ROUGH ORDER MAGNITUDE QUOTATION (+/- 50%)
REFINED QUOTATION (+15%/-5%)
FIXED BID QUOTATION (+/-0%)
Advantages
Overall project scope and base approach defined.
Least cost method to arriving at approximate project value.
Project approach refined and defined.
Included contingency is minimized as most “Unknowns” have been turned into “Knowns”.
Approximately 10% of design engineering completed.
Project approach totally defined and solidified.
No future financial risk to client if scope does not change.
No surprises later because proper due to diligence was funded to arrive at the project value.
Included contingency minimized as “Unknowns” have been turned into “Knowns”.
Approximately 15% of design engineering completed.
Typical Uses
Placement of project in next year’s capital budget.
Best value approach to arrive at an accurate project estimate.
Appropriation of capital funds.
Process, Mechanical, Power & Controls Engineering
No significant engineering done.
Development of mass and energy balances, base P&ID, equipment list, and valve and Instrument list.
Development of mass and energy balances, refined P&ID, equipment list, and valve and Instrument list. Peer design review conducted.
Equipment Specification and Pricing
Compare to previous projects of similar magnitude and complexity.
Use recent pricing for standard process equipment (tanks, pumps, valves, instruments, etc.) and secure current pricing for complex and speciality equipment.
Secure accurate and current pricing for all equipment, valves, instruments, etc.
3D Model
No 3D model developed.
Base 3D model showing major equipment and module size form factors developed.
Base 3D model showing major equipment and module size form factors developed.
Plan and Elevation Drawings
No 3D model developed.
Preliminary plan and elevation drawings developed.
Preliminary plan and elevation drawings developed.
Off-Site Modular Fabrication
No plan and elevation drawings developed.
Structural, piping and electrical labor hours calculated based upon P&ID and general arrangement drawing takeoffs.
Structural, piping and electrical labor hours calculated based upon P&ID and general arrangement drawing takeoffs. Peer estimate review to confirm accuracy and thoroughness.
Factory Acceptance Testing
Compare to previous projects of similar magnitude and complexity.
Use equipment, valve an instrument lists and operational requirements to accurately estimate FAT effort required.
Use equipment, valve an instrument lists and operational requirements to accurately estimate FAT effort required.
Field Construction and Installation
Compare to previous projects of similar civil, facilities, utilities and process scope.
Develop internal estimates for civil, facilities, utilities, mechanical and process installation scope.
Secure firm bids from subcontractors for civil, facilities, utilities, mechanical and process installation scope.
Field Check-Out and Commissioning
Compare to previous projects of similar magnitude and complexity.
Use equipment, valve and instrument lists, and operational requirements to accurately estimate the effort required.
Use equipment, valve and instrument lists, and operational requirements to accurately estimate the effort required.
EPIC SYSTEMS