Capital Project Estimate Classification

THS Standard Guidelines

Item Detail

Class number 0 1 2 3

Description Project Concept Feasibility Project Approval Control

Purpose Test business case and Select project option & Basis for approval to proceed Project management info.
strategic fit. Develop plan of demonstrate viability. with project. Selected option Detailed engineering complete.
action & intentions. Test key aspects. engineered & budgeted fully. End-Of-Job forecast.

Accuracy Without contingency +45% +25% +15% +10%

Contingency Typical at 85% 30%+ 15-20% 8-12% 5-8%

Days to prepare 5 15-25 25-100 90-150

Cost of estimate <1% 1-2% 3-5% 10-20%

Engineering design Percent complete 1% 10% 20% 30-50%

Scope definition Strategic intent, market Conceptual Preliminary Detailed Finalised

analysis, business fit

Project Team Multidisciplinary Ad hoc Core team Full time team Implementation team

Site and Land Location & conditions Assumed General / preliminary Finalised Finalised
Maps & surveys None Preliminary Detailed Detailed
Soils analysis Assumed Preliminary Detailed Finalised
Foundations tests None Assumed Preliminary Finalised
Hydrology Assumed Preliminary Detailed Finalised
Infrastructure requirements Assumed Preliminary Detailed Finalised
Site visit Optional Recommended Essential Team on site

Infrastructure Logistics (road, rail, etc) Assumed Preliminary Detailed Finalised

Utilities (water, electricity, etc) Assumed Preliminary Detailed Finalised

Plant & process Nature of plant Conceptual Probable Selected Finalised

Plant capacity Assumed Preliminary Finalised Finalised
Layout Assumed Assumed Detailed Finalised
Process design criteria Conceptual Detailed Finalised Finalised
Process Flow Diagrams Block-flow Preliminary Optimised & finalised Finalised
Energy & Mass Balances Simplified, if possible Preliminary Optimised & finalised Finalised
Laboratory / bench scale tests If available Essential Finalised Finalised
Pilot plant tests None If possible Essential Finalised
Equipment selection & sizing Notional & estimated Preliminary Optimised & detailed Finalised
Specifications None Typical General Finalised
Control philosophy Assumed Preliminary Detailed Finalised

Engineering design Mechanical GA's None Outline First-pass optimised Detailed

Civil & structural GA's None Outline Preliminary Finalised
Piping layouts None Basic outline Preliminary Detailed
Electrical drawings None Outline for major items Line drawings Finalised
Instrumentation Assumed Outline for major items Line drawings Finalised
Piping & Instrumentation Diagrams None Preliminary Detailed Finalised

Legal Permits, licenses, rights, royalties Assumed Known Key permits Finalised

Sustainable dev. Safety & health Assumed Considered Detailed Finalised

Environmental Impact Assessment Assumed Preliminary Finalised Finalised
Social Impact Assessment Assumed Considered Detailed Finalised
Energy conservation Considered Preliminary Detailed Finalised
Water conservation Considered Preliminary Detailed Finalised
Carbon balance Considered Preliminary Detailed Finalised
Emissions (air, water, etc) Considered Preliminary Detailed Finalised

Project risk analysis Technical Considered Preliminary Detailed Detailed

Legal Considered Preliminary Detailed Detailed
Financial Considered Preliminary Detailed Detailed
Reputational Considered Preliminary Detailed Detailed

Project Management Project implementation plan Outline Preliminary Detailed Finalised

Project schedule Major milestone First-pass master Master with critical path Optimised & final
Equipment delivery schedule None Estimates Major final, minor preliminary Firm delivery periods
Quality assur. plan (procurement) None Notional Preliminary Finalised
Risk management plan None Preliminary Detailed Finalised
Stakeholder management Considered Preliminary Detailed Finalised

Op cost estimate Dominant source of estimates Historical data Single budget quotes / Multiple budget quotes / Tenders, detailed rates
historical data tenders
Quantification basis Factored Key quantities / parametric Zero based, detailed take-off Final take-off
Contingency Factored Parametric Simulation model Simulation model

Capital cost estimate Work Breakdown Structure None Preliminary Detailed Finalised
Dominant source of estimates Historical data, ratios & norms Single budget quotes / Multiple budget quotes / firm Tenders
historical data quotes, material take-offs
Estimate prepared by Project Engineer Senior Engineer Projects / Estimating Dept Projects / Estimating Dept

Capital quantification Major equipment Factored Detailed take-off Final take-off Final take-off
Minor equipment Factored Prelim take-off / factored Detailed take-off Final take-off
Mechanical work % of equipment value % of equipment value Rates / quotes Detailed take-off
Civils Factored Key quantities / parametric Detailed take-off Final take-off
Structural steel Factored Key quantities / parametric Detailed take-off Final take-off
Piping % of equipment value % of equipment value Preliminary take-off Detailed take-off
Instruments % of equipment value % of equipment value Preliminary take-off Detailed take-off
Electrical Factored per kW Key quantities / parametric Detailed take-off Final take-off
EPCM Factored Key quantities / parametric Detailed take-off Final take-off
Owner & indirect costs % of total Key quantities / parametric Detailed calculation Final take-off
Contingency Factored Parametric Simulation model Simulation model

Project reviews Techno-business review Basic Preliminary Final Updated

Financial evaluation (FD) None Preliminary Final Updated