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Engineering cost % on electrical EPC projects

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rockman7892

Electrical
Apr 7, 2008
1,161
I was interesting in hearing others experiences and/or feedback on what percentage of the overall cost of electrical EPC projects is typically related to engineering. I'm defining EPC projects as projects that are primarily electrical in nature and don't necessarily have any significant civil, mechanical, or architectural content other than minor supporting infrastructure for supporting new electrical equipment.

I've always heard the rule of thumb to be about 10% of overall EPC project but not sure how this typically matches reality or how much variance there is with this estimate based on project type and complexity.

In terms of variability I'd expect that a much more basic project (switchboard installation for example) would perhaps have an overall lower percentage than a more complex project that has complex protection and control schemes. I'd also expect for there to be some variability depending on the level of engagement with the engineering team and weather or not their engagement was strictly confined to design or also expanded to PM, commissioning and startup activities.

I am appreciative for any experiences that anyone can share.

Thanks
 
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The number on substation and transmission line projects is 4-6%. Ironically, that is the portion that customers complain about and try to skim by on the most.

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If you can't explain it to a six year old, you don't understand it yourself.
 
it is extremely competitive in a lot of places. Some companies are currently operating at a loss. sustainable? i don't think so.
 
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