CONCEPTUAL < nn STC TAL oe ee ee alas THE QUICKEST, LEAST EXPENSIVE METHODS US SDRC Lt fa JOHN S. PAGE POCOST ESTIMATING ere’s another valuable component of Gulf’s classic estimator's series. This new printing of Conceptual Cost Estimating gives the construction industry and the management staff of chemical, refinery, and industrial plants the information they need to generate fast, reasonably accurate costs for designing and constructing a specified facility, COVERAGE INCLUDES— © Process Equipment © Site Preparation © Site Improvements © Concrete OOOO VORTR © Structural Steel © Iron © Buildings ® Piping ¢ Installation and Material Cost of Electrical Equipment © Insulation ESTIMAI | (6 © Paint and Painting © Construction Equipment ® Ratio Estimating Factors MANUA | © Definitions of Estimate Adjustments be Ce ee aaa PRODUCT #S287 reg ee ISBN 0-8auLS-2L7-7 | 50000 Book Division + PO. Box 2608 | | JN Pitre Ds. 99780884" 152675 SAC Ue Reon ee HCEgoiguera, 5A Grupo Deve Energie Linea D CONCEPTUAL cOsT ESTIMATING MANUAL SECOND EDITION John S. Page Gulf Publishing Company Houston, London, Paris, Zurich, TokyoThis edition reviewed by the author and reprinted August 1997. Conceptual Cost Estimating Manual 2nd Edition Copyright © 1984, 1996 by Gulf Publishing Company, Houston, Texas. All rights reserved. Printed in the United States of America. This book, or parts thereof, may not be reproduced in any form without permis- sion of the publisher. 198765 4 Gulf Publishing Company Book Division PO. Box 2608 ¢ Houston, Texas 77252-2608 Library of Congress Cataloging-in-Publication Data Page, John S. Conceptual cost estimating manual / John S. Page. — 2nd ed. Pp. cm. ISBN 0-88415-267-7 1. Chemical plants—Design and construction— Estimates—Handbooks, manuals, etc. _I Title. TH4524.P34 1996 690’.54— de 20 95-52313 CIP Printed on Acid-Free Paper (00)Be : exo €e! 3h 989 ¥ et? ie oe SO? Cat 3 CONTENTS Preface .... Introduction . Section 1—DISCIPLINES OF WORK Seetion Introduction 1 Direct Cost Items . 1 Construction Equipment . 3 Overhead And Indirects . 3 Home Office Cost ... . 10 Section 2—PROCESS EQUIPMENT Section Introduction .. faaeeene aay Acid Coolers with Pump and Motor Equipment Cost .. 2 Erection Manhours 1B Activators—Vibrating Bin Equipment Cost .. 14 Erection Manhours 15 Aerators—Mechanical High-Speed—Equipment Cost .. 16 High-Speed—Erection Manhours . Ww Low-Speed—Equipment Cost .. 18. Low-Speed—Erection Manhours 19 Compressors Air Power—Synchronous Motor Driven-Equipment Cost - 20 Air Power—Induetion Motor Driven-Equipment Cost ... . 21 Air Power—Synchronous and Induction Motor Driven—Erection Manhours iiiAutomotive and Industrial Service Air—Equipment Cost ... Automotive and Industrial Service Air—Erection Manhours . Centrifugal Air—Plant and High-Pressure—Equipment Cost Centrifugal Air—Plant and High-Pressure—Erection Manhours Industrial Air—Air-Cooled, Two-Stage—Equipment Cost ... Industrial Air—Air-Cooled, Two-Stage—Erection Manhours . Integral Gas Engine—Four Cylinder—Equipment Cost ... Integral Gas Engine—Four Cylinder—Erection Manhours . Packaged Air—Single-Stage, Water-Cooled—Equipment Cost Packaged Air—Single-Stage, Water-Cooled—Erection Manhours . Reciprocating—Electrie Motor Driven—Equipment Cost .. Reciprocating—Electrie Motor Driven—Erection Manhours . Two-Stage, Two-Cylinder, Water-Cooled—Equipment Cost Two-Stage, Two-Cylinder, Water-Cooled—Equipment Cost Two-Stage, Two-Cylinder, Water-Cooled—Erection Manhours Dryers—Air Automatic, Refrigerated—Equipment Cost .... Automatic, Refrigerated—Equipment Cost .... Automatic, Refrigerated—Erection Manhours Automatic, Refrigerated—Erection Manhours Chiller—Equipment Cost .. Chiller—Erection Manhours Surge Arrestors Hydrocarbon and Water Service—Equipment Cost . Hydrocarbon, Water, and Sewage Service—Equipment Cost . Hydrocarbon, Water, and Sewage Service—Erection Manhours Blenders, Mixers, Packers, and Feeders Dry Material Auger and Rotary Drum Blenders—Equipment Cost ...... Dry Material Auger and Rotary Drum Blenders—Erection Manhours ... Fixed Side Mounted Mixers with Top Motors—Equipment Cost . Fixed Side Mounted Mixers with Top Motors—Erection Manhours . Plate Mounted Open Tank Mixers—Equipment Cost . Portable Clamp and Flanged Mounted Mixers—Equipment Cost . Flanged Top Tank Mounted and Plate Mounted Open Tank Mixers—Erection Manhours Gearmotor Mixers—Equipment Cost Gearmotor Mixers—Erection Manhours . Batch and Pipeline Homogenizer Mixers—Equipment Cost Batch and Pipeline Homogenizer Mixers—Erection Manhours . High-Intensity Mixers—Equipment Cost .. High-Intensity Mixers—Erection Manhours Bag and Rigid Container Vibrating Packers—! quipment Cost . Bag and Rigid Container Vibrating Packers—Erection Manhours Boilers Package Type—Equipment Cost .. Package Type—Erection Manhours . Boiler Stacks—Equipment Cost .. Boiler Stacks—Erection Manhours ...... SSSLBSRESBSNSRRS SEE B8SSS8 ivClassification Equipment Cone Pelletizers—Equipment Cost ... Cone Pelletizers—Erection Manhours ceeeee Turbo-Sereen Cyclone and Pressure Sifter—Equipment Cost . Turbo-Screen Cyclone and Pressure Sifter—Erection Manhours Rotary Screens—Equipment Cost . a Rotary Screens—Erection Manhours . Condensers and Receivers Vertical Tube Surface—Equipment Cost . . Vertical Tube Surface—Erection Manhours . Conveying Equipment Conveyors—Open Belt—Equipment Cost ... Conveyors—Open Belt—Erection Manhours Conveyors—Belt Enclosed with Walkway—Equipment Cost Conveyors—Belt Enclosed with Walkway—Erection Manhours . Conveyors—Spaced Bucket Elevators, Belt-Driven—Equipment Cost ... 79 Conveyors—Spaced Bucket Elevators, Chain Driven—Equipment Cost .. 80 Conveyors—Spaced Bucket Elevators, Chain- or Belt-Driven— Erection Manhours . Conveyors—Continuous Bucket Elevators, Belt Driven— Equipment Cost . Conveyors—Continuous Bueket Elevators, Chain-Driven— Equipment Cost aie Conveyors—Continuous Bucket Elevators, Belt. or Chain: -Driven— Erection Manhours . . Screw Conveyors—Equipment Cost Screw Conveyors—Erection Manhours .. Dryers—Drum Atmospheric—Single Drum—Equipment Cost Atmospheric—Double and Twin Drum—Equipment Cost Atmospheric—Single, Double, and Twin Drum—Erection Manhours Dryers—Vacuum Conical Rotating—Equipment Cost Double Drum And Rotary—Equipment Cost . Conical Rotating and Double Drum—Erection Manhours .. Rotary—Carbon And Stainless Steel—Erection Manhours . Dust Collectors Centrifugal Scrubbers—High-Capacity, Hot-Rolled Steel— S828 SBR RRR Equipment Cost .. 94 Centrifugal Scrubbers—Medium-Capacity, Hot-Rolled Steel— Equipment Cost . . 95 Centrifugal Serubbers— ‘High-Capacity, Stainless Steel-Equipment Cost - 96 Centrifugal Serubbers—Medium-Capacity, Stainles Equipment Cost . Centrifugal Scrubbers—High- and Medium. Capacity, Hot Rolled and Stainless Steel—Erection Manhours . Cyclones—Hot-Rolled Steel—Equipment Cost. vCyclones—Stainless Steel—Equipment Cost Cyclones—Hot-Rolled and Stainless Steel—Erection Manhours Filter Cartridge or Tube House Filters—Equipment Cost .. . Filter Cartridge or Tube House Filters—Erection Manhours Packaged Motor Operated Blowers—Equipment Cost Packaged Motor Operated Blowers—Erection Manhours ...........66++ 105 Fans and Blowers Blowers—Rotary—Equipment Cost ... Blowers—Rotary—Erection Manhours Centrifugal Fans—Equipment Cost . Centrifugal Fans—Erection Manhours Cast Iron Industrial Fans—Equipment Cost .. Cast Iron Industrial Fans—Erection Manhours Heavy Sheet Steel Industrial Fans—Equipment Cost . . Heavy Sheet Steel Industrial Fans—Erection Manhours .............++ 3 Feeders Heavy Duty Belt—Equipment Cost .........06..00cc0ceeeeeeeae seca Heavy Duty Belt—Erection Manhours : Pre-Wetting Dry Chemical—Equipment Cost . Pre-Wetting Dry Chemical—Erection Manhours . Pre-Wetting Dry Chemical, Package Units—Equipment Cost Pre-Wetting Dry Chemical, Package Units—Erection Manhours Dry Material, Vibrating—Equipment Cost .. Dry Material, Vibrating—Erection Manhours .... Dry Material, Volumetric and Gravimetric—Equipment Cost Dry Material, Volumetric and Gravimetric—Erection Manhours Dry Material, Wing and Conveyor—Equipment Cost . Dry Material, Wing and Conveyor—Erection Manhours . Filters Gravity Filtration Units—Equipment Cost .......0....06ccseeeeeeeee . 126 Gravity Filtration Units—Erection Manhours . Pressure Type—Equipment Cost . Pressure Type—Erection Manhours Rubber-Lined—Equipment Cost Rubber-Lined—Erection Manhours . Vibrating Screens—Equipment Cost Vibrating Screens—Erection Manhours Flakers Cooling Drum—Equipment Cost . . Cooling Drum—Erection Manhours . Generators Inert Gas—Equipment Cost .. Inert Gas—Erection Manhours . Gas Pulsation Dampers Dampers—Equipment Cost .. Dampers—Erection Manhours 131 136 137 viHeaters Deaerating Feedwater—Equipment Cost ... Deaerating Feedwater—Erection Manhours Gas-, Oil-, and Dual-Fired—Equipment Cost .. Gas-, Oil-, and Dual-Fired—Erection Manhours Heat Exchangers Hairpin Type—Equipment Cost .. Hairpin Type—Erection Manhours . . Shell and Tube, Fixed Tube, and U-Tube—Equipment Cost Shell and Tube, Fixed Tube, and U-Tube—Erection Manhours . For Heating Water—Equipment Cost . For Heating Water—Equipment Cost . For Heating Water—Erection Manhours . Pumps Centrifugal—Single-Stage, Vertical Split Case—Equipment Cost .. Centrifugal—Single-Stage, Horizontal Split Case—Equipment Cost . Centrifugal—Single-Stage, ANSI and API 610—Equipment Cost Centrifugal—Two-Stage and Multi-Stage—Equipment Cost Centrifugal—Single-Stage In-Line—Equipment Cost Gear—Light and Heavy Duty—Equipment Cost. Sewage—Horizontal and Vertical, 1,750 RPM—Equipment Sewage—Horizontal, 1,750 RPM—Equipment Cost .......... Sewage—Horizontal and Vertical, 1,150 RPM—Equipment Cost Sump and Plunger—Equipment Cost . Vertical Turbine—Single and Multi-Stage. i Centrifugal—Single, Two, Multi, and In-Line Single-Stage— Erection Manhours Gear—Light and Heavy Duty—rection Manhours . Sewage—Horizontal and Vertical—Erection Manhours Sump and Plunger—Erection Manhours ..... Vertical Turbine—Single and Multi-Stage—Erection Manhours . Reactors Glass-Lined, Agitated, Jacketed—Equipment Cost . Glass-Lined, Agitated, Jacketed—Erection Manhours . Steam Jet Ejectors Single-Stage—Equipment Cost ... Single-Stage—Erection Manhours .. Gas Scrubbers High-Energy Venturi Type—Equipment Cost .... High-Energy Venturi Type—Erection Manhours . Separators Vane Type—Equipment Cost . Vane Type—Equipment Cost . . Vane Type—Erection Manhours .... Vibrating—Equipment Cost ........ Vibrating—Erection Manhours . viiAPI Type Oil/Water—Equipment Cost .... API Type Oil/Water—Erection Manhours . Size Reduction Equipment Crushers—Equipment Cost .......... Crushers—Erection Manhours ............- Impact Breakers—Equipment Cost ........... Impact Breakers—Erection Manhours .........sesseseeeeeeees +++ 183 Reversible and Non-Reversible Hammermills—Equipment Cost ........ 184 Reversible and Non-Reversible Hammermills—Erection Manhours . Ring Type Granulators—Equipment Cost ......... Ring Type Granulators—Erection Manhours ..... Water Softener System Hot Process Water—Material and Equipment Cost . Hot Process Water—Installation Manhours Tanks API Cone Roof Storage—Subcontract Installed Price . API Cone Roof Storage—Subcontract Installed Price . API Floating Roof Storage—Subcontract Installed Price ASME Spheres—Subeontract Installed Price Fintube Heating Coils—Equipment Cost .. Fintube Heating Coils—Erection Manhours Fired Heaters, Fintube Type—Equipment Cost Fired Heaters, Fintube Type—Erection Manhours . 197 Suction and Line Type Fuel Oil Heaters—Equipment Cost 198 Suction and Line Type Fuel Oil Heaters—Erection Manhours . 199 Propane Storage—Equipment Cost ... Propane Storage—Erection Manhours . Vessels Shop Fabricated—Average Weight, Pounds per Linear Foot . Horizontal, Shop Fabricated—Cost per Ton .... Vertical with Angle Legs, Shop Fabricated— Cost per Ton Vertical with Anchor Ring and Skirts, Shop Fabricated— Cost per Ton Tray Rings, Shop Fabricated—Cost Each . Column Trays, Shop Installation—Cost Each Demisting Pads, Shop Installation—Cost Each . Shop Stress Relief—Cost per Ton ......... Removable Type Trays—Material Cost Each Removable Type Trays—Material Cost Each Demisting Pads—Material Cost Each . Demisting Pads—Material Cost Each . Vessels—Field Erection Manhours per Ton Tray Installation—Field Erection Manhours Each . : Demisting Pads—Field Erection Manhours Bach .......-....--2-++++++ viiiSection 3—SITE PREPARATION Section Introduction Area Clear and Grub—Manhours per Acre .. Area Cuts and Fills—Average Cubic Yards per Acre Area Cuts and Fills—Average Manhours per Acre Area Cuts and Fills—Fill Cost per Acre . Section 4—SITE IMPROVEMENTS Security Fence—Material Cost in Dollars and Labor Cost in Manhours .... 219 Railroad and Spurs—Material Cost in Dollars and Labor Cost in Manhours ..........--- cesses ee eesen et eceeeenees Tank Dikes—Material Cost in Dollars and Labor Cost in Manhours . . Concrete Trenches—Material Cost in Dollars and Labor Cost in Manhours - 220 Drainage—Material Cost in Dollars and Labor Cost in Manhours .........221 Catch Basins and Manholes—Material Cost in Dollars and Labor Cost in Manhours Road Culverts—-Material Gost in Dollars and Labor Cost in Manhours 218 Section 5—CONCRETE Section Introduction Earth Backfill Materials—Cubie Yards . Excavation And Backfill—Manhours per Piece of Equipment . Earthwork for Equipment Structures, Pipe Racks, and Sleepers— Manhours per Piece of Equipment .......ssseseseceeeeeeetereeeeeeeeees 225 Concrete Required for Equipment, Equipment Structures, Pipe Racks and Sleepers—Cubic Yards per Piece of Equipment .........:esesereeeeeeeee 226 Forms, Reinforeing, Embedments and Concrete—Material Cost per Pieces of Equipment Forms, Reinforeing, Embedments and Concrete—Installation Manhours : Nonshrink, Nonmetallic Grout—Square Feet Required . Nonshrink, Nonmetallic Grout—Material Cost. . Nonshrink, Nonmetallic Grout—Installation Manhours . Fireproofing Structural Steel—Material Cost ....... Fireproofing Structural Steel— Installation Manhours Fireproofing Vessel Skirts—Material Cost . tee Fireproofing Vessel Skirts—Erection. Manhours Beareseanet ppsrtonsrsneanear este Section 6—-STRUCTURAL STEEL AND MISCELLANEOUS IRON Section Introduction Structural Steel—Tons Required per Pieces of Equipment . Miscellaneous Iron—Tons Required per Pieces of Equipment . Pipe Rack Steel—Tons Required per Pieces of Equipment ... Structural Steel—Equipment Supports and Structures— Material CostStructural Steel for Pipe Racks and Miscellaneous Iron for Equipment—Material Cost ........... 0.020 c cece cece eee e eee eeneeeeeeee 241 Structural Steel and Miscellaneous Iron for Equipment, Equipment. Supports and Structures, and Pipe Racks—Erection Manhours ........... 242 Section 7—BUILDINGS Section Introduction . = 243 Building Types and Descriptions «243-244 Building Materials—Cost per Square Foot . = 245 = 246 Building Erection—Manhours per Square Foot . Section 8—PIPING Section Introduction Shop Furnish and Fabricate Pipe and Fittings— Quantities Required for Pieces of Equipment ..............0000eeee00+ 248 Cost for Pieces of Equipment . Cost for Pieces of Equipment . Field Furnish, Fabricate and Erect Pipe, Fittings and Valves— Quantities Required for Pieces of Equipment . Material Cost for Pieces of Equipment .. Material Cost for Pieces of Equipment Material Cost for Pieces of Equipment Material Cost for Pieces of Equipment .. 7 Field Erect Shop Fabricated Spools—Manhours for Pieces of Equipment... 256 Field Furnish, Fabricate and Erect Pipe, Fittings, and Valves Labor Manhours for Pieces of Equipment Labor Manhours for Pieces of Equipment Miscellaneous Pipe Items—Material Cost for Pieces of Equipment . Miscellaneous Pipe Items—Manhours Required for Pieces of Equipment X-Ray and Stress Relieving—Subcontract Cost ..........ceseeeeneee eens 261 Section 9—ELECTRICAL Section Introduction 6.0.0... .cccsecee eee ee eect nescence erence eee Electrical Power—Material Cost. Electrical Power—Installation Manhours Electrical Lighting—Material Cost ...... Electrical Lighting—Installation Manhours Miscellaneous Instrumentation—Material Cost . Miscellaneous Instrumentation—Installation Manhours . Section 10—INSTRUMENTATION Section Introduction . . 269 Instruments—Number Required . = 270 Instruments—Material Cost .... 271 Instruments—Installation Manhours 2272 Control Valves—Material Cost 273Standards, Tray Supports, Trays, Tubes, and Tube Bundles— Material Cost Standards, Tray Supports, Trays, Tubes, and Tube Bundles— Installation Manhours Section 11—INSULATION Section Introduction . Square Feet Required Equipment—Material Cos: .. Piping—Material Cost Piping and Equipment—Installation Section 12—PAINTING Section Introduction Paint—Equipment—Square Feet Area, Pieces of Equipment . 282 Paint—Structural Steel and Piping—Square Feet Area ... » 283 Paint—Miscellaneous and Pipe Rack Steel—Square Feet Area = 284 Paint—Equipment—Material Cost. . = 285 Paint—Equipment—Total Manhours . 286 Paint—Structural Steel—Material Cost . - 287 Paint—Structural Steel—Total Manhours . - 288 Paint—Piping—Material Cost. . 289 Paint—Piping—Total Manhours 290 Paint—Miscellaneous and Pipe Rack Steel—Material Cost Paint—Miscellaneous and Pipe Rack Steel—Total Manhours Section 13—PAVING + 293 + 204 Section Introduetion . Asphalt Paving—Total Sul Conerete and Gravel Pavement—Total Material Cost Concrete and Gravel Pavement—Total Manhours .. Section 14—PRORATABLES Section Introduction ... Proratable Materials— Total Cost Proratable Labor—Total Manhours .. Section 15—CONSTRUCTION EQUIPMENT Section Introduction 4 Equipment Base Rental or Purchase, Fuel, Oil, Grease And Supplies— Total Cost Equipment Service Labor—Total Manhours . Section 16—OVERHEAD AND INDIRECTS Section Introduction ... Engineering and Supervision Personnel—Total Manhours - 301 . 302 xiOffice Personnel—Total Manhours Other Indirect and Temporary Construction—Total Manhours . Temporary Construction Materials—Total Cost ... Payroll Burdens and Benefits and Other Indirect Materials—' Section 17—HOME OFFICE COST Section Introduction .............666 Hee Engineering Design—Manhour Range Allowance . Engineering Design—Manhour Range Allowance . Engineering Design—Manhour Range Allowance . Engineering Design—Manhour Range Allowance . Engineering Design—Manhour Range Allowance . Other Cost as a Percent of Engineering Labor Dollars Engineering Design—Manhour Spread Percentages .. . Section 18—RATIO ESTIMATING FACTORS Section Introduction .......... eae . 316-317 Refinery Process Systems—Direet Cost 318 Liquid Chemical Plants—Direct Cost Percentages - 319 Solid Chemical Plants—Direct Cost Percentages ... - 320 Liquid/Solid Chemical Plants—Direct Cost Percentages . seve BAL Liquid High-Pressure Chemical Plants—Direct Cost Percentages Liquid High-Alloy Chemical Plants—Direct Cost Percentages .. Construction Equipment as a Percent of Direct Field Labor . Overhead And Indirects as a Percent of Direct Field Labor . Home Office Services as a Percent of Total Cost Section 19—DEFINITIONS OF ESTIMATE ADJUSTMENTS 822 - 823 324 824 324 Design Allowance .. «B25 Quantity Allowance - 325 Escalation . B25 - 826 . 326 - 826 Contingencies . Risk FeesPREFACE Long has been the need for a manual on conceptual cost estimating that allows the construction industry and the engineering/management staff of chemical, refinery, and industrial plants to arrive at a reasonable cost for a specified facility. Simply to rely on past records and say that a cer- tain type plant will cost ten dollars per pound produced, and the product can be sold for fifteen dollars per pound, by no means justifies the con- struction cost of the plant. Management of all organizations concerned de- mands more reasoning and is certainly within its rights to do so. When a project is in its planning and evaluating stages, the cost of a complete design and definitive estimate would be, in most cases, too great to justify the design and estimate. Therefore, it becomes apparent. that a less expensive method is needed to determine the feasibility of the plant in mind. By using a very moderate flow sheet design, specifications, and/or equipment lists, by properly applying man-hours, dollars, percent- age values (as are shown throughout this manual in graph and table form), and construction indexes, and by considering other items outlined in the Introduction, a total cost very close to the as-built cost of a com- plete plant should be obtainable for any location in the world. John S. Page xiiiINTRODUCTION This manual contains two methods of conceptual estimating for deter- mining the budget amount or estimated cost to design and construct re- fineries, chemical/petrochemical, and some other types of industrial plants. Method one, when properly applied, produces a semi-definitive concep- tual estimate with an accuracy of + 10%. Method two uses conceptual ratio estimating, and based on the known equipment material dollar value and the application of weighted percent- age costs for all other items, it produces an estimate with an accuracy of +£30%. The information required and procedures to follow for using these two methods of estimating are defined later in this introduction. All equipment and material dollar graph and tables throughout this manual are based on average cost as of January 1, 1996. Due to the ever-changing economic conditions, the use of what is known throughout the industry as indices must be considered and applied against all equipment and material graphs and tables. This will result in a more realistic equipment and material value for a project to be designed and constructed at some future date. Indices are simply numbers for a time frame indicating a percentage of change in regard to a relative cost of a base time frame. There have been many pro and con discussions as to the use of indices; however, they are still the only means for achieving an acceptable estimate where limited information and time are available. There are several indices from which one might choose. I favor the Nelson Refinery (Inflation) Index, which appears in the first weekly addi- tion of each month in the Oil and Gas Journal. The engineer/estimator may wish to use other indices that he is more familiar with and has more xivconfidence in. Should this be the case, it is to be recognized, that as far as this manual is concerned January 1, 1996 is equal to 100. All labor manhour graphs and tables are based on an average productiv- ity of 70%. The engineer/estimator must determine the labor productivity he feels he can achieve for each project and may adjust the graph and table manhours as may be required. Major items that one should consider in determining productivity are: . General Economy . Project Supervision Labor Relations . Job Conditions . Construction Equipment . Weather eae wNe In determining the dollar rate to apply against the estimated manhours the engineer/estimator should first establish weighted composite crew rates. This is simply the listing by craft of the various personnel required for a crew—such as general foreman, foreman, craftsmen, and appren- tices/helpers—and the weighted percentage of their time that will be de- voted to the crew. The weighted percentage of each classification multi- plied by the hourly rate for that classification will result in the weighted hourly rate for each. The sum of all weighted rates will equal the compos- ite crew hourly rate. The total percent of all crew personnel is to equal 100. Using the composite crews and rates, activity crews and rates are to be formed. List the composite crew rates and the weighted percent of time each crew will be devoted to the activity. The weighted percent of each composite crew multiplied by the weighted composite crew rate will result in the weighted hourly activity rate for that crew. The sum of all weighted crew rates for the activity will equal the hourly weighted activ- ity rate. The total percent of all composite crew personnel is to equal 100. See Section One for description of disciplines of work to determine activ- ity crew personnel needed. All manhour tables and graphs include the total manhours, based on 70% productivity, to complete the unit of work as listed. All equipment and material dollar graphs and tables, are based on cost as of January 1, 1996iand include the total unit equipment or material cost as outlined. All graphs and tables that reflect shop fabrication, packaged units, and subcontract items include the total cost of labor, material, overhead and profit of the supplier, and vendor or subcontractor. If the project under consideration is to be located in an area outside the continental forty-eight states, the engineer/estimator must consider other items not covered in this manual. Additives for any or all of the fol- aylowing items may be required and since their costs vary widely for differ- ent parts of the world, they must be researched individually for each for- eign project. 1. Mobilization and demobilization of personnel and equipment. 2. Foreign differential labor pay 3. Permits, licenses, fees, duties 4. Load out, tie down and material handling 5. Transportation and ocean or air freight 6. Camp, family quarters, field office, and storage facilities 7. Rest and recreation for personnel Method One—Accuracy Level of + 10% A method one, semi-definitive conceptual estimate is defined as one that will produce major discipline quantities, manhours and labor, mate- rial, subcontract and total dollars for their cost. As an example, using con- erete as a major discipline of work, and applying this method, the total cubic yards of concrete for equipment foundations would be the result. Based on the total cubic yards of conerete, all inclusive of foundation earthwork, forms, reinforcing steel, embedments, finishing, etc., the total manhours and cost would be achieved. With the overall results of all ma- jor disciplines of work the project can be scheduled and fast-track cost- controlled until such time as a total definitive estimate is available. ‘To achieve a degree of accuracy of + 10% the following information will be required. . Plant capacity, product form, basic process, and raw material . Total general specifications . Plant location (site conditions) |. Preliminary soils report with foundation recommendations . Plot plan and equipment arrangements. P. & I.D’s. (mechanical flow sheets) . Equipment list . Buildings listing type, size, and description SOA AAR wre This same type estimate can be assembled with far less information than that listed above but the degree of accuracy, in all probability would be less than that stated. Method Two—Accuracy Level of +30% A method two, ratio conceptual estimate is defined as one that is based on the known total process equipment material cost and that applies weighted percentages against that cost to achieve the cost of all other ma- jor disciplines of work.Once the cost of all major disciplines of work has been established, quantities and manhours can be achieved by dividing the material dollars by the pre-established unit dollar rate, as outlined in the graphs and ta- bles, and the labor dollars by a pre-established composite activity rate. With the established quantities and manhours the project can be sched- uled and fast-track cost-controlled until such time as a more definitive type estimate is available. To achieve a degree of accuracy of + 30% the following information will be required. 1. Plant capacity, product form, basic process, and raw material 2. Knowledge of general specifications 3. Plant location (site conditions) 4, Equipment list (priced out) In assembling a method one or two estimate it should be recognized that in the rounding off and averaging of material and labor cost and the application of average indices, a certain degree of accuracy is lost insofar as the individual item costs are concerned. However, it is believed that the overall estimate is not seriously affected by this because the items tend to average each other out. I sincerely hope the foregoing will enable the engineer/estimator en- gaged in this type work to turn out more realistic conceptual estimates and assist in the elimination of much guesswork.Section 1 DISCIPLINES OF WORK The following is a broad description of the major items included in the various disciplines of work as outlined within this manual. It should be recognized that all items listed will not necessarily be re- quired for a given project. There may also be other items for a specific project that are not included. Should this occur, the estimator should give consideration to these items and add or deduct accordingly. Direct Cost Items 1. Process Equipment—The equipment cost, labor, material and subcon- tracts necessary to set and erect or install the process equipment in the final position and condition for mechanical operation. 2. Site Preparation—All general preparation of the plant site for con- struction including, but not necessarily limited to, clearing, rough grading, cut, fill, borrow, disposal, soil stabilization and finish grad- ing. 3. Site Improvements—Includes items of work that provide permanent improvements to the plant site, such as drainage ditches, culverts, storm drain pipe, canals, dikes, all base materials for roads, parking lots, and railroads including ballast, railroads, and fencing. Pave- ments for roads, process areas and parking areas are included under “Discipline, Paving.” 4. Concrete—All earthwork, forms, reinforcing steel, miscellaneous embedded items and placing, finishing and curing of concrete for equipment foundations and equipment structures are included here. All building concrete including foundations is included under “Disci- pline, Buildings.” 5. Structural Steel—All cost of procuring, fabricating, and erecting structural and miscellaneous steel, not embedded, for framed struc- tures, equipment supports, equipment platforms, walkways, ladders, 12 Disciplines of Work handrails and pipe supports. Steel for buildings is included under “Discipline, Buildings.” 6. Buildings—All cost of buildings including earthwork, foundations and other concrete, total superstructure, HVAC, plumbing and utility pip- ing to five feet outside of building, insulation, electrical, painting, and all architectual finishes. 7. Underground Piping—All project underground piping serving the project including fire water loops and their components, water lines and special process lines. 8. Above Ground Piping—Includes the fabrication and erection of all above ground process pipe, valves and fittings required for plant op- eration. Installation only of relief valves, control valves, and orifice fittings for instrumentation are also included. The material cost of these items is included under “Discipline, Instrumentation.” 9. Underground Electrical—All labor and material for underground power and lighting, ducts, conduit, wire, cable, ete. Also includes earthwork and concrete for embedments. 10. Above Ground Electrical—All items required for the complete above ground power and lighting systems for the total project, excluding buildings. Also includes the installation of all electrical instruments and their hook-up. 11. Instrumentation—Includes material and labor cost of instrumenta- tion work delineated as follows: © Material cost includes instruments, control valves, relief valves, control panels, meter runs, orifice fittings and all other instrument items plus the tubing, tube bundles, and tray materials required to install these items. © Labor cost includes the installation of the above except as noted. Labor cost to install relief and control valves and orifice fittings is included under Above Ground Piping. Labor cost to install electri- cal hook-up is included under “Above Ground Electrical.” © All header piping labor and material costs are included under “Above Ground Piping.” 12. Insulation—All labor and material cost of insulation, refractories, and linings for process equipment and piping. Building insulation is in- cluded with buildings. 13. Painting—Includes all preparation and protective coating of surfaces with paint and/or epoxy for the total project excluding buildings. 14. Paving—Includes the furnishing and placing of concrete, asphalt, or gravel used for the final surfacing of roads, sidewalks, parking areas, and process work areas as required.Disciplines of Work 3 15. Proratables—Includes the labor and material cost for daily area clean up, all required scaffolding and final test, startup, and pre-commis- sioning assistance. Construction Equipment 1. Rental or Purchase—Cost of rental or purchase of construction equip- ment required to construct the project. Does not include small tools. 2. Service Labor—All labor required to service and maintain the con- struction equipment. Does not include the operation of the equipment when working. Operators are included in the Direct Account Labor. 3. Fuel, Oil, Grease, Supplies—Includes the cost of all fuels, lubricants, and supplies required to operate and maintain the construction equip- ment. Overhead and Indirects The following is a comprehensive list of inclusions, and the scope of the individual project will dictate the actual item requirements. Indirect Labor (Except for Temporary Facilities Labor) All or part of the items described below are used to establish costs for: Salaried indirect Office hourly indirects Field hourly indirects The distribution will vary depending upon the type of project, local la- bor practices, and contractor preferences. Description To Include Engineering salaries— Civil, cost, electrical, general, mechani- estimating cal and structural estimating salaries. Engineering salaries— Project chief engineer; assistant project. field technical support chief engineer; chief field engineer, civil, electrical, mechanical, structural, field, staff, office, piping, instrument engi- neers; coordinators; engineering drafts- men; party chiefs, instrument men,4 Disciplines of Work Watchmen and Janitors—labor Holiday pay Salaries—office clerical Quality assurance—labor Salaries—subcontract. administration Salaries—cost engineering Salaries—scheduling and planning Salaries—technical clerks Material control labor Move in/out—labor Non-productive labor chainmen, rodmen, and laborers tempo- rarily assigned to a field party perform- ing general layout work. Security supervisor, security coordina- tor, guards, watchmen, janitors, labor for supplying drinking water. Note: Does not include contract security personnel. Pay for holidays not worked. Personnel covered by overhead and indirect esti- mate only. Administrative clerks, office clerks, and secretaries. Chief construction inspector, construc- tion inspectors, welding inspector, piping inspector, electrical inspector, boiler in- spector and civil inspector. Salaries for subcontract coordinators. Salaries for cost/schedule supervisor, chief field cost engineer and cost engi- neers. Salaries for chief field scheduler and planner/schedulers. Salaries for technical clerical personnel. Material control coordinators and mate- rial control personnel assigned to imple- ment and follow-up the material control program. Job payroll labor for loading, unloading, and transporting from facilities to proj- ect construction area tools and construc- tion equipment, temporary facilities, etc. Move-in is defined as assembly of tools and construction equipment at jobsite. Move-out is the return of tools and con- struction equipment to other approved destination, in the immediate area of the project. ‘Wages paid to hourly employees during a temporary period when work is stopped. Also wages paid to craftsmen for votingSafety and medical expense—labor Salaries—office Salaries—supervision Sick pay Warehouse salaries Disciplines of Work 5 in accordance with union or government regulations. Welding test labor and jury pay differential. Note: Work stoppage due to weather and show-up time are considered in productivity factors used elsewhere. Safety supervisor, safety inspectors, and medics. Chief accountant, accountants, book- keepers, invoice auditors, expeditors, chief timekeeper, timekeepers, person- nel manager, assistant personnel man- ager, personnel interviewer, data con- trollers, data entry operators, purchas- ing agents, and buyers. Project manager, general superinten- dent, craft superintendents, area super- intendents, assistant project manager, assistant superintendents, administra- tive manager, office manager, area coor- dinators and master mechanic. Wages paid overhead and indirect em- ployees only for authorized absence due to personal illness, as approved by proj- ect construction manager. Warehouse supervisor, assistant ware- house supervisor, warehousemen, tool- room attendants, warehouse laborers— assigned full time to warehouse opera- tion. Note: Must be on job payroll only. Temporary Construction Facilities (Labor and Material) Description Temporary buildings and utilities—labor ‘To Include Labor only for construction or erection, maintenance and dismantling of the tem- porary facilities, in accordance with but not limited to the following: Roads, ditches, bridges, storage areas, parking lots, fencing, buildings, water system, sanitary system, power distribution, tel-6 ~~ Disciplines of Work Temporary buildings and utilities—material and supplies ephone and communications systems, and plant air system. Note: Does not in- clude construction camp, quartering or catering facilities. Material and supplies and maintenance for construction and dismantling of the temporary facilities in accordance with but not limited to the following. Also in- cludes rental of temporary field offices and warehouses, roads, ditches, bridges, storage areas, parking lots, fencing, buildings, water system, sanitary sys- tem, power distribution, telephone and communications systems, and plant air system. Note: Does not include construe- tion camp, quartering or catering facili- Labor Burdens and Overhead Personnel Benefits Description To Include Retirement and savings plan (for overhead and indirect personnel only) Insurance—employees’ life and hospitalization (for overhead and indirect personnel only) Insurance—W/C, B/I, and P/D Taxes—payroll Vacation pay (for overhead and indirect personnel only) Actual cost fixed by the appropriate ac- counting office. Note: Does not include any like or similar item which is a part of a union fringe benefit. Direct premium charges only. Note: Does not include any like or similar item which is a part of a union fringe benefit. Premium expense based on payrolls. Limits conform to the requirements for the state as specified in the contract. FICA and Medicare, state unemploy- ment insurance and federal unemploy- ment insurance. Actual cost for overhead and indirect personnel only based on gross payroll as billed by the appropriate Accounting Of- fice. Note: Does not include any like or similar item which is a part of a union fringe benefit.Disciplines of Work 7 Small Tool and Consumables Description To Include Construction supplies Small tools (in accordance with contract limits) Workmen’s supplies This account should include items that are consumed and, by their use, directly related to construction; for example, sandpaper, rope, chalk, soapstone, emery paper grinding wheels, moil points, saw blades, padlocks, threading dies, drill bits and reamers, rags, brooms and mops, air and water hose for general use. Purchase or rental of hand tools, power operated hand tools, ete. Rental or re- pair parts for such tools will be included in this account. This account includes mi- nor equipment such as small pumps to 8”, vibrators, light plants (800 watt- 3,000 watt), chain saws, pipe threaders, tar pots, small, sand blasting machines, air and chain hoists. This cost will include items that are, by their use, directly beneficial to and for the convenience of workmen; for exam- ple, towels, toilet paper, drinking cups, ice drinking water, hard hats, protective clothing, gloves, boots, salt tablets, soap, drinking water barrels or containers, safety shoes, and work shoes. Credit is to be received for sales by payroll deduc- tion for items charged here. Other Indirects Description To Include Advertising Classified ads, public advertisements. Bond premiums Communications and postage Bid bonds, performance bonds, mainte- nance bonds, and fidelity bonds. Telephone, telegraph, teletype, postage, radio rental or communications system8 Disciplines of Work Containers Dues Engineering supplies Expediting Heat, light, water, and power Insurance—general Legal Licenses and permits Move in/out—supplies and services Office supplies Safety and medical expense, material rented from a third party. Include data lines and couplers. Deposits for returnable containers and reels. Membership dues for clubs and profes- sional organizations, for overhead and in- direct personnel only. Note: Does not in- clude union dues. Surveying instruments (purchase or rental) drafting supplies, surveying sup- plies, blueprint or photostat work, progress photos. Cost for services supplied by expeditors who are not on the job payroll. Public utility charges and heating fuels for job buildings. Cost for water not used for construction purposes. Premiums for builder’s risk, fire and ex- tended coverage, equipment floater cov- erage, non-owned automotive liability, independent contractors’ liability, con- tractual liability, special risk coverage, such as war risk and heavy lift, hull and P&I, umbrella. Abstracts, lawyers fees, court costs, no- tary fees, sign-up expense. Business permits, construction permits, export/import licenses, government in- spection fees, hauling permits. Transportation of tools, and construction equipment by others to project construc- tion area, and miscellaneous supplies consumed and services used, for move-in and -out purposes. Stationery supplies, printing, office equipment purchase, rental or repair, of- fice and warehouse forms and supplies, jobsite reproduction costs and furniture. Medical examination fees, medical sup- plies, safety signs and literature, first-