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for Sinopec Engineering Group ng Methods into Action
Project Estimating and Historical Databases and Knowledge Management
Cost Estimating Competency Models and Development
Organizational Development for Cost Estimating/Working with Contractors
3 The preparation of a detailed estimate often
looking at costs in this order:
• Direct Field Costs
• Indirect Field Costs
• Home Office Costs
• Other Project Costs
4 For process plants, the direct field costs typically fall into
the following categories
• Equipment and Engineered Items
• Bulk Materials
• Labor
Hours considering Productivity
Rates which may include Indirects
• Unit Pricing may be used which combines some elements of bulk
material and labor and adds indirects for specific items
Subcontracts typically include a combination of material,
labor and indirects for specific elements of scope EQUIPMENT: Engineered items performing a function in a process
or facility (., pump, etc.) that are usually on P&IDs and included
in equipment lists.
ENGINEERED ITEMS – Items that are engineered to unique
specifications; not a functional unit like equipment, but also not a
commodity or bulk material. Typically these are “tagged” items and
materials that require engineering data sheets.
BULK MATERIALS (Commodities) – Material bought in lots. These
items can be purchased from a standard catalog description and are
bought in quantity for distribution as required. Examples are pipe,
conduit, fittings, and wire.
MODULES – Fabricated assemblages of some or all the above
components. These are specifically designed and tagged as unique
elements of scope. May include Equipment (which is tagged).
6 Equipment is often 20-40% of process plant costs; It is