Erd 00 11

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ENGINEERING REFERENCE DOCUMENT
ERD-00-11
MAY-87
COST CODING FOR BUDGETING

ESTIMATING AND COST CONTROL
Petroleum Development Oman LLC (PDO) have published this Engineering Reference
Document (ERD) for PDO employees and PDO nominated Contractors and Suppliers.
ERD-00-11 COST CODING FOR BUDGETING
MAY-1987 ESTIMATING AND COST CONTROL
Page 1
REVISION STATUS
Engineering Reference Documents shall be revised in accordance with the Engineering Procedure
Manual PDO-EM-PC-10-12
Approved by Authorised by Date Description/Remark

Custodian SIPM
ETH/6
Oct. 1979 First Issue
Nov. 1980 Second Issue
July 1985 Revised in accordance with DEP

40.10.01.11-Gen April 1983 abd
prepared in ERD format.
May 1987 Revised in accordance with the

EP/CRIS new General Ledger Coding.
+Information on this page is for use by PDO only.
Do not use this copy of the ERD if the print-out date is before the latest issue date. The print-out date is on the
bottom of every page. You can find the latest issue date for this ERD on the wall-chart ERD-00-01.Check the
PDO-Intranet (DCS pages) for news about temporary amendments Printout date: 22 Sep. 22
COST CODING FOR BUDGETING ERD-00-11
ESTIMATING AND COST CONTROL MAY-1987
Page 2
PREFACE
Engineering Reference Documents (ERDs) contain information on PDO facilities and buildings that
are either used repeatedly, or that are retained for current or future reference.
The ERD system is intended to:
 Publish guidelines or codes of practice.

 Set The Company Standards.
 Form a basis of technical specification for the procurement of equipment or
technical services.
 Disseminate and record engineering information, experience and standards
procedures.
ERDs shall be prepared and revised in according with PDO-ES-GD-00-10 ‘Content and Presentation
of Engineering Reference Documents’.
Company approval and authorisation of ERD’s shall be in accordance with procedure C17 detailed in
PDO-EM-PC-10-02 ‘Engineering Procedure Manual’.
The objectives of this document are to:
 Achieve uniformity in cost allocation within capital budget items

 Achieve efficient project cost control.
Responsibility for the content of this document, its printing and circulation rests with the Custodian
indicated on the little page of this document.
In this document the HCG-coding and descriptions are based on DEP 40.10.01.11-Gen. No major
changes have been made to the HCG-coding so that the material ordering system remains virtually
the same.
Further the ELM-coding and AN-coding are based on the PDO accounting system as laid down in
the new corporate general ledger (EP/CRIS), which was introduced on 1 st January 1987.
This document is intended for use by PDOs, Shell Group Materials and their nominated
Consultants/Contractors.
Page 3
USER GUIDE LINES
It is the responsibility of the user to ensure that he is using the latest revision of this document by
referring to PDO-ES-GD-00-01 ‘Index for PDO Engineering Reference Documents’
The previous RAF/WO coding-system has been changed into ELM/AN coding-system. Release of
funds for expenditure will be authorised by means of RFA’s in accordance with a predetermined ELM
coding-structure; Work orders will be opened according to the Analysis-code structure, as and when
required, to record expenditure. For a quick overview of the ELM/AN coding-structure and their
related HCG-numbers reference is made to the Subject Index on pages 8 through 12.
For further details regarding ELM and AN code-numbers and HCG-descriptions refer to page 13 up
to and including page 54.
“Company supplied Materials” are those materials for incorporation in the project, which are supplied
to the Contractor, by the Company, free of cost.
Such materials as may be supplied to the Contractor by the Company, and which are paid for by the
contractor, do not constitute Company supplied Materials (i.e. cement purchased by the
Company, paid for by the contractor.)
Items scheduled under description are examples only and are intended as a guide and this should
not be considered as an “all inclusive and complete” schedule.
The ELM code-number and AN code-number, their corresponding descriptions and HCG number in
this standard shall always be adhered to. In the event that any anomaly arises out of this principle or
if there is any doubt as the ELM/AN under which any equipment or material should be categorised
the matter should be referred to “Engineering Services” (ETH/6) in writing for decision. This decision,
If appropriate, will be communicated to all staff and/or Consultants responsible for operating this
Standard Cost Coding Manual.
For the numerical Hague Classification Group serial numbers refer to page 55 of this standard.
Any user of this document who encounters an inaccuracy or ambiguity is requested to notify the
Custodian immediately using the User feedback page provided at the end of this standard.
Page 4
CONTENTS
1 INTRODUCTION............................................................................................................ 5
1.1 SCOPE.................................................................................................................................. 5
1.2 ABBREVATIONS................................................................................................................... 5
1.3 MAJOR CHANGES IN THIS MAY 1987 ISSUE....................................................................5
2 USER FEEDBACK PAGE............................................................................................48
Page 5
1 INTRODUCTION
1.1 SCOPE
This standard specifies the ELM/AN structure for Capital Budgets, Cost Estimates and Expenditure
including the coding for Project Materials Requisitioning.
1.2 ABBREVATIONS
 An – Analysis code (of PDO ‘s EP/CRIS General Ledger )
 ELM – Element Code (of PDO ‘s EP/CRIS General Ledger_
 HCG – Hague Classification Group, as appearing in the DEP 40.10.01.11 –Gen.
Also called ‘Subgroup No.)” on the EDP supplement format (BOM)
 NDT – Non Destructive Testing
 RFA – Request for Authorization (of capital expenditure)
 WO- Work Order
1.3 MAJOR CHANGES IN THIS MAY 1987 ISSUE
 Changes have been included to reflect the coding structure for Engineering Capital
Projects as appearing in the new General Ledger (EP/CRIS), which was introduced in PDO
on 1/1/87.
 On Discipline Level the fixed numeric two digit structure (RFA) in use to code the
RFA’s 01-20, has been replaced by a fixed numeric two digit structure, called “Element
Code” (abbreviated ELM). The full range of 00-99 is used.
 On work Order Level the fixed numeric one digit structure (WO) has been
completely replaced by a (in general) variable numeric two digit structure, called “Analysis
Code”, abbreviated AN. Only the AN-codes covering the standard breakdowns of
Construction Disciplines ELM 30, 32, 33, 40, 42 and 43 are fixed, although certain flexibility
is still left within ranges of AN-code numbers.
 The discipline DESIGN AND ENGINEERING (RFA 01)has been split into three
disciplines, i.e.:
ELM 00 DESIGN AND ENGINEERING GENERAL

ELM 01 CONCEPTUAL DESIGN
ELM 02 DETAILED DESIGN, ENGINEERING AND PROJECT SERVICES.
Design works done by PDO in-house are now to be treated as Capital Expenditure.
 The discipline MECHANICAL MAIN EQUIPMENT has been split into two disciplines, i.e.:
ELM 11 MECHANICAL PROCESS/MAIN EQUIPMENT covering the HCG-

codes 20-25, 27, 29 and 51.
ELM 17 UTILITIES, covering the HCG-codes 73-76
 The discipline MECHANICAL OTHER ITEMS (RFA 04) has been split into two
disciplines, i.e.:
ELM 12 PIPING AND PIPELINES, covering the HCG-codes 28-41, 43, 44 and
45
ELM 18 MOVABLES, covering the HCG-codes 77-83
Page 6
 The remaining HCG-codes for relatively small supply items (HCG-codes 46-48 and
85-87) are in the new account structure incorporated into the discipline:
ELM 19 MISCELLANEOUS MATERIALS (previous RFA 08)
 The disciplines INSTRUMENTATION (RFA 06) and TELEMETRY/CAO

EQUIPMENT (RFA 15) have now been amalgamated into the discipline.
ELM 14 INSTRUMENTATION/TELEMENTRY/CAO
 The RFA’s 10 and 11, previously covering the discipline CONSTRUCTION have
now been replaced by a variety of disciplines, (ELM 30 through 49). The ELM’s 30 and 40
are covering the disciplines CONSTRUCTION GENERAL and TURNKEY
CONSTRUCTION GENERAL respectively, while the ELM’s 31 through 39 and 41 through
49 are covering specific contracts.
 New disciplines apart from those already mentioned have been introduced, i.e.:
ELM 16 OFFSHORE EQUIPMENT, covering the HCG-codes 52-62.

ELM 50 OTHER CHARGES, covering those items which are not included in
the HCG-coding system.
ELM 60 GOVERNMENT GAS OVERHEADS, only to be used in Government
Gas Projects.
Page 7
SUBJECT INDEX PER ELM/AN
ELM AN No Description Refer HCG

No. to No.
Page
00 DESIGN AND ENGINEERING GENERAL 13
01 CONCEPTUAL DESIGN
- Conceptual Design services provided by contractors,
nominated by PDO
13
- Conceptual Design services provided by contractors,
13
nominated by SIPM
- Conceptual Design services provided by PDO 13
02 DETAILED DESIGN, ENGINEERING AND PROJECT-

SERVICES
- Detailed Design and Project-services provided by
14 04
contractors, nominated by PDO
- Detailed Design and Project-services provided by
contractors, nominated by SIPM 14 02&05
- Detailed Design and -services provided by PDO 14 03
- Project and Construction-services provided by PDO 14 94
- Engineering Documents 15 10
03 SIPM SERVICES
- Design and Project-services by SIPM 15 01
- Procurement-services by SIPM 15 -
10 CIVIL MATERIALS (Supply)

- Site Works and Development 16 11, 12,
13, 14
&16
- Concrete foundations/structures and steel structures 17 19 &28
- Buildings 18 17
- Piling 18 18
- Harbour and associated marine facilities 18 15
Page 8
ELM AN No Description Refer HCG

No. to No.
Page
11 MECHANICAL PROCESS/MAIN EQUIPMENT (Supply)
- Columns. 19 20
- Vessels. 19 22
- Storage tanks, spheres, gas-holders. 19 51
- Unfired heat transfer equipment, furnaces and related
facilities.
20 21&24
- Pumps and compressors, including drives.
20/21 29
- Reactors, catalyst regenerators, catalyst strippes,
rotating disc contractors.
21 23
- Packaged units and miscellaneous stationary plant
equipment. 22 27
- Miscellaneous equipment. 22/23 25
12 PIPING AND PIPELINES (Supply)
- Piping, fittings and valves on plot, field-fabricated. 24/25 38,39&
44
- Piping, fittings and valves on plot, field prefabricated. 26 40&41
- Line pipe, fittings and valves for pipelines. 27 43
- Flare and vent stacks/booms (supply). 27 45
13 ELECTRICAL (Supply)
- Electricity generators 28 64
- Transformers, batteries, rectifiers and protective
apparatus
28 65
- Electric Motors (supply)
28 66
- Switch gear/control gear and electr. Instruments
28 67
- Wires, cables and accessories
28/29 68
- Lamps, lamp fittings and accessories
29 69
- Conduits, fuses and house installation materials.
29 70
- Overhead-power-lines and related accessories
29 63
- Cathodic protection by impressed current
30 97
14 INSTRUMENTATION/TELEMETRY/CAO (Supply)
- SCADA/CAO (Systems) equipment 31 72
- General Instrumentation 32 30
- Analyzers and sundry Instruments 32 31
- Flow Instruments 33 32
- Level Instruments 33 33
- Pressure Instruments 33 34
Page 9
- Temperature Instruments 34 35
- Final control elements 34 36
- Miscell. Instruments installation material 34 37
15 TELECOMMUNICATION (Supply)
- Telecommunication equipment 35 71
16 OFFSHORE EQUIPMENT (Not used by PDO to date) 35 52-62
17 UTILITIES (Supply)
- Water treating and purification equipment. 36 73
- Cooling towers 36 74
- Fired steam generators 36 75
- Air-conditioning, ventilation and space-heating 36 76
installations
18 MOVABLES (Supply)
- Furniture, office and house hold requisites 37 77
- Medical apparatus and requisites 37 78
- Laboratory apparatus and requisites 37 79
- Movable hoisting and lifting equipment 37 80
- Movable transport equipment 37 81
- Civil construction equipment 38 82
- Machinery and tools 38 83
19 MISCELLANEOUS MATERIALS (Supply)
- Insulation 39 46&47
- Painting 39 48
- Cathodic protection by sacrificial anodes 39 50
- Catalyst and chemicals 40 85
- Initial spare parts 40 86&87
- Fire-fighting and safety equipment 40 88
- Miscellaneous supplies 40 89
30 CONSTRUCTION GENERAL 41 95
00-09 - General
10-19 - Site Preparation/Earthmoving
20-29 - Civil Construction (incl. Building constr.)
30-39 - MEI-Construction
40-49 - Tankage Construction
50-59 - Electrical Installation/Construction
60-69 - Instrumentation Installation/Construction
70-75 - Pipeline Construction
76-79 - Telecommunication Installation/Construction
Page 10
31 SITE PREPARATION/EARTHMOVING 41 95
32 CIVIL AND BUILDING CONSTRUCTION 42 95
00-09 - General
10-19 - Preliminary work and General Charges
20-29 - Civil Construction/Buildings (Substructures)
30-39 - Buildings (Superstructure)
40-49 - External Works
50-59 - Harbour and Marine Construction
90-99 - Dayworks
33 CMEI-CONSTRUCTION 42 95
00-09 - Preliminary Work and General Charges
10-19 - Civil Engineering Works
20-29 - Buildings
30-39 - Structural Steelwork
40-49 - Mechanical Equipment Installation
50-59 - Pipework
60-69 - Electrical Work
70-79 - Instrumentation
80-89 - Insulation & Painting (Protective Coating)
90-99 - Dayworks
34 TANKAGE CONSTRUCTION 42 95
35 ELECTRICAL INSTALLATION 43 95
36 INSTRUMENTAION INSTALLATION 43 95
37 PIPELINE CONSTRUCTION 43 95
38 TELECOMMUNICATION INSTALLATION 43 95
40 TURNKEY CONSTRUCTION GENERAL 44 95
00-09 - General
10-19 - Site Preparation/Earthmoving
20-29 - Civil Construction (incl.building constr.)
30-39 - MEI-Construction
40-49 - Tankage Construction
50-59 - Electrical Construction
60-69 - Instrumentation Construction
70-75 - Pipeline Construction
76-79 - Telecommunication Construction
Page 11
41 SITE PREPARATION/EARTHMOVING (TURNKEY) 44 95

42 CIVIL AND BUILDING CONSTRUCTION (TURNKEY) 45 95
00-09 - General
10-19 Preliminary Work and General Charges
20-29 Civil Construction/Buildings (Substructure)
30-39 Buildings (Superstructure)
40-49 External Works
50-59 Harbour and Marine Construction
90-99 Dayworks
43 CMEI CONSTRUCTION (TURNKEY) 45 95

10-19 Civil Engineering Works
20-29 Buildings
30-39 Structural Steelwork
40-49 Mechanical Equipment Installation
50-59 Pipework
60-69 Electrical Work
70-79 Instrumentation
80-89 Insulation & Painting (Protective Coating)
90-99 Dayworks
44 TANKAGE CONSTRUCTION (TURNKEY) 45 95
45 ELECTRICAL INSTALLATION (TURNKEY) 46 95
46 INSTRUMENTAION INSTALLATION (TURNKEY) 46 95
47 PIPIELINE CONSTRUCTION (TURNKEY) 46 95
48 TELECOMMUNICATION INSTALLATION (TURNKEY 46 95
50 OTHER CHARGES 47 -
51 INSPECTION SERVICES 47 96&98
52 SPECIALIST SERVICES 47 84
53 MISCEL. & COMPANY- GENERATED CHARGES
- Construction All Risk Insurance (CAR) 48 91
- Air freight 48 -
54 MODIFICATI0NS
Modifications to existing units 49 90
60 GOVERNMENT GAS OVERHEADS 49 -
98 ESTIMATING CONTINGENCY 51 99
99 PROJECT RISK CONTINGENCY 51 99
Explanatory Notes on Contingencies 52-54
Page 12
ELM AN No Description HCG

No. No.
DESIGN AND ENGINEERING GENERAL

00
To be used where no greater analysis is required or for other

miscellaneous costs.
01 CONCEPTUAL DESIGN
Conceptual Design services provided by contractors,

nominated by PDO.
To be used for coding of all costs related to conceptual design,
including feasibility studies, project development and
coordination work, process design and process engineering,
front-end engineering, as provided by contractors, consultants,
agencies or their personnel nominated by PDO. Also included
are travel and accommodation expenses, site, route and
seastate/seabed survey costs laboratory and computer costs,
design fees and costs of general project management.
Conceptual Design services provided by contractors,

nominated by SIPM.
To be used for coding of all costs related to conceptual design,

including feasibility studies, project development and
coordination work, process design and process engineering,
front-end and conceptual engineering, as provided by
contractors, consultants, agencies or their personnel,
nominated by SIPM. Also included are travel and
accommodation expenses, site, route and seastate/seabed
survey costs, laboratory and computer costs, design fees and
costs of general project management.
Conceptual Design services provided by P.D.O
These costs are treated in P.D.O as Capital Expenditure.
Should the Budget Proposal not be approved at the conceptual

stage, then a project Start-up Operating Budget need to be
raised and approved.
When the Budget Proposal has been approved, the

expenditure from the start-up Budget will be transferred to the
Capital Budget.
Page 13

No. No.
02 DETAILED DESIGN, ENGINEERING AND PROJECT- O4
SERVICES
Detailed Design, and Project-services provided by contractors,

nominated by P.D.O
To be used for coding of all costs related to detailed design

and detailed engineering services, including procurement
services, project materials co-ordination services, ‘desk’ and
‘field’ materials expediting services advice during construction
and start-up, as provided by contractors, consultants, agencies
or their personnel, nominated by PDO. Also included are travel
and accommodation expenses, site, route and
seastate/seabded survey costs, laboratory and computer
costs, design fees and costs of general project management.
- Notes: For construction/installation contracts, the

appropriate ELM/AN numbers are given elsewhere in this
manual.
- For start-up team services, use group 84 ELM 52.
Detailed Design, and Project-services provided by contractors,

nominated by SIPM 02
- To be used for coding of all costs related to detailed

design and detailed engineering services, including advice
during construction and start-up, as provided by
contractors, consultants, agencies or their personnel,
nominated by SIPM. Also included are travel and
accommodation expenses, site, route and seastate/
seabded survey costs, laboratory and computer costs,
design fees and costs of general project management
- To be used for coding of all costs of procurement services, 05

project materials coordination services, ‘desk’ and ‘field’
materials expediting services
03
Detailed Design-services provided by P.D.O
These costs are treated in P.D.O. as Capital Expenditure.
Project and construction services provided by P.D.O
These are treated in P.D.O as Operating Expenditure.
- To be used for coding of all costs related to project

services as described above, selection of contractors, and
associated overhead as charged to the project costs by
the site organization. Also included are the costs for site
Page 14
surveys, topographic and soil investigation, computer

usage.
94
- Construction supervision by P.D.O
Engineering documents
10
- To be used for coding of all costs related to the
preparation of engineering documents as operating and
maintenance manuals as performed by nominated
engineering contractors and further also to be used for the
preparation of ‘Bills of Quantities’ for tender documents as
performed by PDO nominated Quantity Surveyors.
03 SIPM SERVICES
Design and Project-services by SIPM 01
To be used for coding of all costs related to design and

engineering work as described for ELM 01& ELM 02 and/or
other related services for the project, as provided by SIPM.
Procurement services by SIPM

If procurement is done by Group Materials (C.P.O), the actual
procurement costs will be included as a fee in the materials
cost as per purchase order. The costs of expediting and
project materials coordination should then still be charged to
group 05, ELM 02.
10 CIVIL MATERIALS
Site Works and Development
 Site Works 11
Site preparation, levelling. Land reclamation, landscaping, and
soil investigation.
 Bund walls 12
Bund walls for tanks, tank pits, tank pads, dykes, dams,
retaining walls, ditches, impounding basins, caverns, open pit
storage, etc., including finishing and surfacing, and including
their necessary sheet piling
Roads, paving and fencing 13
Including pipe tracks, bridges road-crossings, pipe/road
crossings, railroads and yards.
Note: For civil construction equipment and tools, use group82,

ELM 18.
Gen. Note: Allocate appropriate AN number as required.
Page 15

No. No.
 Drainage and sewerage, water intake and efficient facilities 14
Drainage and sewerage piping, oil catchers, API-CPI-TP
separators, gutters, sumps, channels, weirs etc.
Concrete (cooling) water supply and discharge channels,

discharge of rainwater, domestic water and waste water.
Excluded are purely mechanical facilities, such as metallic

piping, above ground cooling water lines and pumps.
Notes: For pumps and drives, use groups 29, ELM 11
For metallic piping and aboveground cooling water lines,

use groups 38-43, ELM 12.
 Excavation and backfill

16
Excavation work and backfill, such as for underground piping,
electrical and instrument cables including blasting materials.
Concrete foundations/structures and steel structures.

19
 Concrete foundations and structures
Concrete foundations, supports, floors, stairs, trenches,

plant paving, concrete foundations for rotating machine,
concrete structures to support columns, furnaces, heat
exchangers, cooling towers, etc., concrete stacks,
including anchor bolts, sleeves, inserts, etc. embedded in
concrete, grouting etc., all provided that these form an
integral part of the civil engineering work. Excavation for
concrete supports, formwork and rebar are an integrated
part of the concrete structures.
Notes: For buildings, use group 17, ELM 10
 For another bolts not embedded in concrete, use the

group of the equipment concerned, e.g. for anchor
bolts for columns, use group 20, ELM 11.
 For heat transfer equipment use group 21, ELM 11.
 For cranes, hoists, etc., in concrete upper structures

use group 28, this ELM.
Steel structures
28
Page 16

No. No.
For vessels, unfired heat transfer equipment etc., pipe bridges,
supports, ladders, platforms, permanent hoisting equipment,
travelling cranes, etc
Also included are steel structures for air cooled heat

exchangers, furnaces, flare and vent stacks, stand pipes and
structures for fired steam generators.
Notes: For structural steel for buildings and for all steel
buildings, use group 17, ELM 10
For structural steel for pipe supports and hangers use group
44, ELM 12.
 For structural steel for pipe bridges, etc., use group 28,
this ELM 12.
 For skids for equipment use group 27, ELM 11.
 For skids for manifolds use group 40(41), ELM 12.
 For skids for pig launching and receiving equipment use

group 43, ELM 12.
Buildings
17
Control centres, analyser houses, laboratories, switchhouses,

offices, stores, workshops, gate houses, fire stations and other
industrial buildings, cloakrooms, canteens, houses, schools,
hospitals, clubs etc., including their foundations, piling,
framing, walls and floor finish, roofing, cranes, hoists,
ventilators, platforms, staircases, ladders, lifts, windows,
painting, space heating and air-conditioning facilities and
electrical installation if they form an integral part of the building
contract.
Notes: For air-conditioning and space heating installations not

forming an integral part of the building, use group 76, ELM 17.
For laboratory requisitions and apparatus, use group 79, ELM

18. 18
Piling
For foundations, tanks, retaining walls, channels, etc.,
including permanent sheet piling.
Notes: For sheet piling of bund walls, use group 12, ELM 10.
For piling of harbour facilities, use group 15, ELM 10.
Page 17

No. No.
Harbour and associated marine facilities 15
Jetties, single and conventional buoy mooring facilities, wharves,

pontoons, buoys, and dolphins, including piling for these facilities.
Excluded are purely mechanical facilities such as metallic pipelines,

hoses, loading gear and equipment, etc.
Notes: This group is also used for dredging.
- For steel structures and cranes, use group 28, ELM 10.
- For pumps and drives, use group 29, ELM 11
- For hose-handling gear and all-metal loading arms, use group
27, ELM 11
- For pipelines, fittings and hoses use either groups 38-43, ELM
12.
11 MECHANICAL PROCESS/MAIN EQUIPMENT 20
Columns, including internals and accessories
Strippers, absorbers, fractionators, contractors, scrubbers,

evaporator columns, rectifiers, stabilizers, etc., including handling
gear, anchor bolts, all internal such as trays, Rschig rings,
demisters, inlet/outlet devices, linings, rope, tape, gaskets, bolts.
22
Vessels, including internals and accessories
Accumulators, horizontal and vertical separators, mist extractors,

gas scrubbers, coalescers, instrument air receivers, knock-out
drums, flash vessels, blow-down vessels, hoppers, small open or
flat-top atmospheric tanks etc., complete, with all internals such as
cyclones, weirs, partitions, ‘schoepentoeters’, etc., mixing, stirring,
agitating and scraper devices (including their drives, gear boxes,
etc.), heating or cooling coils or jackets, linings, wire-mats and
accessories.
Notes: For storage tanks, spheres and gas-holders, use group 51,
ELK 11.
 For air drier use group 27, ELM 11.
Storage tanks, spheres, Gas-holders and accessories 51
All storage tanks and spheres, gas holders, etc., including insulation
and all accessories, water sprinklers, foam-making branch pipes,
swing pipes, stand pipes for tank gauges, staircases, heating or
cooling coils, blending pipes, mixers floats, etc.
Wash tanks, skim tanks, etc., with all internals such as partitions,
weirs, spreader systems and appurtenances as mentioned above.
Page 18

No. No.
Notes: For fire walls, use group 12, ELM 10.
 For piling, use group 12, ELM 10.

 For foundations, use group 19, ELM 10.
 For level instruments (tank gauging equipment) use group 33,
ELM 14.
 For insulation at site, group 46, ELM 19.
 For painting at site, group 48, ELM 19.
 For earthing at sire, group 68, ELM 13.
Unfired Heat Transfer Equipment, Furnaces and related facilities 21
 Unfired heat transfer equipment and accessories.
Heat exchangers, reboilers, coolers, and condensers (including fans,

drives and steel structures for air-cooled heat exchange equipment),
chillers, scraper-type exchangers (including drives), evaporators,
unfired steam generators (unless part of a furnace heat recovery
system), including all accessories such as gaskets, bolts, ejectors.
Notes: For cooling towers, use group 74, ELM 17.

Steel structures are covered under ELM 10.
For initial spare tube, use groups 86/87, ELM 19.
24
 Furnaces and related facilities
Fired heat transfer equipment such as furnaces, heaters and kilns,

line burners, incinerators, including their heat recovery system,
convection section or unfired waste heat boiler, including stacks, flue
ducts, coils, coil supports, burners, refractory and fire bricks,
external insulation, steel structures, platforms, roofing, induced and
forced draught fans (including their drives), air ducting, dampers, air
preheaters, soot blowers, ignition devices, flame arresters, etc.
Note: For concrete stacks, see group 19, ELM 10.
Pumps and Compressors, including drives and accessories 29
Complete with drives, base plates, couplings, gear boxes and all
further accessories such as inlet and exhaust filters/ducting for
engines and gas turbines. Well pumps such as beam pumping units
and down hole electric pumps. Chemical injection pumps. Air
compressors including drives. (see note 3).
Page 19

No. No.
Note 1: Induced and forced –draught fans (including drives):
 For cooling towers, use group 74, ELM 17
 For air-cooled heat exchangers, use group 21, ELM 11
 For furnaces, use group 24, ELM 11
 For fired steam generators, use group 75, ELM 17
Note 2: For ordering electric motors without a driven

component, use group 66, ELM 13.
Note 3: For ordering complete packaged air compressor sets

including driers/receivers use group 27, ELM 11.
Note 4: For ordering electricity generators and drives use

group 64, ELM 13.
23
Reactors, Catalyst Regenerators, Catalyst Strippers, Rotating

Disc Contractors
Reactors, catalyst regenerators and catalyst strippers,

soakers, rotating disc contactors, autoclaves, stirring kettles
etc., including all internals, such as cyclones, mixing, stirring,
agitating or scraper devices (complete with drives, gear boxes,
etc) and accessories.
27
Packaged Units and miscellaneous stationary plant equipment
 Skid-mounted.packaged process units for oil-gas-water

separation, gas dehydration, hydraulic pumping, heater
treaters, electrostatic treaters, (instrument) air compressor
sets complete with drives, driers and receivers.
 Fixed screens, filter presses, plate filters, cartridge type
filters, sand filters, diatomaceous earth filters, centrifuges,
rotary filters, rotating screens (incl. their drives), extruders,
kneaders, ejectors, cyclones (instrument air) driers,
crystallizers, gas generators, complete oxygen or nitrogen
plants or other packaged units, hose-handling gear and
metal loading arms including all accessories such as their
drives, gear boxes, grates, burners, stacks, silencers, etc.
Notes: For cyclones belonging to regenerators, use group 23,

ELM 11.
 For packaged water treating/injection plant, use group 73,
ELM 17.
 For cooling towers, use group 74, ELM 17.
 For fired steam generators use group 75, ELM 17.
 For air-conditioning, ventilation and space heating
installations, use group 76, ELM 17.
Page 20

No. No.
 For skid-mounted manifold, use group 40, ELM 20.
 For complete skid mounted units other than above use
group 20/25. 29 31 as applicable.
Miscellaneous Equipment
Mechanical handling equipment. 25
Stationary mechanical handling equipment for the transport of

materials and/or personnel, such as lifts, elevators, conveyors,
weighing equipment, cranes and hoists in buildings, including
their related structures and ducting. Packing plant and
apparatus, such as tin can plant, drum-making machinery,
pickling plant, cas-making plant and machinery, filling plant.
Notes: When the above equipment forms an integral part of a

building, use group 17, ELM 10.
 For movable hoisting and lifting equipment, use group 80,

ELM 18.
 For movable handling equipment, such as stackers, fork

trucks, tractors and trailers, use group 81, ELM 18.
 For workshop machinery, also when bolted to floor, use

group 83, ELM 18.
12 PIPING AND PIPELINES

Piping, Fittings and Valves – on plot, field-fabricated 38
39
 Pipe materials (also including protective and weight
coatings, linings and sleeves), fittings, bosses, flanges,
connectors, valves, cocks, gaskets, bolts, nuts, expansion
bellow, steam traps, scraper/pig traps, strainers, flexible
piping, hoses, and including orifice flanges, orifice meter
runs, drippings, thermowells, spacers and spool piece for
instrument, safety/relief valves, level gauges and their
glasses, steam tracing.
 Steam condensate and feed water lines, including all

steam traps and other accessories as described under
group 38-39.
 Air lines.
 Including all accessories as mentioned under group 38-39
 Deballasting and slope lines.

 Including all accessories as mentioned under group 38-39.
Page 21
 Fresh water and drinking water lines.

 Including all accessories as mentioned under group 38-39.
 Fuel Lines
Including all accessories as mentioned under group 38-39.
 Foamite and air-foam lines

 Flare, relief and vent system lines

 Pipelines for chemicals

 Cooling water and fire fighting water lines

Notes: For skid-mounted manifolds, use group 40, this ELM.
 For piping materials to be used in prefabricated piping, use

group 40, this ELM.
 For pipe supports and hangers, use group 44, this ELM.
 For structural steel for pipe bridges etc. use group 28, this
ELM 10.
 For pipeline projects, use group 43, for pipe materials,

coating etc. this ELM.
 Shop coating and lining as part of the line pipe mat’s

ordering has to be considered as part of the bare pipe’s
group.
 Use for cost allocation of on-plot piping installation or ELM

33 or ELM 30, AN 30-39.
 For underground drainage piping, use group 14, ELM 10
 For instruments impulse lines, use group 37, ELM 14.
 For insulation, use group 46, ELM 19.
 For cathodic protection by sacrificial anodes, use group

97, ELM 19.
Page 22
 For cathodic protection by impressed current, use group

97, ELM 19.
 For TFL equipment and materials , use group 57, ELM 16.
 For fire hydrants and fire-fighting hoses, use group 88,

ELM 19.
 For flare and vent stacks/booms, , use group 45, this ELM.
 When all available serial numbers in group 38 have been

used, refer to group 39 this ELM.
44
Pipe supports and hangers (supply)
Including pipe clamps, shock absorbers, counterweights, etc.
Note: For structural steel for pipe bridges etc. use group 28,
ELM 10.
Only those materials forming an integral part of shop-

fabricated piping and manifolding, which are fabricated in a
pipe spool manufacturer’s shop or module fabrication yard,
such as pipe, flanges, valves, bosses, weldolets, and all non-
MESC or specially fabricated piping materials, manifold skids.
Notes: Shop and yard coating and lining as part of the line pipe
material ordering has to be considered as part of this group.
Use for cost allocation of on-plot piping installation work ELM

33 or ELM 30, AN 30-39.
 For underground drainage piping, use group 14, ELM 10.

 For structural steel for pipe bridges, use group 28, ELM
10.
 For prefabricated manifold skids, use this ELM/AN.
 For piping materials for on-plot, field fabricated, use group
38, this ELM.
 For pipeline projects use group 43 for pipe materials,
coating etc. this ELM.
 For pipe supports and hanger use group 44, this ELM.
 For flare and vent stacks/booms, use group 45, this ELM.
 When all available serial numbers in-group 40 have been
used, refer to group 41.
Page 23
Remarks
Group 40 and 41 are to be used exclusively for material s

which are to be sent directly from supplier to a piping
fabrication shop or yard, for vendor packaged
piping/manifolding.
Consequently, these groups shall never be used for parts such

as valves, cocks, strainers, filters if they do not form an
integral part of the shop-fabricated piping. If there is doubt
whether certain piping materials will be shop-or field-fabricated,
use group 38.
Line Pipe, Fittings, Valves and Accessories for Pipelines
43
Off-plot pipelines for hydrocarbons and gaslines including all
coatings, linings, fittings, valves, block valves, check valves
and cocks, flanges, gaskets, bolts, nuts, strainers, clamps,
isolating flanges.
Pipe cleaning equipment such as pig launching and receiving

equipment and related materials and their supporting skids.
Pipe tie-ins also part of this AN.
Notes: Use for cost allocation for pipeline

fabrication/installation ELM 37 or ELM 30, AN 70-75.
 For typical site work use group 11, ELM10.

 For typical civil work use group 19, ELM10.
 For underground drainage piping, use group 14, ELM 10.
 For structural steel pipe bridges, etc., use group 28, ELM
10.
 For pipe supports and hangers, use group 44, this ELM.
 For instrument impulse lines, use group 37, ELM 14.
 For piping materials for on plot, field fabricated, use group
38/39, ELM 12.
 For piping materials for on plot, field prefabricated, use
group 41/41, ELM 12.
 For cathodic protection by sacrificial anodes, use group
50, ELM 19.
 For cathodic protection by impressed current, use group
97, ELM 13.
 For TFL equipment and materials, use group 57, ELM 16.
Page 24
Flare and Vent Stacks/Booms (Supply) 45
Complete with steel structures, pilot burners, flame arresters,

ignition devices, etc.
13 ELECTRICAL
Electricity Generators 64
Generators including their drives and accessories.
Complete with base plates, couplings, gear boxes, and all

further accessories such as inlet and exhaust filters/ducting for
engines and fags turbines.
Transformers, Batteries, Rectifiers and Protective Apparatus.

65
Transformers, batteries, rectifiers, capacitors, reactors,

resistors, thyristor units, inverters, protective apparatus,
equipment and accessories.
Note: For cathodic protection by impressed current and related

materials and equipment use group 97, this ELM, instead of
group 65. This is for cost control purpose only.
Electric Motors (supply) 66
This group code number is used exclusively:
 For electric motors without a driven component (i,e, for

replacement).
 For variable –speed drives, i.e., electric motors using
variable frequency/voltage to regulate the speed including
their driven component.
For all other case the motor is to be placed in the same group
as the driven equipment.
Switchgear/control gear and electrical instruments(supply) 67
Switch- and control gear assembles (including those for

instrument electricity supply), switches, push-button stations,
boxes (fuse, distribution, terminal and cable sealing boxes),
and instruments for measuring, protecting, controlling and
testing electrical equipment.
Wires, cables and accessories (supply) 68
Wires and cables for earthing, power, lighting, control and

communication, (see exceptions under NOTES below)
Page 25
including accessories such as connection boxes, cable

channels, connectors, earthing rods, cable markers, insulation
materials, insulators, poles, lightning conductors.
Notes: For excavation work for cables and backfill, use ELM
30, AN 10-19, or ELM 33, AN 10-19.
 For cabling for SCADA/CAO systems, use group 72, ELM
14.
 For electricity supply and signal cabling and accessories

forming part of instrumentation, use group 37, ELM 14.
 For communication cabling, forming part of the 69

telecommunication system, use group 71, ELM 15.
Lamps, lamp fittings and accessories
Including accessories such as hangers, globes and glasses, 70

guards, reflectors.
Conduits, fuses and house installation materials.
Metallic and non-metallic conduit and fittings, fuses (including

automatic), switches for house installation, etc.
Notes: For excavation work for cables and backfill, use ELM
30 , AN 10-19 or ELM 33, AN 10-19.
 For electricity supply and signal cabling and accessories

forming part of instrumentation, use group 37, ELM 14. 63
 For communication cabling, forming part of the

telecommunication system, use group 71, ELM 15.
Overhead-power-lines and related accessories

Wires and cables for overhead lines. Isolators, switches poles
and masts, structural steel and all related accessories.
Note: For construction use group 95, ELM 35, or ELM 45.
Cathodic protection by impressed current. 97
Cathodic protection by impressed current.including related

materials, equipment and accessories, such as solar power
system.
Notes: For construction use group 35, ELM 30, AN 30-39 or
ELM 33, AN 60-69.
 For site works use group 11, ELM 10.
 For civil works use group 19, ELM 10.
 For materials for cathodic protection by sacrificial anodes,
use group 50, Elm 19.
Page 26
14 72
INSTRUMENTATION/TELEMETRY/CAO
SCADA/CAO (system) equipment
Instrument systems, i.e, SCADA.CAO system, as well as

component for such systems.
SCADA = supervisory control and data acquisition.

CAO = computer application in operation.
SCADA systems usually include an element of elementary.
SCADA/CAO system hardwares, such as, telemetry

equipment (local-, remote-and master terminal units),
micro/mini-computer systems and peripherals (VDU’s,
keyboards, printers, tape drives, operator panels/consoles,
etc.), dedicated power supply systems (CVT’s, UPS’s,
chargers, batteries, invertors, etc.), data communication
equipment (modems, line adaptors, multiplexers, etc) and, in
special cases, instrumentation equipment (transmitters,
process switches, control elements etc.).
SCADA/CAO system software, as supplied by system vendor

(operating software, standard application software, special
application software, diagnostics, compilers, interpreters, etc.)
Support equipment, i.e. development system, special

test/simulation equipment, micro-monitors, etc.
NOTES: Tank farm monitoring equipment, automatic

sequencing equipment, automatic finalization, etc. will not
always be defined as, of associated with SCADA. When they
are not, they would logically fall within group 30 or 33, this
ELM.
 For control equipment specific to subsea systems, use

group 57 ELM 16.
 For telecommunication equipment, use group 71, ELM 15.
Instrumentation materials and related accessories
General Instrumentation 30
Receiving instruments such as pneumatically or electrically

receiving indicators, recorders, controllers, hand control units,
computing relays, pneumatic switches.
Alarm annunciator system, safeguarding and sequence control

systems, computer systems for process monitoring and
control, and other similar instrumentation systems as well as
Page 27
components for such systems.
Notes: For telecommunication equipment, use group 71, ELM

15.
 For Telemetry/CAO (system) equipment, use group 72,

this ELM.
31
 Analyzers and sundry instruments
On-line (automatic) analyzers, detectors for gas smoke, fire or

flame, instrument for measuring air and water pollution.
Associated equipment, such as stream selectors,

programmers, peak holders and special recorders.
Sampling systems and components, including instruments for

measuring flow, level, pressure or temperature and final
control elements if forming part of such systems.
Automatic samplers.
Sundry instruments, such as those for measuring speed,

vibration, displacement, force, weight etc.
Notes: For analyzer houses, use group 17, ELM 10.
 For air-conditioning equipment in analyser houses, use

group 76, ELM 17.
32
 For off-line (semi-automatic) analyzers for use in plant
laboratory or control laboratory, use group 79, ELM 18.
Flow instruments
Flow measuring elements, such as orifice plates, Venturi

tubes, Dall tubes, pilot tubes. Instruments measuring the flow
as a function of the differential pressure created by the above
flow measuring elements e.g. flow transmitters, (local) flow
indicators, recorders, controllers. Variable area maters, turbine
meters, positive displacement meters.
Accessories for the above instruments such as strainers, air-

eliminators, deaerators, flow limiters, flow straighteners, shut-
off valves (if integral with the meter), meter provers for flow
measuring instruments complete with all accessories.
Note: For office flanges and orifice meter runs, use group 38 or
40, ELM 12, (as applicable).
Page 28
 Level Instruments 33
Displacement instruments, displacer chambers, differential

pressure instruments (if used for level measurement), ball float
instruments (switches), electric level instruments (capacitance,
conductivity, acoustic, radioactive). Tank gauges, including
(remote) read-out equipment, selector system etc.
Note- For level gauges and their glasses, use groups 38 or 40,
ELM 12 (as applicable).
 Pressure Instruments 34
Draught gauges liquid-filled manometers.

Pressure gauges, pressure transmitters, pressure switches.
Pressure controllers (if not integral with control valve).
Note: For pressure controllers integral with a control valve and

pressure regulators, use group 36, this ELM.
35
 Temperature Instruments
Temperature gauges, transmitters, temperature indicators,

recorders, controllers, switches.
Temperature indicator systems (incl.selectors).
Thermocouple assemblies and accessories.
Resistance thermometer elements and accessories.
Notes: For thermocouple signal cables, use group 37, this ELM
For thermowells, use groups 38 or 40, ELM 12 (as applicable).
 Final control elements 36
Control valves (also with integral pressure controller), reducing

and back-pressure valves.
Cylinder actuators for dampers, etc.
Accessories, such as positioners, boosters, quick exhaust

valves.
Notes: For safety/relief valves, use group 38, ELM 12.

37
Miscellaneous instrument installation materials.
Instrument panels and consoles, instrument name plates,

instrument impulse lines, such as tubing, and line pipe ,
fittings, equalizing blocks and accessories for sealing, purging
and heating.
Page 29
Supports for plant-mounted instruments

Trunking, trays and conduit for instrument cabling.
Pneumatic signal cables such as single or multicrore tubing,

compression fittings.
Electric signal cables including thermocouples signal cables),

terminal blocks, junction boxes, cable glands. Instrument
electricity supply (as far as forming part of instrument
engineering) such as instrument electricity supply cables,
terminals, sockets and plugs, distribution boxes. Materials for
instrument air supply (as far as forming part of instrument
engineering) such as:
 Instrument air supply piping in the plant.

 All instrument air supply piping in the control centre.
 Air filters, pressure regulators.
Notes: For instrument air supply plant, use group 27, ELM 11
(packaged units).
For air supply piping forming part of mechanical engineering,

use groups 38-39, ELM 12.
15 TELECONMMUNICATION
Telecommunication equipment 71
Telephone, telprinter, radio and television communication

equipment, paging systems, public address, fire alarms,
including their integral power supply equipment and component
parts, cables and accessories.
Notes: For steel telecomm masts , use groups 28, ELM 10.
For fire and smoke detection equipment, use groups 31, ELM
14.
For SCADA/SCO (systems) equipment, use groups 72, ELM
14.
16 OFFSHORE EQUIPMENT
This ELKM is not used by PDO to date. As and when the need
arises the following HCG-numbers will be further defined.
 Topsides and decks (structural) (supply). 52
 Steel substructures and subsea structural element (supply). 53
 Piling, conductors and anchoring (supply). 54
 Offshore concrete structure(supply). 55
 Riser top equipment(supply). 56
Page 30

No. No.
Control and maintenance equipment specific to subsea
systems (supply). 57
Miscellaneous structural materials and equipment for offshore 58
(supply).
Onshore/inshore fabrication, installation, hook-up and
59
commissioning.
60
Transportation on site.
61
Offshore installation.
62
Offshore hook-up and commissioning.
17 UTILITIES
Water treating and purification equipment
73
Treaters, demineralizers, software’s, chlorinators, seawater
distillers, water filters, reverse osmosis units, packaged water
treatment units for water injection etc.
Notes: For fired boiler feed water deaerators, use group 75,
this ELM.
74
Cooling Towers
Including fans and their drives, internals, spraying equipment,

etc.
Note: For concrete cooling water structures, use group 19,

ELM 10.
Fired steam generators 75
Also including their heat recovery system and all auxiliary

equipment and accessories such as superheaters,
desuperheaters, dampers, fans (including their drives), soot
blowers, relief valves, stacks, burners, tubes, insulation,
platforms, steel structures, ducting, roofing, feed water
deserators, etc.
Notes: For concrete stacks, use group 19, ELM 10.

For safety/relief valves not being an accessory of the boiler,
use group 38, ELM 12.
Air-conditioning, ventilation and space-heating installations 76
Also including ducting, piping, insulation etc., not forming an

integral part of the building.
Note: For installation forming an integral part of the building or

supplied by the building contractor, use group 17, ELM 10.
Page 31

No. No.
18 MOVABLES
Furniture, office and household requisites 77
Furniture, kitchen equipment, table ware and cutlery, laundry

equipment, recreational articles, school equipment, club
requisites etc.
Medical apparatus and requisites*
78
Laboratory apparatus and requisites*
79
* Note: As initial items of a new project.
Maintaining and replacement of such equipment always
becomes a movable item under operating capital.
Movable hoisting and lifting equipment and accessories

80
Masts, tripods and lifting accessories, winches, capstans ,
trolleys, hoists, mobile cranes, derricks, wire rope, cordage,
chains, chain accessories, pulley blocks, etc.
Notes: For cranes, hoists, trolleys etc. installed in steel or

concrete structures within plant battery limits or on offshore
platforms or inside industrial buildings, use group 25, ELM 11.
 For lifts not forming an integral part of a building structure,

elevators and conveyors, use group 25, ELM 11.
 For small tools and pneumatic tools, use group 83, of this
ELM.
Movable transport equipment 81
For the transport of materials and/or personnel on land, water

and in the air, including garage equipment and automotive
tools i.e., motor cars, trucks and coaches, treactors and
traioers, locomotives, car and rail equipment, marine craft,
vehicle accessories, tracked vehicles, marsh buggles,
snowcats, hovercraft, helicopters, fixed-wing aircraft etc.
Civil construction equipment 82
Track builders, bulldozers, graders, rippers, rollers, asphalting

equipment, excavators, etc.
Brick and tile-making equipment, concrete mixers, power

driven tools for civil engineering work, pile-driving equipment,
surveying instruments etc.
Note: For small tools, use group 83, this ELM.
Page 32
Machinery and Tools (‘movables’) for workshops and 83

construction purposes
Machine tool with fixed and loose attachments and

accessories i.e., metalworking machines, woodworking
machines, brick sawing and grinding machines.
Equipment for welding, foundry and other individual shops, as

for blacksmith’s shop, electrical shop, instrument shop, general
workshop.
Racking, bins and other warehouse equipment.
Blacksmith’s tools construction tools, electricians tools,

instrument maker’s tools, mason’s tools, pipe fitters tools, rail-
laying tools, upholsters tools, General small tools such as blow
lamps, chisels, drills, electrically operated tools, files, gauges,
jacks, machine tools accessories, measuring tools, pliers,
screwdrivers, etc.
Pneumatic tools for mechanics, excavating and demolition,

concrete vibrators, tube assembly and cutting tools, air hoists,
air motors, and sump pumps (where not forming part of a
permanent installation), etc.
Pipeline construction machinery as used for pipe aligning,

beveling, expanding, asphalting, wrapping etc.
Equipment and instruments for testing purposes, mechanical

power measuring, speed measurements, vibration
measurements, etc.
Notes: Workshop equipment although in general bolted to the

floor is classified as ‘Movable’.
For general-purpose air compressors, use group 27, ELM 11.
19 MISCELLANEOUS MATERIALS
Insulation (incl. Sound-proofing and fire-proofing) (Supply) 46
For columns, vessels, unfired heat transfer equipment, piping

and pipelines, pumps, storage tanks and spheres, (excluding
furnaces and related facilities and fired steam generators and
related facilities), etc. including such materials as wire mesh,
sheet covering, insulation material, etc.
Sound-proofing insulation, noise suppressing covers hoods, 46

etc. 47
Fire-proofing for steel structures, columns, vessels, etc.
Page 33
Notes: For insulation of air-conditioning and space heating

equipment, use groups 17, ELM 10 or group 76. ELM 17 (as
applicable).
For insulation of furnaces and related facilities , use group 24,

ELM 11.
48
For insulation of fired steam generators and related facilities,

use group 75, ELM 17.
Painting (supply)
Including paints, varnishes etc.
Notes: If painting is included in the supply of equipment, use

the relevant group code number of that equipment.
 For paint for buildings, use this ELM.
 For protective paint under insulation use this ELM.
Protection of pipelines against corrosion by coatings, linings,

etc. is to be included in the respective group code number of
the pipeline concerned, whereas corrosion prevention by
means of cathodic protection by sacrificial anode is covered by
group 50, this ELM, or by means of impressed current which is
covered by group 97, ELM 13.
Cathodic protection by sacrificial anodes (supply) 50
Zinc, aluminium, magnesium anodes and fastening materials.

Note: For cathodic protection by impressed current, use group
97, ELM 13
85
Catalyst and chemicals (initial supply)
Fresh and used catalyst, acids, soda, clay, demulsifiers,
pourpoint depressants, glycols, corrosion inhibitors, etc.
Initial spare parts

86
87
Such as spare tubes for heat exchangers, parts for pumps,
compressors, engines, turbines, instruments, furnace tubes,
burners and also including SPIR lists. Spare
anchoring/mooring materials.
Notes: When initial spare parts are to be requisitioned

simultaneously with the main equipment for new construction
projects, separate requisitions/indents shall be made out for
spare parts under this group in order to keep administration
Page 34
separated from the main equipment.
These requisitions/indents shall have the same project

number, as the equipment concerned and reference shall also
be made to the requisition number of the equipment, to the
manufacturer and to the country of origin.
When all available serial numbers in group 86 have been used,

refer to group 87, this ELM.
Fire-fighting and safety equipment. 88
Such as trucks, trailers, extinguishers, Halon, BCF and similar

systems/equipment, fire-fighting hydrants and fire-fighting
houses, safety equipment, weapons, explosives, life-buoys,
life-rafts and capsules, special protective clothing etc.
Notes: For-fighting pumps, use group 29, ELM 11.
 For fire-detection systems, use group 31, ELM 14.

 For fire-alarm systems, use group 71, ELM 15.
Miscellaneous supplies 89
Such as acetylene, oxygen, nitrogen, oils and greases,

abrasives, polishes, textiles, special welding rods and other
small items to be supplied by the Company.
Notes: Further, this ELM also to be used for estimating

purposes i.e., rounding-off to nearest $ 000.
95
30
CONSTRUCTION GENERAL
To be used for coding of all construction work (with the

exception of construction work to be executed under “Turnkey-
Contract-term) if no breakdown of the work in specific
contracts is required or is not yet foreseen. (i.e. in budget-
estimate class ‘C’).
This ELM is also to be used in budget –estimate class ‘B’ if no

data on the contract-strategy and/or no cost –coding-
specification have been given by the Requester of the
estimate.
Following Analysis Code structure is to be adhered to: (but in

budget-estimates only if requested).
00-09 General
10-19 Site preparation/Earthmoving
20-29 Civil Construction (incl.building constr.)
Page 35
30-39 MEI Construction

40-49 Tankage Construction
50-59 Electrical Construction
60-69 Instrumentation Installation/Construction
70-75 Pipeline Construction
76-79 Telecommunication Installation/Construction
Notes: The above breakdown into Analysis Codes should be

used in the preparation of cost estimates and in the
preparation and evaluation of tenders for Construction-
contracts, as far as possible.
 Budget estimates are always assumed to be lumpsum,
except when indicated different on the “Cost Estimate
Summary Sheet”.
 For specific Construction-contracts, use ELM 31-39 or (in

case of “Turnkey”) ELM 41-49, as applicable.
 For general ‘Turnkey’ Construction-contract, use ELM 40.
31 SITE PREPARATION/EARTHMOVING 95
To be used for site Preparation/Earthmoving contracts only.
Analysis codes 00-99 are available.
Note: For Turnkey Site Preparation/Earthmoving contracts,

use ELM 40.
31 SITE PREPARATION/EARTHMOVING 95
To be used for site preparation/earthmoving contracts only.

Note: For Turnkey Site Preparation/Earthmoving contracts,

use ELM 41.
32 CIVIL AND BUILDING CONSTRUCTION 95
To be used for Civil Construction-contracts for Building

Construction Contracts only.
Following Analysis Code structure is to be adhered to:

(but only if requested).
00-09 General
20-29 Civil Construction/Buildings (Substructure)
30-39 Buildings (Superstructure)
Page 36

90-99 Dayworks
Note: For Turnkey Civil Construction/Buildings Construction
contracts, use ELM 42.
33 CMEI-CONSTRUCTION 95
To be used for CMEI – Construction contracts only.
Following Aanalysis Code structure is to be adhered to:

10-19 Civil Engineering Works
20-29 Buildings
30-39 Structural Steelwork
50-59 Pipework
80-89 Insulation & Painting (Protective Coating)
90-99 Dayworks.
Note: For Turnkey CMEI –construction-contracts use ELM 43.
34 TANKAGE CONSTRUCTION 95
To be used for Tankage Construction-contracts only.

Analysis code structure yet to be defined.
Analysis code 00-99 are available.
Note: For Turnkey Tankage Construction-contracts, use ELM
44.
35 ELECTRICAL INSTALLATION 95
To be used for Electrical installation/construction contracts
only.
Note: For Turnkey Electrical installation/construction contracts
use ELM 45.
36 INSTRUMENTATION INSTALLATION 95
To be used for instrumentation-installation/construction

contracts only.
Note: For Turnkey for instrumentation-contracts, use ELM 46.
Page 37
37 PIPELINE CONSTRUCTION
To be used for Telecommunication installation/construction

contracts only.
Note: For Turnkey for instrumentation- contracts use ELM 48.

TELECOMMUNICATIONS INSTALLATION
38
To be used for Telecommuniations Installation/Construction
contracts only.
Analysis Code structure yet to be defined.
Analysis Codes 00-99 are available.
NOTE: For turnkey Telecommunications contracts, use ELM

48.
40 TURNKEY CONSTRUCTION GENERAL 95
To be used for coding all construction work to be executed

under “Turnkey-Contracts term” if no breakdown of the work in
specific contracts is required or is not yet foreseen.
Following Analysis code structure is to be adhered to:

00-09 General
10-19 Site Preparation/Earthmoving
20-29 Civil Construction (incl.building constr.)
30-39 MEI Construction
40-49 Tankage Construction
50-59 Electrical Construction
60-69 Instrumentation Installation/ Construction
70-75 Pipeline Construction
76-79 Telecommunication Installation/Construction
Notes: The above breakdown into Analysis Codes should be
used in the preparation of cost estimates and in the
preparation and evaluation of tenders for General Turnkey
Construction-contracts, as far as possible.
For specific Turnkey Construction-contracts, use ELM 41-49,
Page 38
as applicable.
For general ‘Non-Turnkey’ Construction-contract, use ELM 30.
41 SITE PREPARATION/EARTHMOVING (TURNKEY) 95
To be used for site Preparation/Earthmoving Turnkey contracts

only.
Note: For Non-Turnkey Site Preparation.Earthmoving
contracts, use ELM 31.
42 CIVIL AND BUILDING CONSTRUCTION (TURNKEY) 95
To be used for Turnkey Civil Construction-contracts or Turnkey

Building Construction-contracts only.

00-09 General
20-29 Civil Construction/Building (Substructure)
30-39 Buildings(Superstructure)
90-99 Dayworks
Note: For Non-Turnkey Civil Construction / Buildings

Construction-contracts, use ELM 32.
43 CMEI CONSTRUCTION (TURNKEY) 95
To be used for CMEI Construction Turnkey contracts only.


10-19 Civil Engineering Building Works
20-29 Buildings
30-39 Structural steelwork
50-59 Pipework
80-89 Insulation & Painting (Protective coating)
Page 39
90-99 Dayworks
Note: For Non-Turnkey CMEI-Construction -contracts, use

ELM 33.
44 TANKAGE CONSTRUCTION (TURNKEY) 95
To be used for Tankage Construction Turnkey contracts only.

Analysis Code 00-99 are available.
Note: For Non-Turnkey tankage construction-- contracts use

ELM 34.
45 ELECTRICAL INSTALLATION (TURNKEY) 95
To be used for Electrical Installation (turnkey) Construction

Turnkey-contracts only.

Note: For Non-Turnkey Electrical Installation/Construction-

contracts use ELM 35.
46 INSTRUMENTTAION INSTALLATION (TURNKEY)
To be used for instrumentation Installation Construction

Analysis Code structure yet to be defined

Analysis Code 00-99 are available
Note: For Non-Turnkey instrumentation - contracts use ELM

36.
47 PIPELINE CONSTRUCTION (TURNKEY) 95
To be used for pipeline Construction Turnkey-contracts only.

Note: For Non-Turnkey instrumentation - contracts use ELM

37.
48 TELECOMMUNICATION INSTALLATION (TURNKEY) 95
To be used for telecommunication installation Construction

Page 40

Note: For Non-Turnkey instrumentation – contracts, use ELM

38.
50 OTHER CHANGES
To be used to cover those items which are not mentioned in

one of the other ‘ELEMENT’ - Codes.
51 INSPECTION SERVICES
All kind of inspection services such as coating inspection, 98

camp management services, maintenance inspection services
during construction period. Inspection services by consultants
etc.
Allocate appropriate Analyst Code number to keep costs
separate as per contract issued.
Welding inspection by non-destructive testing. (NDT). 96
52 SPECIALIST SERVICES
Contracts for Specialist Services such as for: 84
 Testing and start-up.
Costs for the provision of personnel, supervisory staff and

experts, and/or materials and supplies for testing and start-up
of plant prior to commissioning.
Cost involved in repairs or alterations to the plant during

commissioning, modifications made during the start-up period
to achieve guarantee or other requirements.
Allocate appropriate Analysis Code number to keep costs

separate as per contract issued.
53 MISCELLANEOUS & COMPANY GENERATED CHARGES
Company Generated Charges
Company Generated Charges are those costs which are

untypical and special to the project which if included above,
would give misleading data for cost analyses, because they
are not expected to occur again for similar work. Examples
are: Special air transportation or trucking charges, excessive
repairs or replacement of equipment damaged during
Page 41
transportation (or shipping) or abortive work.

91
 Construction All-Risk Insurances (CAR).
 Air Freight.
This ELM/AN should only be used to allocate cost over and

above the cost for sea freight as is included in the CIF cost for
overseas-purchased company-supplied equipment and
materials.
Reallocations of PDO services, if these are not defined in other

ELM’s e.g. landtrucking from MAF t o site, workshop repairs,
etc.
Notes: A separate Analysis Code number can be allocated for
each particular part of the charges depending on the type of
work, and to be discussed with EPH/16 for cost control
purposes.
This ELM also be used for company workshop charges and

personnel transport by company vehicle if not charged against
operating capital.
54 MODIFICATIONS
Modifications to Existing Units. 90
Expenditure and cost of relocations, re-arrangements, or other

changes to existing plant or equipment, necessary for the
construction of the facilities for the new project. These costs
are to be considered “Capital Expenditures” and as such are to
be included in the cost of the Project.

Note: The cost of making alterations, resisting (i.e., dismantling
and transportation) or modifications to existing assets for other
reasons than described above are generally to be charged
against income (Operating Expenditure). These costs should
not be included in the cost of the project.
Re-erection of an asset at a new site should be charged to
Capital Expenditure.
Page 42

No. No.
60 GOVERNMENT GAS OVERHEADS
To be used in Government Gas Projects, i.e. in those PDO

Projects in which the 3RD digit of the B.I. No=9 (XX9XX)

98 ESTIMATING CONTINGENCY
Estimating Contingency * 99
To estimating Contingency will normally be set such a level

that the total estimate is expected to be the best prediction of
the final cost of executing the defined scope of work. Such an
estimate will have an equal chance of over and under –run,
and is therefore defined as the ‘most probable’ or ‘50/50’
estimate.
The base estimate, plus estimating contingency is intended to

cover those potential cost increases which cannot be related to
a specific activity or cost element but are expected within the
project scope.
Uncertainties such as “a” to “e” below are exemplars of what

will be covered by the estimating contingency,
a) Estimate omissions due to incomplete project definition, or

to inadequacies in the estimating method.
b) Minor changes in design basis, which normally occur
during the detailed design phase. For example, having the
same pumping capacity provided by three rather than two
pumps.
c) Minor construction field changes
d) Minor variances in inflation and escalation rates.
e) Estimate bias, which will compensate for consistent
deviations between actuals, and the estimating method
used.
As the estimating contingency is not related to any specific

engineering ELM, it should be freely assignable by the project
staff, as per the authority levels in the Manual of Authorities
 Note: For PDO Engineering Capital Projects the estimating
contingency is to be included in the “TOTAL ESTIMATE”.
PROJECTS RISK CONTINGENCY

99
Project Risk Contingency*:
Up on firm proposal from Engineering Department, and

approval by Authorising Signatory, additional funds may be
Page 43
included in the budget as RISK CONTINGENCY to cover

specific risks and / or reduce the magnitude and probability of
cost over-run to an acceptable level. This Risk Contingency
makes it less likely that the budget would have to be increased
during project execution. Where at all possible, inclusion of a
Risk Contingency allowance should be clearly identified
against the area of risk.
Approval to allocate Risk Contingency funds to a RFA as per

Manual of Authority delegation. Once it can be established that
the uncertainty no longer exists, that element of the Risk
Contingency should be cancelled. In this manner the Risk
Contingency will reduce progressively throughout the life of the
project, either by approved expenditure or by cancellation.
* NOTE : For PDO-Engineering Capital Projects no Project

Risk Contingency is to be included in the “TOTAL ESTIMATE”
Page 44
Explanatory Notes on Contingencies
There are two separate elements of contingency to be considered in a proposed project budget,
these are: -
(a) ESTIMATING CONTINGENCY and
(b) PROJECT RISK CONTINGENCY
The ESTIMATING CONTINGENCY is that allowance added to the BASE ESTIMATE to cover
statistically established degrees of error, so that the estimate so produce, is the best prediction of
final project cost.
The PROJECT RISK CONTINGENCY is that additional allowance which may be made to the
estimated project cost to cover specific risks or to reduce the probability and magnitude of over-run
on first off or complex projects.
Complexity to be judged on basis of new design/technology or the difficulties of engineering facility

expansions with high disturbance and interference factors.
The definitions of estimating Contingency and Risk Contingency used in this Engineering Standard
Document are largely in accordance with SIPM report EP-56233.
Contingency is added to the base estimate for the following purposes:
a) To cover uncertain elements and inadequacies in the base estimate.
b) To reduce the risk of cost over-run to an acceptable level.
Contingency should not be used as a comprehensive cover for each and every uncertainty or as an
insurance against any conceivable disaster. Otherwise this would lead to a unacceptably high cost
estimate which: -
a) May kill the project by project by producing overly pessimistic economics;
b) Where the project is approved, freeze funds, which could have been usefully employed elsewhere
in the company;
c) Creates a padded control estimate which may permit expansion of scope without due
authorisation at required level of authority.
The following paragraph 1 to 4 detail items, which should not be covered by contingency: -
1. Miscellaneous Small Cost Items, such as supervision, inspection, sundry small materials and
services, temporary facilities, insurance and certification which should be included in the
base estimate.
2. Identifiable Allowances, that have a call -off probability of more than 50% which are related
to specific activities or cost elements, and can therefore be quantified. These should
therefore be included in the base estimate. Typical examples of such allowances are as
follows:
(See next page a) thru’ g).
a) Material take-off allowances such as 3% extra linepipe for a pipeline scaled from map.
b) Buckle allowances, trenching allowances for an offshore pipeline.
c) Foreseeable market conditions.
d) Foreseeable weather downtime.
Page 45
e) New technology.
f) Minor labour disputes.
g) Minor project growth.
Notes: activity-related, relatively small extra costs with a probability of less than 50%, are usually
included under estimating contingency.
3. Scope Changes, these should be covered by separate estimates, separate approval and new
budget allocations through a Change Control Procedure.
For example:
a) Major changes from agreed design basis, such as additional facilities or a change in capacity or
main design parameter of more than 10%
b) A radical rephasing of the project.
c) Physical relocation of the project.
4. Force Majeure Risks, these are normally assessed by means of sensitivity analysis and should be
excluded from contingency unless specifically added by Company management to the Project Risk
Contingency.
Any such additions should be highlighted in the budget proposal. The following are typical examples
in this category.
a) Major strikes, highly exceptional weather conditions, contractor bankruptcy, unforeseen drastic
changes in government regulations.
b) Major variances in inflation, escalation and exchange rates.
c) Major changes in market conditions due to political upheavals, a new oil crisis or other such
major economic variances which could not be foreseen at the time of the estimate.
Contingency levels
1. For Estimating Contingency
The following contingency levels have to be included in the “Total Estimate” for different types of
estimates for PDO capital budgets.
Type Budget Status Class Error Range %Contingency of

Base estimate
1. Order of Magnitude Pending ‘C’ + 40% 6
2. Budge Estimate Firm ‘B’ + 20% 3
3. Budge Estimate Revision ‘A’ + 10% 1.5
2. For Project Risk Contingency
No Project risk contingency is to be included in the “Budget Proposal Figure” except where it is
specifically requested with prior approval of the Engineering Management. Where this approval is
obtained the following percentages are recommended.
Type Budget Status Class Error Range %Contingency of

Base estimate
1. Order of Magnitude Pending ‘C’ + 40% 19
2. Budge Estimate Firm ‘B’ + 20% 9
3. Budge Estimate Revision ‘A’ + 10% 4.5
Page 46
Summary procedure for cost uncertainties in budget preparation
1. Estimate of firm items
+
2. Allowances Activity related extra costs with a probability of more
than 50%
=
3. Base Estimate
+
4. Estimating Contingency % of Base Estimate
=
5. Total Estimate Basis for control estimate issued by ETH/61
+
6. Project Risk Contingency % of Base Estimate defined by
probabilistic analysis
=
7. Budget Proposal Figure
Page 47
NUMERICAL HCG-ELM CROSS REFERENCE TABLE
Hague ELM AN No Refer Hague ELM AN Refer to Hague ELM AN Refer

Classif. No to Classif. No No Group Classif. No No to
Group Group Group Group Group
01 03 15 34 14 33 67 13 28
02 02 14 35 14 34 68 13 28/29
03 02 14 36 14 34 69 13 29
04 02 14 37 14 34 70 13 29
05 02 14 38 12 24/25 71 15 35
06 - - 39 12 24/25 72 14 31
07 - - 40 12 26 73 17 36
08 - - 41 12 26 74 17 36
09 - - 42 - - 75 17 36
10 02 15 43 12 27 76 17 36
11 10 16 44 12 25 77 18 37
12 10 16 45 12 27 78 18 37
13 10 16 46 19 39 79 18 37
14 10 16 47 19 39 80 18 37
15 10 18 48 19 39 81 18 37
16 10 16 49 - - 82 18 38
17 10 18 50 19 39 83 18 38
18 10 18 51 11 19 84 52 47
19 10 17 52* 16 35 85 19 40
20 11 19 53* 16 35 86 19 40
21 11 20 54* 16 35 87 19 40
22 11 19 55* 16 35 88 19 40
23 11 21 56* 16 35 89 19 40
24 11 20 57* 16 35 90 54 49
25 11 22/23 58* 16 35 91 53 48
26 - - 59* 16 35 92 - -
27 11 22 60* 16 35 93 - -
28 10 17 61* 16 35 94 02 14
29 11 20/21 62* 16 35 95 30/48 41/46
30 14 32 63 13 29 96 51 47
31 14 32 64 13 28 97 13 30
32 14 33 65 13 28 98 51 47
33 14 33 66 13 28 99 98/99 50/51
 Only be used for budget items prior 1-1-1984. After this date these numbers are reserved for
off-shore.
Page 48
2 USER FEEDBACK PAGE

From:
To: ETH/6
Any User who identifies an inaccuracy, error or ambiguity is requested to notify the FDH so that
appropriate action may be taken. The User is requested to return this page fully completed,
indicating precisely the amendment(s) recommended.
USER DATE REMARKS

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ENGINEERING REFERENCE DOCUMENT

COST CODING FOR BUDGETING

Approved by Authorised by Date Description/Remark

Oct. 1979 First Issue

Nov. 1980 Second Issue

July 1985 Revised in accordance with DEP

May 1987 Revised in accordance with the

+Information on this page is for use by PDO only.

The ERD system is intended to:

 Publish guidelines or codes of practice.

The objectives of this document are to:

 Achieve uniformity in cost allocation within capital budget items

USER GUIDE LINES

ELM 00 DESIGN AND ENGINEERING GENERAL

ELM 11 MECHANICAL PROCESS/MAIN EQUIPMENT covering the HCG-

ELM 19 MISCELLANEOUS MATERIALS (previous RFA 08)

 The disciplines INSTRUMENTATION (RFA 06) and TELEMETRY/CAO

ELM 16 OFFSHORE EQUIPMENT, covering the HCG-codes 52-62.

SUBJECT INDEX PER ELM/AN

ELM AN No Description Refer HCG

02 DETAILED DESIGN, ENGINEERING AND PROJECT-

10 CIVIL MATERIALS (Supply)

ELM AN No Description Refer HCG

41 SITE PREPARATION/EARTHMOVING (TURNKEY) 44 95

43 CMEI CONSTRUCTION (TURNKEY) 45 95

ELM AN No Description HCG

DESIGN AND ENGINEERING GENERAL

To be used where no greater analysis is required or for other

Conceptual Design services provided by contractors,

Conceptual Design services provided by contractors,

To be used for coding of all costs related to conceptual design,

Conceptual Design services provided by P.D.O

These costs are treated in P.D.O as Capital Expenditure.

Should the Budget Proposal not be approved at the conceptual

When the Budget Proposal has been approved, the

ELM AN No Description HCG

Detailed Design, and Project-services provided by contractors,

To be used for coding of all costs related to detailed design

- Notes: For construction/installation contracts, the

Detailed Design, and Project-services provided by contractors,

- To be used for coding of all costs related to detailed

- To be used for coding of all costs of procurement services, 05

These costs are treated in P.D.O. as Capital Expenditure.

Project and construction services provided by P.D.O

These are treated in P.D.O as Operating Expenditure.

- To be used for coding of all costs related to project

surveys, topographic and soil investigation, computer

Design and Project-services by SIPM 01

To be used for coding of all costs related to design and

Procurement services by SIPM

Site Works and Development

Note: For civil construction equipment and tools, use group82,

Gen. Note: Allocate appropriate AN number as required.

ELM AN No Description HCG

Concrete (cooling) water supply and discharge channels,

Excluded are purely mechanical facilities, such as metallic

Notes: For pumps and drives, use groups 29, ELM 11

For metallic piping and aboveground cooling water lines,

 Excavation and backfill

Concrete foundations/structures and steel structures.

Concrete foundations, supports, floors, stairs, trenches,