Review Design Cost

[Wrl69]

Add to cost of design and fabrication of many equipments (pressuere vessels by ASME code and fired heaters by API 560) to a refinery, We need know approach costing of following activities developed by our reperesentative (Purchaser's representive) on site, versus (%) total cost of equipments :

- Develop of each Job Instruction
- Contact to potential vendors and selction of best
- Review of calculations
- Review of technical drawings
- Visit to fabrication shop (if necessary)
- Control of fabricaction schedule
- Thecnical Review and received equipments on site

How is recommended to define fees and budget about?

 

[MintJulep]

Estimate man-hours required for each task, and multiply by appropriate labor rate.

 

[zdas04]

Estimating the hours is a very sharp double-edged sword. If you use a P10 case you'll get a lot of bids, and lose money on most of the. With a P90 case you won't get as many bids, but you'll usually do pretty well on the ones you get. Even with a P50 case you'll be under actuals half the time and over on the other half--with the real possibility of a bias that puts you over on the big projects and under on the small ones.

I generally use a P75 case and accept that I won't get all the jobs I bid on, but I won't lose money on many that I do get (I say that on the very day I lost my shirt on a hard-dollar bid that I blew).

David Simpson, PE
MuleShoe Engineering

http://www.muleshoe-eng.com

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