2.87 3.485

Electrical Fittings Man-Hours per 10 # items: Diameter 0.50” 0.75” 1” 1.50” 2”

Elbows / Unions / Tee’s 4.0 4.5 5.0 8.5 14.5

Ground Fault Indicator (GFI) 8.0 11.0 14.0 18.0 22.0

Explosion proof fittings 7.0 9.5 14.0 17.5 21.0

Fire Protection / Safety Items: (2009 Pricing Basis). Item Hose Assembly with 100’ 1” diameter rubber hose 4” C I Fire Hydrant Ditto 6” Safety shower including 50” of 1.5” diameter C S pipe

Material Cost $1,221

Man-hours 4.5

$974 $1,466 $2,294

3.75 4.25 26

Steam Tracing: (2009 Pricing Basis) includes one length of pipe / tube, shut off valve, supports, strainers, traps, excludes insulation and any excavation.

Diameter

0.50 0.75 1”

C S schedule 40 tube / pipe / LF Material $17.66 $20.09 $23.47

C S schedule 40 tube / pipe / LF Man-Hours 0.75 0.84 1.10

Copper pipe / tube / LF

Copper pipe / tube LF

Material $16.61 $19.13 $22.90

Man-Hours 0.64 0.72 0.93

Instrumentation Tubing: allow 35’ of S.S. 304 tubing per device: Level Transmitters / Pressure Transmitter / Flow Transmitter: Material Cost: $756 Man-Hours: 18 Fire Alarm / Security Systems Man-Hours to Install Labor only: (excludes device and materials)

68

Item

Man-Hours

Door 7' x 3' mechanical opener activated by fob Parking O/H mechanical opener activated by fob Door switch (Magnetic / hinge) Motion detection device Fire Alarm annuciator (single) Fire Alarm annuciator 4 zone Fire Alarm annuciator 8 zone Card access reader wall mounted Smoke detector ceiling mounted Break glass device box

2.60 5.50 1.25 3.20 2.75 3.50 6.50 2.75 1.55 1.75

Gas Fire Suppression Systems: (2006 Pricing Basis) Includes storage of gas / bottles and rack and distribution piping system: based on a 4 floor, 257,000 SF Facility – Computer Administration. The gas is argon – nitrogen / FE - 241 / FM - 200 / (non-ozone depleting- inert gas, not Halon or C02). Cost per Cubic Yard / M3 of area to be suppressed (2009 Pricing basis): Up to 1,000 Cubic Yards / 765 M3$58 - $69 / Cubic yard - $75 - $90 / M3 1,000 - 2,500 Cubic Yards / 1,530 M3 - $52 - $63 / Cubic yard - $67 - $83 / M3

Labor Man-hours to install various electrical items: Switchgear – Motor drives: 1 – 5 HP 10 – 25 HP 25 – 50 HP 50 – 100 HP

Man-hours 4.5 8 12 17.5

Man-hours to install 1,000 LF of Conduit: Diameter 0.50” diameter 0.75” diameter 1” diameter 2” diameter

Man-hours

82 man-hours 104 man-hours 124 man-hours 144 man-hours

Man-hours to install 1,000 LF of Cable: # # 14 # 12 # 10 #8

Man-hours 10.2 10.8 12.3 14.5

Average for Field Run Piping Labor units 80% straight run - 20% direction/ elevation changes Field installation only n/e 25' above grade or FFL:

69

Diameter in inches

0.05

0.05

1

1

2

2

4

4

6

6

PVC/CPVC

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

0.030

0.048

0.035

0.056

0.045

0.074

0.085

0.140

0.175

0.289

M-H's per LF Average per LF

0.039

Average per M

0.046

0.128

Diameter in inches

0.05

C.S.A53 M-H's per LF

0.060

0.149

0.05

1

1

0.113

0.196 2

2

0.232

0.369 4

4

0.761 6

6

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

0.030

0.048

0.035

0.058

0.045

0.074

0.15

0.248

0.185

0.305

Average per LF

0.039

0.046

0.06

0.199

0.245

Average per M

0.128

0.152

0.196

0.652

0.804

Diameter in inches

0.05

0.05

1

1

2

2

4

4

6

6

Glass

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

M-H's per LF

N/A

N/A

N/A

N/A

0.015

0.025

0.225

0.349

0.3

0.465

Average per LF

N/A

N/A

N/A

N/A

0.05

0.05

1

1

0.02

Average per M

0.287

0.065

Diameter in inches

2

2

0.383

0.941 4

4

1.255 6

6

Stainless Steel

Min

Max

Min

Max

Min

Max

Min

Max

Min

Max

M-H's per LF

0.12

0.192

0.125

0.206

0.15

0.248

0.185

0.305

0.235

0.388

Average per LF

0.156

0.166

0.199

0.245

0.311

Average per M

0.512

0.543

0.652

0.804

1.021

Note: For projects experiencing good productivity use minimum values. Excludes valve installation, includes hangar installation Includes field welds / joints

ISBL Piping Installation / Erection Man-Hours Excludes material and valves Diameter

Sch 20 Sch 20

Sch 20

Sch 40 Sch 40

Sch 40

Sch 80

Sch 80

Sch 80

Sch 120 Sch 120 Sch 120

inches

7' Str't

3' Com

10' Aver

7' Str't

3' Com

10' Aver

7' Str't

3' Com

10' Aver

7' Str't

3' Com

10' Aver

2

0.07

0.26

0.13

0.07

0.26

0.13

0.08

0.28

0.14

0.08

0.33

0.16

4

0.11

0.65

0.27

0.11

0.65

0.27

0.12

0.75

0.31

0.14

0.77

0.33

6

0.20

1.15

0.49

0.20

1.15

0.49

0.24

1.40

0.59

0.26

1.55

0.65

8

0.26

1.65

0.68

0.26

1.65

0.68

0.32

2.00

0.82

0.33

2.15

0.88

10

0.30

2.30

0.90

0.35

2.40

0.97

0.40

3.15

1.23

0.48

3.65

1.43

12

0.36

2.80

1.09

0.43

3.25

1.28

0.54

4.00

1.58

0.62

4.75

1.86

14

0.42

3.50

1.34

0.47

3.85

1.48

0.57

5.20

1.96

0.68

5.85

2.23

16

0.45

4.25

1.59

0.56

4.95

1.88

0.68

6.50

2.43

0.80

7.35

2.77

18

0.52

4.85

1.82

0.66

6.00

2.26

0.83

7.90

2.95

0.95

9.30

3.46

20

0.60

5.85

2.18

0.77

7.10

2.67

0.85

9.45

3.43

1.07

10.90

4.02

24

0.72

7.40

2.72

0.95

9.60

3.55

1.15

12.25

4.48

1.35

13.75

5.07

30

1.00

11.70

4.21

1.20

13.65

4.94

1.50

16.50

6.00

1.75

18.50

6.78

Notes: (1) Hours are for erection of spools / piping runs n/e 25 ' above grade or finished floor level (2) Hours exclude shop or field fabrication, hangars, brackets, valves and any testing

70

(3) Hours include material handling from piping lay down area (4) Cranes / welding machines are excluded (5) Assumes 7' straight pipe and 3' of complex pipe (elbows / tee's / stub ends) (6) Man-hours are for bolt-up's and field welds (not fabrication production welds) For complete piping system including fabrication shop and items in (2) above add 35% to units For OSBL piping multiply above units by 1.22 Note on large projects multiply above values by 0.85 Note on small / complex projects multiply above values by 1.20

Fire Sprinkler Systems: For chemical / manufacturing type facilities on 2 or more levels: Based on 10,000 SF includes CS Schedule 40 4” diameter headers, 2” and 1” branches and heads: 2009 Cost Basis. Ref # 1 2 3 4 5 6 7

System Type Deluge System Wet system (light hazardous) Ditto (extra hazardous) Dry system (light hazardous) Ditto (extra hazardous) Wet standpipe system 4” diameter vertical Ditto 6” diameter vertical

Materials

Labor

Total Cost

$3.14 $1.35

$4.02 $2.37

$7.15 $3.72

$2.59

$4.76

$7.35

$1.57

$2.70

$4.27

$2.86

$4.79

$7.65

$38.50

$28.60

$67.10

$59.40

$45.10

$104.50

Includes: hangars, excludes holes through floors and walls, excludes painting Miscellaneous Piping Units: 2009 Cost Basis. Piping Values Material Cost (CS - A53) Fabrication Erection

Ton $3,300 - $4,400 20 – 40 hours per ton 100 – 200 hours per ton

Average Value $3,850 30 hours per ton 150 hours per ton

OOM pricing for overland pipeline cost per M and LF: Includes burial, wrapping /tapping, backfilling and testing: 2009 Cost Basis: Diameter 6 8 10 12 14 16 18

$ Cost per M 102 131 167 207 228 260 312

$ Cost per LF 31.24 40.21 51.25 63.12 69.78 79.37 95.21

71

20 24

364 407

111.24 124.16

Excludes river and road crossings, extensive rock ripping, pumping stations, detailed design and construction management: Adjustments:

• • • • • • •

Detailed Design / Engineering add 2.5% - 5% Construction Management add 1% – 3% Rock excavation $21 – $42 / LF Road crossing and reinstall $11 - $26 / LF Road crossing thrust bore $11 - $63 / LF River crossing $26 - $68 / LF Off-shore application multiply by 1.50 – 2.75

As was stated earlier, the skill – set of a cost engineer / estimator are many, to be successful he or she require a good appreciation of the construction cycle, it help’s greatly to have had field experience The individual must understand all elements of the “Engineering, Procurement and Construction” (EPC) big picture, construction practices, computer skills, manpower productivity / production knowledge – compared to say known locations (i.e. Gulf Coast or North West England), basic and detailed engineering concepts, value engineering basics, contractual arrangements (terms and conditions – types of contracts utilized in the construction marketplace), time management / speed, accuracy, persistence, and ability to roll up his or her sleeves and do what is required to get the job done are other necessities of this profession in addition to an honest sense of judgment and a bias toward orderliness, (it’s a demanding job !!! and someone has to do it and the rewards are reasonable). The profession of Cost Estimating / Project Controls is gaining momentum both from career prospects (stepping stone to upper management) and remuneration rewards, a good / competent estimator is hard to find, all the good ones are usually gainfully employed, the salary expectations have increased significantly in the last five years or so and although not the most glamorous of jobs (i.e. the picture of a cost estimator is a guy or gal in the back room with a eye shade crunching numbers – this of course is not the case) there will always will be a demand for competent cost estimators in the foreseeable future.

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SECTION A - 5 SITE SELECTION CRITERIA / CAPITAL COST ESTIMATING DATA SOURCES & ESTIMATING CHECKLIST The compilation of an early front end / conceptual cost estimate (CAPEX) is the first part of interrelated engineering activities in the projects life cycle; the end result is to convey the estimated EPC cost of the proposed CAPEX project to the business owner or to senior corporate management. This database focuses primarily on the compilation of CAPEX estimates. The challenge the individual compiling an early phase CAPEX estimate is to accurately capture the final costs of the following activities (of course there may be additional activities that need to be estimated). •

Major Equipment / Freight / Major Equipment setting

•

Demolition / Relocation of Production Equipment / Refurbishment activities

•

Excavation / Foundations / Concrete / Flatwork / Formwork and Rebar

•

Underground and above ground services and utilities

•

Structural Steel / Platforms

•

Buildings / Pipe work

•

Electrical / Instrumentation / BAS / BMS

•

Insulation / Refractory / Painting

•

Off sites (work outside the facilities footprint – roads, rail spurs, piping, electrical work, product loading areas etc,).

•

The procurement of major equipment and materials (Bulk and Engineered)

•

Construction Labor / Construction Equipment / Field In-Directs / Supervision

•

A/E – EPC – CM costs and activities

•

Profit and Overhead

•

Escalation and Contingency

The extent and magnitude of each of the above cost items (estimate line items) of course is dependent in many ways on the complexity of the proposed facility, physical size and location (remote or easily accessible) of the proposed CAPEX project, the cost of labor and materials, together with the construction approach, the anticipated productivity that the workforce will achieve and the date when the project is needed by its eventual facility user. The CAPEX estimate basically determines the projects cost budget. As the detailed design effort is completed and more project “data” is established, additional CAPEX estimates will be compiled during the projects life cycle to ensure that the project budget is maintained. This particular section deals primarily with Site Selection, Estimating Data Sources and provides a detailed Estimating checklist.

1

Site Selection Criteria and Business Decisions: The typical approach regarding site selection is that a steering committee made up of senior management – line staff from Finance, Sales, Operations, R&D and Engineering will be established to determine a future path forward related to the new product or a new facility, topics that will be covered are as follows, •

Need for new product or expansion of current product identified.

•

Decisions on were to locate new facility, in North America, Europe or in some other overseas location (possibly closer to future markets).

•

Size of facility, configuration, operating philosophy, future expansion considerations and flexibility (could “modules” be sent to other operating locations).

•

Existing facility / site – can a current site accommodate new facility, can existing buildings be reconfigured, is the current infrastructure capable of such a significant expansion - Yes or No.

•

New Location – closer to marketplace, new staffing needs (were will they come from), new utilities (can we obtain them or will we have to produce them), new facilities, training issues, quality of life issues, community dedication to new facility and employment opportunities, government help or interference, can we get grants / special treatment for locating a large number of employees into this community – Yes or No.

•

Land and Construction cost issues (see above). This will serve as the initial Owner Budget (the more detail that can be provided with this estimate, the more realistic the cost estimate will be). Many times the site selection study might include 3 – 6 different locations, some in the US and some overseas.

•

Project timing needs (normal construction approach, fast track, or full speed ahead – damn the torpedoes we need to beat our competitors to the marketplace – money is not the main consideration, getting the product into stores ASAP is the main driver).

Usually because the project is so complex and the cost of the future investment is so significant to the business, the steering committee will bring in the expertise of key individuals to process this Site Selection Criteria Report. The individuals / team that would produce this work effort include: Corporate Engineering staff, A Project Manager, Legal assistance, Purchasing, Realtors (possibly if new facility is required), R&D staff, Operations / Facilities Management staff, Human Resource staff, Finance staff, Estimating staff, perhaps the services of a third party A/E firm, this task force typically would be charged with coming up with a recommendation in perhaps a period of 8 –12 weeks. Research and topics that need to be evaluated include some or all of the issues above and possibly more. When these decisions / questions have been addressed, the Business leadership typically will approve a partial release on the project (say - $0.50 –

2

$ 2 Million) typically 1% to 2.5% of the project budget for the services of an Architectural / Engineering firm (A/E) - Engineering firm (EPC), for a front end concept study, this will allow some conceptual engineering to take place, another important and key deliverable will be an additional cost estimate, this will be compiled by an A/E - EPC firm when the design concept is 5 – 10% complete (of the final construction / engineering deliverables), so this second estimate is basically used to confirm the owners “first” initial cost estimate, if the cost estimate / economics are still positive the project will be partially or fully fund and allowed to proceed. Topics to be that should be considered in this frontend concept study include: • • • • • • • • • • • • • • • • • • •

Scope of Work Statement of the “total” project. Site-specific considerations. Future sales of product established (partial funding need for some Front End engineering / analysis required). Best location for product manufacture location determined (i.e. close to raw materials / close to future or current marketplace). Codes and standards to be considered. Environmental issues. Operating philosophy (365 days a year and 24 hours a day, or 8:00 AM to 6:00 PM. List of Major Manufacturing / Equipment needed in new facility. Size / Footprint of Facility – Plant. Size of land / property requirements i.e. facility needs 10 acres to adequately support new facility. Room Sizes / Conceptual Architectural Finishes. Warehouse / storage requirements. Services / Utilities / Energy requirements (water, gas, waste water and electricity). Layout of main roads and possible rail requirements. Headcount of future personnel / staffing requirements. Layouts of Major Equipment and Utilities. Facility Control Philosophy. Cost Estimate +/-25%. Project Schedule Recommendations / Considerations / Major Milestones to complete facility.

The Site Selection Criteria and Business Decision (Front End Study) should perhaps come up with 2 or 3 locations for senior management to consider and to make the final decision on were to locate the new facility. After conclusion of this front-end report, if the project is released for execution, the owner will enter into a contract(s) for detailed design and construction management services, typically the construction manager or the owners estimating resources will compile a number of estimates to confirm and control the cost of the future facility, during the Engineering, Procurement and Construction (EPC) effort. To produce an accurate front end / conceptual estimate some engineering data will many times need to be produces this includes: A scope of wok statement, a site development layout or plan – indicating the utilization of the property, any boring logs, an environmental assessment report, any preliminary engineering reports, any Property Conditions Assessments (PCA), a major equipment list) priced out were possible), any Process Flow Diagrams (PDF’s), any modular / pre3

assembly assessments an d studies, facility / building sections and elevations, together with any blocking diagrams showing location of current new facilities. Capital cost estimating is at best an inexact activity, collecting and forecasting the significant variables such as, weather, labor productivity, labor costs, material costs, major equipment etc. is a difficult undertaking, hopefully some of the data contained in this publication will be beneficial in future front-end estimating efforts. Capital Cost Estimating to be “accurate” requires the skill set of analyzing and forecasting the future costs as they relate to engineering and of course construction activities. The forecast of a capital projects final cost value involves looking down the road: 1. An analysis of past data and trends, think of recent events such as the oil crisis in the 1970’s and 2008 the 9 / 11 WTC terrorist attack in 2001, the second Gulf war, the general worldwide economic downturn of the last two or three years and the “knock on effect” these events have had on business and prices, also consider the ramifications of crude oil costs that have recently exceeded $140 a barrel in mid 2008. 2. Calculating / fine tuning this data, together with current latest data and forecasting future developments / risks into the near future (say 2 or 3 years or possibly longer), consider oil price spikes, shortages of key materials and construction professionals. 3. calibrating, fine tuning the CAPEX estimate to allow for possible future trends to compensate for any reasons likely to cause deviations from the current and future knowledge of the marketplace, this includes future strikes, disruptions (think of what is happening in certain West African countries were production facilities have been sabotaged and expatriates have been kidnapped, consider also future escalation / inflation and possible future labor increases. The objective of this section is to provide the reader with information / data sources specific to acquiring historical and current cost data specific to the Engineering, Procurement and the Construction (EPC) effort required to complete “chemical / process” CAPEX capital project(s). The majority of general sources of engineering / construction - related economic data are provided by various specific country government organizations (i.e. The US Commercial Service and other similar agencies), some professional societies have presented technical / guidance papers and provide some insight into global construction costs – some of these professional societies are listed later in this section, trade groups and trade / business publications and specialist cost / estimating consultants are other good sources for this data. Other forms of cost data are completed project close out reports, historical performance databases / “in house” cost record systems and of course annual estimating databases similar to this publication. The following is a listing of general data / cost indices / information sources specific to capital cost estimating. The selling price of equipment, material and services change ad infinitum because of new technology advances, product availability, annual cost increases this is known as, escalation or inflation. A number of cost indices have been developed to maintain / measure changes costs. Some frequently used indices are:

4

Capital Cost Estimating Data – Providers / Sources / Annual Data Publications: There are a number of capital cost estimating data providers in North America / Europe these include: • • • • • • •

BNI: Compass International: Laxton: Marshall & Swift: R.S. Means: Walker Publications Spons (UK publication):

Cost Engineering Data for possible use Process / Manufacturing Industry - Historical Cost Index’s / Indices • • • • • • • • •

Dodge Building Cost Index U.S. Bureau of Labor Statistics indices R.S. Means & Co Construction Cost Index Compass International Cost Data Index George A. Fuller Company Index ENR Cost Index / Construction Economics American Appraisal Company Index Nelson – Farrar Refinery Cost Index Chemical Engineering Index (Magazine), McGraw Hill, New York. N.Y. (Chemical Engineering Plant Cost Index)

General Economic Data (North American and International) • • • • • • • • • • • • •

The Economist. London, U.K. Wall Street Journal, Dow Jones, New York. N.Y. The Financial Times, London, U.K. Le Monde, France. International Herald Tribune, Paris, France. Frankfurter Allgemeine, Germany. Financial Post, Toronto, Canada. Melbourne Age, Australia. The Daily Telegraph, Calcutta, India. Japan Times, Tokyo, Japan. South China Morning Post, Hong Kong. Thomas Register of American Manufacturers, Thomas, New York, N.Y. Chemical Equipment, Cahners, Morris Plains, N. J.

5

Construction Industry / Magazines / Publications: The following are two “general construction” related magazines that can be helpful in providing cost data / historical data for future CAPEX estimating efforts: • •

Engineering News Record (ENR) Building (UK)

Professional Associations and Societies: The following is a listing of USA and international “cost” related professional organizations that can be helpful in providing cost data for future CAPEX estimating efforts: • • • • • • • •

Australian Institute of Quantity Surveyors (AIQS): The Association of Cost Engineers (ACostE) (UK): American Society of Professional Estimators (ASPE): Canadian Institute of Quantity Surveyors (CIQS): Association for the Advancement of Cost Engineering International (AACEI) US based: The Dutch Association of Cost Engineers (NAP / DACE): Royal Institution of Chartered Surveyors (RICS): UK based: Society of American Value Engineers (SAVE):

Estimate Review Requirements / Assessment of the completed capital cost estimate and calibrating to internal / external industry “norms” and management approval: A management review of a Capital Cost Estimate be it a Front End, Preliminary / AFE or Lump Sum tender submission can be thought of as a series of questions and answers posed to the estimating team responsible for the CAPEX estimate, the most important question to be asked is of course, is the capital cost estimate complete and reflective of the scope of work document or bid package the client or engineering firm has provided, this is “the” question that needs to be tabled at the estimate review meeting. Subsequent to the range of capital cost estimating methods / techniques earlier described have been completed, a number of other important topics / issues must be reflected on and evaluated upon to finalize the total capital cost estimate or bid. These issues could include: • • • • •

Estimate basis (inclusions / exclusions / drawings with latest revision and date / specifications used in the estimating effort). Bulk material quantities (how were these determined). Quality of scope document. Specific project risks. Undeveloped engineering / scope.

6

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Evaluation of the quality of the engineering deliverables upon which the capital cost estimate is based. Specifications to be used (industry standard or owner produced specs and standards). Bidding climate / competitors. Labor productivity basis. New technology. Validity of bid 30 days or 90 days. Current market conditions. Political outlook. Hourly rates for engineering / procurement and construction. Engineering / estimating errors. Engineering / estimating omissions. Currency exchange rates. General contingencies / resolution factors. Project approach, Design build / lump sum / GMP / fast track. Take off allowances. Cost impact of T & C’s. Overtime / shift work allowance. Warranty costs. Consequential damages. Bond requirements. Performance guarantee. Design growth allowance / resolution allowance. Profit margin. Payment terms 45 days (finance costs). Incentives from state / host country. Import duties, taxes, VAT. Penalty clause / liquidated damages. Escalation / inflation rates should be considered and compiled in relation to long lead equipment purchases, labor and material categories. A detailed risk analysis should be conducted with the key project “players” to determine what level of accuracy is required based on the goals of the project. Plus many more project specific situations.

After these topics / issues have been discussed / modified /agreed to and if necessary missing scope items have been discovered and the errors have been incorporated into the capital cost estimate, the capital cost estimates “correctness” should be confirmed by an independent audit / benchmark comparison, hopefully by (an in house expert) or by a third party / outside expert, sometimes this situation is not feasible due to time constraints and economic factors, this is typically done by owner companies when reviewing a estimate from a EPC firm. The benchmarking review / audit / validation effort is initiated by comparing major project cost elements for example, ratio of major equipment to total installed (is it 4.0 times the major equipment or 5.0 times or 6.0 times), engineering costs per piece of major equipment, engineering man hours per piece of major equipment, labor and bulk material estimated costs / percentages V’s typical norms / ranges for the process industry, cost of concrete per CY / M3, man hours per LF / M of process pipe etc. refer to section A 3 Estimate Review sheet for examples of this benchmarking data.

7

After this activity if time is available: Key project elements such as; • • • • • • • • • • • • • • • • • • • •

How was the demolition cost determined? Civil / site works, cost per acre. Concrete, cost per CY / M3, pounds / kg of rebar included in the concrete unit cost, SF of formwork used in concrete unit cost. Structural steel, cost per ton Major Equipment / Processing – Chemical – Manufacturing Production Equipment. Cost per piece of M.E. Piping, m / hs per LF /M or man hours per ton. Instrumentation / controls, cost per bubble / device, cost per I/O. Electrical work, cost per SF / M2 or per H.P. Painting / insulation work. How was the fire protection cost determined? General buildings unit costs cost per SF / M2. Off sites, how is this estimated, percentage method or based on complete take-off. Execution approach is the project fast track, is overtime included / shift work. How was the detailed design cost determined? How was the construction management cost determined? How were the escalation / contingency / management reserve costs determined? How was the sales tax cost determined? How was the plant hire / construction equipment cost determined? How was the equipment maintenance cost determined? How do the material to major equipment and the same with the construction labor ratios look to similar projects?

This benchmarking data should be collected and calibrated for all future capital cost reviews. These metrics must be judged against related / similar capital projects (refer to section A - 3 Estimate Review sheet(s) for examples of this and the ratio / percentages and general capital cost estimating standards and guides previously mentioned to make certain that the capital cost estimate is reflective as much as possible to the current scope of work statement and is in line with the companies “historical” installation norms be they in-house estimating standards or external estimating standards. Following these benchmarking reviews / auditing / validation activities the capital cost estimate is ready to be approved by upper management, this document, this “completed” capital cost estimate, together with the milestone schedule and a narrative of the “basis of the estimate” will be issued to management, many times management will ask more questions during there review. These questions many times will prove to be useful and in fact will be a QA / QC tool, they can serve to improve the accuracy of the capital cost estimate and in addition ensure that the historical company data base is accurate / useful and is being used in the manner it was established for. If the capital cost estimate is a lump sum bid then this will be the baseline document for future change orders and possible future claims, it is imperative that this “basis of estimate” is adequately documented and described. ORGANIZATION / CODE OF ACCOUNTS (C.O.A.) - WORK BREAKDOWN STRUCTURE (W.B.S) OF COSTS REPORTING

8

Capital cost estimates have to be arranged in accordance with a pre-established cost code accounting structure (code of accounts C.O.A. or sometimes referred to as work breakdown structure W. B. S.), typically each owner company has there own system that they have established over the years for collecting costs and expenditures. The C.O.A. / W. B. S. serves as a project control tool for data collection related to estimating, scheduling, cost control, accounting and purchasing. The capital cost estimate should be compiled for example in a system / format indicated below or similar, review of the project’s budget, forecast to complete, expenditures and commitments and performance is then reasonably straightforward and can happen on a pre-determined schedule. The following is the Construction Specification Institute (CSI) Code of W.B.S. / C.O.A. / Breakdown (note this example is based on the C.S.I. 16 division format. Division Number

Work Item

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

General Requirements / General Conditions Site Construction Concrete Masonry Metals Woods / Plastics Thermal / Moisture Protection Doors / Windows Finishes Specialties Equipment Furnishings Special Construction Conveying Systems Mechanical Electrical Systems

Below is a typical Industrial / Process facility - C.O.A. / W.B.S. that is described in more detail in Section B 2. A. B. C. D. E. F. G. H. I. J. K. L. M. N.

Major Equipment (M.E.). Installation of M.E. Freight. Site work. Civil / Concrete. Structural Steel. Facilities / Buildings. Piping. Electrical. Instrumentation / Controls. Insulation / Heat tracing. Painting. Roads and Concrete Paving. Minor miscellaneous.

9

O. P. Q. R. S. T.

Off-sites. Construction Equipment / Fueling / Maintenance. O / H and In-directs / Field In-directs. Engineering / CM / Validation / Start-up. Contingency. Escalation / Currency Impact / Taxes / Import Duties (could be included with (C) above / Grants / Incentives. U. Spare Parts / Vendor Assistance / Client Costs / Training / Expense items. V. Other items, such as Land Purchase, Finance Costs etc. W. Owner Costs / Owner Provided Equipment (OPE). The following gives an illustration of various types of work description / code of accounts (C.O.A.) categorized by types of construction, this format can be used in establishing and setting up the estimating structure during the estimating effort. Sample / Representative Codes of Account (C.O.A.) Work Breakdown Structure (W.B.S.): COA / WBS No. 00.xxxx 00.5000 00.6000 00.7000 01.0000 01.5000 02.0000 03.0000 03.5000 04.0000 20.0000 20.0500 20.1000 20.2000 20.2100 20.xxxx 30.0000 30.5000 40.0000 45.0000 50.0000 55.0000 57.0000 60.0000 61.0000 62.0 – 79.0

Work Description Field Direct Costs Demolition work (E) Asbestos removal (E) Rehab of existing facilities (E) Site Work Piling Concrete Structural Steel Platforms Buildings Major Equipment Major Equipment setting Agitators Blenders Emulsifier Other equipment Piping Valves Electrical Instruments Painting Insulation Fire Protection Vendor Assistance Other Other Categories

80.xxxx 81.0000 82.0000 83.0000

Field Indirect Costs Temporary Construction Facilities Permits / Testing / Surveys Field C.M. Staff 10

84.0000 84.5000 85.0000 86.0000 87.0000 88.0000

Equipment Rental Equipment Maintenance Small Tools Consumables Commissioning / Start up activities Other

90.xxxx 91.0000 92.0000 93.0000 93.5000 94.0000 94.0500 95.0000 96.0000 96.2000 96.5000 97.0000 98.0000 99.0000 99.5000 99.6000 99.7000

Engineering Office Costs Project Management Engineering Design CAD operations Home Office Construction Inspection services Purchasing / Contracts Estimating Value Engineering Planning Project Support Services Profit / Fee Various Taxes Future Inflation Contingency Other

100.0000 101. -199. 200. –500 700. - 1000

Total Project Cost Grants / Incentives Other Project Related Items Operating items

(E) Possible expense items. Historical / Cost Data / Feedback A construction project is unfinished until the site is de-mobilized and the outstanding punch list is fully completed, change orders, final accounts, release of liens, retention release, handover of O/M documents, claims, back charges, certificate of occupancy must be fully completed before a project can be fully “deemed” completed. The actual costs incurred, at various job sites, i.e. the man-hour production rates, material unit prices, labor rates, major equipment costs should be fed back from the field to the cost estimator / engineer, this cost data could be divided into two categories. • •

The actual cost data information (the raw data), what it actually cost. Related information regarding specific productivity / difficult conditions, down time related to weather conditions or strikes, special construction equipment used, shift work and any overtime work, this second category can assist in explaining why certain costs / benchmarks are high compared to industry standards, there may be a reason that our benchmark for installing pipe is 25% above industry norms, fabricated at site using overtime to play catch-up.

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This data should be categorized by the type of facility it is, i.e. Sulfur Recovery Unit, Amine Plant and Research Laboratory expansion etc, location, union, non union or merit shop, revamp or new work, this plus the collection of magazine articles, cost data books and any technical papers. This data collection will greatly enhance the company’s capital estimating tools and could give the company a competitive advantage in the future. Prior to the commencement of the capital cost estimate effort it is essential that a estimating plan / responsibility matrix is established together with the crucial dates of when key estimating related activities need to be completed. The cost estimator / engineer should play an important roll / part in the site investigation effort, he or she should become cognizant with the scope of work, potential make-up of the bid package(s), drawings, specifications, general conditions (preliminaries) and bidding instructions and the estimate / proposal due date. Prior to commencing the site investigation and in order that they can appropriately communicate actual physical conditions to other individuals involved with the capital cost estimating / proposal / engineering effort. Inestimable cost related items in a new or revamp CAPEX E.P.C. project are not incorporated or mentioned in the scope of work statement, specifications or indicated on the drawings, (just think about were are the in-directs mentioned, were is the construction equipment spelled out, were is the freight and vendor assistance documented – many times its not) these work items are however required in the execution of the project, it is the cost estimators / cost engineers charge to ensure all these countless items are “scoped out” evaluated / estimated and incorporated into the completed CAPEX estimate. As you would expect all costs related scope of items must be painstaking considered / estimated and included in the final CAPEX estimate. To be consistent from one project to the next a detailed capital cost estimating checklist is indispensable and crucial for this ongoing work effort. It is suggested that the cost estimator / engineer utilize this list as a starting point and future tool in developing an “all encompassing” capital cost estimate and as a means for extracting the intent / definition that is indicated / depicted in the scope of work, drawings and specifications. The subsequent checklist should provide a roadmap to the cost estimator / engineer in assessing the cost values / budgets and allowances needed for capital engineering / construction related project(s). Using this list and possibly taking it to the proposed project site should prove beneficial, as mentioned before the cost engineer / estimator should were possible visit the proposed site and endeavor to make a video tape recording / or as a minimum take photographs to supplements notes and a condition assessment of the project site and make detailed sketches of general areas when photography is not allowed as is sometimes the case. Items to research and check on at the site include • • • • • •

Buildings / Facilities / Areas to be demolished / revamped. Extent of site, entrance points, these will be necessary to gain access to the site and to perhaps allow wide pieces of major equipment or construction equipment to get onto the site. Hazardous materials removal i.e. asbestos or lead paint. Existing buildings / facilities should be reviewed, especially if the scope calls for modifying these existing facilities. Review Off site facilities, O.S.B.L. work (piping, utilities, any other items that will need to be estimated). Existing fences, existing and proposed access roads.

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• • •

Review potential lay down areas / temporary offices / trailer locations / warehousing areas. Evaluate existing pipe racks and any other key elements / tie in points / features of the site that will influence / impact material handling; minimize construction equipment usage, influence labor productivity and much more. Consider schedule issues, i.e. fast track construction, utilizing overtime, and shift work, weekend work schedules if deemed necessary.

It is the Cost Estimators / Cost Engineers role to ensure that the following activities are compiled prior and during the capital cost estimating effort. 1. Compile a list of work to be estimated, by W.B.S or by possible bid package. 2. Gather / collect all related engineering deliverables / estimating data, i.e. major equipment, piping, instrumentation lists, drawings, specifications and any as-built drawings etc. 3. Determine which work elements will be sub contracted. (This will many times need the guidance / input of senior management) 4. Determine all direct / indirect cost items. 5. Consider profit / mark up / contingency / risk items. 6. Consider the establishment of the “basis of estimate”, i.e. exclusions and qualifications. The following list includes numerous topics / items / questions. The list is not intended to be complete, consider it a “work in progress”, that should be added to on a regular basis, or every couple of years. Project Unique Conditions • • • • • • • • •

Complex chemical / manufacturing process, requiring significant process control systems. Modernization / revamp or new construction. Working inside an ongoing manufacturing facility. Quality of engineering deliverables. Productivity issues related to congested / crowded work area or working in an existing production facility. Union / Non Union work force. Poor or well defined scope definition. Schedule normal or fast track construction effort. Permitting issues and requirements.

The Chemical / Manufacturing Process • • • • • •

Types of chemicals / materials produced (hazardous, toxic etc). Storage capacity of plant, warehouse, storage tanks, JIT considerations. Means of transportation of raw / finished product, railroad car, truck, ships, barge, pipeline or conveyors. What is the new plant production capacity, should future expansions be planned for? What are the project’s products are there any problematic by-products. What level of completeness are the P. F. D. ’s / P. & I. D. ’ s, utility flow sheets / equipment arrangements / layouts, equipment and material specifications. 13

• •

Continuous process / batch process 24 / 7 / 365 operation. Worker protection (bunny suits, air packs, any classified areas).

Environmental Issues • • • • •

Who is responsible for project related permits. Has a Project Condition Assessment (PCA) been compiled? Do we know if the project has asbestos, lead paint or mold conditions? Has Environmental Impact Statement required, has it been prepared and submitted to the appropriate federal / state authority. Are any out of the ordinary pollution monitoring / control measures required

Specifications / Codes • • •

Which specification standards will be used Owner’s specifications, CSI or EPC Contractor’s. U.S Codes or international i.e. German (D.I.N.) or British (B. S.) European specifications etc. Metric / Imperial measurement system.

Procurement – Contracting Issues • • • • • • • • • • • • • • • • • •

Which organization will purchase the engineered bulks and commodities? Are we able to purchase equipment and bulk materials close to the jobsite? What is available locally / experience with local vendors and sub contractors. QA / QC requirements, can these requirements be achieved by the local vendors / suppliers. Any owner involvement / owner provided services / equipment items. What are the owners warranty needs and requirements / is there any unusual warranty requirements / performance guarantees. Any long lead delivery items, what is the status of this, are we responsible for inspections, witness testing. How will we handle warranty issues – how long a warranty period would be beneficial to the project, how will we handle factory visits / inspections. What are the storage / protection requirements specific to the long lead equipment items and locally produced equipment / materials. Terms and conditions, warranties, what spare parts are required, Owners T & C’s or EPC firms T & C’s. Any special contractual terms or conditions required. Availability of qualified sub-contractors / vendors, is client imposing preferred vendors that we must utilize. Insurance issues – how will we handle, property damage, workers compensation, public liability insurance, BAR, fire, and umbrella insurance needs. Will a concrete batch plant be needed, concrete delivery trucks, concrete pumping equipment, were would the cement, stone and sand come from. Coordination procedures which organization will develop these and when. Will purchasing be carried out at the site or from a home office? Any special taxes or import duties required B & O taxes. Is vendor assistance / start up costs required with this CAPEX estimate.

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• • • •

Will modular / pre-assembly construction methods be utilized? Will piping systems be fabricated on site or off-site? Testing obligations, what are these requirements? Types of contract, lump sum, GMP or unit price:

General Data - Geographic Information / Climatic Conditions • • • • •

• •

• • • • • • • • • •

How many days do we expect / need to estimate for work stoppage due to snow, rain or heat. What is the average depth of frost penetration, do we need to heat concrete in winter months. Purchase / get hold of city / state maps indicating overall major and minor roads, railroads, ports and airports, does any temporary roads need to be constructed, do they need to be removed at the conclusion of the CAPEX project. Become aware of the population of each local town / get copies of local telephone books, yellow pages, bring back to office if possible. For site work / excavations, what types excavation equipment will be needed for excavation and removal off site, how will equipment be transported to the site, will we need to set up a maintenance shop on site to maintain and repair this construction equipment? Planking and strutting, will sheet piling / timber shoring be needed for deep trenches and other deep excavations, were will surplus excavation go to, on site or an off site location do tipping fees need to be evaluated. Find out if any part of the site is a fill area. If this is the case, plot / grid out its location and describe the type of fill required, existing or imported and were the imported fill will it be obtained. If imported fill material is required, where is its sources (borrow pit) located, what does it cost, do we have to set up a temporary facility, does fill material need to be consolidated to high tolerances - 95%. Look at geological and subsurface data (rock, water table, running sand, underground foundations) contact local consultants if time permits, have 2 or 3 trial pits dug to see initially what the soil characteristics are. Be aware of the existing water run off / drainage system for the area. Obtain the point of view of the local community to the “project” and future local zoning project issues, are any new houses needed to house future operators. Other industry / similar plants in the local area, converse with individuals associated with these plants; find out what problems they encountered. Environmental restrictions / environmental impact study are they required. Cost out required permits, Local Township, Building, Elevator, Pollution control / treatment requirements. Noise, State, Federal any other permits needed such as fire marshal. Consider any consequences of delays in obtaining local / state permits, this is a major risk item that needs to be evaluated. Brainstorm ideas related to alternative site location(s) in local area / adjacent or closer to main highways and utility sources. Will de-watering of the excavations be required, how would this be done. Is engineered material / imported fill required, stone, crusher run, topsoil etc, will water tankers / trucks be required to minimize dust on temporary / permanent paved area’s / roads.

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• • • • • • • • • • •

Will a temporary construction sewer / drainage system be required, will this have to be removed at project completion. Get hold of minimum – maximum temperature, rainfall, and snow averages by month; this will impact the start date of deep excavations. Is there any overhead electrical lines or other piping systems / structures that will limit construction operations, i.e. cranes trucks and back hoes. Are any on-site areas, office or storage areas vacant, can modify them into temporary office locations; lay down, storage or pre-fabrication areas. Is off-site storage required, bonded warehouses or marshalling area? Are any unique facilities called for, for equipment / materials handling, i.e. computerized bar coding. Find out what the distance / transportation route is from existing public transportation facilities, bus, railway, airport or port. Is there any seasonal limitations / restrictions / holidays related to the construction effort that will slow the construction effort down i.e. (snow / ice / rain / monsoon / Chinese new year / hunting season etc.). Is the existing capacity of harbors and other material handling facilities adequate, can these facilities support the construction effort, or do we need to provide additional cranes / forklift trucks / storage areas etc. Are temporary / permanent access roads / airfields / railroads required, will they be maintained, removed at project completion, when will they be installed, who will install them contractor or owner. What is the conditions of existing highways / roads / bridges / head clearances under bridges / weight capacity of existing bridges / width of road etc, does any work need to be done on these facilities that needs to be estimated.

Field Labor Topics and Issues • • • • • • • • • •

•

Will we need to hire a large percentage of third country nations (TCN’s) because the local labor force lacks welding and electrical installation skills? Do we need to establish temporary housing camps? Will we need to establish a cafeteria / camp to feed the workers. What are the safety requirements for the project (hard hats – goggles)? Will we need to bus the labor force to the jobsite? Will we need to buy or rent vans and buses for the duration of the construction effort, what about servicing of these vehicles. Will we need to erect change rooms for the workers? How will we handle small tools / consumables? Make inquiries on the local economic environment with respect to projects effect on wage rates and worker availability, are any other large construction projects planned. Carry out a labor (skilled and unskilled) cost and availability evaluation, is this a union construction project, obtain the names and location of union locals / halls in this area, obtain copies of all current union agreements / obtain current hourly wage rates / rate expiration dates, special working conditions, talk with local union business manager. If this is an open shop construction project, determine the prevailing wage structure in the local area by carrying out a labor market survey, can we use merit shop contractors. Meet up and thrash out with local contractors / state employment departments construction skilled and non-skilled worker availability.

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• •

Weigh up worker commuting distance that may limit the hiring of qualified workers, will per diem costs / travel expense is required, will transportation need to be provided, i.e. vans or buses. Is ample hotels / housing / rental property obtainable in local area for contractor professional staff members and field construction force, do we need to pay per diem’s / travel allowances etc to attract suitable workers.

Temporary Construction Facilities and Site Utilities • • • • • • • • • • • • • • •

Are temporary water storage ponds requires Do we need to establish brass alleys, parking areas, lay down areas? Can we use the permanent housing on the project as temporary housing for the field construction workers? Do temporary facilities such as washrooms, change rooms and toilets currently exist, will these need to be established and maintained. Is an adequate amount of electrical power available or will temporary / portable electrical services be required. Will there be a need for temporary barricades, partitions, lights, flagmen and traffic control. Field inspection / NDT X Ray testing facilities, will these be required. QA / QC issues how will this be handled. Is potable / drinking water available were is it located and what work is required to bring water onto the site, what is the cost of this effort. Are existing buildings / facilities available for temporary construction use i.e. storage or temporary offices, can these facilities be utilized during the construction effort. Can any of the permanent / completed buildings / facilities to be constructed be utilized by the contractor on a temporary basis during the construction effort. Will the contractor be required to provide temporary storage / office space / services / staff for owner personnel and future use. When the project is complete will the owner take over any of the contractor’s temporary buildings / facilities / warehouses or must the contractor remove these temporary facilities at the completion of the project. Which organization provides temporary / permanent office equipment furniture, computers, phones supplies, copy machines etc. Do we need to set up and maintain a pipe and structural steel facility?

Local Site Specific Conditions • • • • • •

Are any temporary / permanent road , bridges required for the construction effort? Will we need to drill water wells, can we use river water during the construction effort? Will any established pipe / structural steel fabrication facilities be required, will these be left behind for future facility operations? Will we need to establish any fuel storage facilities for refueling construction equipment? Will we need to consider the purchase or rental of helicopters or fixed wing aircraft during the construction effort? Is there any likelihood for union / non union tribulations / sabotage between plant operating personnel and the potential non union construction workforce, does

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• • • • •

contractor need to establish a separate entry gate into the site, is this a ”right to work” state. Are there any restricted / no go areas that the workforce can not enter (clean rooms, manufacturing areas etc) Is any winter / dust protection required, are temporary shelters, visqueen partitions, special clothing required or specific weather / dust protection to the existing / new facilities Is the new project within an operating plant / facility, what special working necessities / practices are required, safety needs (hard hat, safety glasses, safety shoes), hot work permits and weekly or random drug testing. Communication requirements i.e. telephone / fax / internet / e-mail / walkie-talkies / video conferencing. Will there be a need for helicopters or fixed wing aircraft.

Equipment (Construction) Third Party Rental • • • • • •

Will there be any problems mobilizing equipment onto the job site i.e. pipe racks, gates, port / ocean logistics, width of roads, bridges height / length of equipment, overhead electric lines, fence removal etc. Will temporary foundations, hard standings be required for heavy lifting equipment (gin poles). What construction equipment will the contractor provide, should we hire / consider local equipment or will contractor owned equipment be utilized. Identify unique types of construction equipment the contractor must supply, barges; pipe bending equipment, orbital-welding machines, concrete pumping, slip forming equipment etc. Will construction related equipment maintenance / repairs be handled in on-site, how will this be handled. Will we need to establish concrete batching g plant (silo’s. mixer etc)?

Subcontractors, Vendors and Local Material Suppliers • • • •

Obtain names, addresses / telephone numbers of local vendors, suppliers and specialty construction sub-contractors. If time permits visit some of these firms. Is there a source of ready-mix concrete nearby, what is the plants daily production rate, can it meet our QA /QC specifications, what is its unit price of various grades of concrete, i.e. 3,000 and 5,000 p s i. Do we need to consider / establish a facility for site manufactured concrete and structural steel and its subsequent removal? Will any bar coding requirements be required / J.I.T. warehousing.

Health, Safety, and Security Issues • • • •

Will full time / part time security / guard force be required, or can we utilize the owners guard force. Will there be a need for a full time safety engineer / manager. How will we estimate the field office administration staff, together with copies, drawings, telephones, fax’s, furniture and stationary? Will construction staff / workforce be exposed to toxic harmful / chemicals / materials, how will this be handled. 18

• • • • •

Will special protective clothing / equipment / training be required at the site during the construction effort? Will fire watchmen / protection be required during the construction effort or during shut downs Will TV monitoring / security fencing be required during the construction effort, will work force be subject to drug testing. Medical support will it be required (doctor / nurse / first aid staff) at the construction site, full time or part time. Does the cost of medical facilities, school(s), training facility, commissary etc. need to be included in the cost estimate?

Unique Conditions of Overseas Capital Engineering / Construction Projects When an employee is transferred to an overseas country he or she generally goes through a degree of real or imagined inconvenience. The minuses of working overseas are. 1. 2. 3. 4. 5. 6. 7.

Lack of home comforts / family pressures. Lack of family contact. Contact with friends occurs. Personal difficulties / new situations. Likely risks and challenges. Cultural shock. Work pressures (not unusual to work 60+ hours a week)

The pluses of an international work assignment include. 1. 2. 3. 4. 5. 6.

Increased job responsibility and experience. Interesting job assignments. International travel. New challenges, friends and experiences. Increased earnings. Completion bonuses.

The intent in staffing an international project is to provide equitable compensation to the employee to offset real and financial disparities during the assignment. Engineering, procuring and constructing a chemical plant / manufacturing facility in an overseas country present many out of the ordinary challenges, these include, from a capital cost estimating point of view the following: 1. Availability of English speaking managerial, technical and administration staff. 2. Any restrictions / limitations on the use of expatriates / third country nationals during the Engineering, Procurement and Construction phases of the project, what are the needs for visa’s, work permits and temporary residence. 3. The overseas country’s historical bonds and current relationships to North America and Europe, examples of this is that when doing work in Africa such as Togo the language is French, the local construction industry follows the French methods / model. Research the current political climate / stability and how these major issues will impact the engineering / procurement and construction cost and schedule, 19

questions that should be raised include, (a) were should the detailed design be completed, can it be completed locally, should we consider the least expensive engineering location, i.e. Indian, Venezuela or China, (b) were should the procurement effort be in North America / Western Europe or (c) in host country or adjacent country. 4. Appropriateness and availability, together with the cost of expatriate TCN’s / local personnel, and of local qualified skilled labor. 5. Bulk and engineered materials / major equipment were will we obtain these materials and major equipment items. 6. Host Government political agenda, rules and import / export regulations. Does host country impose / mandate local purchasing requirements. 7. Exchange rates / fluctuations in currencies, banking regulations, bank transfer rules, payment terms and conditions, is bid to be expressed in US dollars or in local currency. 8. Understand the countries local economy / engineering, construction contracting methods and practices. 9. Be aware of labor productivity V’s North America and Western Europe, i.e. productivity could be anywhere from 2 to 3 times the US Gulf coast. 10. Imported or domestically produced major equipment, QA / QC issues, plus a whole host of other issues, and last but not least the size of the contingency fund and how it will be expended. 11. Local taxes, import duties, sales tax, VAT taxes, B & O taxes and local tariffs. 12. Local country incentives, tax holidays, low cost loans and local inducements / incentives. 13. Government monitoring / special documentation. 14. Availability of U.S. Government investment insurance or other ones such as COFACE the French equivalent. 15. Are there any anti-trust / trade restriction practices currently in effect. It is prudent to be on reasonably familiar terms with the history, key events and general background of the specific country and the proposed CAPEX project, this will hopefully smooth the progress of better public relations and enhance understanding by the local populace. By being on familiar terms with the country’s potential industries / business / growth prospects will many times enhance current and future forecasting, estimating, planning and future potential work. The strategic planning / risk tolerance and the decision to invest / pursue work in a specific overseas country is typically made by corporate management, any related venture / investment costs should were possible be incorporated into future proposals / capital cost estimates to recover this overhead / development set up cost. Perform a detailed market research of the targeted country prior to establishing a presence. Developed countries (1st and 2nd world nations) usually contain the basic infrastructure (roads, harbors, airports, telecommunications services etc,) necessary to support a new capital project, while less developed countries (3rd world) lack this basic infrastructure (lack of major roads, harbors, water, electricity etc), an understanding of this situation and the logistics of working through these problems coupled with the financial ramifications of this situation needs to be fully understood and valued and incorporated into the business start up costs or proposal / future capital cost estimating efforts. While constructing or functioning in an overseas country, care must be taken to fully conform (learn the rules and play the game) to local regulations / bureaucracy and practices, business procedures and applicable country laws. Underdeveloped countries

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(Third World Countries) of which there are many, i.e. some countries in Africa, Asia and South America, many times these “projects” must in many ways be self-reliant / autonomous. Many times it is very beneficial to conduct a pre-estimating / proposal survey to establish if qualified suppliers, vendors and contractors are available locally and what materials, major equipment must be imported into the country / or fabricated in the country and what are the requirements to do this action. To have a successful project the project team should have a reasonable knowledge of the local contracting traditions / customs and business practices. Transferring staff overseas for an extensive duration will necessitate some essential front-end training. Each and every staff member is not appropriate for an overseas project assignment; each potential applicant should be conscientiously evaluated / considered and equipped / trained for his or her foreign country work assignment. A lot of countries have fashioned / formed economic links / associations or have profitable / commerce amalgamations such as the European Union (25 + countries), NAFTA, ASEAN, etc: Importation of goods, services, materials, equipment and labor from inside the economic market area will be financially beneficial than importing from the outside, due to no import duties / tariffs being levied. A number of countries have a lot of public / religious holidays and additional officially authorized vacation days, four to six weeks is not unusual in some European countries, i.e. Norway, Sweden and Denmark, work ethic, productivity, sick time and a some what limited appreciation / respect to practical completion / schedule compliance (it is difficult to actually finish a project, it seems to drag on for ever) this should be considered and understood when compiling the proposal / cost estimate. Serious consideration should be given to importation of goods and services / customs clearance, paper work, documentation and inspection QA /QC activities when compiling the cost estimate / planning the schedule for engineering, procurement and construction, major equipment, means of delivery equipment engineered and bulk materials delivery and ocean freight logistics if required and insurance requirements, this ”freight” item is many times understated and is many times delayed, local customs officials are “sticklers” for original / certified forms, importation documents, importation certificates , bills of laden, insurance coverage etc, getting this freight situation right will dramatically assist the ongoing project execution effort. Deciding on the appropriate employees for a foreign country project should be balanced by the following important attributes: • Previous overseas experience and enthusiasm. • In depth job knowledge. • Age, an individual with at least 7 years hands on experience. • Rolled up sleeves attitude / ability to get things accomplished, • Being a team player, having the ability to get along with other team members. • Health status / ability to travel to various overseas locations • And current family situation. The front-end investment cost to mobilize / de-mobilize an employee to a foreign location is exceptionally high. In many cases it may be prudent to send third-country nationals (TCN’s), i.e. Indians, Egyptians, Turks etc, or to employ local citizens, these individuals are much more cost effective. The challenges mentioned above will be significantly enhanced in a country with an identical / similar ethnic mix, North American or W. Europeans working in Europe or N. America, for example in the middle east this situation may require, women to wear dresses / robes “burka” that cover all parts of the body in public, women are many times not allowed be part of the workforce, divided / separated

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living quarters, expatriates not being allowed to drive, separate dining facilities, and different work schedules, such as working on Saturday and Sunday. Several religions require their followers to dedicate more time to services than others. For instance, some Moslems pray five to seven times a day some of these prayer times are in there normal work day, in the middle east you will hear the call to prayer many times during the day and you will observe a line of worshippers going to the mosque, many times a mosque may need to be established at the construction site. Also in this part of the world it is normal practice to take a two-three hour mid daybreak, and to work until 8:00 PM in the evening. In addition, their holy day is observed on Friday. These situations must be considered when compiling the proposal or capital cost estimate and when executing the project. Time and again on an overseas project documentation / communications will be in English, (English is considered the major business language) if this is the case there is usually no extra cost to include in the capital cost estimate. Nonetheless, there are situations were the project documentation / correspondence is conducted in two languages, i.e. one side of a drawing will be in English the other side in the local language, this adds costs to the project that must be established / estimated and incorporated into the proposal / capital cost estimate. In some counties it will be required to utilize the services of chauffeurs, again this cost will need to be established and included in the capital cost estimate. Many countries have restrictions / limitations on what can be imported into that country. This is done many times to protect the local manufacturing community, an example of this is were the host country requires 80% local produced materials and equipment, even though the local manufacturing community can not produce this stipulated percentage. The above items are not all encompassing, when compiling an international capital cost estimate. The requisite to be able to speak / write in the local language should be based on the persons assignment duration, title, and extent of interaction with the local construction community and work force. Local language courses prior to and during the project will assist the project by cultivating contact with local enterprises and the local workforce, minimizing conflicts, optimizing cooperation and enhancement of project productivity. The proposal / capital cost estimate for expatriate professional staff have got to take account costs for acquiring and maintaining the following activities and support services: 1. Entry visas and work permits and for the administration organization performing this activity. 2. Medicals for staff and family members. 3. Insurance costs, medical, life, automobile. 4. Supervision / senior staff members. 5. Logistics, (trips back home) trips to other business locations. 6. Tax equalization U.S., and local country taxes. 7. Income tax exemption, use of big “five” accounting firms / support. 8. Business travel and emergencies trips back home. 9. Training expatriates and local staff. 10. Orientation costs / hand books / new hire meetings. 11. Regular / emergency medical treatment. 12. Home maintenance compensation. 13. Schooling for expatriate children. 14. Local transportation, company car, allowance or a low cost loan. 15. Furniture rental. 16. Completion bonus. 17. Local insurance costs.

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18. Local driving license. 19. Transportation of household goods to country and back to home country. 20. Local housing / hotels / camps etc. 21. Company / personal cars / vans, transportation to the jobsite. 22. Vacations, work hours, public holidays etc. 23. Transfers back to home / country. 24. Fees / taxes related to leaving host country On major EPC capital projects located in remote regions of the world temporary housing / or pre-fabricated housing units may be required or be part of the projects deliverables, some times this temporary housing is used as permanent housing by the staff eventually operating and managing the facility. Housing may be of varied types and cost, depending on employee’s rank, vocation / profession, importance to the project, length of assignment and family status. The above-mentioned temporary / permanent housing must be completed prior to the start of the construction effort (many times a pioneer camp will be established to house the initial – say 100 staff), it is usually a critical path item, many times pre-fabricated / modular housing units are utilized. Staffing requirements and needs (both imported and local) should be carefully considered. Some overseas counties impose penalties for releasing / firing employees prior to a preestablished completion date. A number of countries require a sizable completion bonus for all local employees, this may be a week or a couple of months salary, again this has to be considered when compiling the proposal / capital cost estimate. A tuition / education contribution / allowance may be required granted to senior married expatriates who have to send school age dependants to an in or out of country school, this can be a very expensive endeavor, school fee’s trips home, books, visits, telephone calls, miscellaneous expenses etc. On some large and isolated projects where expatriates are with there families in a camp type setting a project related school may need to be built / established, all the associated costs of establishing and operating an ongoing school, i.e. teachers salaries, admin staff, school buses, school equipment etc, will need to be estimated and included in the overall capital cost estimate. To be successful in the international EPC arena we must consider the following items / topics and ensure that the specific cost elements have been incorporated into the estimate / proposal. If the above and following topics are carefully considered they will save the capital project a lot of wasted effort and possibly dollars, pounds, francs or whatever currency, which is the main goal of all cost estimators / estimating engineers. 1. Carry out a wide-ranging project specific survey of all cost elements that will impact and influence the final capital cost and schedule. The survey may be used for auditing contractor and owner costs, future benchmarking and for analysis of cost estimates prepared by local suppliers, vendors and contractors, consider items such as O / M manuals needs, spare parts / capitalized spare parts, local staff training / operator training, vendor assistance, productivity differentials, public holidays, vacations, all-in hourly rates, camp establishment costs, catering, productivity and work week V’s U.S. / European norms. 2. Generate / compile a precise and comprehensive capital cost estimate covering the total scope of work to be performed including all engineering, procurement and construction / start up elements, refer to the four step approach described in section A 2 for additional details, develop a “basis of estimate” (exactly what is included / excluded from the estimate, drawings and specifications). Import

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duties, local VAT taxes and tariffs must be meticulously researched and calculated. Current and forecast of “project currency rates”. Understand existing and possible / altering customs rules / regulations. 3. Be conscious / cognizant of local customs, federal and local government bureaucracy and business / construction methods and practices. 4. Ocean freight and insurances costs, inland transportation costs, the cost of fixed wing aircraft, helicopters and the ongoing cost of operating this services may be required and if this is the case the a budget will need to be established 5. QA/ QC requirements and testing agencies Lloyds of London, DNV etc. 6. Importation of specialized labor, i.e. stainless steel welders, instrumentation mechanics – use of TCN’s such as Indians, Turks and Egyptians. 7. Specialized transportation requirements, large cargo planes / tugs and ocean going barges. 8. Establishment of a concrete batch plant, together with appropriate transportation equipment. 9. Importation of construction equipment, trucks, earth moving plant, specialized welding equipment and the maintenance of this equipment. 10. Develop a genuine interest in local history, food, culture, and religion; don’t get into deep discussions on religion or politics or the merits of how things are done in the North America or Western Europe. 11. Be a team member treat others as equals, socialize be friendly with the local team members. Cultivate a good personal / business relationship with local authorities and the local community. 12. Gain knowledge of and speak the countries language, this is greatly appreciated by the locals. Select the right staff and positive personnel management of this staff is one of the main solutions to project success. If this can be accomplished correctly a large number of other problems can be mitigated. International projects for all intents and purposes use the same basic principals that are employed on North American domestic projects; however some of the points raised above should be of help when compiling an overseas estimate or bid.

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SECTION A - 6 VALUE ENGINEERING / CHANGE ORDERS / CLAIMS AND CONTINGENCY ISSUES The fashionable phrase(s) that are bandied around and that are getting some mileage in the EPC engineering / construction industry in the last five years include: • • • • •

Cost containment. Cost cutting. Out-sourcing. Right sizing. Downsizing.

Value Engineering is about reducing unnecessary costs and expenditures. Think “outside the box”, if you were spending $20 million on a new building and it was coming out of your pocket you would have lots of questions, why are we doing this and why are we doing that, the focus of Value Engineering is to get the most “bang” for your buck, while still getting an attractive, functional, quality built facility, that is safe for the people working and visiting the facility. Value Engineering is defined as a structured attempt at optimizing designed facility configurations / size, design intent and needs, materials of construction, facility operations / operating equipment, with the goal of providing the best facility possible while paying the most economical price for the completed facility, at the same time of designing and constructing the facility that meets the organizations, safety, reliability, maintainability, quality and possibly future expansion goals. There is an enormous pressure from both owner and EPC firms to contain costs. All these terms mentioned above have connotations with the term - Value Engineering, the question is can Value Engineering help in the engineering and construction process, usually the answer is yes, if the detailed design effort is less than say 75% complete, then Value Engineering can be a major help in maintaining and possibly reducing a CAPEX budget. Value Engineering has evolved in the last thirty years – it has become a last resort many times when projects are about to go over there budgets; Value Engineering is basically a front-end activity that result in real project related cost savings. Value Engineering is best summed up as a methodical approach to providing an optimized design and construction solution(s), without forfeiting quality, reliability and of course safety - without incurring unnecessary additional cost(s), and of course in meeting the needs and expectations of the end use, a good example of this is purchasing a car you could buy a Porsche at $70,000 or you could buy a Ford Taurus at $20,000, both car will get you to were you need to get to, both cars are safe and reliable, so it basically come down to personal preference, buy a Ford and save $50,000, it’s your call. Top five reasons for poor value in the construction industry: 1. Why change now we are making a profit. (The answer to this is that the company could perhaps make more money by utilizing this concept). 2. Communications, the construction industry is plagued by lack of or mixed communications, you’ve heard the old saying “nobody told us.” We were not in the loop.

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3. We have never done this before, engineers / construction workers are reluctant to embrace new ideas and concepts, we could put ourselves out of a job. 4. Planning, nobody thought through at the beginning of the project, we never considered the concept. 5. The perceived idea that there is not enough design data available at the early stage the project The fact of the matter is that any early “mini” value engineering session / brain storming session (perhaps half a day –focusing on the “big ticket” items at the early stage of a CAPEX project can result in savings of perhaps as much as 5% or more. Time and again when a capital project is in trouble, i.e. going over its budget the “call” will be for Value Engineering – it seems like this is the panacea that will cure the problem and many times it will. However many projects just pay lip service to Value Engineering, they say they do it on an ongoing basis, however if the conducted a formal 2 or 3 day Value Engineering with all the key players, they could realize big CAPEX cost savings. Value Engineering is best summed up as a systematic approach to providing an optimized design solution(s), without incurring unnecessary cost, in meeting the needs of the end user. Value Engineering is a function oriented systematic team approach used to analyze and improve value in a product, facility design, system or service. The term value engineering is being used more frequently in the construction industry. Value Engineering (V.E.) is an organized, across the board review / practical “team” activity that is focused at the initial concept / preliminary design of a specific project / manufacturing approach and to optimize the elements within the total design deliverables package. The purpose of V.E. is to develop a new approach, better / optimized design that will generate the optimum life-cycle operating costs / afford the maximum value at the same time as focusing all safety, economical, quality, operability, maintainability, resilience, and other operating goals / criteria created and established for the project / specific process. V.E. is applicable to, • • • • • • •

Manufacturing, Products, Parts and Services. Chemical Plants / Process Facilities / Administration and Public type buildings and support type facilities. Energy Consumption. The purchase and utilization of raw materials. Systems and Operating Procedures. Your own personal budget. Plus a host of other topics, there is really no end to the cost saving ideas that V.E. can generate.

Value Engineering (VE) is not engineering / design review or a cost reduction application. Value Engineering is an innovative organized effort which analyses the needs of a CAPEX project with the goal of reducing capital expenditures, expense related values, soft costs and eventual operating costs. Value Engineering is additionally a most important instrument at the outset of a project in developing / optimizing the concepts / designs to meet a specific budget, V.E. is best when the design deliverables are in the 10% - 50% completion range. The expression value engineering (V.E.) is many times allied with a project, manufacturing process or product that is in its early development stage. In contrast, the expression value analysis (V. A.) is interconnected to value evaluation / review of a product that has been designed and is in its production / operating phase. Value

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Engineering provides an incentive to the design team to search for cost effective design choices, examples of this thought process include some of the following. • • • • • • • • • • • • •

Materials of construction, plastic pipe V’s carbon steel V’s stainless steel. Differing layout(s) - (tighter area utilization of the tank farm – possibly saving piping / electrical runs). Rent or Own the facility. Different location, operating costs in S.E. Asia are significantly less than operating costs in North America or Western Europe. Different manufacturing solutions. Utilize a smaller facility footprint. Reduce automation costs and I/O points were possible. Locate facility closer to existing roads / parking areas. Toll manufacturing (use third parties to produce key ingredients). Optimize OPEX costs. Gravity feed tanks housed in building, V’s dedicated tank farm. Exterior walls use facing brick V’s Pre-cast tilt up wall system V’s metal siding. Plus 100’s of other technical solutions, some more of these ideas are discussed below.

The term Value Engineering is related by way of the “life-cycle “costs of a building or other related items, how long will the building remain in it’s production mode, what are the operating costs, what are the costs associated with water, steam, electricity and maintenance. Value Engineering is a positive money saving methodology / procedure that needs to be presented to construction professionals (perhaps 20% - 40% of the construction profession has been introduced to Value Engineering concepts) by an individual who has significant hands on knowledge and education in this topic, a Certified Value Specialist (CVS) would be a real plus or individuals that have conducted perhaps 10 plus V.E. studies. The headlines of Value Engineering are described in the following brief write up, the basic philosophy and steps that are outlined below are appropriate to all types of CAPEX construction, attaining a basic appreciation of the concept / principals of V.E. can be tremendously valuable to cost estimators / cost engineers, it’s another skill that they can offer to there employers. Realizing and achieving optimum cost value / cost containment / profit enhancement is a major goal(s) - objective of all estimators / cost engineers, it a good feeling to bring real cost savings to a CAPEX project. The listings below are some types of costs elements that are linked / allied to the construction process. The V.E. group should be made up of personnel with different skill sets i.e. civil, mechanical, electrical, project controls, purchasing, operations, safety etc. etc. to obtain an expansive assortment of new concepts / ideas. The V.E. facilitator / leader should endeavor to set up a date and location (2-3 days is the best duration for a V.E. study). The V.E. facilitator / leader as well creates the agenda and the ground rules for the creativity / brainstorming discussions and also presents the V.E. big picture – i.e. (competitive environment issues, if this was your money how would you spend it) including concepts and overall path forward, the V.E. facilitator / leader should not be domineering or try to force pre-conceived concepts on the team, he or she should be open to new ideas. Discussions should focus on topics such as possible out-sourcing, value to the customer, cost cutting and cost synergies as they relate to the overall concept of Value Engineering; discussions should focus on engineering, procurement, construction, energy usage and future operating methods and costs.

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The procedure to create a good number of brainstorming ideas is as follows (the more ideas the better the V.E. savings in most cases). 1. The establishment of a well rounded / diverse team (10 – 20 individuals is about right number for a two to four day V.E. / COM effort). 2. Identify the issues; describe project goals – budget, major milestones and the current project path forward (note this path forward can be modified to optimize the CAPEX project). 3. No criticism / we all walk away from the session as professionals and friends. 4. Generate a receptive atmosphere, were here to help the CAPEX project and the project team to be successful. 5. Encouragement of “free wheeling” off the wall thinking, what would be the benefits of using a “toller” to make 60% of the products, this idea might cause so of the future operators to be concerned, because it could eliminate jobs, but it needs to be raised. 6. Generation of a large quantity of brainstorming ideas is the secrete of success. 7. Use these ideas to create more value saving concepts; it’s like a snowball effect. 8. At the conclusion of the 2 – 3 day session, chart a path forward using these ideas to bring value to the client. Set up a list of tasks, with dates, put names of individuals who are responsible for coming up with a conclusion – recommendation and a path forward. The V.E. team participants should be at ease in articulating and considering any cost saving idea that comes to mind, even if the concept / idea may perhaps happen to be outlandish to the other participants, don’t immediately dismiss it. The logic and rationale is that an improbable - outlandish idea may be the “light bulb” that opens up Aladdin’s cave on future cost savings. The phases of the V.E. process are as follows. (A)

The current game plan – sharing the design deliverables (drawings, SOW, cost estimates, specifications, execution strategy) with the V.E. team, all project data / information encompassing the project is pulled together and displayed on the walls of the room in which the V.E. session is being conducted (an overhead projector is used many times).

(B)

Functional Analysis. (Utilization of F.A.S.T. diagrams) The indispensable (basic) and less important functions / operations to be provided by the facility are recognized and discussed, is this required, could it be outsourced: Why are we doing this, do we need to perform this function is it necessary. What is the payback - value of a specific function: What are the functions concerning meeting the objectives / goals of the project / facility or product.

(C)

Set the stage and conduct what if scenarios, come up with diverse “brainstorming” ideas – spend at least 2 – 4 hours or more on this important topic. Remember the more ideas the better results will most probably be realized.

(D)

Pick the best ideas – assume 100 ideas were generated, select the best 30 ideas and move forward with them – this is the investigative / analytical phase.

(E)

Path Forward / Proposal / Formal Management Report. In this segment, the group’s suggestions are fine tuned / condensed for submittal to management, usually a round table discussion many times is also be given indicating what needs to be done next / action item list, who does what and when. The deliverables of the 2/3 day V.E.

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session many times will be a detailed written report, 50 -100 pages, documenting actions / possible concepts for saving CAPEX expenditures. (F)

Auditing / Ongoing Monitoring / Follow-up phase – revisit the action of the V.E. session in 30 days or so to ensure that the agreed on actions have been completed (or have been adopted).

Cost Optimization Methods (COM) / Value Engineering Procedures: (Additional topic to review during or after the formal Value Engineering study) • • • •

• • •

• • • • • • • • • • • • • •

Select the best manufacturing location; - perhaps at this time it is Eastern Europe, South America or S.E. Asia or in an existing facility currently being used. Consider manufacturing / process improvement, simplification and optimization (KISS). Ensuring correct / proven technology is chosen, why go with unproven technology. Adapt and customize current company SOP’s, standards and specifications to optimize the future EPC effort to deliver the project to customer at the lowest cost, while ensuring safety and quality of product matches or exceeds customers requirements, consider using “similar” design deliverables from completed “similar” CAPEX projects and modify them to this project application –this could save significant CAPEX expenditures if this approach can be utilized. Issue early works packages to minimize future escalation costs. Minimize disturbance at site and general work area (keep as tidy and as neat as possible during the construction effort) were possible to minimize disruption and a general loss in productivity. HVAC systems on any new facility typically are major cost drivers, consider ways of reducing HVAC costs, by use of different equipment / components, double / triple glazing, tinted glass, heat pumps, cogeneration, energy management systems and any other issues that could save initial capital and future operating costs. Consider modular / pre-assembly construction methods. Consider generating onsite electricity, i.e. solar, cogeneration or wind power. Review backup redundant utility systems and question engineering philosophy. Consider different architectural finishes and installation methods. Consider using gravity feed tanks housed in building, V’s dedicated tank farm (eliminate pumps / pipe / pipe racks). Increase / Decrease bay sizes, floor to floor heights, optimize support space. Use aluminum switchgear if this is feasible. Optimize automation methods and endeavor to reduce number of I/O points were possible. Use energy efficient equipment that conserves electricity, gas and water. Elevate facility building pad, to reduce excavation costs (cut and fill requirements). Locate facility / building closer to existing WWT, power and steam production facilities to save on pipe and cable runs. Plan flexible workspace for future visitors; provide “hotel” types work space areas. Use timers, dimmers and set HVAC thermostats to specific set points to reduce electricity usage and optimize were possible. Use natural daylight / windows / skylights in an effort to optimize electrical load.

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• • • • • • • • • •

Re-visit building insulation designs; consider best / optimum “R” value for walls and roofing systems. Re-route new or existing roads / rail spur to save construction costs and schedule, locate new facility close to existing services if possible, to save on piping and electrical runs. Can we optimize future long term operating (OPEX) expenditures, by reducing number of operators? Discuss with local utility / Power Company on ways to optimize electrical usage to save operating costs. Use cost effective materials such as PVC, CPVC versus high cost alloys. Design facility / building with sufficient employee parking space; be cognizant of local transport needs / bus stops / bike racks / unloading areas / handicap buses / van access and the general location of access roads to the new facility. Utilize used equipment / refurbished equipment / use pre-purchased equipment currently in owner’s inventory, purchase key spare parts with initial P.O. Consider future facility production / campaign increases and decreases to meet market demand and design to needed capacity / demand, can this plant be modified and expanded to increase future production needs. Conduct mini - V.E. sessions during pre-construction reviews / input from construction engineers during the detailed design effort to optimize the EPC effort. Plus many more cost saving ideas.

Cost Optimization Methods (COM) and value enhancement approaches: A number of leading “process” -, chemical, manufacturing, oil and gas, pharmaceutical organizations have put into practice the application of a “suite” of Cost Optimization Methods (COM) and value enhancement approaches to optimize their CAPEX capital project executions programs, this activity relates to front end planning, engineering, procurement, construction and eventual facility operations. This is basically an upgrade to the Value Engineering concept were the total scope of a CAPEX project is re-evaluated to see if additional costs can be “squeezed” out of the current scope of work. Cost Optimization Methods (COM): A front end project practice targeted at optimizing “hard and soft” Engineering, Procurement and Construction project related costs. (COM) practices are intended to enhance the value / worth of a manufacturing / production facility by reducing critical and non-critical scope of work items, by improving reliability and simplifying the manufacturing / production process. Topics that are reviewed and evaluated include in this methodology are: (1) Front End Economic / Business drivers, (2) Early and detailed Engineering / Design activities, (3) Procurement methods and approach to be used in completing the CAPEX project, (4) Construction techniques, (5) Project related “soft” costs, such as Start up costs, Owner Engineering / Construction support, Validation costs, F, F & E and Operating costs. Cost Optimization Methods (COM) and value enhancement approaches, to be performed during the following CAPEX estimating efforts: #

Estimate Type and Accuracy

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Initial Business Idea Basis - ROM, Blue Sky, OOM, Concept Study, Ratio Estimate type estimates (+/ -

Detailed Design Completion / Available Engineering / Estimating / Data 1 – 5%, Preliminary SOW statement, partial M.E. list, sketches, known location

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Suggested COM Effort Estimator / Project Manager / Project Controls / Project Stakeholders (minimal 2 – 4 hours)

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50% accuracy) Viability / Business Identification - PreDetailed Design Estimate Feasibility Estimate, partial AFE / Initial Funding Estimate (+/ - 40% accuracy) Funding Estimate Approve for Expenditure (Full or partial CAPEX funding ) – Semi-Detailed Estimate, Preliminary Control Estimate, AFE Full Funding Estimate (+/ - 30% accuracy) Project Baseline / Project Control Class (used as control tool) Project Control Estimate, GMP Estimate, A Not to Exceed Estimate (+/ 10% accuracy) Lump Sum - Hard Money / Lump Sum Proposal Estimate (+/ 5% accuracy)

2 – 10% all of the above, M.E. list, preliminary layout known, preliminary OSBL data.

Estimator / Project Manager / Project Controls / Project Stakeholders) (minimal 2 – 4 hours)

10 – 30% all of the above, priced out M.E. list, 40 - 60% CSA / piping / electrical completed, OSBL design 30 50% complete, perhaps 20% 40% quantity take-offs completed.

All the Project Stakeholders (0.5 - 1 day effort)

30 – 80% all of the above all of the above, priced out M.E. list, 60 - 80% CSA / piping / electrical completed, OSBL design 50 - 70% complete, perhaps 40% - 70% quantity take-offs completed.

All the Project Stakeholders (1 – 2 day effort)

50 – 100% all of the above all of the above, priced out M.E. list, 80 - 100% CSA / piping / electrical completed, OSBL design 70 - 100% complete, with perhaps 80% - 100% detailed quantity take-offs completed.

All the Project Stakeholders (1 – 2 day effort)

The (COM) approach should be considered as a “work in progress” list of planned, well thought out historical best practices, that encompass the entire CAPEX projects scope, COP when adopted can bring enhanced value to the completed facility. The following is a listing of these best value practices that should be considered during a CAPEX projects execution cycle. (These concepts have worked successfully in the past and there is no reason why they should be appropriate in the future). The five main features of Cost Optimization Methods (COM) are to financially enhance each facility by optimizing the following. (1) Improving Cost Performance – the final cost of the facility - compared to the approved / allocated CAPEX funds. (2) Optimize the Completion Schedule / Facility Start-Up V’s original planned start-up. (3) The Facility Life Cycle / Facility Function, (i.e. 15 – 20 years or possibly more life cycle). (4) Enhance the facilities Manufacturing / Production performance. (5) Perfect the facilities safety record (during construction and facility operations). These applications are appropriate to the following related projects

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• • • • • • • •

Onshore Oil and Gas Facilities Offshore Oil and Gas production facilities Pharmaceuticals Facilities and R&D Centers Power related Facilities (Coal, Gas, Nuclear, Wind, Geothermal and Hydro) Industrial Manufacturing Facilities Offices / Public Buildings, Apartments, Schools, Education, Housing Projects Infrastructure related Projects (Roads, Bridges, Tunnels, Airports, Ports and Railways) Pipelines / Water and wastewater treatment plants

The following 80 concepts / applications focus primarily on Manufacturing, Refinery, and HiTech type CAPEX projects, similar considerations and concepts should be considered and developed for other non-process related construction projects listed above. Ref # 1 2

3 4

5 6 7 8

Front End Evaluation / Economic and Business Drivers Are there any developing governmental rules / edits / directives / codes / changes in the pipeline that could impact this CAPEX projects economics or delivery? Does the current project scope fulfill the business / project / economic goals of the company? Have we considered and created various alternative and business solutions. Have we analyzed enough creative alternatives to make the best business case solution? Will this CAPEX project add value and create alignment between key business units and company stakeholders. Characterize if CAPEX project is critical to the business (this CAPEX project could influence future business growth and profits – a new product that could generate hundreds of millions of dollars in future sales and profit) or a non critical project – example upgrade an existing conference room / learning center, a noncritical CAPEX project this particular project will not really influence or drive future business’s growth and profits). Is this CAPEX project really needed at this time, can it be re-visited in three years, is CAPEX project critical to the future growth of the business, could we outsource this operation to a contract supplier? Has the company’s current value repositioning strategy been aligned with this potential CAPEX effort? Has the project objectives been mapped out and aligned to the current annual / business CAPEX goals and expenditure plan. Have we really examined all the issues related to the CAPEX projects physical location has a detailed survey been carried out, where economically is the best facility location. Have we considered other locations, do some facilities (mangers) have a vested interest / agenda that is driving this CAPEX project, is proposed facility close to current and future markets, do we have the ability to use established services and infrastructure at an existing manufacturing location. Consider local labor costs and will this reduce construction / operating and shipping costs. Review current (OPEX) resources. (Review current labor and manufacturing equipment resources and capabilities). Consider best long term investment options and if any local government incentives or grants / tax holidays are available to the proposed facility that could minimize CAPEX funds. Consider future facility expansions i.e. five to fifteen years in the future, i.e. infrastructure requirements and future operating costs.

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Can we manufacture / produce the end product in a different more cost effective way? Have we fully explored all of the manufacturing options available? Are the manufacturing requirements to restrictive or disproportionate? Can we utilize an existing facility / building is there room at an existing operating facility that could partially or fully meet the needs of the future CAPEX project? Does this CAPEX project align and support the company’s 5 – 10 year strategic business plan and goals: Does this CAPEX project deliver long term financial and manufacturing benefits and product flexibility to the business? Will the execution of this CAPEX project improve the organizations overall supply chain and manufacturing flexibility. Outsourcing / Third Party Manufacturing / Contract Manufacturing: Have we fully considered the manufacturing outsourcing option and determine if this is or a combination of third party manufacturing is the best path forward. Have we considered producing this product with a joint venture partner perhaps in there facility? What is the best physical location for this future CAPEX project, North America, South America, Europe or Asia? Were do we expect future market growth for this particular product? Re-visit basic CAPEX Investment drivers, examine (business case) subject matter / market research and return on investment decisions; does the business case make sense considering the global economic downturn? Determine if this is the best utilization of company’s capital expenditure funds (CAPEX) at this time, is this a business that the organization wants to be in, in ten years, or are new competitors chasing after this market, is there a sustained future for this product, would it be prudent to delay the “go” decision until the economy stabilizes. Manufacturing / Process Optimization. Consider reduction of redundant CAPEX investment (manufacturing / production equipment – use less equipment if possible, re-size equipment if possible, combine equipment), this could possibly have a “knock on” effect for future operations / maintenance, product wastage and minimizing operator headcount personnel and costs. Can we coalesce and “piggyback” / de-bottleneck off current manufacturing / production steps and possibly save CAPEX expenditures? Can future CAPEX project attract any State / Governmental financial assistance – grants, free real estate, infrastructure improvements, tax breaks, tax holidays, training assistance or any financial benefit that could improve the ROI, etc? Have we conducted a Risk Evaluation / Mitigation Study: compile list of project risks and develop ways of reducing risk with the CAPEX projects stakeholders. Is the manufacturing technology proven, or is the CAPEX project based on new / unproven technology, if new technology is to be utilized does the CAPEX project estimates reflect this situation both from a financial and schedule viewpoint. Re-examination of manufacturing / support systems, review logic of reducing manufacturing equipment / support systems, including maintenance / out of service time, consider outsourcing the maintenance effort if feasible. Can electricity, steam etc be obtained from a nearby source / third party? Is it more cost effective to produce our own electricity via a co-gen plant? Should we handle our waste water, or does it make economic sense to ship offsite. Does facility need to be “state of the art” from a process controls point of view, or can we save CAPEX costs by additional operators? Can the manufacturing process, packaging operation be optimized by perhaps outsourcing various production steps to a contract manufacturer? Is the CAPEX project execution team cognizant of all the perceived project risks

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and issues, have these challenges been described to the team members. Does CAPEX project have a critical drop dead date is it tied to a regulatory decree / market entry date that are driving this effort. Can the overall Engineering, Procurement and Construction delivery effort be improved? Engineering / Detailed Design Considerations Can we utilize manufacturing equipment currently owned and in storage / or not being utilized by company? Can we use any design work that has been completed in the last five years, instead of starting from scratch. Consider concurrent engineering and equipment / services standardization. Construction quality issues (QA/QC) over specified, make sure facility is not “over designed”, consider what our competitors are doing in there EPC efforts. Do we need detailed customized specifications or can we optimize the specifications we currently have and cut and paste to this project application. Specifications and procedures specific to facilities can fluctuate significantly as an example a warehouse does not need comprehensive (full blown) specifications – could it be built using the Design / Build approach, however a state of the art R & D center will need to have detailed specifications, the trick is to not fall back into the old mode – “we have always done it this way”, specifications and construction practices need to be reviewed every couple of years, to squeeze out unnecessary requirements and features ( a large chemical company use to have 20 + volumes of specifications and procedures, after a careful review it was found that they could build facilities using five volumes, this saved a lot of paperwork and significant administration and construction costs. Design cost effective offsite / support systems: Locate new facility as close as possible to boiler plant, cooling towers, sub station and other main services / utilities. Ensure good judgment is used in the selection of manufacturing / utility equipment to ensure minimum ongoing operating costs and down time. Use Industry Standards / Methods: Utilize off the shelf – generic specifications / standards and construction methods that are customized to the actual construction need and not above and beyond to the requirements of the project, use standard industry specifications (Construction Specification Institute - CSI standard specifications would be a good example of this if possible). Upgrade / Retrofit / Modernize existing company owned facilities: Can the proposed CAPEX project be “shoehorned” into an existing facility, possibly saving significant CAPEX expenditures and resources? Or can we purchase an existing facility that can be reconfigured to the CAPEX projects needs. Can we buy the Engineering and Procurement effort from a more cost effective country? I.e. Eastern Europe (Poland, Greece or Hungary), or S.E. Asia. (India or Indonesia). Architect – Engineering (A/E) Engineering, Procurement and Construction (EPC) Firm selection: Decide on the most experienced and cost effective A/E - EPC firm; consider future long term alliance relationships and future partnering. Use Best / Appropriate Manufacturing Technology: Consider new “manufacturing” technology were appropriate, however consider the “learning curve” if new technology is selected and the associated start up difficulties typically encountered with pioneer type CAPEX projects. Seeking out and won over to new manufacturing technology can be time consuming effort, ensure process guarantees are inserted into any purchase order specific to new manufacturing equipment. Determine if different / proven manufacturing process

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can be used or modified to produce the manufacturing steps needed. Does it make economic / business sense to utilize re-furbished, used production equipment for this CAPEX project? Owner project execution team: Select the best possible “owner” project team members (use in-house and consultant if necessary), conduct early kick off meetings and hold weekly status / update meetings to keep the team informed of project goals, issue MOM notes with action items needed by specific individual. Should the detailed design effort allow for future facility expansions? Future equipment foundations, pipe headers, etc. Ensure initial over-sizing of manufacturing equipment and redundant systems are not incorporated into the final design documents. Consider de-bottlenecking and future expansion plans in current design deliverables if appropriate. Make use of best Automated Drawing Production / Computer Aided Design (CAD - PDS vs. PDMS or other) and Project Controls (planning , cost reporting) systems: Make use of cost effective computerized design tools for the project engineering deliverables, consider using “E” Room technology, utilize best engineering / design tools that are most productive that can be used by owner team members. Draw on E Room systems for controlling issuing of project related deliverables, i.e. drawings, reports and other project specific documents. Right size / Over sizing Issues: Make sure adequate space / footprint is determined consider stacking manufacturing equipment, combine or optimize the manufacturing steps, eliminate unnecessary manufacturing equipment and subsequent process / manufacturing controls, i.e. by stacking tanks a number of pumps could be eliminated by utilizing gravity feed. Consider smaller facility footprints if feasible. Construction material selection: Make sure construction material optimization is considered and reviewed during the CAPEX project design effort, can all pipe be carbon steel, or can we utilize plastic piping were we use to use stainless steel pipe. Are we over designing the new facility is it to sophisticated, what happens if a key component goes down / to many bells and whistles? Manufacturing Product / Raw Material Control: Make sure Product / Raw material waste is considered and reviewed during the CAPEX project design effort, determine if waste can be re-worked and consider all possible Product / Raw Material reduction / optimization methods Carry out (one or two) Value Engineering (VE) / Cost Optimization Methods (COM) Programs: Undertake formal (VE) – (COM) (1 - 3 day) and develop ideas / concepts on methods of reducing CAPEX project costs and (OPEX) operating expenditures. Challenge current thinking, attitudes, practices and future operating philosophy Are we using specifications and installation procedures that are not applicable or appropriate to the current CAPEX project? Is the construction schedule well defined and mapped out against a predetermined manufacturing / handover schedule? Are there activities that could be streamlined or deferred? Procurement / Contracting Considerations Have all lease or buy opportunities been explored, have we considered procuring bulk quantities and free issuing to contractor. Can owner buy out critical equipment to save time and money? Can we get import duty / tax exemptions?

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Have we considered just in time JIT inventory control / materials management bar coding / leasing of key items / perhaps warehouse equipment? Have long lead items / critical equipment / production items been identified and are these items purchased or being negotiated? Are there any ways of expediting the delivery of these items? Have we mapped out the best procurement plan? Is it possible to obtain lump sum bids? This procurement approach is many times the most cost effective contracting approach; also consider incentive contracts / DB contract / Turnkey contracts. Procurement / early purchasing of long lead items / contracting strategy - (Utilize most cost effective procurement method to achieve the timely delivery of manufacturing equipment and bulk materials) The cost of materials, manufacturing equipment, labor, and professional services procured through construction contracts and purchase orders represents a substantial capital investment for all parties involved; optimizing the procurement effort can realize significant CAPEX savings. Develop generic procurement forms and applications that will meet all future CAPEX buy-out applications. Consider issuing deposits on manufacturing long lead items to gain a place in vendor’s production schedule or to jump the queue. Construction Management (CM) Select the most experienced and cost effective firm, consider future long term alliance relationships, if these make sense in the long term for the owner. Ensure that pre-printed / computerized “standardized” Purchase Orders / Contract Compliance / Contract Administration and Change Order Control Documents / Request for Information / Submittals Transmittal are available: This will greatly assist in future monitoring, controlling and auditing and will save both time and effort. Be sure to request unit prices / schedules of rates, Day work rates and mark-up percentages in all Requests for Proposal (RFP). Use as a negotiating tool and as a baseline / basis of controlling and minimizing extra work costs. Conduct an analysis of procurement and construction buyout issues and challenges. Examination of the engineering deliverables by practiced field construction staff to come up with different purchasing / construction approaches and methods to lower initial CAPEX costs and optimize the construction effort. Reassess various construction related indirect costs, i.e. field establishment, general conditions, field support / supervision, scaffolding, small tools, consumables, construction equipment, maintenance, repairs, training, safety, owner costs, commissioning, spare parts, vendor assistance, expense items etc. Evaluate methods of reducing and optimizing these costs, without compromising safety and quality of the completed CAPEX facility. We possible re-negotiate and reduce fees, mark-ups; multipliers and profit margins of various contracting / engineering consultants and vendors were feasible. Take into account the use of preferred vendors / suppliers, i.e. manufacturing equipment, pumps, instrumentation, pipe, fume hoods, electrical equipment, paint, valves, architectural items and roofing materials etc. Obtain significant “national” discounts were possible from preferred vendors by utilizing there products on all future CAPEX projects. Possible savings of 10% - 35% could be achieved. Consider outsourcing (of non-critical staff / engineers) were it makes economic sense.

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71 72 73 74 75 76 77 78 79 80

Review bonding requirements are they really needed? Review project insurance needs; make sure there are no overlap / over coverage related to the total projects insurance requirements (BAR, Umbrella, OSI, All risk, General Liability). Check status of various taxes (VAT, Sales Tax, Business & Occupation Taxes – B & O and any other applicable taxes) Check if these taxes are applicable, does company have a sales exception certificate, can VAT be recovered. Payment terms / Contractual issues (extended warranty, retention, process guarantees) Consider less onerous payment terms, 30 – 45 days is the norm, consider modifying contractual issues that impact the final cost. Construction / Execution Considerations Permits construction / environmental / various will they impact completion of the CAPEX project. Select the most experienced and cost effective Construction Management firm to support / direct the construction effort. If fast track construction methods are to be exercised does CAPEX budget have adequate monies for shift work, overtime, week end working, has productivity loss been considered, have additional monies been added to the Preliminaries / Division 1 budget. Are there any issues related to union or open shop labor work rules and precedents that need to be addressed. Is there an ample labor supply in the immediate area to successfully complete this CAPEX project? Demolition / Removal of Hazardous Waste Materials (asbestos, PCB’s, lead paint and mold) consider most timely and cost effective method of demolition and removal from site. Do we need to provide temporary offices ad maintain them for current operating staff? Can we obtain a credit for scrap metal or used process equipment? Take into account the use of off-site construction i.e. Modularization / Skid Mounted Pre-Assemblies / Piping / Modular walls / Structural components / Pre – Cast Concrete / Pre – assembled control rooms. Project related “Soft” Cost Considerations How can we optimize and minimize the CAPEX projects “Soft” costs i.e. A/E fees, CM fees, Owner staff costs, travel costs, Owner CM inspection. Validation costs, Plant assistance costs, start up costs, initial start up materials costs, commissioning costs. Establish not to exceed budget that need senior management approval for over runs. Furniture, fixtures and equipment excluded these cost from capital budget, consider perhaps as an operating costs. Ditto for warehouse equipment / shelving / fork lifts and packers. Facility Operating Considerations How can we reduce operating costs and operator headcount? Are there any ways to reduce inventory / reduce storage time 30 days to 15 days / reduce warehouse footprint size. Can we lease required gas storage and similar necessary materials etc from a 3rd party? How can we optimize our utility costs? Consider ways of optimizing raw material optimization. Could we use a 3rd party to package finished products? How can we optimize the energy needs of the facility? Consider establishing one or two centralized global spare parts warehouse(s) for

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carrying an inventory of critical spare parts. The above listing should be used as a starting point in the Cost Optimization Methods (COM) process, add to this list were appropriate. The Cost Optimization Methods (COM) process is a continuous effort; questions and topics that need to be touched on and answered include the following. The benefits of Value Engineering / Cost Optimization Methods are as follows: •

The VE / COM effort never fails to produce real savings (both financial and time) specific to CAPEX projects.

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Provides value to the end user / customer and it also assist in the early planning effort:

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The VE / COM methodology described above is a proven and dependable method of locating high value cost reduction target that works from one CAPEX project to the next.

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Creates an audit trail / documenting savings, ideas can be used in future CAPEX applications.

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Brings into focus cost saving concepts with the highest potential cost impact, it is not just focused on construction, operating costs can be optimized:

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Reduces CAPEX projects cost by generating ideas that save money while maintaining design intent.

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Best time to do Value Engineering when detailed design is between 5 – 50% complete.

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Typical VE / COM meeting / study takes 2 – 3 days, with a detailed follow up report issued 2 weeks later.

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Typical number of participants that attend VE / COM session is 10 – 20, these people come from the Owners organization (Management and Operations), the EPC companies Project Management, Engineering, Procurement, Construction, Project Controls (Estimating and Planning).

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Documents used in the V.E. study, scope of work, execution philosophy, latest drawings, P&ID’s, latest cost estimate.

The Value Engineering Workshop Process: • • •

Set the stage – Project Manager describes project goals, project execution / schedule and cost. Understand project – V.E. group needs to understand the technical scope of the project by asking questions. Create improvement ideas - V.E. group generates cost savings or project enhancement / improvement ideas.

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• •

Evaluate and selection of best ideas - V.E. group participates and votes on these ideas. V.E sub groups develop cost savings from best ideas. Develop a path forward – Assign responsibility and timing needs to individuals to compete outstanding V.E. items

As was mentioned previously the reasons for poor value • • • • • • • • • • • •

Other responsibilities than project. Lack of time / pre-planning. Habits and attitudes (we’ve always done it that way). Lack of information. Lack of communication. Lack of ideas. Lack of experience. Failure to use available experts. Desire not to conform to new methods. Fear of personal loss. Not part of the big picture. We’re making a profit – why change now.

Claims / Change Order issues: Construction projects time and again involve multifaceted interrelationships among, owners, and design professionals, contractors / sub-contractors and vendors (that sometimes don’t work out as well as they should have – remember construction is all about communications), as a result numerous projects do not meet their original goals for time (completion date), final cost, quality and safety. Changes are to be expected in the construction industry (we are dealing with a team of people that have typically never worked together and who have a technical challenge of pulling together a complex engineering (design), procurement and construction effort on time and within pre-established budget, the variables are many, weather, labor, materials, interpretation of the owners needs) is it any wonder that construction projects seem to manifest disputes and delays, therefore the subject of change order and claims management is crucial if the contracting party is to defend his or her profit margin and business survival. Owners often initially refuse to go along with paying the cost of change orders and claims (there first reaction is NO!!! it’s included in the price, you included that in your bid!!!!). Contracting organizations typically do an inadequate job in providing evidence of additional engineering, procurement and construction costs. The reasons for change orders and claims are numerous, some of the main reasons encountered in the engineering / construction delivery process include. • • • • • •

Client / Owner requested modifications during the engineering / construction effort. Differing / Unforeseen field conditions, i.e. underground rock, bad soil conditions, hazardous / asbestos materials / interferences. Engineering discrepancies, we need the concrete design mix; we waited four weeks until the design team agreed to the concrete specifications. Scope of work additions (add a new wing). Schedule acceleration, the client is telling us that we need it built three months earlier - to hit the Christmas sales period. Acts of God (wind damage to foyer area); this will delay us by 8 weeks.

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•

Plus many more situations.

Analysis of a construction claim: the following is a listing of the steps that should be taken to pulling together a claim or change order; 1. Identify issue / dispute (overview). 2. Identify / collect more (appropriate) data, timesheets, invoices; e-mails etc i.e. relevant details that will be needed to support the documentation requirements. 3. Analysis schedule impact, compare to original program. 4. Determine cost of change or claim (collect relevant cost data). 5. Prepare interim and final cost impact of change / claim. 6. Inform relevant parities of cost impact. The contracting parties (Owner / Engineering firm / Construction Company and a host of sub contractors and suppliers)) must be able to provide a timely written notice, together with documentation of the cost and schedule impact of the potential / pending change order(s). The main goal of all parties is to construct the plant / facility to the agreed price / quality at the promised / stipulated completion date outlined in the original engineering / or construction contract. The topic of change orders and claims on any construction project can cause both serious personal (confrontational) problems and possibly significant budget overruns for all parties involved in the project construction process. This topic more than any others in the construction industry perhaps causes the most conflict between the “project team” players, due to the fact that change orders and claims typically run in the 2.5% to as much as 10% of the original total install cost (T.I.C.) of the project, people many times taken change orders and claims as a personal “affront”. The intent of this section is to propose a straightforward / path forward standard for implementing change orders and claims and to assist in supporting enhanced conformity among clients / owners, engineers, architects and contractors. (The project team – the individual involved in the construction process), and to gain acquiescence (buy-in) of this standard as a series of steps (in some ways similar to the four-step estimating approach described in section A 2) which will help construction professionals when faced with this vexing problem of change order(s) and claim preparation, submission and eventual resolution. A change order (refer to section A 2 for a detailed description) is written / verbal formal request “contractual instruction” usually compiled and issued following the execution (signing) of the construction contract to the contractor, signed / authorized by the individual named / nominated in the contract (the owners representative / project manager). This is the individual authorized to act for the owner the individual who coordinates and instruct the contractor to proceed with the performance of the work / change order (the individual who approves monthly pay requests, many times an Architect / Owner’s Representative / Project Manager / Clerk of the Works. Like in other industries there are always divergence of opinion / execution practices on how to proceed with change orders, (push them away, leave them till the end of the project etc) the best way to handle them is to resolve them when they show up and get them approve and out of the way – Change orders and claims are a fact of life. A Change Order is contractual document requesting a scope modification or variation; a written (formal) change made by the client / architect / engineer to the contract drawings or specifications or completion date. By and large, a change order must be agreed by the owner / client and the engineer / contractor prior to it becoming a legal modification to the contract, if the Owner refuses to approve a change order it usually ends up as the basis of a claim.

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Checklist of supporting documentation change orders / claims: 1. Understand contract language regarding change orders (read the contract language specific to change orders). 2. Issue immediately a written notice to Owners representative of any scope changes, amendments, changes conditions, additions or deletions or change conditions. 3. Make sketches, take video / or photographs of relevant work area that indicates changed condition or problem area. 4. Collect relevant drawings / revisions / specifications, red line changes, issue copies to Owner or related party. 5. Request advice from owner. (Document conversations, collect e-mails and any correspondence) 6. Create a change order specific file, assign number and collect costs. 7. Collect quotes / pricing details and make adequate copies. 8. Maintain complete set of drawings, specification, correspondence, minutes of meetings that assists in supporting change order / claim. Estimating and costing out the changed work: In estimating / costing out the changed work the path forward is define or scope out the work to be modified or changed, this includes. Analysis the current documentation, or produce the necessary back up materials; compile required take-off’s. Catalog and gather together the relevant drawings, cut sheets, shop drawings and specifications. Mark up / red line / highlight the changes on the drawings and specifications, cloud out changes. Transmit copies of relevant documentation to sub contractors / vendors in a form of Request for Quotation / RFQ if appropriate, stipulate when the pricing details needs to be returned, ask for alternates, and consider value engineering issues. Additional questions that must be considered when considering change orders / claims include some or all of the following issues. • • • • • • • • • • • • • • • • •

What trades will be impacted – all just one or two. Can we get this material on time in small quantities, will we have to pay a premium, shipping and handling fee. Supervision, does it need to be supplemented? Work space congestion, were can we store this material. Will change order impact other trades / sub contractors, will we need to demolish previously installed work. Clean up / Demolition of previous installed work. Material logistics. Re work issues. Winter working / protection / temporary heat. Overtime / shift work, will this be required. Material storage, offsite storage fees. Warranty extension impact, will this have a cost impact? Escalation of labor and material costs, new labor rates may kick in. Learning curve issues could slow the overall project, loss of labor productivity. Scrap existing installed equipment and construction work. Extension of time, preliminaries and site establishment trailers etc are at the project for a period above and beyond what we bid on. Job site overhead, warehouses, temporary toilets and administration staff.

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• • •

Construction equipment / downtime / idle period this could be part of the change order / claim because they are at the site longer than originally planned. Additional travel expenses / subsistence costs. Additional home office support to order equipment and materials.

The following basic cost items / terms are involved with the vast majority of all change orders and claims. • • • • • • • • • • • •

Recovery of direct costs (labor, materials and construction equipment). Recovery of indirect project / field related costs. General and Administrative Costs (H.O. support and field related). Overhead Costs. Contingency (Technical and General). Risk Allowance. Profit Margin, mark-up on vendors and sub-contractors. Time Extension. (Extension of Division 1 / Preliminaries / site establishment). Additional site establishment / preliminaries costs due to additional staffing needs. Possible relief of Liquidated Damages (L. D.’s) and consequential damages. Bond premiums / bonding capacity / additional insurance premiums (BAR insurance). Other related costs.

The modification / cost and time adjustment in contract price and completion date as a rule is discussed initially and informally between the parties to the contract, the contractor will many times accept an agreed to lump sum cost to perform the extra work, with a project time extension, (this is the best option) on some occasions the parties will agree to complete the work on a cost plus (time and materials / in U.K. and Europe this is known as “Day work” basis) this is another good solution the work continues to get done. The fundamentals / basics of direct and indirect construction project related costs have a wide definition (meanings to various constructional professionals); it is typically these issues and meanings / definitions of these “terms” which are the top of the list / focal point of change order problems / arguments / disputes. Direct costs are the costs of the permanent materials (major equipment, engineered materials and bulk materials), construction equipment, labor and subcontracted work elements that are permanent features of the finished construction project, which can be unmistakably recognized and assigned as a permanent asset. To create an satisfactory data base / understanding of this topic, it is required to recognize and list the fundamental basics of direct and indirect project construction specific costs (the following list attempts to itemize the major elements), it is left to the estimator / cost engineer to select which category the specific cost element should be assigned to. Hourly wage rates for various craft skills / laborers, payroll taxes, F.I.C.A. payroll fringe benefits, social security taxes, health & welfare contributions / applicable industry training funds, builder all risk insurance, wrap around insurance, apprenticeship training, industry advancement (union applications), tool allowance, travel costs / allowances, pension contributions (may not be applicable) excused absence, public holidays etc, indirect labor on and off site, construction equipment / rental (backhoe’s, welding machines mob, demob costs etc.), specialist subcontract work (typically painting, roofing, siding, electrical etc.), permanent and temporary materials (bulks / engineered) small tool cost (picks, drill bits, saws) project related insurance (BAR), project office supplies project consumables, grease, rags, welding rods and gases etc. telephone / fax communication costs, postage express mail, blue print machine, copying machines, permits, performance bonds, temporary services and facilities, clean-up costs, NDT testing of materials, temporary facilities, sheds and toilets etc.

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Permanent / temporary bulk / commodity materials, construction equipment (contractor owned and 3rd party) and specialist subcontract cost elements are typically easy to assign and calibrate, because many times there costs are itemized on invoices or are part of the companies internal financial reporting systems, they typically get invoiced per the CSI 1 – 16 divisions. On the other hand, labor costs are complex to determine and not easily itemized, unless special time card reporting / collection systems are established such as time cards with assigned cost codes. The subsequent topics itemized below listing specific scope situations should assist in distinguishing the number various factors to take into account when determining / collecting labor man hours / costs / productivity modifiers. The total work hours needed to finish a change order in regular circumstances / conditions can be estimated utilizing in house historical data, industry standard labor units etc. Fine-tuning / calibrating should be made for unusual / difficult or less than favorable circumstances that apply at the project site, i.e. working in crowded areas. A number of factors to be considered are. Client imposed delays such as failure to respond to requests for information (RFI) and failure to pay contractors monthly invoice, or late payments. Limited (restricted i.e. small items – like bobcats because of there size) usage of construction equipment due confined work area’s / tight work areas. Functioning in tight spaces / small rooms were space is restricted were numerous operations must be performed concurrently were it is just about impossible to use construction equipment. The workmen of several trades could become stacked in a limited work area creating a situation in which work cannot be done efficiently, interfering with concrete, brickwork, piping, painting, etc. Limited use of construction equipment, every thing needs to be man handled / triple handling etc. Man hour efficiency / productivity loss / worker burnout due to prolong periods of overtime / shift work effort can be a major problem. How will other work crews / crafts be affected due to possible demobilization / remobilization and congested work areas? Small order of say concrete, bricks, steel etc usually cost more due to the minor nature of the order, these costs need to be determined and passed on to the owner via a C.O. or claim. General attitude of the work force (positive or negative), construction professional and journeymen craftsman have an extreme sense of ownership / pride in their work effort and in what the finished product looks like (remember the 9 / 11 / 2001 WTC construction / repair / rescue effort). Change orders many times may possibly cause logistical related problems in the planned work sequence / program that many times require re evaluating and modifying the size and composition of the work crews / utilization of construction equipment, necessitating reallocating workers to other sections or hiring additional labor resources. Labor shortage / non-availability of skilled workers, due to substantial construction activity in a specific area many times will generate a scarcity / shortage of skilled workers which could have a significant impact on labor related costs, (you could be getting the 3rd team when really you need the 1st team) example after the 9/11/2001 WTC event skilled worker in the New York area were not available – they were just sucked up by the events and the huge repair efforts. Buildings exceeding three floors / high rise buildings / basement work, construction specific labor costs and field indirect costs tend to increase in high rise buildings this is still the case when temporary elevators / hoists / scaffolding are supplied, this remains the case when logistic support such as drinking water temporary porta johns / toilets are made available on every third or forth floor, the physical effort of getting to the construction work location impacts labor productivity, carrying materials up the building impacts the productivity, we have some data on this in the following sections.. Mistakes and knock on delays, when additional work is necessary because of the issue of a change order, many times the consequence on the base project / original contract scope is not as it should be, i.e. general

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momentum is many times lost or diluted, it is possible that this will cause field mistakes / re work and “knock on delays” which can be very costly to correct. Extreme weather conditions (hot or cold) impacts labor productivity, examples could include storms, significant snow / frost, heavy rainfall, high winds. Concrete, paint, drywall etc may not be installed in temperatures lower than 32 degrees F; heated aggregate, potable heaters, temporary partitions etc may be required; of course this has a cost consequence. Effect that change orders have on any bonus / penalty provisions or liquidated damages, should be carefully considered, why should the contractor lose out on a bonus just because the owner has issued a change order. Will the change order work be completed in the later stages of the project, will this impact labor and material costs, i.e. inflation, the materials and labor costs will most probably be more than originally bid, will the work be carried out in winter months, what impact will this mean, temporary heat, partitions and potential loss of productivity. Increased costs / cost escalation / inflation: When a new change order delays completion of the project, the additional costs of labor (increased wage rates), material, construction equipment and sub-contract work should be calculated and included with the change order value. Contract end date / time extension (additional Division 1 Costs / Preliminaries) each change order should be evaluated and estimated pragmatically (endeavor to capture all the cost items) and managed on a case by case basis to safeguard the current project / contract end date (or extended completion date). Fast tracking / accelerating the completion date could affect a decreased production rate / productivity / efficiency; a larger labor force may be required together with additional supervision. An authorized time / schedule extension (i.e. 1 week or 1 month) will typically produce extra project related overhead costs, the site establishment and the site staff will need to be at the site that additional period of time, this cost will need to be established by the contractor and passed onto the owner via a change order or claim. A change order producing a delay to the basic contract completion date will of course impact the construction project with additional costs to the Contractor (direct and indirect costs including H.O. and any loss of future potential profit). These above and beyond the current project related costs should be recognized (fully scoped out) collected and (estimated) priced out and included in the new change order value together with a time extension (if necessary) and presented to the owner. Acceleration activities, contractor is requested to accomplish a greater amount of work in a shorter time period, overtime, loss of productivity, supervision are typically associated with this situation. Partial facility acceptance occupancy or partial / staged transfer / partial start up of facility. When a change order delays completion of the project, this particular situation could result in the work being carried out after an area section / floor of the facility is occupied by the owner’s staff, security restrictions in specific areas, protection of (owner supplied fixtures / equipment) furniture, fixtures, equipment, inventory, noise, intrusion of owners employees / customers, dust protection and schedule issues could negatively impact worker attitude / productivity. Finance costs and any bank charges should be part of the change order or claim if the contractor in fact pays them. Rescheduling caused by change orders may postpone the completion and hand over of the project this may cause additional costs to the contractor by having to finance the project for a longer period of time than originally estimated / anticipated, retention funds could be with held for longer periods of time, this could also mean additional insurance premiums. Temporary protection of completed construction work: (Protection of previously completed work with tarpaulins, temporary heat, temporary partition etc). In certain shift work situations, auxiliary weather protection materials / heating / support systems may be required (salamanders / gas bottles, plus the labor to maintain and control this activity etc). Given that both shifts will be working on the same construction effort, there will be a specific ineffectiveness in the hand over from one shift to the next. The new crew will have to go through a learning curve with the work completed by the earlier shift. In view of the fact that both shifts use the same gear, tools and construction equipment, many times they will be in

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different locations. Overtime / shift work - grave yard (night work) versus normal daytime work, in view of the fact that the extra shift will be performed at night, ordinary light will not be on hand, temporary electric lighting will have to be made available / maintained, watchmen and perhaps[s other labor costs could be part of this activity. Typically temperature / weather conditions at night are more difficult to work, temporary heating could be required to allow paint / concrete to cure properly. Site management / field supervision shortages / restrictions (Additional site staff for short durations to complete the change order work): Construction field activities required and linked with the integration of a change order work and the work of the basic / original contract may entail a dilution / digression of supervisory attention from the original / basic contract work. At the same time as the project manger is evaluating the change order, man power loading craft workers, inquiring ordering / purchasing the additional major equipment, bulk materials, construction equipment and specialized sub – contractors resources etc. Field progress / labor productivity on the original / basic contract could be negatively impacted both from a cost and schedule point of view. Field supervision will be thinned out, because the existing supervisory staff must be extended over a number of different work shifts, makes the coordination difficult, as to work completed, what’s next, ordering of materials, deliveries, field orders, imagine the logistics of doing slip forming on a major high rise building, this is the sort of coordination that may be required. Successfully coordinating some or all of the above with the above issues should help facilitate the contractor to establish accurately the cost of executing the work that is necessary in completing the change order – collecting the relevant data and putting it on paper is the secrete of success, thought must be given to the knock-on effect of the specific change order will have upon the total execution of the total project, it can sometimes work to the contractors advantage to get a number of change orders and many times it will depended on the sophistication of the owner and his or hers knowledge of the construction process on how this will all work out. The construction industry in the twenty first century is more multifaceted and complicated than ever before. The quantity of issues concerned in executing even minor projects can be daunting, causing planning and scheduling to be difficult to say the least creating schedule stoppages. As a result, every contractor will be faced with delays, at the same time this delay / stoppage is the usually the responsibility of another party working on the project and puts the contractor in jeopardy to disrupt the customary operating methods / proceedings and impact the expect return on investment / profit margin, if this is the case the contractor will be obliged to issue a documented delay claim to the owner. The subsequent list of issues may impact productivity when work is performed on a shift work basis. Additional hard standings / special scaffolding needs / requirements, barricades, fences and the subsequent rental, erection and dismantling, having to prepare outside areas with stone / sleepers, etc for scaffolding support could result in additional costs incurred by the contractor. Extra support staff / additional logistical support: (Both H.O. and field staff) Difficulties can come about because of problems in ordering, purchasing and delivery of major equipment, bulk materials and construction equipment, to site etc., due to a new change order, how are these costs recovered. Increased overhead costs and inflation / escalation of material, labor and major equipment costs many times can also play a part in extra costs to the contractor. Deliberation must now be focused on commercial conditions, general and administrative overhead costs, in view of the fact that the general contractor’s change order will be compiled with many change order pricing submissions from a number vendors and sub-contractors, and because the terms and conditions, profit margins general and administrative overhead percentage uplifts in the construction industry vary widely, good documentation must be kept to support the commercial basis of the change order. A reasonable overhead and profit fee perhaps 10% – 15% should of course be part of the change order, it should be added / incorporated after all the costs have been collected together with the appropriate percentage for general and administrative overhead costs 5%

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t0 10% seems to be a value seen in industry, cost related to pricing out the change order should also be included. The change order should contain specific language for acceptance of a change orders. (Pricing basis is valid for 30 - 60 days after this time we reserve the right to re-visit the cost values, due to potential cost increases from our sub contractors and vendors related to price increase related to material cost and increased costs of labor and overhead fees) When a change order is not approved, the contractor should be compensated for all costs incurred in the study / preparation of the change order quotation, the cost of the estimating effort should be reimbursed. (Many owners will not like this statement, however many owners understand the work effort required by the contractor to come up with the cost of executing a change order proposal, phone calls, copies of specifications, memos, scopes of work etc – there is no such thing as a free lunch). Listing of construction field reports / documents that should be maintained, to support any future change orders and potential claims: • • • • • • • • • • • • • • •

Monthly job cost reports. Visitor log. Purchase order log. Sub contractor log. Commitment register: Timesheets Safety log Bid evaluation files. Daily construction equipment and usage report. Minutes of all meetings. Schedules and subsequent updates. Site superintendent diary. Photographs / videos. Correspondence files. Log of potential change orders / claims (PCO’s).

A claim is a request by one of the parties to the contract to seek additional payments and possibly additional time to execute the contract. Like all other situations in business, there is the right time and a wrong time to submit a claim to a client / owner, to just send it out of the blue is of course not a smart way of doing it, the client should have some insight to the claim, so it doesn’t catch them off guard. Reasons for a claim could be one of the following. • • • • • • •

Additional work (not part of the original scope). An order by the owner to stop or terminate the work. Underground earthwork conditions or concealed physical conditions (rock, underground conditions – such as pipes, electrical cables, that are not shown on the contract drawing, high water table). Change orders that substantially alter the intent and scope of the original contract. The owner’s failure to promptly reimburse / pay the contracting parties. The owner’s failure to provide timely interpretation of the detailed design / specification and failure to respond to requests for information. (RFI’s). Acts of God. / Force Majeure.

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• • •

Inclement weather conditions. Impediments caused by untimely processing of invoices, correspondence, approvals, submittals, change orders, claims caused by the owner or his or her representative. A host of other situations.

Prior to producing and sending a claim or notifying the party that a claim will be forthcoming, be satisfied the claim is just legitimate and that the claim is fair and represents real life situation (costs have been incurred, outside the scope of the original project, due to no fault of the contracting firm). The point of the following observations is to improve the task of researching and collecting documents / back up data needed to support the claim, following a thorough assessment, if the contractor or engineering firm is persuaded a claim is appropriate, consider and follow the subsequent measures and steps indicated (of course no two claims situations are the same – basically use the methodology as a guide). Have a good handle on the terms and conditions of the project contract and determine what length of time is required prior to informing the owner regarding a potential claim (don’t leave the claim resolution to the end of the project!!!!) Have appreciation of the big picture and be aware of all direct and supporting items that could be part of the claim if management has made the decision to submit the claim – know the issues so you can talk with some authority when the owner starts asking questions about the claim. A valid question is are the legal fees recoverable or is this a cost the contractor will have to absorb, are they considered a cost of doing business. All construction related organizations, contractors and A/E firms that encounter a delay, disruption or stoppage of work have to bear in mind that it is fundamental for future survival to keep up to date documentation / records on every project they are involved with. This includes the retention of all project related: Memos: Minutes of meetings: E-mails: Phone messages / verbal instructions should be documented. Drawings Specifications Other relevant documents: These must be filed away for possible future action. This includes project related correspondence between the “project team” members must be acknowledged, acted upon and filed during the projects life cycle, verbal communications should always be confirmed in writing – e-mails are a great application of confirming actions. The contractor’s project manager / site superintendent must be educated to maintain a precise daily activity log / diary, recording each days major events, visitors, accidents, number of workers, deliveries, weather conditions, delays, stoppages, completion of certain units, when work areas were handed over by the client, problems experienced, milestones achieved etc. Signed daily project timecards, brass ally records, payroll documents, overtime logs, accident notices, etc. must be retained together with copies of all purchase orders, sub contracts, site meetings, invoices, delivery receipts, progress photographs, schedules and all other relevant site related documents. With the cooperation of lawyer if necessary or a specialist claims consult if deemed appropriate, draft and prepare a “position” letter delineating the details of the claim to the appropriate owner project representative(s), i.e. clerk of the works / owners

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representative or perhaps to all of them – lay it out on the table. The letter: should give details the nature of your claim in adequate detail to portray the claim in some detail (it basically gives a basic outline of the issues and challenges being faced or recently experienced) note this should not come out of the blue hopefully the groundwork has be laid with conversations and comments in various weekly meetings and reports; point out that the delay and the ensuing damages / costs are the liability / responsibility of other parties on the project; spell out the value / lump sum amount if known you are requesting for as additional payment to relieve this problem; and indicate the time extension required that will impact the general conditions and the completion date. If the claim is rejected, indicate that you reserve the right to take legal proceedings on this subject at a later date if necessary, it may be a wise move to state the following, we are giving notice to you of these additional costs sustained by us that were not caused by our actions – so you can take appropriate actions i.e. (back charge them) against other project related organizations / parties i.e. the owner(s), architect / engineer / construction management firm, nominated sub-contractor(s) and nominated vendors etc. who are possibly responsible for impacting our ability to perform our scope of work and are a root cause for our delays on the project. Initially when this is happening it is redundant to include in the claim letter an itemized listing of the amount you are requesting – perhaps a budget value should be initially established, it may be impossible to determine the real cost because it is currently evolving, on the other side of the coin, it is very important to data collection activity moving along and start the due diligence effort. All related claim letters / correspondence should at all the times be sent via express mail with return receipt signature to make sure it arrived and who signed for it. If the claim is rejected, the contractor / engineering firm etc should request in writing the grounds for rejection of the claim and at the same time present and pay for a submission for arbitration. As a general rule, this situation gets the involved parties into an initial review / possible meeting of the minds / resolution of the claim. Many times it is prudent to utilize the services of a lawyer or a claims consultant (an expert on producing claims) these parties typically focuses on construction disputes this resources can be very helpful to the contractor / engineering firm who are not usually involved on a daily basis with claims. The following is a listing of some key issues that can be responsible for change orders and claims: Changed Conditions Rock. (Not shown in contract documents) Water (high water table) Scope of work (additional work)

Changes in Specification / Errors / Scope Materials changes Equipment changes Changes in installation methods Design errors

Change in schedule / Delays

Execution

Delays / Accelerated handover requirements

Poor productivity

Late or delayed payment

Late detailed design

Failure to answer RFI’s / Late shop drawing approval

Termination

To summarize the above write up it would be reasonable to say that owners are often initially skeptical of contractor’s or A/E proposals (submissions) for claims and change orders, communications is the basic problem if the issues are discussed when they happen the problems can many times be reduced, the root cause of the problem many times is that the

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claim or change order is not adequately documented or discussed with the owner, it is many times sprung on them. The contractor or A/E firm has the task to prove the scope change (change order or claim) together with the costs and delays that he or she is passing onto the owner; the following documentation can in many ways support a claim or can defend against a claim. 1. Original bid documents (contract drawings, specifications and the construction contract). 2. Instructions to bidders information. 3. Sub contractor / vendor quotes / addendum and change orders. 4. Daily time sheets. 5. PCA’s. 6. Work stoppage reports. 7. As-built documentation. 8. Bore holes, sub-surface conditions. 9. Telephone conversation records. 10. Shop drawing register / vendor documentation / submittal records. 11. Keep all related project correspondence. 12. Daily equipment usage reports. 13. Photographs / videos. 14. Keep all specifications and drawings including all revisions. 15. Marked up drawings and specifications. 16. Field records, daily, weekly installed quantities. 17. Inspection reports. 18. Bid tabulations for materials and equipment. 19. Request for information log (RFI’s). 20. Costing / pricing details copies of all change order bids. 21. Applicable invoices and payments. 22. Superintendent’s daily diary. 23. Cut sheets / fabrication drawings. 24. Relevant schedules / CPM networks. 25. Separate cost coding / WBS structure. 26. Other relevant supporting data. 27. Warranty data. 28. Punch list items. 29. Change order log (showing date submitted and date approved). 30. Owner payment schedule (planned and actual). 31. Release of liens documentation. 32. Retention release log. Having some or all of the above documentation will many times be all that is required to settle and finalize the specific change order, claim or dispute, time and again some negotiations / give and take will be required to close the issue (all parties should aim for a win-win situation). If the dispute or claim cannot be resolved contact a lawyer or a specialist claims consultant to determine what the best path forward is to resolve this impasse. CONTINGENCY CONSIDERATIONS AND THOUGHTS (CAPEX) i.e. capital investment in a new facility is a common / ongoing activity for just about all major chemical / manufacturing organizations. Prior to the ruling (by the companies investment committee) to proceed to invest funds into a new facility, a cost estimate is

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compiled to determine the cost of the engineering (detailed design), procurement (the purchase of bulks and major equipment) and construct work related to the proposed facility, an estimate by its very nature is inexact and typically fails to capture the full extent of the final scope of the project, because it is compiled with incomplete information. The cost ramifications of this “missing scope” together with the perceived risks is typically captured by the application of a contingency provision (line item), be it 20% or 5% of the total cost of the project, the amount / value of the contingency of course is dependent on the perceived challenges and risks that the projects may encounter during its execution phase and of course the accuracy of the scope of work and the skill of the team compiling the estimating deliverables. The definition of the word “contingency” is as follows: An amount / value of money or time incorporated into a capital cost estimate for changes / modifications that history indicates will happen / occur during the life cycle of the project. Contingency should exclude changes in the pre-established scope of work. Contingency what is it, how is it used in the Engineering, Procurement and Construction Industry (E.P.C.). An amount / value added to an estimate to allow for changes that history indicates will happen. Is not for scope changes, the scope of any project should be known, even conceptually, i.e. a plant produces 150 ton per day of cement, a refinery produces 100,000 barrels of oil a day, any delineation from this i.e. the plant will produce 200 tons a day of cement is a change in scope, this cost increase should not come out of the contingency fund. Uncertainty of incidence, items reliant on an indeterminate happenings; together with attendant expenditure / cost, an unanticipated cost related occurrence. The word contingency is in all probability is one of the most abused and misconstrued words used in engineering / construction industry today. The most common definition of contingency is, “an amount of time or money added to the base cost estimate to allow for changes that experience indicates will happen during the execution of a project.” Refer to the term contingency to ten engineering / construction industry professionals and you would most likely get ten different elucidations as to what contingency was and how it should be appraised and utilized and what the primary purpose function of contingency is. (Contingency is by definition a widely misused term) many people think of contingency as a scope allowance, this is a totally erroneous view of the real meaning of contingency. Contingency, the word to an engineering / construction professional could create a pre-conceived image / thought process. Preconceived ideas / concepts could be, • • •

An overall percentage (value) applied as a penultimate activity in the estimating / bidding process, (a grab number, 15%, 10% or 5% or a calculated value, that is based on the analysis of know and unknown project specific risks) Which team / parties compiles / selects / controls it and modifies it, is the estimator / cost engineer / project manager the right individual to calculate this value. What happens if any contingency money is remaining at the conclusion of the EPC effort?

The comprehension and treatment of contingency replicates an individuals skill sets / education / knowledge / years of hands on EPC experience, / understanding, and general attitude of a. person (optimist or pessimist, half full or half empty attitude). Methods, ways of determining, written measures on assessing contingency usually are different in distinct industry sectors and from one business / company to another, manufacturing V’s E.P.C. contracting industry seem to be fundamentally different.

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Other terms that have crept into the “contingency” definition include: (imagine the action of trying to fine tune a radio to get the best reception – well these definitions are similar). • • • • •

Resolution allowance. Design development. Focus allowance. Engineering growth. Technical contingency and general contingency.

All of these could in some ways be considered a contingency value; there purpose is to protect the validity of the capital cost estimate, by recognizing that scope definition becomes more focused as the project definition become more defined. Should the contingency value recommended by a cost engineer / estimator functioning for an engineering firm or for an owner company be more or less accurate than the value suggested by the other interested third parties associated with the project. What contingency value is correct and what value is unrealistic, is 5% correct or should it is 15% or even more, should the value be (low) a target or high. The response to this question needless to say is that no one single all encompassing, definition, designation, procedure or statement of contingency that covers its overall use in the construction industry. Contingency values should be included in a capital cost estimate to compensate for the main topics mentioned below: • • • • •

Accidental events. Major equipment is damaged in transit Economic Changes, oil prices spike due to middle east war Errors, 4 - 6 drawings were not estimated. Estimate imperfections, wrong scales were used in determining quantities. Oversights, off site tank farm was incorrectly scoped out, we have missed / not estimated 3 field storage tanks and its associated piping systems. Addition items that could be considered contingency related items include strikes, errors on drawings, sever weather conditions (floods, hurricanes, earthquakes) estimating errors, arithmetical errors, installation mistakes, bankruptcy of vendors / sub contractors.

Successful utilization of the term contingency can only be comprehended by knowledge and recognizing the value of such feature as the following topics. • • • • •

Our track record. / The historical track record / performance of the operations / execution group(s) Current and future workload general / economy predominantly concerning risk management / mitigation, world events that impact general industry and the global economy. Is company in the “risk business” does company submit lump sum, hard money bids / the operating principals / makeup of business and industry, i.e. private V’s government operating parameters. How good are we at capital cost estimating, who good are the forecasting skills of people involved in the capital cost estimating effort and future execution effort. Team strengths do we have enough capable individuals.

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• •

Quality of bid / estimating deliverables / the definition / quality of the capital cost estimate. And the quality of the engineering / specification deliverables provided. The “complete scope of work definition” together with the execution plan. The risks / the restraints on specific project related activities or special risk items, such as time or quality, process / manufacturing / performance guarantees.

The following is a listing of contingency values for five estimating levels, together with the relative accuracy of these estimates. Type of Estimate OOM / Ball Park / Blue Sky Conceptual / Pre - Design / Feasibility Front End / (FEED) / Preliminary Budget Control Lump Sum / GMP / Turnkey

Contingency % 30 - 40 20 – 30 15 – 20 7.5 – 15 2.5 – 7.5

Accuracy % +/40 – 50 20 – 30 15 – 20 5 – 10 0-5

The ground rules of estimating / cost control (Project control issues as described in previous sections must be contained within the formal scope of work): One of the main reasons for budget / over runs is unknown items (Undefined scope), together with imprecise scope / estimating definition / data at during the estimating effort. Prior familiarity with project control issues is crucial for individuals involved in selecting / evaluating the required contingency requirements. Many times these accounts / line items / future expenditure items are more often than not articulated (Discussed by the team in any depth) sometimes these line items are treated as allowances and may not have sufficient definition to be accurately valued. Contingency should not to be become a mixture of, catch-all line item, it’s always 5% or 10%, it should have a approach, basis and a methodology in it’s build up and how it is managed during the project execution phase, (and what happens to contingency monies not expended). The contingency line item many times materializes as the last but one / penultimate line cost item on a capital cost estimate summary page, (some organizations agonize over it’s value, some use 5% or 10%) it is many times indicated as a specific percentage / line item this together with a value that is of the estimated for the activities specific to the Engineering, Procurement and Construction (EPC) project. The intricacy of executing an EPC project the detailed design, the procurement and construction (and project control) activities with a fixed completion date for a fixed sum of money, is a serious undertaking that needs to be well thought-out when evaluating / weighing up contingency risks / considerations. Terms and Conditions / Type of Contract: The precision of the capital estimated cost will many times be enhanced for lump sum / fixed price construction projects versus those utilizing “open” ended reimbursable cost plus (+) forms of contract. Specific Events / Construction and Procurement Problems: Lock outs, strikes, world event such as the 9/11/2001 terrorist attack and the “knock on effect” to the overall world economy, performance warranties, liquidated damages, completion bonus, slippage of major equipment deliveries, engineering delays, extreme weather conditions, minor / major accidents, engineering errors, inflation “spikes” and differing labor productivity performance are just a small number of the many construction related issues that could have an effect on the accuracy of the projects final cost. Questions that should be answered prior to the application of contingency are: •

What is the probability of exceeding the capital cost estimate (what happens if we exceed the A.F.E by a value greater than 10%)?

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• •

What is the probability of under running the capital cost estimate (do these under run fund go back to the operating company)? If the capital cost estimate including the calculated contingency exceeds the AFE budget what are the consequences, will we need to go back to the B.O.D. for additional A.F.E. funds. (Will Value Engineering be required or a will new scopes of work need to be developed, what are the consequences of this happening).

Typical contingency percentages / considerations: Limited / No Risk: Lump sum bids, signed purchase orders, (95% of the major equipment is purchased) executed contracts and work completed. - 0 – 2.5% Low Risk: We have obtained firm quotes, (75% of the major equipment is purchased), all the sub-contracts have not been executed, unlisted major equipment items still remain, detailed design may be 80% complete, the construction work may be 30% -50% complete. - 2.5% 5% Medium Risk: We have obtained firm quotes, (35% of the major equipment is purchased), all the sub-contracts have not been executed we are still receiving bids, unlisted major equipment items still remain, detailed design may be 50% complete, the construction work may be less than 10% complete. - 5 – 10% High Risk: New client, new technology, issues around labor performance and productivity need to be established, liquidated damage clauses in effect, Detailed design may be 20% complete; the construction work may not have yet started. Bulk materials take off’s and mechanical / I & C sub contractor costs still in a state of limbo and any process performance guarantees that are required. - 10 – 20% Resolution Allowance: Experience indicates that invariably some items will be missed out of the estimate, to compensate for this it is appropriate to include an allowance / line item called Resolution Allowance this could range from 2.5 – 7.5%, an example of this is floor drains, they are not shown on the drawings to date (They will be indicated on the updated drawings in a month or two, however this scope item has not yet been defined) but we know we will need them as part of the project. Other nomenclature for Resolution Allowance includes: • • • •

Design Development Engineering Growth Focus Factor and Calibration Factor. Definition Factor

RISK MITIGATION / APPRAISAL AND OPTIMIZATION THOUGHTS A risk analysis workshop is an essential scope definition deliverable the assists greatly in the estimating effort, it provides a appropriate way to audit and benchmark the accuracy of the scope of work and therefore the resulting accuracy of the estimate. The following topics should be considered when compiling the capital cost estimate, or in the final estimate review process, some of these issues can have a significant cost impact to a capital project and should be resolved in the early stages of the project to minimize the operational / execution effort and of course to minimize / optimize the final cost of the building / facility.

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CONTRACTORS CAPABILITY TO SUCCESSFULLY EXECUTE EPC PROJECT • • • • • •

Adequate bonding capacity of general contractor / sub-contractor(s): Availability of qualified staffing resources, are they committed to other projects. Adequate available office accommodation for owners project staff: Technical expertise of key team members / personnel: Proficiency with this scope of work: Ability to obtain or assist in obtaining related permits.

TYPE OF EPC PROJECT • • • • • •

New grass roots field application. First of its type: (never been done before – perhaps only in a small scale pilot plant). Revamp / upgrade project. Proven technology: Continuous or batch process: Sophisticated / Hi-Tech Facility / high level of control systems:

PROJECT LOCATION • • • •

Close to EPC office (minimal out of pocket travel expenses). Far distance from EPC office (travel costs, trips home, hotels & per diems): Overseas location (work permits, travel costs, hotels & per diems): Need to hire new staff if a far distance from existing H.O.

PROJECT SIZE AND CURRENT CONSTRUCTION ACTIVITY • • • • • •

Small project less than $5 million. Large project $50+ million. Available footprint / size of work (phased approach or the need to modularize components off site): City or rural location: Current engineering and construction activity in this immediate location: Welcoming local community, looking for new jobs:

LABOR FACTORS • • • • • • • • •

Union current labor agreements): Non Union (open shop): Merit shop. Drug testing requirements: Interface with client’s workforce. Need for worker training. Required worker proficiency (pipe fitters, millwrights, electricians –use of TCN’s): Local Productivity V’s Gulf Coast (or other specified location). Union Wage Scales, future increases:

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• •

Prevailing Wage rates: Unemployment levels:

MONETARY ISSUES • • • • • • • • • • • • • • • • • •

Cost of proposal preparation: Performance Bonds, other boding requirements: Import duties / Sales Tax issues: Finance Costs. Profit Margin: Payment terms (30 - 45 days or possibly more): Cash flow requirements. Inflation / Escalation projections: Currency Impact: Exchange Rate Basis (basket of currencies): Contingency (technical and General): Completion Bonuses: Liquidated damages: Penalty clauses: Shared savings: Capital V’s Expense philosophy. Operating costs / operating materials. Taxes (local, B & O, federal):

CONTRACT LANGAUGE / CLAUSES • • • • • • • • • • •

Scope changes initiated by client. Payment method for scope changes / change orders: Warranty issues (time period). Consequential damages ramifications. Penalty / bonus clauses: Liquidated damages: Insurance issues coverage (BAR – General Liability). Retention issues: Delays, extension of time: Parent company guarantees: Invoice approval bottlenecks.

FORM OF CONTRACT (Terms and Conditions) • • • • • • • •

Cost Plus / Reimbursable: Fixed Price / Lump Sum / Hard Money: Schedule of Rates / Unit Price: Negotiated Price: Design Build Contract. Guaranteed Maximum Price (GMP): Management Contract: Contract language / Terms and Conditions:

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• • • • • • •

Onerous terms: Extended Warranty issues: Liquidated damages issues: Consequential damages issues. Performance guarantees. Dispute resolution issues: Applicable laws:

SITE LOCATION FACTORS AND ISSUES • • • • • • • • • • • • • • •

Remote / hostile location: Need for camps and catering. Mobilization / demobilization issues Accessibility to existing services / utilities: Installation of temporary road and subsequent maintenance: Demolition / hazardous material(s) removal: On site / off site storage needs: Construction of batch plant / temporary pipe fabrication facilities: Temporary screens / protection issues: Safety issues / drug testing: Overcrowding / available workspace / phased approach: Working in existing operating facility / protection of ongoing operations: Time card (brass ally) / security: Material management / logistic requirements: Onsite fabrication facility (pipe and structural steel):

CLIMATIC CONDITIONS • • • • • • • • •

Extreme heating or cold working conditions: Additional costs related to heating / protecting wet trades: Installation tolerances add-mixes (high / low temperatures): Temporary heating to completed work: Snow removal costs. Temporary protection of completed work: Pumping of rainwater from foundation and trenches: High water table (well point system): Weather window issues:

PROJECT DELIVERY ISSUES • • • • • • •

Fast Track Engineering / Procurement / Construction approach: Overtime / shift work premiums: Long lead M.E. delivery issues. Ocean freight costs. Early payment / deposit issues Expediting issues: Trafficking issues:

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•

Phased completion issues:

FEDERAL / STATE REGULATORY ISSUES • • • • •

Building / Environmental / Fire marshal permits / Elevator. Inspection visits and schedule issues: Applicable Submissions to township and federal agencies: OSHA issues: Validation issues (US FDA):

OWNER / CLIENT INTERFACES • • • • • • •

Owner provided (free-issue equipment and materials): Corporate Engineering / Plant Engineering involvement: Utilization of client specifications / standards, or use industry standards: Engineering involvement (major or minor role): Construction Management (major or minor role): Penchant for scope changes by R&D group during EPC effort: Ability of client to pay on time / Financial strength / possibility of take over.:

VALUE ENGINEERING •

Conduct 1 – 2 day formal V.E. session when detailed design is 10% - 40% complete; conduct V.E. session offsite to ensure full attention of V.E. team.

RISK MITIGATION WORKSHOP •

Conduct 1 – 2 day formal risk mitigation session in first couple of weeks / months of projects life cycle, document all risks that could compromise the completion or cost of CAPEX project.

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SECTION B - 1 SCALE OF OPERATIONS - CONCEPTUAL ESTIMATES / COST CAPACITY EXPONENTS OR 6/10 RULE VALUES The following pages list out 150+ # Process Unit (Operating Units) / Major Equipment items and Construction related exponent values (it is the intent to add additional categories in future annual updates). A quick capital cost estimate(s) can be compiled by using this method / approach known in the “Process / Manufacturing” - EPC industry as cost capacity – ratio exponents (however the accuracy of the resulting value unfortunately is not very accurate – so be careful with the resulting values). This is relatively seasoned approach / method of estimating “process related” plants / facilities and processing equipment – major equipment (M.E.), many times called “capacity or equipment” factoring or 6/10 th’s rule. On many industrial / manufacturing plant projects such as chemical facility / process plants, there is a relationship between the capacity of the plant and the historical / current cost of the facility. New facility production rate, divided by known facility production rate, multiplied by known facility cost, multiplied by appropriate exponents listed below. An example of this is as follows: An Acetic Acid Plant: A 15,000 gallon a day facility cost US$14.45 million to engineer, procure and construct what would an 8,500 gallon plant cost to engineer, procure and construct. The exponent for an Acetic Acid Plant is 0.70, taken from the list below. The calculation is 8.500 gallons divided by 15,000 gallons = 0.566 this value multiplied by xy multiplied by 0.70 (exponent) = 0.672 The original 15,000 gallon plant cost $14.45 million this value multiplied by 0.672 = $9.71 million, this would be the cost of an 8,500 gallon a day plant. This value can be calibrated for escalation if necessary. This approach should be utilized for very early / order of magnitude estimates, many times it is the first estimate compiled. The industry average (exponent) cost capacity factor (n) has an average value of between 0.5 and 0.7 (of course there are exponents that fall above and below these values), 0.6 is widely used, hence it’s name the 6/10th factor. The $64,000 question is - is the OSBL work / scope included in the factors, (this issue is the subject of some debate – and can be considered a grey area) this feeds the argument of why the accuracy range i.e. +/- 35% of this estimating method is so wide). This procedure is assumed for the same time period and location, the value / outcome should be calibrated by an inflation / escalation index‘s. This concept is thought to have originated in the 1940’s and this estimating approach is widely utilized in the “Process / Chemical / Manufacturing“ industries for a good number processes, plants and major equipment items, however these exponents in a lot of cases fluctuate over a wide range. Exponents / factor values can be found in various published books, and articles, basically this capital cost estimating method is used to decide on various early economic case studies, project - process configurations / schemes / process approaches / front end studies. This estimate is typically compiled when little or no detailed engineering is available perhaps 2% - 3% or even less, (or it might be done when there is a preliminary

1

engineering report) the estimating data is taken from early P.F.D.’s, and preliminary major equipment lists, daily / yearly production rates, historical data, the accuracy of this type of estimate is perhaps at best +/-35%, contingency should not be added to the estimated cost, presumably the historical cost data, i.e. exponent is based on total installed cost which includes all major equipment, bulks, labor, in directs including detailed design, construction management and contingency. The exponents indicated below do not reflect the O.S.B.L. scope of work. The following are exponents for a variety of process / chemical / manufacturing plants and process equipment, the data was compiled from North American and some Western European facilities constructed in the 1995 – 2008 period. A line item value must be added to the resulting results to incorporate OSBL scope 10% - 30% would be appropriate, for significant OSBL work this value needs to be increased to perhaps 30% – 50%.

PROCESS UNIT / MAJOR EQUIPMENT / CONSTRUCTION RELATED EXPONENT VALUES / FACTORS Acrylonitrile Butadiene Styrene 0.72 Acetaldehyde Plant 0.73 Acetic Acid Plant 0.70 Acetone plant 0.52 Acetylene plant 0.78 Acrylonitrile plant 0.63 Agitator Propeller 0.5 – 5 HP 0.70 Agitators Propeller 5-50 HP 0.45 Ditto turbine 0.37 Air compressor 0.35 Air dryer 0.58 Air handler Draw thru (DX) 0.82 Alkylation, large unit 0.65 Alkylation, small unit 0.71 Argon facility 0.86 Ammonia plants 0.72 Ammonium Nitrate 0.57 Ammonia Sulfate 0.75 Autoclave 1, 000 PSI 0.95 Aviation fuel 0.85 Axial duct fan up to 10,000 CFM 0.45 Bagging Machine 0.77 Ball mill 0.65 Bauxite 0.75

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Benzene facility 0.71 Blender rotary 0.45 Blower Axial 0.55 Blower centrifugal 0.55 Boiler (packaged) 0.70 Brewery 0.63 Butane 0.72 Butanol plant 0.45 Carbon Black 0.67 Caustic soda plant 0.45 Cat Cracker 0.58 Centrifuge 0.95 Chlorine plants 0.49 Column fractionating 0.60 Conveyor Belt 0.67 Ditto Bucket 0.75 Ditto Vibrating 0.85 CO and CO2 hydrogen stripper 0.71 Cooling towers 0.60 Coke oven gas stripping unit 0.78 Coking (delayed) top entry unit 0.63 Compressor recip, air cooled 2 stage, 100 psi 0.70 Cracking unit, catalytic (cat cracker) 0.80 Cracking, thermal reforming unit 0.66 Crusher cone 0.83 Crystallizer 0.75 Cyclohexane unit 0.63 Cyclone dust collector 0.76 Delayed Coker 0.58 Desalter unit 0.67 De-sulfurization unit (Clause-tail gas) 0.59 Distillation (atmosphere) 0.87 Distillation (vacuum) 0.73 Dryer, drum 0.50 Dryer, pan 0.42 Dust collector 0.77 Ductwork 0.58 Economizer 0.78 Ejector 0.50 Electric Motor 5-25 HP 0.65

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Electric static precipitator 0.75 Ethylene unit 0.77 Ethylene Oxide unit 0.75 Evaporator vertical tube 0.55 Evaporator horizontal tube 0.55 Evaporator 1,000 - 10,000 gallon 0.50 Fan, centrifugal 0.66 Filter press plate / press 0.57 Ditto wet leaf type 0.55 Ditto dry 0.51 Formaldehyde 0.60 Furnace 0.75 Gas-recycling unit 0.73 Gas dehydration unit 0.65 Glycol unit 0.70 Hammer mill 0.81 Heaters, gas fired 0.45 Heat Exchanger u tube 0.55 Heat Exchanger S/T, floating head c.s. 200 SF 0.62 Heat Exchanger S/T fixed sheet c.s. 200 SF 0.48 Hopper / Silo conical 0.65 Hydrogen production facility 0.70 Hydrogen Peroxide 0.72 Hydrofluoric Acid plant 0.71 Hydrogen sulfide stripping unit 0.61 Hydrotreating unit 0.68 Isoprene 0.59 Kettle, glass line 500 gallon and above 0.40 Jacketed reactor 0.55 Liquefied Petroleum-gas recovery plant 0.66 Lube oil plant 0.68 Methanol plant 0.86 Natural gas facility

0.63

Nitric acid 0.87 Oxygen production plant 0.68 Paraxylene 0.60 Phenol plant (High Purity) 0.68 Phosphoric Acid plant 0.74 Polyethylene plant (High Density) 0.62 Polymer plant, large unit 0.66

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Polymerization 0.55 Polymer plant, small unit 0.78 Power Plant Coal 150 – 1,500 MW 0.85 Power Plant Gas 150 – 1,500 MW 0.82 Power Plant Oil 150 – 1,500 MW 0.85 Power Plant Nuclear 150 – 1,500 MW 0.77 Precipitator dust collector 0.75 Pressure Vessel (CS) 0.60 Pressure Vessel (SS) 0.65 Propylene unit 0.72 Pump centrifugal 400 GPM and above 0.37 Reactor, C.S. or S.S. 1,000 gallon and above 0.50 Reactor SS glass lined 1,000 gallon and above 0.55 Refineries, 50,000 bbls /day and above and larger 0.63 Refineries, 50,000 bbls /day and smaller 0.65 Reforming, catalysts units 0.60 Refrigeration plant

0.65

Rotary Drum Filter 0.66 Roller mill 0.63 Scrubber 0.70 Separator centrifugal 0.55 Soda bicarbonate facility 0.68 Solvent extraction plant 0.88 Solvent dewaxing unit 0.77 Soybean extraction plant 0.73 Styrene plant 0.67 Steam Boiler / Production 100 psi 0.63 Steam Boiler / Production 500 psi 0.77 Sulfur production / recovery unit (Clause / Amine) 0.59 Sulfuric acid plant 0.67 Tanks C.S. Floating head 10,000 gallon and above 0.54 Tank C.S. Glass lined 0.51 Topping Unit 0.66 Tower C.S. W/o trays 0.60 Toluene facility 0.67 Transformer 0.58 Tray sieve type 0.83 Turbine 0.66 Urea plant 0.75 Vacuum Distillation unit 0.62

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Vacuum Flash unit 0.64 Vibrating screen 0.65 Vinyl chloride unit 0.83 Visbreaker 0.65 Non Equipment – Facility items: Civil works 0.67 Constriction Labor 0.45 Piping 0.87 Structural steel 0.67 Engineering / Drafting work 0.47

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SECTION B - 2 CHEMICAL PLANTS / MANUFACTURING FACILITIES RATIO / PERCENTAGE ESTIMATING FACTORS The data and various cost models contained in this section are supplementary to the data contained in Section A – 3. This first method “Lang factors” comes up with a total installed cost (T.I.C.), it is compiled a by multiplying the cost of major equipment item, i.e. a compressor, a pump, a tower etc, by specific multiplier, this multiplier includes such items as concrete, structural steel, piping, electrical etc. (i.e., all the bulk material items and in directs plus detailed design). The “grandfather” of ratio factors is thought to be Mr. Hans Lang who was an Engineer / Estimator with a major engineering firm in Philadelphia, Pennsylvania, in the late 1940’s and early 1950’s the method is known as the “Lang“ Factor method is widely used in the “Process / Chemical” related industries. There are a number of similar factors produced by other individuals, these include Hand, Cran, Gallagher, Suarez, Guthrie, Nishimura – who has done additional research work on these factors, other proponents of this approach include Bach, Chilton, Peters & Timmerhaus, Miller, Wroth and Compass International to name but a few. In view of the fact that some of these factors were introduce 20 - 40 + years ago many estimators / engineers are skeptical about using them today, however these factors remain valid today as an early estimating tool, many engineers, contractors and owners have compiled their own factors / multipliers to replicate their particular practices and historical data. Note these factors are useful for coming up with very early order of magnitude estimates, the accuracy of these factors are at best +/- 30%. When evaluating the above methodology consider what Mr. Hans J. Lang published in the June1948 edition of Chemical Engineering. 1) Delivered Major Equipment Cost x 4.74 for a fluid / liquid process plant. = Total Estimated Plant Cost. 2) Delivered Major Equipment Cost x 3.63 for a solids / fluid - liquid process plant: = Total Estimated Plant Cost. 3) Delivered Major Equipment Cost x 3.10 for a solids process plant. = Total Estimated Plant Cost. Mr. Lang presented this data approx 50 + years ago, is this data still relevant today, in many ways the answer is yes, things that have changed in the last 50 years include, instrumentation / control systems use of Delta V and TDC 3000 are commonplace today, these are totally different than systems utilized in the 1940 / 50’s, they are much more expensive today than the time these factors were established, environmental issues, project delivery methods, different materials, different major equipment etc, etc. The above values do not mention O.S.B.L. work the assumption being that the above values are for I.S.B.L. work only. There are other individuals that developed ratios and multipliers; some of the most frequently used “multipliers”, are mention above. As we stated before the information contained in this section is supplementary to the data

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contained in Section A - 3, ratio capital cost estimating is a straightforward approach to producing front end / preliminary capital cost estimates, it is a low cost, reasonably fast method of arriving at a +/- 25% accurate estimate. The procedure / method used in generating the cost / ratio / percentage data contained in the following lists (Example 1, Example 2, Example 3, Example 4, Example 5, Example 6 and Example 7 ) was assembled from historical cost data from over 19+ comparable “grass roots” chemical / manufacturing facilities which were constructed in North America within the last 8 years, additional ratio data is outlined in section A - 3 which is presented in a slightly different format, but in many ways based on the approach utilized in this section. The projects from which data was collected from ranged in value from $5 to 110 million. The base data which was commenced in the early 1990’s has been updated / calibrated to reflect to today’s time frame, i.e. 4th quarter 2008, this type of could be consider to have an accuracy of +/- 25%. This ratio / percentage data has been constantly re-evaluated / calibrated / benchmarked to audit and keep the data current to reflect market conditions. This data includes direct major equipment based at 100.0, civil work, piping etc, the indirect costs, EPC contractor fees / markups, many times these costs are to a great extent impacted / influenced by the current and future economic climate, project schedule, company workload, client (new or existing) and type of contract i.e. lump sum or reimbursable, the vast majority of process related projects are executed on a lump sum basis. Outside battery limits / off sites records / cost data were excluded from the percentages / ratio’s indicated, these costs will fluctuate considerably from project to project. This value / percentage can vary from 10% to 70% of the Total Installed Cost (T.I.C.) of the I.S.B.L. value; typically it ranges in the 10% to 30% range. This data does not apply to revamp / upgrade type projects, these types of projects could cost between 25% and 75% more than the “grass roots” data indicated below and in some situations higher than 75%. A listing of O.S.B.L. and Revamp / Modernization calibrations are indicated in this section. The following ratios / percentages have a wide range, for normal / mainstream plants it is recommended to utilize the lower to average ratios / percentages, however the ratios / percentages should be reviewed carefully and perhaps an average or higher value should be selected, when a plant or facility has the following situations. 1) Economic climate, in boom periods / times such as is the case in South East Asia, material and labor shortages occur, this impacts the cost of a project, the delivery of long lead major equipment is impacted also, this has a ripple effect on the project, the major equipment takes longer to be delivered causing the site establishment to be required longer, this could impact the cost by 0 – 10%, consider if the initial CAPEX estimated needs to be adjusted for this situation. 2) Congested work area / poor site conditions, tight working spaces typically impact the labor forces productivity and bad ground typically drives the site work, civil (piling, planking & strutting and or sheet piling) and concrete values up, this could increase the cost by 0 – 10%, consider if the initial CAPEX estimated needs to be calibrated for this situation. 3) Hazardous Process / High toxicity, in this situation the piping and instrumentation typically are higher. (In this situation use mid point to high end range of piping and instrumentation values / percentages, plus a value of between 0 – 50% to compensate for additional scope requirements related to these two major accounts. Refer to Note (C) later for suggestions on how to compensate for high usage of

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expensive alloys etc.), this could increase the cost by 0 – 15%, evaluated if the initial CAPEX estimated needs to be modified for these circumstances. 4) Location, the distance from the owners and EPC firm offices causes increased travel cost and travel time, per diems and associated costs are required for all key staff, this could increase the cost by 0 – 5%, consider if the initial CAPEX estimated needs to be calibrated for this situation. 5) Percentage split or type of plant i.e. All fluids, 50/50 or 25/75 split of Fluids and Solids or all Solids, deciding on the correct split / percentage bulk material and labor / sub contract labor can influence the percentages used, thus impacting the bottom line cost. Fluids V’s solids fluids type plants typically have a lot more pumps, piping and instrumentation work associated with them. Piping percentage on material and labor could increase by 0 – 20% from mid point to high range value, evaluate if the initial CAPEX estimated needs to be fine tuned for this situation. 6) Corrosive chemicals, this situation typically drives the cost of the painting, structural steel, piping (high stainless steel, alloys, glass lined piping systems etc.) and instrumentation values up, similar to (1) above for painting, structural steel, piping and instrumentation. And note (C) following. Piping, painting, structural steel and instrumentation value could increase by 0 – 15% from mid point to high range, evaluated if the initial CAPEX estimated needs to be adjusted for these circumstances. 7) Inclement / bad weather typically drives the site work (Northern or Southern extreme weather locations), civil and concrete values up and the overhead values, use mid point to high end ranges for civil and concrete values. Site work and civil / concrete value could increase by 0 – 10% from mid point to high range, evaluated if the initial CAPEX estimated needs to be modified for these circumstances. 8) Control system, a highly automated process plant is expensive, case in point - a fully automated facility in North America is many time the norm, in some less developed countries there is a limited use of instrumentation, a lot of the valves and other devices are opened and closed by hand, this could increase the cost of the plant by 0 – 15%, consider if the initial CAPEX estimated needs to be calibrated for this situation. 9) New Technology / First of it kind or type of specific plant. (No real track record of a similar facility exists within the organizations database). This situation can ripple through all of the construction / engineering scope, driving all of the ratios / percentages up, especially the detailed design value. All construction and EPC percentages could increase by 0 – 20% from mid point to high range, evaluated if the initial CAPEX estimated needs to be modified for these circumstances. 10) Revamp / Modifications / Upgrade / Modernization to existing Facility / Plant. Percentage values should be increased in the order of 25% - 75% (or possibly more) to reflect unique rework / revamp engineering and field construction activities, determine if the initial CAPEX estimated needs to be modified for these circumstances.

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11) Working inside an ongoing facility, temporary partitions, barricades, shift work, overtime limited use of construction equipment, this could increase the cost by 0 – 10%, consider if the initial CAPEX estimated needs to be calibrated for this situation. 12) Other considerations, Fast track / Flash track - Construction / Modular Construction / other unique situations. Site work, structural steel and civil / concrete value could increase by 0 – 15% from mid point to high range, evaluate if the initial CAPEX estimated needs to be modified for this situation. Example (1) Percentage / Multiplier Method Accuracy +/- 25% Direct Costs Major Equipment Cost (including freight) % of M.E. cost Major Equipment setting 12% Site Development 1% Civil / Concrete 2% Structural Steel 4% Facility (a) 73% Piping 80% Instrumentation 40% Electrical 22% Insulation 5% Painting / Coatings 4% F/Protection / Refractory 2% 245%

$1,093,000

S/T

$2,677,850 $3,770,850

S/T

$263,960 $641,045 $75,417 $115,000 $57,000 $123,000 $1,275,422

Indirect Costs Construction Mgmt 7% Detailed Design / H.O.EPC costs General Conditions 2% Client front end engineering Spare Parts Taxes

17%

Total Direct & Indirect cost Contingency Total Project Cost

total 15%

$5,046,272 $756,940 $5,803,212

Multiplier is $5,803,212 / $1,093,000 = 5.30 or 4.61 w / o contingency

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(2) Research & Development Facility 40 – 50% ISO 8 Class 100,000: Breakdown by 16 CSI Division with A/E & CM values $24,747,465 Facility completed in mid 2006 Calibrated to Washington D.C. 3 Floor facility 72,000 SF 6,690 M2 (3 passenger / 1 goods elevators) $344 / SF $3,698 M2 Description Percent Total Value Div No 9.53% 1 Preliminaries / 2,076,086 General Requirements 2 Site Works / Civil 3.76% 819,107 ** 3 Concrete 5.84% 1,272,228 4 Masonry 6.48% 1,411,651 5 Metals / 7.46% 1,625,142 Structural Steel 6 Wood Plastics 4.84% 1,054,381 3.55% 7 Thermal & 773,358 Moisture Protection 8 Doors & 3.36% 731,968 Windows 9 Finishes 5.73% 1,248,266 10 Specialties 1.90% 413,910 11 Equipment* 9.31% 2,028,160 * 12 Furnishings 0.72% 156,850 13 Special 0.32% 69,711 Construction 1.97% 14 Conveying 429,159 Systems (3P / 1G) 15A Plumbing 5.93% 1,291,835 16.79% 15B HVAC (AHU’ s / 3,657,657 Ductwork / Balancing) 15C Fire Protection / 1.25% 272,309 Sprinklers 16 Electrical 9.59% 2,089,156 16A BMS / HVAC 1.67% 363,805 Controls 100.00% 21,784,740 17 A/E Services 8.85% 1,927,949 18 CM 4.75% 1,034,775

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SF / Cost M2 / Cost 28.83

310.26

11.38 17.67 19.61 22.57

122.41 190.13 210.96 242.87

14.64 10.74

157.57 115.57

10.17

109.39

17.34 5.75 28.17 2.18 0.97

186.55 61.86 303.10 23.44 10.42

5.96

64.14

17.94 50.80

193.06 546.62

3.78

40.70

29.02 5.05

312.21 54.37

302.57 26.78 14.37

3,255.61 288.12 154.64

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Validation Services Total

N/A

N/A

N/A

N/A

113.60%

24,747,465

343.71

3,698.37

* Includes manufacturing / production equipment, mechanical and electrical equipment setting and hook-up installation included in Division 15 and 16. Validation costs not included. ** Includes parking for 225 cars, plus 250 SF Gate house & fencing. (3) Fermentation / Chemical Facility ((A). Fermentation Building 55,500 SF: (B). Warehouse 7,500 SF and (C) Office / Admin 4,400 SF. For a total of 67,400 SF or $705 / SF 2005 Fermentation / Chemical Facility enclosed in Metal siding Building With structural steel, columns and EPDM roof (Located in Mid West USA calibrated to Washington D.C. area) Scope item $ Cost % Remarks Major Equipment (M.E.) 117 # 14,377,570 30.25%SS glass lined tanks / reactors / pumps Freight 504,865 1.06% Demolition 151,788 0.32% M.E. Installation 721,254 1.52%Millwright / setting work Site preparation 285,286 0.60% Concrete / civil 391,983 0.82% Structural steel 587,835 1.24% Pipe 7,486,743 15.75%60 - 70% SS / glass lined Electrical 4,836,984 10.18% Instrumentation / BMS 2,767,543 5.82% Buildings 1,753,882 3.69%3 # buildings see note A Utilities / Miscellaneous items 638,765 1.34%Cooling tower / sub station / new boiler, existing piping and some utilities chillers could be utilized Detailed design 7,052,090 14.84%114,750 hours see note B Field Eng support 371,989 0.78% Construction Mgmt 1,978,994 4.16%See note C Owner Eng Support 1,066,870 2.24%Design review / CM oversight Spare parts / V A 665,450 1.40% Feasibility studies 480,550 1.01% Escalation 976,650 2.05% General Conditions 437,879 0.92%Division 1 items Total Installed Cost 47,534,970 100.00% Note A: 3 # Buildings (1) Fermentation Bldg 55,500 SF 3 Floors metal siding with louvers with EPDM roof. (2) Warehouse 7,500 SF (3) Office / Control Room / Change Rooms 4,400 SF

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Project duration Start of detailed design 3/2003 completion of detailed design 6/2004 15 months Start of Construction 8/2003 completion of construction 5/2005 21 months Note B: Detailed design includes a fee of $350,000 Note C: CM includes a fee of $250,000. CM already has a presence on site some staff members / temporary offices were used, saving some CapEx funds.

EXAMPLE (4) CHEMICAL PERCENTAGE RANGE PROCESS PLANT (CONCEPTUAL ESTIMATING APPROACH) ACCURACY +/- 30% ISBL ONLY PERCENTAGES OF MAJOR EQUIPMENT DELIVERED TO SITE % RANGE • • • • • • • • • • • • • • • • •

Major Equipment see note A Freight Equipment setting Site work Civil / Concrete Structural steel Facilities / buildings Piping (60% CS. 40% SS) Electrical Instrumentation Insulation Paint Fire Protection Miscellaneous costs (Vendor Assistance / spare parts) Field In-directs ** Outside Engineering (EPC) Construction Management

100.0 2–4 3 – 10 4 – 12 10 – 35 15 – 40 5 – 25 40 – 150 15 – 50 15 – 50 3 – 15 2–6 2–7

LABOR %

0 85 40 55 40 55 55 40 40 40 75 40

MATERIAL %

100 15 60 45 60 45 45 60 60 60 25 60

3–6 50 50 25 – 45 35 65 10 – 15% of the above total value 4 – 7% of the above total value

** The above Includes craft supervision, temporary facilities, testing, clean up, security, rental equipment, warehousing, payroll taxes / benefits, workers comp, small tools / consumables For OSBL work add 5 – 70%

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EXAMPLE (5) Compass Multiplier The following multipliers have been independently collected over a period of 5 to 10 years and are similar in some respects to Hand, Cran and Lang factors, the accuracy of this estimating method is at best +/- 25%. It hoped to add additional multipliers in the subsequent updates of this publication. The best use of these types of factors is in early conceptual studies, what if we add two Heat exchangers to the project, or in Value Engineering what would the cost savings be if we removed 4 pumps from the project, this approach assists in determining quick and reasonably accurate major equipment values, this is a useful tool if the cost of the purchase order can be determined. Ref #

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Major Equipment (M.E.) Item

Air Handler Unit Air Cooled Heat Exchanger Agitator (CS / SS) Bag house Bagging Machine Ball mill Blender Blower / Fan Boiler Clarifier Centrifuge (solid bowl) Compressor (electric motor driven) Ditto (gas or steam driven) Chiller Conveyors (Belt / Bucket) Cooling tower, concrete basin, timber frame Crusher - Cone Crusher - Jaw Crystallizer Cyclone Drum Vertical / Horizontal Dryer – Rotary Vacuum Dryer spray Evaporator Ejector Furnace (Cabin) Furnace (Process) Hammer mill Heat Exchanger S/T CS / SS Ditto double pipe Incinerator Pressure leaf filter Pump Centrifugal CS Ditto Reciprocating Ditto Turbine Ragger Reactor

Assume Purchase Order Value Ex works (excludes freight) $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

Multiplying % range to obtain a fully installed M.E. item (Excluded M.E. cost) 40 – 60% 80 – 100% 45 – 75% 70 – 90% 40 – 60% 50 – 70% 40 – 80% 40 – 80% 40 – 80% 40 – 80% 50 – 90% 50 – 90%

Total (Average) Installed cost M.E. including / excluding items below

$50,000 $50,000 $50,000 $50,000

50 – 90% 40 – 60% 30 – 60% 70 – 120%

$85,000 $75,000 $72,500 $97,500

$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

40 – 60% 30 – 50% 60 – 80% 70 – 90% 70 – 120% 80 – 140% 90 – 150% 90 – 150% 50 – 80% 70 – 100% 80 – 100% 50 – 80% 90 – 150% 60 – 80% 70 – 90% 40 – 70% 80 – 100% 50 – 80% 40 – 70% 80 – 100% 80 – 120%

$75,000 $70,000 $85,000 $90,000 $97,500 $110,000 $110,000 $110,000 $82,500 $92,500 $95,000 $82,500 $110,000 $85,000 $80,000 $77,500 $95,000 $82,500 $77,500 $95,000 $100,000

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$75,000 $95,000 $80,000 $90,000 $75,000 $80,000 $80,000 $80,000 $80,000 $80,000 $85,000 $85,000

38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

Reactor Glass Lined Reactor Kettle Receiver Refrigeration Unit Rotary Dryer Rotary Filter Tank Storage C.S. Ditto floating head Ditto C.S. Glass lined Tower / Column w/o trays Transformer Truck loading / Rail car loading Silo / storage tower Stack (steel or slip formed) Sphere Vessel Pressure C.S. Vertical Ditto horizontal Vibrating screen Wiped film evaporator

$50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

90 – 130% 90 – 130% 70 – 90% 60 – 90% 90 – 110% 40 – 60% 30 – 40% 40 – 60% 50 – 70% 80 – 130% 20 – 40% 40 – 60% 20 – 40% 30 – 60% 30 – 50% 80 – 110% 70 – 100% 20 – 40% 50 – 80%

$105,000 $105,000 $90,000 $87,500 $100,000 $75,000 $67,500 $75,000 $80,000 $102,500 $65,000 $75,000 $65,000 $72,500 $70,000 $97,500 $92,500 $65,000 $82,500

The above multipliers include or exclude the following items: • • • • • • •

• •

Freight (ex works USA includes 3% of purchase value). Civil work (excavation, shoring and backfill). Foundations (concrete, rebar, formwork, grouting and holding down bolts). Equipment setting (includes cranes). Structural steel / Platforms / Miscellaneous steel. Piping (includes all piping / fittings and valves 5’ – 10’ from equipment item). Electrical (includes all electrical cable / conduit and fittings 5’ – 10’ from equipment item). Instrumentation (includes all control wiring / conduit and fittings 5’ – 10’ from equipment item and local controls, assume that 100’ of control wiring to local JB is included). Insulation (includes all equipment, piping and fittings 5’ – 10’ from equipment item). Painting (includes all equipment, piping and fittings 5’ – 10’ from equipment item). Fireproofing (specific to equipment item).

• • • • •

Excludes Detailed Design / EPC services. (Add 10 – 15%). Excludes Construction Management. (Add 4 – 7%). Excludes Field in directs / General Conditions. (Add 15 - 35%). Excludes Contractor fee / mark up. (Add 7 – 10%). Excludes, Demolition work. (Add 0 – 10% on a case-by-case basis).

• •

9

EXAMPLE (6) ZEOLITE PLANT SUMMARY ESTIMATE

RATIO / PRELIMINARY ESTIMATE +/- 20% Accuracy COST OF MAJOR EQUIPMENT UNLISTED ITEMS / DESIGN GROWTH FREIGHT

5% 5%

$1,969,375 98,469 98,469 $2,166,313

TOTAL MAJOR EQUIPMENT EQUIPMENT INSTALLATION PIPING INSTRUMENTATION ELECTRICAL SITE WORK CONCRETE STEEL BUILDINGS PAINTING INSULATION – FIRE PROTECTION DISMANTLING – REPAIRS

9% 25% 25% 20% 10% 20% 10% 10% 5% 7% 3%

194,968 541,578 541,578 433,263 216,631 433,263 216,631 216,631 108,316 151,642 64,989 $3,119,491

TOTAL DIRECTS TOTAL M.E. & BULKS OF ‘A’

$5,285,804

EPCM SERVICES 16% of ‘A’ OWNER COSTS SPARE PARTS VENDOR ASSISTANCE

845,729 200,000 50,000 50,000

TOTAL DIRECTS & INDIRECTS ESCALATION CONTINGENCY

3%

$9,551,023 286,531

15%

$9,837,554 1,475,633

TOTAL

$11,313,187

M.E. MULTIPLIER = 5.22 with contingency / 4.99 w / o contingency

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(7) Paint Manufacturing Facility / Partial Retrofit located in Mid West (2004 Costs) Constructed on an established operating site with adequate utilities (needing some modification / upgrading) Category Major Equipment (M.E) 89 items

$ Million 14.15

Freight Setting of M.E. (L&M) Demolition (L&M) Asbestos removal (L&M) Site Preparation (L&M) C/S/A (L&M) Existing Pipe modifications (L&M) Piping (L&M) Electrical (L&M) I/C (L&M) Insulation (L&M) Painting (L&M) Warehouse / Loading Area Warehouse Racks / Forklifts / Pallets / Robotic packers Miscellaneous items (F-P, Spare Parts, V.A. I/C programming (L&M) Utilities / tie ins Direct Costs Field Establishment / In Directs 37.5% Directs + Indirect Costs Detailed Design (E&P ) 9.7% CM 3.5% Total Plant Cost

0.49 0.63 0.64 0.37 0.66 1.88 0.17 6.12 2.53 2.24 0.88 0.52 0.47 0.22

Remarks 757 Design hours / Per M.E. item

3 floors with siding

0.32 0.58 32.87 12.33 45.20 4.38 1.58 51.16

Excludes: Owner corporate engineering $515,000 and Front End Engineering Study $330,000 that was completed in 2002: Demolition and asbestos removal could be an expense item. Refer to previous L & M ratio’s to determine man-hours and material ratios / splits. Definition of Terms / Nomenclature of Major Accounts The subsequent listing is an explanation of the significant elements that are incorporated in the various work disciplines as delineated in the previous Ratio / Estimating Factor Tables (refer to page 2 & 3 for typical uplift percentages). • •

Economic climate. Congested work area / poor site conditions.

11

• • • • • • • • • •

Hazardous Process / High toxicity. Location Percentage split or types of plant i.e. all fluids, 50/50 or 25/75 split of Fluids and Solids or all Solids. Corrosive chemicals. Inclement / bad weather. Control system. New Technology / Prototype / Pioneer / First of it type plant. Revamp / Modifications / Upgrade / Modernization to existing Facility / Plant. Working inside an ongoing facility, temporary partitions, barricades, shift work, overtime limited use of construction equipment. Other considerations, Fast track / Flash track Construction / Modular Construction / other unique situations.

M.E. Major Equipment – Scope of work includes the major equipment (M.E.) cost plus transportation (air, road or barge) costs to the site, (excludes import duties, tariffs etc, typically required on international projects) S.M.E. Setting of Major Equipment (M.E.), the lifting from the (air, road or barge) means of transport and temporary storage, the physical site transportation from say a warehouse / lay down area, the setting and erection labor, material and labor required to, set in place, erect / install internals, alignment, internal welding of the major equipment in it’s ultimate location for future production / mechanical operation and grouting, excludes crane costs, scaffolding, spare parts and vendor start up costs. S.W. Site Work – Scope of work includes all the general site work preparation of the new plant / facility site for construction together with required tree grubbing, general clearing, rough grading, hand and machine excavation, rock removal if required, cut and fill, imported fill / borrow / engineered material, site remediation (asbestos removal, lead paint and contaminated soil) tunneling / boring / jacking, on site / off site disposal, tamping, soil compaction and fine grading, drainage trenches, catch pits / culverts, manholes, run off drains / basins, dams, earth berms, railroad track and switch points / spurs, all necessary crusher run, hardcore, stone / gravel base, materials for hard standings, footpaths, roads, parking areas and including fencing / gates and any landscaping / plantings. Inside battery limit concrete or tarmac / bituminous pavements for roads, process area and parking areas: C.C. Civil / Concrete – Scope of work includes all necessary structural excavation (hand and machine), planking and strutting, tamping, foundations concrete / timber piling, sheet piling, backfill, formwork, reinforcing steel (cutting, fabricating and installing), accessories, mesh reinforcement, pre cast concrete, miscellaneous iron / steel cast in place items (holding down bolts / plates / brackets / channel cast in place angle iron), thrust blocks, grouting, temporary protection, finishing and curing of concrete, major equipment foundations and process equipment structures / pads is included in this account. Facilities / Building specific concrete including excavation, backfill, concrete foundations, formwork, rebar, elevated slabs etc. is included under Facilities / Buildings described later. S.S. Structural Steel - Scope of work includes all fabrication and installation activities specific to the cost of procuring (not the purchasing effort man hours this is included in the EPC ratio), welding, cutting, rolling, heat treating, pre-fabricating and installing major and minor structural steel members and miscellaneous steel / platforms, cold formed metal framing, pipe racks etc, (not cast in place steel channel / angle iron items which is typically installed during the concrete installation phase), related to, major equipment

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supports, checker plate, mesh type flooring, process structures, major equipment platforms, monorails, walkways, ladders and handrails. Structural steel is assumed to be delivered with prime coat paint application. Structural Steel for facilities / buildings is captured in the Facilities / Buildings ratio value. F.B. Facilities / Buildings – Scope of work take’s into account of the cost of the facility / buildings together with required excavation, backfill, hardcore, under slab stone, under slab utilities, concrete foundations and other cast in place and pre-cast concrete, house keeping pads, total superstructure (exterior and interior walls / structural support system concrete or structural steel), metal decking, stairs, windows, siding, drains, HVAC, plumbing, building service piping, fire protection, insulation, painting, roofing, penthouses, and all architectural finishes, wood / metal doors, wood work, built in cabinets / cupboards, elevators, escalators, BMS and utility piping to a demarcation point of say 10 feet / 3 meters outside the buildings exterior walls. The pipe joining this building piping should be captured in the piping account or in the O.S.B.L. piping what ever the case may be. Facility / Building specific (lighting / power / emergency) electrical work, such as facility / building power and lighting is included in this ratio value, excludes furniture, fixtures and window treatments. P.W. Piping - (below grade and above grade): Scope of work encompasses all metal, clay and plastic piping systems Refer to previous Note C regarding base case data, i.e. 60 / 40 split. Includes all related project underground piping supporting the specific project including but not limited to, utility, fire water, potable and process service underground lines to the I.S.B.L. inside battery limit boundary. The piping ratio / percentage value includes excavation, planking and strutting, backfill, removal of surplus material, concrete, stone, sand, bedding material and tarmac / concrete, all of the buy out of the required piping / fittings (bends, elbows, tees, reducers etc) (not the procurement related man hours), both for on site and off site fabrication and erection of all below grade / above ground process / utility / service related piping systems including steam tracing, steam traps, any sump ejectors, valves and fittings, includes hangars, pipe supports system testing (hydro / x rays, welding testing is typically included in O/H and indirect accounts), vents, drains, utility stations, eye wash stations / emergency showers and instrument connections to the established inside battery boundary. This ratio includes for the labor installation cost of relief / control valves (motor controlled valves) and inline instrumentation devices (pipe fitter installation work, claimed by pipe fitters on union executed projects). The material cost of these (instrumentation related items) is accounted for / included in the Instrument ratio / percentage (note this cost is typically a minor value). Ensure that no duplication takes place between sewer and storm / potable water piping systems (these systems could include cast iron, pre cast concrete, vitrified clay, PVC piping materials) covered in Site Works or in Facilities. Determine a point at which the Facility / Building piping is included with piping or facility / building typically 10 feet or 3 meters from exterior of exterior wall. E.W. Electrical Work – Scope of work includes all requisite labor and material for under ground and above grade power and lighting scope such as duct banks, duct manholes, grounding system, lightning protection, cable ducts, cable tray, conduit, wire, cable, cable pulling, terminations etc. to the established I.S.B.L. inside battery boundary. Also includes excavation, backfill and removal of surplus material, planking and strutting, concrete, stone, crusher run, sand and tarmac / concrete / colored concrete. All items required for the complete above ground power and lighting systems, emergency generator systems, M.C.C.’ s, motors, transformers and electrical heat tracing for the total project, specific to the inside battery limits scope of work. Also includes the installation of all electrical instruments and their hook-up (electrician work) but not the

13

material cost of the instrumentation device, which is included with the Instrument ratio value. I & C. Instrumentation / Controls – Scope of work includes all necessary material and labor specific to the cost of instrumentation / control work, all required instrumentation hardware / displays / panels / screens / monitors and wiring, in line instrument devices, control valves, relief valves, control / display panels, orifice fittings, conduit, junction boxes, control cable and all other instrument devices / items plus tubing, tube bundles, minor tubing and control wire tray materials essential to install these items. The labor man hours / cost (pipe fitter required work) to set and install various instrumentation / piping interface devices such as pressure relief / control valves, inline piping / instrumentation interfaces and orifice / flow measuring devices is accounted / captured for under Piping Work P.W. Extensive software programming work is excluded from this ratio, should be part of the EPC Engineering cost, or is work carried out by owner’s work force. Insulation / F.P. / Ref. Insulation / Fireproofing / Refractory Work – Scope of work includes all labor and material costs of insulation material and protective covering (plastic / aluminum / s. s. jacket) and fireproofing / refractory related to the major equipment (process) and process piping. Facility / Building related batt insulation etc is included with facility / buildings, fire protection systems are included with the piping. P. / S. F. / C: Painting / Special Finishes / Coatings. Scope of work includes all preparation / sandblasting / scrapping and protective coating of surfaces (hand work and sprayed applications) with paint and / or special finishes for the total project excluding facilities / buildings and off site related work. M.W: Minor work items – Scope of work covers the cost of the labor and material costs related, all minor work items, necessary vendor assistance, spare parts, start up activities, chemicals, grogg / catalyst, commissioning work, any minor / miscellaneous scope items and any rework. Excludes outside battery limit work / off site O.S.B.L. typically this could be in the 20 – 70% range. North American Location Factors The above four examples can be calibrated to different North American countries, i.e. USA, Canada and Mexico. The selected multipliers / values determined from examples (1) through (6) can be adjusted by the following multipliers (location factors), note these multipliers (location factors) are valid for the year 2009. Canada 1.03 (Montreal) Mexico 0.94 USA 1.00 Base Case For additional international cost data refer to The 2009 Global Construction Cost Database Yearbook. (85 + countries)

14

SECTION B - 3 SQUARE FOOT / M2 ESTIMATING DATA & SYSTEMS Square foot / M2 estimate(s) are valuable when some basic information is known about the new facility, number of floors may be known i.e. we think 5 floors would meet the local planning board, number of people using the facility i.e. between 300 and 400 people, plus possibly 50 visitors, however a lot more design information needs to be determined, finishes, floor to ceiling height, materials of construction, heating / cooling system etc, all these issues need to be established in the design process, the accuracy of this estimating method is perhaps in the 15% - 20% range. Square foot / M2 estimating is an excellent front end estimating tool that is widely used in the construction industry, most Architects, Engineers and related construction professionals have a decent appreciation of how this estimating technique is utilized, this section of the database provides 2009 square foot / M2 costs for a variety of industrial and commercial facilities, these values are current and can be calibrated to a number of overseas locations if needed, we have also endeavored to assign costs for revamp and modernization / upgrade of these specific facilities. To set the ground rules of the estimating method we need to start at the beginning, we are the earliest stages of a project, no more than 10% of the detailed design drawings and specifications have been completed – or perhaps it is still just a concept in the owners mind – a “lot” of uncertainty with the future project still exists, we typically know the location(s) i.e. Kutztown, Pennsylvania or Kabul, Afghanistan, footprint area – perhaps has been “roughed out”, usable square foot, number of floors are possibly known, number of people that will populate the building, but there is still a lot of details that have not been nailed down. At this point (milestone) in the projects life cycle we typically need a budget / cost estimate particularly during this stage which is many times called, (1) conceptual stage, (2) programming stage and or (3) schematic / preliminary stage, this is when the critical design decisions are made that for the most part dictate the future, go, no go verdict and the economics of the project. In the field of planning and designing a building component - say, roofing system or the wall system, the Architect / Engineer should judge not only the quality and performance factors of similar / contending systems, but also their comparative costs, life expectancy, maintenance costs and schedule implications. “Similar / contending systems” in this meaning it does not simply mean the relative unit costs of dissimilar solutions for the same roofing system. For the Architect / Engineer to accurately consider the cost ramifications of the for a chosen system, he or she should know the consequences which each solution will bring to bear on the total cost of the specific facility / building he or she is planning to design. All the way through this section, square foot / M2 cost figures are based on North American national averages – calibrated and benchmarked to Washington D.C., adjusted to 2009 pricing levels. Locality adjustment tables may be used to calibrate these costs to local conditions for both labor and materials. These square foot / M2 cost values include the usual contractors’ markup and profit and therefore represents the anticipated actual total installed square foot / M2 costs. Additionally, for purposes of cost comparison with similar buildings / facilities, there are examples of average building / facilities square foot / M2 costs are indicated. The values include foundations, substructure, superstructure, exterior closure, roofing systems, interior construction, elevators etc, mechanical / electrical systems, special construction, site work’s specific to the building footprint,

1

contractors fee and overhead, the square foot / M2 values exclude land purchase, Architectural fees usually ranging between 4% and 7%. Construction Management fees – usually ranging from 3% - 5% excluding general conditions and owner engineering services and any significant items outside the building footprint such as parking lots, landscaping, guard house and fencing. The information / data and prices included in this section have been compiled from industry sources considered to be dependable and to be representative of current market conditions. There is no warranty, or guarantee, as to the accuracy or adequacy of the cost data indicated, the values indicated are as has been indicated previously national averages. They are a good starting point in the estimating effort. Note: Adjustments should be made for applications that fall out side of the cost model size indicated square foot values. Example Building Cost Model = 18,000 SF, if proposed building is 10 % smaller (or smaller still) add 5%-10% to SF / M2 unit value. If proposed building is 10% larger (or larger than that value) discount value by 5% - 10%, Buildings and facilities typically get less expensive as they get bigger in footprint / useable space. The opposite is the case with smaller buildings the unit price, i.e. SF / M2 price typically gets larger as the building gets smaller. NEW INDUSTRIAL / COMMERCIAL SQUARE FOOT – M2 BUILDING COSTS 2009 COST BASIS The general approach is to determine the number of floors, footprint of building / facility, calculate usable square foot area of facility / building, select building type / specification from list below and multiply by calculated square footage by the appropriate SF/ M2 cost value. Modify for location by selecting city location factor indicated in Section B - 5. The following Facility / Building costs are specified by cost model size in S.F. together with number of floors in U.S. dollars per square foot / M2 by Facility / Building for each category of building. Facility / Building Costs

Cost Model SF

$ Low

$ High

Average $ SF Cost

Average $ M2 Cost

Advanced Chemical Weapons Laboratory Agricultural R&D Center

114,000

414

436

425

4,573

72,600

229

239

234

2,518

Animal Research / Testing Facility 2 Floors Apartments 1 – 3 Floors (Spec A) Apartments 1 – 3 Floors (Spec B) Apartments 3 – 5 Floors (Spec C) Apartments 3 – 5 Floors (Spec A) Apartments 3 – 5 Floors (Spec D) Apartments 5 – 25 Floors (Spec D) Apartments 5 – 25 Floors (Spec A) API – Pharmaceutical Facility

96,000

398

420

409

4,401

30,000

120

151

136

1,463

30,000

110

135

123

1,323

85,000

116

142

129

1,388

85,000

121

148

135

1,453

85,000

117

143

130

1,399

335,000

130

159

145

1,560

335,000

120

146

133

1,431

133,000

393

425

409

4,401

Auditorium 2 Story (Spec A)

45,700

125

153

139

1,496

Auditorium 2 Story (Spec D)

45,700

122

148

135

1,453

2

Auditorium 2 Story (Spec C)

45,700

117

142

130

1,399

Automobile Production Facility

585,000

101

107

104

1,119

Bakery

615,000

102

108

105

1,130

Bank 1 Story (Spec A)

9,200

150

184

167

1,797

Bank 1 Story (Spec D)

9,200

160

194

177

1,905

Bank 1 Story (Spec C)

9,200

146

179

163

1,754

Biological Manufacturing

340,000

719

763

741

7,973

Bio – Medical / R&D Center 3 Floors Bleach Manufacturing Facility

92,500

349

393

371

3,992

388,000

121

128

125

1,345

Brewery

181,000

102

108

105

1,130

Cable TV Facility

12,700

79

81

80

861

Chemical Process Plants 3 Floors Computer / Telecommunications Center 2 Floors cGMP ISO 6 - 8

56,000

70

80

75

807

27,700

104

117

111

1,194

117,500

926

970

948

10,200

cGMP ISO 7 - 8

88,600

704

747

726

7,812

Dairy / Cheese / Butter Production Data Processing Office

74,000

104

111

108

1,162

11,000

111

125

118

1,270

Fiber Production Facility

88,000

109

118

114

1,227

Food Production Facility 2 Floors GMP Production Facility 80% ISO 5,6,7 and 8 GMP Production Facility 60% ISO 5,6,7 and 8 GMP Production Facility 60% ISO 6,7,and 8 GMP Production Facility 50% ISO 7 and 8 GMP Production Unclassified 2 Floors Heavy Manufacturing Facility

73,000

100

106

103

1,108

137,000

926

970

948

10,200

137,000

883

910

897

9,652

137,000

654

687

671

7,220

137,000

528

578

553

5,950

137,000

169

212

191

2,055

40,000

89

95

92

990

Hospital 2 - 4 Story (Spec A)

166,700

198

243

221

2,378

Hospital 2 - 4 Story (Spec D)

166,700

195

238

217

2,335

Hospital 2 - 4 Story (Spec H)

166,700

203

248

226

2,432

Hospital 5 - 10 Story (Spec A)

333,600

195

238

217

2,335

Hospital 5 - 10 Story (Spec D)

333,600

192

234

213

2,292

Hospital 5 - 10 Story (Spec H)

333,600

200

244

222

2,389

Hotel 3 -5 story (Spec H)

201,750

126

154

140

1,506

Hotel 3 -5 story (Spec A)

201,750

122

149

136

1,463

Hotel 3 -5 story (Spec D)

201,750

119

145

132

1,420

Hotel 5 -20 story (Spec H)

742,600

122

149

136

1,463

Hotel 3 -5 story (Spec A)

742,600

119

145

132

1,420

Hotel 3 -5 story (Spec D)

742,600

114

141

128

1,377

Lithographic Line

44,000

106

118

112

1,205

Livestock / Agricultural Research Station Manufacturing Light

26,000

146

154

150

1,614

32,000

75

81

78

839

Manufacturing Facility 1 Floor (Spec E) Manufacturing Facility 1 Floor (Spec D) Manufacturing Facility 1 Floor

69,400

79

97

88

947

69,400

78

95

87

936

69,400

82

100

91

979

3

(Spec A) Manufacturing Facility 1 Floor (Spec F) Manufacturing Facility 1 Floor (Spec C) Manufacturing Facility 2 - 3 Floor (Spec E) Manufacturing Facility 2 - 3 Floor (Spec D) Manufacturing Facility 2 - 3 Floor (Spec A) Manufacturing Facility 2 - 3 Floor (Spec F) Manufacturing Facility 2 - 3 Floor (Spec C) Micro Chip / Satellite Manufacturing Facility Nanoscale Science Laboratory

69,400

74

89

82

882

69,400

77

95

86

925

108,600

82

100

91

979

108,600

81

99

90

968

108,600

85

103

94

1,011

108,600

77

93

85

915

108,600

80

98

89

958

163,000

321

354

338

3,637

98,500

256

299

278

2,991

Office 5 - 20 Floors (Shell only – no fit out) Office 1 - 3 Story (Spec A)

285,000

121

139

130

1,399

37,370

118

144

131

1,410

Office 1 - 3 Story (Spec I)

37,370

112

138

125

1,345

Office 1 - 3 Story (Spec C)

37,370

117

143

130

1,399

Office 1 - 3 Story (Spec D)

37,370

113

139

126

1,356

Office 4 - 8 Story (Spec A)

157,800

114

140

127

1,367

Office 4 - 8 Story (Spec I)

157,800

109

133

121

1,302

Office 4 - 8 Story (Spec C)

157,800

113

139

126

1,356

Office 4 - 38 Story (Spec D)

157,800

110

134

122

1,313

Paper Production

106,000

101

107

104

1,119

Parking Garage 3 - 5 Floors (Spec D) Parking Garage 3 - 5 Floors (Spec A) Parking Garage underground 2 Floors (Spec G) Pharmaceutical Development Facility Pharmaceutical / Medical Device Facility R&D / Pilot Plant ISO 7 and 8

255,600

47

58

53

570

255,600

44

55

50

538

67,800

62

76

69

742

78,000

371

398

385

4,143

51,000

589

632

611

6,574

121,500

441

462

452

4,864

Refrigerated Warehouses

54,000

102

104

103

1,108

Research Laboratory (Basic Research) 2 Floors Research Center Auto / Jet Engine Testing Tire Manufacturing Facility

62,000

167

183

175

1,883

64,000

163

169

166

1,786

73,000

124

127

126

1,356

Toner Production 2 Floors

98,800

103

108

106

1,141

Toxicology Research Laboratory 4 Floors University Research Medical Facility 9 Floors University / Biomedical Genomics University Class Rooms 2 - 4 Floors (Spec A) University Class Rooms 2 - 4 Floors (Spec C) University Class Rooms 2 - 4 Floors (Spec D) University Dormitory 3 - 5 Floors (Spec A)

122,000

354

376

365

3,927

345,400

643

681

662

7,123

237,500

371

398

385

4,143

105,700

130

160

145

1,560

105,700

125

152

139

1,496

105,700

133

163

148

1,592

123,700

124

151

138

1,485

4

University Dormitory 3 - 5 Floors (Spec C) University Dormitory 3 - 5 Floors (Spec D) University Laboratory 1 - 2 Floors (Spec A) University Laboratory 1 - 2 Floors (Spec C) University Laboratory 1 - 2 Floors (Spec D) Warehouse 80% / Office 20% / Distribution Center Warehouse 90% / Office 10% (Spec A) Warehouse 90% / Office 10% (Spec F) Warehouse 90% / Office 10% (Spec C) Warehouse 90% / Office 10% (Spec E) Warehouse (VL) Logistics Center

• • • • • • • • •

123,700

119

146

133

1,431

123,700

121

148

135

1,453

79,500

135

166

151

1,625

79,500

130

159

145

1,560

79,500

134

164

149

1,603

84,000

63

68

66

710

51,500

71

87

79

850

51,500

66

81

74

796

51,500

69

85

77

829

51,500

67

82

75

807

427,000

63

71

67

721

Specification A Facing with concrete block back-up Specification B Stucco on concrete block Specification C Ribbed concrete block Specification D Pre Cast concrete panels Specification E Insulated metal panels Specification F Tilt-up concrete panels Specification G R.C. frame cast on site Specification H Curtain wall / metal & glass panels Specification I EIFS / Dryvit wall panels

Front End Planning specific to the Revamp / Retrofit (EPC) Projects Altering an existing / functioning clean room makes the retrofitting of this type of project the most expensive and usually the most time consuming effort of all construction types. Prior to the establishment of the cost estimate / budget in the front end / initial visit to the facility some of the following topics should be raised: 1. Are there any current facility drawings and specifications (as-builts). 2. Are there any equipment spec sheets / energy usage reports. 3. Does the facility meet local codes and FDA / governmental guidelines, can they be “Grandfathered” or are they obsolete and need to be replaced. 4. Will we be operating in an existing facility, what impact will this have on worker productivity and material handling logistics, will construction workers need to wear gowns and masks. 5. Will we encounter asbestos, lead paint and mold, what is our plan to work through these issues? 6. How can we budget and scope out unforeseen / hidden conditions.

5

7. Will the current utilities (water, gas, steam, power) be able to support the “new” or revamped facility? 8. What are the starting completion milestones (do we need to estimate future inflation)? These initial questions will need to be answered prior to commencing the estimating effort. Many times these questions are not readily available a path forward needs to be established on how this important data can be obtained. Open topics during the front end estimating effort will help minimize the risk items that are inherent to this Revamp / Retrofit type of work. New and Revamped Hi-tech facilities are amongst some of the most costly type of construction that construction professionals will encounter, the data indicated below hopefully will assist in determining the cost of new and revamp construction projects specific to Hi-tech / manufacturing type facilities. The definition of revamp in this instance includes: • • • •

Rehabilitate / repair / remodel. Update / renovate. Refurbish / raze / gut. Refurbish with an “add on” new facility.

A word of warning it is not always cheaper to renovate an existing facility, it is sometimes more cost effective to design and build a new facility, an economic of the proposed revamped facility should take place to determined the cost differential of revamped V’s new. Consider trying to renovate a 30 – 50 year old manufacturing facility in a downtown area of a major city, traffic, problems, delivering materials and equipment, lifting heavy items of the equipment into the proposed facility and other specific construction logistical problems can cause the construction cost to increase. New Construction and Revamp Construction Capital Cost Estimating Factors / Calibrations: Facility / Building Costs New V’s Revamped / Upgraded (values include A/E costs, CM costs, they exclude land purchase and any owner costs) A = “New Build” / Grass roots facility, includes project specific site works, landscaping and new utilities required. B = Major Revamp / rehabilitation, assumes that facilities “External Enclosure” i.e. external walls, windows, roof (possibly) and structural shell (structural steel or CIP concrete / floors) can be reused, new services / utilities / life support services will be required, new internal walls, ceilings and floors required, certain existing items maybe utilized, stairwells, elevator shafts (use 50% - 85% of A values). Note 1. This 50 – 85% could grow to 100% – 135% if building remains in operation, building may need to be completed in phase and temporary offices may need to be established to house current facility residents. C = Moderate revamp / rehabilitation. A (considerable to minor revamp / rehabilitation possibly 50% of the buildings will be upgraded) revamp, internal walls floors, utility

6

services can be saved / utilized to some extent, however new load centers and new wiring will most probably be needed, ductwork, piping systems over 15 year would most probably be replaced in this application (use 25% - 50% of A values) refer to note 1 above; building may need to be completed in phases. New or limited laboratory services may be added (gas, water and power), possibly new ductwork and lighting needs could be part of this component. D = Minor Revamp / Superficial facelift (new carpet, some additional internal walls, additional services / upgrades, some new ceilings, new lobbies, new bathroom fixtures, complying with ADA (handicap requirements), electrical upgrades / fiber optics and repainting work (paint and scrape), (use 5% - 20% of A values) Assumes building will remain in operation. Facility / Building Costs

Cost Average Average “B” / SF “C” / SF “D” / SF Model SF SF $ Cost M2 $ = 0.75 = 0.45 = 0.15 Cost “A”

Advanced Chemical Weapons Laboratory

114,000

425

4574

319

191

64

Agricultural R&D Center

72,600

234

2521

175

105

35

Animal Research / Testing Facility 2 Floors

96,000

408

4397

307

184

61

Apartments 1 – 3 Floors (Spec A)

30,000

135

1457

102

61

20

Apartments 1 – 3 Floors (Spec B)

30,000

123

1321

92

56

19

Apartments 3 – 5 Floors (Spec C)

85,000

128

1384

97

58

19

Apartments 3 – 5 Floors (Spec A)

85,000

134

1449

101

61

20

Apartments 3 – 5 Floors (Spec D)

85,000

129

1393

97

58

19

Apartments 5 – 25 Floors (Spec D)

335,000

145

1554

109

65

22

Apartments 5 – 25 Floors (Spec A)

335,000

132

1425

100

60

20

API – Pharmaceutical Facility

133,000

408

4397

307

184

61

Auditorium 2 Story (Spec A)

45,700

140

1497

105

63

21

Auditorium 2 Story (Spec D)

45,700

135

1452

102

61

20

Auditorium 2 Story (Spec C)

45,700

129

1390

97

58

19

Automobile Production Facility

585,000

104

1119

78

47

16

Bakery

615,000

105

1132

79

47

16

Bank 1 Story (Spec A)

9,200

167

1798

125

76

25

Bank 1 Story (Spec D)

9,200

177

1905

133

80

26

Bank 1 Story (Spec C)

9,200

162

1743

122

72

24

340,000

741

7975

557

334

111

Biological Manufacturing

7

Bio – Medical / R&D Center 3 Floors

92,500

371

3987

278

167

56

Bleach Manufacturing Facility

388,000

125

1340

93

57

19

Brewery

181,000

105

1126

79

47

16

Cable TV Facility

12,700

80

856

60

36

12

Chemical Process Plants 3 Floors

56,000

76

810

57

34

12

Computer / Telecommunications Center 2 Floors

27,700

110

1184

83

49

17

cGMP ISO 6 - 8

117,500

948

10203

711

426

142

cGMP ISO 7 - 8

88,600

725

7798

544

327

109

Dairy / Cheese / Butter Production

74,000

107

1155

81

48

16

Data Processing Office

11,000

119

1273

89

54

18

Fiber Production Facility

88,000

113

1220

85

51

17

Food Production Facility 2 Floors

73,000

103

1108

78

46

16

GMP Production Facility 80% ISO 5,6,7 and 8

137,000

948

10203

711

426

142

GMP Production Facility 60% ISO 5,6,7 and 8

137,000

897

9645

673

403

134

GMP Production Facility 60% ISO 6,7,and 8

137,000

670

7212

503

301

101

GMP Production Facility 50% ISO 7 and 8

137,000

553

5951

415

249

83

GMP Production Unclassified 2 Floors

137,000

191

2053

144

86

28

Heavy Manufacturing Facility

40,000

92

991

69

42

14

Hospital 2 - 4 Story (Spec A)

166,700

221

2375

166

100

34

Hospital 2 - 4 Story (Spec D)

166,700

216

2329

163

98

33

Hospital 2 - 4 Story (Spec H)

166,700

225

2422

169

101

34

Hospital 5 - 10 Story (Spec A)

333,600

217

2336

163

98

33

Hospital 5 - 10 Story (Spec D)

333,600

213

2294

160

96

32

Hospital 5 - 10 Story (Spec H)

333,600

222

2388

166

100

34

Hotel 3 -5 story (Spec H)

201,750

141

1509

106

63

21

Hotel 3 -5 story (Spec A)

201,750

135

1463

102

61

20

Hotel 3 -5 story (Spec D)

201,750

132

1422

100

60

20

Hotel 5 -20 story (Spec H)

742,600

135

1463

102

61

20

Hotel 3 -5 story (Spec A)

742,600

131

1415

99

59

20

Hotel 3 -5 story (Spec D)

742,600

128

1374

97

58

19

Lithographic Line

44,000

112

1205

84

50

17

Livestock / Agricultural Research Station

26,000

150

1618

112

67

22

Manufacturing Light

32,000

78

836

59

35

12

8

Manufacturing Facility 1 Floor (Spec E)

69,400

88

944

66

40

14

Manufacturing Facility 1 Floor (Spec D)

69,400

86

929

65

39

13

Manufacturing Facility 1 Floor (Spec A)

69,400

90

975

68

41

14

Manufacturing Facility 1 Floor (Spec F)

69,400

82

876

62

37

13

Manufacturing Facility 1 Floor (Spec C)

69,400

86

922

65

39

13

Manufacturing Facility 2 - 3 Floor (Spec E)

108,600

91

980

68

41

14

Manufacturing Facility 2 - 3 Floor (Spec D)

108,600

89

964

67

40

14

Manufacturing Facility 2 - 3 Floor (Spec A)

108,600

93

1011

70

42

14

Manufacturing Facility 2 - 3 Floor (Spec F)

108,600

85

911

64

38

13

Manufacturing Facility 2 - 3 Floor (Spec C)

108,600

89

957

67

40

14

Micro Chip / Satellite Manufacturing Facility

163,000

338

3635

254

152

50

Nanoscale Science Laboratory

98,500

278

2990

209

125

42

Office 5 - 20 Floors (Shell only – no fit out)

285,000

130

1395

98

59

20

Office 1 - 3 Story (Spec A)

37,370

130

1405

98

59

20

Office 1 - 3 Story (Spec I)

37,370

125

1344

93

57

19

Office 1 - 3 Story (Spec C)

37,370

129

1392

97

58

19

Office 1 - 3 Story (Spec D)

37,370

126

1353

95

57

19

Office 4 - 8 Story (Spec A)

157,800

127

1370

96

57

19

Office 4 - 8 Story (Spec I)

157,800

122

1308

91

55

18

Office 4 - 8 Story (Spec C)

157,800

126

1357

95

57

19

Office 4 - 38 Story (Spec D)

157,800

123

1318

92

56

19

Paper Production

106,000

104

1117

78

47

16

Parking Garage 3 - 5 Floors (Spec D)

255,600

53

561

40

24

8

Parking Garage 3 - 5 Floors (Spec A)

255,600

49

530

37

22

7

Parking Garage underground 2 Floors (Spec G)

67,800

68

735

51

30

11

Pharmaceutical Development Facility

78,000

384

4134

289

173

58

Pharmaceutical / Medical Device Facility

51,000

610

6568

458

274

91

R&D / Pilot Plant ISO 7 and 8

121,500

452

4862

339

204

68

Refrigerated Warehouses

54,000

103

1108

78

46

16

9

Research Laboratory (Basic Research) 2 Floors

62,000

175

1883

131

79

26

Research Center Auto / Jet Engine Testing

64,000

166

1783

125

75

25

Tire Manufacturing Facility

73,000

126

1351

95

57

19

Toner Production 2 Floors

98,800

105

1135

79

47

16

Toxicology Research Laboratory 4 Floors

122,000

365

3929

274

165

55

University Research Medical Facility 9 Floors

345,400

663

7124

497

298

100

University / Biomedical Genomics

237,500

384

4134

289

173

58

University Class Rooms 2 4 Floors (Spec A)

105,700

145

1556

109

65

22

University Class Rooms 2 4 Floors (Spec C)

105,700

139

1494

104

62

21

University Class Rooms 2 4 Floors (Spec D)

105,700

148

1591

111

66

22

University Dormitory 3 - 5 Floors (Spec A)

123,700

138

1481

103

62

21

University Dormitory 3 - 5 Floors (Spec C)

123,700

132

1424

100

60

20

University Dormitory 3 - 5 Floors (Spec D)

123,700

134

1447

101

61

20

University Laboratory 1 - 2 Floors (Spec A)

79,500

151

1623

113

68

23

University Laboratory 1 - 2 Floors (Spec C)

79,500

145

1555

109

65

22

University Laboratory 1 - 2 Floors (Spec D)

79,500

149

1603

112

67

22

Warehouse 80% / Office 20% / Distribution Center

84,000

65

704

49

29

9

Warehouse 90% / Office 10% (Spec A)

51,500

79

852

59

36

12

Warehouse 90% / Office 10% (Spec F)

51,500

74

792

56

34

12

Warehouse 90% / Office 10% (Spec C)

51,500

77

831

58

35

12

Warehouse 90% / Office 10% (Spec E)

51,500

75

799

56

34

12

Warehouse (VL) Logistics Center

427,000

67

722

50

30

11

Note: the accuracy of these numbers indicated in columns A, B; C and D are in the 10% – 15% range: AVERAGE BUILDING COSTS BY PERCENTAGE

10

BUILDING TYPE: HEAVY MANUFACTURING BUILDINGS (2009 Cost Basis):

PERCENTAG E BUILDING SYSTEM • • • • • • • • • • • • • • •

FOUNDATIONS FLOORS ON GRADE (SOG) SUPERSTRUCTUR E ROOFING EXTERIOR WALLS PARTITIONS WALL FINISHES FLOOR FINISHES CEILING FINISHES CONVEYING SYSTEMS SPECIALTIES FIXED EQUIPMENT HVAC PLUMBING ELECTRICAL Total

AVERAGE $ / SF TOTAL

3.2% 9.1%

$3.35 $9.70

19.9%

$9.59

3.8% 10.9% 0.5% 1.8% 4.1% 2.2% 0.0%

$4.03 $11.60 $0.51 $1.92 $4.36 $2.34 $0.00

0.9% 10.3% 9.1% 7.8% 16.4% 100.0%

$0.90 $10.97 $9.69 $8.31 $17.46 $94.73

GROSS BUILDING SF COST (excludes parking areas / and items outside facility footprint and all Design / CM fees)

11

25 floors - 200 apartments Major N.E. USA City (not NY City) – Downtown location – 2007 Cost Basis: 437,690 Total GSF U/G parking for 200 Vehicles # Category / Element $ Cost in millions % of Total Cost Cost per unit 1 General Conditions / Preliminaries (CM 5.592 6.99% staff) 2 Demolition 0.552 0.69% 3 Excavation for basement 0.629 0.79% 4 Piling / caissons 1.328 1.66% 5 Landscaping / plantings 0.063 0.08% 6 Exterior paving 0.168 0.21% 7 Concrete structure (Concrete frame & P.C. 19.792 24.74% floors) 8 Structural steel (framing) 0.792 0.99% 9 Steel stairs 0.614 0.77% 10 Carpentry 0.715 0.89% 11 Cabinets / millwork (foyer - lobby) 0.104 0.13% 12 Membrane roof 0.527 0.66% 13 Roofing pavers etc 0.021 0.03% 14 Roof screen 0.225 0.28% 15 Garage doors 0.087 0.11% 16 Doors / frames / lobby entrance 2.448 3.06% 17 Door furniture 0.187 0.23% 18 Caulking 0.153 0.19% 19 Windows / Ext doors 3.144 3.93% 20 Internal walls / ceiling 5.835 7.29% 21 Tile work 1.656 2.07% 22 Ceiling treatments 0.350 0.44% 23 Carpet / wood floors 1.170 1.46% 24 Paint 0.908 1.13% 25 Kitchen cabinets 0.901 1.13% 26 Kitchen appliances 0.691 0.86% 27 Miscl louvers 0.105 0.13% 28 Signs 0.057 0.07% 29 Toilet Fixtures 0.487 0.61% 30 Fire Protection 1.313 1.64% 31 Plumbing (incl some fixtures) 5.101 6.38% $25,505 32 HVAC 5.311 6.64% $26,555 33 Trash chute 0.140 0.17% 34 Blinds / Drapes / WT 0.211 0.26% 35 Mail boxes 0.083 0.10% 36 Washer / dryer venting 0.281 0.35% 37 Elevators (2 #) 1.747 2.18% 38 Electrical 6.427 8.03% $32,135 39 Security system / CCTV / Miscellaneous 0.351 0.44% items Construction Cost 87.82% 70.266

12

40 41 42 43 44

Insurance Business Tax Building permits Bonding / Surety / Sub guard CM Fee Construction Cost + above 5 items 45 A/E Fee (includes MEP and Structural) Construction Cost A/E fees Cost per SF

0.842 0.275 0.214 1.175 2.350 75.122 4.890 80.012

1.05% 0.34% 0.27% 1.47% 2.94% 93.89% 6.11% 100.00%

$400,060 $183

Upgrades by tenants not included 8 units per floor 1,200 – 1,850 SF per unit Excludes land purchase

Various all inclusive price lists (Labor & Material) Unit Prices used for quick OOM budgets or for checking pricing from a contractor. (Includes contractors O/H and profit) (To convert SF to M2 multiply by 10.76 – to convert LF to M multiply by 3.28) Construction category Concrete paving 4” thick Bituminous paving / parking 4” thick with 4” stone Fume Hoods excluding HVAC ductwork Dock Levelers 6’ x 8’ Directory Boards 4’ x 3’ Emergency Lighting (nic-cad) Lawn Sprinkler System Epoxy Resin Floor Welded PVC Floor Epoxy Terrazzo with wainscot Vinyl Tile Floor High Pressure Laminated Wall System Clean Room Demountable Wall Panel Ceiling Demount / Access Clean room CCTV system (1 # TV / 2 # Camera’s) Locker single tier 72” high x 18” wide Washer Heavy Duty (20 – 30 pound) Dryer – Gas or Electric Heavy Duty (20 – 30 pound) Card Reader (250 Cards) Smoke Detector Fume Hood / with ductwork Dock Levelers 6’ x 8’ Ditto 8’ x 8’

13

Unit Price $2.99 / $4.15 SF $16.70 / $25.94 SY $777 - $1,901 each $3,812 to $6,195 each $546 - $982 each $462 - $751 each $0.79 SF $5.67 SF $5.57 SF $13.44 SF $2.94 SF $28.77 SF $38.85 SF $21.50 SF $3,990 EACH $173 EACH $1,124 EACH $1,407 EACH $2,021 EACH $163 EACH $903 - $1,827 / LF $4,641 EACH $5,381 EACH

SECTION B – 4 UNIT PRICE ESTIMATING DATA / INFORMATION The following listing of unit prices are focused on process / manufacturing CAPEX projects ranging in cost from $0.50 to $100 + million. These unit costs are for new construction, it should be noted that alteration / revamp / major renovation construction work could cost between 10% and 50% more than the values indicated the nine listings indicated. Theses unit prices are 2009 values (calibrated to mid point of year) they are based on historical data of projects completed in North America and have been adjusted to reflect pricing within the Washington DC beltway (25 - 40 mile radius). A hybrid of Union / Non-union pay scales have been used in determining labor / installation values: (The labor cost value includes a value for construction / rental equipment, i.e., 6.50%, this is for cranes, welding machines and similar types of equipment required to complete each individual task). The units include supervision, plus a profit margin of 10%. (A percentage of between 7 % – 11% - suggest 8.5% should be added to the values indicated to capture site establishment (Division 1 / Preliminaries) costs for such items as scaffolding, trailers, testing, temporary warehousing and testing etc: General Conversion Values - Imperial to Metric Units 25 US Gallons 1 Inch 1 square foot 1 Meter 1 Meter 1 Square yard 1 Cubic foot 1 Foot 1 Yard 1 Mile – 1,760 yards 1 Cubic Yard 10.76 Square Feet: 1 Gallon (Imp.) 1 Acre 1 M3 = 10 HP °F to °C 1000 kg - 1 Tonne #

94.63 L / 20.81 Imperial Gallons 2.54 (cm) 0.09 (M2) 3.28 Lineal Feet (LF) 39.37 inches 0.84 (M2) 0.0283 m3 0.30 (M) 0.91 (M) 1.61 kilometer (km) 0.765 (M3) 1 (M2) 4.55 liters (L) 0.40 hectare (HA) 1.31 Cubic Yards: 7.646 KW Deduct 32, then multiply by 5, then divide by 9 0.984 (long) ton

Description

Unit

Material

Labor

Total

1

(1) CSI DIVISION 1 / GENERAL CONDITIONS & DEMOLITION WORK Superintendent

Month

-

7,063.80

7,063.80

2

Field Engineer

Month

-

6,180.72

6,180.72

3

Foreman

Month

-

5,309.20

5,309.20

4

Timekeeper / Clerk

Month

-

2,791.36

2,791.36

5

Planner / Cost Engineer / Office Administrator

Month

-

6,723.60

6,723.60

1

6

Safety Engineer

Month

-

5,080.40

7 8 9

Demolition, fencing chain link 8’ to 12’high

Warehouse Supervisor

Month

-

3,530.80

3,530.80

Secretary

Month

-

2,620.80

2,620.80

LF

-

1.96

1.96

TON SF

-

67.64 2.58

67.64 2.58

12 Demolition, frame building, two story

SF

-

1.98

1.98

13 Demolition, frame building, three story

SF

-

2.26

2.26

14 Demolition, concrete block building, two story 15 Demolition, concrete building, pre cast panel, frame roof

SF SF

3.33

6.14 6.62

6.14 9.95

16 Demolition, steel frame building, salvage steel

SF

3.12

11.65

14.77

17 Demolition, remove wall, concrete to 10” thick reinforced

SF

3.48

3.48

6.97

18 Demolition, remove wall, concrete block, reinforced

SF

1.98

2.50

4.47

19 Demolition, remove wall, 8” solid brick, reinforced, grout

SF

1.30

8.84

10.14

20 Demolition, remove built-up roof, on plywood 21 Demolition, remove built-up roof, on concrete 22 Demolition, remove ceiling, plaster/ lath/ frame

SQ SQ SF

2.39 2.39 0.07

48.36 46.80 1.77

50.75 49.19 1.84

23 Demolition, remove ceiling, acoustic suspended grid

SF

0.10

0.52

0.62

24 Demolition, remove concrete foundation, plain concrete no rebar

CY

62.40

61.36

123.76

25 Demolition, remove concrete foundation, with rebar

CY

68.64

83.20

151.84

26 Demolition, remove pavement, asphalt / concrete, short haul, 20,000 to 50,000 SF

SF

0.26

0.14

0.40

27 Demolition, remove pavement, asphalt / concrete, short haul, over 50,000 SF

SF

0.12

0.06

0.19

28 Demolition, remove pavement, concrete slab, 6” thick, with rebar

SF

0.73

0.73

1.46

29 Demolition, remove pavement, 4” thick concrete sidewalk

SF

0.59

0.86

1.46

30 Demolition, remove pavement, concrete catch basin, sump and dry well

EACH

142.00

176.88

318.88

31 Demolition, remove hydrant, with reset thrust blocks

EACH

161.94

373.68

535.62

32 Demolition, remove 4” dia, storm drain line, dispose

LF

4.76

5.61

10.37

33 Demolition, remove 4” dia, sanitary line, dispose

LF

4.76

6.09

10.86

EACH

62.28

268.67

330.95

35 Demolition, structural steel

TON

-

497.96

497.96

36 Demolition, Mechanical equipment

TON

-

746.95

746.95

37 Demolition, C S Pipe 2” and below

LF

-

12.45

12.45

38 Demolition, C S Pipe 2” - 6”

LF

-

20.75

20.75

10 Tipping Fee’s General Construction Material 11 Demolition, frame building, one story

34 Demolition, Transformer, dry type, 50 KVA

2

5,080.40

39 Drilling & blasting under 1,000 CY

CY

3.74

7.83

11.58

40 Drilling & blasting under 2,500 CY

CY

3.40

6.35

9.76

41 Drilling & blasting under 5,000 CY

CY

3.07

5.50

8.57

42 Soil & waste remediation / removal

CY

1.41

8.11

9.53

43 Onsite encapsulation

CY

8.62

16.28

24.90

44 C.S. 2,500 gallon & remove piping & backfill

Ea

873.62

1,406.87

2,280.49

45 Ditto 5,000

Ea

1,089.19

2,541.45

3,630.64

46 Ditto 10,000 47 Office Trailer 8’ x 20’ 48 Mob / De-mobilize 49 Office Trailer 10’ x 48’

Ea

1,384.18

4,197.93

5,582.11

MONTH

276.77

-

276.77

L/S

549.47

-

549.47

MONTH

373.48

-

373.48

50 Mob / De-mobilize

L/S

889.22

-

889.22

51 Air Compressor 250 CFM Diesel

Day

-

124.80

124.80

52 Ditto 750 CFM

Day

-

221.25

221.25

53 Backhoe (JCB)

Day

-

206.49

206.49

54 Concrete trowel machine 36” dia

Day

-

83.96

83.96

55 Crane Tower 200’ high 125’ Radius 10,000 lift

Day

-

836.18

836.18

56 Gunite / concrete pumping skid 20 CY / Hour

Day

-

375.00

375.00

57 Concrete Pump (truck mounted) Putzmeister 115 CY / hour 58 Ditto 200 CY / Hour

Hour

-

97.00

97.50

Hour

-

115.00

115.00

59 Hydra crane Terex 15 Ton

Hour

-

73.00

73.00

60 Ditto 30 Ton

Hour

-

84.00

84.00

61 Ditto 60 Ton

Hour

-

103.00

103.00

62 Ditto 100 ton (Grove)

Hour

-

241.00

241.00

63 Ditto 150 ton

Hour

-

323.00

323.00

64 Gradall 0.5 CY

Hour

-

59.00

59.00

65 Ditto 1.25 CY

Hour

-

102.00

102.00

66 Trencher Chain 15”

Hour

-

12.00

12.00

67 Ready mix concrete truck 10 CY / 7.5 M3

Hour

-

68 Ditto 12 CY / 9 M3

Hour

69 Ditto 14 CY / 11 M3

Hour

-

82.00

82.00

90200

90200

102.00

102.00

70 Bulldozer 50 kw

Day

-

452.40

452.40

71 Ditto 75 kw

Day

-

483.60

483.60

72 Ditto 100 kw

Day

-

608.40

608.40

73 Dump truck 65 T

Day

-

1,294.80

1,294.80

74 Dozer 150 HP

Day

-

697.77

697.77

75 F.E. loader 2.5 CY

Day

-

334.70

334.70

76 Truck P.U. 0.50 Ton

Day

-

102.11

102.11

77 Ditto 1.50 Ton

Day

-

146.36

146.36

78 Ditto Dump 15 Ton

Day

-

414.13

414.13

79 Forklift 3,000 pound 12’ lift

Day

-

178.13

178.13

80 Roller Tandem 36” wide

Day

-

136.15

136.15

81 Welding machine diesel 250 Amps

Day

-

104.37

104.37

3

82 Bobcat skid steer loader

Day

-

228.80

228.80

83 Hydraulic hammers 780 Case rubber tire

Day

-

576.80

576.80

84 Hydraulic crane, truck mounted 10 T with outriggers 85 Ditto 15 T

Day

-

546.00

546.00

Day

-

613.60

613.60

86 Ditto 25 T

Day

-

712.00

712.00

87 Ditto 50 T

Day

-

764.40

764.40

88 Ditto 75 T

Day

-

868.40

868.40

89 Concrete finisher, gas 750 mm diameter

Day

-

80.08

80.08

90 Ditto 1.00 M diameter

Day

-

98.80

98.80

91 Hoist, electric- attached to building 50’ high 1,500 pounds capacity 92 Ditto 100’ 2,000 pounds

Day

-

525.00

525.00

Day

-

750.00

750.00

93 Ditto 150’ 5,000 pounds

Day

-

1,235.00

1,235.00

94 Demolition of plain concrete 75 mm thick at grade 95 Demolition of plain concrete 100 mm thick ditto

M2

5.18

6.53

11.71

M2

6.75

8.04

14.79

96 Demolition of plain concrete 150 mm thick ditto

M2

9.50

9.77

19.26

97 Demolition of reinf, concrete 75 mm thick ditto

M2

9.88

12.37

22.25

98 Demolition of reinf, concrete 100 mm thick ditto

M2

12.10

15.33

27.42

99 Demolition of reinf, concrete 150 mm thick ditto

M2

15.01

18.68

33.69

100 Demolition of reinf, concrete 150 mm thick suspended floor

M2

11.49

11.76

23.25

4

#

Description

Unit

Material

Labor

Total

1

(2) CSI DIVISION 2 / SITE CONSTRUCTION WORK Clear & grub, brush and disposal

SF

0.12

0.15

0.27

2

Strip and stockpile 6” deep

CY

2.07

1.39

3.46

3

Rough grade machine

SF

0.06

0.07

0.13

4

Fine grade machine

SF

0.07

0.22

0.29

5

6” diameter 15’ high

Each

22.69

141.82

164.52

6

8” diameter 20’ high

Each

28.37

215.57

243.94

7

10” diameter 25’ high

Each

39.72

323.36

363.07

8

12” diameter 30’ high

Each

51.06

453.84

504.90

9

24” diameter 50’ high

Each

62.41

663.73

726.14

CY

-

1.37

1.37

CY

-

1.05

1.05

10 N/E 100,000 CY By Pan or FE. Loader (in spoil heaps) 11 N/E 250,000 CY ditto 12 N/E 500,000 CY ditto

CY

-

0.92

0.92

13 Disposal of excavation n/e 2.5 miles

CY

0.51

2.66

3.17

14 Site, cut and fill, earth.

CY

2.93

2.04

4.97

15 Engineered fill, imported one mile

CY

18.69

1.24

19.93

16 Engineered fill, imported two mile

CY

21.17

1.24

22.41

17 Engineered fill, imported three mile

CY

23.66

1.24

24.90

18 Engineered fill, compaction, by roller

CY

0.94

1.05

1.99

19 Engineered fill, compaction, by sheep’s foot

CY

1.23

1.26

2.49

20 Engineered fill, dozer spread, no material

CY

0.70

0.61

1.31

21 Backfill, machine, no compaction

CY

4.13

10.31

14.44

22 Backfill, hand, no compaction

CY

7.17

17.48

24.65

23 Pavement, asphalt, driveway, 2” thick, 4” base

SF

1.10

1.36

2.46

24 Pavement, asphalt, parking lot, 2” thick, 6” base

SF

1.36

1.57

2.93

25 Pavement, asphalt, street, 3” thick, 8” base, 10 sub-base

SF

2.10

2.93

5.03

26 Add or deduct for each additional 1” of base rock

SF

0.16

-

0.16

27 Add or deduct for each additional 1” of asphalt / concrete

SF

0.51

-

0.51

28 Pavement, concrete, driveway, 2” thick, 4” base

SF

1.68

2.29

3.97

29 Pavement, concrete, truck & ramp, 3” thick, 8” base

SF

2.37

3.36

5.73

EACH

20.81

13.95

34.76

31 Curb and gutter, 4’ sidewalk, mono

LF

24.29

10.21

34.51

32 Brick paving, sand bed, 1” compact

SF

2.87

4.74

7.61

30 Bumper block, parking, pre cast, 3’ long

5

33 Underground service, concrete encased, 100 Amp, 600 V, 4-THHN #2 copper wire, grounded

LF

20.49

8.87

29.36

34 Underground service, concrete encased, 400 Amp, 600 V, 3-500MCM copper wire, grounded

LF

45.51

14.88

60.39

35 Underground service, fiber conduit, 300 Amp, 600 V, 4-THHN 350 MCM copper wire, grounded

LF

31.54

19.35

50.90

36 Underground service, rigid steel conduit, 100 Amp, 600 V, 4-THHN #2 copper wire

LF

18.95

16.98

35.93

37 Utility pole, with transformer, 250 KVA

EACH

19,618.58

9,030.78

28,649.36

38 Utility pole, with transformer, 100 KVA,

EACH

6,788.65

7,137.43

13,926.08

39 Site drainage, under drain, 4” pvc pipe

LF

9.13

21.06

30.19

40 Site drainage, under drain, 6” pvc pipe

LF

10.21

21.83

32.04

41 Site drainage, under drain, 10” pvc pipe

LF

12.21

23.05

35.26

42 Sanitary sewer, cast iron pipe, 4” diameter

LF

13.79

15.22

29.01

43 Sanitary sewer, cast iron pipe, 6” diameter

LF

23.94

20.75

44.69

44 Sanitary sewer, cast iron pipe, 10 “ diameter

LF

60.29

25.65

85.94

45 Storm drainage, reinforced concrete pipe, 12” diameter

LF

19.30

22.31

41.61

46 Storm drainage, reinforced concrete pipe, 15” diameter

LF

27.78

26.41

54.18

47 Storm drainage, reinforced concrete pipe, 18” diameter

LF

33.35

32.75

66.10

48 Storm drainage, reinforced concrete pipe, 36” diameter

LF

98.40

55.92

154.33

49 Storm drainage, corrugated metal pipe, 8” diameter

LF

9.34

14.82

24.16

50 Storm drainage, corrugated metal pipe, 15” diameter

LF

11.86

19.52

31.38

51 Sanitary sewer, PVC pipe, 4” diameter

LF

4.86

17.83

22.68

52 Sanitary sewer, PVC pipe, 8” diameter

LF

7.17

20.05

27.22

53 Sanitary sewer, PVC pipe, 12” diameter

LF

14.21

122.49

136.70

54 Water service, copper pipe, 2” diameter

LF

12.84

15.33

28.17

55 Water service, copper pipe, 3” diameter

LF

27.64

17.67

45.31

56 Water service, copper pipe, 4” diameter

LF

39.36

16.43

55.80

57 Water service, PVC MUNI C900, 4” diameter

LF

12.30

12.59

24.90

58 Water service, PVC MUNI C900, 6” diameter

LF

14.71

13.95

28.65

59 Water service, ductile iron pipe, 4” diameter

LF

27.26

17.58

44.83

60 Water service, ductile iron pipe, 6” diameter

LF

34.26

23.55

57.80

61 Gas/ Steam service, black steel pipe, wrapped, 1” diameter

LF

7.20

13.45

20.64

6

62 Gas/ Steam service, black steel pipe, wrapped, 2” diameter

LF

17.69

17.08

34.77

63 Catch basin, with grate, 2’X 2’ X 4’

EACH

616.58

617.21

1,233.79

64 Manhole, with lid 4’ diameter X 6’-8’ deep

EACH

1,382.65

847.03

2,229.68

65 Fuel storage tank, underground, 1000 gallon

EACH

11,626.05

760.08

12,386.13

66 Hand excavation loose material

CY

5.11

30.64

35.74

67 Ditto medium material

CY

5.11

41.98

47.09

68 Ditto hard material

CY

5.11

51.06

56.17

69 Hand backfilling

CY

2.84

18.19

21.03

70 Underpinning foundation by hand

CY

11.35

255.29

266.64

71 Site lighting, underground wire, 30’ pole, mercury vapor, 175 watt. 72 Light pole, steel. 25’ high, 1 arm bracket

EACH

1,370.18

1,993.00

3,363.18

EACH

1,007.49

781.56

1,789.05

73 Light pole, steel, 30’ high, 1 arm bracket

EACH

1,343.33

1,001.38

2,344.71

74 Light pole, aluminum, 25’ high, 1 arm bracket

EACH

1,013.59

842.63

1,856.22

75 Light pole, aluminum, 30’ high, 1 arm bracket

EACH

1,599.77

1,025.80

2,625.57

76 Ground Rod / Copper Spike

EACH

20.46

49.80

70.25

77 Lightning Arrestor Pole mounted

EACH

29.05

124.50

153.55

78 Area N/E 50,000 SF

SF

0.04

0.23

0.27

79 Area N/E 150,000 SF

SF

0.03

0.22

0.25

80 Hydro seeding Area N/E 250,000 SF

SF

0.04

0.19

0.23

81 Track work 4’8”

LF

31.54

48.22

79.77

82 Stone / Ballast

CY

16.73

10.77

27.51

83 Excavate by m/c to reduced levels n/e 1 m & deposit on site 84 Ditto & remove from site n/e 5 miles

M3

5.27

9.58

14.85

M3

5.44

18.97

24.41

M3

6.44

9.60

16.04

M3

6.53

19.31

25.84

M3

6.14

11.61

17.74

M3

6.35

20.48

26.83

M3

8.04

12.84

20.88

M3

8.04

10.69

18.73

91 Ditto reinf concrete

M3

12.15

12.57

24.72

92 Ditto masonry (brick & block work)

M3

9.22

9.17

18.40

93 Compact excavated material to 95% on site in 150 mm layers 94 Imported fill (sand) to 95% on site in 150 mm layers 95 Ditto crushed stone n/e 50 mm ditto

M3

4.91

13.87

18.78

M3

19.16

18.19

37.35

M3

20.35

19.38

39.73

M3

9.44

10.36

19.80

M2

23.48

6.80

30.28

M2

27.58

7.45

35.03

85 Excavate by m/c to reduced levels n/e 5 m & deposit on site 86 Ditto & remove from site n/e 5 miles 87 Excavate by m/c for trench n/e 500 mm & n/e 1.5 M deep & deposit on site 88 Excavate by m/c for trench n/e 500 mm & n/e 1.5 M deep & remove from site n/e 5 miles 89 Extra over excavation for breaking out rock & removal from site 90 Ditto plain concrete

96 Ditto hardcore / demolished brick & block work ditto 97 Bitumen paving 75 mm top course on 100 mm crusher run (excludes excavation) 98 Ditto on 150 mm crusher run (excludes excavation)

7

99 Ditto 100 mm top course on 200 mm crusher run (excludes excavation) 100 Concrete 100 mm thick reinforced with fabric on 100 mm crusher run (excludes excavation) 101 Ditto 150 mm on 150 mm ditto

8

M2

28.98

8.90

37.89

M2

31.95

5.14

37.09

M2

36.43

6.85

43.28

#

Description

Unit

Material

Labor

Total

1

(3) CSI DIVISION 2 & 3 FOUNDATIONS / U.G. WORK Compaction of excavated material

CY

1.44

2.54

3.97

2

Ditto to 95%

CY

2.88

3.09

5.97

3

Excavate trench 3’ wide n/e 5’ deep and backfill (includes P & S)

CY

4.08

8.88

12.96

4

Excavate trench 4’ wide n/e 10’ deep and backfill (includes P & S)

CY

5.44

9.76

15.20

5

Excavate trench 5’ wide n/e 15’ deep and backfill (includes P & S)

CY

6.59

11.05

17.64

6

Piles, pre cast concrete, square 10”

LF

14.59

14.05

28.64

7

Piles, pre cast concrete, square 12”

LF

17.28

15.49

32.77

8

Piles, pre cast concrete, square 18”

LF

17.69

15.24

32.93

9

Piles, steel H section, 10”

LF

35.22

17.56

52.78

10 Piles, pipe, 12”, concrete filled

LF

15.55

17.59

33.13

11 Piles, wood, untreated to 40’

LF

6.59

11.66

18.25

12 12” diameter x 10’ long with rebar, no casing

EACH

86.08

209.30

295.38

13 18” diameter x 20’ long with rebar, no casing

EACH

212.33

480.80

693.13

14 24” diameter x 30’ long with rebar, no casing

EACH

556.64

808.88

1,365.52

15 36” diameter x 40’ long with rebar, no casing

EACH

1,859.26

1,606.44

3,465.70

16 48” diameter x 50’ long with rebar, no casing

EACH

3,672.61

2,737.74

6,410.35

17 3” Bit paving on 6” crusher run 16’ wide

LF

42.46

44.12

86.58

18 4” ditto 24’ wide

LF

55.09

70.14

125.23

19 Planking & Strutting to trench

SF

0.63

1.35

1.99

20 Sheet piling (20 uses)

SF

0.92

1.98

2.89

21 Sheet piling (Left in place)

SF

16.53

5.94

22.46

22 Reinforced concrete foundations, including excavation by machine, b/f, concrete, rebar and formwork, 3,000 psi. 2’ x 2’ x 1’ 23 Ditto 3’ x 3’ x 2’ including excavation by machine, b/f, concrete, rebar and formwork, 3,000 psi.

EACH

37.44

24.96

62.40

EACH

158.08

104.00

262.08

24 Ditto 3’ x 3’ x 3’ including excavation by machine, b/f, concrete, rebar and formwork, 3,000 psi. 25 Ditto 4’ x 4’ x 2’ including excavation by machine, b/f, concrete, rebar and formwork, 3,000 psi. 26 Ditto 5’ x 5’ x 2’ including excavation by machine, b/f, concrete, rebar and formwork, 3,000 psi. 27 Ditto 6’ x 6’ x 2’ including excavation by machine, b/f, concrete, rebar and formwork, 3,000 psi. 28 Ditto 8’ x 8’ x 3’ including excavation by machine, b/f, concrete, rebar and formwork, 3,000 psi.

EACH

237.12

156.00

393.12

EACH

278.72

187.20

465.92

EACH

440.96

291.20

732.16

EACH

790.40

520.00

1,310.40

EACH

1,684.80

1,110.78

2,795.58

9

29 Ditto 10’ x 10’ x 3’

EACH

2,246.40

1,497.60

3,744.00

30 Foundation, underpinning, 5’ deep, (machine excavation – tremi - hand packed concrete

LF

258.23

333.74

591.97

31 Foundation, underpinning, 10’ deep, (machine excavation – tremi - hand packed concrete

LF

350.05

412.93

762.99

32 Concrete 3,000 PSI reinforced in 4 “ thick wall above and below grade

SF

6.28

3.91

10.19

33 Concrete 3,000 PSI reinforced in 6 “ thick wall above and below grade

SF

7.74

4.59

12.32

34 Concrete 3,000 PSI reinforced in 8 “ thick wall above and below grade

SF

8.55

5.17

13.72

35 Concrete 3,000 PSI reinforced in 10 “ thick wall above and below grade

SF

9.69

6.56

16.26

36 Concrete 3,000 PSI reinforced in 12 “ thick wall above and below grade

SF

10.39

7.40

17.79

37 8” CMU wall (with reinforcing wire and doweled to foundation in 1- 3 struck joint)

SF

4.71

4.47

9.18

38 10” CMU wall ditto

SF

5.99

5.43

11.42

39 12” CMU wall ditto

SF

7.18

6.27

13.45

40 Bituminous paint rolled on in 2 applications

SF

0.19

1.15

1.34

41 Waterproofing, hot bitumen coatings, vertical surfaces, walls, per coat

SF

0.12

0.96

1.08

42 Waterproofing, hot coating, vertical surfaces, hot mop, 30# felt, 2 ply

SF

0.35

1.29

1.64

43 Waterproofing, cold application, verticals, waterproof, 1/16” neoprene sheet

SF

0.97

1.40

2.37

44 Waterproofing, emulsion, verticals, waterproof, asphalt paint, brush/coat

SF

0.18

0.45

0.62

45 Waterproofing, emulsion, vertical, waterproof, silicone, spray, 2 coat finish

SF

0.30

0.38

0.69

46 Under drain, corrugated polyethylene pipe, perforated, 3” diameter

LF

0.36

7.04

7.40

47 Under drain, corrugated polyethylene pipe, perforated, 4” diameter

LF

0.62

7.34

7.97

48 Under drain, corrugated polyethylene pipe, perforated, 6” diameter

LF

1.16

7.70

8.86

49 Under drain, corrugated polyethylene pipe, perforated, 12” diameter

LF

5.64

8.36

14.00

50 Slab on grade, reinforced concrete, 4” thick

SF

1.89

2.25

4.14

51 Slab on grade, reinforced concrete, 5” thick

SF

1.97

2.28

4.24

52 Slab on grade, reinforced concrete, 6” thick

SF

2.37

2.37

4.74

53 Slab on grade, reinforced concrete, 8” thick

SF

3.37

4.48

7.85

54 Slab on grade, reinforced concrete, 10” thick

SF

4.01

4.89

8.90

55 Slab on grade, reinforced concrete, 12” thick

SF

4.26

5.29

9.56

56 Topping concrete on existing SOG

SF

1.50

1.62

3.12

10

57 Slab topping / screed 1”

SF

1.32

0.62

1.94

58 Ditto 2”

SF

1.66

0.73

2.39

59 Reinforced concrete 3000 psi 20 mm aggregate in foundations 60 Ditto in ground beams

M3

82.50

59.47

141.97

M3

82.23

66.04

148.27

61 Ditto in isolated foundations

M3

82.23

64.85

147.09

62 Ditto in slab on grade 150 mm thick excludes excavation and stone sub base 63 Ditto in elevated slab 150 mm thick

M3

79.11

58.34

137.46

M3

84.91

70.08

154.98

64 Ditto in walls n/e 250 mm thick

M3

85.29

71.36

156.66

65 Ditto in columns aver 300 x 300 mm

M3

91.24

75.57

166.81

66 Ditto in staircases

M3

95.88

94.94

190.82

67 Formwork to foundations n/e 1.5 M high (based on 5 uses) 68 Formwork to soffits / u/s of elevated slabs n/e 5 M high above FFL (based on 5 uses) 69 Formwork to walls, beams & columns (based on 5 uses) 70 Fabric / mesh reinforcement 3 kg / M2

M2

6.28

29.65

35.93

M2

7.48

31.70

39.18

M2

8.68

36.55

45.23

M2

1.91

1.68

3.60

T

631.18

502.68

1,133.86

T

614.26

360.60

974.85

71 Fabricate & install 10 mm dia steel rebar 72 Fabricate & install 25 mm dia steel rebar

M3

73 All-in rate for reinforced concrete including concrete, rebar and formwork minimum (excludes excavation) 74 Ditto maximum

265.00 M3

11

895.00

#

Unit

Material

Labor

Total

1

(4) CSI DIVISION 3, 4 & 5 STRUCTURAL ELEMENTS / WALLS / FLOORS STRUCTURAL STEEL FRAMING (100 – 1,000 TON) Offices 1 – 3 floors

Description

Ton

2,166.28

459.51

2,625.79

2

Factory / Manufacturing Facility

Ton

2,166.28

459.51

2,625.79

3

Hi-Rise Building 5 – 10 floors

Ton

2,166.28

574.39

2,740.67

4

3” metal decking ribbed 20 g

SF

7.15

1.28

8.43

5

Ditto 18 g

SF

8.35

1.37

9.72

6

Ditto 16 g

SF

9.47

1.50

10.97

7

10” L B wall

SF

5.54

6.03

11.58

8

Ditto 12”

SF

6.06

6.67

12.73

9

Ditto 14”

SF

7.51

8.43

15.94

10 Flat 4” thick (PCCWS)

SF

5.90

4.85

10.75

11 Ditto 6” (PCCWS)

SF

7.51

5.17

12.68

12 Ditto 8” (PCCWS)

SF

13.23

6.26

19.49

13 Exposed aggregate face 4” thick (PCCWS)

SF

7.74

4.82

12.55

14 Ditto 6” (PCCWS)

SF

9.12

5.17

14.29

15 Ditto 8” (PCCWS)

SF

12.20

6.26

18.46

16 Ribbed finish 4” thick (PCCWS)

SF

13.86

5.28

19.15

17 Ditto 6” (PCCWS)

SF

15.94

5.51

21.46

18 Ditto 8” (PCCWS)

SF

20.57

6.83

27.40

19 Concrete reinforced (Tilt up wall panels) 4” thick 20 Ditto 6” thick

SF

3.30

5.35

8.64

SF

4.33

6.15

10.47

21 Ribbed Concrete block wall in 1-3 Cement mortar 8” wide 22 Ditto 10” wide

SF

7.22

8.25

15.47

SF

8.03

9.83

17.86

23 6’ thick

SF

13.77

14.36

28.13

24 8” thick

SF

14.90

15.85

30.75

25 Concrete Column, cast in place, round, 12” diameter

LF

25.62

26.61

52.23

26 Concrete Column, cast in place, round, 14” diameter

LF

30.83

27.80

58.62

27 Concrete Column, cast in place, round, 18” diameter

LF

40.57

37.54

78.11

28 Concrete Column, cast in place, square, 10”X10”

LF

15.46

102.17

117.63

29 Concrete Column, cast in place, square, 12”X12”

LF

19.93

115.43

135.36

30 Column, Pre cast concrete, 12”X12”

LF

60.22

10.76

70.98

31 Column, Pre cast concrete, 14”X14”

LF

84.54

14.14

98.69

32 Column, Pre cast concrete, 16”X16”

LF

99.52

17.46

116.98

33 Steel column, wide flange, W6x20#

LF

20.75

9.12

29.87

12

34 Steel column, wide flange, W8x24#

LF

23.34

10.46

33.80

35 Steel column, wide flange, W10x45#

LF

37.33

14.88

52.21

36 Steel column, wide flange, W12x72#

LF

65.45

22.27

87.71

37 Steel column, pipe, 3” diameter

LF

16.12

7.73

23.85

38 Steel column, pipe 4” diameter

LF

19.75

9.19

28.94

39 Steel column, pipe, concrete filled, 3” diameter 40 Steel column, pipe, concrete filled, 4” diameter

LF LF

16.73 20.18

8.14 10.09

24.88 30.26

41 Steel column, square tube, 6”

LF

28.15

9.52

37.67

42 Steel column, square tube, concrete filled, 6” 43 Wood column, 4”x4” post

LF LF

29.05 2.63

10.15 6.13

39.20 8.76

44 Wood column, 6”x6” post

LF

5.34

13.44

18.77

45 Wood column, 8”x8” post

LF

10.50

16.27

26.77

46 Wood column, 12”x12” post

LF

21.66

36.20

57.87

47 Concrete beams & girders, cast in place, 12”x24”

LF

36.51

133.22

169.74

48 Concrete beams & girders, cast in place, 18”x24”

LF

52.42

186.05

238.46

49 Concrete beams & girders, pre cast, rectangular, 12”x24”

LF

44.64

7.10

51.74

50 Concrete beams & girders, pre cast, rectangular, 18”x24”

LF

68.09

11.53

79.62

51 Concrete beams & girders, pre cast, inverted tee, 12”x24”

LF

51.93

8.57

60.50

52 Steel beams & girders, wide flange, W6x20#

LF

17.06

7.86

24.92

53 Steel beams & girders, wide flange, W10x45#

LF

27.96

13.62

41.58

54 Steel beams & girders, wide flange, W12x72#

LF

44.76

21.81

66.57

55 Wood beams & girder, 4”x4”

LF

2.51

5.61

8.11

56 Wood beams & girder, 4”x4”

LF

5.01

9.56

14.57

57 Wood beams & girder, 4”x4”

LF

8.92

15.93

24.86

58 Wood beams & girder, 4”x4”

LF

20.21

36.07

56.27

59 Floor, cast in place, slab, one way beams, with topping, 6” thick

SF

5.26

7.92

13.19

60 Floor, cast in place, slab, one way beams, with topping, 8” thick

SF

7.24

10.76

18.00

61 Floor, cast in place, slab, two way beams, with topping, 6” thick

SF

6.53

9.74

16.28

62 Floor, cast in place, slab, two way beams, with topping, 10” thick

SF

10.72

15.77

26.49

63 Floor, cast in place, slab, on metal form, topping, 6” thick

SF

4.88

7.28

12.16

64 Floor, cast in place, slab, on metal form, topping, 8” thick

SF

6.38

9.55

15.92

65 Floor, cast in place, waffle slab, 20” square pan, 4-1/2” thick, 6”x12” joist

SF

7.90

11.55

19.46

66 Floor, pre cast concrete, single tees, with topping

SF

9.06

4.36

13.42

13

67 Floor, pre cast concrete, plank, with topping, 6” solid

SF

5.03

2.44

7.48

68 Floor, pre cast concrete, hollow plank, with topping, 6” thick

SF

4.93

2.24

7.17

69 Floor, pre cast concrete, hollow plank, with topping, 10” thick

SF

5.64

2.83

8.47

70 Floor, concrete on metal deck, open web steel joists, 40 PSF load

SF

5.41

3.19

8.60

71 Floor, concrete on metal deck, open web steel joists, 125 PSF load

SF

7.22

3.99

11.21

72 Floor, concrete slab, steel beam and deck, 125 PSF load

SF

11.34

5.63

16.96

73 Floor, wood, plywood, 2”x6” joists 16” OC

SF

2.09

2.09

4.18

74 Floor, wood, plywood, 2”x12” joists 16” OC

SF

3.15

3.10

6.25

75 Roof, metal deck, open web steel joists, 20’ span

SF

2.74

1.11

3.85

76 Roof, metal deck, open web steel joists, 40’ span

SF

4.45

1.59

6.04

77 Roof, plywood, 2”x6” wood rafters 24” OC flat 78 Roof, plywood, 2”x6” wood rafters 24” OC sloping

SF SF

1.57 1.72

4.21 4.48

5.78 6.20

79 Elastomeric membrane on insulation (excludes insulation) 80 Corrugated galvanized metal 20 g

SF

1.33

1.42

2.76

SF

1.90

2.01

3.91

81 3 layer built up roof on insulated sloping roof

SF

1.70

1.79

3.48

82 3 layer built up roof on lightweight concrete sloping roof 83 Monolithic topping, 1/4”

SF

1.79

1.92

3.71

SF

0.12

1.37

1.50

84 Monolithic topping, 1/2”

SF

0.47

1.32

1.79

85 Hardener, chemical

SF

0.25

0.07

0.32

86 Hardener, iron floor base

SF

0.30

0.47

0.77

87 Fireproofing, columns, sprayed fiber, 1-1/4”, no finish

SYCA

10.10

20.54

30.64

88 Fireproof, metal deck, sprayed fiber, ¼”, no finish

SYCA

7.22

13.25

20.47

89 Fireproof, columns, 1 hour, furring, lath & plaster, painted

LF

24.38

57.02

81.40

90 Fireproof, columns, 2 hour, furring, lath & plaster, painted

LF

26.99

66.40

93.39

91 Color additives to concrete slabs

SF SF SF CF

0.06

0.58

0.64

0.04

0.24

0.28

0.16

0.45

0.60

5.06

21.31

26.37

95 Concrete Wall, cast in place, cut & patch, 8’ high, 6” thick

SF

5.79

13.72

19.51

96 Concrete Wall, cast in place, cut & patch, 8’ high, 10” thick

SF

8.16

15.81

23.97

97 Concrete Wall, cast in place, cut & patch, 12’ high, 6” thick

SF

6.93

14.38

21.31

92 Epoxy Hardener / Urethane 93 Acid wash and paint floor 94 Non shrink grout

14

98 Concrete Wall, cast in place, cut & patch, 12’ high, 12” thick

SF

10.71

16.23

26.95

99 Finish Add, one side, concrete wall, cast in place, sandblast, light

SF

0.19

1.01

1.20

100 Finish Add, one side, concrete wall, cast in place, sandblast, heavy

SF

0.50

1.63

2.13

101 Finish Add, one side, concrete wall, cast in place, bush hammer, heavy

SF

1.99

3.46

5.45

102 Tilt-up, concrete wall, with pilasters, 6” thick

SF

4.28

7.07

11.36

103 Pre cast concrete panel, single form

SF

15.98

8.58

24.56

104 Concrete Block, 8”x16”, reinforced, 4” thick

SF

4.70

5.19

9.89

105 Concrete block, 8”x 16”, reinforced, 8” thick

SF

5.74

5.89

11.63

106 Concrete block, 8”x 16”, reinforced, 12” thick

SF

8.91

6.58

15.50

107 Concrete Block, 8”x16”, reinforced, filled 4” thick

SF

4.99

5.61

10.60

108 Concrete Block, 8”x16”, reinforced, filled, 8” thick

SF

6.79

6.17

12.96

109 Concrete block, split face, reinforced, filled, 8”x4”x16”

SF

12.15

8.57

20.72

110 Concrete block, Glazed one side, reinforced, filled 4”x4”x16”

SF

13.64

9.10

22.74

111 Brick veneer, 4” standard, 4”x8”x16” block back-up

SF

9.39

10.72

20.11

112 Brick veneer, 4” modular, 4”x8”x16” block backup

SF

10.89

13.53

24.42

113 Brick veneer, 4”x4”12” Jumbo, 8”x8”x16” block back-up

SF

9.89

11.77

21.66

114 Brick veneer, 8”x4”x12” Jumbo, 8”x8”x16” block back-up

SF

13.52

13.15

26.67

115 Brick wall, cavity, 10” thick

SF

11.59

15.40

26.99

116 Brick wall, reinforced, 16” thick

SF

19.47

19.12

38.58

117 Stone veneer, Granite, 4”x8”x16” block back-up

SF

28.60

28.17

56.77

118 Brick veneer, 4” standard, sheathing, building paper, insulation, 2”x4” wood stud 16” OC

SF

8.12

9.65

17.77

119 Brick veneer, 4” modular, sheathing, building paper insulation, 2”x4” wood stud 16” OC

SF

8.49

12.18

20.66

120 Siding, Redwood Beveled, paint, sheathing, building paper, insulation, 2”x4” wood stud 16” OC

SF

5.95

7.19

13.14

121 Siding, hardboard, paint, sheathing, building paper, insulation, 2”x6” wood stud 16” OC

SF

4.17

7.72

11.89

122 Siding, Glass weld, finish two sides, sheathing, building paper, insulation, 2”x4” wood stud 16” OC

SF

4.23

7.74

11.97

15

123 Stone veneer, Granite, sheathing, building paper, insulation, 2”x4” wood stud 16” OC

SF

26.19

26.78

52.97

124 Stone veneer, Lava stone, sheathing, building paper, insulation, 2”x4” wood stud 16” OC

SF

8.43

17.10

25.53

125 Stucco, paint, sheathing, building paper, insulation, 2”x4” wood stud 16” OC

SF

3.43

6.64

10.07

126 Stucco, paint, sheathing, building paper, insulation, 16 ga 3-5/8 metal stud 16” OC

SF

5.74

9.08

14.82

127 Metal Siding, corrugated aluminum, .1/4” thick

SF

3.23

2.77

6.00

128 Metal Siding, corrugated galvanized iron, 26 ga

SF

2.30

3.03

5.32

129 Curtain Wall, frame, anodized aluminum, bronze

SF

25.01

1.27

26.28

130 Curtain Wall, glazing, plate, 1/4” thick clear

SF

4.39

0.63

5.02

131 Curtain Wall, glazing, double glazed, 5/8” thick clear

SF

10.15

2.13

12.28

132 Curtain Wall, glazing, double glazed, tempered, 5/8” thick clear

SF

15.05

1.37

16.42

133 Curtain Wall, glazing, double glazed, tempered, 1” solar cool, reflective

SF

9.87

1.38

11.25

134 Exterior coating, concrete surface, paint, prime

SF

0.07

0.27

0.34

135 Exterior coating, concrete surface, paint, prime + 2 finish

SF

0.22

0.78

1.00

136 Exterior coating, masonry surface, paint, prime + 1 finish

SF

0.17

0.60

0.77

137 Exterior coating, silicone seal, spray 1 coat

SF

0.24

0.25

0.49

137 Exterior coating, sheet metal, paint, prime + 2 A finish

SF

0.20

1.16

1.36

138 Finish interior wall, gypsum board, on stud, painted, rubber base

SF

0.62

1.19

1.81

139 Wall painting, concrete, prime

SF

0.07

0.26

0.33

140 Concrete block painting, prime, brush

SF

0.07

0.30

0.37

141 Concrete block painting, prime + 2 finish, roll

SF

0.22

0.51

0.73

142 Window, steel frame, fixed, 1/4” glass, clear

SF

18.36

10.51

28.87

143 Window, steel frame, fixed, 1/4” glass spandrel

SF

27.68

10.65

38.33

144 Window, aluminum frame, fixed, 1/4” glass, tempered

SF

23.16

7.80

30.96

145 Window, metal, sliding, one vent, with screen, 2’0”x3’0”

EACH

69.76

28.37

98.13

146 Window, metal, sliding, two vent with screen, 8’0”x4’0”

EACH

166.16

59.28

225.44

16

147 Window, metal, casement, two vent, with screen, 10’0”x4’0”

EACH

282.31

65.60

347.91

148 Door, pre hung, solid core, 3’X7’X 1 3/8”

EACH

172.08

67.96

240.04

149 Door, metal, panic hardware, single, 3’x7’

EACH

1,277.31

252.01

1,529.32

150 Door, metal, panic hardware, double, 6’x 7’

EACH

2,329.58

463.82

2,793.40

151 Door, metal and glass, panic hardware, double, 6’ x 7’

EACH

2,763.24

603.67

3,366.91

152 Roll-up doors, chain operated, galvanized steel 24 GA, 10’x10’

EACH

931.07

1,611.83

2,542.90

153 Roll-up doors, chain operated, galvanized steel 24 GA, 10’x10’ with electric motor

EACH

1,369.85

2,026.41

3,396.26

154 Roll-up doors, chain operated, galvanized steel 24 GA, 12’x12’

EACH

1,274.41

1,686.22

2,960.63

155 Roll-up doors, chain operated, galvanized steel 24 GA, 14’x14’

EACH

1,592.95

1,686.22

3,279.17

156 Overhead doors, sectional, steel, 8’x8’

EACH

508.10

342.23

850.34

157 Sliding door with track steel, 12’x14’

EACH

967.17

265.54

1,232.71

158 Sliding door with track steel, 16’x20’

EACH

1,580.09

369.24

1,949.33

159 Sliding door with track steel, 16’x20’ electrically operated

EACH

2,022.29

504.20

2,526.49

160 Glass sliding door, 6’x8’

EACH

1,803.16

173.12

1,976.28

161 Glass sliding door, 8’x8’

EACH

2,225.96

197.84

2,423.80

162 Erect fabricated grade 40 structural steel in columns 163 Ditto in beams

Kg

0.27

3.41

3.68

Kg

0.33

3.44

3.78

164 Pre-cast concrete in elevated floors 100 mm thick 165 Ditto 150 mm thick

M2

148.95

36.62

185.57

M2

160.93

40.01

200.94

M2

57.05

40.99

98.04

M2

97.06

44.27

141.34

M2

66.18

49.30

115.47

M2

78.27

88.65

166.92

M2

27.92

17.49

45.42

M2

31.55

26.23

57.78

M2

28.91

24.53

53.45

M2

34.18

36.62

70.80

M2

111.03

80.34

191.37

166 Common brick in ext walls (½ brick wide) $325 /M 167 Ditto (1 brick wide) ditto 168 Facing brick in ext walls (½ brick wide) $425 / M 169 Ditto (1 brick wide) ditto 170 Lightweight concrete block in walls (ext/ internal) 100 mm wide 171 Ditto 150 mm wide 172 Solid concrete block in walls (ext/ internal) 100 mm wide 173 Ditto 150 mm wide 174 Concrete 300 psi in ext / internal walls 100 mm wide with fair faced finish incl rebar and formwork 175 Ditto 150 mm wide ditto

M2

130.16

82.52

212.68

176 Ditto 200 mm wide ditto

M2

142.57

100.45

243.03

177 External Pre-Cast wall panel 100 mm thick

M2

249.76

83.40

333.15

178 Ditto with exposed aggregate finish

M2

316.60

103.84

420.44

179 Metal insulated wall cladding 75 mm wide

M2

79.14

22.41

101.56

17

180 Plasterboard / gyprock 2 faced wall with metal studding at 400 centers inc top and bottom rail (1 hour fire rating 181 Cement & sand screed (1:3) to block work or brick 10 mm thick 182 Paint 1 u/c and 2 top coats emulsion based to walls (rolled and sprayed) 183 Install glazed ceramic tiles 300 x 300 x 7 mm thick wall tiles 184 Maple flooring 15 mm thick including polyurethane finish 185 Quarry floor tiles 150 x 150 x 20 mm thick on 50 mm cement – sand screed (1:3) 186 Linoleum floor 2.5 mm thick

M2

57.16

48.53

105.68

M2

13.85

7.49

21.34

M2

12.15

18.09

30.23

M2

27.15

29.30

56.45

M2

92.12

28.42

120.55

M2

51.89

39.79

91.68

M2

36.83

14.98

51.80

187 Suspended plasterboard / gyprock ceiling 10 mm thick 188 Acoustical suspended ceiling including grid 300 x 300 x 7 mm 189 Curtain wall 65% glass 35 % solid galv steel with tinted double glazing 190 Curtain wall 65% glass 35 % solid galv steel with tinted double glazing Class A 191 Ditto with anodized aluminum

M2

34.40

21.91

56.32

M2

20.66

15.90

36.57

M2

835.45

125.70

961.16

M2

1,214.71

177.07

1,391.78

M2

953.08

130.07

1,083.15

192 Ditto with anodized aluminum Class A

M2

1,346.62

188.00

1,534.62

193 Regular CMU 8 x 8 x 16

SF

4.16

4.11

8.27

194 ditto with insulation

SF

4.42

4.21

8.63

195 Split face CMU 8 x 8 x16

SF

5.46

4.37

9.83

196 Ditto with insulation

SF

6.45

6.08

12.53

197 Regular CMU 12 x 8 x 16

SF

4.37

4.21

8.58

198 ditto with insulation

SF

5.10

4.94

10.04

199 Split face CMU 12 x 8 x 16

SF

6.76

5.82

12.58

200 Ditto with insulation

SF

7.38

6.40

13.78

201 Cast stone sills

LF

32.55

6.60

39.16

202 Grout

CY

212.90

78.00

290.90

18

#

Description

Unit

Material

Labor

Total

7.74

13.39

(5) CSI DIVISION 7, 8 & 9 ROOFING & MISCLANEOUS ITEMS GENERAL ROOFING ITEMS 1

SF

5.65

2

Copper 3/16” thick flat seam (includes insulation & ½” plywood) Poured gypsum 11/2” thick

SF

3.09

3.95

7.04

3

P.C. Tee 6’ x 18” wide

SF

5.25

10.48

15.74

4

Ditto 6” x 24”

SF

5.48

11.68

17.16

5

Composition roofing system

SF

1.42

1.86

3.29

6

3/16” thick slate

SF

3.30

1.41

4.71

7

Roof cover, built-up, low rise, 3 ply

SQ

95.78

71.52

167.30

8

Roof cover, built-up, low rise, 4 ply

SQ

111.17

77.85

189.02

9

Roof cover, plastic, membrane, 1/6”

SQ

148.69

229.23

377.92

10 Roof cover, plastic, membrane, 1/32”

SF

132.16

229.22

361.38

11 Roof cover, EPDM, 1/16”, self seal

SQ

138.77

229.35

368.12

12 Roof cover, urethane foam, silicone cover, 1” thick

SQ

355.94

119.52

475.46

13 Roof cover, shingles, composition asphalt, 240 #

SQ

46.97

70.65

117.61

14 Roof cover, shingles, composition asphalt, 300 #

SQ

66.75

73.82

140.57

15 Roof cover, tile, concrete, premium

SQ

135.44

222.66

358.10

16 Roof cover, corrugated aluminum, 020”

SF

1.38

1.75

3.13

17 Roof cover, corrugated galvanized iron, 26 Gauge

SF

2.20

2.60

4.80

18 Rigid, insulation board, deck, mineral fiber, 1”

SF

0.55

0.60

1.15

19 Rigid, insulation board, deck mineral fiber, 2”

SF

1.12

1.10

2.23

20 Insulation board, deck, fiberglass, 2”

SF

1.83

1.83

3.66

21 Rigid, insulation board, deck, urethane, paint, 1-1/2” non-rated R11

SF

1.55

1.56

3.11

22 Rigid, insulation board, deck, urethane, paint, 3” non-rated R25

SF

2.97

2.98

5.96

23 Rigid, insulation board, deck, batt foam, 2” thick

SF

1.82

1.82

3.64

24 Roof hatch, aluminum, 30”x48”, with curb

EACH

608.57

103.51

712.08

25 Roof hatch, aluminum, 30”x72”, with curb

EACH

958.96

157.75

1,116.71

26 Metal flashing 25 G / Galvanized steel 10”

LF

2.01

0.25

2.26

27 Metal flashing Aluminum 10”

LF

2.11

0.36

2.48

28 Galvanized steel downspout 28g 4” dia

LF

1.13

2.82

3.95

29 Ditto 6”

LF

1.31

2.69

4.00

30 Ditto rectangular 3” x 3”

LF

1.42

2.59

4.01

31 Ditto 4” x 4”

LF

1.70

2.77

4.46

19

32 Floor drain 4’ CI with trap

EACH

99.91

102.90

202.81

33 Ditto 6”

EACH

204.11

117.85

321.96

34 Roof drain 4” CI with aluminum dome

EACH

111.49

102.90

214.39

35 Ditto 6”

EACH

168.30

126.83

295.13

36 Stairs, steel, concrete tread, 12 risers

FLT

1,241.47

515.38

1,756.85

37 Ladders, galvanized steel, 2-1/2”x3-3/8” bar, 3/4” rung

RISER

90.53

54.95

145.49

38 Railing, pipe 3 high, welded, with kick plate 11/2”

LF

41.09

12.83

53.92

39 Railing, welded, flat bar and angle

LF

18.34

11.60

29.93

40 Fire escape, ladder and balcony

EACH

1,692.93

527.96

2,220.89

41 Gutter, galvanized iron, facia, 5”

LF

1.60

4.19

5.79

42 Downspout, galvanized iron, fabricated, 3”x4”

LF

2.24

3.62

5.86

43 Gravel stop, aluminum, facia 10”

LF

2.61

3.62

6.23

44 Louvers, manual, galvanized

SF

8.99

18.38

27.36

45 Screens, cooling tower, galvanized

SF

7.14

18.38

25.52

46 Screens, bird

SF

1.51

2.25

3.75

47 Smoke vent, automatic 180 degree, galvanized

EACH

1,740.00

582.23

2,322.24

48 Skylights, aluminum frame, plastic dome, 2’x2’

EACH

119.22

92.02

211.23

49 Skylights, aluminum frame, plastic dome, 3’x6’

EACH

304.01

92.02

396.03

50 Skylights, aluminum frame, plastic dome, 8’x10’

EACH

2,145.29

124.18

2,269.47

51 Skylights, double glazed, aluminum frame 2’x2’

EACH

209.09

104.60

313.70

52 Acoustic insulation, sound board vertical, 1/2”

SF

0.20

0.54

0.74

53 Insulation, batt, wall and ceiling, mineral fiber, 2-1/2” R7

SF

0.19

0.29

0.48

54 Insulation, batt, wall and ceiling, mineral fiber, 6” R19

SF

0.45

0.35

0.80

55 Caulk, butyl base, 1/8”x 1/8”

LF

0.04

0.81

0.85

56 Caulk, acrylic, 1/8” x 1/8”

LF

0.06

0.81

0.87

57 Caulk, polysulfide, 1/8”x1/8”

LF

0.29

0.83

1.12

58 Caulk, silicone, 1/8”x1/8”

LF

0.07

0.89

0.97

59 Caulk, electrometric, for concrete

LF

1.98

1.80

3.78

60 Latex/acrylic, ¼”x¼”

LF

0.11

1.11

1.23

61 Latex/acrylic, ¼”x½ ”

LF

0.25

1.35

1.60

62 Latex/acrylic, ½”x3/4”

LF

0.34

1.50

1.84

63 Joint filler ½”

LF

0.21

0.18

0.38

64 Joint filler 1”

LF

0.27

0.23

0.50

20

#

Description

Unit

Material

Labor

Total

SF

3.45

3.62

7.07

2

(6) CSI DIVISION 4, 8, 9 & 10 INTERNALS WALLS / DOORS / CEILINGS / FLOORS / INTERIORS / GLASS Interior gypsum board (both sides painted) on metal studding 16” O.C. with 3” thick sound insulation with rubber skirting board (NR) Ditto 1 hour rated

SF

3.96

4.43

8.39

3

Ditto 2 hour rated

SF

4.83

5.00

9.83

4

Interior partitions, non-rated drywall metal studs 3 5/8”, insulation, lath & plaster, both sides, painted, rubber base

SF

4.74

10.24

14.99

5

Interior partitions, non-rated, drywall metal studs 3 5/8”, insulation, lath & plaster, both sides, painted, rubber base.

SF

6.26

10.80

17.06

6

Interior shaft wall, 1 hour rated, metal studs, insulation, lath & plaster, one side, 1/2” asphalt core sheathing, one side, paint one side, rubber base

SF

4.39

8.43

12.82

7

Concrete masonry unit, 4”x 8”x 16”, #4 bar, 30” on center, both ways, unfilled

SF

4.66

5.26

9.92

8

Concrete masonry unit, 12”x 8”x 16”, #4 bar, 30” on center, both ways, unfilled

SF

8.76

6.59

15.35

9

Concrete masonry unit, 8”x4”16”, #4 bar, 30” on center, both ways, filled

SF

9.50

7.96

17.45

10 Concrete masonry unit, grout lock, 8”x8”16”, #4 bar, 30” on center, filled

SF

6.98

4.71

11.69

11 Concrete masonry unit, slump stone, 8”x 8”x16”, #4 bar, 30” on center, filled

SF

8.92

7.21

16.13

12 Concrete block painting, prime, brush

SF

0.07

0.32

0.39

13 Concrete block painting, prime + finished, brush

SF

0.16

0.58

0.74

14 Door, hollow metal, stock, including hardware / hinges, stained / painted, door 20 GA, frame 18 GA, 3’ x 7’0”, non-rated

EACH

675.36

308.98

984.34

15 Door, hollow metal, stock, hardware / hinges, stained / painted, door 20 GA, frame 18 GA, 3”6 x 8’0” 1 hour rated

EACH

789.53

321.96

1,111.49

16 Door, hollow metal, including hardware / hinges, stained / painted, door 20 GA, frame 18 GA, 3’0”x 7’0”, non-rated

EACH

820.88

270.69

1,091.57

17 Door, hollow metal, including hardware / hinges, stained / painted, door 20 GA, frame 18 GA, 3’0”x 7’0”, 3 hour rated

EACH

981.47

270.69

1,252.16

1

21

18 Door, hollow metal, including hardware / hinges, stained / painted, door 18 GA, frame 16 GA, 4’0”x 7’0”, 1 hour rated

EACH

1,095.98

320.77

1,416.76

19 Door, hollow metal, including hardware / hinges, stained / painted, door 18 GA, frame 16 GA, 4’0”x 7’0”, 3 hour rated

EACH

1,208.40

320.75

1,529.15

20 Glazing, interior, clear, fixed, commercial, glass 1/4”, steel frame, painted

SF

14.78

8.92

23.70

21 Glazing, interior, security, fixed, commercial, glass wire 1/4”, steel frame, painted

SF

28.64

8.92

37.56

22 Glazing, interior, clear, fixed, commercial, glass 1/4”, aluminum frame

SF

14.60

6.59

21.20

23 Sidelight, 3’x 7’, commercial, tempered glass 1/4”, aluminum frame

EACH

477.50

164.20

641.69

24 Roof window with insulated glass 24” x 48”

EACH

444.49

151.49

595.97

25 Roof window with insulated glass 30” x 60”

EACH

554.69

201.97

756.66

26 5/8” gypsum on metal furring

SF

1.47

1.21

2.67

27 5/8” plaster on metal furring

SF

2.74

1.28

4.01

28 Keens plaster ¼”thick on expanded metal lathing 29 5/8 Fiberglass lay-in ceiling on grid (24” x 48”)

SF

3.23

1.93

5.17

SF

1.26

1.47

2.73

30 20 g metal lay-in ceiling including grid (prepainted enamel) 31 Acoustical ceiling, suspended, 2’x 2’

SF

2.53

2.68

5.21

SF

1.36

1.28

2.64

32 Acoustical ceiling, suspended, 2’x 4’

SF

1.34

1.11

2.45

33 Acoustical ceiling, glue on, metal studs, 5/8” gypsum board, vinyl tile 1’x 1’, painted

SF

2.35

3.80

6.15

34 Acoustical ceiling, suspended, 2’x 2’, insulated

SF

1.59

1.53

3.12

35 Acoustical ceiling, suspended, 2’x 4’, insulated

SF

1.59

1.25

2.84

36 Resilient floor, tile, asphalt, 1/8”,

SF

0.44

1.23

1.67

37 Resilient floor, tile, asphalt, 1/4”,

SF

0.48

1.23

1.71

38 Resilient floor, tile, cork, 5/16”

SF

2.68

1.23

3.91

39 Resilient floor, vinyl, ¼”, w/cove

SY

15.86

10.74

26.60

40 Wood Parquet, 5/16”, oak

SF

5.50

4.02

9.53

41 Wood block industrial floor, 1”

SF

3.78

1.11

4.89

42 Oak ¼” thick pre-finished

SF

1.96

2.23

4.18

43 Rubber tile, 12”x12”x1/4”

SF

2.75

2.10

4.85

44 VCT, 12”x12”x1/4”

SF

1.10

0.44

1.54

45 Vinyl sheet, 12”x12”x1/8”

SF

1.59

1.18

2.77

46 Brick paving, 3” thick

SF

5.04

5.60

10.64

47 Slate 3’ x 3” ½ ” thick on 11/2” mud set base

SF

8.65

6.33

14.98

22

48 PVC sheet floor ¼” thick, glued to concrete floor

SF

4.13

4.51

8.64

49 Quarry tile 4” x 4” x 3/8” thick on 1” mud set base, acetone base (food grade)

SF

4.60

4.91

9.51

50 Ditto 6” x 6” ditto on 11/2” mud base

SF

4.71

5.06

9.78

51 Poly carbonate, sheet glass 1/8” thick

SF

4.14

1.44

5.57

52 Ditto ¼”

SF

4.60

1.44

6.03

53 Ditto ½”

SF

5.16

1.66

6.82

54 Addition for tint Minimum

SF

2.38

-

2.38

55 Ditto Maximum

SF

6.01

-

6.01

56 Tile, ceramic, floor, 1”x 1”, mortar mud set

SF

4.27

6.03

10.31

57 Tile, ceramic, floor, 4”x 4”, mortar mud set

SF

4.14

5.45

9.59

58 Terrazzo, floor, mud bonded, 2”, non-slip abrasive

SF

5.25

1.82

7.07

59 Terrazzo, floor, thin set, polyester, 3/8”, polished

SF

4.99

10.67

15.66

60 Hardwood floor, oak, common, finished

SF

6.06

3.30

9.36

61 Hardwood floor, oak, select, finished

SF

6.18

3.46

9.64

62 Hardwood floor, teak parquet 5/16”, prefinished

SF

10.71

4.58

15.29

63 Vinyl wall covering. light, 6 ounces

SF

1.54

0.50

2.04

64 Paneling, birch or ash, select

SF

1.63

3.97

5.61

65 Paneling, walnut, select

SF

3.34

4.01

7.35

66 Sanding existing wooden floor

SF

0.22

0.64

0.86

67 Polyurethane finish 1 coat

SF

0.30

0.27

0.57

68 Paint concrete floor 2 coats

SF

0.21

0.28

0.49

69 Cabinets and laminated plastic tops, multi-unit, hardwood, economy, base

LF

41.36

15.71

57.08

70 Cabinets and laminated plastic tops, multi-unit, hardwood, economy, wall

LF

26.55

27.30

53.85

71 Cabinets and laminated plastic tops, multi-unit, hardwood, economy, wall

LF

102.50

35.10

137.60

72 Carpet, 30 oz polyester, with 24 oz pad

SY

20.05

7.83

27.88

73 Carpet, 30 oz polyester, with 24 oz pad

SY

11.63

7.83

19.46

74 Carpet, 20 oz nylon level loop, with rubber back

SY

12.92

6.59

19.51

75 Carpet, wool commercial, with 24 oz pad

SY

45.73

7.70

53.42

76 Carpet, exterior, premium, without pad

SY

21.10

8.80

29.90

77 Floor mat, rubber, 1/4” recessed

SF

5.70

2.43

8.13

78 Floor mat, rubber, 1/2” recessed

SF

8.93

30.84

39.77

79 Olefine, 24” oz.

SF

2.27

1.11

3.38

80 Indoor - outdoor

SF

1.71

0.99

2.69

81 Felt padding

SF

0.45

0.21

0.66

82 Rubber based / sponge type padding

SF

0.60

0.21

0.81

23

#

Description

Unit

Material

Labor

Total

(7) CSI DIVISION 11, 13 & 14 MATERIAL HANDLING EQUIPMENT SPECIALIZED EQUIPMENT 1

Dock bumper, 10”x4 1/2” x 24”

EA

74.78

42.65

117.43

2

Scissors lift, 60”, 2000#, 4’x 4’ deck

EA

7,093.28

175.65

7,268.92

3

Dock leveler, heavy duty, hydraulic

EA

6,154.96

554.32

6,709.28

4

Dock leveler, sliding door, 7’6”x 8’

EA

959.87

573.09

1,532.96

5

Laboratory equipment, instructor’s table, includes sinks, fixtures and acid resistant tops, 12’x 36”x 36”

EACH

2,450.59

209.07

2,659.66

6

Laboratory equipment, student table for 6 students, 12’x 6’x 4’

EACH

5,418.51

202.80

5,621.31

7

Laboratory equipment, steel cabinet, base

LF

224.02

117.03

341.05

8

Laboratory equipment, wood cabinet, base

LF

186.92

117.03

303.95

9

Laboratory equipment, plastic laminated cabinet, base

LF

170.73

117.03

287.76

10 Laboratory equipment, steel cabinet, knee space, drawer unit

LF

147.94

74.36

222.30

11 Laboratory equipment, stainless steel cabinet top

LF

195.19

-

195.19

EACH

77.42

33.65

111.07

LF

491.70

-

491.70

14 Laboratory equipment miscellaneous, water tank, stainless steel, 50 GAL

EACH

6,792.86

348.09

7,140.95

15 Laboratory equipment miscellaneous, washer

EACH

666.31

670.79

1,337.10

16 Laboratory equipment miscellaneous, portable water distiller, 20 LPH

EACH

1,078.60

107.69

1,186.30

17 Steel stair, steel pan, concrete tread, wrought iron rail, 44” wide

RISER

336.47

112.90

449.37

18 Steel stair, steel pan, concrete tread, wrought iron rail, 48” wide

RISER

355.17

107.91

463.08

19 Elevator, hydraulic, 100’ min, 2000 lb, 5’x 6’ cab, auto exit, 2 stop

EACH

56,329.34

-

56,329.34

20 Elevator, hydraulic, 100’ min, 2500 lb, 5’x 7’ cab, auto exit, 2 stop

EACH

60,441.88

-

60,441.88

21 Elevator, hydraulic, 100’ min, 4000 lb, 6’x 8’ cab, auto exit, 3 stop

EACH

81,154.13

-

81,154.13

22 Elevator, electric gear, 200’ min, 3500 lb, 5’x 8’cab, auto exit, 7 stop

EACH

203,633.06

-

203,633.06

23 Elevator, electric gear, 200’ min, 4000 lb, 6’x 8’cab, auto exit, 4 stop

EACH

250,740.35

-

250,740.35

24 Elevator, electric gear less, 400’ min, 3500 lb, 6’x 9’ cab, auto exit, 10 stop

EACH

288,251.70

-

288,251.70

12 Reagent rack, metal upright, wall, 1 tier 13 Laboratory equipment miscellaneous, add for stainless steel

24

25 Elevator, electric gear less, 500’ min, 4500 lb, 6’x 9’ cab, auto exit, 15 stop

EACH

348,568.97

-

348,568.97

26 Air hoist, 25’lift, rail, 2000 lb

EACH

8,141.58

69.00

8,210.58

27 Air hoist, 30’lift, rail 500 lb

EACH

8,962.86

69.00

9,031.86

28 Electric hoist, 30’lift, rail, 1000 lb

EACH

5,282.74

69.00

5,351.75

29 Electric hoist, 30’lift, rail, 500 lb

EACH

4,710.73

69.00

4,779.74

30 Crane, hydraulic, portable, 2000 lb

EACH

2,871.20

-

2,871.20

31 Crane, hydraulic, gantry, 4000 lb

EACH

3,100.61

-

3,100.61

32 Crane, monorail, overhead, 200 # L/F, manual 33 Crane, monorail, overhead, 100 # L/F, manual 34 Bridge Crane, 1 ton

LF LF EACH

26.40 17.19 7,825.76

69.00 69.10 -

95.40 86.29 7,825.76

35 Bridge Crane, 2.5 ton

EACH

15,926.75

-

15,926.75

36 Bridge crane, 5 ton

EACH

24,662.78

-

24,662.78

37 Man lift, 2 stop

EACH

18,678.45

-

18,678.45

38 Man lift, 3 stop

EACH

21,477.42

-

21,477.42

39 Man lift, 4 stop

EACH

22,288.49

-

22,288.49

40 Escalator, 12’ floor to floor, 24” wide

Floor

132,598.27

-

132,598.27

41 Escalator, 12’ floor to floor, 32” wide

Floor

136,710.82

-

136,710.82

42 Escalator, 12’ floor to floor, 36” wide

Floor

145,569.00

-

145,569.00

43 3” round C.S. single tube

LF

22.62

12.29

34.91

44 4” round C.S. single tube

LF

25.05

14.77

39.82

45 6” round C.S. single tube

LF

42.01

16.57

58.57

SF

9.35

2.57

11.92

th

46 3/16 lead lining to walls

25

#

Description

Unit

Material

Labor

Total

1

LF

6.61

8.96

15.58

2

(8) CSI DIVISION 15 PLUMBING & FIRE PROTECTION CS A53 1” diameter schedule 40 including fittings / hangars and erection n/e 20’ from FFL (4 fitting per 100’ of pipe, valves not included) Ditto 2:

LF

9.58

14.10

23.68

3

Ditto 4”

LF

19.71

35.35

55.06

4

Ditto 6”

LF

37.82

73.79

111.61

5

Water heater, commercial, electric, 50 gallon, 100 GPH

EACH

2,433.62

532.97

2,966.59

6

Water heater, commercial, gas, 80 gallon, 100 GPH

EACH

3,988.26

576.87

4,565.13

7

Interceptor grease, cast iron, 50 gallons per minute

EACH

2,559.60

906.65

3,466.25

8

Pump, circulating, in line, flanged, iron body, 3/4” to 2”

EACH

492.91

158.02

650.93

9

Pumps circulating, in line flanged, iron body, 3/4” to 2”

EACH

1,560.02

215.69

1,775.71

10 Pumps sewage ejector, w/tank & fittings, single, 2 horsepower, 4”

EACH

8,374.36

1,236.48

9,610.84

11 Pump, sewage ejector, w/tank & fittings, duplex 5 H.P.

EACH

14,875.93

2,345.02

17,220.95

12 Pressure booster system, 2 pump, 100 GPM, 50 psi

EACH

15,540.22

2,345.02

17,885.24

13 Pressure booster system, 3 pump, 250 GPM, 100 psi

EACH

23,764.46

3,273.03

27,037.48

14 1” diameter sch 40 including fittings / hangars and erection n/e 20’ from FFL 15 Ditto 1.5”

LF

3.76

1.54

5.30

LF

3.93

1.83

5.76

16 Ditto 2”

LF

5.41

2.11

7.52

17 Ditto 4”

LF

14.35

2.96

17.32

18 Ditto 6”

LF

24.39

5.20

29.59

19 Copper “L” including fittings / hangars and erection n/e 20’ from FFL ½ dia 20 Ditto ¾”

LF

1.39

4.40

5.79

LF

2.23

4.40

6.62

21 Ditto 1’

LF

3.13

4.86

7.99

22 Ditto 2”

LF

8.89

7.71

16.60

23 Septic tank, steel 250 gallon, buried

EACH

349.03

260.83

609.87

24 Septic tank, steel 1000 gallon, buried

EACH

1,098.41

625.76

1,724.16

25 Compressor air, simplex, 5 H.P., reciprocating, tank mounted

EACH

5,730.95

1,606.40

7,337.36

26 Compressor air, simplex, 10 H.P., reciprocating, tank mounted

EACH

10,338.47

1,965.05

12,303.52

27 Tank, water, glass lined, 200 gallon, ASME

EACH

1,984.12

703.51

2,687.63

28 Water softeners, w/brine tank, 50 GPM

EACH

4,413.61

1,092.26

5,505.87

26

29 Fixture, economy grade, bath tub, steel, w/ shower

EACH

285.24

265.86

551.10

30 Fixture, economy grade, lavatory, steel, wall hung

EACH

158.18

150.90

309.09

31 Fixture, economy grade, shower & drain receptor, 24” square

EACH

224.08

225.92

450.00

32 Fixture, economy grade, shower cabinet, w/door, 24” square

EACH

485.30

338.88

824.18

33 Fixture, economy grade, water closet, floor, w/tank

EACH

208.52

150.63

359.15

34 Fixture, standard grade, shower and drain receptor, 24” square

EACH

721.10

556.96

1,278.07

35 Fixture, standard grade, urinal, wall mounted.

EACH

663.16

356.61

1,019.76

36 Rough-in for fixtures, piping and valves, fixture to 5’ beyond building perimeter, housing

EACH

205.16

119.76

324.92

37 Rough-in for fixtures, piping and valves, fixture to 5’ beyond building perimeter, office building

EACH

1,209.74

975.63

2,185.37

38 Rough-in at fixtures, lavatory, fittings and valves, fixture to waster line, vent riser and water runs

EACH

147.00

244.55

391.55

39 Rough-in at fixtures, urinal, fittings and valves, fixture to waste line, vent riser and water runs

EACH

118.85

250.82

369.67

40 Rough-in at fixtures, wash fountain, fittings and valves, fixture to waster line, vent riser and water runs

EACH

349.03

388.76

737.80

41 2” diameter

LF

3.82

8.56

12.38

42 Ditto 3”

LF

6.18

8.56

14.74

43 Ditto 4”

LF

8.24

8.56

16.80

44 Ditto 6”

LF

11.85

13.02

24.87

45 Ditto 8”

LF

21.53

15.98

37.51

46 Ditto 10”

LF

32.47

18.28

50.75

47 Ditto 12”

LF

54.12

22.85

76.97

48 PVC PIPE Schedule 40 includes fitting, hangars and erection ½ ‘ diameter 49 Ditto ¾”

LF

0.87

5.60

6.47

LF

1.03

5.88

6.91

50 Ditto 1”

LF

1.13

7.77

8.90

51 Ditto 2”

LF

1.62

9.55

11.17

52 Ditto 3”

LF

2.90

10.34

13.24

53 Ditto 4”

LF

3.80

12.69

16.48

27

54 Ditto 6”

LF

6.55

15.98

22.54

55 Ditto 8”

LF

8.03

17.70

25.73

56 ½” diameter

LF

9.00

7.88

16.88

57 Ditto ¾

LF

15.27

9.60

24.87

58 Ditto 1”

LF

24.50

14.28

38.78

59 ½” diameter r

LF

9.58

7.88

17.46

60 Ditto ¾

LF

16.24

9.60

25.84

61 Ditto 1”

LF

26.88

14.28

41.16

62 Copper pipe, underground, “K”, soft, w/ trenching, 1/2” coils

LF

2.44

6.58

9.03

63 Copper pipe, underground, “K”, soft, w/ trenching, 3/4” coils

LF

4.54

6.66

11.20

64 Copper pipe, underground, “K”, soft, w/ trenching, 1” coils

LF

5.71

5.77

11.48

65 Copper pipe, in building, “L”, w/fittings & supports, 1-1/2”

LF

8.00

7.14

15.14

66 Copper pipe, in building, “L”, w/fittings & supports, 3”

LF

24.32

7.14

31.46

67 PVC pipe, schedule 40, in building, w/fittings & supports 1/2”

LF

0.75

5.55

6.30

68 PVC pipe, schedule 40, in building, w/fittings & supports 1”

LF

0.99

6.10

7.09

69 Pipe, polypropylene, acid waste, 2”

LF

8.00

4.97

12.97

70 Pipe, polypropylene, acid waste, 3”

LF

11.08

7.45

18.52

71 Pipe, polypropylene, acid waste, 4”

LF

14.80

8.96

23.76

72 Brass pipe 0.50 “ dia with fittings / hangars and installation 73 1” diameter with fittings / hangars and installation 74 Ditto 2”

LF

5.56

5.88

11.44

LF

8.03

8.00

16.03

LF

20.97

10.85

31.81

75 2” diameter with fittings / hangars and installation 76 Ditto 3”

LF

10.76

13.07

23.84

LF

15.50

16.21

31.71

77 Ditto 4”

LF

21.37

21.42

42.80

78 Steel pipe, black, weld, schedule 40, A-120, screwed, 3/4”

LF

2.00

9.28

11.27

79 Steel pipe, black, weld, schedule 40, A-120, screwed, 1”

LF

2.40

11.03

13.44

80 Steel pipe, black, weld, schedule 40, A-120, screwed, 2”

LF

5.05

18.76

23.82

81 Steel pipe, black, weld, schedule 40, A-120, screwed, 3”

LF

10.43

26.27

36.70

82 Steel pipe, galvanized, weld, schedule 40 A120, screwed, 3/4”

LF

2.40

10.11

12.51

83 Steel pipe, galvanized, weld, schedule 40, A120, screwed, 1/2”

LF

4.38

13.79

18.17

84 Access door, painted steel, 8”x 8”

EACH

41.64

30.39

72.03

85 Access door, painted steel, 12”x 12”

EACH

41.65

31.98

73.63

28

86 Clean out, cast iron, floor & wall, 4”

EACH

130.10

79.76

209.86

87 Drains, cast iron, area, w/6”x 6” strainer

EACH

83.32

114.10

197.42

88 Stainless steel pipe, non-spooled, ‘304’, schedule 10, seamless, 3/4”

LF

12.75

9.58

22.33

89 Stainless steel pipe, non-spooled, ‘304’, schedule 10, seamless, 1”

LF

17.64

10.91

28.55

90 Stainless steel pipe, ‘316L’, schedule 10 seamless, 1/2”

LF

19.02

9.53

28.55

91 Stainless steel pipe, ‘316L’, schedule 10 seamless, 3/4”

LF

23.89

12.67

36.56

92 Stainless steel pipe, ‘316L’, schedule 10 seamless, 1”

LF

35.03

13.92

48.94

93 Fire protection, concealed system, wet, normal hazard, 1 to 5,000 SF

SF

1.57

2.16

3.73

94 Fire protection, concealed system, wet, normal hazard, 5,000 to 20,000 SF

SF

1.54

1.83

3.37

95 Fire protection, concealed system, wet, normal hazard, over 20,000 SF

SF

1.39

1.83

3.22

96 Fire protection, concealed system, wet, high hazard, 1 to 5,000 SF

SF

2.06

2.43

4.49

97 Fire protection, concealed system, wet, high hazard, 5,000 to 20,000 SF

SF

1.74

2.14

3.88

98 Fire protection, concealed system, wet, high hazard, over 20,000 SF

SF

1.74

2.02

3.75

99 Fire protection, exposed system, wet, high hazard, 1 to 5,000 SF

SF

1.76

2.20

3.96

99 Fire protection, exposed system, wet, high hazard, 5,000 to 20,000 SF

SF

1.60

1.96

3.56

100 Fire protection, exposed system, wet, high hazard, over 20,000 SF

SF

1.55

1.82

3.37

101 Fire protection, haylon / CO2 system 10,000 SF, 8’ ceiling & 2” raised floor

SF

9.64

-

9.64

102 Standpipe, dry, 6” diameter, hook up, connection, pump 6”

EACH

1,219.75

418.84

1,638.59

103 Fire pump, electric, 2500 GPM @ 40 psi

EACH

13,456.02

3,313.14

16,769.16

104 Fire pump, diesel, 500 GPM, @ 100 psi

EACH

37,503.21

3,698.12

41,201.33

105 Carbon dioxide equipment – cylinder

EACH

919.87

147.53

1,067.40

106 CO2 / Haylon system (computer room)

EACH

3,372.86

1,229.44

4,602.29

107 Emergency shower SS (excludes service pipe)

EACH

427.32

274.13

701.45

108 Eye wash station ditto

EACH

333.87

137.07

470.94

109 Furnace, up flow, 80 MBTU, gas fired

EACH

536.69

376.21

912.90

110 Furnace, up flow, 120 MBTU, gas fired

EACH

725.60

499.11

1,224.70

111 Unit heater, suspended, 85 MBTU, gas fired

EACH

746.87

403.79

1,150.66

112 Unit heater, suspended, 180 MBTU, gas fired

EACH

1,185.97

647.07

1,833.04

113 Electric furnace, unit heater, 10 MBTU, 3KW, 240v

EACH

347.79

188.10

535.89

29

114 Boiler, steel tube, gas fired, 600 MBH, 150# steam, pump 200 GPM, expansion tank, air separator, pipe, valves, etc.

EACH

34,403.17

-

34,403.17

115 Boiler, steel tube, gas fired, 6500 MBH, 150# steam, pump 250 GPM, expansion tank, air separator, pipe, valves, etc.

EACH

84,781.92

-

84,781.92

116 Boiler, steel tube, gas fired, 650 MBH, 15# steam, pump 200 GPM, expansion tank, air separator, pipe, valves, etc.

EACH

26,809.06

-

26,809.06

117 Chiller, reciprocating, air cool, 25 TON

EACH

19,574.86

-

19,574.86

118 Chiller, centrifugal, water cool, 50 TON

EACH

43,871.71

-

43,871.71

119 Chiller, absorption, hot water, 100 TON

EACH

109,035.37

-

109,035.37

120 Chiller, absorption, hot water, 500 TON

EACH

556,828.54

-

556,828.54

121 Cooling tower, 25 TON, compressor chiller

EACH

6,879.41

-

6,879.41

122 Cooling tower, 150 TON, compressor chiller

EACH

41,565.90

-

41,565.90

123 Cooling tower, 200 TON, absorption chiller

EACH

30,527.45

-

30,527.45

124 Cooling tower, 1000 TON, absorption chiller

EACH

100,288.01

-

100,288.01

125 Air conditioner, 10 TON, roof mounted, D-X

EACH

10,899.86

-

10,899.86

126 Air conditioner, 15 TON, roof mounted, D-X

EACH

16,637.41

-

16,637.41

127 Split system, air conditioner, residential, 2 TON

EACH

2,563.37

-

2,563.37

128 Split system, air conditioner, residential, 3 TON

EACH

4,374.91

-

4,374.91

129 Split system, air conditioner, commercial, 10 TON

EACH

8,427.24

-

8,427.24

130 Split system, air conditioner, commercial, 50 TON

EACH

31,731.87

-

31,731.87

131 Computer room, air conditioning unit, 5 TON

EACH

14,703.22

-

14,703.22

132 Computer room, air conditioning unit, 10 TON

EACH

26,974.30

-

26,974.30

133 Roof mounted, air-conditioner, gas heat, DX cooling, 2.5 TON cooling, 100 MBH heating

EACH

6,079.49

-

6,079.49

134 Roof mounted, air-conditioner, gas heat, DX cooling, 7.5 TON cooling, 200 MBH heating

EACH

12,802.15

-

12,802.15

135 Roof mounted, air conditioner, gas heat, DX cooling, 50 TON cooling, 750 MBH heating

EACH

63,051.63

-

63,051.63

136 Heat pump, 2 TON, 25,000 BTU, thru-wall

EACH

2,237.14

-

2,237.14

137 Heat pump, 10 TON, 120,000 BTU, roof, ductwork

EACH

13,276.81

-

13,276.81

138 Heat pump, 4 TON, 50,000 BTU, plenum

EACH

4,904.74

-

4,904.74

PUMPS

30

139 Pump, condensate, duplex, 40 GPM, 50’ head

EACH

6,512.69

-

6,512.69

140 Pump, condensate, duplex, 75 GPM, 50’ head

EACH

7,961.18

-

7,961.18

141 Pump, condensate, duplex, 120 GPM, 50’ head

EACH

10,236.32

-

10,236.32

142 Pump, water service, 20 GPM, 50’ head

EACH

1,349.15

-

1,349.15

143 Pump, water service, 60 GPM, 50’ head

EACH

2,132.30

-

2,132.30

144 Pump, water service, 200 GPM, 50’ head

EACH

3,520.04

-

3,520.04

145 Pump, water service, 400 GPM, 50’ head

EACH

5,037.22

-

5,037.22

146 Pump, water service, 2,000 GPM, 50’ head

EACH

13,225.28

-

13,225.28

147 Pump, water service, 4,000 GPM, 50’ head

EACH

17,154.99

-

17,154.99

148 Pump, fuel oil, 1 GPM, 1/4 horse power

EACH

1,362.06

-

1,362.06

149 Pump, fuel oil, 5 GPM, 1/4 HP

EACH

1,660.68

-

1,660.68

150 Pump, fuel oil, 10 GPM, 1/4 HP

EACH

1,823.80

-

1,823.80

151 Air handler, 2,000 CFM, 5 TON

EACH

4,780.88

-

4,780.88

152 Air handler, 5,000 CFM, 10 TON

EACH

12,826.68

-

12,826.68

153 Air handler, 15,000 CFM, 30 TON

EACH

37,056.08

-

37,056.08

154 Air handler, 30,000 CFM, 75 TON

EACH

65,296.12

-

65,296.12

155 Air handler, 2,500 CFM, 7.5 TON

EACH

3,497.97

-

3,497.97

156 Air handler, 5,500 CFM, 10 TON

EACH

5,693.40

-

5,693.40

157 Air handler, 6,400 CFM, 15 TON

EACH

7,773.53

-

7,773.53

158 Coil, chill water, 20,000 CFM, 40 SF

EACH

9,810.73

-

9,810.73

159 Coil, chill water, 27,000 CFM, 55 SF

EACH

12,258.81

-

12,258.81

160 Coil, chill water, 33,000 CFM, 60 SF

EACH

14,242.13

-

14,242.13

161 Coil, hot water, 17,000 CFM, 15 SF

EACH

1,921.92

-

1,921.92

162 Coil, hot water, 23,000 CFM, 20 SF

EACH

2,261.66

-

2,261.66

163 Coil, hot water, 30,000 CFM, 32 SF

EACH

3,391.26

-

3,391.26

164 Fan, supply, low pressure, 10,000 CFM

EACH

3,328.70

843.40

4,172.10

165 Fan, supply, high pressure, 10,000 CFM

EACH

4,774.74

890.12

5,664.86

166 Fan, supply, high pressure, 50,000 CFM

EACH

12,107.95

2,230.20

14,338.15

167 Expansion tank, chilled water, 40 GAL

EACH

198.69

151.22

349.91

168 Expansion tank, ASME code, 80 GAL

EACH

1,159.03

821.27

1,980.30

169 Expansion tank, ASME code, 250 GAL

EACH

3,482.01

1,925.29

5,407.30

170 Controls, pneumatic, air conditioning unit, to 15 TONS

SUM

5,089.95

-

5,089.95

171 Controls, pneumatic, air conditioning unit, to 30 TONS

SUM

5,948.51

-

5,948.51

172 Controls, pneumatic, boiler, to 10,000 MBH

SUM

7,726.92

-

7,726.92

173 Controls, pneumatic, cooling tower, to 100 TON

SUM

2,023.72

-

2,023.72

174 Controls, pneumatic, exhaust fan

SUM

561.74

-

561.74

176 Duct rectangular, galvanized iron, with supports, to 10000 LBS

LBS

2.63

3.79

6.42

31

177 Duct rectangular, galvanized iron, with supports, 10,000 LBS to 25,000 LBS

LBS

2.60

3.17

5.77

178 Duct rectangular, galvanized iron, with supports, 25,000 LBS to 50,000 LBS

LBS

2.19

2.90

5.10

179 Duct flexible, insulated, with clamps, 4”

LF

2.17

4.18

6.35

180 Duct flexible, insulated with clamps, 6”

LF

2.83

5.02

7.85

181 Duct flexible, insulated, with clamps, 8”

LF

4.15

7.25

11.40

182 Duct flexible, insulated, with clamps, 10”

LF

4.24

9.56

13.80

183 Duct flexible, insulated, with clamps, 12”

LF

5.22

13.43

18.65

184 Fire dampers, insulated, UL rated, fusible link to 1 SF

EACH

104.26

67.62

171.88

185 Fire dampers, insulated, UL rated, fusible link to 2 SF

EACH

147.18

98.35

245.53

186 Fire dampers, insulated, UL rated, fusible link to 4 SF

EACH

176.60

129.10

305.70

LF

15.45

18.44

33.89

188 Steel pipe, seamless, A-53, schedule 40, welded, 3”

LF

17.79

27.30

45.09

189 Steel pipe, seamless, A-53, schedule 40, welded, 4”

LF

23.62

34.43

58.05

190 Steel pipe, seamless, A-53, schedule 40, welded, 6”

LF

31.65

41.92

73.57

191 Valve, gate, globe & check, iron body, flange, 125#, bolt & gasket, 1-1/2”

EACH

244.07

117.40

361.47

192 Valve, gate, globe & check, iron body, flange, 125#, bolt & gasket, 2”

EACH

267.37

130.32

397.70

193 Valve, gate, globe & check, iron body, flange, 125#, bolt & gasket, 3”

EACH

302.95

145.08

448.03

194 Valve, gate, globe & check, iron body, flange, 125#, bolt & gasket, 6”

EACH

770.33

336.87

1,107.20

195 Valve, gate, globe & check, iron body, flange, 125#, bolt & gasket, 8”

EACH

1,522.07

442.60

1,964.67

196 Steam traps, cast iron, screwed, 3/4”, bucket

EACH

156.99

43.16

200.15

197 Steam traps, cast iron, screwed, 1”, bucket

EACH

264.92

55.33

320.25

198 Butterfly valve, iron body, nylon, 2”, wafer body

EACH

117.75

102.66

220.41

199 Butterfly valve, iron body, nylon, 3”, wafer body

EACH

126.32

141.38

267.70

200 Butterfly valve, iron body, nylon, 6”, wafer body

EACH

280.86

280.32

561.18

201 Butterfly valve, iron body, nylon, 8” wafer, chain

EACH

415.78

404.49

820.27

202 Butterfly valve, iron body, nylon, 2”, lug type

EACH

133.68

102.66

236.34

203 Butterfly valve, iron body, nylon, 3”, lug type

EACH

164.35

141.38

305.73

PIPING n/e 50’ above FFL (Assumes 5 # fittings per 100’) 187 Steel pipe, seamless, A-53, schedule 40, welded, 2”

32

204 Butterfly valve, iron body, nylon, 6”, lug type

EACH

322.57

274.16

596.73

205 Butterfly valve, iron body, nylon, 8”, lug type 206 207 Valve, balancing, circuit setter, 1/2”

EACH

450.12

404.49

854.61

EACH

60.10

25.45

85.55

208 Valve, balancing, circuit setter, 3/4”

EACH

84.64

30.48

115.12

209 Valve, balancing, circuit setter, 1 1/2”

EACH

111.62

65.98

177.60

210 Valve, balancing, circuit setter, 2”

EACH

196.24

110.40

306.63

211 Stainless steel 304, ½” diameter (L/M)

LF

14.10

-

14.10

212 Stainless steel 304, 1” diameter (L/M)

LF

21.47

-

21.47

213 Brass – non threaded ½” (L/M)

LF

9.76

-

9.76

214 Brass – non threaded 1” (L/M)

LF

10.30

-

10.30

215 Strainers 1” bronze

EACH

50.60

25.07

75.67

216 Strainers 1.5” bronze

EACH

79.07

39.40

118.47

217 Strainers 2” bronze

EACH

103.60

50.14

153.74

218 CS tee ½”

EACH

8.75

26.85

35.60

219 CS tee ¾””

EACH

11.29

26.85

38.15

220 CS tee 1”

EACH

18.28

26.85

45.14

221 CS tee 2”

EACH

20.49

51.33

71.82

222 CS tee 3”

EACH

25.43

78.19

103.62

223 CS tee 4”

EACH

36.02

72.21

108.22

224 CS tee 6”

EACH

61.36

153.99

215.35

225 Floor cleanout CI 4” dia

EACH

114.90

102.65

217.55

226 Wall cleanout CI 4” dia

EACH

40.13

76.99

117.12

CPVC Schedule 40 with fittings / hangars and installation 227 1” diameter

LF

3.26

6.18

9.43

228 Ditto 1.5”

LF

4.85

7.14

11.99

229 Ditto 2”

LF

6.61

9.55

16.16

230 Ditto 3”

LF

12.25

11.70

23.95

231 Ditto 4”

LF

16.63

14.33

30.96

232 Ditto 6”

LF

20.59

16.90

37.49

M

40.11

27.18

67.29

M

49.88

34.78

84.66

M

41.20

31.52

72.73

M

50.96

42.39

93.35

Metric Values 233 Supply & install CI ductile pipe in trench 100 mm 234 Ditto 150 mm 235 Supply & install CI ductile pipe on walls / racks 100 mm 236 Ditto 150 mm ditto 237 Supply & install copper pipe 15 mm with cap joints on walls / racks 238 Ditto 25 mm

M

14.63

10.87

25.50

M

18.97

17.49

36.46

239 Ditto 50 mm

M

47.27

37.17

84.44

240 Multiply above piping units by 1.35 for fittings / bends for normal applications 241 Ditto for congested / complex application use 1.60 242 Supply & install copper pipe 15 mm with comp

M

-

-

-

M

-

-

-

M

16.81

13.04

29.85

33

joints on walls / racks 243 Ditto 25 mm

M

25.16

16.95

42.11

244 Ditto 50 mm

M

53.66

39.23

92.89

245 Multiply above piping units by 1.35 for fittings / bends for normal applications 246 Ditto for congested / complex application use 1.60 246 Supply & install black / galv steel pipe 15 mm with screwed joints on walls / racks 248 Ditto 25 mm

M

-

-

-

M

-

-

-

M

2.64

11.15

13.79

M

3.30

11.89

15.19

249 Ditto 40 mm

M

6.34

19.18

25.52

250 Ditto 50 mm

M

7.97

26.62

34.59

251 Multiply above piping units by 1.35 for fittings / bends for normal applications 252 Ditto for congested / complex application use 1.60 253 Supply & install 304L SS pipe 15 mm with screwed joints on walls / racks 254 Ditto 25 mm

M

-

-

-

M

-

-

-

M

4.17

7.55

11.72

M

7.32

8.48

15.80

255 Ditto 50 mm

M

14.04

11.90

25.94

256 Multiply above piping units by 1.35 for fittings / bends for normal applications 257 Ditto for congested / complex application use 1.60 258 Supply & install UPVC pipe 15 mm with cap joints on walls / racks 259 Ditto 25 mm

M

-

-

-

M

-

-

-

M

3.20

6.57

9.78

M

5.04

7.18

12.22

260 Ditto 50 mm

M

8.30

8.48

16.78

261 Multiply above piping units by 1.35 for fittings / bends for normal applications 262 Ditto for congested / complex application use 1.60 263 Copper pipe type L 12 mm dia including fittings and erection 264 Ditto 19 mm

M

-

-

-

M

-

-

-

M

9.93

12.90

22.83

M

16.38

17.58

33.96

265 Ditto 25 mm

M

24.86

21.42

46.28

266 Ditto 40 mm

M

44.46

26.31

70.77

267 Ditto 50 mm

M

75.24

31.10

106.34

268 Copper pipe type K 12 mm dia including fittings and erection 269 Ditto 19 mm

M

11.65

13.42

25.06

M

19.08

18.51

37.60

270 Ditto 25 mm

M

29.02

22.57

51.58

271 Ditto 40 mm

M

50.65

27.87

78.52

272 Ditto 50 mm

M

82.06

32.03

114.09

34

#

Description

Unit

Material

Labor

Total

(9) CSI DIVISION 16 ELECTRICAL SWITCHGEAR / CLEAN ROOM ITEMS 1

Substation, 150 KVA, 1200 AMP, with transformer, breakers, pad, grounding

EACH

46,707.30

-

46,707.30

2

Substation, 1000 KVA, 3000 AMP, with transformer, breakers, pad, grounding

EACH

86,865.70

-

86,865.70

3

Service switchboard, 600 A, 3PH, 277/480V MCMB, breakers, bus, meter, enclosure

EACH

17,995.35

-

17,995.35

4

Distribution, switchboard, 600 A, 3PH, 120/208 V, enclosure, breakers

EACH

6,527.12

-

6,527.12

5

Distribution, switchboard, 800 A, 3PH, 120/208 V, enclosure, breakers

EACH

8,277.75

-

8,277.75

6

Distribution switchboard, 400 A, 3PH, 277/480 V, enclosure, breakers

EACH

5,475.46

-

5,475.46

7

Transformer, 480/120 V, 3 phase, 500 KVA

EACH

23,168.26

-

23,168.26

8

Transformer, 480/120 V, 3 phase, 750 KVA

EACH

32,440.44

-

32,440.44

9

Transformer, 480/120 V, 3 phase, 1,000 KVA

EACH

38,777.24

-

38,777.24

10 Panel boards, bolt-on breakers, 277/480V, 3PH, 4W, 100 A, 24 circuits

EACH

2,996.39

-

2,996.39

11 Panel boards, bolt-on breakers, 277/480V, 3PH, 4W, 225 A, 42 circuits

EACH

4,587.29

-

4,587.29

12 Panel boards, bolt-on breakers, 277/480V, 3PH, 4W, 400 A, 42 circuits

EACH

4,753.70

-

4,753.70

13 Transformer, 480/120 V, 3 phase, 45 KVA

EACH

3,593.14

569.74

4,162.88

14 Ditto 75 KVA

EACH

4,420.58

797.65

5,218.23

15 Ditto 100 KVA

EACH

5,044.00

968.57

6,012.57

16 Ditto 150 KVA

EACH

5,610.74

1,150.88

6,761.62

17 Ditto 200 KVA

EACH

7,106.93

1,732.03

8,838.96

18 Ditto 500 KVA

EACH

11,051.46

2,392.94

13,444.39

19 Motors 230 / 460 v 60 Hz 0.50 HP

EACH

139.41

85.47

224.88

20 Ditto 1 HP

EACH

199.49

85.47

284.96

21 Ditto 2.50 HP

EACH

260.70

85.47

346.16

22 Ditto 5 HP

EACH

311.71

125.34

437.05

23 Ditto 10 HP

EACH

481.74

125.34

607.08

24 Ditto 25 HP

EACH

889.79

165.24

1,055.03

25 Ditto 50 HP

EACH

1,983.59

188.02

2,171.61

26 Emergency generator to 30 KW

EACH

26,157.30

-

26,157.30

27 Emergency generator to 100 KW

EACH

48,520.35

-

48,520.35

28 Emergency generator to 400 KW

EACH

124,723.04

-

124,723.04

29 Emergency generator to 750 KW

EACH

259,499.08

-

259,499.08

35

30 Emergency generator to 1,000 KW

EACH

306,592.00

-

306,592.00

31 Automatic transfer switch 400 A

EACH

11,351.10

1,017.98

12,369.08

32 Exit sign, incandescent, battery, surface mounted

EACH

314.77

104.26

419.03

33 Exit sign, incandescent, battery, recessed

EACH

305.00

136.14

441.14

34 Exit sign, fluorescent, battery, surface mounted

EACH

314.77

104.26

419.03

35 Exit sign, fluorescent, battery, recessed

EACH

314.77

136.14

450.90

36 600 V armored cable # 12

LF

0.51

1.36

1.87

37 Ditto # 10

LF

1.08

1.94

3.03

38 Ditto # 8

LF

2.10

3.64

5.74

39 Conduit and wire, in slab, 60 A, 3 CU wire 600 V THHN #6, 1 CU soft #10, in 1” PVC

LF

2.70

5.49

8.20

40 Conduit and wire, in slab, 100 A, 4 CU wire 600 V THHN #2, 1 CU soft #8, in 1” PVC

LF

6.99

7.45

14.44

41 Conduit and wire, in slab, 225 A, 4 CU wire 600 V THHN #4/0, 1 CU soft #1, in 2” PVC

LF

20.32

14.54

34.86

42 Conduit and wire, in slab, 300 A, 4 CU wire 600 V THHN 350 MCM, 1 CU soft #4, in 3” PVC

LF

30.22

18.10

48.32

43 Conduit and wire, in slab, 800 A, 6 CU wire 600 V THHN 500 MCM, 2 CU soft #3/0, in 3” PVC

LF

66.78

35.52

102.29

44 Conduit and wire, in slab, 1200 A, 16 CU wire 600 V THHN 350 MCM, 4 bare CU soft #3/0, in 3” PVC

LF

130.79

75.21

206.00

45 Conduit and wire, 60 A, 3 CU wire 600 V THHN # 6, 1 bare CU soft # 10, in 1” EMT

LF

3.16

6.38

9.54

46 Conduit and wire, 100 A, 4 CU wire 600 V THHN #2, 1 bare CU soft #8, in 1” EMT

LF

8.00

9.36

17.36

47 Conduit and wire, 400 A, 4 CU wire 600 V THHN 500 MCM, 1 bare CU soft #2, in 3” EMT

LF

47.87

21.73

69.60

48 Conduit and wire, 1600 A, 20 CU wire 600 V THHN 400 MCM, 5 bare CU soft # 4/0, in 3” EMT

LF

222.30

105.10

327.40

49 Conduit and wire, 60 A, 3 CU wire 600 V THHN #6, 1 bare CU soft #10, in 1” GRS

LF

5.43

7.92

13.35

50 Conduit and wire, 100 A, 4 CU wire 600 V THHN #2, 1 bare CU soft # 8, in 1” GRS

LF

10.11

11.18

21.29

51 Conduit and wire, 400 A, 4 CU wire 600 V THHN 500 MCM 1 bare CU soft #2, in 3” GRS

LF

54.05

26.29

80.34

52 Conduit and wire, 1000 A, 12 CU wire 600 V THHN 400 MCM, 3bare CU soft # 2/0, in 3” GRS

LF

143.08

73.86

216.94

53 Cable trays ladder type 12”, with ells, tees, 4” drop cover, uni-strut hangers

LF

24.07

21.79

45.85

36

54 Fixture, incandescent, commercial grade, surface mounted, with junction box, wire, conduit, 100 watt

EACH

66.50

110.39

176.88

55 Fixture, incandescent, commercial grade, surface mounted, with junction box, wire, conduit, 200 watt

EACH

84.05

113.81

197.86

56 Fixture, fluorescent, commercial grade, recessed, with junction box, wire, conduit, 2’x2’

EACH

121.65

118.39

240.04

57 Fixture, fluorescent, commercial grade, recessed, with junction box, wire, conduit, 2’x4’

EACH

156.78

132.46

289.24

58 Fixture, fluorescent strip, surface mounted, with junction box, wire, conduit, 4’, 4 lamp

EACH

149.08

155.77

304.86

59 Fixture, mercury vapor, hi-bay, with junction box, wire, conduit, 1000 watt

EACH

770.45

237.94

1,008.39

60 Fixture, metal halide, hi-bay, with junction box, wire, conduit, 400 watt

EACH

490.08

236.83

726.91

61 Fixture, high pressure sodium, hi-bay, with junction box, wire, conduit, 1000 watt

EACH

633.81

268.60

902.41

62 Perimeter security lights, industrial, 400 watt HPS wall pack, 40’ on center

EACH

15.26

6.87

22.13

LF

14.81

7.82

22.63

64 Telephone system, warehouse, 10,000 SF

SUM

4,465.28

-

4,465.28

65 Telephone system, office, 150,000 SF

SUM

66,491.31

-

66,491.31

66 Fire alarm system, warehouse, 10,000 SF

SUM

10,821.61

-

10,821.61

67 Fire alarm system, office, 150,000 SF

SUM

140,668.76

-

140,668.76

68 Public address/intercom system, warehouse, 10,000 SF

SUM

5,856.12

-

5,856.12

69 Public address/ intercom system, office, 150,000 SF

SUM

58,195.14

-

58,195.14

70 Security system, warehouse, 10,000 SF

SUM

4,257.88

-

4,257.88

71 Security system, office, 150,000 SF

SUM

62,465.23

-

62,465.23

72 Réceptacle, duplex, commercial, standard grade

EACH

28.67

97.15

125.82

73 Receptacle, 100 A, welding, heavy duty

EACH

407.74

209.85

617.59

63 Perimeter security lights, school, 250 watt HPS wall pack, 30’ on center

74 Switch, commercial, single pole

EACH

23.18

68.68

91.86

75 Switch, commercial, double pole

EACH

32.94

79.73

112.66

76 Switch, commercial, three way toggle

EACH

28.06

83.40

111.46

77 Sound system, 12 outlets

EACH

14,030.28

-

14,030.28

78 Intercom system, 20 outlets

EACH

17,690.35

-

17,690.35

79 Master clock system, 10 devices

EACH

13,420.26

-

13,420.26

80 Closed circuit TV

EACH

4,382.61

-

4,382.61

81 Remote entry card reader

EACH

4,923.79

-

4,923.79

CLEAN ROOM ITEMS

37

82 Filter Fan 2’ x 4’ with HEPA Filter 650 CFM / 90FPM

EACH

8,321.04

102.40

8,423.44

83 18” x 18” x 16” pass thru EP SS (w/o window)

EACH

1,622.74

128.01

1,750.76

84 Roll up pass thru 36” x 30” x 60” wall mounted

EACH

8,706.00

153.62

8,859.61

LF

43.83

10.24

54.07

86 Acrylic glove box 2 glove 36” x 24” x 20”

EACH

1,044.72

51.21

1,095.93

87 Atmospheric chamber without air lock 36” x 24” x 24”

EACH

3,671.91

76.80

3,748.71

88 Ceiling module, fluorescent illuminators 4,600 FC, 4’ x 2’

EACH

229.79

102.40

332.19

89 Ditto flow thru module 3,100 FC

EACH

3,849.59

153.62

4,003.21

90 Portable A/C module 20,000 BTU’s

EACH

4,086.49

153.62

4,240.11

91 Ditto 50,000 BTU’s

EACH

5,294.67

204.82

5,499.49

92 Humidifier 20 CFM 110 V

EACH

3,882.18

98.00

3,980.18

93 Horizontal laminar flow station 4’ x 2’6” x 2’6”

EACH

7,072.93

195.99

7,268.91

94 Ditto vertical 4”6” x 4’ x 4’

EACH

6,551.53

195.99

6,747.52

95 HEPA filter 2’ x 4’

EACH

833.11

48.99

882.11

85 Soft wall Polyurethane 40 mm clear 8’ high

96 Ditto 2’ x 3’

EACH

799.12

48.99

848.11

97 ULPA filter 2’ x 4’

EACH

957.80

48.99

1,006.79

98 Ditto 2’ x 3’

EACH

912.45

48.99

961.45

99 Clean room dehumidification module 100CFM

EACH

3,910.51

195.99

4,106.50

100 Ditto 250 CFM

EACH

7,787.02

195.99

7,983.01

101 Pass thru chamber S.S. 1’ x 1’ x 1’

EACH

1,059.81

98.00

1,157.81

102 Ditto 1’6” x 1’ 6” x 2’

EACH

1,779.56

98.00

1,877.56

103 Ditto 2’ x 2’ 2’

EACH

2,187.62

98.00

2,285.62

104 Glove box air lock 12” x 12” x 14”

EACH

2,406.38

100.28

2,506.66

105 Ditto 12” x 12” x 16”

EACH

2,465.33

100.28

2,565.61

106 Ditto 16” x 16” x 16”

EACH

2,561.67

100.28

2,661.94

107 Vacuum Antechamber 16” diameter x 24” long (4 ports) 108 P-Thru vacuum / nitro oven 120 v / 60 Hz

EACH

13,318.42

123.06

13,441.48

EACH

9,317.22

123.06

9,440.29

109 Air Handler (High Volume) 3300 CFM 1.5 HP

EACH

1,643.55

123.06

1,766.62

110 HDPE 3,000 gallon Polyethylene tank 90” dia x 130” high 111 Ditto 5,000 gallon

EACH

1,696.45

104.08

1,800.53

EACH

3,747.72

104.08

3,851.81

112 Ditto horizontal 2,500 gallon 60” dia

EACH

2,960.43

104.08

3,064.52

113 2 “PVC gate valves with EPDM seat NSF61 150 PSI 120 F 114 4” ditto

EACH

429.24

104.08

533.32

EACH

881.12

104.08

985.20

115 6” ditto

EACH

1,752.54

104.08

1,856.62

116 1” CPVC pressure valves

EACH

386.10

52.04

438.14

117 2” ditto

EACH

589.93

78.06

667.99

118 1” – 3 way CPVC with threaded socket –true union 119 2” ditto

EACH

88.43

52.04

140.47

EACH

236.18

78.06

314.25

120 4” ditto

EACH

1,004.07

78.06

1,082.13

38

121 0.50” CPVC solenoid valves with EPDM seals

EACH

561.89

52.04

613.93

122 0.75” ditto

EACH

746.30

52.04

798.35

123 0.50” Clear PVC pipe (Material only)

LF

1.39

-

1.39

124 0.75” ditto

LF

1.86

-

1.86

125 1” ditto

LF

3.68

-

3.68

126 1.50” ditto

LF

4.48

-

4.48

127 2” ditto

LF

5.91

-

5.91

128 4” ditto

LF

18.55

-

18.55

-

-

-

2.29

-

2.29

129 Multiply above by 1.45 - 1.65 to above for fittings 130 1” CPVC sch 80 (Material only)

LF

131 2” ditto

LF

7.43

-

7.43

132 4” ditto

LF

23.96

-

23.96

133 6” ditto

LF

42.46

-

42.46

-

-

-

13,874.65

208.17

14,082.82

134 Multiply above by 1.45 - 1.65 to above for fittings CPVC 135 304 SS Pass through 40” x 40” with window

EACH

136 316 SS 12g tank 500 gallon 50” dia x 60” high

EACH

12,108.10

78.06

12,186.16

137 316 SS 12g tank 1,000 gallon 70” dia x 70” high 138 316 SS 12g tank 1,500 gallon 80” dia x 70” high 139 316 SS Agitator 1 HP TEFC 115 / 230 v single speed 1” dia shaft 32” long 140 Ditto 1.5 HP 230 v

EACH

20,236.60

78.06

20,314.66

EACH

27,214.37

104.08

27,318.45

EACH

4,254.61

104.08

4,358.69

EACH

5,554.17

104.08

5,658.26

141 Clean room AC module including ductwork, 220 v and controls 20,000 BTU’s 142 Ditto 50,000 BTU’s

EACH

5,540.15

208.17

5,748.32

EACH

7,414.56

208.17

7,622.72

UNDERGROUND PVC ELECTRICAL CONDUIT (excluded excavation and backfill) 143 25 mm dia

M

3.69

4.21

7.90

144 50 mm

M

7.23

5.98

13.21

145 75 mm

M

13.36

9.31

22.67

146 100 mm

M

22.20

14.30

36.50

Trench Ducts with cover (excluded excavation and backfill) 147 6” wide

LF

105.00

12.50

127.50

148 9“ wide

LF

125.00

15.50

140.50

149 12” wide

LF

145.00

17.00

162.00

150 18” wide

LF

175.00

20.00

195.00

151 24” wide

LF

235.00

27.00

262.00

152 6’ x 6’ x 6’ deep

Each

6,750.00

1,550.00

8,300.00

153 Ditto 9’ x 9’ x 6’ deep

Each

10,500.00

2,250.00

12,750.00

LF

12.50

2.70

15.20

Concrete Electrical Vaults

Miscellaneous Site Work 154 Armco galvanized guard rail (2 # rails)

39

156 Rail spur (standard gauge)

LF

55.50

67.00

122.50

157 3” asphaltic concrete on 4” stone base

SF

1.30

1.30

2.60

158 Ditto 3” on 6” stone base

SF

1.65

1.40

3.05

159 General repairs to bituminous roadway 2” with 4” stone base, after installing utilities 2’ wide 160 Ditto 3’ wide

LF

45.00

22.00

67.00

LF

65.00

42.00

107.00

161 Ditto 4’ wide

LF

105.00

64.00

169.00

NOTE: To determine man hour units from the above data source divided labor value by $53.00, this is an average bill out rate for skilled and unskilled labor (Union / Non Union – Merit Shop), to determine construction rental equipment multiply install value by 6.5%; i.e., the install value contains 6.5% for construction equipment, labor unit man hours should be adjusted accordingly.

40

SECTION B – 5 GENERAL CAPITAL COST ESTIMATING DATA / CALIBRATION FACTORS (LOCATION FACTORS / PRODUCTIVITY) The following general cost estimating data is applicable to City Location Factors, Country Location Factors (North America and International Locations) Engineering / Architectural CM and Validation Fee’s, Labor Rates (union and non union), Sales Tax, Inflation Rates, Bricks, Carbon Steel Pipe, Rebar, Ready Mix Concrete, L.W. Concrete Blocks, R.C. Pipe, Copper Pipe, Conduit, Stainless Steel pipe, Average hourly labor rates, Average Productivity Modifiers and General Conditions.

CITY LOCATION FACTORS (USA and Canada Locations)

Location factors are based on 50 / 50 split of labor and materials ALABAMA Anniston Birmingham Decatur Huntsville Mobile Montgomery ALASKA Anchorage Fairbanks Juneau ALBERTA Calgary Edmonton Fort McMurray ARIZONA Flagstaff Phoenix Tucson ARKANSAS Little Rock Jonesboro BRITISH COLUMBIA Vancouver Victoria CALIFORNIA Anaheim Fresno Long Beach Los Angeles Oakland

Location Factor .84 .86 .83 .86 .88 .85 1.27 1.24 1.22 1.15 – 1.30 1.20 – 1.30 1.25 – 1.60 .86 .92 .87 .81 .80 1.08 1.07 1.06 1.07 1.08 1.14 1.10

1

Riverside Sacramento San Diego San Francisco San Jose Santa Rosa Woody COLORADO Colorado Springs Denver Ft Collins Gypsum Leadville Vail CONNECTICUT Hartford New Haven Stamford D.C. CITY of WASHINGTON - BASE CITY Washington D.C. DELAWARE Dover Wilmington FLORIDA Fort Lauderdale Jacksonville Miami Naples Orlando St. Petersburg Tampa GEORGIA Atlanta Macon Savannah HAWAII Honolulu IDAHO Boise Ketchum Pocatello Twin Falls ILLINOIS Chicago Kankakee Peoria Rock Island Rockford

2

1.06 1.07 1.07 1.20 1.12 1.11 1.04 .93 .94 .92 .91 .92 .91 1.08 1.07 1.06 1.00 .95 .96 .87 .87 .89 .88 .92 .88 .91 .93 .87 .87 1.17 .90 .89 .88 .86 1.06 .96 .95 .97 .94

INDIANA Evansville. Hammond Indianapolis South Bend IOWA Cedar rapids Des Moines Davenport KANSAS Topeka Wichita KENTUCKY Bowling Green Georgetown Louisville Paducah LOUISIANA New Orleans Shreveport MAINE Bath Portland. MANITOBA Winnipeg MARYLAND Baltimore Silver Spring MASSACHUSETTS Boston New Bedford Lowell Springfield Worcester MICHIGAN Detroit. Flint Grand Rapids. Kalamazoo Lansing Saginaw MINNESOTA Duluth Minneapolis St. Paul MISSISSIPPI Biloxi Canton

.96 .95 .96 .94 .88 .90 .88 .86 .85 .86 .86 .86 .86 .93 .82 .89 .87 .99 .96 .97 1.08 1.05 1.05 1.05 1.05 .94 .93 .93 .94 .93 .92 .94 .96 .93 .88 .86

3

Jackson Tupelo MISSOURI Columbia Kansas City St. Louis MONTANA Butte Missoula NEBRASKA Omaha NEVADA Las Vegas Reno NEW HAMPSHIRE Concord Manchester NEW JERSEY Atlantic City Burlington Cranbury Ewing Hightstown Jersey City Medford Newark New Brunswick. Princeton Trenton NEW MEXICO Albuquerque Las Cruces Santa Fe NEW YORK Albany Buffalo Lake George New York City Rochester Saratoga Springs Schenectady. Syracuse Utica NORTH CAROLINA Asheville Charlotte Raleigh / RTP Wilmington

.86 .86 .92 .94 .95 .86 .86 .86 .99 .96 .94 .93 .97 .98 .97 .98 .98 1.03 .96 1.08 1.06 1.04 1.02 .87 .86 .88 1.03 1.04 .97 1.20 1.05 1.00 1.06 1.02 1.02 .89 .89 .94 .92

4

NORTH DAKOTA Bismarck Crosby Fortuna Fargo Minot OHIO Akron Canton Cincinnati Cleveland Columbus Dayton Lima Toledo Youngstown Zanesville OKLAHOMA Oklahoma City Tulsa ONTARIO Hamilton London Thunder Bay Toronto Sarnia Sudbury Windsor OREGON Eugene Portland PENNSYLVANIA Conshohocken Erie Newtown Kutztown Morrisville New Hope Philadelphia Pittsburgh Reading Scranton Yardley York West Chester PUERTO RICO San Juan QUEBEC

.88 .89 .89 .88 .87 .91 .90 .91 .94 .88 .89 .90 .90 .89 .90 .87 .85 .99 .97 .97 1.00 .99 .98 .97 .94 .93 .99 .94 .97 .90 .97 .96 1.07 1.01 .95 .94 .98 .93 .96 .94

5

Alma Kirkland Mirabel Montreal Sorel Verdun RHODE ISLAND Newport Providence SOUTH CAROLINA Charleston Columbia Greenville SOUTH DAKOTA Rapid City Sioux Falls TENNESSEE Chattanooga Clarksville Cleveland Jackson Knoxville Memphis Murfreesboro Nashville Sweetwater TEXAS Abilene Amarillo Austin Beaumont / Port Arthur / Sabine Pass Corpus Christi Dallas El Paso Fort Worth Houston Kennedy Lubbock San Antonio Victoria. Waco UTAH Salt Lake City VERMONT Burlington VIRGINIA Chatham Hopewell

6

.94 .94 .94 .95 .95 .94 .96 .97 .83 .82 .83 .84 .85 .86 .85 .85 .84 .88 .87 .84 .87 .85 .88 .88 .90 .89 .88 .91 .86 .89 .91 .87 .87 .87 .88 .89 .92 .95 .84 .90

Norfolk Richmond Roanoke WASHINGTON Bellingham Ferndale Seattle Spokane Tacoma WEST VIRGINIA Charleston Huntington Hurricane Institute Parkersburg WISCONSIN Madison Milwaukee. WYOMING Casper Cheyenne Gillett

.85 .91 .87 .92 .92 .97 .94 .93 .89 .88 .86 .88 .86 .92 .96 .86 .86 .86

The above North American city indexes / location factors are intended for comparison objectives only. The base / standard benchmark city is Washington, D.C; i.e. which is fixed at a value of 1.00. Built up areas close to major cities / Suburbs outside major cities generally have a lower cost basis than major city center costs. Remote locations, such as, Anchorage or Fairbanks, Alaska, will generally have to a greater degree have higher prices contrasted to lower 48 major cities, due to increases in logistics and increased shipping / transportation costs. Canadian city indexes reflect August 2008 Canadian currency projections. The exchange rate used was: C$ 0.94 (Canadian) = $1.00 US

GLOBAL LOCATION FACTORS, CONSTRUCTION PRODUCTIVITY AND ENGINEERING (DESIGN & DRAFTING) PRODUCTIVITY V’s USA STANDARDS (Washington D.C. - 30 mile radius = 1.00) The factors indicated below would be appropriate for ($5 - $100+ million) hi-tech / manufacturing / pharmaceutical type facility * Applicable if the above value is for a “first of its kind” building / facility (engineering / construction endeavor will initially experience a steep learning curve as the staff navigates it way through local import regulations and various permitting issues) if company has built or has operating facilities already in country reduce location factor value by 0.04 – 0.08 points:

Country

City

Argentina Australia

Melbourne

Location Factor * 0.96 1.05

7

Construction Productivity 1.40 -1.55 1.10 - 1.20

Eng / Design Work Productivity 1.20 – 1.30 1.10

Perth Sydney Austria Belgium Brazil Canada

China

Cyprus Czech Republic Denmark Egypt Finland France Germany

Greece Hong Kong Hungary India Israel Indonesia Ireland

Italy Japan Kuwait Malaysia Mexico The Netherlands New Zealand Nigeria Norway Oman Romania Russia Poland

Calgary Edmonton Fort McMurray Halifax Montreal Toronto Vancouver Beijing Guangzhou Shanghai

Nice Paris Berlin Hamburg Munich

Cork Dublin Galway

1.05 1.06 1.08 1.06 0.96 1.06 1.06 1.10 – 1.15 1.03 1.03 1.02 1.03 0.92 0.92 0.92 0.97 0.95 1.10 0.94 1.10 1.04 1.06 1.05 1.04 1.04 0.96 0.99 0.97 0.96 0.94 0.93 1.04 1.06 1.03 0.97 1.08 1.01 0.96 0.94 1.05 1.05 1.00 1.17 1.00 0.96 0.97 0.95

8

1.10 - 1.20 1.10 – 1.20 1.10 – 1.15 1.10 – 1.15 2.25 1.20 1.20 1.30 – 1.65 1.15 1.15 1.15 1.10 – 1.15 2.00 – 3.00 2.00 – 3.00 2.00 – 3.00 1.65 1.45 – 1.65 1.10 - 1.20 2.50 – 3.00 1.10 – 1.20 1.10 – 1.15 1.10 – 1.15 1.10 – 1.15 1.10 – 1.15 1.10 – 1.15 1.60 1.20 – 1.60 1.40 2.30 – 3.25 1.25 - 1.40 2.40 – 3.25 1.10 - 1.20 1.10 - 1.20 1.10 - 1.20 1.00 - 1.15 1.20 – 1.35 1.75 – 2.15 1.40 – 1.70 1.65 – 2.15 1.05 - 1.20 1.10 - 1.15 2.50 – 3.50 1.20 – 1.40 2.00 – 2.75 1.45 – 1.80 1.50 – 1.85 1.25 – 1.60

1.10 1.10 1.07 1.05 1.15 1.06 1.06 1.07 1.05 1.05 1.05 1.05 1.10 – 1.25 1.10 – 1.25 1.10 – 1.25 1.20 1.15 – 1.25 1.10 1.25 – 1.40 1.10 1.05 1.05 1.05 – 1.10 1.05 – 1.10 1.05 – 1.10 1.15 – 1.30 1.10 – 1.20 1.10 – 1.25 1.15 – 1.40 1.05 – 1.20 1.20 – 1.40 1.05 – 1.15 1.05 – 1.15 1.05 – 1.15 0.95 – 1.05 1.00 – 1.10 1.25 – 1.40 1.20 – 1.40 1.15 – 1.35 1.05 – 1.15 1.10 – 1.15 1.20 – 1.50 1.10 – 1.25 1.20 – 1.35 1.20 – 1.40 1.10 – 1.40 1.15 – 1.35

Portugal Saudi Arabia Singapore South Africa South Korea Spain Sri Lanka Sweden Switzerland Taiwan Thailand Turkey UAE United Kingdom

United States

Venezuela Vietnam

Birmingham Cambridge Edinburgh Liverpool London Manchester Oxford Atlanta Boston, MA Chicago, IL Kalamazoo, MI Houston, TX Hartford, CT Los Angeles, CA New Brunswick, NJ New York City, NY Philadelphia, PA Phoenix, AZ San Juan, Puerto Rico Raleigh / RTP, NC St Louis, MO Washington D C Benchmarked Value

0.93 1.00 0.98 0.98 0.96 0.98 0.97 1.12 1.10 0.94 0.94 0.95 0.99 1.07 1.07 1.08 1.07 1.11 1.09 1.07 0.93 1.08 1.06 0.94 0.91 1.08 1.14 1.06

1.25 – 1.55 1.80 – 2.50 1.40 – 1.90 1.35 – 1.70 1.20 – 1.35 1.10 – 1.35 1.90 – 3.00 1.15 –1.35 1.10 – 1.25 1.35 – 1.65 1.50 – 2.10 1.30 – 2.20 1.75 – 2.30 1.15 –1.20 1.15 –1.20 1.15 – 1.20 1.15 –1.20 1.15 – 1.20 1.15 – 1.20 1.15 –1.20 1.00** 1.00** 1.00** 0.95** 0.90 – 1.00 1.00** 1.00** 1.00**

1.10 – 1.25 1.20 – 1.35 1.10 – 1.25 1.10 – 1.25 1.05 – 1.20 1.10 – 1.25 1.20 – 1.40 1.10 – 1.25 1.10 – 1.25 1.10 – 1.20 1.20 – 1.45 1.20 – 1.50 1.20 – 1.45 1.05 – 1.15 1.05 – 1.15 1.05 – 1.15 1.05 – 1.15 1.05 – 1.15 1.05 – 1.15 1.05 – 1.15 1.00 1.00 1.00 1.00 0.90 – 1.00 1.00 1.00 1.00

1.20 1.07 0.92 0.94

1.00 1.00 1.00 1.15 – 1.25

0.94 0.95 1.00

1.10** 1.00** 0.95** See below 1.85 0.95** 1.00** 1.00

0.96 0.90

1.40 - 2.00 1.65 – 2.25

1.20 – 1.40 1.25 – 1.40

1.00 1.00 1.00

** Above Washington D.C. using a hybrid of merit shop labor (a combination of union and non-union labor) Puerto Rico Productivity V’s US Construction Norms The following is based on 6 # projects ranging in value from $5 - $55 million built in the lat ten years:

9

Trade / Skill Site / Civil work / U G utilities Masonry / external walls / internal partitions Structural steel Architectural finishes Floors / Walls / Ceilings / Painting / Special finishes Major Equipment Setting Piping (process & utility) HVAC (AHU’ s / Ductwork / balancing) Instrumentation / Electrical / BMS Insulation Engineering / Design work / CAD operations

Puerto Rico Range 1.45 – 2.15 (1.75) 1.50 – 2.20 (1.80) 1.50 – 2.25 (1.80) 1.45 – 2.25 (1.85)

USA Norm

1.55 – 2.30 (1.85) 1.90 – 2.60 (2.15) 1.45 – 2.15 (1.85) 1.65 – 2.35 (1.90) 1.55 – 2.25 (1.85) 1.15 – 1.25

1.00

1.00 1.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00

Field labor for new work will average 1.75 – 1.95 for all trades, revamp or alteration work could be 20% - 50% more. The all-in selling rate for a skilled worker is $36 - $38 per hour. The all-in selling rate for an un-skilled worker is $30 - $32 per hour

10

USA Productivity Factors (versus Gulf Coast): The normal approach of comparing “process / refinery / manufacturing” construction productivity is to compare various locations around the USA to a known basis or benchmark of 1.00 or 100 for Texas Gulf Coast (open shop labor working from say Mobile, AL in the north and south to say Corpus Christi, TX, - because there is so much historical cost data that has been collected over the last 20 – 30 years, the term Gulf Coast productivity is well known and understood term in the engineering / construction industry): State Alabama Alaska Arizona (Phoenix / Tucson) Arizona Arkansas California (LA / Long Beach / SF / SD / SJ) California Colorado (Denver) Colorado Connecticut Delaware Florida (Jacksonville / Miami / Orlando / St P ) Florida Georgia (Atlanta) Georgia Hawaii Idaho Illinois (Chicago) Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland (Baltimore) Maryland Massachusetts (Boston) Massachusetts Michigan (Detroit) Michigan Minnesota (Minneapolis – St Paul) Minnesota Mississippi Missouri (St Louis) Missouri

Open Shop / Non-Union 1.00 1.10 – 1.15 1.00 1.00 1.00 1.10

Union 1.10 - 1.15 1.25 – 1.35 1.10 - 1.15 1.10 1.15 1.20 – 1.30

1.05 1.00 - 1.10 1.00 1.15 1.10 1.00 – 1.10

1.10 - 1.20 1.10 - 1.15 1.05 - 1.10 1.20 - 1.30 1.20 1.15 - 1.20

1.00 1.00 - 1.10 1.00 1.10 - 1.15 1.05 1.00 - 1.15 1.05 1.05 1.05 1.05 1.05 1.00 1.05 - 1.15 1.05 – 1.10 1.00 – 1.05 1.10 - 1.15 1.00 – 1.10 1.05 - 1.10 1.05 1.05 - 1.10

1.10 1.10 - 1.20 1.10 1.30 1.25 1.20 – 1.30 1.10 - 1.15 1.10 - 1.15 1.10 - 1.15 1.10 - 1.15 1.10 – 1.15 1.10 – 1.15 1.10 - 1.25 1.10 - 1.25 1.10 – 1.15 1.20 – 1.30 1.10 – 1.15 1.20 - 1.30 1.10 - 1.20 1.10 - 1.20

1.05 0.90 - 1.00 1.05 – 1.10 1.00 – 1.05

1.10 - 1.15 1.10 - 1.15 1.10 – 1.20 1.05 – 1.15

11

Montana Nebraska Nevada (LV / Reno) Nevada New Hampshire New Jersey (Newark / Northern) New Jersey New Mexico New York City New York North Carolina North Dakota Ohio (Cleveland) Ohio Oklahoma Oregon Pennsylvania (Philadelphia / Pittsburgh) Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas (Dallas / Houston) Texas (Gulf Coast) - Base Case this includes Gulfport, Baton Rouge, New Iberia, Lake Charles, Beaumont, Port Arthur, Baytown, Texas City and Victoria: (Note: in certain cases i.e. large projects with a lot of repeat / similar work activities: productivity could be 0.90 – 1.00 say an average of 0.95) Utah Vermont Virginia (Washington D.C.) Virginia Washington West Virginia Wisconsin Wyoming

1.05 - 1.10 1.05 1.05 1.00 – 1.05 1.05 - 1.10 1.15

1.10 - 1.20 1.10 - 1.15 1.15 1.05 – 1.10 1.10 - 1.20 1.20 - 1.30

1.10 1.05 1.10 - 1.15 1.05 - 1.10 1.05 1.05 1.05 – 1.10 1.05 1.05 1.05 1.10 - 1.15

1.10 - 1.20 1.15 1.30 – 1.40 1.10 - 1.20 1.15 1.15 1.15 – 1.20 1.10 - 1.15 1.15 1.15 1.20 – 1.30

1.05 - 1.10 1.60 – 1.90 1.05 0.90 - 1.00 1.05 1.00 - 1.05 1.05 - 1.10 1.00

1.10 - 1.20 1.50 – 2.00 1.15 1.05 - 1.10 1.15 1.10 - 1.15 1.10 - 1.20 1.10 – 1.15 (typically all work is completed on open shop basis)

1.05 1.05 1.10 - 1.15 1.05 1.05 1.00 - 1.05 1.05 1.05

1.10 - 1.15 1.15 1.20 - 1.30 1.15 1.15 1.00 - 1.15 1.15 1.15

12

Detailed Design / Engineering / Architectural and CM Fees (D.D.E.A & CM) The tables below are representative D.D.E.A and CM percentage fees by project size, for professional services, these fees include Architectural, Civil, Structural, Building Services, Process, Mechanical, Instrumentation (I/C) and Electrical services, together with drafting / CAD and H.O. usual reports, the percentages indicated include EPC / Construction Management services. D.D.E.A and CM fees may possibly fluctuate from those indicated depending on the following notes 1 –10 listed below. These percentages exclude Front End Studies, Owner Engineering, Owner Project Management / Owner Construction Management services. Home Office Procurement of sophisticated major equipment i.e. the Major Equipment list, Owner provided equipment, Home Office Project Control activities (this could range from 0.25% – 1.00% for a full blown project control effort during the EPC effort). The CM percentages include site purchasing and site cost control / planning.

General Notes / Considerations: when selecting the 1. Type and size of project (complex project would trend towards higher percentage values). 2. Local or Federal Government contracts (Contract Terms and Conditions) would trend towards mid to higher percentage values. 3. Repeat work could tend to optimize percentage values indicated below 4. Location: (Domestic or Foreign) - distance from various Home Office(s) could have an impact on the selected percentages indicated for items such as travel cost and associated expenses. 5. New or revamp work – revamp work could be a more expensive undertaking. 6. Degree of technical design complexity and sophistication of required design deliverables (drawings and specifications). 7. Fast Track construction effort (over design of structural elements together with overtime payments to the design team). 8. Owner Specifications and procedures (complex design deliverables) or Industry standards using CSI (Masterspec type boilerplate). 9. Current market conditions, plenty of work or lack of work, percentages tend to rise when the economy is doing well. 10. A new client together with the “new learning curve” could tend to increase the values indicated below.

D.D.E.A. & CM Services General Facilities / Construction Categories & Refinery / Chemical Plant

Total Installed Cost (TIC) $5 - $150 million + Percentage of TIC Range

(1) LOW TECH FACILITIES Aircraft Hangars, Manufacturing Facilities (Not Hi-tech Factories), Hypermarket, Parking Garages, Strip Shopping malls, Warehouses / Shipping Logistics Center / Mini Warehouse. (Big Box type facilities) for applications less than $5 million percentages could be 10% - 30% more: For Revamp applications: add 20% - 50% to selected value. CONSTRUCTION MGMT* on above facilities (2) MID TECH FACILITIES Auditorium, Bowling Alley, Motels, Schools, Shopping Mall, 2 – 4 story Townhouse

3.5% - 7%

2.5% - 5% 4.5% - 8.5%

13

Buildings) for applications less than $5 million percentages could be 10% - 30% more: Revamp applications: consider adding 20% 50% to selected value. CONSTRUCTION MGMT* on above facilities (3). MID / HI - TECH FACILITIES (Low End): Banks, College Laboratories, Computer Centers Hospitals, 3-5 Star Hotels, Libraries, High End Offices) for applications less than $5 million percentages could be 10% - 30% more: For Revamp applications: consider adding 20% - 50% to selected value. CONSTRUCTION MGMT* on above facilities (4) HI - TECH FACILITIES Research Center / Hi - tech manufacturing facilities, Clean Room Modules, Pharmaceutical, Manufacturing (Class 1,000 - ISO # 6, 10,000 - ISO # 7 & 100,000 - ISO # 8) Chip Manufacturing facility, Oncology R&D Facility) for applications less than $5 million percentages could be 10% - 30% more: API Facilities Animal Testing / Vivarium Computer Chip Manufacturing Facility ISO # 4 and similar. Nanoscale R& D Facility Oral Solid Dosage (OSD) Toxicology R&D Facility University – Medical R & D facility Revamp applications: consider adding 20% 50% to selected value. Validation Services: CONSTRUCTION MGMT* on above facilities (5) REFINERY / CHEMICAL FACILITY (I.S.B.L.) MANUFACTURING PLANT (or 400 – 1,200 M.H.’ s for new and 500 – 1,750 for retrofit per M. E. item see following chart for additional data points) for applications less than $5 million percentages could be 10% - 30% more: Auto production facility Tire Manufacturing facility Bakery Brewery Dairy Cement Plant Toner facility Paper production Power Station 100 – 250 Mw (Coal) Ditto (Gas) Ditto (Nuclear) Ditto (Wind) Pipelines (onshore) Pipelines (offshore)

3.5% - 5.5% 4.5% - 10.5%

3.5% - 7.0% 6.5% - 15.5%

8.5% – 16% 8% – 16.5% 8.5% - 18% 8% - 17.5% 7.5% - 14.5% 8% - 16% 7.5% - 15% 1% - 6% 4.5% - 8.5% 7.5% - 11.5%

6.5% - 12.5% 6.5% - 12% 6.5% - 11% 6.5% - 11% 6.5% - 10.5% 5.5% - 10% 6.5% - 11.5% 7% - 12.5% 7% - 11% 7% - 10.5% 8% - 13.5% 4.5% - 7.5% 2.5% - 6% 4% - 8%

14

Water treatment facility Off-sites / OSBL / Utilities Offshore production Facility / Single Point mooring System Revamp applications: consider adding 20% 50% to selected value. CONSTRUCTION MGMT* on above facilities. Infrastructure Projects Airport runway and terminal Railway (passenger & freight) Electrical transmission system Bridge (rail or vehicle) Major Road (excludes bridges) Telecommunications tower 150’ high Jetty / Wharf 500’ – 1,000’ with rail, loading cranes and oil, water and electrical supplies / services. Revamp applications: consider adding 20% 50% to selected value. CONSTRUCTION MGMT* on above facilities.

5.5% - 8.5% 3.5% - 7.5% 9.5% - 17.5%

4.5% - 8% 8% - 14% 4.5% - 8% 7% - 13% 5% - 12% 3.5% - 7% 6% - 12% 8% - 13%

4.5% - 7.5%

Note: These fees / percentage markup’s are, of course, subject to negotiation, these fees have an accuracy of +/-20% and are dependent on client’s required engineering deliverables. (Some clients want minimal drawings and specifications, some clients require a significant amount of engineering / design work together with 30%, 60% and 90% design reviews and specifications). * Construction Management includes site staff, site staff employee expenses and a fee, trailers and site accommodation are included in Division 1 / Preliminaries. Typically CM firms are charging 2%-5% fee on the total cost of the construction effort (funds that pass through there books). EPCM firms working in the oil / gas and power sectors may be able to charge 7% - 12% as a profit / fee due to the current high workload in this sector. Procurement costs, the activities related to the buy out / purchasing of all project materials, major equipment typically falls in the range of 0.50% –1% of the TIC cost Engineering support, i.e. home office and field support during construction, vendor drawing approvals and Request for Information Q.A. / Q.C. submittals / shop drawings etc; typically is 1.25% - 1.75% of the TIC cost. # Of M.E. items New Facility 10 - 50 50 - 100 150 - 250 Retrofit / Revamp 10 - 50 50 - 100 150 - 250

A” “ Detailed Design M.H.’ s per M.E item (excludes PM / PC / Procurement 400 – 1,200 400 – 900 350 – 750 500 – 1,750 500 – 1,500 400 – 1,250

PM / PC / Procurement M.H.’ s per M.E. item 15 - 25% of 15 - 25% of 15 - 25% of 15 - 25% of 15 - 25% of 15 - 25% of

“A” “A” “A” “A” “A” “A”

Union Labor Costs: The charge / bill out rates is in the right hand column “A”, these rates have been calibrated to Washington D.C. for other locations use the city location factors previously indicated.

15

Note these values should be calibrated with the previous location factors to determine the charge out rate for each specific location. Typical uplift 60 – 95% (used 85% - “A”). • • • • • • • •

Total Fringe Benefits (Vacation, holidays, sick pay, and employer paid FICA / Unemployment rates, BRI) is average 15 - 30% of base wage. Supervision is average 5 - 10% of base wage. Workers Compensation Insurance is average 15 - 20% of base wage. Overhead and Home Office Support 15 – 20%. Profit is average 10 - 15% of base wage. Excludes small tools, typically 2 – 6% of total all in rate. Excludes construction equipment / fueling and maintenance. Excludes general conditions / Division 1 / Preliminaries (trailers and scaffold etc,) / Excludes consumables (gases, rags and grease). TRADE

Bricklayer Carpenter Electrician Laborer, General Operating Engineer, General Painter, General Plumber / Pipe fitter Roofer Sheet Metal Worker, General Structural Iron Worker Average Rate

BASE WAGE 40.14 39.17 46.46 28.88 40.65 35.36 46.32 35.06 45.80 43.75

“A” ALL-IN RATE 74.27 72.37 85.94 53.42 75.22 65.42 85.68 64.86 84.74 80.93 74.29

Open Shop / Non - Union Costs: The charge / bill out rates is in the right hand column “A”, these rates have been calibrated to Washington D.C. for other locations use the city location factors previously indicated. Typical uplift 60 – 95% (used 85% - “A”). • • • • • • • •

Total Fringe Benefits (Vacation, holidays, sick pay, and employer paid FICA / Unemployment rates, BRI) is average 15 - 30% of base wage. Supervision is average 5 - 10% of base wage. Workers Compensation Insurance is average 15 - 20% of base wage. Overhead and Home Office Support 15 – 20%. Profit is average 10 - 15% of base wage. Excludes small tools, typically 2 – 6% of total all in rate. Excludes construction equipment and fueling / maintenance. Excludes general conditions / Division 1 / Preliminaries (trailers and scaffold etc,) / Excludes consumables (gases, rags and grease). TRADE

Bricklayer Carpenter

BASE WAGE 30.88 32.48

16

“A” ALL IN RATE 57.12 60.08

Electrician Laborer, General Operating Engineer, General Painter, General Plumber / Pipe fitter Roofer Sheet Metal Worker, General Structural Iron Worker Average Rate

37.64 20.34 30.94 25.22 37.05 27.45 31.28 32.22

69.60 37.70 57.24 46.57 68.54 50.75 57.88 59.60 56.51

State Sales Tax / GST Sales tax on materials is indicated below. Typically labor is not taxed. Some businesses may be able to obtain sales tax / exemption forms (certificate) that allow them to claim the sales tax back from the specific state. Additionally, local authority / townships / counties may levy additional taxes such as business and operating taxes, city payroll tax, etc.

State Alabama. Alaska. Arizona. Arkansas. California. Colorado Connecticut Delaware District of Columbia. Florida. Georgia. Hawaii. Idaho. Illinois. Indiana. Iowa. Kansas. Kentucky. Louisiana. Maine. Maryland. Massachusetts. Michigan. Minnesota. Mississippi. Missouri. Montana.

Tax (%) 4 0 5.6 6 7.25 2.9 6 0 5.75 6 4 4 6 6.25 6 5 5.3 6 4 5 5 5 6 6.5 7 4.225 0

State Nebraska. Nevada. New Hampshire. New Jersey. New Mexico. New York. North Carolina. North Dakota. Ohio. Oklahoma. Oregon. Pennsylvania. Rhode Island. South Carolina. South Dakota. Tennessee. Texas. Utah. Vermont. Virginia. Washington. West Virginia. Wisconsin. Wyoming. Canada Provinces impose QST/GST/PST & HST tax Average Check with each Province

17

Tax (%) 5 6.50 0 6 5 4 4.5 5 5.5 4.5 0 6 7 6 4 7 6.25 4.65 6 5 6.5 6 5 4

Alberta British Columbia Manitoba New Brunswick Newfoundland Northwest Territories Nova Scotia Nunavut Ontario PEI Quebec Saskatchewan Yukon

5 12 12 13 13 5 13 5 13 15.5 12.5 10 5

INFLATION / COST (COMPASS) INDEXES Base year is 1980 The following historical database is a measure of inflation / escalation that has occurred in the process industry since 1980. Year

Material / Labor Index Increase 5.3% 4.6% 4.6% 4.2% 2.4% 1.8% 1.8% 2.7% 2.8% 1.8% 0.7% 1.8% 3.4% 3.2% 3.1% 2.2% 1.8% 1.4% 1.5% 1.2% 1.8% 1.8% 1.9% 1.0% 1.8% 3.6% 3.7%

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

18

2007 2008 2009 (TBD)

3.9% 3.8% 2.0% - 4.5%

(A) Bricks Common / Facing Brick Unit Prices. Unit Prices are per thousand for fourteen U.S.A. cities, delivered to site. City

Waste

Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Discount Premium for large for small quantity quantity 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15% 5 – 7.5% 10 – 15%

Common Brick

Facing Brick

320.90 419.00 396.60 345.10 363.00 338.00 396.80 379.00 405.00 406.80 469.00 408.00 303.40 397.50

466.20 593.20 611.20 452.70 464.50 469.80 605.80 498.52 492.80 618.80 645.20 613.00 443.50 586.00

(B) Carbon Steel Pipe 1” diameter Schedule 40: Unit Prices are per thousand feet for fourteen USA cities, delivered to site.

City Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

Waste

Premium for small quantity 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15%

Pipe 1,000 foot Delivered to site

2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Discount for large quantity 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5% 7 – 12.5%

2.5%

7 – 12.5%

10 – 15%

3,035

19

3,037 3,092 3,025 3,053 2,975 3,161 3,027 3,104 3,235 3,089 3,296 3,042 3,056

(C) Reinforcing (Rebar) Prices: Unit prices indicated below are for 10 tons delivered, cut and

bent from a rebar fabricator in the following fourteen USA cities, spec is A 36 steel (Cost per pound $0.40). Waste

City Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

Premium for small quantity 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15% 10 – 15%

10 Tons Fabricated, d/d to site

2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Discount for large quantity 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10% 7 – 10%

2.0%

7 – 10%

10 – 15%

9,225

9,129 10,370 9,206 8,790 9,642 9,400 9,201 9,126 9,522 9,290 9,454 9,217 9,979

(D) Ready Mix Concrete Unit Price Ready Mix Concrete Price per CY / 10 – 14 CY load: Listed below are unit prices for ready mix concrete in the following fourteen USA cities. The prices are for 3,000 PSI and 5,000 PSI grades of concrete (1:2:4) mix 1 part - cement, 2 parts - sand and 4 parts gravel. Add a premium of 5 – 15% for distances greater than 25 miles from batch plant. City

Waste

Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Discount for large quantity 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10%

Premium for small quantity 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25%

3,000 PSI

5,000 PSI

96 100 92 104 86 90 95 95 121 97 118 93 107 95

105 110 101 113 95 99 103 103 134 106 129 102 117 105

(E) Lightweight Concrete Block (8” x 8” x 16”): Unit Prices are per hundred for fourteen USA cities, delivered to site, typically delivered in 100 / 1,000 standard units.

20

City

Waste

Discount for large quantity

Premium For small Quantity

Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10%

15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20%

Concrete Block (8” x 8” x 16”): 100 units Delivered to site 145 155 135 138 146 157 135 150 160 134 200 132 159

2.5%

5 – 10%

15 – 20%

133

(F) R.C. 24” Diameter Pipe: Unit Prices are per hundred foot for fourteen USA cities, delivered to site, typically delivered in 20 foot standard lengths. City

Waste

Discount for large quantity 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10%

Premium For small Quantity 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20%

Pipe 100 foot Delivered to site 2,105 2,230 2,072 2,116 2,044 2,196 2,092 2,180 2,275 2,126 2,226 2,096 2,124

Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

5 – 10%

15 – 20%

2,098

(G) Copper Pipe Type “L” Unit Prices. Unit Prices are per thousand feet for fourteen U.S.A. cities, delivered to site.

21

City

Waste

Discount for large quantity

Premium For small Quantity 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20%

0.50”Dia Pipe per 1,000 foot Delivered to site 1,685 1,803 1,737 1,772 1,727 1,846 1,722 1,813 1,929 1,785 1,947 1,724 1,750

2”Dia Pipe per 1,000 foot Delivered to site 9,596 10,072 9,618 9,737 9,818 10,215 9,830 9,978 10,250 9,895 10,227 9,850 9,870

Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10%

2.0%

5 – 10%

15 – 20%

1,778

9,860

(H) Galvanized Steel (Rigid) Conduit 2” diameter: Unit Prices are per thousand feet for fourteen USA cities, delivered to site. City

Waste

Discount for large quantity 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15% 5 – 15%

Premium For small Quantity 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20% 15 – 20%

Conduit 1,000 foot Delivered to site 5,745 6,028 5,775 5,858 5,647 6,055 5,789 5,886 6,047 5,875 6,020 5,747 5,845

Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

5 – 15%

15 – 20%

5,840

(I) Stainless Steel 1” diameter: Unit Prices are per thousand feet for fourteen U.S.A. cities, delivered to site.

22

City

Waste

Discount for large quantity

Premium For small Quantity

Atlanta Boston Burlington NJ Chicago Dallas Los Angeles Medford NJ Minneapolis New York City Philadelphia San Francisco Trenton NJ Washington, D.C. Wilmington DE

2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10% 5 – 10%

15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25% 15 – 25%

304 SS 0.065 wall Annealed Per 1,000 foot Delivered to site 3,635 3,858 3,624 3,673 3,475 3,912 3,627 3,780 4,038 3,612 4,150 3,648 3,687

2.0%

5 – 10%

15 – 25%

3,628

316L SS 0.065 wall No polish per 1,000 foot Delivered to site 5,185 5,522 5,252 5,282 4,765 5,621 5,257 5,359 5,702 5,318 5,523 5,257 5,314 5,235

Man Hour / Productivity Modifiers for High Rise Buildings / Facilities Multiply standard man-hours by the following modifiers to compensate for double handling of materials and equipment / loss of productivity / travel time etc. Number of Floors in Building Ground Floor 01 02 03 04 05 10

1.00 1.02 1.04 1.06 1.08 1.10 1.14

General Requirements / General Conditions / Division 1 / Preliminaries General Conditions will typically range from 4% on large projects to 15% on small / complicated projects, a reasonable value for General Conditions is 4% - 6%, General Condition’s items include: • • • • •

Scaffolding / Temp Fencing / Barriers / Enclosures / Project Signs Hard Standings / Temp Storage Areas / Temp Parking Areas Superintendents / Field Engineers / Clerks / Secretaries / Timekeepers Field Offices / Trailers / Office Supplies / Telephones / Radio’s / Office Furniture / Computers Site Layout / Batter Boards / Testing / QA Activities

23

• • • •

•

Clean Up / Dumpsters / Final Clean Up / Road Sweeping Permits / As Built Drawings / Postage / Express Mail Temp Utilities Video’s / Photographs Bonds / Watchmen

24

SECTION C – 1 MAJOR EQUIPMENT (M.E.) BUDGET PRICING & MAN-HOUR INSTALLATION VALUES The following tables are a listing of current budgetary pricing – mid 2008 and man-hour installation values related to major equipment items that would many times be encountered on a typical “process / chemical / manufacturing” type facility. The man-hour units contain direct labor hours for receiving, storing, allocating, assembling, installing, aligning and making ready for any required inspection / testing and (system) handover. The major equipment (M.E.) item is assumed to be off-loaded a distance not exceeding (n/e) 0.50 miles – 0.80 km from ultimate operating location (typically 500 feet – 1,000 feet or 250 meters): All millwright installation work documented below is to be executed by skilled journeymen (millwright’s) familiar with the type of M.E. being installed, the man-hour units are merit shop - a hybrid of union and non-union workers. The budgetary dollar values should be considered +/- 15% accurate, when considering future contingency values. The Labor Installation Units include the items listed below, note – some of these work items could be considered Preliminaries / Division 1 items: • • • • •

Hardcore (hard standings) / Temporary staging areas. Offloading and temporary storage / Placing on temporary timber sleepers. Pick up at lay down area / Temporary weather protection: Clean up of any packing materials / Come along’s / chains & pullies: Millwright’s work and other related trades in aligning, leveling and assembling various components together, including any required welding and fitting / marrying pieces together.

The Labor Installation Units exclude the items listed below: • • • • • • • •

Labor and material for foundations (concrete – rebar, formwork and excavation) and structural steel / brackets / core drilling and grouting of M.E. Associated service / utility piping systems and final hook up. Electrical cable, conduit and hookups, M.E. supports / brackets / instrumentation. Expenses associated with the use of construction rental or owned equipment. Initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals. M.E. passivation and cleaning (pickling): M.E. identification / Stenciling & subsequent tagging: H D bolts, sleeves and jumpers / final balancing and adjusting finished systems.

1

• • •

Vendor start up assistance, witness testing and operational tests: Commissioning / Validation activities / ND testing. Scaffolding requirements / Barricades and safety measures.

Productivity Adjustments: Adjust indicated man-hour units by the following calibration values or use judgment to determine the appropriate calibration factor: Low Productivity (Difficult / cramped working conditionsscattered areas of work)

Average Productivity

1.25

1.00

Good Productivity (Decent access to the work area, a reasonable amount of repeat work / good working conditions) 0.75

The following list presents the approximate cost of diverse major equipment commonly used in refineries / chemical plants / process facilities and manufacturing buildings. The list indicates F.O.B. equipment prices and man-hours. Freight costs of 3 - 5% should be added to the equipment values for North American manufactured items shipped to North American locations and the same percentages for European manufactured equipment shipped to European locations, note these percentages need to be adjusted upwards for any ocean or air freight. The following is a listing of various material adjustment values (specific to major equipment) calibrated against carbon steel A 53, A 36, A 515 and A 285C. The following is a listing of various material adjustment values (specific to piping) calibrated against carbon steel A 53, A 36, A 515 and A 285C. These adjustments could be utilized to determine various OOM budget variables between differing material specifications (a word of warning this is reasonable for the material content however the installation / welding activities should separately evaluated, welding of stainless steel and other exotic materials may require 10-35% more man hours than the welding / installation of carbon steel piping systems).This material uplift is dependent upon size of order, for large orders use the lower uplift. Material PVC (Sch 80) CPVC (Sch 8) Base Case - Carbon Steel Material cost / LF for 2” Diameter A 53 (refer to above table for material cost) C.S. Glass Lined C.S. Kynar Lined C.S. Polypropylene Lined (Sch 40)

2

Material uplift (Low) 0.50 0.60

Material uplift (High) 0.60 0.70

1.00

1.00

2.40 2.00 1.80

2.70 2.30 2.00

C.S. TFE C.S. Rubber Lined C.S. Saran Lined (Sch 40) C.S. PVDF Lined (Sch 40) Aluminum S. S. 304 S. S. 316 S.S. 304 L (Sch 10) S.S. 316 L (Sch 40) FRP Glass (Solid) Inconel 625 Titanium (Sch 10) Zirconium (Sch 10) Alloy 20 (Sch 10) Monel (Sch 10) Nickle (Sch 10) Hastelloy G Hastelloy B

2.70 1.15 1.80 2.40 1.25 1.45 1.50 1.20 1.40 1.40 1.75 4.00 4.20 5.50 2.40 3.10 3.10 5.80 5.50

3.30 1.35 2.00 2.60 1.50 1.65 1.75 1.40 1.60 1.60 2.00 4.50 4.60 6.50 2.70 3.40 3.40 6.20 6.00

General Conversion Values - Imperial to Metric Units Unit 25 US Gallons 1 Inch 1 square foot 1 Meter 1 Meter 1 Square yard 1 Cubic foot 1 Foot 1 Yard 1 Mile – 1,760 yards 1 Cubic Yard 10.76 Square Feet: 1 Gallon (Imp.) 1 Acre 1 M3 = 10 HP °F to °C 1000 kg - 1 Tonne

Conversion Factor 94.63 L / 20.81 Imperial Gallons 2.54 (cm) 0.09 (M2) 3.28 Lineal Feet (LF) 39.37 inches 0.84 (M2) 0.0283 m3 0.30 (M) 0.91 (M) 1.61 kilometer (km) 0.765 (M3) 1 (M2) 4.55 liters (L) 0.40 hectare (HA) 1.31 Cubic Yards: 7.646 KW Deduct 32, then multiply by 5, then divide by 9 0.984 (long) ton

3

1 (A) GENERAL DEMOLITION The following is man-hour data specific to the demolition of crude oil - still heater facility. Process Equipment H 2 Heater H 3 Heater Stack H 1 Heater Stack H 2A Heater H 3A Heater Stack Total M.H.’ s per Ton

Size / Feet

Weight / Tons 375 T 375 T 30 T 25 T 25 T 50 T 50 T 15 T 945T

40 x 40 x 25 40 x 40 x 25 160 50 x 40 x 20 135 45 x 15 x 10 45 x 12 x 7 90

Days

M.H.’s

15 15 6 5 3 7 4 2

720 720 350 145 115 265 155 60 2,530 2.67

A 100-ton crane was utilized for the total duration. Typical range of man-hours to demolish a Refinery / Process Facility 1.50 – 3.50 man-hours / Ton Consider scrap value when estimating this type demolition scope. Consider the removal of any piping, E&I, insulation and jackets. (B) Refurbished Equipment: Use the following percentage of new major equipment to determine a budget value. Consider any draining of existing fluids / materials, blinds, temporary supports, removal of any piping, E/I systems and insulation, there could be additional costs associated with this effort in that the major equipment would most probably be shipped to a refurbishing vendor. Excludes cranes, foundations, grouting, brackets, supports, new piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Type of Major Equipment Rotating Equipment

Percentage of new major equipment (Labor and Materials) 5% - 30%

Pressure vessels

5% - 20%

Atmospheric storage tanks / vessels

5% - 15%

4

Comments Consider any new seals, bushings, packing’s, impellers, and new motors etc. Consider any new nozzles, man-ways, baffles and internals; consider any modifications or removals of agitators. Consider any new nozzles, man-ways, baffles and any internals, ladders and walkways.

(C) Relocate Major Equipment: Use the following percentages to determine a budget value: Consider any draining of existing fluids / materials, blinds, temporary supports, removal of any piping, E/I systems and insulation. Excludes cranes, new foundations, grouting, brackets, supports, new piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation manhours. Type of Major Equipment

Rotating Equipment

(A) Transport Costs within continental USA (B) Remove and pack components (A) 3% - 5%

(B) 5% - 25% of new major equipment cost

Pressure vessels

(A) 3% - 5%

(B) 5% - 20% of new major equipment cost

Atmospheric storage tanks / vessels

(A) 3% - 5%

(B) 5% - 15% of new major equipment cost

Comments

Consider any out of the ordinary transportation trestles. Give consideration to any local piping, E/I items that could be utilized. Take into account if any new seals, bushings, impellers, and new motors at new location that may be required due to the relocation effort. Consider any out of the ordinary transportation trestles. Give consideration to any local piping, E/I items that could be utilized. Consider any new nozzles, man-ways, baffles and internals; consider any modifications or removals of agitators at new location. Consider any out of the ordinary transportation trestles. Give consideration to any local piping, E/I items that could be utilized. Consider any new nozzles, man-ways, baffles and any internals, ladders and walkways at new location.

Note: It is worthwhile mentioning that in certain circumstances it may be prudent to consider / utilize used / 2nd hand major equipment – savings of as much as 50% - 70% of the cost of new major equipment could be realized together with savings in time by ordering and delivering this equipment item to the site.

(D) General / Sundry Manufacturing Related Equipment

5

Absorption Water Chiller Size / Tons 50 100 250 500

Installation Man-hours 80 96 110 124

$ Equipment Cost 96,500 153,600 215,750 351,000

Cost per Ton 1,930 1,536 863 702

Excludes crane costs and crane operator

Agglomeration / Briquette / Compactor Stainless Steel 40 Ton Compactor 10” diameter 25 HP motor with screw feeders and associated equipment $28.875 - $47,250

• • •

•

Add 3 % for freight. Add 5% - 10% for labor / construction equipment to install equipment. Multiply Production Equipment by a factor of 2 .00 – 3.50, for a completely installed system, this allows for a foundation (excavation, stone, backfill), equipment rigging and setting, piping, electrical service, instrumentation, insulation and painting. Add 2.5% -7.5% for integration costs.

Double Cone Blender / Drum: Specification

Cost per CF - Low

Cost per CF - High

S.S. 27 CF / 1 CY with 15 HP / 7.5 HP -2 speed drive

$50.56

$73.87

Excludes installation (allow 3 - 7% of purchase cost as a budget to install unit).

Hot Water Heater (Electric) Gallons 50 100 250 500 1,000

Installation Man-hours 2.5 3.5 6.0 10.0 18.0

$ Equipment Cost 2,750 4,500 10,800 18,300 34,030

6

Cost per Gallon 55 45 43 37 34

Tunnel Freezer (Ammonia) 10,000 pounds per hour Specification

Cost per LF - Low

Cost per M - High

$5,040

$7,613

$28 per pound production rate

$44 per pound production rate

65’ long with compressor, evaporator, 2 # screw conveyors, to -30 degrees C

Excludes installation (allow 3 - 5% of purchase cost as a budget to install unit.

Spiral Freezer S. S48” wide. 480 v, with 20 HP (NEMA 4) drive, Cost per LF - Low

Cost per LF - High

Cost per M Low

Cost per M - High

$118.13

$173.25

$388.50

$568.05

Excludes installation (allow 3 - 5% of purchase cost as a budget to install unit).

Plate Filter (Recessed) 15 HP vacuum pump and 7.5 HP hot water pump and plate condenser. Cost per CF - Low

Cost per CF - High

$1,969

$2,625

Excludes installation (allow 4 - 7% of purchase cost as a budget to install unit).

Walk - In Cooler with 2 # evaporators to – 20 C 15’ x 25’ X 10’ high, with 6 # glass doors: Cost per SF - Low

Cost per SF - High

Cost per M2 Low

Cost per M2 High

$47

$68

$508

$735

Excludes installation (allow 4 - 7% of purchase cost as a budget to install unit).

7

Freezer – Bally Box, complete with 7.5 HP condenser and control; panel: Cost per CF - Low

Cost per CF - High

$1.21

$2.36

Excludes installation (allow 4 - 7% of purchase cost as a budget to install unit).

Dust Collector / Cartridge Filter Unit Surface Area of Filter in SF / M2

Equipment Cost

Cost per SF

Installation Man-Hours

500 / 46.50 1,000 / 92.90 2,500 / 232.35 5,000 / 464.70

$7,245 $10,080 $15,488 $20,738

$14.58 $10.08 $6.20 $4.15

20 24 32 46

Excludes installation (allow 5 - 8% of purchase cost as a budget to install unit).

Crusher – (Impact) Production Rate in Tons per Day

HP

2,000 4,000 7,500

25/30 40 50

Equipment Approximate No of Cost Cost in $’s Weight in pieces per pounds Ton 194,565 249,270 322,980

40,000 60,000 80,000

6/8 6/8 6/8

Installatio n Manhours’

$98 $62 $43

Screw Conveyor Diameter

HP

$ Cost per LF

$ Cost per M

4” 6” 9” 12”

5.0 7.5 10 12.5

44.63 56.18 67.73 108.36

146.37 184.28 222.18 355.43

5 – 7% of Conveyor purchase cost should provide an adequate installation budget for setting conveyor, includes drives, frames and final alignment.

8

240 340 440

Bin Activator (CS): Diameter

HP

$ Material Cost

Installation Man-Hours

24” 30” 36” 42” 48”

1.5 2.5 2.5 / 5.0 2.5 / 5.0 7.5

5,628 6,720 7,623 8,484 9,534

10 12 14 18 28

Multiply by 1.70 for Stainless Steel 304

Air Dryer – Desiccant: Capacity $ Approximate SFCM Equipment Weight in Cost in $ pounds 1.0 2.5 5.0 10.0 25.0

1,838 2,363 2,867 3,234 4,977

30 50 70 140 250

Installation Man-Hours

Number of items

Installation Man-Hours per SFCM

4 6 8 12 16

4/6 4/6 4/6 4/6 4/6

4.00 2.40 1.60 1.20 0.64

Horizontal Screw Press 12” diameter, with 15 HP variable speed drive: Cost per LF Low

Cost per LF High

Cost per M Low

Cost per M High

$3,255

$5,250

$10,679

$17,220

5 – 7% of Screw purchase cost should provide an adequate installation budget for setting screw press, includes drives, frames and final alignment.

Communintors: (Solids / Liquids): Inlet / Gallons $ Outlet per Day Equipment Diameter Cost $ 4” 6” 8”

70,000 120,000 180,000

3,948 4,977 6,363

9

HP

# of items

Installation Man-Hours

Cost per Gallon $

0.5 1.0 1.5

4/6 4/6 4/6

16 20 24

57 42 36

Wind Turbines Commercial scale wind turbines 1.5 - 2.3 MW cost $$1.6 - $2.3 million to install Cost to power aver home wind = $40 - $60K rule of thumb turbines under 100 KW cost $4,000 - $6,000 per Kilowatt (2)

ACTIVATOR / BIN - HOPPER DISCHARGER / BINS

(A)

BIN CONED BOTTOM C.S. Cu Yards / M3

Material

M.H.’ s

25 / 19 50 / 38 100 / 76 250 / 190

$4,175 $8,751 $17,578 $44,751

6 10 16 44

• •

Cost per Cu Yard Cost per M3

$167 - $179 $219 - $235

(B) BIN DISCHARGER C.S. Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / Stenciling & subsequent tagging.

(C)

H.P.

$ / H.P.

0.5 – 2.5 2.5 – 5.0 5.0 – 10.0

$5,497 $2,919 $2,126

BIN / STORAGE HOPPER VERTICAL C.S. A- 515

Cubic Yards / M3

Cost

Installation Man-hours

$ Cost per Cubic Yard

20 / 15 100 / 76 250 / 190

$9,991 $21,139 $32,062

8 18 26

475 201 122

• •

Cost per Cubic Yard $128 – $499 (excluding labor installation) Cost per M3 $169 - $666 ditto

10

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) Add Installation Man-hours (3)

AERATORS (A) • • • •

AERATOR SURFACE

10 HP Material Cost $14,606 - hookup materials $1,500 - 28 hours to install 25 HP Material Cost $30,214 - hookup materials $2,500 - 38 hours to install 50 HP Material Cost $43,229 - hookup materials $3,500 - 44 hours to install Cost per HP $864 - $1,461

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (B)

AIR ENTRAINMENT RING AND AERATOR TOGETHER WITH TOP ENTRY PROPELLER TYPE AGITATOR: H.P.

$ / H.P.

5.0 – 10.0 10.0 – 25.0 25.0 – 50.0 50.0 – 100.0

$1,300 $809 $638 $605

(4) AGITATORS / BLENDER / MIXERS / EMULSIFIER (A)

AGITATOR:

Installation man-hours include unloading, temporary warehousing, site transportation 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / Stenciling & subsequent tagging.

11

AGITATORS

120

100

Man Hours

80 Top Entry 60

Side Entry Bottom Entry

40

20

0 2.5

5

10

15

20

25

50

Horsepower

(B) Material / Equipment Budget Cost: $1,874 - $2,258 / per H.P. $4,331 - $5,287 / per H.P.

Propeller Turbine

(C) Agitator / Mixer- A285 - 1,800 RPM HP

$ Cost of Equipment

Installation Man-hours

$ Cost per H.P. less installation manhours

10 50 100 150

2,020 9,883 19,055 28,010

38 52 62 82

202 198 191 187

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) Add installation man-hours (D) Agitator 316 L – 1,800 RPM • •

2.5 – 5 HP = $6,022 - $6,689 per HP 10 – 15 HP = $4,494 - $5,366 per HP

12

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (E)

AGITATOR / MIXER / BLENDER – ROTATING TYPE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / Stenciling & subsequent tagging.

VOLUME CUBIC FEET / CUBIC YARD / M3 # OF MAJOR PIECES 5 / 0.20 / 0.15 (4 / 6) 10 / 0.40 / 0.30 (4 / 6) 25 / 1.00 / 0.76 (6 / 8) 50 / 2.00 / 1.52 (6 / 8) 75 / 2.75 / 2.10 (6 / 8) 100 / 3.70 / 2.80 (6 / 8) 250 / 8.00 / 6.10 (6 / 8) 270 / 10.00 / 7.60 (8 / 10)

(F)

H.P.

INSTALLATION MAN-HOURS ROTATING MIXER

M.H. per HP

M.H. per M3

32 36 48 60 72 88 120 140

12.8 7.2 6.4 6.0 4.8 3.52 3.43 2.8

213 120 63 39 34 31 19.6 18.4

2.5 5.0 7.5 10.0 15.0 25.0 35.0 50.0

AGITATOR: Top Mounted Entry C.S. Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. HP

Material

INSTALLATION MAN-HOURS

M.H. per HP

5 10 15 25

$7,545 $10,642 $13,241 $16,866

22 28 36 42

4.4 2.8 2.4 1.7

13

(G)

(H)

(5)

AGITATOR Top Mounted Entry S.S. 304. Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, setting holding down bolts, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. HP

$ Material

INSTALLATION MAN-HOURS

M.H. per HP

5 10 15 25

$9,135 $12,836 $15,681 $20,426

22 30 39 48

4.4 3.0 2.6 1.9

AGITATOR Top Mounted Entry Monel: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. HP

Material

INSTALLATION MAN-HOURS

M.H. per HP

5 10 15 25

$10,887 $15,572 $19,121 $26,181

24 35 39 51

4.8 3.5 2.6 2.0

AIR CONDITIONING PER TON BUDGET PRICING Includes labor / material (ductwork & controls) Ref

TYPE OF AIR CONDITIONING

$ COST PER TON

A

Accumulation / multi-zone heating & cooling Cooling unit(s) rooftop mounted Air cool steam or hot water coil (packaged) Rooftop mounted heating & cooling multi-zone Ditto with electric baseboard heating Ditto with hot water baseboard heating 2 Pipe FCU

$1,985

B C D E F G

14

$2,195 $3,329 $3,943 $4,673 $6,489 $3,500 - $4,500

H I J K L

M N O P

4 Pipe FCU Refrigeration compressor heating & cooling Ditto absorption / combination unit Chilled water (Refrigeration Absorption) Air Conditioning (Low – High range per ton) Air Conditioning (HVAC) cost per Admin offices Industrial Bldg / Factory Hospital Research Lab (non classified)

$3,750 - $5,000 $5,602 $6,358 $7,550 $1,985 - $7,550 $ / SF $12.70 - $22.50 $7.67 - $ 11.30 $11.87 - $22.30 $22.26 - $49.60

(Q) Air Conditioning Cost Comparison: 2 Pipe Fan Coil Unit system V's 4 Pipe Fan Coil Unit system Cost Model 244,500 SF Mixed use facility Offices / Apartments / Hotel on 7 floors System

SF

M2

2 Pipe FCU system 244,500 4 Pipe FCU system 244,500 (R)

SF 22,723 M2 SF 22,723 M2

$ SF $ M2 Cost Cost $25.15 $270.90 $26.83 $288.75

Axial Fan / Vane (with adjustable pitch) • • • •

5,000 CFM 2.5 HP $4,247 - 6 hours to install 10,000 CFM 5 HP $12,149 - 8 hours to install 25,000 CFM 10 HP $21,378 – 14 hours to install 50,000 CFM 15 – 20 HP $26,644 - 28 hours to install

1,000 CFM $519 - $853

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (S) • • • • • •

Air Conditioner (D-X) Roof Mounted Unit (excludes hook materials) 5 Ton $6,720 – 8 hours to install 10 Ton $13,619 – 11 hours to install 15 Ton $17,955 – 14 hours to install 20 Ton $21,142 – 16 hours to install 25 Ton $27,494 – 22 hours to install 50 Ton $50,962 – 30 hours to install

Cost per Ton $1,019 - $1,344 Man hours per ton 0.60 – 1.60 15

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (T)

• • • •

•

Fan Horizontal Coil Unit with Hydronic Heating – cooling (2-pipe system) 250 CFM Material $888 - 4 hours to install $150 hookup material 500 CFM Material $1,344 - 5 hours to install $150 hookup material 1,000 CFM Material $2,179 - 6 hours to install $150 hookup material 2,500 CFM Material $7,298 - 8 hours to install $250 hookup material 5,000 CFM Material $9,119 -12 hours to install $250 hookup material Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(U) • • • •

•

Fan Horizontal Coil Unit with Hydronic Heating – cooling (4-pipe system) 250 CFM Material $1,066 - 4 hours to install $150 hookup material 500 CFM Material $1,481 - 5 hours to install $150 hookup material 1,000 CFM Material $2,284 - 6 hours to install $150 hookup material 2,500 CFM Material $5,366 - 8 hours to install $250 hookup material 5,000 CFM Material $9,471 -12 hours to install $250 hookup material Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(V) • • • •

•

Ditto Vertical – heating / cooling (2 pipe systems) 250 CFM Material $1,066 - 4 hours to install $150 hookup material 500 CFM Material $1,376 - 5 hours to install $150 hookup material 1,000 CFM Material $2,389 - 6 hours to install $150 hookup material 2,500 CFM Material $5,649 - 8 hours to install $250 hookup material 5,000 CFM Material $10,038 - 8 hours to install $250 hookup material Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(W) • • • •

Ditto Vertical – heating / cooling (4 pipe systems) 250 CFM Material $1,118 - 4 hours to install $150 hookup material 500 CFM Material $1,633 - 5 hours to install $150 hookup material 1,000 CFM Material $2,536 - 6 hours to install $150 hookup material 2,500 CFM Material $5,880 - 8 hours to install $250 hookup material

16

•

5,000 CFM Material $10,505 -12 hours to install $250 hookup material Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(X) • • • • • •

Air Conditioner (D-X) Roof Mounted Unit (excludes hook materials) 5 Ton $6,662 – 8 hours to install 10 Ton $13,797 – 11 hours to install 15 Ton $17,729 – 14 hours to install 20 Ton $21,441 – 16 hours to install 25 Ton $27,468 – 22 hours to install 50 Ton $55,010 – 30 hours to install • • •

(Y)

Cost per Ton $1,099 - $1,334 Man hours per ton 0.60 – 1.60 Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) Air Coolers, C. S. A 515

S.F.

H.P.

Shipping weight

$ Equipment Cost

Installation man-hours

500 1,000 2,000 2,500

2.5 7.50 15 15/20

5.50 ton 9 ton 15 ton 18

40,754 54,540 79,301 87,409

154 182 210 254

$ Cost per H.P. (excl installation) 82 55 40 35

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (Z) • • • • • • • • •

Miscellaneous Costs: Self contained Thu wall units cooling only, 8,000 BTU’s 120 volt $310 plus 2.5 hours to install. Thru wall units 0.5 – 2.5 Ton with electric heat $2,982 - $3,218 per Ton Roof top gas fired multi-zone 1 – 50 Ton $3,560 - $3,959 per Ton FCU 2 pipe boiler / chiller 10 – 250 Ton $3,864 - $4,389 per Ton FCU 4 pipe boiler / chiller 10 – 250 Ton $3,995 - $4,578 per Ton FCU Floor or ceiling mounted units 1 ton $499 2.5 ton $1,118 5 ton $2,016 Multi-zone Rooftop H/C including dampers and controls10 – 100 ton $1,580 - $1,801 per ton

17

• • • • • •

Reheat Coils (Electrical) 5 kw material = $1,265 installation 3.5 hours Ditto 10 kw $1,612 14 hours Ditto 15 kw $1,775 16 hours Ditto 20 kw $2,268 18 hours Ditto 25 kw $2,405 18 hours Ditto 50 kw $3,476 22 hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(6)

AIR DRYERS: (A)

(B)

AIR DRYERS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. CAPACITY / TONS

MAN HOURS

M.H. per HP

1 2.5 5 10 25

22 34 42 64 125

22 13.6 8.4 6.4 5.0

Air Dryer, C S A 285C CFM

$ Equipment Cost

Installation man-hours

Cost per CFM

5,000 15,000 45,000 60,000

195,239 584,624 1,573,026 1,963,416

428 1,580 1,700 2,150

37.20 37.10 33.30 31.20

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) Add installation man-hours

18

(7)

AIR HANDLER UNITS: (A)

CFM

Weight in Pounds / KG

M.H.’ s

M.H. per pound

75,000 100,000

10,500 – 4,775 14,500 – 6,590

138 164

0.013 0.011

(B)

(8)

CONCEPTUAL ESTIMATING for budgeting Air handling type equipment. (1)

Air Handlers $2.84 - $6.62 per CFM (Equipment Only)

(2)

Fans & Blowers

$2.21 - $4.57 per CFM. Ditto

(3)

Exhaust Fans

$1.63 - $3.47 per CFM. Ditto

(4)

Housekeeping vacuum system. $27 - $40 CFM. Ditto

(5)

Dust Collectors

(6)

Cyclone Dust Collector 14 – 16 man-hours / per ton to install

(7)

Bag Filter / Electrostatic unit 26 – 31 / man-hours per ton to install

$27 - $41 CFM. Ditto

BALL MILLS (A)

(9)

AIR HANDLERS: includes coils, dampers, controls, etc.

BALL MILL: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours exclude installation of packing’s, internals, and brackets and any special testing / inspection if required. Excludes cranes, setting holding down bolts, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

Tons / Hour

Equipment Cost

Installation M.H.’ s

M.H.’ s per Ton

10 25 50 100

$30,581 $74,174 $148,468 $273,797

42 94 174 314

4.20 3.76 3.48 3.14

BAGHOUSE 19

(A)

(10)

BAGHOUSE: C.S. Installation man-hours include unloading, transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours exclude installation of trays, packings, internals brackets and any special testing / inspection if required. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

Capacity / CFM

Material

# of shipping pieces

ManHours

$ Cost per CFM

1,000 2,500 5,000 10,000 20,000 25,000 50,000

$33,890 $47,649 $62,976 $80,163 $94,366 $107,403 $130,778

8/12 8/12 8/12 8/12 8/12 8/12 8/12

20 32 42 56 120 140 156

$33.89 $19.06 $12.60 $8.02 $4.72 $4.30 $2.62

BLOWERS / FANS (A)

BLOWERS (SKID MOUNTED): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes thermostat, holding brackets and fuel pump: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. H.P. 10 15 20

(B)

BELT DRIVE (M. H. ’s) 1.6 1.0 0.8

DIRECT DRIVE (M. H. ’s) 1.75 1.40 0.85

FANS & BLOWERS CENTRIFUGAL (PACKAGED-SKID MOUNTED / INDUSTRIAL APPLICATION)

Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning and calibrating equipment and system check out. Includes thermostat, holding brackets and fuel pump: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, fixing / adjustment of inlet vane 20

controls systems, belts, electrical motors, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / Stenciling & subsequent tagging.

Volume Cubic Feet 1,000’s / M3

Approximate Weight Pounds / KG

Number of major Pieces

Installation Man hours

M.H.’ s per CFM

1,500 / 42 2,000 / 56 3,000 / 85 5,000 /141 10,000 / 283 15,000 / 424 25,000 / 707 50,000 / 1,414 75,000 / 2,120 100,000 / 2,827 150,000 / 4,240 250,000 / 7,068

100 - 45 150 - 68 200 - 90 250 - 115 400 - 180 600 - 275 900 - 410 1,500 - 680 2,100 - 955 3,000 - 1,365 4,000 - 1,820 6,000 - 2,730

3/5 3/5 3/5 3/5 3/5 3/5 3/5 3/5 5 / 10 5 / 10 5 / 10 5 / 10

4 6 8 10 12 14 16 24 36 48 72 96

2.66 3.00 2.66 2.00 1.20 0.93 0.64 0.48 0.48 0.48 0.48 0.38

(C)

BLOWERS & FANS: Centrifugal: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes thermostat, holding brackets and fuel pump: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Typically is shipped in 6 / 9 major pieces, refer to productivity adjustments on page 2 to calibrate installation man-hours. Volume C.F.M.

Approximate Weight LBS / KG

Man hours

1,000 5,000 10,000 25,000 50,000 75,000 100,000 150,000

70 - 32 185 - 85 315 - 145 560 - 255 880 - 400 1,210 - 550 2,200 - 1,000 3,000 - 1,365

4 8 12 24 44 72 96 138

21

(D)

(11)

FANS CENTRIFUGAL VENTURI TYPE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes thermostat, holding brackets and fuel pump: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

VOLUME C.F. PER MINUTE

WEIGHT IN POUNDS / KG

MAN-HOURS

M.H. per HP

100 (5 HP)

150 - 68 (3/5 pieces)

14

2.8

250 (7.5 HP)

350 - 160 (ditto)

28

3.7

500 (10/15 HP)

570 - 260 (ditto)

46

3.7

750 (15/25 HP)

780 - 355 (ditto)

62

3.1

1,000 (25/35 HP)

1,000 - 455 (ditto)

74

2.4

2,500 (35/50 HP)

1,500 - 680 (ditto)

120

2.8

5,000 (50/75 HP)

2,200 – 1,000 (ditto)

170

2.7

10,000 (75/100 HP)

3,000 – 1,365 (ditto)

220

2.5

BLENDERS

(A)

Blender O.O.M. / Equipment Cost 25 CF 50 CF

(12)

$113,400 - $155,610 $212,520 - $284,550

BOILERS: (A)

BOILER: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Refer to item above for items included in installation man-hours. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and

22

cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. 0.085 – 0.115 M.H.’S per pound of steam produced. (B)

BOILER: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Refer to item above for items included in installation man-hours. Excludes cranes, foundations, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Weight in Tons

Man-Hours per Ton

1 – 10 10 – 20 20 – 40

(C)

(D)

5.22 3.84 2.46

BOILERS ELECTRIC - HYDRONIC TYPE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Refer to item above for items included in installation man-hours. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Production MBT’ s per Hour / KW # of pieces

Installation Man hours

Man hours Per MBT’ s per Hour / KW

10 / (5/10) 25 / 6 ditto 50 / 12 ditto 75 / 24 ditto 100 / 24 ditto 125 / 36 ditto 150 / 48 ditto

4.5 6 6 10 12 16 19

0.45 0.24 0.12 0.13 0.12 0.12 0.112

BOILER Gas Fired Cast Iron (Commercial): 23

Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation cost includes boiler, controls, 100 / 150 foot of 1”/ 2” local C.S. piping, fittings and valves, insulation, vent chimney and electrical hook-up. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. MBH / NET IBR

# OF PIECES

WEIGHT POUNDS

MANHOURS

M.H. per Pound

150 250 500 1,200 2,000

5/8 Ditto Ditto Ditto Ditto

1,350 1,700 2,750 6,350 10,570

18 24 32 48 72

.013 .014 .012 .008 .007

(E) BOILER FLUE / VENT / CHIMNEY / CS (A 36 / A285): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Typical heights of boiler chimney’s range from 30’ to 120’, for height’s over 120’ add 15% to man hour units indicated below, man hour units include installing steel guying / wire and guying connections. Excludes cranes, refractory work / fire brickwork, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: * Includes gussets and stiffeners Flue Wall Weight Man-hours M.H. per Diameter Thickness Per 10 L.F. Per 10 Foot Pound Inches Inches Pounds Section 12

.20

380

3.00

.007

18

.25

580

4.50

.007

24

.25

630

5.00

.007

30

.25

830

5.50

36

.25

940

8.00

42

.25

1,140

9.50

48

.37

1,590

12.50

60*

.40

1,990

16.50

72*

.40

2,880

19.50

24

.006 .008 .008 .008 .008 .007

(F)

GUYED STACKS TONS

M.H.’S PER TON

1 – 10 10 – 20 20 – 40 40 – 60

(G)

12.4 9.3 8.1 6.3

BOILERS GAS FIRED: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Cast iron gas fired boilers consist of automatic gas valve, fail safe type pilot light (igniters), manual shut-off valve / safety valve, drain valve, low water cut-off device, gauge / site glass, steam pressure gauge and other minor miscellaneous trim. Boilers are complete package units including an automatic temperature control system, electrically they are factory wired for hook-up / connection to 240 volt power supply. Excludes cranes, refractory work, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. Thousand BTU’ s Per hour / weight # of pieces

Installation Man-hours

M.H.’ s per Pound

500 (4,650 lb) 5/9 600 (5,600 lb) 5/9 750 (6,600 / 7,000 lb) 10+ 1,000 (7,700 / 9,500 lb) 10+ 1,500 (10,000 lb) 10+ 2,000 (13,500 + lb) 10+

54 66 84 100 114 148

.012 .012 .012 .012 .011 .011

25

(H-1.2 & 3)

CAST IRON BOILER SECTIONAL UNITS: CAST IRON BOILERS

HEAVY OIL FIRED 120

100

80

60

40

20

0 50

100

250

H or se po we r

CAST IRON BOILERS

GAS OR OIL FIRED 140

120

100

80

60

40

20

0 50

100 H o r se p owe r

26

250

CAST IRON BOILERS LIGHT OIL FIRED 120

100

Man Hours

80

60

40

20

0 50

100

250

Horsepow er

(I)

Re boiler / Kettle: (150 PSIG, Tube Material C. S. A 515, Shell Material C. S. A 285C, Design Temperature 600 Deg F):

S. F. / M2 Transfer Area

Shipping $ Cost of weigh in Equipment tons

500 / 46.46 1,000 / 93 2,500 / 232 5,000 / 465

1.75 4 8.5 15

Installation man-hours

$ Cost per S.F.

18 37 45 54

34 33 20.31 16.00

16,842 32,687 50,768 80,010

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) Add installation man-hours (J)

Package Boiler, C S A 285C, and 250 PSIG

Pounds per hour

Shipping weigh in tons

$ Cost of Equipment

Installation man-hours

$ Cost per pound.

5,000 10,000

8.5 18

58,601 110,145

164 314

11.72 11.01

27

100,000 500,000

57 145

370,262 1,470,672

788 1,150

3.70 2.94

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) Add installation man-hours

(13)

Box Heater (A)

Box Type Heater Cabin CS / 300 PSI: Cost per 1 Million BTU’s $29,647 - $35,322

(14)

BREAKERS (IMPACT) (A). BREAKERS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Typically is shipped to site in 3 / 5 major pieces, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging.

(B)

H.P.

APPROX WEIGHT/ LBS - KG

# OF PIECES

M.H.’ s

M.H’ s per HP

25 50 75 100

3,400 – 1,545 7,100 – 3,225 8,900 – 4,045 12,300 – 5,590

3/5 3/5 3/5 3/5

21 31 42 54

0.84 0.62 0.56 0.54

Breaker / Impact Hammer – Crusher 250 / 300 HP A – 515 CS • • •

Cost per pound $4.12 - $5.57 Cost per Kg $9.08 - $12.23 Cost per HP $950 - $1,226

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

28

(15)

CENTRIFUGE: (A)

CENTRIFUGE / EXTRACTORS CENTRIFUGAL (CONSTANT) TYPE (c / w controls): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes thermostat, holding brackets and fuel pump: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

(B)

Volume G.P.M. (Approx weight in pounds) # of pieces

Installation Man hours

M.H.’ s per Pound

5 (2,450) ditto

98

.04

10 (3,570) ditto

142

.04

25 (7,700) ditto

302

50 (8,650) ditto

342

75 (10,000) ditto

462

100 (11,500+) ditto

628

250 (30,000+) ditto

1,200

.04 .04 .04 .04 .04

Centrifugal Air Compressors- with motor • • •

5,000 CFM 10,000 CFM 25,000 CFM

$ 331,065 $ 549,570 $ 1,003,485

420 M.H.’ s 710 M.H.’ s 1,334 M.H.’ s

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (C)

Centrifugal Pump, C S API 100 Deg F, 1,800 Motor • •

100 GPM 3,000 GPM

$ 5,145 $ 63,683

18 M.H.’ s 32 M.H.’ s

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

29

If pumps and motor are skid mounted multiply above units by 0.85. Cost range is $21 - $51 per GPM (D)

Centrifugal Compressor C.S. – 100 PSI • • • • • •

25 HP $51,492 – $ 2,060 / HP - 38 hours to install 50 HP $55,508 – $ 1,110 / HP - 44 hours to install 100 HP $61,572 – $ 616 / HP - 54 hours to install 250 HP $91,361 – $ 365 / HP - 74 hours to install 500 HP $142,238 – $ 284 / HP - 106 hours to install 1,000 HP $248,640 – $ 249 / HP - 184 hours to install

Cost range is $249 - $2,060 per HP Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (16)

CHILLER: (A)

ABSORPTION WATER CHILLERS: Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final location n/e 0.50 miles – 0.80 km, installation on base, adjusting drive alignment, calibrating and system check out. Man-hours exclude cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation manhours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging.

Ratings Ton 25 50 100 250 (B)

$ Equipment Cost $17,650 $33,700 $39,850 $93,550

Installation Man-hours 30 38 46 108

CHILLERS, PACKAGED WATER HOTWATER OR STEAM TYPE: Includes installation of motor and drives, controls: Excludes crane rental, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on page 2 to calibrate installation man-hours. TONS 100

$ COST / EQUIPT. 116,802

30

Man-Hours per Ton 3.2

150 200 250 500 1,000 2,500

152,276 171,607 186,375 274,103 434,018 595,035

2.6 2.33 2.14 1.45 0.95 0.55

Cost range $238 - $1,168 per ton (C) CHLLER – Water Cooled 200 Ton with condensers and compressor R-22 Refrigeration: 460v with PLC $150 - $210 per ton: • • •

•

Add 3 % for freight. Add 5% - 10% for labor / construction equipment to install equipment. Multiply Production Equipment by a factor of 2 .00 – 3.50, for a completely installed system, this allows for a foundation (excavation, stone, backfill), equipment rigging and setting, piping, electrical service, instrumentation, insulation and painting. Add 2.5% -7.5% for integration costs.

(18) CHLORINATION INJECTION EQUIPMENT / WATER TREATMENT (A) CHLORINATION TREATMENT EQUIPMENT: Installation manhours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Description Hockey puck dispenser 25,000 gallon unit Wall mounted up to 1,000 – 5,000 lbs/day Floor mounted up to 1,000 – 5,000lbs/day Chemical injection unit (calcium) 500 pound per day

(19)

CLARIFIER: 31

Man-Hours 3-6 12 10 4 - 12

(A)

(20)

ROTATING SCREEN TYPE 1,800 RPM: Includes installation of motor and drives, controls: Excludes crane rental, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

Diameter

H.P

Number of Pieces

Pounds

$ Equipment Cost

M.H.’ s to install

12” 18” 24” 30”

2.5 2.5 5 5

4/6 4/6 4/6 4/6

250 550 1,050 1,450

23,058 30,896 36,398 44,935

11 17 27 35

COILS: (A)

COILS: Steam / Water Remarks: man-hours include chiller condenser, compressor, motor, heat exchanger and essential controls. Man-hours exclude crane rental, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

Area SF

Weights pounds

# of items

Man-Hours

M.H. per pound

2

100

4/8

4

0.04

4

225

4/8

6

0.03

6

370

6/10

12

0.03

8

480

6 10

15

0.03

10

570

6/10

18

0.03

12

660

6/10

21

0.03

32

(21) COMMINUTORS (A)

COMMINUTORS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

H.P.

G.P.M

Weight (pounds - kg)

Man-hours

M.H. per HP

2.5 5 10

5,000 7,000 15,500

1,150 - 525 2,550 – 1,160 4,900 – 2,230

23 37 52

9.2 7.4 5.2

(22)

COMPRESSOR:

(A)

COMPRESSOR MULTI STAGE CENTRIFUGAL / RECIPROCATING: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls: Excludes lifting equipment / cranes etc., foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation manhours. H.P. 500 1,000

(B)

CENTRIFUGAL 0.33 / M.H.’S PER H.P. 0.30 / M.H.’S PER H.P.

RECIPROCATING 0.37 / M.H.’S PER H.P. 0.35 / M.H.’S PER H.P.

Reciprocating Compressor, 1 stage, 100 PSIG

CFM

H.P.

Shipping weight in Tons

$ Equipment Cost

Installation man-hours

$ Cost per CFM

100 250 500 1,000

20 / 25 25 / 40 75 / 100 150 / 200

1 2.25 3.50 5.25

26,350 45,029 87,649 123,921

32 38 66 88

263 180 175 124

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

33

(23)

COMPUTER ROOM: (A)

(24)

COMPUTER ROOM HYDRONIC HEAT AIR COOLED CONDENSER: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes valves / regulators, filters and controls: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. TONS

EQUIPMENT COST in $’s

INSTALLATION M.H.’ s

M.H per Ton

2.5 5 7.5 10 15 25 50

13,771 15,860 20,072 22,381 25,242 37,013 62,916

18.5 23.5 31 38 56 95 124

7.4 4.7 4.1 3.8 3.7 3.8 2.5

CONDENSORS / CENTRIFUGES: (A) AIR COOLED CONDENSERS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging.

Tonnage

# Of Pieces

Weights Pounds

Man-Hours

M.H. per Pound

5 10 20 25 50 75 100 150 250 500

3/5 3/5 3/5 3/5 3/5 7/9 7/9 10/12 15 20

175 280 440 500 1,500 2,000 2,700 3,700 6,000 10,800

6 6 7 8 12 16 18 27 44 72

1.20 0.60 0.35 0.32 0.24 0.21 0.18 0.17 0.16 0.14

34

(B)

CONDENSERS Shell and Tube: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

Tonnage

GPM

Number of pieces

Man Hours

M.H. per Ton

10 25 50 100 250 500 1,000

30 80 160 310 760 1,550 2,450

3/5 3/5 3/5 4/5 4/6 5/7 5/7

6.50 10 20 30 52 75 108

0.65 0.40 0.32 .0.30 0.21 0.15 0.11

(C) RECIPROCATING – AIR COOLED CONDENSING UNITS (CONDENSER – COMPRESSOR): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Tons

# Of Pieces

Pounds Weights

ManHours

M.H.’ s per Ton

25 50 100 250

3/5 3/5 3/6 4/7

1,760 3,430 6,560 16,050

28 54 81 191

1.12 1.08 0.82 0.77

(D) CONDENSERS (COALESCER): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation manhours. Tonnage

Number of Items

Weights Pounds

ManHours

M.H.’ s per Ton

5 10 15 25 50

4/6 4/6 4/6 4/6 4/6

370 530 800 1,500 2,000

6 8 8 10 12

1.2 0.8 0.53 0.4 0.24

35

75 100 150

(E)

6/8 6/8 7/9

2,500 3,000 4,350

14 16 23

0.19 0.16 0.15

SCREW ACTION- WATER COOLED CONDENSER COMPRESSOR UNIT: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

Tonnage

# of Pieces

100 250 500 1,000

3/5 3/5 4/6 4/6

Weight in Pounds 3,500 4,500 9,500 17,500

Man-Hours 28 48 82 144

(F) Barometric Condenser / Miscellaneous, C S H.E. GPM

$ Equipment Cost

Installation man-hours

Cost per GPM

500 1,000 2,500 5,000

9,190 17,117 33,388 49,882

24 32 38 62

18.38 17.18 13.36 9.98

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (G) Condenser (Evaporation) Rating Ton

$ Equipment Cost

Installation Man-hours

5 10 25 50 100

$4,300 $5,750 $11,400 $17,750 $31,400

20 24 32 36 40

36

(25)

CONTINUOUS SPRAY DRYER: (A)

(26)

CONTINUOUS SPRAY DRYER C.S. A 36 / A 285: Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final location, n/e 0.50 miles – 0.80 km distance, installation on base, adjusting drive, bearings, shaft alignment, calibrating and system check out. Man-hours exclude lifting equipment / cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. Evaporation Rate Per Hour in Pounds

Weight / Number of Pieces

Man-Hours

M.H. per Pound

1,000 2,500 5,000

11,000 - 5/8 27,000 - 6/8 55,500 - 7/10

388 594 706

0.39 0.24 0.14

CONVEYORS (A). CONVEYOR: RECIPROCATING / CONTINUOUS ACTION: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, frames, complete with idlers, conveyor frame, pulley, end supports, bolts, shims and cables. Erection man hours include installation of conveyor motors, head and bottom shaft, chain / belt, buckets and brackets such as head and bottom section, typical bracing piece’s, and filler piece’s are included in the following man hour units, including pulleys, springs, brake, bolts and return belt etc. Add additional man-hours for lubrication system. Excludes foundations, setting holding down bolts, grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Diameter inches 8 10 12 18 24 30

Man Hours per 100’ length Carbon Steel A36

Man Hours per 100’ length Stainless Steel 304 / 316

110 180 204 280 330 377

144 220 376 420 484 564

37

(B). BUCKET ELEVATOR – CONTINUOUS CARBON STEEL Bucket size 12” x 9” x 12” 70 / 100 tons per hour: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, frames, complete with idlers, conveyor frame, pulley, end supports, bolts, shims and cables. Erection man hours include installation of conveyor motors, head and bottom shaft, chain / belt, buckets and brackets such as head and bottom section, typical bracing piece’s, and filler piece’s are included in the following man hour units, including pulleys, springs, brake, bolts and return belt etc. Add additional man-hours for lubrication system. Excludes foundations, setting holding down bolts, grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Travel Length Feet

Total M. H. ’s

10 15 20 25 50 75 100 250 500 1,000

82 136 163 145 196 256 286 330 585 1,145

(C). BUCKET ELEVATOR – CONTINUOUS CARBON STEEL: Bucket size 12” x 12” x 18” 100 / 150 ton per hour: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, frames, complete with idlers, conveyor frame, pulley, end supports, bolts, shims and cables. Erection man hours include installation of conveyor motors, head and bottom shaft, chain / belt, buckets and brackets such as head and bottom section, typical bracing piece’s, and filler piece’s are included in the following man hour units, including pulleys, springs, brake, bolts and return belt etc. Add additional man-hours for lubrication system. Excludes foundations, setting holding down bolts, grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

38

Travel Length Feet 10 15 20 25 50 75 100 250 500 1,000

Total M. H.’ s 94 148 179 196 264 268 308 356 637 1,186

(D). CONVEYORS: BELT (INCLINED) Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, frames, complete with idlers, conveyor frame, pulley, end supports, bolts, shims and cables. Erection man hours include installation of conveyor motors, head and bottom shaft, chain / belt, buckets and brackets such as head and bottom section, typical bracing piece’s, and filler piece’s are included in the following man hour units, including pulleys, springs, brake, bolts and return belt etc. Add additional man-hours for lubrication system. Excludes foundations, setting holding down bolts, grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook up: WIDTH

M.H.’S / LF (BASED ON 100’ LENGTH)

12” 16” 20” 24” 30” 36”

(E)

2.10 2.45 2.75 3.10 3.35 3.45

ROLLER CONVEYOR 10” WIDE 12” WIDE 14” WIDE 18” WIDE

(F)

1.25 M.H.’S / LF 1.55 M.H.’S / LF 1.75 M.H.’S / LF 2.10 M.H.’S / LF

SCREW CONVEYOR 6” DIA 8” DIA 10” DIA 12” DIA

4.10 M.H.’S / LF 5.25 M.H.’S / LF 6.50 M.H.’S / LF 6.75 M.H.’S / LF

(G) Equipment cost only 39

Equipment cost only.

Cost per LF $

Cost per M $

1,339 1,738 1,822 1,948

4,392 5,701 5,976 6,389

6” diameter 8” diameter 12” diameter 16” diameter

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (H)

BUCKET ELEVATOR 6” X 4” 10” X 6” 12” X 9” 16” X 9”

(I)

3.30 M.H.’S / LF 4.75 M.H.’S / LF 5.25 M.H.’S / LF 6.25 M.H.’S / LF

CONVEYOR ELEVATOR (Material Cost only) – 2009 Cost Basis:

Length Feet / M

18”

24”

30”

36”

42”

50’ / 15.25 M 100’ / 30.50 M 250’ / 76.20 M 500’ / 152.40 M

$13,187 $22,898 $50,945 $98,085

$14,650 $27,168 $61,494 $109,000

$16,970 $31,115 $68,367 $124,270

$18,846 $34,938 $75,752 $137,149

$21,464 $36,483 $82,229 $150,068

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (J)

Belt Conveyor / open, 1,750 RPM, 320 FPM Ton per hour 60 110 260 340

Width in inches

Length in feet

18 24 36 42

20 50 100 150

$ Equipment cost

Installation man-hours

31,542 35,464 54,364 71,048

55 102 202 312

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

40

(27)

COOLER (ACID): (A) GRAPHITE TUBE H.E. INCL PUMP: Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final location, assume n/e 0.50 miles – 0.80 km distance, installation on base, adjusting drive, bearings, shaft alignment, calibrating and system check out. Man-hours exclude lifting equipment / cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

(28)

S.F. / M2

H.P.

Weight in Pounds

Number of Pieces

ManHours

M.H. per SF

10 / 0.93 25 / 2.32 50 / 4.65 100 / 9.30 250 / 23.23

0.50 1.50 2.50 5.0 15

225 790 1,070 1,370 2,750

4/6 4/6 4/6 7/9 7/9

21 51 77 98 235

2.10 2.04 1.54 0.98 0.94

COOLING TOWER: (A) COOLING TOWER, PACKAGE & KNOCKED DOWN. – Carbon Steel: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. WEIGHT IN TONS

PACKAGED M.H.’ s PER TON

K.D. M.H.’ s PER TON

1 – 10 10 – 20 20 – 30 30 – 40

4.5 4 3 2.5

21 15.5 12 10

(B) COOLING TOWERS, PACKAGED TYPE – Carbon Steel: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:

41

(29)

Tonnage

Weight Pounds

Number of Major Pieces

ManHours

M.H. per Ton

10 25 50 100 250 500 1,000 2,500

850 1,100 1,750 3,330 8,500 11,770 23,600 37,700

4/5 4/5 4/5 6/8 8/10 8/10 8/10 8/10

14 16 23 28 86 108 172 298

1.40 0.64 0.40 0.28 0.34 0.21 0.17 0.12

CRUSHERS: (A)

CRUSHER: Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final location, assume n/e 0.50 miles – 0.80 km distance, installation on base, adjusting drive, bearings, shaft alignment, calibrating and system check out. Manhours exclude lifting equipment / cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up.

Tons Per Hour

Number of Pieces

Weight / Pounds

M.H.’ s

100 150 250 500 1,000

7/12 7/12 7/12 7/12 10/12

5,000 6,000 7,000 12,500 17,500

26 36 48 88 124

(B)

Breaker / Impact Hammer – Crusher 250 / 300 HP A – 515 CS • • •

Cost per pound $4.31 - $5.62 Cost per Kg $9.45 - $12.29 Cost per HP $950 - $1,229

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (C)

Crusher (Jaw) C.S. A 285C H.P.

$ Cost

M.H.’ s

10 H P 50 H.P 100 H.P

$47,455 $222,857 $401,100

58 M.H.’ s 245 M.H.’ s 420 M.H.’ s

Cost range $4,011 - $4,746 per H.P. 42

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (D) Rotary Crusher, C S A 285C H.P.

Shipping weight of equipment

$ Equipment cost

Installation man-hours

Cost per H.P.

2 10 25 50

0.25 0.75 2.00 5.00

2,756 9,671 17,467 32,487

6.50 14 26 46

1,313 921 665 619

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (30)

CRYSTALIZER (A)

Crystallizer C.S. Forced Flow 25 Tons / Day 50 Tons / Day 100 Tons / Day 150 Ton / Day

$ 186,328 $ 252,362 $ 406,823 $ 609,473

164 Man-Hours 272 Man-Hours 378 Man-Hours 540 Man-Hours

Cost range $4,064 - $7,455 per ton Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(31)

DEARATOR: (A)

FEEDWATER - DEAERATOR PACKAGED UNIT complete with local controls: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls: Assume unit is mounted on a skid unit the hook-up piping and electrical between tank(s) and pump is included, typically trim is shipped loose: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. Boiler H.P. / KW

Number of Pieces

Weight Pounds

ManHours

M.H. per HP

25 / 18.64 50 / 37.29 100 / 74.57 250 / 186.43

4 4 5/6 7/8

350 450 1,000 1,500

12 16 24 51

0.48 0.32 0.24 0.20

43

500 / 372.85 1,000 / 746 2,500 / 1,864

(32)

7/8 10/12 10/12

2,500 5,000 9,600

85 124 195

0.17 0.12 0.08

DE MINERALIZERS (A) DE MINERALIZER / ION EXCHANGE UNIT: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

(33)

Flow Rate GPM

Approximate Weight Pounds

Number of pieces

ManHours

100 250 500 750 1,000 2,500 5,000 10,000

500 700 800 1,000 1,300 2,500 3,500 7,500

10/15 10/15 10/15 10/15 10/15 20+ 20+ 25+

8 12 16 20 24 42 48 72

DEMISTERS: (A)

DEMISTER PADS- TOWER INTERNALS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours exclude, internal packing, grog / chemicals / catalyst and any special testing / inspection if required. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: TOWER DIAMETER FEET

WEIGHT IN POUNDS

MANHOURS

M.H. per Pound

1.0

30 (4/6 # items)

14

0.46

1.5

40 ditto

18

0.45

3.0

72 ditto

24

0.33

4.0

90 ditto

28

0.31

44

(34)

5.0

150 ditto

32

0.21

6.0

180 ditto

40

0.22

7.0

240 ditto

48

0.20

8.0

340 ditto

56

0.17

9.0

450 ditto

64

0.14

10.0

600 + ditto

72

0.12

DIGESTER (FIBERGLASS): (A) DIGESTER Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up:

(35)

Diameter (Feet.)

Weight Pounds

Man- Hours

5 10 20 25

140 250 440 770

4 6 16 28

DOWTHERM UNIT: (A) DOWTHERM UNITS complete with local controls: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. Duty million BTU’ s Per Hour 5

Material C.S Tubes

ManHours

$234,856

175

45

Material S.S 304 Tubes $354,209

ManHours 198

$440,289

10

$911,480

25 50 75 100

(36)

$624,415

246

$1,436,510

352

$1,528,003 $2,146,082 $2,744,859

274

$2,368,987

565

$3,105,328

646

$3,892,677

785

390 604 724 842

DRYERS (A)

Rotary Dryer, C S A 285C S.F. / M2

$ Equipment Cost

Installation man-hours

$ Cost per S.F.

100 / 9.30 250 / 23.23 500 / 46.50 1,500 / 139.40

35,018 82,467 158,860 456,804

66 164 274 768

350 330 318 305

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (37)

(A) EJECTORS SINGLE STAGE (non condensing 150 PSIG) Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up Pounds of Air / Hour

Material

Man-Hours

M.H.’ s per pound of air

50 100 250 500 1,000

$1,806 $2,462 $4,111 $6,001 $8,925

4 5 8 12 19

0.08 0.05 0.032 0.024 0.019

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

46

(B)

Dust Collector Stainless Steel 400 SF / 37.20 M2 cloth area with 25 HP blower $17 - $25 / SF - $181 - $271 M2

• •

Add 3 % for freight. Add 5% - 10% for labor / construction equipment to install equipment. Multiply Production Equipment by a factor of 2 .00 – 3.50, for a completely installed system, this allows for a foundation (excavation, stone, backfill), equipment rigging and setting, piping, electrical service, instrumentation, insulation and painting. Add 2.5% -7.5% for integration costs.

•

•

(38) ELECTRIC FREIGHT ELEVATOR (A) ELECTRIC FREIGHT ELEVATOR 200 fpm / 4 stops Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. CAPACITY

Installation Man-Hours

1,000 2,500 5,000 10,000 20,000

(39)

140 194 274 307 475

Approx, $ Cost $35,018 $62,486 $80,798 $92,663 $111,741

ELECTROSTATIC PRECIPITATOR

(A) ELECTROSTATIC PRECIPITATOR C.S.: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, guides, brackets, frames, bolts and shims excludes setting holding down bolts, refer to productivity adjustments on page 2 to calibrate installation man-hours. Volume / Cu Feet / min

$ Material

Man-Hours

Man-Hours per 1K CFM

50,000 100,000 250,000

249,848 370,073 651,908

280 370 710

5.6 3.7 2.8

47

(40) (A) ELECTRONIC LOAD CELL / SCALES: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes pit foundations, formwork, grouting. Excludes cranes, setting holding down bolts, brackets, supports, piping, cable, conduit and electrical hook-up: Scale Loading weight in Tons

Footprint of Scale L x W in Feet

Approximate Total Weight Pounds

Man hours Including pit / Civil work

M.H. per Ton

5 10 25 50 100

10 x 8 / 96 SF 15 x 12 / 180 SF 40 x 12 / 480 SF 50 x 12 / 600 SF 70 x 12 / 840 SF

1,850 2,450 3,700 7,100 17,800

98 (civil=72) 122 (ditto 92) 208 (ditto122) 272 (ditto 162) 308 (ditto 192)

19.6 12.2 8.3 5.4 3.1

Pit is typically 5’-6’ deep with 4” thick concrete wall and 6” SOG with 4” diameter drain. (41)

EMERGENCY POWER SUPPLY: (A)

EMERGENCY POWER GENERATION: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Open type, skid mounted, 3 phase, radiator cooled, approx cost includes elect starter (battery) and factory assembled control system. Installation man-hours exclude any special testing / inspection if required. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation manhours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging.

KW / RATING

RPM / FREQUENCY

APPROX WEIGHT

M.H.’ s

COST

100 150 200

1800 / 60 1500 / 60 1500/ 60

3,500 # 4,400 # 8,000 #

80 88 128

$36,125 $54,206 $58,685

(B)

Conceptual Estimating for budgeting Generator Set / U.P.S. type equipment. UPS.

$1,050 - $1,775 per KW

48

Generator Set

(42)

$289 - $383 per KW

EVAPORATORS: (A) EVAPORATORS / CONDENSERS Long Tube Carbon Steel: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

(B)

Cooling / Heating Area S.F. / M2 (EDR)

Number of Major Pieces

ManHours

M.H. per SF

100 / 9.30 250 / 23.23 500 / 46.50 1,000 / 92.90 2,500 / 232.35 5,000 / 464.70 10,000 / 929.40

3/5 3/5 3/5 5/7 5/7 5/7 5/7

120 200 310 555 807 1,110 1,450

1.21 0.80 0.62 0.55 0.32 0.22 0.14

EVAPORATOR (VERTICLE TUBE): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up

S.F. / M2

$ EQUIPT COST

INSTALLATION M.H.’ s

$ Cost per S.F.

10 / 0.93 25 / 2.37 50 / 4.65 100 / 9.30

68,775 148,444 276,586 500,535

53 127 197 382

6,550 5,655 5,268 4,767

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

49

(43)

FLAKERS: (A) DRUM TYPE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. S.F. / M2

EQUIPT COST

INSTALLATION M.H.’ s

10 / 0.93 25 / 2.37 50 / 4.65

76,151 185,745 332,068

71 202 370

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(44)

FILTERS: (A) ROTARY / VACUUM / DISK: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. SF / M2

$ COST / SF

Man Hours / SF

50 / 4.65 100 / 9.30 250 / 23.23 500 / 46.50 1,000 / 92.95

1,517 887 509 357 226

2.25 1.33 0.85 0.635 0.37

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

50

(B)

(C)

DITTO / PAPER / MANUFACTURING APPLICATIONS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: SF / M2

$ COST / SF

Man Hours / SF

50 / 4.65 100 / 9.30 250 / 23.23 500 / 46.50

1,996 1,352 819 634

3.15 2.10 1.27 1.00

1,000 / 92.95

455

0.85

Filter – Horizontal scrolling with hydraulic tilting pot: Area in SF / M2

$ Cost per SF

10 / 0.93 25 / 2.37 50 / 4.65 100 / 9.30

5,832 5,493 3,527 2,102

To determine installation / equipment setting hours multiply tank cost by 6.5 % divide resulting value by $48 / hour, add crane usage:

(D)

Rotary Drum Filter Equipment cost only

$8,001 / SF

(E) Pressure Leaf Filter Vertical C.S. S.F. / M2

$ Equipment cost

Installation man-hours

$ Cost per S.F.

50 / 4.65 100 / 9.30 250 / 23.23 500 / 46.50

12,844 24,211 59,306 116,945

14 27 68 124

257 242 237 234

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

51

(45)

FORK LIFTS (A)

Fork Lift Truck (excludes Battery charging station) 2,500 Pound 5,000 Pound 10,000 Pound

(46)

$37,847 $57,488 $65,562

FUEL TANKS: (A)

Fuel Oil Tank Installation: On finished floor installation, man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours exclude installation of trays, packing’s, internals brackets, and any special testing / inspection if required. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Volume

Material

1,000 gallon 2,500 gallon 5,000 gallon

$1,124 $1,381 $4,342

Labor Man-Hours 16 40 108

(47). GENERATORS (A) PACKAGED / SKID MOUNTED GENERATORS EMERGENCY / STANDBY UNITS Diesel Powered: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Engine 1,800 RPM and 60 Hz rating: Excludes foundations, setting holding down bolts, grouting, brackets, cranes, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging.

K.W. Rating

Approximate Weight Pounds

Number of pieces

ManHours

25 50 75

1,450 2,050 2,460

5/7 5/7 5/7

28 40 56

52

100 125 150 175 200 250 500

2,750 3,350 4,100 6,200 7,500 8,600 10,500

5/7 5/7 5/7 7/10 7/10 7/10 7/10

72 84 100 122 134 146 220

(48). GENERATOR STEAM TURBINE UNITS (A) GENERATOR TURBINE - STEAM UNITS: Approximate Installation man-hours for unit ranging from 1,000 K.W. to 10,000 K.W. including all construction scope items, note piping lengths / man-hour units are for the immediate footprint area of turbine, i.e. an imaginary line / battery limit of 50’ surrounding turbine. Note add 5-15% to the following direct hours for scaffolding, clean up, temporary barricades etc, crane rental / operator(s) not included in man hour units: Man-hours Per K.W. Rating Scope Item

% Value

Off loading & setting (Millwright work) Foundations / supports

34.5 5.2

Aligning & grouting Piping systems Electrical / Controls Insulation / Painting Testing / Start-up / Commissioning Miscellaneous items

Total MW Size 500 1,000 2,500 5,000 10,000 25,000

Remarks

9.6

21.1 14.7 5.2 5.2 4.5 100.0%

Excavation, backfill, concrete, rebar and formwork includes some structural steel supports 50’ 2 # 2”- 4” C.S. of piping systems Insulation of piping systems

Man-Hours 9,500 14,100 15,340 18,970 21,650 32,450

These man-hour units could increase by +/- 25% dependant upon site conditions and the state of the economy.

53

(B) Order of magnitude- check value per KW: Facility Type Power Plant (Coal):

OOM Cost Construction Cost - (Total Facility based on production capacity) $1,57 - $1,875 per MW Average Cost $1,675 / MW Construction Cost - (Total Facility based on production capacity) $850 - $1,650 per MW Average Cost $1,250 / MW Construction Cost - (Total Facility based on production capacity) $890 - $1,775 per MW Average Cost $1,333 / MW Construction Cost - (Total Facility based on production capacity) $550 - $700 per MW Average Cost $675 / MW Construction Cost - (Total Facility based on production capacity) $1,400 - $1,975 per MW Average Cost $1,690 / MW Construction Cost $1,415 - $2,260 per MW Average Cost $1,840 / MW Construction Cost - (Total Facility based on production capacity) $500 - $670 per MW Average Cost $585 / MW 0.15 – 0.25 cents per KW hour 10% - 15% of Capital Cost

Wind Powered Facility:

Geothermal Powered Facility:

Combined Cycle Power Plant (Gas): Hydro Powered Facility:

Nuclear Fueled Power Plant: Simple Cycle Power Plant (Gas):

Operating Costs: Decommissioning Costs: (49)

GIN POLES: (A)

GIN POLE, SINGLE AND DOUBLE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Excludes concrete dead men and any movement to new location: TYPE

M.H.’S

100’ SINGLE 100’ DOUBLE 200’ SINGLE 200’ DOUBLE

1,180 1,690 1,540 2,470

54

(50)

GLYCOL UNITS: (A)

GLYCOL UNITS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging.

GLYCOL UNITS 5

4

3

2

1

0 1-5

5- 10

10-20 To ns

Ton

Man hours per ton

1-5 5 - 10 10 - 20 20 – 50

4.40 3.60 2.25 1.88

(51) GRANULATOR (A)

GRAVITY / IMPACT Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of 55

20-50

supports, guides, brackets, frames, bolts and shims, excludes setting holding down bolts. H.P.

APPROX WEIGHT

# OF PIECES

M.H.’ s

M.H.’ s per HP

25 50 75 100 150

2,400 3,700 5,400 6,800 11,900

3/5 3/5 3/5 3/5 3/5

23 27 34 39 46

0.92 0.54 0.45 0.39 0.36

(B)

Granulator 250 HP A – 515 CS • • •

Cost per pound $6.77 - $8.72 Cost per Kg $14.91 - $19.16 Cost per HP $315 - $404

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (52)

HAMMERMILL: (A)

HAMMERMILLS: Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final location, assume n/e 0.50 miles – 0.80 km, installation on base, adjusting drive, bearings, shaft alignment, calibrating and system check out. Man-hours exclude crane costs, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Typically is shipped in 6 /12 main pieces, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. Tons per hour

Motor Horse Power

Weight Pounds

ManHours

M.H. per Ton

10 15 20 25 50 75 100 150 200 250

10 20 25 30 50 100 100/125 150 200 275

2,500 3,000 4,200 5,000 7,500 10,000 14,000 17,500 22,500 30,000

24 28 36 42 64 78 104 122 144 164

2.4 1.87 1.80 1.68 1.30 1.04 1.04 0.80 0.72 0.66

56

500 750 1,000

(B) • • •

400 500 500/650

40,000 50,000 75,000+

188 208 238

0.37 0.27 0.24

Hammer Mill 250 HP 135 ton per hour A – 515 CS Cost per pound $6.14 - $7.98 Cost per Kg $13.49 - $17.56 Cost per HP $449 - $589

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (53)

HEATERS: (A)

Heaters – Cabin fired type heaters: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: MMBTU’ s

C.S. Tubes M.H.’ s

Alloy Tubes M.H.’ s

10 20 30 40 50

1,840 2,870 3,925 4,705 5,580

2,740 3,770 5,740 6,675 7,370

(B) CONVECTORS - Surface - Wall Mounted Unit: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours.

(C)

S.F / M2 EDR

Number of Pieces

Pounds Weights

M.H.’s

50 / 4.65 100 / 9.30 250 / 23.23 500 / 46.46

4-6 4-6 12 12/15

75 125 420 780

5 5 22 38

FEEDWATER HEATERS complete with local controls:

57

Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, control:. Assume unit is mounted on a skid unit the hook-up piping and electrical between tank and pump is included, typically trim is shipped loose. Assumed that equipment is shipped in one piece: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hookup, refer to productivity adjustments on page 2 to calibrate installation man-hours.

Boiler H.P 100 250 500 1,000 2,500

(D)

(E)

Weights Pounds # of pieces 1,500 (5/6) 2,500 (7/8) 3,000 (7/8) 4,500 (8/9) 8,500+ (10+)

ManHours

M.H. per HP

34 64 78 98 182

0.34 0.26 0.16 0.10 0.07

TANK HEATERS (immersion / electrical): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls: Assume unit is mounted on a skid unit the hook-up piping and electrical between tank and pump is included, typically trim is shipped loose: Assumed that equipment is shipped in one piece: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: M.W.

Equipment Cost

Installation M.H.’ s

10 25 50 100

$1,218 $2,872 $5,497 $10,616

2.5 4.5 8 14.5

BOX TYPE FIRED HEATER C.S. TUBES 250 PSI TUBE PRESSURE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls: Assume unit is mounted on a skid unit the hook-up piping and electrical between tank and pump is included: typically trim is shipped loose. Assumed that equipment is shipped in one piece: Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: 58

(F)

(G)

Duty / Million BTU’ s

MATERIAL COST (refer to previous tables for installation work)

5 10 25 50 100

$229,681 $380,221 $722,898 $1,177,288 $1,928,908

BOX TYPE FIRED HEATER S.S. 304. TUBES 250-PSI TUBE PRESSURE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Includes installation of motor and drives, controls: Assume unit is mounted on a skid unit the hook-up piping and electrical between tank and pump is included, typically trim is shipped loose: Assumed that equipment is shipped in one piece. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Duty / Million BTU’ s

MATERIAL COST (refer to previous tables for installation work)

5 10 25 50 100

$350,729 $582,385 $1,100,108 $1,807,238 $2,977,613

Heaters Unit Gas Fired MBTU’s

Weight

50 100 150 250

185 250 345 510

Hours 2.5 4 6 10

$ Cost 1,071 1,365 1,580 2,221

Cost Range is $9 - $21 per MBTU Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (H)

Heater Water Industrial (Gas fired) 100 gallons 250 gallons 500 gallons

2.5 hours 4 8

59

$2,111 $4,510 $7,697

Cost Range is $15.39 - $21 per gallon Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (I)

Heater Water Industrial (Electric) 100 gallons 250 gallons 500 gallons

(20 kw) 2.5 hours (30 kw) 4 (40 kw) 8

$1,265 $2,683 $4,720

Cost Range is $9.44 - $13 per gallon Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (J)

Steam Heater Immersion O.O.M. / Equipment, Cost

Price per KW (K)

$113 - $149

Fired Heaters Box Type C.S.

Million BTU / hour

Equipment cost Total installation M.H.’s

50 100

$1,292,550 $2,315,250

2,200 3,700

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (54)

HEAT EXCHANGERS (A)

FIXED TUBE SHEET C.S. SHELL, C.S. TUBES: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: AREA / S.F.:

MATERIAL COST $

50 100 150 200

(B)

3,539 5,670 5,938 6,767

M.H.’S 6 8 10.5 12.5

Shell and Tube Heat Exchanger Diameter

S.F.

$ / SF Range

60

Installation man-hours

per S.F 6” 8” 12”

25 50 100 25 50 100 50 100 150

53 – 58 41 – 45 37 - 42 65 – 70 48 – 51 34 – 39 61 – 65 42 – 47 37 – 41

0.10 - .0.25 0.10 - .0.25 0.10 - .0.25 0.10 - .0.25 0.10 - .0.25 0.10 - .0.25 0.10 - .0.25 0.10 - .0.25 0.10 - .0.25

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (C)

Plate Heat Exchanger 316 S.S. Equipment Cost 250 SF 500 SF 750 SF 1,000 SF

$320 / SF $257 / SF $243 / SF $236 / SF

Cost Range $236 – $302 SF Cost Range $2,539 – $3,250 M2 (D)

Plate Heat Exchanger 304 S.S. Equipment Cost 250 SF 500 SF 750 SF 1,000 SF

$266 / SF $244 / SF $231 / SF $213 / SF

Cost Range $213 – $266 SF Cost Range $2,292 – $2,862 M2 (E)

Heat Exchanger C.S. / 316SS (internals) Equipment Cost 100 SF 250 SF 500 SF

$108 / SF $64 / SF $54 / SF

Cost Range $54 – $108 SF Cost Range $581 – $1,162 M2 (F)

Heat Exchanger S/T TEMA-R Equipment Cost

M.H.’s

250 SF 500 SF 1,000 SF 1,500 SF

2.5 4 6.5 8

$45 / SF $35 / SF $29 / SF $27 / SF

Cost Range $27 – $45 / SF Cost Range $291 – $484 / M2 (55)

HIGH VOLTAGE SUB STATION:

61

(A)

HIGH VOLTAGE UNIT SUBSTATION: Man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: HIGH VOLTAGE SUB STATION

400

350

300

250

200

150

100

50

0 150

225

300

500

750

1,000

1,500

K VA

(56)

HOISTS: (A)

Hoist, 5 speeds, C. S. Tons 2.5 5 12.50 25

$ Cost $9,980 $17,724 $37,947 $69,600

Man-Hours 8.5 11 18 32

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(57)

HOPPERS

62

2,000

(A)

Hopper Conical O.O.M. Equipment Cost 5,000 CF 10,000 CF 15,000 CF

$22,712 - $32,167 $42,504 - $65,935 $73,206 - $97,871

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (58)

HORIZONTAL DRUMS: (A)

Horizontal Drum / Pressure Vessel: Wall 7/16” thick A – 515 C.S. • •

Cost per pound $1.73 - $2.24 Cost per Kg $3.81 - $4.92

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (59) HYDRAULIC FREIGHT ELEVATOR (A) HYDRAULIC FREIGHT ELEVATOR 200 fpm / 4 stops Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, brackets, temporary supports, piping, painting, electrical cable, conduit and electrical hook-up. CAPACITY / Pounds / Kg

Installation M.H.’

Approx, Cost

1,000 / 454 2,500 / 1,136 5,000 / 2,272 10,000 / 4,545 20,000 / 9,090

97 126 144 240 340

$18,865 $34,774 $47,853 $54,165 $66,756

(60) HYDROPULPERS / RAGGERS (A) VARIOUS PAPERMILL EQUIPMENT Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, guides, brackets, frames, bolts and shims, excludes setting holding down bolts, EQUIPMENT WEIGHT /

M.H.’ s PER TON 63

TONS 50 – 100

(61)

14 – 18.5

INSTALLATION OF TRAYS: (A) INSTALLATION OF TRAY’S – IN TOWERS / TOWER INTERNALS: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours exclude, internal packing, grog / chemicals / catalyst and any special testing / inspection if required. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: 2 sections: Sieve / Perforated tray excludes packing’s, brackets and clips:

(62)

Diameter

Sieve Tray C.S. $ COST

Valve Tray C.S. $ COST

24” 36” 48” 60”

$4,574 $5,713 $6,269 $6,805

$4,710 $6,269 $6,878 $7,269

LIFT STATIONS (A)

Lift Stations F/G, Steel or Concrete with Generator 100 GPM 250 GPM 500 GPM

(63)

$74,708 $138,653 $195,510

MANLIFT (A)

MANLIFT: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, guides, brackets, frames, bolts and shims excludes setting holding down bolts.

Number of Stops

Material

Man-Hours

2 3 4

$12,936 $14,637 $15,855

122 132 148

64

5

(64)

$17,000

164

MISCELLANEOUS ITEMS: (A)

(B)

Miscellaneous Items: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Description

M.H.’s

Lab Fume Hood: Lab Sink. Fire Pump. Hose Cabinet Recessed. Ditto Surface.

12.0 4.5 16.5 2.5 1.5

Horizontal Drum / Pressure Vessel: Wall 7/16” thick A – 515 C.S. • •

Cost per pound $1.74 - $2.26 Cost per Kg $3.83 - $4.97

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (C)

Granulator 250 HP A – 515 CS • • •

Cost per pound $6.74 - $8.66 Cost per Kg $14.83 - $19.06 Cost per HP $310 - $404

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (D)

Hammer Mill 250 HP 135 ton per hour A – 515 CS • • •

Cost per pound $6.20 - $8.01 Cost per Kg $13.63 - $17.62 Cost per HP $447 - $583

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (E).

BIN – HOPPER DISCHARGER C.S.

H.P/ Equipment Cost:

Top Diameter / # of items

Bottom Diameter

M.H.’ s

0.5 / $2,840

24” / 3 - 5

4”

6

65

1.0 / $3,447 2.5 / $6,818 5.0 / $7,732 7.5 / $12,505 10.0 / $15,204

(F)

30” / 3 - 5 60” / 3 - 5 84” / 3 - 5 120” / 3 - 5 144” / 3 - 5

6” 9” 12” 18” / 20” 22” / 24”

11 19 33 44 54

AERATION EQUIPMENT STEEL

• • •

1,000 GPD 2,500 GPD 5,000 GPD

$21,368 / $21.37 $28,492 / $11.39 $43,607 / $8.72

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (G)

Bagging Machine O.O.M. / Equipment, Cost 50 Bags / min (10 lb bag) 100 ditto

$ 17,603 - $22,376 $ 26,402 - $35,753

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (H)

Blender (Ribbon Type) • • • • • •

1 CY / 0.76 M3 10 HP CS $14,537 16 hour to install: 1 CY / 0.76 M3 10 HP SS $27,164 16 hour to install: 2.5 CY / 1.91 M3 15 HP CS $22,559 22 hour to install: 2.5 CY / 1.91 M3 15 HP SS $40,163 22 hour to install: 5 CY / 3.82 M3 25 HP CS $38,666 36 hour to install: 5 CY / 3.82 M3 25 HP SS $69,547 36 hour to install:

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (I) FORCED DRAFT C.S.: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Man-hours are based on pre-assembled units delivered to project, if cooling tower is to be installed on roof level, i.e. above 20’ grade increase man-hours by 10 - 15% depending on difficulty. Man hours units exclude excavation and backfill, concrete basin, setting holding down bolts, supporting structural steel, water treatment system (piping), condenser return water piping, m. c. c ’ s, or power cable and conduit also excludes foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation manhours. Cooling Duty / Million

Material Cost

66

Man-Hours

BTU’ s / Hour 0.25 0.50 1.00 2.50 5.00

(J)

$38,135 $59,035 $90,138 $157,445 $377,604

28 42 82 142 186

Compressor – Centrifugal: H.P.

$ Equipment Cost

$ Cost per H.P.

Installation man-hours

250 500 1,000

$141,979 $207,854 $268,721

518 379 245

36 56 76

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (K)

Centrifugal Pump STD ANSI Single Stage – C S GPM

H.P.

50 100 250 500 1,000

2.5 5 7.5 20/25 50 / 75

$ Equipment cost $2,600 $2,895 $3,251 $4,680 $6,234

Installation man-hours 14 20 28 36 52

$ Cost per GPM $49.52 $27.57 $12.38 $8.91 $5.94

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (L)

Centrifuge Solid Bowl Tons / hour

Material Cost $ / Ton M.H.’ s

5 10 15 20 25

121 158 203 229 300

4 4 6 8 8

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (M)

Fan Centrifugal, C S A 285C, 1,800 RPM Motor

CFM / HP

$ Cost

Man-Hours

1,000 CFM, 2.5 HP 10,000 CFM, 20 HP

$1,817 $3,707

14 32

67

100,000 CFM, 200 HP

$41,869

76

Cost range $0.42 - $1.82 CFM Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (N)

Horizontal Batch Centrifuge 10 SF 25 SF 50 SF

$74,582 $145,824 $336,158

88 M.H.’s 154 M.H.’s 410 M.H.’s

Cost Range $6,725 - $7,458 / SF Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (O)

Reciprocating, Compressor with Motor Brake H P Equipment Cost

Man Hours

250 500 1,000

104 260 750

$273 $536 $728

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (P)

Reciprocating Compressor C.S – 500 PSI • • • •

100 HP $81,218 – $ 813 / HP - 65 hours to install 250 HP $196,970 – $ 788 / HP -112 hours to install 500 HP $363,038 – $ 726 / HP - 230 hours to install 1,000 HP $672,683 – $ 672 / HP - 346 hours to install

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (Q)

Rotary Blower, C S A 285C, 1,800-RPM Motor CFM

$ Cost

Man-Hours

150 CFM, 7.5 HP 1,500 CFM, 75 HP 3,000 CFM, 150 HP

$7,497 $25,331 $34,671

17 54 72

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (R)

Rotary Vacuum Drum: (multi section) CS / SS - (25’ X 15’ high)

Drum Area SF / M2

CS Cost per

68

SS 304 Cost per

250 / 23.23 500 / 46.50 1,000 / 92.90 2,500 / 232.30

SF

SF

$5.81 $2.72 $1.03 $0.15

$6.66 $3.05 $1.17 $0.25

(S)

PORCELAIN SADDLE PACKINGS: MATERIAL COST $68 / C.F.:

(T)

CEMENT PLANT: 2009 construction cost basis: $248 - $369 per ton to Engineer, Procure and Construct: a fully operational facility.

(65)

MOTOR CONTROL (A)

Motor Control Center (600V) 100 A Compartment / Section 225 A Compartment / Section 400 A Compartment / Section 800 A Compartment / Section

$1,475 $1,685 $2,242 $2,526

6 M.H. s 8 M.H. s 11 M.H. s 16 M.H. s

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (66)

MOTORS (A)

Electric Motor, explosion proof 5 HP (0.05 ton) 100 HP (0.50 ton) 1,500 HP (3.30 ton)

$ 740 $ 8,888 $ 104,055

6.5 M.H. s 32 M.H. s 118 M.H. s

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (67)

PNEUMATIC CONVEYING (A)

PNEUMATIC CONVEYOR SYSTEM Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, guides, brackets, frames, bolts and shims excludes setting holding down bolts. 50’section 50’section 50’ section 50’ section

2”dia with 10/15HP motor 10 man-hours / .22 LF 4”dia with 20/25HP motor 16 man-hours / .32 LF 6”dia with 25/35 HP motor 20 man-hours / .40 LF 8”dia with 35/40 HP motor 32 man-hours / .64 LF

69

(B)

(68)

Length / LF -M

2” per LF

4” per Lf

6” per LF

8” per LF

50 / 15.25 100 / 30.50 250 / 76.20 500 / 152.45

29.84 69.93 95.84 121.37

64.69 99.00 136.75 179.91

74.55 124.19 172.11 224.21

85.47 148.09 204.90 247.11

PRESSURE LEAF FILTER (A)

(69)

PNEUMATIC CONVEYOR SYSTEM C.S. Material Only

PRESSURE LEAF FILTER: Carbon Steel shell, carbon steel tubes: (A 36):Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:

Area / SF – M2

# Of pieces

M.H.’ s

M.H. per SF

100 / 9.30 200 / 18.60 300 / 27.90 400 / 37.20 500 / 46.50

4/7 4/7 4/7 5/8 5/8

42 48 54 64 82

0.42 0.24 0.18 0.16 0.16

PUMPS (A) Gear Pump, C S A 285C GPM

H.P.

$ Equipment Cost

Installation man-hours

$ Cost per GPM

50 100 300 500

2.5 5 15 20

4,207 4,487 8,059 12,195

8 11 16 32

84 45 27 24

Add installation man-hours Add 3% for transport to site for US applications (B)

Rotary Gear Pump, Canned - SS 316 – 1,800 RPM GPM

H.P.

$ Equipment Cost

Installation man-hours

$ Cost per GPM

50

2.5

4,846

14

97

70

100 250 500

5 15 25

7,782 14,226 21,624

20 30 52

78 57 43

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) If pumps and motor are skid mounted multiply above units by 0.85. (C) Miscellaneous Pumps Pump Type Sump Pump 15 M3 hour / 2.5 HP SS Transfer Pump 25 M3 hour / 2.5 HP SS Ditto 5 M3 hour / 1 HP SS Transfer pump 50 GPM / 2.5 HP SS Transfer pump 100 GPM / 5 HP SS (70)

$ Cost $5,219

Man-Hours 4

$7,135

6

2,111

4

$5,114

4

$6,447

6.5

REACTORS: (A) REACTOR CARBON STEEL: (Glass Lined) with full jacket Cost per gallon $140.18 / $37 per Liter (B)

REACTORS – DIMPLE JACKET, REACTOR 50 PSI: JACKET 100 PSI:

Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation manhours.

GALLONS

MATERIAL COST 304 S.S

M.H.’S

MATERIAL COST $316 S.S.

M.H.’S

2,500 5,000 10,000

51,842 78,036 113,490

46 104 145

59,701 82,568 122,653

49 116 153

71

(71)

REFRACTORY LINING (A)

Refractory Lining 1 Brick thick to stack. Diameter

Cost per LF

18” 24 36” 48”

(72)

Cost per M

224 347 571 751

735 1,138 1,873 2,463

SILO / HOPPER: (A)

CONICAL ROOF: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Equipment and labor cost $4.57 - $6.20 per cubic foot.

(73)

STACKS (A)

Stack w/o flare tip, C S A 515

Height 20’ high, 24” diameter (2.00 ton 40’ high, 48” diameter (3.50 ton 96’ high, 72” diameter (15.00 ton)

$ Cost

Man-Hours

$4,809

12

$21,404

33

$68,591

96

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (74) TANKS / STORAGE / SPHERES (A). STORAGE SILO: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up: 0.25 – 0.50” thick wall. Size 5’ – 15’ Diameter - 10 - 66’ high. Volume (Gallons)

Weights Pounds / kg

Man Hours

M.H. per Gallon

1,000

2,600 - 1,180

28

0.028

72

2,500 5,000 10,000 25,000 50,000 100,000

(B).

3,100 - 1,410 7,100 - 3,225 12,500 - 5680 22,500 -10,225 51,500 -23,410 83,500 - 37,955

35 41 53 69 82 106

0.014 0.008 0.005 0.003 0.002 0.001

STORAGE TANKS - Reinforced Fiber Glass (Flat Bottom): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, supports, brackets, leveling, aligning, stairway / handrail and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, piping, cable, conduit and electrical hook-up: GALLONS

MATERIAL COST $

1,000 2,500 5,000 7,500 10,000

5,481 9,093 13,776 16,034 19,745

M.H.’S 8 14 19 26 32

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (C)

SPHERES (ASME incl stairs A 515): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up.:

DIAMETER in feet / M

WEIGHT / LBS

$ MATERIAL COST

INSTALLATION M.H.’ s

15’ / 4.57 20’ / 610 25’ / 7.62 30’ / 9.15 35’ / 10.67 40’ / 12.20 45’ / 13.72 50’ / 15.24

19,500 29,800 48,800 69,600 88,600 119,500 151,400 189,600

$51,053 $75,376 $103,281 $125,729 $166,646 $220,263 $248,348 $303,902

98 139 183 214 283 387 445 502

(D).

STORAGE TANKS (ATMOSPH) Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hookup. 73

CAPACITY in gallons

CARBON STEEL Cost

M.H.’ s

S. S. 304 Cost

M.H.’ s

5,000 7,500 10,000 20,000 25,000

$23,730 $29,610 $36,120 $60,585 $78,855

26 37 42 56 67

$34,230 $42,315 $52,710 $87,885 $91,560

29 43 49 65 73

(E)

(F)

(G).

STORAGE TANKS (CONE ROOF) Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up. CAPACITY / GALLONS

MATERIAL COST

INSTALLATION M.H.’ s

25,000 60,000 100,000 200,000 325,000

$50,804 $77,404 $88,498 $121,812 $164,954

78 118 133 183 218

STORAGE TANKS (FLOATING ROOF) Installation manhours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up. CAPACITY / GALLONS

MATERIAL COST

INSTALLATION M.H.’ s

15,000 30,000 50,000 100,000 150,000 250,000

$9,622 $14,187 $19,178 $30,479 $40,742 $61,671

14 21 28 43 78 94

VESSEL MATERIAL COST Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up.

74

(H).

GALLONS

MATERIAL $ COST PER GALLON

1,000 2,500 5,000 10,000

13.55 – 18.59 9.71 – 14.28 5.72 – 8.93 3.41 – 4.73

TANKS / VESSEL, API CONE ROOF C.S.: MATERIAL ONLY Refer to previous tables for man-hour installation.

Gallons

Material Cost

Cost / Gallon

5,000 10,000 25,000 50,000 100,000 250,000

$30,311 $37,268 $51,741 $65,172 $82,734 $135,116

$6.06 $3.73 $2.07 $1.30 $0.83 $0.54

(I).

TANKS / VESSEL, API CONE ROOF C.S / Glass Lined: MATERIAL ONLY Refer to previous tables for man-hour installation. Gallons

Material Cost

Cost / Gallon

5,000 10,000 25,000 50,000 100,000 250,000

$45,157 $61,872 $85,592 $103,262 $135,113 $187,465

$9.03 $6.19 $3.42 $2.07 $1.35 $0.75

(J).

TANKS / VESSEL, API CONE ROOF FRP: MATERIAL ONLY Refer to previous tables for man-hour installation.

Gallons

Material Cost

Cost / Gallon

5,000 10,000 25,000 50,000 100,000

$54,522 $70,839 $98,179 $125,639 $160,346 N/A

$10.90 $7.08 $3.93 $2.51 $1.60 N/A

250,000

(K). Spheres A – 515 CS - 5/8’thick wall • • •

50,000 CF material cost) 100,000 CF material cost) 150,000 CF material cost)

Material Cost - $9.50 / CF (installation 1.5% – 3.5% of Material Cost - $3.89 / CF (installation 1.5% – 3.5% of Material Cost - $3.15 / CF (installation 1.5% – 3.5% of

75

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (L) STORAGE TANK - ATMOSPHERIC 25 – 50 M3 = $242 - $297 / M3 (M) Vertical Storage Tank, C S A 285C Gallons

Weight (tons)

$ Equipment cost

Installation man-hours

$ Cost per gallon

10,000 30,000 75,000 100,000

3.10 6.50 11.75 16.00

17,953 27,803 58,049 67,976

19 28 64 118

1.80 0.93 0.77 0.68

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (N) Vertical Storage Bin CS Coned Bottom Cost per CF = $5.15 - $8.09 (O) FRP Tank, (Design Temp, 75 Deg F) Gallons

Weight

$ Equipment cost

Installation man-hours

$ Cost per gallon

1,000 10,000 30,000 50,000

0.50 ton 1.50 ton 2.10 ton 3.85 ton

$9,540 $33,620 $61,293 $96,179

12 24 32 62

9.54 3.36 2.04 1.92

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(P)

Glass lined C.S. Tank (Horizontal Rounded Ends) Gallons

Weight

$ Equipment cost

Installation man-hours

$ Cost per gallon

5,000 10,000 25,000 35,000

3.50 ton 4.80 ton 5.70 ton 8.45 ton

$28,809 $44,364 $71,483 $97,320

30 36 44 58

5.76 4.44 2.86 2.78

76

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(Q)

Glass Lined C.S. Tank. 250 – 1,000 gallon = $116 / gallon

(75)

TOWERS (A)

Tower Packing, Calcium Cubic Feet

$ Cost

Man-Hours

50 CF 150 CF 500 CF 50 CF Porcelain Saddles

$ 628 $ 2,006 $ 7,660 $ 3,197

15 45 122 12

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (B)

Tower Trays / Perforated S.S.316 (2 Sections) Diameter

$ Cost

Man-Hours

30” 36” 42” 48” 54” 60” 66” 72”

988 1,138 1,286 1,460 1,612 1,706 2,273 2,489

2.5 3.0 3.5 4.5 5.5 6.5 7.5 8.0

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(C) Tower Trays / Bubble Cap S.S.316 (2 Sections) Diameter

$ Cost

Man-Hours

30” 36” 42” 48” 54” 60” 66” 72”

1,255 1,423 1,643 2,157 2,504 2,867 3,371 3,953

2.5 3.0 3.5 4.5 5.5 6.5 7.5 8.0

77

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (D)

Tower 15 PSIG C S A 515 / Height, diameter, # of trays

Height and Diameter

$ Cost

Man-Hours

32’ x 5’ diameter (8.5 Ton) 10 trays 52’ x 7.50’ diameter (22 Ton) 20 trays 72’ x 10’ diameter (50 Ton) 30 trays

60,323

42

135,293

162

261,188

337

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (76)

TRANSFORMERS: (A)

TRANSFORMER (DISTRIBUTION): 3 Phase, Dry Type 480 v primary and 208 / 120 v 60 hz secondary Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up: Transformer Capacity KVA

Installation M.H.’ s

Approx Cost

20 50 100

12 32 40

$1,131 $3,059 $4,817

(B)

OIL FILLED TRANSFORMERS KVA 250 500 1,000

(C)

Man-Hours 32 42 56

DRY TRANSFORMERS KVA 250 500 1,000

(D)

Man-Hours 28 38 52

TRANSFORMER 15KV 480/277 V

78

KVA 100 150 300 500

$ Cost

Man-Hours

11,172 14,396 24,329 36,278

32 42 56

Average Cost per KVA $73 - $112

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (77) TRAVELLING CRANE (A) OVERHEAD TRAVELLING CRANE: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, checking out of conveyor and all components, lifting into final position, setting, leveling, aligning, and system check out. Erection of supports, guides, brackets, frames, bolts and shims, excludes setting holding down bolts. Lifting Capacity

Material $ Cost

Man-Hours

2.5 5.0 10.0 15.0 20.0 25.0

20,186 26,182 34,461 42,053 46,064 54,348

18 24 30 36 40 48

(78) TREATMENT / SEWAGE PLANT (A). TREATMENT PLANT – SEWAGE (Packaged Unit): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, cranes, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging. Plant Volume Gallons Per Day

Motor H.P. / # of items

ManHours

M.H. per HP

2,500 5,000 10,000 15,000 25,000 50,000

2.5 (5-7) 2.5 / 5 (5-7) 5 / 7.5 7.50 / 10 (5-7) 15 (10-15) 25 (10-15)

38 57 102 127 208 337

15.2 15.2 15.1 14.5 13.9 13.5

79

(79)

VACUUM BATCH DRYER: (A)

VACUUM BATCH TRAY DRYER: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up:

Area / SF – M2

# Of pieces

M.H.’ s

M.H. per SF

25 / 2.32 50 / 4.65 75 / 6.97 100 / 9.29 200 / 18.60

4/7 4/7 4/7 4/7 7/10

12 22 32 42 54

0.48 0.44 0.42 0.42 0.22

(B)

Vacuum Dryer O.O.M. Equipment Cost 10 SF 20 SF

$113,925 - $188,265 $199,710 - $277,935

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (C) Vacuum Pump 200 HP $110 - $163 per HP (80)

Vertical Receiver (25 PSI – Full Vacuum):

(A)

(81)

Vertical Receiver (Labor & Material)

Capacity in gallons

304 SS

316 SS

1,000 2,500 5,000 10,000

$20.19 $14.70 $13.13 $10.59

$30.61 $18.11 $17.06 $13.97

VERTICAL TOWERS: (A) VERTICAL TOWERS PRESSURE VESSELS -- not exceeding 120’ T/T: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours exclude installation of trays, internal packing, internals brackets, and any special testing / inspection if required. Excludes cranes,

80

foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up.: Tons

Man-Hours per Ton

1 – 10 10 – 20 20 – 40 40 – 60 60 – 80 80 – 100

12.5 10 8.4 4.35 3.25 2.85

(B) C.S. • •

Vertical Distillation Tower 1” wall thick A – 515

Cost per pound $1.82 - $2.52 Cost per Kg $3.99 - $5.57

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (82)

VESSEL (GLASS LINED) (A)

. Horizontal Vessel / Drum, SS 316 Gallons

Weight

$ Equipment cost

Installation man-hours

$ Cost per gallon

1,000 3,500 7,500 9,000

0.75 ton 1.50 ton 3.20 ton 4.80 ton

26,861 61,577 130,694 145,786

27 37 56 68

26.86 17.59 17.43 16.20

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (B)

Horizontal Vessel / Drum, C S 100 PSIG Gallons

Weight

$ Equipment cost

Installation man-hours

$ Cost per gallon

500 1,000 2,500 4,000

0.70 ton 1.60 ton 3.00 ton 4.80

5,881 9,057 15,246 23,547

8 12 27 38

11.76 9.06 6.10 5.89

81

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (C)

Process Vessel, Vertical 15 PSIG, (Design Temp, 600 Deg F), C S A 515 Gallons

Weight

$ Equipment cost

Installation man-hours

$ Cost per gallon

1,000 5,000 10,000 15,000

1.60 ton 3.75 ton 5.75 ton 8.25 ton

16,736 31,956 37,122 49,398

23 26 29 42

16.74 6.39 3.71 3.29

Add installation man-hours Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost) (D)

VESSEL / REACTOR TANK - STAINLESS STEEL (304 / 316): Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up

82

VESSEL / REACTOR TANK - STAINLESS STEEL (304 / 316) 400 350 300

Man Hours

250 200 150 100 50 0 100

250

500

750

1,000

2,500

5,000

10,000

15,000

Volume in Gallons

(83)

VIBRATING SCREENS (A)

VIBRATING SCREENS C.S. A 36: Installation man-hours includes unloading, unpacking, transport from temporary site warehouse to final location, assume n/e 0.50 miles – 0.80 km distance, installation on base, adjusting drive, bearings, shaft alignment, calibrating and system check out. Man-hours exclude crane rental, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up.

Size Of Screen L X W inches

Motor /H.P

Weigh / Poundst

# Of pieces

M.H.’ s

M.H. per HP

60 x 72 60 x 84 60 x 108 60 x 120 96 x 72 96 x 84 96 x 108 96 x 120

5 7.5 10 10 / 15 7.5 / 10 10 / 12.5 15 / 20 15 / 20

4,150 5,270 7,350 8,150 5,150 5,960 7,850 8,950

7 /10 7 /10 7 /10 7 /10 7 /10 7 /10 7 /10 7 /10

18.5 25 37 45 25 31 47 54

3.7 3.33 3.7 3.6 2.85 2.75 2.68 3.10

83

(84)

UNDER GROUND FUEL OIL TANK: (A) Under Ground Fuel Oil Tank Installation: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Excludes pumps, cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up.

(85)

Volume

Material

Labor M.H.’ s

5,000 gallon 10,000 gallon 25,000 gallon

$4,986 $7,337 $20,810

16 48 64

WIPED FILM EVAPORATOR: (A)

WIPED FILM EVAPORATOR: Installation man-hours include unloading, temporary warehousing, site transportation n/e 0.50 miles – 0.80 km, unpacking, lifting into position, setting, leveling, aligning, and system check out. Installation man-hours exclude installation of trays, packing’s, internals brackets, and any special testing / inspection if required. Excludes cranes, foundations, setting holding down bolts, grouting, brackets, supports, piping, cable, conduit and electrical hook-up, refer to productivity adjustments on page 2 to calibrate installation man-hours. The man-hour installation units exclude initial chemical charging, cooling liquids, refrigerant / anti freeze chemicals, M.E. passivation and cleaning (pickling) and M.E. identification / stenciling & subsequent tagging.

AREA / SF – M2

# Of pieces

M.H.’ s

M.H. per SF

20 / 1.85 25 / 2.32 50 / 4.65 100 / 9.30

5/9 5/9 5/9 10+

78 88 132 188

4.10 3.70 2.77 1.97

(86) Vertical Distillation Tower 1” wall thick A – 515 CS • •

Cost per pound $1.91 - $2.52 Cost per Kg $4.20 - $5.54

Add 3% for transport to site for US and overseas applications (ocean freight would increase freight cost)

(87)

Vinyl Lined C.S. Tank 84

500 – 1,000 M3 = $470 / M3 (88) • • •

Vessels 316 L 10,000 gallon 15,000 gallon 20,000 gallon

$37,013 $54,107 $68,901

$3.70 gallon $3.61 gallon $3.45 gallon

Vessel 316l / Alloy 20 • • •

25 M3 50 M3 75 M3

$133,770 $239,820 $301,980

$5,350 M3 $4,796 M3 $4,026 M3

Storage Tank C.S. • • •

25 M3 50 M3 75 M3

$557 M3 $525 M3 $488 M3

Storage Tank C.S. Lined • • •

25 M3 50 M3 75 M3

$583 M3 $546 M3 $509 M3

85

SECTION D 1 FRONT END & SEMI - DETAILED ESTIMATING METHODS The section will in many ways will assist in condensing the cost estimators estimating efforts and the will optimize the time needed to compile a front end estimate. The end result should result in more consistent and accurate front end estimates. Semi-Detailed estimating is a powerful estimating tool, it is basically a hybrid of two estimating methods (1) Conceptual Estimating and (2) Detailed Estimating, an estimator / engineer familiar with this method can save a great amount of time utilizing this method, it can be used to generate “new” estimates with an accuracy of +/- 15% it can also be used to check conceptual and detailed estimates. The activity of Conceptual / Front End cost estimating is a first-rate tool for forecasting the cost of a CAPEX project (s), as we all know many times the scope and timing of capital projects will typically be subject to numerous changes during the projects life cycle (how much would it cost if we produced 10, 000 gallons per day, what if we produced 14,000 gallons a day, what would the plant cost if we built it in Mexico, would we save time and money if we used modules in the construct effort, should we “stick” build it, lots of questions, coming at the estimator, of course all these “factors” will impact the cost of the plant), this resource / tool can be used to explain or support the decisions made and is many times the genesis of the project (s) scope and the how the scope was developed and how the final estimated cost was arrived at, (how it was compiled and possibly modified along the early stages of the projects life cycle), an estimator or engineer who is skilled in producing front end & semidetailed estimates is a valuable resource to his or her employer. The (CAPEX) capital cost for the Engineering, Procurement and Construction (EPC) project(s) comprises of all the activities and expenditures associated with a specific building, plant or facility: the major activities will comprise of: • • • •

Front End Economic studies The Detailed Design Effort Field Construction / Site In-Directs / Construction Equipment / Field Establishment Project Management / Construction Management and Procurement activities

Other items could include contractor’s fees, bonding; insurance (BAR and workers compensation) and local state taxes, (VAT on overseas applications), tariffs and import duties, currency fluctuations specific to the CAPEX project. It is the contention of the authors of this database that a complete Front End & Semi-Detailed Estimate(s) can be compiled for a Manufacturing / Process and Commercial type facility from the data contained within this section together with data from earlier sections of this annual cost database. Depending on extent / degree of design definition (i.e., engineering deliverables) the estimator / cost engineer / project manager can either use the ratio method described earlier in section B 2 or if better / enhanced definition on the study / proposed project is available can choose to compile a Front End / Semi Detailed Estimating approach described in this section. When you come right down to it a capital cost estimate is an evaluation / opinion of the final capital cost of a Engineering, Procurement and Construction (EPC) project, the end uses of an capital cost estimate are focused on the expected / probable final cost of the completed EPC CAPEX project(s), used correctly it is the initial control budget, in addition it is a planning and scheduling tool that can be utilized to determine the manpower requirements / peak

1

manpower needs to complete the current “known” scope – this can be used to determine field labor needs and Home Office engineering needs, it can be used as a means for arriving at a cash flow / spend out plan, a discussion document to resolve risk or scope items, a bidding / budget tool, or one of the final deliverables of a proposal effort and or the initial project control framework of an EPC project. The know-how of estimating is not magic or a mystery nor is it an exact science, it requires the input of an individual(s) that is organized and analytical in his or her work effort. The endeavor of “estimating” (looking into the future, is what this activity is all about) has been around for a long time, hundreds if not thousands of years, the reasons / need for cost estimating have stayed much the same over the years, how much material do we need order, how many men should we hire, how long should we keep this labor resource, how much will it will the piping cost, when will it be completed, questions and more questions are needed to be known before moving forward upon any significant EPC project(s). A front end / semidetailed cost estimate can be any kind of capital cost estimate blue sky, order of magnitude, feasibility, conceptual, appropriation (A.F.E.), preliminary, definitive or lump sum capital cost estimate, (dependent upon the level of effort applied to the front end engineering / estimating effort, the resulting accuracy is in many ways contingent upon the quality / exactness / accuracy of the scope of work statement and other project related data / information and time and resources available to complete the front end engineering package and estimating effort, refer to Classification of Cost Estimates and Range of Accuracy on the following pages. Whatever the case may be, the following scope / data / deliverables (engineering and estimating) information is many times required to complete a front end / semi detailed estimate (accuracy +/- 20%): Assumptions and exclusions, contingencies, source of the cost data and the resulting accuracy need to be fully document in finalizing the capital cost estimate, the following engineering deliverables are usually required to complete the type of capital cost estimate. 1.

A Preliminary scope of work statement / execution strategy.

2.

A Major Equipment list together with an outline specification, capacity / sizes and materials of construction.

3.

PFD’s and P& I D are at between 10% and 100% complete.

4.

Available site plans, general arrangement and major equipment location drawings / photographs / videos.

5.

Preliminary sketches / drawings indicating major equipment foundations.

6.

Sizes / footprints / number of floors etc. specifications of facilities / buildings (siding, concrete block, open structure etc.).

7.

A listing Offsite related work, roads, utilities and main piping locations (if this scope is not defined apply a value of between 20% and 60% to the I.S.B.L. value to cover the cost of the offsite related work).

8.

Bar chart schedule indicating major project milestones.

9.

An engineering / estimating plan, how are we going to engineer / estimate this study / project, who does what, when is the information required, who is the point of contact, when is the study / estimate required, who does it get presented to. 2

10.

A preliminary instrument list, (sometimes this is not available).

The following is a recap of engineering deliverables basic estimating data required to compile an estimate for the following estimating types / categories A, B, C, D and E. CAPEX COST ESTIMATING TYPES / ENGINEERING DELIVERABLES REQUIRED Ref # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Engineering Deliverables / Detailed Design Data Approved written Scope Document / Scope of Work Statement. Plant location Facility / Plant production target Milestone schedule dates / Bar chart listing Engineering / Procurement and Construction start and finish dates Detailed CPM / gnat chart schedule / Integrated project schedule Permits (Environmental / State / Local / Building) Approve Project Design Basis Completion of similar project Soil investigation / hydrology report Preliminary plot plan Final plot plan Site visit (mandatory for C, D & E) Product and manufacturing capacity / targets Process flow diagrams PFD’s / Block flow diagram Approved Equipment List Approved Equipment specifications Approved Heat & Balance Preliminary engineering (P&I D’s) flow diagrams Final / Signed Off engineering (P&I D’s) flow diagrams Preliminary Major equipment (M.E.) list with sizes and materials specifications Major Equipment (M.E.) detailed list with sizes and specifications Approved equipment layout drawings Final equipment layout drawings S/C quotations (M.E.) Major Equipment list with firm bids / prices and vendor assistance values Use of refurbished equipment Plan for providing utilities / services Approved utility flow diagrams (UFD’s) Listing of utility equipment together with budget pricing Final utility flow diagrams and Final Pricing from vendors Preliminary plot plan Approved Final plot plan Building footprint sizes / Space needs / Room use Building footprint sizes / elevations / sections and specifications Demolition scope details Preliminary foundation design Preliminary structural steel design Architectural elevations, details and finish schedule AFC C/S/A drawings 25 – 40% engineering (P&I D’s) flow diagrams Material of construction selected P& I D’s flow diagrams %0 – 70%% complete, pipe racks / hangars are conceptually designed (early conceptual take-off completed) P&I D’s 80% approved – (computerized bills of quantity generated) I/C philosophy is determined PLC / DCS needs are determined 25 – 50% engineering (P&I D’s) flow diagrams completed Preliminary Instrument list and specifications is determined – budget pricing obtained

3

A

B

C

D

E

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes

Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes

Yes Yes Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes

Yes

Yes

Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes

Yes Yes

46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71

Approved Final engineering (P&I D’s) approved / instrument list is generated and out for final pricing Instrumentation list is approved Sub-station MCC designed and sized and placed on order Preliminary single line diagram and specifications / motor list area classification determined Preliminary lighting needs and specifications / motor list Approved Final single lines / motor list / area classification Final specs power / lighting needs, area classification map Quantity take-off’s completed for cable, conduit and cable tray together with all miscellaneous electrical materials completed and priced out by vendors Preliminary insulation requirements Detailed equipment list / piping with insulation requirements Approved engineering (P&I D’s) Detailed insulation spec’s Various unit prices / bids from Sub Contractors Spare Parts, Vendor Assistance, Refractory, Painting, Heat Tracing Freight Costs Percentage factor of direct costs Detailed estimate of construction equipment and small tools Detailed estimate of field support man hours Detailed estimate of bulk materials, taxes and insurance Percentage factor of construction costs for initial estimates and benchmarking final values Preliminary / Final estimate of man hour requirements (HO and Field) Detailed estimate of EPC H.O. travel, drawings and other H.O. related costs. C M details. O.S.B.L. Data Procurement plan / Contracting strategy Construction Field Establishment & Support - Cranes, trailers, support labor, batch plant, testing, field offices and staff Field procurement / warehousing COA / Escalation / Fee / Detailed Design and field professional man hours determined / Bonds / Insurance / Start up costs / other costs Contingency determination (use REP / MC simulation for D & E estimates Detailed Management Estimate Review / Estimate Basis (exclusions / inclusions)

Yes

Yes

Yes

Yes

Yes Yes Yes

Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes Yes Yes

Yes

Yes Yes Yes

Yes

Yes

Yes

A: OOM / Concept / Screening Estimate: Class 5 / FEL1 - Design typically 0 – 5% complete. B: Preliminary / Front – End / FEED / Feasibility Study: Class 4 / FEL2 - Design typically 5 – 10% complete. C: AFE / Board Approval Estimate: Class 3 / FEL3 - Design typically 10 – 15% complete. D: Budget Control / Baseline Estimate: Class 2 - Design typically 25 – 45% complete. E: Lump Sum / Bid / Definitive Estimate / Turnkey: Class 1 - Design typically 50 – 100% complete. Note: (D) & (E) above would be compiled when detailed design is well advanced, the most current detailed design and pricing data should be incorporated into (E) estimates, in addition a detailed Management review should be initiated to ensure the total scope has been “captured” and priced / included in the Lump Sum / Bid / Definitive Estimate / Turnkey estimate.

Estimate Range of Accuracy: Consider both applications listed below a make a judgement. Estimate Type Front End / O.O.M. / Conceptual Estimates Appropriation / Preliminary Estimates Definitive Estimates / Lump Sum

Accuracy +/- 25% - 35% +/- 25% - 20% +/- 10% - 5%

Another method for determining contingency and accuracy is as follows:

4

Type of Estimate OOM / Ball Park / Blue Sky Conceptual / Pre - Design / Feasibility Front End / (FEED) / Preliminary Budget Control Lump Sum / GMP / Turnkey

Contingency % 30 - 40 20 – 30 15 – 20 7.5 – 15 2.5 – 7.5

Accuracy % +/40 – 50 20 – 30 15 – 20 5 – 10 0-5

The best solution perhaps is to use an average of both methods indicated above to arrive at a value that meets the reader’s needs. The following data / man hours, material and installation units have been collected over a period of 15 + years the charts / tables following are not in alphabetical order, it is the intent of the publisher to update / add to this data source in the next and subsequent updates. The following front end and semi-detailed capital cost estimating method detailed in this section includes a reasonably uncomplicated procedures that will permit estimators, cost engineers and project / site managers to rapidly and precisely: Evaluate EPC firms / contractors / subcontractors / vendors proposals. Compile O.O.M. / front end / conceptual / semi detailed estimates with negligible / limited project specific data. Pre-Project / early funding studies: Audit cost estimates compiled by other organizations. Verify / Audit / Challenge the cost of proposed scope modifications / change orders. Assistance in auditing any possible claims (the official audit trail): Planning / Scheduling the Engineering, Procurement and Construction effort, i.e., manpower requirements and long lead delivery items. Cash Flow forecasting: Assist in providing basic capital cost data specific to future Value Engineering studies. Assist in benchmarking actual performance V’s planned. This method / approach can be put into action at the early engineering / design phase (the overall detailed engineering effort may be less than 5% complete, sometimes even before detailed design has been started) i.e., partially complete P & I D’s, i.e., the P & I D’s may only be between 20% and 50% complete and the general arrangement / plot plan related drawings, i.e., these drawings could be substantially less than 100% complete, the merit / worth of the resultant cost estimate(s) may well be as superior as a traditional detailed cost estimate typically prepared at the 10% - 20% detailed engineering milestone by corporate engineering group, EPC contractors / engineering firms and contractors, more often than not with more engineering resources required to produce the level of engineering required to produce the resultant engineering deliverables (drawings, specification and bills of quantities) and the resulting significant financial expenditure to get to this level of engineering. Sometimes these front end / semi detailed estimates are more cost effective than and as accurate as the detailed capital cost estimate that is produced at the 20% - 25% engineering milestone. This front end estimating method / approach does not rely totally on “priced / quoted” major equipment values (described in Section B 2 earlier) this method can be helpful if certain key quantities can be established, i.e., cubic yards of concrete, tons of structural steel, lengths of piping etc. can be established and added to the Major Equipment (M.E.) cost. The data indicated on the following pages under the heading of “Historical Benchmarking” data. These data point include (1) Cubic yards of concrete per M.E. item, 5

(2) Tons of structural steel per M.E. item, (3) L.F. of pipe per item of M.E. plus a number of other useful metrics that will assist in compiling a Front End / Semi-Detailed Capital Cost Estimate. The following comments apply to the data contained within this section. 1. The estimating all in unit costs which are detailed are on a U.S. basis, these units can be modified / calibrated by use of international location factors to determine the cost of plant / or facility located in an overseas location. 2. This “front end” capital cost estimating method / approach presents sufficient general data / information to allow the scope of work statement, cost control, value engineering data and EPC (eng / procurement and field activities) to be monitored throughout the detailed execution phase of the project, perhaps until a detailed control estimate is compiled, usually when the detailed engineering effort is 20% to 40% complete, hopefully the civil drawings will be completed, allowing the civil field work to commence. 3. The method / approach contains basic milestone / benchmarking points for the application of risk management, value engineering considerations, resolution / focusing factors, range estimating, escalation determination and contingency considerations, to make the capital cost estimate more complete and reflective of the scope to be completed. The compilation i.e., the “nuts and bolts” (front end engineering and estimating effort) of producing a front end / semi-detailed capital cost estimate for a intermediate sized i.e., $5 - $10 million refinery / chemical / process / manufacturing related grass roots and revamp plant with approximately 10 - 40 items of major equipment, i.e., pumps, heat exchangers, vessels etc., (not the off sites; this is usually estimated with a percentage value 20 – 60% of the I.S.B.L. work, this is usually adequate at this stage of the projects life cycle, if the I.S.B.L. scope is known use the following data to budget / estimate the cost of compiling a front end / semi detailed estimate) this effort would more often than not take an estimator / project manager no more than 40 – 60 hours (this is only the estimating, cost data collection effort ) this together with the front end engineering / study effort (perhaps no more than 60 to 160 hours of additional effort by a Chemical Engineer / Project Engineer P.E. / Purchasing Agent, making calls to vendors for budget pricing, etc.). The Front End / Semi detailed engineering / estimate study should contain the following deliverables, items 1 – 5 would be produced by the Chemical Engineer / P.E. / Purchasing Agent (would have a minor role), with the Estimator / Project Manager compiling items 6 and 7, this effort say 200 hours x $70 / hour would cost $14,000 1. Production of conceptual / preliminary / front end scope of work statement / package / execution approach. 2. Preliminary major equipment list (with vendor budget quotes on the main equipment items, hopefully based on prelim, spec sheets). 3.

Preliminary project outline specifications.

4.

Preliminary P. F. D.’s / P. & I.D.’s.

5. Conceptual plot layout sketches / general arrangements / major equipment locations / footprints and numbers of floors for any required buildings / facilities.

6

6. A Front End / Semi Detailed Estimate, with a narrative / basis of estimate and a contingency allowance of between 10% and 15%. 7. Milestone schedule indicating the start and finish dates of the major Engineering, Procurement and Construction activities. Historical Benchmarks The following table indicates typical ranges of support facilities / services / utilities, expressed as percentages of the bottom line (TIC) cost of a Chemical facility. In addition to this table there are a number of additional tables that highlight various historical benchmarks. Category Admin building / guard house Buildings / change rooms / control rooms / administration offices (not main admin office) Cooling water supply and distribution Expensed items (demo / dismantle / repairs / sunken costs) Fencing Firewater water supply and distribution Gas supply and distribution Loading area (scales / loading docks) Railroads Roads / walkways Steam production / boiler and distribution Water treatment Water supply and distribution Waste treatment Warehouse finished products Warehouse raw products Tank farm Yard lighting

Percentage Range 1.50% - 8.50% 0.50% - 4.50% 0.50% - 1.50% 0.25% - 1.75% 0.10% - 0.25% 0.50% - 0.75% 0.50% - 1.25% 0.15% - 0.50% 0.50% - 1.00% 0.50% - 2.50% 1.50% - 5.00% 0.25% - 1.50% 0.25% - 0.75% 0.50% - 1.50% 0.50% - 5.00% 0.50% - 2.50% 0.50% - 7.50%% 0.15% - 0.30%

Major Equipment Cost per item (I.S.B.L.): Number of M.E. items 25 50 100 200 300

Cost per M.E. item $2,638,283 / 105,531 $4,147,883 / 82,958 $7,870,690 / 78,707 $15,305,997 / 76,530 $22,660,176 / 75,534

For applications were the M.E. count are less than 25 use $110,800 per M.E. item. Cubic Yards of Concrete per piece of Major Equipment (I.S.B.L.): 7

Number of M.E. items 25 50 100 200 300

Cubic Yards per M.E. item 515 / 20.6 788 / 15.76 1,137 / 11.37 2,269 / 11.34 3,331 / 11.10

For applications were the M.E. count is less than 25 use 25 CY per M.E. item. Tons of Structural Steel per piece of Major Equipment (I.S.B.L.): Number of M.E. items 25 50 100 200 300

Tons of S.S. per M.E. item 69 / 2.76 117 / 2.34 221 / 2.21 423 /2.11 689 / 2.2

For applications were the M.E. count is less than 25 use 3.0 tons per M.E. item. LF of pipe per piece of Major Equipment (I.S.B.L.): Number of M.E. items 25 50 100 200 300

LF of pipe per M.E. item 14,370 / 575 26,370 / 527 48,760 / 488 73,830 / 369 94,167 / 313

For applications were the M.E. count is less than 25 use 650 LF per M.E. item. Heat Exchanger (S & T) C.S.: Area 100 500 1,000

Cost per SF $69 - $102 $46 - $79 $28 - $54

Heat Exchanger (S & T) Polished S.S.: Area 100 500 1,000

Cost per SF $350 - $625 $145 - $254 $117 - $151

Vessel Atmosphere / Pressure, C.S. Gallons

Cost per Gallon 8

100 500 1,000 5,000 10,000

$46 - $74 $18 - $34 $9.24 - $13.13 $2.84 - $6.93 $2.10 - $3.47

Tower (Distillation) with 20 – 30 trays 60’ to 70’ high Dia / Inches 24 36 48 60 72

100 PSI Material only $ Cost 55,055 69,901 73,555 81,855 112,874

250 PSI Material only $ Cost 72,500 79,671 96,185 114,104 161,461

Direct Field Construction Hours per piece of M.E. (I.S.B.L.) Number of M.E. items 25 50 100 200 300

Number of M. H.’s 40,990 / 1,639 79,600 / 1,592 143,700 / 1,437 296.800 / 1,484 471,200 / 1,570

For applications were the M.E. count is less than 25 use 1,750 M.H. s per M.E. item. Number of piping lines per piece of M.E. (I.S.B.L.): Number of M.E. items 25 50 100 200 300

Number of piping lines per M.E. 189 / 7.9 346 / 6.9 678 / 6.8 873 / 4.4 1,065 / 3.5

For applications were the M.E. count is less than 25 use 10 lines per M.E. item. Number of instrumentation loops per piece of M.E. (I.S.B.L.) Number of M.E. items 25 50 100 200 300

Number of instrumentation, loops per M.E. 98 / 3.9 179 / 3.6 316 / 3.2 588 / 2.9 N/A

9

For applications were the M.E. count is less than 25 use 5 loops per M.E. item Bulk Material (L-M) per item of M.E. (I.S.B.L.): Number of M.E. items 25 50 100 200 300

Bulk Material (L-M) per item of M.E. $3,786,300 / 151,452 7,373,100 / 147,462 14,488,000 / 144,880 28,612,080 / 143,060 40,950,315 / 136,501

For applications were the M.E. count is less than 25 use $156,700 per M.E. item. Home Office - Engineering, Procurement and Construction (EPC): Typical Hourly Rates: - Charged to Owners by EPC firms working on major US domestic and overseas Refinery / Chemical / Manufacturing CAPEX Projects - ranging in value from $25 million - $500+ million. (Note these are 2009 bill-out rates for US based staff, CAD machine costs are not included in rates, Xerox copies, express mail, long distance telephone calls are not included in rates and would be additional to the rates indicated below (this value could range between $4.50 - $7.50). Rates include salaries of staff, fringe benefits, and rent or leasing costs of office accommodation, electricity, heating / air conditioning, maintaining office (cleaning); support staff such a HR department / security services, the rates include a profit margin of 7.5% - 10%. (Note these rates correspond to a multiplier of 1.8 - 2.6 of W2 salaries). The day rates are based on 8 hours per day, many projects work 5 -10 hour days and 4-10 hour days the following week, for an average of 45 hours per week, adjust day rates if this is the situation. Skill #

1 2 3 4 5 6 7 8 9 10 11 12 13

Staffing Description / Classification

Project Director / Project Manager Deputy Project Director / Project Manager Engineering Manager Business Manager (Contracts / Procurement / Project Controls / Administration) Deputy Business Manager Lead Discipline Engineer * Senior Discipline Engineer * Discipline Engineer * Project Controls Manager Field Manager / Agent Lead Estimator Estimator Junior Estimator

Minimum Man-hour Hourly / Rate in US $ $150 $140 $140 $140 $135 $120 $110 $100 $130 $105 $115 $105 $60

10

Minimu m Day Rate in US $ $1,200 $1,120 $1,120 $1,120 $1,080 $960 $880 $800 $1,040 $840 $920 $840 $480

Maximum Man-hour Hourly / Rate in US $ $200 $180 $175 $175 $155 $145 $135 $120 $150 $140 $135 $125 $85

Maximum Day Rate in US $ $1,600 $1,440 $1,400 $1,400 $1,240 $1,160 $1,080 $960 $1,200 $1,120 $1,080 $1,000 $680

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

Lead Planner Planner Junior Planner Lead Cost Engineer Cost Engineer / Cost Analyst Senior Quantity Surveyor Junior Quantity Surveyor Lead QA / QC Engineer QA / QC Engineer Lead Procurement / Contracts Manager Deputy Procurement / Contracts Manager Contracts Engineer - S/C Coordinator Procurement Team Member Expeditor / Trafficking Coordinator Warehouse Materials Coordinator Vendor Inspector (Equipment) Contracts Administrator Lead Designer Designer / CAD Operator Document Control Team Member Secretary / Administrator Home Office Construction Manager Project Accountant Accounts Payable Clerk H O Safety & Health Manager Commissioning / Start Up Engineer

$115 $105 $60 $115 $100 $115 $50 $110 $95 $110

$920 $840 $480 $920 $800 $920 $400 $880 $760

$130 $125 $85 $130 $120 $130 $85 $130 $120 $135

$880 $100 $100 $85 $80 $55 $75 $65 $85 $60 $55 $40 $105 $85 $50 $85 $105

$1,080 $125

$800 $800 $680 $640 $440 $600 $520 $680 $480 $440 $320 $840 $680 $400 $680 $840

$125 $110 $90 $90 $110 $95 $115 $95 $85 $65 $135 $110 $85 $120 $125

* (Civil / Structural / Architectural, Process, Mechanical / Rotating Equipment, Building Services, Piping, Electrical, Instrumentation and various specialist engineers) Detailed Design / EPC Engineering Hours: Determining and estimating the EPC contractors detailed engineering costs can be calculated as a percentage of the direct project costs, refer to section A-3 for examples of this application, this method is used many times in front end / semi detailed estimates. Items to consider when selecting a value / or percentages are: 1.

Location North America or overseas.

2.

Productivity of engineering firm.

3.

New technology / duplicate plant.

4.

Green field site / inside an existing operating unit.

5.

Revamp / upgrade / demolition.

6.

Plant size and complexity.

11

$1,040 $1,000 $680 $1,040 $960 $1,040 $680 $1,040 $960

$1,000 $1,000 $880 $720 $720 $880 $760 $920 $760 $680 $520 $1,080 $880 $680 $960 $1,000

7.

EPC Engineering contractor skill set / size.

8.

Non-process buildings / facilities.

9.

Execution method, lump sum / direct hire.

10.

Off-sites, additional utilities.

11.

Corporate Engineering / Plant Engineering involvement.

12.

Schedule requirements, fast track / shift work. / over time.

The following is the engineering / design man (detailed design) hours per piece of major equipment (pumps, vessels, heat exchangers, towers, etc.) data is from a number of new / green field and revamp / upgrade chemical / refinery projects completed in North America in the 1990’s. Total EPC Home Office per piece of Major Equipment # 1 2 3 4 5 6 7

New or Revamp New plant New plant New plant Revamp Revamp Revamp Revamp

Facility Size Small Mid-sized Large Small Mid sized Large Mid sized

Hours / M.E. items 5,560 / 12 17,750 / 23 40,204 / 97 7,970 / 7 33,395 / 31 73,899 / 83 31,370 / 34

Hours per M.E item 463 772 414 1,138 1,077 890 923

As can be seen from the above data, the engineering man hours per piece of major equipment falls in the range of 400 – 1,200 man hours, these man hours include: Project Management / Project Engineering Engineering / Drafting / CAD Procurement activities / Contracts / QA/QC Project Control H.O. Construction Support / H.O. Accounting / Administration Above man hours include the total home office involvement as listed, excludes site management team. Note the above data points exclude O.S.B.L. (off sites work). Typical Production hours to produce various Drawings specific to a $10 - $50 + million “process” related facility: Discipline Civil

Drawing / Arrangement Type Site Works General Layout Foundation layout Foundation / wall sections and detail Underground services Rebar details Parking lot drawing 12

Man-hour Range 60 – 120 80 – 120 80 – 120 60 – 120 60 – 80 40 – 60

Architectural

Structural

Mechanical

Major Equipment

Process

Process Pipe

Electrical

I/C OSBL Data

Facility General Arrangements Wall sections Floor plans Finish schedule Framing arrangement Flooring details Platforms / ladders and stairs Pipe rack arrangement Building MEP systems HVAC layout Building MEP list Major Equipment layout Major Equipment list Data sheet Insulation / tracing schedule Block Flow Diagram (BFD) Utility Flow Diagram Process Flow Diagram (PFD) Piping & Instrumentation Diagram (P&ID) Heat and Material Balance Piping General arrangements Plot Plan ISO’s Insulation / tracing schedule Area classification Single line drawings Motor / Electrical load list Lighting plan I/C List Utility tie-in points Other OSBL key data OSBL equipment list

80 – 120 40 – 80 60 – 100 80 – 120 40 – 80 40 – 80 50 – 100 60 – 120 60 – 90 40 – 60 40 – 60 40 – 80 60 – 140 25 – 50 30 – 60 50 – 100 50 – 100 60 – 120 80 – 160 50 – 100 60 – 120 60 – 120 10 – 18 30 – 60 40 – 80 40 – 100 40 – 80 30 – 60 50 – 100 20 – 40 30 – 60 40 – 80

Demolition 1.5 – 3.5 hours per ton for demo of equipment and piping 0.0025 – 0.005 hours per CF content of demolished facility Miscellaneous Items: when sketches and preliminary drawings / engineering deliverables are on hand, formulate approximate quantity take-off’s and use prices indicated in B 4 earlier in unit price section and / or the all in pricing data indicated below. Quantify and estimate as many work items that can be quantified from the engineering deliverables available and the time / resources available. Various all inclusive price lists (Labor & Material) Unit Prices used for quick OOM budgets or for checking pricing from a contractor. (Includes contractors O/H and profit) (To convert SF to M2 multiply by 10.76 – to convert LF to M multiply by 3.28) Item

Unit Of Measure 13

$ Cost

Vinyl Tile Floor Cabinets 30” high with doors 30” deep (metal/ wood) Casework 30” high ditto Self leveling epoxy floor 0.50” Sheet vinyl floor (lino) Polyurethane concrete screed 0.50” Epoxy Terrazzo Phenolic resin work top 1” thick Ditto 0.75” thick Directory Boards 4’ x 3’ Emergency Lighting (nic-cad) Bally boxes / cold storage areas Lawn Sprinkler System Welded PVC Floor High Pressure Laminated Wall System Clean Room Demountable Wall Panel Ceiling Demount / Access Clean Room Ceiling board (glass fiber coated) Metal pan tile Ceiling board (with sheet vinyl) Gyprock ceiling board (on metal studs) Air handlers (Equipment only) Fans & Blowers (Equipment only) Dust Collectors (Equipment only) Lab Centrifuge Unit 2.5 CF (Equipment only) Anaerobaric chamber 12 CF (Equipment only) Dock Levelers 6’ x 8’ Elevator (hydraulic) Building Demolition (excludes tipping fees) Tipping Fees Hand excavation one lift / medium soil (2 M.H. s CY) Site clearing / grubbing Excavation and disposal within 5 miles Rock removal (light) Rock removal (heavy) Backfill compacted Imported stone / sub base Asphalt roads (6”paving/ 6”stone) 6’ Wire / Chain fence Manhole, Concrete, 4’ I.D. 4’ deep Metal sheet piling PVC U.G. drains, incl, excav & b/fill 2” dia ditto 4” ditto 6” ditto 8” Land drain porous concrete, 6”dia ditto 8” Slab on grade 4”reinf, with 6” stone base Ditto 6” thick SOG Ditto 6” broom finish Copper pipe, 0.75” dia, type M Ready mixed concrete 3,000 PSI Railroad track 14

SF LF

2.75 231

LF SF SF SF SF SF SF Ea Ea SF SF SF SF SF SF SF SF SF SF CFM CFM CFM Ea Ea Ea Per floor CF TON CY

100-139 2.10 1.68 – 2.81 5.25 13.07 14 – 19 11 – 17 546 – 945 446 – 756 16 – 34 0.84 5.30 29.61 39.17 20.69 5.46 2.94 5.20 5.36 2.89 – 7.14 2.89 – 4.99 22 – 39 3,145 5,350 3,812 – 6,353 38,850 – 54,075 0.30 – 0.53 45.15 – 70.88 27.20 – 53.55

ACRE CY CY CY CY CY SY LF Ea SF LF LF LF LF LF LF SF SF SF LF CY LF

2,987 7.09 9.29 18.64 20.63 23.94 28.25 23.47 – 41.48 2678 29.56 21.95 29.19 34.81 43.79 20.84 25.57 4.25 4.73 5.09 0.95 79.43 152.25

Caisson 24” dia, filled with concrete Ditto 30” ditto Ditto 36” ditto Concrete curb, cast in place 6” x 12” Sandblasting Bush hammer concrete Grout non shrink Rubber Water stop 6” 1” dia Pharmaceutical Grade 316 SS pipe 1.5” dia ditto 2” dia ditto 3” dia ditto Lay in Ceiling Tile 4’x 4’ Lay in tile with epoxy / PVC finish Lay in washable tile with mastic sealed joints Drywall / plasterboard with epoxy paint Drywall / plasterboard with h p laminated Demountable walk able clean room system Vinyl Tile (VCT) Casework Vinyl Sheets with welded seams Welded PVC floor Epoxy Resin 3/8”thick Ground Epoxy Terrazzo with 3”coved skirt 4” concrete block wall with drywall on both sides 4” Drywall / plasterboard both sides with epoxy paint 6” Block with screed and epoxy paint both sides 4” Demountable Clean room wall panel 4” Drywall / plasterboard b /s with welded PVC 4” Drywall / plasterboard with h p laminate Trespa wall facing (both sides) 0.25” Glazed ceramic tiles (both sides) CCTV system (1 TV & Camera)

LF LF LF LF SF SF CF LF LF LF LF LF SF SF SF SF SF SF SF SF of lab are SF SF SF SF SF SF

54.08 66.68 79.12 16.22 1.44 2.26 42.58 12.44 47 54 64 82 2.47 – 3.57 2.99 – 4.25 4.15 – 5.67 4.73 – 6.41 6.88 – 9.08 15.75 – 21.89 1.89 – 3.57 84 – 103 2.42 – 3.57 3.15 – 4.73 4.10 – 6.20 11.55 – 14.54 7.19 – 9.56 10.19 – 14.70

SF SF SF SF SF SF Each

15.49 – 20.16 31.40 – 37.17 20.11 – 23.99 25.04 – 29.93 12.50 13.49 3,885

Structural Steel (Misc., iron work), generate quantity take-off’s and convert to pounds / tons (weights can be obtained from various construction reference books / tables) from available drawings / sketches and costs from Section B 4, or use the following all in pricing listed below. Compile estimate by buildings / facilities, process structures, miscellaneous platforms and pipe supports / racks. Structural Steel material costs and erection man hours typify the average of the hours and material unit prices utilized by various large structural steel fabricators / installers, fabricated and delivered to the job site, including associated aligning and leveling, bolts / brackets / gusset plates, welding and one primer coat of paint (excludes grouting). Material

$ Cost - M.H. s / Ton

Structural Steel light / medium Structural Steel heavy Miscellaneous, platforms w/o grating Miscellaneous ladders Grating, galv

$2,619 $2,446 $5,972 $6,334 $11.77/SF 15

12/14 12/14 48/56 44/60 0.20/0.25 SF

Grating, galv Stairs, galv Pipe rack steel Metal Decking 20 g 1.50” deep Open Mesh / Checker plate Staircase Handrail CS Single Ditto Double

$5,999 $6,329 $2,597 $2.86/SF $19.39 / SF $201.42 /LF $33.97 / LF $45.90 / LF

40/48 36/42 16/18 0.10/SF 0.12/SF

Excludes crane / crane driver costs Structural Steel weights per SF •

Warehouse 8 –14 pounds

•

Manufacturing Building (2-4 floors) 12 – 20 pounds

•

Office / Admin Building (2- 4 floors) 16 – 28 pounds

•

Heavy Duty Manufacturing Facility 25 – 65 pounds

Welding Fillet Man Hours 100% Full Penetration Fillet / Thickness 1/8” 3/16” 1/4" 5/16” 3/8” 1/2" 1”

M.H. s / LF (Vertical) .185 .235 .335 .41 .715 .935 1.90

M.H. s / LF (Horizontal) .105 .155 .22 .275 .475 .64 1.45

M.H. s / LF (Overhead) .21 .31 .45 .51 .87 1.15 3.33

Facilities / Buildings calculate footprint area / usable space / multiply by number of floors, refer to section B 3 for appropriate building type or below for approximate square foot unit costs. The following are typical buildings / facilities that would be found on a typical process / refinery / manufacturing facility.

1. 2. 3. 4. 5. 6. 7. 8.

Warehouse Control room 3 operators MCC room 3-5 admin offices Field laboratory (2 people) Lunch room (12 users) Change / wash room Reception / waiting area

SF / $ cost

Typical size in SF

53 – 79 95 – 152 89 - 163 84 - 126 95 - 126 95 - 173 63 – 116 89 – 121

5,000 / 10,000 500 / 700 250 / 400 750 / 1,000 200 / 350 300 / 500 400 / 600 250 / 350

16

9. Garage / Parking Stall R.C. open Structure cost per car $11,000 low $16,500 high 10. Hospital cost per bed / patient $57,225 low - $173,250 high 11. Hotel / Motel cost per room Average $28,665 low - $59,850 high 12. 12 Hotel / Motel cost per room (3 star) $46,725 low - $115,500 high

O.M. Air Conditioning / Cooling Values Facility Type SF per Ton M2 per Ton Cost per Ton $3,875 Apartment (3-5 story) 500 46.5 $6,563 Computer / Data Processing Center 100 9.3 $2,641 Manufacturing Facility / Factory 300 27.9 $6,778 Hospital (3-5 story) 250 23.2 $5,581 Hotel (3- 5 story) 350 32.5 $5,948 Office Building (3 - 5 story) 300 27.9 $7,686 Refrigerated Warehouse 500 46.5 O.O.M. Air - Handler Units (DX - Chilled water includes coils, blower and drives) Tons HP CFM Material Cost Man-Hours $4,641 10 1 5,000 6 $10,815 25 2.5 10,000 12.5 $20,843 50 10 20,000 30 O.O.M. Packaged Water Chiller / Recip Compressor C / W condenser / H.E. / chiller / Piping and local controls Tons Material Man-Hours Miscl hook-up materials $30,949 25 2.5 18 $225 $52,227 50 10 22 $225 $80,640 100 15 36 $350

Tons 100 200 300 400 500

Centrifugal Cost per Ton Absorption Cost per Ton System System $31,904 $319 $356,370 $3,564 $183 $61,709 $309 $36,582 $52,626 $175 $90,930 $303 $159 $113,400 $284 $63,788 $75,653 $151 $136,500 $273

Low Pressure Scotch Boiler, fired by natural gas (Material & Labor) Pounds of steam / hour 5,000 7,500 10,000

Cost (M&L) Cost per pound $65,294 $13.06 $89,145 $11.89 $111,825 $11.18

17

O.O.M. / Conceptual Estimating for budgeting Air Handling Blower type equipment (1)

Air Handlers

$2.85 - $6.35 per CFM.

(2)

Fans & Blowers

$2.20 -$4.05 per CFM.

(3)

Exhaust Fans

$1.65 - $3.35 per CFM.

(4)

Housekeeping vacuum system.

$28 - $38 CFM.

(5)

Dust Collectors

$28 - $39 CFM.

Miscellaneous Major Equipment, the majority of major equipment items can be estimated / budgeted by utilizing the details indicated in earlier Section B 4 and C1 of this publication, it is important to remember that 3 - 5% should be added for freight, for international projects, freight, import duties and tariff’s may need to be added to F.O.B. / ex works value. The most precise, method of pricing major equipment is with the assistance of vendors / equipment manufactures, i.e., providing the vendor with an equipment data sheet (outline specification) and getting a written quote faxed back from the vendor, indicating the budget or firm price for the specific piece of equipment, or historically by analysis of recent procurement activities / purchase orders to collect recent pricing values and trends. On the other hand, it repeatedly came about that either the reason / purpose of compiling the estimate does not validate the expense or resources / time limitation and the compilation of the capital cost estimate does not allow it to transpire. The following budget price should assist the Cost Engineer / Estimator or the Project Manager when faced with this situation. Note: Refer to section C - 1 and A - 4 for specific details regarding Major Equipment budget pricing and man-hour installation values. Process Plant / Chemical Facility Piping / Biotech / Pharmaceutical Process Facility Piping Considerations: There are more than 200 diverse piping related materials specified by the American Society for Testing Materials (ASTM) for utilization in the production and manufacture of piping and related fittings that can be used in the following facilities: • • • • • •

Process plants Refineries Chemical facilities Biotech manufacturing plants Pharmaceutical process facilities Manufacturing facilities

Metal pipes are usually made from ductile iron, black or galvanized steel (CS), copper, or stainless steel (i.e. 304 / 316) and numerous alloy type materials that all have cost and installation consequences. Basically there are three manufacturing methods for producing metal piping systems. (1) Seamless pipe is manufactured by drawing a solid ingot / casting slab over or through a piercing rod / dye to produce the circular / hollow shell, i.e. pipe while the ingot is at an extremely high temperature, this production method is perhaps the most widely used in the industry, it is often more readily available than welded pipe, which is the second most widely used material. (2) Welded pipe is 18

formed by rolling steel plate in circular form and welding the joint / seam together, the slag is ground off the pipe both externally and internally. (3) Cast pipe is not widely used and is only used in special circumstances; this is of course more expensive than the above 2 # manufacturing steps / methods. The materials that are used include carbon steel such as (A-53, A-106, A-83, A-120 which are the most widely used in industry - to name but a few), alloy steels (sometimes referred to as “exotic” materials) such as (Stainless Steel S 304, 316, 304L, 316L, 317 254SMO, AL6XN, 309, 310, 347 - to name but a few) together with and an extensive variety of nonferrous materials. Both the ASTM and the American Society of Mechanical Engineers (ASME) have over many years supplied a very useful service / role and guidance in compiling and updating comprehensive bulletins and specifications for this complex / maze-like range of applications specific to piping related materials and their appropriate applications. In the last decade or two the use of plastic piping (applications and materials) Polypropylene (PP) and polyvinyl chloride (PVC) piping systems, Hi-Temp CPVC (PVDC) pipe and fittings have made a giant leap forward in the process industries, plastic pipe can be put in place with less hours than steel pipe, it weighs less and can be cut relatively quickly. The following points / topics should be considered when initiating the estimating and take-off effort specific to process piping / utility piping inside or outside a manufacturing facility or in the application of a chemical plant - Inside Battery Limit (ISBL) and Outside Battery Limit (OSBL). Process Piping. Process piping work essentially is made up of the following items and components. The vast majority of all piping systems have the following components associated with them that need to be evaluated and estimated. • • • • • • • • • • •

Material unit prices (remember sizable discounts can be achieved from suppliers for large quantity orders – possible as much as 40%- 50%). Waste 2.5% – 5% (typically). Freight, 2% to 3% for US applications should be added to the purchase price if this is missing from a suppliers quote. Man-hours for (field fabrication or shop pre-fabrication and field erection). Labor costs (union V’s non-union). Construction equipment (welding machines or cranes). Consumables (gases and welding rods). Small tools. Indirect labor (support to direct field labor). Supervision. Overhead and profit.

All of these topics / elements to need to be considered and allowed for in the estimate, additional scope issues to be considered include, new or revamp work, productivity, weather, onsite or offsite fabrication, union / non-union work or merit shop and any unique constraints such as completion date or working in an existing facility, working on grade or working 100’ above grade. Initiating the process (ISBL or OSBL) piping estimate, must start with a review of the available engineering data (design deliverables) if it exists, line lists, sketches, plot plans, major equipment locations, piping and instrument diagrams – (P. & I.D. ‘s), photographs - a site visit would be helpful, and an appreciation of the “total” scope of work (written or verbal), project goals, restraints, materials of construction and specifications, scope items to take account of in the process piping “take off” / estimate include the following: •

Piping system: The entire piping system used for the movement of fluids / chemicals / water / powders / air etc used in the process / manufacturing effort.

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This work includes cutting, beveling, fit up, preheating, welding, stress relieving, grinding and any required x-ray testing or NDT, together with any hydro testing and or pickling of the piping system. This should also include piping related bolts, nuts, gaskets, weldolets, caps, unions, strainers and nipples etc. •

Pipe Fittings: All required piping fitting (elbows, caps, reducers, tee’s)

•

Pipe Flanges / Couplings (150# / 300#): All required pipe flanges, couplings utilized to join pipe to pipe and any required fittings (elbows, reducers, tee’s) to each other.

•

Pipe Valves: All necessary valves (gate, globe, check, butterfly etc) utilized in starting, stopping and regulating the flow of fluids throughout the process / manufacturing steps.

•

Pipe hangars, shoes, guides and any required supports and frames.

Evaluation and points to consider before starting the Scope Review / Take Off / Estimating effort: The estimate / take off effort should recognize it’s physical location i.e. Inside Battery Limits (ISBL) and OSBL (Outside Battery Limits – Off-sites) piping material and labor should were possible be separated out by it’s material of construction, codes, (API, ASTM, ASME, and ANSI etc.) specification, diameter, schedule wall thickness – i.e. schedule 40, 80, small bore piping (2”diameter and less, usually joined together with screwed fittings) and large bore piping (2”diameter and greater, typically welded together). Take off the quantity of pipe in LF or Meters; count the number of fittings and their rating (150# or 300# tees, elbows, reducers etc, welded or screwed) and number of valves. Fabrication of process pipe includes the collection of material from lay down yard, preparation, measuring, cutting, beveling, welding, stress relieving and any grinding to manufacture various piping isometrics / spools for eventual field assembly and installation. Additional factors to take account of include the following. •

Weather protection issues, tarpaulins, sheds, and covered work area.

•

Material handing issues, the need for forklifts, trucks, lay down area, bar coding and other warehousing and transportation / logistics issues.

•

Control valve installation and the demarcation of pipe fitter & electrician work (consider control wiring and hook-up issues).

•

Make sure underground piping is wrapped or coated and is accounted for in the estimate, include and thrust blocks.

•

Ensure that all required orifices, strainers, blinds; rupture discs, pressure relief valves and any flexible hoses are accounted for.

•

Worker protection issues such as weather, noise, fumes and eye protection.

•

Sizes of project issues, i.e. smaller projects have larger mobilization and demobilization activities, these projects typically experience a greater learning curve.

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•

Shift work / overtime issues such as additional supervision, worker fatigue and shift pay differentials.

•

Ensure that pipe sleepers (usually pre-cast concrete) are accounted for.

•

Tie in’s and shut down issues such as hot taps, hot work permits and equipment standby.

•

Limited use of construction equipment / cranes / hoists due to working in existing operating plants.

•

Temporary protection of existing production equipment / screens.

•

Fire blankets / safety / fire watch personnel.

•

Material cost premiums for small quantities / deliveries.

•

Small bore diameter pipe (2”diameter and less, usually joined together with screwed fittings). This type of piping is usually fabricated at the site sometimes referred to as field run piping.

•

Large bore diameter pipe (2”diameter and greater, typically welded together) is typically fabricated in a pipe fabrication vendor’s facility and shipped in spool pieces to the jobsite, the benefits of this is (1) quality control (produced in a factory type environment), (2) schedule enhancement, (3) optimized costs and the need for less welding activities at the job site, i.e. less field manpower requirements.

•

The estimate / take off should recognize any vents, drains and waste piping systems (that are usually field run), couplings, expansion joints, thermo welds, weldolets, jumpers and strainers etc that are need and to what level of magnitude.

•

Establish scope / and quantity of steam tracing required and estimate accordingly (spiral or straight run tubing).

•

Ensure that existing systems are drained and safe prior to new tie-ins to piping systems.

•

The estimate / take off should recognize any breaking up of paved areas, excavation, planking & strutting, stone bedding materials, thrust blocks, backfilling and any off site disposal, road crossings and the reinstatement of road or paved areas.

The piping related to a Biotech / Pharmaceutical Process Facility is typically a big piece of the overall pie, the cost of this work typically runs between 25% - 50% of the total installed cost of the completed facility, so care and attention needs to be taken in scoping out and estimating this element of the project. This topic can be somewhat complex due to the fact that there are so many systems to consider, the only way to estimate this scope is to break it down into smaller pieces. Some of the systems that will be encountered are listed below: 21

• • • • • • • • • • • • • • • •

Process piping HVAC piping Service piping for Manufacturing / Process Equipment Vacuum systems Compressed air systems Reverse Osmosis piping (RO) Water systems Water for injection piping (WFI) De-ionized water piping (DI) Laboratory gases Cryogenic storage systems Sanitary treatment Drainage system Clean in place systems (CIP) Steam in place systems (SIP) Gases (CO2, nitrogen, argon, natural gas and perhaps more) needed to be quantified.

These and many other systems to numerous to mention need to be “scoped out” and estimated. Biotech / Pharmaceutical process facility type piping must be fabricated and installed to high quality standards, the quality of these piping systems is vital for the future production / safety / quality and future profitability of any biotech / pharmaceutical company. Issues that need to be considered in estimating this type of work includes: materials to be used: There are numerous materials that could be selected that have cost consequences associated with them, some of the most commonly used materials are aluminum, brass, carbon steel, stainless steel, cast iron, copper, some of these are corrosion resistant materials, CPVC, polypropylene pipe, double wall materials – jacketed piping, additional items to bear in mind are various cleanouts / clover leaf fittings, gas piping, glass pipe applications, PVC applications, fiberglass reinforced pipe (FRP), various pipe liners, fittings, valves, shock absorbers, hangars and various wrapping’s. There are two distinct types of piping in Biotech facilities, (1) piping that comes into direct contact with the finished product, many times referred to as “clean piping” more often than not SS 304 and 316, and (2) piping that does not come into direct contact with the finished product, many times referred to as “non clean piping”, these piping systems can be copper, carbon steel, plastic and a host of other “less” expensive materials. Pharmaceutical piping systems and manufacturing / production equipment usually make use of stainless steels applications, stainless steel 304, 304 L, 316, and 316L are the most frequently used materials, these materials are less likely to corrode over time than carbon steel applications, the manufacturing steps in the pharmaceutical industry is usually subject high operating temperatures and pressures, the industry has to ensure that cleanliness is always maintained in the manufacturing process, hence the use of these materials. Manufacturing / production equipment can typically be made of a combination of both S.S. 304 - 316 and SS 304 L - 316 L and other materials such as 317 and 321(plus on some occasions 2205, 254SMO, AL6XN, 309, 347, 405, 7MO, monel, titanium, inconel and admiralty), The most conventional type of stainless steel is a type of steel called “austenitic”, this is a type of alloy(s) that has a high amount of chromium within its makeup. These austenitic steel products have a somewhat high resistance to surface deterioration (pitting and corrosion) when in its passive condition, when oxygen makes 22

contact with the surface of plates or pipe it forms a protecting build-up or layer of chromium oxide material. 304 stainless steel is used in sheet metal products, food production, manufacturing facilities (bakeries, dairies etc), hospitals and various storage tanks and road transportation tanks together with piping, fitting and associated valves and applications that are not sensitive to a marine or corrosive location. 304 is readily shaped and welded; however it does not have good milling characteristics. 316 stainless steel is used in more extreme corrosive locations / applications, it is widely used in refineries, chemical plants, on the other hand, 316 stainless steel is subject to pitting / corrosion if it encounters high levels of chlorine for extended periods of time. 316 Stainless Steel is utilized in corrosive environment or in marine environment. 304 costs 6% - 10% less than 316 stainless steel, stainless steel type 304L and 316L stainless steels are utilized when components need to be welded, the “L” indicates a low carbon level, this grade basically allows extra corrosion resistance after the weld has been made, it is not crucial to use 304L and 316L for sheet metal applications. Typically the cost differential between 304 and 304 L and 316 and 316 L is not that great, over the last five years 304 L and 316 L applications have been averaging 3% to 6% more expensive than 304 and 316 stainless steel. Extruded seamless and / longitudinally welded SS piping / tubing is frequently used in stainless steel piping systems 0.50” to 2” diameter. Specifications that are many times followed are ASTM 269 and 270. The above mentioned piping systems are many times used in manufacturing of Biotech / Pharmaceutical products such as vaccines, sterile products, oral solid dosage products, potent compounds, pharmaceutical intermediates, hormone growth products, fermentation related products, tablets, R & D medicine facilities and Active Pharmaceutical Ingredients (API’s), these piping systems are required to be cleaned / flushed and sterilized many times over there production life. The most common piping material and size utilized in Biotech / Pharmaceutical Process Facility is stainless steel as previously described; the piping typically is 1” to 4” diameter (typically 2” diameter is the most common diameter). The piping systems typically encountered on these types of facilities are DI (de-ionized water piping), WFI (water for injection piping), CIP (clean in place piping), SIP (steam in place piping), RO (reverse osmosis piping) and other service / utility type piping. Electropolishing (EP) and mechanical polishing (MP) and passivation methods are applied to stainless steel piping and process / manufacturing equipment to curtail future corrosion activities, the cost impact of this progressive polishing activity is considerable and can increase the cost of these stainless steel materials / systems by as much as 10 - 20%, other materials such as monel, titanium and inconel do not require this polishing / passivation activity. The vast majority of Biotech / Pharmaceutical Process Facility Piping utilizes the orbital welding applications, orbital welding machines (were the welding activity takes place in a vacuum chamber / the welding arc moves around the pipe wall) V’s manual welds, the use of orbital welding has increased dramatically to perhaps were perhaps 75% of all shop / field welding applications uses the orbital welding method. Orbital welding has become the favored technique for installing (the actual welding together of the pipe to each other) in SS piping systems. Plastic piping is also used in this type of construction, plastic piping / thermoplastics are used in some piping systems; PVC, Clear PVC, CPVC, PVDC, ABS, PVDF, PB and PP are widely used; these materials are readily obtainable and will lessen the construction (installation) costs and construction schedule. Polypropylene (PP) and polyvinyl chloride (PVC, this is good for a service temperature up to 140 degrees F, it is not recommended for compressed air or gases) piping systems could be specified if the temperature, pressure and fluid is non corrosive, this piping material are cost effective (materials and field installation – less man-hours to install), however these materials do not perform well in 23

hot / high pressure applications, CPVC performs reasonably well in hot / high pressure situation, (it can handle temperatures up 200 degrees F, it is not recommended for compressed air or gases). Additional plastic piping / thermoplastics such as polyvinylindene fluoride (PVDF) or Hi-Temp CPVC (PVDC) pipe and fittings can be used in higher temperature / pressure applications also, the cost benefit of using plastic (PVC) type piping / thermoplastics materials in various piping systems is usually 20% – 70% lower than the cost of a similar 304 / 316 SS system / application, it must be remembered that these stainless steel piping systems / applications typically need non destructive testing (NDT), x ray inspection, electro-polishing (EP) and mechanical polishing (MP) polishing / passivation and bore scoping that of course impacts the cost of these piping systems. Piping Material Take-Off’s: use the Process Flow Diagrams (P F D ’s) / Piping and Instrumentation Diagrams (P & ID’s), site lay outs, plot plans, general arrangement, equipment locations, elevation drawings, building sections and follow the existing pipe racks if possible to develop quantity take-offs as follows: Locate and become aware of all process / utility lines in specific process areas and ascertain their diameter, schedule (wall thickness), material of construction and operating specification, line number (if available) and flange rating, i.e., 150# or 300#. Quantify length – lineal feet or meters (i.e., perform quantity take off – use a rotometer if possible, use a red pencil to check off lengths as you go through this exercise) starting from the closest point to the main header pipe rack, to end of line or piece of major equipment (be aware of changes in vertical and horizontal direction, i.e., drops, underground sections, road crossings, risers etc.), be attentive to the fact that drawing scales do change from one drawing to the next. Ensure that all piping lines in the interconnecting pipe racks including main headers, off site / utility supplies from remote storage / utility / and other process trains and operating units such as, WFI, chilled water / heating / cooling lines / process water / steam high & low pressure / condensate returns / city / potable water / manifolds / plant air / hydrogen / nitrogen / instrument air / tie-ins / drain points etc., are “taken off” or accounted for (use the allowances described later to ensure the take off is complete i.e. small bore piping), count up all valves both - manual and motor controlled valves indicated on P F D ‘s / P & I D’s, count fittings (elbows, tees, reducers and any other fittings) if time permits. Be aware that not all piping is shown on the P & I D’s. / Piping drawings, piping below 1” diameter many times is not indicated; time and again this small bore piping is field run and is not shown on any of the piping drawings. Compile piping insulation and heat tracing (piping or electrical) quantities when performing the above take-off activity. Use the following allowances to capture all the piping required that is not highlighted / shown on the completed piping drawings. These allowances should be added to the piping main quantities (or estimated cost value sheet / summary page) mentioned above the allowances are for the following: Allowances • • • •

Small bore piping 1” and below (usually field run) add 3 – 5% to the main piping take off quantities / or cost In-line devices (not the actual device) add $275 (L&M) for each $10,000 (L&M) of piping value Floor drain 4” diameter: includes 150’ of u / g pipe allow $5,775 (L&M) includes excavation and backfill. Utility stations (U.S.)(water / steam / compressed air) allow 1 # U.S. per 7,500 SF of process facility area allow $3,950 (L&M) for each U.S.

24

• • • • • • •

Drains / ejectors / sumps / traps together with any minor (50’ – 100’) underground piping allow $4,725 each Hot taps / tie ins allow $1,315 for 2” and below, $2,310 for 4” diameter 6” – 12” diameter use $3,465 - $4,620 for each tie-in Safety showers 1 # per 10,000 SF of process facility area allow $5,985 (L&M) Eye wash safety unit 1 # per 5,000 SF allow $3,100 (L&M) Heat tracing piping / tubing allow $16 - $35 LF Strainers / flexible couplings / jumpers add $420 (L&M) for each $10,000 (L&M) of piping value Wrapping to u / g 4” diameter pipe $1.45 / LF 6” diameter $1.90 / LF

Carbon Steel and Stainless Steel Piping budget pricing per LF and M: The following table outlines 2009 budget pricing for 2” diameter thru 6” diameter piping systems, (the accuracy of these values can be considered +/- 15%): (A) Carbon Steel process pipe: inside / outside an operating unit, reasonably complex with numerous changes in direction requiring small sections of pipe / spools with fittings and subsequent welding, A 53 schedule 40, 1,000 LF installed with 50 Number 150# flanges and 10 number fittings (elbows and tee’s, valves are not included) includes 5% X-ray, hydro testing, hangars and field erection. Installation hours are for pre-fabrication offsite and field erection. Includes 2” foam insulation with aluminum jacket. Field erection rate is $53 / hour (which is a non-union application). (B) Carbon Steel process pipe: inside / outside an operating unit, reasonably complex with numerous changes in direction requiring small sections of pipe / spools with fittings and subsequent welding, A 53 schedule 40, 1,000 LF installed with 100 Number 150# flanges and 20 number fittings (valves not included) includes 5% X-ray, hydro testing, hangars and field erection. Installation hours are for pre-fabrication offsite and field erection. Includes 2” foam insulation with aluminum jacket. Field erection rate is $53 / hour. (C) Stainless Steel process pipe: inside / outside an operating unit, reasonably complex with numerous changes in direction requiring small sections of pipe / spools with fittings and subsequent welding, Stainless Steel 304, 1,000 LF installed with 50 Number 150# flanges and 10 number fittings (valves not included) includes 5% X-ray, hydro testing, hangars and field erection. Installation hours are for pre-fabrication offsite and field erection. Includes 2” foam insulation with aluminum jacket. Field erection rate is $53 / hour. (D) Stainless Steel process pipe: inside / outside an operating unit, reasonably complex with numerous changes in direction requiring small sections of pipe / spools with fittings and subsequent welding, Stainless Steel 316, 1,000 LF installed with 50 Number 150# flanges and 10 number fittings (valves not included) includes 5% X-ray, hydro testing, hangars and field erection. Installation hours are for pre-fabrication offsite and field erection. Includes 2” foam insulation with aluminum jacket. Field erection rate is $53 / hour. Pipe 2009 Pipe 2009 Insulation Insulation Pipe 2009 Cost Pipe 2009 cost per LF Cost per LF 2009 Cost per 2009 cost per per M low Cost per M low high LF low LF high high

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Insulation Insulation 2009 Cost 2009 Cost per M low per M high

Diameter

$

$

$

$

$

$

$

Inches

A (see above) 2

64.72

70.85

16.70

17.45

212.26

232.39

54.77

57.23

3

76.96

84.27

19.63

20.50

252.44

276.39

64.36

67.27

4

92.59

101.38

23.27

24.32

303.70

332.51

76.33

79.76

6

108.48

118.76

27.88

29.13

355.81

389.57

91.45

95.55

8

129.19

141.45

31.60

33.02

423.77

463.96

103.65

108.32

10

166.28

182.05

37.23

38.92

545.40

597.12

122.14

127.64

12

199.39

218.30

43.74

45.72

654.00

716.03

143.49

149.95

14

234.98

257.26

49.37

51.59

770.72

843.82

161.93

169.23

16

279.58

306.09

52.85

55.22

917.02

1,003.99

173.32

181.13

18

327.58

358.64

57.48

60.06

1,074.46

1,176.37

188.51

196.99

above) 2

72.39

79.25

16.70

17.45

237.42

259.94

54.77

57.23

4

105.99

116.05

23.27

24.32

347.66

380.64

76.33

79.76

6

129.37

141.64

27.88

29.13

424.33

464.59

91.45

95.55

B (see

8

151.78

166.18

31.60

33.02

497.84

545.06

103.65

108.32

10

197.29

216.00

37.23

38.92

647.10

708.47

122.14

127.64

12

235.57

257.92

43.74

45.72

772.67

845.96

143.49

149.95

14

285.54

312.62

49.37

51.59

936.56

1,025.39

161.93

169.23

C (see above) 2

71.51

78.29

16.70

17.45

234.54

256.79

54.77

57.23

4

104.18

114.05

23.27

24.32

341.68

374.09

76.33

79.76

6

128.13

140.27

27.88

29.13

420.25

460.10

91.45

95.55

8

156.14

170.95

31.60

33.02

512.15

560.73

103.65

108.32

10

206.66

226.26

37.23

38.92

677.85

742.14

122.14

127.64

12

235.81

258.18

43.74

45.72

773.46

846.82

143.49

149.95

14

276.85

303.11

49.37

51.59

908.08

994.21

161.93

169.23

above) 2 4 6

76.12 107.74 131.40

83.34 117.96 143.87

16.70 23.27 27.88

17.45 24.32 29.13

249.67 353.40 430.99

273.35 386.91 471.87

54.77 76.33 91.45

57.23 79.76 95.55

D (see

8

161.09

176.38

31.60

33.02

528.38

578.50

103.65

108.32

10

213.84

234.11

37.23

38.92

701.37

767.90

122.14

127.64

12

253.58

277.63

43.74

45.72

831.73

910.61

143.49

149.95

14

287.60

314.89

49.37

51.59

943.35

1,032.83

161.93

169.23

For OSBL / yard piping (long reasonably straight run piping multiply above values by 0.74 Additional insulation: Add $1.58 for each additional inch. Piping Unit Prices (Budget Pricing):

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The following tables include all-inclusive material unit prices and work hours for the fabrication and installation / erection of process related piping systems in Carbon Steel A 53 / A 106. These unit prices can be used for budget estimating piping on refinery / chemical plant / manufacturing process plants, the accuracy of these values could be considered +/- 15%. Pricing Basis: • • • • • •

Based on 1,000 LF of OSBL / Yard piping laid on pipe sleepers. A 53-B Std / A 106 Carbon Steel pipe schedule 40 d /d to fabrication yard / site in standard lengths (material cost included freight and waste). 7 # fittings / 3 # tees / 35 # welds Excludes steam or electric heat tracing. Excludes cranes and scaffolding. Excludes insulation.

Diameter 2009 $ Inches Cost per LF low 12.95 0.5

2009 $ Cost per LF high

2009 $ 2009 $ Cost per Cost per M low M high

15.55

42.50

50.99

1

17.85

21.42

58.54

70.26

1.5

24.71

29.66

81.06

97.27

2

34.55

41.46

113.30

135.97

3

43.47

52.16

142.59

171.11

4

56.12

67.34

184.08

220.89

6

72.31

86.77

237.18

284.61

8

89.92

107.90

294.92

353.91

10

113.59

136.32

372.59

447.11

12

137.37

164.84

450.57

540.68

14

167.73

201.28

550.17

660.20

16

190.73

228.88

625.59

750.71

18

218.02

261.63

715.12

858.14

Additions to above values: • • • • • • • •

7% - 14% for pipe fittings / bolts / gaskets and flanges 3% - 7% for hangars. 3% - 5% for manual valves. 3% - 8% for motor controlled valves. 2% - 5% for vents, drains, caps, blinds, strainers, nipples and in-line devices. 4% – 6% for sand blasting, x ray / hydro testing, hangars and field erection. 3% - 6% for piping installed 20’ and above finished grade level. 8% - 12% O/H & Profit to installing contractor and fabrication shop.

The above additions range from 33% - 63%

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Notes: multiply above (Material and labor) values by 1.15 – 1.65 for (Inside Battery Limits): ISBL applications (higher value for complex applications). Multiply by 1.07 for 300 # service. The following is a listing of various material adjustment values (specific to piping) calibrated against carbon steel A 53, A 36, A 515 and A 285C. These adjustments could be utilized to determine various OOM budget variables between differing material specifications (a word of warning this is reasonable for the material content however the installation / welding activities should separately evaluated, welding of stainless steel and other exotic materials may require 10-35% more man hours than the welding / installation of carbon steel piping systems). The following is a listing of various material adjustment values (specific to piping) calibrated against carbon steel A 53, A 36, A 515 and A 285C. These adjustments could be utilized to determine various OOM budget variables between differing material specifications (a word of warning this is reasonable for the material content however the installation / welding activities should separately evaluated, welding of stainless steel and other exotic materials may require 10-35% more man hours than the welding / installation of carbon steel piping systems). This material uplift is dependent upon size of order, for large orders use the lower uplift. Material PVC (Sch 80) CPVC (Sch 8) Base Case - Carbon Steel Material cost / LF for 2” Diameter A 53 (refer to above table for material cost)

Material uplift (Low) 0.50 0.60

Material uplift (High) 0.60 0.70

1.00

1.00

2.40 2.00 1.80 2.70 1.15 1.80 2.40 1.25 1.45 1.50 1.20 1.40 1.40 1.75 4.00 4.20 5.50 2.40 3.10 3.10 5.80 5.50

2.70 2.30 2.00 3.30 1.35 2.00 2.60 1.50 1.65 1.75 1.40 1.60 1.60 2.00 4.50 4.60 6.50 2.70 3.40 3.40 6.20 6.00

C.S. Glass Lined C.S. Kynar Lined C.S. Polypropylene Lined (Sch 40) C.S. TFE C.S. Rubber Lined C.S. Saran Lined (Sch 40) C.S. PVDF Lined (Sch 40) Aluminum S. S. 304 S. S. 316 S.S. 304 L (Sch 10) S.S. 316 L (Sch 40) FRP Glass (Solid) Inconel 625 Titanium (Sch 10) Zirconium (Sch 10) Alloy 20 (Sch 10) Monel (Sch 10) Nickle (Sch 10) Hastelloy G Hastelloy B 28

The following chart indicates budget-pricing (material only for various types of Stainless steel tubing / piping) conforming to ASTM 269 and ASTM 270 0.065 wall thickness: Note: for large orders discounts of 10% -35% are available on the following prices. Type and Diameter 304 1” 304L 1” 316L (no polish) 1” AL-6XN (polished ID / OD) 1” 317 1” 317L 1” 321 1” 347 1” Admiralty 1” 304 Sanitary 1” 304 Seamless 1” 304 Sanitary 1.5” 304 Sanitary 2” 304 Sanitary 3” 304 Sanitary 4” 304 Sanitary 6”

Material Cost per LF $4.00 $4.04 $5.46 $18.48 $4.44 $5.41 $3.90 $4.11 $4.13 $5.17 $3.77 $6.47 $8.46 $12.08 $23.00 $67.68

MH’ s per LF 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.30 – 0.65 0.40 - 0.80 0.30 – 0.75 N/A N/A N/A

Average number of fittings / valves for various C.S. / S.S. piping diameters / per 1,000 LF of process related piping systems (based on 17 process related projects) I.S.B.L. work: Pipe Diameter

0.5” 0.75” 1” 1.5” 2” 4” 6” 8” 10” 12” 18” 24”

Couplings / Elbows unions / (90 & 45 Flanges (50%) degree) (30%)

291 305 187 119 91 82 74 64 59 57 33 25

173 110 111 70 55 49 44 38 35 35 21 16

Tees / concentric - eccentric reducers (10%) 57 52 37 25 18 16 16 13 12 10 7 5

29

Caps / blinds / plugs & miscellaneous / weldolets / sockolets / nipples (10%) 58 54 37 24 18 16 15 13 12 11 6 5

Number of Fittings

Number of Valves

579 521 372 238 182 163 149 128 118 113 67 51

372 247 81 35 26 14 12.5 6.75 6.25 5.75 4.35 3.70

Copper L Type - 1,000 LF of installed pipe with 50 fittings: Diameter 0.50” 1” 2”

Material $1,717 $3,365 $10,070

Man hours 54 x $53 = Installed cost 58 x $53 = Installed cost 67 x $53 = Installed cost

Tubing Stainless Steel 304 L - 1,000 LF of installed pipe with 10 fittings: Diameter 0.50” 0.75” 1”

Material $1,785 $2,000 $2,489

Man hours 28 x $53 = Installed cost 32 x $53 = Installed cost 37 x $53 = Installed cost

Tubing Stainless Steel 316 Pharmaceutical Grade Piping Cost / LF of installed pipe (includes pipe and fittings, excludes valves): Diameter 1” 1.50” 2” 3”

Material / Labor Cost per LF $64 / LF $67 / LF $96 / LF $113 / LF

Material / Labor Cost per M $210 $220 $315 $371

Automatic Sprinkler System: Dry System Wet System

$1.84 – $2.94 / SF $1.63 – $2.73 / SF

Valves – Installation Man hours: The following man-hours apply for all material types.

Diameter

Man hours

2” 3” 4” 6” 8” 10” 12”

2.50 3 4 5 7 10 12/16

Approximate Unit Pricing per SF Area by facility type: Facility Type Warehouse plumbing Warehouse heating

Unit SF SF

Material / Labor 2.94 - 3.62 5.78 – 7.30 30

Warehouse cooling Office plumbing Office heating Office cooling Laboratory plumbing Laboratory heating Laboratory cooling Fire protection (sprinklers) Ditto extra hazardous area CO2 / Haylon

SF SF SF SF SF SF SF SF

5.88 – 7.46 1.31 – 2.17 5.51 – 8.19 4.67 – 6.72 12.86 – 17.48 5.25 – 9.35 4.94 – 9.03 1.58 – 3.36

SF

4.46 – 8.51

SF

4.73 – 10.45

Demolition & removal of C.S. / S.S. Piping (include hangars, fittings and valves) Diameter 1” 2” 3” 4” 6” 8” 10” 12”

$ Cost / 100 LF 13.97 24.10 34.97 46.62 58.12 74.34 88.73 109.04

Multiply values by 1.20 if pipe is insulated Multiply by 1.12 if pipe is steam or heat traced Note: credit the estimated cost if pipe is sold for scrap. Note: multiply above (labor man-hours) values by 1.25 – 1.80 (higher value for complex applications): Valves - Approximate Cost: use multipliers / calibration factors shown earlier for different material types, note these indicated material costs can sometimes be discounted by as much as 35% - 65% for orders greater than 10 /12 valves. Carbon Steel - 150 # Rating: Diameter 2” 3” 4” 6” 8” 10” 12”

Ball $417 $485 $617 $1,233 $2,371 $4,615 $6,177

Butterfly $938 $956 $1,188 $1,901 $4,099 $4,800 $6,156

Check $592 $773 $1,172 $1,642 $2,944 $4,347 $5,515

Valves – Installation Man hours: The following man-hours apply for all material types.

31

Gate $694 $950 $1,265 $1,847 $4,017 $4,805 $5,986

Globe $811 $1,063 $1,620 $2,600 $4,781 $9,908 $13,271

Diameter

Man hours

2” 3” 4” 6” 8” 10” 12”

2.50 3 4 5 7 10 12/16

Relief Valves, 150 pound rating:

Size

Material

Man hours

1x2 2x3 3x4 4x6

$1,746 $3,124 $3,430 $5,098

2.5 3.5 4.5 6.0

For 300 pound rating multiply above material cost by 14%, man hours remain the same as above: OOM $ Labor Cost to erect 1,000 FL of pipe with 150 # fittings n/e 15’ above grade or FFL: $ LF Cost (excludes hangars, testing, valve installation and construction equipment): Diameter in inches A 53 CS Sch 40 Ditto Sch 80 Plastic lined Sch 40 Stainless steel 304 Ditto 316 Glass C.S. Kynar Lined

1” 10.44 15.14 19.54 12.15 12.41 13.60 21.72

2” 14.42 21.27 26.36 16.35 16.80 20.37 27.71

4” 23.74 32.34 41.05 25.02 25.82 30.98 43.62

6” 34.96 51.41 61.97 37.64 38.13 N/A 63.81

8” 54.26 72.43 82.71 60.34 62.15 N/A 85.37

Multiply by 1.15 for 15’ – 25’ above grade or FFL. Multiply by 1.20 for 25’- 40’ above grade or FFL. Multiply by 1.45 – 2.10 for total installed value, excluding material cost and valve installation. Divide above values by $48 / hour to determine installation hours. Man-hour units for CS A-53 straight run pipe (OSBL): (includes cutting, handling, flanges / gaskets and erection (excludes hangars, testing, scaffolding and cranes) for pipe n/e 15’above grade / FFL. Diameter in inches Pipe / LF (handling and cutting) Production weld

2

4

6

8

10

12

14

16

18

0.11

0.18

0.27

0.37

0.49

0.55

0.63

0.72

0.83

0.65

1.95

2.50

3.30

3.75

4.35

4.85

5.50

6.0

32

Joints / flanges Elbows Reducer Tees Valves

0.45 0.85 0.81 1.3 1.25

0.93 1.8 1.73 2.55 2.25

1.35 2.75 2.55 3.85 2.85

1.75 3.65 3.35 5.25 3.35

2.13 3.9 3.73 5.85 3.75

2.25 4.15 4.03 6.25 4.5

2.45 4.45 4.25 6.75 5.5

3.23 6.2 6.15 9.25 6.5

3.33 6.45 6.5 9.75 7.35

Multiply piping handling and cutting values by 1.35 – 2.35 for ISBL piping Multiply by 1.15 for 15’ – 25’ above grade or FFL. Multiply by 1.20 for 25’- 40’ above grade or FFL. Multiply by 1.15 for SS pipe handling and cutting. Multiply piping handling and cutting values by 1.45 – 2.55 SS for ISBL piping Multiply by 1.75 - 2.25 for SS joints / flanges, elbows, reducers, tees, and valves. Multiply by 1.09 for 300 # service Piping – Black Iron with screwed fittings includes fabrication and erection labor, material and hangars. 1” (25 mm) 2” ditto (50 mm)

$19.37 / LF $31.24 / LF

$63.53 / M $102.47 / M

Ditto with welded fittings 1” (25 mm) 2” ditto (50 mm) 3” ditto (75 mm) 4” ditto (100 mm)

$18.43 / LF $26.57 / LF $36.49 / LF $50.56 / LF

$60.45 / M $87.15 / M $119.69 / M $165.84 / M

Glass Pipe includes fabrication and erection labor, material and hangars. 1” (25 mm) 2” ditto (50 mm) 3” ditto (75 mm) 4” ditto (100 mm)

$26.72 / LF $30.24 / LF $39.48 / LF $55.55 / LF

$87.64 / M $99.19 / M $129.49 / M $182.20 / M

CPVC Natural Gas Pipe (excludes trench work). 1” (25 mm) 2” ditto (50 mm) 4” ditto (100 mm)

$4.46 / LF $6.61 / LF $23.31 / LF

$14.63 / M $21.68 / M $76.46 / M

Add 20 – 40% for fittings CPVC Diesel / Gas Pipe (excludes trench work). 1” (25 mm) 2” ditto (50 mm) 4” ditto (100 mm)

$6.04 / LF $8.24 / LF $11.24 / LF

$19.81 / M $27.03 / M $36.87 / M

Add 20 – 40% for fittings

33

Approximate Unit Pricing per SF Area by facility type: Facility Type Warehouse plumbing Warehouse heating Warehouse cooling Office plumbing Office heating Office cooling Laboratory plumbing Laboratory heating Laboratory cooling Fire protection (sprinklers) Ditto extra hazardous area CO2 / Haylon

Unit SF

Material / Labor 2.94 - 3.62

SF SF SF SF SF SF SF SF SF

5.78 – 7.30 5.88 – 7.46 1.31 – 2.17 5.51 – 8.19 4.67 – 6.72 12.86 – 17.48 5.25 – 9.35 4.94 – 9.03 1.58 – 3.36

SF

4.46 – 8.51

SF

4.73 – 10.45

Budget Piping Prices CS A-106 and A-53 OSBL 2" dia 4" dia 6" dia 8" dia 10" dia 12" dia CS A-106 and A-53 ISBL 2" dia 4" dia 6" dia 8" dia 10" dia 12" dia Stainless Steel 304 ISBL 2" dia 4" dia 6" dia 8" dia 10" dia 12" dia • • • •

$ L & M Cost per LF 12.43 30.53 55.39 56.03 77.11 99.24 $ L & M Cost per LF 16.79 39.19 69.18 75.02 95.12 121.00 $ L & M Cost per LF 29.04 66.25 111.17 162.93 256.89 304.35

Includes fittings and erection Material = 60% Labor = 40% Excludes valves and valve installation Excludes X-Ray / hydro testing (5% – 10%) 34

$ L & M Cost per M 40.77 100.14 181.68 183.78 252.92 325.51 $ L & M Cost per M 55.07 128.54 226.91 246.07 311.99 396.88 $ L & M Cost per M 95.25 217.30 364.64 534.41 842.60 998.27

•

Excludes O/H & P (10% – 20%)

Labor & Materials Stainless Steel tubing (304 L) 2009 Basis Diameter 0.25” 0.50” 0.75” 1.00” •

$ Cost per LF 1.75 2.50 3.45 7.55

$ Cost per M 5.75 8.20 11.30 24.75

For total installed cost with fittings, valves, hangars, etc, multiply by 2.0 to 4.0

Pipeline OOM Costs Diameter inches 8 12 20 24 36

$ Cost per Mile / Low Range 350,000 400,000 550,000 650,000 900,000

$ Cost per Mile / High Range 450,000 500,000 650,000 700,000 1,200,000

$ M Cost Low Range 218 249 342 404 559

$ M Cost High Range 280 311 404 435 746

Typical split: Mater pipe 30% - 35% Labor/ Equip 45% - 50% Other Eng/CM 2% - 4% OHP 7% - 10% Welding OOM Data: Welding is the activity and work effort that joins metals together. Numerous situations impact the cost of welding including the following main items: • • • • • • • • • •

Labor cost - union V’s non union applications. Material costs - welding materials and gases etc. Type of welding to be performed (Manual, Automated, Orbital, Laser, Horizontal, Vertical and Overhead – SMAW / OFW / SAW / PAW / GMAW / GTAW Process or other applications) Various specifications, applicable codes and welder certification issues Electrical Energy costs Types of joints and welds to be accomplished i.e. fillet, tee, butt, V groove, bevel, J and U groove etc. Electrode various types of electrodes (materials and coatings): Warehousing and documentation related to electrodes. Construction Equipment costs – scaffold, cherry pickers and welding machines. Robotic Equipment / Orbital Tube welder related costs. Any required special treatments, grinding, electro polishing and passivation activities.

35

•

Testing of completed welds i.e. mechanical tests bore scope; destructive tests, bend tests, ultrasonic, x-ray, dye-penetration, test coupons etc. Together with appropriate documentation that supports the testing effort.

In welding there are perhaps more than seventy distinct categories or methods of “welding” or brazing and soldering. One of the most widely used methods is Shielded metal arc welding (SMAW) also known as stick or manual metal arc welding, this type of welding is by far the most widely used welding method used on construction and on repair type work, the preparation work, cutting, grinding required to form the welding joints, make the process time consuming, welding by it’s very nature is very time consuming and labor intensive effort. The (SMAW) welding method uses a consumable welding rod – electrode (stick), electrical current AC or DC is passed though the welding rod / stick, great heat is generate and the welding rod melts and forms a weld between the item being welded and the welding rod, the welding rod is used up in the process. Other widely used welding applications include TIG welding i.e. tungsten inert gas this application utilizes individual welding rods, it has a wide application and is used to join carbon steel, stainless steel, alloys and other metals together (pipe and plates), the welder strikes an arc on the pipe, plate or fabricated element being welded as described above. Another widely used welding process is MIG welding i.e. metal inert gas; MIG welding can be considered more of a “factory” method of welding. MIG welding make use of a reel(s) of wire feed of welding rod metal that allows long runs of welding / metal deposit to be competed, it’s ideal application is welding steel plates and sections together, i.e. a shipyard is a good example were one can see this welding method. Other welding processes include Oxyfuel Gas Welding (OFW), Semi Automatic Submerged Arc Welding (SAW), Manual and semi automatic Plasma welding (PAW) and Semi Automatic Gas Tungsten Arc Welding 9GTAW), brazing and soldering uses liquefied hot metal(s) to connect metals together, brazing creates a stronger linkage than is the case with soldering, soldering is generally utilized to link / tie small diameter cables / wire, electrical components and minor metal apparatus / fabrications. Autogenous welding (completed welds are required to be completely smooth on the internal and external surface of the tube / piping – no joints should be present that could capture particles flowing through the tube / pipe) is used primarily on Pharmaceutical / Microchip facilities in piping / tubing applications such as Clean in place (CIP), Steam in Place (SIP), Water for Injection (WFI) and other critical finished product lines, it is used to mitigate contamination (bacterial build up) Stainless Steel 316 L is used extensively, the welding approach utilized is were all the completed welds and the internal surface of the pipe / tube is required to be joint free / entrapment-free internally to prevent any bacterial contamination to the finished product. Full penetration (100%) welds should be aimed for. It is important to understand that any gaps, fissures, fractures including any imperfect weld joints can entrap the product / fluid flowing through the pipe / tubing, if any gaps, fissures, fractures are present they can develop into a haven for future problems and possible product contamination. Automated welding is many times utilized to lower welding production costs i.e. the main element being the cost of employing a workforce (labor costs), however the cost of purchasing the welding equipment together with it’s subsequent maintenance costs can be substantial, never the less automated welding is usually the best avenue to proceed on, on major welding projects, the best example of this is in ship building, just about all the welding is done using an automated process. Orbital welding is used in Pharmaceutical, Aerospace, Microchip and other HiTech industries. Orbital welding uses the Gas Tungsten Arc Welding (GTAW) methodology; it is used primarily on small-bore piping and tubing 2” diameter and below. Stainless Steel 316 L and some other alloys that work well in extreme / harsh operating

36

conditions are usually the specified materials that are utilized. Other industry sectors that are embarking on orbital welding in their construction process include: • • • • •

Food Production. Dairy (Milk, Butter and Cheese production). Brewery / Beverage. Nuclear / Conventional (Power Facilities). The Petro – Chemical and the Offshore Oil and Gas sector.

These industry sectors look at this approach as a practical and cost effective opportunity for welding small bore stainless steel piping and tubing. Orbital welding makes available a process to make sure construction productivity is optimized while also ensuring that the quality of the finished weld is of a high quality. Fillet welding using (SMAW) welding process for connecting various carbon steel plates, vessels, sections, channels and angles together: Labor cost includes transport of welded metals to the welding area, preparation work, measuring, initial tack welding, final welding and any necessary grinding. Thickness in inches

Unit of Measure

1/8” 3/16" 1/4" 3/8" 1/2" 5/8" 3/4" 7/8” 1”

LF LF LF LF LF LF LF LF LF

• • • • • •

$ Cost Range per LF 16 – 22 29 - 37 39 – 51 54 - 71 83 – 97 100 – 118 110 – 137 120 – 152 131 – 179

Man hours per LF * (Low) 0.18 0.34 0.45 0.62 0.97 1.16 1.28 1.39 1.53

Man hours per LF * (High) 0.26 0.43 0.60 0.83 1.12 1.37 1.59 1.77 2.08

$ Cost Range per M 51 – 72 97 – 121 127 – 169 175 – 234 272 – 317 328 – 385 361 – 447 393 – 500 431 – 607

Man hours per M * (Low) 0.59 1.12 1.48 2.03 3.18 3.80 4.20 4.56 5.02

Man hours per M * (High) 0.85 1.41 1.97 2.72 3.67 4.49 5.22 5.81 6.82

Split of (L&M) Labor = 55% Material = 45% (Construction Equipment of 5% – 10% is included in Labor value) Using $45 / per hour for a welder For applications with a good amount of repeat work, were good productivity can be achieved multiply above values by 0.75 For applications with small / difficult / intricate welding work multiply above values by 1.25 Add 8% - 12% to above for vertical / horizontal applications Add 18% - 24% to above for overhead applications

Order of Magnitude Prices: • • • • • • •

Cost per pound of deposited welding material = $13.50 – $20.50 (Labor and material) to use this method determine cubic content of weld. Weight of metal deposited in 0.25” fillet weld = 0.15 pounds per LF Weight of metal deposited in 0.25” fillet weld = 0.50 pounds per Meter Weight of metal deposited in 0.50” fillet weld = 0.30 pounds per LF Weight of metal deposited in 0.50” fillet weld = 1.00 pounds per Meter Weight of metal deposited in 0.75” fillet weld = 0.90 pounds per LF Weight of metal deposited in 0.75” fillet weld = 3.00 pounds per Meter

37

•

For tee, butt, V groove, bevel, J and U groove welds compare size (area) of weld and pro-rate above values to determine cost or cubic content of weld.

Automatic Welding Units Pipe Diameter 0.50” 1” 2” 3” 4”

Man-Hours per Weld 1.00 2.10 3.15 6.00 8.00

OOM Man-hour Units For 1” – 4” diameter pipe 2.00 – 3.50 man-hours per LF of pipe or 6.50 man-hour – 11.50 man-hours per M

Insulation The quantity take-off‘s for piping assists greatly in determining insulation requirements, the following are unit prices for both piping and major equipment. (Casil and mineral wool are more widely used in non flammable applications, foam / cellar glass type insulation is used in flammable applications)

Major Equipment Insulation: Diameter / Specification 1” thick with Alumin, cover 1” ditto SS cover

Casil

Man hours / LF

4.35

0.27

4.46

0.33

2” ditto Alumin, cover 2” ditto SS cover

4.41

0.33

4.77

0.38

3” ditto Alumin, cover 3” ditto SS, cover

7.80

0.55

8.76

0.59

Diameter / Specification 1” thick with Alumin, cover 1” ditto SS cover 2” ditto Alumin, cover 2” ditto SS cover

Mineral Wool

Man hours / LF

4.06

0.23

4.29

0.31

4.35

0.32

4.65

0.35

38

SF / $ Material Cost M.H. s x $48 = installed cost x $48 = installed cost x $48 = installed cost x $48 = installed cost x $48 = installed cost x $48 = installed cost SF / $ Material Cost M.H. s x $48 = installed cost x $48 = installed cost x $48 = installed cost x $48 = installed

3” ditto Alumin, cover 3” ditto SS, cover

8.64

0.54

8.79

0.57

Diameter / Specification 1” thick with Alumin, cover 1” ditto SS cover

Foam

Man hours / LF

2.61

0.26

2.97

0.29

2” ditto Alumin, cover 2” ditto SS cover

3.37

0.30

3.58

0.32

3” ditto Alumin, cover 3” ditto SS, cover

7.21

0.50

7.39

0.55

cost x $48 = installed cost x $48 = installed cost

Foam:

Piping Insulation: Casil LF/ $ Material Cost Diameter / Thickness 2” dia 1” thick with Alumin, cover 2” dia 1” ditto SS cover 3” dia 1” ditto Alumin, cover 3” dia 1” ditto SS cover 4” dia 1” ditto Alumin, cover 4” dia 1” ditto SS cover 6” dia 1” ditto SS cover 6” dia 1” ditto Alumin, cover 8” dia 1” ditto SS cover 8” dia 1” ditto Alumin, cover

M. H. s

Material Cost / LF 3.66

M.H. / LF x $48 / Hour 18 ditto

4.04

.22 ditto

4.68

.21 ditto

5.09

.23 ditto

5.70

.20 ditto

6.24

.23 ditto

8.38

.25 ditto

7.74

.21 ditto

10.82

.26 ditto

10.31

.22 ditto

39

SF / $ Material Cost M.H. s x $48 = installed cost x $48 = installed cost x $48 = installed cost x $48 = installed cost x $48 = installed cost x $48 = installed cost

8” dia 2” ditto SS cover 10” dia 1” ditto Alumin, cover 10” dia 1” ditto SS cover

16.26

.36 ditto

11.87

.27 ditto

12.63

.33 ditto

Mineral Wool LF/ $ Material Cost M. H. s Diameter / Thickness 2” dia 1” thick with Alumin, cover 2” dia 1” ditto SS cover 3” dia 1” ditto Alumin, cover 3” dia 1” ditto SS cover 4” dia 1” ditto Alumin, cover 4” dia 1” ditto SS cover 6” dia 1” ditto SS cover 6” dia 1” ditto Alumin, cover 8” dia 1” ditto SS cover 8” dia 1” ditto Alumin, cover 8” dia 2” ditto SS cover 10” dia 1” ditto Alumin, cover 10” dia 1” ditto SS cover 10” dia 2” ditto Alumin, cover 12” dia 1” ditto Alumin, cover 12” dia 1” ditto SS cover

Material Cost / LF

Foam LF/ $ Material Cost

3.68

M.H. / LF x $48 / Hour .19 ditto

4.12

.22 ditto

4.76

.21 ditto

5.26

.23 ditto

5.73

.20 ditto

6.27

.24 ditto

8.49

.25 ditto

7.78

.21 ditto

10.49

.26 ditto

9.64

.22 ditto

14.54

.35 ditto

12.00

.28 ditto

13.07

.32 ditto

3.68

.36 ditto

4.08

.33 ditto

4.76

.40 ditto

M. H. s

40

Diameter / Thickness 2” dia 1” thick with Alumin, cover 2” dia 1” ditto SS cover 3” dia 1” ditto Alumin, cover 3” dia 1” ditto SS cover 4” dia 1” ditto Alumin, cover 4” dia 1” ditto SS cover 6” dia 1” ditto SS cover 6” dia 1” ditto Alumin, cover 8” dia 1” ditto SS cover 8” dia 1” ditto Alumin, cover 8” dia 2” ditto SS cover 10” dia 1” ditto Alumin, cover 10” dia 1” ditto SS cover

Material Cost / LF

M.H. / LF x $48 / Hour .23 ditto

3.54 3.40

19 ditto

4.26

.20 ditto

4.70

.25 ditto

5.71

.26 ditto

5.03

.21 ditto

7.75

.28 ditto

8.59

.24 ditto

9.31

.30 ditto

10.75

22 ditto

14.35

.36 ditto

11.67

.27 ditto

12.90

.32 ditto

Electrical Work Estimating Data: Detailed and electrical cost estimates cannot usually be prepared until after a reasonable amount of detailed design / engineering has been completed, usually 30 % 60%. This modus operandi is time and resource consuming, especially if the proposed project is a funding study. The following unit prices should assist the cost engineer / estimator and / or project manager in preparing front end / semi detailed cost estimates. These unit prices are accurate to +/- 15%. A reasonably accurate +/- method of estimating labor and material electrical costs is as follows. Motor H.P. Rating

Cost per LF

100’

150’

5 10 15 25 50 75 100

$40.19 $43.96 $47.86 $58.49 $77.91 $91.43 $102.88

$4,019 $4,396 $4,786 $5,849 $7,791 $9,143 $10,288

$6,029 $6,595 $7,179 $8,773 $11,688 $13,714 $15,431 41

250’

$10,049 $10,991 $11,965 $14,621 $19,478 $22,859 $25,720

Determine H.P. of each motor and use the above value for 100’, 150’, or 250’, (note the typical length of cable / conduit from a motor to its panel board station / starter is 150’) this should provide a budget estimate with an accuracy of +/- 10%. The above data is based on the following specification. Cable tray (75%) / Conduit (25%) cable, terminations / hook up connections / splicing / fittings, start –stop / emergency shut down disconnect switch (on-off light) and any miscellaneous minor items etc. assumes an M (45%) & L (55%) split. For explosion proof applications uplift the above values by 20% 35%. Another approach is to count the number of drives and multiply by $16,900, this value includes MCC’ s, new starters, cable, cable tray, lightning protection, lighting and all hook-up’s and terminations. The “all in” unit material prices and man hour units embody all electrical and bulk materials and electrical labor scope activities essential for an all-inclusive and working system, i.e. unloading, temporary warehousing, material distribution, the actual materials, electrical installation units including if required start / stop push buttons, breakers, a percentage of the sub station / switch gear / motor control center, conduit / and or cable tray, pulling and installation of power and control cable, terminators, miscellaneous brackets / supports, sealing of floor and wall penetrations, system testing and commissioning. The estimating units are an average of Class 1, 11 and 111 Division 1 & 2 service: Work Item Warehouse service & distrib, 600-ampWarehouse lighting & powerWarehouse alarm & emerg lightingOffice service & distrib, 1,000-amp Office lighting & power Office alarm & emerg lighting Laboratory service & distrib, 800-amp Laboratory lighting & power Laboratory alarm & emerg lighting 5kV copper 3C wi PVC cover # 1 Ditto 4/0 15 kV ditto # 1 Ditto 4/0Mineral Insul cable 600 v #8 Ditto # 2 Ditto 4/0230 v 5 HP 230 v 10 HP 230 v 25 HP 230 v 50 HP 230 v 100 HP 230 v 250 HP 460 v 5 HP 460 v 10 HP 460 v 25 HP

Unit SF SF SF SF SF SF SF SF SF LF LF LF LF CLF CLF CLF Ea Ea Ea Ea Ea Ea Ea Ea Ea

42

Material 1.13 7.09 1.27 1.19 9.22 0.41 1.53 9.26 0.83 9.29 16.75 13.79 23.78 368 756 1,523 788 1,197 1,843 3,612 8,486 21,893 887 898 1,202

M.H.s incl incl incl incl incl incl incl incl incl .05 .06 .09 4.60 6.50 10 18 24/28 34 48 72 84 18 20/24 28/32

460 v 50 HP460 v 100 HP460 v 250 HP0.5” dia rigid galv, steel conduit1” dia ditto2” dia ditto 4” dia ditto 12” wide galv, cable tray, 6” rung space: 24” ditto 200 Amp panel board 24 circuits 4’ x 2’ Fluorescent steel, flush 3 lamp 400 watt mercury vapor high bay 120 v Switch gear 800 amps 120/208 v 25’ Aluminum floodlight pole excl, light Main control room panel Local panel board Wire connections 600 V P & C Ditto 3Kv / 5 Kv: Ditto 15 Kv: Rigid metal conduit 1” Ditto 1.25” – 2” Ditto 2.5” – 4” Wire / cable 1/C & M/C, # 6 & greater Ditto 1/C, # 8 & smaller Power Plant per KW (range) Ditto 10 KW

Ea Ea Ea LF LF LF LF LF LF Ea Ea Ea Ea Ea LF LF Ea Ea Ea LF LF LF LF LF

6 2,105 4,158 52 9,781 96 1.63 .15 3.94 .22 6.67 .27 19.11 .40 11.18 .14 15.12 .22 563.85 12/16 129.57 1.25 456.75 3.50 11,670.75 120 4/6 1,391.25 N/A 28 N/A 24 N/A 0.25 N/A 3.50 N/A 5.00 N/A 0.20 N/A 0.25 N/A 0.60 N/A 0.035 N/A 0.015 $0.47 million - $0.735 million $4.46 million - $7.19 million

Instrumentation Estimating Data: In many cases a significant engineering effort needs to be completed on order to arrive

at a precise cost estimate for the instrumentation / process controls scope of work, the items / data to be reviewed include: 1. Instrumentation list (preliminary or final). 2. Inspection and review of the P & ID’s. / related installation drawings. 3. Detailed quantity take-off ’s. (shopping list of instrument devices & cable / control wire, etc.). 4. Preliminary / Outline / Detailed specifications / Design Philosophy. 5. Up to date material prices / labor rates / estimating catalogs, etc. 6. Vendor quotes / pricing. This activity is to say the least is a very time / resource intensive effort and many times the cost and effort can not be warranted if the proposed project is a study or has a marginal ROI, many times the instrumentation scope of work can be estimated as a percentage of the major equipment cost, this is a widely used method. On the other hand, this approach is imprecise at best; available historical data from many sources in 43

the “process” related industry confirms that a value of between 15% to 60% of the major equipment F.O.B. purchase price, will provide sufficient dollars to install a complete instrumentation system, the split of this dollar value is typically 50 / 50 labor and materials. Typically at the early stages of a project there is no more than a preliminary major equipment list and some basic plot plans to be had, when this is the case a useful estimating approach is to count the major equipment items and multiply this number of pieces of major equipment by $15,000 to $20,000 the resulting value will provide an adequate starting dollar budget for the instrumentation scope of work. Another conceptual estimating method is to count the “bubbles” on the P. & I. D.’s and to multiply the number of bubbles by $2,460 (L&M 50/50, L = $1,230 M = $1,230). A similar method is to use $1,500 / $2,500 per I / O for a new control system and $800 / $950 per I / O for extending an existing control system. The following is a listing of budget instrumentation costs related to categories of major equipment, the values include level, flow, pressure, temperature, alarms and devices, the costs include the purchase, installation, together with 50’ of conduit and control cable, these values are direct costs, add 30- 60% to capture in-direct costs, plus programming is excluded, these values do no not include control room systems i.e. TDC 3000 type costs, these values are budgetary and can be considered +/- 20% accurate.

Ref #

Major Equipment Item

$ Material Cost

$ Labor Cost

Total

Man-hours

1

Compressor (each stage) Condenser Evaporator Heat exchanger Heater Incinerator Pressure leaf filter Pump Reactor Reboiler Tank Pressure Tank storage Tower Vessel Pressure

1,939

1,219

3,158

23

6,372 5,808 6,129

4,322 3,879 3,879

10,694 9,687 10,008

81 73 73

13,565 8,379 3,081

8,312 4,311 1,773

21,877 12,690 4,854

156 81 33

1,640 20,570 12,812 2,382 1,696 24,105 13,876

1,153 12,745 6,207 1,441 1,219 18,287 8,689

2,793 33,315 19,019 3,823 2,915 42,392 22,565

22 240 117 27 23 344 163

2 3 4 5 6 7 8 9 10 11 12 13 14

• • •

•

For detail design / EPC services (add 10% - 15%) For Construction management (add 4% - 7%) For field in directs (add 30% - 60%) For contractors markup (add 7% - 10%)

The following is a listing of some key instrumentation items.

44

Instrument Device

Pressure relief valve 2 “ Pressure relief valve 4 “ Electrical Indicating Controller Orifice plate 2” dia 300 # Ditto 4” dia 300 # Ditto 6” dia 300 # Differential pressure switch Orifice union Combustion control alarm switch Position Indicating Meter Gas Regulator Flow switch Sight Glass Flow Meter Electric Flow Transmitter Indicating Controller Annunciator Point Alarm Switch Thermowell Solenoid Valve Push Button Station Level Indicator Electronic Thermocouple temperature control 2” Control Valve150/300 lb CS Actuator 4” ditto 6” ditto 2” ditto SS 304/316 4” ditto 6” ditto Thermocouple temperature control 12” CS liquid level gauge 1” x 2” 300 lb safety relief valves 2” x 3” ditto 2” dia electronic flow transmitter 4” ditto 4” electronic liquid level transmitter Electronic pressure transmitter 2,000psi Electronic temp transmitter Local temperature gauge Local pressure gauge Ditto with diaphragm, seal Level transducer with flange O2 Analyzer Chromatograph E / P Converter PIC Electronic Conductivity Probe Turbine meter 4” dia Analyzer Indicator 45

Material $ Cost

M. H. s

excluded excluded excluded 149 231 270 excluded excluded excluded excluded excluded excluded excluded excluded excluded excluded 184 446 excluded excluded excluded 998 excluded 4,279 6,746 9,618 6,694 11,965 19,325 excluded 452 1,859 3,035 3,927 4,573 2,420 1,397 924 205 193 607 914 31,836 55,860 1,607 15,908 357 4,006 111

2.4 3.4 17.5 2.5 3.5 6 2.5 2.1 2.1 6.6 2.5 2.1 2.5 4.4 10.7 16.5 0.8 0.8 1.7 2.1 2.5 excluded 2.4 3.00 4.50 6.00 3.00 4.50 6.00 2.1 4.50 2.50 3.00 3.50 4.50 6.00 6.00 6.00 2.00 2.00 6.50 6.50 220 240 4.50 116 3.00 6.00 2.50

Flow ratio / indicator controller Combustion control flame arrester Pressure indicator Electronic temperature recorder Differential Pressure Gauge Differential Pressure Transmitter

2,373 excluded 1,554 excluded $174 $1,820

8.50 10.0 2.5 16.0 1.50 2.50

Robotic Systems: 2009 Pricing Basis: The following are budget pricing and installation costs associate with a number of industrial robots. Type / application

Cost d/d to site

Painting / finishing robot multi axis 15 pound load electric – servo reach 70” – 80” reach unit weight 1,050 – 1,250 pounds (shipped to site in 4-7 pieces) Welding robot multi axis 35 pound load electric –servo reach 60” – 70” reach unit weight 800 – 950 pounds (shipped to site in 6-9 pieces) Welding robot multi axis 60 pound load electric – servo reach 70” – 90” reach unit weight 800 – 950 pounds (shipped to site in 69 pieces) Material handling / packaging / clean room application multi axis 15 pound load electric – servo reach 30” – 50” unit weight 120 pounds (shipped to site in 58 pieces) Material handling / packaging / clean room application

$45,150 - $56,175

Installation man hours (does not include integration / programming) 6 - 12

$58,275 - $76,650

6 - 10

10% – 30% of unit cost

$63,525 - $85,680

6 - 12

10% – 30% of unit cost

$32,025 - $41,685

4-8

10% – 30% of unit cost

$35,385 - $43,575

4 - 10

10% – 30% of unit cost

46

Integration costs

10% – 30% of unit cost

multi axis 25 pound load electric – servo reach 40” – 60” unit weight 220 pounds (shipped to site in 58 pieces) Material handling / clean room multi axis 15 pound load electric – servo reach 30” – 50” unit weight 330 – 450 pounds (shipped to site in 5-8 pieces) Material handling palletizing / depalletizing multi axis 100 pound load electric –servo reach 50” – 70” unit weight 1,500 - 1,750 pounds (shipped to site in 5-8 pieces) Material handling / palletizing / depalletizing / packaging multi axis 350 pound load electric –servo reach 70” – 120” unit weight 3,350 - 4,200 pounds (shipped to site in 5-8 pieces) Material handling / palletizing / depalletizing / packaging multi axis 550 pound load electric –servo reach 90” – 140” unit weight 3,800 - 4,800 pounds (shipped to site in 6-10 pieces)

$73,185 - $88,830

8 - 12

10% – 30% of unit cost

$70,350 - $89,880

6-8

10% – 30% of unit cost

$78,000 - $90,800

12 - 16

10% – 30% of unit cost

$89,250 - $111,300

16 - 20

10% – 30% of unit cost

Note there are currently more than 1,000,000 robotic welding / material handling machines in operation worldwide in 2003 according to the UN/ECE and this number is expected to grow dramatically in the next decade or two. Reconditioned machines/ units can cost anywhere from 20 – 50% of the above values

47

The following are budget pricing and installation costs associate with a number of industrial wrappers / palletizes, case erectors roller conveyors and various material handling equipment. 2009 Pricing Basis: Type of Equipment Stretch Wrappers (Rotating)

Palletizes / Wrapper

Case Erector

Case Sealer

Specification

Cost in $’s

Turntable speed 1 – 10 RPM, Maximum weight 4,000 pounds, turntable diameter 60”, maximum load size 48” length x 48” wide x 72” high, turntable electric motor 0.75 HP TEFC motor, plastic film 50 – 150 gauge Footprint of equipment 15’ x 20’ 2,000 boxes per hour, maximum pallet size 48” x 48” Palletized load height 108” Electrical requirements 460 Volts, 60 Amps (Lantech) 10 – 20 cases per min, maximum case size 20” L x 12” W Electrical requirements 115 Volts, 20 Amps 10 – 20 cases per min, maximum case size 24” L x 18” W x 18” H Electrical requirements 230 Volts, 15 Amps

10,537

Installation Man hours 10

191,468

22

37,170

8

14,648

8

Roller Conveyors in 10’ section: (2009 Pricing basis) Specification Speed Weight capacity

Gravity Feed

Electrically driven standard duty 25 FPM 4,500 #

N/A 3,500 #

48

Electrically driven standard duty 25 FPM 7,000 #

Width Frame Roller centers Electric drive

48” 4” x 0.25” channel, with 3” cross braces 3.50” N/A

Cost per 10’ section

48” 4” x 0.25” channel, with 3” cross braces 3.50” 0.50 HP TEFC AC motor $971

$289

48” 4” x 0.25” channel, with 3” cross braces 3.50” 0.75 HP TEFC AC motor $1,360

Warehouse Miscellaneous Equipment (2009 cost basis) Type of Equipment

Cost

Remarks

Fork Lift (Hyster / Daewoo / Clark / Pettibone / Mitsubishi) Electric Ditto with moving cab (25’ high Crown) Personnel Cart (Golf Cart) (Taylor – Dunn / E-Z-Go) Tennant Floor Sweeper Battery charger (Exide / Ferro Five) Volts 208 / 240 / 480 - 37 / 32 / 16 Amps

$32,424

N/A

$48,153

N/A

$7,219

N/A

$20,496 $6,153

N/A N/A

Warehouse / Material Handling Equipment:

The following are SF / M2 costs related to storage racking, the pricing basis is 2009: Description

10' high metal racking 10' - 20' ditto 20' - 40' ditto

$ SF / Cost of Racking footprint $14.18 $29.24 $46.20

$ M2 / Cost of Racking footprint $152.58 $314.62 $497.11

* Allowance for bar coding system: $100,000 - $250,000 for a 30,000 SF / 2,800 M2 Warehouse facilities. Painting Primer & 2 coats of paint to the following: Description Pipes up to 4” dia / 100 LF Ditto 4” to 8” Ditto 8” to 10” Ditto 10” to 12”

Material 7.14 10.08 25.73 40.64 49

M. H.’ s 2.50 4.50 6.50 8.00

Sprayed acrylic paint / SF

1.47 – 3.52

incl

Typically liquids and solids type chemical plants / facilities fall into one of the following categories / major equipment (M.E.) multipliers. These multipliers apply to North American plants. TYPE OF PLANT Chemical - Liquids Chemical - Liquids / Solids Chemical - Solids Pharmaceutical Power Steel

LOW RANGE M.E. Multiplier 3.75 3.25 2.50 1.75 2.00 1.50

MEDIAN M.E. Multiplier 5.00 4.50 3.75 2.50 3.30 2.00

HIGH RANGE M.E. Multiplier 6.25 5.75 5.25 4.50 4.00 2.50

Low Range: In general is an open structure, has a high level of carbon steel piping, an unsophisticated instrumentation / control system, open shop construction workforce and a normal construction schedule, most probably located on U.S. gulf coast. Median Range: More often than not is a combination of enclosed / open structure, has an assortment of carbon steel and stainless steel piping (60% C.S. and the balance S.S. or better), a reasonably sophisticated instrumentation / control system, open shop or a combination of union construction workforce and a normal construction schedule. High Range: Usually the major equipment is housed in an enclosed structure / building, has an assortment of carbon steel and a high content of stainless steel piping (30% C.S. and the balance 70% S.S. or better), has a state of the art instrumentation / control system, open shop or a combination of union construction workforce and a fast track construction schedule, is a hazardous process, the process is based on new technology, the project will utilizes modular construction concepts, the work involves upgrading / modernizing various systems. Other factors • • • • • • • •

Royalties / licensor fee’s 0.25% - 3.5% of M.E. (could be more in many cases, use quoted value were possible) Vendor assistance 0.5% – 1.5% of M.E. Spare Parts 2.5% to 5% of major equipment cost Spare Parts 5% to 7.5% of major equipment on complex process facilities Operator Training 0 to 2.5% of major equipment Operator training 2.5% to 5% of major equipment on complex process facilities Freight 3% to 5% of major equipment cost. Overtime / shift work 0 –10% of direct labor, plus the same value specific to the indirect values less the design effort.

The following is a discussion on the merits / advantages and some disadvantages of utilizing modular construction components. Some of the initial observations / Benefits that modular construction can provide are:

50

Condenses the overall construction effort Lessens the number of field labor hours Diminishes interference of existing facility / plant production operations Cuts down on the amount of check out / punch list time Curtails potential start-up problems Optimizes facility commercial operations Modular construction methods have for decades been utilized in the offshore oil industry and to some extent in the Chemical / Process industry. The first question that needs to be asked when considering the path forward for the detailed design of a future manufacturing / process project is what category of engineering / construction should be applied. Conventional methods (stick built) Or modular / pre-fabricated systems Or a combination of both approaches Like in all engineering / construction decisions there are numerous issues to take into account when selecting the optimum approach. These topics / considerations include: Client’s requirements / standardization for future applications High quality appearance Fabricated / Constructed off site optimizing the need for site based labor The project will need to be broken out into various elements what will be stick built and what will be modularized Can modules be ordered / purchased as fully completed – functional units, i.e. with load centers, control valves, complete with installed instrument devices, motors, PLC’s and any other features What will be the hook-up requirements for piping, cable and control wiring Future maintenance considerations Future modifications Expansion considerations Costs / Life cycle Ease of installation Schedule / Fast track construction Undemanding future alteration / modifications Plus’s and minus’s of Conventional methods (stick built) V ‘s modular / pre-fabricated systems Work can start relatively quickly. No cost premium for stick built applications. Need for qualified workers for short / long periods of time, could be shortages of qualified workers in certain areas, which could help the case for modules / preassemblies. Training of workers to fabricated sophisticated stick built systems is not really required. Waste / cutting and dust from construction activities are a problem, especially if other phases of the project have been completed. 51

As has been mentioned earlier a good cost estimator / cost engineer is an invaluable asset to any organization, just as a bad cost estimator / cost engineer could be a real danger to any profit motivated organization. The successful cost estimator / cost engineer must have an open and inquiring mind, he or she must have a command / knowledge of “process related” business intelligence, he or she must be a speed reader of trade publications, vendor publication data / pricing, cost related journals / cost estimating articles / publications, he or she must keep up to date with computer / technology advances, new estimating tools / data bases and electronic cost sources, computerized spreadsheet methods, new construction equipment and support systems, and product modifications that take place on a constant basis in today’s construction industry, he or she must be able to estimate the margin between what the business will bear and what the real cost is to execute the “EPC project”. An in depth exploration / search / assessment of current specific data sources / published work dealing with capital cost estimating and specifically “Process related Conceptual / Front End Estimating” indicates a real need for current / real time comprehensive front end / conceptual capital cost estimating data. There is a fair amount of “detailed” cost estimating data in the marketplace, much of it biased towards “general construction”, i.e. housing, schools, office building, hotels, etc, but no one publication has been developed to service “Front End Conceptual Estimating” for work specific to the process / manufacturing / chemical / refinery industries, hence the reason for the production of this data source, rookie cost estimators / engineers frequently find difficulty in obtaining rules of thumb / historical norms / instructions / tutoring on how to prepare / compile a Front End / Conceptual Cost Estimate, it is the intent that this database / document and subsequent updates will fill / satisfy this current void. TYPICAL DETAILED EPC ENGINEERING MAN-HOUR BREAKDOWN: The following is a characteristic Engineering, Procurement and Construction (EPC) detailed breakdown of detailed design man-hours for a “process” related project. The data is based on historical data for small to large ($3-$65 million T.I.C.) sized projects, This EPC effort is many times executed on a lump sum basis with change orders for additional or reduced scope. Detailed (EPC) Engineering Man-hour Breakdown Function Project Management

Design, Drafting and CAD

Description / Task Project Manager / Project Engineer Chemical / Process Engineering Design Civil / Structural (Drawings & spec’) Architectural (ditto) Electrical (ditto) Instrumentation (ditto) Mechanical (ditto) Building services / utilities / piping S/T Civil / Structural / 52

Man-hour Percentage

M.H.’ s on a typical 10,000 assignment

7.50%

750

3.50 (Heat balance PFD’s) 2.00 1.00 3.50 3.00 3.50 2.50 19.00% 8.50

1,900

Architectural (ditto)

(Engineering Deliverables)

Contracts / Procurement

Project Controls / Support Services / Accounting

Document Control / Office Administration

Equipment (ditto) Piping (P & I D’s) (ditto) Electrical (ditto) Instrumentation (ditto) Mechanical (ditto) S/T Purchasing / Contracts Inspection QA / QC Expediting / Transportation S/T Estimating / Estimating Database Mgmt Cost Engineering / Return Data Planning / Scheduling Value Engineering Accounting Computer support / IT Library /Technology services RFQ ‘s / Bidding / Proposals / Sales S/T Secretaries Document control Office admin / HR Construction support / Safety S/T

Total

3.50 14.50 5.00 6.00 5.50 43.00% 3.50 1.50 1.50

4,300

6.50% 3.50

650

2.50 2.50 0.50 1.25 1.00 0.75 0.50 12.50% 3.50

1,250

5.00 1.00 2.00 11.50% 100.00 %

1,150 10,000 M.H. ’s

The above would typically be between 9% and 14% of the Direct Construction and in direct cost. Construction Management would be 4% to 7% of the same cost. PROJECT MANAGEMENT ENGINEERING PROCUREMENT & PROJECT CONTROL INFORMATION The subsequent lists below are typical reporting deliverables required for a $10-$65 million “process related” EPC project. Project Management 1

Deliverables

Weekly

Project status report, summarizing major goals achieved problem areas: reporting current status of Engineering / Detailed Design / Procurement 53

BiWeekly

Monthly

X

X

2 3 4 5 6 7 8

Engineering / Detailed Design / Design Control 1

2 3 4 5

6

and Construction V’s planned performance. Project safety report 30 day look ahead schedule Detailed CPM schedule update PM work hours spent to date compared to original budget Scope of Work modification report EPC “S” Curves Approved client C.C. report

X

X

X X

X

X

X

X

X

X

X

X X

X X

Deliverables

Weekly

BiWeekly

Monthly

Engineering status report discipline man-hours expended to date: V’s current budget issued weekly Discipline trend bi-weekly report, i.e., civil, piping, electrical, etc Average Engineering / Design hourly cost V’s original value Third party Engineering / Consultants status report Major Activities / Deliverables drawings compiles and percentage complete / specifications completed by discipline / SOW deviation report Status of Process Data, Equipment (PFD’s) layouts, C-S-A deliverables, Process piping (P&ID’s), Electrical – Instrumentation, Insulation and any other engineering needs

X

X

X

X

X

X

X

X

X

54

X

X

X

Procurement / Materials Management / Contracts / Q.A.-Q.C. 1 2 3 4 5 6 7 8 9 10

Accounting Reports 1 2 3 4 5 6 7 8

9

Deliverables

Weekly

BiWeekly

Monthly

Purchase Inquires / Requisitions issued, biweekly Purchase Orders placed, bi-weekly / Monthly status report Contracts placed, biweekly Current commitment report, monthly Inspection Reports, QA / QC monthly M.E. status report Expediting Record Report / M.E. Status report Procurement Summary Executive Report, monthly Long lead delivery status report Warranty / spare parts status

X

X

X

X

X

X

X

Deliverables

X X X

X

X X

X

X

Invoice to clients Invoices from vendors Invoices from sub contractors Payments received Payments to vendors Payments to sub contractors Payments to 3rd parties total accounting reports Accounting report / Accruals / Commitment report / Expense status reports / Expended to date report Back charge register / scrap – salvage report / consumables report

55

X

X

Weekly

BiWeekly

Monthly

X X X

X X X

X X X

X X X

X X X

X X X

X

X

X

X

X

X

X

Construction Management / Field Activities 1

2 3 4 5

6 7 8 9 10

Deliverables

Weekly

BiWeekly

Monthly

X

Monthly site / field cost statement, by major bid package / WBS / by area, C.O.A. ‘s with total to date costs & final forecast Sub Contract status report / Major quantities installed Field labor efficiency status report, monthly Site / Field scope / change order report, monthly Batch Plant / Bulk Material / Major Equipment receiving report Construction Equipment utilization / Local Purchasing Report Milestones / Percentage complete per week Safety Report, weekly Rental / leased construction equipment report Field manpower report (daily headcount report) / Visitor log

X

X

X

X X

X

X

X

X

X

X

X

X

X

X

X

X X

X X

X

Note this field information / reporting system is issued to both the P M and Project Control groups for integration into the PM monthly status report. Project Control Issues 1

2

Deliverables

Weekly

BiWeekly

Monthly X

Monthly cost report: by work breakdown structure by area, with total to date costs & final cost impact Weekly change order / trend report including actual and potential change orders

X

56

3 4 5 6 7 8 9

Field change order log / Quantities installed report / Trend reports Value Engineering Monthly Report / Biweekly Trend report Bi-Monthly Cost Management Status Executive Cost / Schedule Summary Report 30 / 60 / 90 day look ahead schedule Project cash flow report Expended and Committed funds report Monte Carlo Risk Analysis report indicating contingency funding requirements / Contingency run down report

X

X

X

X

X

X X

X

X

X

X

X

Note there are other project specific reports in addition to the above, such as: • • • • • • • • • • • • •

Close out reports Final account reports Punch list reports System acceptance / handover reports Insurance status log Purchase order log Change order log Bid opening sheets Major Equipment Bid summary Addendum / Bulletin log Inspection / Expediting status reports Receiving reports Back charge log

Which need to be compiled as an ongoing project related activity? To summarize some of the points made earlier in this data source: The profession / activity of a Project Control Engineer (this includes capital cost estimators / cost engineers / planners etc.) has been in the last couple of decades been a third or fourth career choice / profession and a profession that “rookie” engineers / business major’s have to a large extent steered clear of, due in part to the non glamorous appearance / appeal of the job function (appears to be akin to accounting), i.e. the eye shade and adding machine look, young engineers all want to be Project Managers when they leave college !!!, it’s only after the first six months of work that they realize that there is a lot to learn in this EPC business, however in the last 5 – 10 years many young engineers now 57

realize that starting off there career in “Project Controls” can be a smart move, more and more Project Control engineers are being promoted to Project Managers and eventually migrating into the ranks of upper management. Many owner type companies i.e. Fortune 500 companies and some of the major EPC companies have dedicated staffing (data retrieval / collection) resources that collect / calibrate in-house proprietary return historical material costs and man hour data production rates that is calibrated for use on there future capital projects. Topics the cost estimator / engineer must consider that could impact the final cost of a project includes the following: • • • • • • • • • • • • • •

Size of Project (small or large) Location of Project (North America or Overseas) Completeness of Engineering Deliverables Timing of the Estimate (due date) Contract Clauses (L. D.’s. Performance Guarantees, insurance requirements and payment terms): Site Specific Items (Access / Egress, Operating Plant) Economic / Business climate (Inflation, Cost Increases and shortages of key materials, such as steel and plywood) Type of Contract Labor Factors (Productivity, Union / Non Union Labor) Regulatory Permits Weather conditions (winter work requiring snow removal or summer work were extreme hot weather is encounter that typically impacts labor productivity): Completion Date (overtime / shift work) Quality of Engineering Deliverables / Specifications Type of Project (New / Revamp / New Technology)

A mixed bag of numbers is of little use to anyone involved in the construction process if its estimate basis is not consistent and the estimating effort is not fully thought out, i.e. the scope of work and the estimate format are flawed. The point and focus of this frontend / conceptual estimating database is to provide an up to date tool for construction professionals that will assist in the compilation of more accurate, timely and dependable front –end / conceptual CAPEX estimates. Conceptual / Front End cost estimating is a tremendous business tool, as we all know many times the scope and timing of capital projects will typically be subject to change during the projects life cycle, however this resource / tool can be used to give details or support the decisions and the genesis of the project(s) scope and how it was developed and possibly modified, the front end / conceptual estimate can be used as the audit trail of why it was adjusted, it can present the history of what was originally (scoped out) and estimated / planned versus what was actually engineered and built, used correctly the conceptual estimator can benchmark his or hers conceptual estimating library with the return cost / man-hour data from the completed project and calibrated there current library for future front end / conceptual activities. Bear in mind that the Cost Estimator / Cost Engineer is a vital member of the Project management team, his or hers suggestions and advice can have a major impact on the future of the EPC project.

58