international construction cost factor location manual

international construction cost factor location manual

While reasonable care has been exercised in the collection of data and testing of this software, the author of the software disclaims any warranty, expressed or implied, as to the accuracy or reliability of the data or calculations contained therein. The results of calculations obtained from the software yield approximate results, which will not always be suitable for every application. The software is designed for use by trained professional personnel and is not a substitute for sound professional judgment. It is the sole responsibility of the user to validate the data presented by the software and to determine whether the results of this program are accurate and suitable for any specific purpose. No guarantee of accuracy or fitness for any purpose is expressed or implied. The author shall not be held liable for any direct, indirect, consequential or incidental damages incurred through use of the data or calculations.The software license is non-transferrable, that is, after downloading the plugin, you cannot redistribute it to anyone.You can support future developments simply by doing things the right way: please do not give this plugin for free to anyone, and encourage your colleagues to download it through the official channel.The software license is non-transferrable, that is, after downloading the package, you cannot redistribute it to anyone.Click on it and the plugin interface will be shown on the screen.The currency converter is based on a webservice, which depends on an active internet connection to work.The correction factors are multiplied by the current prices to form the final total equipment cost.You can change the calculation basis (Percentage or Absolute value) for most items, except for those who are calculated based on the previously mapped items.You can change the calculation basis (Percentage or Absolute value) for most items, except for those who are calculated based on the previously mapped items.http://mvpvo.ru/userfiles/alabama-contractor-reference-manual.xml

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User-defined equipments can have their cost calculation basis overriden by a general expression which takes the equipment size as the expression variable.The design engineer, however, needs to be able to make quick, rough, cost estimates to decide between alternative designs and for project evaluation. Chemical plants are built to make a profit, and an estimate of the investment required and the cost of production are needed before the profitability of a project can be assessed.In the early stages of a project only an approximate estimate will be required, and justified, by the amount of information by then developed.They are based on limited cost data and design detail. These are used for the authorisation of funds to proceed with the design to the point where an accurate and more detailed estimate can be made. Authorisation may also include funds to cover cancellation charges on any long delivery equipment ordered at this stage of the design to avoid delay in the project. In a contracting organisation this type of estimate could be used with a large contingency factor to obtain a price for tendering. Normally, however, an accuracy of about s5 per cent would be needed and a more detailed estimate would be made, if time permitted. With experience, and where a company has cost data available from similar projects, estimates of acceptable accuracy can be made at the flow-sheet stage of the project.These are based on the completed (or near complete) process design, firm quotations for equipment, and a detailed breakdown and estimation of the construction cost. All cost-estimating methods use historical data, and are themselves forecasts of future costs. Some method has to be used to update old cost data for use in estimating at the design stage, and to forecast the future construction cost of the plant.These relate present costs to past costs, and are based on data for labour, material and energy costs published in government statistical digests.http://www.vvk-wiedermann.at/userfiles/alabama-department-of-corrections-classification-manual.xml

Raw materials, products and energy prices, labor and construction costs change at different rates, and plant construction cost indexes are actually a composite, able to compare generic chemical plants capital costs.As stated before, some indexes use information published by other organizations and a delay in data may be verified (like those provide by the BLS). Exceptions to this are the ENR construction and the IC indexes, which present relatively current values.Some industries considered in the process-industry equipment average are chemicals, petroleum products, rubber and paper. The all-industry average encompasses 47 different types of industrial, commercial and housing equipment.Although cost indexes do not usually forecast future escalation, the IC Index stands out for presenting a smaller delay between release date and index date, besides a 12 months forecast. On the other hand, the index is only available from January 2000 (with a value of 100).Published once a month in the Oil and Gas Journal. In order to be able to use the available standard indexes to locations where index data is not available we have to incorporate a new term called the Location Factor (LF) to the standard index value. It is a dimensionless value for a particular location relative to either of the above-mentioned basis:Over the past couple of decades the location factors for various locations are trending close to the value 1. However location factor for a particular region within a country can be easily determined by adding 10% to the index of the reference location for every 1000 miles. The reference location is usually a major industrial location closest to the location where the index is being determined.The accuracy of this type of estimate will depend on what stage the design has reached at the time the estimate is made, and on the reliability of the data available on equipment costs.

In the later stages of the project design, when detailed equipment specifications are available and firm quotations have been obtained, an accurate estimation of the capital cost of the project can be made.The fixed capital cost of the project is given as a function of the total purchase equipment cost by the equation:The direct-cost items that are incurred in the construction of a plant, in addition to the cost of equipment are:As with the basic “Lang factor”, these factors are best derived from historical cost data for similar processes. Typical values for the factors are given in several references, Happle and Jordan (1975) and Garrett (1989). Guthrie (1974), splits the costs into the material and labour portions and gives separate factors for each. In a booklet published by the Institution of Chemical Engineers, IChemE (1988), the factors are shown as a function of plant size and complexity.In Guthrie’s detailed method of cost estimation the installation, piping and instrumentation costs for each piece of equipment are costed separately. Detailed costing is only justified if the cost data available are reliable and the design has been taken to the point where all the cost items can be identified and included.These can be estimated as a function of the direct costs.Typically 20 per cent to 30 per cent of the direct capital costs. Contractor’s fees, if a contractor is employed his fees (profit) would be added to the total capital cost and would range from 5 per cent to 10 per cent of the direct costs. Contingency allowance, this is an allowance built into the capital cost estimate to cover for unforeseen circumstances (labour disputes, design errors, adverse weather). Typically 5 per cent to 10 per cent of the direct costs.These costs can be estimated from the flow-sheet, which gives the raw material and service requirements, and the capital cost estimate.They are divided into two groups.These are the bills that have to be paid whatever the quantity produced.

Certain items can be classified without question, but the classification of other items will depend on the accounting practice of the particular organisation.For this purpose the fixed-cost items should be those over which the plant supervision has no control, and the variable items those for which they can be held accountable.In addition to these costs the site will have to carry its share of the Company’s general operating expenses. These will include:They would add about 20 to 30 per cent to direct production costs at the site. Chemical Engineering, August, pp. 98-104 Chemical Engineering, January, pp. 62-70. Join Eng-Tips Forums! By joining you are opting in to receive e-mail. Students Click Here Eng-Tips Posting Policies Richardson Process Plant Construction Cost Estimating Standards Richardson International Construction Factors Manual www.CostDataOnLine.com introduces Richardson Dynamic Data Richardson Databases for Timberline, US Cost, WinEstimator and Prism software will be available soon.Reasons such as off-topic, duplicates, flames, illegal, vulgar, or students posting their homework. The Eng-Tips staff will check this out and take appropriate action. Already a Member? Login Unlike other methods, Instrumental drives correlations between a variety of data sources to help engineers find and fix root causes. Download Now If these requirements are not addressed at the design stage, lot of time is spent in design iteration when the design reaches the die caster. These design issues lead to increase in time and cost of production leading to delay in time to market and reduced profits for the organization. Download Now DFMPro, CAMWorks and eDrawings together improve collaboration. Download Now This white paper will go through the various assembly level issues, which need to be tackled by various organizations on a regular basis. Download Now Unauthorized reproduction or linking forbidden without expressed written permission.

Registration on or use of this site constitutes acceptance of our Privacy Policy. It's easy to join and it's free. With the constant flow of new construction methods and materials, it can be a challenge for Owners, Construction Estimators, Architects and Engineers to find the time to evaluate all the different cost possibilities. RSMeans makes it easy for you, tracking labor and material cost changes so you’ll always have the most up to date and reliable pre construction costing information at your fingertips. Our cost researchers keep track of the building costs for you, along with a wide range of other key information, including city cost indexes, productivity rates, crew composition, and contractor’s overhead and profit rates. Check here for updates. Training classes are intensive one- and two-day programs complete with workbooks, reference materials and instructors with decades of experience. With the constant flow of new construction methods and materials, it can be a challenge for Owners, Construction Estimators, Architects and Engineers to find the time to evaluate all the different cost possibilities. RSMeans data makes it easy for you, tracking labor and material cost changes so you’ll always have the most up-to-date and reliable pre-construction cost information at your fingertips. It also (ideally) details the terms and conditions of the construction or repair contract and itemises all work to enable a contractor to price the work for which he or she is bidding. Other types of guarantees, such as a bid bond or a materials bond, are sometimes also required by a project owner. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity. This value usually does not include the preplanning, site or right of way acquisition, or design costs, and may not include start-up and commissioning costs.

This total or subtotal is usually identified as such in an estimate report.In construction, these may include such materials as weld rod, fasteners, tape, glue, etc. These uncertainties are risks to the project. The estimated costs of the known-unknowns is referred to by cost estimators as cost contingency. The crew may also include construction equipment required to execute the work. In construction, the costs of materials, labor, equipment, etc., and all directly involved efforts or expenses for the cost object are direct costs. May be a measurement of the hours required. In estimates, escalation is an allowance to provide for the anticipated escalation of costs during construction. A building, plant, road, reservoir, etc. The foreman may be a hands-on worker who contributes to the work completion or a non-working foreman. A general foreman may be in charge of all or some crews. These costs include such things as office space, office staff, operating facilities, etc. They are not associated with any specific project, but may be allocated across projects in a cost estimate. See also Overhead, Indirect cost. The rate may represent the wage rate only, or may include various benefits and labor burdens. These may include or exclude currency exchange rates. To adjust a known cost in Austin to that in Boston, multiply the Austin cost by 1.19. See also City cost index. Note: some attempt to make this gender neutral by renaming this as work hour or job hour or person hour, or something similar. See also Production rate. Note: some sources call this Productivity, an unnecessary confusion. A markup is added on to the total cost incurred by the producer of a good or service in order to create a profit. All of the various trade workers are included in manual labor, including foremen. Examples: safety meeting, travel time, clean up time, wash up time, etc. Open shop is also known as a merit shop. See also Allowance.

Note: some sources use the term productivity for the production rate or man-hour rate, an unnecessary confusion. A production rate greater than the reference production rate indicates a higher productivity. A production rate less than the reference production rate indicates a lower productivity. A man-hour rate greater than the reference man-hour rate indicates a lower productivity. A man-hour rate less than the reference man-hour rate indicates a higher productivity. (The economic concept of productivity is an average measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs).) In estimates, it is an allowance to provide for anticipated profit upon completion of the project. It is calculated by finding the net profit as a percentage of the revenue. For example 1200 mm or 10 each. A QS employs standard methods of measurement to develop a bill of quantities. They can be people, equipment, facilities, materials, tools, supplies, or anything else capable of definition required for the completion of a project activity. It allocates values for the various parts of the work and is also used as the basis for submitting and reviewing progress payments. In VDC (BIM is one method) the modeling consists of the usual three dimensions, plus the time dimension and the cost dimension. It defines and groups a project's discrete work elements in a way that helps organize and define the total work scope of the project. In cost estimating, the hands-on workers contribute to the production and are counted in calculations of the production rate. Other workers supervise or support the hands-on work in some way. This is the pay provided to the worker, excluding any fringe benefits or other labor burdens. Labor unions typically have negotiated agreements which define the wage rates for workers, as well as the rates for fringe benefits. McGraw-Hill Book Company. p. 334. ISBN 0-07-032331-3.

By using this site, you agree to the Terms of Use and Privacy Policy. Please contact us using this form. Thank you! Your submission has been received.Sample Pages View some sample pages of this book. ? Need help? Call us on 61 8 9424 5800 or send us an email. Stay up to date Subscribe to be the first to know of new releases. Thank you! Your submission has been received. Whilst this company provides the data for inclusion in each edition, it relies extensively on the professional expertise of many firms throughout Australia and overseas to ensure the accuracy and currency of all the published information. However, published sources of this data available to estimators are very limited. Preliminary plans are in place for the development of two standard model designs with quantities - one for a commercial building and one for a process plant. To simplify the effort, the models will be greatly simplified proxies for a full design. ICEC members from various regions and locations will then be requested to estimate the cost of these model facilities using local costs, productivities, allowances, and so on within given estimate basis assumptions and guidelines. The goal is to have a preliminary model ready to finalize at a workshop at the ICEC World Congress in Toronto in Keywords: cost engineering, estimating, international location factors, international cost models INTRODUCTION Globalization is now a hot topic in the business and property development sectors. One of the outfalls of globalization is that owner firms must increasingly consider alternative worldwide locations for their capital investments in facilities and process plants. Because capital costs are a key determinate in the location decision, the globalization trend has also created a challenge for cost estimators and quantity surveyors. Cost professionals have developed excellent location factoring methodologies to address this challenge.

However, the sources of site-specific factors that the methodology requires are very limited. The International Cost Engineering Council (ICEC) has long recognized this limitation and is now working to provide additional reliable location factor information. 1 ICEC is a worldwide confederation of cost engineering, quantity surveying and project management associations with a membership base of 44 national associations located in 40 countries. All PAQS member associations (except one) are members of ICEC. A major objective in the development of the cost model is to draw on this vast international network to obtain input into the model from cost experts representing as many member associations as possible. If successful, this project will provide a good example of how this international network can be effectively used to collaborate on further international research projects. The potential in this respect is enormous. LOCATION FACTORING Location factors are a vital product of any cost management service organization supporting clients with global assets and projects. One thing is for certain - location factors will be challenged. So, not only is it important to have an easily-understood and logical method of developing location factors, the process must be supported with hard data from a well-defined survey and a project execution knowledge that only comes through experience 1. All capital projects go through phases of project scope development. In early phases, owners identify potential opportunities for improving their business results and these often involve capital investments. There are usually many capital investment alternatives that will address the opportunity. Often, the alternative involves where to locate a facility (i.e. a building, process plant or other capital asset). Before investing major capital funds in developing the scope and design of a facility, owners need to narrow their options down to a few prime candidates.

This early decision requires that cost estimates be prepared of the facility in alternative locations based on limited scope definition. These early feasibility or conceptual estimates (eg. AACE International Class 5 or 4) often involve some sort of factoring methodology. Unfortunately, there is no one single location factor for all cost types. For example, the cost of process equipment (exclusive of markups for shipping, taxes and so on) is more or less global in nature, while the cost of construction labor varies widely from location to location. This means that the location factor for a facility with no equipment and lots of field labor will be very different from that for a facility with lots of equipment and less field labor. To address this complication, the cost engineering profession has developed a location factoring method that decomposes the facility cost into categories for which more detailed item-specific location factors can be relied upon. Simply stated, the method applies separate location factors to each cost type; e.g., one for field construction hours, one for labor rates, one for each type of bulk material and so on. This method was initially developed by Bernard Pietlock 2 from the AACE-I and then further developed into one of many Recommended Practice Guides produced by the AACE-I 3. Detailed item-specific factors can then be used to produce a single location factor for a given type of facility. This paper does not go into the details of this method.The first source the authors could find dates from Most of the factor data was contained in technical papers using widely different sources of information, for different locations, and with varying basis of the costs (if documented). In 1990, McMillan and Humphreys published a compiled listing of all the recent location cost sources (including country specific cost references) they could find up to that time 5.

In 1994, John Barry stepped up to be a voluntary program manager of an ICEC effort, in conjunction with Richardson s Engineer Services (since acquired by Aspen Technologies), to publish international location cost factor information that was informed by ICEC experts 6. The Richardson s product, together with a competing text published by John McConville CCC of Compass International 7, became the leading published sources of international location cost factors. Unfortunately, in 2005, Aspen Technologies discontinued its updates of the Richardson s text. The loss of this product was felt in the industry. The remaining sources generally reflect the various authors personal experiences and knowledge that, while valid and useful references, would be improved if confirmed through an objective industry wide source such as was envisioned by ICEC in Estimating deals with a world of uncertainty and probabilistic costs, and it is never wise to rely on a single data point, or data with unknown bases.This approach will form the basis for the ICEC Model.Although these factors are usually developed to reflect the relative cost differences between various countries, they also can be developed to reflect regional differences within the base country itself. This method does require a certain level of computer-aided estimating capability. That amount is dictated by the budgets and needs of the users. The benefits of the factoring method include the following: - It generates relative cost differences (percent), not absolute currency values, which means that estimates for factoring can be used over and over again, and various estimates can be used and maintained for providing location factors that represent various types of construction (civil, residential, petrochemical, specialty chemicals, etc.); and - The pricing of labor, material, equipment, and other project-specific data is compared and tracked at a trade and commoditiy level and can be surveyed on a periodic basis.

Turnaround is quick and it can be managed by one person. A fully-developed factoring method requires a detailed survey of labor, material, equipment, and other project-specific data completed for the base location on a periodic interval (say once a year). The same survey then can be priced out in a new location and compared to the base data. The survey must be organized, constructed, and worded in such a way that the suppliers 6 What seems clear and precise in one culture may not be in another. With first-time suppliers, a face-to-face explanation and walk-through of the survey and a review of the factoring method that the survey supports needs to take place. Once a survey is priced out and compared against comparable base location data, the individual factors, as well as the resulting location factor, need to be shared with the suppliers. Obtaining several sources of data from a location helps to improve the accuracy of the output. The type of information that needs to be surveyed depends on the structure and level of detail required for the specific factoring method used. The most common sources for pricing a survey are active full-service design contractors in the various locations. THE ICEC COST MODELS The ICEC product will be based on the accepted principles of location cost factoring; i.e., factors for specific items of cost will be developed and applied to a pre-defined facility cost model to yield an overall weighted location factor. A challenge of the effort is to minimize the input required from volunteers while maximizing the number of observations obtained from them. Preliminary plans for the ICEC product call for the development of two standard model designs with quantities - one for a commercial building and one for a process plant. For example, a building or process plant may be represented by a set of 10 to 20 material items, weighted in accordance with their significance to project costs.

ICEC SOURCES OF INFORMATION ICEC will cover as many regions as possible where statistically meaningful information can be obtained. ICEC members from various regions and locations will be requested to estimate the cost of the model components using local costs, productivities, allowances, etc.Data for even a single unit rate for one material item will be a useful input. 7 This will require clarity in terms of the information required and it is important that those involved are all made feel part of a team where ideas and suggestions can be canvassed and discussed. One such mechanism for obtaining data may be through the AACE-I s Cost Estimating Committee listserv. Anyone can join this valuable forum where fellow professionals seek and offer opinion, advice and data on estimating topics. Location factors are a common topic of discussion 9. PRODUCT DEVELOPMENT AND IMPLEMENTATION ICEC plans to implement the data input and final product online via the ICEC website. ICEC will conduct a product development workshop at AACE International s July 2007 Annual Meeting in Nashville, Tennessee 10. At that workshop, ICEC will solicit team members and further define the scope of the project and detailed plans. As many ICEC member associations will not be represented at this meeting, all associations are invited to put forward suggestions for consideration at the workshop. Details of the workshop outcomes will then be made available to all members on the ICEC website. ICEC will then ask for cost expert volunteers from the various member associations to comment on the plans and then to provide initial data for their region. Each member society will be asked to identify a person in their organization that can help marshall input from its members.

The goal is to have a preliminary product ready to finalize at a workshop at the ICEC International Congress in Toronto in July Further information on how to sign up for this listserv can be found at 10 Details about the meeting schedule can be found at 8 Recognising the voluntary nature of such projects, this project is deliberately structured so that the time required of individual contributors will be kept to a minimum. ICEC would like to invite all ICEC and PAQS members to contribute to the project. Further information can be obtained from the Project Leader, John Hollmann at or the ICEC Secretary-Treasurer, Peter Smith at 9 Note: As AACE International Recommended Practices Many start-up Many start-up companies fail because of insufficient cash flow. From the perspectives of both owner and One of the aspects that is within the control of the project team is the planning. Almost everything we It is more important than its unglamorous name suggests and plays a major part in any Figure 7 1 provides an overview of the following major How SE is taught Humphrey s book s approach The use of standardized and modular designs to reduce engineering The Strategic Plan is organized Numerous estimates are This document provides information relating to the above vacancy While there Best Practices for Managing State Information Technology Projects Supplied by The Material requirement Programme specifications are produced and then reviewed LO 2 Accept a new client or confirming the continuance Version: 22 April 2003 They are a principal means of communicating accounting information to those outside an activity.