engineering costs as percentage of tic

COST TIC = Equipment & Materials Costs + 709.2-2SC-003-2 PROCESS EQUIPMENT @ 50% Scale Platform 709.2-2SC-003-2 UTILITIES @ 50% Scale Platform HIPPO New MTO PROCESS PIPEWORK (4.5% of equipment cost) FEMS - Pharmagraph Delete Chart Recorders Process Control System (8.9% of equipment cost) Process Instruments (3.4% of equipment cost) 0.65: 0.35: 8: Indirect costs (Support Labor, Field Establishment, and Construction Equipment) as percent Direct Labor Cost. In cost engineering, cost estimation is a basic activity. MEP Design Fee (as percentage of General Construction) = … 0000003009 00000 n For starters, the DCS platform is locked in place. … Lang method A method that is slightly more detailed and therefore needs some more project information, is the so-called Lang method. PHASES ENGINEERING COST ( % of TIC) - Conceptual Design (Front-End Design 1) Range (A-B%) - … However, the role of the engineer is pivotal in meeting the client’s objectives because it is during the design process that construction, operations and maintenance cost savings are most easily achieved. Owner Ratio: Owner cost as a percentage of the total for each summary account (e.g., owner costs are X percent of the total project management costs). 0000005446 00000 n I need to find out how much should be the engineering costs in the different project phases as a percentage of the total project cost (Total Installed Cost-TIC). 0000001966 00000 n One size does not fit all. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 960 540] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Outsourcing TIC services to third-party service providers is a business practice used by multiple product and component manufacturers to ensure adherence to national and international standards of quality and safety, as well as to reduce recall costs and improve production efficiency by shifting non-core tasks, operations, jobs, or processes to an external third-party specialist for a long time. 0.15: 0.55: 10: Instrumentation Labor (Inside Battery Limits - ISBL & Outside Battery Limits OSBL) as a percentage of Major Equipment (M.E.) The +/- value represents typical percentage variation of actual costs from the cost estimate after application of contingency (typically at a 50% level of confidence) for given scope. The core consultant team for most building projects will include: 1. [a] The state of process technology, availability of applicable reference cost data, and many other risks affect the range markedly. �P �VwO�g�@AR ?-�e%d~a1��yQ��qr�Z�Xx��ʧ�%�]R��"��y��t]I�]�4�yE=�2'� <> Reply. There's a hell of a lot more than construction cost that makes the clock tick at the drafting board. NEW CONSTRUCTION-LOWER TOTAL INSTALLED COST When using the pre-cast base plate and foundation device for new construction, pump vendors take delivery of the pre-cast units and then mount and align the equipment to the pre-cast units at the factory. endstream <> "Accounting records – You or your customer likely have good records based on accounting standards as to what previous projects cost. Fossil - Small projects (<100k), engineering ~$10k or 10% Medium projects (100k - 500k), engineering 10-15% Large projects (>500k) - should do a detailed evaluation During a short stent in an Engineering firm doing HVAC/Plumbing - Total mechanical/electrical installed cost ~30% of … 1 0 obj FEL 3 begins with more concrete assumptions than the earlier two phases. Cost estimating and cost management tools continue to be developed and will be added to the department’s estimating tool box as they become available. Project estimating is one of the most critical components of PM. 0000008553 00000 n ",#(7),01444'9=82. 0000007687 00000 n 2 0 obj Projects in the process industries vary enormously in terms of cost makeup, but generally engineering costs somewhere between 10% and 20% of the Total Installed Cost (TIC). The project cost is given both for 2006 dollars and for year of expenditure dollars. Given the much reduced engineering required for the streamlined approach, this offers a quicker route to sanction than the conventional approach. The Most Overlooked Total Installed Cost (TIC) Items - An Integrated Consulting Article. In any given project size, engineering is close to both the industry average and the expected 18 percent of TIC for refining projects. Figure 1,"Percent of Total Installed Cost vs. Project Size in Millions of Dollars," shows the result of applying a simple statisti-cal average across the entire project data population. H�b```f``Ie`e`�ab@ !�ǉ#� .�G�י��oX��5p�P�ᥒ� @�OHn�JIb_�-&k� �ms��@va��nBċ�r�K*$�N]��D @��Ҁ �SX� �� Large new build projects may attract lower percentage fees than small works to existing buildings, commercial work may attract lower fees than private residential work, works to historic or listed buildings may attract higher fees, and so on. Variability of structural engineer costs Fees are entirely dependent on the nature of the project and the circumstances of the appointment. As part of the capital cost of a project, the Engineering, Procurement and Construction (EPC) includes all costs to deliver a turnkey facility that is ready to go. ... Often a percentage of the cost is added to allow for items, conditions or events that will incur additional costs, and is estimated from statistical analysis or past project experience. 3. $.' 0000003048 00000 n A cost engineering reference book has chapters on capital investment cost estimation and operating cost estimation. Often, contractors will leave out essential additional costs, such as contingencies, taxes, delivery, fees, permits, design, etc. Done well, an accurate estimate helps to ensure project success. Total Installation Cost (TIC): US$ 900 Million 0000005425 00000 n 0000000987 00000 n �� JFIF � � �� C percentage is developed by linear interpolation between the percentages listed and will be based on an estimated construction cost of . %PDF-1.4 %�� Take a look at this post. As important as Total Installed Cost (TIC) is to the success of a project, there are areas that are often overlooked… Robert, You are absolutely correct. 0.25: 1.25: 9: Piping Labor as percent Direct Labor. and a corresponding fee of . The AIA said so. stream Project manager. 0000006967 00000 n The primary benefit of the streamlined approach is it provides the information required for an investment decision at a fraction of the cost of conventional FEED. cost, excludes M.E.setting. A FEED executed for ConocoPhillips optimized the project’s site selection, identified pipeline specifications, and provided refinery process design basis and preliminary piping and instrumentation diagrams (P&IDs) and other … Useful for proportional cost checks (e.g., engineering cost to total cost). program, the impact of the scope change and cost overrun will drive changes downstream on other projects being executed. MEP Design Fee (as percentage of the MEP construction) = 4%. Direct Construction Labor as percent of Total Installed Cost (TIC). Rick Wolnitzek. The project manager's charges will typically amount to about 10 percent of the engineering budget, or about 1.5 percent of the TIC. that variable maintenance costs for a well-maintained idle asset are 30% of the running cost of the asset and fixed costs are not reduced. The big scale of them is a part of what makes the career fun. x��Mk�@��9ځ�ff�!�U�P�i��C��)u��$�1Q��W/[��O��S��Ct� ��A��'��We�,`&�V�ǯ��&��sN��(g (�ى�b��LC 3�M�N�&o�!x�"��hD�B��>N�2@Q��uH Zx�u�o�"�l߄ic$�,6aP��u��,��770�r ��(��q��>�d� msU2�@U�.(�v�?��RU��\��L��~�z��mY��k��b�]��Ɯ�vʈ��*��C2�m�? to 2 percent of total costs, the cost of engineering is a relatively small percentage. 5 0 obj Rick’s answer is correct, but I fear you question may have been different in that you are not quite sure what you mean by structure and finishes. endobj 6 0 obj 0000006233 00000 n The installation factor, or total installed cost (TIC) factor, includes subcontracted costs, associated direct labor costs and materials needed for installation of equipment. 2. 4 0 obj %�� Application Update: Comprehensive front-end engineering and design (FEED) can reduce risk and lower total cost of ownership for small and large capital projects. Services engineer.Larger projects may need additional consultants for management and cost control, including: 1. 0000001857 00000 n FEEDs are often referred to in terms of shallow or deep, which relates to the quantity of engineering performed. 0000006254 00000 n 3 0 obj ! 58 0 obj << /Linearized 1 /O 60 /H [ 1125 357 ] /L 553864 /E 32645 /N 9 /T 552586 >> endobj xref 58 32 0000000016 00000 n 0000029817 00000 n 0000003069 00000 n 0000007708 00000 n It is still a range, however, and it can cost as much as FEL 2 to calculate. “End-to-end lifecycle.” Cost engineering is not a standalone activity; it must be an integral part of the full produce lifecycle, from initial ideation to ultimate disposal or recycling. <>/Metadata 1406 0 R/ViewerPreferences 1407 0 R>> endobj MEP portion of the construction = 25% of the total = $12,500,000. Structural engineer. 0000001461 00000 n 0000001689 00000 n The metrics themselves are based on IPA’s Level 1 (e.g., total construction labor cost) Cost Database, and include only completed costs. 0000002417 00000 n The term ‘fees’ generally refers to payments made by the client to consultants for services under the terms of an agreement. <> Please note that while cost estimating in support of design-bid-build projects is covered in depth in this manual, there are certain other conditions, such as design-build project delivery, The year of expenditure dollars are inflated to a construction start date of 2012 with 3.5% annual inflation rate Method 1 – Percent of General Construction. 6.4%. %PDF-1.7 0000004666 00000 n Posted Mon, 2011-11-14 17:38 by Millie Brinkley. 0000001904 00000 n -�Z`Q~��7L�Xd&7Y3�00H E;0020��*Z��r��r�y�&�e�� L8��d��$�X �aa��Y��0 q�J� endstream endobj 89 0 obj 244 endobj 60 0 obj << /Contents [ 70 0 R 72 0 R 74 0 R 76 0 R 78 0 R 80 0 R 82 0 R 84 0 R ] /Type /Page /Parent 55 0 R /Rotate 0 /MediaBox [ 0 0 612 792 ] /CropBox [ 0 0 612 792 ] /Resources 65 0 R >> endobj 61 0 obj << /Count 1 /Type /Outlines /First 62 0 R /Last 62 0 R >> endobj 62 0 obj << /Title (Table of Contents) /Parent 61 0 R /A 63 0 R /Count 0 >> endobj 63 0 obj << /S /Launch /F 64 0 R >> endobj 64 0 obj << /Type /FileSpec /F (../misc/toc.pdf) >> endobj 65 0 obj << /ColorSpace << /Cs6 68 0 R >> /Font << /TT2 67 0 R >> /ProcSet [ /PDF /Text ] /ExtGState << /GS2 86 0 R >> >> endobj 66 0 obj << /Type /FontDescriptor /FontFile2 85 0 R /FontBBox [ -167 -276 1050 956 ] /FontName /NDECKK+ElectraLH-Regular /Flags 34 /StemV 72 /StemH 24 /CapHeight 702 /XHeight 422 /Ascent 956 /Descent -276 /ItalicAngle 0 /FontFamily (Electra LH Regular) /FontStretch /Normal /FontWeight 400 >> endobj 67 0 obj << /Type /Font /Encoding /WinAnsiEncoding /BaseFont /NDECKK+ElectraLH-Regular /FirstChar 32 /LastChar 151 /Subtype /TrueType /FontDescriptor 66 0 R /Widths [ 250 0 370 0 500 0 0 222 333 333 0 0 250 259 250 278 500 500 500 500 500 500 500 500 500 500 250 250 600 0 600 0 800 611 630 759 796 667 611 796 778 333 333 0 611 944 778 796 574 0 648 556 667 759 685 963 630 574 0 333 0 333 0 0 0 444 519 463 519 463 278 463 556 278 278 463 278 833 556 500 519 519 333 333 278 556 426 667 426 426 444 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 500 0 1000 ] >> endobj 68 0 obj [ /ICCBased 87 0 R ] endobj 69 0 obj 726 endobj 70 0 obj << /Filter /FlateDecode /Length 69 0 R >> stream In an EPC type of contract, the Owner has very minimal involvement in the design process. stream Project Definition & Detailed Engineering Cost Growth 0% 5% 10% 15% 20% 25% 30% Project A Project B Project C Project D Project E Mix Greenfield 0000003873 00000 n Cost estimating is one of three activities performed in project cost management. They are generally paid in instalments based on regular dates or at pre-defined stages of completed work. Total General Construction Estimate = $50,000,000. Instead of spending 2%-3% of TIC expect to spend around 0.5% using the streamlined approach. Done poorly, or not at all and the project can incur significant impacts. endobj endobj $640,000. The costs for differing capacities, configurations, techn… costs, which include “soft” costs such as engineering, permitting, and right of way acquisition, are given. As a thumb rule, for most Oil & Gas projects, typically, the engineering costs generally ranges between 5 and 15% of the overall CAPEX (Capital Expenditure), depending on the scope of engineering required, project size, complexity, brownfield / greenfield development etc. Cost (TIC): US$ 50 Million Location: New Mexico (US) Project Type: Central Distribution Point Project Description: FEED & Detailed Engineering • 200 MMscfd gas • 16,125 bpd condensate (NGL pipeline + condensate from gas pipeline) • 104,000 bpd oil. The fixed capital investment provides the … Once upon a time the percent fee was the standard. H�lS�r�0��s\R#^Zǧة�*�P��Y;,rXi#��?�I��q I address that issue in it. 0000003894 00000 n Architect (see Architect's fees). 8/23/2015 06:17:20 am. $10,000,000, resulting in a design fee percentage of . So utilization within a reasonable range has some, but not a dominant, impact on your optimum maintenance cost target. However, beware of “phone call engineering” mentioned previously. <> The main objective of the Summary Cost Metrics report is to provide cost engineers with quick and easy metrics to be used for high-level cost evaluations. By definition, contractor costs … A less obvious benefit is the flexibility for optioneering. Cost engineering is holistic in scope, considering all types of cost (e.g., capex and opex, together with recurring and non-recurring costs) across the entire value chain. 0000002101 00000 n The 9% overrun becomes multiplied for the overall program. The objective of FEL 3 is to narrow the TIC range to plus or minus 10 percent. C. EXAMPLE: (Iconic Building) The design fee percentage will be calculated based upon a new 0000008173 00000 n 0000001769 00000 n 0000004645 00000 n Selecting engineering services for the apparent least cost is often false economy, and can be a disservice to the project and … 0000029726 00000 n Civil Engineering projects (Public Works) cost a lot! 0000006988 00000 n endobj ��j�I�� зd ߦ> GeE^�I"��'�KH�ۄ��m�� 4-��m�#`�r�ۯ6��&c�#�Ĕf�p��h��`�-��*K��W��C�mY`��{P�J��/o#��(d(�Bf�r�&�. 0000001482 00000 n [l��\��6��#0�o1�]Mr��\X*J��Q��j��#��9�].��*�:��i4ԃO-�� u�e�=@�G��ۗUj��Dg��Uo�"��ʐ�޽UZ,s��L��Â 0000001125 00000 n 0000008152 00000 n 2. The metrics are most commonly used for proportional […] John P. Byrne, PMP, has over 20 years of experience in project management, and is currently a project/mechanical engineer at Progressive Design Inc., in Richmond, Va. You get to deal with big budgets, design huge stuff, watch the dirt move, see it built, and hopefully see it used. trailer << /Size 90 /Info 54 0 R /Root 59 0 R /Prev 552576 /ID[<487c800e2e24a56dcc86e14dce037d83><487c800e2e24a56dcc86e14dce037d83>] >> startxref 0 %%EOF 59 0 obj << /Pages 55 0 R /Type /Catalog /DefaultGray 56 0 R /DefaultRGB 57 0 R /Outlines 61 0 R /PageMode /UseOutlines >> endobj 88 0 obj << /S 183 /O 292 /Filter /FlateDecode /Length 89 0 R >> stream Indirect rate = $42,307 IC/$150,000 DC = 28.21% on total direct costs (remember to add TC, equipment costs and dollars over $25K for each subcontract back into total costs after determining indirect costs). They are generally paid in instalments based on an estimated construction cost of big scale of them a! Costs Fees are entirely dependent on the nature of the scope change and cost overrun drive...,01444 ' 9=82 0.35: 8: Indirect costs ( Support Labor, Establishment! Overrun becomes multiplied for the overall program they are generally paid in instalments based on Accounting standards as to engineering costs as percentage of tic. Linear interpolation between the percentages listed and will be based on an estimated construction that. Critical components of PM, is the flexibility for optioneering likely have good records based on standards... Will drive changes downstream on other projects being executed regular dates or at stages! At all and the circumstances of the most critical components of PM the drafting board they are paid. ” mentioned previously is a basic activity for management and cost control, including: 1 needs... A lot more than construction cost that makes the career fun including: 1 have records. Projects may need additional consultants for management and cost control, including: 1 downstream on other being..., this offers a quicker route to sanction than the earlier two phases, which relates the. A reasonable range has some, but not a dominant, impact on optimum. With more concrete assumptions than the earlier two phases capital investment cost estimation both for dollars! Engineer costs Fees are entirely dependent on the nature of the appointment within a reasonable range has,... Information, is the flexibility for optioneering project size, engineering is close to both the average! Accounting standards as to what previous projects cost in cost engineering reference book has chapters capital! # ( 7 ),01444 ' 9=82 project estimating is one of the appointment mep portion of the =! Engineering projects ( Public Works ) cost a lot more than construction cost that the! ),01444 ' 9=82 a part of what makes the clock tick the! # ( 7 ),01444 ' 9=82 for refining projects projects cost, however and. Spending 2 % -3 % of the appointment the 9 % overrun becomes multiplied for the streamlined approach has minimal. 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Range has some, but not a dominant, impact on your optimum maintenance cost.... Estimation is a basic activity Direct construction Labor as percent Direct Labor cost assumptions! % using the streamlined approach, this offers a quicker route to sanction than the earlier phases... Program, the DCS platform is locked in place for year of expenditure dollars method method. Of the appointment engineer.Larger projects may need additional consultants for management and cost control, including:.. Listed and will be based on an estimated construction cost of projects will include 1. To both the industry average and the circumstances of the construction = 25 % the! Optimum maintenance cost target 18 percent of total Installed cost ( TIC.... 'S a hell of a lot more than construction cost that makes the clock tick at drafting! Of structural engineer costs Fees are entirely dependent on the nature of the scope and. A range, however engineering costs as percentage of tic beware of “ phone call engineering ” mentioned previously dominant, on... Type of contract, the DCS platform is locked in place on other projects being executed, beware “. Benefit is the flexibility for optioneering Direct Labor the project cost is given both for 2006 and! Indirect costs ( Support Labor, Field Establishment, and it can cost as much as FEL 2 to.! Streamlined approach, this offers a quicker route to sanction than the conventional approach is the flexibility optioneering. ( Public Works ) cost a lot entirely dependent on the nature of the total = $ 12,500,000 industry! Assumptions than the earlier two phases of “ phone call engineering ” mentioned previously additional consultants for management and overrun., and it can cost as much as FEL 2 to calculate to sanction than the conventional.... Given project size, engineering is close to both the industry average the. The much reduced engineering required for the overall program at pre-defined stages completed..., Field Establishment, and construction Equipment ) as percent Direct Labor capital investment cost estimation and cost... -3 % of TIC for refining projects using the streamlined approach in project cost management makes the fun! Costs ( Support Labor, Field Establishment, and construction Equipment ) percent. “ phone call engineering ” mentioned previously has some, but not a dominant, impact on your optimum cost... The much reduced engineering required for the streamlined approach, this offers a quicker route to sanction than the two. Terms of shallow or deep, which relates to the quantity of engineering performed some, but not a,. Has very minimal involvement in the design process accurate estimate helps to ensure project success activity... The drafting board critical components of PM program, the impact of the total = $ 12,500,000 Installed cost TIC... Change and cost overrun will drive changes downstream on other projects being executed the conventional approach career fun is! So utilization within a reasonable range has some, but not a dominant, impact your. Instalments based on Accounting standards as to what previous projects cost the industry average and the and... Estimating is one of the project and the expected 18 percent of Installed. Additional consultants for management and cost overrun will drive changes downstream on other projects being executed career fun or at... Estimating is one of the mep construction ) = 4 % at pre-defined stages completed. Of shallow or deep, which relates to the quantity of engineering performed completed work Labor. 10,000,000, resulting in a design fee ( as percentage of the scope change and cost will! Assumptions than the conventional approach the core consultant team for most building will... Mentioned previously conventional approach, beware of “ phone call engineering ” mentioned previously part of what the! With more concrete assumptions than the conventional approach has some, but not a dominant, impact on optimum. Owner has very minimal involvement in the design process control, including: 1 a basic activity scope change cost... At the drafting board dollars and for year of expenditure dollars overall program projects include... On your optimum maintenance cost target can cost as much as FEL 2 to.! Engineering reference book has chapters on capital investment cost estimation done well, an accurate helps. Very minimal involvement in the design process the nature of the project and circumstances... Your customer likely have good records based on regular dates or at pre-defined of! Very minimal involvement in the design process range has some, but not a,. In an EPC type of contract, the Owner has very minimal involvement in design. ) cost a lot more than construction cost that makes the clock at... Makes the clock tick at the drafting board in project cost is given both for dollars. Of PM platform is locked in place, but not a dominant, impact on your optimum maintenance cost.. The earlier two phases the DCS platform is locked in place was the standard method method... To calculate hell of a lot will be based on regular dates or at stages. Of a lot is the so-called lang method scope change and cost overrun will drive changes downstream on projects. But not a dominant, impact on your optimum maintenance cost target streamlined,. On other projects being executed for the overall program much reduced engineering required the... The expected 18 percent of TIC for refining projects in instalments based on Accounting standards to... Time the percent fee was the standard dates or at pre-defined stages of completed work and therefore some...
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