Cost Estimating Manual

Published on February 2017 | Categories: Documents | Downloads: 128 | Comments: 0 | Views: 1732
of 481
Download PDF   Embed   Report

Comments

Content

COST ESTIMATING MANUAL

CHEVRON RESEARCH AND TECHNOLOGY COMPANY
RICHMOND, CA

December 1998

Manual sponsor:

For information or help regarding this manual, contact Daniel E. Moore
at (925) 842-2120

Printing History
Cost Estimating Manual
First Edition
Second Edition
Third Edition
Fourth Edition

April 1995
November 1997
June 1998
December 1998

Restricted Material
Technical Memorandum
This material is transmitted subject to the Export Control Laws of the
United States Department of Commerce for technical data. Furthermore,
you hereby assure us that the material transmitted herewith shall not be
exported or re-exported by you in violation of these export controls.

The information in this Manual has been jointly developed by Chevron Corporation and its Operating
Companies. The Manual has been written to assist Chevron personnel in their work; as such, it may be
interpreted and used as seen fit by operating management.
Copyright  1989, 1990, 1992, 1995, 1997, 1998 CHEVRON CORPORATION. All rights reserved. This
document contains proprietary information for use by Chevron Corporation, its subsidiaries, and affiliates. All other uses require written permission.

Cost Estimating Manual
Page-2

December 1998

List of Current Pages
Cost Estimating Manual
The following list shows publication or revision dates for the contents of this manual. To verify that your
manual contains current material, check the sections in question with the list below. If your copy is not
current, contact the Technical Standards Team, Chevron Research and Technology Company, Richmond,
CA (510) 242-7241.

Section
Title Page
Front Matter
Table of Contents
Section 50 (Preface)
Section 100
Section 101
Section 102
Section 103
Section 104
Section 105
Section 200
Section 201
Section 202
Section 203
Section 204
Section 205
Section 206
Section 210
Section 211
Section 212
Section 220
Section 221
Section 222
Section 223
Section 224
Section 300
Section 301
Section 302
Section 303
Section 304
Section 305

Date
December 1998
December 1998
April 1995
April 1997
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
December 1996
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
December 1998
April 1995
April 1995
April 1995
April 1995

Cost Estimating Manual
December 1998

Page-3

Section
Section 310
Section 311
Section 312
Section 313
Section 400
Section 401
Section 402
Section 403
Section 404
Section 405
Section 406
Section 407
Section 408
Section 410
Section 411
Section 420
Section 421
Section 422
Section 423
Section 424
Section 500
Section 501
Section 510
Section 511
Section 512
Section 520
Section 521
Section 522
Section 523
Section 600
Section 601
Section 602
Section 603
Appendices
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E

Date
April 1995
April 1995
April 1995
April 1995
April 1995
December 1995
April 1995
December 1998
April 1995
April 1995
April 1995
April 1995
April 1995
March 1995 (draft)
March 1995 (draft)
December 1998
April 1995
April 1995
April 1995
April 1995
December 1998
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995
April 1995

Cost Estimating Manual
Page-4

December 1998

Maintaining This Manual
Cost Estimating Manual
If you have moved or you want to change the distribution of this manual, use the form below. Once you
have completed the information, fold, staple, and send by company mail. You can also FAX your change
to (510) 242-2157.
❑ Change addressee as shown below.
❑ Replace manual owner with name below.
❑ Remove the name shown below.
Previous
Owner:

Title:
Last

First

M.I.

Current
Owner:

Title:
Last

First

M.I.

Company:

Dept/Div:

Street:

P.O. Box:

City:

State:

Requesting Signature

Zip:

Date

Send this completed form to: Document Control, Room 50-4328
Chevron Research and Technology Company
100 Chevron Way (P.O. Box 1627)
Richmond, CA 94802

CRTC Consultants Card
The Chevron Research and Technology Company (CRTC) is a full-service, in-house engineering organization.
CRTC periodically publishes a Consultants Card listing primary contacts in the CRTC specialty divisions. To order a Consultants Card, contact Ken Wasilchin of the CRTC Technical Standards Team at
(510) 242-7241, or email him at “KWAS.”

Cost Estimating Manual
December 1998

Page-5

(This page reserved for future use.)

Reader Response Form
Cost Estimating Manual
We are very interested in comments and suggestions for improving this manual and keeping it up to date.
Please use this form to suggest changes; notify us of errors or inaccuracies; provide information that
reflects changing technology; or submit material (drawings, specifications, procedures, etc.) that should
be considered for inclusion.
Feel free to include photocopies of page(s) you have comments about. All suggestions will be reviewed as
part of the update cycle for the next revision of this manual.
Send your comments to:

Page or Section Number

Document Control, Room 50-4328
Chevron Research and Technology Company
100 Chevron Way (P.O.Box 1627)
Richmond, CA 94802
Comments

Name
Address

Phone

Cost Estimating Manual
December 1998

Page-7

(This page reserved for future use.)

Cost Estimating Manual
Manual Sponsor: Daniel E. Moore / Phone: (510) 842-2120 / E-mail: [email protected]
This document contains extensive hyperlinks to figures and cross-referenced sections.
The pointer will change to a pointing finger when positioned over text which contains a link.

List of Current Pages
50

Using this Manual

50-1

100

Introduction to Cost Estimating

100-1

200

Primary Methods—Process Plants

200-1

210

Primary Methods—Offplot Facilities

210-1

220

Primary Methods—Other Facilities

220-1

300

Secondary Methods—Individual Cost Adjustments

300-1

310

Secondary Methods—Bottom-Line Cost Adjustments

310-1

400

Direct Cost Data—Equipment (Major Material)

400-1

410

Direct Cost Data—Bulk Materials (Minor Material)

410-1

420

Direct Cost Data—Construction Labor

420-1

500

Indirect Costs and Special Charges—Indirect Field Costs

500-1

510

Indirect Costs and Special Charges—Technical Services

510-1

520

Indirect Costs and Special Charges—Special Charges

520-1

600

Estimate Presentation and Review

600-1

Appendices
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E

Chevron Corporation

Estimating Checklists
Process Licensors' Sales Factors
Code of Accounts (EG-2757)
Code of Accoounts for Buildings Projects
Glossary

April 1995

Preface
he intent of the Cost Estimating Manual is to provide uniform procedures and
accompanying data for developing cost estimates for capital projects throughout
Chevron. We hope that the material in this manual will contribute to a common
understanding and consistent application of the cost-estimating process.

T

Using This Manual
The manual is arranged to follow the flow of a typical cost estimate:
Chapter 100 provides an overview of cost estimating, estimate classes
and estimating methods.
Chapter 200 describes the principal methods for making cost
estimates—primarily for process plants, but also for offplot and other
types of facilities. Method-specific data is also included.
Chapter 300 includes factors and data to use with two or more
methods described in the previous chapter.
Chapter 400 contains instructions and data for estimating individual
components of direct costs. The data includes material, labor, and
subcontract costs associated with purchasing and erecting the physical
facilities.
Chapter 500 covers indirect costs and special charges. Indirect costs
include construction indirect, engineering, and project management
costs. Special charges are costs that may be unique to a project and,
therefore, require specific identification and analysis.
Chapter 600 contains guidance for reviewing, presenting, and
documenting completed cost estimates.
The Appendices contain general estimating reference materials,
including checklists and a glossary.
This manual is sponsored by Project Resource Services, Project Resources.
Questions, comments, and suggestions for improvement are welcome and
encouraged, and may be addressed to the Manager, Project Resource
Services, San Ramon.

Cost Estimating Manual
April 1997

Page 1

100

Introduction to
Cost Estimating

101

Cost Estimating in General

102

Cost Estimating and the Phases of a Project

103

The Classes of Cost Estimates

104

Methods of Cost Estimating

105

Selecting a Method

Cost Estimating Manual

101
Cost Estimating in General
ebster defines an estimate as an approximate computation of probable cost.
According to the American Association of Cost Engineers (AACE), cost
estimating is the predicting or forecasting ... of the costs required to construct and
equip a facility, to manufacture goods, or to furnish a service. The latter definition
more closely aligns with the objectives of this manual.

W

Objectives of this Manual
While the concept of estimating is familiar to most people, the process
may not be familiar. To help you estimate projects for Chevron, the
objectives of this manual are to
explain the various types of estimates and techniques for making them
provide you with estimating data and guidance
Although this manual is written primarily for major downstream projects,
it can also be applied to upstream projects and smaller downstream
projects.

Reasons for Cost Estimating
Capital
Construction

Generally, you associate estimates with capital construction projects to
establish capital budgets
evaluate project economics
obtain funding approval
monitor and control the execution of work

Annual Budgets

Chevron operating companies and staffs base their annual operating
expense budgets on estimates.

Other Acitivities

Activities such as these also require estimates:
Shutting down refinery plants for maintenance
Overhauling tankers
Leasing buildings or equipment

Cost Estimating Manual
April 1995

Page 101 -1

101

Cost Estimating in General

Providing technical services for studies
Writing computer programs
Planning business trips
The AACE definition points out that you may make a variety of types of
estimates. In the next section, you’ll see how estimates fit into the
different phases of Chevron project management.

Cost Estimating Manual
Page 101 -2

April 1995

102
Cost Estimating and the Phases of a Project
ost estimates are important in all phases of project management. In Figure 102-1,
note the role of estimating (shown in bold italic) in the Chevron Project
Development and Execution Process (CPDEP).

C

Phase

1

2

3

4

5

1

CPDEP Phase

Identify &
Assess
Opportunities

Select
Alternative(s)

Develop
Alternative(s)

Execute

Operate & Evaluate

CPMP2 Phase

Concept
Development

Feasibility

Front-End
Engineering

Execution

Operation &
Evaluation

OBJECTIVES

Identify Opportunities Generate Alternatives Fully Define Scope

DELIVERABLES

Develop Detailed
Execution Plans

Test for Strategic Fit

Preliminary
Development of
Alternatives

Preliminary Overall
Plan

Develop Preliminary
Project Economics

Refine Estimate
Develop Final
Project Economics

Preliminary
Assessment

Identify Preferred
Alternative(s)

Submit Request for
Funding Approval

Plan for Phase 2

Plan for Phase 3

Plan for Phase 4

Clearly Frame Goal

Business Objectives Preliminary Facility & Final Facility &
Project Objectives
& Project Framework Project Objectives

Implement Execution Operate Asset
Plan
Monitor and
Evaluate
Finalize Operating
Performance
Plan
Business Plan for
Phase 5

Identify New
Opportunities

Project Review

Operating Facility

Post-Project
Assessment

Documentation
Block Flow Diagram
& Preliminary
Capacity

Process Flow
Diagrams &
Equipment Lists

Preliminary
Milestone Schedule

Preliminary Project
Schedule

Class 1 Estimate

Class 2 Estimate

Set & Freeze
Business Objectives
Concept
Development FEL
Checklist

P&IDs, Plot Plans,
One-Line Diagrams

1
2

Lessons Learned
& Best Practices
Benchmark
Performance

Class 3 Estimate

Class 4 (& perhaps
5) Estimates and
Final Project Cost

Freeze Capacity,
Technology & Site

Freeze Definition
Documents

Freeze Design
Details

Post-Project
Assessment

Feasibility FEL
Checklist

Front-End
Engineering FEL
Checklist

Execute

Review & Share
Lessons Learned

Detailed Schedule

TOOLS &
PROCESS

Lessons Learned

CPDEP = Chevron Project Development and Execution Process
CPMP = Chevron Project Management Process (Downstream Adaptation of CPDEP)

Figure 102-1. Estimating During the Phases of CPDEP and CPMP

Cost Estimating Manual
April 1995

Page 102-1

103
The Classes of Cost Estimates
hevron has adopted a series of cost estimate classifications as a part of the
CPDEP. These classifications establish a common understanding among
estimators, project managers, and their clients regarding these factors:
Variability in the information required
Appropriate estimating methods for each class
Resulting estimate quality

C

The Five Classes
Figure 103-1 summarizes the five classes. The first three are linked to the
three phases of CPDEP Front-End Loading, where their purpose is to
provide information to assist decision-makers.
Classes 1 & 2

Because the first two project phases may extend over a long time (two to
three years for large projects), several Class 1 and Class 2 estimates may
be necessary as the project team studies various alternatives.

Class 3

Class 3 is often called an appropriation estimate because it is the basis for
preparing an appropriation request. Again, large projects may have more
than one Class 3 estimate, especially if the first one exceeds the funds
budgeted for the project. In that case, the team must adjust the scope of
the project.

Classes 4 & 5

Contractors usually prepare the last two classes of estimates during project
execution. Contractors may call the Class 4 a control estimate because it
establishes a basis for managing (controlling) the contractor’s work during
the construction phase. Class 5 is appropriate only for very large, multiyear projects. It is really a re-forecast of remaining work (and thus the
final cost) because much of the cost is fixed by that time.

Cost Estimating Manual
April 1995

Page 103-1

103

The Classes of Cost Estimates

Contingency
The values shown in the Contingency column of Figure 103-1 indicate
relative requirements only and show the benefit of improvement to the
project definition as projects progress.
For Classes 1 and 2, especially, the typical contingencies shown apply to
facilities known at the time of the estimate. Estimates can double or triple
as the definition of required facilities evolves. You should not use this
table to determine the actual contingency required for any estimate, but
determine it from the characteristics of the specific project and estimate
(see Section 313).

Cost Estimating Manual
Page 103-2

April 1995

Contingency

Class &
Project Phase

Engr’g

Contingency

Estimate Methods Used/Cost Basis
Information Required
Major Equipment

Class 1

1

<1%

30-50%

1-5%

15-40%1 Same as Class 1 plus:
- Preliminary process design
- Preliminary major equipment
sizing
- Offplot description
- Site specific plot plan

Concept
Development2

Class 2
2

Feasibility

Class 3

Other Materials

Labor

Overall project or
plant cost
a. Cost capacity data
b. Historical cost
data
c. Industry
published data
d. Licensor estimate
e. Installation factor
times major equip.

- Block flow diagrams
- Facility capacity
- Preliminary major equipment
list
- General location and site
conditions
- Preliminary timing and
schedule
- General business climate

- By ratio to major
Cost curves
equipment
Vendor tel. quotes
- By ratio from
Recent purchases
similar facility
Published estimating
based on
data
historical data
- Other estimating
guides

- By labor/ material
ratio for similar
work
- Productivity,
taxes, wage
rate, etc., in the
area factor

-

15-30% 10-15%

- Complete process design
(PDC)
- Preliminary P&IDs, plot plan
and one-line electrical
diagrams
- Complete site survey and
soils data
- Firm major equipment sizes
- General projects specs
- Defined offplot facilities
- Preliminary utility balance
- Environmental compliance
plan
- Completed mat’ls selection
- Contracting plan

- Written equipment
quotes
- Escalation defined

By ratio to major
equipment
- Escalation
defined
- Key quantities
identified

- By labor/ material
ratio for similar
work
- Manhour units or
other parameters
- Productivity for
area
- Wage rates

Class 4
Execution:
Detailed
Design

30-50% 5-10%

- Approved P&ID’s
- Plot plans issued for
construction
- Detailed contracting plan
- Minor contracts and
final schedule
- Completed engineering
data sheets
- Ordered major equipment
costs

- Major equipment
ordered
- Deliveries evaluated

- Detailed quantity
takeoff3
- Firm unit cost
quotes
- Schedule revised

- Construction plan
complete
- Manhours by craft
- Wage rates
- Productivity
- Defined indirects

Class 5
Execution:
Construction

90-95% 5-15%
of unexpended
funds

- Construction contracts
awarded
- Ordered bulk materials costs
- Construction 40-60%
complete

Actual or committed
costs to date

- All bulks ordered
- Deliveries
assessed
- Scheduled
updated

- Firm bid contracts
or detailed
evaluation of field
manhours
- Labor availability
assessed
- Field productivity
included

Front-End
Engineering2

1
2
3

Data from Chevron and the industry shows considerable scope growth (as much as 200 percent) as project definition evolves
during the Concept Development and Feasibility phases.
These three phases include the completion of Project Scope Packages, Project Execution Packages, and Project Decision-Making
Packages. These are described in several checklists in the Front-end Loading Handbook.
A quantity takeoff is a count of the quantities of bulk materials to be installed.

Figure 103-1. Chevron Classes of Estimates & CPDEP Project Phases

Cost Estimating Manual
April 1995

Page 103-3

104
Methods of Cost Estimating

C

hevron uses various methods of cost estimating. Each has several components
(Figure 104-1), which are described in this manual.

Process Plants
Curve

A curve estimate is based on finding the costs and capacities of plants
similar to the one to be estimated. The estimator adjusts that data for date,
location, and common facilities; calculates the new cost; and makes
further adjustments to develop the estimate for the new facility. See
Section 202, “Curve Estimates.”

Factored

A factored estimate is based on determining the total cost of a plant
(excluding special charges, escalation, and contingency) by assessing the
cost of the tagged process (or utility) equipment and multiplying that total
cost by a single factor. See Section 203, “Factored Estimates.”

Ratio

Detailed/
Semi-Detailed

A ratio estimate is possible only if the estimator has or can approximate
ratios for similar facilities. The estimator assesses the cost of tagged
process (or utility) equipment and then applies a series of ratios to that
assessment to determine the costs of bulk material, direct labor, field
indirects, design, and project management. The total is the plant cost
excluding special charges, escalation, and contingency. See Section 204,
“Ratio Estimates.”
A detailed estimate is based on a complete definition of the work—when
every element is identified and quantified, and engineering is 30-50
percent complete. Usually, you prepare this estimate to check project cost
against budget or to manage the construction effort.
A semi-detailed estimate is a five-step process based on assessing only the
direct costs in limited detail and then applying ratios to the direct costs to
determine the indirect costs.
See Section 205, “Detailed Estimates.

Cost Estimating Manual
April 1995

Page 104-1

104

Methods of Cost Estimating

Project Definition & Scope

Cost Estimating
Cost Estimating Classifications

Curve Method

Factor Method

Ratio Method

Equipment Costs

Equipment Costs

Detailed Method

Equipment Costs

Bulk Material Costs

Indexes

Indexes

Indexes

Indexes

Allowances

Allowances

Allowances

Freight

Freight

Freight

Sales Tax

Sales Tax

Sales Tax

Multiplication Factor

Modernization
Materials/Equip. Ratios

Labor Manhours/
Material Cost Ratios
Unit Manhour Rates

Productivity

Productivity

Labor Hourly Rates

Labor Hourly Rates

Labor Rework

Sub-contract Cost

Indirect Field Costs

Indirect Field Costs

Eng/Mgmt Costs

Eng/Mgmt Costs

Area Factor

Area Factor

Special Charges

Special Charges

Special Charges

Special Charges

Escalation

Escalation

Escalation

Escalation

Contingency

Contingency

Contingency

Contingency

Figure 104-1. Components of Each Method of Cost Estimating

Cost Estimating Manual
Page 104-2

April 1995

Offplot Facilities

Offplot Facilities
Many offplot facilities are estimated using the methods given above for
process plants. Class 1 estimates can use the curve method (using offplot
data) or a percent of onplot data. Class 2-3 estimates use the semi-detailed
method and Class 3 or later estimates use the detailed method. For more
information, refer to Section 211.

Cost Estimating Manual
April 1995

Page 104-3

105
Selecting a Method

I

n general, the method of cost estimating you choose is based on
what you are estimating
the phase of the project
the information you have available or can obtain

Prerequisites
To make a cost estimate, you need the following information:
Knowledge of the scope of the project.
For curve estimates, the capacity of the new plant, and the costs and
capacities of two or more similar, completed plants.
For factored estimates, a sized list of equipment for all process and
utility equipment.
For ratio estimates, the same as for factored estimates, plus cost and
labor-hour ratios for similar plants.
For detailed estimates, every element of the planned work.
Awareness of direct costs (Chevron Group II)—equipment, materials,
and installation labor directly involved in physical construction.
Awareness of indirect costs1(Chevron Group I)—construction-related
costs such as supervision, equipment rental, and temporary facilities;
engineering and project management costs for both contractors and
Chevron.
Awareness of special charges2 (catalyst, ocean freight, operating
company G&A charges, dismantling, and so on); sometimes
categorized as expense or working capital rather than as capital.
See Sections 202–205, 211, and 221–224 for more information on
methods of estimating.
See Appendix C, “Code of Accounts (EG-2757),” for more detail on these
cost categories.

1
2

Not a final part of the installation but required for the orderly completion of the installation.
Unique to the Chevron system. Vary widely among projects. Segregated to avoid distorting the ratios and relationships
between indirect and direct costs that are useful in the cost-estimating process.
Cost Estimating Manual

April 1995

Page 105-1

105

Selecting a Method

Resources
You can order a variety of manuals and other resources, such as the CRTC
Consultants’ Card and the engineering design (gray) manuals, from CRTC
Technical Standards Team.

Cost Estimating Manual
Page 105-2

April 1995

200

Primary Methods—
Process Plants

201

Estimating Major Material (Equipment) Costs

202

Curve Estimates

203

Factored Estimates

204

Ratio Estimates

205

Detailed Estimates

206

Electronic Estimating: Questimate

Cost Estimating Manual
Page -1

201
Estimating Major Material (Equipment) Costs

April 1995

or three of Chevron’s estimating methods—factored, ratio, and detailed, you must
first assess the cost of purchasing and delivering tagged equipment items (also
known as major material). These items fall under cost accounts C-G and K. See
Appendix C, “Code of Accounts (EG-2757).”

F

Estimating Cost Components for Equipment
Overview

Information Needed

The total cost of equipment when making an estimate with the factored,
ratio, or detailed method is the sum of the base cost, design allowance,
freight, and taxes for each equipment item.
Be sure you have an equipment list with each item sized and materials of
construction specified. Also review the resources listed in Figure 201-1.

For

This Manual

Sources of Equipment Costs

401–408

Cost Indexes

301

Design Allowances

303

Freight: Domestic & Ocean

304

Sales Tax Rates

305

Duty, Importation

521

Other Sources
- Purchase orders for the current project
- Commercial data sources (e.g., Richardson
or Questimate)

- The Corporate Tax Department for current
information on applicable duty on U.S.-imported
equipment
- Chevron operating company sponsoring the
project or a major international contractor for
duty on material Chevron imports into a foreign
country

Figure 201-1. Resources for Assessing Tagged Equipment

Cost Estimating Manual
April 1995

Page 201-1

201

Estimating Major Material (Equipment) Costs

Figure 201-2. Steps in Estimating Cost of Equipment

Steps in Estimating
Cost of Equipment
1

Figure 201-2 is a composite of the steps involved in assessing tagged
equipment. Detailed procedures follow.
ESTIMATE EQUIPMENT COST, FOB THE FABRICATOR’S SHOP

Obtain or develop a complete equipment list, with sizing and
metallurgical specifications.
For early (Class 1 or 2) estimates, you may have to create an equipment
list from a preliminary flowsheet, which often omits essential process
and utility equipment items. To compensate, add appropriate items or
systems from Figure 201-3, modifying the list to suit your plant.
By the time you begin to make a detailed (Class 3, 4, or 5) estimate,
you should have access to a complete equipment list (including items
in Figure 201-3). If the equipment list is cross-referenced to the
approved P&IDs, estimating is easier.
Determine the cost of items on the equipment list (see Figure 201-4).
If your sources are not current, then adjust the costs to the current date
with an index, such as EDMI. See Section 301. Choose EDPI for fielderected equipment, such as large tanks, columns, and cooling towers.
2

DETERMINE THE DESIGN ALLOWANCE

Compensate for the difference between the estimate and the probable final
cost of equipment by including a design allowance, usually between 3
percent and 15 percent (see Section 303). Incomplete specifications are
the most common reason for cost variances.
Cost Estimating Manual
Page 201-2

April 1995

Estimating Cost Components for Equipment

Boiler feedwater pumps (with or without a
deaerator)
Condensate flash drums and pumps
Condensers for large steam turbines
(including jet ejectors and condensate
pumps)
Desuperheaters (attemperators)
Emergency product coolers
Equipment spares, such as spare pumps
—installed and warehouse spares
Feed surge drum
Feed booster pumps
Flush oil systems
Fuel gas knockout drums
Fuel oil filters
Heat recovery equipment (energy savings)
Interstage coolers/condensers and K.O.
drums for reciprocating compressors (if not
supplied by compressor vendor)
Jacket/tempered water systems

Lube and seal oil systems (often part of
centrifugal compressor or high pressure
pump packages)
Oil mist generators
Power recovery turbines (energy savings)
Relief system knockout drum and pump
Solids handling equipment
Sour water, caustic and/or acid flash drums
and pumps
Start-up equipment
Steam separators (for ejectors,
superheating coils, and some steam
generators)
Suction and discharge pulsation dampers
for reciprocating compressors
Sump pumps
Vent separators and condensers
Note: Modify this list to suit other types of
plants.

Figure 201-3. List of Items Often Omitted from Refinery Process Flow Diagrams

1. Purchase orders for the current project
2. Formal vendor quotations for the current project
3. Recent purchase orders for similar equipment
4. Recent formal quotes for similar equipment
5. Informal vendor estimates/phone quotes for the
current project
6. Data correlations in this manual (or a similar
database from a contractor)
7. Commercial data sources (e.g., Richardson or
Questimate)

Figure 201-4. Sources for Estimating Equipment in
Order of Quality & Preference

3

ASSESS FREIGHT TO THE JOB SITE (OR TO THE ASSEMBLY YARD FOR SKIDDED
OR MODULAR WORK)

Domestic Freight

Review the source of the cost data to determine whether or not freight
is included in that price. Shipping can be a separate line item in a
contractor’s estimate or shown on a formal quotation or purchase
order.
See Section 304 for guidance on how to estimate domestic and ocean
freight. Large process equipment requires a specific transportation
plan that may include unusual routing and costly restrictions.

Cost Estimating Manual
April 1995

Page 201-3

201

Estimating Major Material (Equipment) Costs

Ocean and Foreign Land Freight (see Section 521)

Estimate ocean freight concurrently with the equipment.
Deduct ocean freight for ratio or factored estimating methods before
applying the ratios or factors, and then add it later. Ocean freight is
considered a special charge in the Chevron system (see Section 521).
Include insurance, packing/blocking/crating, port handling/clearance
costs (at both ends), and carrier costs.
Identify as a special charge any foreign land freight costs, such as
delivering the equipment from a foreign port to a construction site.
See Section 521.
4

ADD SALES TAXES AND IMPORT DUTIES

Domestic

Add a sales or use tax to the delivered cost of the equipment for most
domestic locations.
See Section 305 for recent information on applicable tax rates for
many Chevron locations.
Imported or Foreign

Contact the Corporate Tax Department for current information on
applicable duty on U.S.- imported equipment.
Contact either the Chevron operating company sponsoring the project
or a major international contractor for the duty on material Chevron
imports into a foreign country.
As with ocean freight, import duties are considered special charges
(see Appendix C, “Code of Accounts (EG-2757),” Item 77). Before
applying factors or ratios for those types of estimates, you must set
them aside and add them separately after applying the factors or ratios.

Cost Estimating Manual
Page 201-4

April 1995

202
Curve Estimates

April 1995

hen making an early Class 1 estimate, you will probably choose the curve
method. The premise of curve estimates is that costs vary exponentially with
capacity for many types of plants.

W

The Curve Method
Overview

A curve estimate is based on finding the costs and capacities of plants
similar to the one being estimated. The estimator adjusts that data for
date, location, and common facilities; calculates the new cost; and makes
further adjustments to develop the estimate for the new facility.

Information Needed

To make a curve estimate of the cost of a new plant, you need to gather
data on the capacity of the new plant and the cost and capacity for two or
more similar plants.
Also review the resources listed in Figure 202-1.

Theoretical Basis

The form of the cost-capacity equation is as follows:
y = a × (x)b
where:
y
a(coefficient)
x
b(exponent)

=
=
=
=

cost
specific to plant type
capacity
specific to plant type (close to 0.6 but can range from 0.3 to 1.0)

Resources

In This Manual

Adjusting to Common or Current Date

Sections 301, 302

Adjusting to Common or New Location

Section 311

Adding Special Charges

Section 521

Adding Escalation

Section 312

Adding Contingency

Section 313

Figure 202-1. Resources for Curve Estimating

Cost Estimating Manual
April 1995

Page 202-1

202

Curve Estimates

Graphically, this equation will plot as a straight line on log-log paper. In
practice, the curve may not be smooth but may be stepped at certain
points, such as when limitations of equipment size require twinning (using
a parallel piece of equipment) or adding a second train.



Applicability

Steps in a Curve
Estimate

1

Because the exponent (slope of the graph) changes from a very low number (perhaps 0.3
at low capacities to nearly 1.0 at high capacities), extrapolation beyond known
capacities can lead to a significant error in estimating.

The curve method is
suitable for geographically confined plants, such as process plants and
some utilities.1
unsuitable for new technology plants that do not have cost histories.2
The steps in a curve estimate are described below and shown in Figure
202-3.
An example of a sour water stripper with a feed rate of 200 gallons per
minute (gpm) is included to illustrate the steps.
DETERMINE THE DESIRED CAPACITY FOR THE TYPE OF PLANT
BEING ESTIMATED

The terminology for operating capacity is given in Figure 202-2.

Typical Operating Capacity
Typical Plant
Terminology

Abbreviation

Thousands of barrels per operating day

MBPOD

Most Refinery Plants

Millions of standard cubic feet per day

MSCFD

Hydrogen Mfg., Gas Processing

Short tons per day

ST/D

Sulfur, Coker

Millions of pound per year

MPY

Chemical Plants

Figure 202-2. Typical Operating Capacity Terminology & Abbreviations by Type of Plant

1
2

Less-accurate cost-capacity equations for offplot facilities (such as tank fields) are given later in this chapter.
If the factored method is unsuitable, refer to the detailed method and semi-detailed method (later in this section).
Cost Estimating Manual

Page 202-2

April 1995

The Curve Method

Figure 202-3. Steps in Curve Estimating Method

2

FIND COST AND CAPACITY DATA FOR SIMILAR PLANTS

Check the data for process and offplot plants later in this section. If your
plant is shown, use that data and skip to step 7.
If the data in those sections does not meet your needs, find the costs and
capacities for similar plants from actual project cost data (see Figure
202-4) or from journals or other literature.
Identify the construction period associated with the costs (for converting
to current or future costs).

Cost Estimating Manual
April 1995

Page 202-3

202

Curve Estimates

Determining Data for Similar Plants:
Sour Water Stripper1
Refinery
Burnaby

GPM
85

Original Cost
$1.00 M
2

Date

EDPI

2/75

473.6

Pascagoula

165

$6.41 M

8/74

449.8

El Segundo

240

$1.27 M

11/74

466.4

Richmond

350

$0.87 M

2/75

473.6

1

This example shows how we developed the sour water data used
to illustrate this method.
2
Includes H2S recovery facilities.
Figure 202-4. Example of Project Cost Data

3

ADJUST THE COSTS OF THE REFERENCE PLANTS TO A COMMON DATE—
NORMALLY, THE CURRENT DATE—USING EDPI (SECTION 301)

If the data is older than 1983, modernize it by following the instructions
in Section 302. See the example in Figure 202-5.
4

ADJUST THE COSTS OF THE REFERENCE PLANTS TO A COMMON
LOCATION, USING AREA FACTOR DATA 1

See Figure 202-6 and Section 311.

Adjusting Reference Plant Costs to Common Date:1
Sour Water Stripper
Refinery

Original Cost

Adjusted Cost

Burnaby

$1.00 M

$3.21 M

Pascagoula

$6.41 M

$22.09 M

El Segundo

$1.27 M

$4.18 M

Richmond

$0.87 M

$2.79 M

1
2

2

EDPI for 1991 = 1100 (for example only).
Adjusted Cost = Original Cost x (1100/473.6) x (1.048.25) for Burnaby.

Figure 202-5. Example of Adjusting Costs to a Common Date

1

While Richmond is a standard reference, the common location may be any other place, such as the proposed plant site or
the U.S. Gulf Coast (USGC).
Cost Estimating Manual

Page 202-4

April 1995

The Curve Method

Adjusting Reference Plant Costs to Common Location
(Richmond): Sour Water Stripper
Refinery

Area Factor1, 3

Adjusted Cost2

Burnaby

1.15

$2.79 M

Pascagoula

0.95

$23.26 M

El Segundo

1.07

$3.91 M

Richmond

1.00

$2.79 M

1

Area factor relative to Richmond = 1.00

2

Adjusted Cost = Cost from Figure 202-5
Area Factor

3

Area factors shown apply only to the plants & dates for this
example; may differ from Section 311.

Figure 202-6. Example of Adjusting Costs to a Common Location

5

COMPARE PROCESS FLOW DIAGRAMS & ADJUST COSTS

Compare the process flow diagram for the proposed plant with those
of the reference plants and note differences.1
Adjust the costs of the reference plants to a common facilities basis.2
See the example in Figure 202-7.

Adjusting Reference Plant Costs to Common
Facilities Basis for Sour Water Stripper
Refinery

Adjusted Cost1

Burnaby

$3.30 M

Pascagoula

$4.69 M

El Segundo

$5.73 M

Richmond

$6.98 M

1

All reference plants require equipment additions or
deletions to make them match the “standard” plants
in the curve data presented later in this section.

Figure 202-7. Example of Step 5

1

2

Examples are differences in equipment (such as number of reactors and side-stream strippers, caustic and water washers,
sparing of pumps and compressors) and significant differences in process conditions (such as temperatures, pressures,
recycle rates, degree of fractionation)
Portions of the new plant may be different from the reference plant, or two reference plants may differ.
Cost Estimating Manual

April 1995

Page 202-5

202

Curve Estimates

Figure 202-8. Example of Onplot Cost vs. Capacity (EDPI = 1100) for
Sour Water Stripper

6

PLOT COSTS

Plot the updated cost data for reference plants versus plant capacity on
log-log graph paper (see Figure 202-8).
Draw a straight line through the data points.
ALTERNATIVE: DEVELOP EQUATION

You can also calculate the equation of the regression line through the data
points, which is the equation for the sour water strippers given later in this
section. See the example in Figure 202-9.



If only one data point is available, assume an exponent of 0.6 when creating the
graph or equation. This is commonly referred to as the Six-Tenths Rule (see Figure
202-10).

Linear Regression Performed on the Logarithms of Costs
& Capacities for Sour Water Strippers
0.53
y = 0.314 x (x)
where:
y = $M @ EDPI = 1100
x = GPM

Figure 202-9. Example of Alternate Way to Plot Costs

Cost Estimating Manual
Page 202-6

April 1995

The Curve Method

Supposition:
You have a single data point for a plant costing $6 million and
having a capacity of 10 MBPOD.
Develop equation from reference plant data based on the cost-capacity equation:
b
y = a × (x)
where:
y = cost
a (coefficient) = specific to plant type
x = capacity
b (exponent) = specific to plant type

Apply those values to the general equation:
0.6
$6 M = a × (10 MBPOD)
Solve this equation to give:
a = 1.51

Apply equation to similar new plant (same date):
0.6
y = 1.51 × (x)
where:
y
=
x
=

cost in $M
capacity in MBPOD

Figure 202-10. Sixth-Tenths Rule

7

CALCULATE (OR READ) THE COST OF THE NEW PLANT

Enter the equation or graph with the new plant’s capacity.
Calculate (or read) the cost of the new plant at the common date
used in step 3 (or the date of the equations shown later in this section,
if used).
See the example in Figure 202-11.

Calculate the Cost of New Plant at the Common Date for 200 gpm Sour Water Stripper
From the equation
0.53
y = 0.314 × (200 GPM)
= $5.2M at EDPI = 1100
Where:
y
=

(1991)

cost

The data in this correlation covers a range of 85 - 350 gpm. To use it at 50 gpm or at 400 gpm
would be risky. In our example, 200 gpm is well within the range.
Figure 202-11. Example of Calculating the Cost at a Common Date

Cost Estimating Manual
April 1995

Page 202-7

202

Curve Estimates

8

ADJUST THE NEW PLANT COST TO THE DATE OF THE CURRENT ESTIMATE
USING EDPI (AND MODERNIZE, IF NECESSARY)

See the example in Figure 202-12.
Adjust New Plant Cost to Current Date for 200 gpm Sour Water Stripper
The adjusted cost at EDPI = 1200, for example, would be
y = $ 5.2 M(1200/1100) = $ 5.7 M
where:
y = cost

Figure 202-12. Example of Adjusting Cost to Current Date

9

ADJUST THE NEW PLANT COST FOR ANY FACILITY DIFFERENCES BETWEEN THE
NEW AND REFERENCED PLANTS THAT WERE NOT RECOGNIZED IN STEP 5

See the example in Figure 202-13. Also adjust for duplication savings. If a
contractor designs multiple, identical plants at the same time, efficiencies
in engineering and procurement can reduce the costs for the second and
subsequent plants by 10 percent. These savings may apply even if the
plants are constructed at different locations.
Adjust New Plant Cost for Facility Differences Between New & Referenced Plants for
200 gpm Sour Water Stripper

Supposition: The process flow diagram for your particular plant showed no sour water cooler or
degasser. Eliminating those facilities requires a deduction of about 18 percent from the cost (see
data later in this chapter).
y = $ 5.7 M x 0.82 = $ 4.7 M
where:
y = cost

Figure 202-13. Example of Adjusting Cost for Facility Difference

10

ADJUST THE COST FOR LOCATION

See Section 311 and Figure 202-14. The equations shown later in this
section are based on a West Coast (Richmond) location. If the facility
being estimated will be built in another part of the U.S. or overseas, you
must make an area factor adjustment.
Adjust Cost for Location for 200 gpm Sour Water Stripper
In step 4, we adjusted the reference plants to Richmond (area factor = 1.00). The unspecified
location for our new plant has an estimated area factor of 0.90, thus:
y = $ 4.7 M x 0.90 = $ 4.2 M
where:
y = cost

Figure 202-14. Example of Adjusting Cost for Location

Cost Estimating Manual
Page 202-8

April 1995

The Curve Method

11

ADD SPECIAL CHARGES SUCH AS CATALYST AND G&A

Use Section 521 as a checklist to identify possible special charges that
may apply to the estimate.
12

OPTIONAL — ADD ESCALATION

If you need a then-current estimate, add escalation based on the
anticipated schedule for the project (see Section 312).
13

ADD CONTINGENCY

See Section 313.

Cost Estimating Manual
April 1995

Page 202-9

202

D
A
T
A

Data for Curve Estimating

Data for Curve Estimating
Cost-Capacity Coefficients and Exponents
for Many Refinery Process Units
The tables that follow are to be used in an equation of the form:
Cost ($ millions, 1991) = Coefficient x (Capacity)Exponent
(EDPI = 1100)

The capacity is in thousands of barrels per day (MBPOD) except where
noted.
The data comes from Company projects in the 1970s and from other
sources. It has been updated to EDPI = 1100 (mid-1991). Because of the
age of the underlying data, the correlations should be used with caution.
Costs exclude catalyst, piling, computers, and winterizing, and are on a
West Coast (Richmond) basis.
The tables contain adjustment factors that you can use in cases where
plants being estimated differ slightly from the basis for the correlations.

Cost Estimating Manual
Page 202-10

April 1995

Cost-Capacity Coefficients and Exponents for Many Refinery Process Units

Facility

Coefficient at
EDPI = 1100

Exponent

One-Stage Crude Distillation Unit
Contains an atmospheric distillation column,
side cut stripping, overhead stabilizer and
splitter, and either a one-stage desalter and
flash drum or a two-stage desalter without
flash drum.

2.837

0.700

To delete the overhead stabilizer and splitter,
subtract 14%.
For a two-stage desalter with a flash drum,
add 3.6%.

Two-Stage Crude Distillation Unit
Adds vacuum distillation to the one-stage
unit; also includes vacuum off-gas
compression or vent gas scrubbing.

4.073

0.700

To delete the overhead stabilizer and splitter,
subtract 10%. For a two-stage desalter with a
flash drum, add 2.5%.

Vacuum Distillation Unit
Stand-alone unit similar to the second stage
of a two-stage crude distillation unit.

3.300

0.700

Cost of PRCP plant was about 35% higher
than this curve.

Deethanizer
Depropanizer
Debutanizer
Deisobutanizer
LSR Splitter (Depentanizer)
Gasoline Splitter (Dehexanizer)
These are single-column units that
separate the named component and
lighter hydrocarbons from heavier
hydrocarbons.

1.505
1.505
1.216
2.837
1.216
1.042

0.600

Units have steam reboilers and water-cooled
overhead condensers.

Light Ends Recovery Unit (LER)
Combination of deethanizer and depropanizer
columns.

5.836

0.580

Cost of PRCP plant was about 11% higher
than this curve.

Gas Recovery Unit (GRU)
An LER with the addition of a debutanizer
column.

5.385

0.600

1.170
1.505

0.560
0.560

Merox Treating
Light straight run gasoline or cracked
naphtha
Kerosene/jet

Adjustments

Figure 202-15. Cost-Capacity Coefficients and Exponents: Distillation and Treating Units

Cost Estimating Manual
April 1995

Page 202-11

D
A
T
A

202

D
A
T
A

Data for Curve Estimating

Facility

Coefficient at
EDPI = 1100

Exponent

Adjustments

Naphtha Hydrotreater
Mid-Distillate Hydrotreater (SR)
Light Cycle Oil (LCO) Hydrofiner
Vacuum Gas Oil (VGO) Desulfurizer
These units remove sulfur and nitrogen
from the oil feed by reacting it with
hydrogen. The naphtha hydrotreater and
mid-distillate hydrofiner include compression for make-up hydrogen; the other
units require a high pressure hydrogen
supply. Units include reactor(s) and recycle hydrogen compression.

4.314
4.674
5.142
4.169

0.640
0.670
0.670
0.700

Naphtha hydrotreater:
No make-up compression, subtract 7%.
No make-up or recycle compression
("once-through"), subtract 13%.

Rheniformer
The second stage of a traditional catalytic
reformer (the first stage is a naphtha
hydrotreater); includes four reactors and
recycle compression, but no compression for
product hydrogen.

5.469

0.650

Curve has been adjusted to include current
metallurgy.
For 3 reactors rather than 4, subtract 8%.

Figure 202-16. Cost-Capacity Coefficients and Exponents: Hydrotreating and Reforming Units

Facility
Hydrogen Plant
Process uses steam-methane reforming to
produce 95 to 97% pure hydrogen from 100
psig natural gas feed; high-pressure plants
have steam turbine-driven shift gas
compressors; product is delivered at 1700
psig; cost excludes catalyst. Capacity is
millions of standard cubic feet per day
(MMSCFD) of product hydrogen.

Coefficient at
EDPI = 1100

Exponent

7.180

0.610

Adjustments
Cost of PRCP plant was about 6% higher
than this curve.
For gas turbine drive on shift gas compressor,
add 12%. For 900 psig product, subtract 10%.
To produce 200-250 psig hydrogen, subtract:
For natural gas feed 21%
For LPG feed
17%
For naphtha feed
10%

Figure 202-17. Cost-Capacity Coefficients and Exponents: Hydrogen Manufacturing and Compression Units

Cost Estimating Manual
Page 202-12

April 1995

Cost-Capacity Coefficients and Exponents for Many Refinery Process Units

Facility
Sour Water Stripper
Separates H2S from water; consists of a
reboiled stripper with a feed degasser and
two injection systems; feed storage is off-plot
and is excluded from the cost; capacity is
gallons per minute (GPM).

Coefficient at
EDPI = 1100

Exponent

Adjustments

0.314

0.530

To delete feed sour water cooler, subtract 6%.
To delete feed degasser and pumps, subtract
12%.
To delete stripped water (bottoms) trim cooler,
subtract 9%.
To delete one injection system (anti-foam for
column feed or corrosion inhibitor for column
overhead), subtract 1%.

The reboiler uses low pressure steam (40 50 psig) which requires a condensate drum
and pump.

To delete the reboiler (and use live stripping
steam), subtract 12%. To use 150 psig steam
in the reboiler and delete the condensate
drum and pump, subtract 6%.

The column overhead includes an air-cooled
condenser with a reflux drum and reflux pump.

To use water-cooled condensing and delete
the reflux drum and pump (gravity reflux),
subtract 5%.

Waste Water Treater (WWT)
Combines a sour water stripper with ammonia
recovery facilities (a proprietary Chevron
process); capacity is gallons per minute
(GPM).

1.372

0.410

H2S Recovery
Amine (usually diethanolamine, or DEA) is
used to absorb hydrogen sulfide from a gas
stream; the plant contains a 50% capacity
absorption column (with DEA being circulated
to additional absorbers located in other
process units); a regeneration column with
steam reboiler and air-cooled condenser; and
ammonia and caustic relief scrubbers on the
overhead H2S product stream; the plant
capacity used in the cost correlation is
thousands of pounds per hour of H2S
recovered.

3.821

0.550

For a 100% capacity absorber in this plant,
add 10%.
For a water-cooled regenerator overhead
condenser and non-pumped reflux, deduct
5%.
To delete the ammonia scrubber, subtract
10%.
To delete the caustic relief scrubber, subtract
5%.
To substitute ammonia for caustic in the relief
scrubber, add 15%.

Figure 202-18. Cost-Capacity Coefficients and Exponents: Hydrogen Sulfide Removal and Sulfur Recovery

Cost Estimating Manual
April 1995

Page 202-13

D
A
T
A

202

Data for Curve Estimating

Facility

D
A
T
A

Coefficient at
EDPI = 1100

Exponent

Fluid Catalytic Cracker (FCC)
Reactor, regenerator, and distillation section
to maximize gasoline production.

18.123

0.600

Butane Isomerization
Normal butane feed is catalytically converted
(approx. 60%) to isobutane. Plant includes
mole sieve driers (for both butane and
hydrogen feeds), reactors, and product
stabilizer.

6.340

0.588

Adjustments

Figure 202-19. Cost-Capacity Coefficients and Exponents: Cracking and Alkylation

Facility

Coefficient at
EDPI = 1100

Exponent

Delayed Coking
Includes coke drums, on-plot coke handling
and product distillation and treating. Capacity
is short tons per day of coke produced.

0.832

0.700

Adjustments
The correlation is based on a coke yield to
feed rate ratio of 50 short tons per 1000
barrels; for a different ratio of coke yield to
feed rate, multiply the calculated cost by
−0.281

 coke make, STPOD 
3.02 x 

 Feed rate, MBPOD 

Figure 202-20. Cost-Capacity Coefficients and Exponents: Other Processes

Cost Estimating Manual
Page 202-14

April 1995

Cost-Capacity Coefficients and Exponents for Refinery Offplot Facilities

Cost-Capacity Coefficients and Exponents
for Refinery Offplot Facilities
Figure 202-21 contains cost-capacity coefficients and exponents for
offplot facilities. We originally developed this data from 1970s Chevron
experience. We updated the data to 1991 (EDPI=1100) without further
validation except for adjusting the correlations of boiler plants, cooling
towers, and tankfields to match experiences of projects in the early 1980’s.
Facility descriptions appear on the following pages.
Facility

At EDPI = 1100
Coeff.

Capacity Units

Cost Adjustments

plus 2.5 percent of
Onplot Investment

Exponent

0.28

0.77

M lbs/hr1

Over 10 M GPM

0.93

0.75

M GPM1

Under 10 M GPM

2.08

0.4

M GPM1

Electrical Distribution

1.22

0.7

M KVA1

Boiler Plant
Cooling Tower

Tankfields
Crude

16.8

0.8

MM Bbl2

Other (ex. sulfur, LPG)

34.7

0.8

MM Bbl2

Sulfur
(incl. loading rack)

0.17

0.8

M Bbl2

Butane

0.38

0.7

M Bbl2

Propane

0.46

0.7

M Bbl2
8 percent of
Onplot Investment

Interconnecting
Pipeways
Site Development

0.078

1.0

Developed Acres
2 percent of
Onplot Investment3

Relief System
Marine Facilities
(Coastal Areas Only)
0.25

MBPOD Crude to Refinery

0.20

1.0

MBPOD Incremental Crude to Refinery

Marine Location

0.10

1.0

MBPOD Incremental Crude
Throughput

Inland Location

0.30

1.0

MBPOD Incremental Crude
Throughput

9.9

0.3

MBPOD Crude to Refinery

Grass Roots Refinery
Existing Refinery

25.9

Loading Racks

Effluent Treating
(Grass Roots Refinery)

Figure 202-21. Cost-Capacity Coefficients and Exponents: Refinery Offplot Facilities

Cost Estimating Manual
April 1995

Page 202-15

D
A
T
A

202

Data for Curve Estimating

Use the data in Figure 202-21 in an equation of the form:

D
A
T
A

Cost ($millions, 1991) = Coefficient x (Capacity)Exponent

The costs are on a West Coast (Richmond) basis.
Facility descriptions appear on the following pages.
If you can determine the offplot facility’s size, this method gives better
results than using a percentage of onplot cost (see Section 211).
While the locations and projects vary for facilities in each type of offplot
plant, the following information summarizes the scope nominally
included in these estimating correlations.
Boiler Plant

Oil-fired boiler(s), with BFW treating, BFW pumps, and deaerator
A fuel system (day tank, pumps, and oil heater)
Air systems (utility and instrument air compressors and auxiliaries)
The cost equation is for the boiler plant’s own facilities; the additive
piece, based on a percentage of the process plant costs, allows for the cost
of incremental BFW capacity to support onplot steam generation.
Cooling Tower

Tower and basin, with circulating pumps, main supply and return
headers serving multiple plants, and minimal water treatment
Pump drivers are motors or back-pressure steam turbines
To delete main supply and return headers, subtract 23 percent. To change
to condensing turbines, add 10 percent for 600 psig or 17 percent for 40
psig steam.
Electrical Distribution

Medium voltage wiring and switches, emergency power systems, and
communications
No transformers or motor control centers
Assumes that power company provides high-to-medium voltage substation, and that plant substations are included in individual plant costs
Tankfields

Tankage and associated facilities within the diked area
Tankfield pipeways
Transfer pumps

Cost Estimating Manual
Page 202-16

April 1995

Cost-Capacity Coefficients and Exponents for Refinery Offplot Facilities

Blending/metering facilities
Excludes process/utility area pipeways
Provides for multiple tanks in each category
Pressurized, refrigerated LPG tanks, as appropriate
The sulfur storage cost includes sulfur loading racks.

D
A
T
A

Interconnecting Pipeways

Pipeways in the vicinity of process and utility plants
Excludes cooling water and relief headers, and tankfield pipeways
Site Development

Rough grading
Filling
Roads
Paving
Bridges
Simple railroad spurs
Fencing
Minor landscaping
Relief System

Free-standing elevated flare with molecular seal
Knockout drum and pump
Ground flare with water seals
Vent gas recovery compressor
Main offplot flare header
As an alternative to using a percentage of onplot costs, consider a
lump-sum cost per flare system (see Figure 202-21, Note 3).
Marine Facilities

For coastal areas only; includes piping to/from the refinery
Provides product wharves for two-thirds of the products
For grass-roots only; provides a single-point mooring for crude
receiving

Cost Estimating Manual
April 1995

Page 202-17

202

Data for Curve Estimating

Loading Racks

D
A
T
A

Truck and/or rail loading racks for one-third of products (marine
location) or 100 percent of products (inland location)
The cost of sulfur loading racks is included in the tankfield cost for sulfur
storage.
Effluent Treating

Offplot gathering system for oily water and storm water
Oily water separator(s) with skim pump
Air flotation system
Activated sludge or other BOD reduction system
No tertiary treatment included

Cost Estimating Manual
Page 202-18

April 1995

203
Factored Estimates

April 1995

he simplicity of the factored estimate makes it useful—especially for Class 1 or 2
estimates—when you have little design information, but you can identify the
equipment items from process flow diagrams.

T

The Factored Method
Overview

Information Needed

Applicability

When making a factored estimate, you arrive at the total cost of the plant
(excluding special charges, escalation, and contingency) by doing the
following:
Estimating the cost of tagged process or utility equipment items (see
Section 201)
Multiplying the total equipment cost by a single factor called the
installation factor
You need to develop or obtain a list of the tagged process or utility
equipment and to review the resources listed in Figure 203-1.
The factored method is
suitable for geographically confined facilities.
The quantities of piping, electrical, and other bulk materials for facilities such as process plants and boiler plants are related to the normal
layout of plant equipment and process flow. Bulk materials include
engineered items such as instruments and electrical switchgear and
shop-fabricated materials such as pipe spools and structural steel.

For
Estimating Tagged Process or Utility Equipment

This Manual
Section 401-408

Adjusting to Richmond Cost (Sales Tax)

Section 305

De-escalating to 1991; Adjusting to Current Date

Section 301

Adjusting with Area Factors

Section 311

Adding Special Charges

Section 521

Adding Escalation

Section 312

Adding Contingency

Section 313

Figure 203-1. Resources for Factored Estimating

Cost Estimating Manual
April 1995

Page 203-1

203

Factored Estimates

unsuitable for scattered offplot facilities.1
The quantities (and costs) of bulk materials for facilities such as pipeways, relief systems, or cooling water systems are independent of the
equipment and, therefore, can vary widely between projects and locations.
of limited suitability for plant modifications.
The plot space available for new equipment items is usually not optimal from the standpoint of plant layout or process flow. As a result,
the quantities of bulk materials may be abnormally higher than for a
new plant.
Sources of Data

These are the four types of factors:
Cost-related. Recommended factors are those used in this procedure.
See Figure 203-2.
Specific plant type and location. CRTC Facilities Engineering Unit
has historical data by process and location for a number of Chevron
refineries and chemical plants.

Factors on this plot are derived from Chevron’s completed
process plant projects.
The total equipment cost is the final purchased cost
(including domestic freight and sales taxes).
The average equipment cost is the total equipment cost
divided by the number of equipment items.
The installation factor is the total plant cost (excluding
special charges) divided by the total equipment cost.
To develop the average equipment cost in this plot, review the
Guidelines for Counting Equipment Items at the end of this section.
Figure 203-2. Average Cost-Related Factors for Equipment Based
on Chevron Data

1

If the factored method is unsuitable, refer to the detailed method and semi-detailed method (Section 205).
Cost Estimating Manual

Page 203-2

April 1995

The Factored Method

Type of general process (liquid, solid, or liquid and solid). While
these factors appear in the literature, Chevron does not work with
them.
Specific types of equipment (e.g., pumps or heat exchangers).
Chevron does not work with this type of factor; however, one of our
major contractors arrives at a total plant cost by applying standard,
equipment-specific factors to develop total direct cost, and projectspecific ratios to add indirect field and home office (engineering and
project management) costs.
Steps in a Factored
Estimate

1

The steps in a factored estimate are discussed below using the example of
an estimate made for a distillation unit at Pascagoula during the first
quarter of 1992. See Figure 203-3 for an illustration of these steps.
ESTIMATE THE CURRENT COST OF THE EQUIPMENT

See Section 201, Estimating Major Material (Equipment) Costs. Include
design allowance, domestic freight, and tax for the specific project location.
Use the subcontract price for field-erected equipment such as large
columns.
Use the full (assembled) cost of packaged or skid-mounted equipment.



Do not reduce the equipment cost for savings expected due to the purchase of
foreign or used equipment; instead, use a new U.S. cost for factoring purposes.
Adjust the estimate for any savings at step 9.

Example

The Pascagoula distillation unit consisted of a column, reflux drum,
reboiler, air-cooled condenser, and three pumps with spares. The
equipment cost was estimated as $1,535M, including design allowance,
freight, and Mississippi taxes.
2

ADJUST THE COST TO A WEST COAST (RICHMOND) BASIS

This is principally a sales tax adjustment.
Delete the local sales tax.
Add the Richmond sales tax.
Example

By substituting California’s sales tax for Mississippi’s, the estimated
equipment cost becomes $ 1,637 M.

Cost Estimating Manual
April 1995

Page 203-3

203

Factored Estimates

3

DE-ESCALATE THE TOTAL EQUIPMENT COST

De-escalate to 1991 (EDMI = 850) by multiplying the equipment cost by
this ratio:
EDMI = 850
Current EDMI
Example

The 1992 estimate was made at an EDMI of 856.3, so the de-escalated
cost is ($ 1,637 M) x 850/856.3 = $1,625 M.

1
Estimate Current
Cost of Equipment
2
Adjust Cost (sales tax)
to Richmond, CA
3
De-escalate the Total
Equipment Cost
4
Count Equipment Items
5
Calculate Average
Equipment Cost
6
Determine the
Installation Factor
7
Calculate Total Plant
(Installed) Cost
8
Adjust to Current Data
9
Adjust the Estimate
10
Add Special Charges
11
Add Escalation
12
Add Contingency

Figure 203-3. Steps in Factored Estimating Method

Cost Estimating Manual
Page 203-4

April 1995

The Factored Method

4

COUNT THE NUMBER OF EQUIPMENT ITEMS

Use the Guidelines for Counting Equipment Items at the end of this section.
Example

There were 18 equipment items, including three shells for the reboiler and
seven bays for the air cooler.
5

DIVIDE THE DE-ESCALATED TOTAL EQUIPMENT COST BY THE EQUIPMENT
COUNT TO REACH THE AVERAGE EQUIPMENT COST

Example

Calculate the average equipment cost in 1991 as
$1,625 M /18 = $ 90.3 M
6

DETERMINE THE INSTALLATION FACTOR

Use either Figure 203-2 or the following equation:
a = (33.6) x (b)-0.386
where
a = installation factor at EPDI = 1100 and EDMI = 850 (1991)
b = average equipment cost in $M

Example

Using the equation, calculate the installation factor for 1991 as
(33.6) x ($ 90.3 M)-0.386 = 5.91.
7

CALCULATE THE TOTAL PLANT (INSTALLED) COST IN 1991

Multiply the de-escalated equipment cost (step 3) by the installation factor
(step 6).
Example

The cost becomes ($ 1,625 M) x (5.91) = $ 9,600 M

Cost Estimating Manual
April 1995

Page 203-5

203

Factored Estimates

8

ADJUST THE TOTAL PLANT COST TO THE CURRENT DATE1

Use EDPI and multiply by the ratio:
Current EDPI
EDPI = 1100
Example

The EDPI at 1Q92 was 1116 so the plant cost was calculated as
($ 9,600 M) x (1116/1100) = $ 9,740 M.
9

CORRECT THE ESTIMATE

Re-adjust sales tax (step 2) to return to a real-site basis.2
Adjust for savings for foreign or used equipment by subtracting the
incremental cost for new equipment, including freight and tax
differentials.
Adjust for plant modifications (see Cautions following step 12).
Adjust for duplication savings.3
Adjust area factor considerations such as piling, winterization, or
labor productivity (see Section 311).
Example

The area factor for Pascagoula in 1992 was estimated as 0.95 relative to
Richmond, including the difference in sales tax. The adjusted cost became
($ 9,740 M) x 0.95 = $ 9,250 M, or $9.3 M.
10

ADD SPECIAL CHARGES SUCH AS OCEAN FREIGHT, CATALYST, AND G&A
(SECTION 521)

Example

The combination of Mississippi’s Contractor Gross Income Tax and the
1992 G&A rate for Pascagoula added $200 M for a new total of $9.5 M.

1
2
3

The current EDPI should be for the same time period as the current EDMI in step 3.
Note that, in most locations, sales tax applies only to material, and that material might represent only 48 percent (Section
603) of the estimate.
If a contractor designs multiple, identical plants concurrently, efficiencies in engineering and procurement can reduce the
costs of the second and subsequent plants by 10 percent. These savings may apply even if the plants are constructed at
different locations.
Cost Estimating Manual

Page 203-6

April 1995

The Factored Method

11

OPTIONAL — ADD ESCALATION

If you need a then-current estimate, add escalation based on the
anticipated schedule for the project (see Section 312).
Example

No escalation was considered. This estimate was reported in 1992
constant dollars.
12

ADD CONTINGENCY (SECTION 313)

The result of these steps is an onplot (battery limits) estimate only.
Estimate any offplot requirements separately.
Example

For this Class 1 estimate of a conventional technology plant, the estimator
selected a contingency of 37 percent, yielding a total onplot estimate of
$13 M.
Cautions

Extrapolation. Do not extrapolate the curve beyond the plotted points
in Figure 203-2. The curve may flatten for low average equipment
costs, resulting in installation factors probably not exceeding 9 or 10.
Obviously, the factor cannot drop as low as 1.0 for higher-thanaverage equipment costs.
Complete Plants. As this method is based on actual costs for
complete new facilities with a mixture of equipment types, the factors
shown in Figure 203-2 are most directly applicable to estimating
similar plants.
You can, however, apply the method with a reasonable degree of accuracy to individual equipment items (e.g., adding or deleting items for a
proposed plant before it is built).
Alloy Equipment. The data for the curve came from normal refinery
and chemical process plants that have a limited amount of alloy
equipment and piping. For plants with large amounts of alloy equipment and piping, the factored curve (equation) should still work—the
average equipment cost being higher and the factor lower because the
cost of most bulks (other than piping), labor, and indirects do not vary
from those of a carbon steel plant. Since we have no data to verify this
assumption, consider the factored method less accurate for a plant
with extensive alloy materials.

Cost Estimating Manual
April 1995

Page 203-7

203

Factored Estimates

Modifications. For modifications to existing plants, installation
factors may be higher or lower than for new plants. Generally, they
are higher due to inefficient plant layout, dismantling, delays, work
restrictions, shutdown work, and so on.
For rough estimates, apply the factored method and adjust the cost at
step 9. Increase the labor cost to reflect poorer productivity due to congestion, work restrictions, etc. If, for example, you assume labor and
related field indirect costs to be 34 per cent of the total (section 603)
and anticipate 50 percent more labor hours, then increase the plant
cost by 17 percent, as follows:
(0.34) x (1.50) + (1 - 0.34) = 1.17

Using the semi-detailed method covered in Section 205, estimate the
direct and indirect costs (including productivity effects) for extra
piping, electrical, and other bulk materials necessary because of
inefficient location of the new equipment in the plant. Then estimate
any dismantling costs, both permanent and temporary, for construction
access.
Unusual Construction Features. Estimates for plants in a building or
with extensive vertical structures, jacketed or refractory-lined piping,
sophisticated or redundant instrumentation, or concrete storage pits
require larger installation factors than normal plants. Multiple-train
plants have slightly smaller installation factors from savings through
duplication. If storage tanks are included onplot, the installation factor
is smaller than for a normal process plant.
Guidelines for
Counting
Equipment Items

The following counting rules were used to create Figure 203-2 so they
should also be used when making an estimate. Fortunately, the results are
not very sensitive to the equipment count. (A ten percent variation in
equipment count changes the installation factor by only four percent.)
Do Count

Count the following items as one each:
Each reactor, column, or pressure vessel (even if stacked or with a
common internal head). Be sure to count relief, fuel gas knockout,
condensate flash, condensate receiver, blowdown, and steam separator
drums.
Each tank or bin.

Cost Estimating Manual
Page 203-8

April 1995

The Factored Method

Each heat exchanger or cooling tower.
Each shell for shell-and-tube exchangers.
Each bay for air-cooled exchangers.1
Each stack of double-pipe exchangers if there is more than one
stack per service.
As one item, each set of external plate heat exchangers for one
vessel or other equipment item.
Each bayonet-type exchanger.
Each furnace, boiler, in-line burner, or combustor.
Each pump and each installed spare.
Each compressor and each installed spare, blower, fan, filter, mixer,
agitator, venturi scrubber, cyclone, crusher, ball mill, belt or screw
conveyor or feeder, weigh feeder, vibrating feeder or screen, bag
house, large dust collector with fan, coke handling bucket crane, etc.
Equipment used for batch operations, if permanently installed.2
Do Not Count

The following items are included in the equipment cost but not the count
when deriving the average cost per piece of equipment:
Drivers (motors, steam or gas turbines, power recover turbines, diesel
engines, etc.)
Items furnished as part of a package3
Items that can be considered an integral part of another item
Bag house fans
Boiler and furnace fans, coils, steam and mud drums, stacks,
preheaters, and stack gas treating equipment
Column, vessel and tank internals, heating coils, jackets, and
floating roofs
Gas turbine inlet and exhaust facilities
Silencers and inlet air filters for blowers and compressors

1
2
3

A bay is generally limited to about 600 square feet of bare surface per tube row; e.g., for six tube rows, divide total bare
surface by 3,600. If more than one service per bay, count each service.
For example, for delayed coker plants, count each hoist and each power swivel for coke drum drill stems and each
unheading cart, cutting tool dolly and switch valve.
A “package” consists of two or more equipment items mounted on a skid or module, with substantial amounts of piping
and other bulk materials already installed. At estimating time, it is not usually known whether a package will come on one
or more skids; therefore, count a package as one item even if it comes on more than one skid. Note that some systems are
commonly referred to as “packages” but are not really packages, such as an order for vacuum jets and condensers that
includes the interconnecting piping; in this example, count each condenser. Ejectors are not counted in this method.
Cost Estimating Manual

April 1995

Page 203-9

203

Factored Estimates

Lube oil, seal oil, turbine gland leak-off and jacket water facilities
furnished with mechanical equipment
Noise enclosures.
Pulsation bottles for reciprocating pumps and compressors.
Vibrators for solids storage bins, etc.
Cyclones inside a pressure vessel.
Hopper and screw feeders furnished as part of a ball mill.
Mixers, agitators, or bayonet-type exchangers furnished with
vessels, reactors, or contactors.
The following items are included in neither cost nor count but covered in
the installation factor:
Concrete sumps or pits
Electrical transformers, switchgear, motor control centers, and
associated buildings
Items not permanently installed1
Non-process mechanical equipment 2
Items that are essentially piping items, even though handled as
engineered equipment3
Any instrument items

1

2

3

Examples are some catalyst loading hoppers, some carts and dollies, portable platform scales, warehouse spares,
depreciable spare parts, portable spent catalyst handling equipment (pumps and dewatering classifiers), and other mobile
equipment.
Examples are elevators for people, bridge cranes (or monorails with hoists) for maintenance or catalyst loading, hoists for
lowering people into reactors, rail car pullers, emergency electric generators, oil mist generators, instrument purge
lubricators, septic tank pumps, and non-process HVAC equipment.
Examples are flame arrestors, small filters and strainers, finned pipe coolers, magnetic separators, small venturi scrubbers,
steam injection heaters, small steam separators, small bin vent dust collectors, solids sampling systems, in-line static
mixers, spray nozzles, air diffusers, duct work, desuperheaters, sulfur seals, chutes for solids, loading arms and spouts, lift
lines or pipes, pneumatic vibrators, air cannons (blasters) for solids bins, silencers for vents, eductors, ejectors, sample
coolers, sample accumulators, and rotary, slide gate, needle gate, or duplex clam shell gate valves for solids.
Cost Estimating Manual

Page 203-10

April 1995

204
Ratio Estimates

April 1995

he ratio estimate method is preferred over the factored method for early
conceptual estimates, as long as you have ratios for similar facilities or can
approximate them.

T

The Ratio Method
Overview

Two tasks are associated with this estimate.
Make an estimate of the cost of the tagged process or utility
equipment items (see Section 201).
Apply a series of ratios to the total equipment cost to determine the
costs of bulk material, direct labor, field indirects, design, and project
management.
The total is the plant cost excluding special charges, escalation, and
contingency.

Information Needed

You need to gather the information for the two tasks described above. You
should also review the resources listed in Figure 204-1.

Applicability

The ratio method is
most suitable for facilities in which construction cost components are
consistently related to equipment costs and to each other, principally
process plants and some utility plants where the facilities are geographically confined.
suitable for scattered offplot facilities, such as relief systems or
cooling water systems, if you know enough about the reference plant
to be convinced that you can apply the ratios.
If the ratio method is unsuitable, refer to detailed or factored estimates.

Cost Estimating Manual
April 1995

Page 204-1

204

Ratio Estimates

For

This Manual

Estimating Craft Labor Rates

Section 424

Determining Construction Contractors’ Indirect Costs

Section 501

Estimating Engineering & Project Management Costs

Sections 511, 512

Adding Special Charges

Section 521

Adding Escalation

Section 312

Adding Contingency

Section 313

Figure 204-1. Resources for Ratio Estimating

Sources of
Ratios

To help you prepare ratio estimates, this section includes ratios from final
cost and labor hour data for several types of process plants.
Materials cost ratios (see Figure 204-2)
Labor-hour ratios (Figure 204-3)
This information was gathered from Chevron projects in refineries and in
chemical and gas plants.

Steps in a
Ratio Estimate

The steps in a ratio estimate (shown in Figure 204-4), are described in this
section and illustrated using the example of a 1987 estimate for a new
cogeneration facility.

Cost Estimating Manual
Page 204-2

April 1995

The Ratio Method

Plant Type
Location

Built

J
Inst.

L
Piping

M
Steel

N
Insul.

P
Elect.

Q
Found

S
Misc.

Total
Minor
Mat’l

Crude Unit

El Segundo, CA
Perth Amboy, NJ
Richmond, CA

1975
1975
1975

8.34
9.51
9.80

38.53
51.42
36.77

5.40
10.50
13.01

*12.49
*33.46
*17.38

8.64
20.57
6.85

7.96
5.16
6.51

0.73
2.73
3.09

69.60
99.89
76.03

Vacuum Distillation

Pascagoula, MS

1982

14.07

52.67

13.34

6.31

8.93

1.78

1.61

98.71

LSR Splitter

Pascagoula, MS

1975

12.78

27.00

13.81

*12.31

19.31

4.17

4.80

81.87

Sulfuric Acid
Alkylation

Pascagoula, MS

1982

21.95

48.35

15.07

3.75

14.55

3.98

2.48

110.13

LSR Treater

Pascagoula, MS

1974

34.52

131.72

10.00

0.00

13.86

9.36

6.80

206.26

H2S Recovery

El Segundo, CA
Pascagoula, MS
Richmond, CA

1975
1974
1975

15.75
35.73
25.47

38.91
102.48
47.71

9.63
12.64
8.91

*8.29
*15.50
*6.47

4.15
7.92
20.47

6.05
3.39
22.97

0.66
5.60
6.36

75.15
167.76
131.89

Sulfur

Pascagoula, MS
Pascagoula, MS
Carter Creek, WY

1974
1982
1983

66.01
34.09
17.37

97.02
61.53
67.64

30.33
23.71
16.73

*34.50
5.80
6.99

65.07
23.11
14.70

11.36
9.36
3.81

11.00
5.40
9.14

280.79
163.00
136.38

Hydrofiner
-HSGO
-FCC Feed
-Coker HDN
-Mid Dist

Pascagoula, MS
Pascagoula, MS
Pascagoula, MS
Richmond, CA

1974
1974
1982
1975

13.45
10.57
13.81
10.19

27.72
30.00
29.42
22.25

6.23
7.75
6.21
3.93

*6.19
*8.44
3.30
*9.87

13.17
14.03
10.94
8.15

2.58
1.99
1.85
7.49

4.80
3.87
1.42
4.39

67.95
68.21
66.95
56.40

HydrotreaterRheniformer

Perth Amboy, NJ
Richmond, CA

1975
1974

8.13
13.31

40.83
24.55

21.42
5.58

*18.50
*6.96

10.28
7.99

11.08
5.93

3.31
2.16

95.05
59.52

Naphtha Hydrotreater

El Segundo, CA

1974

20.51

27.61

11.34

*8.74

14.51

14.70

2.27

90.94

Rheniformer

Pascagoula, MS

1974

9.18

43.56

8.88

*4.84

8.41

3.26

1.80

75.09

VRDS

El Segundo, CA

1975

6.87

48.06

8.40

*5.16

4.57

4.78

0.55

73.23

37.40

9.08

*19.81

8.91

0.81

3.45

68.28

Gas Oil Isomax

Perth Amboy, NJ

1975

8.63

VGO Desulfurizer

El Segundo, CA
Richmond, CA

1975
1975

9.35
12.19

61.17
64.36

6.05
12.18

*8.91
*14.79

7.14
9.18

7.17
5.29

2.04
4.60

92.92
107.80

RDS

Pascagoula, MS

1982

9.08

20.71

6.77

1.93

6.76

1.24

2.53

49.02

Delayed Coker

Pascagoula, MS

1982

14.58

42.46

23.88

6.33

10.38

5.85

1.86

105.34

Hydrogen

El Segundo, CA
Pascagoula, MS

1975
1982

13.48
10.81

33.37
30.84

12.82
5.13

*8.09
3.44

6.35
4.52

8.48
1.96

2.65
0.92

77.15
57.62

Ethylbenzene (EB)

St James, LA

1990

13.83

44.86

14.42

7.36

4.47

2.20

0.80

87.94

Styrene

St James, LA

1990

8.15

21.18

6.76

5.21

3.00

1.82

0.44

46.56

Styrene/EB Combined

St James, LA

1990

10.03

29.03

9.31

5.92

3.49

1.95

0.56

60.29

Indexing: Percentages do not require time adjustment (indexing) based on the assumption that the prices of all materials rise
at approximately the same rate over time.
Insulation: Values with asterisks (*) are total subcontract values, including labor and overheads. The variation in these values is due
in part to regional labor rate differences and local market conditions at the time the work was executed.
Piling: The data excludes piling. Where piling is required, estimate it at 1–3 percent of the plant’s total cost (before adding special
charges) (step 9).
Buildings: Building requirements are site-specific and often included in the offplot. Estimate them separately if they are required.

Figure 204-2. Materials Cost Ratios for Minor (Bulk) Material as a Percentage of Major Material (Equipment)

Cost Estimating Manual
April 1995

Page 204-3

204

Ratio Estimates

Labor Hours to Install Categories of Materials — Labor Hours/Thousand Dollars of Material
(EDMI = 850)
Plant Type

Location

Built

Major
Mat’l

J
Inst.

L
Piping

M
Steel

N
Insul.

P
Q
S
Elect. Found Misc.

Total Grand
Minor Total
Mat’l

Crude Unit

El Segundo, CA
Perth Amboy, NJ
Richmond, CA

1975
1975
1975

3
4
3

49
29
11

40
58
51

37
23
15

-

70
13
42

33
37
43

153
92
67

45
42
39

20
23
18

Vacuum Distillation

Pascagoula, MS

1982

7

37

22

12

100

49

145

129

34

21

LSR Splitter

Pascagoula, MS

1975

3

10

45

25

-

39

187

97

45

22

Sulfuric Acid Alkylation Pascagoula, MS

1982

3

14

32

11

164

47

139

132

38

22

LSR Treater

Pascagoula, MS

1974

2

9

28

10

-

45

76

102

30

21

H2S Recovery

El Segundo, CA
Pascagoula, MS
Richmond, CA

1975
1974
1975

3
5
3

24
16
7

39
27
38

37
37
20

-

56
121
26

43
108
14

394
81
32

40
33
25

18
23
15

Sulfur

Pascagoula, MS
Pascagoula, MS
Carter Creek, WY

1974
1982
1983

18
5
5

10
15
24

52
39
49

18
11
37

116
161

28
56
56

100
97
122

71
102
112

36
40
57

31
27
35

Hydrofiner
- HSGO
- FCC Feed
- Coker HDN
- Mid Dist

Pascagoula, MS
Pascagoula, MS
Pascagoula, MS
Richmond, CA

1974
1974
1982
1975

3
3
4
3

18
22
22
9

35
36
34
42

20
27
12
9

122
-

34
39
56
30

160
172
147
30

50
55
151
52

36
38
43
31

16
18
20
13

Hydrotreater
-Rheniformer

Perth Amboy, NJ
Richmond, CA

1975
1974

7
6

34
9

50
49

9
9

-

23
42

11
32

88
74

33
34

20
16

Naphtha Hydrotreater

El Segundo, CA

1974

5

36

84

30

-

92

40

152

62

33

Rheniformer

Pascagoula, MS

1974

7

9

19

16

-

29

110

101

25

14

VRDS

El Segundo, CA

1975

2

37

19

16

-

59

33

170

25

12

Gas Oil Isomax

Perth Amboy, NJ

1975

3

29

55

18

-

23

141

84

45

20

VGO Desulfurizer

El Segundo, CA
Richmond, CA

1975
1975

3
4

42
6

22
23

22
14

-

83
37

30
76

69
59

30
25

16
15

RDS

Pascagoula, MS

1982

2

24

28

12

127

50

125

53

36

13

Delayed Coker

Pascagoula, MS

1982

5

24

28

11

86

54

121

126

36

21

Hydrogen

El Segundo, CA
Pascagoula, MS

1975
1982

3
5

23
20

56
29

18
12

105

68
78

33
87

69
138

43
38

20
17

Ethylbenzene (EB)

St James, LA

1990

3

23

40

20

100

77

90

111

43

22

Styrene

St James, LA

1990

2

16

39

20

78

72

71

159

41

14

Styrene/EB Combined St James, LA

1990

2

19

40

20

87

74

78

136

42

17

Indexing: The cost of materials rises over time while the labor hours remain fairly constant. As the ratios decline with time, use the
materials cost index (EDMI) to adjust them. In this table, we adjusted actual project data to 1991, EDMI = 850.
Example: A ratio in this table is 40 labor hours/$1,000 material. To adjust it to a later date when the EDMI is 950:
40 MH/$M × 850/950 = 36 MH/$M
Insulation: No data is given for those plants where the work was subcontracted as we could not separate costs for material and labor
in those cases. See the notes for Figure 204-2.
Piling & Buildings: No data is included. See the notes for Figure 204-2.

Figure 204-3. Ratios of Labor Hours to Dollar Value by Category of Materials (per $1,000 of Material)

Cost Estimating Manual
Page 204-4

April 1995

The Ratio Method

1
Estimate Cost of
Equipment

2
Select One or
More Sets of Ratios
3
Calculate Cost of
Bulk Materials
4
Calculate Labor for
Each Account
5
Develop Total
Direct Cost
6
Calculate Construction
Contractor's
Field Indirect Costs
7
Calculate Engineering &
Project Mgmt Costs
8
Calculate the Total
Indirect Cost
9
Calculate Total Cost
10
Add Special Charges
11
Add Escalation

12
Add Contingency

Figure 204-4. Steps in Ratio Estimating Method

1

ESTIMATE THE COST OF EQUIPMENT

Include design allowance, freight and tax (see Section 201).
2

SELECT ONE OR MORE SETS OF RATIOS

Identify individual facilities, similar to the one being estimated, where
ratios are available or you can develop them.
Evaluate the ratios from the reference plants and choose the most
suitable for each step of your estimating situation. Ask questions such
as the following:

Cost Estimating Manual
April 1995

Page 204-5

204

Ratio Estimates

Does one of the reference plants have an abnormally high amount of
alloy piping?
Are there few foundations because much of the equipment is mounted
in a structure or on skids?
Is there less structural steel because this plant shares a piperack with
another plant?
Is there more engineering because it’s a small-capacity plant with
many equipment items?
3

CALCULATE THE COST OF BULK MATERIALS BY RATIO FROM THE TOTAL COST
OF THE EQUIPMENT

Use separate ratios for each account (piping, instruments, electrical, etc.).
Do not add site-specific freight and tax costs. The ratios automatically
include those costs in the bulk accounts (to the degree they were included
in the reference plants) because they are included in the equipment costs
from Step 1.
4

CALCULATE THE LABOR FOR EACH ACCOUNT

Ratio labor hours from the corresponding material costs. Base
equipment-setting labor on the total equipment cost rather than on
individual accounts (vessels, pumps, etc.).
Use ratios expressed in terms of labor hours per thousand dollars of
material (MH/$M). These ratios are for a particular time period
(EDMI), unlike the material $./.$ ratios which are independent of time.
Adjust the labor hours for any differences you can determine in labor
productivity versus the reference plants.
Multiply the labor hours by the hourly craft labor rate for the proposed
plant location from Section 424, or contact the operating location for
prevailing wage rates in that area.
5

DEVELOP THE TOTAL DIRECT COST

Add the sum of the material and labor (steps 1, 3, and 4).
6

CALCULATE THE CONSTRUCTION CONTRACTOR’S FIELD INDIRECT COSTS

From total direct labor (step 4), use the ratios in Section 501. This step
does not apply if you chose an “all-in” labor rate (including contractor
indirects) at step 4.

Cost Estimating Manual
Page 204-6

April 1995

The Ratio Method

7

CALCULATE ENGINEERING AND PROJECT MANAGEMENT COSTS

From the sum of steps 5 and 6, use the ratios suggested in Sections
511 and 512 for contractor and Chevron costs, respectively.
Adjust the ratioed contractor cost from Section 511 if there are
duplicate plants on the project.1
8

CALCULATE THE TOTAL INDIRECT COST

Add the sum of steps 6 and 7. Total indirect cost (Chevron terminology) is
the sum of these costs: contractor’s field indirect, contractor’s home
office, and Chevron design-and-project management.
9

CALCULATE THE TOTAL PLANT COST (EXCLUDING SPECIAL CHARGES,
ESCALATION, AND CONTINGENCY)

Add the total direct cost from step 5 to the total indirect cost from step 8.
10

ADD SPECIAL CHARGES

Use Section 521 as a checklist to identify possible special-charge costs
that may apply to the estimate. Examples are ocean freight (Section 304),
catalyst (Section 521), and G&A (Section 522)
11

OPTIONAL — ADD ESCALATION

If you need a then-current estimate, add escalation based on the
anticipated schedule for the project (see Section 312).
12

ADD CONTINGENCY (SECTION 313).

The total is an onplot (battery limits) estimate only; you must estimate
any
offplot requirements separately.
The following pages present an example of a ratio estimate.

1

The contractor’s engineering and procurement costs for the second and subsequent identical plants may be as low as
50 percent of the design cost for the first plant. The modest savings in Chevron costs under Section 512 will be included
because the total cost for the contractor will be lower.
Cost Estimating Manual

April 1995

Page 204-7

204

Ratio Estimates

Example of
Ratio Method

1

In 1987, Chevron estimators prepared a ratio estimate for a new cogeneration facility proposed for the Pascagoula refinery. A step-by-step
description of that estimate follows:
ESTIMATE THE COST OF EQUIPMENT

Using primarily informal quotations from vendors, estimators
defined and then priced the required equipment
included design allowance, freight, and sales tax
The total estimated equipment cost was $19,420M.
2

SELECT ONE OR MORE SETS OF RATIOS

Estimators developed ratios from best-available estimates of three other
cogeneration projects—El Segundo, Richmond, and Orange. Final costs
for those projects were unavailable at that time.
The table in Figure 204-5 shows
ratios for each reference location
the average of the three
the value selected for the new estimate
To validate the information, the estimator calculated the sums of the
selected ratios and compared them to corresponding sums of the average
values. They were acceptable.
3

CALCULATE THE COST OF BULK MATERIALS BY RATIO FROM THE TOTAL COST
OF THE EQUIPMENT

The table in Figure 204-6 shows calculations of the costs of bulk
materials accounts based on the ratios from Section A of Figure 204-5.
4

CALCULATE THE LABOR FOR EACH ACCOUNT

The table in Figure 204-7 shows
how labor hours were calculated from the material cost for total
equipment and for each bulk account, using the ratios from Figure
204-5, Section B.1
how the labor cost was calculated, using an average rate of $15.60 per
labor hour (including payroll taxes and fringe benefits), based on the
updated (indexed) rate from an earlier Pascagoula project.

1

The reference plant costs had been updated to 1987 so that the MH/$M of material ratios needed no further time adjustment.
Cost Estimating Manual

Page 204-8

April 1995

The Ratio Method

Reference Projects (Onplot)
El
Segundo

Richmond

A. Minor Material Costs as % of Major Material
10.1
J - Instruments

Orange

6.7

10.8

Avg.

9.2

Used for
Pascagoula

10.0

L - Piping

5.1

5.1

10.0

6.7

6.0

M - Structures

1.8

2.4

0.4

1.5

2.0

N - Insulation

0.4

0.3

1.6

0.8

0.5

P - Electrical

5.1

16.5

24.8

15.5

14.4

Q - Foundations

1.1

2.9

1.1

1.7

1.5

R - Buildings

1.0

0.5

0.7

0.7

1.0

S - Miscellaneous

1.1

2.4

0.6

1.4

1.0

25.7

36.8

50.0

37.5

36.4

Major Material

2.1

1.9

2.2

2.1

2.2

J - Instruments

5.7

4.5

19.0

9.7

6.0

L - Piping

31.5

22.5

31.1

28.4

32.0

M - Structures

19.0

5.2

12.6

12.3

15.0

N - Insulation

40.7

41.3

47.3

43.1

41.0

P - Electrical

33.7

6.5

6.0

15.4

6.5
70.0

As a check: Total Minor Mat’l

1

B. Labor Hours per $1,000 Material

1

132.9

36.8

63.9

77.9

R - Buildings

16.2

63.7

52.7

44.2

40.0

S - Miscellaneous

45.0

103.4

76.9

75.1

60.0

As a check: Total Minor Mat’l

25.4

18.0

18.0

20.5

16.5

6.9

6.2

7.5

6.9

6.0

21.9

24.7

19.3

22.0

20.0

Q - Foundations

As a check: Total Material
C. Technical Service Percentage

2
2

1

We estimated electrical costs and hours in detail and back-calculated them for this example.
The resulting ratios are reasonably close to the values for the reference plants.
2
Back-calculated from figure 204-7.
Figure 204-5. Table of Ratios for Cogeneration Project

% Major Mat’l

Calculation

$M

Major Material

100.0

As Estimated

J - Instruments

10.0

10.0% x 19,420 = 1,940

L - Piping

6.0

6.0% x 19,420 = 1,170

M - Structures

2.0

2.0% x 19,420 =

390

N - Insulation

0.5

0.5% x 19,420 =

100

P - Electrical

14.4

19,420

14.4% x 19,420 = 2,800

Q - Foundations

1.5

1.5% x 19,420 =

290

R - Buildings

1.0

1.0% x 19,420 =

190

S - Miscellaneous

1.0

1.0% x 19,420 =

190

Total Minor Mat’l
Total Material

36.4

7,070

136.4

26,490

Figure 204-6. Calculating Cost of Minor (Bulk) Materials for Pascagoula

Cost Estimating Manual
April 1995

Page 204-9

204

Ratio Estimates

MH per $M Matl
Major Material

MH Calc

2.2

2.2 x 19,420 =

MH

$M @ $15.60/MH

42,700

670

6.0

6.0 x 1,940 =

11,600

180

L - Piping

32.0

32.0 x 1,170 =

37,400

580

M - Structures

15.0

15.0 x

390 =

5,900

90

N - Insulation

41.0

41.0 x

100 =

4,100

60

P - Electrical

6.5

6.5 x 2,800 =

18,200

280

20,300

320
120

J - Instruments

Q - Foundations

70.0

70.0 x

290 =

R - Buildings

40.0

40.0 x

190 =

7,600

S - Miscellaneous

60.0

60.0 x

190 =

11,400

180

Total Minor Mat’l1

16.5 = 116,500/7,070

116,500

1,810

Total Material1

6.0 = 159,200/26,490

159,200

2,480

1

MH/$M are back-calculated for comparison with the reference plants in Section B of
Figure 204-5 as a check.

Figure 204-7. Calculating Labor Hours (MH) & Costs for Pascagoula

5

DEVELOP THE TOTAL DIRECT COST

The total direct cost is the sum of steps 1, 3, and 4, and is shown on the
overall estimate summary, Figure 204-8.
6

CALCULATE THE CONSTRUCTION CONTRACTOR’S FIELD INDIRECT COSTS

Estimators based the contractor’s indirect cost on a previous project at the
same refinery, calculating it at 105 percent of the direct labor cost from
step 4.
7

CALCULATE ENGINEERING AND PROJECT MANAGEMENT COSTS

Estimators applied the technical service percentage (engineering and
project management) from Figure 204-5, Section C to the sum of Steps 5
and 6 to get the dollar value shown in Figure 204-8.
8

CALCULATE THE TOTAL INDIRECT COST

Add the sum of steps 6 and 7.
9

CALCULATE THE TOTAL PLANT COST (EXCLUDING SPECIAL CHARGES, ESCALATIONS, AND CONTINGENCY)

Add the sum of steps 5 and 8. The sum of the direct and indirect costs is
the total plant cost.

Cost Estimating Manual
Page 204-10

April 1995

The Ratio Method

Direct Cost (Group II)
Major Materials

Material $M

2,940
170

G - Pumps & Drivers

Minor Materials

K - Mechanical Equip.

15,850

Sub-Total

19,420

670

J - Instruments

1,940

180

L - Piping

1,170

580

M - Structures

390

90

N - Insulation

100

60

2,800

280

Q - Foundations

290

320

R - Buildings

190

120

S - Miscellaneous

190

180

P - Electrical

Total $M

220

E - Exchangers
F - Heaters

Labor $M

240

C - Columns & Vessels

20,090

Sub-Total

7,070

1,810

8,880

Total Direct Cost (Group II)

26,490

2,480

28,970

Indirect Cost (Group I)
1

By Item $M

Contractor Field Indirects

2,600

Technical Svcs (Eng’g & Proj. Mgmt)2

6,310
8,910

Total Indirect Cost (Group I)

37,880

TOTAL PLANT COST EXCLUDING SPECIAL CHARGES
Special Charges
Contractor Gross Income Tax (Miss.)3
4

By Item $M
380
1,200

Spare Parts

Capitalized G&A Expense5

140
1,720

Total Special Charges

39,600

TOTAL PLANT COST INCLUDING SPECIAL CHARGES
Other Adjustments
Escalation6

By Item $M
3,900

7

6,500

Contingency

Total Other Adjustments

10,400

TOTAL ONPLOT COST ESTIMATE (then-current)

50,000

1
2
3
4
5
6
7

Calculated as 105 percent x 2,480 Direct Labor.
Calculated as 20 percent x sum of 28,970 and 2,600.
One percent of Total Plant Cost including Special Charges.
Allow 800 for gas turbine generator, 400 for other.
0.5 percent of first 25M, 0.1 percent thereafter.
Based on 2-1/2 years from estimate date to mid-point of expenditure & using EDPI
forecast,9.9 percent x 39,600..
Use 500 for gas turbine generators and 10 percent for heat recovery steam generators,
plus 20 percent on everything else.

Figure 204-8. Summary of Overall Ratio Estimate for Pascagoula

Cost Estimating Manual
April 1995

Page 204-11

204

Ratio Estimates

10

ADD SPECIAL CHARGES

Special charges were estimated using values appropriate at the time.
These tasks were performed:
Estimated contractor’s gross income tax (specific to Mississippi) as
one percent of the total plant cost at step 9.
Developed an allowance for spare parts.
Calculated capitalized G&A as 0.5 percent of the first $25M and 0.1
percent of the remainder, based on total costs to this point.
11

OPTIONAL — ADD ESCALATION

Estimators calculated escalation to the mid-point of expenditure, based on
an assumed project schedule and the then-forecast values of EDPI (see
Section 312).
12

ADD CONTINGENCY (SECTION 313)

Estimators added contingency to reach a total onplot cost.1 Figure 204-8
excludes offplot, although it was added it to the actual estimate before it
was reported to the client

1

The data in Section 313 was not available in 1987, so contingency was based on the estimator’s judgment.
Cost Estimating Manual

Page 204-12

April 1995

Detailed and Semi-Detailed Methods

205
Detailed Estimates

April 1995

his section covers the detailed and semi-detailed methods of cost estimating.

T

Detailed and Semi-Detailed Methods
Overview

Assumptions

Information Needed

1

2

A detailed estimate is based on a complete definition of the work—every
element is identified and quantified, and engineering is about 30-50
percent complete. Usually, you prepare this estimate to check project cost
against budget or to manage the construction effort.
A semi-detailed estimate is a five-step process based on assessing only
the direct costs in limited detail and applying ratios to the direct costs to
determine the indirect costs.
For the purposes of this section, it is assumed that the construction
contractor
employs direct-hire labor rather than subcontractors
hires subcontractors only for specialty work, for example, insulation
or pile driving
To make a detailed (Class 4) cost estimate, you must have a complete
definition of the work, identifying and quantifying every element.
You need to obtain the following items:
Copies of the latest equipment lists and equipment data sheets
Copies of purchase orders, supplements, and bid tabulations for both
equipment and bulk materials
A complete set of the available drawings1
You then need to develop a quantity takeoff of the bulk materials from the
drawings.2 If others are performing the quantity takeoff, it increases their
efficiency if they know how the estimator plans to price the material.

Normal practice in a contractor’s office is to freeze the design for the estimate so that the estimate is based on drawing
revisions available on a particular date. The estimate is not adjusted, except on a gross basis, for any further design work
carried out while the estimate is being prepared.
The estimator or the designer (perhaps using a CAD system) performs the quantity takeoff in a manner consistent with the
estimating method. For example, count each piping item separately if it is to be priced separately (pipes, valves, flanges,
fittings by diameter and schedule or pressure rating).
Cost Estimating Manual

April 1995

Page 205-1

205

Detailed Estimates

An estimator—particularly for semi-detailed estimates—might base
the piping cost solely on the straight-length of pipe and a composite
unit price (per foot or per diameter-inch-foot) that includes fittings
and valves.
Some contractors may take off only the major items in each
commodity account (piping, steel, etc.), and then use ratios to price
other, smaller-value items that do not warrant being counted
separately.
Review also the resources listed in Figure 205-1.

For

In this Manual

Direct costs
Material
Equipment

Section 201, 401-408

Design Allowance; Takeoff Allowance

Section 303

Bulk Materials

Section 411

Freight

Section 304

Sales or Use Tax

Section 305

Manhours

Section 421

Rework

Section 423

Labor

Productivity Adjustment

Section 422

Labor Rate

Section 424

Subcontracts

Section 411

Indirect costs
Contractor’s Field Indirects

Section 501

Engineering, Procurement & Project Management
By Contractor

Section 511

By Company

Section 512

Special charges

Section 521

Escalation

Section 312

Contingency

Section 313

Figure 205-1. Resources for the Detailed Method of Cost Estimating

Cost Estimating Manual
Page 205-2

April 1995

Detailed and Semi-Detailed Methods

Applicability

Steps in a
Detailed Estimate

The detailed method is
suitable for projects when sufficient detail is available—usually by the
time engineering is 30-50 percent complete.
unsuitable for screening studies if simpler, less costly methods can
be used.
The semi-detailed method is
suitable for some Class 1-3 estimates, which you cannot estimate by
some of the simpler techniques (curve, factored, ratio) and for which
you do not have a high percentage of engineering completed.1
unsuitable for Class 4 estimates that have the detail available.
Figure 205-2 shows the steps to follow in performing detailed estimates.
The steps are discussed on the following pages.

1
Estimate Delivered Cost
of Process Equipment
2
Estimate Delivered
Cost of Bulk Materials
3
Estimate Direct Labor
for Equipment & Bulk
Materials
1-4 = Total Direct Cost
1-5 = Contractors Total Field Costs
5-6 = Total Indirect Cost
1-9 = Total Plant Cost

4
Estimate
Subcontracts

5
Estimate the Contractor's
Indirect Field Cost
6
Estimate Engineering,
Procurement, Project
Management Costs
7
Estimate Special Charges
8
Add Escalation
9
Add Contingency

Figure 205-2. Steps in Detailed Estimating
1

In a refinery or chemical plant, most offplot facilities and plant modifications fall into this category.
Cost Estimating Manual

April 1995

Page 205-3

205

Detailed Estimates

1

ESTIMATE THE DELIVERED COST OF THE PROCESS EQUIPMENT (SECTION 201)

Include the following:
Design allowance (see Section 303)
Freight if not included in cost of items (see Section 304)
Sales or use tax, based on project-specific information (see Section
305)
Some contractors estimate freight and tax as one-line entries after pricing all material. For foreign purchases, estimate ocean freight and import duties with the equipment even though, from a cost-accounting
standpoint, they are considered special charges. (They can always be
separated later, if desired.)
2

ESTIMATE THE DELIVERED COST OF BULK MATERIALS

Locate any available project-specific purchase orders or vendor quotes.
Estimate engineered items (tagged instruments and electrical
switchgear) in the same way as equipment, including an appropriate
design allowance.
Estimate shop-fabricated steel and pipe spools from the unit prices on
purchase orders or quotes and from quantities developed from design
information.
Price other bulk materials based on quantity takeoffs, with an
appropriate quantity takeoff allowance (see Section 303).
Include freight and sales/use tax (Sections 304 and 305) for bulk
materials, recognizing that some pricing is on a delivered basis (such
as ready-mix concrete).
3

ESTIMATE THE DIRECT LABOR TO INSTALL EQUIPMENT AND BULK MATERIALS

Follow a three-stage process to estimate the direct labor for installation of
equipment and bulk materials.
Stage one. Base the estimated manhours required for craft labor on a set
of standard manhour tables. (Contractors maintain their own manhour
standards.) (Section 421)
Apply manhours to each item of equipment based on the type of
equipment and some parameter for size, such as weight or
horsepower.

Cost Estimating Manual
Page 205-4

April 1995

Detailed and Semi-Detailed Methods

Determine manhours for bulk installation per unit quantity (per foot or
per cubic yard) for specific types or sizes of materials. Apply these
manhour rates to quantities that include quantity takeoff allowances
but exclude wastage allowance because the latter attracts no labor (see
Section 303).
Include an allowance for rework, usually as a percentage of the total
standard-based manhour estimate (see Section 423).1
Stage two. Adjust the standard manhours to the particular job site by
applying a productivity factor (see Section 422).
Stage three. Apply a labor rate (dollars per manhour) to the productivityadjusted manhour estimate.
Choose either a composite rate for all work or separate rates for each
craft (see Section 424).2
An alternative (uncommon at the detailed estimate stage) is to use an
all-in labor rate that includes the contractor’s field indirect costs. (These
costs are discussed in step 5.)
4

ESTIMATE SUBCONTRACTS FOR FIELD-ERECTED EQUIPMENT AND FOR
FURNISHING AND INSTALLING BULK MATERIALS

Subcontracts for bulk materials are usually specialty subcontracts that
include both labor and material; typical examples are for insulation,
paving, painting, and pile driving. They are priced in the same way as
other bulk materials, with unit prices and quantities that include quantity
takeoff allowances, but without a separate freight allowance. Depending
on the contract, an allowance for sales tax may be unnecessary because it
may be included in the contract price.



1

2

The total direct cost is the sum of the estimated material, labor, and subcontract
costs.

Many contractors are reluctant to add an allowance for rework to their estimates, perhaps because it might imply that they
don’t know how to manage the work. Standard manhour tables generally exclude rework, but it does occur and is charged
against most reimbursable contracts.
The data in Section 424 assumes that the labor rate includes the basic wage plus payroll taxes and fringe benefits. When
calculating direct labor cost, contractors often work with only the base wage rate and add payroll taxes and fringe benefits
into field indirect costs. When applying individual craft rates, recognize that more than one craft may be required for a
single material account (e.g., concrete foundations require carpenters, ironworkers, and cement finishers). This fact makes it
easier to apply an overall composite rate for all work rather than to create a specific composite rate for the crafts involved in
a given type of work.
Cost Estimating Manual

April 1995

Page 205-5

205

Detailed Estimates

5

ESTIMATE THE CONTRACTOR’S FIELD INDIRECT COST, PROBABLY AS A
PERCENTAGE OF DIRECT LABOR (SEE SECTION 501)

When a contractor prepares a detailed estimate at 30-50 percent of design,
the construction manager develops preliminary plans for items such as
construction staffing, equipment rental, and temporary facilities. These
costs can be estimated in some detail. Chevron estimators may be forced
to estimate this on a percentage basis because they won’t know how the
contractor (particularly a separate, yet-to-be-identified construction
contractor) will execute the work.



6

Contractors often refer to the sum of the direct cost and the contractor’s field
indirect cost as the total field cost to distinguish it from their home office cost.
Chevron estimates do not make this distinction.

ESTIMATE ENGINEERING, PROCUREMENT, AND PROJECT MANAGEMENT COST

Apply a percentage figure for the contractor’s home office cost if you
cannot make a detailed estimate of it (see Section 511).1 Contractors’
detailed estimates include manhour estimates for each design
discipline (process, mechanical, electrical, civil, etc.) as well as for
procurement and project management, with one or more average
hourly rates applied to the manhour estimates. These estimates also
include non-labor costs for items such as computer support and travel.
Estimate Chevron design and project management costs in place of, or
in addition to, the contractor’s home office costs. Base this estimate
on detailed manpower plans and on unit rates experienced to date for
items such as travel and relocation (see Section 512).
7

CALCULATE THE TOTAL PLANT COST (EXCLUDING SPECIAL CHARGES,
ESCALATION, AND CONTINGENCY)

The sum of the total direct cost and the total indirect cost is the total plant
cost.
8

ESTIMATE SPECIAL CHARGES

Some special charges, such as permit preparation and dismantling to clear
space for the new facilities, may be fixed at the detailed estimate stage.
You must estimate all others (see Section 521).

1

Adjust that percentage figure if there are duplicate plants on the project. The contractor’s engineering and procurement
costs for the second and subsequent identical plants may be as low as 50 percent of the design cost for the first plant.
Contractors who have prepared detailed estimates of home office costs should have built in these savings, so you need
make no further adjustment.
Cost Estimating Manual

Page 205-6

April 1995

Detailed and Semi-Detailed Methods

9

ADD ESCALATION

Escalate only uncommitted work, preferably in some detail (see Section
312). Awarded fixed-price purchase orders and contracts and all expenditures to date require no additional escalation (although they may have
some escalation built into their pricing relative to earlier estimates).
Separate escalation estimates for craft labor and for home office
manpower may be unnecessary if the average hourly rates in the base
estimate are project averages that include escalation (common in
contractor-prepared estimates).
A manpower-expenditure forecast for construction crafts can help you
develop labor escalation based on anticipated changes in annual wage
rates. These changes follow a stepped escalation pattern rather than the
smooth, continuous pattern assumed in simpler estimating techniques.
You can develop centroids of expenditure for individual material
commodities and for engineering and project management, based on
project schedules.
10

ADD A CONTINGENCY ALLOWANCE (SEE SECTION 313).

Do not include contingency for funds already expended or committed
on a firm-price basis (assuming design and quantity takeoff
allowances have been properly applied).
Base contingency on remaining uncommitted and unexpended funds
only (including any escalation).1
Steps in the SemiDetailed Method of
Cost Estimating
1

Figure 205-3 shows the steps to follow for performing the semi-detailed
estimate. The steps are discussed on the next several pages.
ESTIMATE THE DELIVERED COST OF THE PROCESS EQUIPMENT

Develop an equipment list and prices as described in the beginning of this
section.
2

ESTIMATE THE DELIVERED COST OF BULK MATERIALS

Develop material quantities from preliminary plot plans and simple
sketches, adding a generous quantity takeoff allowance.
Section 411 includes suggested unit prices for each of the bulk accounts.2
1
2

For a Class 4 estimate, consider the Monte Carlo method for determining contingency; for a Class 3 estimate, you should
use the IPA statistical method.
Unit pricing is established on a simpler, overall basis. For example, piping can be estimated by taking a cost-perdiameter-inch-foot that includes straight pipe and fittings and perhaps valves. Pricing concrete foundations on a percubic-yard basis may include form work, rebar, and anchor bolts as well as concrete.
Cost Estimating Manual

April 1995

Page 205-7

205

Detailed Estimates

Figure 205-3. Steps in Semi-detailed Estimating

3

ESTIMATE THE DIRECT LABOR TO INSTALL EQUIPMENT AND BULK MATERIALS

Estimate equipment installation manhours in the same way as detailed
estimates.
Estimate installation labor for bulk materials by working with average
manhour rates, or by applying ratios as described in the ratio
estimating method (Section 204). Be careful when using multiple
techniques to avoid omissions or double-dipping.
Use composite labor rates and an overall productivity factor, if
available.
4

ESTIMATE SUBCONTRACTS FOR FIELD-ERECTED EQUIPMENT AND FOR FURNISHING AND INSTALLING BULK MATERIALS

This is similar to detailed estimates, except that the bulk material quantity
takeoffs are cruder.
5

COMPLETE THE ESTIMATE

After totaling the material, labor, and subcontracts to get total direct costs,
complete the estimate by applying steps 6-12 of the ratio estimating
technique described earlier in Section 204.
Example of a
Detailed Estimate

Figures 205-4 through 205-6 illustrate a portion of a detailed estimate for
the direct costs of installing piping. The format used is that given in
Figure 601-1.

Cost Estimating Manual
Page 205-8

April 1995

Detailed and Semi-Detailed Methods

Source of the Data

The source of the data is the piping section of the offplot tankfield portion
of a control (Class 4) estimate. The estimate was prepared in late 1992 by
the construction contractor for the Pascagoula Aromax project. The
figures on the following pages present this data.
Figure 205-4 gives information on eight-inch piping from the contractor’s
estimate (12/92).

Material
A/C

Labor

Subcontracts

Description
Unit
Cost

Cost

Unit
Mhs

Manhours

1,008

13.15

13,255

1.74

628

39.12

24,567

1.81

8-inch 150 Lb Ball Valve

6

3187.00

19,122

8-inch 150 Lb Check Valve

3

847.67

2,543

10

987.00

9,870

4

1833.90

7,336

Quantity

Total

Rate

Cost

1,754

11.76

20,627

33,882

1,137

11.76

13,371

37,938

1701 Field-run CS Pipe/fittings
8-inch Pipe, Linear Feet
1704 Shop-fabricated CS Pipe Spools
8-inch Pipe, Linear feet
1709 Valves CS (labor w/pipe)

8-inch 150 Lb Gate Valve
8-inch 150 Lb Gate Valve w/GO

38,871

1772 Tie-ins (mat’l w/pipe)
34

35.00

1,190

11.76

13,994

13,994

1

6.50

7

11.76

82

82

8-inch, Each (Subcontract Cost
@ $36)

9

0.50

5

11.76

59

1781 Hangers/supports - Fabricate &
Erect, Lump Sum

1

593

11.76

6,974

1798 Takeoff Allowance at 5 Percent

82

8-inch, Each
1773 Hot Taps (mat’l w/pipe)
8-inch, Each
1773 X-rays

1700 Total Direct Cost

3,835
80,528

234

324

383
6,974

2,755

16

6,606

57,862

340

138,730

Figure 205-4. Example of Detailed Estimate from a Construction Contractor

Cost Estimating Manual
April 1995

Page 205-9

205

Detailed Estimates

Figure 205-5 gives the same eight-inch piping, using Richardson Process
Plant Construction Estimating Standards, 1993 edition.

Material
A/C

Description

Labor
Manhours

Total

Cost

1,008

15.65

15,775

0.109

110

11.82

1,300

17,075

30

76.65

2,300

7.20

216

11.82

2,553

4,853

6

105.00

630

10.80

65

11.82

768

1,398

10

60.90

609

3.60

36

11.82

426

1,035

3

2082.00

6,246

3.00

9

11.82

106

6,352

14

2118.00

29,652

3.00

42

11.82

496

30,148

6

2102.00

12,612

Quantity

Unit
Mhs

Subcontracts

Unit
Cost

Rate

Cost

15-43 Field-run CS Pipe/fittings
8-inch Pipe, Linear Feet
8-inch Ells, Long Radius, Each
8-inch Tees, Each
8-inch Weld Neck Flanges, Ea
8-inch 150 Lb Check Valve
8-inch 150 Lb Gate Valve
8-inch 150 Lb Ball Valve
8-inch Field Erection Buttwelds, Ea

113

3.45

21

11.82

248

12,860

7.80

881

11.82

10,413

10,413

0.456

286

11.82

3,381

15-44 Shop Fabricated CS Pipe Spools
8-inch Pipe, Linear Feet
8-inch Ells, Long Radius, Each

628

15.65

9,828

65

195.75

12,724

13,209
12,724

4

145.45

582

582

8-inch Tees, Each

15

277.57

4,164

4,164

8-inch Weld Neck Flanges, Ea

40

120.40

4,816

4,816

50

21.21

1,061

8-inch Conc Reducers, Each

15-72 Bolts And Gaskets
8-inch 150 Lb Spiral Wound, Sets

2.00

100

11.82

1,182

2,243

15-74 Hot Taps
8-inch, Subcontract, Each

1

Mobilization, 60 Miles

575

575

75

75

351

351

15-75 X-ray of Buttwelds
8-inch, Subcontract, Each

9

15-76 Hangers/Supports - Fabricate +
Erect, Lump Sum Allowance

1

800

400

11.82

4728

82

5,090

108

11.82

1277

341

11.82

5,528

Takeoff Allowance
At 5 Percent
1-0

50

6,417

1,051

138,849

Productivity Adjustment for
Labor Not From Contractors
Regular Forces at 15%
106,889

Total Direct Cost

4031
30,909

4,031

Figure 205-5. Example of Detailed Estimate using Richardson

Cost Estimating Manual
Page 205-10

April 1995

Detailed and Semi-Detailed Methods

Figure 205-6 gives the same eight-inch piping, using a PC program,
Questimate (see Section 206). This figure uses First Quarter 1993 pricing.

Material
A/C

Description
Quantity

306

Total

Rate

Cost

1

171

171

12.00

2,052

2,052

1

126

12.00

1,512

1,512

30

39.80

1,194

1,194

1,008

10.04

10,120

10,120

Tee, 8-inch, Std Wt, Each

6

59.52

357

357

Block Valve, 8-inch 150 Lb, Each

1 1,560.00

1,560

1,560

Pipe, 8-inch Std, Feet

Flange, 8-inch 150 Lb, Each
Nipple, 8-inch, Each
312

CS Field Shop Fabrication

313

CS Remote Shop Mat’l

Pipe & Fittings, Feet

16

35.56

569

569

1

20.00

20

20

510

1.41

719

12.00

8,628

8,628

65

39.80

2,587

2,587

628

10.04

6,305

6,305

4

19.75

79

79

Tee, 8-inch, Std Wt, Each

15

59.52

893

893

Flange, 8-inch, Std Wt, Each

34

35.55

1,209

1,209

23,091

0.80

18,473

18,473

Elbow, 8-inch, Std Wt, Each
Pipe, 8-inch Std, Feet
Reducer, 8-inch, Std Wt, Each

314

CS Remote Shop Fabrication

315

CS Valves, Flanged

Pipe, 8-inch Std, Lbs
Ball Valve, 8-inch 150 Lb, Each

6 1,559.67

9,358

9,358

Check Valve, 8-inch 150 Lb, Each

3

862.00

2,586

2,586

13

840.00

10,920

10,920

Gate Valve, 8-inch 150 Lb, Each
CS Pipe Erection

1

69.20

69

12.00

828

828

Bolt up Connections, Each

47

4.20

197

12.00

2,364

2,364

Erect Shop Fab Pipe, Feet

1,138

1.14

1297

12.00

15,564

15,564

498

0.67

334

12.00

4,008

4,008

22

5.60

123

12.00

1,476

1,476

120

7.30

876

12.00

10,512

10,512

6.35

527

12.00

6,324

11,324

Hot Tap, Each

Erect Straight Run Pipe, Feet
Erect Valve, Each
Welding, Each
366

Subcontracts

CS Field Mat’l
Elbow, 8-inch, Std Wt, Each

317

Cost

Manhours

Prefab Pipe Rework
Repair & Adj Prefab Pipe, Each

311

Labor
Unit
Mhs

Piping System Testing
Pipe Testing, Each

307

Unit
Cost

Pipe Hangers, Shoes, Etc.
Erect Prefab Pipe Supp., Each

83

60.24

5,000
3,562

Freight on Material, at 5%

3,562

Takeoff Allowance
(Outside Questimate), At 5%

82

3,740
78,532

Total Direct Cost

222

12.00

2,664

6,404

55,932

134,464

Figure 205-6. Example of Detailed Estimate using Questimate

Cost Estimating Manual
April 1995

Page 205-11

205

Detailed Estimates

When comparing estimates, note the following:
The sequence of items in each estimate follows the code of accounts
for each method (chapter sequence, in Richardson).
Figures 205-5 and 205-6 show a fittings count and pricing while
Figure 205-4 has the fitting prices buried in the unit cost for pipe.
For hot tap, Figure 205-4 includes only the labor to make the tap,
places equipment rental in the indirect costs (not shown), and
presumably buries the cost to provide and attach the piping stub and
valve in the piping material and labor costs. Figure 205-5 shows the
subcontract cost for making the hot tap, but again assumes that the
material and labor for the stub are elsewhere. Figure 205-6 has all the
material and labor costs, but not the equipment rental.
There is considerable variation in the unit pricing of material and unit
labor hours for individual items, although the bottom line cost is
similar. Figure 205-4 does not show the number of fittings. We
selected quantities for Figures 205-5 and 205-6 to make the grand
totals similar.
Example of a SemiDetailed Estimate

Figure 205-7 shows a semi-detailed estimate for the same eight-inch
piping. We took off the total quantity of eight-inch pipe and added a
generous quantity takeoff allowance.

Material
A/C

Description
Quantity

Unit
Cost

5.19

Labor
Cost

Unit
Mhs

Manhours

71,622

0.17

2,346

Rate

Subcontracts

Total

Cost

Piping take off from plot plan
8-inch piping, feet
Takeoff allowance at 15%
Total length

1,500
225
1,725

Diameter-inch-feet

13,800

Data1 from Section 411

13,800

Index to 1Q93 2
Total Direct Cost
1

EDMI = 850, with current labor rate

2

Section 301 (incremental cost)

12.00

28,152

2,090
73,712

99,774
2,090

28,152

101,864

Figure 205-7. Example of the Semi-Detailed Estimate Based on the Detailed Example

Cost Estimating Manual
Page 205-12

April 1995

Detailed and Semi-Detailed Methods

For this illustration, we
assumed that the quantity takeoff from a plot plan is 1500 feet
added a 15 percent takeoff allowance
obtained a total of 1725 feet (similar to Figures 205-4 through 205-6
with their five percent quantity takeoff allowances)
converted the total to diameter-inch-feet by multiplying by the
diameter of the pipe
estimated material costs and labor hours using factors for offplot
piping (see Section 411) and adjusted them using cost indexes (see
Section 301) to the first quarter of 1993
Summary

The total cost in Figure 205-7 is significantly lower than in Figures 205-4
to 205-6 because that estimate allows for fewer valves.
The data in Section 411 is based on a project with 0.2 large-bore valves
per 100 feet of pipe, which translates to 3–4 valves for the quantity of
pipe in Figure 205-7. Figures 205-4 through 205-6 each show 23 valves.
Therefore, based on the valve prices in Figures 205-4 to 205-6, the
additional 19–20 valves easily account for the bottom-line differential of
$33,000–37,000.

Cost Estimating Manual
April 1995

Page 205-13

December 1996

206
Electronic Estimating: Questimate

f the many software packages available for estimating, Questimate is the most
commonly used at Chevron. A Windows software application for IBMcompatible personal computers, Questimate is available to Chevron domestic and
Canadian subsidiaries for an annual licensing fee, with no capital payment.

O

Contact Icarus Corporation, Rockville, MD at (301) 881-9350 or CRTC Facilities
Engineering Unit for details.
Chevron-Specific Users’ Guide
At the suggestion of a refinery engineering supervisor, we have
supplemented the Questimate user’s manual with a Chevron-specific
guide to help you establish default values for Chevron projects.
The Chevron-specific guide explains the basic program menu selections
and default values. It also suggests choices for customizing Questimate
for a Chevron location, based on Chevron technical (gray) manuals and
on project design practice, which you should adapt to local preferences
and experiences.
The guide (Figure 206-1) includes the various menus, the Questimate
default values, and typical standard entries for Chevron users. Menu
formats and default values are based on Questimate version 11.0A (June
1996). The guide also cross-references sections in the Chevron technical
manuals.
Calibrating the
Program

To help calibrate the program, we will
check Questimate’s pricing of materials against Chevron’s actual
purchasing experience as data becomes available
publish the results in this section in a future revision to this manual

Cost Estimating Manual
December 1996

Page 206-1

206

Electronic Estimating: Questimate

Menu Description
Menu Sequence: File/New—Allows you to create a new project with specifications for your site. The specifications can become the
standard basis for each new estimate.This menu asks for data. You may select a design basis, choosing between new and standard
bases. (The Help button explains these choices.)
Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Design Basis/Equipment Specs
Vessel design code

ASME

Default.

-Maximum diameter

14.5 feet

OK for normal shipping. Consider changing if barge shipment to
your site is possible.

-Maximum length

100 feet

OK for normal shipping. Consider changing if barge shipment to
your site is possible.

-Maximum weight

250 tons

OK unless you want to force shop fabrication.

-Pipe/plate fab. dia.

30 inches

Default.

-Diameter type

OD

Use ID. That’s the way process engineers size equipment.

-Weld efficiency

85%

Default. You may want to use 100% for a heavy wall vessel to
reduce costs but you can specify that at the component level.

Shop fab equipment

-Design deflection

0.5%

Default (Pressure Vessel Manual, S 444).

-Stress relief

Code

Default.

Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Design Basis/Piping Specs - General
Pipe fabrication

Remote

Default = normal amount of remote shop fabrication. Field = no
shop fabrication (such as for minor plant modifications).

Min dia - remote shop

2.5 inches

Default. Any pipe 2" and smaller will be field-run.

Max dia - remote shop

48 inches

Default. Any pipe over 48" will be field run.

Heat trace fluid

Steam

Default. Steam = steam traps. Other = no steam traps.

Tracing tube material

Copper

Default for steam to 175 psig, stainless steel above that (Piping
Manual, S. 235, and Utilities Manual, S. 832).

Min sched CS pipe

Standard

Default.

Min sched other pipe

Schedule 10

Default.

Weld x-ray

20 %

The default value may fairly represent an average of the
requirements in the Piping Manual, S. 622.

Stress relief

Code

Default. Change to “yes” at the Component level if desired. See
Piping Manual, S. 623.

Flange type

Weld neck

Default (Piping Manual, S. 254).

Other testing

0 % MH

Default.

Clean/polish

0 % MH

Default.

Insulation type

Calcium silicate

Default.

Insulation jacket type

Aluminum

Default.

- No. prime coats - CS

1 primer coat

Default.

- No. final coats - CS

2 coats if uninsulated

Default.

- Final coats - other

None

Default.

Paint

Figure 206-1.Guide to Questimate (Version 11.0A, June ’96) for Chevron Users

Cost Estimating Manual
Page 206-2

December 1996

Chevron-Specific Users’ Guide

Menu Description
Menu Sequence: Basis/Design Basis/Piping Specs - Material — Allows you to preset various requirements for a particular material you
may specify later under a Component. Consider Piping Specs - Custom (below) instead of this form.
Menu Sequence: Basis/Design Basis/Piping Specs - Custom — Allows you to set up standard pipe specs, such as those in Chevron’s
Piping Manual or ones specific to a particular location. Saves time (and helps you avoid mistakes) when entering piping specs under
Components. Follow the appropriate pipe spec when filling out this form.
Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Design Basis/Civil-Steel Specs
Wind velocity

100 MPH

Default is Gulf Coast. See the Civil & Structural Manual, S. 112, for
the values for Chevron’s domestic locations.

Seismic data:
- Acceleration

none

Use the UBC Zone specification, below.

-UBC zone

none

See the Civil & Structural Manual, S. 113.

Soil loading

6000 PSF

Equivalent to dry sand. Adjust to your local conditions.

Footing depth

48 inches

An issue only in freezing climates. According to Civil & Structural
Manual, S. 233, the bottom of shallow (unpiled) foundations should
be below the frost line. Use local data on the latter.

Ready mix cost

$54.20 / CY (1Q96 value,
changed each year)

Adjust to local conditions. A general reference for various US and
Canadian locations is ENR magazine, which updates these prices
once a month.

Steel finish type

Painted

Alternative is galvanized. Use local preference.

Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Design Basis/Instrumentation Specs
Instrumentation type

Electronic

Use default. The alternative is pneumatic, if you’re modifying an
older facility.

- Instrument to JB

Wire in conduit (WC).

Use default.

- Thermocouple to JB

Wire in conduit (WC).

Use default.

- Thermocouple type

JX

KX (chromel alumel) is common in newer plants (Instrumentation
& Controls Manual, S. 615).

Thermocouple extension:

Control valve type

Standard

Default. Modify at Component level for specific installations.

Temperature element

Filled system

Thermocouple.

Flow element type

Orifice plate

Default.

Transmitter type

Standard

Microprocessor (M) for DCS installations, standard (S) for
electronic systems without DCS or for pneumatic systems.

Distance - item to JB

50 feet

Default.

Connection length

Provide extra lengths for hookup. Use default, assuming takeoff quantities exclude this extra length.

Air regulators

Included

Default.

Control system type

Analog

Analog generates panel instruments, digital does not. Choose
accordingly.

Figure 206-1.Guide to Questimate (Version 11.0A, June ’96) for Chevron Users (continued)

Cost Estimating Manual
December 1996

Page 206-3

206

Electronic Estimating: Questimate

Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Design Basis/Electrical Specs
Class and division

Class I, Division 2

Most common for process plants.

Power cabling:
- Distribution system

3 wire

Default.

- Cable type

Single core wires in conduit

Default (W-C) unless local preference is multi-core cable in tray (MTR).

- Cable placement

Above ground

Alternative is buried. Local option.

- Burial protection

Concrete envelope

Default.

- No. of conductors

4

3 (Electrical Manual, S. 432).

- Minimum wire size

14 AWG

Use default (Electrical Manual, S. 1143).

Conduit type

Rigid galvanized steel

Default. Can use PVC conduit in concrete-encased underground
duct banks (Electrical Manual, S. 1021-1022).

Connection length

Provide extra lengths for hookup

Use default, assuming takeoff quantities exclude this extra length.

Control cabling:

Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Design Basis/Insulation Specs
Insulation schedule

Medium-avg. low ambient temp
over 20°F

Adjust for local conditions.

Minimum temperature

150°F

140°F, for personnel protection (Insulation & Refractory Manual,
S. 111).

Equipment insulation:
- Insulation type

Calcium silicate

Default.

- Insul. jacket type

Aluminum

Default.

- Rating

No fireproofing

3 hours (Fire Protection Manual, S. 1722).

- Type

Magnesium oxychloride

Concrete.

- Rating

No fireproofing

3 hours (Fire Protection Manual, S. 1722).

- Type

Magnesium oxychloride

Concrete.

- Coverage option

First level columns only

To 30’ or to air cooler substructure, whichever is higher (Fire
Protection Manual, S. 1711). Select either All or Columns/beams
thru Second Level.

Equipment fireproofing:

Steel fireproofing:

Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Design Basis/Paint Specs
No. of primer coats:
- Carbon steel equip.

none

Default, assuming shop-fabricated equipment comes shop-primed.

- Structural steel

none

Default. If not galvanized, fabricated steel is assumed to be shopprimed.

- Carbon steel equip.

2 coats, if uninsulated

Default.

- Other equipment

none

Default.

- Structural steel

2 coats, if not galvanized

Default.

No. of finish coats:

Figure 206-1.Guide to Questimate (Version 11.0A, June ’96) for Chevron Users (continued)

Cost Estimating Manual
Page 206-4

December 1996

Chevron-Specific Users’ Guide

Menu Description/Item

Questimate’s Default Value

Chevron’s Typical Standard Basis

Menu Sequence: Basis/Project Rates & Costs
Wages/productivity:
- Mechanical rate

$37 per manhour (1Q96 value
changed each year)

All-in rate, including indirects, for Gulf Coast. Adjust for local
conditions. If you use a bare rate, enter indirects in Indirects menu.

- Mechanical productivity

100%

A lower value increases the manhours. Suggestion: Make this
adjustment by commodity instead in the Manhour Indexing menu.

- Non-mechanical rate

$33 per manhour (1Q96 value,
changed each year)

See comments for mechanical, above.

- Non-mechanical productivity

100%

See comments for mechanical, above.

none

Local decision. Calculated as % of labor cost, not hours, so you
must convert overtime hours to equivalent cost to enter data here.

Overtime:
- % direct field labor
Field supervision:
- Cost (or)

none

- % direct field labor

none

Not needed if using all-in labor rates.

Domestic freight:
- Cost (or)

none

- % of material

none

Suggestion: 5% (Section 304 of this manual)

Taxes and permits:
- Cost (or)

none

- % of material

none

Enter your local sales/use tax rate.

Engineering:
- Cost (or)

none

- % direct field cost

none

Local option. Note that calculation uses direct labor and material
costs only. Construction indirects are not included in direct field
cost unless they are buried in an all-in craft labor rate.

Construction overhead & fee:
- Cost (or)

none

- % construction cost

none

Not needed if using all-in labor rates.

none
none

Use zero, and calculate contingency outside the program, based
on an evaluation of project risks. If you then want to include
contingency in the estimate to get a complete report, enter it in
dollar or percentage terms and re-run the estimate.

Contingency:
- Cost (or)
- % of total

Menu Description
Menu Sequence: Basis/Account Definition
Menu Sequence: Basis/Account Allocation

Allow you to convert the Questimate code of accounts to your own.
Probably unnecessary for Chevron users as the Questimate code
of accounts is not difficult to use.
Menu Description

Menu Sequence: Basis/Material Indexing —Allows you to adjust all or a portion of the Questimate-generated materials pricing, using
percentage factors (e.g., a factor of 105 will increase the pricing by 5%).
This is an easy way to adjust prior to Questimate’s annual pricing update. If your copy is a year old, and materials prices have
increased an average of 3 percent, adjust with a single entry covering all accounts, 100-999, and an index of 103. Use EDMI (see
Section 301 in this manual), or any other index you choose, for estimating materials cost changes.
Also, you can use this menu to bury tax and freight in your materials estimates to avoid entering those items separately. This menu
offers the advantage of spreading these costs throughout the estimate rather than showing them as one-line entries, if that’s your
preference. Just use an index that combines the two (along with any escalation).

Figure 206-1.Guide to Questimate (Version 11.0A, June ’96) for Chevron Users (continued)

Cost Estimating Manual
December 1996

Page 206-5

206

Electronic Estimating: Questimate

Menu Description
Menu Sequence: Basis/Manhour Indexing—Allows you to adjust the Questimate-calculated craft labor manhours to recognize
variations in productivity by craft or due to shutdown work, congestion, extensive overtime, etc.
Questimate allows for different adjustments for different types of work; therefore, this menu is preferred over the Project Rates & Costs
menu, which allows you to make that adjustment globally for mechanical and non-mechanical crafts. Values greater than 100 will
increase the number of manhours (e.g., a value of 150 will increase the Questimate manhours by 50 percent). The following suggested
adjustments are based on a recent calibration of Questimate.
Commodity

Account Range

Equipment

100-299

Piping

300-399

Account Index
130
125
115

Civil

400-499

Steel

500-599

115

Instrumentation

600-699

100

Electrical

700-799

115

Insulation

800-899

115

Paint

900-999

95
Menu Description

Menu Sequence: Basis/Indirects
Default values = Zero for all items in this menu. For all-in labor rates (in the Project Rates & Costs menu), ignore all or most of these
items. They are more useful for contractors than owners.
The principal exception might be the need for a major piece of construction equipment, such as a crane, not covered in an all-in labor
rate. Estimate it separately and enter it under Equipment Rental as a Cost. Another exception is vendor reps who are also outside an
all-in labor rate.
Menu Description
Menu Sequence: Basis/Project Basis — Allows you to change the project title, etc. Probably not needed very often, unless you are
revising an estimate and want to note that in the title or by changing the job number.

Figure 206-1. Guide to Questimate (Version 11.0A, June ’96) for Chevron Users (continued)

Cost Estimating Manual
Page 206-6

December 1996

210

Primary Methods—
Offplot Facilities

211

Estimating Offplot Facilities

212

Offplot Estimating Checklists

Cost Estimating Manual
April 1995

Page -1

211
Estimating Offplot Facilities
his section covers the different ways to estimate offplot facilities. It also includes
information about investment percentage correlations for refinery offplot
facilities. You may find the latter information useful for:
making early Class 1 estimates when there is insufficient time
to size the offplot plants1
checking estimates made by other methods
Before you begin this chapter, be certain that you have read or are familiar with the
methods of cost estimating for process plants described in Chapter 200.

T

Methods for Estimating Offplot Facilities
Overview

1

For estimating purposes, we separate offplot facilities into two groups:
Group A includes plants (such as offplot pipeways) that are spread
out, where it is relatively easy to develop takeoffs of minor materials.
Group B includes plants (such as water-treating facilities) that are
within a specific plot area, similar to process plants. For Group B
plants, it is difficult to develop takeoffs of minor materials (usually
estimated by factor or ratio methods).
You can estimate Group A facilities in several ways, depending on the
class of estimate:
Class 1: curve method using offplot data (Section 202)
Class 1: percent of onplot (this section)
Class 2-3: semi-detailed (Section 205)
Class 3 or later: detailed (Section 205)
For detailed and semi-detailed estimates, use the checklists in Section 212
to ensure you have identified all items of the scope.
You should estimate Group B facilities in the same way as process plants,
following the methods in Chapter 200. For this group, you can check
estimates or prepare rough Class 1 estimates with the percentage data in
this section.

You can make better Class 1 estimates by sizing the facilities and using the cost-versus-capacity relationships in Section
202 for offplot categories such as tankfields, for which cost percentages vary widely between projects, even though the data
shown here is used to estimate the other offplot categories.
Cost Estimating Manual

April 1995

Page 211 -1

211

Estimating Offplot Facilities

Information Needed

For Group A plants, plot plans and system sketches are the main elements
in a scope definition.
Plot Plans

For a Class 3 or higher estimate of offplot facilities, you need a plot plan
that shows the location of the project’s offplot and onplot facilities,
including interconnecting pipeways. This plot plan forms the basis for
preparing offplot scoping drawings such as these:
Interconnecting piping routing diagrams
Electrical and instrument routing diagrams
Sewer routing drawings
System sketches
Scoping drawings are the basis for estimating the offplot facilities.
System Sketches

System sketches provide information for tie-in points to existing headers,
a tie-in shutdown plan, and the cost estimate.
You need semi-geographic system sketches that define each system’s
requirement and clearly indicate limits of design responsibility (plant
limits) for the offplot facilities. Include the following:
Major instrumentation
Location of tie-ins
General location of offplot equipment
Design flow rates
For a complicated system, you may need two sketches—one for routing
and location and one for flow and control.

Cost Estimating Manual
Page 211 -2

April 1995

Methods for Estimating Offplot Facilities

Facilities Groups



1

Group A facilities include:1
Site development
Storage and blending
Product distribution
Interconnecting piping
Control systems
Electrical distribution
Cooling water facilities
Relief facilities
Group B facilities include:
Raw water supply
Water treating facilities
Drinking water system
Utility water system
Fire water system
Boiler feed water system
Boilers
Fuel oil system
Fuel gas system
Nitrogen system
Inert gas system
Chemical distribution system
Central lube oil system
Utility air system
Instrument air system
Breathing air system
Sanitary sewage facilities
Effluent treating facilities
General purpose buildings (not plant-related)
If the facilities have distribution or collection systems, we usually include the cost of
these systems in the interconnecting piping plant (offplot pipeways) or site development
plant (sewers).
Many Group B facilities are located in boiler or utility plants. We estimate them by the
factor method to obtain the cost of the whole plant.

Some of these plants will have no major materials (equipment) and may have only a few minor material (bulk) categories.
Cost Estimating Manual

April 1995

Page 211 -3

211

Estimating Offplot Facilities

If you have cost data from similar facilities, you may use the ratio method for process
plants (Section 204).
For modifying or adding to an existing plant, make changes appropriate to the existing
facilities. You may need to make detailed takeoffs.

Percentages

Norm*

Offplot investments in Figures 211-1 and 211-2 are expressed as percentages of new onplot investments (i.e., onplot cost excluding the cost of
modifications to existing process plants). Although the cost of modifying
existing process plants averaged about 10 percent of the cost of new
process plants for the nine projects shown in Figure 211-1, the
modifications required little offplot investment.

Normal Range
Min Max

Extremes Observed
Min
Max

4.0

1.8

8.1

1.0

12.3

Electrical Distribution

3.6

2.4

4.4

1.7

9.6

Cooling Tower

1.7

1.0

2.4

0.6

3.6

Relief System

2.1

1.4

3.9

1.2

5.2

Effluent Treating

1.2

0.2

3.2

0

4.5

Boiler Plant (ex boilers)

2.5

0.8

5.0

0.5

5.5

Boilers

0

0

0

0

2.5

Buildings & Equipment

1.8

1.2

2.6

0.7

5.5

S/T Utilities & Misc.

16.9

Interconnecting Pipeways

8.2

5.6

10.8

4.9

12.7

Tankfields (ex blending)

15.3

6.1

28.5

1.3

46.5

Blending Facilities

1.9

1.1

2.4

0

2.7

6.9

S/T Tanks & Lines

25.4
24.5

Loading Racks

0.1

0

0.6

0

Coke Handling

0

0

0

0

6.5

Marine Facilities

3.0

0.1

10.9

0

13.0

S/T Shipping & Receiving
TOTAL OFFPLOT

3.1
45.4

CAUTION!
Do not use these percentages without
carefully considering the variables mentioned
in Figure 211-4.

Figure 211 -1. Offplot Cost Rangers (Percent of New Onplot Cost) for Refinery Expansion Projects

Cost Estimating Manual
Page 211 -4

April 1995

Methods for Estimating Offplot Facilities

PROJECT
New Onplot Investment
(EDPI=1100) $M

ESMOD
444

PEP
233

PAM
112

PARM

RLSFO

ELSFO

217

343

364

BMEP
56

PRCP

RLOP

1068

424

Offplot as percent of New Onplot1
Site Development

1.8

4.0

8.1

4.9

4.8

1.0

12.3

2.9

1.8

Electrical Distribution

1.8

1.7

4.1

4.0

4.4

2.4

9.1

3.3

9.7

Cooling Tower

2.1

3.6

0.6

1.3

1.0

1.2

1.8

2.4

2.6

Relief System

1.2

1.2

1.8

5.1

1.7

1.7

5.2

1.4

3.9

Effluent Treating

0.2

3.2

0.2

0.5



0.3

4.5

2.5



Boiler Plant

1.3

2.5

0.5

5.9

5.0

8.0

0.8

4.6

0.8

Buildings and Equipment

0.7

2.0

1.4

1.6

1.6

1.9

5.5

2.6

1.2

Subtotal Utilities & Misc.

9.1

18.2

16.7

23.3

18.5

16.5

39.2

19.7

20.0

Interconnecting Pipeways

4.9

—2

12.7

10.8

10.5

5.9

—2

—2

5.7

Tankfields (ex Blending)

1.3

19.2

46.5

25.0

18.1

8.4

38.3

22.8

6.1

Product Blending Facilities

2.7

—2

1.8

2.3

2.4

1.1

0.7

—2



Subtotal Tanks & Lines

8.9

19.2

61.0

38.1

31.0

15.4

39.0

22.8

11.8

Loading Racks









0.6



6.9





Coke Handling

1.9













6.8



Marine Facilities



3.1

10.9

13.0

0.4



0.1

2.8

0.8

Subtotal Shipping & Receiving

1.9

3.1

10.9

13.0

1.0



7.0

9.6

0.8

40.5

88.6

74.4

50.5

31.9

85.2

52.1

32.6

TOTAL OFFPLOT

3

19.9

4

5

Other Costs as percent of New Onplot
Onplot Modifications

0.1

3.6

19.9

18.2

4.0



3.9

11.0

25.8

Remote Terminals





0.2

4.8









1.6

Land













1.5

1.8



Rail Cars and Tote Bins















0.3



These Chevron projects, built from 1969-1983, were major expansions or modernizations of refineries, including multiple new
process plants.
ESMOD=El Segundo Modernization (1969)

ELSFO=El Segundo Low Sulfur Fuel Oil (1975)

PEP=Pascagoula Expansion Project (1970)

BMEP=Burnaby Modernization & Expansion Project (1975)

PAM=Pascagoula Arabian Modification (1974)

PRCP=Pascagoula Resid Conversion Project (1982)

PARM=Perth Amboy Refinery Modernization (1975)

RLOP=Richmond Lube Oil Project (1983)

RLSFO=Richmond Low Sulfur Fuel Oil (1975)
1
2
3
4
5

Definitions of offplot categories generally vary slightly from project to project. Although we have made adjustments where
possible to maintain consistent offplot categories, be cautious when using these percentages.
The percentages for pipeways and blending are included in tankfields for projects where we could not separate the costs.
Low ESMOD percentage due to good soil, a compact layout, no effluent treating, and few added tanks.
High PAM percentage due to including costs for two appropriations for tankage unrelated to the main project.
High BMEP percentage due to hilly site with unstable soil, converting refinery power supply from medium to high voltage,
including effluent treatment project for entire refinery, and providing tankage flexibility to receive synthetic crude or field
condensate and to maximize diesel or gasoline product.

Figure 211-2. Offplot Investments as Percentages of New Onplot Investments

Cost Estimating Manual
April 1995

Page 211 -5

211

Estimating Offplot Facilities

Extreme Values

Figure 211-1 gives the extreme values observed for each offplot category
on nine Chevron projects. The range of values excluding the extreme
values is shown as the normal range, and the average of values in the
normal range is shown as the norm. These ranges are also shown as a bar
chart, so you can see quickly where to concentrate your efforts to produce
the most accurate estimate in a limited amount of time.
Normal values

The norm for each offplot category, along with a description of the
category, is shown in Figure 211-4.
Grass Roots &
Smaller Projects

Figure 211-3 shows Chevron experiences with total offplot as a percentage of onplot for grass-roots projects and for those with only a few new
process units.

Project
(Date)

Onplot
Value
$M

Offplot excluding

Offplot
including

Marine Facilities, Pipelines & Terminals
Grass-Roots Projects
Irving Refinery (1959)

106

82

100

Hawaiian Refinery (1960)

148

110

138

Pascagoula Refinery (1963)

233

103

134

98

158

229

Feluy Refinery (1971)

155

169

300

Carter Creek Gas Plant (1982)

247

106

139

Bahamas Refinery (1970)

Corporation Reformer Program (1971)

Onplot Facilities

Pascagoula

46

NHT, Rheniformer, H2 Export Comp.

13

El Paso

40

NHT, Rheniformer, Gasoline Splitter

19

El Segundo

14

NHT, Feed Splitter

26

Richmond

27

Rheniformer

32

Sulfur Recovery Projects
El Segundo (1972)

41

40

Richmond (1974)

29

39

Perth Amboy (1979)

61

22

Project values are adjusted to 1991 (EDPI = 1100).
Figure 211-3. Chevron Experience with Total Offplot as a Percentage of Onplot for Grass-Roots and
Smaller Projects

Cost Estimating Manual
Page 211 -6

April 1995

Methods for Estimating Offplot Facilities

Offplot Category — Description

Norm %

Comments

Site Development—Rough grading, filling, roads,
paving, bridges, simple railroad spurs, fencing &
minor landscaping.

4.0

Obtain a better correlation with 1 percent of new onplot plus 10 percent
of tankfields, pipeways & blending (due to relative costs of those plants
per acre of required site development). Also, location affects cost of site
development (e.g., El Segundo less expensive, Burnaby much more
than norm.)

Electrical Distribution—Medium voltage wiring and
switches, emergency power systems &
communications. No transformers or motor control
centers. Assumes power company provides the
high-to-medium voltage substation; plant substations included in individual plant costs.

3.6

Projects required to pay for new high-voltage facilities have significantly
higher percentages (e.g., BMEP & RLOP, each about 9 percent).

Cooling Tower—Tower and basin, with circulating
pumps, main supply, and return headers serving
multiple plants; minimal water treatment.

1.7

Relief System—Free-standing elevated flare with
molecular seal, knockout drum & pump, ground
flare with water seals, vent gas recovery compressor, and main offplot flare header.

2.1

Projects with more than two new flares have significantly higher
percentages (e.g., PARM and RLOP). Relatively fixed costs of flare
facilities means a higher percentage for smaller projects (such as
BMEP). Low percentages due to part of cost of relief header being
included with interconnecting pipeways (such as PRCP).

Effluent Treating—Offplot gathering system for oily
water & storm water. Oily water separator(s) with skim
pump. Air flotation system. Activated sludge or other
BOD reduction system. Excludes tertiary treatment.

1.2

If you must size the added facilities to serve existing plants also, the
percentage will be significantly higher (e.g., BMEP).

Boiler Plant—Oil-fired boiler(s) with BFW treating,
BFW pumps, and deaerator. Also includes fuel
system (day tank, pumps, oil heater) and air
systems (utility & instrument air compressors &
auxiliaries).

2.5

Normally refinery expansion projects do not require adding boilers, but do
require expanding other utility systems in the boiler plant. If your project
needs additional boilers, use 2.5 percent of onplot plus the cost of
boilers and their related boiler-plant utilities from the equation in Section
202.

Buildings and Equipment—All offplot buildings
except coke storage and electrical equipment
buildings. Includes control houses but no
instrumentation. Also includes building furnishings,
maintenance equipment & mobile equipment .

1.8

Subtotal Utilities & Misc.—Seven categories above

16.9

Interconnecting Pipeways—Pipeways near
process & utility plants. Excludes cooling water &
relief headers & tankfield pipeways.
Tankfields (ex Blending)—Tankage & assoc.
facilities in the diked area, tankfield pipeways &
transfer pumps. Excludes process/utility area
pipeways.

8.2

15.3

Product Blending Facilities—Blending & metering
facilities.

1.9

Subtotal Tanks & Lines—Three categories above

25.4

Subtotal listed on Figure 211-1 because the percentage is relatively
constant for most expansion projects.
The percentage depends on the plant locations and the lengths of
pipeways required to connect them.
Pay close attention here as the percentage ranges from 1 to 47 percent
and depends on types of process plants added, existing refinery storage
situation, and methods of receiving crude and shipping products.
The percentage has ranged from about 1 to 3 percent; RLOP required
none, and the blending facilities for BMEP were canceled.

Loading Racks—Truck & rail loading racks.

0.1

Not usual for most projects, but can be as high as 7 percent.

Coke Handling—Coke crushing, conveying,
storage & shipping facilities.

0.0

These facilities are required only when the project adds delayed coking
capacity, but can be as high as 7 percent.

Marine Facilities—All wharves & their
loading/unloading facilities.

3.0

These facilities are not required for all projects at marine locations, nor
for any projects at inland locations; can be up to 13 percent.

Subtotal Shipping & Receiving Facilities—Three
categories above

3.1

This percentage depends on types of products, methods of receiving
crude and shipping products, and ease of expanding existing facilities.

Total Offplot

45.4

Figure 211 -4. Norm for Each Offplot Category and Category Descriptions

Cost Estimating Manual
April 1995

Page 211 -7

212
Offplot Estimating Checklists
his section includes several checklists for typical offplot facilities (Group A in
Section 211). Keep in mind that these lists are not all-inclusive but provide a
starting point for scope discussions with clients.

T

Checklists for Typical Offplot Facilities
Site Development (Figure 212-1)
Storage and Blending (Figure 212-2)
Product Distribution (Figure 212-3)
Interconnecting Piping (Figure 212-4)
Control Systems (Figure 212-5)
Electrical Distribution (Figure 212-6)
Cooling Water Facilities (Figure 212-7)
Relief Facilities (Figure 212-8)

Checking the Estimate
Refer to Sections 202 for cost correlations for Class 1 estimates and for
checking estimates made by other methods.
As these cost correlations are based on the West Coast, you need to adjust
them to the project’s location. Also refer to Section 211 for an additional
Class 1 method and for checking estimates made by other methods.
Investigate significant variations between estimates to determine the
reasons for the differences.

Cost Estimating Manual
April 1995

Page 212-1

212

Offplot Estimating Checklists



Items to Consider1
Site Survey

Specific Notes

Include these costs in Technical Services (Sections 511 and
512). Note that the site survey and soils report usually
determine the piling requirements for a project.

Soils Report
Rough Grading/Fill
Roads
Area Paving/Parking Lot
Bridges
Fencing
Storm Sewers
Process Sewers

Normally include treating and storm-water impounding in
Effluent Treating plant.

Chemical Sewers
Railroad Spurs/Trackage
Landscaping
Soil Stabilization
Temporary Construction
Facilities

In addition to permanent facilities, site development may
include temporary construction facilities such as roads and
railroad spurs, fencing, parking lots, etc. Include these in the
estimate as part of Indirect Field Costs (Section 501).

Disposal of Hazardous
Waste

Include this cost in Special Charges (Section 521).

NOTES: When site-development facilities interface with other onplot or offplot plants, such as
sewer systems and paving, establish match lines at appropriate interface points to define the
basis of the estimate.
1

This list does not include infrastructure items that must be estimated separately. Infrastructure
items are those facilities not located on Company property but required to make the plant site
function—such as electrical service, transmission lines, access roads, rail spurs, pipelines,
and water supply.

Figure 212-1. Checklist for Site Development

Cost Estimating Manual
Page 212-2

April 1995

Checking the Estimate



Items to Consider

Specific Notes

Feed Tankage1
Intermediate Tankage2
Blend Stock Tankage3
Product Tankage4
Recovered Oil Tankage
Fuel Oil Tankage
Chemical Tankage

Establish match lines at appropriate interface points with
other onplot and offplot plants to define the basis of the
estimate.
The tankage volume and number in each service can vary
widely due to operating needs and maintenance
requirements. Sizing of product tankage depends on the
methods of product distribution. See Figure 212-3.
Establish a firm basis for the estimate with the client.

Coke/Bulk Material Storage
Product Blending Systems
Pipeline Termination Facilities
1
2
3
4

Provide 10 days for crude supplied by pipeline. For crude supplied by tanker, provide one
tanker load plus 15 days, or two tanker loads (whichever is larger).
Provide 10 days of feed to downstream process units.
Provide 15 days of blend stocks.
Provide 15 days of product sales.

NOTES: Cost data for tanks is generally based on the nominal capacity of tanks in barrels.
Operating capacity (or working capacity) is the usable volume or the volume available to meet
operating requirements. Operating capacity is generally less for floating roof tanks than cone roof
tanks and varies with safe filling heights, pump suction requirements or minimum allowable floating
roof level, and allowable tank height. Refer to the Tank Manual, S. 420. Determine operating
capacity requirements first and then determine nominal capacity, making appropriate allowances
for tank volume that is not usable.
Include costs for tank field piping, feed and transfer pumps, heaters, refrigeration, mixers,
insulation, walkways, berms, impounding areas, fire fighting systems, purge and vapor recovery
systems, etc., as appropriate.

Figure 212-2. Checklist for Storage and Blending

Cost Estimating Manual
April 1995

Page 212-3

212

Offplot Estimating Checklists



Items to Consider
Product Pipeline Pump Station
Tank Truck Loading Facilities
Tank Car Loading Facilities
Marine Loading Facilities
Marketing Tankage
Product Metering Systems
Meter Provers
Weigh Scales
Bagging Facilities
Vapor Recovery or Relief Systems

NOTES: Establish match lines at appropriate interface points with other offplot
plants to define the basis of the estimate.
Define product shipping rates, frequency of shipping, and method of shipping
in order to size product-distribution facilities.
Figure 212-3. Checklist for Product Distribution

Cost Estimating Manual
Page 212-4

April 1995

Checking the Estimate



Items to Consider

Process Piping
Feed Piping from Storage to Process Units
Interconnecting Piping between Process Units
Product Piping from Process Units to Storage
Process Gas or Hydrogen
Offtest (Recovered Oil) Piping
Waste Streams
Start Up and Shutdown Piping Including Flush Headers
Amine Streams
Sour Gas
Sour Water
Stripped Sour Water
Utility Piping
Steam
Condensate
Boiler Feed Water
Fuel Oil
Fuel Gas
Raw Water Supply
Drinking Water
Utility Water
Process Water
Fire Water
Nitrogen or Inert Gas
Chemicals (acids, caustics, etc.)
Cooling Water
Relief
Lube Oil
Utility Air
Instrument Air
Breathing Air

NOTES: Establish match lines at appropriate interface points with other onplot
and offplot plants to define the estimate basis. The match line must clearly
define which plant includes the valves at plant plot limits.
Use the Onplot & Offplot Connections form, PIM-EF-468 (in the Piping
Manual), to tabulate and account for the piping at each plant plot limit.
In addition to the basic piping requirements, consider the need for expansion
loops, grade level versus elevated pipe supports (which may also carry
electrical conduit or trays), tracing, insulation, painting, and access platforms
or walkways.
Figure 212-4. Checklist for Interconnecting Piping

Cost Estimating Manual
April 1995

Page 212-5

212

Offplot Estimating Checklists



Items to Consider

Control House Requirements
Large Project/Central Control House
Small Project/New Control House
Small Project/Modify Existing Control House
Blast Resistant, if Necessary
Provisions for Expansion
Other Items
Pneumatic Control
Electronic Control
Distributed Control System (DCS)
Distributed Control Interface Buildings
Computer
UPS Systems
Tie-Ins to Existing Systems
Redundancy

NOTES: Establish match lines at appropriate instrument signal interface points
with other onplot and offplot plants to define the basis of the estimate.
Figure 212-5. Checklist for Control Systems



Items to Consider
Substation Locations
Power Distribution Layout
Emergency Power
Direct Burial Cable
Buried Conduit Banks
Above-Ground Conduits
Above-Ground Cable Trays
Cogeneration
Voltage Levels
Communications/Microwave, Phone, Voice Power
Redundancy
Type of Substation Building
Power Supply—Single- or Double-Ended
Tie-Ins to Existing Systems

NOTES: Establish match lines at appropriate interface points with other onplot
and offplot plants and the power-supply source. If a power company is
involved, define the interfaces with their system. Normally this plant includes
the power-supply facilities, the main substation, and the distribution systems
up to the transformer connection at other plants.
Figure 212-6. Checklist for Electrical Distribution

Cost Estimating Manual
Page 212-6

April 1995

Checking the Estimate



Items to Consider

Specific Notes

Tower

Cooling tower costs can vary widely depending on
the design wet bulb for the specific location and the
approach. See Heat Exchanger and Cooling Tower
Manual, S. 2200, for guidelines on selecting design
variables.

Basin

Cooling tower basin costs can vary widely depending
on depth of the basin, requirements for piles, and
requirements for isolating portions of the tower and
basin for maintenance.

Number of Pumps
Types of Drivers
Above-Ground Distribution System Cooling water distribution piping may be included with
Interconnecting Piping (see Figure 212-4).
Buried Distribution System
Water Treatment Facilities
Provisions for Expansion

NOTES: Establish match lines at appropriate interface points with other onplot and offplot plants
to define the basis of the estimate.
Figure 212-7. Checklist for Cooling Water Facilities



Items to Consider

Types of Flares Required
Elevated
Ground
Special Purpose (NH3, H2S, etc.)
Other Items
Relief Flow Metering Systems
Flare Location
Flare Monitoring Devices
K.O. Drum at Flare
Pump Out Facilities
Vapor Recovery Facilities
Pilot, Ignitor, Purge Systems

NOTES: Establish match lines at appropriate interface points with other onplot
and offplot plants to define the basis of the estimate.
Preliminary relief load data will be required to size the relief headers and the
flare.
A portion of the header may be included with Interconnecting Piping (see
Figure 212-4).
Figure 212-8. Checklist for Relief Facilities

Cost Estimating Manual
April 1995

Page 212-7

220

Primary Methods—
Other Facilities

221

Cross-Country Pipelines

222

Submarine Pipelines

223

Buildings

224

Wharves

Cost Estimating Manual
April 1995

Page -1

221
Cross-Country Pipelines
lanning for new cross-country pipelines requires three types of cost estimates:
Pipeline facilities—discussed in this section
Supplemental facilities, such as pump stations, compressor
stations, tankage, communications systems, SCADA or control
systems, metering systems, and pig launchers and
receivers—estimate by following the procedures in Chapter 200
Operating costs—beyond the scope of this manual

P

Estimating a Cross-Country Pipeline
Overview

Information Needed

The Chevron Pipeline Manual contains procedures you can use to define
the scope of the pipeline and estimate its cost.
Review the resources listed in Figure 221-1.

Resources for

In This Manual

Other Sources

Selecting pipeline components,
routing, design capacity, scoping
drawing

Chevron’s Pipeline Manual

Piping materials

Quotes from steel mills

Pipe coating

Chevron’s Pipeline or Coatings
Manuals

Freight & sales tax

Sections 304 and 305

Cost data from previous projects

Section 221

Special charges

Section 521

Escalation

Section 312

Contingency

Section 313

Reviewing total cost

Section 602 and the
Pipe Line Cost
Analyses following the
end of this section

Oil and Gas Journal

Oil and Gas Journal

Figure 221-1. Resources for Estimating Cross-Country Pipelines

Cost Estimating Manual
April 1995

Page 221-1

221

Cross-Country Pipelines

Steps in EstimatingCross-Country
Pipeline


1

To make a pipeline estimate, take the following steps:
Brackets indicate corresponding sections of the Chevron Pipeline Manual.
DEFINE THE SCOPE OF THE PIPELINE

Make a preliminary route selection and prepare a hydraulic profile
diagram. Use the latter and the required capacity to size the line,
determine any required pump or compressor stations, and estimate the
pipe wall thickness for each section.
2

PREPARE THE COST ESTIMATE

Sources of pipeline construction cost data include contractors, the annual
“Pipeline Economics” issue of the Oil & Gas Journal (published each
November), and data from past Chevron projects. Summary data from
several Chevron projects is included at the end of this section. Use
historic data with care—indexing of old pipeline cost data is not as
reliable as indexing process plant costs.
A pipeline estimating worksheet (Figure 221-2) is provided for organizing
and presenting your cost estimate.



The eight pages following Figure 221-2 are cost analyses of Chevron pipe line projects.

Cost Estimating Manual
Page 221-2

April 1995

COST x 1000($)
ITEM DESCRIPTION

MATERIAL

LABOR

TOTAL

GROUP II (DIRECT) COSTS
Clearing & grading
Excavation (trenching) & backfill - Normal
- Rock
- Wetlands
Imported backfill & compaction
Road or river crossing sleeves / casings
Line pipe
Line pipe valves & fittings
Protective coating
Insulation
Cathodic protection
Freight / haul
Communications & control systems
Miscellaneous items
GROUP II TOTAL
GROUP I (INDIRECT) COSTS

,

Technical services (I-A)

,

Company / contractor office engineering
Company field supervision and inspection
Technical services by others
GROUP I-A SUBTOTAL
CONTRACTOR INDIRECT EXPENSES (I-B-1)
Survey, x-ray inspection
Mobilization and demobilization
Other
GROUP I-B-1 SUBTOTAL
Company field charges (I-B-2)
Travel costs and expenses
Other
GROUP I-B-2 SUBTOTAL
GROUP I TOTAL
PIPELINE TOTAL EXCL. SPECIAL CHARGES
SPECIAL CHARGES
Land
Right of way and construction damages
Dutier, special taxes, ocean freight
Other - EIR / EIS
- Permits
- Legal fees
-G&A
SPECIAL CHARGES TOTAL
PIPELINE TOTAL INCL. SPECIAL CHARGES
ESCALATION
CONTINGENCY
GRAND TOTAL
NOTES:

PROJECT:

PREPARED BY:

LOCATION:

DATE:

Figure 221-2. Worksheet for Pipeline Cost Estimates

Cost Estimating Manual
April 1995

Page 221-3

Cost Estimating Manual
Page 221-4

April 1995

Cost Estimating Manual
April 1995

Page 221-5

Cost Estimating Manual
Page 221-6

April 1995

Cost Estimating Manual
April 1995

Page 221-7

Cost Estimating Manual
Page 221-8

April 1995

Cost Estimating Manual
April 1995

Page 221-9

Cost Estimating Manual
Page 221-10

April 1995

Cost Estimating Manual
April 1995

Page 221-11

222
Submarine Pipelines

C

hevron Petroleum Technology Company (CPTC) has developed a guide and PC
program to help you prepare Class 1 and Class 2 estimates for offshore pipelines.

Electronic Estimating for Offshore Pipelines
This section is intended to introduce you to an electronic estimating
program. For more detailed information about it, contact Chevron
Petroleum Technology Company, Production Systems Services, San
Ramon, CA.
Information Needed

This Lotus spreadsheet program is menu driven and requires the
following information:
Description of the project (location)
Description of the pipeline (origin, destination, outside diameter, and
other details)
Water depth
Length of the pipeline
Mobilization/demobilization distance
Optional input fields include the following:
Riser tie-ins—pipeline to platform
Shore crossing types
Subsea lateral tie-ins of pipelines
Number and size of pipelines crossed
Other project costs
Project management, design engineering, and surveys (as a
percentage)
Construction insurance (as a percentage)

Cost Estimating Manual
April 1995

Page 222-1

222

Submarine Pipelines

Applicability


Output

The guide and PC program are
suitable for
Screening field-development studies (lease sales, acquisitions,
conceptual designs, etc.)
Preparing comparative estimates
Developing preliminary costs for OPCO economics
unsuitable for
A pipeline design program
A detailed cost estimating program
Do not use these materials as a sole resource for preparing appropriation request
estimates.

The program’s output consists of the following reports:
Total cost of pipe materials
Total cost of installation
Total estimated cost of pipeline per mile

Cost Estimating Manual
Page 222-2

April 1995

223
Buildings
his section provides information about estimating buildings and cost information
for making Class 1 estimates for buildings, such as these:
Office buildings
Laboratories
Control houses
Utility buildings
Pre-engineered steel buildings
Prefabricated office buildings

T

Estimating Buildings
Overview

Information Needed

Applicability

This section gives unit cost data (dollars per square foot) for various types
of buildings.
You need a conceptual definition of the dimensions of the proposed
building to be able to establish its floor area.
Review the resources listed in Figure 223-1.
The information in this section is
suitable for making Class 1 estimates for buildings comparable to the
ones described.
unsuitable for making Class 2 and higher estimates, or for estimating
buildings different than those described here.
For
Cost Data

Other Sources1

In this Manual
This Section

Marshall Valuation Service by Marshall & Swift
Richardson Process Plant Construction Estimating
Standards, Vol. 2, Acct 5-50 through 5-70

Time Differences

Section 301

Different Location

Section 311

1

CRTC Facilities Engineering Unit library has these publications as well as detailed cost breakdowns for many Chevron buildings.

Figure 223-1. Resources for Estimating Buildings

Cost Estimating Manual
April 1995

Page 223-1

223

Buildings

Steps for Estimating
Buildings
1

The steps for estimating buildings are given below.
CALCULATE THE FLOOR AREA

Calculate the total square footage of the building, using the dimensions of
the building from drawings or plot plans.
2

CALCULATE THE COST PER SQUARE FOOT

Use data for the specific type of building involved, or parts thereof.
Obtain cost data from the sources given in Figure 223-1.
3

MULTIPLY THE TOTAL SQUARE FOOTAGE BY THE COST PER SQUARE FOOT

4

ADD COSTS NOT INCLUDED IN COST PER SQUARE FOOT

Apply additions for indirect or other costs not included in the square
footage costs.
5

ADJUST FOR TIME DIFFERENCES

Use the EDPI Index (Section 301) to adjust historic costs to the present.
6

ADJUST FOR DIFFERENT LOCATION (SECTION 311)

Cost Data and Equations
Office Buildings
(and more)

The costs for office buildings, laboratories, control houses, and utility
buildings are shown in Figure 223-2 and include the following:
All direct material and labor costs
Indirect costs that cover such items as
Architect and consultant fees
CRTC services
Construction supervision
Contract settlements and additional tax
Fees and permits
Legal fees and liability insurance
Miscellaneous office services
Preliminary studies, planning, and appraisals
Testing and inspection

Cost Estimating Manual
Page 223-2

April 1995

Cost Data and Equations

BUILDING TYPE & LOCATION

GROSS
SQ. FT.

TOTAL COST AS
BUILT

ADJUSTED
COST PER
SQ. FT.1

555 Market St. (1964)

333,367

$13,780,000

$229.65

575 Market St. (1974)

573,484

$37,724,552

$208.20

388,000

$44,151,042

$163.43

225,009

$53,804,246

$321.75

Office Buildings
San Francisco High Rise - San Francisco, CA

Concord Accounting Center - Concord, CA
Building III (1981)
Chevron Park Phase I - San Ramon, CA
Building A (1983)
Building B (1983)

78,299

$13,344,379

$229.32

Building C (1983)

109,741

$15,707,148

$192.59

Building D (1983)

72,096

$12,653,805

$236.16

Building H (1983)

203,118

$42,847,474

$283.84

Building L (1986)

182,923

$25,090,931

$172.34

Building T (1986)

182,797

$28,489,852

$195.82

120,000

$12,576,634

$128.25

48,348

$14,326,939

$393.61

Chevron Park Phase II - San Ramon, CA

Oxnard Building - Oxnard, CA.
Office Building (1989)
Laboratories / Office Building
Richmond Research Center - Richmond, CA
Process Development Center (1982) Bldg. 35
High Bay Process Center (1982) - Bldg. 23
Research Lab E (1982) - Bldg. 10

31,629

$5,960,713

$245.41

171,742

$35,994,304

$278.38

20,600

$7,023,102

$443.95

14,620

$3,688,029

$275.80

50,476

$15,960,840

$374.65

Control House
Richmond Refinery - Richmond, CA
Hydroprocessing Control House (1982)
Cedar Bayou Polyethylene Project - Baytown, TX.
Control Building (1989)
Utility Buildings
Chevron Park Phase I - San Ramon, CA
Central Plant Building J (1983)
1

Costs per sq. ft. are adjusted to mid-1991 (EDPI = 1100).
Detailed cost breakdowns are available from CRTC Facilities Engineering Unit.
Figure 223-2. Cost Data for Office Buildings, Laboratories, Control Houses, and Utiity Buildings

Pre-engineered
Steel Buildings

The equation below gives costs for standard galvanized steel buildings
that meet the following qualifications:
Erected by a contractor
Engineered for a 20-pound live load

Cost Estimating Manual
April 1995

Page 223-3

223

Buildings

Designed with minimum fenestration (doors and windows)
Erected on concrete footings, and without floors, lights, or heat
Cost, $ (EDPI = 1100) = 22.1 x (Area, square feet)0.902

Prefabricated Office
Structures

The next equation gives costs for prefabricated office structures in the
range of 200-2,000 square feet that meet the following qualifications:
Average fenestration (doors and windows)
Suspended ceiling
One bathroom (two fixtures)
excluding foundation, heating, ventilating or air conditioning, and
utility hookups
Cost, $ (EDPI = 1100) = 162.3 x (Area, square feet)0.713

This data could be used for estimating the purchase of construction office
buildings.

Cost Estimating Manual
Page 223-4

April 1995

224
Wharves

I

n this section, you will learn about estimating single- and double-berth tanker
wharves by applying the equations provided and reviewing the examples for each.

Estimating Wharves
Overview

Information Needed

Applicability

Cost Basis

Two equations are provided in this section—one for single-berth tanker
wharves of 32,000 to 100,000 dead weight tonnage (DWT), and one for
double-berth tanker wharves of 75,000 to 800,000 DWT.
You can prepare a Class 1 estimate of the cost of a single- or double-berth
wharf if you have available
the total DWT of the vessels
the equations given in this section
Also review the resources listed in Figure 224-1.
The information in this section is
suitable for Class 1 estimates of single- or double-berth wharves.
unsuitable for Class 2 or later estimates of single- or double-berth
wharves.
Costs include wharf structure and piles only. Costs exclude the following
items:
Communications
Electrical
Instrumentation
Mechanical equipment (loading arms, fenders, hooks, etc.)
Navigation aids
Safety and fire protection equipment
Wharf piping
For
Equations

In this Manual

Other Sources

This section

EDPI

Section 301

Curve Data

Section 202

Figure 224-1. Resources for Estimating Wharves

Cost Estimating Manual
April 1995

Page 224-1

224

Wharves

Single- and Double-Berth Tanker Wharves
Two equations are given in this section; each is followed by examples.
Adjust your estimate (for either equation) for a significant difference in size
of the operating platform and causeway, or for the number of mooring and
breasting dolphins. (See equation adjustments at the end of this section.)
Single-Berth
Tanker Wharves

The equation for estimating these wharves with DWT from 32,000 to
100,000 is as follows:
$ = 51,386 x DWT0.43
EDPI = 1151 (see Section 301)

Wharves on the curve (Figure 224-2) are combination breasting-type (an
operating platform and breasting structure joined as one unit), as shown in
Figure 224-3. For single-berth wharves, the average causeway area is 7,400
sq.ft. The average number of mooring and breasting dolphins is two each.
Figure 1
8,000,000
7,500,000
7,000,000

Dollars

6,500,000
6,000,000

5,500,000

5,000,000

4,500,000

4,000,000
30,000

50,000

70,000

90,000

110,000

Displacement (DWT)

Figure 224-2. Curve Data for Single-Berth Tanker Wharves (EDPI = 1151)

Figure 224-3. Single-Berth Tanker Wharves

Cost Estimating Manual
Page 224-2

April 1995

Single- and Double-Berth Tanker Wharves

Example

Estimate the cost of a single-berth wharf designed for 50,000 DWT with
an operating platform of 10,000 sq. ft.
1

APPLY THE EQUATION FOR SINGLE-BERTH WHARVES

Wharf Cost = 51,386 x (50,000)0.43 = $5,388,000
2

ADJUST FOR ACTUAL OPERATING PLATFORM AREA (FIGURE 224-6)

The calculated platform area for the ship size is
Area = 3512 + 0.088 x 50,000 = 7,912 sq. ft.

The desired platform is 10,000 sq. ft., so the cost must be increased by
$250/SF x (10,000 - 7,912) = $522,000
3

ADJUST FOR CAUSEWAY AREA (FIGURE 224-6)

No adjustment required.
4

ADJUST FOR NUMBER OF BREASTING AND MOORING DOLPHINS
(FIGURE 224-6)

No adjustment required.
5

ADJUSTED TOTAL COST

Cost = $5,388,000 + 522,000 = $5,910,000 or $5.9 M

Double-Berth
Tanker Wharves

The equation for estimating these wharves, which have a combined total
DWT of 75,000 to 800,000 is as follows:
$ = 10,751 x DWT0.62
EDPI = 1151 (see Section 301)

The curve (Figure 224-4) includes four breasting and six mooring
dolphins. Catwalks interconnect the operating platform and mooring and
breasting dolphins (Figure 224-5). The curve does not include a causeway
for this type of wharf. The average distance from shore is 3,600 feet.
Example

Estimate the cost of a double-berth wharf designed for a 150,000 DWT
and a 300,000 DWT ship, with eight mooring dolphins and a 20,000 sq.
ft. operating platform.

Cost Estimating Manual
April 1995

Page 224-3

224

Wharves

Figure 2
100,000,000

Dollars

50,000,000

30,000,000
20,000,000

10,000,000

5,000,000

100

200

300

500

1,000

Displacement (DWT)

Figure 224-4. Curve Data for Double-Berth Tanker Wharves

Figure 224-5. Double-Berth Tanker Wharves

1

APPLY THE EQUATION FOR DOUBLE-BERTH WHARVES

Wharf Cost = 10,751 x (150,000 + 300,000)0.62 = $34,391,000
2

ADJUST FOR ACTUAL OPERATING PLATFORM AREA (FIGURE 224-6)

The calculated platform area for this wharf is
Area = 1,475 + 0.051 x 450,000 = 24,425 sq. ft.

The desired platform is 20,000 sq. ft., so the cost must be decreased by
$345/SF x (24,425 - 20,000) = $1,527,000

Cost Estimating Manual
Page 224-4

April 1995

Single- and Double-Berth Tanker Wharves

3

ADJUST FOR THE NUMBER OF BREASTING AND MOORING DOLPHINS
(FIGURE 224-6)

The calculated cost per mooring dolphin is
$866 x (450,000)0.61 = $2,432,000

For eight versus the six in the model, add
2 x $2,432,000 = $4,864,000
4

ADJUSTED TOTAL COST

Cost = $34,391,000 - 1,527,000 + 4,864,000 = $37,728,000, or $37.7 M

Costs at EDPI = 1151

SINGLE-BERTH WHARF
0.43

DOUBLE-BERTH WHARF
$ = 10,751 x (DWT)0.62

Base Cost of Wharf

$ = 51,386 x (DWT)

Platform Area (sq. ft.)

Area = 3,512 + 0.088 x DWT

Area = 1,475 + 0.051 x DWT

Platform Cost

$250/sq. ft.

$345/sq. ft.

Causeway Cost

$110/sq. ft.

Not applicable

Breasting Dolphins, each

$ = 713 x (DWT)0.60

$ = 713 x (DWT)0.60

Mooring Dolphins, each

$ = 866 x (DWT)0.61

$ = 866 x (DWT)0.61

Figure 224-6. Equation Summary

Cost Estimating Manual
April 1995

Page 224-5

300

Secondary Methods—
Individual Cost Adjustments

301

Cost Indexes

302

Modernization Factor

303

Allowances

304

Freight

305

Sales & Use Tax

Cost Estimating Manual

301
Cost Indexes
ost (or price) indexes are an integral part of cost estimating. They help you to
update costs from the date they were incurred to the present day or to some
other time.

C

Working with Cost Indexes
One example of a published cost index is the Consumer Price Index,
published by the Bureau of Labor Statistics (BLS) of the U.S. Department
of Labor. The base period 1982-84 is defined as 100, a common reference
value. Figure 301-1 lists other resources for this section.
While it has a number of components, the overall index for the category
All Urban Consumers was 141.9 for December 1992 and 145.8 for
December 1993. The costs in December 1993 were, therefore, 45.8
percent higher than during the base period. You can calculate the increase
from December 1992 to December 1993 as follows:
145.8/141.9 = 1.027, or 2.7 percent
Item

Other Sources

Indexes

Bureau of Labor Statistics

– Historical

– Wages & Salaries, Professional & Technical Workers
– Producer Price Index for Industrial Commodities (excluding Energy)
Engineering News Record (ENR)
– Skilled and Common Labor Indexes
Oil & Gas Journal
– Nelson-Farrar Refinery Index (Labor Component)
– Nelson-Farrar Refinery (Inflation) Index
Chemical Engineering
– Engineering & Supervision Index

Figure 301-1.

Resources for Working with Cost Indexes

Cost Estimating Manual
December 1998

Page 301-1

301

Cost Indexes

Example of
Updating Costs
1

Estimate the first quarter 1994 (1Q94) cost of a piece of process
equipment purchased in 1Q92 for $12,000.
REFER TO A MATERIALS COST INDEX

One example is Chevron Materials Index (EDMI).
1

DETERMINE THE EDMI VALUES FOR 1Q94 AND 1Q92

From Figure 301-5, these values are 886.0 and 856.3, respectively.
1

ESTIMATE THE COST AT 1Q94

Current Index
New Cost = Historic Cost × -----------------------------------Historic Index
886.0
New Cost = $12,000 × --------------- = $12,400
856.3

Chevron
Cost Indexes

Chevron maintains three component cost indexes1:

Engineering Department Engineering Index (EDEI)

Engineering Department Materials Index (EDMI)

Engineering Department Labor Index (EDLI)
and one composite index, Engineering Department Plant Index (EDPI)
(see Figure 301-2).
We use 1946 = 100 as the reference point.
Annual indexes (Figure 301-4) are shown from 1973; the quarterly
indexes (Figure 301-5) are shown for the years from 1991 and for the
forecast period. See also Figure 301-3.
In addition to historic values, there is a five-year forecast for converting
current, constant-dollar cost estimates into “then-current” costs.



1

Be sure to include modernization (Section 302), as well as indexing (EDPI) when
updating the cost of entire pre-1983 plants.

The index names refer to the old Engineering Department and were not changed during successive reorganizations into
Engineering Technology Department, CRTC, and Project Resources.
Cost Estimating Manual

Page 301-2

December 1998

Working with Cost Indexes

Index
EDEI

For

Chevron
Tracking cost of:
Engineering Dept. ■ Technical Services
Engineering Index
(Group IA)


EDMI

Source/Comments

1

Company Construction
Management (Group
IB2)

Chevron
Tracking cost (purchase
Engineering Dept. price, freight, sales tax) of
Materials Index
all equipment and
materials permanently
installed in plants



Bureau of Labor Standards (BLS)
“Wages & Salaries, Professional &
Technical Workers”2



Chemical Engineering, “Engineering
Supervision Index”3



BLS “Producer Price Index for
Industrial Commodities (excluding
Energy)”



Oil & Gas Journal (O&GJ), two
components of the “Nelson-Farrar
Refinery (Inflation) Index”4



Richardson's “Process Plant
Construction Estimating Standards”

EDLI

Chevron
Tracking costs of
Engineering Dept. construction labor and
Labor Index
contractors’ field indirect
costs (Group IB1)

O&GJ “Nelson-Farrar Refinery
(Inflation) Index” (labor component)5

EDPI6

Chevron
Tracking total process plant
Engineering Dept. costs (overall index)
Plant Index

Derived from three component indexes:
EDEI, EDMI, EDLI

RVI

Replacement
Value Index

Estimating original costs
from present-day costs, for
adjusting plant asset
records of facilities being
retired, transferred, or sold

ENR

Engineering News Civil construction and
Record
components such as skilled
and common labor

EDPI = (0.189 × EDEI) + (0.615 × EDMI)
+ (0.216 × EDLI)7
Project Resources Services develops.
Published in the Uniform Accounting
Manual, Section 20.20.24, Appendix 3;
EDPI values offset by one quarter8
Monthly indexes — basis for EDLI

Contact Project Resources Services for a project-specific index or to ask questions about indexes.
1

Includes Chevron and contractor design, procurement, and project management services. Also
Chevron costs for construction management.
2 We also monitor white-collar-pay data (published annually by BLS).
3 This source is adjusted for changes in productivity.
4 Original basis for EDMI, dropped for a period during the 1980’s, but later reinstated. A current
basis for EDMI, along with BLS.
5 Based on a 65 percent/35 percent mix of “Skilled” and “Common Labor” indexes published in
Engineering News Record (ENR).
6 Prior to 1973, this was EDCI (Engineering Department Construction Index).
7 These weightings were calculated from a cost distribution of 18 percent engineering, 48 percent
materials, and 34 percent labor when using the component index values for January, 1973. The
cost distribution is based on actual project data for process plants and was validated in 1981.
While individual indexes should apply to components of domestic projects other than process
plants, a different mix may be more suitable for overall indexing than this formula for EDPI.
8 For example, the third quarter RVI is the same as second quarter EDPI. Annual RVI value is not
an average; it is the same value as third quarter EDPI.
Figure 301-2.

Updated Forecast

Cost Indexes–Chevron and Others

Personnel in the Project Resources Services update the index forecasts
twice a year from the database of DRI, an econometrics consulting firm.

Cost Estimating Manual
December 1998

Page 301-3

301

Cost Indexes

Figure 301-3.

Chevron Cost Indexes

DRI’s forecast for background inflation, measured by the Gross Domestic
Product Implicit Price Deflator (GDP, Figure 301-4), indicates less than
three percent annual growth through 2002. Our EDPI is forecast to grow at
about the same rate.

Cost Estimating Manual
Page 301-4

December 1998

Working with Cost Indexes

Index
Year

EDEI

EDMI

EDLI

Annual Changes
EDPI

GDP

EDPI

GDP

HISTORIC
1974

350.8

366.7

623.9

430.9

33.9

15.7%

8.3%

1975

373.8

419.5

678.8

480.8

36.7

11.6%

9.3%

1976

402.9

435.6

727.2

508

40.1

5.7%

6.5%

1977

439.4

457.0

773.1

539.6

42.7

6.2%

6.8%

1978

484.2

498.8

823.6

582.8

45.6

8.0%

7.9%

1979

519.5

547.7

878.7

637.6

49.2

9.4%

8.9%

1980

586.9

605.6

951.3

708.1

53.6

11.1%

9.3%

1981

688.8

671.7

1043

786.5

58.6

11.1%

10.2%

1982

783.8

688.6

1157

837.7

64.6

6.5%

5.9%

1983

869.5

695.7

1234

872.8

68.4

4.2%

4.5%

1984

943.9

714.2

1279

903.2

71.5

3.5%

5.0%

1985

993.2

716.5

1298

914.9

75.1

1.3%

3.6%

1986

1026

717.7

1330

927.3

77.8

1.4%

2.7%

1987

1051

739.9

1370

957.3

79.9

3.2%

3.4%

1988

1092

780.3

1406

999.2

85.8

4.4%

3.9%

1989

1141

815.9

1439

1038

89.6

3.9%

4.4%

1990

1193

837.3

1488

1073

93.4

3.4%

4.2%

1991

1253

851.8

1535

1102

97.3

2.7%

4.2%

1992

1304

860.8

1580

1127

100.0

2.3%

2.8%

1993

1355

877.4

1619

1154

102.6

2.4%

2.6%

1994

1400

897.5

1664

1183

104.9

2.5%

2.2%

1995

1439

940.1

1709

1227

107.6

3.7%

2.6%

1996

1478

937.9

1754

1244

109.6

1.4%

2.3%

1997

1526

942.0

1802

1266

111.9

1.8%

2.1%

FORECAST
1998

1625

941.2

1851

1287

112.8

1.6%

0.8%

1999

1672

946.4

1906

1311

114.6

1.9%

1.6%

2000

1723

963.7

1965

1344

116.9

2.6%

2.0%

2001

1773

979

2014

1375

119.6

2.3%

2.3%

2002

1827

990

2065

1403

122.4

2.1%

2.3%

2003

1898

999

2126

1435

125.4

2.2%

2.5%

Figure 301-4.

Annual Average Cost Indexes

Cost Estimating Manual
December 1998

Page 301-5

301

Cost Indexes

Quarterly Cost Indexes
HISTORIC
Qtr/Yr

EDEI

EDMI

FORECAST
EDLI

EDPI

Qtr/Yr

EDEI

EDMI

EDLI

EDPI

1/93

1385

874.8

1602

1146

3/98

1640

939.9

1862

1290

2/93

1394

878.6

1606

1151

4/98

1650

941.2

1879

1297

3/93

1406

876.6

1625

1156

1/99

1661

943.1

1878

1300

4/93

1413

879.6

1641

1162

2/99

1671

945

1891

1305

1/94

1424

886

1645

1169

3/99

1685

947.1

1919

1315

2/94

1434

890.7

1652

1176

4/99

1695

950.2

1937

1323

3/94

1445

900.2

1674

1188

1/20

1709

955.2

1938

1329

4/94

1454

913

1686

1200

2/20

1722

961

1952

1338

1/95

1463

930

1690

1213

3/20

1739

967.1

1978

1351

2/95

1471

940.8

1696

1223

4/20

1749

971.4

1995

1359

3/95

1482

945.5

1719

1233

1/21

1763

974.6

1991

1363

4/95

1495

944.2

1732

1237

2/21

1777

977.6

2002

1370

1/96

1511

938.9

1735

1238

3/21

1795

980.5

2025

1380

2/96

1523

936.5

1743

1240

4/21

1806

983.3

2038

1386

3/96

1533

937

1766

1247

1/22

1821

985.9

2036

1390

4/96

1536

939

1773

1251

2/22

1836

988.8

2051

1398

1/97

1549

940.1

1776

1255

3/22

1851

991.8

2078

1409

2/97

1566

940.6

1794

1262

4/22

1862

994.6

2095

1416

3/97

1581

941.6

1814

1270

1/23

1877

997.4

2094

1420

4/97

1594

945.6

1824

1277

2/23

1891

1000

2111

1428

1/98

1607

942.7

1830

1279

3/23

1906

1002.6

2140

1439

2/98

1621

941

1832

1281

Figure 301-5.

Quarterly Cost Indexes–Historic/Forecast

Cost Estimating Manual
Page 301-6

December 1998

302
Modernization Factor

April 1995

he modernization factor accounts for
Cost changes resulting from sources other than inflation
Inflation that exceeds the EDPI increases

T

Applying the Modernization Factor
Overview

To bring the capital investment of an older plant up to the current cost of
building a modern plant of the same throughput, apply the modernization
factor in addition to normal indexing with EDPI (Section 301).

Background

Since 1960, we have built plants with increasing amounts of specialized
equipment to
improve operating efficiency, reliability, and safety
save energy
meet environmental requirements
Actual inflation has frequently exceeded the bases for EDPI indexes. The
modernization factor also ameliorates the effects of moderate business
cycles through 1983. Figure 302-1 lists factors that have made it
necessary to make a modernization adjustment.

Energy Conservation

Cost Index Deficiencies

Safety Features

Environmental Control

OSHA Requirements

Pollution Reduction (noise, air, water)

Earthquake Design Improvement

Environmental Impact Statements

Blast-resistant Control Houses

Increased Air Cooling

Fireproofing

Water Re-Use

Improved Plant Reliability

Improved Operating Efficiency

Dual Electrical Systems

Process Computers

Uninterruptible Power Supply
Increased Metallurgical Sophistication

Instrumentation
Increased Tax Rates

Sales
Social Security
Unemployment
Figure 302-1. Significant Contributors to Increased Capital Cost

Cost Estimating Manual
April 1995

Page 302 -1

302

Modernization Factor


Historical values

The modernization factor does not compensate for major process or mechanical
design changes which require separate adjustments.

Observed values for the modernization factor, based on project
expenditure mid-points, are as follows:
1945 to 1960
Negligible
1960 to 1961
1 percent per year
1961 to 1963
2 percent per year
1963 to 1970
3 percent per year
1970 to 1983
4 percent per year
Example

The modernization factor to bring the cost of a plant built in 1960 up to
1983 costs is as follows:
(1.01) x (1.02)2 x (1.03)7 x (1.04)13 = 2.15

Multiply this value by both the 1960 plant cost and the EDPI ratio.
Post-1983

Do not apply modernization factors beyond 1983. The construction
industry was in a slump during the mid-1980’s, and reductions in
construction costs from the favorable business climate masked any effects
of modernization. While the business climate returned to normal in the
late 1980’s, we do not yet have data to suggest the need to apply the
modernization factor to recent years.

Cost Estimating Manual
Page 302 -2

April 1995

303
Allowances

April 1995

his section focuses on three estimating allowances: design, takeoff, and lump
sum. Before you begin to review them, however, take a look at the difference
between allowances and contingencies.

T

Allowances vs. Contingencies
The first step in learning about allowances is to recognize the differences
between allowances and contingencies.
Allowances

Contingencies

Allowances are
associated with specific items of work
expected to be spent on that work
included in the base estimate along with all other identified costs
not a form of contingency
Contingencies (Section 313) are
not associated with any specific item of work
expected to be spent during the project
added to the base estimate

Three Estimating Allowances
A basic premise of estimating allowances is that the size of an allowance
reflects the level of detail of the estimate; therefore, an allowance
decreases as the quality of information (specifications, quantities, pricing)
increases.
Design Allowance

A design allowance—an adjustment to the estimated or quoted equipment
cost—reflects nominal routine cost changes for engineered equipment
resulting in an increased anticipated final cost.
You assess the design allowance after you have included all known
specifications (design requirements) for items such as these:
Process and utility equipment
Electrical switch gear (transformers, MCCs, etc.)
Cost Estimating Manual

April 1995

Page 303-1

303

Allowances

Tagged instruments (transmitters, controllers, computers, etc.)
A design allowance does not
apply to bulk commodities (minor materials)
affect the labor cost in detailed estimating
A design allowance is
included—along with tax and freight—before you apply factors or
ratios (see Sections 203 and 204)
expected to be spent completely during the project
usually in the 3-15 percent range
included in some equipment cost correlations (see Sections 401 and
403)
Takeoff Allowance

A takeoff allowance—an adjustment to quantity rather than cost —
provides for
the difference between quantity takeoffs from designs and final
in-place quantities of bulk commodities
fabrication waste
A takeoff allowance is
expected to be spent during the project
usually in the 5 to 15 percent range
often applied to the cost rather than to the quantity, on the assumption
that the cost per unit is the same for the base quantity and the
allowance amount
applied to both labor1 and materials (when applied to cost instead of
quantity)
applied for wastage2
Example

Add a percentage allowance (see Figure 303-1) to the piping takeoff for
small-diameter pipe not shown on the drawings.

1
2

If the allowance represents an under-count of quantities that will actually be installed, then labor is needed to install it.
There is no labor associated with wastage. If a single percentage represents allowances for both takeoff and wastage (for
those commodities needing both), only part of that percentage should attract labor.
Cost Estimating Manual
Page 303-2

April 1995

Three Estimating Allowances

Type of Allowance
Project #1

Description

Takeoff

Project #2

Waste

Takeoff

Waste

J - Instruments
15%-40%2

Included

10%

All

-

-

3%-10%2

None

Small bore

70%

Included

-

-

Large bore

25%

Included

-

-

10%

Included

3%-15%2

10%

Included

2

3%-15%

7%

None

-

5%

7%

10%

Included

10%

5%

Included

10%

Bulks

15%

L - Piping

M - Structures
Steel
1

Concrete

None

N - Insulation
Insulation
Fireproofing

1

P - Electrical
10%-40%2

Bulks
1

2

Q - Foundations

15%
2

8%-10%

Included

3%-15%

7%

8%

Included

10%

0%
5%

S - Miscellaneous
Earthwork

1

Paving

10%

Included

10%

Sewers

25%

Included

3%-10%2

None

Painting

None

-

10%

7%

Richardson Section 3-50, “Process Equipment Foundations” includes
the following recommended overpour (waste) allowances:
Foundations and grade beams—5 to 10 percent
Elevated concrete structures—4 percent
Cast-in-place fireproofing—3 percent

2

Poorly defined portions of the project required the higher values where
ranges are shown.

Figure 303-1. Takeoff & Wastage Allowances—Percentage Allowances in Two
1989 Contractor-Prepared Class 4 Estimates

Supporting Data

Figure 303-1 gives takeoff and wastage allowances for two typical
estimates.
Lump-Sum
Allowance

A lump-sum allowance is often included
for items added late in the estimating process
when time or available information does not permit making a more
detailed estimate

Cost Estimating Manual
April 1995

Page 303-3

303

Allowances

Lump-sum allowances are
identified with specific work items
expected to be spent during the project
Examples

Mitigating environmental impact—permit requirements as yet
unknown; some expenditure expected
Adding a process system (e.g., tempered water cooling)—equipment
not yet sized
Providing spare parts—specific items not yet identified (other than
major items such as compressor rotors)
Reconditioning re-used equipment—disassembly and inspection not
completed; extent of work unknown

Cost Estimating Manual
Page 303-4

April 1995

304
Freight

April 1995

any equipment items covered in Chapter 400 include an allowance for domestic
freight. For some projects, however, you may need to develop costs for
domestic and foreign freight.

M

Developing Freight Costs
Information Needed
Domestic Freight

Review the list of resources in Figure 304-1.
You can estimate domestic freight as five per cent of the value of directpurchase materials.
For more precise estimates, you need to identify
the source
destination (job-site or other)
cubic volume (bulk)
weight
You may then refer to or contact the resources given in Figure 304-1.



Overseas Freight

Not all materials incur freight charges. For example, ready-mix concrete is priced
on a delivered basis. Field-purchased local items, such as miscellaneous piping and electrical materials not included in bulk orders, will not have
measurable delivery costs.

You can estimate overseas freight, from vendor shop to job site, as 12
percent of the value of materials for developed areas and 24 percent for
developing Third World areas. This figure includes freight forwarding
services and carrier charges.
For more information, see the resources given in Figure 304-1.
Item

Other Sources

Domestic freight:
- Process equipment

Richardson, Sections 100-700

- Process equipment & bulk materials

CUSA Products Co., Supply and Distribution,
Transportation Planning and Services

Overseas freight

CUSA Products Co., Supply and Distribution,
Transportation Planning and Services

Figure 304-1. Resources for Estimating Freight

Cost Estimating Manual
April 1995

Page 304-1

305
Sales & Use Tax

April 1995

S

ales and use tax is complex, especially because rates change frequently. To avoid
tax problems for Chevron, seek expert advice from Chevron tax specialists.

Estimating Sales & Use Tax
Every state except Alaska, Delaware, Montana, and Oregon imposes a
sales tax along with a compensating use tax. Most states also allow local
governments or agencies to impose additional sales and use taxes. Your
project’s cost estimate may increase as a result of these taxes; however,
carefully planning and applying them may result in favorable economic
benefits to your project.
The extent to which you should incorporate taxes into your estimates
varies with the level of accuracy of the estimate. For Class 1 and some
Class 2 estimates, include sales tax only for materials and freight.
For more accurate estimates, consider labor tax as well as the different tax
rates for manufacturing versus non-manufacturing equipment, company
versus contractor purchases, and lump-sum versus separated contracts.
Project managers should consult with the Corporation Excise Tax Group
for project tax planning for Class 3 estimates.
Figure 305-1 provides a tax guide for selected Chevron facilities.

Cost Estimating Manual
April 1995

Page 305-1

305

Sales & Use Tax

State

Facility

Tax %
Local2

Total

1.25

7.25

El Segundo

2.25

8.25

Gaviota/Goleta

1.75

7.75

Richmond

2.25

8.25

San Francisco

2.25

8.25

San Ramon

2.25

8.25

State
CA

6

Bakersfield

Labor Matl & Freight
3
4
Equip.
NT

T

NT

Comments
Materials1
Labor—To repair real property is also non-taxable.

HI

Ewa Beach Refinery

4

0

4

NT

NT

NT

Materials.1 Equipment must be transferred within the Foreign Trade
Zone.
Labor must be performed within the refinery, a Foreign Trade Zone.

LA

Oak Point/Belle Chase

4

3

7

NT

T

NT

Lafayette

3.5

7.5

New Orleans

5

9

St. James

3

7

Materials.1
Labor—Non-taxable with a separated contract.
- Project may receive tax credits if it complies with LA Rule 1 (Use of
LA Contractors). Project Mgt. must apply for tax credits.
- Industrial Tax Exemption from state, parish, and local property taxes
up to 10 years. Includes all buildings, machinery, and equip. that are
part of the mfg. process. Net savings are approx. 1%/yr. of the value
of property taxes.
- Enterprise Zone Tax Exemption from all state sales/use tax and local
sales/use tax (excluding % for schools). Also stipulates that 35% of
the work force must reside in the parish of the company facility.

MS

Pascagoula

1.5

0

1.5

T

T

NT

Separate E/P & construction contracts—1.5% rate applies to labor
and mat’ls (if used in the mfg. process) if non-manufacturing rate is
7%.
Separated & non-separated contracts—Entire contract amount (labor
& mat’ls.) is subject to 3.5% rate.

NJ

Perth Amboy
(Middlesex)

6

0

6

NT

T

-

Materials1

Perth Amboy (Ocean)

7

0

7

El Paso

6.25

2

8.25

NT

T

NT

Cedar Bayou/
Baytown

1

7.25

Port Arthur

1

Orange

1.5

Houston

2

8.25

Separated contract with contractor’s overhead (& profit) allocated to
both labor & mat’ls.: mat’l. and markup are taxable. All overhead
allocated to labor: tax only on mat’l.
If separate (i.e., 2 or more) EP & construction contracts are used, then
field labor & mat’ls. are taxable. Tax credits are available for mfg.
equip. (incl. replacement parts) sales tax as follows:
- 50% for purchases 10/1/93 - 12/31/93
- 75% for purchases in1994
- 100% exemption of State & Local tax after 1994
A Franchise Tax Credit is available for purchases made between
10/1/91 - 9/30/93. Pollution control equip. is non-taxable in any year.

Ft Worth

1.5

7.75

TX

6.755
7.75

UT

Salt Lake City

5

1.25

6.25

NT

T

NT

Materials1
Labor—Repairs to Real Property are also non-taxable.
Possible Tax Credits for Pollution Control, Energy & Investment

WY

Carter Creek
(Uinta Co.)

4

1

5

NT

T

NT

Materials1
Labor—A separated contract is reqd. for labor to be non-taxable.
Possible tax credits for out-of-state sales tax for pollution control, fire
prevention & energy.

Contract definitions:
Legend:
1
2
3
4
5

Separated:
Non-Separated:
Separate:
T:
NT:

A single EPC contract that separates the cost of materials and labor.
A single EPC contract that does not break out value of each (E/P/C)
Discrete E/P & Construction contracts (i.e., 2 or more contracts)
Taxable
Not Taxable

Construction contract taxable on materials (only). If a separated contract is used, then equipment plus markup is taxable.
Local sales tax includes city, transit, county & special purpose taxes.
Labor is non-taxable when it directly results in an improvement to real property. Labor includes dismantling & demolition.
Unless otherwise stated, it does not include maintenance or repair labor.
Freight is non-taxable when separately stated on vendor invoice and shipping terms are F.O.B. Point of Origin or Shipping
Point. In TX, freight is non-taxable when billed by a third-party carrier.
A majority of the facility (i.e., outside the city limits) is taxed at 6.75%. A small portion of the facility (i.e., inside the city limits)
is taxed at 7.75%.

Figure 305-1. Sales/Use Tax Guide for Selected Domestic Locations

Cost Estimating Manual
Page 305-2

April 1995

310

Secondary Methods—
Bottom-Line Cost Adjustments

311

Area Factors

312

Escalation

313

Contingency

Cost Estimating Manual

311
Area Factors
n area factor is the ratio of the cost of a facility at a specific location—domestic1
or foreign—relative to its cost at a generic location, both in US dollars. You may
make estimates from either location-specific or location-generic2 cost data. For the
latter, you adjust the cost data to another location by working with an area factor.

A


The CRTC Facilities Engineering Unit has on file area factors from some estimates. Refer to
these historical area factors with caution and generally only for guidance because the base
data may not be current.

Describing the Area Factor
There are two ways the cost of a facility may differ between locations.
First, where the facilities are identical (as for a specific type of process
plant), there are differences relating to the cost of materials (including
freight and taxes), labor rates, labor productivity, and so on. This is what’s
normally meant by the term area factor (sometimes called location
factor). The second way that costs may differ is when there are facilities
differences such as the need for infrastructure (roads, wharves, pipelines),
for process differences (water cooling versus air cooling), or for
differences in construction techniques (modularized versus stick-built).
While the latter types of items can have a major impact on differences in
cost, they are not considered part of an area factor and must be identified
and estimated separately.
See Figure 311-1 for items that are either included or excluded from an
area factor.

1
2

For Chevron, the reference location is usually US West Coast (USWC) or Richmond.
Such as the US Gulf Coast (USGC) or the US West Coast (USWC).
Cost Estimating Manual

April 1995

Page 311-1

311

Area Factors

Area Factor
Cost Differences for Location
Included

Not Included

Engineering—costs and productivity

Construction technique (stick-built versus
modularized)

Freight—domestic/ocean freight

Infrastructure (site work, wharves, pipelines,
volume of tankage, utility systems)

Import duties

Process (equipment, operating conditions,
metallurgy, capacity)

Labor—availability, rates, productivity,
overtime, shifts
Material—costs, source of supply (foreign vs.
U.S.)
Taxes—sales/use, contractor

A foreign area factor normally assumes local (national) labor. If the labor force is imported from a
third country, then additional adjustments are required for labor rates, productivity, and relocation
and living costs.
Figure 311-1. Area Factor: Cost Differences Included & Not Included

Calculation Method
Follow these three steps for calculating an area factor:
1

CONSIDER ALL CONDITIONS THAT CAN AFFECT OVERALL COST

The starting point is the historical cost split for large projects on the
USWC (Richmond Refinery). See Figure 311-2.



Caution: We have not verified the percentages below recently. Consider them illustrative
only. If you are starting with a sufficiently detailed estimate, develop a percentage split
from that data rather than working with these percentages.

Item

Percentage

Percentage by Source

Materials

53

48 Direct, 5 Indirect

Manual Labor

25

20 Direct, 5 Indirect

4

Non-Manual Labor
Engineering/Project Mgmt
Total

18

14 Contractor, 4 Chevron

100

This mix refers to entire refinery process units and chemical plants.
Different mixes of the components may be appropriate for small or very
large projects requiring abnormal amounts of engineering, off-plot
facilities, pipeline/pump stations, and other kinds of facilities.
Figure 311-2. Historical Cost Split for Large Projects, USWC

Cost Estimating Manual
Page 311-2

April 1995

Area Factors for Foreign Locations

2

STUDY EACH COMPONENT SEPARATELY

Study the components separately to determine the effect (if any) of
conditions at the new location. See Figure 311-3.
3

CALCULATE A BASE AREA FACTOR

Put the above examples together to calculate a base area factor (Figure
311-4) to which you may need to add other site requirements (Figure
311-5).
The 1.00 base area factor for Richmond excludes piling, assumes normal
labor productivity, and is the basis for the cost-capacity curves in Section
202.
The overall area factor for a project to be built at Richmond will probably
be different from 1.00 because piling is required in many locations in the
refinery, and labor productivity will likely be different from the norm.
See the example of area factor calculations in Figure 311-6 for a specific
domestic location (Pascagoula) relative to the Richmond refinery.

Area Factors for Foreign Locations
Foreign projects require special treatment. Additional factors1 affect
relative costs, and old data can require considerable adjustment.
Example: Updating
Area Factor for the
United Kingdom

For the second quarter of 1991, the area factor for the United Kingdom
(UK) relative to the USGC was 1.34.2 The currency exchange rate was
0.54 pounds Sterling to the US dollar.
To update the area factor to the third quarter of 1993, you need three
pieces of information:
The exchange rate at that date
The cost increase for the UK from 2Q91 to 3Q93
The cost increase for the US from 2Q91 to 3Q93

1
2

Such as restrictions on source countries for goods and services, and rapidly changing area factors due to fluctuations in
currency exchange rates and differing inflation rates between countries.
Location Factors, European Construction Institute publication RT1/2, January 1992.
Cost Estimating Manual

April 1995

Page 311-3

311

Area Factors

Multiplier
Reason for Adjustment

Comments
Adjustment Combined

Price

1.00

Sales Tax

0.96

Transportation

1.00

Wage Rates

0.6

Productivity

1.2

Travel &
Subsistence

1.2

Overtime
Premium

1.0

Taxes

1.0

Price

1.00

Indirect
Materials

Sales Tax

0.96

(5% USWC)
(Section 501)

Transportation

1.00

Productivity
Adjustment

1.10

Salary
Adjustments

1.0

Productivity

1.0

Travel & Living
Costs

1.0

Taxes

1.0

Contractor
Home Office

Billing Rate

1.0

Productivity

1.0

(14% USWC)
(Section 511)

Travel Costs

1.0

Taxes

1.0

Chevron Project
Management

Salary
Adjustments

1.0

(4% USWC)
(Section 512)

Productivity

1.0

Travel & Living
Costs

1.2

Taxes

1.0

Direct Materials

= 0.96

Review the prices, taxes, duties, and freight
involved to decide if any categories will be more
than, equal to, or less than those at Richmond
Refinery. Refer to Sections 304 and 305 for
freight and sales tax information. Adjust based
on your judgment and assessment of available
data.

= 0.86

Includes both direct and indirect craft labor.
Review wage rate data (Section 424 or other
sources), labor productivity data, and travel and
premium pay to determine necessary adjustments. Obtain productivity data from Chevron
experience or from contractors. Expressed as a
manhour multiplier; Richmond normal
productivity = 1.0. (Section 422)

(48% USWC)

Manual Labor
(25% USWC)

= 1.06

Non-Manual
Labor
(4% USWC)
(Section 501)

= 1.0

= 1.0

Includes construction equipment (about 3%),
temporary facilities (about 1%), and small tools
and consumable supplies (about 1%). Requires
same adjustments as direct materials and also a
manual labor productivity adjustment, but only
half as large as for manual labor. (i.e., if manual
productivity is 1.2, use 1.1 for indirect materials.)
This is a composite adjustment that reflects the
fact that the cost of small tools and consumables
varies directly with productivity while construction
equipment and temporary facilities costs vary
only about one-third as much.

This category includes contractor construction
profit as well as field staff costs. Generally, this
category is not affected by local wage rates or
manual labor productivity. If there were no
differences between Richmond and the proposed
new location, this example would result.

This is an example of contractor home office
(engineering, procurement, and project
management) adjustment.

This category includes project management,
design representatives, and field personnel for
construction, training, and startup.
= 1.2

Figure 311-3. Examples of Reviewing Separate Components of an Area Factor

Cost Estimating Manual
Page 311-4

April 1995

Area Factors for Foreign Locations

Category

USWC
Fraction

Adjustment
Multiplier

Fraction

Direct Materials

0.48

0.96

0.46

Manual Labor

0.25

0.86

0.22

Indirect Materials

0.05

1.06

0.05

Non-Manual Labor

0.04

1.0

0.04

Contractor Home Office

0.14

1.0

0.14

Chevron Project Management

0.04

1.2

0.05
0.96

Base Area Factor

Figure 311-4. Combining Examples to Calculate Base Area Factor

Other Site
Requirements

Approximate %
Added to Project
Cost

Winterizing

3

Piling

2

Construction
Camps

6

Busing

1

Figure 311-5. Other Site Requirements in Area Factor

Exchange Rate

From the newspaper or another reference, we found that the exchange rate
at 3Q93 was 0.66 pound Sterling per US dollar.
Inflation

US inflation over the time period was 5.4 percent (expressed as a fraction,
1.054), based on the EDPI (Section 301).
For the UK, a publication called The Cost Engineer gives construction
cost indexes.1 From that source, we determined the UK inflation factor to
be 1.070.

1

These indexes are often difficult to find for foreign countries. Where construction cost indexes are not available, you must
use some other index such as for consumer prices or producer prices. When that is necessary, use the corresponding index
for the US for consistency (rather than the EDPI).
Cost Estimating Manual

April 1995

Page 311-5

311

Area Factors

Category

Richmond
Basis

Relative

Pascagoula
Basis

Relative

DIRECT MATERIALS

0.48

0.48

0.48

0.48

Taxes & Duties1

1.0825

1.00

1.015

0.94

Transportation

1.00

1.00

1.00

1.00

0.48

Subtotal

0.45

0.25

0.25

0.25

0.25

Wage Rate2

43.25

1.00

22.95

0.53

Productivity

1.00

1.00

1.10

1.10

None

1.00

1.01

1.01

MANUAL LABOR

3

Taxes

0.25

Subtotal

0.15

0.05

0.05

0.05

0.05

Taxes & Duties

1.0825

1.00

1.015

0.94

Transportation

1.00

1.00

1.00

1.00

Productivity Adjustment

1.00

1.00

1.05

1.05

INDIRECT MATERIALS
1

0.05

Subtotal

0.05

NON-MANUAL LABOR

0.04

0.04

0.04

0.04

Travel & Living Costs

1.00

1.00

1.00

1.00

None

1.00

1.01

1.01

3

Taxes

0.04

Subtotal
CONTRACTOR HOME OFFICE
4

Travel Costs
3

Taxes

0.04

0.14

0.14

0.14

0.14

1.00

1.00

1.05

1.05

None

1.00

1.01

1.01

0.14

Subtotal

0.15

CHEVRON PROJECT
MANAGEMENT

0.04

0.04

0.04

0.04

Travel & Living Costs5

None

1.00

1.20

1.20

Subtotal
BASE AREA FACTOR

0.04

0.05

1.00

0.89

Other Site Requirements
Piling

0.02

0.02

0.02

0.02

Winterization

None

0.00

0.02

0.02

Subtotal
OVERALL AREA FACTOR

0.02

0.04

1.02

0.93

Figure 311-6. Example of Calculating Area Factor: Richmond—Pascagoula

Cost Estimating Manual
Page 311-6

April 1995

Area Factors for Foreign Locations

We then calculated the third quarter 1993 area factor for the UK, relative
to the USGC, as follows:
(Area Factor)93 = (Area Factor)91 x

(ExchangeRate)91 (UK inflation)
x
(Exchange Rate)93 (US inflation)

= 1.34 x (0.54/0.66) x (1.070/1.054) = 1.11

Example: Calculating
Area Factor for Saudi
Arabia

Figure 311-7 shows an area factor calculation for Saudi Arabia, based on
cost estimates made for a 1989 study. The format and percent split differ
slightly from Figures 311-3 and 311-6. USGC is the US reference.



Consult the CRTC Facilities Engineering Unit for assistance with developing area
factors for foreign locations.

Cost Estimating Manual
April 1995

Page 311-7

311

Area Factors

USGC

Saudi Arabia

DIRECT MATERIALS

Category

0.63

0.63

Remarks

Local Purchase Premium

1.00

1.023

Bulk materials obtained locally cost
an estimated 25 percent more than
imported materials.

Taxes

1.00

0.939

No local sales tax.

Ocean Freight/Duty

1.00

1.140

Most equipment and some bulk
materials are imported.

0.63

0.69

DIRECT LABOR

0.10

0.10

Hourly Rate

1.00

0.433

$6.50 vs. $15.00 per hour.

Productivity

1.00

1.666

2.0 vs. 1.2 relative to the
contractor’s manhour standards.

0.10

0.07

0.05

0.05

Wages/Productivity/Indirects

1.00

1.425

Composite effect of three elements.

Taxes

1.00

0.975

Only the materials portion is taxable
on USGC, so the difference is
smaller than for direct materials.

0.05

0.07

INDIRECTS

0.08

0.08

Materials

1.00

1.452

Composite effect of price, taxes,
productivity and ocean freight/duty.

Manual Labor

1.00

0.722

Same as direct labor, above
(0.433 x 1.666 = 0.722).

Non-Manual Labor

1.00

1.200

Composite effect of salary,
productivity, travel/living and taxes.

Subtotal

Subtotal
SUBCONTRACTS

Subtotal

0.08

0.10

ENGINEERING

0.08

0.08

Contractor

1.00

1.013

1.00

1.000

0.08

0.08

OWNER’S PROJECT
MANAGEMENT

0.06

0.06

Staffing Level

1.00

1.000

Premium Pay

1.00

1.200

Foreign service differential
(composite impact).

Travel/Living

1.00

1.300

Includes relocation costs.

0.06

0.09

1.00

1.10

Subtotal

Licensor
Subtotal

Subtotal
BASE AREA FACTOR

-

Additional complexity of engineering
a foreign project.

See notes.

Percentage splits based on actual estimate.
Some factors are composites based on several components in the detailed estimate.
The factors for each element and overall are for the on-plot process facilities only. They
exclude off-plot and infrastructure costs as well as some minor on-plot process differences
(seawater cooling versus air cooling and associated differences in metallurgy).
The bottom-line factor of 1.10 is applicable to this cost estimate only. Other sources say the
area factor for Saudi Arabia may be more nearly 1.4.

Figure 311-7. Example: Calculating Area Factor for Saudi Arabia

Cost Estimating Manual
Page 311-8

April 1995

312
Escalation
ormally, you would prepare cost estimates for a project on a constant-dollar basis
for a single point in time. To attain greater accuracy when estimating costs for a
multi-year capital project, however, you should factor in escalation over the life of
the project.

N

Three Alternatives for Estimating Escalation
Overall rate, detailed, and intermediate are three alternative techniques
you might apply to determining escalation. Detailed and intermediate
alternatives take more time to set up and are more accurate; choose one of
these methods for a project about to be funded or already underway.
Let’s take a closer look at the three alternative techniques.
Alternative 1: Overall
Rate Basis

1

There are three steps in this technique suitable for the following:
Class 1 and 2 estimates
Class 3 estimates if the forecasted escalation rates for all components
of the project (engineering, materials, labor) are very nearly the same
Checking detailed escalation estimates
ESTIMATE WHEN THE MID-POINT OF EXPENDITURES WILL OCCUR

For a typical refinery or chemical plant project, the mid-point of
expenditure is about two-thirds of the way through the design and
construction period. See the total expenditure curve in Figure 312-1.
2

FIND THE OVERALL ESCALATION FACTOR

Take the EDPI index (Section 301) for that date and divide it by the EDPI
index for the estimate date.
3

FORECAST THE THEN-CURRENT DOLLAR AMOUNT

Multiply that ratio by the constant dollar cost estimate (base estimate) to
get the escalated cost. The difference is the amount of escalation that
shows as a line item in the estimate summary.

Cost Estimating Manual
April 1995

Page 312-1

312

Escalation

TYPICAL PROJECT EXPENDITURE RATES
100

80

70

LA
BO
R

TO
TA
L

40

MA
TER
IAL

50

MECHANICAL COMPLETION

60
EN
GI
NE
ER
IN
G

% OF TOTAL EXPENDITURE

90

30

20

10

0
0

10

20

30

40

50

60

70

80

90

100

110

% DURATION TO MECHANICAL COMPLETION

Figure 312-1. Typical Project Expenditure Rates

Alternative 2:
Detailed Basis
1

There are three steps in this technique.
DEVELOP A LIST OF ALL EXPENDITURES ANTICIPATED FOR THE PROJECT

Include each contract, purchase order, and category of Chevron
expenditures and the date or period during which each will be incurred.
2

CALCULATE THE COST INCREASE

Use an appropriate escalation rate for each item or class of items.



3

Some costs increase in steps. For example, union craft labor rates may change at
mid-year. In this case, estimate the hours during each July-to-June period, apply the
approrpiate labor rates, and estimate escalation for each period.

FIND EACH ITEM’S THEN-CURRENT VALUE

Add the cost increase to the originally estimated amount for each item.

Cost Estimating Manual
Page 312-2

April 1995

Three Alternatives for Estimating Escalation

Alternative 3:
Intermediate Method
1

There are five steps in this technique.
DIVIDE THE CONSTANT-DOLLAR ESTIMATE INTO THREE COMPONENTS

Engineering: Engineering includes the contractor’s home office costs
(design, procurement and project management) as well as Chevron
project and construction management costs.
Materials: Material is defined as the delivered cost of direct materials,
including domestic freight and sales tax. Also include 65 percent of
the total cost of equipment subcontracts (field-erected columns and
furnaces) and 50 percent of the value of bulks subcontracts.
Labor: Labor includes direct labor and construction contractor indirect
field costs. Also include 35 percent of the value of equipment
subcontracts and 50 percent of the value of bulks subcontracts.
A typical split for process plant projects is 18 percent engineering, 48
percent materials, and 34 percent labor.
2

ALLOCATE SPECIAL CHARGES AMONG THESE THREE CATEGORIES DEPENDING
ON THEIR NATURE

Example

List catalyst, spare parts, ocean freight, and duties as materials;
operator training and startup (Chevron only) as engineering.
Or, consider the escalation for special charges as an average of the
three components—engineering, materials, labor.
3

BACK OUT IDENTIFIABLE ITEMS NOT SUBJECT TO ESCALATION AND ADD THEM
IN LATER

Includes items such as cost of land, right-of-ways, permits, and royalties;
also includes expenditures to date and fixed-price commitments that are
not subject to escalation.
4

DIVIDE EACH CATEGORY INTO QUARTERLY EXPENDITURE AMOUNTS

Divide expenditures in one of two ways:
Using project-specific expenditure forecast
Using historical project expenditure patterns (S-curves). See Figures
312-1 and 312-2.

Cost Estimating Manual
April 1995

Page 312-3

Project
Duration
(Quarters)

Percent of Expenditure Category Per Quarter Number:
Expenditure
Category

1

6

Engr.
Matl.
Labor

6.6
0
0

20.4
1.1
0

30.2
17.3
0.4

23.6
46.2
14.4

12.8
27.9
39.4

5.3
7.0
38.4

1.1
0.5
7.4

7

Engr.
Matl.
Labor

5.0
0
0

14.3
0.4
0

25.1
5.8
0

24.3
32.6
3.5

16.7
35.3
20.7

9.3
20.4
36.1

4.2
5.0
32.3

1.1
0.5
7.4

8

Engr.
Matl.
Labor

3.9
0
0

10.7
0
0

19.9
2.4
0

22.7
16.0
0.4

18.8
35.7
8.3

12.3
27.2
24.0

7.2
14.5
32.0

3.4
3.7
27.9

1.1
0.5
7.4

9

Engr.
Matl.
Labor

3.2
0
0

8.3
0
0

15.5
1.1
0

20.3
7.0
0

19.0
26.0
2.5

14.5
30.5
12.3

9.5
21.2
25.0

5.7
10.8
28.3

2.9
2.9
24.5

1.1
0.5
7.4

10

Engr.
Matl.
Labor

2.7
0
0

6.6
0
0

12.2
0.6
0

17.6
3.1
0

18.1
14.7
0.4

15.6
28.7
5.6

11.3
24.3
15.1

7.6
17.5
24.4

4.7
8.2
25.2

2.5
2.4
21.9

1.1
0.5
7.4

11

Engr.
Matl.
Labor

2.3
0
0

5.5
0
0

9.7
0.1
0

15.1
1.8
0

16.6
7.6
0

15.6
21.6
1.9

12.7
26.1
8.3

9.1
19.7
16.8

6.3
14.1
23.3

3.9
6.5
22.5

12

Engr.
Matl.
Labor

2.0
0
0

4.6
0
0

8.0
0
0

12.4
1.1
0

15.2
4.0
0

15.0
13.3
0.4

13.2
23.9
4.1

10.4
22.3
10.3

7.5
16.7
17.9

13

Engr.
Matl.
Labor

1.7
0
0

4.0
0
0

6.7
0
0

10.3
0.7
0

13.6
2.1
0

14.1
7.8
0.1

13.2
18.4
1.5

11.2
22.5
6.0

14

Engr.
Matl.
Labor

1.6
0
0

3.4
0
0

5.7
0
0

8.6
0.4
0

12.0
1.3
0

13.1
4.5
0

12.8
12.2
0.4

15

Engr.
Matl.
Labor

1.4
0
0

3.0
0
0

4.9
0
0

7.4
0
0

10.3
1.1
0

12.1
2.6
0

16

Engr.
Matl.
Labor

1.3
0
0

2.6
0
0

4.3
0
0

6.4
0
0

8.8
0.8
0

17

Engr.
Matl.
Labor

1.2
0
0

2.3
0
0

3.8
0
0

5.6
0
0

18

Engr.
Matl.
Labor

1.1
0
0

2.1
0
0

3.4
0
0

4.9
0
0

2

3

4

5

6

7

8

9

10

11

14

15

16

17

18

19

12

13

2.2
2.0
19.8

1.0
0.5
7.3

0
0
0.1

5.3
11.2
21.5

3.4
5.3
20.3

1.9
1.7
18.1

1.0
0.4
7.2

0.1
0.1
0.2

8.6
18.5
11.9

6.3
14.5
18.1

4.5
9.2
19.9

3.0
4.3
18.5

1.7
1.5
16.6

1.0
0.4
7.0

0.1
0.1
0.4

11.5
20.4
3.1

9.4
20.0
7.6

7.3
15.3
13.1

5.5
12.9
17.6

3.8
7.5
18.5

2.6
3.7
16.9

1.6
1.3
15.4

0.9
0.4
6.8

0.2
0.1
0.6

12.2
7.8
0.1

11.4
16.0
1.3

10.1
19.6
4.6

8.0
17.5
8.8

6.2
13.5
13.7

4.7
10.8
17.0

3.4
6.3
17.1

2.4
3.2
15.6

1.4
1.1
14.4

0.9
0.3
6.6

0.2
0.2
0.8

11.1
1.6
0

11.5
4.8
0

11.2
11.2
0.4

10.2
17.7
2.5

8.6
18.0
5.8

6.9
14.9
9.9

5.4
12.3
14.1

4.2
9.1
16.1

3.0
5.4
15.9

2.1
2.7
14.4

1.3
1.0
13.5

0.8
0.3
6.4

0.3
0.2
1.0

7.7
0.5
0

10.0
1.1
0

10.7
3.0
0

10.7
7.6
0.1

10.1
14.2
1.1

9.0
17.3
3.7

7.5
16.2
6.8

6.1
12.5
10.7

4.7
11.4
14.0

3.7
7.7
15.3

2.7
4.7
14.8

1.9
2.4
13.3

1.2
0.9
12.8

0.8
0.3
6.2

0.3
0.2
1.2

6.7
0.2
0

8.8
0.9
0

10.1
1.9
0

10.2
5.1
0

9.9
10.3
0.4

9.1
15.7
2.1

7.9
16.2
4.6

6.6
14.3
7.7

5.3
11.2
11.3

4.2
10.0
13.7

3.3
6.7
14.4

2.4
4.1
13.9

1.8
2.1
12.4

1.1
0.8
12.1

0.8
0.3
6.0

Figure 312-3. Example Project Escalation Calculation, Detailed Method

20

0.3
0.2
1.4

Escalation Examples

If you are using the historical S-curves, you need to know the starting
point (project release date). This is usually the start of the Front-End
Engineering phase.
You also need to know the number of quarters from project release date to
mechanical completion. Note that Figure 312-2 extends this number by 10
percent to recognize that expenditures continue beyond mechanical
completion as final invoices are paid and claims settled.
5

INDEX THE QUARTERLY EXPENDITURES FOR EACH CATEGORY

Using the three indexes in Section 301, escalate the expenditures for each
quarter. For example, materials costs would be escalated as follows:
Escalated Quarterly Cost =

Qtr Index (EDMI)
× EstimatedQuarterlyCost
EstimateIndex (EDMI)

Escalation Examples
Here are examples of the three escalation estimating methods just
described.
Alternative 1:
Overall Method

Suppose we have prepared a Class 1 estimate for a $10 M project. The
estimate was made in early 1992 (1Q92), using prices in effect at that
time. We expected the project to start in April 1992 (2Q92) and to be
completed 18 months later, in October 1993. Recognizing that cash flow
extends beyond mechanical completion by about 10%, we expect the cash
flow to extend over 20 months, through December 1993 (4Q93).
Using this method, we expect the mid-point of the cash flow to occur at
the two-thirds point in the project, or in the 13th month (2/3 x 20 months),
or April 1993 (2Q93). From Section 301, we note that the EDPI for the
date of the estimate (1Q92) and for the mid-point (2Q93) are 1116 and
1151, respectively. Thus, the escalated cost of the project is estimated to be
(1151/1116) x $10,000 M = $10,314 M

And the amount of escalation would be $314,000.

Cost Estimating Manual
April 1995

Page 312-5

312

Escalation

Alternative 2:
Detailed Method

Alternative 3:
Intermediate Method

We now have a Class 3 estimate for the same project, again in 1Q92
dollars. According to our contracting plan, we will do the design in-house
and will purchase the equipment, pipe spools, tagged instruments, and
electrical switchgear. We plan to have the construction contractor furnish
the other bulk materials (concrete, piping, pipe supports, field wiring, etc.)
as part of the contract. Figure 312-3 shows the expenditures we expect to
incur, by quarter. Using data that differs slightly from Section 301 (source
unspecified), we expect cost escalation to the mid-points of expenditure
for each category as shown in the figure. Note that the hourly cost of
construction labor increases in July of each year. Here the total escalation
is estimated to be $257,000.
This is a summary example; far more detail could be shown by individual
purchase order and for each labor craft.
Back to our Class 1 (or Class 2) estimate. We’ll use the expenditure
patterns shown in Figure 312-2 and the average cost distribution for
process plants of 18% engineering, 48% material, and 34% labor. Figure
312-4 shows the corresponding escalation calculation ($281,000).

Cost Estimating Manual
Page 312-6

April 1995

Escalation Examples

Figure 312-3. Example Project Escalation Calculation, Detailed Method

Cost Estimating Manual
April 1995

Page 312-7

312

Escalation

ENGINEERING ESCALATION (ESTIMATE EDEI = 1336)
QTR/YR

EDEI1

2/92

1348

6.6%

$118.80

$119.87

$1.07

3/92

1364

20.4%

$367.20

$374.90

$7.70

4/92

1371

30.2%

$543.60

$557.84

$14.24

1/93

1385

23.6%

$424.80

$440.38

$15.58

2/93

1394

12.8%

$230.40

$240.40

$10.00

3/93

1406

5.3%

$95.40

$100.40

$5.00

4/93

1413

1.1%

$19.80

$20.94

$1.14

100.0%

$1,800.00

$1,854.73

$54.73

TOTALS

EXPENDITURE2

ESTIMATE, M

ESCALATED3, M

ESCALATION, M

MATERIALS ESCALATION (ESTIMATE EDMI = 856.3)
1

EXPENDITURE2

ESTIMATE, M

ESCALATED3, M

ESCALATION, M

QTR/YR

EDMI

2/92

858.9

0.0%

$0.00

$0.00

$0.00

3/92

862.3

1.1%

$52.80

$53.17

$0.37

4/92

865.7

17.3%

$830.40

$839.52

$9.12

1/93

874.8

46.2%

$2,217.60

$2,265.51

$47.91

2/93

878.6

27.9%

$1,339.20

$1,374.08

$34.88

3/93

876.6

7.0%

$336.00

$343.97

$7.97

4/93

879.6

TOTALS

0.5%

$24.00

$24.65

$0.65

100.0%

$4,800.00

$4,900.90

$100.90

LABOR ESCALATION (ESTIMATE EDLI = 1558)
1

EXPENDITURE2

ESTIMATE, M

ESCALATED3, M

ESCALATION, M

QTR/YR

EDLI

2/92

1567

0.0%

$0.00

$0.00

3/92

1594

0.0%

$0.00

$0.00

$0.00

4/92

1601

0.4%

$13.60

$13.98

$0.38

1/93

1602

14.4%

$489.60

$503.43

$13.83

2/93

1606

39.4%

$1,339.60

$1,380.87

$41.27

3/93

1625

38.4%

$1,305.60

$1,361.75

$56.15

4/93

1641

7.4%

$251.60

$265.00

$13.40

100.0%

$3,400.00

$3,525.03

$125.03

TOTALS

$0.00

TOTAL ESCALATION
QTR/YR

ESTIMATE, M

2
3

ESCALATION, M

2/92

$118.80

$119.87

$1.07

3/92

$420.00

$428.07

$8.07

4/92

$1,387.60

$1,411.34

$23.74

1/93

$3,132.00

$3,209.32

$77.32

2/93

$2,909.20

$2,995.35

$86.15

3/93

$1,737.00

$1,806.12

$69.12

4/93

$295.40

$310.59

$15.19

$10,000.00

$10,280.66

$280.66

TOTALS
1

ESCALATED3, M

Cost indexes were taken from Section 301.
Percentages are from Figure 312-2 for a project of 6 quarters duration.
Calculated as the ratio of the current period index divided by the estimate index times the current period estimated cost.
For example, for the 2nd quarter 1992 (2/92) engineering cost, the estimated escalated cost is calculated as
(1348/1336) x $118.80 M = $119.87 M

Figure 312-4. Example Project Escalation Calculation, Intermediate Method

Cost Estimating Manual
Page 312-8

April 1995

313
Contingency
very estimate is incomplete and inaccurate to some degree. To more closely
reflect the final cost of the work, we add money—called contingency—to the bare
estimate. Unfortunately, some managers view contingency as a slush fund and
consider it a negative reflection on the quality of the estimator’s work. We need
contingency funds to complete the work in the project scope as it is understood at the
time of the estimate, even though we do not know exactly where all the money will
be spent.

E

Contingency in General
While the Table of Estimate classes in Section 103 contains “typical
industry contingency” values for each estimate class, these are illustrative
only. For a specific estimate, base the amount of contingency on an
evaluation of the cost and schedule risks associated with the project. The
resulting percent contingency may well be different from the values
shown in the table.
Figures 313-1 through 313-3 help to explain what is and is not in
contingency.
Selecting
Contingency

Regardless of the way you select contingency, be sure that the amount is
neither too high nor too low.
If contingency is set too high:
A high estimate may kill a good project.
Available capital may be tied up unnecessarily.
These items are project requirements and should be part of the base estimate. Incorporate into
the base estimate any work that you can identify, even if only as a lump-sum allowance. Do not
say, “XXX will be covered by contingency.”
Allowances (design, take-off, and lump sum )
Contracting plan impacts (direct hire vs. subcontracted, incentives, etc.)
Infrastructure requirements
Planned overtime
Predicted escalation
Productivity considerations related to the project execution plan
Regulatory and permit requirements, known or anticipated
Rework consistent with the project execution plan
Special charges, including spare parts
Weather (impact of normal, seasonal conditions)
Figure 313-1. Items in the Base Estimate, not in Contingency

Cost Estimating Manual
April 1995

Page 313-1

313

Contingency

These items are categorized as likely events (known risks) and are covered in contingency:
Design developments within the project objectives
Escalation in excess of allowance in the base estimate
Exchange rate fluctuations
Labor productivity (variation versus the base estimate, including impact of schedule, weather,
and market conditions)
Materials replacement or repair for damage in shipment
Uncertainties associated with new (unproven) technology
Permit requirements beyond those in the base estimate
Pricing variations due to normal market conditions
Quantity deviations (errors), including losses, beyond those in takeoff allowances
Rework in excess of that allowed for in the base estimate
Schedule slippage due to funding delays, minor cash flow restrictions, material delivery delays,
and predictable labor disturbances
Unidentified and unanticipated site conditions
Figure 313-2. Contingency Items

Except for changes in project objectives and cash-flow restrictions (self-imposed by Chevron), the
following items are possible but unlikely (known unknowns) and are not covered under
contingency.
Acts of war, civil unrest
Cash flow restrictions that slow or delay the project in a manner that causes inefficient
execution of the work
Natural disasters (such as hurricanes, floods, earthquakes)
Unanticipated disruptions in labor, such as strikes
Change in project objectives, such as plant capacity, product slate, project location
Unanticipated changes in governmental regulations
When Chevron makes deliberate changes to project objectives (including cash flow restrictions
that result in work inefficiencies) that result in a “new” project, contingency is not expected to
cover the resulting cost changes.
Figure 313-3. Items Neither in Base Estimate nor in Contingency

The extra funds may be spent unwisely.
There is less pressure to manage the project well.
If contingency is set too low:
A poor project may appear more attractive and thus be approved.
An unrealistic cost objective may result.
Inefficient scope reductions may be necessary later to meet the cost
objective.
Creative accounting may result.
The four principal methods for selecting contingency are based on the
estimator’s judgment, a fixed percentage, a Monte Carlo analysis, and a
statistical approach. These methods are discussed next.

Cost Estimating Manual
Page 313-2

April 1995

Contingency in General

Estimator’s Judgment

This is probably the most common method. The amount of contingency is
based on the estimator’s assessment of project risk generally gleaned from
experience.
Advantages of this method:
Easy to use
Effective with experienced estimators
Disadvantages of this method:
Difficult to justify and support; lacks credibility
Unable to state the probability of over-running or under-running the
estimate (needed, for example, for the Decision & Risk Analysis
process)
Fixed Percentage

A fixed percentage is added to the estimate based on parameters such as
the class of estimate or the level of engineering completed. May be
common in an engineering group with repetitive, similar projects where
experience has shown that it works.
Advantages of this method:
Easy to use (mechanical)
Accepted practice (not questioned)
Disadvantages of this method:
Differences between projects not recognized
Cannot state the probability of over-running or under-running the
estimate
Monte Carlo Analysis

For every element of cost in the estimate, three values (most probable
cost, likely high cost, and likely low cost) are aggregated on a computer, 1
using statistical sampling theory. The result is a probabilistic distribution
of project cost that can help to determine the desired contingency.
Advantages of this method:
Probability curve helps evaluate risk versus contingency required
Analysis tends to be best for Class 3 and higher estimates where the
degree of uncertainty is low

1

Commercially available PC software includes the easy-to-use Range Estimating Program, REP-PC (Decision Sciences
Corporation, St Louis, MO) and a more general Lotus add-in, @RISK (Palisade Corporation, Newfield, NY).
Cost Estimating Manual

April 1995

Page 313-3

313

Contingency

Disadvantages of this method:
Difficult to set ranges on values objectively
Subjective, easily manipulated or “gamed”
Risk measured only for the identified components of cost; not
“unknowns”
Results vary widely depending on experience of user
Statistical Approach

This approach compares characteristics of the project with an historical
database of completed projects and uses statistical modeling to determine
contingency. This method is used by Independent Project Analysis, Inc.
(IPA).
Advantages of this method:
Empirically based
Not subject to individual judgment or “gaming”
Disadvantages of this method:
Database does not yet cover all types of projects or facilities
Cost and effort (time) may make it inappropriate for smaller projects



Chevron currently recommends IPA services for evaluating contingency (as well as
schedule and performance) of all projects of $25 M or more, prior to submitting an
appropriation request (i.e., for Class 3 estimates). Some operating companies have
lowered that threshold to $5 M. IPA can also conduct a post-project assessment of
the actual results.

Accuracy Range with Contingency
The accuracy (or variance) of a cost estimate is expressed by its range
around its central or most likely value. When we say that an estimate is
$50 M “plus or minus” 20% percent, we mean that it will probably be
between $40 M and $60 M.
End-Points of the
Range

The end-points of the range are not absolute limits. The cost in our
example could be higher than $60 M or lower than $40 M. Accepted
practice is to use an 80 percent probability range, giving an 80 percent
probability that the final cost will fall between $40 and $60 M. In turn,
this means that there is a 10 percent probability that the value will be less
than $40 M and a 10 percent probability that it will be more than $60 M.
The accuracy range does not predict how far the actual cost outcome
might lie outside these limits.

Cost Estimating Manual
Page 313-4

April 1995

Contingency for Class 1 and 2 Estimates

Accuracy Range
Includes Contingency

An accuracy range applies to an estimate that includes contingency.
Recommended practice is to select a contingency amount such that the
total estimate including contingency will have an equal likelihood of
under-run and over-run (the 50 percent probability point). Adding
contingency to an estimate does not improve its accuracy, it only shifts the
total estimate to the mid-point of its accuracy range.

Accuracy & Time

Accuracy improves over time. For example, the 80 percent probability
range for a Class 1 estimate might be + 25 percent; for a Class 3 estimate
for the same project, it might be + 10 percent (or less). For the latter, there
is a 90 percent chance of not over-running an estimate (set at the 50
percent point) by more than 10 percent—a criteria that some operating
organizations have adopted for their capital appropriations.

Contingency for Class 1 and 2 Estimates
This section covers a method for establishing contingency for an early
cost estimate, specifically Classes 1 and 2.1 This procedure does not apply
to Class 3, 4, or 5 estimates.
Description of Tables
and Graphs



1

Before you begin this procedure, note the accompanying table and graphs,
which help you apply an order-of-magnitude contingency and 50 percent
confidence interval to estimates prepared in the early stages of a project.
A 50 percent confidence interval means that you expect 50 percent of the
possible cost outcomes to fall between the lower and higher contingency
values, 25 percent below the lower end, and 25 percent above the upper
end of the range.
The possible outcomes of early (Classes 1 and 2) cost estimates range
widely. Applying an average contingency value helps to bring the total
cost estimate (including contingency) into the ballpark.
In the steps that follow, you’ll look at contingency setting for Class 1 and
2 estimates, using tables and graphs.
The tables are divided into classes (A & B) that are similar to but not the same as
Chevron’s classes 1 and 2.

Developed for Chevron by IPA.
Cost Estimating Manual

April 1995

Page 313-5

313

Contingency

Steps for
Establishing
Contingency
1

There are four steps involved in establishing contingency:
EVALUATE THE DEGREE OF INNOVATION IN THE PROJECT

Does the project involve new technology, or is the technology proven and
in commercial use (conventional technology)?
2

DETERMINE IF ALL RELEVANT R&D IS COMPLETED FOR NEW TECHNOLOGY

If the project involves new technology, determine if all relevant R&D is
completed.
Specifically, has the team collected sufficient basic data to begin
engineering without potential major design changes resulting from further
discoveries in R&D?
If not, then the project is considered still under development, in which
case the graph and table in Figures 313-4 and 313-5 are applicable.
If the project has completed R&D, then the graph and table in Figures
313-6 and 313-7 apply.
If the project uses conventional technology, then the graph and table
in Figures 313-8 and 313-9 apply.

Figure 313-4. Graph of Contingencies for New Technology Projects with Ongoing R&D

Cost Estimating Manual
Page 313-6

April 1995

Contingency for Class 1 and 2 Estimates

Unclassified
Estimate

Class A
Estimate

Class B
Estimate

132%

105%

78%

90% - 183%

72% - 154%

58% - 113%

Average Contingency
50% Range

Figure 313-5. Table of Contingencies for New Technology Projects with Ongoing R&D

Figure 313-6.Graph of Contingencies for New Technology Projects with R&D Completed

Average Contingency
50% Range

Unclassified
Estimate

Class A
Estimate

Class B
Estimate

69%

56%

45%

43% - 94%

38% - 76%

32% - 62%

Figure 313-7. Table of Contingencies for New Technology Projects with R&D Completed

Cost Estimating Manual
April 1995

Page 313-7

313

Contingency

Figure 313-8. Graph of Contingencies for Conventional Technology Projects

Unclassified Estimate
Average Contingency
50% Range

Class A Estimate

Class B Estimate

44%

34%

26%

31% - 60%

23% - 48%

16% - 40%

Figure 313-9.Table of Contingencies for Conventional Technology Projects

Here is an example of confidence interval. A Class B estimate in Figure
313-9 has an average contingency requirement of 26 percent and a range
of 16-40 percent. This means that
fifty percent of the projects will require between 16 percent and 40
percent contingency.
twenty-five percent of the projects will require more than 40 percent
contingency.
twenty-five percent will require less than 16 percent contingency.

Cost Estimating Manual
Page 313-8

April 1995

Contingency for Class 1 and 2 Estimates

3

DETERMINE PLACEMENT

Determine placement based on the level of project definition by referring
to Figure 313-10.
Give equal weight to the table’s three sections—Site Specific
Parameters, Project Execution Plan, and Engineering Parameters—
when determining the estimate category (Unclassified, Class A, or
Class B) for the contingency.
Mark the boxes in the table that best describe the status of the project
at the time of the estimate.
Mark the line between boxes when a project’s characteristic spans two
boxes.
Select a predominant overall category. If no one category is
predominant, then analyze the effects of both.
4

DETERMINE THE CONTINGENCY AND APPROPRIATE CONFIDENCE INTERVAL

Determine the contingency and appropriate confidence interval based on
the estimate category.
Example of Setting
Contingency

The example is for a project in the early stages of development that
requires an order-of-magnitude contingency estimate so the team can
evaluate the economics surrounding the technology. The team is
considering technology that is licensed from an experienced contractor
and that has been commercially demonstrated on a similar scale, but is
new to Chevron.
Site-Specific Parameters

The current definition status of the project stands as follows:
The project team knows Chevron’s applicable environmental
standards for the project but not the site-specific requirements because
they have not yet selected a location for the project.
The project team has not begun the process of obtaining permits
because the location of the project is unknown.

Cost Estimating Manual
April 1995

Page 313-9

313

Contingency

Project’s
Elements

Characteristics

Estimate
Unclassified

Engineering
Parameters

Class B

Health/Safety
Reviews

Not considered

No reviews, but company
standards considered.

No reviews, but company & sitespecific standards considered.

Permits

Not considered

Appropriate regulations
identified.

Formal application process not
begun; but appropriate parties
contacted.

Plot Plans

No plan

Block layout of major
equipment.

Some detail of physical scope both
onplot and offplot, with preliminary
drawings.

Site-Specific
Parameters

Project
Execution
Plan

Class A

Soils Data

Non-existent

Considered, but not begun.

Testing begun, but incomplete.

Project Execution
Plan

No plan

Core project team &
probable completion date
established coupled with
preliminary engineering
involvement.

Project team & possible contracting
strategies identified, with defined
major milestones.

User/Plant Input

Expressed general
interest, with no
involvement

Involved in process selection. Involved in maintainability and
operability scopes.

Business Unit Input

None

Engineering assessment of
Scope of project identified.
technology; understanding of
general business climate.

Percentage Total
Engineering

No engineering

Some engineering input, less No more than 5 percent complete,
than 3 percent complete.
Prelim. P&ID’s and heat and
materials balances.

SITE-SPECIFIC PARAMETERS
Health/Safety Reviews: Considers all local, state, and federal government requirements (e.g., local worker safety, equipment safety,
and OSHA standards) for the site when assessing the extent to which health and safety requirements are incorporated into the cost
estimate.
Permits/Environmental Requirements: An assessment of the extent to which environmental requirements (e.g., applicable
solid-waste-disposal standards, all EPA requirements,such as National Clean Air Act, and any specific local requirements) have
been incorporated in the cost estimate.
Unit Configurations and Plot Plans: Includes the extent to which equipment configurations are final and process units (on-site and
off-site) are configured to the site.
Soils, Hydrology and Analogous Data: Includes an assessment of the quality of the soils, hydrology, and analogous data available
when preparing the estimate. Taken together, these data provide an overall picture of the site, including its qualities and limitations,
as a location for the proposed project.
Soils data refers to a set of information that describes the site technically and includes items such as the grade of the site, how
much weight the soil can bear, whether there are any hidden subsurface structures or unusual geologic formations, and
whether the soil contains any materials requiring cleanup prior to the initiation of construction.
Hydrology data refers to the distribution and circulation of water in, on, and around the site.
Analogous data is intended to capture information regarding the quality and suitability of existing facilities that will be used on
the project such as piping support, utilities, etc.
PROJECT EXECUTION PLAN
Project Execution Plan: Evaluates the extent to which a fully-integrated project schedule (with major and minor milestones), a
contracting strategy, and a quality assurance plan have been developed.
ENGINEERING PARAMETERS
User/Plant Input: Evaluates the extent to which the local operating group has become involved in the progress of the project.
Business Unit Input: Evaluates the extent to which the business group (Operating Company Management) has become involved in
the progress of the project.
Percentage Total Engineering: Refers to projects with less than five percent of the project’s total design complete.
Figure 313-10. Measuring Early Front-End Loading

Cost Estimating Manual
Page 313-10

April 1995

Contingency for Class 1 and 2 Estimates

Given that Chevron has some knowledge of technology and its
physical requirements, block layouts of equipment exist but there is
little detail.
Although the project will be located at a Chevron installation, soils
and hydrology data are not available because the site is unknown. This
suggests that such data have been considered but testing has yet to
begin.
These four items suggest that the estimate class is predominantly in the
Class A category.
Project Execution Plan

The status of the project execution plan is as follows:
A project team consisting of a project manager, business
representative, operations representative, and lead engineer has been
assigned to the project.
Beyond this core team, only tentative assignments have been made for
other personnel.
Management issued a directive about commercializing the technology
within a given time frame, but without a specific date.
The project team has addressed the project’s milestones tentatively,
but not in full detail. The milestones are based on preliminary
engineering studies.
This status places the project execution plan between the Class A and
Class B categories.
Engineering Parameters

The engineering status of the project is as follows:
Operating company input has centered around process selection and is
moving toward evaluating the maintenance and operational
requirements of the technology being investigated for this project.
The business unit has yet to make the capacity requirements of the
plant clear, but has indicated a reasonable range.
Overall, about three percent of the project’s design is completed.

Cost Estimating Manual
April 1995

Page 313-11

313

Contingency

Marked-Up Table

Figure 313-11 is a marked copy of the table from Figure 313-10,
Measuring Early Front-End Loading. It includes the information from the
example.
The project definition suggests that the project lies somewhere
between the Class A and Class B categories, but leans toward Class A.
Because the technology being considered is proven even though new
to Chevron, the data in Figures 313-8 and 313-9 applies.
Based on the information provided, a contingency of approximately 35
percent with a 50 percent confidence interval of 25 - 50 percent is
appropriate as suggested by the table and graph.

Project’s
Elements

Characteristics

Estimate
Unclassified

Class A

Class B

Health/Safety
Reviews

Not considered

No reviews, but company
standards considered.

No reviews, but company &
site-specific standards
considered.

Permits

Not considered

Appropriate regulations
identified.

Formal application process
not begun; but appropriate
parties
contacted.

Plot Plans

No plan

Block layout of major
equipment.

Some detail of physical scope
both onplot and offplot, with
preliminary drawings.

Soils Data

Non-existent

Considered, but not begun. Testing begun, but incomplete.

Project
Execution
Plan

Project Execution
Plan

No plan

Core project team &
probable completion date
established coupled with
preliminary engineering
involvement.

Project team & possible
contracting strategies
identified, with defined
major milestones.

Engineering
Parameters

User/Plant Input

Expressed general interest,
with no involvement

Involved in process
selection.

Involved in maintainability
and operability scopes.

Business Unit Input

None

Scope of project identified.
Engineering assessment
of technology; understanding of general business
climate.

Percentage Total
Engineering

No engineering

Some engineering input,
less than 3 percent
complete.

Site-Specific
Parameters

No more than 5 percent
complete, Prelim. P&ID’s and
heat & material balances.

Figure 313-11. Measuring Early Front-End Loading—Completed for Example Project

Cost Estimating Manual
Page 313-12

April 1995

400
401

Direct Cost Data—
Equipment (Major Material)

Columns, Vessels and Reactors (CS and Alloy)
Cost Data for Pressure Vessels, Columns, and Reactors
Cost Data for Alloy Steel Pressure Vessels and Columns

402

Tanks
Cost Data for Tanks & Spheres

403

Heat Exchangers
Cost Data for Shell-and-Tube Heat Exchangers
Cost Data for Hairpin Heat Exchangers
Cost Data for Air-Cooled Heat Exchangers

404

Fired Process Heaters
Cost Data for Shop-Fabricated Furnaces

405

Pumps
Selection Curves & Cost Data for Pumps

406

Electric Motor Drivers
Cost Data for Electric Motors

407

Steam Turbines
Cost Data for Steam Turbines

408

Mechanical Equipment
Cost Data for Compressors

Cost Estimating Manual

Sources of Data

Sources of Data
This section identifies and describes various sources of information for
estimating data. The most obvious source of data is your own experience
with completed projects, including equipment and bulk materials pricing,
local labor rates, sales taxes, operating company G&A rates, and
contractor costs such as all-in labor rates, construction equipment rental,
and overhead costs.
Another source of data at some refining locations is a price list of
materials stocked in the local storehouse. If your project is relatively
small, that price list may accurately reflect what you’ll pay for stocked
material. Some operating organizations have standing purchase orders for
selected items and contract agreements for work such as hot-tapping
services. These can serve as good estimating references.
Figure 400-1 lists references by type of data. It is followed by a bibliography of published cost-estimating information. Here is a summary of
what you’ll find in several of these references:
Richardson

Means

Page

This annual publication of Richardson Engineering Services is a fourvolume set of estimating data. Volumes 1-3 are organized according to the
CSI code of accounts (described in Appendix D). Volume 4 includes
process equipment costs. The materials pricing is reasonably accurate,
especially for bulk materials, although the items priced do not always
meet petroleum/petrochemical industry specifications. The labor
manhours in Richardson tend to be low for larger projects. They state that
their manhours are for small local contractors, and that if you’re using a
national contractor (i.e., one without a stable work force), the manhours
need to be increased by 10-15%. They also publish a semiannual Cost
Trend Reporter that contains current individual craft and crew labor rates
for a number of U.S. locations; these can be used to adjust the Richardson
data to your locale.
This series of publications by the R. S. Means Company gives cost and
manhour data, primarily for buildings-type projects, organized in CSI
format.
This series by John S. Page, published by Gulf Publishing Company,
contains unit manhour data for a variety of construction operations. It is a
good supplement for the data in Section 421 of this manual.

Cost Estimating Manual
April 1995

Page 400-1

400

Direct Cost Data (Major Material)

Marshall Valuation
Service

This is primarily an insurance valuation manual for various types of
buildings and related improvements, but the data is also useful for
estimating.
Materials (Bulks) and
Subcontract Pricing

Richardson, although they don’t always meet petroleum/petrochemical
standards.
Means Building Construction Costs and Open Shop Construction Costs.
Primarily for building and civil works.

National Construction Estimator. Also primarily for buildings and civil
works.
Labor Hours

Richardson. Note the adjustments suggested on page 32 of section 1-0
regarding local versus national contractors.
Means’ manuals (various). Buildings and civil works.

National Construction Estimator. Buildings and civil works.
Page’s manuals (various) have data that is suitable for the petroleum/
petrochemical industry.
Labor Rates

Richardson. The subscription cost includes a semiannual bulletin
containing union rates for individual crafts and for crews for many US
and Canadian locations.
Means Building Construction Costs and Open Shop Building
Construction Costs. A table inside the back cover shows rates for union
and open shop labor, respectively.

National Construction Estimator contains a table of average rates by craft.
Prevailing wage data published by the various states. The California
data, for example, gives wage and fringe benefit data for many crafts by
location and skill level; it is updated twice a year.
Cost Indexes

Nelson-Farrar Indexes, published monthly in the “Oil & Gas Journal.”
Our EDLI is the same as the Labor component of their refinery
construction indexes. Our EDMI was based on their Materials and
Miscellaneous Equipment indexes until the late 1980’s. They also publish
refinery
operating cost indexes.
ENR cost indexes, published weekly in “ENR” magazine. Their Skilled
and Common Labor indexes are the basis for the Nelson-Farrar labor
index and, thus, for our EDLI.
“Chemical Engineering” magazine, indexes published monthly (usually
the last page in the magazine). Their Engineering and Supervision index,
after adjustment for productivity, was used as a basis for our EDEI until
the mid-1980’s.
Bureau of Labor Statistics publishes cost indexes for a variety of
commodities and commodity groupings. The Wholesale Price Index for
Industrial Commodities, excluding Fuels and Energy, is a fair proxy for
construction materials costs.
Marshall Valuation Service contains indexes for building construction,
updated monthly.

Area Factors (or
Location Factors)

Means Building Construction Cost Data, and its companion for open
shop construction, contain “city cost indexes” for adjusting their data to
specific locales.
Marshall Valuation Service contains location adjustment factors for its
data.

National Construction Estimator contains a table of “area modification
factors” for 402 US locations.
Figure 400-1. Sources of Data

Cost Estimating Manual
Page 400-2

April 1995

Bibliography

Bibliography
The following cost-estimating publications are available in CRTC
Facilities Engineering Unit library.
General Prevailing Wage Determination, State of California Department
of Industrial Relations, periodic.
Kiley, Martin W., and Moselle, William M., editors, National
Construction Estimator, Craftsman Book Co., Carlsbad CA, annual;
with floppy disk.
Mahoney, William D., editor, Means Man-Hour Standards for
Construction, R. S. Means, Kingston, MA, 1988.
Marshall Valuation Service, Marshall & Swift, Los Angeles CA, annual.
Page, John S., Conceptual Cost Estimating Manual, Gulf Publishing
Company, Houston, TX, 1984.
Page, John S., Cost Estimating Manual for Pipelines and Marine
Structures, Gulf Publishing Company, Houston, TX, 1977.
Page, John S., Estimator’s Electrical Man-Hour Manual, Gulf Publishing
Company, Houston, TX, 1979.
Page, John S., Estimator’s Equipment Installation Man-Hour Manual,
Gulf Publishing Company, Houston, TX, 1978.
Page, John S., Estimator’s General Construction Man-Hour Manual,
Gulf Publishing Company, Houston, TX, 1977.
Page, John S., Estimator’s Man-Hour Manual on Heating, Air
Conditioning, Ventilating, and Plumbing, Gulf Publishing Company,
Houston, TX, 1961.
Page, John S., Estimator’s Piping Man-Hour Manual, Gulf Publishing
Company, Houston, TX, 1987.
Process Plant Construction Estimating Standards, Richardson
Engineering Services, Inc., Mesa AZ, 4 volumes, annual.
Waier, Phillip R., editor, Means Building Construction Cost Data,
R. S. Means Co. Inc., Kingston MA, annual.
Waier, Phillip R., editor, Means Open Shop Building Construction Cost
Data, R. S. Means Co. Inc., Kingston MA, annual.

Cost Estimating Manual
April 1995

Page 400-3

401
Columns, Vessels, and Reactors (CS and Alloy)
his section describes estimating the cost of a column or pressure vessel. To do so,
you calculate its gross fabricated weight and then prepare the cost estimate. To
prepare the estimate, you can
work with a cost capacity curve or equation, or
multiply the gross fabricated weight by a dollar-per-pound ratio

T



If you know the gross fabricated weight, skip the information on calculating the weight
and go directly to either "Cost Data for Pressure Vessels, Columns, and Reactors” or
“Cost Data for Alloy Steel Pressure Vessels & Columns,” later in this section.

Calculating the Weight
You need to know certain design data (diameter, length, design pressure,
and temperature) to estimate the vessel’s weight. If possible, review the
process flow diagrams or ask a process engineer for help.
If you do not have the information, do a preliminary design of a pressure
vessel either manually or by using a computer program. See Figure 401-1
for resources.

For

In This Manual

Other Sources

Designing a Pressure Vessel Manually

ASME Boiler & Pressure Vessel Code,
Section VIII, Division 1

Designing a High-Pressure Vessel
Manually

ASME Boiler & Pressure Vessel Code,
Section VIII, Division 2

Mechanical & Structural Design

Chevron Pressure Vessel Manual,
Volumes 1 & 2

Updating Costs to Current Date

Section 301

Figure 401-1. Resources for Estimating Columns and Vessels

Cost Estimating Manual
April 1995

Page 401-1

401

Columns, Vessels, and Reactors (CS and Alloy)

Gross Fabricated
Weight

DEFINITION

The gross fabricated weight is equal to the net fabricated weight times a
factor that allows for plate over-thickness tolerance, clips, bosses, and tray
supports as follows:
W(Gross Fabricated)=W(Net Fabricated) x Fv (or Fc)
Where:
For Vessels:
For Columns:

Net Fabricated
Weight

Fv = 1.0 + 0.10 (3,000/WNF)0.5
Fc = 1.0 + 0.225 (10,000/WNF)0.8

DEFINITION

The net fabricated weight is the sum of the following component weights
(pounds):
WNF = W(shell) + W(heads) + W(skirt) + W(saddles) + W(nozzles) + W(manways) + W(trays)

Weight of Shell

W(shell) = 0.890 x Ts (D + Ts) x Hs
Where:
Ts = Commercial plate thickness in inches
D = Inside diameter in inches
Hs= Tangent-to-tangent height (length) in inches

Steel plate is available in thickness increments of 1/16 inch up to 2 inches,
and 1/8-inch increments above 2 inches (design thickness plus corrosion
allowance, rounded up to commercial plate thickness).
Weight of Heads

W(heads) = 0.58 × D1.9 x Th

(per head for ellipsoidal heads)

Where:
Th = Design head thickness in inches, including corrosion allowance and forming
allowance (see Figure 401-2)
D = Inside diameter in inches

Thickness without
Forming Allowance

≤ 150" OD

>150" OD

< 1"

1/16"

1/8"

≥ 1", but < 2"

1/8"

1/8"

≥ 2", but < 3"

1/4"

1/4"

≥ 3", but < 3.75"

3/8"

3/8"

≥ 3.75", but < 4.25"

1/2"

1/2"

≥ 4.25"

3/4"

3/4"

Figure 401-2. Forming Allowance for All Heads except Hemispheric

Cost Estimating Manual
Page 401-2

April 1995

Calculating the Weight

Weight of Skirt

W(skirt) = 0.890 × Tsk × (D + Tsk) × Hsk
Where:
Tsk = Skirt thickness in inches
D = Skirt inside diameter in inches
Hsk = Skirt height in inches

Weight of Saddles

W(saddles) = 0.877 × (Do)1.59

(two medium-weight, 120o saddles)

Where:
Do = Outside vessel diameter in inches

Weight of Nozzles

Columns
W(nozzles) = 20.14 x (capacity, cu.ft.)0.48

Nozzle weight: Not to exceed 2500 lbs
Vessels

For vessels ≤ 36 inches in diameter, allow two nozzles weighing a total
of 100 lbs
For vessels > 36 inches in diameter:, allow two nozzles weighing a total
of 150 lbs
Weight of Manways

W(manways)

See Figures 401-3 through 401-5.

Number of Trays

Assumed # of 18-inch
Manways

≤ 10 trays:

2

> 10 trays and ≤ 30

3
Estimate1

> 30 trays
1

Manways = Shell Length (feet) + 2
30

For packed columns: A manway is required above and
below each bed.
Figure 401-3. Calculating the Number of Manways for Columns

Cost Estimating Manual
April 1995

Page 401-3

401

Columns, Vessels, and Reactors (CS and Alloy)

Diameter

Size

≤ 36 inches

4-inch inspection
openings

> 36 inches

18-inch manways

Volume

# of Manways

< 315CF

One

> 315CF

Two

Figure 401-4. For Vessels, Estimating Size
of Openings and Number of Manways by Volume

Design
Pressure (psi)

Weight (lbs)
4" Inspection Opening

Weight (lbs)
18" Manway

0-150

80

500

150-300

120

600

300-400

150

700

400-500

190

800

Figure 401-5. Estimating the Weight of Inspection Openings and Manways
Based on Design Pressure

Weight of Trays

W (trays)

Calculate the weight of carbon steel or stainless steel sieve trays from the
following equations. The weight includes
ten-gauge tray plate
3/8-inch downcomers
manways
intermediate structural supports
shell support rings and bolts
The equations are based on column diameters from 40 to 140 inches.
Assumptions:
Full cross-flow trays for diameters of 68 inches or less
Half cross-flow trays for larger diameters
You can extrapolate weights of trays outside the 40-to-140-inch diameter
range, with the possibility of inaccuracies.
Full Cross-Flow: W(trays) (lbs) = 0.785 × D1.47
Half Cross-Flow: W(trays) (lbs) = 0.244 × D1.82
Where
D = Shell inside diameter in inches

Cost Estimating Manual
Page 401-4

April 1995

Example Weight Calculation

Example Weight Calculation
Design
Information

Horizontal pressure vessel, 7 feet inside diameter by 18 feet long,
designed for 300 psig, carbon steel material (A-285-C). An ASME Code
calculation shows that the shell and head thicknesses will be 1.25 inches
and 1.168 inches, respectively (including 1⁄8" corrosion allowance).
Because the volume is greater than 315 cubic feet, assume two manways.
Using the formulas above, the weight calculation is thus:
W(shell)

=

W(heads)

=

W(skirt)

20,486 lbs
2 × 3,069

(not applicable)

W(saddles)

=

1,054 lbs

W(nozzles)

=

150 lbs

W(manways)

=

W(trays)

2 × 600

=

1,200 lbs

(not applicable)

Net Fabricated Weight
Factor

=

29,028 lbs
1.032

=

Gross Fabricated Weight

Cost Calculation

= 6,138 lbs

=

30,000 lbs (rounded)

CARBON STEEL

To estimate the cost of the above horizontal carbon steel vessel, use
equation 1 in “Cost Data for Pressure Vessels, Columns, and Reactors”
later in this section.
Cost, $ = 76.5 × (30000 lbs)0.63 = $50,600

This cost is at EDMI = 850. Use the data in Section 301 to adjust it to the
current date. Also use the adjustment factors shown with equation 1 if
your vessel requires full x-ray or stress relief.

Cost Estimating Manual
April 1995

Page 401-5

401

Columns, Vessels, and Reactors (CS and Alloy)

Cost Calculation

ALLOY STEEL VESSEL

Suppose the above vessel is to be fabricated from 21⁄4 Cr-1Mo steel.
Assuming that the weight is still 30,000 lbs, and the corresponding steel
vessel cost is $50,600 (as calculated above), the cost of the alloy vessel
may be estimated as follows1: (Refer to “Cost Data for Alloy Steel
Pressure Vessels & Columns” later in this section.),
1

CALCULATE THE ADJUSTED MATERIAL COST

Approximately 55% of the cost (or $27,800) represents the cost of the
steel plate. From the data in Figures 401-10 through 401-12, the plate
costs for SA-285-C and SA-387 (21⁄4-1Mo) are $0.41 and $0.82 per pound,
respectively, for plate less than 11⁄2 inches thick. The adjusted material cost
is then
$27,800 × ($0.82/$0.41) = $55,600

Although the plate costs shown are at EDMI = 855 while the vessel cost is
at a different EDMI, the ratio of the plate costs is independent of EDMI
and need not be adjusted.
2

CALCULATE THE ADJUSTED LABOR COST

Approximately 45% of the cost (or $22,800) represents the cost of
fabrication labor and related shop overheads. Figure 401-13 gives
multipliers for the labor cost relative to carbon steel. The adjusted labor
cost is
$22,800 × 1.30 = $29,600
3

CALCULATE THE TOTAL ESTIMATED COST

The total estimated cost for the alloy vessel is the sum of the material and
labor costs, or
$55,600 + $29,600 = $85,200

This cost may need adjustment relative to EDMI = 850 and for extras
such as full x-ray or stress relief.

1

The shell and head thicknesses must be re-calculated using the allowable stress for the new material which may change the
weight (ignored here).
Cost Estimating Manual

Page 401-6

April 1995

Cost Correlations

Cost Data for Pressure Vessels,
Columns, and Reactors
From the gross fabricated weight of a column or vessel, you can estimate
its cost using one of the graphs or equations in this section. As the costs
are at EDMI = 850, you must update them to the current date (see Section
301).
The following notes apply to all correlations unless otherwise indicated:

Cost Correlations

Cost curves are based on final purchased costs and include spot x-ray,
internals, and domestic freight to the job site.
Stress relief and sales tax are excluded.
Equation 1

HORIZONTAL & VERTICAL CS VESSELS

$ = 76.5 × (Weight, lbs)0.63

EDMI = 850

For 100 percent x-ray, add 5 percent.
For full stress relief, add 5 percent.
See also Figure 401-6.

200,000

100,000

DOLLARS

50,000

20,000

10,000

6,000

4,000
900

2,000

5,000

10,000

20,000

50,000

100,000

200,000

POUNDS

Figure 401-6. Carbon Steel Pressure Vessels: Horizontal & Vertical

Cost Estimating Manual
April 1995

Page 401-7

D
A
T
A

401

Cost Data for Pressure Vessels, Columns, and Reactors

DOLLARS

D
A
T
A

POUNDS

Figure 401-7. Carbon Steel Pressure Vessel Heavy Wall Unclad Horizontal
and Vertical

Equation 2

HEAVY WALL HORIZONTAL & VERTICAL CS VESSELS (UNCLAD)

$ = 59.5 x (Weight, lbs.)0.68

EDMI =850

Cost includes stress relief and 100 percent x-ray (see Figure 401-7).
Equation 3

CARBON STEEL COLUMNS

$ = 33.0 x (Weight, lbs)0.77

EDMI = 850

For 100 percent x-ray, add 5 percent.
For full stress relief, add 5 percent.
See Figure 401-8.
1,000,000

DOLLARS

500,000

300,000

200,000

100,000

60,000
10,000

20,000

30,000

50,000

100,000

200,000

400,000

600,000

POUNDS

Figure 401-8. Carbon Steel Columns

Cost Estimating Manual
Page 401-8

April 1995

Cost Correlations

Equation 4

ISOCRACKER-HYDROTREATER

Shop-fabricated costs range from $4.85/lb. to $5.00/lb (per recent vendor
data); EDMI = 850.
Materials of construction are usually 2-1/4 Cr-1Mo with SS cladding.
Pressures range up to 3200 psig.
Cost includes stress relief and x-ray.
Equation 5

MISCELLANEOUS REACTORS

$ = 16.6 x (Weight, lbs.)0.82

EDMI = 850

DOLLARS

Pressure and temperature range from 320 psig @ 850°F to 1070 psig
@ 850°F.
Shell thickness ranges from .625 inch to 3.5 inches.
Materials of construction are C-1/2 Mo, mixture of clad (321 SS or
347 SS), and unclad reactors.
Cost includes freight, stress relief, and x-ray.
See Figure 401-9.

POUNDS

Figure 401-9. Miscellaneous Reactors

Cost Estimating Manual
April 1995

Page 401-9

D
A
T
A

401

D
A
T
A

Cost Data for Alloy Steel Pressure Vessels & Columns

Cost Data for Alloy Steel Pressure
Vessels & Columns
Plate Cost Data

The plate cost data shown in Figures 401-10 through 401-12 include
list prices at the EDMI shown in each table
the base price plus extras for width and thickness, ASTM
specification, heat treating as noted, and freight to the West Coast
notes regarding plate size limitations, minimum quantity assumptions,
and extras
ASTM
Spec’n2

Grade or
Class

Thickness
Inches

Normal
Use

$/Lb @
EDMI = 8551

Notes

-

3⁄
8

through 11⁄2

Structural

0.40



SA-285C

All

3⁄
8

11⁄2

Pressure
Vessel

0.41
0.48

—3, 5

SA-516

All

3⁄
8

through 11⁄2
2 through 3

Pressure
Vessel

0.44
0.51

—4, 5
—3, 4, 5

SA-36

1
2

3
4
5

through
2

Prices for widths over 90 through 96 inches; lengths, 240 through 600 inches; minimum
quantities of 20,000 lbs.
Generally, higher pressure and temperature processes require higher strength and quality
of pressure vessel steel. The price differences for carbon steel are insignificant when
estimating.
Prices includes normalizing.
Price includes Charpy V-notch testing.
Figures 401-6 & 401-8 contain a mix of ASTM specifications. Assume SA-285 or SA-516 for
selecting the base carbon steel plate cost.

Figure 401-10. Hot Rolled Carbon Plate1

ASTM
Spec’n
SA-204
(C-1⁄2Mo)

Grade
or Class
B, C

Gr11 Cl 1

SA-387
(21⁄4Cr-1Mo)

Gr22 Cl 1

2
3

Normal Use

$/Lb @
EDMI = 8551

Notes

3⁄
8
through 3
4 through 6

Coke Drums

0.78
1.00
0.80

2
2
2

Hydroprocessing Units

0.79
1.00
0.80

2
2
2

Reactors
Hydroprocessing Units

0.82
1.00
0.90

2
3
3

1⁄
2

SA-387
(11⁄4Cr-1⁄2Mo)

1

Thickness Inches

1⁄
2

through 11⁄2
2 through 3
4 through 6

1⁄
2

through 3
4 through 6
8

Prices for widths over 90 through 96 inches; lengths, 240 through 600 inches; minimum
quantities of 20,000 lbs.
Prices include normalizing.
Price includes quench and tempering (Q&T).

Figure 401-11. Hot Rolled Alloy Steel Plate1

Cost Estimating Manual
Page 401-10

April 1995

Labor Cost Data

ASTM
Spec’n

Grade
or Class

1

Normal Use

$/Lb @
EDMI = 8551

304

3⁄
8

through 3

Chemical Plants

1.55

304L

3⁄
8

through 3

Chemical Plants

1.65

through 11⁄4

Chemical Plants

1.90

3⁄
8

316

SA-240

Thickness Inches

316L

3⁄
8

through 3

Chemical Plants

2.02

321

3⁄
8

through 3

Chemical Plants High Temp.

2.95

347

3⁄
8

through 3

Chemical Plants High Temp.

2.95

Prices for widths over 48 through 96 inches; lengths, 120 through 420 inches; minimum
quantities of 20,000 lbs.

Figure 401-12. Stainless Steel Plate1 Hot Rolled, Annealed, and Descaled

Labor Cost Data
Item

Multiplier

Carbon Steel

1.00

C-1⁄2Mo

1.15

11⁄4Cr-1⁄2Mo

1.25

21⁄4Cr-1Mo

1.30

304 Stainless Steel

1.35

316 Stainless Steel

1.35

321 Stainless Steel

1.40

347 Stainless Steel

1.50

Figure 401-13. Cost Multipliers for Alloy Steel Labor

Cost Estimating Manual
April 1995

Page 401-11

D
A
T
A

402
Tanks
his section presents the basis for estimating the cost of spheres and these types of
tanks:
Cone-roof tanks (shop-fabricated and field-erected)
Floating roof tanks (field-erected)
Cone-roof tanks with aluminum floating pans (field-erected)
Dome-roof tanks (field-erected)
Open-top tanks (field-erected)
Horizontal storage tanks

T

Estimating Process
To estimate the cost of a tank, you need to know its capacity in barrels.
You then apply one of the graphs or equations on the following pages.
You’ll input the amount of storage needed in barrels into the proper
equation and then calculate the cost.
See also the resources in Figure 402-1.

For

In This Manual

Updating Costs to the
Current Date

Other Sources

Section 301

Costs for Various Sizes of
Spheres

Richardson’s Process Plant Construction
Estimating Standards, Account 100-366

Design Formulas for Allowable
Pressures

Chevron Pressure Vessel Manual

Figure 402-1. Resources for Cost Estimating Tanks & Spheres

Cost Estimating Manual
April 1995

Page 402-1

402

Cost Data for Tanks & Spheres
Data for Estimating Tanks & Spheres
The following notes apply to all correlations unless noted
otherwise:
Cost curves are based on carbon steel tanks and include domestic
freight to the job site.
Field-erected tanks include erection on foundations.
Foundation and site work are excluded.
Shop-fabricated costs are at EDMI = 850, and field-erected tanks are
at EDPI = 1100, so you must update them to the current date (see
Section 301).
Equation 1

FIELD-ERECTED CONE ROOF TANKS (EDPI = 1100)

$ = 636 × (Barrels)0.589

See also Figure 402-2.

DOLLARS

D
A
T
A

Cost Data for Tanks & Spheres

BARRELS

Figure 402-2. Field-Erected Cone Roof Tanks. EDPI = 1100

Cost Estimating Manual
Page 402-2

April 1995

Data for Estimating Tanks & Spheres

FIGURE 4021 2
22,000

D
A
T
A

20,000

18,000

DOLLARS

16,000

14,000

12,000

10,000

8,000
80

100

200

400

600

BARRELS

Figure 402-3. Shop-Fabricated Cone Roof Tanks, Excluding Field Erection.
EDMI = 850

Equation 2

SHOP-FABRICATED CONE ROOF TANKS (EDMI = 850)

$ = 1547 × (Barrels)0.408

Does not include field erection.
See also Figure 402-3.
Equation 3

FIELD-ERECTED FLOATING ROOF TANKS (EDPI = 1100)

$ = 287 × (Barrels)0.696

DOLLARS

See also Figure 402-4.

BARRELS

Figure 402-4.Field-Erected Floating Roof Tanks. EDPI = 1100

Cost Estimating Manual
April 1995

Page 402-3

402

Cost Data for Tanks & Spheres

DOLLARS

D
A
T
A

BARRELS

Figure 402-5. Field-Erected Cone Roof Tanks with Aluminum Floating Pans. EDPI
= 1100

Equation 4

FIELD-ERECTED CONE ROOF TANKS WITH ALUMINUM FLOATING PANS
(EDPI = 1100)

$ = 4767 × (Barrels)0.420

See also Figure 402-5.
Equation 5

FIELD-ERECTED DOME ROOF TANKS (EDPI = 1100)

$ = 5049 × (Barrels)0.352

DOLLARS

See also Figure 402-6.

BARRELS

Figure 402-6. Field-Erected Dome Roof Tanks. EDPI = 1100

Cost Estimating Manual
Page 402-4

April 1995

Data for Estimating Tanks & Spheres

GU

0

6

80,000

D
A
T
A

DOLLARS

70,000

60,000

50,000

40,000
1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

BARRELS

Figure 402-7. Field-Erected Open Top Tanks. EDPI = 1100

Equation 6

FIELD-ERECTED OPEN TOP TANKS (EDPI = 1100)

$ = 560 × (Barrels)0.579

See also Figure 402-7.
HORIZONTAL STORAGE TANKS

You can estimate LPG or ammonia storage tanks as horizontal pressure
vessels with hemispherical heads. See Section 401.

Cost Estimating Manual
April 1995

Page 402-5

402

Cost Data for Tanks & Spheres

SPHERES

D
A
T
A

See the following table (Figure 402-8) for allowable pressures (psig) for
various sizes of spheres listed in Richardson’s Process Plant Construction
Estimating Standards, Account 100-366.
Allowable pressures are based on design formulas in Chevron’s Pressure
Vessel Manual, assuming a corrosion allowance of 1/16 inch and
A-515-70 steel plate.

Diameter (ft)

Thickness (in)
0.375

0.5

0.625

0.75

20

77

108

139

170

25

62

87

111

136

30

52

72

93

114

35

44

62

80

97

40

39

54

70

85

45

34

48

62

76

50

31

43

56

68

55

28

39

51

62

60

26

36

46

57

Figure 402-8. Allowable Pressures (psig) for Various Sizes of Spheres

Cost Estimating Manual
Page 402-6

April 1995

Estimating Shell-and-Tube and Hairpin Heat Exchangers

December 1995

403
Heat Exchangers

his section covers cost estimating for two categories of heat exchangers. In the
first category are shell-and-tube and hairpin heat exchangers; in the second, air
cooled heat exchangers.
If you know the size of the heat-transfer area for your heat exchanger, go directly to
“Cost Data for Shell-and-Tube Heat Exchangers,” “Cost Data for Hairpin Heat
Exchangers,” or “Cost Data for Air-Cooled Heat Exchangers” later in this section.

T

Estimating Shell-and-Tube and Hairpin Heat Exchangers
To estimate these heat exchangers, you must know the heat transfer area.
You can calculate it from the following information:
The duty
The heat transfer coefficient
The log mean temperature difference
The temperature correction factor
The number of shells required
Selection and design criteria for heat exchangers are published in detail in
Chevron’s Heat Exchanger and Cooling Tower Manual. The manual
contains guidelines for determining which fluid should go on each side
of the exchanger. It also contains the Tubular Exchanger Manufacturers
Association (TEMA) nomenclature for describing shell-and-tube heat
exchangers. TEMA includes a simple code for designating the size and
type:
The size is the inside diameter of the shell followed by the length of
the tubes (both measurements are in inches).
The type consists of three letters describing the front head, shell, and
rear head, in that order.

Cost Estimating Manual
December 1995

Page 403-1

403

Heat Exchangers

Heat Exchanger Worksheets
There are two key worksheets for estimating heat exchangers—the
Exchanger Design & Sizing Worksheet and the Cost Estimating Worksheet for Heat Exchangers. (This section includes full-size blanks for
photocopying.)
Steps for Completing
the Design Worksheet
1

Five main steps to complete an Exchanger Design & Sizing Worksheet
(Figure 403-1) are as follows:
CALCULATE THE LOG MEAN TERMPERATURE DIFFERENCE (LMTD)

From the process design information, enter the inlet and outlet
temperatures for the two fluids, assuming counterflow. (Refer to section
430 of the Heat Exchanger and Cooling Tower Manual for guidance as to
which fluid should go on each side of the exchanger.)
Calculate the log mean temperature difference (LMTD) from the equation
in the worksheet shown on the form in Figure 403-1 (or use the chart
shown in Figure 403-10). If GTTD = LTTD, the equation cannot be used
and the LMTD is equal to that same value.
2

DETERMINE THE TEMPERATURE CORRECTION FACTOR

Calculate the values of Ø1 and Ø2 using the formulas on the worksheet in
Figure 403-1. Then determine the temperature correction factor, f, from
one of the charts in Figure 403-2. As a general rule, an exchanger should
be designed with a correction factor greater than 0.85.
For extended surface double pipe (hairpin) units, the temperature
correction factor does not apply. However, substitute a fin efficiency
factor as follows:
Liquid-liquid (no phase-change)
75%
Vaporizing or condensing
50%
3

SELECT A HEAT TRANSFER COEFFICIENT

If a heat transfer coefficient, U, has not been provided by the process
engineer, select one from Figure 403-3 or Figure 403-4.
4

CALCULATE THE REQUIRED HEAT TRANSFER AREA, A

Use the information above and the total duty, Q. Here is the equation (also
shown on the form):
A=

Q
U × tm × f

Cost Estimating Manual
Page 403-2

December 1995

Heat Exchanger Worksheets

Figure 403-1. Exchanger Design & Sizing Worksheet

Cost Estimating Manual
December 1995

Page 403-3

403

Heat Exchangers

Figure 403-2. LMTD Correction Factors for Multi-Pass Exchangers. Note: Similar charts
appear in Appendix A of the Heat Exchanger and Cooling Tower Manual.

5

DETERMINE THE NUMBER OF SHELLS REQUIRED AND THE CORRESPONDING
AREA PER SHELL

Plant design or maintenance considerations may limit the diameter and
length of each shell, requiring more than one shell if the overall heat
transfer area is large.

Cost Estimating Manual
Page 403-4

December 1995

Heat Exchanger Worksheets

A

A

CC

B
B

D
D

EE

F

F

200

SERVICE COEFFICIENT U Btu/hr-ft²-°F

180

160

140

ST

OL
CO

M
EA

120

100

LT.

.
H.C

-P H

.-NO

80

.C
LT.H

60

I UM
MED

40

AS

G
IN

E
AT
W

R

GE
AN
H
EC

GE
HAN

C
SE
PHA

-N
H.C.

C
ASE
O PH

GE
HAN

NG E
S E CHA
NO P HA
..C
H
Y
HEAV

20

0

FLUID TYPE (See Table)

Legend for Fluid Types:
A Heavy hydrocarbon (i.e., bottoms), heating or cooling liquid (no phase change)
B Medium hydrocarbon (i.e., heavy distillate), heating or cooling liquid (no phase change)
C Light hydrocarbon (i.e., gasoline, light oil, propane, butane, etc.), heating or cooling liquid
(no phase change)
D Light hydrocarbon, vaporizing or condensing
E Cooling water, boiler feed water or water solution, heating or cooling liquid (no phase change)
F Steam condensing or water vaporizing
Figure 403-3. Service Heat Transfer Coefficients for Shell-and-Tube Heat Exchanges (U)

Atmospheric Column OH Condenser Using Cooling Water

80

Atmospheric Column OH Condenser Using Distillate or Feed
on Tube Side

50

Atmospheric Column OH Condenser Using Feed on Shell Side

80

Vacuum Column OH Condenser Using Cooling Water

50

Vacuum Column OH Condenser Using Distillate or Feed

30

Light Ends Vertical Reboiler Using Steam

130

Light Ends Vertical Reboiler Using Hot Oil

75

Heavy Ends Vertical Reboiler Using Steam

110

Heavy Ends Vertical Reboiler Using Hot Oil

65

Figure 403-4. Other Service Heat Transfer Coefficients (U)

Cost Estimating Manual
December 1995

Page 403-5

403

Heat Exchangers

Steps for Completing
the Cost Estimating
Worksheet
1

The six main steps to complete a Cost Estimating Worksheet for Heat
Exchangers (Figure 403-5) are as follows:
READ THE COST OF A CARBON STEEL HEAT EXCHANGER

Refer to Figure 403-15 or 403-16 (graph or equations) in “Cost Data for
Shell-and-Tube Heat Exchangers” later in this section, interpolating as
necessary. If the design pressures for the shell side and the tube side are
different:
Read the cost for each pressure.
Record the values as Cs and Ct for the shell side and tube side costs,
respectively.
2

CALCULATE COST FOR MIXED PRESSURES

Calculate the cost for mixed pressures from one of the following
equations:
If the shell side pressure is higher, use C = (.8 x Cs) + (.2 x Ct)
If the tube side pressure is higher, use C = (.6 x Ct) + (.4 x Cs)
3

ADJUST THE COST FOR CONSTRUCTION FEATURES

Adjust the cost for construction features that differ from the basis for the
curves, using the notes for Figures 403-15 and 403-16.
The adjustment factors are additive.
4

ADJUST FOR COST OF ALLOYS

If necessary, adjust the cost for the use of alloys other than carbon steel.
Estimate the cost based on carbon steel.
Use the curves in Figure 403-6 to find the shell I.D. from the tube
length and area. Note adjustments for different tube sizes and pitch.

Cost Estimating Manual
Page 403-6

December 1995

Heat Exchanger Worksheets

Use Figures 403-17 through 403-20 (each for a different design
pressure) to find percentage extras for the alloy in the various
components (excluding tubes). Use the following guidelines for mixed
pressures. Note that tube sheets and baffles are not affected by mixed
pressure.
Shell side, lower pressure—multiply the percentage extra for the
shell and cover by the appropriate factor for that shell pressure
(table, column right).
Tube side, lower pressure—multiply the percentage extra for the
channel, channel cover, and floating head by the appropriate factor
for that tube pressure (column right).
Add the three percentage extras together (after adjusting for mixed
pressures, if required); then add this total percentage to the base cost
for a carbon steel exchanger.
5

ADJUST FOR ALLOY TUBES

To adjust for alloy tubes:
Select the cost extra from Figure 403-21 for the tube size and gage
(thickness) required.
Multiply this unit cost by the tube surface area to obtain the total
dollar extra for alloy tubes.
Add the total from step 2 to the adjusted exchanger cost.
6

INDEX THE COST AND ADD SALES TAX, AS SHOWN IN SECTIONS III AND IV OF
THE COST ESTIMATING WORKSHEET FOR HEAT EXCHANGERS (FIGURE 403-8)

Cost Estimating Manual
December 1995

Page 403-7

Cost Estimating Worksheet for Heat Exchangers
Equipment # & Service:

Area, sq ft:
Tube-side P(t)

Design Pressure, psig: Shell-side P(s)

No. Shells:

Section I: Carbon Steel
Adjustment for Differential Pressures
Cost based on shell-side pressure Cs

$

Cost based on tube-side pressure Ct

$

Calculating Cost Based on Higher Pressure
If shell-side pressure higher — Cost = (.8xCs + .2xCt)

$

If tube-side pressure higher — Cost = (.6xCt + .4xCs)

$

Adjustment for Construction Features
TEMA Type
Pitch & Tube Size
Length
Adjustments by Percentage for Applicable Features
%
%
%
%
Total Adjustments (additive)

%

CARBON STEEL COST, TOTAL — Base Cost x Total Adjustments

$

Section II: Alloy
Adjustments for Diameter & Pitch (Fig. 403-6)
Shell diameter, based on tube length



Tube pitch adjustment factor
Adjusted diameter—shell diameter x factor



Adjustments by Percentage for Components (Figs. 403-17–403-20)
Tube sheets and baffles
Shell and shell cover—

%
%x

%

Channel, channel cover, and floating head—

%x

%

Total Adjustments

%

Alloy Cost, Adjusted CS Cost + Total Adjustment

$

Alloy Tube Cost (Fig. 403-21)
Alloy Tube Cost — ($/SF

)x(

sq ft)

$
$

ALLOY COST, TOTAL
Section III: Cost Indexed to Current Date
Total adjusted cost from Sections I or II (above)
EDMI ratio — current EDMI/850 =

$

/850

INDEXED COST — Adjusted cost x EDMI ratio

$
Section IV: Total Cost

No. shells x Indexed Cost
Sales Tax (

x$

$

%)

$
$

TOTAL COST OF HEAT EXCHANGER

Figure 403-5. Cost Estimating Worksheet for Heat Exchangers

Cost Estimating Manual
Page 403-8

December 1995

Heat Exchanger Worksheets

Adjustments to
Figures 403-6a and 6b

Area vs Shell Diameter & Tube Length
1000 Square Feet or Less
19.25
17.25
15.25
13.25

Shell Diameter

The curves’ shell diameters are
based on 3/4-inch tubes with
15/16-inch triangular pitch.
To adjust for other tube configurations, multiply the curve’s
shell diameter by the following
factors:
1.15 for 3/4-inch O.D. tubes
with 1-inch square pitch
1.20 for 1-inch O.D. tubes
with 1-1/4-inch triangular pitch
1.25 for 1-inch O.D. tubes
with 1-1/4-inch square pitch

Shell & Tube Heat Exchangers

12

10 '

e
tub

10

s
Tu
1 4'

be s

e
Tub
1 6'

s

20 '

Tu

e
Tub
2 4'

bes

s

8

70

100

125

150

200

250

300

350

400

500

600

700

800

1,000

Square Feet

Figure 403-6a. Shell-and-Tube Heat Exchangers. 1000 Square Feet or Less

Shell & Tube Heat Exchangers
Area vs Shell Diameter & Tube Length
1000 Square Feet or More
60
54

Shell Diameter

48
45
42
39
37
35
33
31
29

1

ub
0' T

es

1

u
4' T

s
be

16

b
' Tu

es

2

ube
0' T

s

2 4'

e
Tub

s

27
25
23.25
21.25
19.25
17.25
15.25
1

2

3

5

10

15

Square Feet (Thousands)

Figure 403-6b. Area vs. shell Diameter & Tube Length1000 Square Feet or More

Cost Estimating Manual
December 1995

Page 403-9

403

Heat Exchangers

Cost Estimating a
Horizontal Shell-andTube Heat Exchanger

Figure 403-7, an illustration of a completed Exchanger Design & Sizing
Worksheet, is the basis of the example of the cost estimate shown in
Figure 403-8.
Description of Example

Estimate the cost of a horizontal shell-and-tube heat exchanger to heat
boiler feedwater (BFW) while cooling a hydrocarbon stream.



The operating conditions and need for alloy materials in this example are for
demonstration purposes only and do not represent true conditions.

The selected Tubular Exchange Manufacturers Association (TEMA)
type is AEU.
The stock inlet temperature is 400°F and the outlet is 300°F.
BFW inlet temperature is 50°F and the outlet is 300°F.
Stock inlet pressure is 100 psig; BFW water inlet pressure is 300 psig.
Heat exchange duty is 80 M BTU/hr.
Tubes are 3/4 inch diameter by 240 inches long, 14 BWG, pitch is
1 inch square, and tube material is 5 chrome-1/2 moly. Tube sheets,
channel and floating head cover are 1-1/4 chrome-1/2 moly.
Shell is type 304 stainless steel.
The EDMI at the date of the estimate is 875.

Cost Estimating Manual
Page 403-10

December 1995

Heat Exchanger Worksheets

Figure 403-7. Example of a Completed Exchanger Design & Sizing Worksheet

Cost Estimating Manual
December 1995

Page 403-11

403

Heat Exchangers

Cost Estimating Worksheet for Heat Exchangers
Equipment # & Service:

E-142

4012
1

Area, sq ft:

100

Design Pressure, psig: Shell-side P(s)

Tube-side P(t)

300

No. Shells:

Section I: Carbon Steel
Adjustment for Differential Pressures
Cost based on shell-side pressure Cs

$ 55,700
$62,700

Cost based on tube-side pressure Ct
Calculating Cost Based on Higher Pressure
If shell-side pressure higher — Cost = (.8xCs + .2xCt)
If tube-side pressure higher — Cost = (.6xCt + .4xCs)
Adjustment for Construction Features
TEMA Type

$

$ 59,900
AEU
1" Pitch x
3/4" φ
240"

Pitch & Tube Size
Length
Adjustments by Percentage for Applicable Features

U-tube bundle
1" Square Pitch x 3/4" Tubes

-15%
+10%
%
%

Total Adjustments (additive)

-5%

CARBON STEEL COST, TOTAL — Base Cost x Total Adjustments

$56,900

Section II: Alloy
Adjustments for Diameter & Pitch (Fig. 403-6)
Shell diameter, based on tube length

34“
1.15
39“

Tube-pitch-adjustment factor
Adjusted diameter — shell diameter x factor
Adjustments by Percentage for Components (Fig. 403-17–403-20)
Tube sheets and baffles
Shell and shell cover —

29 % x 0.92

Channel, channel cover, and floating head—
Total Adjustments

20 % x 1.00

Alloy Tube Cost (Fig. 403-21)
Alloy Cost, Adjusted CS Cost + Total Adjustment
Alloy Tube Cost — ($/SF
ALLOY COST, TOTAL

9.06 ) x ( 4012 sq ft)

10%
27%
20%
57%
$89,300
$36,300
$125,600

Section III: Cost Indexed to Current Date
Total adjusted cost from Sections I & II (above)
EDMI ratio — current EDMI/850 = 875 / 850
INDEXED COST — Adjusted cost x EDMI ratio

$125,600
1.0294
$ 129,300

Section IV: Total Cost
No. shells x Indexed Cost,

1 x $ 129,300

Sales Tax ( 8.25 %)
TOTAL COST OF HEAT EXCHANGER

$ 129,300
$ 10,700
$140,000

Figure 403-8.Example of a Completed Cost Estimating Worksheet for a Shell-and-Tube Heat Exchanger

Cost Estimating Manual
Page 403-12

December 1995

Estimating Air-Cooled Heat Exchangers

Estimating Air-Cooled Heat Exchangers
In this section, you will learn to calculate the area, cost, and horsepower
for estimating air-cooled heat exchangers.



Calculating the Area,
Cost, and
Horsepower
1

If you know the area of your air cooler, skip the calculation and example below and go
directly to “Cost Data for Air-Cooled Heat Exchangers,” at the end of this section. You’ll
find data for estimating the cost of both large (>1700 sq. ft.) and small (<1700 sq.ft.)
air-cooled heat exchangers.

The following procedure is an eight-step method for estimating the area,
horsepower, and cost of an air-cooled heat exchanger.

SELECT OVERALL HEAT TRANSFER RATE

From Figure 403-9, select an overall heat-transfer rate (U) based on bare
tube surface area.
Service

Cooling Service

120-130

4

Light hydrocarbons

75-95

4 or 6

Light gas oil

60-70

4 or 6

Heavy gas oil

50-60

4 or 6

Lube oil

20-40

4 or 6

Bottoms

10-20

6 or more

30

4

Natural gas @50 psig

20-40

4

Natural gas @100 psig

40-60

4

Natural gas @1000 psig

60-80

4

Fuel oil

20-30

4 or 6

Steam

130-140

4

Light hydrocarbon

80-95

4 or 6

Reactor effluent

60-80

6

Still overhead (Light naphthas,
steam & noncondensing gas)

60-70

4 or 6

80

4 or 6

Light gasoline
1
2

Suggested Tube
Layers 2

Engine jacket water

Fuel gas @100 psig

Condensing Service

Overall Heat
Transfer Rate 1

Transfer rate BTU/hr-sq.ft.-°F based on outside bare tube surface area.
The suggested number of tube layers cannot be accurately predicted for all services.
In general, you need four tube layers for coolers with a cooling range up to 80°F and
condensers with a condensing range up to 50°F. For cooling and condensing services with
ranges exceeding these values, you need six tube layers.

Figure 403-9. Typical Heat Transfer Rates for Air-cooled Heat Exchangers

Cost Estimating Manual
December 1995

Page 403-13

403

Heat Exchangers

2

DETERMINE LOG MEAN TEMPERATURE DIFFERENCE

Assume an outlet air temperature and determine the log mean temperature
difference (LMTD) from the chart in Figure 403-10.
If the stock outlet temperature is greater than 180°F, assume an air
temperature rise of 70°F to 80°F.

Figure 403-10. Chart for Solving LMTD Formula

Cost Estimating Manual
Page 403-14

December 1995

Estimating Air-Cooled Heat Exchangers

If the stock outlet temperature is less than 180°F, assume an air outlet
temperature equal to the stock outlet temperature.



LMTD correction factors are not included in this procedure. The correction to the
LMTD for cross flow will be negligible except in those few applications where both
of these conditions exist:
A considerable temperature cross
Few tube passes with a high temperature drop of the stock being cooled

3

CALCULATE THE HEAT TRANSFER SURFACE

Square feet of surface area =
4

Duty (Btu⁄hr)
U x LMTD

CHECK AIR TEMPERATURE RISE

Refer to Figure 403-9 to select the number of tube layers based on the
service and stock temperature range.
Refer to Figure 403-11 to determine air temperature rise.
Compare with the assumed temperature rise from step 2. If not close
to the assumed temperature rise, use the value of temperature rise
from Figure 403-11 and recalculate LMTD and surface area.



5

Repeat step 4 if necessary until the calculated temperature rise is close to the
previously assumed value. Usually a five- to ten-degree difference is close enough.
The data for steps 5 and 6 are located in “Cost Data for Air-Cooled Heat
Exchangers,” at the end of this section.

FIND THE BASE COST OF THE UNIT

From the curves or equations in Figures 403-23, find the base cost of the
unit.
6

REVIEW THE COST OF SPECIAL DESIGN FEATURES

Figure 403-24 shows cost factors for a number of common special design
features.
7

UPDATE COSTS TO PRESENT DATE

Update the cost to present date by applying appropriate CRTC Materials
Index (EDMI) ratio. (See Section 301.)
8

FIND PLAN AREA & HORSEPOWER

Find the approximate plan area of the unit from Figure 403-12 and the
approximate horsepower from the curve in Figure 403-13.

Cost Estimating Manual
December 1995

Page 403-15

403

Heat Exchangers

Bare-tube Outside Surface Area of 200 to 10,000 sq ft

Bare-tube Outside Surface Area of 20 to 400 sq. ft.
Notes:
°F/Million Btu/hr (Four Tube) = 5,826 x (Area) -0.97
°F/Million Btu/hr (Six Tube) = 10,634 x (Area)-0.97
Figure 403-11. Air Temperature Rise

Cost Estimating Manual
Page 403-16

December 1995

Estimating Air-Cooled Heat Exchangers

Plan Area (sq. ft.) = Outside Bare-Tube Surface Area
1.25 x No. Layers
Figure 403-12. Approximate Plan Area (Sq. Ft.) for Large A/C Bundles

Air Tempterature Rise Deg (F)

This curve shows approximate BHP per million BTU/hr for fans on air-cooled heat exchangers
plotted as a function of air temperature rise in degrees F.

BHP/Million BTU/hr=75 x (°F)-0.85
For air coolers with more than one service in a single frame, determine BHP as follows:
Stacked one above the other: Enter curve with total air temperature rise through all units
and read total BHP/total duty.
Side by side: Determine the BHP for each unit separately and add together for total BHP.
Figure 403-13. Fan Brake Horsepower

Example of
Estimating an
Air-Cooled Heat
Exchanger

Following the steps below, estimate the cost of an air-cooled heat
exchanger in overhead topping still condensing service with the following
requirements:
400 psig design pressure
15.0 M BTU per hour duty
Stock temperatures 305°F in and 120°F out
Inlet air temperature of 90°F
One-inch O.D., 14 BWG, 24-foot long carbon-steel tubes with
embedded aluminum fins
Manual pitch fans and louvers

Cost Estimating Manual
December 1995

Page 403-17

403

Heat Exchangers

1

SELECT OVERALL HEAT TRANSFER RATE

From Figure 403-9: Overall heat transfer rate (U) for this type of
condensing service is 60-70 BTU/Hr-Ft-F.
Select a U of 65.
2

DETERMINE LOG MEAN TEMPERATURE DIFFERENCE

Since the stock-outlet temperature is less than 180°F, assume an airoutlet temperature equal to the stock-outlet temperature of 120°F.
From Figure 403-10:
T1 → T2
t2

← t1

Stock

305 →

120

Air

120 ←
185

90
30

LMTD = 85
3

CALCULATE THE HEAT TRANSFER SURFACE

Outside surface bare area =

4

15,000,000 = 2,715 sq.ft.
(65)(85)

CHECK AIR TEMPERATURE RISE

a

From Figure 403-9, select six tube layers for this service because it
exceeds a condensing range of 50°F.
b From Figure 403-11, verify air temperature rise.
Air temperature rise for a six-layer section of 2,715 sq.ft. is 5.0°F / M
BTU/hr, or (5.0)(15.0) = 75°F. This calculated temperature rise is not
close enough to the assumed rise of 30°F.
c Recalculate LMTD using 75°F as air-temperature rise.
T1 → T2

Stock

← τ1

Air

t2



120

165 ←
140

90
30

305

LMTD = 71

d Outside surface bare area = 15,000,000 = 3,250 sq.ft.
(65)(71)
e Repeat step 4b using 3,250 sq.ft.: (4.2)(15.0) = 63°F.
This recalculated temperature rise is still not close enough to the
reassumed rise of 75°F.

Cost Estimating Manual
Page 403-18

December 1995

Estimating Air-Cooled Heat Exchangers

f

Recalculate LMTD using 63°F as air temperature rise.
T1 → T2

Stock

305



120



Air

153
152



90
30

t2

t1

LMTD = 75

g

Outside surface bare area = 15,000,000 = 3,077 sq.ft.
(65)(75)
h Repeat step 4b using 3,077 sq.ft.: (4.4)(15.0) = 66°F.
This recalculated temperature is now close enough to the assumed rise of
63°F from step 4f.
5

FIND THE BASE COST OF THE UNIT

From Figure 403-23, read the cost from the curve for a 3,077 sq.ft.
standard air-cooler or calculate it from the equation shown in the notes.
6

REVIEW COST OF SPECIAL DESIGN FEATURES

From Figure 403-24, calculate any additional costs using the factors
shown in the table such as these:
24 foot tubes
+10 percent
400 psig design pressure
+ 1 percent
Louvers
+10 percent
7

UPDATE COSTS TO PRESENT DATE

Adjust the cost to the current time as follows:
Cost above x

8

Current EDMI
Curve EDMI = 850

FIND PLAN AREA & HORSEPOWER

From Figure 403-12:
Approximate Plan Area =

3077 = 410 sq.ft.
1.25 x 6

From the curve in Figure 403-13:
Required fan brake horsepower for an air temperature rise of 66°F and
a duty of 15.0 M BTU per hour is
BHP = 2.1, or BHP = (15)(2.1) = 32
15.0

Cost Estimating Manual
December 1995

Page 403-19

403

Heat Exchangers

Typical Cost
Breakdown

The data in Figure 403-14 can be used, for example, to estimate an
air-cooler without a fan.

Item

% of Air-Cooler Cost

Tube bundle, including headers

70

Structure

15

Mechanical equipment

15

Figure 403-14. Typical Breakdown of Costs

Cost Estimating Manual
Page 403-20

December 1995

Cost Curves for Shell-and-Tube Exchangers

Cost Data for Shell-and-Tube Heat Exchangers

D
A
T
A

Cost Curves for Shell-and-Tube Exchangers

These curves are for horizontal,
carbon-steel, shell-and-tube heat
exchangers with
removable channel and cover
pull-through floating head
3/4-inch O.D., 240-inch long,
15/16-inch triangular pitch tubes
(TEMA: AET)
Instructions on the use of these
curves were given earlier in this section.
Costs include freight to domestic
locations and design allowance;
exclude cost of test jigs and sales tax.
Estimate costs of carbon-steel heat
exchangers with other construction
features by applying the factors in the
table (right) to the base cost obtained
from the curves. The factors are additive; see Figure 403-8 for an example.
See instructions for different design
pressures on tube side and shell in
step 1 of “Steps for Completing the
Cost Estimating Worksheet” earlier
in this section.

Construction Features

Factor

Tube Diameter & Pitch
15/16" Triangular Pitch w/3/4" tubes
1" Square Pitch, w/3/4" tubes
1.25" Triangular Pitch, w/ 1" tubes
1.25" Square Pitch, w/ 1" tubes
Tube Length
24 feet
20 feet
16 feet
10 feet

Base
+10%
+15%
+20%
-5%
Base
+ 5%
+10%

TEMA Front-End Heads
A-Removable channel and cover
B-Integral channel cover
N-Fixed tube sheets (both ends)

Base
-5%
-25%

TEMA Rear Heads
T - Pull-through floating head
S - Floating head with backing device (Non-pull-through floating head)
L,M,N - Fixed tube sheets-included with front end factor
U-U-tube bundle

Base
-5%
(Above)
-15%

TEMA Shells
E - One - pass shell
F,G,H,J,X - Other flow arrangements - same as type E
K - Kettle with floating head (T Type)
VERTICALLY-MOUNTED REBOILER

Base
Base
+10%
+10%

Equations for Each Design Pressure (EDMI=850)
150 PSI: C=9,000+17.2(A)

450 PSI: C=8,600+22.2(A)

300 PSI: C=8,800+19.2(A)

600 PSI: C=9,000+24.8(A)

Figure 403-15. Cost Curves for Exchangers Under 1000 Sq. Ft. at EDMI = 850

Cost Estimating Manual
December 1995

Page 403-21

403

Cost Data for Shell-and-Tube Heat Exchangers

D
A
T
A

These curves are for horizontal,
carbon-steel, shell-and-tube heat
exchangers with
removable channel and cover
pull-through floating head
3/4-inch O.D., 240-inch long,
15/16-inch triangular pitch tubes
(TEMA: AET)
Instructions on the use of these
curves were given earlier in this section.
Costs include freight to domestic
locations and design allowance;
exclude cost of test jigs and sales tax.
Estimate costs of carbon-steel heat
exchangers with other construction
features by applying the factors in the
table (right) to the base cost obtained
from the curves. The factors are additive; see Figure 403-8 for an example.
See instructions for different design
pressures on tube side and shell in
step 1 of “Steps for completing the
Cost Estimating Worksheet” earlier
in this section.

Construction Features

Factor

Tube Diameter & Pitch
15/16" Triangular Pitch w/3/4" tubes
1" Square Pitch, w/3/4" tubes
1.25" Triangular Pitch, w/ 1" tubes
1.25" Square Pitch, w/ 1" tubes
Tube Length
24 feet
20 feet
16 feet
10 feet

Base
+10%
+15%
+20%
-5%
Base
+ 5%
+10%

TEMA Front-End Heads
A-Removable channel and cover
B-Integral channel cover
N-Fixed tube sheets (both ends)

Base
-5%
-25%

TEMA Rear Heads
T - Pull-through floating head
S - Floating head with backing device (Non-pull-through floating head)
L,M,N - Fixed tube sheets-included with front end factor
U-U-tube bundle

Base
-5%
(Above)
-15%

TEMA Shells
E - One - pass shell
F,G,H,J,X - Other flow arrangements - same as type E
K - Kettle with floating head (T Type)
VERTICALLY-MOUNTED REBOILER

Base
Base
+10%
+10%

Equations for Each Design Pressure (EDMI=850)
150 PSI: C=16,800+9.7(A)

450 PSI: C=17,100+13.9(A)

300 PSI: C=17,000+11.4(A)

600 PSI: C=18,300+16.0(A)

Figure 403-16. Cost Curves for Exchangers Over 1000 Sq. Ft. at EDMI = 850

Cost Estimating Manual
Page 403-22

December 1995

Tables of Extras for Alloy Construction & Alloy Tubes

Tables of Extras for Alloy Construction & Alloy Tubes

Channel,
channel cover,
& floating head

Shell
& cover

Tubesheets
& baffles

ITEM

MATERIAL

SHELL DIAMETER (I.D.) IN.
12

14

16

18

20

22

24

27

30

33

36

39

42

Naval Rolled Brass

13

15

18

20

21

21

21

21

21

21

21

22

22

Monel

23

31

34

36

37

39

39

39

39

39

39

38

38

1.25CR-.5MO

6

6

7

7

7

8

8

8

9

9

9

9

9

2.25CR-.5MO

6

6

7

7

7

8

8

8

9

9

9

9

9

4-6CR-.5MO

19

22

24

25

26

26

26

25

25

25

24

24

24

304SS

22

26

28

30

30

31

31

31

30

30

29

29

29

Monel

42

46

49

51

52

52

51

49

47

44

41

39

38

1.25CR-.5MO

19

22

23

25

24

24

23

21

19

18

17

16

16

2.25CR-.5MO

19

22

23

25

24

24

23

21

19

18

17

16

16

4-6CR-.5MO

27

30

33

34

35

34

33

32

29

26

25

23

23

304SS

33

35

36

37

37

37

36

35

33

31

28

27

25

Monel

42

41

41

41

40

38

37

36

35

34

33

32

31

1.25CR-.5MO

23

24

25

25

24

23

23

22

21

21

21

21

21

2.25CR-.5MO

23

24

25

25

24

23

23

22

21

21

21

21

21

4-6CR-.5MO

37

38

37

37

36

35

33

30

29

27

28

27

26

304SS

39

38

38

37

36

35

34

33

31

30

29

28

28

Alco, Inc. published these cost factors in 1960. A 1991 check with suppliers found that these factors still
represent current prices.
The values are percentage extras for the alloy materials based on the total price of carbon steel exchangers
(see Figures 403-15 and 403-16).
Select the table for the appropriate pressure and read the extra factors under the column for the shell’s
diameter.
Note: The factors for the tube sheets and baffles, shell and cover, and channel and floating head are additive.
For exchangers with different pressures on shell and tube sides, use the base price for carbon steel and the
table for the higher pressure. Multiply the percentage extra for the alloy material obtained under the shell I.D.
by the multiplying factor in the right-hand column (Figures 403-18 through 403-20) opposite the lower pressure.
Note: This multiplying factor is applicable only for modifying the material percentage extras in these tables.
Do not use it with other data.
Figure 403-17. Extras for Alloy Construction in Percent of Carbon-Steel Prices—150 psi Design Pressure

Cost Estimating Manual
December 1995

Page 403-23

D
A
T
A

403

Cost Data for Shell-and-Tube Heat Exchangers

Shell Diameter (I.D.) IN.

Shell &
cover

Tube sheets
& baffles

Item

Channel
channel cover,
& floating head

D
A
T
A

Multiplying
Factors for
Mixed
Pressures

12

14

16

18

20

22

24

27

30

33

36

39

42

14

17

19

21

22

22

22

22

22

23

24

24

25

Monel

4

31

35

37

39

39

40

40

41

41

41

41

42

1.25CR-.5MO

6

7

7

7

8

8

8

8

9

10

10

10

11

2.25CR-.5MO

6

7

7

7

8

8

8

8

9

10

10

10

11

4-6CR-.5MO

19

22

24

25

26

26

26

25

25

25

26

26

26

304SS

22

27

29

30

31

31

31

31

30

30

30

31

31

Monel

45

48

51

52

53

53

52

51

49

47

45

44

44

Shell

1.25CR-.5MO

20

22

24

25

25

25

24

22

20

19

18

17

17

Press

2.25CR-.5MO

20

22

24

25

25

25

24

22

20

19

18

17

17

150

0.92

4-6CR-.5MO

28

31

33

35

35

35

34

32

30

28

27

26

26

300

1.00

304SS

32

34

36

37

38

38

37

35

33

31

30

29

28

Monel

40

42

42

43

42

41

40

37

34

32

31

30

30

Tube

1.25CR-.5MO

23

24

24

25

24

24

23

22

21

21

21

20

20

Press

2.25CR-.5MO

23

24

24

25

24

24

23

22

21

21

21

20

20

150

0.92

4-6CR-.5MO

36

37

38

39

37

36

34

31

29

27

26

25

24

300

1.00

304SS

37

39

39

39

38

37

36

33

31

29

28

26

26

Material

Naval Rolled
Brass

1.0

Factor

Factor

Alco, Inc. published these cost factors in 1960. A 1991 check with suppliers found that these factors still represent current
prices.
The values are percentage extras for the alloy materials based on the total price of carbon steel exchangers (see Figures
403-15 and 403-16).
Select the table for the appropriate pressure and read the extra factors under the column for the shell’s diameter.
Note: The factors for the tube sheets and baffles, shell and cover, and channel and floating head are additive.
For exchangers with different pressures on shell and tube sides, use the base price for carbon steel and the table for the
higher pressure. Multiply the percentage extra for the alloy material obtained under the shell I.D. by the multiplying factor in
the right-hand column (Figures 403-18 through 403-20) opposite the lower pressure.
Note: This multiplying factor is applicable only for modifying the material percentage extras in these tables.
Do not use it with other data.

Figure 403-18. Extras for Alloy Construction in Percent of Carbon-Steel Prices—300 psi Design Pressure

Cost Estimating Manual
Page 403-24

December 1995

Tables of Extras for Alloy Construction & Alloy Tubes

Shell Diameter (I.D.) IN.

Channel
channel cover
& floating head

Shell
& cover

Tube sheets
&
baffles

Item

Multiplying
Factors for
Mixed
Pressures

12

14

16

18

20

22

24

27

30

33

36

39

42

Naval Rolled
Brass

14

17

19

21

22

22

22

23

23

24

25

26

27

Monel

24

31

35

37

39

39

40

41

41

42

42

42

43

1.25CR-.5MO

6

7

7

7

8

8

8

9

10

10

11

11

12

2.25CR-.5MO

6

7

7

7

8

8

8

9

10

10

11

11

12

4-6CR-.5MO

19

22

24

25

26

26

26

25

26

26

26

27

27

304SS

22

27

29

30

31

31

31

31

30

30

30

31

31

Monel

51

55

57

57

56

56

55

54

52

50

48

47

46

1.25CR-.5MO

23

25

26

27

27

27

26

23

22

21

19

19

18 Press

2.25CR-.5MO

23

25

26

27

27

27

26

23

22

21

19

19

18

150

0.81

4-6CR-.5MO

31

34

37

38

38

37

36

34

32

30

28

27

26

300

0.89

304SS

36

39

41

41

41

40

39

37

35

33

31

30

30

450

1.00

Monel

42

42

43

42

40

39

37

36

33

32

31

30

30

Material

1.0

Shell

Tube

Factor

Factor

1.25CR-.5MO

25

26

26

25

24

23

23

22

22

21

21

20

20 Press

2.25CR-.5MO

25

26

26

25

24

23

23

22

22

21

21

20

20

150

0.88

4-6CR-.5MO

38

39

39

39

37

35

33

31

29

27

26

25

25

300

0.95

304SS

39

40

40

39

38

36

35

33

31

29

28

27

26

450

1.00

Alco, Inc. published these cost factors in 1960. A 1991 check with suppliers found that these factors still represent
current prices.
The values are percentage extras for the alloy materials based on the total price of carbon steel exchangers (see
Figures 403-15 and 403-16).
Select the table for the appropriate pressure and read the extra factors under the column for the shell’s diameter.
Note: The factors for the tube sheets and baffles, shell and cover, and channel and floating head are additive.
For exchangers with different pressures on shell and tube sides, use the base price for carbon steel and the table for the
higher pressure. Multiply the percentage extra for the alloy material obtained under the shell I.D. by the multiplying factor
in the right-hand column (Figures 403-18 through 403-20) opposite the lower pressure.
Note: This multiplying factor is applicable only for modifying the material percentage extras in these tables.
Do not use it with other data.
Figure 403-19. Extras for Alloy Construction in Percent of Carbon-Steel Prices—450 psi Design Pressure

Cost Estimating Manual
December 1995

Page 403-25

D
A
T
A

403

Cost Data for Shell-and-Tube Heat Exchangers

Shell Diameter (I.D.) IN.

Shell
& cover

Tube sheets
&
baffles

Item

Channel
channel cover
& floating head

D
A
T
A

Multiplying
Factors for
Mixed
Pressures

12

14

16

18

20

22

24

27

30

33

36

39

42

Naval Rolled
Brass

14

17

19

21

22

22

22

23

23

24

25

26

27

Monel

23

31

34

35

36

37

39

40

41

42

43

43

43

1.25CR-.5MO

6

6

7

7

7

7

7

8

9

10

11

11

12

2.25CR-.5MO

6

6

7

7

7

7

7

8

9

10

11

11

12

4-6CR-.5MO

19

21

23

24

24

24

25

25

25

25

26

27

28

304SS

21

25

27

29

29

29

29

30

30

30

31

33

33

Monel

56

56

55

55

55

54

54

53

51

49

48

47

46

1.25CR-.5MO

21

24

25

25

26

25

25

23

21

20

19

18

18 Press

2.25CR-.5MO

31

34

36

37

37

36

35

33

31

29

28

27

26

150

0.75

4-6CR-.5MO

33

36

37

38

38

37

36

35

33

31

29

28

28

300

0.83

304SS

38

40

42

42

40

39

38

37

35

32

31

30

30

450

0.92

600

1.00

Material

1.0

Shell

Tube

Factor

Monel

44

45

44

43

42

41

39

36

34

30

29

28

28

1.25CR-.5MO

25

25

26

26

25

23

23

22

21

20

19

19

19 Press

Factor

2.25CR-.5MO

38

39

39

39

38

36

34

31

28

26

24

23

23

150

0.78

4-6CR-.5MO

40

41

41

40

38

36

35

32

28

26

25

24

23

300

0.86

304SS

40

41

41

41

39

37

35

32

29

27

26

25

23

450

0.92

600

1.00

Alco, Inc. published these cost factors in 1960. A 1991 check with suppliers found that these factors still represent current
prices.
The values are percentage extras for the alloy materials based on the total price of carbon steel exchangers (see Figures
403-15 and 403-16).
Select the table for the appropriate pressure and read the extra factors under the column for the shell’s diameter.
Note: The factors for tube sheets and baffles, shell and cover, and channel and floating head are additive.
For exchangers with different pressures on shell and tube sides, use the base price for carbon steel and the table for the
higher pressure. Multiply the percentage extra for the alloy material obtained under the shell I.D. by the multiplying factor
in the right-hand column (Figures 403-18 through 403-20) opposite the lower pressure.
Note: This multiplying factor is applicable only for modifying the material percentage extras in these tables.
Do not use it with other data.
Figure 403-20. Extras for Alloy Construction in Percent of Carbon-Steel Prices—600 psi Design Pressure

Cost Estimating Manual
Page 403-26

December 1995

Tables of Extras for Alloy Construction & Alloy Tubes

Tube O.D.

Material

3/4"

1"

BWG

16

14

12

16

14

12

Thickness

0.065"

0.083"

0.109"

0.065"

0.083"

0.109"

$

$

$

$

$

$

ASTM Specification

Carbon steel

A-214 Welded min.wall

5.15

Base

0.66

-0.26

Base

0.50

Admiralty

B-111 SMLS min. wall

5.15

6.72

11.82

5.17

6.38

12.35

70-30 CU NI

B-111 SMLS min. wall

15.84

19.31

23.69

15.40

19.22

24.00

C-.5MO

A-209-T1 SMLS min. wall

6.26

5.52

6.61

4.59

4.95

5.25

1.25CR-.5MO A-213-T11 SML min. wall

6.62

6.98

7.06

4.98

5.73

5.63

5CR-.5MO

A-213-T5 SMLS min. wall

8.63

9.06

9.59

7.44

8.42

7.54

304 SS

A-249 Welded

3.46

5.26

7.49

3.11

4.40

6.57

316 SS

A-249 Welded min. wall

4.27

5.82

8.67

5.12

5.93

8.10

321 SS

A-249 Welded min. wall

5.02

6.57

9.32

4.52

6.29

8.70

347 SS

A-249 Welded min. wall

16.46

18.85

23.28

14.83

18.27

21.17

410 SS

A-213 SMLS min. wall

11.16

13.09

-

12.35

12.96

15.82

Monel

B-163 SMLS min. wall

48.29

59.50

73.82

47.76

59.56

75.71

Costs represent the extra price in dollars/sq. ft. of outside tube surface for the material and gage shown
when compared to a welded carbon-steel tube of the same diameter having a 14-gage wall thickness.
Figure 403-21. Extra for Alloy tubes in $/Sq. Ft. EDMI = 850

Cost Estimating Manual
December 1995

Page 403-27

D
A
T
A

403

Cost Data for Hairpin Heat Exchangers
his selected cost data covers bare-tube hairpin heat exchangers, available in
double pipe (DP) or multi-tube (MT) sections.

T



A DP section has one tube, finned or bare, within the shell pipe. An MT section has a
multiple of smaller tubes, finned or bare, within the shell pipe.

Estimating Procedure for Hairpin Heat Exchangers
Determine the heat transfer area required (instructions given earlier in
this section).
Select the estimated cost from Figure 403-22.

Std Press Shell /
Tube psig

Type

No. u-tubes (bare)

Contact an acceptable vendor to obtain estimating prices for
Fin-tube units
Shells heavier than schedule 80
Alloys such as 316 and 321 stainless steel
Alloy tube thicknesses greater than 16 BWG

Length in.

Shell dia in.

Tube O.D. in.

Estimating Prices

Area sq. ft.

D
A
T
A

Cost Data for Hairpin Heat Exchangers

Shell Schedule / Tube Schedule or Gage
All Carbon Steel Construction
40 / 40

40 / 80

40 /
160

C.S. Shell /
304 SS

40 /
40 / 40
40 /
14BWG
16BWG

Extra
for Sch.
80 Shells

20

3

1.90

240

1 D.P.

500 / 500 $ 3,000 $ 3,080 $ 3,335

-

$ 3,480

-

$ 160

25

4

2.375

240

1 D.P.

500 / 500 $ 3,280 $ 3,365 $ 3,625

-

$ 3,480

-

$ 210

30

4

2.875

240

1 D.P.

500 / 500 $ 3,335 $ 3,450 $ 3,765

-

$ 3,960

-

$ 210

56

4

0.75

240

7 M.T. 500 / 500

-

-

-

$ 3,600

-

$ 4,400

$ 210

75

4

1.00

240

7 M.T. 500 / 500

-

-

-

$ 3,660

-

$ 4,735

$ 210

98

5

0.75

240

12 M.T. 300 / 300

-

-

-

$ 4,740

-

$ 6,060

$ 315

196

6

0.75

240

24 M.T. 300 / 300

-

-

-

$ 6,240

-

$ 8,795

$ 420

350

8

0.75

240

44 M.T. 300 / 300

-

-

-

$ 8,520

-

$ 13,160

$ 660

612

10

0.75

240

68 M.T. 300 / 300

-

-

-

$ 11,160

-

$ 18,235

$ 1,735

R. W. Holland Inc. provided this estimating data in 1992. It excludes design allowance, freight, taxes, sand blasting,
priming, x-ray, and stress relief.
Data shown are for the most common exchangers.
Base designs for estimates on bare-tube units.
Fin tubes, if practical, result in a smaller, less costly exchanger.
Figure 403-22. Costs for Hairpin Heat Exchangers. EDMI = 858 (1992)

Cost Estimating Manual
Page 403-28

December 1995

Area vs. Cost of Air-Cooled Heat Exchangers

Cost Data for Air-Cooled Heat Exchangers
Area vs. Cost of Air-Cooled Heat Exchangers
In the next figure, cost includes domestic freight and design allowances
and excludes sales tax.

Figure 403-23. Area vs. Cost—Air-Cooled Heat Exchanges 1,000 sq. ft. to 75,000 sq. ft.
EDMI = 900; Dollars = 100.8 x (sq. ft.).84

Cost Estimating Manual
December 1995

Page 403-29

D
A
T
A

403

D
A
T
A

Cost Data for Air-Cooled Heat Exchangers

Cost Factor Multipliers for Special Design Features

Design Feature

Cost Factor for Heat
Exchangers
1000 sq. ft. to 75,000 sq. ft.

Design Pressure

Tube Layers

<100 psig

0.99

100 to 300 psig

Base

301 to 424 psig

1.01

425 to 650 psig

1.02

8 Row

0.90

7 Row

0.95

6 Row

Base

5 Row

1.07

4 Row

1.16

3 Row
2 Row

1.10

24 ft. Tubes
Fins

Tubes

Headers

1.30

Tension Wound

0.95

Embedded

1.00

16 BWG Admiralty

1.18

16 BWG 304 SS Tubes

1.26

Cover Plate for 200 psi Design Pressure

1.10
1.10

Steam Coils

1.10

Louvers
Auto. Variable Pitch Fans

$1800 per fan @ EDMI = 850

Delete Support Columns

0.98

Winterizing Enclosure
1

2

1.20 - 1.30

One-inch O.D., 12 BWG, 36- to 40-foot long carbon-steel tubes with extruded aluminum fins
arranged in six tube layers with two fans per bay, 100 to 300 psig design pressure, and
plug headers.
One-inch O.D., 10-12 BWG, up to 20-foot long carbon-steel tubes with extruded aluminum
fins arranged in three or four tube layers with two fans per bay, 100 to 300 psig design
pressure, and plug headers.

Both include support structure, platforms (if any), motors, plenums, and vibration shutdown
device. Exclude AV fans, louvers, and steam coils.

Figure 403-24. Cost Factor Multipliers for Special Design Features on Large & Small Air-Cooled
Heat Exchangers

Cost Estimating Manual
Page 403-30

December 1995

404
Fired Process Heaters

April 1995

his section shows how to estimate the order-of-magnitude cost for a shopfabricated furnace, based on the total absorbed duty in millions of BTUs per hour
(MBH) and on one of the correlations in “Cost Data for Shop-Fabricated Furnaces,”
next.

T

Cost Data for Shop-Fabricated Furnaces
he correlations are based on furnaces purchased from US and foreign fabricators.
Data points shown as solid circles are Chevron purchases.

T

Carbon- and Alloy-Steel Process Furnaces
Equation 1

$ = 65,772 x (Duty, MBH)0.59
Carbon Steel, Shop Fabricated, Box and Cylindrical Process Furnaces
EDMI = 880

Figure 404-1 includes air pre-heaters and integral stacks; most of the
furnaces include low NOx burners. The cost includes domestic freight.
3,000,000

Dollars

2,000,000

1,000,000

500,000

300,000

200,000
10

20

30

50

100

200

300

Duty- Million BTU/Hr

Figure 404-1. Carbon Steel Box & Cylindrical Process Furnaces; EDMI = 880

Cost Estimating Manual
April 1995

Page 404-1

404

Cost Data for Shop-Fabricated Furnaces

Example

D
A
T
A

Estimate the cost of a shop-fabricated furnace, carbon steel, with a total
absorbed duty of 50 million BTUs per hour. The purchase date is 1Q94
(EDMI = 886).
Cost = 65,772 x (50)0.59 x (886/880) = $665,900

Equation 2

$ = 53,404 x (Duty, MBH)0.70
Alloy, Shop Fabricated, Box and Cylindrical Process Furnaces
EDMI = 880

Figure 404-2 includes air pre-heaters and integral stacks; most of the
furnaces include low NOx burners. The cost includes domestic freight.
Example

Estimate the same furnace but with alloy materials.
Cost = 53,404 x (50)0.70 x (886/880) = $831,400

5,000,000

3,000,000

Dollars

2,000,000

1,000,000

500,000

300,000
200,000

100,000
2

5

10

20

50

100

200

500

Duty- Million BTU/Hr

Figure 404-2. Alloy Steel Box & Cylindrical Process Furnaces; EDMI = 880

Cost Estimating Manual
Page 404-2

April 1995

Carbon- and Alloy-Steel Process Furnaces

Other Resources

For greater accuracy or for large field-erected furnaces, contact one of the
following suppliers:
Born Incorporated
Foster Wheeler Energy Corporation
Heat Research Corporation
Petrochem Development
Selas Corporation of America

Cost Estimating Manual
April 1995

Page 404-3

D
A
T
A

405
Pumps

I

n order to estimate the cost of a pump and its driver, you must define the process
requirements, such as the required flow rate and differential head. Figure 405-1
illustrates the process for estimating a pump and its driver.

Figure 405-1.

Estimating the Cost of a Pump and Driver

Cost Estimating Manual
December 1998

Page 405-1

405

Pumps

Item
Selection Criteria for Pumps

This Manual

Other Resources

Figure 405-8
Chevron Pump Manual

Detailed Method for Determining
System Hydraulics
Materials Classification Table

Figure 405-6

CRTC Materials Specialists

Selecting Drivers

Section 406 “Electric Motor
Drivers”
Section 407 “Steam Turbines”

Chevron Driver Manual

Figure 405-2.

Resources for Pumps

Resources for fundamental pump technology are listed in Figure 405-2.

The Worksheet
This section provides background information and procedures for
completing a pump-and-driver estimating worksheet (see Figure 405-3).
The process is detailed in a step-by-step discussion of each line item of the
worksheet, as follows:






Steps 1–15 are for selecting the pump.
Steps 16–21 are for pricing the pump.
Steps 22–27 are for selecting the driver.
Steps 28–32 are for pricing the driver.
Steps 33–38 are for estimating the pump and driver.

For your estimates you may wish to photocopy the full-sized blank form in
Figure 405-4.

Cost Estimating Manual
Page 405-2

December 1998

The Worksheet
1.

Equipment No.

2.

Service

3.

Fluid Pumped

P-100

GENERAL

PROCESS
REQUIREMENTS

PUMP SELECTION

Hydrocarbon
Gasoline
o

4.

Operating Temp F

5.

Specific Gravity (SG)

.75

6.

Viscosity - SSU or CS

100 SSU

7.

Flow Rate - GPM

300

8.

Differential Head - Ft

150

9.

Material Class

B-1

10.

Pump Type

11.

Cost Estimating Section/Figure

12.

Speed-RPM

13.

Mark No or Size

L1

14.

Horsepower (SG=1)

17

15.

Adjusted Horsepower

250°F

Centrifugal
405-14
1750

17X.75=15 HP

16.

Pump Price

17.

Extra Cost for

0

18.

Extra Cost for

0

19.

Pump Subtotal (16 + 17 + 18)

$11,200

20.

EDMI Ratio (Current/Historical)

890/881

21.

Pump Adjusted Subtotal (19 x 20)

$11,300

22.

Driver Type (Motor or Turbine)

Motor

23.

Cost Estimating Section/Figure

406-1

24.

Speed RPM (Same as Line 12)

1750

25.

Horsepower (Same as Line 15)

15

26.

Motor Enclosure or Turbine Class/Frame

27.

Motor Efficiency or Turbine Wheel Size

$11.200

PUMP PRICE

DRIVER SELECTION

DRIVER PRICE

TOTAL PRICE
PUMP & DRIVER

Figure 405-3.

28.

Driver Price

29.

Extra Cost for

30.

Driver Subtotal (28 + 29)

31.

EDMI Ratio (Current/Historical)

32.

Driver Adjusted Cost (31 x 30)

33.

Pump & Driver Subtotal (21 + 32)

34.

Design Allowance @

35.

Subtotal (33 + 34)

T EF C
HE
$900
0

5

5

$900

$1,000

% of line 33

Freight @

37.

Sales Tax @

38.

Total (35 + 36 + 37)

8.5

$12,300
$600
$12,900

% of line 35

36.

890/843

% of line 35

$600
$1,100
$14,600

Sample of a Completed Pump & Driver Worksheet

Cost Estimating Manual
December 1998

Page 405-3

405

Pumps
1.

Equipment No.

2.

Service

3.

Fluid Pumped

4.

Operating Temp oF

5.

Specific Gravity (SG)

6.

Viscosity - SSU or CS

7.

Flow Rate - GPM

8.

Differential Head - Ft

9.

Material Class

10.

Pump Type

11.

Cost Estimating Section/Figure

12.

Speed-RPM

13.

Mark No or Size

14.

Horsepower (SG=1)

15.

Adjusted Horsepower

16.

Pump Price

17.

Extra Cost for

18.

Extra Cost for

19.

Pump Subtotal (16 + 17 + 18)

20.

EDMI Ratio (Current/Historical)

21.

Pump Adjusted Subtotal (19 x 20)

22.

Driver Type (Motor or Turbine)

23.

Cost Estimating Section/Figure

24.

Speed RPM (Same as Line 12)

25.

Horsepower (Same as Line 15)

26.

Motor Enclosure or Turbine Class/Frame

27.

Motor Efficiency or Turbine Wheel Size

28.

Driver Price

29.

Extra Cost for

30.

Driver Subtotal (28 + 29)

31.

EDMI Ratio (Current/Historical)

32.

Driver Adjusted Cost (31 x 30)

33.

Pump & Driver Subtotal (21 + 32)

34.

Design Allowance @

35.

Subtotal (33 + 34)

GENERAL

PROCESS
REQUIREMENTS

PUMP SELECTION

PUMP PRICE

DRIVER SELECTION

DRIVER PRICE

TOTAL PRICE
PUMP & DRIVER

Figure 405-4.

% of line 33

% of line 35

36.

Freight @

37.

Sales Tax @

38.

Total (35 + 36 + 37)

% of line 35

Blank Pump & Driver Worksheet

Cost Estimating Manual
Page 405-4

December 1998

Selecting the Pump

Selecting the Pump
Selecting a pump is an important part of a project and is illustrated in the
steps below.


The various graphs and charts of data for selecting pumps are provided in
“Pump Data” later in this section. If you are familiar with completing the
worksheet, you may wish to skip to that section now.

1

EQUIPMENT NUMBER

The identifying number might be the pump’s equipment number if you are
working from an equipment list. Fill out a worksheet for each pump you
are estimating.
Sample: P-100
2

SERVICE

This refers to the service on the equipment list or the fluid on the process
flow diagram (such as water, hydrocarbon, process fluid, acid) which falls
under a general service.
Sample: Hydrocarbon
3

FLUID PUMPED

Indicate the fluid to be pumped. It might be butane, water, gasoline,
99 percent sulfuric acid, and so on.
Sample: Gasoline
4

OPERATING TEMPERATUREoF

The operating temperature of the fluid to be pumped is needed to select
the correct material class and seal for the pump.
Sample: 250oF
5

SPECIFIC GRAVITY (SG)

SG is the fluid’s weight relative to water. When the selection curves for
pumps have HP lines, they are based on SG of water = 1. If the actual SG
is other than 1, it might take more or less horsepower to operate a pump at
the desired flow rate and head.

Cost Estimating Manual
December 1998

Page 405-5

405

Pumps

Identify specific gravity at the operating temperature rather than under
standard conditions. If the SG for your project is not equal to 1, adjust the
horsepower as shown in step 15.
Sample: 0.75
6

VISCOSITY—SSU OR CS

Centrifugal pumps are the most common pumps for fluids with viscosities
below 500 SSU (Seconds Saybolt Universal). The viscosity of the
selection curves is 100 SSU, or less. (For the effects of viscosity on pump
performance when exceeding this amount, refer to the Chevron Pump
Manual.)
Sample: 100 SSU
7

FLOW RATE—GPM

This is the fluid’s flow rate, generally in gallons per minute (gpm) at the
operating temperature.1
Use the design rate from the process flow diagram, which is generally
higher than the normal operating rate.2
Sample: 300

For steam-driven reciprocating pumps, adjust the flow rate when the
viscosity exceeds 250 SSU (see Figure 405-5). Then use the adjusted flow
rate for selecting and pricing the pump.
8

DIFFERENTIAL HEAD (IN FEET)

Differential head is the difference between suction head and discharge
head, measured in feet. If the viscosity exceeds 100 SSU, adjust the
differential head (see the Chevron Pump Manual).
Sample: 150 feet
9

MATERIAL CLASS


1
2

During concept development and feasibility phases, refer to the
Materials Classification Table (Figure 405-6) to find the appropriate
materials class.

Gallons per hour (gph) is used for smaller flow rates, such as injection pumps.
Design flow rate is normally higher (110 percent) than the normal operating rate. The design rate for furnace charge pumps
and pumps on level control is even higher (120 percent).
Cost Estimating Manual

Page 405-6

December 1998

Selecting the Pump

Figure 405-5.

Capacity Correction for Viscosity for Direct-Acting Steam Pumps

Cost Estimating Manual
December 1998

Page 405-7

405

Pumps
MAT’L
CLASS

CASE



SERVICE

TEMP LIMITS °F

A-3

Cast Iron

Cast iron or bronze

Water

Under 300°

B-1

Steel

Cast iron

Process

Under 500°

B-3

Steel

12% Chrome

Process

500° – 600°

B-5

Steel

Nickel resist

Water/hydrocarbon
mixture

Under 500°

E-1

5% chrome

12% chrome

Process

Over 600°

F-1

18-8

18-8

Nitric acid

Under 150°

F-2

316 SS

316 SS

Phosphoric acid

Under 150°

G-1

Alloy 20

Alloy 20

Sulfuric acid

Under 100° for > 1%
concentration

J-1

Monel

Monel

Hydrofluric acid

Under 350°

Figure 405-6.


TRIM

Material Classification Table

During later phases of a project, consult Chevron materials specialists.

In general:





Select steel cases for pumps handling hydrocarbons.
Note that in refinery service, impellers and wear rings of 12 percent chrome
are far more resistant than cast-iron components.
Consider alloy material for acidic fluids.

Sample: B-1
10 & 11

PUMP TYPE & COST ESTIMATING SECTION/FIGURE




Select a pump using the selection curves in “Pump Data” later in this
section.
On the worksheet, enter the selected pump type and the section/figure
number where support data appears in this manual.

Sample: Centrifugal, 405-14
12

SPEED—RPM

Turn to the section identified on line 11 of the worksheet to find the
selection curve and identify the rpm on that curve.


For centrifugal pumps, a curve exists for each rpm that the pump may use. If
the desired rpm is not shown, select the most appropriate. Generally, when the
available NPSH (Net Positive Suction Head) is limited, select the slower speed.
(See the Chevron Pump Manual for detailed guidelines.)
Sample: 1750 RPM

Cost Estimating Manual
Page 405-8

December 1998

Pricing the Pump
13

PUMP MARK NO. OR SIZE

On the pump selection curve, locate the pump’s gpm on the horizontal axis
and the pump’s differential head on the vertical axis. The intersection of
the two axes lies within a fan. The circled letter/number within the fan is
the pump mark that corresponds to the pump’s size.
Sample: L1
14

HORSEPOWER (SG=1)

At the selection curve intersection point (from step 13), locate the
horsepower required to operate the pump and help select a driver for the
pump.
Sample: 17 HP (interpolating between the lines)

For any selection curve without horsepower lines, an average efficiency is
given for each pump mark in a separate column within the figure;
however, you must calculate the required brake horsepower based on the
following equation:
Q × h × SG

HP = -----------------------------3960 × EFF
where:
Q
h
SG
EFF
15

=
=
=
=

Flow rate (gpm)
Total differential head (ft.)
Specific gravity
Pump efficiency

ADJUSTED HORSEPOWER

For those selection curves with HP lines, adjust for a specific gravity not
equal to 1.
Sample: 17 HP × .75 (SG) = 13 HP (use 15 HP, the next available motor size)



Adjust for the difference in specific gravities between the selection curve (water)
and the pumped fluid.

Pricing the Pump
After completing the selection portion of the worksheet, you’ll estimate the
cost of the sample pump by following the explanations under steps 16
through 21.
16

PUMP PRICE

Locate the section and figures listed on line 11 to find the cost estimating
table for the pump.
Cost Estimating Manual
December 1998

Page 405-9

405

Pumps

On the cost estimating table, locate the pump mark (line 13) and the
column showing the pump’s material class (line 9). The cell at the
intersection is the pump price at a specified EDMI index.
For centrifugal pumps, prices are shown for packed pumps and for pumps
with mechanical seals.

Packing in the stuffing box provides a seal around the pump shaft,
which controls but does not eliminate leakage. The shaft must be
lubricated depending on the fluid serviced and the pressure inside the
stuffing box.

A mechanical seal forms a running seal between rotating and
stationary parts. It has the following advantages over conventional
packing:






Reduced friction and power loss
Zero or limited leakage
Reduced maintenance
Ability to seal at higher pressures and in corrosive environments

Select a mechanical seal instead of a stuffing box when the pump is in
hydrocarbon or corrosive service.
Sample: $11,200 (The B-1 class includes a mechanical seal)

17

EXTRA COST

Read the notes accompanying the pump's cost estimating table. These
provide extra costs for certain materials and additional options.


For centrifugal pumps, the price includes a stuffing box for packing or a
mechanical seal. An extra cost may be charged to provide a mechanical seal for
a pump designed for packing.
Sample: No extra cost.

18

EXTRA COST

If the pump requires more than one extra cost, enter it on this line of the
worksheet.
Sample: No extra cost
19

PUMP SUBTOTAL

The subtotal is the result of adding lines 15 through 17.
Sample: $11,200

Cost Estimating Manual
Page 405-10

December 1998

Selecting the Driver

20

EDMI RATIO (CURRENT/HISTORICAL)

The prices on the cost estimating table are based on the stated EDMI cost index.
To adjust for escalation, see the current EDMI in Section 301.


Cost Index Ratio = Current EDMI divided by EDMI on the pump’s cost estimating
table.
Sample: 890 (current: from Section 301)
881 (historical: from pump estimating table)

21

PUMP ADJUSTED SUBTOTAL

For index adjustment, multiply line 19 (Pump Subtotal) by line 20 (EDMI
Ratio).
Sample: $11,200 × (890/881) = $11,300

Selecting the Driver
The next section of the worksheet involves selecting drivers, as illustrated in
steps 22 through 27.
22

DRIVER TYPE (MOTOR OR TURBINE)

If you need an electric motor:





For continuous operating duty, select a high-energy-efficient motor.
For intermittent operating duty, consider a lower-cost, standardefficiency motor.
For chemical plants and refineries, choose a TEFC (totally enclosed fancooled) motor.

If you need a steam turbine with horsepower in the range of 10 to 1,200:





Select a single-stage turbine.
Choose the turbine with the largest wheel for economy if the operating duty
is continuous.

The initial cost of the larger wheel is higher, but the more efficient wheel provides a
better payout in lower operating cost.

For a steam turbine with horsepower in the 1,000 to 15,000 range:

Select a multi-stage turbine for continuous duty.

Select a single-stage turbine for intermittent duty.
The horsepower ranges for multi-stage turbines are 1,000 to 15,000.
Cost Estimating Manual
December 1998

Page 405-11

405

Pumps

Sample: Motor
23

COST ESTIMATING SECTION/FIGURE

Depending on the driver type, enter 406 (for electric motors) or 407 (for
steam turbines) and the figure number on this line.
Sample: Section 406-1
24

SPEED RPM

Same as line 12.
Sample: 1750
25

HORSEPOWER

Same as line 15.
Sample: 15
26

MOTOR ENCLOSURE OR TURBINE CLASS/FRAME

See Section 406 “Electric Motors” or 407 “Steam Turbines.”
Sample: TEFC
27

MOTOR EFFICIENCY OR TURBINE WHEEL SIZE

See Section 406 “Electric Motors” or 407 “Steam Turbines.”
Sample: HE

Pricing the Driver
The next section of the worksheet involves pricing drivers as illustrated in
steps 28 through 32.
28

DRIVER PRICE

Enter the cost of the driver based on the specifications in lines 22 through
27 and from the driver's cost estimating table entered on line 23.
Sample: $900

Cost Estimating Manual
Page 405-12

December 1998

Estimating the Pump and Driver
29

EXTRA COST

Read the notes accompanying the driver’s cost estimating table. These
provide extra costs for certain materials.
Sample: No extra costs
30

DRIVER SUBTOTAL

The subtotal is the result of adding lines 28 and 29.
Sample: $900
31

EDMI RATIO (CURRENT/HISTORICAL)

Enter the EDMI indexes (as you did in step 20).
Sample: 890/843
32

DRIVER ADJUSTED COST

Calculate and enter the escalated price.
Sample: $900 × (890/843) = $950 (Rounded up to $1,000)

Estimating the Pump and Driver
Now that you have selected and priced both the pump and driver, you can
estimate the total cost by following steps 33 through 38.
33

PUMP & DRIVER SUBTOTAL

Enter the total of lines 21 and 32.
Sample: $12,300
34

DESIGN ALLOWANCE @ ______% OF LINE 33




Turn to Section 303 for guidance on selecting a design allowance.
Enter that number in the blank for line 33.
Calculate and enter the actual allowance in dollars.

Sample: 5%, $600
35

SUBTOTAL

Enter the total of lines 33 and 34.
Sample: $12,900

Cost Estimating Manual
December 1998

Page 405-13

405

Pumps

36

FREIGHT @ ______% OF LINE 35




Turn to Section 304 for guidance on the percentage for freight.
Enter that number in the blank for line 36.
Calculate and enter the actual freight in dollars.

Sample: 5%, $600
37

SALES TAX @ ______% OF LINE 35




Turn to Section 305 for the percentage for calculating sales tax.
Enter that number in the blank for line 37.
Calculate and enter the actual tax in dollars.

Sample: 8.5%, $1,100
38

TOTAL



Add Lines 35, 36, and 37.
Enter on Line 38 as total cost.

Sample: $14,600

Estimating Steam Consumption
For a steam-driven reciprocating pump, you can estimate the required
steam flow rate using Figure 405-7.

Cost Estimating Manual
Page 405-14

December 1998

Estimating Steam Consumption

Figure 405-7.

Steam Rate of Ordinary Steam Pumps

Cost Estimating Manual
December 1998

Page 405-15

405

Selection Curves & Cost Data for Pumps

405Selection Curves & Cost Data for Pumps
D
igure 405-8, which continues on the next page, provides a list of various pumps
A
and their selection criteria, including references to the figures that represent the
T
data for each of these pumps.
A

F

Selection Criteria
Selection Criteria
Pump
CENTRIFUGAL

Fluid/Flow

Service
2

General Service

Fluids & viscosities
below 500 SSU1

– Non-critical, non-hazardous
Heavy Duty3

Applications
If net positive suction head
(NPSH) is limited, use slower
speed pump (1800 rpm, not 3600
rpm).

– Hydrocarbon or chemical
Horizontal, Single-Stage

Figures 405-9, 405-10, 405-11
(non-API)

Most common type of centrifugal
pump.

Figures 405-12, 405-13, 405-14
(API)

Refinery process.

Horizontal, Two-Stage,
Center-Line Mounted

Figures 405-15, 405-16 (API 610)

Horizontal, Multi-Stage,
Horizontally Split Case

Figures 405-17, 405-18

Refinery, pipeline, boiler feed,
high pressure.

Single-Stage, Double-Suction,
Horizontally Split

Figures 405-19, 405-20

Cooling waters booster service,
fire pump.

Single-Stage, Double-Suction,
Radially Split

Figures 405-21, 405-22

Cooling waters booster service,
fire pump.

Vertical Inline

General Service (non-API)

Takes less space and generally
less expensive to install than
vertical.

– Figures 405-23, 405-24, 405-25
Vertical Inline

Heavy-duty Service (API-610)

Vertical Inline, High-Speed,
High-Head

Moderate Head

– Figures 405-26, 405-27, 405-28

Takes less space and generally
less expensive to install than
vertical.

For lower flow rates4

Figures 405-29, 405-30

Where space is a problem.

Sump: Figures 405-31, 405-32,
405-33

Where NPSH is a problem and
suction lift is required.5

Other Verticals

Turbine: Figures 405-35, 405-36,
405-37, 405-38

Figure 405-8.

Pump Selection Criteria (1 of 2)

Cost Estimating Manual
Page 405-16

December 1998

Selection Criteria

Selection Criteria
Pump
RECIPROCATING

Fluid/Flow

Service

High-pressure, low-tomoderate flow; or
when viscosity
excessive for
centrifugal pumps

6

Gas (steam) or motor driven

Applications
7

For utility services ; dependent
on availability of motive steam,
compressed air, or gas.
Refer to Chevron Pump Manual
for the procedure to size steam
cylinders.8

Horizontal, Valve-Plate Steam

General Service—
Figure 405-39

Where cast-iron construction
acceptable.

Horizontal Side-Pot Simplex &
Duplex

Refinery Service—
Figures 405-40, 405-41

Steel or cast-iron construction.

Horizontal Simplex, CloseClearance

Refinery Service—
Figure 405-42

For stocks with high vapor
pressure such as relief drum
pump-out (steel or cast iron
construction).

Plunger Power

High-pressure, low-tomoderate flow rate
services

Heavy Duty Service—
Figures 405-43, 405-44

Diaphragm Proportioning 9

Low flow (measured
in gph)

Heavy Duty Service—
Figures 405-45, 405-46

Eliminate the stuffing box that
may be a source of leakage in
plunger pumps.

Plunger Proportioning9

Low flow (measured
in gph)

Heavy Duty Service—
Figures 405-47, 405-48, 405-49

For same services as diaphragm
pumps but can operate at higher
pressures.

ROTARY10

Handle high-viscosity
stocks more efficiently
than other pumps

Large—
Figures 405-50, 405-51, 405-52

Unsuitable for non-lubricating
stocks in continuous service.

1
2
3
4
5
6

7
8

9
10

The selection curves for centrifugal pumps are based on viscosities under 100 SSU. For higher viscosities, see the Chevron Pump
Manual to learn the effect of viscosity on head, capacity, and efficiency for centrifugal pumps.
Usually built to ANSI standards.
Usually built to API Standard 610.
Higher flow rates require horizontal two-stage or multistage pumps.
For example, for wells, sumps, and seawater lift.
If viscosity exceeds 250 SSU, consider a pump that can handle a larger flow rate at a slower speed to overcome the suction
problems of viscous stocks. To do this, correct the flow rate by multiplying it times a correction factor (Figure 405-5). Use the
increased rate to select a larger pump that can then operate with a slower piston speed.
For example, for low-pressure boiler feed water, sump pump-out, relief drum pump-out, or stock transfer.
In simple terms and ignoring efficiency, the steam differential pressure multiplied by the area of the steam piston must exceed the
liquid differential pressure multiplied by the area of the liquid piston, or the pump will stall. Use Figure 405-7 to estimate steam
consumption rates.
Proportioning pumps, sometimes called metering pumps, deliver accurate quantities of liquids into a process or system.
These positive displacement pumps are most commonly used to circulate lubricating oil for mechanical equipment, or to provide
pressure for hydraulic operating systems.

Figure 405-8.

Pump Selection Criteria (2 of 2)

Cost Estimating Manual
December 1998

Page 405-17

D
A
T
A

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: ANSI

Material Class

A-3: Duct Iron

Max. Temp

Pump
Mark

F

350oF

260 psi

190 psi

212

Max. Case Press

Pump Eff.

F-2: 316 SS

Cost
$

o

Add for 12%
Chrome
Impeller

Cost
$

Pump
Wt Lbs

A

59%

$2,100

$60

$3,100

190

B

64%

$2,100

$90

$3,300

200

C

66%

$2,300

$100

$3,700

200

D

54%

$2,300

$100

$3,400

200

E

50%

$2,400

$200

$3,700

200

F

57%

$2,900

$300

$4,400

500

G

72%

$3,600

$300

$5,700

500

H

45%

$2,800

$200

$4,100

500

I

52%

$2,900

$200

$4,400

500

J

55%

$3,000

$200

$4,800

500

K

59%

$3,700

$200

$5,900

600

M

68%

$4,400

$200

$6,700

600

N

71%

$4,400

$200

$6,800

600

O

48%

$3,300

$200

$5,400

500

P

53%

$3,700

$200

$6,100

600

Q

65%

$4,000

$300

$7,300

600

S

72%

$4,500

$300

$7,700

700

T

66%

$7,900

$800

$13,100

1,000

U

68%

$8,600

$900

$14,400

1,100

V

66%

$8,400

$1,000

$14,000

1,100

X

72%

$8,800

$1,100

$14,900

1,100

Y

77%

$9,900

$1,100

$16,900

1,000

– Prices are for Goulds 3196 ANSI pumps, conforming to ANSI Standard
B73.1-1975 and specification PMP-MS-124.
– Price includes pump, base plate, mechanical seal, coupling, and guard
(F.O.B. shipping point).

Figure 405-9.

Cost Data for ANSI Single-Stage Horizontal Centrifugal Pumps at EDMI = 881

Cost Estimating Manual
Page 405-18

December 1998

Centrifugal Pumps: ANSI

D
A
T
A

Figure 405-10. Selection Curves for ANSI Single-Stage Horizontal Centrifugal Pumps 3500 rpm

Figure 405-11. Selection Curves for ANSI Single-Stage Horizontal Centrifugal Pumps 1750 rpm

Cost Estimating Manual
December 1998

Page 405-19

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: API, Single-Stage Horizontal

Material Class
Mark

B-1, B-2 Steel

B-3 Steel
12% Chrome

F-2
316 SS

Weight
Lbs

A1

$7,900

$8,200

$17,500

575

B1

$8,000

$8,400

$18,600

800

C1

$8,200

$8,800

$20,300

1,100

D1

$10,400

$12,300

$25,100

1,300

E1

$8,000

$8,500

$12,500

600

F1

$8,500

$9,100

$20,000

800

G1

$8,600

$8,700

$19,300

700

H1

$9,000

$9,400

$21,400

1,000

I1

$11,400

$11,700

$20,000

1,400

J1

$9,300

$9,900

$22,200

800

K1

$9,300

$9,900

$22,000

1,200

L1

$11,200

$11,700

$26,000

1,500

M1

$9,300

$9,900

$22,000

1,000

N1

$9,900

$11,000

$24,400

1,100

P1

$10,500

$11,000

$25,100

1,400

Q1

$11,900

$12,500

$27,800

1,600

R1

$12,500

$13,500

$27,800

1,300

S1

$13,000

$14,100

$31,000

1,700

T1

$13,200

$14,200

$32,600

1,400

X1

$19,800

$20,800

$45,800

1,700

Y1

$22,700

$24,000

$53,000

2,500

Z1

$19,600

$22,400

$40,000

3,200

A2

$22,100

$25,100

$55,000

3,600

B2

$26,000

$29,600

$58,000

3,600

– Prices are for United Centrifugal Pumps (BW/IP), conforming to API Standard 610-7th edition
and specification PMP-MS-983.
– Price includes pump, mechanical seal, base plate, coupling, and guard (F.O.B. shipping point).
– Maximum case working pressure is 600 psig.

Figure 405-12. Cost Data for API Single-Stage Horizontal Centrifugal Pumps at EDMI = 881

Cost Estimating Manual
Page 405-20

December 1998

Centrifugal Pumps: API, Single-Stage Horizontal

D
A
T
A

Figure 405-13. Selection Curves for Single-Stage Centrifugal Pumps, Horizontal, Center-Line Mounted 3550 rpm

Figure 405-14. Selection Curves for Single-Stage Centrifugal Pumps, Horizontal, Center-Line Mounted 1750 rpm

Cost Estimating Manual
December 1998

Page 405-21

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Two-Stage, Center-Line Mounted

Mat’l Class B-1 & B-2
Pump
Mark

Overhung
Impellers

Material Class B-3

Double
Outboard
Bearings

Overhung
Impellers

Double
Outboard
Bearings

$31,000

Material Class F-2
Overhung
Impellers

Double
Outboard
Bearings

Weight
Lbs

A3

$29,000

$50,000

1,000

B3

$34,000

$49,600

$26,000

$50,300

$54,000

$69,000

2,000

C3

$34,000

$49,000

$36,000

$50,000

$57,000

$67,000

2,300

D3

$39,000

$56,100

$40,000

$57,200

$61,000

$78,000

3,100

E3

$63,800

$64,700

$88,000

3,700

F3

$78,500

$79,100

$104,000

4,900

G3

$81,400

$84,000

$118,000

7,000

– Prices are for United Centrifugal Pumps (BW/IP), conforming to API Standard 610 - 7th edition and specification
PMP-MS-983.
– Price includes pump, base plate, coupling, and guard ( F.O.B. shipping point).
– Maximum case pressure is 800 psig.
– To equip pump with mechanical seal, add the following amounts given for the designs shown in Figure 405-16.


Add $1,200 for overhung impeller design.



Add $2,400 (seals good to 450°F, except B-1 to 350°F) for double outboard bearing design.

– For E-1 material class and temperatures of 700° - 800°F, add 25% to B-3 material cost.
– For 12 percent chrome impellers and impeller wear rings in material classes B-1 and B-2, deduct 1.5 percent from
B-3 prices.

Figure 405-15.Cost Data for Two-Stage Center-Line-Mounted Centrifugal Pumps EDMI = 881

Cost Estimating Manual
Page 405-22

December 1998

Centrifugal Pumps: Two-Stage, Center-Line Mounted

D
A
T
A

Figure 405-16. Selection Curves for Two-Stage, Center-Line-Mounted Centrifugal Pumps 3500 rpm

Cost Estimating Manual
December 1998

Page 405-23

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Multi-Stage, Horizontally Split Case

Pump
Mark

Cost $
B-1 & B-2
Mat’l

Max. Case
Pressure

Pump
Mark

Cost $
B-1 & B-2
Mat’l

Max. Case
Pressure

A4

$40,000

1,500

F4

$48,000

1,300

A6

$45,000

1,500

F6

$56,000

1,300

A8

$50,000

1,500

F8

$64,000

1,300

A10

$55,000

2,200

G4

$55,000

1,300

C4

$41,000

1,500

G6

$66,900

1,300

C6

$47,000

1,500

H3

$50,000

1,300

C8

$52,000

1,500

I4

$60,000

1,300

C10

$57,000

2,200

I6

$75,000

1,300

E4

$48,000

1,300

J2

$63,000

1,500

E6

$56,000

1,300

J4

$70,000

1,300

E8

$64,000

1,300

– Prices are for United Centrifugal Pumps (BW/IP), conforming to API Standard 610 - 7th edition
and specification PMP-MS-983.
– Price includes coupling, guard and base plate (F.O.B. shipping point).
– To equip pumps with mechanical seals, add $3,000 per pump. Seal cost includes spacer
coupling. This type of seal can be repaired without removing the top half of pump case.
– Pump mark numbers indicate number of stages.
– For 12% chrome impellers and impeller wear rings, add 15% to cost.

Figure 405-17. Cost Data for Multi-Stage Centrifugal Pump with Horizontally Split Case; EDMI = 881

Cost Estimating Manual
Page 405-24

December 1998

Centrifugal Pumps: Multi-Stage, Horizontally Split Case

PUMP CAPACITY - GALLONS PER MINUTE

D
A
T
A

Figure 405-18. Selection Curves for Multi-Stage Centrifugal Pump with Horizontal Split Case 3550 rpm

Cost Estimating Manual
December 1998

Page 405-25

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Single-Stage, Double-Suction, Horizontally Split Case

Pump Mark

Cost $

Weight

Pump Mark

Cost $

Weight

1

$5,400

690

17

$6,100

930

2

$5,700

770

18

$12,800

2660

3

$6,600

1160

19

$14,700

2940

4

$7,600

1570

20

$28,300

5060

5

$12,800

2110

21

$26,400

4380

6

$15,700

2810

22

$31,400

6630

7

$15,900

2830

23

$32,700

6560

8

$5,600

740

24

$35,500

7160

9

$6,800

1160

25

$28,000

4550

10

$7,200

1380

26

$29,400

4850

11

$7,900

1740

27

$48,700

10330

12

$14,100

2520

28

$51,400

10830

13

$12,900

2390

29

$54,300

11450

14

$15,200

2810

30

$50,100

10160

15

$6,600

1130

31

$71,900

16270

16

$7,500

1610

32

$116,400

26900

– Prices are for Goulds Models 3410, 3415-DV, and 3420. Price includes coupling, guard, base,
and freight (F.O.B. shipping point).
– Pump includes cast iron case; bronze impeller, shaft sleeve, and wear rings; API 682 Seals.
– For steel case, 316 SS trim or all stainless steel, consult manufacturer.

Figure 405-19. Cost Data for Single-stage, Double-Suction Centrifugal Pumps at EDMI = 881

Cost Estimating Manual
Page 405-26

December 1998

Centrifugal Pumps: Single-Stage, Double-Suction, Horizontally Split Case

PUMP CAPACITY - GALLONS PER MINUTE

D
A
T
A

Total Differential Head - Feet
Figure 405-20. Selection Curves for Single-Stage, Double-Suction Centrifugal Pumps

Cost Estimating Manual
December 1998

Page 405-27

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Single-Stage, Double-Suction, Radially Split

Material Class
Pump Mark

B-3 Steel

E-1 12%
Chrome

F-2 316 SS

Pump & Base
Weight (lbs)

A

$50,100

$60,700

$70,500

3,400

B

$52,300

$63,500

$73,000

3,500

C

$55,800

$64,200

$76,300

4,000

D

$58,800

$70,900

$78,900

4,700

E

$52,700

$61,100

$66,200

3,500

F

$55,700

$65,800

$76,500

4,100

G

$61,400

$75,300

$89,400

5,000

H

$70,400

$87,500

$103,800

6,300

I

$76,000

$95,550

$112,700

7,200

J

$67,500

$146,800

$170,600

10,300

K

$70,900

$89,100

$104,800

6,300

L

$74,700

$95,000

$111,800

7,000

M

$83,500

$105,700

$123,900

8,000

N

$85,400

$108,200

$127,100

8,400

O

$120,400

$148,900

$173,600

10,500

P

$126,200

$156,600

$182,000

11,000

– Prices are for Bingham CD Pumps, conforming to API Standard 610 - 7th edition and
specification PMP-MS-983.
– Price includes pump, baseplate, coupling, mechanical seal (F.O.B. shipping point).

Figure 405-21. Cost Data for Single-Stage, Double-Suction, Radically Split Centrifugal Pumps at
EDMI = 881

Cost Estimating Manual
Page 405-28

December 1998

Centrifugal Pumps: Single-Stage, Double-Suction, Radially Split

D
A
T
A

Figure 405-22. Selection Curves for Single-Stage, Double-Suction Radially Split Centrifugal Pumps at 3560 rpm (except as noted)

Cost Estimating Manual
December 1998

Page 405-29

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Vertical Inline

Material Class

B-1

F-2

Max Temp

212F

350F

Max Case Press

260 psi

190 psi

Pump
Mark

Pump
Eff.

$

Add for
316 SS
Imp

$

Add for
WaterJacketed
Stuffing
Box

Lbs

$

A

41 %

$2,900

$140

$3,600

190

$600

B

44 %

$3,200

$150

$3,900

200

$600

C

37 %

$3,500

$190

$5,000

400

$600

D

57 %

$3,100

$180

$4,100

200

$600

E

54 %

$3,900

$200

$5,500

390

$600

F

51 %

$4,000

$270

$7,000

490

$600

G

59 %

$4,200

$260

$6,400

430

$600

H

63 %

$4,300

$390

$7,700

520

$600

I

69 %

$5,000

$390

$9,100

610

$600

J

53 %

$3,000

$160

$3,800

190

$600

K

57 %

$3,200

$170

$4,100

200

$600

L

49 %

$3,600

$180

$5,100

360

$600

M

45 %

$3,600

$240

$5,800

440

$600

– Prices are for Goulds 3996 vertical inline pumps.
– Price includes pump, mechanical seal, coupling, coupling guard (F.O.B. shipping point).
– Prices do not include motor. See Figure 405-29 for motor prices.
– Selection curves are for maximum diameter impellers and are terminated at peak
efficiencies.

Figure 405-23. Cost Data for Non-API Vertical Inline Pumps at EDMI = 881

Cost Estimating Manual
Page 405-30

December 1998

Centrifugal Pumps: Vertical Inline

D
A
T
A

Figure 405-24. Selection Curves for Non-API Inline Centrifugal Pumps; 1750 rpm

Figure 405-25. Selection Curves for Non-API Inline Centrifugal Pumps; 3500 rpm

Cost Estimating Manual
December 1998

Page 405-31

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Moderate Head, Vertical Inline

Pump
Mark

B-1 Mat’l

E-1 Mat’l

F-1 Mat’l

1

$7,000

$9,300

$11,500

2

$7,500

$9,400

3

$7,500

4

Pump
Mark

B-1 Mat’l

E-1 Mat’l

F-1 Mat’l

16

$10,000

$15,000

$18,000

$12,000

17

$10,000

$15,000

$18,000

$9,400

$12,000

18

$12,000

$17,000

$19,000

$7,800

$9,600

$12,200

19

$11,000

$16,000

$18,000

5

$7,800

$9,600

$12,200

20

$16,000

$20,000

$24,000

6

$7,800

$10,000

$12,900

21

$16,000

$20,000

$24,000

7

$7,900

$10,200

$13,000

22

$16,000

$20,000

$24,000

8

$9,000

$13,000

$15,000

23

$16,000

$20,000

$24,000

9

$8,500

$11,000

$15,000

24

$40,000

$57,000

$65,000

10

$9,000

$13,000

$15,000

25

$40,000

$57,000

$65,000

11

$9,000

$13,000

$15,000

26

$40,000

$57,000

$65,000

12

$9,000

$13,000

$15,000

27

$40,000

$57,000

$65,000

13

$14,000

$20,000

$28,000

28

$24,000

$35,000

$46,000

14

$9,000

$13,000

$15,000

29

$33,000

$40,000

$53,000

15

$17,000

$25,000

$29,000

30

$33,000

$41,000

$53,000

– Prices are for United Centrifugal Pumps (BWIP), conforming to API Standard 610 - 7th edition
and specification PMP-MS-983.
– Prices include pump, spacer coupling, threaded impeller nut, impeller wear ring, 18-8 SS
shaft sleeve, and mechanical seal (F.O.B. shipping point).
– Prices do not include motor. See Figure 405-29 for motor prices.
– For water jacketed pumps, add $400.
– For 12% chrome impellers and wear rings in material class B-1, add 12% to B-1 costs for
Marks 1 through 21, and 10% for Marks 22 through 30.

Figure 405-26. Cost Data for Moderate Head Vertical Inline API Centrifugal Pumps at EDMI = 881

Cost Estimating Manual
Page 405-32

December 1998

Centrifugal Pumps: Moderate Head, Vertical Inline

D
A
T
A

Figure 405-27. Selection Curves for Moderate Head Vertical Inline API Centrifugal Pumps; 1800 rpm (except as noted)

Figure 405-28. Selection Curves for Moderate Head Vertical Inline API Centrifugal Pumps; 3600 rpm

Cost Estimating Manual
December 1998

Page 405-33

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: High-Speed, High-Head Vertical Inline
Vertical Pump Prices1
Pump
Mark
A

40%

Material Class
B1
F2
$8,600

Weight
Lbs

$12,500

HP

250

TEFC

XP

Weight
Lbs

3

$650

$750

110

5

$850

$980

110

C

40%

$10,000

$14,000

250

7.5

$980

$1,100

185

D

40%

$12,000

$15,000

250

10

$1,200

$1,400

185

15

$1,700

$2,000

260

20

$1,700

$2,100

260

25

$2,000

$2,500

330

F

1

Pump
Eff.

Vertical Motor Prices2

40%

$14,500

$19,500

250

H

60%

$14,600

$17,200

400

30

$2,300

$2,900

400

I

60%

$14,600

$17,200

400

40

$2,700

$3,500

730

J

60%

$14,600

$17,200

400

50

$3,600

$4,400

730

K

60%

$18,100

$19,800

400

60

$4,700

$5,600

1,100

L

60%

$21,900

$23,400

400

75

$5,700

$7,200

1,100

M

60%

$21,900

$23,400

400

100

$6,600

$9,000

1,410

N

60%

$21,900

$23,400

400

125

$8,200

$9,500

1,950

O

60%

$21,900

$23,400

400

150

$10,000

$11,000

3,200

P

60%

$21,900

$23,400

400

200

$13,000

$14,000

3,200

R

60%

$18,900

$20,900

450

S

60%

$22,700

$24,400

450

T

60%

$24,800

$26,700

450

U

60%

$30,300

$32,500

450

W

60%

$36,400

$39,700

450

Prices are for Sundyne pumps or equal conforming to API Standard 610, 7th edition and PMP-MS-983.
Price includes pump, gearbox, single mechanical seal, seal flush connections, and 600 psi raised-faced
flanges.
– To equip pump with a tandem mechanical seal, add $850 per pump.
– To comply with API plan 52, add $8,000 per pump.
– For high-capacity thrust bearings (suction pressure 450-1,000 psig), add $1,200 to pumps H through P.
– To equip pump with integral centrifugal separator (for seal fluid flush), add $750 per pump.
– To equip pump with 900 psi ring-type joint flanges, add $1,000 for material class B-1, and $3,000 for
material class F-2.

2

Motor prices are for 3,600 RPM, 230/460 Volt; 200 HP is 2,300 volts.
General
Cooling water jackets are included only with Pumps H through W.
Prices are F.O.B. shipping point.
Figure 405-29. Cost Data for High-Head, High-Speed, Vertical inline API Centrifugal Pumps at EDMI = 881

Cost Estimating Manual
Page 405-34

December 1998

Centrifugal Pumps: High-Speed, High-Head Vertical Inline

D
A
T
A

Figure 405-30. Selection Curves for High-Head, High-Speed, Vertical Inline API Centrifugal Pumps

Cost Estimating Manual
December 1998

Page 405-35

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Vertical Sump

Material Class

A-3 Cast Iron
o

Max Temp
Pump
Mark

400oF

180 F

Pump
Eff.

Single

F-2 316 SS

Duplex

Single

Duplex

Weight
(lbs)

1

41%

$3,900

$10,000

$6,700

$18,900

400

2

48%

$4,000

$10,300

$6,900

$19,500

400

3

52%

$4,200

$11,000

$7,300

$20,900

400

4

45%

$4,200

$11,100

$7,400

$21,200

500

5

38%

$4,400

$12,000

$7,800

$23,000

500

6

38%

$4,800

$12,300

$8,400

$23,500

500

7

61%

$5,000

$12,700

$8,800

$24,300

500

8

50%

$5,100

$13,000

$9,100

$24,900

600

9

65%

$5,400

$14,100

$9,700

$27,100

500

10

42%

$6,000

$14,300

$10,700

$27,200

700

11

54%

$6,400

$15,800

$11,400

$30,000

700

12

53%

$6,500

$16,200

$11,700

$31,100

700

13

62%

$6,700

$16,900

$12,100

$32,500

800

14

66%

$6,900

$17,200

$12,500

$33,000

800

15

65%

$7,000

$17,700

$12,500

$34,100

800

16

64%

$11,900

$32,100

$22,300

$62,700

1,100

17

67%

$18,900

$21,000

$30,400

$60,700

1,100

– Prices are for Goulds Model 3171 vertical sump pumps. They are normally used for
storm water runoff or oily water.
– Price includes rubber bottom bearing, pit cover, coupling, guard, float switch, alternator, 5
feet pit depth, freight (F.O.B shipping point).
– Price does not include motor driver, see motor prices in Figure 405-29.

Figure 405-31. Cost Data for Vertical Centrifugal Sump Pumps at EDMI = 881

Cost Estimating Manual
Page 405-36

December 1998

Centrifugal Pumps: Vertical Sump

D
A
T
A

Figure 405-32. Selection Curves for Vertical Centrifugal Sump Pumps; 1750 rpm

Figure 405-33. Selection Curves for Vertical Centrifugal Sump Pumps; 3500 rpm

Cost Estimating Manual
December 1998

Page 405-37

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Centrifugal Pumps: Vertical Turbine

Services for VIT open-type pump include
irrigation, fire pumps, service water, deep
well, drainage, municipal water supply.

Services for the VIC can-type pump include
pipeline booster, product unloading, refinery
blending, injection-secondary recovery,
ammonia transfer.

Figure 405-34. Illustrations of Vertical Turbine Pumps

Cost Estimating Manual
Page 405-38

December 1998

Centrifugal Pumps: Vertical Turbine

HP

1,800 RPM

3,600 RPM

½

$900

$900

¾

$900

1

HP

Add for
Heavy
Duty
Bearings

1,800 RPM

3,600 RPM

40

$2,000

$2,000

$150

$900

50

$2,500

$2,300

$180

$900

$900

60

$3,700

$2,900

$200

3

$900

$900

75

$2,700

$3,500

$300

5

$900

$900

100

$4,500

$4,600

$400



$1,000

$900

125

$5,900

$9,200

$500

10

$1,000

$1,000

150

$7,300

$11,800

$600

15

$1,200

$1,200

200

$10,300

$13,500

$800

20

$1,300

$1,300

250

$11,000

$20,500

$500

25

$1,600

$1,300

300

$14,200

$24,800

$600

30

$1,800

$1,600

350

$16,700

$29,200

$700

Notes for Motors and Pumps:
– Prices are for Goulds model VIT open pump with flanged cast iron discharge heads, 316 SS
shaft, bronze closed impeller, bronze intermediate bearings or all 316 SS parts and FOB
shipping point.
– Add 5% for a model VIC pump—a vertical industrial can pump designed for inline applications
with low NPSH. Consult vendor if you need this pump built to API-610 Standards.
– Heavy duty bearings are required for lengths greater than 50 feet, or more than 5 stages
because of increased vertical thrust. Add cost for heavy duty bearings to motor price.

Figure 405-35. Cost Data for Vertical, Hollow-Shaft, Electrical Motors at EDMI = 881

Cost Estimating Manual
December 1998

Page 405-39

D
A
T
A

405

D
A
T
A

Selection Curves & Cost Data for Pumps
Max for SingleStage Impellers

A-3 Cast Iron

F-2 316 SS

>20 Ft Lengths

Pump
Mark

Bowl
Size

1

6"

.2 HP @ 1,800
1.6 HP @ 3,600

$7,100

$200

$11,000

$1,500

2

6"

.8 HP @ 1,800
6 Hp @ 3,600

$7,300

$200

NA

NA

3

7"

.5 HP @ 1,800
4 HP @ 3,600

$7,400

$200

$11,100

$1,600

4

8"

1 HP @ 1,800
7 HP @ 3,600

$7,500

$300

$11,800

$2,000

5

6"

2.6 HP @ 1,800
20 HP @ 3,600

$8,500

$300

NA

NA

6

8"

2.6 HP @ 1,800
20 HP @ 3,600

$8,500

$300

$13,100

$2,000

7

9"

1.5 HP @ 1,800
11 HP @ 3,600

$9,800

$400

$14,700

$2,100

8

9"

4 HP @ 1,800
30 HP @ 3,600

$10,500

$400

$15,400

$200

9

9"

4 HP @ 1,800
30 HP @ 3,600

$8,200

$400

$12,300

$2,800

10

10"

8 HP @ 1,800
30 HP @ 3,600

$8,400

$500

NA

NA

11

10"

10 HP @ 1,800
75 HP @ 3,600

$9,100

$500

$16,500

$3,900

12

10"

12 HP @ 1,800

$9,200

$500

$17,400

$4,200

13

10"

15 HP @ 1,800

$9,400

$600

$16,500

$3,800

14

11"

10 HP @ 1,800
75 HP @ 3,600

$9,500

$600

$16,700

$4,600

15

12"

25 HP @ 1,800

$9,600

$700

NA

NA

16

12"

25 HP @ 1,800

$9,900

$700

$19,000

$4,800

17

12"

35 HP @ 1,800

$10,000

$700

$18,200

$5,000

18

13"

21 HP @ 1,800
170 HP @ 3,600

$10,100

$900

$20,300

$5,000

19

14"

62 HP @ 1,800

$12,100

$1,100

$24,300

$7,800

20

14"

75 HP @ 1,800

$12,300

$1,200

$25,100

$7,400

21

14"

80 HP @ 1,800

$12,300

$1,100

$25,000

$7,700

22

14"

60 HP @ 1,800

$12,300

$1,100

$26,700

$8,100

23

16"

100 HP @ 1,800

$14,400

$2,600

$28,000

$10,700

24

16"

160 HP @ 1,800

$16,200

$2,200

$28,100

$10,500

25

18"

180 HP @ 1,800

$27,300

$3,700

$48,800

$11,500

26

18"

180 HP @ 1,800

$37,400

$3,100

$35,800

$11,800

27

18"

230 HP @ 1,800

$22,000

$3,700

$40,000

$12,200

28

20"

300 HP @ 1,800

$21,500

$4,100

Consult Vendor

29

20"

240 HP @ 1,800

$18,900

$3,900

Consult Vendor

HP @ RPM

Single
Stage

Add’l
Stages

Single
Stage

Add’l
Stages

Col. Pipe
Diam

Add’l per
Foot

4"

$220

6"

$290

8"

$200

10"

$270

12"

$280

14"

$380

Electric motors with hollow shafts are standard for this pump, see Figure 405-27. Heavy duty bearings are required for
lengths greater than 50 feet, or more than 5 stages because of increased vertical thrust.
Max. temperature is 180°F for cast iron pumps; 300°F for 316 stainless steel. Max. pressure is 270 psig.
Prices for pump marks 1–24 include cast iron discharge heads; 25–29, fabricated discharge heads.
Fabricated discharge heads are designed for high pressure or high capacity. Consult vendor to adjust price for fabricated
discharge heads in lieu of cast iron heads for pump marks 1 through 24.

Figure 405-36. Cost Data for Vertical Turbine Pumps at EDMI = 881

Cost Estimating Manual
Page 405-40

December 1998

Centrifugal Pumps: Vertical Turbine

D
A
T
A

Figure 405-37. Selection Curves for Single-Stage Vertical Turbine Pumps; 1800 rpm

Figure 405-38. Selection Curves for Single-Stage Vertical Turbine Pumps; 3600 rpm

Cost Estimating Manual
December 1998

Page 405-41

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Reciprocating Pumps: General Service, Horizontal, Valve-Plate Steam

Maximum Liquid End
Working Pressure
psig

2503
(Type VC)

Fully Bronze
Fitted
$

All Iron
Fitted
$

Capacity1
gpm

Size2

12

3×2×3

$19,400

$22,300

29

4.5 × 2.75 × 4

$28,100

$32,300

78

6×4×6

$34,300

$39,400

123

7.5 × 5 × 6

$40,000

$46,000

168

9 × 5.25 × 10

$42,800

$49,200

220

10 × 6 × 10

$46,300

$53,200

300

10 × 7 × 10

$48,400

$55,600

1

Capacities listed are for viscosity not over 250 SSU. For higher viscosity, refer to Figure 405-7
to adjust capacity and then adjust pump price accordingly.
2 Sizes shown are diameter of steam cylinder times diameter of liquid cylinder times stroke
length.
3 Prices are for Ingersoll Dresser Pumps (Type VC), conforming to API standard 674 (F.O.B.
shipping point).
– Add $700 for mechanical lubricator (used primarily for lubricating steam side).


Add $1,400 for three-feed lubricator (used for lubricating steam side and liquid side at
stuffing box).

Figure 405-39. Cost Data for General Service, Horizontal, Valve-Plate Steam Reciprocating Pumps
at EDMI = 881

Cost Estimating Manual
Page 405-42

December 1998

Reciprocating Pumps: Horizontal Simplex, Side-Pot Steam

Reciprocating Pumps: Horizontal Simplex, Side-Pot Steam

Maximum Working Pressure & Prices
Max
Capacity1
GPM

Size: Dia Stm Cyl × Dia
Liq Cyl × Stroke
(Inches)

600 psi (ARL)
Cast Iron
Cylinder Disc.
Valves

750 psi (ARLH)
Steel Cylinder
Disc. Valves

20

6×3×8

$20,600

$26,800

46

6 × 4 × 12
8 × 4 × 12

$25,600

$33,300

10 × 4 × 12

$37,400

$48,600

6 × 5 × 12

$27,100

$35,200

75

105

150

140

270

375

500

8 × 5 × 12

$28,500

$37,100

10 × 5 × 12

$25,900

$33,700

12 × 6 × 12

$35,100

$45,600

8 × 6 × 12

$32,000

$41,600

10 × 6 × 12

$28,200

$36,700

12 × 6 × 12

$31,100

$40,400

8 × 7 × 12

$36,200

$47,100

10 × 7 × 12

$30,900

$40,100

12 × 7 × 12

$33,400

$43,400

14 × 7 × 12

$36,600

$47,500

8 × 6 × 18

$28,500

$37,100

10 × 6 × 18

$36,400

$47,300

12 × 6 × 18

$48,600

$63,200

10 × 8.5 × 18

$46,500

$60,500

12 × 8.5 × 18

$58,400

$75,900

14 × 8.5 × 18

$60,400

$78,500

16 × 8.5 × 18

$78,800

$102,400

18 × 8.5 × 18

$95,100

$123,600

12 × 10 × 18

$56,200

$73,000

14 × 10 × 18

$62,200

$80,800

16 × 10 × 18

$68,300

$88,800

18 × 10 × 18

$82,700

$107,500

20 × 10 × 18

$97,500

$126,700

14 × 12 × 24

$88,400

$114,900

16 × 12 × 24

$104,000

$135,200

18 × 12 × 24

$121,700

$158,200

20 × 12 × 24

$141,500

$184,000

Add for Water-Cooled
Stuffing Box

Cylinder:
Cast Iron

Cylinder:
Steel

29%

19%

20%

13%

1

Capacities listed are for viscosity not over 250 SSU. For higher viscosity, adjust capacity by reference to Figure 405-5
and price pump accordingly.
2 Prices are for Ingersoll Dresser Pumps conforming to API Standard 674 (F.O.B. shipping point).
– Add $700 for mechanical lubricator (for lubricating steam side).


Add $1,200 for two-feed mechanical lubricator (for lubricating steam & liquid sides at stuffing box).

Figure 405-40.Cost Data for Horizontal Simplex, Side-Pot Steam Reciprocating Pumps at EDMI = 881

Cost Estimating Manual
December 1998

Page 405-43

D
A
T
A

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Reciprocating Pumps: Horizontal Duplex, Side-Pot Steam
Maximum Working Pressure &
Prices2
Max
Capacity1
GPM

Size
Dia Stm Cyl x Dia Liq Cyl x
Stroke (Inches)

500 psi (ARL)
Cast Iron
Cylinder Disc.
Valves

Add for Water-Cooled
Stuffing Box

750 psi (ARLH)
Steel Cyl. Wing
Valves

60

6×4×6

$33,200

$43,200

100

10 × 4.5 × 10

$40,100

$52,100

150

210

295

275

370

540

750

815

1150

8 × 5 × 12

$35,600

$46,300

10 × 6 × 12

$50,000

$65,000

12 × 4 × 12

—-



8 × 6 × 12

$40,000

$52,000

10 × 6 × 12

$50,000

$65,000

12 × 6 × 12

$50,800

$66,100

14 × 7 × 12

$55,400

$72,000

10 × 7 × 12

$54,800

$71,200

12 × 7 × 12

$54,500

$70,800

12 × 6 × 12

$50,800

$66,100

10 × 6 × 18

$65,300

$84,900

12 × 7 × 18

$92,700

$120,500

14 × 7 × 18

$93,800

$121,900

10 × 7 × 18

$71,600

$93,100

12 × 7 × 18

$92,700

$120,500

14 × 7 × 18

$93,800

$121,900

12 × 8.5 × 18

$103,800

$134,900

14 × 8.5 × 18

$107,300

$139,500

16 × 8.5 × 18

$110,800

$14,400

12 × 10 × 18

$117,200

$152,400

14 × 10 × 18

$124,400

$161,700

16 × 10 × 18

$128,200

$166,700

18 × 10 × 18

$140,500

$182,600

14 × 10 × 24

$165,800

$216,500

16 × 10 × 24

$170,900

$222,000

18 × 10 × 24

$187,300

$243,500

20 × 10 × 24

$257,900

$335,300

18 × 12 × 24

$206,700

$268,700

20 × 12 × 24

$242,000

$314,600

Cylinder:
Cast Iron

Cylinder:
Steel

37%

19%

19%

13%

1

Capacities listed are for viscosity not over 250 SSU. For higher viscosity, adjust capacity by reference to Figure 405-5
and price pump accordingly.
2 Prices are for Ingersoll Dresser Pumps conforming to API Standard 674 (F.O.B. shipping point).
– Add $700 for mechanical lubricator (for lubricating steam side).


Add $1,400 for three-feed mechanical lubricator for duplex pumps (for lubricating steam and liquid sides at
stuffing box).

Figure 405-41. Cost Data for Horizontal Duplex, Side-Pot Steam Reciprocating Pumps at EDMI = 881

Cost Estimating Manual
Page 405-44

December 1998

Reciprocating Pumps: Horizontal Simplex, Close-Clearance Steam

Reciprocating Pumps: Horizontal Simplex, Close-Clearance Steam

Maximum Working Pressure & Prices2
Max.
Cap.1
GPM

Size
Dia. Stm Cyl × Dia Stm
Cyl × Stroke (Inches)

12

6×3×8

27

6 × 4 × 12

62

750 psi
Steel Cylinder Disc
Valves

$31,300

$36,000

$29,400

$33,800

8 × 5 × 12

$32,000

$36,800

10 × 5 × 12

$31,900

$36,800

$34,000

$39,000

$36,000

$41,000

14 × 7 × 18

$41,200

$52,900

10 × 8 × 18

$50,000

$57,500

14 × 8.5 × 18

$64,500

$74,200

12 × 10 × 18

$61,000

$70,000

$72,200

$83,000

8 × 4 × 12
43

600 psi
Cast Iron Cyl. Disc
Valves

6 × 5 × 12

6 × 6 × 12
8 × 6 × 12
10 × 6 × 12

84

8 × 7 × 12
10 × 7 × 12
12 × 7 × 18
14 × 7 × 18

108

8 × 7 × 18
10 × 7 × 18
12 × 7 × 18

160

12 × 8.5 × 18

220

12 × 8.5 × 18
16 × 10 × 18

For service likely to accumulate air or vapor within the body of the pump (e.g., relief drum
pump-out service), select a close-clearance pump.
1

Capacities listed are for viscosity not over 250 SSU. For higher viscosity, adjust capacity by
referring to Figure 405-5 and price pump accordingly.
2 Prices are for Ingersoll Dresser Pumps (Type AO-HIVOL), conforming to API Standard 674
(F.O.B. shipping point). Add $740 for mechanical lubricator.
Figure 405-42. Cost Data for Horizontal Simplex, Close-Clearance Reciprocating Steam Pumps at
EDMI = 881

Cost Estimating Manual
December 1998

Page 405-45

D
A
T
A

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Reciprocating Pumps: Plunger Power

Pump Mark

Pump Size1

1

2"

2

Pump Cost2

Type of Drive

HP Limit3

$13,000

V-belt

30

3"

$14,900

V-belt

60

3

3H"

$15,800

V-belt

60

4

4"

$26,300

Direct

125

5

5"

$41,000

Direct

165

6

6H"

$45,300

Direct

202

1

Pump size listed in table is pump stroke. “H” designates high pressure.
All prices are for Wilson Snyder Triplex Plunger Pumps. Price includes pump and base
plate extended for driver, coupling and guard or V-belts, sheaves, guards with adjustable mounts (F.O.B. shipping point).
Price does not include motor driver (1800 RPM). Direct drive includes gear reducer.
Add $1,100 for mechanical lubricators.
3 Discharge pressure is maximum for each size. Driver horsepowers are for suction
pressures (psig.) of 5% of discharge or less. When suction pressure exceeds 5% of
discharge pressure, calculate brake horsepower using an efficiency of 85%.
General
– Cylinders are forged steel. All valves, seats, and plunger are hardened 410 SS.
2

– Maximum operating temperature is 300°F.
– Capacities listed are for viscosity not over 250 SSU. For higher viscosity, refer to
Figure 405-5 and adjust capacity and price.

Figure 405-43. Cost Data for Plunger Power Reciprocating Pumps at EDMI = 881

Cost Estimating Manual
Page 405-46

December 1998

Reciprocating Pumps: Plunger Power

D
A
T
A

Figure 405-44. Selection Curves for Plunger Power Reciprocating Pumps

Cost Estimating Manual
December 1998

Page 405-47

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Reciprocating Pumps: Diaphragm Proportioning

Pump

Steel

316SS

Carpenter 20

Hastelloy C

Plastic

Weight Lbs

G1



$3,000

$3,600

$6,000

$3,000

300

G2



$3,600

$4,300

$7,200

$3,600

300

G3



$3,600

$4,300

$7,200

$3,600

300

G4



$3,800

$4,600

$7,600

$3,800

400

H1



$3,700

$4,500

$7,400

$3,700

400

H2



$3,700

$4,500

$7,400

$3,700

400

H3



$3,600

$4,300

$7,200

$3,600

400

H4



$3,800

$4,600

$7,600

$3,800

400

J1

$8,100

$6,500

$7,800





1,000

J2

$8,000

$6,400

$7,700





1,000

J4

$8,100

$6,500

$7,800



$6,500

1,000

J5

$9,000

$7,200

$8,600



$7,200

1,000

J6

$9,500

$7,700

$9,300



$7,700

1,000

– Pump prices are for Milton Roy Milroyal series simplex proportioning pumps conforming to API
Standard 675 (F.O.B. shipping point).
– Plastic pumps are limited to 150 psig.
– Carpenter 20 ball checks and seats, cast iron head.
– For motor prices, see Figure 405-48.

Figure 405-45. Cost Data for Diaphragm Proportioning Reciprocating Pumps at EDMI = 881

Cost Estimating Manual
Page 405-48

December 1998

Reciprocating Pumps: Diaphragm Proportioning

D
A
T
A

Figure 405-46. Selection Curves for Diaphragm Proportioning Reciprocating Pumps

Cost Estimating Manual
December 1998

Page 405-49

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Reciprocating Pumps: Plunger Proportioning (Motors and Pumps)

Pump
Selection

316 SS

Carpenter 20

Plastic

A1

$2,600

$3,100

$5,600

A2

$3,300

$3,800

$5,700

A3

$3,300

$3,800

$5,700

A4

$3,300

$3,800

$5,900

A5

$3,900

$4,500

$6,200

B1

$5,800

$6,700

$5,600

B2

$5,800

$6,700

$5,700

B3

$3,300

$3,800

$5,700

B4

$3,300

$3,800

$5,900

B5

$6,900

$8,000

$6,200

C1

$5,800

$6,700

$5,600

C2

$5,900

$6,800

$5,900

C3

$6,600

$7,600

$6,200

C4

$6,900

$8,000

$6,300

C5

$8,700

$10,000

$7,200

C6

$10,600

——

——

– Prices are for Milton Roy Milroyal series simplex proportioning pumps (F.O.B. shipping
point).
– Pumps conform to API Standard 675.
– Plastic pumps limited to 150 psig max.
– Duplex pumps are two simplex pumps driven by a single motor. The capacity of a
duplex pump is the combined capacities of the two simplex pumps if both handle the
same stream. Duplex pumps can handle two different streams at different operating
conditions. The cost of a duplex pump without driver is approximately equal to the cost
of two simplex pumps. To select a motor for a duplex pump, add the horsepower
shown for each selected simplex pump.

Figure 405-47. Cost Data for Plunger Proportioning Reciprocating Pumps at EDMI = 881

Cost Estimating Manual
Page 405-50

December 1998

Reciprocating Pumps: Plunger Proportioning (Motors and Pumps)

1

Motor HP

Motor Prices1

Motor HP

Motor Prices1

1/4

$230

2

$280

1/3

$230

3

$280

1/2

$230

5

$300

3/4

$250

7-1/2

$450

1

$280

10

$510

1-1/2

$280

Totally enclosed flange mounted, 3 phase, 440 volts.

Figure 405-48. Cost Data for Proportioning Pump Motors at EDMI = 881

Figure 405-49. Selection Curves for Plunger Proportioning Pumps

Cost Estimating Manual
December 1998

Page 405-51

D
A
T
A

405

D
A
T
A

Selection Curves & Cost Data for Pumps

Rotary Pumps: Large and Small

Internal Bearing
Mark

RPM

B1

External Bearing

Cost

1750

RPM

$4,000

Cost

1750

$3,200

B2

$4,100

$3,300

C1

$4,400

$3,500

C2

$4,800

$4,000

C3

$5,200

$4,400

D1

$5,900

$5,000

D2

1150

$6,100

1150

$7,100

$6,000

E2

$7,400

$6,200

$8,000

$6,900

E4

$8,700

$7,300

E5

$9,800

$8,100

870

350

300

$5,100

E1

E3

Max. Case
Working
Pressure (psig)

– Estimate motor costs based on 1800 rpm.
– Prices are for Ingersoll Dresser Seir-bath Gearex pumps conforming to API Standard 676
(F.O.B. shipping point) with pump, base, packed stuffing box, flexible coupling and guard.
– For cast -steel case, multiply price for cast iron pump by 1.4.

Figure 405-50. Cost Data for Large Rotary Pumps at EDMI = 843

Size

GPM

HP @ 100 psi

Cost

1

2.2

1/2

$534

2

6

1

$624

3

10

1.5

$798

4

18

2

$892

5

20

2

$892

6

35

7.5

$1,758

– Estimate motor costs based on 1800 rpm.
– Prices are for Viking Cast Iron Pumps with mechanical seal, relief
valve, coupling, and steel base (F.O.B. shipping point).


For cast-steel case, multiply cost of cast-iron pump by 2.



For 316 SS case, multiply cost of cast-iron pump by 4.

– Pumps conform to Hydraulic Institute standards for general service
applications.

Figure 405-51. Cost Data for Small Rotary Pumps at EDMI = 881

Cost Estimating Manual
Page 405-52

December 1998

Rotary Pumps: Large and Small

D
A
T
A

Figure 405-52. Selection Curves for Large Rotary Pumps

Cost Estimating Manual
December 1998

Page 405-53

Cost Estimating Manual

406
Electric Motor Drivers
Acronyms and Applications
Following are the acronyms and typical applications for motor enclosures:
Open Drip-Proof Enclosure (DP), for clean and dry areas
Totally Enclosed Fan-Cooled (TEFC), for continuous duty process
plants and offplot areas
Weather-Protected Type II (WPII), for continuous duty process plants
and offplot areas and most outdoor environments
Totally Enclosed Air-to-Air Cooled (TEAAC), for continuous duty
process plants and offplot areas, non-adhering dusty environments,
and offshore platforms (recommended in lieu of WPII enclosures)

Cost Data For Electric Motors
See “Cost Data for Electric Motor Drivers,” next, for estimating 230/460v
and 2300/4000v horizontal, squirrel-cage induction motors.



Although high-efficiency motors are justified for most installations, you may wish to read
about them in the appropriate sections of the Chevron Driver Manual or consult with
CRTC specialists.

Cost Estimating Manual
April 1995

Page 406-1

406

Cost Data for Electric Motor Drivers

Cost Data for Electric Motor Drivers

D
A
T
A

3600 RPM

1800 RPM

Cost in $

Weight

Cost in $

Enclosure
DP
HP
1

SE

TEFC
HE

110

Weight

Enclosure

SE

DP
HE

150

Lbs

SE

TEFC
HE

SE

HE

Lbs

20

100

170

160

200

60

1.5

140

180

170

220

50

120

180

170

230

70

2

160

200

200

250

60

130

200

200

250

80

3

170

200

280

400

80

150

250

260

300

90

5

200

300

340

400

100

170

300

300

400

100

7.5

250

400

380

600

150

250

400

400

500

150

10

300

500

450

700

170

300

500

500

600

200

15

400

700

640

900

260

400

700

600

900

250

20

500

800

780

1,100

300

500

800

800

1,100

300

25

600

950

1,000

1,300

400

600

900

800

1,300

400

30

650

1,100

1,200

1,700

500

700

1,100

1,200

1,500

450

40

900

1,400

1,500

2,200

550

800

1,300

1,400

2,000

550

50

1,100

1,700

2,000

2,900

600

1,000

1,600

1,800

2,500

600

60

1,300

1,900

2,500

3,700

800

1,400

1,900

2,500

3,700

800

75

2,000

2,500

3,300

4,700

850

1,700

2,300

3,200

4,300

850

100

2,600

3,300

4,400

6,300

900

2,300

3,000

4,100

5,600

1,200

125

3,300

4,100

5,700

8,200

1,100

2,800

3,500

5,300

7,700

1,300

150

4,000

5,000

6,800

9,900

1,200

3,600

5,000

6,100

8,900

1,400

200

5,200

7,700

8,700

12,500

1,400

4,400

6,500

7,400

10,800

1,600

250

6,400

9,300

10,500

15,800

1,500

6,200

8,900

9,500

13,600

1,700

300

8,600

12,000

13,300

18,900

1,700

7,700

10,000

10,900

12,600

1,900

350

13,100

11,400

14,400

1,900

15,800

2,100

SE = Standard Efficiency; HE = High Efficiency
Prices are based on the following:
- Reliance Motors.
- Service factor of 1.15 (at Class F temperature rise) continuous for DP and TEFC motors.
- 460-volt rating (except for 100 hp and less) prices also apply to 230v motors. Above 100 hp add 7 percent
for 230v motors.
- Prices for 200 hp and up include WPII enclosures (rather than DP) to satisfy noise requirements.
- Severe duty.
- Specifications: DRI-MS-1824 and ANSI/IEEE-841 (1986).
Prices exclude:
- Company-required tests.
- Design allowance.
- Freight & sales tax.
- Base, foundation, installation, connection.
General notes:
- Class F insulation with Class B rise.
- Space heaters with separate conduit box on 100 hp and up.
- NEMA Design B, normal starting torque.
- Motor noise level not exceeding 85 dBA at three (3) feet.
Figure 406-1. Cost Data for 230/460v Motors at EDMI=843

Cost Estimating Manual
Page 406-2

April 1995

Cost Data For Electric Motors

3600 RPM

1800 RPM

Cost in $

Weight

Cost in $

Enclosure
WPII
HP

GP/SE

Enclosure
TEFC-XT

SP/HE

Weight

GP/SE

SP/HE

WPII
Lbs

300

GP/SE

TEFC-XT

SP/HE

GP/SE

SP/HE

Lbs

22,600

25,300

27,000

29,700

5,400

350

25,100

28,400

33,000

36,300

5,400

24,300

27,300

29,100

32,000

5,400

400

27,700

31,400

36,400

40,100

6,000

25,500

28,600

30,400

33,600

7,500

500

32,900

37,300

41,700

46,100

6,000

30,300

34,000

36,200

39,800

7,500

600

37,900

43,000

48,000

53,100

6,000

29,800

33,900

28,500

42,600

7,500

700

44,000

49,800

57,700

63,600

6,000

32,700

37,200

42,200

46,700

7,000

800

47,800

54,200

59,600

66,000

7,000

35,600

40,500

45,900

50,800

7,000

900

52,800

59,900

65,800

72,900

7,000

39,200

44,600

50,600

56,000

7,000

1,000

57,600

65,200

71,800

79,400

7,000

42,200

48,000

54,400

60,200

9,000

GP = General Purpose (specification DRI-MS-4814)
SP = Special Purpose (specification DRI-MS-3903 & API 541)
SE = Standard Efficiency
HE = High Efficiency
Prices are based on the following:
- Reliance standard LAC high efficiency motors.
- Service factor of 1.0 Continuous; for 1.15 Continuous, add 8 percent (not recommended).
- Oversized conduit box.
- Rotor balance verification per MAC-EG-3546.
- TEFC-extra tough (TEFC-XT) includes Class F sealed insulation system, breather drains, ground lug in conduit
box, cast iron frame, end shields and inner cap, shaft slinger, epoxy-coated rotor and stator.
Additional costs:
- To include a sealed insulation system on the WPII enclosure, add $1,100.
- For 4000v rating, add the following:
- 300 to 600 hp, add 15 percent.
- 700 to 1000 hp, add 12.5 percent.
Prices exclude:
- Company-required tests.
- Design allowance.
- Freight & sales tax.
- Base, foundation, installation, connection.
Tests
- Perform rated-temperature run and efficiency tests per DRI-MS-3547 on SP (special purpose —
critical or non-spared service) motors. Perform rated-temperature tests on all 3600 rpm motors 600 hp
and above to assure mechanical stability; additional cost is approximately $4,200.
- Specifying other factory tests or accessories can add significant cost.
General
- Class F insulation with Class B rise.
- Space heaters with separate conduit box on 100 hp and up.
- NEMA Design B, normal starting torque.
- Motor noise level not exceeding 85 dBA at three (3) feet.
Figure 406-2. Cost Data for 2300/4000v Motors, 300-1,000 HP at EDMI=843

Cost Estimating Manual
April 1995

Page 406-3

D
A
T
A

406

Cost Data for Electric Motor Drivers

3600 RPM

D
A
T
A

1800 RPM

Cost in $

Weight

Cost in $

Enclosure
WPII
HP

GP/SE

Enclosure

TEAAC-XT

SP/HE

Weight

GP/SE

SP/HE

WPII
Lbs

GP/SE

TEAAC-XT

SP/HE

GP/SE

SP/HE

Lbs

1,250

62,500

71,800

86,600

95,800

6,000

42,700

49,500

63,900

70,700

6,000

1,500

73,200

84,000

101,400

112,200

6,000

49,000

56,900

70,600

78,500

6,000

1,750

83,900

96,300

115,200

128,600

7,000

55,400

64,300

82,900

91,700

7,000

2,000

94,600

108,600

131,000

145,000

7,000

61,700

71,600

92,400

102,300

7,000

2,250

85,800

101,400

138,000

153,600

8,000

60,000

70,800

96,400

107,300

8,000

2,500

94,500

111,700

152,000

169,200

9,000

65,500

77,400

105,400

117,300

9,000

*

76,200

90,000

122,600

136,500

15,000

3,000

*

*

*

*

* = Consult Vendor
GP = General Purpose (specification DRI-MS-4814)
SP = Special Purpose (specification DRI-MS-3903 & API 541)
SE = Standard Efficiency
HE = High Efficiency
Prices are based on the following:
- Reliance standard LAC high-efficiency motors.
- Service factor of 1.0 Continuous; for 1.15 Continuous, add 8 percent (not recommended).
- Oversized conduit box.
- Rotor balance verification per MAC-EG-3546.
Additional costs:
- To include a sealed insulation system on the WPII enclosure, add $1,100.
- For 4000v rating, add the following:
- 1250 to 2000 hp, add 10 percent.
- 2250 to 3000 hp, add 5 percent.
Prices exclude:
- Company-required tests.
- Design allowance.
- Freight & sales tax.
- Base, foundation, installation, connection.
Tests
- Perform rated-temperature run and efficiency tests per DRI-MS-3547 on SP (special purpose
—critical or non-spared service) motors. Perform rated-temperature tests on all 3600 rpm motors 600 hp
and above to assure mechanical stability; additional cost is approximately $4,200.
- Specifying other factory tests or accessories can add significant cost.
General
- Class F insulation with Class B rise.
- Space heaters with separate conduit box on 100 hp and up.
- NEMA Design B, normal starting torque.
- Motor noise level not exceeding 85 dBA at three (3) feet.
Figure 406-3. Cost Data for 2300/4000v Motors; 1,250 to 3,000 HP at EDMI = 843

Cost Estimating Manual
Page 406-4

April 1995

407
Steam Turbines
his section includes procedures for estimating steam rates. “Cost Data for Steam
Turbines,” later in this section, provides cost data for single- or multi-stage steam
turbines. These turbines meet the requirements of API Standard 611 General Purpose
Steam Turbines.

T


Before you begin cost estimating a steam turbine, refer to the Chevron Driver Manual for
information on designing turbines and selecting large drivers for refineries.

Estimating Single-Stage Non-Condensing Steam Turbines
Application
Steps for Estimating
Steam Rates & Costs
1

For requirements up to 1200 horsepower.
Estimating steam rates and costs for single-stage non-condensing steam
turbines involves three main steps.
SELECT THE TURBINE

From Figure 407-1, select the turbine classification to meet the known
operating conditions.
2

SELECT INITIAL TURBINE COST AND WHEEL SIZE

From Figure 407-9 (found later in this section), select the initial turbine
cost and wheel size that corresponds to the required horsepower and
turbine classification.
See the notes for various cost adjustments.

Maximum Operating
Conditions & Material
Max. Inlet Steam Press. psig.

Class
1

3

HBP1

250

600

600
250-375

Max. Exhaust Press. psig.

60

100

Max. Inlet Steam Temp.oF

500

750

750

Cast Iron

Cast Steel

Cast Steel

Steam Chest Material
1

HBP = High Back Pressure

Figure 407-1. Turbine Classification

Cost Estimating Manual
April 1995

Page 407-1

407

Steam Turbines

Add a percentage for design allowance (Section 303).
Calculate the freight cost by multiplying the turbine weight by the
freight rate.
Adjust the total cost by the appropriate EDMI index ratio (Section
301).
Add sales tax (Section 305).



3

In general, a turbine with the largest available wheel size is the most economical for
continuous duty, based on combined costs of investment and operating. The energy
savings associated with the larger wheel more than offset the incremental increase
in cost. If the operating duty is intermittent, analyze the costs to select the most
economical turbine.

FIND STEAM COST

To find the steam cost of a single-stage turbine:
Find the base steam rate in Figure 407-2.

Figure 407-2. Base Steam Rate

Cost Estimating Manual
Page 407-2

April 1995

Estimating Single-Stage Non-Condensing Steam Turbines

Wheel-Diameter Correction Factor

Horsepower Correction Factor

Exhaust-Pressure Correction Factor

Superheat Correction Factor
Figure 407-3. Correction Factors for Single-Stage, Non-Condensing Steam Turbines

Multiply it by the other correction factors in Figure 407-3.
S=(BS) x (W) x (EP) x (HP) x (SH)
Where:
S =
BS =
W =
EP =
HP =
SH =

Approximate Steam Rate Lb/HP-HR
Base Steam Rate Lbs/HP-HR (Figure 407-2)
Wheel Size Factor (Figure 407-3)
Exhaust Pressure Factor (Figure 407-3)
Horsepower Factor (Figure 407-3)
Superheat Factor (Figure 407-3)
Cost Estimating Manual

April 1995

Page 407-3

407

Steam Turbines

Determine turbine wheel size and speed before using the chart.
Use these curves for single-stage turbines of any horsepower the
turbine can develop with the available steam conditions.
The horsepower correction factor is 1.0 for all turbines over 250
horsepower.
Find the total steam flow by multiplying the rate (lb/hp-hr) by the total
horsepower.
Example of Estimating a Single-Stage Non-Condensing Steam Turbine

Description

Determine the cost and steam use of an intermittent-duty 100 HP steam
turbine operating at 3550 RPM.
Inlet steam conditions are 150 psig at 366°F.
Exhaust steam is 45 psig.
The value of steam is $2 per 1000 lbs.
The operating period is one year with a 10 percent operating factor.

Analysis

See Figure 407-4.
Source
Figure 407-1

Selection Criteria

Analysis & Conclusion
Class 1 is satisfactory

Class
14"

18"

22"

$19,500

$19,500

$24,500

8,200

6,900

6,000

Steam Cost, 1 yr at 10 percent
operating factor

$14,400

$12,200

$10,500

Total Cost

(Initial & operating)

$33,900

$31,700

$35,000

Conclusion

Most economical selection

Figure 407-9

Wheel Size
Initial Turbine Cost

Figures 407-2 & 407-3 Steam Consumption (lb/hr)



Figure 407-4. Example of Estimating a Single-Stage, Non-Condensing, Steam Turbine:
Analysis & Conclusion (EDMI = 798)

Estimating Multi-Stage Condensing and Non-Condensing Steam Turbines
Application
Steps for Estimating
Steam Rates & Costs
1

For requirements of 1000 horsepower and above.1
Estimating steam rates and costs for multi-stage condensing and
non-condensing steam turbines consists of four steps.

Normally, you would select this turbine when the operating duty is continuous (rather than single-stage non-condensing).
Cost Estimating Manual
Page 407-4

April 1995

Estimating Multi-Stage Condensing and Non-Condensing Steam Turbines

Frame

Inlet
Pressure/
Inlet Temp
psig/F

Exhaust
Pressure
(psig)

Horsepower

Comments

K

400/600

75

5,500

Single valve

U

650/850

200

6,500

Single valve

R

900/900

400

15,000

Single valve/multi-valve

Figure 407-5. Multi-Stage Steam Turbines—Maximum Frame Limits

1

SELECT THE TURBINE

From the table of frame limits in Figure 407-5, select a turbine to meet the
known operating conditions.
2

DETERMINE THE COSTS BASED ON HP

Turn to Figure 407-10.
Enter the curve with the approximate horsepower to find the cost for
the selected frame size.
See the various notes for cost adjustments.
Add a percentage for design allowance (Section 303).
Add the noted freight cost, if applicable.
Adjust the total cost by the appropriate EDMI index (Section 301).
Add sales tax (Section 305).
3

FIND THE APPROXIMATE STEAM RATE

See Figures 407-6 and 407-7.

Figure 407-6. Theoretical Steam Rate Table (TSR) Lb/HP-Hr for Multi-Stage Condensing & Non-Condensing Steam Turbines

Cost Estimating Manual
April 1995

Page 407-5

407

Steam Turbines

Find the approximate steam rate, as follows:
 TS 
S =   x SF x SH
 BE 
Where: S
TS
BE
SF
SH

=
=
=
=
=

Approximate Steam Rate Lb/HP-HR
Theoretical Steam Rate (Figure 407-6)
Basic Efficiency (Figure 407-7)
Speed Factor (Figure 407-7)
Superheat Correction Factor (Figure 407-7)

Basic Efficiency of
Multi-Stage Condensing Turbines

Basic Efficiency of Multi-Stage,
Non-Condensing Turbines

Superheat Correction Factor
Speed Factors
Figure 407-7. Adjustment Factors for Steam Rates for Multi-Stage Condensing & Non-Condensing
Steam Turbines

Cost Estimating Manual
Page 407-6

April 1995

Reduction Gears

4

DETERMINE THE TOTAL COST OF THE TURBINE

The total cost of the turbine (for comparison with alternative turbine
selections) is the sum of the initial cost plus the steam cost.
Example of Estimating a Multi-Stage Non-Condensing Steam Turbine

Description

Analysis

Determine the cost and steam consumption of a continuous duty (91
percent operating factor), non-condensing, multi-stage 5500 HP steam
turbine.
Turbine is operating at 7300 RPM.
Inlet steam conditions are 450 psig, 500°F (44°F super-heat).
Exhaust steam is 150 psig.
Value of steam is $4 per 1000 lbs. with a one-year operating period.
See Figure 407-8.
Source
Figure 407-5

Table of Frame Limits

Figure 407-10 Curve

Selection Criteria & Calculations

Costs

Select U-frame turbine
Enter curve at 5500 HP to find turbine cost

$430,000

Deduct 10 percent for non-condensing
turbine

<$43,000>

Subtotal Initial Cost

Figures 407-6
& 407-7

$387,000

Theoretical Steam
Rate

28.9 lb/hp-hr

Basic Efficiency

0.745

Speed Factor

1.038

Superheat Factor

1.003

Approx Steam Rate

(28.9/0.745) x 1.038 x 1.003 = 40.5 lb/hp-hr

Total Steam Flow

40.5 lbs/hr-hp x 5500 hp = 223,000 lbs/hr

Subtotal Steam Cost

$4/1000 x 223,000 x 8,760 hrs x 91%

$7,136,000

Total Cost (initial & steam)

$7,523,000

Figure 407-8. Example of Estimating a Multi-Stage, Non-Condensing, Steam Turbine:
Analysis & Conclusion (EDMI = 850)

Reduction Gears
Select the reduction gear for the required speed:reduction ratio and
horsepower from Figure 407-11.

Cost Estimating Manual
April 1995

Page 407-7

407

D
A
T
A

Cost Data for Steam Turbines

Cost Data for Steam Turbines
Turbine Prices and Wheel Sizes for
Single-Stage Non-Condensing Steam Turbines

Wheel Sizes

14"

Weight Lbs.

1,000

HP by Class
10 through 200
30 through 400

1
19,500

18"
1,300
3

1

2,200
3

HBP1

22"

28"

2,000

2,600

1

3

1

3

22,000
19,500

22,000

31,000

60 through 800

24,500

27,500

200 through 800

28,000

31,000

900 through 1200

32,200

35,700

1

HBP=high back pressure (price is for 250 psig; add 10 percent for 375 psig)

Prices:
- For Elliott Steam Turbines or equal with mechanical governor, oil ring lubrication, and
dynamic balance per API specifications.
- FOB East Coast.
Additional costs:
- For West Coast prices, add $30 per 100 lbs.
- For Woodward Oil Relay Governor (PG), add $5300.
- For base plate, add $1800.
- For insulation and jacket, add $4300.
Cost basis:
- From informal discussion with major suppliers.
- From current market pricing or list price (but not low bids).
Excludes:
- Design allowance
- Taxes
- Freight
- Installation
Figure 407-9. Turbine Prices & Wheel Sizes for Single-Stage Non-Condensing Steam Turbines at EDMI=798

Cost Estimating Manual
Page 407-8

April 1995

Estimating Multistage Steam Turbines

Estimating Multistage Steam Turbines

D
A
T
A

Prices are for Coppus Murray Steam Turbines.
Turbine cost is based on API Standard 611 (general requirements).
Add $40,000 to turbine cost for API Standard 612 (Special Purpose Turbines) if required. Special
purpose turbines drive equipment that is not spared or is in critical service.
Turbine costs do not include design allowance or sales tax.
Consult manufacturer for turbine speeds greater than 7500 rpm.
Add $1500 for freight cost to East or West Coasts.
Costs are for condensing turbines. Deduct 10% for non-condensing turbines.
Figure 407-10. Estimating Prices Based on Horsepower for Multi-Stage Steam Turbines at
EDMI=850

Cost Estimating Manual
April 1995

Page 407-9

407

Cost Data for Steam Turbines

Speed Reduction Ratio

D
A
T
A

2:1

3:1

4:1

Separate Gearbox

Input/output Speed (rpm)
3600/1800

3600/1200

3600/900
Price ($)1

2

Maximum HP

1

2
3

Wt,Lbs

75

75

75

3150

209

150

150

150

6275

265

300

200

135

10085

360

430

285

200

11900

525

575

400

285

13840

725

830

550

400

15030

850

1060

770

565

16930

1200

1520

1010

750

19765

1625

3

1295

915

21235

1900

3

1610

1110

23450

2350

3

2135

1400

26350

2600

3

2570

1700

29925

3200

Prices are for Western gears or equal. Prices include high-speed gear, spacer coupling,
guard, and self-contained lubrication system. Prices do not include freight or tax. See
Sections 304 and 305 to estimate these costs.
Horsepower based on AGMA high-speed service factor of 1.5.
Pinion pitch line velocity exceeds 5000 FPS. Consult manufacturer for price and capability of
power transmission.

Figure 407-11. Estimating Prices for Reduction Gears for Steam Turbines at EDMI = 715

Cost Estimating Manual
Page 407-10

April 1995

408
Mechanical Equipment: Compressors
o estimate the cost of a compressor, you should know the operating conditions
and required brake horsepower. The Chevron Compressor Manual can help you
select a reciprocating, centrifugal, or rotary compressor.

T

This section contains a simplified method for determining horsepower for reciprocating compressors. For a more detailed method or for calculating horsepower for
other types of compressors, refer to the Compressor Manual.



If you know the required brake horsepower, skip to “Cost Data for Compressors,” later in
this section. You’ll find equations for preparing a Class 1 estimate for a reciprocating or
centrifugal compressor.

Note that this section contains information and guidance for estimating compressors
only. For other mechanical equipment, refer to Richardson’s Process Plant
Construction Estimating Standards, or consult a vendor (see Figure 408-2).
Determining Brake HP for Reciprocating Compressors
Calculating brake horsepower involves five steps, as follows:
1

CONVERT THE FLOW RATE TO INDUSTRY STANDARD CONDITIONS

The capacity of a compressor is given at either standard conditions (14.7
psia and 60°F) or at actual conditions. The flow rate must be converted to
industry-standard conditions (14.4 psia and actual suction temperature)
prior to calculating brake horsepower. The formula for doing this is
FI=FP ×

( TI )
(PP)
×
( T P)
( PI )

Where:
FI = Flow rate at industry-standard conditions, expressed as millions of cubic
feet per day (MCFD)
FP = Flow rate from process design, expressed as millions of cubic feet per day
PI = Suction pressure at industry-standard conditions = 14.4 psia
PP = Suction pressure from process design, psia. If standard conditions,
value = 14.7 psia
TI = Suction temperature at industry-standard conditions, which is the same as
actual suction temperature; expressed as °R, which is equal to (460 + °F)
TP = Suction temperature from process design; may be actual temperature or
standard temperature (60°F); expressed as °R, which is equal to (460 + °F)

Cost Estimating Manual
April 1995

Page 408-1

408

Mechanical Equipment: Compressors

2

CALCULATE THE OVERALL COMPRESSION RATIO

The overall compression ratio is calculated as follows:
ro =

Where
ro =
PD =
PS =
3

PD
PS

Overall compression ratio
Final discharge pressure, psia
Initial suction pressure, psia

DETERMINE THE NUMBER OF COMPRESSION STAGES

The compression ratio for each stage should be in the range 2.5–4.0. Use
Figure 408-1 to determine the number of stages for your application based
on the overall compression ratio calculated in step 2.

Number of
Stages

Overall Compression
Ratio, ro

Factor, f

1

5 or less

1.00

2

4 to 30

1.08

3

20 to 100

1.10

Figure 408-1. Number of Compression Stages vs. Overall Compression Ratio and Factor f

4

CONVERT OVERALL COMPRESSION RATIO TO RATIO PER STAGE

Use the following equation to calculate the compression ratio for each
stage from the overall compression ratio.
r = ro

Where
r
=
n =
5

1⁄

n

Compression ratio per stage
Number of stages

CALCULATE BRAKE HORSEPOWER

To calculate brake horsepower for a reciprocating compressor, use the
following equation:
BHP = (22) x (FI) x (f) x (n) x (r)
Where
BHP
f

=
=

Brake horsepower
Factor from Figure 408-1 for the number of stages determined in step 3

Cost Estimating Manual
Page 408-2

April 1995

Estimating a Reciprocating or Centrifugal Compressor

This equation provides a close estimate of horsepower requirements for
gases with a specific gravity of 0.65 (relative to air) and stage
compression ratios of 2.5 and above.1
For gases with higher specific gravity (0.8 to 1.0), the multiplication
factor is approximately 20 instead of 22.
For lower stage compression ratios (1.5 to 2.0), the multiplication
factor is approximately 16 to 18.
The equation was developed for large low-speed (300-450 rpm) compressors. It may produce a result as much as 20 percent low for high-speed
(900-1200 rpm) compressors due to higher valve losses in those machines.

Estimating a Reciprocating or Centrifugal Compressor
Having determined the required brake horsepower, you can prepare a
Class 1 estimate of the cost of a reciprocating or centrifugal compressor
from the equations given in the next section, “Cost Data for Compressors.”
For a Class 2 or better estimate, contact a suitable vendor.

Two Examples of Estimating Reciprocating Compressors
Example 1

1

Estimate the cost of a reciprocating compressor with a capacity to
compress 10,000 SCFM from 0 psig at 100°F to 50 psig.
CONVERT THE FLOW RATE TO INDUSTRY-STANDARD CONDITIONS
FI =

2

(10,000 × 60 x 24)
(100 + 460)
14.7
×
= 15.8 MCFD
×
1,000,000
14.4
(60 + 460)

CALCULATE THE OVERALL COMPRESSION RATIO

After calculating the overall compression ratio, refer to Figure 408-1. Use
either one stage or two stages according to the table. The single-stage
compressor uses less horsepower than the two-stage compressor; but at this
compression ratio, we may near the temperature limit for one stage. This
example uses two stages.
ro =

(14.7 + 50)
= 4.4
(14.7 + 0)
1⁄
2

r = (4.4)
1

= 2.1

Specific Gravity of Gas = (Molecular Weight of Gas) / (Molecular Weight of Air = 28.96)
Cost Estimating Manual

April 1995

Page 408-3

408

Mechanical Equipment: Compressors

3

CALCULATE BHP
BHP = (22) × (15.8) × (1.08) × (2) × (2.1) = 1,577

4

CALCULATE COST

Apply the equation (see “Cost Data for Compressors,” next) for
reciprocating compressors to determine the cost of this compressor.
Cost = 37,468 × (1,577)0.48 = $1.28M @ EDMI = 880

Example 2

1

Estimate the cost of a reciprocating compressor with a capacity to
compress 5,000 ACFM (actual cubic feet per minute) from 30 psig and
80°F to 70 psig.
CONVERT THE FLOW RATE TO INDUSTRY-STANDARD CONDITIONS:
FI =

2

(5,000 × 60 × 24) (30 + 14.7) (460 + 80)
×
×
= 22.4 MCFD
1,000,000
14.4
(460 + 80)

CALCULATE THE OVERALL COMPRESSION RATIO

You need only one stage:
ro = 1.9 = r
3

CALCULATE BHP

BHP = (22) × (22.4) × (1) × (1) × (1.9) = 936
4

CALCULATE COST

Apply the equation (see “Cost Data for Compressors,” next) for
reciprocating compressors to determine the cost of this compressor.
Cost = 37,468 × (936)0.48 = $1.0M @ EDMI = 880

Pulsation Dampeners
The cost correlation for reciprocating compressors includes pulsation
dampeners. If, however, you need to estimate them separately, refer to
Account 100-266 in Richardson’s Process Plant Construction Estimating
Standards. Because Richardson’s sizing method may result in undersizing
dampeners, use the following equations for sizing dampeners:
Suction

0.5

Vs = 0.288 × D × (a)

Cost Estimating Manual
Page 408-4

April 1995

Pulsation Dampeners

Discharge

Vd =

Vs
l⁄

Rk

Where:
Vs & Vd = Minimum required surge volume in cu. ft.
a = Sonic velocity of gas at suction conditions in fps
k = cp/cv = ratio of specific heats
D = Total swept volume (compressor piston area times stroke) in cu. ft. per
revolution for each cylinder manifolded (allow for double acting pistons)
into the pulsation suppression device
R = Stage pressure ratio, Pd / Ps
Pd = Discharge pressure from stage
Ps = Suction pressure to stage



1

When the driver horsepower is greater than or equal to 500 or discharge pressure is
1000 psig and higher, analyze the whole system including the compressor, pulsation
dampeners, and surrounding piping in order to prevent vibration.1

For guidance, contact the Machinery and Electrical Systems Team of CRTC Materials and Equipment Engineering Unit.
SWRI (Southwest Research Institute) in San Antonio, Texas, can prepare a pulsation study at a cost of $25,000 to $50,000
(EDMI = 850) per compressor.
Cost Estimating Manual

April 1995

Page 408-5

408

D
A
T
A

Cost Data for Compressors

Cost Data for Compressors
Pricing from Vendors
Consult a vendor (Figure 408-2) for pricing rotary compressors and for
Class 2 or higher estimates.

Centri- Recip- Rotary
fugal rocating

Source

x
x

Elliott Compressor

x

Ingersoll Rand

x

4

x

x

x

x
672

680

619

1

Notes

3

x

x

Sutorbilt Corp

2

x

x
x

x

Roots-Division of Dresser

1

Centrifugal

x

x

Dresser-Rand

API Spec No

Integral Separate
Engine Driver

x

Chicago Pneumatic Tool
Cooper Energy Services

Starting
Air or
Service
Station
Compr’r

Large
Reciprocating

Instrument/Utility
Air

618
2

617

3

4

Prices should include a single horizontal, non-lubricated reciprocating compressor with V-belt
drive. You may have to estimate the compressor driver and receiver tank separately.
The compressor and engine cylinder have a common frame and crankshaft.
Driver can be electric motor, steam turbine, or separate internal combustion engine.
Package includes reciprocating compressor, electric motor driver, receiver tank, and controls.

Figure 408-2. Vendors to Contact for Pricing

Equations for Calculating Cost Data for Compressors
The following equations are based on US and foreign manufacturers’ cost
data. They are suitable for making Class 1 estimates.
Equation 1—
Reciprocating

$ = 37,468 x (HP)0.48 at EDMI = 880

Includes motor driver and pulsation dampeners (see Figure 408-3).
Equation 2—
Centrifugal

$ = 18,284 x (HP)0.57 at EDMI = 880

Includes turbine driver (see Figure 408-4).

Cost Estimating Manual
Page 408-6

April 1995

Equations for Calculating Cost Data for Compressors

D
A
T
A

Horsepower

Figure 408-3. Reciprocating Compressors; Includes Motor Driver and Pulsation Dampeners at
EDMI = 880

Horsepower

Figure 408-4. Centrifugal Compressors; Includes Turbine Driver at EDMI = 880

Cost Estimating Manual
April 1995

Page 408-7

410
411

Direct Cost Data—
Bulk Materials (Minor Material)

Bulk Materials (Including Subcontracts)

Cost Estimating Manual

411
Bulk Materials (Including Subcontracts)
ulk materials, in contrast with process equipment, are generally purchased in large
quantities and are not identified with a specific part of the facility until they are
installed. Examples include piping, concrete, structural steel, insulation, electric wire,
conduit, and paint. Bulk materials also include certain engineered items such as
instruments and electrical switchgear and some shop-fabricated materials such as pipe
spools and structural steel.

B

Estimating Bulk Materials
The engineered items are estimated in the same way as equipment,
including an appropriate design allowance. Shop-fabricated steel and pipe
spools are estimated using unit prices from purchase orders or quotes and
quantities taken from design information; you should include a quantity
takeoff allowance (see Section 303) to account for incomplete design
information.
Other bulk materials are priced based on quantity takeoffs, with an
appropriate takeoff allowance. Note that some contractors may take off
only the major items in each commodity account (piping, steel, etc), and
then use ratios to price other, smaller-value items that don’t warrant
separate counting.
You must include freight and sales/use tax (Sections 304 and 305) for
bulk materials, recognizing that some pricing is on a delivered basis (such
as ready-mix concrete).
This section provides factors and ratios to assist the estimator in
generating quantities of bulk materials. This section also includes cost
ratios for making or checking estimates. These are principally at higher
levels of commodity groupings rather than individual items, so they are
more useful for making semi-detailed Class 1 or 2 estimates (Section 205)
than true detailed estimates. Pricing for the latter must come from
purchase orders, project experience, or other references.



This section contains limited data. We hope to expand it, and input from other estimators
is welcome.

Cost
Estimating
Manual
Cost
Estimating
Manual
April 1995

Page 411-1

411

Bulk Materials (Including Subcontracts)

Factors and Ratios for Developing Quantities
Instrumentation

SINGLE TUBING PNEUMATIC SIGNAL TRANSMISSION

Electronic system: Assuming that an instrument air subheader is run
close to each pneumatic device, allow 10 LF of tubing for each
pneumatic device; however, allow 20 LF between two locally
mounted instruments. For example, for a local level control loop:
From air subheader to controller
10 LF
From controller to control valve
20 LF
From air subheader to CV with positioner 10 LF
Total length
40 LF
Alternatively, allow 10 LF per pneumatic device.
Pneumatic system: In addition to the local lengths described above,
add tubing runs between the local devices and a junction box. For
example, for a pressure control loop:
From air subheader to pressure transmitter 10 LF
From transmitter to junction box
50 LF
From junction box to control valve
50 LF
From air subheader to CV with positioner
10 LF
Total length
120 LF
Alternatively, allow 60 LF per pneumatic device.
Note that tubing bundles between the junction box and the control
panel are covered elsewhere.
Support channel for single tubing runs: Multiply the total tubing
length by 0.6 .
INSTRUMENT AIR SUBHEADERS

Allow 30 LF per pneumatic device; the size of galvanized CS branch
headers varies with the number of instruments served.
No. of Instruments
Branch Size
1-5
1/2"
6 - 10
3/4"
11 - 25
1"
26 - 40
1-1/2"
Piping

Valves and small bore piping: While large bore piping and valves (greater
than 2" diameter) are relatively easy to define from P&IDs and drawings,
small bore is less well defined. The data in Figure 411-1 comes from the
Pascagoula Residuum Conversion Project (PRCP) (1980-84).

Cost Estimating Manual
Page 411-2

April 1995

Factors and Ratios for Developing Quantities

Process
Plants

Plant
Modifications

Utility
Plants

Offplot

130%

85%

104%

23%

8.1"
4.3"

8.9"
6.0"

10.3"
5.8"

8.8"
7.4"

Spooled LF (shop or field) as
percent of large bore LF

84%

73%

61%

17%

Alloy LF as percent total LF

5.1%

5.5%

8.3%

0.1%

9.7
1.6
6.2

13.2
1.9
7.1

10.3
1.9
6.1

5.0
0.2
1.1

Item
Ratio, LF small bore to LF
large bore
Average line size:
Large bore
Total

Valves per 100 LF:
Small bore
Large bore
Total

Figure 411-1. Valves and Small Bore Piping: Data from Pascagoula Residuum Conversion Project
(1980-1984)

Structural Steel

Estimate weights of platforms and ladders as follows:
Vessel platforms
30 lbs/SF
Ladders with cages
22 lbs/LF
Ladders without cages
12 lbs/LF

Insulation

Allowance for pipe fittings: Increase the takeoff piping length (LF) by 35
percent onplot and 10 percent offplot.
Allowance for equipment manways, flanges, and nozzles: Increase the
takeoff area (SF) by 10 percent; for equipment with a large number of
nozzles or stiffening rings, use 30 percent.

Electrical

Concrete envelope for underground conduit runs: Allow 0.08 CY/LF of
conduit (based on an 18"-wide-by-18"-deep envelope suitable for sixteen
2" conduits).

Foundations & Piling

Painting

Quantities of reinforcing steel and formwork per cubic yard of concrete:
See Richardson Process Plant Construction Estimating Standards,
Richardson Engineering Service (Section 3-50, pages 17-19) for typical
values based on foundation shape.
Estimate structural steel surface areas as follows:
Heavy steel (over 17 lbs/LF)
200 SF/ton
Light steel (17 lbs/LF and less) 300 SF/ton
Platforms, ladders, handrails
450 SF/ton

Cost Estimating Manual
April 1995

Page 411-3

411

Bulk Materials (Including Subcontracts)

Cost Ratios
Instrumentation
Piping

(future section)
The data in Figure 411-2 comes from the Pascagoula Residuum Conversion Project (PRCP) (1980-84). Materials costs have been adjusted to
1991 (EDMI = 850) (see also Figure 411-3). The materials cost requires
adjustment if the number of valves differs significantly from the ratios
shown in Figure 411-1.

Structural Steel

(future section)

Insulation

(future section)

Electrical

(future section)

Foundations & Piling

Painting

Piling for process plants: Based on data from 36 plants, piling costs are
in the range of 1–4 percent (average 2.2 percent) of total direct cost excluding piling, or 0.7–3 percent (average 1.5 percent) of total plant cost
excluding piling and special charges.
(future section)

Process
Plants

Plant
Modifications

Utility
Plants

Offplot

Materials cost, $/ dia-in-ft

19.08

16.36

14.67

5.18

Labor hours per dia-in-ft

0.50

0.57

0.31

0.17

Item

Figure 411-2. Piping: Data from Pascagoula Residuum Conversion Project (1980-1984)

Cost Estimating Manual
Page 411-4

April 1995

30

0.6

25

0.5
PLANT MODIFICATIONS

20

0.4

PROCESS PLANTS

15

0.3

OFF-PLOT

UTILITY PLANTS

10

LABOR HOURS/DIAM-INCH-FOOT

MATERIAL $/DIAM-INCH-FOOT AT EDM

MATERIAL $/DIAM-INCH-FOOT AT EDMI = 850

Cost Ratios

0.2

5

0.1

0

0
4

4.5

5

5.5

6

6.5

7

7.5

8

AVERAGE LINE SIZE, INCHES
MATERIAL

LABOR

$/D-I-F

HRS/D-I-F

MATERIAL $/D-I-F = 39.21 - 4.50*(AVG LINE SIZE)
LABOR HRS/D-I-F = 0.946 - 0.106*(AVG LINE SIZE)

Figure 411-3. Piping Material Costs & Labor Hours vs. Average Line Size

Cost Estimating Manual
April 1995

Page 411-5

420
421

Direct Cost Data—
Construction Labor

Installation Labor Hours
Installation Labor Hours for Major Materials (Equipment)
Installation Labor Hours for Minor Materials (Bulks)

422

Productivity

423

Rework

424

Labor Rates

Cost Estimating Manual
April 1995

Page -1

421
Installation Labor Hours
his section contains information about the direct (Group II) field labor hours
required to erect or install major equipment and bulk materials. Depending on the
accuracy and completeness of the material take-off, this labor hour data should allow
you to make (or check) Class 3, 4, or 5 estimates.

T

Data for Installation Labor Hours
The data is separated into two sections and organized by letter category, as
follows:
Installation Labor Hours for Major Materials (Equipment)
C—Columns and Pressure Vessels
D—Tanks
E—Exchangers
F—Furnaces
G—Pumps and Drivers
K—Compressors and Drivers
Installation Labor Hours for Minor Materials (Bulks)
J—Instruments
L—Piping
M—Structural Steel
N—Insulation and Fireproofing
P—Electrical
Q—Foundations
R—Buildings
S—Miscellaneous Site Development and Painting

Cost Estimating Manual
April 1995

Page 421-1

421

Installation Labor Hours

Basis of Direct Labor Hours
The direct labor hours shown are based on
a productivity of 1.0 (U.S. West Coast, pre-1960)
new petroleum or petrochemical processing plant facilities, unless
noted otherwise

Productivity Adjustment
Productivity varies with time, location, job size, economic conditions,
contracting plan, hours worked per week, rework requirements, and
complexity of work. See Section 422.



CRTC Facilities Engineering Unit can provide counsel on labor hour multipliers for
specific projects.

Adjustment to Current California Basis
For current major projects in California, we recommend applying the multipliers in Figure 421-1 to update labor hours for this cost estimating item.

Multipliers for
Direct Hire
by Major
Contractor

Subcontract or
Smaller Local
Contractor

C-K, J, N

1.0

0.9

L, Piping

1.4

1.2

M, Steel

1.2

1.0

P-S

0.8

0.7

Total (avg)

1.05

0.9

Description

Figure 421-1. Multipliers for Current Major Building Projects in California

Complexity Adjustment
To estimate modifications to existing plants, you need an additional
multiplier to reflect the difficulty of work relative to new plant
construction. Sometimes known as a revamp or complexity factor, it
reflects the following:
Access limitations and congested working areas

Cost Estimating Manual
Page 421-2

April 1995

Overtime Adjustment

Work interruptions and limitations on welding, smoking, pile driving,
and heavy lifts while plants are operating
High manpower loading to expedite the schedule while plants are shut
down



Consult CRTC Facilities Engineering Unit for details.

Overtime Adjustment
If overtime or shift work is required for either modifications or new plants,
you need an additional multiplier. See Section 422 for details.

Indirect Labor
Also referred to as distributable or proratable craft labor hours, indirect
field (Group IB) craft labor labor hours, as defined in EG-2757 in
Appendix C, are excluded from this section.

Caution
Some sections may contain labor hours for items usually estimated
elsewhere. Be careful not to estimate such items twice.
Examples

You would estimate installation labor hours for instrument control
valves, relief valves, orifice plates, and other flow-through devices
with bulk piping, but you would estimate the labor hours for
connecting them to instrumentation systems with the instrument labor
hours.
You may estimate instrumentation and control conduit and the cable
between field junction boxes and control houses with electric power
and lighting.

Cost Estimating Manual
April 1995

Page 421-3

421

D
A
T
A

Installation Labor Hours for Major Materials (Equipment)

Installation Labor Hours for Major
Materials (Equipment)

I

n this section, you will find installation labor hours for the following categories of
major materials (equipment):
C—Columns and Pressure Vessels
D—Tanks
E—Exchangers
F—Furnaces
G—Pumps and Drivers
K—Compressors and Drivers

Installation Labor Hours for C—Columns and Pressure Vessels
This section covers labor hours to install shop-fabricated columns,
pressure vessels, and reactors. These labor hours include the time to do
these tasks:
Unload, handle, erect, plumb, shim, grout, hydrostatically test, inspect
Handle, erect, and dismantle poles, hoists, derricks, and deadmen
Install equipment internals
Erection

See Figure 421-2.

Rigging

Add labor hours in Figure 421-3 for unloading, assembling, erecting, and
dismantling ginpoles and derricks, including deadmen, guys, load lines,
hoists, etc.
To shift poles between lifts without dismantling, see labor hours in Figure
421-4.

Cost Estimating Manual
Page 421-4

April 1995

Installation Labor Hours for C—Columns and Pressure Vessels

Columns and Vertical Vessels
100’ Max Ht

150’ Max Ht

Over 150’
Overall

Horizontal
Vessels

To 5

25

25

25

20

10

50

50

50

20

20

100

100

100

40

30

150

150

150

60

40

200

200

200

80

50

250

250

250

100

60

300

300

300

120

70

350

350

350

140

80

400

400

400

160

90

400

450

450

180

100

400

500

500

200

120

400

600

600

200

140

400

700

700

200

160

400

800

800

200

180

400

800

900

200

200

400

800

1000

200

Over 200

400

800

1000

200

Erection Weight
(Tons)1

1

The erection weight includes the weight of any internal or external attachments installed
prior to the lift.

Figure 421-2. Labor Hours for Erection of Columns and Vertical Vessels

Item

Labor Hours

150 Ton Poles

700

300 Ton Poles

2000

600 Ton Poles

3000

150 Ton Guy Derrick

3000

Figure 421-3. Labor Hours for Rigging

Item

Labor
Hours/Move

150 Ton Poles

200

300 or 600 Ton Poles

500

Figure 421-4. Labor Hours to Shift Poles Between Lifts
Without Dismantling

Cost Estimating Manual
April 1995

Page 421-5

D
A
T
A

421

Installation Labor Hours for Major Materials (Equipment)

Description

D
A
T
A

Trays (per sq. ft.)

Trays - Field Inspection
(per sq. ft.)

Inert Packing (per cu. ft.)

Labor Hours

Bubble Cap

0.7

Valve (Flexitray, Ballast, Grid)

0.5

Sieve

0.4

Bubble Cap

0.2

Valve

0.15

Sieve

0.1

Pall Rings, Ceramic Balls, Raschig
Rings, Saddles, etc.

0.25

Catalyst (per cu. ft.)

0.45

Structured Packing
(per cu. ft.)

0.4

Refractory Lining
(per sq. ft.)

Welded Studs or Clips

0.2

Castable Lining - to 2"

0.25

Castable Lining - 3"

0.35

Hexsteel

0.35

Brick

0.5

Scaffolding (Internal)

0.15

Brick Lining

0.5

Remarks
Normally
installed by
vessel
fabricator.
Add to erection
labor hours.
Keep separate.

Normally
subcontracted.

Normally
subcontracted.

Figure 421-5. Labor Hours for Field Installation of Internals

Field Installation
of Internals

See Figure 421-5.

Installation Labor Hours for D—Tanks
Figure 421-6 includes data for shop-fabricated tanks, bins, hoppers, etc.,
and includes the labor hours to unload, handle, erect, plumb, shim, grout,
hydrostatically test, and inspect.

Labor Hours/Ton
Tanks

Bins,
Hoppers,
etc.

To 10

2.0

3.0

Over 10

2.5

5.0

Weight, Tons

Figure 421-6. Shop-Fabricated Tanks

Cost Estimating Manual
Page 421-6

April 1995

Installation Labor Hours for E—Exchangers

Installation Labor Hours for E—Exchangers
This section includes non-fired heat transfer equipment such as
exchangers, condensers, reboilers, air coolers, and cooling towers. The
labor hours are to unload, handle, erect, plumb, shim, grout, hydrostatically test, and inspect.
Shell and Tube Heat
Exchangers

See Figure 421-7.
Item

Labor Hours
1

For shell and tube side pressure 2 /Ton
range of 150-900 psig2
Minimum 20 /Shell
1
2

If the weight is not available, use 8 lbs./sq. ft. of
heating surface.
When shell and tube side pressure rating
exceeds 900 psig, increase the labor hours by
50 percent.

Figure 421-7. Installation Labor Hours for Shell and
Tube Heat Exchangers

Vacuum Surface
Condenser Package

Square
Footage

Labor Hours/
Sq. Ft.

100

4.2

1,000

0.58

5,000

0.25

10,000

0.21

Figure 421-8. Equivalent Values per
Square Foot: Installing Vacuum
Surface Condenser Package

The following data includes labor hours to erect the condenser, ejector,
ejector piping, condensate piping, and turbine exhaust expansion joint.
Labor Hours = 408.6 + 0.17 (sq. ft.)

See Figure 421-8 for equivalent values per square foot.
Double-Pipe Heat
Exchangers
Air Coolers
Cooling Towers
Pipe Coils

Tank Heaters

Fintube or U-tube = 6 Labor Hours/section.
See Figure 421-9.
Usually erected by subcontractor. 0.2 labor hours/GPM.
For storage tanks: 20 labor hours/ton plus any buttwelds at 1 labor
hour/dia.in.
For storage tanks: 2 labor hours/ton (20 labor hours minimum).

Cost Estimating Manual
April 1995

Page 421-7

D
A
T
A

421

Installation Labor Hours for Major Materials (Equipment)

Labor Hours/Ton1

Description

D
A
T
A

Additional Labor
Hours/Fan2

123



Partially Shop-Assembled

15

40

Completely Field-Assembled

21

Completely Shop-Assembled
4

5

Winterized Air Coolers
1
2
3
4
5
6

40
6

As above



If the weights are not available, use 16 lbs./sq.ft. of bare surface area.
If the number of fans is not known, estimate one fan per 1250 sq. ft. of
bare surface area.
Minimum 30 labor hours/air cooler.
Half-sections with fans and drivers shipped loose.
For winterized air coolers, use 24 lbs./sq.ft. of bare surface area if actual
weights are not available.
Added weight will generate additional labor hours.

Figure 421-9. Installation Labor Hours for Air Coolers

Installation Labor Hours for F—Furnaces
Often erected by the furnace fabricator. If not, refer to CRTC Facilities
Engineering Unit for guidance, or contact a recommended fabricator for
an estimate of labor hours.

Installation Labor Hours for G—Pumps and Drivers
The labor hours in Figure 421-10 cover both horizontal and vertical
centrifugal pumps with electric motor drivers. The labor hours include the
time to unload, handle, set, level, align, grout, test, and inspect.

Installation Labor Hours for K—Compressors and Drivers
The labor hours cover the work required to unload, handle, set, level,
align, grout, and install the accessories normally furnished with the
compressor and driver. Accessories include exchangers, tanks, pumps and
drivers, piping, instruments, and electrical. The labor hours also cover the
work required to install the reduction gear, and to perform necessary tests
and inspection such as rotation checking. The compressor manufacturer’s
erection supervision and startup time are not included.
Reciprocating Compressors & Drivers

See Figure 421-11.

Integral Gas
Engine Driver

See Figure 421-12.
Cost Estimating Manual

Page 421-8

April 1995

Installation Labor Hours for K—Compressors and Drivers

Driver HP
From

To
to 10

Labor
Hours/
Pump

Driver HP
From

24

750

To

Labor
Hours/
Pump

800

400
440

15

25

36

850

900

30

50

48

950

1000

480

60

75

80

1001

1200

550

100

125

120

1201

1500

650

150

200

160

1501

2000

750

250

300

180

2001

2500

850

350

400

230

2501

3000

1000

450

500

280

3001

4000

1100

550

600

340

4001

5000

650

700

380

5001 & Over

D
A
T
A

1250
0.25 MH/HP

- For pumps with turbine drives, add 15 percent to the above labor hours.
- For inline pumps, sump pumps, rotary pumps, and plunger type pumps, use
50 percent of the above labor hours.
- For proportioning pumps, use 40 labor hours per pump and driver.
Figure 421-10. Installation Labor Hours for Horizontal and Vertical Centrifugal
Pumps with Electric Motor Drivers

BHP
From

1

Labor Hours
To

Motor Driver

Steam Turbine
Driver

100

300

360

101

500

1200

1300

501

1000

1700

1

1001

2000

2100

1

2001

3000

2400

1

3001

4000

2900

1

4001

5000

3600

1

5001

6000

4400

1

6001

7500

5100

1

8000

10,000

6500

1

10,000

15,000

7300

1

1.05 x labor hours for motor driver.

Figure 421-11. Installation Labor Hours for Reciprocating Compressors & Drivers

BHP

Labor
Hours/BHP

To 2000

1.0

Over 2000

0.75

Figure 421-12. Installation Labor Hours
for Integral Gas Engine Driver

Cost Estimating Manual
April 1995

Page 421-9

421

D
A
T
A

Installation Labor Hours for Major Materials (Equipment)

Centrifugal or Axial
Compressors
& Drivers

See Figure 421-13.

Fans and Blowers

See Figure 421-14.

Emergency
Generators

See the Electrical section in “Installation Manhours for Minor Materials
(Bulks)” next.
BHP

Labor Hours

From

To

Motor Driver

to 1000
1001

2000

Gas Turbine

1200

1

1200

1800

1

1900
2400

2001

4000

2300

1

4001

6000

3300

1

3300
4000

6001

8000

4000

1

8001

10,000

4600

1

5200
5500

10,001

12,000

4900

1

12,001

15,000

5600

1

6100
7300
8200

15,001

20,000

6600

1

20,001

30,000

7300

1

Over 30,000
1

Steam Turbine

1

0.25 LH/HP

0.3 LH/HP

1.05 x labor hours for motor driver

Figure 421-13. Installation Labor Hours for Centrifugal or Axial Compressors & Drivers

BHP

Labor Hours

From

To
to 100

Steam Turbine
Driver

60

1

101

200

100

1

201

300

180

1

301

400

260

1

401

500

300

1

501

600

350

1

601

700

400

1

701

800

460

1

801

1000

500

1

Over 1000
1

Motor Driver

0.5 LH/HP

1

1.15 x labor hours for motor driver

Figure 421-14. Installation Labor Hours for Fans & Blowers

Cost Estimating Manual
Page 421-10

April 1995

Installation Labor Hours for J—Instruments

Installation Labor Hours for Minor Materials (Bulks)
his section contains information about the labor hours required to install the
following categories of bulk materials:
J—Instruments
L—Piping
M—Structural Steel
N—Insulations and Fireproofing
P—Electrical
Q—Foundations
R—Buildings
S—Miscellaneous Site Development and Painting

T

Installation Labor Hours for J—Instruments
This scetion covers labor hours required to install, test, and calibrate an
electronic or pneumatic instrumentation and control system.
The following items are part of this subsection:
Control House—Main Control Panel and Rack
Process Computer
Panel-Mounted Instruments
Control House Instrumentation—Shared Display Systems
Local Panel Instruments
Field-Mounted Instruments and Transmitters
Analyzers and Packaged Control Systems
Instrument Shelters
Single Tubing, Multitube Bundles, and Instrument Air Supply
Loop Check
Calibration and Testing
Instrument Supports

Cost Estimating Manual
April 1995

Page 421-11

D
A
T
A

421

D
A
T
A

Installation Labor Hours for Minor Materials (Bulks)

Main Control Panel
and Rack

Labor hours for the main control panel and rack in the control house
include unloading, setting, leveling, fitting, bolting, and, if necessary,
bolting sections together. These labor hours also include making tubing
and wiring connections between sections.
4.0 Labor Hours/Lin. ft. + 5 Labor Hours x (Number of Sections - 1)
+ 4.0 Labor Hours/Multipoint Temperature Indicator Console

An instrument panel manufacturer normally fabricates the main control
panel. The design agency normally purchases and ships the panel
instruments to the panel manufacturer for installation. The instruments are
mounted, piped and wired, tested, and shipped in one or more panel
sections (depending on size), ready to be installed in the main control
building and connected by others.
If the panel fabricator removes the instruments from the control panel for
shipment, see “Panel-Mounted Instruments” below for the labor hours
needed to reinstall the instruments in the panel board.
Process
Computer

The labor hours for process computer include the time to handle and set
the computer and auxiliary equipment. The electrical wiring and the
equipment required to maintain a suitable environment in the computer
room are excluded.
70.0 Labor Hours

See also “Control House Instrumentation—Shared Display Systems”
below.
Panel-Mounted
Instruments

The labor hours for panel-mounted instruments include the time to install
the instruments in the panel board or in racks behind the panel, and to
connect them to the panel bulkhead, terminal strips, and air header.
New cutouts and hookup = 8.0 labor hours each
Panel mounted instruments = 4.0 labor hours each

Excluded: Electrical wiring (covered in P—Electrical) and single or
multiple tubing from panel board to field-mounted instruments (covered in
“Single Tubing, Multitude Bundles, & Instrument Air Supply” later in this
section).
Control House
Instrumentation—
Shared Display
Systems

The labor hours to install shared display systems include the time to
unload the truck, mark and cut the raised computer floor for cables, set the
system modules, bolt them in place, and tie them down. Also included is
the time to route the interconnecting cables under the floor, make up the
connectors, terminate the AC power branch circuits in the modules, and
install separate termination racks, if used.
Cost Estimating Manual

Page 421-12

April 1995

Installation Labor Hours for J—Instruments

Excluded: Chevron and system vendor’s hours, underfloor conduit/wire
installation, and field wire terminations.
Labor Hours = 40 A + 24 B + 125 C
Where
A =

Local PanelMounted Instruments

B

=

C

=

The number of console modules, each typically 4-10 ft. long, 4-6 ft. high,
2-3 ft. deep
The number of control rack modules (“rack-room electronics”),
each typically 2-6 ft. long, 6-8 ft. high, 2-3 ft. deep
The number of computer modules, each typically 4-6 ft. long, 6-8 ft. high,
2-3 ft. deep, including stand-alone peripherals such as line printers and
desktop CRTs

The panel vendor usually installs instruments or control devices. Local
panel boards are usually furnished with a package unit or with a piece of
equipment such as a boiler.
If the instruments or control devices are shipped detached from the panel
board, allow the following installation times:
Installation: 4.0 labor hours per instrument
Panel-Board Installation: 4.0 labor hours per linear foot

Field-Mounted Instruments & Transmitters

The labor hours for field-mounted instruments and transmitters include the
time required to install supports, saddles, stands, bridles, seal pots, block
valves, connection to a process or utility variable, and identification tags.
Fabrication of supports and saddles, pneumatic signal transmission tubing,
and electrical wiring are covered later in this section.
Flow & Differential Pressure Instruments

See Figure 421-15 for installation labor hours for flow and differential
pressure instruments.

Cost Estimating Manual
April 1995

Page 421-13

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Type

D
A
T
A

Labor Hrs
Each
28.0

Electronic or Pneumatic Transmitters, Controllers, Indicators,
Recorders & Switches
Orifice Plate

3.0

Pitot Tubes

6.0

Paddle Flow Switches

3.0

Magnetic Flowmeters

3.0
4.0

Turbine Meters

12.0

Positive Displacement Meters
Flanged Venturis

10-inch

8.0

12-inch

10.0

36-inch

20.0

48-inch

36.0
1

Flanged Flow Tubes

When insulated and traced tubing is used for process connections, add 20
percent to these labor hours.
1

See Valve Installation Table in Figure 421-36.

Figure 421-15. Installation Labor Hours for Flow & Differential Pressure Instruments

Level Instruments

See Figure 421-16 for installation labor hours for level instruments.

Type

Labor Hrs
Each

Electronic or Pneumatic Displacement Transmitters,
Controllers, Indicators, Recorders

28.0

D/P Level Instruments

23.0

Float Level Switches

18.0

Capacitance Level Instruments

10.0

Level Gages

16.0

Tank Level Gages

20.0
5.0

Boiler Sight Glasses

27.0

Boiler Water Columns

When insulated and traced tubing is used for process connections, add
20 percent to these labor hours.
Figure 421-16. Installation Labor Hours for Level Instruments

Cost Estimating Manual
Page 421-14

April 1995

Installation Labor Hours for J—Instruments

Pressure Instruments

See Figure 421-17 for installation labor hours for pressure instruments.

Type

Labor Hrs
Each
22.0

Electronic or Pneumatic Transmitters, Controllers,
Indicators, Recorders

4.0

Gages

48.0

Draft Gages
Differential Pressure Gages

9.0

Switches

8.0

When diaphragm seals, siphons, or pulsation dampeners are used with
the instruments in this table, add 1 labor hour to the labor hours in this
table. When insulated and traced tubing is used for the process
connections, add 20 percent.
Figure 421-17. Installation Labor Hours for Pressure Instruments

Temperature Instruments

See Figure 421-18 for installation labor hours for temperature instruments.
Type

Labor Hrs
Each

Electronic or Pneumatic Transmitters, Controllers,
Indicators, Recorders, and Switches

6.0

Thermocouple Assembly with Well

2.0
15.0

Reactor Thermocouple excluding Well
Dial Thermometers with Well

2.0

Capillary Dial Thermometers

5.0

Switches

3.0

Figure 421-18. Installation Labor Hours for Temperature Instruments

Miscellaneous

See Figure 421-19 for the installation labor hours for miscellaneous
instruments.
Type

Labor Hrs Each

Solenoid Valves

3.0

Miscellaneous Relays

3.0

Vibration Switches

3.0

Figure 421-19. Installation Labor Hours for Miscellaneous Instruments

Cost Estimating Manual
April 1995

Page 421-15

D
A
T
A

421

D
A
T
A

Installation Labor Hours for Minor Materials (Bulks)

Analyzers &
Packaged Control
Systems

The labor hours for analyzers and packaged control systems include the
installation of all parts of the instrument system. These five systems are
discussed below:
Single-Point Analyzer Systems
Multi-Point Analyzer Systems
Chromatographic System
Boiler Control System
Other Packaged Control Systems
Single-Point Analyzer Systems

The labor hours for the analyzers in Figure 421-20 are given for a simple,
grade-level installation of a single-point analyzer system.

Type

Labor
Hrs/System

Type

Labor
Hrs/System

Ammonia/Water

240

Oil/Water

200

Conductivity

100

Ph

100

Density (Liquid)

200

Phenol/Water

200

Moisture

200

Specific Gravity
(Gas)

200

Oxygen

200

Total Organic
Carbon

200

This table covers process piping, wire and conduit, pneumatic tubing,
mounting stanchions and brackets, steam, water, air, electrical power, testing,
and calibration.
Figure 421-20. Installation Labor Hours for Single-point Analyzer Systems

Multi-Point Analyzer Systems

Estimate the labor hours for installing multi-point analyzer systems on an
itemized basis as shown in Figure 421-21.

Description

Labor Hrs/System

Installation of Analyzer Instruments

60-80

Process Piping, Wire, Conduit, Air, Steam,
Water, Power, etc.

See L—Piping &
P—Electrical

Figure 421-21. Installation Labor Hours for Multi-Point Analyzer Systems

Cost Estimating Manual
Page 421-16

April 1995

Installation Labor Hours for J—Instruments

Chromatographic System

For an order-of-magnitude estimate of the labor hours required to perform
the installation functions described above for a single-point
chromatographic analyzer system, allow
1500 to 1700 labor hours
Boiler Control System
4.0 labor hours per instrument count, excluding control valves
Other Packaged Control Systems
18 labor hours per $1,000 value at EDMI = 850

Labor hours vary with type of system.
Instrument Shelters

The labor hours for instrument shelters in Figure 421-22 cover the time to
install instrument housings or shelters.
Excludes: Heat tracing, insulation, instrument connection lines, steam
supply, electrical power, condensate lines, and heat coils.
Description

Labor Hrs
Each

Instrument Shelters: Walk-in, Including Preassembly

60

Instrument Enclosure or Housing, Excluding Preassembly

15

Heated Shelter: Add to Above

20

Figure 421-22. Installation Labor Hours for Instrument Shelters

Single Tubing,
Multitube Bundles &
Instrument Air Supply

The labor hours to install single tubing, multitube bundles, and instrument
air supply follow.
Single Tubing

The labor hours for single tubing include the time to install and support
single pneumatic signal transmission tubing for connecting field-mounted
instruments to the control panel bulkhead.
Excludes: The labor to test and inspect (Figure 421-24), and the tubing
required to connect an instrument to a process or utility variable (Figures
421-15 through 421-18).
Single-Tubing (Copper or Plastic)

=

0.30 Labor Hours/Lin. Ft.

Cost Estimating Manual
April 1995

Page 421-17

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Description

D
A
T
A

Labor Hrs
0.5 /Lin. Ft.

Multitube
Connections

1.0 Each

Junction Box

4.0 Each

Figure 421-23. Installation Labor Hours for Multitube Bundles

Multitube Bundles

For multitube bundles, Figure 421-23 includes the labor hours to install
multitube bundles transmitting pneumatic signals, connectors, and
junction boxes, plus the labor to connect the tubing to the control panel
bulkhead.
Excludes: Multitube supports such as cable tray or channel. See P—
Electrical.
Instrument Air Supply

The labor hours for instrument air supply include the time to install and
support the instrument air piping to an instrument after the first block
valve off the main air supply header.
Galvanized Pipe - 1" and under

Loop Check

=

0.5 Labor Hours/Lin. Ft.

Figure 421-24 includes the labor hours to check that all components are
properly connected, respond correctly, and perform their intended function.
Description

Labor Hrs
4.0 Each

Loop Check
Test Air Supply, Transmission & Control
Leads

0.1/Lin. Ft.

Test Process Side Connection Leads

0.1/Lin. Ft.

Test Thermocouple Leads

1.0 Each

Test Alarm Loops

1.0 Each

Test Electronic Instrument Loop, Plus
Power Supply

4.0 Each

Figure 421-24. Installation Labor Hours: Loop Check

Calibration & Testing

Labor hours in Figure 421-25 include time to test, inspect, and calibrate
instruments, to test relief valves, and to pneumatically stroke control
valves.

Cost Estimating Manual
Page 421-18

April 1995

Installation Labor Hours for L—Piping

Description

Labor Hrs
Each

Field Instruments and Transmitters

4.0

Panel Instruments

4.0

Control and Relief Valves

4.0

D
A
T
A

25.0

Analyzers (Varies with Type)

To test and calibrate all other instruments, allow 12
percent of installation manhours for the instrument
involved.
Figure 421-25. Installation Labor Hours for Calibration & Testing

Description

Labor Hrs
Each

Strongbacks (Bridles)

38.0

Pipe Stands

12.0

Pipe Saddles

6.0

Seal Pots

9.0

Figure 421-26. Installation Labor Hours for Instrument Supports

Instrument Supports

The labor hours for instrument supports include on-site fabrication as
shown in Figure 421-26.

Installation Labor Hours for L—Piping
The following items are discussed in this section:
Applicability
Alloy and Stainless Steel Piping
PVC and Cement-Lined Carbon Steel Piping
Plant Modifications or Small Projects
Stress Relief
Piping—Two Inches and Under
Unlisted Wall Thicknesses
Materials Handling
Steam Tracing
Testing and Inspection
Pipe Guides, Anchors, and Hangers
Off-Plot and Interconnecting Piping
Operations Not Listed
Cost Estimating Manual
April 1995

Page 421-19

421

Installation Labor Hours for Minor Materials (Bulks)

Field Fabrication
Field Installation of Pipe Spools
Field Fabrication and Installation of Pipe Spools
Field Fabrication and Installation of Off-Plot, Interconnecting Piping
on Elevated Racks or Sleepers
Underground Installation of Pipe
Field Fabricated Buttwelds
Field Cutting and Bevelling Pipe
Field Handling and Installing Flanged Valves and Piping Specialties
Field X-ray
Multipliers for Converting Carbon Steel Labor Hours to Alloy,
Stainless Steel, and Other Materials Labor Hours

D
A
T
A

Applicability

Alloy & Stainless
Steel Piping

PVC & CementLined Carbon Steel
Piping
Plant Modifications or
Small Projects

The figures for piping illustrate the labor hours required to perform the
operations shown for aboveground carbon steel pipe in new process
plants, unless otherwise described.
To estimate construction labor hours from the information in this section,
you must know the linear feet of pipe by size and schedule and have a
valve count by size and pressure rating. It is particularly important to get
an accurate take-off for piping under two inches in diameter, because the
quantity of small pipe in many process plants can be as much or more than
that of large pipe.
Figure 421-38 gives the multipliers for converting labor hours from the
carbon-steel tables to labor hours for the specified material. These
multipliers are applicable to all operations, unless specifically excluded.

See S—Miscellaneous later in this section.

For plant modifications or small projects in existing refineries, when
refinery personnel or a local contractor of proven capability carries out the
work, you may reduce the labor hours shown in the figures by as much as
15 percent (see the relative multipliers in Figure 421-1). The reason is that
the small crews needed for this work usually have more capable craftsmen
than the larger crews of major projects. Before making this reduction,
however, consult operating company personnel to confirm their experience
with this type of work.

Cost Estimating Manual
Page 421-20

April 1995

Installation Labor Hours for L—Piping

Stress Relief

Piping—Two Inches
& Under

Unlisted Wall
Thickness
Materials Handling

ANSI Codes require stress relief for pipe with wall thickness of 3⁄4 inch or
greater. Pipe sizes and schedules requiring stress relief are shown under
the stepped line in Figures 421-30, 421-31, and 421-34. Estimate labor
hours as follows:
For electric resistance stress relief, estimate 2.5 labor hours per
diameter-inch of weld.
For exothermic stress relief, estimate 0.7 labor hours per
diameter-inch.
For Chrome-Moly alloys, multiply by 1.35.
For 18-8 stainless steel (304, 316, 347), multiply by 1.4.
This includes recording the weld temperature and Brinell test.
Estimate field fabrication and installation of carbon steel pipe two inches
or less according to the type of connection and regardless of pipe diameter
or wall thickness, aboveground or underground, from Figure 421-27.
For estimating pipe with a wall thickness not covered by the regular pipe
schedules, use the labor hours for the closest listed schedule.
To estimate the labor hours required for handling materials from receipt at
the jobsite, storage and intermediate operations, and delivery to the point
of installation, multiply the total installation labor hours by 0.06. This
applies to aboveground and underground piping and includes pipe, valves,
flanges, fittings, and piping specialties.
If you estimate valve installation labor hours using Figure 421-36 (which
includes field handling), the duplication is usually not significant.

Type of
Connection

Labor Hrs./
Lin. Ft.

Screwed

0.40

Screwed and
Backwelded

0.70

Socket Weld

0.60

Buttweld

0.90

Notes
Labor Hours include cutting to length, end preparation,
welding, boltups & installation of pipe hangers & supports.
For alloy and stainless steel, use the multiplier from Figure
421-38.
Estimate galvanized pipe as plain carbon steel pipe.
Estimate labor hours for trench excavation, backfill, etc.,
separately. See Figure 421-33.

Figure 421-27. Installation Labor Hours for Piping 2 Inches & Under

Cost Estimating Manual
April 1995

Page 421-21

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

D
A
T
A

Tracer

Labor Hrs./
Lin. Ft.

Copper Tubing

0.27

Steel Tubing

0.36

Steel Pipe

0.72

Notes
Add for tracer leads from main steam header to process line and
return to condensate line labor hours for the appropriate type of
connection from Piping—Two inches and Under.
For assembly of composite steam traps, estimate 10 labor hours
(14 if seal welded).

Figure 421-28. Installation Labor Hours for Steam Tracing

Steam Tracing

To estimate the labor hours required to install steam tracing, use the values
shown in Figure 421-28 for the kind of tracer being installed. The labor
hours include installation of the tracer, fittings, valves, traps, condensate
pots, strainers, clips, supports, guides, anchors, wire, straps, and one steam
trap assembly every 100 feet.

Testing & Inspection

To estimate the labor hours for hydrostatic or air testing lines, flushing and
draining the piping system, and installing and removing temporary lines,
screens, blinds, spacers, etc., multiply the total fabrication and installation
labor hours by 0.08.

Pipe Hangers &
Supports

To estimate the labor hours for handling and erecting hangers and supports
for aboveground piping, multiply the installation labor hours for
aboveground piping by the factors in Figure 421-29.

OffPlot &
Interconnecting
Pipelines

Unless you compensate for them, poorly defined project offplot requirements can degrade the quality of the most carefully prepared onplot
estimate. This is particularly true of the piping account, which usually is
near or greater than the value of onplot piping.
As a minimum, prepare a sketch of probable offplot facilities on a plot
plan and show the line routing; then measure the length of the lines and
size them, if possible. If you can’t size them, assume and estimate a
reasonable line size using Figure 421-32. Make no adjustments to the
labor hours shown in the tables for other operations.

Aboveground
Piping

Multiply
By

Onplot

0.18

Offplot

0.16

Figure 421-29. Installation Labor Hours
for Pipe Hangers & Supports

Cost Estimating Manual
Page 421-22

April 1995

Installation Labor Hours for L—Piping

Operations Not Listed

Field
Fabrication

If an estimate requires labor hours for operations not covered in this
section, or for material not usually encountered in process plants (such as
thick wall, large diameter pipe), use the labor hours from the appropriate
table in the Estimator’s Piping Man-Hour Manual. 1
See Figure 421-30. Labor hours include cutting straight run pipe to length,
bevelling, line-up, tack, and welding.

Field Installation of
Pipe Spools

The labor hours in Figure 421-31 include rigging in place, aligning,
welding, and bolt-ups.

Field Fabrication &
Installation of Pipe
Spools

Add the labor hours from Figures 421-30 and 421-31.
If better information is not available, for estimating purposes assume that
an average pipe spool is 12 feet long and weighs 180 pounds.

Pipe Size
(In.)

Labor Hours per Linear Foot
Pipe Schedule
80 & XS

100

120

Average
Under 3⁄4“
Thick

3⁄ ” Thick
4

0.80

0.63



0.74

0.81

0.68



1.05

1.16

0.89

1.16

10-40 &
Std.

60

140 & 160

3

0.49



0.56





0.67

4

0.55



0.61



0.67

6

0.72



0.86



0.95

XXS

& Over

8

0.85

0.89

0.98

1.08

1.19

1.70

1.53

0.96

1.62

10

0.98

1.03

1.13

1.24

1.96

2.25

2.25

1.05

2.15

12

1.11

1.22

1.34

2.22

2.44

2.81

2.44

1.17

2.47

14

1.22

1.34

2.44

2.68

2.95

3.39



1.24

2.86

16

1.31

1.47

2.68

2.95

3.25

3.58



1.35

3.11

18

1.54

2.95

3.25

3.58

3.94

4.33



1.54

3.61

20

1.69

3.25

3.58

3.94

4.33

4.97



1.69

4.01

24

1.94

3.58

4.12

4.53

5.21

5.73



1.94

4.64

ANSI Codes require stress relief of pipe with wall thickness of 3⁄4" and greater. Sizes requiring stress relief are shown
below the stepped line in the table above. See “Stress Relief” for labor hours for stress relieving.
Figure 421-30. Installation Labor Hours: Field Fabrication

1

John S. Page, Gulf Publishing Company.
Cost Estimating Manual

April 1995

Page 421-23

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Pipe Size
(In.)

D
A
T
A

Labor Hours per Linear Foot
Pipe Schedule

Average
Under 3⁄4“
Thick

3⁄ ” Thick
4

1.21

1.00



1.44

1.18



1.42

1.56

1.24

1.56

1.71

1.96

1.96

1.37

1.96

1.66

2.13

2.56

2.56

1.41

2.42

2.18

2.40

2.90

2.90

1.44

2.60

2.46

2.71

2.98

3.43



1.45

2.90

1.71

2.66

2.93

3.22

3.89



1.53

3.18

1.64

2.88

3.17

3.49

3.84

4.64



1.64

3.60

1.97

3.10

3.41

3.75

4.13

5.00



1.97

3.88

2.36

3.53

3.88

4.27

4.70

5.64



2.36

4.40

10-40 &
Std.

60

80 & XS

100

120

140 & 160

3

0.77



0.92





1.10

4

0.90



1.08



1.19

1.31

6

1.06



1.17



1.29

8

1.22

1.28

1.41

1.55

10

1.30

1.37

1.51

12

1.35

1.49

1.64

14

1.42

1.56

16

1.49

18
20
24

XXS

& Over

ANSI Codes require stress relief of pipe with wall thickness of 3⁄4" and greater. Sizes requiring stress relief are shown
below the stepped line in the table above. See “Stress Relief” for labor hours for stress relieving.
Figure 421-31. Installation Labor Hours: Field Installation of Pipe Spools

Field Fabrication &
Installation of Offplot,
Interconnecting
Piping
Underground
Installation of Pipe

The labor hours in Figure 421-32 include cutting straight-run pipe to
length, bevelling, line-up, welding, or bolt-up of all connections.
See Figure 421-33. Labor hours are to install coated and wrapped pipe in
place, weld, coat, and wrap joints.
Pipe Size (In.)

On Elevated
Racks Labor
Hrs/Lin. Ft.

On Sleepers
Labor
Hrs/Lin. Ft.

Pipe Size (In.)

On Elevated
Racks Labor
Hrs/Lin. Ft.

On Sleepers
Labor
Hrs/Lin. Ft.

3

0.36

0.29

16

1.10

0.72

4

0.39

0.31

18

1.17

0.80

6

0.48

0.33

20

1.26

0.90

8

0.55

0.36

24

1.45

1.10

10

0.60

0.42

30

1.71

1.35

12

0.70

0.50

36

2.00

1.60

14

0.86

0.62

This table represents double random-length pipe. For single random-length pipe, multiply the
above figures by 1.5.
For complex piping offplot, such as plot limit waterfalls, or tank connections, use the tables for
onplot piping.
These labor hours do not include erecting racks or installing sleepers.
Figure 421-32. Installation Labor Hours: Field Fabrication & Installation of Offplot, Interconnecting
Piping on Elevated Racks or Sleepers

Cost Estimating Manual
Page 421-24

April 1995

Installation Labor Hours for L—Piping

Pipe
Size
(In.)

Labor Hours per Linear Foot
Pipe Schedule
100–120 140–160

3/4"
Thick
or Less

Pipe
Size
(In.)

10–40

60–80

3

0.50

0.55



0.63



4

0.54

0.59

0.68

0.78



6

0.65

0.72

0.83

0.95

Labor Hours per Linear Foot
Pipe Schedule
100–120 140–160

3/4"
Thick
or Less

10–40

60–80

18

1.54

1.77

2.04

2.35



20

1.65

1.90

2.19

2.52





24

1.87

2.15

2.47

2.84



8

0.77

0.89

1.02

1.17



30









2.20

10

0.88

1.10

1.32

1.52



36









2.64

12

1.00

1.25

1.56

1.79



42









2.97

14

1.14

1.35

1.62

1.94



48









3.30

16

1.43

1.64

1.89

2.17



60









3.96

Add for excavation, backfill, and disposal:
- Onplot: 1.5 Labor Hours/Cu. Yd.
- Offplot: 1.0 Labor Hours/Cu. Yd.
Labor for coating pipe is included in the cost of the coating because pipe coatings are applied in a commercial pipecoating yard.
Estimate separately labor hours to install underground valves, accessories, valve boxes, pipe thrust anchor blocks, etc.
Figure 421-33. Installation Labor Hours: Underground Installation of Pipe

The labor hours in Figure 421-34 are provided for making a single buttwelded joint, either in a field-fabrication shop or in place. The labor hours
apply to connections of any combination of pipe, flanges, fittings, and
valves.

Field-Fabricated
Buttwelds

Pipe Size
(In.)

Labor Hours per Manual Buttweld
Pipe Schedule
20

30

40

60

80

100

120

140

160

3





1.3



1.4

4





1.5



1.8







2.1



2.8



6





2.0



3.0

2.5



3.8



4.9

8

2.6

2.6

2.6

3.0

3.3

4.6

6.0

7.5

8.6

10

3.1

3.1

3.1

4.0

5.1

6.8

9.4

11.4

13.1

12

3.6

3.6

4.1

5.2

6.6

9.9

12.2

15.3

17.9

14

4.3

4.3

5.0

6.8

9.6

13.2

16.2

19.2

22.7

16

5.0

5.0

6.6

8.4

12.4

19.5

20.7

25.0

27.7

18

5.9

6.8

8.6

11.2

16.4

21.8

25.6

29.9

33.7

20

6.3

8.4

9.4

13.8

19.5

26.0

31.9

37.0

40.8

24

6.9



13.3

20.1

25.2

35.8

43.5

49.3

59.3

For Standard Weight, use Schedule 40 through 10"; then Schedule 20.
For Extra Strong, use Schedule 80 through 8"; then Schedule 30.
For Double Extra Strong, use Schedule 160.
ANSI Codes require stress relief of pipe with wall thickness of 3⁄4" and greater. Sizes requiring stress relief are shown
below the stepped line in the table above. See “Stress Relief” for labor hours for stress relieving.
Figure 421-34. Installation Labor Hours: Field-Fabricated Buttwelds

Cost Estimating Manual
April 1995

Page 421-25

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Pipe Size
(In.)

D
A
T
A

Labor Hours per Manual Buttweld
Pipe Schedule
20

30

40

60

80

100

120

140

160

3





0.2



0.2

4





0.3



0.4







0.3



0.5



6





0.4



0.6

0.5



0.7



0.8

8

0.6

0.6

0.6

0.7

0.8

1.0

1.1

1.2

1.4

10

0.8

0.8

0.8

1.2

1.2

1.4

1.6

1.8

2.2

12

0.9

0.9

1.1

1.6

1.7

1.8

2.2

2.4

2.6

14

1.2

1.2

1.4

1.8

2.1

2.2

2.4

2.9

3.0

16

1.4

1.4

2.0

2.2

2.4

2.7

2.9

3.2

3.7

18

1.8

2.0

2.5

2.8

3.0

3.3

3.5

4.0

4.7

20

2.1

2.9

3.1

3.3

3.5

3.9

4.1

4.8

5.5

24

3.3

4.4

4.6

4.8

4.9

5.4

5.9

6.7

7.6

For Standard Weight, use Schedule 40 through 10 inches; then Schedule 20.
For Extra Strong, use Schedule 80 through 8 inches; then Schedule 30.
For Double Extra Strong, use Schedule 160.
Figure 421-35. Installation Labor Hours: Field Cutting & Bevelling Pipe

Field Cutting &
Bevelling Pipe

Field Handling &
Installing Flanged
Valves Piping
Specialties

The labor hours in Figure 421-35 are provided for cutting and bevelling
one end of pipe with a cutting torch, either in a field-fabrication shop or in
place.

Figure 421-36 includes fitter and equipment operator labor hours to install
valve in place and bolt-up flanges.
Excludes: Make-on of mating flanges.

Field X-ray

Field x-ray is usually subcontracted. See Figure 421-37. This chart
includes labor hours required for x-raying field welds.

Converting Carbon
Steel Labor Hours

See Figure 421-38 for converting carbon steel labor hours to alloy,
stainless steel, and other materials labor hours.

Cost Estimating Manual
Page 421-26

April 1995

Installation Labor Hours for L—Piping

Labor Hours per Valve
Pressure Rating
Pipe
Size
(In.)

150
lb.

300
lb.

600
lb.

900
lb.

1500
lb.

2500
lb.

Notes
- Valves 2" and under are included in the per-foot labor hours
for the type of connection shown in “Piping–Two Inches
and Under.”
- Refer to this table for
- control valve, relief valve, and flanged flow tube
installation; then add labor hours for instrumentation
connections.
- buttwelded valves 6" and smaller.
- Do not use alloy and stainess steel multipliers for this
operation unless the valve is buttwelded.
- Specialty Weights/Materials:
- For 125 lb. iron and brass valves, use 150 lb. LH.
- For 200 lb. iron and brass valves, use 300 lb. LH.
- For 400 lb. steel valves, use 600 lb.LH.
- Adjustments:
- For motor-operated valves, multiply table LH by 1.54.
- For flange facings other than raised face or flat faced,
multiply the table LH by 1.14.
- For a combination of the conditions above, multiply
table LH by 1.68.
- Multipliers or Labor Hours for Specialties
- Steam Traps, Y-Type Strainers, Sample Coolers,
Spectacle Blinds: Table LH x 1.20
- Temporary Strainers: Table LH for 150 lb.
- Fire Hydrants: 10 Labor Hours
- Utility Hose and Hose Rack: 10 Labor Hours
- Safety Shower Units: 20 Labor Hours

3

2.8

3.3

4.0

4.4

5.4

6.6

4

4.1

4.8

5.6

6.0

7.3

9.0

6

5.2

6.1

6.9

7.5

9.3

10.9

8

7.0

8.2

9.4

10.2

12.7

15.7

10

9.0

10.2

11.5

12.5

16.0

19.2

12

11.1

12.7

14.5

15.7

20.1

24.9

14

12.7

14.6

16.7

18.1

23.5



16

14.7

16.9

19.2

20.8

27.5



18

16.3

18.9

22.0

23.8

31.5



20

18.7

21.6

25.1

27.1

36.5



24

21.7

25.1

29.4

31.8

43.1



Figure 421-36. Installation Labor Hours: Field Handling & Installing Flanged Valves & Piping Specialties

Pipe Size
(In.)

Labor Hours per Buttweld
Pipe Schedule

Pipe Size
(In.)

Labor Hours per Buttweld
Pipe Schedule

20-XS

>XS-120

140-XXS

20-XS

2 or less

0.86



1.13

12

1.71

1.97

2.23

3

0.86



1.13

14

1.86

2.14

2.42

4

0.98

1.13

1.27

16

2.08

2.39

2.70

6

1.20

1.40

1.56

18

2.32

2.67

3.01

8

1.35

1.54

1.75

20

2.55

2.94

3.34

10

1.51

1.73

1.97

24

3.15

3.62

4.08

>XS-120

140-XXS

If welds are not counted, use 9 percent of total fabrication and installation labor hours, excluding steam tracing.
Figure 421-37. Installation Labor Hours: Field X-ray

Cost Estimating Manual
April 1995

Page 421-27

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Description

D
A
T
A

Chrome-Molybdenum
(Chrome 1⁄2-2%, Moly to 1%)
Chrome-Molybdenum
(Chrome 21⁄4-6%, Moly to 1%)

Chrome-Molybdenum
(Chrome 6%-15%,
Moly to 1%, Nickel 31⁄2%)

Stainless Steel
(300-series, Inc. L & H grades)

Copper, Brass, Everdur

Labor Hour
Multiplier

Description

Labor Hour
Multiplier

2" and less

1.25

2" and less

Over 2"

1.35

3" - 6"

1.50

2" and less

1.30

8" - 10"

1.65

3" - 8"

1.35

12" - 14"

1.75

10" - 16"

1.45

16" - 18"

1.90

18" - 24"

1.55

20" - 24"

2.10

2" and less

1.40

3" - 8"

1.50

10" - 14"

1.60

16" - 18"
20" - 24"
2" and less

1.35

3" - 6"

1.40

8" - 12"
14" - 16"

Carbon Steel - Sub-Zero to 50°F.
(A-333 Grades 1,4,9)

1.40

2" and less

2.00

3" - 12"

2.30

1.70

2" and less

1.40

1.85

3" - 6"

1.45

8" - 12"

1.60

14" - 16"

1.70

1.55

18" - 20"

1.90

1.65

24"

2.00

18" - 20"

1.80

2" and less

1.50

24"

2.00

3" - 6"

1.55

6" and less

1.25

8" - 10"

1.75

8" - 12"

1.50

12"

1.85

14" - 20"

1.70

14" - 16"

1.95

24"

1.95

18"

2.10

20"

2.25

24"

2.40

Hastelloy, Titanium, 99% Nickel

Cu-Ni, Monel, Inconel, Incoloy,
Alloy 20

Aluminum

Apply to labor hours for all operations unless specifically excluded.
Figure 421-38. Multipliers for Converting Labor Hours from Carbon Steel to Alloy, Stainless Steel & Other Materials

Installation Labor Hours for M—Structural Steel
Installation labor hours for structural steel include the field labor
associated with erecting, bolting, riveting, welding, and burning the
following:
Steel structures and structural steel enclosures
Access platform steel
Structural steel pipeways or elevated racks
Other steel structures
Miscellaneous steel field fabrication and erection
All steel is shop-fabricated, except for miscellaneous field fabrication.

Cost Estimating Manual
Page 421-28

April 1995

Installation Labor Hours for M—Structural Steel

Description

Labor Hours

Light Steel (Less than 17 lb./lin. ft.)

43 /Ton

Heavy Steel (17-48 lb./lin. ft.)

18 /Ton

Very Heavy Steel (Over 48 lb./lin. ft.)

8 /Ton

D
A
T
A

0.15 /Sq. Ft.

Grating or Checkered Plate
(other than part of vessel platform)

Figure 421-39. Installation Labor Hours: Steel Structures &
Structural Steel Enclosures

Steel Structures &
Structural Steel
Enclosures

Steel structures support major equipment such as platforms, grating,
checkered plate, stairs, ladders, cages, handrails, and toe plates. Structural
steel enclosures cover the steel frame structure, siding, roof, doors, and
windows for enclosing plant equipment. See Figure 421-39.

Access Platform Steel

Access platform steel provides access to columns, vessels, exchangers,
compressors, instruments, valves, and so on, for operation, maintenance,
and safety. The labor hours for installation cover items such as platforms,
stairs, ladders, cages, handrails, toe plates, grating, and checkered plate,
not normally supplied with the equipment.
50 Labor Hours/Ton

Structural Steel
Pipeways or
Elevated Racks

23 Labor Hours/Ton

When air coolers are mounted on top of the pipeway, add an additional
five labor hours/ton.
Other Steel
Structures

Other steel structures include loading platforms, stiles, crossings, and so
on.
25 Labor Hours/Ton

Miscellaneous Steel
Field Fabrications &
Erection
Elevated Concrete
Structures &
Piperacks

Installation labor hours for miscellaneous steel field fabrication and
erection includes items not covered above such as pipe sleepers, stiles
across grade-level pipeways, or tank dikes. See Figure 421-40.

Refer to Q—Foundations later in this section.

Cost Estimating Manual
April 1995

Page 421-29

421

Installation Labor Hours for Minor Materials (Bulks)

By Weight per Item

D
A
T
A

Labor Hours/Lb

100 lb. or less

0.5

101-500 lb.

0.25

Over 500 lb.

0.075

Figure 421-40. Installation Labor Hours:
Miscellaneous Steel Field Fabrication & Erection

Installation Labor Hours for N—Insulation and Fireproofing
Pipe Insulation

Installation labor hours for pipe insulation cover applying both hot and
cold external insulation (including jacketing), plus erecting and removing
necessary scaffolding. See Figure 421-41.

Equipment Insulation

Installation labor hours for equipment insulation cover applying both hot
and cold insulation (including jacketing) on columns, vessels, heat
exchangers, etc. See Figure 421-42.
Insulation material is assumed to be calcium silicate.

Labor Hours per Effective Linear Foot1
Pipe Size
(In.)

Insulation Thickness (In.)
1

1

11/2

2

21/2

3

31/2

2 or less

0.15

0.16

0.18

0.20





3

0.16

0.19

0.20

0.22





4

0.19

0.20

0.22

0.24





6

0.21

0.23

0.24

0.26

0.39



8



0.25

0.27

0.29

0.43



10



0.29

0.30

0.32

0.48



12



0.33

0.34

0.36

0.54

0.57

14



0.35

0.37

0.39

0.61

0.62

16



0.40

0.43

0.44

0.67

0.70

18



0.45

0.47

0.49

0.76

0.78

20



0.50

0.52

0.54

0.85

0.88

24



0.62

0.65

0.68

1.06

1.09

30



0.84

0.88

0.91

1.48

1.52

Effective linear foot equals the actual linear foot measurement plus a 35 percent fitting factor.

General
When the required thickness is not shown, use labor hours needed for more than one layer;
e.g., for a two-inch pipe requiring three inches of insulation, use labor hours for a one-inch
layer plus those for a two-inch layer.
For low-temperature processes (cryogenics), multiply the above labor hours by 2.75.
Figure 421-41. Installation Labor Hours: Pipe Insulation

Cost Estimating Manual
Page 421-30

April 1995

Installation Labor Hours for N—Insulation and Fireproofing

Labor Hours per Effective Linear Foot
Column & Vessel

Exchanger

Thickness
(In.)

Shell

Heads

Tanks

Shell

Heads

1

0.20

0.41

0.09

0.22

0.54

11⁄2

0.21

0.42

0.09

0.23

0.55

2

0.22

0.44

0.10

0.24

0.57

21⁄2

0.23

0.46

0.11

0.26

0.59

3

0.25

0.49

0.15

0.29

0.63

Adjustments
For erecting and removing scaffolding, add five percent to the above labor hours.
For typical refinery equipment, the effective square footage equals the takeoff square footage
multiplied by a fitting factor of 1.10.
For equipment with a large number of nozzles or stiffener rings, use a factor of 1.3.
When the required thickness is not shown, use the labor hours needed for more than one
layer; e.g., for 31⁄2 inches, use the labor hours for a 1-inch plus a 21⁄2-inch layer.
Other Adjustments
For low-temperature processes (cryogenics), multiply the above labor hours by 2.75.
For steam turbine drivers, pumps, etc., estimate the area to be insulated and use the labor
hours shown for an exchanger shell.
Calculate the area using the OD (outside surface) of the insulation.
Figure 421-42. Installation Labor Hours: Equipment Insulation

Fireproofing—Gunite

Installation labor hours include applying fireproofing materials such as
cement, concrete, and wire mesh to equipment and structural supports like
skirts for columns or vertical vessels, vessel legs, main pipeway bents,
pipe stanchions, furnace hearth, legs, and beams.
For skirts on columns and vessels, refer to Standard Drawing GD-N99994
(in the Chevron Fire Protection Manual) to determine whether or not both
the outer and inner areas require gunite.
2" Gunite with 1⁄2" square mesh

=

0.3 Labor Hour/Sq. Ft.

These labor hours per square foot include an allowance for normal
sandblasting or wire brushing, assuming that the steel is not primed.
Fireproofing—
Concrete, Poured
in Place

Installation labor hours include fireproofing pipeways, pipe stanchions,
and steel structures using concrete poured in place. Labor hours include
grouting and patching after pouring the concrete and removing the forms.
See Figure 421-43.

Cost Estimating Manual
April 1995

Page 421-31

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Description

D
A
T
A

Average

Labor Hours

Two-inch coverage (4 sides)

Detailed Estimate Concrete

6.0 /Cu. Yd.

Forms

0.3 /Sq. Ft.

Wire Mesh

0.13 /Sq. Ft.

Rebar

0.018 /Lb.
1

Scaffolding
1

40 /Cu. Yd.

Add 5 percent to the total manhours developed.

Figure 421-43. Installation Labor Hours: Fireproofing—Concrete,
Poured in Place

Installation Labor Hours for P—Electrical
This section contains information about the installation labor hours for the
following:
Distribution Equipment
Power & Control Equipment
Emergency & Standby Equipment
Lighting Equipment
Rigid Metallic Conduit, Aboveground
Rigid Metallic Conduit, Underground
Non-Metallic Conduit & Duct, Aboveground & Underground
Thinwall Metallic Conduit, Aboveground
Conduit Fittings, Galvanized Steel and Rigid Aluminum
Conduit Excluding Fittings & Support, Aboveground
Cable Trays & Channels
Concrete Electrical Conduit Envelope
600V & 1000V Wire & Cable
Air Interrupter Switches
Grounding
Testing
Distribution
Equipment

Installation labor hours for distribution equipment include handling and
setting the following electrical equipment:
High-voltage master substations
15 KV switchgear
Power transformers
High Voltage Master Substation and 15 KV Switchgear

See Figure 421-44.
Cost Estimating Manual
Page 421-32

April 1995

Installation Labor Hours for P—Electrical

High-Voltage Master Substation

Labor Hours/Ton
15

I-Beam or Box Steel Structures or Both

36

Lattice Steel Structures

Labor Hours/Each
15 KV Metalclad Switchgear

Indoor Outdoor Walk In

1

500 MVA-1200 A ACB -2000 A ACB

60

65

750 MVA-1200 A ACB1-2000 A ACB

65

70

80

1000 MVA-1200 A ACB1-2000 A ACB-3000 A ACB

95

100

115

Starters - Full Voltage Induction Motors

15

15

15

Starters - Reduced Voltage Induction Motors

30

35

45

Generator - ACB and Control

30

35

45

Starters - Full Voltage Synchronous Motors

30

35

45

Starters - Reduced Voltage Synchronous Motors

60

70

90

600 A Fused Switch - 1200 A Unfused Switch

25

30

40

1200 A Fused Switch

30

35

45

1

75

ACB = Air Circuit Breaker

Figure 421-44. Installation Labor Hours: High Voltage Master Substation and
15 KV Switchgear

Power and Distribution Transformers, Oil Immersed, Self-Cooled, 3-Phase

See Figure 421-45.

KVA

Labor Hours
Each

KVA

Labor Hours
Each

112.5

32

3750

170

150

36

5000

195

225

44

7500

235

300

51

10,000

270

500

65

12,000

295

750

78

15,000

327

1000

90

20,000

375

1500

110

25,000

417

2000

125

30,000

455

2500

140
0.48

Labor Hours = 3.34 (KVA)

Special Items

Labor Hours
Each

Fused Primary Switches on Transformers

10

Transition Connection

30

Throat Connection

50

Neutral Grounding Resistor

30

Metal-Clad Primary Fused Switch (5 KV & 15 KV)

30

Figure 421-45. Installation Labor Hours: Power and Distribution Transformers,
Oil Immersed, Self-Cooled, 3-Phase

Cost Estimating Manual
April 1995

Page 421-33

D
A
T
A

421

D
A
T
A

Installation Labor Hours for Minor Materials (Bulks)

Power & Control
Equipment

The following figures show the installation labor hours for handling and
setting the electrical equipment listed below:
Figure 421-46: 5 KV and 600 KV switchgear
Figure 421-47: 2300 V/200 MVA & 4160V/400 MVA motor control
centers, cubicle-type
Figure 421-48: 600 V motor control center—cubicle-type and
prefabricated switchback
Figure 421-49: Air circuit breakers
Figure 421-50: Push buttons and weld receptacles

Labor Hours, Each
5 KV Metalclad Switchgear

Indoor

Outdoor

Walk In

75 MVA-1200 A ACB

30

40

45

250 MVA-1200 A ACB-2000 A ACB

45

45

55

350 MVA-1200 A ACB-2000 A ACB - 3000 A ACB

60

60

70

Starters - Full Voltage Induction Motors

10

10

10

Starters - Reduced Voltage Induction Motors

20

30

35

Generator - ACB and Control

20

30

35

Starters - Full Voltage Synchronous Motors

20

30

35

Starters - Reduced Voltage Synchronous Motors

40

60

70

600 A Fused Switch - 1200 A Unfused Switch

20

25

30

1200 A Fused Switch

25

30

35

Labor Hours, Each
600 V Metal-Enclosed Switchgear

Indoor

Outdoor

Walk In

225 A ACB, 150 HP max

9

11

13

600 A ACB, 400 HP max

11

13

15

1600 A ACB, 1000 HP max

18

22

26

2000 A ACB

24

29

34

3000 A ACB

30

36

42

4000 A ACB

40

50

60

5

5

5

Starters - Reduced Voltage Induction Motors

10

12

14

Generator - ACB and Control

10

12

14

Starters - Full Voltage Induction Motors

Figure 421-46. Installation Labor Hours: 5 KV & 600 KV Switchgear

Cost Estimating Manual
Page 421-34

April 1995

Installation Labor Hours for P—Electrical

Description

Full-Voltage Non-Reversing
Induction

Full-Voltage Reversing Induction

Reduced-Voltage Non-Reversing
Induction

Reduced-Voltage Reversing
Induction

Full-Voltage Non-Reversing
Synchronous

Reduced-Voltage Non-Reversing
Synchronous
1

Labor Hours, Each

HP1

Amps

Indoor

Outdoor

Walk In

200

700, 1250

25

25

35

400

1500, 2500

30

35

45

700

2500, 4500

35

40

50

200

700, 1250

35

35

45

400

1500, 2500

40

45

55

700

2500, 4500

45

50

60

200

700, 1250

40

40

55

400

1500, 2500

45

50

65

700

2500, —

55

60

75

700

—, 4500

60

65

80

200

700, 1250

50

50

65

400

1500, 2500

60

65

80

700

2500, 4500

65

70

85

200

700, 1250

35

35

45

400

1500, 2500

40

45

55

700

2500, 4500

45

50

60

200

700, 1250

45

45

60

400

1500, 2500

55

60

75

700

2500, 4500

60

65

80

Horsepowers are for 2300 V / 200 MVA and 4160 V / 400 MVA, respectively.
.

.

.

.

Figure 421-47. Installation Labor Hours: 2300 V / 200 MVA & 4160 V / 400 MVA Motor Control
Centers, Cubicle Type
.

.

.

.

Cost Estimating Manual
April 1995

Page 421-35

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Description

D
A
T
A

Full-Voltage Non-Reversing

Full-Voltage Reversing

Reduced-Voltage Non-Reversing

Two-Speed Full-Voltage
Non-Reversing

Size

HP Max

Labor Hours, Each
Indoor

Outdoor

Walk In
5

1

10

3

4

2

25

4

5

6

3

50

6

8

10

4

100

9

12

15

5

200

16

21

26

6

400

22

30

38

1

10

5

7

9

2

25

6

8

10

3

50

14

19

24

4

100

16

21

26

5

200

18

24

30

6

400

30

40

50

2

25

14

19

24

3

50

16

21

26

4

100

18

24

30

5

200

20

26

32

6

400

38

50

62

1

10

5

7

9

2

25

9

12

15

3

50

14

19

24

4

100

16

21

26

5

200

18

24

30

6

400

22

30

38

Figure 421-48. Installation Labor Hours: 600 V Motor Control Center—Cubicle-Type
& Prefabricated Switchrack

Cost Estimating Manual
Page 421-36

April 1995

Installation Labor Hours for P—Electrical

Labor Hours Each
Air Circuit
Breakers

Indoor

Outdoor

Walk In

100 A

3

4

5

225 A

5

6

7

400 A

8

10

12

600 A

9

11

13

800 A

13

16

19

1000 A

14

17

20

1200 A

16

19

22

225 A

11

15

19

600 A

13

17

21

1600 A

30

40

50

D
A
T
A

Molded Case

Switchgear

Figure 421-49. Installation Labor Hours: Air Circuit Breakers

Description

Labor Hours Each
Indoor

WP

XP

Push Buttons

2

3

4

Weld Receptacle
w/100A CB

6

7

8

Weld Receptacle
w/225A CB

9

10

12

Figure 421-50. Installation Labor Hours: Push Buttons &
Weld Receptacles

Emergency &
Standby Equipment

Installation labor hours for emergency and standby equipment includes
those needed to handle and set the following electrical equipment:
emergency generators, static inverters, and uninterrupted power supply
(UPS) systems such as batteries and battery charging facilities. See Figure
421-51.

Cost Estimating Manual
April 1995

Page 421-37

421

Installation Labor Hours for Minor Materials (Bulks)

Description

D
A
T
A

Diesel Generators

Batteries & Racks

Battery Chargers

Labor Hours

100 - 500 KW

300 Each

550 - 1000 KW

600 Each

1100 - 2000 KW

900 Each

2100 - 3000 KW

1200 Each

3100 - 4000 KW

1400 Each

40 - 80 Amp-Hours

1.5 /Cell

100 - 160 Amp-Hours

2.0 /Cell

200 - 360 Amp-Hours

2.5 /Cell

400 - 580 Amp-Hours

3.0 /Cell

600 - 960 Amp-Hours

4.0 /Cell

1000 - 1800 Amp-Hours

5.0 /Cell

15 - 30 Amps

25 Each

35 - 100 Amps

40 Each

150 - 200 Amps

50 Each

300 - 400 Amps

60 Each

Figure 421-51. Installation Labor Hours: Emergency & Standby Equipment

Lighting Equipment

Installation labor hours for lighting equipment include handling and
installing the lighting equipment in the following figures:
Figure 421-52: Transformers
Figure 421-53: Lighting panels
Figure 421-54: Lighting fixtures and devices
1-Phase,
480V - 120/240V
KVA

3-Phase,
480V - 208/120V

Labor Hrs. Each

KVA

Labor Hrs. Each

3

6

3

6

5

7

6

8

7.5

9

9

10

10

10

15

12

15

12

30

17

25

16

45

21

37.5

19

75

26

50

22

112.5

32

75

26

150

36

100

30

225

44

167

38

300

51

0.47

Labor Hours = 3.46 (KVA)

Labor Hours in this table are to install and connect lighting transformers, excluding supports.
Figure 421-52. Installation Labor Hours: Lighting Equipment — Transformers

Cost Estimating Manual
Page 421-38

April 1995

Installation Labor Hours for P—Electrical

Labor Hours Each
No. of Circuits

Indoor

Weatherproof Explosion-proof

In MCCs

4

5

7

10

4

6

7

9

14

5
6

8

9

12

18

12

12

16

24

8

16

15

20

30

10

20

18

24

36

12

24

21

28

42

14

30

26

35



17

36

31

41



21

42

36

48



24

Labor Hours to Install and connect lighting panels, excluding supports.
Figure 421-53. Installation Labor Hours: Lighting Panels

Item

Labor Hours Each
Open
Indoor

Recessed
WP-VP

XP

1

2

3

4’ - 4 Tube

3

4

5

8’ - 4 Tube

4

5

6

4

5

6

3

4

5

500W

2

3

4

1500W

8

12

14

1000W

6

10

12

500W

4

8

10

Incandescent



3



Mercury Vapor



4



Emergency Battery Light

4

6



Obstruction Beacon



50



Obstruction Light (Dual)



10



Receptacle (110V)

1

1.5

2

Switch

1

1.5

2

Time Switch or Photo Cell

2

3

4

Contactor (Oil Switch)

6

8



Control Circuit Transformer (10–25 KVA)

10

10



Ballast (External)

1

2

3

Gooseneck Stanchion



4

4

Pole or Standard



10



Mast Arm



5



Thompson Hanger

10

20



Incandescent to 500W
Fluorescent

1500W
Mercury vapor and ballast 1000W

Floodlight

Luminaire

The labor hours in this table are to install and connect lighting fixtures and devices.

Figure 421-54. Installation Labor Hours: Lighting Fixtures & Devices

Cost Estimating Manual
April 1995

Page 421-39

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Labor Hours per Linear Foot

D
A
T
A

Size (In.)

XP Hazardous

Semi-Hazardous

Non-Hazardous

RGS

ALUM

RGS

ALUM

RGS

ALUM

1⁄
2

0.29

0.22

0.26

0.20

0.23

0.18

3⁄
4

0.31

0.23

0.28

0.21

0.25

0.19

1

0.34

0.25

0.31

0.23

0.28

0.21

11⁄4

0.39

0.28

0.35

0.25

0.32

0.23

11⁄2

0.43

0.30

0.39

0.27

0.35

0.24

2

0.54

0.36

0.49

0.33

0.44

0.30

21⁄2

0.68

0.44

0.62

0.40

0.56

0.36

3

0.86

0.54

0.78

0.49

0.70

0.44

31⁄2

1.08

0.64

0.98

0.58

0.88

0.52

4

1.30

0.76

1.18

0.69

1.06

0.62

5

1.75

1.02

1.59

0.93

1.43

0.84

6

2.20

1.32

2.00

1.20

1.80

1.08

Order-of-Magnitude (Average)
1 & under

0.32

0.24

0.29

0.22

0.26

0.20

11⁄4 - 2

0.47

0.33

0.43

0.30

0.38

0.26

21⁄2 & over

1.26

0.74

1.14

0.67

1.03

0.60

All Sizes

0.42

0.30

0.39

0.27

0.34

0.23

Flexible

0.70

0.70

0.70

0.70

0.60

0.60

Plastic Coated RGS Conduit = 1.10 x Labor Hours for RGS Conduit
Tray System Dropout Conduit = 1.30 x Labor Hours for A/G Conduit
RGS = Rigid Galvanized Steel
ALUM = Aluminum
Figure 421-55. Installation Labor Hours: Rigid Metallic Conduit, Aboveground

Rigid Metallic
Conduit,
Aboveground

Rigid Metallic
Conduit, Underground

Installation labor hours for aboveground rigid metallic conduit include
handling and installing the conduit plus the necessary condulets,
pullboxes, outlet and junction boxes, straps, hangers, supports, and
conduit racks. See Figure 421-55.
See Figure 421-56. Installation labor hours for underground rigid metallic
conduit include handling and installing metallic conduit into a
below-grade duct bank along with its couplings and fittings. It also
includes installing risers to grade and supports and spacers.
Excludes: Excavation and concrete envelope (see Figure 421-63).

Cost Estimating Manual
Page 421-40

April 1995

Installation Labor Hours for P—Electrical

Size (In.)

Labor Hours per Linear Foot
XP RGS

VP RGS

D
A
T
A

WP RGS

1

0.09

0.08

0.07

11⁄4

0.10

0.09

0.08

11⁄2

0.11

0.10

0.09

2

0.14

0.13

0.12

21⁄2

0.19

0.17

0.15

3

0.25

0.23

0.21

31⁄2

0.32

0.29

0.26

4

0.40

0.36

0.32

5

0.57

0.52

0.47

6

0.76

0.69

0.62

Order of Magnitude —Labor Hours per Linear Foot
1 & Under

0.09

0.08

0.07

11⁄4 - 2

0.13

0.12

0.11

21⁄2 & Over

0.39

0.35

0.31

All Sizes

0.12

0.11

0.10

Plastic Coated RGS Conduit = 1.10 x Labor Hours for
RGS Conduit
Figure 421-56. Installation Labor Hours: Rigid Metallic Conduit,
Underground

Non-Metallic Conduit
& Duct, Aboveground
& Underground

Installation labor hours include time for installing conduit, duct, fittings,
supports, spacers, and adapters aboveground and underground. See
Figures 421-57 and 421-58.
Excludes: Excavation and concrete envelope (see Figure 421-63).

Thinwall Metallic
Conduit,
Aboveground

Installation labor hours include handling and installing this material and
the required condulets, pull boxes, straps, hangers, supports, and conduit
racks. See Figure 421-59.

Conduit Fittings,
Galvanized Steel &
Rigid Aluminum

See Figure 421-60.

Cost Estimating Manual
April 1995

Page 421-41

421

Installation Labor Hours for Minor Materials (Bulks)

Labor Hours per Linear Foot
Size (In.)

D
A
T
A

A/G PVC

U/G PVC

1⁄
2

0.15



3⁄
4

0.16



1

0.18

0.05

11⁄4

0.20

0.06

11⁄2

0.21

0.07

2

0.25

0.10

21⁄2

0.30

0.13

3

0.36

0.16

31⁄2

0.43

0.20

4

0.51

0.25

5

0.68

0.34

6

0.89

0.45

Order of Magnitude—Labor Hours per Linear Foot
1 & Under

0.17

0.05

11⁄4 - 2

0.22

0.09

21⁄2 & Over

0.50

0.24

All Sizes

0.21

0.08

Plastic Coated RGS Conduit = 1.10- x Labor Hours for RGS Conduit
Figure 421-57. Installation Labor Hours: Non-Metallic Conduit Aboveground & Underground

Labor Hours per Linear Foot
Size (In.)
Type I
Korduct

Type II
Transite

ABS I
Plastic

ABSII
Plastic

2

0.07

0.10

0.03

0.05

3

0.08

0.11

0.04

0.06

4

0.10

0.14

0.05

0.07

5

0.12

0.17

0.06

0.08

6

0.15

0.20

0.08

0.10

All Sizes

0.09

0.12

0.04

0.06

Figure 421-58. Installation Labor Hours: Non-Metallic Duct Aboveground & Underground

Cost Estimating Manual
Page 421-42

April 1995

Installation Labor Hours for P—Electrical

Labor Hours per
Linear Foot

D
A
T
A

Size (In.)
Non-Hazardous
Area EMT
1⁄
2

0.16

3⁄
4

0.17

1

0.19

11⁄4

0.21

11⁄2

0.24

2

0.30

21⁄2

0.39

3

0.50

31⁄2

0.61

4

0.72

Order of Magnitude—
Labor Hours per Linear Foot
1 & Under
11⁄4
21⁄2

0.18

-2

0.26

& Over

0.59

All Sizes

0.23

Figure 421-59. Installation Labor Hours:
Thinwall Metallic Conduit, Aboveground

Labor Hours Each
Size (In.)
Union

Elbow

L Fitting

T Fitting

Seal
Fitting

3⁄
4

0.40

0.15

0.45

0.70

0.90

1

0.45

0.20

0.55

0.80

1.00

11⁄4

0.50

0.20

0.60

0.90

1.20

11⁄2

0.55

0.25

0.65

0.95

1.25
1.30

2

0.60

0.25

0.70

1.00

21⁄2

0.75

0.35

0.85

1.30

2.00

3

0.90

0.45

1.00

1.50

2.25

31⁄2

1.00

0.50

1.20

1.80

2.50

4

1.20

0.55

1.40

2.10

2.75

Figure 421-60. Installation Labor Hours: Conduit Fittings, Galvanized Steel
& Rigid Aluminum

Cost Estimating Manual
April 1995

Page 421-43

421

D
A
T
A

Installation Labor Hours for Minor Materials (Bulks)

Conduit, Excluding
Fittings & Support,
Aboveground

See Figure 421-61.

Installation labor hours for cable trays and channels include handling and
installing cable trays and channels along with their brackets and supports.
See Figure 421-62.

Cable Trays &
Channels

Installation labor hours for concrete electrical conduit envelope include
excavation and backfill, form work, rebar, and placing of concrete for
conduit envelopes. See Figure 421-63.

Concrete Electrical
Conduit Envelope

.
Labor Hours per Linear Foot
Rigid Galvanized Steel

Aluminum

Size (In.)

At Grade

3⁄
4

0.09

0.10

0.08

0.10

1

0.11

0.13

0.10

0.13

11⁄4

0.14

0.17

0.12

0.14

11⁄2

0.16

0.20

0.14

0.17
0.21

O/H Pipeway

At Grade

O/H Pipeway

2

0.20

0.25

0.18

21⁄2

0.28

0.33

0.24

0.29

3

0.34

0.41

0.29

0.35

31⁄2

0.40

0.49

0.35

0.41

4

0.55

0.66

0.47

0.55

Figure 421-61. Installation Labor Hours: Conduit, Excluding Fittings & Support, Aboveground

Item

Labor
Hours/Lin. Ft.

Metallic Standard Tray, 6-36" Wide (10’ Support Spacing)

1.0

Metallic Heavy Duty Tray, 6-36" Wide (25’ Support Spacing)

0.5

Metallic Channel, 3-4" Wide

0.5

FRP Tray: 1.3 x Labor Hours for Metal Tray
Figure 421-62. Installation Labor Hours: Cable Trays & Channels

Item

Labor Hours/Cu. Yd.

Excavation and Backfill

1.5

Concrete

3.5

Figure 421-63. Installation Labor Hours: Concrete
Electrical Conduit Envelope

Cost Estimating Manual
Page 421-44

April 1995

Installation Labor Hours for P—Electrical

600V & 1000V Wire
& Cable

Installation labor hours for wire and cable incudes the time to install all
1000V and under wire and cable for power, control, and lighting circuits,
including direct burial cable.
Excludes: Connections except where noted otherwise.
Power-Insulated/Jacketed CU/AL, Installed in Conduit or Tray

See Figure 421-64.
Control #14 Rubber-Insulated Neoprene Jacket, Installed in Conduit or Tray

See Figure 421-65.
Wire
Size

Labor Hours per Linear Foot
1/C

3/C

14

0.010

0.025

12

0.011

0.028

10

0.012

8

Wire
Size

Labor Hours per Linear Foot
1/C

3/C

3/0

0.043

0.093

4/0

0.049

0.110

0.031

250

0.055

0.120

0.014

0.031

300

0.061

0.130

6

0.017

0.042

350

0.067

0.145

4

0.021

0.049

400

0.073

0.160

2

0.025

0.058

500

0.083

0.180

1

0.029

0.064

600

0.095

0.200

1/0

0.033

0.073

750

0.110

0.230

2/0

0.038

0.082

1000

0.140

0.300

Figure 421-64. Installation Labor Hours: Power-Insulated/Jacketed CU/AL, Installed
in Conduit or Tray

Wire Size

Labor Hours
per Lin. Ft.

Wire Size

Labor Hours
per Lin. Ft.

1/C
2/C

0.010

9/C

0.045

0.025

12/C

0.050

3/C

0.028

18/C

0.060

4/C

0.031

24/C

0.070

5/C

0.034

36/C

0.080

7/C

0.037

48/C

0.090

Lighting - 600V (1/C Sizes 10 and 12) 0.02 Labor Hour/Lin. Ft.
(includes connections)
Direct Burial 0.70 x Labor Hours for Insulated/Jacketed Cable
PVC or Neoprene Jacket Over Armor: 1.10 x Labor Hours for
Interlocked Armor
Direct Burial Cable: 0.70 x Labor Hours for Interlocked Armor
Figure 421-65. Installation Labor Hours: Control #14 RubberInsulated Neoprene Jacket, Installed in Conduit or Tray

Cost Estimating Manual
April 1995

Page 421-45

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Power-Insulated Steel/Aluminum Interlocked Armor, Installed in Tray

D
A
T
A

See Figure 421-66.
Control # 14 Rubber-Insulated Steel/Aluminum Interlocked Armor,
Installed in Tray

See Figure 421-67.

Wire Size

Labor Hours
per Lin. Ft.

Wire Size

Labor Hours
per Lin. Ft.

3/C

3/C

14

0.055

3/0

12

0.060

4/0

0.150
0.160

10

0.065

250

0.170

8

0.070

300

0.180

6

0.075

350

0.185

4

0.090

400

0.190

2

0.100

500

0.200

1

0.110

600

0.210

1/0

0.120

750

0.240

2/0

0.130

1000

0.310

Figure 421-66. Installation Labor Hours: Power-Insulated
Steel/Aluminum Interlocked Armor, Installed in Tray

Size

Labor Hours
per Lin. Ft

Size

Labor Hours
per Lin. Ft.

2/C

0.050

12/C

0.150

3/C

0.055

18/C

0.180

4/C

0.060

24/C

0.210

5/C

0.070

36/C

0.240

7/C

0.090

48/C

0.270

9/C

0.130

PVC or Neoprene Jacket over Armor: 1.10 x Labor Hours
for Interlocked Armor
Direct Burial Cable: 0.70 x Labor Hours for Interlocked
Armor
Figure 421-67. Installation Labor Hours: Control # 14 RubberInsulated Steel/Aluminum Interlocked Armor, Installed in Tray

Cost Estimating Manual
Page 421-46

April 1995

Installation Labor Hours for P—Electrical

5 KV (& Over) Cable

Installation labor hours include installing wire and cable in 5 KV (and
over) circuits, including direct burial cable, as follows:
Figure 421-68: Power-Insulated/Jacketed CU/AL, Installed in Conduit
or Tray
Figure 421-69: Power-Insulated Steel/Aluminum Interlocked Armor,
Installed in Tray

Labor Hours per Linear Foot
Non Shielded

Shielded

5 KV

Size

5 KV

15 KV

1/C

3/C

1/C

3/C

1/C

3/C

8

0.023

0.048

0.030

0.048





6

0.026

0.063

0.036

0.063





4

0.030

0.067

0.041

0.067





2

0.034

0.076

0.045

0.076

0.064

0.110

1

0.037

0.080

0.048

0.080

0.066

0.120

1/0

0.042

0.090

0.053

0.090

0.072

0.130

2/0

0.047

0.100

0.058

0.100

0.079

0.140

3/0

0.052

0.115

0.066

0.115

0.085

0.150

4/0

0.058

0.130

0.073

0.130

0.093

0.170

250

0.065

0.140

0.078

0.140

0.100

0.170

300

0.071

0.150

0.085

0.150

0.105

0.180

350

0.077

0.165

0.092

0.165

0.110

0.200

400

0.083

0.180

0.098

0.180

0.120

0.220

500

0.095

0.200

0.110

0.200

0.130

0.250

600

0.105

0.220

0.120

0.220

0.140

0.270

750

0.120

0.250

0.140

0.250

0.170

0.300

1000

0.150

0.320

0.170

0.320

0.200

0.370

Direct Burial Cable: 0.70 x Labor Hours for Insulated/Jacketed
Distribution (1000’ Runs): 0.70 x Labor Hours for Insulated/Jacketed
Figure 421-68. Installation Labor Hours: Power-Insulated/Jacketed CU/AL, Installed in Conduit
or Tray

Cost Estimating Manual
April 1995

Page 421-47

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Labor Hours per Lin. Ft.

D
A
T
A

3/C

Size

Labor Hours per Lin. Ft.
3/C

Size

5 KV

15 KV

5 KV

15 KV

8

0.085

0.120

250

0.180

0.190

6

0.100

0.140

300

0.190

0.200

4

0.110

0.150

350

0.195

0.220

2

0.125

0.160

400

0.200

0.240

1

0.135

0.165

500

0.210

0.260

1/0

0.140

0.170

600

0.230

0.280

2/0

0.150

0.175

750

0.260

0.310

1000

0.330

0.380

3/0

0.160

0.180

4/0

0.170

0.185

PVC or Neoprene Jacket over Armor: 1.10 x Labor Hours for Interlocked Armor
Direct Burial Cable: 0.70 x Labor Hours for Interlocked Armor
Distribution (1000’ Runs): 0.70 x Labor Hours for Interlocked Armor
Figure 421-69. Power-Insulated Steel/Aluminum Interlocked Armor, Installed in Tray

Electronic and
Thermocouple Wire
and Cable

Installation labor hours include installing single-pair wire and multi-pair
cable for electronic signal transmission systems associated with instrumentation and communication circuits, and installing thermocouple wire
associated with remote temperature devices.
Excludes: Connections.
Figure 421-70: Insulated/Shielded/ Jacketed, Installed in Conduit or
Tray
Figure 421-71: Insulated Steel/Aluminum Interlocked Armor,
Installed in Tray

Connections—
600v & 1000v Wire
& Cable

Installation labor hours include connecting 600V and 1000V wire or cable
associated with power, control, and lighting circuits to their terminals, and
then attaching markers and lugs, splicing (if required), installing cable
glands, and installing the ringout of each conductor. See Figure 421-72.

Cost Estimating Manual
Page 421-48

April 1995

Installation Labor Hours for P—Electrical

# Pairs

LH/Lin. Ft.

# Triples

MH/Lin. Ft.

1

0.020

1

0.025

4

0.030

4

0.035

6

0.035

12

0.065

8

0.040

16

0.080

10

0.045

36

0.130

12

0.050

16

0.060

20

0.070

24

0.080

36

0.100

50

0.120

D
A
T
A

Figure 421-70. Installation Labor Hours: Insulated/Shielded/
Jacketed, Installed in Conduit or Tray

# Pairs

LH/Lin. Ft.

# Triples

LH/Lin. Ft.

1



1



4

0.050

4

0.055

6

0.055

12

0.110

8

0.060

16

0.140

10

0.070

36

0.210

12

0.080

16

0.100

20

0.120

24

0.140

36

0.170

50

0.200

PVC or Neoprene Jacket over Armor = 1.10 x Labor
Hours for Interlocked Armor
Figure 421-71. Insulated - Steel/Aluminum Interlocked
Armor, Installed in Tray

Insulated/Jacketed

Labor
Hours
Each

Interlocked Armor

Labor
Hours
Each

1/C Wire Lug

0.35

3/C Power
(Gland and Lugs)

3

M/C Cable Gland

2

M/C Control
(Gland and Lugs)

4

M/C Power Splice

4

3/C Power Splice

6

M/C Control Splice

5

M/C Control Splice

7

Figure 421-72. Installation Labor Hours: Connections—600V & 1000V Wire & Cable

Cost Estimating Manual
April 1995

Page 421-49

421

Installation Labor Hours for Minor Materials (Bulks)

5 KV

D
A
T
A

Labor
Hrs. Each

15 KV

Insulated/Jacketed

Labor
Hrs. Each

Insulated/Jacketed

1/C Non-Shield Lug

1.3

1/C Shield Stress Cone Indoor

5

1/C Shield Stress Cone Indoor

3

1/C Shield Stress Cone Outdoor

7

1/C Shield Stress Cone Outdoor

5

1/C Pothead

4

1/C Pothead

3

3/C Pothead

8

3/C Pothead

6

3/C Cable Gland

4

3/C Cable Gland

3

1/C Shielded Splice

10

1/C Non-Shield Splice

4

3/C Shielded Splice

28

1/C Shield Splice

7

1/C Shielded Stress Cone-Premolded

3/C Non-Shield Splice

10

3/C Shield Splice

18

1/C Shield Stress Cone–Premolded

3

2

Interlocked Armor

Interlocked Armor

3/C Non-Shielded (Gland & Lugs)

6

3/C Shielded (Gland & Stress Cones)

13

3/C Shielded (Gland & Stress Cones)

9

3/C Shielded (Pothead & Stress
Cones)

17

3/C Shielded Splice

20

3/C Shielded (Pothead & Stress
Cones)

12

3/C Shielded Splice

14

Figure 421-73. Installation Labor Hours: Connections—5 KV & Over Wire & Cable

Connections—
5 KV & Over
Wire & Cable

Connections—
Electronic & Thermocouple Wire & Cable

Installation labor hours include connecting all 5 KV (and over) wire and
cable to their terminals, attaching markers and lugs, splicing (if required),
and then installing cable glands, potheads, stress cones, and ringout of
each conductor. Also includes the connections for heat tracing wires. See
Figure 421-73.
Installation labor hours include connecting all electronic signal transmission, thermocouple wire, and cable, to their terminals, attaching
markers and lugs, splicing (if required), installing cable glands, and
ringout of each conductor. See Figure 421-74.

Insulated

Labor Hours
Each

Interlocked Armor

Labor Hours
Each

1/C Wire Terminal

0.35

1/C Wire Terminal

0.35

1/C Shield Terminal

0.35

M/C Cable Gland

3.00

M/C Cable Gland

2.00

Figure 421-74. Connections - Electronic & Thermocouple Wire & Cable

Cost Estimating Manual
Page 421-50

April 1995

Installation Labor Hours for Q—Foundations

Air Interrupter
Switches
Grounding

5 - 15 KV, 600 - 1200 A = 30 Labor Hours Each

Installation labor hours include installing electric grounding system items
such as wire and cable, cadwell and clamp connections, ground rods,
ground wells, copper ground plates, lightning rods, and arrestors.
0.20 Labor Hours per Linear Foot

Testing

Installation labor hours include hipotting high voltage cable and checking,
meggering, hipotting, and running-in electric motors. See Figure 421-75.
Item
H.V. Cable (HiPot)
Electrical Motors

5 KV and 15 KV, 1/C

Labor Hrs Each
5

600 V

8

5 KV

40

15 KV

300

Figure 421-75. Installation Labor Hours: Testing

Installation Labor Hours for Q—Foundations
There are three main items under foundations:
Concrete
Concrete—Order of Magnitude
Storage Tank Pads
Demolition, removal and disposal of concrete is covered under
S—Miscellaneous.
Frost Line

Field Labor

The labor hours shown in this section represent a general case with a frost
line of three feet. Use careful judgment when estimating exceptionally
complex or large foundations.
The installation labor hours for foundations include the following tasks:
Fabricating, placing, stripping, cleaning, and disposing forms
Placing, welding, and tieing straight, bent, or formed rebar
Placing anchor bolts and embedded metal
Pouring, finishing, and curing concrete
Placing expansion joint material and water stop

Cost Estimating Manual
April 1995

Page 421-51

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Size of Rebar

D
A
T
A

Labor Hrs./Lb.

Less than 3⁄4“ diameter (common foundations)

0.006

3⁄ “
4

0.007

diameter and larger (elevated structures)

Figure 421-76. Installation Labor Hours: Field Fabrication—
Bending Rebar

The following factors affect concrete foundation labor hours:
Formwork (difficulty and number of uses)
Size of foundation
Steel requirements
Labor Hours assume shop-bending of rebar. If field forces are to handle
fabrication, see Figure 421-76.
Concrete

See Figure 421-77.

Concrete—Order of
Magnitude

See Figure 421-78.

Concrete—
Demolition, Removal,
Disposal
Storage Tank Pads

Refer to S—Miscellaneous.

See Figure 421-79.

Installation Labor Hours for R—Buildings
No labor hours are listed because building work is generally subcontracted.

Installation Labor Hours for S—Miscellaneous
The following items are covered in this section:
Earthwork
Concrete
Paving
Sewers and Drains
Painting

Cost Estimating Manual
Page 421-52

April 1995

Installation Labor Hours for S—Miscellaneous

Type of Structures and Foundations
Small Equipment Foundations
(Octagonal )

Large Equipment Foundations

2 Cu. Yds. and less

9.0

5 Cu. Yds.

6.5

10 Cu. Yds.

5.5

20 Cu. Yds.

5.5

Octagonal Over 20 Cu. Yds.

4.7

Rectangular or Square Over 20 Cu.
Yds.

6.4

Horizontal Vessels or Heat Exchangers with Piers
Furnace

Labor Hours/
Cu. Yd.

11.5

Box

7.6

Circular with Piers

6.1

Compressor

6.0

Cooling Tower Basin with Forebay

16.0
6.6

Spheres
Basins, Separators, Reservoirs, etc.
Trenches, Boxes, Pits

200 Cu. Yds. and Less

12.0

Over 200 Cu. Yds.

9.5

8" Wall

12.3

12" Wall

9.6
22.7

Storage Tank Ringwalls

4.0

Pumps
Retaining Walls

Footings

6" Wall

19.3

8" Wall

15.4

12" Wall

11.2

5 Cu. Yds. and Less

12.0

Over 5 Cu. Yds.

8.5

Ground Slabs Structural

6.0

Elevated Support Structures

20.1

Elevated Support Structure with Elevated Slab
Mat for Elevated Structure

20.7

50 Cu. Yds. and Less

5.5

Over 50 Cu. Yds.

5.6
3.8

Ground Pipe Sleepers
T-shape

Precast Pipe Stanchions

Erect

19.3
8.0
39.5

Cast-In-Place Pipe Stanchions T-shape
Cast

21.5

Erect

12.0

Cast-in-Place Pipeway Stanchions

Whole Bents

65.5

Building or Sub-Grade Structure
Foundation

6" Wall Footing

23.5

8-9" Wall Footing

19.5

Precast Main Pipeway Stanchions

These labor hours include bracing or vertical supports (or both) for elevated structures as well as
mats for elevated structures and cast-in-place pipeway stanchions.
For excavation, backfill, and disposal, add 1.5 Labor Hours per Cu. Yd.
For electrical conduit concrete envelopes, see P—Electrical.
Figure 421-77. Installation Labor Hours: Concrete Structures & Foundations

Cost Estimating Manual
April 1995

Page 421-53

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Averages: Reinforced Concrete Foundations

D
A
T
A

Labor Hours

Forms (20 sq. ft./cu. yd.)

0.3 /sq.ft.

Rebar - Field Fabrication and Placement
(150 lb./cu. yd.)

0.018 /lb.

Embedded Metal (10 lb./cu. yd.)

0.15 /lb.
3.5 /cu. yd.

Placing, Curing, Finishing

1.5 /cu. yd.

Excavation and Backfill

15.2 /cu. yd.

Total

Rule of thumb for excavation—2 cu.yds. for each cu.yd. of concrete.
For structure concrete, multiply these labor hours by 2.
Figure 421-78. Installation Labor Hours: Concrete—Order of Magnitude

Tank Pad

Labor Hours/Cu. Yd.

Without ringwall

2.0

Inside concrete ringwall

1.25

Labor Hours are based on 4 inches of oiled sand, 6 inches of
aggregate base and, for a pad inside a concrete ringwall, 12 inches
of select engineered fill.
Check soil conditions. Depth of engineered fill could be greater or
less.
Includes labor hours for backfill and compaction.
Excavation and disposal for 6-inch aggregate base and 12-inch
engineered fill is 0.5 labor hours/cu. yd.
Figure 421-79. Installation Labor Hours: Storage Tank Pads

Earthwork

Five items are covered under earthwork:
Clearing and grubbing
Stripping and rough grading
Constructing earthen dikes
Excavation and disposal for ponds, lagoons, pits, and so on
Hand excavation, backfill, and compaction
Clearing and Grubbing

See Figure 421-80. Usually subcontracted, these labor hours allow time
(including the equipment operator’s time) to clear and grub the site. The
hours vary depending on the density of brush or debris to clear and
whether the area is lightly or heavily wooded.
Excludes: Earth grading, excavation, disposal, and site fill.

Cost Estimating Manual
Page 421-54

April 1995

Installation Labor Hours for S—Miscellaneous

Condition of Site

Labor Hours

Light to Medium Brush

20 /Acre

Heavy Brush

25 /Acre

D
A
T
A

35 /Acre

Light to Medium Wooded Area

20/Acre + 22 /Tree

Heavily Wooded Area

Figure 421-80. Earthwork—Clearing & Grubbing

Equipment

Haul Distance
in Feet

Labor Hours/
100 Cu. Yd.

To 300

7

Scraper(s)

1000

2.5

Scraper(s)

5000

5

Dozer(s)

Figure 421-81. Earthwork—Stripping & Rough Grading

Stripping and Rough Grading

Usually subcontracted, the labor hours consists of machine cut and fill
operations to bring the site to design elevation, including machine (roller)
compaction. See Figure 421-81.
Constructing Earthen Dikes

Usually subcontracted, these labor hours allow time to haul dirt material
from an on-site quarry to the selected site, and then place it, compact it,
and spray it with an asphaltic coating.
0.2 Labor Hours/Cu. Yd.
Excavation and Disposal for Ponds, Lagoons, Pits, and so on

These labor hours allow time to machine excavate and haul the excess dirt
to a designated area within the site for stockpiling.
0.15 Labor Hours/Cu. Yd.
Hand Excavation, Backfill, and Compaction

Handwork labor hours assume that there are no boulders and that the soil
mix is not densely rocky. See Figure 421-82.
Concrete

Separators, Settling Basins, Sludge Pits, and Sumps

Labor Hours include form work, placing rebar and embedded metal,
pouring, finishing, and curing the concrete. See Figure 421-83.

Cost Estimating Manual
April 1995

Page 421-55

421

Installation Labor Hours for Minor Materials (Bulks)

Handwork

D
A
T
A

Labor Hours/Cu. Yd.

Excavation

2.00

Backfill

0.50

Compaction with Pneumatic Tamper

0.75

Figure 421-82. Installation Labor Hours: Earthwork—
Hand Excavation, Backfill, & Compaction

Cubic Yards

Labor Hours/Cu. Yd.

200 and Less

12.0

Over 200

9.5

For excavation, backfill, and disposal, add 0.5
labor hours/cu.yd.
Figure 421-83. Installation Labor Hours: Concrete—
Separators, Settling Basins, Sludge Pits, Sumps

Item

Labor Hours/Cu. Yd.

Foundations and Walls

5.0

Grade Slabs

2.5

For excavation to expose any foundations, allow
0.25 labor hour/cu. yd. (machine) or 2.00 labor
hours/cu. yd. (hand).
Figure 421-84. Installation Labor Hours: Concrete—
Removing & Disposing of Concrete (Demolition)

Removing & Disposing of Concrete (Demolition)

See Figure 421-84.
Paving

Concrete

The labor hours for concrete include concrete paving such as fabrication,
placing and stripping header boards and screeds, placing water stops and
vapor barriers, expansion joints, placing and tieing rebar or welded wire
fabric, and placing, finishing, and curing concrete. See Figure 421-85.

Thickness (In.)

Labor Hours/Sq. Ft.

4 to 6

0.10

8

0.12

9 to 12

0.15

Figure 421-85. Installation Labor Hours:
Paving —Concrete

Cost Estimating Manual
Page 421-56

April 1995

Installation Labor Hours for S—Miscellaneous

Asphalt

The labor hours for asphalt include the following:
Labor associated with furnishing, placing, and finishing asphalt
paving for roads, parking lots, tank pads, dikes, ditches, and lagoons
Oiling dikes and ditches and other surfaces requiring similar treatment
2 inches thick = 0.05 labor hours/sq.ft.
Gravel

Labor hours include gravel surfacing on asphalt—screened and rolled,
plus sealer and binder. Allow:
0.0025 labor hours/sq. ft.

Sewers and Drains

The following figures illustrate the items under this category:
Figure 421-86: Cast Iron Pipe (Soil or Water)
Figure 421-87: Vitrified Clay Pipe
Figure 421-88: Corrugated Metal Pipe
Figure 421-89: Cement-Lined Carbon Steel Pipe, Aboveground or
Underground
Figure 421-90: PVC Pipe, Aboveground or Underground
Figure 421-91: Concrete Pipe
Figure 421-92: Asbestos Cement Pipe
Figure 421-93: Reinforced Concrete Pipe
Figure 421-94: Concrete Manholes & Catch Basins
We usually purchase concrete manholes and catch basins precast so that
they require only grouting manhole sections together, or installing catch
basins and seal boxes as a single section.

Cost Estimating Manual
April 1995

Page 421-57

D
A
T
A

421

Installation Labor Hours for Minor Materials (Bulks)

Labor Hours per Linear Foot

D
A
T
A

Pipe
Size

Soil Pipe
Caulked

Bell &
Spigot
Caulked

Mechanical
Joint

Rubber
Ring Joint

2"

0.17

0.17

0.13

0.11

3"

0.27

0.17

0.13

0.11

4"

0.29

0.22

0.17

0.14

6"

0.31

0.28

0.21

0.18

8"

0.34

0.34

0.25

0.21

10"

0.41

0.38

0.27

0.24

12"

0.49

0.41

0.31

0.27

14"

0.59

0.48

0.35

0.33

15"

0.70

0.57

0.50

0.40

Notes

- For each two-end fitting, add labor
hours for 10 feet of pipe; for each
three-end fitting, add labor hours for
20 feet of pipe.
- Labor hours include time to make the
proper joints for the system being
installed.
- Labor hours include time for hydrostatic or air testing of lines.
- Labor hours do not include ditching,
excavation, and backfilling.
- For excavation, backfill, and disposal,
add the following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-86. Installation Labor Hours: Sewers & Drains—Cast Iron Pipe (Soil or Water)

Labor Hours per Linear Ft
Pipe
Size

Mortar
Joint

Rubber Ring
Joint

4"

0.22

0.11

6"

0.28

0.15

8"

0.42

0.22

10"

0.52

0.26

12"

0.69

0.34

15"

0.77

0.38

18"

0.83

0.43

21"

1.10

0.54

24"

1.50

0.76

Notes

- For each two-end fitting, add labor hours for 10 feet of pipe; for each
three-end fitting, add labor hours for 20 feet of pipe.
- Labor hours include time to make the proper joints for the system
being installed.
- Labor hours include time for hydrostatic or air testing of lines.
- Labor hours do not include ditching, excavation, and backfilling.
- For excavation, backfill, and disposal, add the following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-87. Installation Labor Hours: Sewers & Drains—Vitrified Clay Pipe

Pipe
Size

Labor Hrs
per Linear Ft.

To 12"

0.50

15" to 30"

0.75

36" to 48"

1.00

54" to 72"

1.50

Over 72"

2.50

Notes

-

Labor hours include time to make the proper joints for the system being installed.
Labor hours include time for hydrostatic or air testing of lines.
Labor hours do not include ditching, excavation, and backfilling.
For excavation, backfill, and disposal, add the following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-88. Installation Labor Hours: Sewers & Drains—Corrugated Metal Pipe

Cost Estimating Manual
Page 421-58

April 1995

Installation Labor Hours for S—Miscellaneous

Labor Hours per Linear Ft
Pipe Size

Rubber Ring
Joint

Welded
Ends

4"

0.35

0.46

6"

0.49

0.65

8"

0.59

0.78

10"

0.86

1.14

12"

1.03

1.37

14"

1.18

1.57

16"

1.34

1.78

18"

1.47

1.96

20"

1.63

2.17

24"

1.83

2.44

Notes

- Use labor hours shown for both aboveground and underground
installation. All labor hours include time to make proper joints for the
system being installed, including cement-lining of field joints.
- Labor hours include time for hydrostatic or air testing of lines.
- Labor hours do not include ditching, excavation, and backfilling.
- For excavation, backfill, and disposal, add the following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-89. Installation Labor Hours: Sewers & Drains—Cement-Lined Carbon Steel Pipe, Aboveground or Undground

PVC Pipe
Size

Labor Hours
per Linear Ft

2" or less

0.17

3"

0.28

4"

0.31

6

0.54

8"

0.66

Notes

- Use labor hours shown for both aboveground and underground
installation. All labor hours include time to make proper joints for the
system being installed.
- Labor hours include time for hydrostatic or air testing of lines.
- Labor hours do not include ditching, excavation, and backfilling.
- For excavation, backfill, and disposal, add the following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-90. Installation Labor Hours: Sewers & Drains—PVC Pipe, Aboveground or Underground

Labor Hrs. per Linear Foot
Plain/Bell
End

T&G

Pipe Size

Notes

8"

0.32

0.31

10"

0.36

0.35

12"

0.38

0.36

15"

0.43

0.41

18"

0.47

0.47

21"

0.50

0.49

24"

0.54

0.51

30"

0.65

0.53

36"

0.80

0.55

- For each two-end fitting, add labor hours for five feet of pipe; for each
three-end fitting, add labor hours for eight feet of pipe.
- Labor hours include time to make the proper joints for the system
being installed.
- Labor hours include time for hydrostatic or air testing of lines.
- Labor hours do not include ditching, excavation, and backfilling.
- For excavation, backfill, and disposal, add the following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-91. Installation Labor Hours: Sewers & Drains—Concrete Pipe

Cost Estimating Manual
April 1995

Page 421-59

D
A
T
A

421

D
A
T
A

Installation Labor Hours for Minor Materials (Bulks)

Pipe Size

Labor Hrs. per
Linear Ft.

3"

0.21

4"

0.22

6"

0.23

8"

0.30

10"

0.34

12"

0.39

14"

0.43

16"

0.47

18"

0.56

Notes

- For each two-end fitting, add labor hours for 13 feet of pipe; for each
three-end fitting, add labor hours for 26 feet of pipe.
- Labor hours include time to make the proper joints for the system being installed.
- Labor hours include time for hydrostatic or air testing of lines.
- Labor hours do not include ditching, excavation, and backfilling.
- For excavation, backfill, and disposal, add the following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-92. Installation Labor Hours: Sewers & Drains—Asbestos Cement Pipe

Labor Hours per Linear Foot
Pipe Size

Plain End

Bell End

T&G

18"

0.47

0.71

0.47

24"

0.51

0.78

0.51

30"

0.53

0.87

0.78

33"

0.54

0.95

0.86

36"

0.55

1.07

0.92

39"

0.57

1.11

0.99

42"

0.58

1.18

1.05

45"

0.59

1.26

1.12

48"

0.61

1.34

1.17

54"

0.66

1.42

1.24

60"

0.74

1.57

1.52

Notes

- For each two-end fitting, add labor hours for 30 feet of
pipe; for each three-end fitting, add labor hours for 45
feet of pipe
- Labor hours include time to make the proper joints
for the system being installed.
- Labor hours include time for hydrostatic or air testing
of lines.
- Labor hours do not include ditching, excavation, and
backfilling.
- For excavation, backfill, and disposal, add the
following:
- Onplot: 1.5 labor hours/cubic yard
- Offplot: 1.0 labor hours/cubic yard

Figure 421-93. Installation Labor Hours: Sewers & Drains—Reinforced Concrete Pipe

Labor Hrs. per
Linear Ft. of Depth

Description
Precast Concrete Manholes with C.I. Cover
Precast Catch Basins, C.I. Cover & Frame
Precast Seal Boxes, 24" C.I. Manhole Cover & Frame
Cast-in-Place Seal Boxes with 24" C.I. Manhole Cover & Frame
Cast-in-Place Catch Basins with C.I. Grating & Frame

3’ - 4’ ID x 8" Wall

3.5

24" - 30" square ID

2.0

36" square ID

3.0

36" ID

2.0

48" ID

3.0

36" square ID x 6" wall

6.5

48" square ID x 6" wall

7.0

24"-36" square x 6" wall

6.5

48" square x 6" wall

7.0

For excavation, backfill, and disposal, add 1.5 labor hours/cubic yard.
Figure 421-94. Installation Labor Hours: Sewers & Drains—Concrete Manholes & Catch Basins

Cost Estimating Manual
Page 421-60

April 1995

Installation Labor Hours for S—Miscellaneous

Painting

Painting is usually subcontracted.
Figure 421-95: Equipment and Structural Steel
Figure 421-96: Piping

Description

Labor Hrs./Sq. Ft.
1

Field Fabricated Tanks, Spheres, & Vessels

Epoxy Coating of Tanks (Shop- or Field-Fabricated)

Shop-Fabricated Vessels & Tanks2 or Structural Steel

D
A
T
A

Commercial Sandblasting

0.025

One Coat of Paint (Sprayed)

0.007

Each Additional Coat (Sprayed)

0.007

Commercial Sandblasting1

0.025

1 Mil Epoxy Coating

0.015

Each Additional Epoxy Coating

0.015

Touch-Up Prime Coat

0.015

One Coat of Paint (Brushed)

0.015

Each Additional Coat (Brushed)

0.015

Specific Notes:
1
Not White Metal
2
Fabricator prepares surface and applies prime coat.
General Notes:
If scaffolding is required, multiply the total labor hours estimated by 1.20.
If spray painting in lieu of brush painting is applied, multiply the brush painting labor hours by 0.7.
If power tool cleaning in lieu of commercial sandblasting is specified, allow 0.02 labor hour/sq. ft.
For touching up prime coat on field fabricated tanks, etc,.allow 0.008 labor hour/sq. ft. of surface area.
If sandblasting (white metal) is required, multiply the labor hours/sq. ft. for commercial sandblasting by 2.5.
Figure 421-95. Installation Labor Hours: Painting—Equipment and Structural Steel

Description

Labor Hrs./
Sq. Ft.

Commercial Sandblasting

0.030

One Coat of Paint (Brushed)

0.025

Each Additional Coat
(Brushed)

0.025

Notes

- If power tool cleaning is specified instead of commercial sandblasting, allow 0.02 labor hour/sq. ft.
- Touch-up of prime coat, allow 0.01 labor hour/sq. ft. of surface area.
- If spray painting is applied, multiply the brush painting labor
hours by 0.70.

Figure 421-96. Installation Labor Hours: Painting—Piping

Cost Estimating Manual
April 1995

Page 421-61

422
Productivity
roductivity is a relative measure of labor efficiency and is affected by local
conditions under which the work is performed and by the overall economy.
The overall economy affects the attitudes of construction workers directly, and thus
affects their productivity. In good economic times, when construction jobs are
plentiful and labor is scarce, productivity tends to worsen, resulting in increased field
costs. In normal times, productivity and costs are average. During depressions,
recessions, or slumps in the economy, labor becomes plentiful and more productive;
consequently, field costs decline.
Local conditions affecting productivity relate more directly to the project. They
include variables such as the character of the job site, project size, quality (skill level)
of the available labor force, work site congestion, and the use of extended schedules or
shift work. By addressing these conditions and adjusting the number of labor hours
with the appropriate productivity factor, you can adjust the estimated (planned) labor
hours for the project.
This section also discusses the implications of an overtime schedule on a construction
project. An overtime schedule has impacts related to productivity, cost, safety, location, fatigue, abseenteeism, weather, delays, motivation, and the quality of management.
When contractors recommend an overtime schedule program, Chevron representatives
may agree to it without fully realizing the possible effects on the project.

P

.

Definitions
In estimating, productivity is defined as work hours per unit of work. In
project execution and control, productivity is defined as work hours
expended per physical quantity installed.
Productivity (Actual) =

Work Hours Expended
Physical Quantities Installed

= Unit Labor Rate

Contractors use the productivities they experience on projects to create
standard unit labor rates for cost estimating. Standards define the work
hours required to perform various construction tasks under normal
conditions at a particular time (year) and location. The U.S. Gulf Coast
(USGC) and the U.S. West Coast (USWC) are common reference
locations.
Cost Estimating Manual
DRAFT: 3/95

Page 422-1

422

Productivity

In estimating, the productivity index is defined as the ratio of expected
productivity to standard productivity. In project execution and control, it
is the ratio of actual productivity to planned productivity. From this
definition, performance that is better than the standard (or better than
planned, for project execution) results in a productivity index of less than
1 (“good” productivity).
Productivity Factor (Estimating) = Expected Productivity
Standard Productivity

In estimating, we use a productivity index (also called productivity factor)
to convert an estimate based on standard work hours to a project-specific
location, job site, and set of conditions. This can be an overall factor or it
can vary by craft.
(Standard Work Hours) x (Productivity Factor) = Expected Work Hours



Note that some contractors, as well as the publications of the Construction Industry
Institute, use the reciprocal of the productivity index or productivity factor shown above.
Under that alternate definition, a "good" productivity factor is one with a value greater
than 1.

Estimating Labor Hours Using a Productivity Factor
To get the best possible productivity factor for estimating labor hours for
your project, consult with experts who have hands-on experience and use
their collective knowledge.
Refer to Figure 422-1 for the qualitative impact on productivity of various
economic and job-specific conditions.
Figure 422-2 shows productivity values for average working conditions,
relative to a named reference location. That is, the factor represents the
following ratio:
Factor = Work Hours at Specified Location
Work Hours at Reference Location

Thus, labor hours at one location can be converted to labor hours at
another location by multiplying or dividing by the appropriate relative
productivity factor.
The data in Figure 422-2 are for both domestic and foreign locations. The
values were obtained from contractors and other sources, and represent
work experience at various time periods.

Cost Estimating Manual
Page 422-2

DRAFT: 3/95

Estimating Labor Hours Using a Productivity Factor

Productivity
Element

Productivity
Low

Average

High

General Economy

Prosperous

Normal

Hard Times

Local Business Trend

Stimulated

Normal

Depressed

Construction Volume

High

Normal

Low

Unemployment

Low

Normal

High

Amount Of Work

Extensive

Average

Limited

Site Complexity

Dense

Average

Spare

Manual Operations

Extensive

Average

Limited

Mechanized Operations Limited

Average

Extensive

Field Manpower Pool

Poor

Average

Good

Training

Poor

Average

Good

Wages

Low

Average

High

Supply

Scarce

Normal

Surplus

Field Manpower
Supervision

Poor

Average

Good

Training

Poor

Average

Good

Wages

Low

Average

High

Supply

Scarce

Normal

Surplus

Job Conditions

Poor

Average

Good

Management

Poor

Average

Good

Materials & Site

Unfavorable

Average

Favorable

Required Workmanship First Rate

Regular

Passable

Length of Operations

Short

Average

Long

Weather

Bad

Fair

Good,

Precipitation

Much

Some

Occasional

Cold

Bitter

Moderate

Occasional

Heat

Oppressive

Moderate

Occasional

Construction
Equipment

Poor

Normal

Good

Applicability

Poor

Normal

Good

Condition

Poor

Fair

Good

Maintenance

Slow

Average

Quick

Delays

Numerous

Some

Minimum

Job Flexibility

Poor

Average

Good

Equipment Delivery

Slow

Normal

Prompt

Expediting

Poor

Average

Good

Figure 422-1. Impact on Productivity of Various Economic and Local Conditions

Cost Estimating Manual
DRAFT: 3/95

Page 422-3

422

Productivity

Location

Productivity
Factor vs. USGC

U.S.

Location

Productivity
Factor vs. USGC

Asia

West Coast

0.90

Gulf Coast

1.00

Canada
1.10

Western Canada

Indonesia

2.00

Japan

1.05

Korea

1.40

Malaysia

1.70

Singapore

1.40

Argentina

2.00

Taiwan

1.40

Venezuela

2.00

Thailand

1.70

Latin America

Europe

Middle East & South Asia
1.10

United Kingdom
Pacific

India

2.00

Saudi Arabia

2.00

1.30

Australia

The values shown are averages of values given by various sources. Individual sources can vary
from these averages by as much as 15-20%.
Figure 422-2. Relative Productivity Factors for Various Locations versus the U.S. Gulf Coast

Considering an Overtime Schedule
While larger crew sizes or additional shifts might be preferable to
overtime, those alternatives may not fit the project. Reasons for choosing
an overtime schedule include the following:
To attract a consistent labor force, especially if there is a shortage of
craft labor in the area. Sometimes pay incentives are included to reach
certain construction milestones.
To maintain or make up lost time to meet the construction schedule.
To accelerate the completion date, possibly delayed for reasons such
as late delivery of material and equipment.

Productivity During Overtime Schedule
The information about productivity is drawn from three published reports:
Scheduled Overtime Effect on Construction Projects. Report C-2.
Reprinted 1986. Construction Industry Cost Effectiveness Task Force.
The Business Roundtable, 200 Park Avenue, New York, NY 10166.
The Effects of Scheduled Overtime and Shift Schedule on Construction
Craft Productivity. Report SD-43. December 1988. Construction
Industry Institute.

Cost Estimating Manual
Page 422-4

DRAFT: 3/95

Productivity During Overtime Schedule

Overtime, Construction Cost, and Productivity. Report NJG-8.
American Subcontractors Association, the Associated General
Contractors of America, and the Associated Specialty Contractors.
Report C-2

Report C-2 contains graphs and curves that support the following
conclusions on overtime productivity. (The report is essentially a reprint
of a 1973 article published in an AACE bulletin.)
Conclusions

Placing field construction operations of a project on a scheduled overtime
basis has the following effects:
Disrupts the economy of the affected area
Magnifies any apparent labor shortage
Reduces labor productivity
Creates excessive inflation of construction labor costs without material
benefit to the completion schedule
Continuing a work schedule of 60 or more hours per week for longer than
about two months has these results:
A cumulative effect of decreased productivity
A delay in the completion date beyond that with the same crew size
working 40 hours per week
Continuing a 50-hour week results in the following:
Reduced productivity for the entire period—not just for the 10 hours
of overtime
After 6–8 weeks, labor cost is inflated by 50 percent and productive
returns are no greater than for a 40-hour week
After 8 weeks, lower actual productive return than for a regular
40-hour week
It is possible to minimize the inflationary effects of overtime (necessary
despite productivity losses) through careful management by taking such
actions such as these:
Adding a shift
Shutting down work periodically for a Sunday or weekend

Cost Estimating Manual
DRAFT: 3/95

Page 422-5

422

Productivity

Report SD-43

Report SD-43 includes a method of analysis called the Moving Average.
This method smooths out peaks and valleys of fluctuation in everyday
productivity.
Conclusions

The available studies are inconsistent for predicting productivity loss
during overtime schedules for construction projects. Even for the same
project, productivity trends of individual crews working overtime are
inconsistent.
Productivity does not necessarily decrease with an overtime schedule.
Absenteeism and accidents do not necessarily increase under overtime
conditions.
Report NJG-8

The authors refer to the point of no return to describe the productivity loss
due to overtime at the point when the overtime schedule no longer
produces more than a standard 40-hour week produces.
Conclusions

Evidence shows work output is greater than normal for the first few
weeks.
After about 7 weeks, productivity is equivalent to that of a 40-hour
week.
After about 15 weeks, productivity reaches the point of no return—the
total amount of work accomplished through overtime is equal to or
less than that of a standard 40-hour work week.
These time generalizations are considered conservative.
Summary

The three reports show conflicting evidence and conclusions about the
effects of overtime on productivity. However, working an overtime
schedule does affect workers’ output and productivity. Scheduled overtime
inflates construction costs and lowers productivity, all too frequently
without accomplishing its objectives. Be alert to the fact that contractors
may have hidden agendas when suggesting overtime.

Cost Estimating Manual
Page 422-6

DRAFT: 3/95

Costs for Overtime Schedule

Costs for Overtime Schedule
Cost is a major factor if you choose an overtime schedule for your project.
The total price paid for overtime may outweigh the overall benefits.
In addition to the decline in productivity, actual hourly costs may increase.
For example, craft working agreements may stipulate time-and-a- half pay
for overtime.
50 Hours of
Scheduled Work

For 50 hours of scheduled work, the worker is paid for 55 hours. The
additional 5 hours of pay is a premium only and represents a 10 percent
inflation of construction wages per hour of scheduled work time.

60 Hours of
Scheduled Work

For 60 hours of scheduled work, the worker is paid for 70 hours. The
additional 10 hours is a premium only and represents a 16.7 percent
inflation of construction wages per hour of scheduled work time.

Other Rates

For other overtime rates (e.g., double time rather than time-and-a-half),
make the appropriate correction.

Other Factors in Overtime Schedule
Evidence is inconclusive about the relationship between overtime and
location, safety, fatigue, absenteeism, and weather and about lasting effect
on productivity.
In some areas (high latitudes), daylight hours during winter months can
restrict working hours. While these factors can and do affect projects, they
are site-specific and usually short-lived. Delays can affect productivity and
are more likely to occur if the schedule is accelerated, or if there is a
shortage in craft labor.
Other variables, such as motivation and the quality of management, have a
far greater effect, but are difficult to measure.

Cost Esti mating Manual
DRAFT: 3/95

Page 422-7

422

Productivity

Overtime on
Construction Projects

Scheduled overtime programs on construction projects can have other
undesirable effects.
When an overtime schedule is initiated, other projects in the same
labor area are frequently forced to similar schedules. While the
competitive advantage is lost, the added cost and lower productivity
continue.
Rumors of an overtime schedule program can create an overtime
atmosphere, leading to lower productivity.
Overtime schedules attract “travelers” or “boomers.” These are craft
laborers not in demand in their own areas because of limited
qualifications.
Extended overtime may have negative effects on morale and
motivation.

Cost Estimating Manual
Page 422-8

DRAFT: 3/95

423
Rework
ework hours spent correcting building or construction problems are usually the
result of poor design, late design changes, construction errors, or client requests
(moans). Class 4 is usually the earliest that you will include rework in an estimate.
Client requests usually occur after a client sees the physical structure and realizes that
it is unacceptable for the intended purpose.

R

Causes of Rework
When building complex piping, structural steel, or installing equipment,
unforeseen obstacles or interferences can cause problems with constructability. Such difficulties might result from the undesirable location or
orientation of manually operated valves, control valve manifolds, or
process equipment.
Other causes of rework include:
Lack of quality Chevron specifications
Poor quality of contractor designs
Contractor’s interpretation of (or reaction to) Chevron Safety in
Designs (SID)1

Managing Rework
Proper project management, well-prepared specifications, and early
involvement with contractors and clients can significantly reduce rework
hours.
The contractor’s field manpower reports usually segregate rework hours
from direct labor hours to avoid distorting productivity tracking and
earned valve progress measurement systems.

1

This can lead to poor designs in stairs, ladders, cages, service platforms and hand railings.
Cost Estimating Manual

DRAFT: 3/95

Page 423-1

423

Rework

Total Rework as a Percentage of Direct Labor Hours
Total rework hours as a percent of direct labor hours range from 1.5
percent to 35 percent with an average of 13.5 percent. Figure 423-1 shows
rework hours as a percent of direct labor hours for major equipment and
for each bulk category. These ranges and averages are based on Chevron
completed projects.

Description

Percentage
Low

High

Average

C-K, Equipment

1.1

13.8

8.3

J, Instruments

0.1

14.9

7.0

L, Piping

2.7

21.0

9.3

M, Steel

15.2

43.0

26.6

N, Insulation

1.0

5.3

3.5

P, Electrical

0.6

11.9

5.9

Q, Concrete

0.4

3.1

1.5

R, Buildings

0.1

1.8

0.9

S, Misc.

0.1

11.0

5.1

Figure 423-1. Rework Hours as a Percent of Direct Labor Hours
for Major Equipment & Bulk Materials for Chevron Completed
Projects

Cost Estimating Manual
Page 423-2

DRAFT: 3/95

424
Labor Rates

T

his section covers merit shop (non-union) and union labor wage rates for selected
Chevron facilities.

Merit Shop
Merit shop (non-union) labor rates are based on averages obtained from
contractors for regions that have Chevron facilities. The base wage rates in
Figure 424-1 do not include fringe benefits or payroll burdens. Payroll
burdens can be estimated at 31% of the base wage rate.
California
(1996)

Gulf Coast
(1998)

Weighted Crew Avg.
Skilled Worker

13.00
19.27

Working Foreman

16.25

15.00
16.00

Apprentice/Assistants

Figure 424-1.

Utah
(1996)

9.75

Non-Union Labor Rates $/Hour, 1998

Base Labor Rate
Base labor rates are direct hourly rates including base wage only for union
craftsmen of the journeyman class. Figure 424-2 illustrates the base labor
rates for Chevron facilities in the U.S.
From November 1997 to November 1998, changes in individual construction base labor rates plus fringe benefits for the selected locations ranged
from minus 5 percent to plus 15 percent. The EDLI increased 3.2 percent
for the same period.

Composite Labor Rate
Composite labor rates are hourly direct rates for base wage pay including
vacation, fringe benefits, payroll taxes, and insurance. Figure 424-3
illustrates composite labor rates for Chevron facilities in the U.S.

Cost Estimating Manual
December 1998

Page 424-1

424

Labor Rates

Boiler
Maker

Location

Carpenter
Milwright

Electrician

IronWorker

Laborer

Operating
Engineer

PIPFitter
Welder

Teamster

Bakersfield, CA.

$30.36

$24.75

$28.64

$25.69

$19.62

$27.51

$27.56

$22.42

El Segundo, CA.

$30.36

$25.32

$28.64

$25.69

$19.62

$27.51

$27.91

$22.42

Richmond, CA.

$30.36

$28.12

$28.64

$25.69

$23.46

$29.88

$32.32

$22.31

Santa Barbara, CA.

$30.36

$24.99

$28.64

$25.69

$22.46

$29.88

$27.91

$22.42

Honolulu, HI.

$26.25

$26.40

$31.79

$23.75

$20.70

$29.88

$28.30

$22.41

Oak Point, LA.

$19.85

$16.00

$18.94

$15.85

$11.62

$18.00

$17.45

$15.27

ST. James, LA.

$19.85

$16.00

$18.15

$15.85

$11.62

$18.00

$17.45

$15.27

Pascagoula, MS.

$19.10

$16.85

$17.30

$17.00

$11.13

$16.75

$16.86

$15.32

Marietta, OH.

$22.60

$20.30

$26.93

$21.63

$20.42

$22.09

$26.38

$18.44

Houston, TX.

$18.98

$19.08

$18.80

$18.45

$12.82

$19.05

$20.11

$13.69

El Paso, TX.

$16.98

$15.65

$16.85

$15.04

$9.00

$15.20

$14.95

$15.00

Port Arthur, TX.

$19.78

$17.82

$20.40

$17.85

$12.43

$15.85

$16.35

$14.29

Salt Lake City, UT.

$22.59

$17.00

$21.00

$19.67

$12.20

$25.32

$23.92

$19.41

These rates do not include:






Fringe benefits
Payroll taxes
Insurance rates
Rates for apprentices and foremen

Figure 424-2.

1998 Union Base Wage Rates $/Hour

Location

Base Wage
w/Vac $/HR

Fringes w/o
Vac $/HR

FICA $/HR

Workers
Comp $/HR

FUI $/HR

SUI $/HR

Grand Total
$/HR

Bakersfield, CA.

$26.56

$8.00

$2.03

$3.94

$1.65

$0.80

$42.98

El Segundo, CA.

$26.75

$8.40

$2.05

$3.96

$1.66

$0.80

$43.62

Richmond, CA.

$29.34

$9.65

$2.24

$4.29

$1.82

$0.88

$48.22

Santa Barbara, CA.

$27.15

$8.13

$2.08

$4.03

$1.68

$0.81

$43.88

Honolulu, HI.

$26.98

$12.64

$2.06

$4.14

$1.67

$0.49

$47.98

Oak Point, LA.

$16.99

$3.36

$1.30

$2.83

$1.05

$0.27

$25.80

ST. James, LA.

$16.88

$3.44

$1.29

$2.80

$1.05

$0.27

$25.73

Pascagoula, MS.

$16.46

$4.09

$1.26

$1.81

$1.02

$0.23

$24.87

Marietta, OH.

$24.14

$6.89

$1.85

$6.75

$1.50

$0.39

$41.52

Houston, TX.

$18.53

$5.13

$1.42

$3.16

$1.15

$0.24

$29.63

El Paso, TX.

$14.88

$3.22

$1.14

$2.57

$0.92

$0.19

$22.92

Port Arthur, TX.

$16.91

$4.05

$1.29

$2.95

$1.05

$0.22

$26.47

Salt Lake City, UT.

$21.25

$5.93

$1.63

$1.79

$1.32

$0.17

$32.09

Allowances for Worker's Compensation (Worker's Comp) and State Unemployment Insurance (SUI) are estimated because of
variations depending on craft contraction and location.
Allowances for Social Security (FICA) are calculated using the current tax rate applied to the base rate plus vacation pay for each
labor rate (excluding fringe benefits).
The Federal Unemployment Insurance (FUI) allowance uses the current rate for a full year.

Figure 424-3.

1998 Composite Union Base Wage Rates $/Hour

Cost Estimating Manual
Page 424-2

December 1998

Composite Labor Rate

1

Figure 424-4.

Union Craft Labor Rate Locations: November 1998

Construction Crafts in
the Oil Industry

Special Labor Rates

1

The map in Figure 424-4 shows geographical locations and applicable
rates included in this section. These rates were calculated based on typical
distribution for major construction crafts in the oil industry, as shown in
Figure 424-5 on the following page. (Excluding minor crafts1 introduces a
negligible error.)
For an unusual job having an inordinate amount of one craft or for
locations not shown, you may wish to calculate a special labor rate.
For union labor rates not shown in this section, consult CRTC’s Facilities
Engineering Unit of Projects and Engineering Technology Group.

Such as painters, insulators, pile drivers, and others.
Cost Estimating Manual

December 1998

Page 424-3

424

Labor Rates
Craft

Percent Distribution

Boilermaker

8

Carpenter/Millwright

8

Electrician

15

Ironworker

6

Laborer

10

Operating Engineer
Pipefitter/Welder

42

Teamster

5
Total Percent

Figure 424-5.

6

100

Typical Distribution for Major
Construction Crafts in the Oil Industry

Cost Estimating Manual
Page 424-4

December 1998

500
501

Indirect Costs and Special
Charges—Indirect Field Costs

Contractor Indirect Field Costs

Cost Estimating Manual
April 1995

Page -1

501
Contractor Indirect Field Costs

C

ontractor indirect field costs are necessary to carry out direct work and are
indirectly related to construction.

Defining Contractor Indirect Field Costs
Contractor indirect field costs do not become a permanent, identifiable
part of a completed facility. They are categorized as Group IB and include
the following:
Field Office Expense
Small Tools and Consumables
Temporary Lines and Structures
Cleanup
Material Handling and Warehouse
Welder Qualification
Overtime Premium
Construction Equipment Rental and Expenses
Fire Watch and Guard Services
Lost Time
Travel
Subsistence Allowance
Contractor Fees
Contractor Payroll Taxes and Wage Benefits (applies to direct and
indirect manual labor and indirect non-manual labor)
For additional definitions and instructions, see Appendix C, “Code of
Accounts (EG-2757).”

Cost Estimating Manual
April 1995

Page 501-1

501

D
A
T
A

Data for Contractor Indirect Field Costs

Data for Contractor Indirect Field Costs

D

ata in this section comes from Chevron projects (non-union) built from the early
1980’s through mid-1993, and ranging from .9 M to 4.9 M direct labor hours.

Labor
As a Percentage of
Direct Labor Cost
For Conceptual
Estimates

Estimate as 140 percent to 160 percent.
Estimate as 150 percent of direct labor cost or a factor of 2.5 times the
basic wage rate for an all-in wage rate.
The percentage or factor includes all the categories listed at the beginning
of this section. Do not include payroll taxes or fringe benefits when
calculating the total direct labor cost or wage rate.

Variances
Many factors can influence contractor indirect field costs. Working
conditions, site location, and the size and type of project are just a few.
For small projects, 150 percent might not include enough for equipment
rentals, or it could be too high. When estimating contractor indirect field
costs, consider all conditions and adjust the percentage accordingly.

Cost Estimating Manual
Page 501-2

April 1995

510

Indirect Costs and Special
Charges—Technical Services

511

Contractor Engineering and Home Office Costs

512

Chevron Costs

Cost Estimating Manual

511
Contractor Engineering and Home Office Costs
ontractor engineering and home office costs include design, procurement, and
project management costs incurred in the contractor’s offices, and not at the
construction site. The Chevron engineer must often estimate these costs before a
contractor is engaged for the project. Once hired, contractors include these costs in
their estimates.

C

Class 1 and 2 Estimates
There are two main steps involved when preparing Class 1 or 2 estimates
of a contractor’s engineering and home office costs.
1

ESTIMATE AND ADJUST BOTH DIRECT AND CONTRACTOR FIELD
INDIRECT COSTS

Estimate both the direct costs and the contractor’s indirect field costs;
i.e., the contractor’s total cost excluding home office costs. The
combined total is often called the total field cost.
Adjust these costs to EDPI = 1150 before using the equation or the
figure.
Because special charges (see Section 521) were removed from the total
field costs before the figure and the equation were prepared, you should
exclude special charges when using this data.
2

APPLY THE EQUATION TO DETERMINE HOME OFFICE COSTS

For Class 1 and 2 estimates, you can use the following equation, which
comes from Figure 511-1.
HO = 45.5 x (TFC, $MM)-0.135
Where:
HO = Home Office Costs as a Percentage of Total Field Cost
TFC = Total Field Cost at EDPI = 1150

Cost Estimating Manual
April 1995

Page 511-1

511

Contractor Engineering and Home Office Costs

Class 3 - 5 Estimates
Contractors prepare Class 3 or later estimates in considerable detail.
When reviewing such an estimate, you can expect to see labor hours
estimated for each of these disciplines:
Project manager
Project engineer
Process engineer
Discipline engineers and designers (such as mechanical, electrical,
civil, or instrument)
Project controls personnel (cost and schedule engineers)
Procurement personnel
Others listed in the contract as directly reimbursable
Contractors price these hours at discipline or average rates.1 These rates
include markups for office overhead costs. The estimate may also include
costs for reimbursable services beyond those covered by the hourly rate,
such as computer time and travel expenses.
FIGURE 511 1
CONTRACTOR ENGRG & HOME OFFICE COSTS
VS. CONTRACTOR FIELD COSTS

PERCENT ENGRG/H.O.
PERCENTCOST
ENGRG/H.O. COST

50

30

20

10
10

20

50

100

200

500

1,000

2,000

3,000

CONTRACTOR FIELD COST, $MM, AT EDPI = 1150

Figure 511-1. Contractor Engineering and Home Office Costs vs. Contractor’s Field Costs

1

Contractors responding to a 1994 survey reported that their home office costs averaged $52 per hour, with a range of $44 to
$57 per hour, including fee/profit but excluding reimbursable expenses such as computer services and travel. This data
corresponds to an EDEI of about 1440. You may wish to use these figures when reviewing your contractor’s estimate.
Cost Estimating Manual

Page 511-2

April 1995

512
Chevron Costs
hevron incurs three types of costs on any project, whether or not a major
contractor is involved. These are direct costs, indirect costs, and special charges.
Direct costs include material and labor for direct work performed in new or existing
facilities, including material that Chevron purchases directly and labor that involves
either Chevron personnel (plant maintenance personnel performing capital
construction work) or local contractors working under Chevron (perhaps including
contractors who are also performing plant maintenance work).1
Indirect costs include Chevron-provided design and project management and may
include contractor-supplemented design and project management services.
Special charges include various services that Chevron provides or purchases,
described in Section 521.

C

Design and Project Management Costs
Design and Project
Management
(Class 1 and 2
Estimates)

Apply the percentage shown below for Class 1 and 2 estimates of Chevron
indirect costs for design and project management, when a major
design-and-procurement contractor is not involved. 2
Design & Project Management Cost as Percent of Total Field Cost
Average = 35%
Range = 5% to 83%.

Project Management
(Class 1 and 2
Estimates)

1
2

Recent data about Chevron indirect project management costs differs
significantly from earlier project experience when a major contractor
performed the design and procurement activities.

Contractors might furnish some bulk materials related to their work.
The data is based on 49 CRTC-designed or -managed projects from the mid-1980’s, but it may also apply to the small
projects designed by operating company engineering organizations. If you have data from your experiences at your
location, use it rather than this figure.
Cost Estimating Manual

April 1995

Page 512-1

512

Chevron Costs

COMPANY PROJECT MANAGEMENT COSTS
PROJECT
MID-POINTS: 1971-1987
Project
Mid-Points:
1971-1987

Chevron’s Costs as Percent
CO. COSTS AS PCT OF CONTRACTOR COSTS
of Contractor’s
Costs

30

20

10

5

3

2
20

50

100

200

500

1,000

2,000

5,000

CONTRACTOR COST, $MM AT EDPI = 1150

COSTS AS PCT OF CONTRACTOR COSTS
Chevron’s Costs asCO.Percent
of Contractor’s Costs

Figure 512-1. Chevron Project Management Costs 1971-1987
PROJECT MID-POINTS: 1988-1993
Project
Mid-Points: 1988-1993

30

20

A

10

D
E

G

F

5

H

C

3

B
2
20

50

100

200

500

1,000

2,000

5,000

CONTRACTOR COST, $MM AT EDPI = 1150
1988-1993
1988—1993
USE THIS
Use
thisDATA
data

1971—1987
1971-1987
Reference
REFERENCE
ONLY

Figure 512-2. Chevron Project Management Costs 1988-1993

Figure 512-1 shows data for projects from the early 1970’s through
the mid-1980’s. The data fits well around the regression line.
Figure 512-2 shows data from the late 1980’s and early 1990’s. The
data is both lower and more scattered.
Two reasons for this variance are apparent:
Fewer Chevron personnel are being assigned to major projects.
Because G&A charges (see Section 522) were imposed beginning in
the mid-1980’s, many operating company costs are no longer charged
directly to projects. G&A, as a special charge, is excluded from the
indirect costs plotted here.
Cost Estimating Manual
Page 512-2

April 1995

Design and Project Management Costs

Point

Project

Mid-point

A

Normal Alpha Olefins, Cedar Bayou

4Q88

B

Chevron Polyethylene (LLDPE), Cedar Bayou

4Q89

C

Styrene Expansion, St. James

1Q90

D

TKC Rebuild, Richmond

4Q90

E

High Density Polyethylene (HDPE), Orange

1Q91

F

MTBE, Richmond

2Q92

G

Aromax, Pascagoula

1Q93

H

Wastewater Treating, Port Arthur

2Q93

Figure 512-3. Data Points for Figure 512-2

Applying the Data

For the reasons just given, you should use the data in Figure 512-2 for
estimating future projects. Familiarity with any of the projects shown in
Figure 512-3 may help you to determine whether your project falls above
or below the line in Figure 512-2.
To use this data and the following equation, estimate the contractor’s total
cost (including direct costs, field indirects and home office costs). Then
adjust that total to EDPI = 1150 before determining the percentage to add
to your estimate for project management costs.
Project Management Cost as Percent of Total Contractor Cost =
17.6 x (Total Contractor Cost $M at EDPI = 1150)-0.242

Design and Project
Management:
Class 3–5 Estimates

For Class 3 and later estimates, you should develop Chevron design and
project management costs in detail. This involves estimating design costs
(where applicable) by discipline and applying an appropriate labor rate.
These costs are based on an evaluation of the work to be performed
independent of schedule.
In contrast, project management costs are time-related. To estimate the
cost of labor, you must do the following:
Prepare a time-phased staffing plan that includes all personnel
(Chevron or contractor) needed at various stages of the project to
supervise design, procurement, and construction. Personnel could
come from the local operating organization, from another location or
OpCo, or through local temporary hiring.
Positions might include the following:
General project manager
Project manager
Design representatives (in a contractor’s office)
Cost Estimating Manual

April 1995

Page 512-3

512

Chevron Costs

Process representatives
Construction representatives (on site)
CRTC consultants (project, materials, equipment) on
a part-time basis
Construction inspectors
Operating representatives
Maintenance representatives
Safety personnel
Materials manager or procurement representative
Finance manager or project accountant
Project assistants and clerical personnel (accounting, secretarial,
etc.)
Assign appropriate hourly or monthly costs to each classification of
personnel.
Add support costs. These can include travel, TDA, office expenses,
construction vehicle costs, etc. Refer to Appendix C, accounts 10
through 55, as a checklist for these types of costs.
After preparing a detailed Class 3 (or later) estimate, you can apply the
data above for Class 1 and 2 estimates to check that you are in the range
of Chevron past experience.
Figure 512-4 is an example of a staffing plan prepared as a part of a $5 M
estimate (1993) to remodel a building at CRTC. Some of the positions are
part-time, with the employees performing other duties during the rest of
their time.
Figure 512-5 is a checklist prepared by the El Segundo Small Projects
Group. You can adapt it to your project and location.

Cost Estimating Manual
Page 512-4

April 1995

Design and Project Management Costs

Figure 512-4. Example of Staffing Plan for Chevron Project & Construction Management:
CRTC Building 35 Remodeling Project, Richmond

Cost Estimating Manual
April 1995

Page 512-5

512

Chevron Costs

Design Phase
Project Team
Project Manager
Design Representative
Process Representative
May be necessary for larger jobs

Project Accountant
Construction Manager/Rep
Operations Representative
Process
CRTC Process Design Package

May need to include pilot plant work

CRTC Process Design Follow-Up
Licensor Process Package
CRTC Consultant
Materials

Materials Engineer, Welding Specialist

Equipment Specialists

Exchanger, Vessel, Electrical, Instrumentation, etc.

Projects Group

Class 1 & 2 Estimates, Value Engineering

CRTC Labs

Materials Lab, Process Labs

CRTC Contracts Team
Refinery Support
Plant Support Group Engineers

Not normally charged to project

IMI Representative

Not normally charged to project

Fixed Equipment Reliability Personnel

Not normally charged to project

Welding Inspectors

Weld procedure review

Operations Personnel

May charge project full-time

Design Drafting Group
Surveying Services
Reproduction Services

Including any photography

Outside Consultants
Pre-funding reviews and post-project assessments

IPA
Team Building
Constructibility Review

Construction contractor may provide

Environmental Studies

Environmental impact reports

HAZOP Support

Leader and scribe

Outside Technical Contracts
Geotechnical Evaluations
Environmental Evaluations
Testing Services

Hazardous waste testing of soil
May be significant for a large retrofit job

Lead Testing
Asbestos Testing
NDE Examinations

UT gaging, shearwave, x-ray, etc. to determine fitness

Figure 512-5. Checklist of Chevron Costs for Refinery Projects

Cost Estimating Manual
Page 512-6

April 1995

Design and Project Management Costs

Leak Detection on Exchangers
Retrofits often require testing capability of existing equipment.

Misc. Plant Performance Testing
Project Set-up Charges
Team Housing Requirements

Trailer rental, set-up, tear-down; utility hook-ups including computer;
office furniture; reproduction equipment; computers; kitchen
equipment

Project Transportation

Car or truck; bicycles

Miscellaneous Project Charges
Team Building
Travel/Trip Expenses
G&A
Typically municipal permits

Permit Fees
Licensing Fees
Catalyst Costs
Chemical Costs

Inventory

Working Capital

Construction Phase
Include night shift if applicable

Construction Team
Construction Representatives

Include both mechanical and I&E reps

Plant Support Group Support

Includes engineering, IMI, and fixed equipment inspection

Clerk(s)

Needed for larger time-and-material jobs

Maintenance Technician

Needed for larger shutdown jobs

Safety Representative
Welding Inspection

In addition to weld x-ray crews

Environmental Liaison

Needed for larger shutdown jobs

Fire Marshal

Required for larger jobs

Fire Watches
Hole Watches

Required for vessel entry

Dirt Sniffers

When excavating in potentially contaminated areas

Refinery Support
I & E Shop

Control valves, transmitters, some switches, etc.

Machine Shop

Setting PSVs

Recycle/Recovery

Waste disposal including spent catalyst; vacuum trucks; poly tank
rental; bin rentals; barrels

Tool Room

Lost tools; overtime costs

Security Services

Special gate coverage; week-end and night-time coverage

Fuel Services

Refinery may not supply to future projects

Radios
Construction Team Housing

Same as Design Team requirements

Testing Services
Void Hole Testing

Figure 512-5. Checklist of Chevron Costs for Refinery Projects (continued)

Cost Estimating Manual
April 1995

Page 512-7

512

Chevron Costs

Positive Material Identification (PMI)
Large volumes or special (chloride-free) water may be charged
to the project

Hydrotesting
Maintenance Overhead

Delays due to plant upset will occur if working in live plant

Plant Evacuation Delays
Plant Cleanup
Blind Fabrication & Installation
Temporary Piping
Chemical Cleaning

Nitrogen for cooling, for example

Chemicals Required for Shutdown
Tank Cleaning
Pre-Operations
Operating Manual Preparation
Operator Training
Mechanic Training

Start-Up Phase
Usually around-the-clock

Start-up coverage
IMI Coverage
Mechanic Coverage
I & E Coverage

May want special sampling during start-up of a new process

Lab Coverage
CRTC or Licensor Coverage
Contractor Coverage

Design & construction contractors

Plant Preparation

Catalyst sulfiding, equipment degreasing

Moan List Items

Allowance

Start-Up Problems

Allowance

Job Closeout

Total effort required is often under-estimated

Refinery Document Management System Input
Instrument Document Management System Input
Inspection Records Setup

Figure 512-5. Checklist of Chevron Costs for Refinery Projects (continued)

Cost Estimating Manual
Page 512-8

April 1995

520

Indirect Costs and Special Charges
Special Charges

521

Special Charges

522

Overhead Capitalization Charges

523

Dismantling

Cost Estimating Manual

Definition and Description

521
Special Charges

April 1995

pecial charges do not necessarily apply to an individual project. While contractors
may include many special-charge items in their estimates, they are not familiar
with all of them. A Chevron representative must review all potential special-charge
items and include the applicable items in the project estimate.

S

Definition and Description
Definition

Description



The following statements help to define special charges:
Special charges include both direct and indirect costs unique to each
project.
These charges do not fit any patterns in comparisons between projects.
Special charges have minimal effect on other direct and indirect costs,
including technical service costs.
Charges are segregated to avoid distorting patterns that exist between
other direct and indirect costs when making detailed analyses of
estimated or historical project costs.
Historically, special charges range from zero to 15 percent of the total
project cost and from 2.5 to 5.8 percent for major refinery projects.
Some special charges are capitalized and included in the project
appropriation. Other project-related special charges are pre-operating
expenses or working capital and are included in other lines of the
Appropriation Request (GO-36) or corresponding OpCo form.
Certain special charges can fall into more than one of the three cost classifications
(Capital Improvement, Pre-Operating Expense, and Working Capital).

See Figure 521-1 for the following information about special charges:
Accounting code (See also Appendix C, “Code of Accounts
(EG2757)”)
Brief description
Estimating guidance
GO-36 classifications
Special notes
Estimating class when it is appropriate to include each special charge;
some are difficult to estimate or identify in the early phases of a project
Cost Estimating Manual
April 1995

Page 521-1

521

Special Charges

Special Charges Listed in Figure 521-1 in Order of Appearance

Acquisition, Land and Right-of-Way
Alterations, Relocations, Repairs
Camps, Construction
Catalysts and Chemicals
Catalysts and Chemicals, Labor for Initial Loading
Damage Payments
Damage or Loss of Company Property
Dismantling
Maintenance Equipment Purchased for Operations
Depreciable Standby Equipment
Freight, Ocean
Import Costs
Insurance, Builder’s Risk, and Other Company Paid
Interest Charges During Construction
Local Office and Agent
Local Transportation and Dock to Jobsite Material Handling
Overhead Capitalization Charges (G&A)
Spare Parts
Permits/Fees
Royalties, Patent Licenses, and Fees
Preliminary Engineering and Feasibility Studies
Taxes, Special
Third Party Improvements/Infrastructure
Training, Operators
Training, Mechanics
Vendor Assistance and Other Startup Costs
Waste Disposal, Hazardous

Cost Estimating Manual
Page 521-2

April 1995

Accg
Code

GO-36 Classifications
Description/Estimates

Capital
Improvements

73

This item is part of
ACQUISITION, LAND AND RIGHTthe capitalized cost.
OF-WAY
Description
Includes:
- Payments to landowners for land
purchases & right-of-way grants
for new construction.
- Indemnities paid to landowners for
property damage during
construction.
Estimating
- Estimate required parcels of land
based on a topographic map of the
area.
- Assess the fair current market value
of that land. Consult title companies,
appraisers, or taxing agencies in
the local area.
- Price ROWs at the full land value.

U8

ALTERATIONS, RELOCATIONS,
REPAIRS
Description
Excludes:
- Upgrading of existing equipment.
- Installation of new equipment.
These exclusions are part of direct &
indirect costs.
Includes:
- Costs for alterations & repairs
to existing facilities (often overlooked when performed under the
operating company’s maintenance
budget).
- Costs for relocating equipment
(often not evident until detailed
designs prepared; safety and
fire/loss prevention issues
considered).

Figure 521-1. List of Special Charges

Pre-Operating
Expense

All other alterations,
Only expenditures
relocations & repairs.
that materially add
value by:
- Improving capacity
or service
- Prolonging
expected life
appreciably

Estimating Classes
Working Capital

Other Notes

Chevron’s associated
labor (administrative)
costs for land & ROW
acquisitions are
generally covered in
Overhead Capitalization Charges, except
in special situations,
such as joint ventures.

1

2

3

4

5

x

x

x

x

Alterations: 1-5
Relocations: 2-5
Repairs: 3-5

Accg
Code

N/A

GO-36 Classifications
Description/Estimates

Capital
Improvements

Pre-Operating
Expense

Estimating Classes
Working Capital

This item is part of
CAMPS, CONSTRUCTION
the captialized cost.
Description
Projects at remote locations often
require facilities for housing, feeding,
& providing recreation for work force
during construction.
Estimating
- Within a contractor’s estimate &
accounting system, these charges
are part of Temporary Buildings [our
Account 39] within overall category
of field indirect costs, but are
excluded from the data in Sect. 501.
- For Chevron cost-analysis
purposes, we treat them as special
charges. (They occur infrequently.)

T1, T2 CATALYSTS & CHEMICALS
Capitalize initial
charge for catalysts
Description
& chemicals.
Many processes, e.g., catalytic
reforming, hydrofining, alkylation,
catalytic cracking & extraction require
significant inventories of catalysts or
chemicals or both.
Estimating
- Calculate required initial quantities
based on process design.
- Contact local or CRTC process
engineer to help determine
quantities.
- Add 5-10 percent to calculated
catalyst for spills & weight/vol.
conversion losses.
- Estimate cost of catalyst &
chemicals.
- Base cost on current unit prices.
- Obtain current unit prices from
manufacturer, licensor, CIOC
catalyst specialist, or the project
process engineer.
T1, T2 CATALYSTS & CHEMICALS,
LABOR FOR INITIAL LOADING

Capitalize the
loading of initial
catalyst & chemical
charges. (For
catalyst/ chemical
charges, see above.)

Figure 521-1. List of Special Charges (continued)

Other Notes

Several construction
camps—built in early
1980’s for the Carter
Creek, WY, gas plant
project—cost $50
million, or $6.30 per
field manhour (craft &
staff) with costs
adjusted to EDPI =
1100, or about 9.4
percent of total project
cost before credits for
salvage & for rents
paid by occupants.

Short-term lease (23 yrs) of catalyst is
treated as an
operating expense.

Standby inventories
(working capital)
may also be needed
- for plant sites
remote from reliable
catalyst or chemical sources, or
- where emergency standby
charge of catalyst
is mandatory for
normal plant
operations, or
- for processes
using preciousmetals catalyst on
an inert carrier &
for which we warehouse a spare
charge for exchange while
regenerating the
initial carriers.
Catalyst loading of
reactors may need
special equipment
(bins, pneumatic lifts,
etc.) not included here.
(See Maintenance
Equipment, Purchased
for Operations.)

1

2

3

4

5

x

x

x

x

x

x

x

x

x

x

x

x

x

Accg
Code

GO-36 Classifications
Description/Estimates

Capital
Improvements

Pre-Operating
Expense

Estimating Classes
Working Capital

Other Notes

1

2

3

4

5

N/A

DAMAGE PAYMENTS
Damage payments
See also Acquisition, Land and Right- for which Chevron
of-Way Purchase.
acquires property or
rights having future
utility or serviceability are included
in the capital cost.

Damage payments
made to outside
parties arising from
accidents or other
causes & for which
Chevron acquires
nothing serviceable
(property) are preoperating expenses.

x

x

N/A

DAMAGE OR LOSS OF COMPANY
PROPERTY

- Damages from fire,
storm, earthquake,
flood or collisions.
- The extra costs for
securing construction site against the
imminent arrival of
a severe storm;
e.g., hurricane.

x

x

U8

DISMANTLING
Description
Costs for dismantling existing
facilities (whether for new
construction or for general site
clearance).
Estimating
See Section 523.

Before 1992,
dismantling for new
construction was
capitalized; now all
dismantling is
expensed.

82

MAINTENANCE EQUIPMENT
PURCHASED FOR OPERATIONS
Estimating
Usually a small cost for projects
involving expansion of existing
facilities; but it can be 0.4 percent of
a grass-roots project’s cost, and
higher for remote locations.

This item is part of
the capitalized cost.

Figure 521-1. List of Special Charges (continued)

Whole-Faciilty Dismantling:
1–5
Partial/Selective Dismantling:
2–5

Machinery for a
maintenance shop &
mobile maintenance
equipment are
examples of this
category.

x

x

x

Accg
Code

81

75

GO-36 Classifications
Description/Estimates

Capital
Improvements

Pre-Operating
Expense

Estimating Classes
Working Capital

Other Notes

DEPRECIABLE STANDBY EQUIP.
This item is part of
the capitalized cost.
Definition
Depreciable Standby Equipment, as
part of capital improvements, must
meet the following criteria:
- Associated with a specific type of
plant or facility (not general store
house stock).
- Certified as an operating necessity
for standby purposes
- Low frequency of movement.
(See also Spare Parts.)
Estimating
- Obtain costs from vendors when
possible. Rotating equipment spares
are about 20 percent of the costs of
rotating equipment.

Examples:
- Spare rotor for major
rotating equipment
(compressor or turbine), purchased as
complete assembly
& installed as complete spare while
original unit is being
repaired.
- “Warehouse spare”
pump bought in lieu
of installed spare.

FREIGHT, OCEAN
Ocean freight is
included in the
Description
capitalized cost.
Includes:
- Charges for export packing & boxing, shipping agent fees, loading &
unloading, misc. port handling fees,
transportation from shipping port to
destination port, freight insurance
(incl. special insurance for marine
shipments) & overseas air freight.
Excludes:
- Freight charges from manufacturer
to shipping point or inland freight
charges for domestic projects
(direct costs).
- Freight costs from receiving port to
jobsite. (See Local Transportation &
Dock to Jobsite Material Handling.)
Estimating
Ocean freight typically ranges from 5
to 15 percent of the cost of material
being shipped. See Section 304.

Estimates prepared by
contractors may show
ocean freight in direct
costs.

Figure 521-1. List of Special Charges (continued)

1

2

3

4

5

x

x

x

x

x

x

Identify & segregate
costs for proper
accounting of spare
rotors or warehoused
spare pumps that are
part of the equipment
P.O.

Accg
Code

77

GO-36 Classifications
Description/Estimates

Capital
Improvements

This item is part of
IMPORT COSTS
the capitalized cost.
Definition
Difficult to estimate even with rate
schedules.
Most duties depend, at least partially,
on “like item” or material in country
imposing duty. Broad interpretations
of “like items” often lead to higherthan-anticipated charges. Reciprocal
agreements eliminating duties may
exist between certain countries but
not others. Duty & tax patterns
change with time & special concessions may be possible.
Estimating
When more precise data are not
available, use following approach:
Duties:
- Estimate total value of material
being imported.
- Study applicable duty regulations
to determine average duty rate.
- Apply assumed average duty rate
to estimated value of imports.
Taxes:
- Estimate special taxes on certain
items (incl. imported technical
drawings) similarly by applying tax
rate to estimated cost of taxable
materials.
- Check applicable regulations for all
possible tax & duty concessions.
- Contact someone in country that
applies duties for latest interpretation of laws.

Figure 521-1. List of Special Charges (continued)

Pre-Operating
Expense

Estimating Classes
Working Capital

Other Notes

Estimated Average
Duty:
- For current U. S.
imports, approx. 5
percent duty.
- For the Australian
LNG project, import
duties were 2 to 30
percent & averaged
9 percent (after
exemptions) of
value of all imports.
- The 8 percent rate
negotiated for Papua
New Guinea project
met major changes:
Camp buildings—30
percent duty; parts of
Central Production
Facility—exempt.
- Total may run as high
as 4.6 percent of
project’s total cost
(Feluy Refinery).
Local Ground Fees:
In most countries, local
broker clears items
through customs.
Sometimes a bonded
area at jobsite can be
set up. Duties are paid
when items leave
bonded area for
installation. Include
costs for establishing
& maintaining bonded
area.

1

2

3

4

5

x

x

x

Accg
Code

GO-36 Classifications
Description/Estimates

Capital
Improvements

Pre-Operating
Expense

Estimating Classes
Working Capital

Other Notes

1

2

3

4

5

x

x

x

N/A

This item is part of
INSURANCE, BUILDER’S RISK &
capitalized costs.
OTHER COMPANY PAID
Description
Includes builder’s risk (covers loss to
the facility being built) or generalliability insurance.
To eliminate loss exposure risk in
some cases (e.g., joint ventures or
high-risk offshore activities), Chevron
may purchase additional insurance.
Estimating
- Do not use historical insurance costs
as insurance market is too volatile.
- Do contact Treasurer’s Insurance
Division for current insurance pricing.

N/A

To be part of
INTEREST CHARGES DURING
capitalized cost, this
CONSTRUCTION
item must be
Description
- Usually applicable only to projects approved by
Corporation
with special financing arrangeComptroller.
ments, (e.g. projects financed by
contractors or joint ventures with
commercial financing).
- Only for projects involving
expenditures in excess of $300 M &
requiring over two years to complete.

x

x

x

N/A

LOCAL OFFICE & AGENT
Description
- For cost of maintaining local office
in foreign country’s state or national
capital. The office:
- facilitates transfer of personnel &
mat’l into & within that country.
- assures we meet local laws &
customs.
- helps establish operating organization for facility.
- Generally applicable only in foreign
countries where Chevron has little
or no presence.

If solely for project,
cost is capitalized. If
operating company
is establishing a
presence in country,
cost is part of
company’s
operational budgets.

x

x

x

Figure 521-1. List of Special Charges (continued)

Chevron usually selfinsures all risks
beyond protection of
contractors’ liabilities
up to the $10 M
deductible for
corporate catastrophe
insurance.

Accg
Code

GO-36 Classifications
Description/Estimates

Capital
Improvements

Pre-Operating
Expense

Estimating Classes
Working Capital

Other Notes

76

LOCAL TRANSPORTATION & DOCK This item is part of
TO JOBSITE MAT’L HANDLING
capitalized costs.
Description
- Applicable to all jobs having seatransported materials or equipment.
- Includes only freight and handling
costs from receiving port to jobsite.
Estimating
- Typically from three to ten percent of
cost of material being shipped.
- Can be much higher if there are
unusual logistical factors.

Example of higher
costs: recent Papua
New Guinea Project
moved some materials
by aircraft (Hercules).
As with ocean freight,
contractor’s estimate
may include this item
as part of direct cost.

38

OVERHEAD CAPITALIZATION
This item is part of
CHARGES (G&A)
capitalized costs.
See also Section 522.
Description
An amount applied to the overall
project cost based on the total
capitalized expenditures.
- Can be charged up front or paid as
project expends.
- Should cover following costs not
normally charged directly to project
unless special arrangements are
made to capture them; e.g., in joint
ventures:
- Land & Right-of-Way Associated
Company’s administrative labor
costs. See Acquisition, Land &
Right of Way.
- Legal Fees (in-house).
- Publicity & Inauguration OpCo’s
costs for publicizing project &
gaining support of local community & elected officials for its
construction & operation; includes
costs of dedication ceremonies.

See Section 522 for
current rates for
domestic operating
companies.

Figure 521-1. List of Special Charges (continued)

1

x

2

x

3

4

5

x

x

x

x

x

x

Accg
Code

80

GO-36 Classifications
Description/Estimates

SPARE PARTS
Description
- Includes spare parts purchased for
normal maintenance operations.
- Excludes costly depreciable spares,
such as turbine rotors (see
Depreciable Standby Equipment).
Estimating
Estimate spare parts (excluding
depreciable spares) for domestic
grass-roots projects at 4 percent of
major equipment plus bulk material
costs.
- Double this percentage for foreign
grass-roots projects.
- Take one-fourth to one-half of
percentage for expansions.

Figure 521-1. List of Special Charges (continued)

Capital
Improvements

Pre-Operating
Expense

Estimating Classes
Working Capital
When spare parts
are purchased by
issuing supplements
to equipment
purchase orders,
identify & segregate
these costs for
proper accounting.

Other Notes

OpCo normally
determines requirements for specific
spare parts after
reviewing vendors’
recommended spares
lists & following
factors:
- Existing stocks
- Availability from
manufacturers
- Anticipated delivery
- Availability of standby
equipment or alternate means of
operation
- Possible failure of part
- Economic evaluations
of plant down-time
compared to cost of
acquiring & storing
spare parts

1

2

3

4

5

x

x

x

Accg
Code

84

GO-36 Classifications
Description/Estimates

Capital
Improvements

Pre-Operating
Expense

- All permit costs are capitalized.
PERMITS/FEES
- Associated costs of development are
Description
part of capital improvements.
Includes cost of permits for new
construction.
- Costs of environmental impact stateEstimating
ments (EIS) are split between capital
- Building Permits: Includes fees for
improvements & expense. All costs
local building department only; can
associated with preparation & presentareach 0.05 percent of total project
tion of the EIS, not incorporated in plant
cost.
design, are expense. The balance of the
- Environmental Permits: Includes
cost is capital. The split can be based on
legal & technical costs for outside
engineering estimates of the work incorconsultants to prepare environporated in plant design.
mental permit applications.
Usually nominal but increase
dramatically if permit filers must pay
agencies & consultants to review
applications.
- Environmental Impact Studies:
Includes cost of consultant to prepare environmental impact report
(EIR) or environmental impact
statement (EIS). Varies according to
location, physical size & type of
project.
- Contact CRTC Health, Environment
& Safety group for estimating help
if current local information is not
available from operating company.
- See Section 510 for technical
service costs, including in-house
or design-contractor support work.

Figure 521-1. List of Special Charges (continued)

Estimating Classes
Working Capital

Other Notes

Overhead
Capitalization Charges
usually cover in-house
legal costs unless
special arrangements
are made; e.g., joint
ventures.
Example of EIS costs:
Californian & Alaskan
North Slope projects
have much higher
costs than U.S. Gulf
Coast. Development
fees may include
emissions offsets in
addition to installing
best available
emission control technology (BACT)
equipment in new
facility before
constructing or
operating is permitted,
especially in nonattainment areas.
Offsets can be
required for various
emissions, eg., SOx,
NOx, & CO, and
for amounts greater
than produced. We
can obtain emissions
offsets by purchasing
them from bank or
broker, or by installing
emissions reduction
equipment in existing
facilities (not necessarily Chevron’s).

1

2

3

4

5

x

x

x

Accg
Code

GO-36 Classifications
Description/Estimates

Capital
Improvements

Pre-Operating
Expense

Estimating Classes
Working Capital

Other Notes

83

ROYALTIES, PATENT LICENSES &
FEES
Description
Licensor engineering fees, if any, are
not included here. See Technical
Services Chapter 510.
Estimating
- Look for terms of prospective royalty
agreements, if available, when
estimating.
- Expect to pay about 50 percent of
license fee before beginning
detailed designs.

Paid-up, lump-sum
royalties, patent
licenses & fees
before commercial
operation (unlike
operating royalties,
based on plant
throughput, which
are normal postproject operating
expenses).

N/A

STUDIES, PRELIMINARY
ENGINEERING & FEASIBILITY
Description
See also Technical Services, Chapter
510.

Costs for Front-End
Engineering phase
(following Concept
Development &
Feasibility phases),
if not included in
Technical Services.

86

TAXES, SPECIAL
Description
- Domestic taxes other than sales &
use; e.g, Mississippi Contractor’s
Gross Income Tax.
- Foreign projects: expatriates’ local
country social program & income
taxes, fringe benefit taxes, payroll
taxes, etc.

This item is part of
capitalized costs.

Understand tax rules
in each country and
include appropriate
amount in estimate.
Expatriates’ taxable
fringe benefits include
foreign differential,
schools, repatriation,
etc.

N/A

THIRD PARTY IMPROVEMENTS/
INFRASTRUCTURE
Description
As part of many projects, Chevron
improves community facilities or
other third-party assets.
If a utility company builds and pays
for new facilities (their own) to
support a project and then recovers
their amortized costs as part of
monthly utility service fees, these
costs are normal post-project
operating expenses, not capital.

When these costs
become a requirement to build a new
facility, they are part
of project’s capital
costs.
Keep them separate
as there are special
amortization rules
for such facilities.
Sometimes, they are
not even capitalized.

Examples: widening
roads, buying fire
engines, upgrading
utility-owned power
stations. In Papua
New Guinea, Chevron
built hospital and our
paramedics serviced
local population
because medical
facilities were unavailable in area. Project
also had full security
force; bought firefighting and oil-spillrecovery equip.

Figure 521-1. List of Special Charges (continued)

Costs for the
Concept
Development &
Feasibility phases
(prior to Front-End
Engineering).

1

2

3

4

5

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Accg
Code

GO-36 Classifications
Description/Estimates

90

TRAINING, OPERATORS
Description
All charges prior to startup for
training personnel to operate a new
facility.
- Includes costs of training equipment; e.g., process simulator hardware and software and operating
manuals.
- Excludes costs of preparing process manuals (see Chapter 510,
Technical Services).
Charges vary significantly, due
mainly to differences in processes &
accounting practices.
Estimating
- Estimate personnel costs by pricing
new facility’s operating crew over
appropriate time frame.
- Anticipate larger crews and longer
training times for remote or foreign
locations.

91

TRAINING, MECHANICS
Description
Similar to operator training; usually
not applicable to expansion or
modification projects unless there is
unfamiliar, specialized equipment

Capital
Improvements

Pre-Operating
Expense

All other training
Process simulator
hardware that is part costs are expenses.
of a “hot spares”
program, or that is
later incorporated
into the plant, is
capitalized.

Figure 521-1. List of Special Charges (continued)

All costs are
expenses.

Estimating Classes
Working Capital

Other Notes

1

2

3

4

5

x

x

x

x

x

x

Accg
Code

GO-36 Classifications
Description/Estimates

92

VENDOR ASSISTANCE & OTHER
STARTUP COSTS
Description
Normally these costs fall between
contractor’s mechanical completion &
OpCo’s acceptance of facility. Break
point between startup costs &
operating costs is often arbitrary.
“Reasonable” charges by operating
organization, CRTC, vendors’
representatives, & contractors’
personnel include:
- Vendor assistance during start up.
- Cleanup of feedstock, line-andvessel cleaning, inert-gas purging,
filter-and-gasket changeouts.
Testing beyond that included in
contractor’s costs.
- Operating the facilities until an
acceptable quality & quantity of
product are achieved consistently.
- Minor changes to make a facility
operate as specified.
- Consider costs of special cleaning
of boilers & waste-heat generators
including chemical disposal costs.

97

WASTE DISPOSAL, HAZARDOUS
Description
All hauling costs & disposal fees
related to cleanup of contaminated,
hazardous & toxic wastes (asbestos,
oily soil, extractable hazardous
liquids, etc.) generated or accumulated at site prior to new construction.
Estimating
- Estimate costs based on type of
waste, distance to disposal site &
disposal fees.
- Contact the local operating organization for information on costs.

Capital
Improvements

Pre-Operating
Expense

The Uniform Accounting Manual (UAM)
considers startup charges prior to facility’s
being capable of commercial operation as
part of capitalized cost of project.
Recently completed Pascagoula Aromax
Project (1993), however, classified all
startup charges, including vendor
representatives, as expense. Rationale
was that startup activities do not add any
“value” to plant’s capital worth.

Figure 521-1. List of Special Charges (continued)

All costs are
expenses.

Estimating Classes
Working Capital

Other Notes

1

2

Vary widely & evidence
no consistent pattern,
but usually new &
unique processes cost
more than familiar or
duplicated facilities.
Turnkey plants may
have lower-thanaverage costs if
contractor’s assistance
is part of contract.
New plant cannot start
up without at least
some of these costs;
therefore, if a project
cost report shows no
charges for startup,
client has probably
absorbed cost or cost
reporting is inaccurate.

Richmond Refinery
(5/94): Transport &
disposal, $120.–$150
per ton. Loading by
hazardous waste
contractor, $150/ton.
Analytical testing,
$500-$5,000/sample
(one sample per
500 cy).

x

3

4

5

x

x

x

x

x

x

522
Overhead Capitalization Charges
he Tax Reform Act of 1986 requires that Chevron allocate and capitalize a portion
of indirect (overhead) costs as a part of the project cost, in addition to traditionally capitalized direct costs. These costs include items such as applicable labor
expense associated with the following areas:

T

Administrative, legal, and other support personnel

Insurance

Data processing

Material handling and storage
These charges are also known as general and administrative (G&A) charges.


Procedures
OpCo finance organizations charge projects a set rate, unique to each
organization and variable from year to year, as shown in Figure 522-1.
The charges are not backed by normal project commitment documents or
invoices, and appear only in the monthly work-in-progress (WIP) reports.
The charges can be handled in two ways:



Levied on a one-time basis, at the time an appropriation is opened
Accumulated each month based on current period expenditures for
larger, multi-year projects

Check with your local finance group for the method applicable to your
project.
The accounting code for such charges within CRTC cost reports is 038.

Estimating
When estimating capital projects, include an allowance for this charge and
calculate the G & A on the original total value of the project. Add this
amount to the original total value of the project, grossing up the project
value to include G & A.
G & A is not charged to projects with appropriations of $50,000 or less.
These projects bypass the work-in-progress system and are capitalized
directly to investment.
Cost Estimating Manual
December 1998

Page 522-1

522

Overhead Capitalization Charges

Organization

Description
Richmond

5.4%

N/A

N/A

El Segundo

9.0%

3.0%

Pascagoula

5.6%

5.0%

Salt Lake

6.6%

6.6%

El Paso

8.4%

3.4%

Asphalt

3.9%

3.9%

Note 2

4.6%

Lubricants

3.7%

3.7%

Hawaii

6.5%

6.5%

Western Regions

5.9%

5.9%

Eastern Regions

6.5%

5.5%

Midcontinent

4.0%

4.0%

Gulf of Mexico

3.0%

3.0%

Light Products/Aviation
Chevron USA Products Co.
—Marketing

Chevron USA Production Co.

Chevron Chemical

Chevron Pipeline

1998

5.3%

Cleaner Fuels Projects
Chevron USA Products Co.
—Refining

1997

1

Norphlet

N/A

Green Canyon

N/A

Western

7.0%

7.0%

Non-operated

3.0%

3.0%

Non-conventional

3.0%

3.0%

Oronite

0.7%

0.7%

US Chemicals

Note 2

Note 2

All projects

Note 2

Note 2

1G

& A rates are calculated for each business unit, and separately for Chevron’s operated and
non-operated projects.
2 G & A rates are not available.
Figure 522-1.

Overhead Capitalization Charges (G&A Rates)

Cost Estimating Manual
Page 522-2

December 1998

April 1995

523
Dismantling

his section provides the following information about dismantling:
Estimating costs of dismantling facilities
Dismantling plants entirely or piecemeal
Related items to consider when estimating dismantling work
Begin by reviewing the resources in Figure 523-1.
The information in this section does not include cases where a facility is sold as a
complete unit. It does include demolition inherently in the data for Alternative 1 below
(probably a mix of dismantling and demolition). Demolition is less costly and may be
a factor in the lower values shown in Figure 523-2.

T

Estimating Methods for Dismantling
There are three methods for estimating dismantling:
Alternative 1: Percentage of Plant Cost
Alternative 2: Percentage of Erection Labor
Alternative 3: Detailed Takeoff
Alternative 1

PERCENTAGE OF PLANT COST

Useful only for making Class 1 estimates, the first alternative is to
estimate the approximate dismantling costs of an entire plant (net of
salvage value) as a percentage of the original plant cost adjusted to the
year of dismantling, applying EDPI (Section 301) and modernization
factor (Section 302).

Item
Estimating dismantling costs, administering
dismantling contracts, selling complete facilities,
names of dismantling contractors

Sources
Chevron Services Company, Purchasing &
Materials Management, Asset Management,
San Ramon

Figure 523-1. Resources for Dismantling

Cost Estimating Manual
April 1995

Page 523-1

523

Dismantling

Updated Plant
Cost2

Plant1

$ MM

Dismantling Cost3
$ MM

% of Updated
Cost

Phenol, Richmond

63

.15

0.2

#2 Polybutene, Richmond

17

.11

0.7

#3 Polybutene, Richmond

15

.11

0.7

Coal Liquefaction, Richmond

49

.24

0.5

ARS/UDEX, Richmond

56

.86 est

1.5

Ethylene, Cedar Bayou

115

.16

0.1

Dinslaken Facility

25

.85

3.4

Grangemouth Facility

89

.26

0.3

Kent Facility

33

.23

0.7

373

11 est

5

5

Feluy Refinery

Compression/Extraction,
Gaviota
1
2
3

4

5

NA

2.9
4

-.002

NA

All cases include aboveground dismantling only, except as noted. Asbestos removal
was included in most cases.
The original plant cost updated to the year of dismantling, using EDPI and modernization factor.
Dismantling costs for the listed plants range from 0 to 4 percent of the updated plant
costs (except Note 4 below).
- 0 percent — suggests that the dismantling cost and salvage were offsetting values.
- 4 percent — means that dismantling cost exceeded the salvage value by an amount
equal to 4 percent of the updated plant cost.
Exception to dismantling costs: The Gaviota Compression and Extraction Plant cost
-$2,000 to dismantle. (High salvage value of equipment resulted in $2,000 being paid
to the Company.) Data on the original plant cost was not available.
Foundations included.

Figure 523-2. Dismantling Costs for Facilities Built 1953-1984; Dismantled 1984-1989
(Excludes Facilities Sold as Complete Plants)

The dismantling costs in Figure 523-2 are net costs (credit for salvage
value is included) because it is difficult to separate salvage value from
dismantling costs in a contract. Lower dismantling costs reflect easy plant
access, high scrap metal salvage value, and little or no asbestos removal.
Costs can vary significantly for plants with large amounts of asbestos.

Cost Estimating Manual
Page 523-2

April 1995

Estimating Methods for Dismantling

Alternative 2

PERCENTAGE OF ERECTION LABOR

Useful only for making Class 1 or Class 2 estimates for piecemeal
dismantling work, the second alternative bases the labor estimate on a
percentage of erection labor. This method is the best one to use when
estimating selective removals for plant modifications. Salvage value is
not included.
Piecemeal dismantling does not include scrap value. Figure 523-3 lists the
direct labor cost for dismantling plant components as a percentage of the
current erection direct labor costs.
Dismantling equipment for reuse costs more because of the effort to
minimize damage. The best approach is to prepare a detailed estimate of
each item to be dismantled for reuse (see Alternative 3). Be certain to add
the cost of reconditioning, when necessary, for dismantled equipment.

Item
Columns, vessels (single lift removal)

Dismantling
Labor1
125

Columns, vessels (multiple lifts)

35-50

Tanks

35

Exchange

50

Furnaces

25-50

Furnace stack

100

Pumps and drivers

25

Compressors and drivers

25

Instruments and controls

25-50

Pipe, valves, and fittings

25-50

Structural steel—heavy framing

75

Structural steel—medium framing

50

Structural steel—light framing

25

Electrical

25-35

Concrete foundations and structures

50-65

Piling

100

Site work—paving

50

Site work—drainage

20

1

As percentage of erection direct labor (hours or cost)

These costs reflect removing equipment selectively from a facility for sale as
scrap or for disposal. These values represent direct labor costs only; indirect
cost items are not included. Additional costs are shown in Figure 523-4.
Figure 523-3. Dismantling Labor as a Percentage of Erection Labor
(Labor Hours or Cost)

Cost Estimating Manual
April 1995

Page 523-3

523

Dismantling

Alternative 3

DETAILED TAKEOFF

The most accurate method is to estimate each item by working up a
detailed takeoff of the job’s components. You can hire dismantling
contractors to prepare this estimate. Alternative 3 is useful for making
Class 3 estimates and includes the following:
Dismantling procedure
Labor needed
Equipment needed
Salvage value for each component
See Figure 523-4 for other items associated with dismantling to include in
your estimate.

CONSIDERATIONS
Facility and Site Conditions
Access to facility: obstructions such as overhead pipeways, utility lines
Asbestos handling
Equipment needed: large cranes
Market value of scrap material
Underground lines, foundations, etc.
Related Costs
Cleanup of facility or equipment before dismantling
Cleanup of site after dismantling: import fill, grade site
Environmental issues: site contamination, site closure, waste handling, waste disposal
Plant isolation: line blinding, electrical and instrumentation isolation
Piping and electrical reroutes
Removal of non-scrap materials
Safety and fire watch
Technical services: design, contract preparation, contract administration, field supervision

Figure 523-4. Examples of Additional Dismantling Costs to Include in the Estimate

Cost Estimating Manual
Page 523-4

April 1995

600

Estimate Presentation
and Review

601

Estimate Presentation and Documentation

602

Estimate Reviews

603

Factors and Ratios for Use in Estimate Reviews

Cost Estimating Manual

601
Estimate Presentation and Documentation
hen you complete an estimate, you present it to your manager or to your client.
While the discussion in this section treats estimate transmittals as stand-alone
items, you may include Class 1-3 estimates in the decision-making package at the end
of the corresponding phase of Front-End Loading.1

W

Presentation
Class 3

1

Class 3 estimates require the most extensive reporting. If a major
contracting firm has prepared the estimate, the firm may present it to the
Chevron project team in a formal meeting. A complete cost estimate
report includes these items:
Date of the report
Project title and location
Description of the scope of work
Block flow diagram (for process facilities)
Structural configuration (for offshore projects)
Plot plan or map
Project schedule (significant dates)
Cost estimate summary
Basis for the estimate (how it was prepared)
Contingency analysis (probability graph from IPA report, if applicable)
Assumptions and exclusions
Appendices/attachments (optional items such as equipment list,
estimate details, escalation analysis, expenditure projection,
comparisons with earlier estimates, process flow diagrams, P&IDs, or
electrical one-line diagrams)

Class 1 & 2

You may report Class 1 and 2 estimates in a memorandum with
attachments, giving Class 3 information in abbreviated form.

Class 4 & 5

Because Class 4 and 5 estimates are internal to a project, you present them
to management only as a part of the normal project reporting process.

Part of the Chevron Project Development and Execution Process (CPDEP).
Cost Estimating Manual

April 1995

Page 601-1

601

Estimate Presentation and Documentation

Documentation
While there is no standard format for transmitting a cost estimate, be sure
to include all relevant information. You may wish to use two forms for
detailing or summarizing portions of your estimate, where appropriate:
Figure 601-1, Estimate/Budget Sheet
Figure 601-2, Cost Estimate/Budget Summary
These figures are full-size forms that you may photocopy.
For future reference, organize and file the work papers from which you
prepared each estimate. This documentation provides a basis for the
following:
Subsequent estimates and updates
Making comparisons among estimates (often necessary for analyzing
cost changes)
Establishing breakdowns necessary for cost and schedule control

Cost Estimating Manual
Page 601-2

April 1995

Figure 601-1. Estimate/Budget Sheet

Cost Estimating Manual
April 1995

Page 601-3

Figure 601-2. Cost Estimate/Budget Summary

Cost Estimating Manual
Page 601-4

April 1995

602
Estimate Reviews
ou may follow the procedure in this section when reviewing contractors’ Class 4
estimates.1 The procedure is also useful for reviewing both in-house and
contractor-prepared Class 1-3 estimates.
See other resources for this subject in Figure 602-1.

Y

Factors Influencing the Review
Factors influencing the review include available time, reviewer’s
experience, and class and method of estimate.
Available Time

The time necessary to conduct a review depends on
the size (dollar) of the estimate
the class of estimate2
the expected thoroughness of review
To complete the review in the allotted time, you may need to establish a
larger review team, which needs more coordinating, or reduce the
thoroughness of the review, relying more on spot-checking and overall
comparisons.

Item

In this Manual

Classes of Estimates

Section 103

Code of Accounts

Appendices C, D

Contingency

Section 313

Other Sources

Contractor’s Indirect Field Costs Section 501
Escalation

Section 312

Estimating Methods

Chapters 200, 210, 220

Factors and Ratios

Sections 203, 204, 603

Format

Section 601

Major Materials

Section 201

Special Charges

Chapter 520

Richardson

Figure 602-1. Resources for Reviewing Contractors’ Estimates

1
2

Class 4 is a detailed or control estimate. Refer to Section 103 for information about classes of estimates.
A Class 1 or Class 2 estimate takes less time to review than a Class 3 or Class 4 estimate.
Cost Estimating Manual

April 1995

Page 602-1

602

Estimate Reviews

Reviewer’s
Experience

Class & Method
of Estimate

Choose someone with extensive estimating experience to coordinate and
participate in the review. That person will have the degree of knowledge
necessary to make the most effective use of available time and identify
errors or weaknesses in the estimate.
Class 1 or 2 estimates may consist of a small number of work sheets;
Class 3 or 4 estimates may include several volumes.
The estimating method varies with the class of estimate. The four main
methods are as follows:
Curve Estimates—Section 202
Factored Estimates—Section 203
Ratio Estimates—Section 204
Detailed Estimates—Section 205



The estimator may have applied a combination of these methods to the estimate you
are reviewing. Licensors may have supplied Class 1 or Class 2 (sales or business
development) estimates for proprietary processes. You may have to increase these
estimates to meet industry practice and Chevron standards. For sales or business
development estimates by licensors of proprietary processes, see Appendix B.

General Guidelines
Figure 602-2 illustrates the qualitative aspects to consider when reviewing
a contractor’s estimate.

The Review Process
Figure 602-3 gives points to consider when reviewing a Class 4 estimate.
When reviewing a Class 1, 2, or 3 estimate, you may ignore certain
subsections. The review process closely parallels the estimating process.

Cost Estimating Manual
Page 602-2

April 1995

The Review Process

Item

Focus

Consistency

Are all components of the estimate developed with the same approach, factors, rates, time basis,
etc.? If not, why not?
Are the variations appropriate?

Traceability

Can summaries be traced back to subsections, to details, to take-offs, to drawings and
specifications, etc.?
Is the backup material available?
Have initial assumptions been retained or lost?

Completeness

Does the scope in the contractor’s estimate agree with:
- Chevron’s understanding of the project scope?
- Chevron’s latest requirements? (Are late charges included?)
Is there a list of assumptions and exclusions?
Was a standardized checklist used for the estimate?
Did the contractor take adequate time to prepare the estimate, considering its purpose and type?
Was the estimate rushed?

Confidence

What level of confidence do you have in the people making and presenting the estimate?
Do they know the subject?
Do they express confidence in their own estimate?
How much of the estimate is based on lump-sum allowances?
If this is a Class 3 or 4 estimate, does it include any portions estimated by Class 1 or 2 methods?
How much is estimated in detail?

Accuracy

Does the contractor claim a higher degree of accuracy than is realistic for the type of estimate and
amount of backup detail? Are there any arithmetic errors in detailed worksheets and summaries?

Areas of
Greatest Effect

Concentrate your review on
- areas that have the greatest effect on cost and schedule
- areas that are the least defined
- the list of exclusions
- areas with a low confidence factor

Vertical Slicing

Concentrate on areas of greatest effect and select some for an in-depth analysis.

Note: Time does not always permit a complete, thorough review of the estimate. With vertical
slicing, you select and trace the cost of a relatively narrow item (such as small-bore piping in a
single plant) from the summary level to the most detailed level; e.g., to take-offs by drawing, unit
prices for each item, fabrication, and erection. If that review appears satisfactory, then you can
reasonably assume that all other like portions of the estimate were developed properly.
Cost/Schedule
Coordination

Does the estimate reflect the proposed project schedule, including the use of overtime or multiple
shifts?
Is the schedule realistic?

Market
Conditions

Has the contractor based the estimate on unusual market conditions rather than on normal
conditions?
Example: Exceptionally competitive bidding by vendors and contractors or, conversely, a seller’s
market during a period of high construction activity.
Are these conditions likely to exist for the duration of the project?

Code of
Accounts

Is the contractor’s estimate grouped in a code of accounts (or work breakdown structure) similar
to Chevron’s?

Note: We do not want contractors to use our code of accounts and can usually convert their
estimates closely enough to allow use of our comparative ratios, etc.
Will this facilitate comparison with accepted ratios? (See Sections 203, 204, and 603 for factors and
ratios.)
Familiar Format

If the contractor’s estimate is summarized in an unfamiliar way, prepare a summary using
Chevron’s normal format (see Figure 601-2) to make review and comparisons easier.

Figure 602-2. General Guidelines for Reviewing a Contractor’s Estimate

Cost Estimating Manual
April 1995

Page 602-3

602

Estimate Reviews

Points to Consider

Description

Project Scope

Verify that the following items exist and check their detail to identify possible omissions in the
scope:
- Onplot and offplot scope definition (text)
- Process design (approved for construction)
- Process P&IDs (or flow diagrams)
- Utility P&IDs (or flow diagrams)
- Electrical one-line diagrams
- Plot plans
- Equipment lists
- Site location and characteristics
- Specifications
- Project schedules
- Owner costs (if provided to contractor for inclusion in estimate)
- Work by others (and interfaces)
- Results of site visits
- Operator/client input, review, and endorsement
- Assumptions and exclusions

Comparing to
Established Factors
& Ratios

- Compare contractor’s factors and ratios with Chevron experience.

Note: The contractor’s factors (based on experience) may differ legitimately from ours.

Section 603

- Investigate and resolve (or understand) significant differences.

Major Material
(Equipment)

Check that the following items are included:
- Design allowance, freight, and taxes (see Chapter 300)
- Major spare parts (such as compressor rotors)

Section 201 &
Chapter 400

Check process equipment pricing against
- Chevron cost correlations
- recent final project costs
- published information (such as Richardson or Questimate)
- vendor data
If the estimate incudes firm quotations or purchase order pricing, then check that
- the specifications have been met
- a suitable design allowance, freight, and taxes are included (see Chapter 300)

Note: Depending on the type of estimate, major equipment may have been priced using any of
the following:
- Purchase orders for current project
- Formal vendor quotations for current project
- Recent purchase orders for similar equipment
- Recent formal quotes for similar equipment
- Informal vendor estimates/phone quotes for current project
- Data correlations in this manual (or a similar data base from a contractor)
- Commercial cost data (such as Richardson or Questimate)
Figure 602-3. The Review Process

Cost Estimating Manual
Page 602-4

April 1995

The Review Process

Points to Consider
Minor (Bulk)
Material
Section 411

Description
Verify quantity takeoff (if applicable) for
- completeness and availability of design drawings
- compliance with specifications
- individual item count vs. ratio from major items (e.g., pounds of rebar ratio’d from cubic yards
of concrete)
- use of takeoff and wastage allowances (see Section 303)
Spot check pricing against
- recent experience
- published data
- vendor data
- arithmetically correct price-quantity extensions
- freight and tax (see Sections 304 and 305)
Be alert for accounting differences and verify that pertinent costs are included somewhere in the
estimate.
Example: Electronic instrument wire and cable may be in the electrical (P) account, structural
(M) and paving (S)concrete in the foundations (Q) account, etc.
Identify the limits of responsibility between plants for various types of costs and verify that no
gaps exist.
Example:
J -The computer and control room instruments and signal cable/tubing—between the process
plant junction boxes and the control center—may be in the control center “plant.”
L -“Offplot” may commence just outside the plot limit block valves.
P -Substation transformers and breakers may be onplot with feeders offplot.
S -Site cut and fill in the offplot “Site Prep” plant, finish grading onplot.

Note: The contractor may have estimated costs by ratios or in detail.
Direct Labor
Section 420

Understand what the contractor’s manhour standard represents (e.g., West Coast, late 1960’s
productivity), and how the contractor developed productivity adjustments for current date and
location.

Note: The contractor normally estimates labor hours using the contractor’s standards, adjusted
for the expected productivity, and priced using either craft-specific rates or an average rate.
Understand the basis for the craft rate(s)—how they were obtained, and whether fringe benefits
and payroll burdens are included in the craft rate or in indirect field costs.
Identify adjustments made for the use of subcontractors (vs. direct hire) and allowances for
overtime or shift differentials.

Note: A detailed manhour estimate may be based on
- labor hours per piece of equipment
- labor hours per ton (or other measure) of bulk material
- labor hours per unit of work
Contractor
Indirect Field Cost
Section 501

Compare the contractor’s items in this account with the Chevron code of accounts (EG-2757 in
Appendix C) to ensure completeness. This account will include items such as these:
- Indirect (support) manual labor
- Construction equipment
- Small tools
- Consumables
- Temporary facilities
- Non-manual personnel
Check special requirements for remote or overseas projects, such as camps. See Special
Charges, below.

Figure 602-3. The Review Process (continued)

Cost Estimating Manual
April 1995

Page 602-5

602

Estimate Reviews

Points to Consider

Description

Technical Services

Review estimating approach. Is it reasonable and appropriate?

Section 510

Review the details. Ensure that the estimate is complete and documented.
As a final check, compare total technical service costs against total project cost; then compare
that ratio against similar projects.

Note 1: Normally includes only the contractor’s home office costs (project management, design,
and procurement). Construction management costs and the contractor’s fee may be here or with
Indirect Field Costs (above).
Note 2: Cost may have been estimated using any of the following methods:
- Percentage of total plant cost
- Detail engineering manhour estimate using average cost per manhour, with a percentage
allowance for support services
- A complete estimate of all disciplines and support services using manpower loading,
durations and costs per hour
Special Charges

Use the Chevron code of accounts (EG-2757 in Appendix C) as a checklist to ensure that no
items were omitted.

Section 521

Note: Chevron personnel may have estimated some items, particularly precious metal catalysts.
Chevron’s Costs

Direct the review principally towards completeness (use EG-2757 in Appendix C as a checklist)
and overall reasonableness (percentage of project value).

Section 512
Be sure you understand how operating company costs (training, start-up, spare parts) will be
handled.

Note: Normally, Chevron personnel estimate these items and give them to the contractor in
summary form to include in the total estimate.
Escalation
Section 312

If a contractor was asked to prepare a recommended escalation, or if the contractor’s estimate
is in then-current rather than constant dollars, do this:
- Determine and understand the contractor’s escalation basis.
- Compare it with Chevron’s cost index forecast. A realistic schedule is important for this
analysis (see Section 301).

Note: Chevron’s escalation forecast is not necessarily more correct than the contractor’s.
Consider accepting the contractor’s estimate if the differences are relatively minor.
Contingency
Section 313

Understand how the contractor developed the contingency and what that contingency is to
cover.
Example: A contractor’s contingency usually does not cover design developments, even if
portions of the facility are only loosely defined, nor does it cover schedule delays or slippage.
Thus, a contractor-recommended contingency is usually insufficient to protect against
overrun.
Consider recommending a higher (most likely) or lower (rare) project contingency based on your
evaluation.
If IPA prepared a contingency recommedation, was it used in the estimate?

Note: The contractor normally recommends a contingency after judging the quality of the
estimate.
Figure 602-3.The Review Process (continued)

Cost Estimating Manual
Page 602-6

April 1995

Assistance with Reviews

Points to Consider

Description

Note: Time permitting, give the contractor an opportunity to look over your review and correct
deficiencies noted during the review. If that is impossible, then do the following:

Follow Up

- Recommend adjustments to bring the contractor’s estimate more into line with your evaluation
of the project cost.
- Record these adjustments as lump-sum figures, but document thoroughly your development
of those figures for later interpretation and project control.
- Avoid arbitrary adjustments.
The project manager is responsible for final approval of the adjusted estimate.
Conflicts & Biases

Be alert to differing points of view, experience levels and biases of the project participants.
- The contractor’s estimators will have estimated the facilities defined by their project
engineers. If that communication process was incomplete for any reason, the estimate
may be deficient. A prime example is late design changes.
- The project team members, having worked closely with the contractor for some time,
may be overly confident of the “firmness” of the scope and design basis for the estimate.
- The operating company client may resist reviewer recommendations for adjustments or
additional contingency, especially if the project economics are marginal.
Judge independently the quality of the estimate.
Avoid being unduly influenced by the other parties.
Balance the often competing forces.
Attempt to arrive at a bottom-line estimate recommendation that is as realistic as possible,
considering the estimating basis and techniques employed.

Result

The final estimate must be both technically and politically acceptable.

Figure 602-3. The Review Process (continued)

Assistance with Reviews
For reviews beyond the capability of the project team, the CRTC Projects
and Engineering Technology (P&ET) Group can provide assistance. In
such cases, the responsibilities may be delineated as given below:
The project team reviews for
proper and complete scope, including late changes
consistency with schedule and contracting plan
reasonable levels (acceptability) of basis, assumptions, and exclusions
The estimating specialist reviews for
appropriateness of estimating process/methods and data
traceability and consistency within the estimate
possible errors or omissions

Cost Estimating Manual
April 1995

Page 602-7

603
Factors and Ratios for Use in Estimate Reviews
his section reports values from Chevron project experience. These values are
useful to compare with corresponding values in contractor- or Chevron-prepared
estimates.
While actual project estimates may differ from these values, you should investigate
significant deviations to be sure that they are reasonable.

T

Overall and Higher Level Ratios and Factors
Total Plant Cost
vs. Plant Capacity
Installation Factor for
New Process Plant
or Major Addition
Materials-LaborEngineering Cost
Split

Indirect Costs

See Section 202.

Installation factor is the plant cost divided by equipment cost. See
Section 203.
For a typical process plant, we might expect this split to be 48 percent
materials, 34 percent labor, 18 percent engineering, based on the
following definitions. The total for this purpose should exclude escalation
and contingency (because we do not know their ultimate distribution) as
well as special charges (see Chapter 520).
Material is defined as the delivered cost of direct materials, including
domestic freight and sales tax. Also include 65 percent of the total cost
of equipment subcontracts (field-erected columns and furnaces) and
50 percent of the value of bulks subcontracts.
Labor includes direct labor and construction contractor indirect field
costs. Also include 35 percent of the value of equipment subcontracts
and 50 percent of the value of bulks subcontracts.
Engineering includes the contractor’s home office costs (design,
procurement and project management) as well as Chevron project and
construction management costs.
Indirect costs include contractor field indirects, contractor’s home office,
and Chevron costs. See Chapters 500 and 510.

Cost Estimating Manual
April 1995

Page 603-1

603

Factors and Ratios for Use in Estimate Reviews

Escalation

Contingency

Check annual rates versus those in Section 301. Check the centroid of the
overall rate versus the historical two-thirds of the design-and-construction
period (Section 312).
For Class 1 and 2 estimates, see Section 313 (if you did not use that
section to make the estimate and if IPA did not make the contingency
estimate).

Detailed Ratios
Bulk & Major Material
Costs & Labor Hours
& Costs Versus
Corresponding
Material Costs

See Section 204. See also Figure 603-1, which shows the average
percentage breakdown for 50 plants built before 1980. (These breakdowns
may not be correct today.)

Account

Material

Labor

Total

C-G,K

Equipment

24.06

2.94

27.00

J

Instruments

4.23

1.78

6.01

L

Piping

9.94

10.89

20.83

M

Structures

2.45

1.33

3.78

N

Insulation

2.30

0.20

2.50

P

Electrical

2.81

2.74

5.55

Q

Foundations

1.22

2.07

3.29

R

Buildings

0.38

0.27

0.65

S

Miscellaneous

0.76

1.55

2.31

48.15

23.77

Total Group II (Direct)

71.92
13.41

A1

Technical Services

A2

Company Construction Supervision

1.25

A3

Other Technical Services

2.51

B1

Contractor Field Indirects

9.91

B2

Chevron Field Indirects

1.00

Total Group I (Indirects)
Total (excluding special charges)

28.08
100.00

A1 corresponds to Section 511 and part of Section 512.
A2, A3, and B2 are included in Section 512.
B1 corresponds to Section 501.
Sections 501, 511, and 512 are more current than the data shown here.
These figures yield a materials-labor-engineering split of 48.15, 33.68, and 18.17
percent—close to the data shown at the beginning of this section.
Figure 603-1. Average Percentage Breakdown for 50 Pre-1980 Plants

Cost Estimating Manual
Page 603-2

April 1995

Detailed Ratios

Bulk Quantities
& Costs

See Section 411.

Allowances

See Section 303.

Labor Hours,
Productivity Factors
& Hourly Rates

See Chapter 420.

Cost Estimating Manual
April 1995

Page 603-3

Appendices

A

Estimating Checklists

B

Process Licensors’ Sales Factors

C

Code of Accounts (EG-2757)

D

Code of Accounts for Buildings Projects

E

Glossary

Cost Estimating Manual

Appendix A
Estimating Checklists
Checklist Summary
Estimate Class

Estimate Class

1

2

3

4

x

x

x

x

x

x

x

33. Startup costs

Overall Score
1. Client’s intended use
2. Prepared site

1

3

4

31. Tax credits

x

x

32. Environmental offsets

x

x

x

x

x

x

x

x

34. Royalty and license fees

4. Permits

x

x

35. Field purchased materials

5. Environmental impact report

x

x

36. Study costs

x

37. Arithmetic check

x

38. Installation factor

x

3. Underground obstructions

6. Environmental regulation
changes
7. Site survey
x

8. Site terrain
9. Site access
10. Climate

x

x

x

x

x

x

x

x

11. Process parameters

x

x

x

x

12. Scope documents

x

x

x

x

13. All systems (see Att. 1)

x

x

x

14. All PFDs

x

x

x

15. All P&IDs

x

16. P&ID status

x

2

x
x

x

x

x

x

x

39. Sales factors

x

x

x

40. Business climate

x

x

x

x

x

x

x

x

x

x

x

41. Operating costs
Schedule
42. Project schedule

x

43. Permitting plan
44. Schedule restraints

x

x

45. Long lead equipment

x

x

46. Seasonal considerations

x

x

47. Reasonable manpower

x

x

17. Operating factor

x

x

18. Codes and regulations

x

x

Equipment

19. Foreign source limitations

x

x

48. Equipment items

x

x

x

x

x

49. Client-furnished equipment

x

x

x

x

20. Materials of construction

x

21. Community facilities
22. Security
x

23. Catalyst and chemicals

x

24. Spot check takeoff

x

50. Non-process equipment

x

x

x

x

51. Equipment drivers

x

x

x

x

52. Equipment auxiliaries

x

x

x

53. Modifications to existing
equipment

x

x

Overall Estimate

x

25. Client’s expected accuracy

x

x

x

x

54. Startup equipment

x

x

26. Foreign costs (see Att.2)

x

x

x

x

55. Maintenance equipment

x

x

x

56. Spares

x

x

57. Capitalized spares

x

x

x

x

x

x

x

x

27. Construction indirects

x

28. Constructors overhead
and fee
29. Escalation rates
30. State sales tax

x

x

x

x

x

x

x

x

59. Permit restrictions

x

x

x

60. Foreign sources

58. Catalyst handling
x

x
x

Cost Estimating Manual
April 1995

Page A-1

Appendix A: Estimating Checklists

Estimate Class
1

Estimate Class

2

3

4

61. Reasonable quotes

x

x

x

97. Tubing

x

62. Which quote used

x

x

x

98. Installation material

x

63. Vendor services

x

x

x

99. Calibration and testing

x

64. Installation materials

x

x

x

Piping

65. Design allowance

x

x

x

100. Stainless

x

101. Small pipe

x

66. Subcontract plan

x

x

102. Piping specialities

x

67. Modular construction

x

x

103. Utility stations

x

x

x

x

104. Stream tracing

x

x

x

x

105. Firewater

x

x

x

106. Plot limit-manifold

x

x

x

107. Sizes check

x

x

108. X-ray and testing

x

x

Platforms, Structures & Foundations

x

Labor

68. Supply and erect
69. Labor productivity

x

70. Impact of weather
x

71. Labor overtime
72. Labor availability
73. Labor wage rates

x

x

x

74. Training requirements

1

2

3

4

109. Each equipment item

x

Technical Services

110. Piping

x

75. (See Atachment 3)

111. Isolation concrete

x

Ratios

112. Retaining walls

x

x

x

113. Conduit banks

x

x

x

114. Pits and sumps

x

78. Site specifics adjustment

x

x

115. Paving

x

79. Escalation adjustment

x

x

116. Pipeways

x

80. Metallurgy adjustments

x

x

117. Access platforms

x

x

x

118. Ground cover

x

82. Foreign sourced material

x

x

119. Special materials

x

83. Labor productivity adjustment

x

x

120. Material coatings

x

84. Labor wage rate adjustment

x

x

121. Fireproofing

x

85. Business climate adjustment

x

x

x

86. Equipment adjustment

x

x

122. Earthquake, hurricane
design

x

x

x

Electrical

x

x

123. Single line equipment

x

x

76. Current ratios
77. Modernization adjustment

81. Area factor

87. Labor/material ratio

x

x

x

88. Non-manual/manual ratio

x

x

124. Area classifications

x

Commodities

125. Cable trays

x

Instruments

126. Utility interface

x
x

89. Key quantities

x

90. Project specs.

x

127. Welding outlets

91. DCS, PLC, etc.

x

Buildings

92. I/O list

x

128. All buildings

x

93. Materials

x

129. Control house modifications

x

94. Special instruments

x

130. Gate house

x

95. Environmental monitoring

x

131. Architectural

x

96. Cable

x

132. Building service

x

Cost Estimating Manual
Page A-2

April 1995

Checklist Summary

Estimate Class
1

2

3

4

Site Development
133. Prepared site

x

134. Degrubbing

x

135. Cut and fill

x

136. Excavation disposal

x

137. Roads

x

138. Bridges

x

139. Parking

x

140. Fencing

x

141. Sewers and drains

x

142. Tank dikes

x

143. Landscaping

x

Painting & Insulation
144. Requirements

x

145. Surface preparation

x

146. Number of coats

x

147. Insulation scope

x

148. Insulation sizes

x

149. Personnel protection

x

150. Insulation materials

x

Marine Facilities
151. Tug/tow boats

x

152. Wharf/docks

x

153. Dredging

x

154. Loading arms

x

Presentation
155. List of assumptions

x

x

x

x

156. Objective schedule

x

x

x

x

x

x

x

x

x

157. Quantity summaries
158. Engineering complete
159. Reconciliation

x

x

x

x

160. Review participants

x

x

x

x

161. Contingency analysis

x

x

x

x

Cost Estimating Manual
April 1995

Page A-3

Appendix A: Estimating Checklists

Estimating Checklist
Overall Score

1.
2.

3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

14.
15.

Will this estimate be used for comparative studies? Is there a need for
consistent parameters? Will the estimate be used for A/R funding?
Is the site identified and is it adequately prepared? Have all hazardous
materials been removed? Are the right-of-way or other expenses
included?
Are there known underground obstructions? What was the previous use
of the site?
What type of permits will be required? How are the fees determined?
Will permit delays impact the project costs?
Will an environmental impact report be required? What are the
environmental concerns at the site?
Are there environmental regulation changes expected or already in
process?
Was there a site survey and are the results available? Are they being
incorporated into the design?
What is the terrain of the proposed site? Swamp, desert, jungle, etc.?
What is the access to the site? Road, rail, barge? Can heavy loads or
construction congestion be accommodated?
What is the climate at the site? Is there potential for severe snowstorms,
floods, etc.? Do the design and schedule reflect the site climate?
What are the basic parameters of the facility to be estimated (feed rate,
product rate)? Is this a new process?
Be sure the scope documents used as the basis of the estimate are
available or filed for future reference.
Are all areas, plants, systems, and facilities included? (See Attachment
1.) There should be a direct cost estimate for each plant, onplot or
offplot. Check for gaps between plants (especially where a common
facilities plant is being used).
Are there process flow diagrams (PFDs) for each facility? Is each item
of equipment included in the estimate? Is the metallurgy described?
Check to see that all P&IDs have been included in the take-offs. Review
the method by which quantities were estimated in areas not covered
by P&IDs; i.e., utility systems, "package units," special equipment,
etc. Review the P&IDs specifically for grey areas subject to
development. Determine how these have been accounted for in the
estimate.

Cost Estimating Manual
Page A-4

April 1995

Estimating Checklist

16.
17.

18.
19.
20.
21.
22.
23.
24.

Overall Estimate

25.

26.
27.

What is the status of the P&IDs? What is the percent complete of
engineering?
What is the operating factor for the facility? If a referenced project is
being used as the estimate basis, has a correction been made for
differing operating factors?
To what codes will the new facilities be built?
Are there any limitations regarding purchases from foreign countries?
Review the specifications for materials of construction or unusual
requirements or items to be excluded.
What is the public outreach program? Will there be a contribution
towards community facilities.
Who provides security? Is it adequate? Should the estimate include
higher than normal losses?
Are catalyst and chemical costs included? Costs for the initial feed
charge?
Make quantity checks of key items such as control valves, length of
alloy lines, motor starters, etc. Compare these with the estimate
takeoff quantities.
Is the client’s expected accuracy in line with the purpose of the
estimate? Is there sufficient information available to support this
expectation?
Is ocean freight included for foreign purchases? Are the other related
costs included? (See Attachment 2.)
Have the following contractor indirects been included:
Temporary buildings/shelters
Warehouses
Parking
Utilities
Material handling
Miscellaneous manual labor services
Security and health
Construction equipment
Equipment maintenance
Tools
Scaffolding

Cost Estimating Manual
April 1995

Page A-5

Appendix A: Estimating Checklists

28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
Schedule

42.
43.
44.
45.
46.
47.

Consumables
Construction office
Labor supervision
Office clerical
Welder training
Site cleaning
Have allowances been included for contractor’s overhead and fee?
Is there agreement on the future escalation rates to be used?
Is state sales tax included? Payroll taxes? Other taxes?
Are there tax credits to be included?
If required, is the cost for environmental offsets included?
Who will be responsible for startup and commissioning, and are these
costs included? Where does the contractor’s responsibility end?
Are royalty and license costs included?
Does the estimate include field purchased materials?
Are previous study costs included?
Has the estimate received an arithmetic check?
Has the installation factor been developed, and is it reasonable?
If the facilities involved a licensed process, has an appropriate sales
factor been applied?
What will be the probable business climate during the period of the
project? Does the estimate reflect this?
Are operating costs to be included?
Review the schedule for the project to assure reasonableness. Are there
any special milestones?
Is there a permitting plan and is it compatible with the schedule?
What are the schedule constraints? Long lead equipment items?
Manpower? Weather?
What was the source for equipment lead time information?
Should the schedule be modified to reflect seasonal considerations?
Is the construction manpower buildup reasonable? Are all crafts and
specialty skills available? Is there other work in the area competing
for available manpower?

Cost Estimating Manual
Page A-6

April 1995

Estimating Checklist

Equipment

48.

Is each item included? Check this against the P&IDs and the Equipment
List. Check such items as spare pumps, multi-shell exchangers, and
multiple drives. Is the physical description of each item correct?
Check dimensions, materials, horsepowers, weights, pressures,
temperatures, etc.
49. Make sure that client-furnished items are listed and shown as such.
50. Are there condensate pots, steam separators, line filters, suction
knockout pots, surge drums, water break tanks, dry storage tanks, and
other equipment items not normally shown on process diagrams? Are
there any surge drums or pumps required to tie-in the offplot and/or
utility facilities?
51. Is there a driver included for each piece of driven equipment? Has a
pulsation study been included for reciprocating machines?
52. Check fired heaters, compressors, and package units to see that all
required auxiliaries are included. Have the furnishings and/or
installation of refractories in furnaces been included correctly? Also,
check to see that the required refractory lining of duct work and
stacks are included.
53. Are there existing equipment items to be modified?
54. Are there any special needs for startup, shutdown, or cleanup of the
plant? Inert gas or nitrogen?
55. Will any special maintenance equipment be required?
56. Is there a sparing philosophy? Are the spare drivers electric or steam
driven?
57. Are there any capitalized spares?
58. If necessary, is catalyst handling equipment included?
59. Are there any special designs required to meet permit requirements,
e.g., stack height?
60. Will any of the equipment be purchased from foreign sources? (See
Attachment 2.)
61. For quoted items, review the quoted cost for reasonableness, i.e., $/lb,
$/sq.ft., $/HP, etc. Does the quote include adequate escalation for
delivery to the site when required? Is freight included? Was design
allowance added?
62. If there was more than one quote received for an item, was the low
quote used? Was the spread reasonable?

Cost Estimating Manual
April 1995

Page A-7

Appendix A: Estimating Checklists

63.
64.

65.

Has an adequate allowance for vendor erection supervision and/or
inspection been included where appropriate?
Check allowances for field purchased materials and the manhours to
assemble complicated items such as conveyors, scales, and other
special equipment. Are there special construction equipment items
required, e.g., heavy lift equipment and rigging?
Was design allowance added to all quoted items? Will shop premiums
be required to protect the schedule?

66.

Does the construction plan identify what scope will be performed by
subcontractors, e.g., painting?

67.

74.

Will the new facilities be of modular construction? Are additional
costs included at the module site to accommodate this work?
When applying the factors, has consideration been given to equipment
quotes that include erection, capitalized spares, mobile equipment,
others and so on?
Has the assessment of labor productivity been reflected in the estimate?
What was the basis for the assessment?
Will there be an impact on labor productivity because of weather? Has
labor show-up time been included?
Does the estimate include an allowance for spot overtime? If scheduled
overtime is contemplated, does the estimate reflect both the increase
in wages and the loss in productivity?
Is there an adequate supply of skilled labor available locally?
Have the labor wage rates been calculated to include crew make-up,
craft mix, and spot overtime? Where is the allowance for show-up
time?
Will there be welder training or other training at the site?

Technical Services

75.

Are all technical services costs included? (See Attachment 3.)

Ratios

76.

Are the ratios up to date? Have the ratios been adjusted for these factors:
Site sensitivities
Escalation
Metallurgy or unusual features
Labor productivity
Projected commercial environment

Labor

68.

69.
70.
71.

72.
73.

Cost Estimating Manual
Page A-8

April 1995

Estimating Checklist

77.
78.

79.
80.
81.
82.
83.
84.
85.
86.

87.
88.
89.

Has a modernization factor been applied?
Have the construction indirects been included to reflect the site
conditions for temporary facilities, camp costs, construction services
(especially guard services, if required), construction tools,
construction equipment, and construction non-manual supervision?
Has the ratio been adjusted for any differential escalation?
Are there any distortions requiring correction because of high-priced
equipment items with exotic metallurgy or other unusual pricing?
Has the ratio been adjusted for the difference in costs from the reference
site to the project site?
Are there foreign purchases requiring special adjustment to the ratios?
Did the area factor include the latest assessment of productivity for the
project site?
Did the area factor include the latest wage-rate information for the
project site?
Was a business climate adjustment included?
Were there any unusual elements to the equipment estimated, such as
client-supplied equipment items, that would impact the remainder of
the estimate?
Is the labor/material ratio reasonable?
Is the construction non-manual labor/manual labor ratio reasonable?
Have the key quantities been reviewed for reasonableness?

Commodities
Instruments

90.
91.
92.
93.
94.
95.
96.
97.

Does the estimate reflect the project specifications?
Is a CRT-based distributed control system (DCS) required?
Has an input/output (I/O) list been developed?
Review requirements for special materials.
Review all special instruments such as analyzers.
Has instrumentation been included for environmental monitoring?
For electronic control systems, review the instrument wire quantities for
reasonableness. Are there cable trays?
For pneumatic control systems, review the single and multi-tube
quantities for reasonableness.

Cost Estimating Manual
April 1995

Page A-9

Appendix A: Estimating Checklists

98. Review the method by which installation materials were estimated. If
standard details were used, are they appropriate for the job?
99. Are the costs for instrument calibration and testing included?
Piping

100. Review the scope of the stainless steel piping thoroughly. Have
requirements for stainless steel piping for packaged units been
properly included?
101. Review small-bore pipe and small valve factor sheets for consistency
with specifications. Are allowances included for small trim piping
and systems that are not defined on P&IDs?
102. Review the estimate of “pipe specialties.” Are major items such as
eyewash stations, safety showers, expansion joints, and fire
protection equipment (including fire monitors) included in
accordance with specifications?
103. Are the utility stations included as specified? Is adequate piping
included to service these stations?
104. Review the steam tracing estimate for completeness and correct
interpretation of specifications. Have unique requirements dictated by
the type of plant and jobsite (high freezing point liquids, weather,
etc.) been adequately taken into account?
105. Have aboveground and/or underground fire water systems been
adequately covered, if required by specifications?
106. Is a plot limit manifold required?
107. Spot check the number of lines in the estimate versus the number
shown on the line tables. Are all known sizes and specs listed in the
estimate? Do quantities look reasonable for special sizes and specs
that can be easily checked?
108. Does the estimate include weld radiography and piping system testing?

Platforms, Structures
& Foundations

109. Make sure that a supporting structure or foundation is included for
each item of equipment.
110. Is piling required? In which earthquake zone will the new facility been
located?
111. Is there a requirement for a concrete barrier beneath the foundations?
112. Have retaining walls been included?
113. Has concrete been included for underground conduit banks?

Cost Estimating Manual
Page A-10

April 1995

Estimating Checklist

114. Make sure that all pits, sumps, special structures, and enclosures are
included.
115. Check that the estimate reflects the required thickness and area for
paving.
116. Make sure that all pipeways and their foundations have been included.
117. Review the estimate scope to ensure that equipment platforms, valve
and instrument access platforms, pipeway platforms, stiles, etc., have
been included.
118. Review the estimate for crushed rock, shell, or other ground cover
materials.
119. Do the specifications require special materials?
120. Make sure that requirements for sandblasting, special paints,
galvanizing, etc., are reflected in the estimate.
121 Are all vessel skirts and/or support legs that require fireproofing
covered? Do the vessel skirts require fireproofing on both the inside
and outside and, if so, does the estimate reflect this? Have the
fireproofing requirements for steel structures and pipeways been
adequately estimated?
122. Does the design used for the basis of the estimate include the proper
earthquake, wind load, and other criteria?
Electrical

123. Are all elements of the single-line drawings shown in the estimate?
Are starter-sizes, horsepowers, and voltage levels correct? Is there an
emergency power supply or UPS?
124. Are requirements for area classifications properly reflected?
125. Review the method by which conduit and wire quantities were
developed. Were thermocouples, alarm points, and other electrical or
electronic instruments included? Review the number of power and
control circuits versus the motor list. Is lighting wire and conduit
based on a fixture count? Is this count reasonable?
126. Make sure there are no gaps between plants. Where does the client or
utility company work stop and the contractor’s work begin?
127. Is the number of welding outlets shown in the estimate consistent with
the specs?

Cost Estimating Manual
April 1995

Page A-11

Appendix A: Estimating Checklists

Buildings

128. Are the building plan areas correct? Are these multi-floor buildings?
129. Will the central control room include offices, laboratories,
lunchrooms, training rooms, battery rooms, computer rooms,
conference rooms, toilet facilities, change rooms, shower facilities,
etc.? Will the existing control room be modified?
130. Is every building shown, e.g., the gate house?
131. Are architectural requirements and building services, e.g., interior
partitions, heating and ventilating, toilets, shop equipment, laboratory
equipment, office equipment and furniture, etc., properly included in
the estimate?
132. Does the estimate reflect the capital costs for utilities, maintenance
items, and other building services?

Site Development

133. Is the site clear, level, and free of structures or any items that may
require dismantling?
134. Will degrubbing be required?
135. Check cut and fill quantities.
136. What is the composition of the excavation material? Can it be used for
fill? If not, how will it be disposed of? Are the costs included?
137. Make sure that roads and surfaced areas are included, if specified. Is
the total area of paving consistent with individual plant plot plans?
138. Is any new or upgraded bridge work required?
139. Is there adequate parking? Will new paved parking areas be added?
140. Check the fencing quantity.
141. Review the number of drain hubs, septic tanks, and other key items of
the drainage systems.
142. Are tank dikes included?
143. Are landscaping and/or restoration requirements included?

Painting & Insulation

144. Are the painting and insulation requirements defined?
145. Is surface preparation included in the estimate? How much will be
accomplished in the vendor/fabricator shops?
146. Does the estimate reflect the paint type, surface area, and number of
coats required?
147. Do line tables and P&IDs reflect the extent of insulation?

Cost Estimating Manual
Page A-12

April 1995

Estimating Checklist

148. Does the estimate list all known insulation sizes and specs? Do
quantities for those sizes and specs which are easily checked look
reasonable? Have appropriate fitting factors been included?
149. Is insulation for personnel protection included?
150. Is each piece of equipment requiring insulation listed? Review against
P&IDs and the Equipment List.
Marine Facilities

Presentation

151. Is there a requirement to use tug or tow boats?
152. Will there be work done to modify the wharf or dock? Buoys? Riprap?
153. Will dredging be required?
154. Are new loading arms included? Are lines included to service these
loading arms?
155. Is there a list of assumptions, and is the client aware of the major
estimate assumptions?
156. Was an objective schedule prepared for use in the presentation? Is the
escalation calculation consistent with this schedule?
157. Is there a summary of key quantities?
158. What is the status of design engineering?
159. Was a reconciliation prepared?
160. Has the estimate been adequately reviewed? Who are the reviewers?
161. Is contingency included in the estimate? How was it developed? Was
the process for developing contingency both reasonable and
appropriate?

Cost Estimating Manual
April 1995

Page A-13

Appendix A: Estimating Checklists

Attachment 1: Utility and Offplot Plant Considerations
In addition to the process plants, consider these items:
control room/computer (DCS)
lube oil
fuel oil
fuel gas
process plant pipeway
relief and blowdown system
tankage
interconnecting offplot piping
wharf and rundown lines
truck and tank car facilities
material handling facilities
electrical distribution
steam generation
boiler feedwater
demineralized water
plant air
instrument air
nitrogen
cooling water facilities

potable water
firewater system
process water
demineralized water
sewers
segregated drainage
effluent treatment
inert gas generation
raw water treatment
site development
landscaping
general purpose buildings
mobile equipment
catalyst and chemicals
pilot plant
royalties and consultants
telephone lines

Cost Estimating Manual
Page A-14

April 1995

Attachment 2: Foreign Estimate Considerations

Attachment 2: Foreign Estimate Considerations
Freight & Transportation

freight forwarding
brokerage fee
ocean freight
containerization
export packing
inland freight
air freight
lightering/barging
stevedoring
marshalling yards
duties and clearance costs
warehousing
pilferage
demurrage
port charges
customs delays

expatriate schooling
operating personnel
minimum period of engagement
hotels and temporary accommodations
Construction

construction methods
modularized construction
additional security
construction equipment availability
trucks/autos
equipment maintenance
labor productivity
payroll benefits
local customs and practices
requirements to use local material
community relations
medical facilities

Camps and Catering

camp buildings
camp utilities
camp infrastructure
catering
catering personnel
camp operating personnel
medical facilities
camp transportation
camp maintenance
recreation
Staffing

expatriate/national/third country
single/family status
foreign service premiums
temporary status premiums
holidays/fringe benefits

Other Cost Items

world-wide procurement
import restrictions
future exchange rates
local escalation
procurement offices
additional travel
additional insurance
additional legal
local law
additional accounting/banking
design differences
local permit costs
exchange rate protection
costs of financing
gratuities

Cost Estimating Manual
April 1995

Page A-15

Appendix A: Estimating Checklists

Attachment 3: Technical Services Considerations
royalties and licenses
obtaining permits
(building, environmental)
any purchased permit (emissions)
offsets
any proposed contractor incentives
land or right-of-way expenses
technical support requirements
office communications
overhead capitalization charges
(G & A) (domestic projects)
surveys
A/R preparation and pre-A/R studies
temporary assignments
hiring and mobilization
moving Company personnel to
site/contractor’s offices
additional benefits

office automation and CAD/CAE
travel expenses
heavy travel costs for inspection if
foreign equipment is purchased
modeling of the facilities
consultants
local assistance
quality assurance costs
records management
punch lists and follow-up work
operator manuals/training equipment
operator and mechanic training
close-out reports
follow-up to startup and technical
assistance
other special charges

Cost Estimating Manual
Page A-16

April 1995

Appendix B
Process Licensors’ Sales Factors
Sales Or Business Development Estimates By
Licensors Of Proprietary Processes
Factors Behind
Low Estimates

Licensors of proprietary processes often provide sales or business development estimates that are lower than the actual cost of a plant that meets
Chevron requirements. One reason is that the estimates omit the Company
(owner) costs. Other factors that contribute to low estimates are listed next.
Operability

No allowance for operating flexibility. Equipment and systems are
designed for normal (nominal) operating pressures, temperatures, and
flow rates. Any deviation from the design feed-stock qualities may
cause a decrease in the plant’s capacity.
Examples include tight sizing of pumps and motors (horsepower),
pressure vessels (capacity or flow cross-section), exchangers (area),
fired heaters (duty), and relief valves set close to operating pressures.
Minimal instrumentation and control with a large proportion of field
(local) controllers and control panels and fewer alarms.
Poor accessibility. Accessibility to instruments (no platforms) and
valves (not at grade) is limited or lacking.
No additional piping. No piping exists to ease startup or shutdown of
the plant (bypasses, pumpout lines, permanent steamout connections,
additional vents and drains).
Maintainability

Tight equipment spacing and accessibility.
Fewer manways in columns, fewer permanent maintenance platforms.
No spare parts.
Exchanger bundles not removable (fixed tube-sheet design or
restricted access).
Area paving (if any) is thin and requires mats to support mobile
maintenance equipment.

Cost Estimating Manual
April 1995

Page B-1

Appendix B: Process Licensors’ Sales Factors

Reliability

Less corrosion resistance (lesser metallurgy, lower corrosion allowances)
Fewer damage-resistant materials (more use of cast iron or plastics)
Less passive fire protection (tight or poor plant layout and equipment
spacing; no fireproofing of structural steel or critical instrument runs)
No installed spare pumps
No turbines for operating during power failures (motors only)
No winterizing (if applicable)
Utilities and Support Facilities

No onplot relief drum and pump
Substandard fire protection facilities (water system, monitors, hose
reels, chemical extinguishers)
No electric transformers or breakers (electrical system starts with
motor controllers)
Dual fuel piping (both gas and oil) not provided for fired equipment
No break tanks for freshwater connections to process
Fewer steam traps
Single sewer system (rather than segregated storm water, oily water,
or chemical sewers)
Inadequate sizing of sewer for firewater flow
Substandard safety design (safety showers, eyewash facilities,
insulation for personnel protection, platform design, etc.)
Miscellaneous

Not energy-efficient (limited insulation, no heat or power recovery,
low-efficiency motors)
No piling
No earthquake or wind design
No product cooling
Cost not site-specific (may be US Gulf Coast cost)
No sales taxes included
No startup technical assistance included
No construction utilities
No permits, fees, or royalties included
Contractor’s profit excluded
Because of these factors, you should increase the licensor’s estimate to
make it suitable for use within Chevron. Historically, this adjustment has
been 40-70 percent; however, you should evaluate each case individually
to determine the appropriate amount of adjustment to apply.
Cost Estimating Manual
Page B-2

April 1995

Appendix C
Code of Accounts (EG-2757-E)
SPECIFICATION NO. EG-2757-E
DEFINITION OF ITEMS ON ACCOUNTING ITEM LISTS
1. INTRODUCTION
This Specification is to be used as a guide in preparing project accounting
item lists and to assist engineers, accountants, field personnel, and
contractors to consistently break down project costs and assign item
numbers.
Use this specification in conjunction with the Chevron owners
"List-G" (Opco accounting fixed asset detail requirement).
2. ITEM LIST STRUCTURE
Project Accounting item lists are for use by Chevron and their major
contractors. The final costs should be accumulated in such a way that the
source contractor and Chevron entity can be identified. The item list is
segregated into the following three primary categories common to all
projects:
Group II - Direct Costs: This category covers the actual installed cost
of materials and equipment. It is divided into “Major Material”
(Classifications C through G and K) covering identifiable units of
equipment (e.g., columns, tanks, furnaces and pumps) and “Minor
Material” (Classifications J and L through S) such as piping, foundations, insulation, electrical power, and lighting.
Group I - Technical Services and Indirect Field Costs: Technical
Services are subdivided into these categories: A-1, design services;
A-2, construction supervision; A-3, other technical services. Indirect
Field Costs are grouped in Category B.
Special Charges: An additional category, "Special Charges," includes
those costs not common to most projects. Such charges are segregated
to avoid distorting the Group I and II cost relationships. Examples include ocean freight, catalyst, royalties, and land and right-of-way cost.

Cost Estimating Manual
April 1995

Page C-1

Appendix C: Code of Accounts (EG-2757-E)

3. ALLOCATION OF GROUP I COSTS
Allocate Group I costs to Group II and to certain Special Charge items
prior to Chevron booking to Fixed Assets. Generally this can be handled
on a dollar ratio basis.
4. CLASSIFICATION OF COSTS
Classify costs accumulated against Group II accounting item numbers as
Material, Labor, or Mixed as defined below:
Material. Covers the actual cost of the material and equipment incorporated into the finished plant, including sales tax and domestic
freight.
Labor. Covers Contractor’s direct labor cost.
Mixed. Covers all costs that are neither true material nor true labor.
Included are purchase order contracts, minor lump sum or unit price
contracts, major contractors’ subcontracted costs, fully-operated construction equipment rentals, and Company shop field costs for work
requested through construction work requisitions.
Classify all costs accumulated against Group I as Mixed.
5. CAPITALIZING VS. EXPENSING
The cost of new construction is normally capitalized. However, some
projects include costs that are non-capital and may be expensed, amortized, or booked as working capital. Primarily, these costs cover alterations and repairs to existing facilities. Pre-operating costs such as training
of operators, catalyst, and chemicals, where the expected life is substantially shorter than life of plant, may be expensed. Payments for equipment
and installation of third party material or facilities, such as electrical substations and telephone cables, are amortized over the life of the project.
Working capital includes such items as non-expensed spare parts for the
warehouse, chemicals stock for production, and consumable catalysts.
Following are examples of each category (details can be found in the
Chevron Uniform Accounting Manual, Policies and Practices 20.20.12).
CAPITAL
Material and labor to install additions to property (real and personal)
Removal of any obstructions on the site
Hazardous waste excavation
Writing operation manuals
Labor to start up plant (including tests)

Cost Estimating Manual
Page C-2

April 1995

Appendix C: Code of Accounts (EG-2757-E)

Royalties for full and unrestricted ownership (paid-up; running
royalties are charged to operating expense)
Environmental Impact studies—design work incorporated in the plant
Environmental Base Line studies and tests
Construction equipment
Cost of transporting construction employees to and from the
work site
Original complement of miscellaneous small equipment items
Damage payment if Chevron receives property or rights
Damage that is ordinary, expected, or relatively small, and is
incidental to construction
Initial charge for catalysts and chemicals
Depreciable standby spare parts—long order time and those required
to operate plant (see Chevron’s UAM 20.20.33)
Feasibility studies for a project—costs of options used only
EXPENSE
Dismantling
Haul and disposal of hazardous material
Environmental Impact studies—design work not incorporated in the
plant
Operator and maintenance personnel—training and recruiting
Moving costs for permanent plant personnel, even when moved during
construction
Relocation of lines and facilities if no change in capacity or life
Minor Spare Parts for warehouse (generally under $100; see Chevron
UAM 20.10.20)
Damage or loss of Chevron property or payments to outside parties
due to unforeseen causes, for which the Company receives nothing
serviceable (property)
Catalysts of low cost consumed within a few days and with virtually
no recoverable value after initial charge
Feasibility study costs for options not used
AMORTIZE
Third party improvements with ownership given to others (roads,
substations, schools, fire equipment, etc.)
Royalties with restricted ownership

Cost Estimating Manual
April 1995

Page C-3

Appendix C: Code of Accounts (EG-2757-E)

WORKING CAPITAL
Major Spare Parts for warehouse stock (for inventory, generally over
$100 and not qualified for Depreciable Standby Spares; see UAM
20.10.20)
Chemicals stock for production (inventory)
Consumable catalyst stock for production (inventory)
REFERENCE
Chevron Uniform Accounting Manual Policies & Practices:
- 20.10.20 Inventories—Materials and Supplies
- 20.20.10 PP&E Minimum Capitalization Limits
- 20.20.12 PP&E Capital vs. Expense
- 20.20.33 PP&E Depreciable Standby Equipment
- 20.80.15 Accounting for Catalyst costs
6. ACCOUNTING ITEM LIST NUMBERS AND DEFINITIONS
Projects often require special cost breakdowns that are independent of the
material and labor classifications. To assist in reporting for these requirements, use an item prefix for final cost reporting (making a three-character
item code). Following is a sample table:
I - Indirect (Group I) Capital not part of classified category
D - Direct (Group II) Capital not part of classified category
E - Environmental Direct (Group II) Capital
W - Working Capital Costs (spare parts and production inventories)
S - Special Charges Direct Capital
T - Temporary Construction Material
A - Amortized Costs
X - Expensed Costs
B - Bond Issue or special tax consideration Direct Capital
Sample Code:
EC1 - Columns relating to environmental work
TQ2 - Temporary Sheet Piles during construction

Cost Estimating Manual
Page C-4

April 1995

Appendix C: Code of Accounts (EG-2757-E)

GROUP II - DIRECT COSTS
Major Material
Covers material classifications C through G and K. Maintain material
costs separately for each identifiable unit of equipment and project area
even though they are grouped under a single item number. Includes all
other laid-down cost of the material or equipment including sales and/or
use taxes, domestic freight, all loading, unloading, and transportation at
the plant site plus the cost of setting in position, grouting, tying in, testing,
and any other work performed on the material or equipment itself.
Item
No.
Item Definition
C - COLUMNS, REACTORS, DRUMS, AND VESSELS
C1 Columns, Reactors, Drums, and Vessels. Covers material and supplierfurnished or subcontracted shop- or field-fabricated columns, reactors, drums, vessels, contactors, strippers, and absorbers including
internals and packing. Material includes the cost of equipment plus
normal freight and taxes. Also includes costs for used equipment
purchased for reclamation or other plants and altered or repaired for
new service. Labor includes handling from storage site, unloading,
erection, mounting, installation of loose internals, testing, and any
field fabrication including lining and heading up. Excludes charges
for stairs and platforms not supplied with equipment, external
insulation, fireproofing, foundations, painting, catalyst, and external
piping.

D1

E1

D-TANKS
Storage Tanks (Atmospheric or Pressure). Materials, cost of tank as
delivered to job site, and all field fabrication provided by supplier’s
Purchase Order contracts including labor, handling from storage site,
unloading, erection, field fabrication, heading up, and hydrotesting.
Excludes (whether shop-fabricated or field-erected) foundations,
piling, grading, earthen firewalls, insulation, and painting.
E - HEAT EXCHANGERS AND COOLING TOWERS
Air Coolers. Includes material as delivered to job site. Labor includes
cost of handling from storage or unloading at site, erection, grouting,
any field assembly, final heading up, and hydrostatic testing.
Excludes costs defined under Minor Material.

Cost Estimating Manual
April 1995

Page C-5

Appendix C: Code of Accounts (EG-2757-E)

E2

E3

F1

F2

G1

K1

Heat Exchangers. Includes test rings, jigs, and spare gaskets. Also
includes unfired reboilers, steam generators, condensers, tank
heaters, and other types of exchangers not covered by Items E1 or
E3. Includes material as delivered at job site. Labor includes cost of
handling from storage or unloading at site, erection, grouting, any
field fabrication, internals, final heading up, and hydrostatic testing.
Excludes costs defined under Minor Materials.
Cooling Towers. Includes material as delivered to job site, plus
erection of unit including fans and drivers, controls and alarms, and
internal piping. Excludes external piping, pumps and drivers, tower
basin.
F - FURNACES, BOILERS, INCINERATORS, AND FLARE STACKS
Fired Equipment Including Furnaces, Boilers, Kilns, Flare Stacks,
Boiler Stacks, and Flues. Includes equipment materials and internal
insulation or refractory as delivered to the job site. Labor charges
cover handling from storage, unloading and erection, including brickwork, coils, ladders and platforms (if supplied with unit), stacks and
flues (if supplied with unit), internal steam piping baffles, ducts, fire
boxes, burners, and hydrostatic testing. Excludes painting and
foundations.
Incinerators Same as Item F1, but with reference to incinerators.
G - PUMPS (Including Drivers)
Pumps. Material includes pumps, drivers, and hydraulic turbines as
delivered to the job site. Labor includes handling from storage,
unloading, setting, grouting, alignment, packing, connecting or
installation of the coupling, and servicing. Excludes foundations,
painting, and external piping.
K - MECHANICAL EQUIPMENT
Compressors, Blowers, Fans, Mixers, Centrifuges, Filters, Rotary
Driers, Emergency Power Generators, Solids Handling Equipment
(conveyors, elevators, crushers, cranes, derricks, hoists and davits),
Scrapers and Skimmers (for separators). Material includes drivers
and other auxiliary components such as drums, exchangers, pumps,
etc., supplied with the unit as delivered to the job site. Labor includes
handling from storage, unloading, erection on the foundation,
grouting and alignment, field assembly to complete an integral unit,
and testing. Excludes foundations, insulation, and painting.

Cost Estimating Manual
Page C-6

April 1995

Appendix C: Code of Accounts (EG-2757-E)

K2

Other Mechanical Equipment (such as ejectors, injectors, diffusers,
etc., not included in the above items).
Refrigeration and Air Conditioning Units (including auxiliary equipment and chemical injection units).
Weighing Equipment (truck and tank car scales, etc.).
Marine Loading Facilities (including hose masts, hoists, power
capstans, and cargo hose and hose fittings).
Elevators for buildings

Minor Material
Covers material classifications J and L through S. Sometimes referred to
as Bulk Material.

J1

J2

L1

J - INSTRUMENTATION
Field Instrumentation. Cost of labor and material plus taxes as
delivered to the job site; plus supplier technical service including
field installed meters, gages, transmitters, receivers, orifice plates,
d/P cells, float chambers, thermocouples, resistance temperature
detectors, etc. Also includes field controllers, field-mounted control
panels, main control panel instrumentation, analyzers, bulk material
and hardware, control and relief valves. Bulk purchased instrumentation materials include connecting hardware such as tubing, fittings,
tubing trays, instrumentation conduit and wire if this material can be
separated from electrical (Item P1). Usually excludes process control
computers (refer to Item J2).
Process Control or Monitoring Computers. Includes material or rental
charges and supplier-provided or subcontracted technical service to
install and test computers. Includes control panel or remote mounted
computer consoles. Does not include input/output instrument and
electrical connections (included in Item J1).
L - PIPING
Direct Plant Purchase Piping Material. Includes pipe, valves, fittings,
steam tracing materials, duct work, and individual pipe hangers or
supports as delivered to the job site. Excludes pipeway stanchions,
insulation, painting, sewer piping (Item S7), shop-fabricated spools
including direct purchase material (Item L2), control valves, instrumentation material and hardware (Item J1), and equipment rental and
consumable supplies associated with pipe welding. Fire protection

Cost Estimating Manual
April 1995

Page C-7

Appendix C: Code of Accounts (EG-2757-E)

piping (Item L3) is normally carried as part of this account for
project control purposes and broken out separately at end-of-project
for tax purposes.
L2 Shop Fabricated Pipe Spools. Includes material and labor for shopfabricated spools. Excludes field-fabricated pipe spools (Item L1).
L3 Fire Protection Piping. This item includes all material required to install
fire protection and fireloop lines, including water, steam smothering
and foam lines, hydrants and manifolds. Excludes fire protection
equipment such as hoses, hose boxes, reels, nozzles, etc. (see Item
S1), insulation, and painting.
M - STEEL AND ABOVE-GRADE CONCRETE STRUCTURE
M1 Equipment Support Structures, Pipeways, Platforms, Ladders,
Walkways, and Stairs. Material includes structures, pipeway support
systems including stanchions and sleepers, etc., as delivered to the
job site. Excludes individual pipe hangers and supports (see Item
L1). Labor includes field assembly of structures and platforms, etc.
Excludes platforms, stairways, and handrails supplied with the
equipment (e.g., platforms that are an integral part of a furnace
frame, stairs supplied by tank fabricators, or clips supplied with
columns and vessels for insulation support).
M2 Bridges. Similar to M1 but with reference to bridges.
M3 Tank Truck and/or Tank Car Loading Racks. Similar to Item M1 but
with reference to loading racks.
M4 Marine Structures. Material and labor includes docks or wharfs,
mooring buoys and other marine loading and unloading structures
including support piling and railings. Excludes marine loading
equipment such as pumps, power capstans, hose masts, hoists, and
cargo hose.

N1

N2

N - INSULATION
Insulation of Equipment & Piping. Covers labor and material for
insulation of equipment and piping. Includes studs, clips, wire, and
other insulation material such as weather coating. Excludes furnace
insulation and electrical insulation.
Fireproofing. Includes concrete and other fireproofing materials as
applied to vessel skirts and structural members.

Cost Estimating Manual
Page C-8

April 1995

Appendix C: Code of Accounts (EG-2757-E)

P1

P2

Q1

Q2
Q3

R1

R2
R3

P - POWER AND LIGHTING
Electrical Bulk Materials. Material includes conduit, wire, cable, small
fittings, pole lines, etc. Includes instrumentation wire and conduit to
the extent that these items are not purchased separately. Also includes
miscellaneous electrical material for lighting, communications,
cathodic protection, and instrumentation.
Labor includes erection of poles and installation of pole lines hardware, installation of conduit (including excavation, concrete work,
and backfilling), pulling and connecting of wires and cables, taping
and testing, etc.
Engineered Electrical Equipment. Material and supplier-provided or
subcontracted technical service for engineered electrical equipment
including power transformers, service switchgear, motor control
centers, motor starters, panel boards, uninterruptable power supply
systems, batteries, etc.
Labor includes handling from storage, unloading, erection on prepared
foundations, grouting, alignment, and assembly of components.
Q - FOUNDATIONS AND SUBGRADE CONCRETE STRUCTURES
Foundations. Material charges cover concrete rebar, anchor bolts, etc.,
as delivered to the job site. Labor includes excavation, erection of
forms, laying reinforcing steel, setting anchor bolts, and backfilling.
Excludes piling, form lumber, base plates, and earth foundations for
tankage.
Piling. Includes piles as delivered to the job site and pile driving.
Subgrade Concrete Structures. Same as Item Q1, but with reference to
subgrade concrete structures such as cooling tower basins, concrete
pipe trenches and valve pits, retaining walls, and truck and tank car
scale pits.
R - BUILDINGS (INCLUDING SHELTERS)
Furniture and Office Equipment. Covers furniture and equipment as
delivered to job site, and labor to set it down in its permanent
location.
Laboratory and Shop Equipment. Same as Item R1, but with reference
to shop tools and laboratory equipment.
Buildings. Includes foundations and/or floor slab, all structural components, lighting and lighting fixtures, plumbing, ventilation, heating
equipment, built-in fixtures, and painting. Excludes furniture, lab

Cost Estimating Manual
April 1995

Page C-9

Appendix C: Code of Accounts (EG-2757-E)

equipment, and process-related equipment housed inside buildings,
such as instrument panels or computers.
Major building projects will include a complete breakdown according
to the Construction Specifications Institute (CSI) code of accounts
(see Appendix D).

S1

S2
S3

S4

S5

S6
S7

S8

S- SITE IMPROVEMENT AND MISCELLANEOUS
Fire Protection, First Aid, and Safety Equipment. Material includes
fire blankets, hoses and fittings, hose boxes, foam applicators, and
other fire extinguishers or portable fire protection equipment. Labor
includes installing hose and hose boxes and mounting portable fire
protection equipment in its assigned location. Excludes piping,
valves and hydrants (see Item L3), and chemicals.
Fencing. Includes labor and material for all permanent fencing and gates.
Earthwork clearing, rough grading, filling, earth reservoirs, and firewalls). Cost includes equipment with operators, labor, and material to
clear site and grade to the required elevation. Also includes permanent unimproved roads, earthen firewalls, railroad subgrades, and
reservoirs. Excludes temporary access roads.
NOTE: Assign large grading and filling jobs that add available acreage
to plant sites to “Land” account instead of to "Plant."
Roads, Parking Lots, and Paving (including finish grading, associated
culvert, gutters, and curbs). Includes material and labor for paved
roads, parking areas, plant areas, and low stairways forming a part of
a walk system. Excludes unimproved roads and curbs acting as
firewalls (Item S3), dressings of tank foundations (Item Q1) and
temporary access roads (Item 36).
Separators, Settling Basins, Sludge Pits, Sumps and Associated Weirs,
Baffles, and Spillways. Includes material and labor for concrete and
structural materials, excavation, installation, backfill, etc.
Painting. Includes paint, primer, weather coating, and labor to paint
constructed facilities. Excludes painting of buildings (see Section R).
Sewers (oil and sanitary) and Storm Drain. Materials include pipe,
concrete material, reinforcing steel, etc. Labor includes laying of pipe
and fittings, excavation, backfilling, etc.
Railroad Spur Trackage. Materials include rails, switches, bumpers,
spikes, ties, road bed material, signals, etc. Labor includes complete
installation of these materials.

Cost Estimating Manual
Page C-10

April 1995

Appendix C: Code of Accounts (EG-2757-E)

GROUP I - TECHNICAL SERVICES AND INDIRECT FIELD COSTS
A - Technical services
Covers divisions A1, A2, and A3. On multiple-plant projects, such items
as project management, project administration, and construction supervision normally are collected in a prorate plant and distributed to
individual plants at the end of the project.
Item
No.
Item Definition
A1 - DESIGN SERVICES
00 Preliminary Studies and Estimates. Includes cost of preliminary studies
and estimates prior to project authorization.
01 Engineering, Drafting, and Design Representative. Covers Home
Office engineering, drafting, and assistance costs. Also includes costs
of design representatives when a plant is designed by a contractor
and is assigned to the contractor’s offices. Excludes project
administration (Item 02).
02 Project Administration. Includes costs of Project Manager, cost
engineer, and staff assistants.
04 Clerical Services and Miscellaneous Charges. Includes all clerical
and computer services, telephone and telegraph, auto rental, etc.,
associated with the performance of designs, issuance of construction
drawings, and preparation of Project Record Books. Excludes similar
expenses associated with Company field construction office and fieldassigned personnel (Items 50 through 55), or startup (Item 92). Also
excludes travel costs and expenses of personnel (Item 05).
05 Travel Costs and Expenses. For all project personnel.
06 Moving/TDA/TFA. Includes all costs to place Company personnel
on a temporary assignment. Only those costs that must be reported
for possible Tax Equalization.
07 Environmental Impact Studies. Includes Company personnel or
contracted services required to provide information to government
agencies and the Public on projects that may be environmentally
sensitive. That portion of the cost associated with facility design or
layout, which is incorporated in the design of the plant, i.e., work
ordinarily performed on a project, should be capitalized. All other
costs should be expensed. The split between capital and expense
costs may be based on an engineering estimate.

Cost Estimating Manual
April 1995

Page C-11

Appendix C: Code of Accounts (EG-2757-E)

10

11

12
13

21
24

25

26

A2 - COMPANY CONSTRUCTION SUPERVISION AND
INSPECTION
Company Construction Supervision, Inspection, and Field
Engineering. Includes cost of Company’s construction manager,
engineers, engineering assistants, and inspectors who administer,
supervise, and inspect field construction work. Excludes construction
office manager, accounting, and clerical personnel assigned to the
construction office (Item 50); construction office equipment, furni
ture, supplies, and expenses (Item 51 and 52); and travel costs and
expenses (see Item 05).
Contracted Field Inspection. Includes radiographic inspection, con
crete inspection, quantity checking, etc. Also includes site surveying
needed by the construction office beyond that performed by
individual contractors in the course of their work.
Field Office Support—Safety. Includes cost of safety team, meetings,
material, and awards.
Project Team Building/Training. Includes cost of team-building
meetings, functions, and material.
A3 - OTHER TECHNICAL SERVICES
Health, Environmental, and Loss Prevention. Includes charges by
HE&LP Dept. for consulting to the project.
Soil Investigation, Hydrostatic Surveys, and Marine Surveys. Includes
cost for preconstruction investigations and analysis of surveys at the
job site.
Quality Assurance. Includes charges by Purchasing Department and its
contracted agencies for inspecting and/or expediting purchased
equipment and materials.
Purchasing Services. Includes charges by Purchasing Department for
purchasing equipment and materials.
B - Indirect Field Costs
Includes those costs which cannot readily be allocated to Direct Cost
Items (Group II). For multi-plant contracts, charges are accumulated
against a single plant. Company will then prorate these costs at the
end of the project.

Cost Estimating Manual
Page C-12

April 1995

Appendix C: Code of Accounts (EG-2757-E)

32

33

35

36

Contractors Payroll Taxes, Insurance, and Benefits (Craft). Includes
payroll taxes and insurance (Workers Comp., OASDI, MEDCARETX,
SUI, FUI), builders risk insurance, union fringe benefits, health and
welfare pension funds, retirement plans, etc. paid by contractor.
Excludes wages and other direct labor costs subject to payroll taxes.
At completion of job, accumulated costs are to be prorated and
included in contractors’ direct labor costs.
Construction Equipment Rental and Expenses. Includes rental cost of
contractor’s owned or rented construction equipment, such as
welding machines, cranes, earth-moving machines, etc., and labor or
materials for normal maintenance and repairs. Excludes labor for
operators, oilers, riggers, etc. Operating labor costs not included in
the rental rate are charged to the appropriate Group II category
equipment Item for which the construction equipment is employed.
Consumable Tool and Construction Supplies, Including Staging and
Form Lumber and Utilities Used During Construction.
Consumable Tool Supplies include costs for items of an expendable
nature such as drills and compass saw blades, which are consumed in
normal usage. Includes furnishing, maintaining, or repairing of hand
and small power tools and all labor and materials necessary to
operate the tool room and distribute the tools. Excludes normal tool
or tool equipment rental lists supplied by contractors.
Staging and Form Lumber includes cost of all staging and form lumber
used for cribbing and foundation and concrete pours. Excludes labor
for fabricating or erecting staging and forms. Labor shall be charged
directly against the appropriate Group II item.
Utilities Used During Construction include temporary air, water, gas,
electrical power and lighting, and telephone services supplied by
either the Company or by a utility company. Excludes the cost of
installing the temporary facilities required to bring the utilities to the
job site (Item 36).
Temporary Lines, Facilities, and Cleanup. Includes installing all
temporary lines, fills, fencing, and access roads required during
construction by either Company or contractors. Includes removal of
these temporary facilities and cleaning up the job site during and
after construction. Excludes temporary shoring, which is charged
against the appropriate Group II item (such as sewers or buried lines)
incorporated in the final plant; the cost of cleanup encountered in
altering or repairing individual equipment, returning material to
storage, stripping concrete forms, temporary buildings (Item 39), or
similar work that can be charged directly to other Group II items.
Cost Estimating Manual

April 1995

Page C-13

Appendix C: Code of Accounts (EG-2757-E)

39

44

48

49

50

51

52

54

Temporary Buildings. Includes labor and materials to install temporary
buildings. This includes purchase and/or rental of the Construction
Office trailers and portable buildings. At the end of project, buildings
that are not torn down or removed should be reported as a Plant
Addition, and not included within the prorate accounts and
distributed to Plants.
Fire Watch, Gas Testing, Guard Service, Safety Operators. Includes
charges for Company fire and safety inspectors and Company or
contracted guard service required during construction for the welfare,
safety, and protection of plant and construction personnel and
property.
Tax Accrual (Use Tax). Sales and Use Tax that Chevron accrues and
pays versus that paid to the vendors or contractors. At completion of
job, accumulated costs are to be prorated and included in applicable
direct material costs.
Project Accruals (Prior to Final Cost Reporting). Costs for the project
that have not been paid, but the project wants to recognize. This is a
Prior-to-Final-Cost-Reporting expenditure category only, with no
budgets or commitments.
Field Construction Office Manager, Field Accountants and Clerks.
Includes labor charges for field construction office manager, field
accountants, and clerks (including agency personnel). Excludes labor
for construction supervision and inspection (Item 10), field office
expenses (Item 51), travel costs, and personnel expenses of Company
construction office personnel (Item 05), construction office auto
motive equipment and expenses (Item 54), time and expenses of
Company field personnel assisting in project startup (Item 92), and
Purchased office equipment (Item 52).
Field Construction Office Expense. Includes office expenses such as
supplies, rental of office equipment, telephone, telegraph, local
permits, miscellaneous filing fees, etc.
Construction Office Furnishings and Equipment. Includes purchase
of office equipment such as adding machines, desks, blueprint
machines, etc.
Rented or Company-Supplied Construction Office Automotive
Equipment and Expenses. Includes vehicles assigned to the construction office and related operational and maintenance expenses supplied
by Transportation Department or leased. Excludes purchased automobiles (Item 55).

Cost Estimating Manual
Page C-14

April 1995

Appendix C: Code of Accounts (EG-2757-E)

55

Newly Purchased Construction Automotive Equipment. Includes
purchase of new cars or construction equipment such as pickup
trucks, lift trucks, cranes, dump trucks, etc. At the end of the Project,
if the equipment purchased is turned over to the Operating Company
rather than sold, it will be transferred to Item 82, "Maintenance
Equipment Purchased for Operation." All remaining cost will be
prorated to Plant accounts.

SPECIAL CHARGES
The following charges cover costs unique to specific plants or projects.
For cost analysis purposes, these costs are not included in either Group I
or Group II.
Item
No.
Item Definition
T - CATALYST AND CHEMICALS
T1 Catalyst. Includes material and labor for loading the initial charge of
catalyst only. Capitalize catalysts containing platinum or other
valuable recoverable materials. Designate all other catalysts as
pre-operating expenses.
T2 Chemicals. Same as Item T1 (pre-operating expense).

U8

U - ALTERATIONS, DISMANTLING, AND REPAIRS
Alteration, Relocation, Repairs, and Dismantling
Alterations, Relocation
Includes relocation of existing equipment when such work does not
materially increase the value or prolong the life of the equipment.
This cost is expensed. Excludes alterations that change the service or
materially increase the life, usefulness, or capacity of existing equipment; such work is included with modification to existing equipment
Group II accounts and capitalized.
Repairs
Includes labor and minor materials to restore equipment to efficient
operation conditions. Examples are the replacement of corroded or
damaged lining in a column, the replacement of burned tubes or
damaged refractory in a furnace, and the repacking or regasketing of
a pump. Such charges are expensed. Excludes replacement of major
equipment units or parts thereof and repairs to new equipment due to
damage during shipment or construction; these costs are included
within the Group II accounts and capitalized.

Cost Estimating Manual
April 1995

Page C-15

Appendix C: Code of Accounts (EG-2757-E)

Dismantling
Includes all charges for dismantling facilities. Such charges are expensed.
CONTRACT SUSPENSE (Prior to Final Cost Reporting)
6A-Z Construction Contract Suspense. Includes cost of major contracts
where costs are not defined to individual accounting Item numbers.
At end of contract, contractors will provide accounting breakdown
enabling the cost to be spread to individual Item numbers, clearing
this account.
7A-Z Design Contract Suspense. Includes cost of major contracts where
costs are not defined to individual accounting Item numbers. At end of
contract, contractors will provide accounting breakdown enabling the
cost to be spread to individual Item numbers, clearing this account.

73

75

76

77

38

80

LAND AND RIGHT-OF-WAY
Land and Right-of-Way Acquisition. Includes payment to landowners
for land purchased for new construction, damages resulting from
construction, and costs by Land and Right-of-Way Department
personnel and legal services.
SPECIAL MATERIAL HANDLING COSTS
Ocean Freight. Includes export packing and boxing, shipping agent
fees, transportation charges from port to port, and insurance on ocean
freight. Also includes air freight to foreign job sites. Excludes local
freight charges.
Local Transportation and Dock to Job Site Material Handling.
Including barging, trucking, and other transportation from foreign
port to job site.
Import Costs. Includes consular fees, special inspection, fiscal stamps,
duties, and brokerage fees.
MISCELLANEOUS
Capitalized H.O. Overhead. This charge is a prorate charge to the
project to recover the cost of administration relating to new
construction.
Spare Parts. This account is used only when the project is to purchase
maintenance material for operations to meet the increase in inventory
generated by the appropriation. All cost is to be transferred to

Cost Estimating Manual
Page C-16

April 1995

Appendix C: Code of Accounts (EG-2757-E)

81
82

83

84
86
90

91
92

95

97

98

operations inventory account and not applied to the appropriation.
Excludes depreciable standby equipment (Item 81).
Depreciable Standby Equipment. Includes cost of long delivery spare
parts in lieu of in-plant spare equipment (capitalized).
Maintenance Equipment Purchased for Operation. Includes initial
equipment for new facility maintenance, such as snowmobiles, fork
lift trucks, tube bundle extractors, etc.
Royalties, Patent Licenses, and Fees. Includes pre-operating payments
made for full and unrestricted ownership Royalties, Patent Licenses,
and Fees before the plant being constructed goes into commercial
operation. Other Royalties, Patent Licenses, and Fees are expensed.
Permits/Fees. Includes cost for permits of new construction. Excludes
miscellaneous filing fees (Item 51).
Special Taxes. This item is for taxes other than Sales and Use Tax.
Training of Operators (Expenses). Includes initial training of operators
limited to a relatively short period prior to charging stock to the
particular plant.
Training of Mechanics (Expense). Requires the same conditions as
Item 90.
Vendor Assistance/Other Startup. Final, minor changes required for
operation following mechanical acceptance. Includes Operating
Company, Chevron Research and Technology Co., Vendor, and
Construction Contractor personnel.
Closing Shop Orders. Covers charges for work performed under the
control of the operating organization after plant turnover, but chargeable to the project. Alterations or modifications found desirable
during initial operation are included in this category.
Such costs are normally budgeted and controlled by the operating
organization. For analysis purposes, the total closing shop order cost
is included with Special Charges. Upon completion of work, the
operating organization will initiate transfer of these costs to specific
accounting Item numbers (plant classifications).
Hazardous Waste Disposal. The separate cost to haul and dispose of
hazardous material. Excludes cost to excavate material, part of
S3-Earth Work.
Project Contingency (Prior To Final Cost Reporting). Portion of the
project budget that has not been allocated to a specific use, but the
project wants to recognize. This is a Prior-To-Final-Cost-ReportingBudget-Category only, with no expenditures or commitments.

Cost Estimating Manual
April 1995

Page C-17

Appendix D
Code of Accounts for Buildings Projects
While the code of accounts shown in EG-2757, Appendix C, is unique to
Chevron, the construction industry recognizes a uniform code of accounts
for buildings projects. This code of accounts is sponsored by the
Construction Specifications Institute (CSI).
An extract from this system is shown below. Because the system is also
used for organizing project specifications, some of the subsections are not
applicable to cost accounting. More subdivisions are available if they are
needed for a specific project.

01 - GENERAL REQUIREMENTS

01200
01300
01400
01500
01600
01700

Project Meetings
Submittals
Quality Control
Temporary Facilities & Controls
Material & Equipment
Project Closeout

02600
02700
02710
02800
02850
02900
02950

Paving & Surfacing
Site Improvements
Fences & Gates
Landscaping
Railroad Work
Marine Work
Tunneling

02 - SITE WORK

03 - CONCRETE

02010
02100
02110
02200
02210
02220
02240
02250
02300
02350
02400
02500
02550

03100
03150
03200
03300
03350
03360
03370
03400
03500

Subsurface Exploration
Clearing
Demolition
Earthwork
Site Grading
Excavating & Backfilling
Soil Stabilization
Soil Treatment
Pile Foundations
Caissons
Shoring
Site Drainage
Site Utilities

Concrete Formwork
Expansion & Contraction Joints
Concrete Reinforcement
Cast-in-Place Concrete
Specially Finished Concrete
Specially Placed Concrete
Grout
Precast Concrete
Cementitious Decks

04 - MASONRY

04100
04150
04200

Mortar
Masonry Accessories
Unit Masonry

Cost Estimating Manual
April 1995

Page D-1

Appendix D: Code of Accounts for Buildings Projects

04210
04220
04400
04500
04550

Brick Masonry
Concrete Unit Masonry
Stone
Masonry Restoration & Cleaning
Refractories

05 - METALS

05100
05120
05130
05200
05300
05400
05500
05510
05520
05530
05540
05700
05800

Structural Metal Framing
Structural Steel
Structural Aluminum
Metal Joists
Metal Decking
Lightgage Metal Framing
Metal Fabrications
Metal Stairs
Handrails & Railing
Gratings
Castings
Ornamental Metal
Expansion Control

06 - WOOD & PLASTICS

06100
06130
06150
06170
06180
06190
06200
06300
06400
06500

Rough Carpentry
Heavy Timber Construction
Trestles
Prefabricated Structural Wood
Glued-Laminated Construction
Wood Trusses
Finish Carpentry
Wood Treatment
Architectural Woodwork
Prefabricated Structural Plastics

06600

Plastic Fabrications

07 - THERMAL & MOISTURE PROTECTION

07100
07150
07200
07300
07400
07500
07600
07800
07900

Waterproofing
Dampproofing
Insulation
Shingles & Roofing Tiles
Preformed Roofing & Siding
Membrane Roofing
Flashing & Sheet Metal
Roof Accessories
Sealants

08 - DOORS & WINDOWS

08100
08200
08300
08400
08500
08600
08700
08800
08900

Metal Doors & Frames
Wood & Plastic Doors
Special Doors
Entrances & Storefronts
Metal Windows
Wood & Plastic Windows
Hardware & Specialties
Glazing
Window Walls/Curtain Walls

09 - FINISHES

09100
09250
09300
09400
09500
09540
09550
09650

Lath & Plaster
Gypsum Wallboard
Tile
Terrazzo
Acoustical Treatment
Ceiling Suspension Systems
Wood Flooring
Resilient Flooring

Cost Estimating Manual
Page D-2

April 1995

Appendix D: Code of Accounts for Buildings Projects

09680
09700
09760
09800
09900
09950
09970

Carpeting
Special Flooring
Floor Treatment
Special Coatings
Painting
Wall Covering
Prefinished Panels

10 - SPECIALTIES

10100
10150
10200
10240
10260
10270
10280
10290
10300
10350
10400
10450
10500
10530
10550
10600
10650
10670
10700
10750
10800
10900

Chalkboards & Tackboards
Compartments & Cubicles
Louvers & Vents
Grilles & Screens
Wall & Corner Guards
Access Flooring
Specialty Modules
Pest Control
Fireplaces
Flagpoles
Identifying Devices
Pedestrian Control Devices
Lockers
Protective Covers
Postal Specialties
Partitions
Scales
Storage Shelving
Sun Control Devices (Exterior)
Telephone Enclosures
Toilet & Bath Accessories
Wardrobe Specialties

11 - EQUIPMENT

11050
11100
11150
11170
11180
11200
11300
11400
11480
11500
11550
11600
11630
11650
11700
11800
11830
11850
11860
11870
11880
11900
11970
11990

Built-In Maintenance Equipment
Bank & Vault Equipment
Commercial Equipment
Checkroom Equipment
Darkroom Equipment
Ecclesiastical Equipment
Educational Equipment
Food Service Equipment
Vending Equipment
Athletic Equipment
Industrial Equipment
Laboratory Equipment
Laundry Equipment
Library Equipment
Medical Equipment
Mortuary Equipment
Musical Equipment
Parking Equipment
Waste Handling Equipment
Loading Dock Equipment
Detention Equipment
Residential Equipment
Theater & Stage Equipment
Registration Equipment

12 - FURNISHINGS

12100
12300
12500
12550

Artwork
Cabinets & Storage
Window Treatment
Fabrics

Cost Estimating Manual
April 1995

Page D-3

Appendix D: Code of Accounts for Buildings Projects

12600
12670
12700
12800

15 - MECHANICAL

Furniture
Rugs & Mats
Seating
Furnishing Accessories

13 - SPECIAL CONSTRUCTION

13010
13050
13250
13400
13450
13500
13600
13700
13750
13770
13800
13850

Air-Supported Structures
Integrated Assemblies
Clean Room
Incinerators
Insulated Room
Integrated Ceilings
Prefabricated Buildings
Special Purpose Rooms & Buildings
Radiation Protection
Sound & Vibration Control
Vaults
Swimming Pools

14 - CONVEYING SYSTEMS

14100
14200
14300
14400
14500
14550
14570
14600
14700
14800

Dumbwaiters
Elevators
Hoists & Cranes
Lifts
Material Handling Systems
Conveyors & Chutes
Turntables
Moving Stairs & Walks
Pneumatic Tube Systems
Powered Scaffolding

15060
15075
15080
15100
15120
15140
15160
15175
15180
15200

Pipe & Pipe Fittings
Hose
Piping Specialties
Valves & Cocks (Manual)
Control Valves
Pumps
Vibration Isolation & Expansion
Compensation
Tanks
Insulation
Water Supply & Treatment

15300
15400
15500
15600
15630
15650
15660
15670
15680
15690
15700
15770
15780
15800
15810
15820
15835
15840

Waste Water Disposal & Treatment
Plumbing
Fire Protection
Power or Heat Generation
Boilers
Refrigeration
Compressors
Condensing Units
Chillers
Evaporators
Liquid Heat Transfer
Packaged Heating & Cooling
Humidity Control
Air Distribution
Furnaces
Fans
Air Curtains
Ductwork

Cost Estimating Manual
Page D-4

April 1995

Appendix D: Code of Accounts for Buildings Projects

15880
15890
15900
15920
15930
15960
15970

Air Treatment Equipment
Sound Attenuators
Controls & Instrumentation
Control Panels
Primary Control Devices
Recording Devices
Alarm Devices

16 - ELECTRICAL

16110
16120
16140
16150
16160
16190
16200
16300

Raceways
Conductors
Switches & Receptacles
Motors
Motor Starters
Supporting Devices
Power Generation
Power Transmission

16320
16330
16400
16450
16500
16600
16700
16720
16770
16780

Switchgear
Transformer
Service & Distribution
Grounding
Lighting
Special Systems
Communications
Alarm & Detection Equipment
Public Address Equipment
Television Systems

16850
16870
16880
16890
16900
16920

Heating & Cooling
Packaged Room Air Conditioners
Radiant Heater
Electric Heaters
Controls & Instrumentation
Motor Control Center

Cost Estimating Manual
April 1995

Page D-5

Appendix E
Glossary
Abridged Glossary of Cost Estimating Terms
Accuracy The condition of being true, correct, exact; the limits within
which the final cost of a facility should fall if there is no change in scope.
Usually expressed as a percentage of the estimated cost (above and below)
or as a dollar range.
Administrative expense The overhead cost due to non-profit-specific
operations of a company. Generally includes top management salaries and
the costs of legal, central purchasing, traffic, accounting, other staff functions, and their expenses for travel and accommodations.
Allowance A sum of money allotted for a particular purpose; funds or
quantities provided in the estimate or budget for known but undefined
items. Usually distributed to the lowest possible code of accounts. See
also Design allowance for engineered equipment; Material takeoff allowance for bulk materials; Miscellaneous estimate allowances; Wastage
allowance.
Area factor A means of relating costs in other locations to the U.S. West
Coast (San Francisco Bay Area), the basis for many CRTC estimate references. Area factors reflect the differences in material costs (U.S. vs.
foreign), freight, taxes, duties, labor (availability, wage rates, productivity,
overtime needs), engineering (costs, productivity), travel, and climate. See
also Location factor.
A/R estimate An estimate based on completed basic design specifications of sufficient scope to define the project for subsequent detailed
design. Usually prepared to show a breakdown of major cost centers.
Typical uses: Project funding; determining project economics. See also
Control estimate; Preliminary estimate; Screening estimate.
Battery limits Geographic boundaries enclosing a plant or unit established for the purpose of identifying certain portions of the facility.
Generally refers to the processing area and includes process equipment;
excludes facilities such as storage, utilities, administration buildings, or
auxiliary facilities. Within Chevron, the term normally used is onplot.
Bulk material Material bought in lots; generally specific items are not
distinguishable from others in the lot. These items can be purchased from
a standard catalog description and bought in quantity for distribution.
Examples: Pipe (non-spooled), conduit, fittings, and wire.
Cost Estimating Manual
April 1995

Page E-1

Appendix E

Glossary

Burden In construction, the cost of maintaining an office with staff
other than operating personnel. Includes federal, state, and local taxes,
fringe benefits, and other union contract obligations. In manufacturing,
burden sometimes means overhead.
Business climate factor Also called market factor. Adjusts a cost estimate for changes in materials pricing, engineering, or construction
contracting at the time of the project, and any escalation measured by the
appropriate cost index.
Constant dollars Dollars of uniform purchasing power, exclusive of
general inflation or deflation. Constant dollars are tied to a reference year.
Construction cost The sum of all direct and indirect costs inherent in
converting a design plan for material and equipment into a project ready
for startup, but not necessarily in production operation; the sum of field labor, supervision, administration, tools, field office expense, materials, and
equipment.
Construction management Management of the construction process including safety, security, quality control, scheduling, material control, cost
control, contracting activities, operations interface, commissioning, and
project closeout.
Consumables Supplies and materials used up during construction. Includes utilities, fuels and lubricants, welding supplies, workers’ supplies,
medical supplies, and so on.
Contingencies Specific provisions to cover unexpected conditions arising within the project’s defined scope. Particularly important where
previous experience points to situations likely to have an unforeseeable,
cost-increasing event. Contingencies should be lumped together in the
estimate summary and shown as one or more separate line items.
Control estimate Also called definitive estimate. An estimate prepared
from very defined engineering data and specifications, including plot
plans and elevations, piping and instrument diagrams, one-line electrical
diagrams, equipment data sheets and quotations, structural sketches, soil
data and sketches of major foundations, building sketches, and a complete
set of specifications and site requirements. See also A/R estimate; Preliminary estimate; Screening estimate.
Cost estimation An approximate judgment or opinion on value, amount,
size, weight, and so on; an approximate calculation; a means of quantifying and forecasting costs required to construct and equip a facility, to
manufacture goods, or to provide a service. Cost estimation provides the
basis for project management, business planning, budget preparation, and
cost and schedule control. Costs are determined from experience and by

Cost Estimating Manual
Page E-2

April 1995

Appendix E

Glossary

forecasting the cost of resources, methods, and management within a
scheduled time frame. Costs include assessments of risks and uncertainties. See also Estimate.
Cost index A number that relates the cost of an item at a specific time to
the corresponding cost at an arbitrarily specified time in the past.
Current dollars Dollars of purchasing power in which actual prices are
stated, including inflation and deflation. In the absence of inflation or deflation, current dollars equal constant dollars.
De-escalation The process of converting present-day or other costs to
costs at some previous date by applying cost indexes.
Deliverable A physical item—a report or product of one or more tasks—
that satisfies one or more objectives and that must be submitted or turned
over to meet contractual requirements.
Demolition Tearing down all or part of a facility by razing it or smashing it with a wrecking ball. The intent of demolition is most often to
remove material from the site as quickly as possible. The demolished facility has little or no salvage value, but may have scrap value. Risks in
demolition are associated with possible damage to adjacent facilities.
Demurrage A charge made on rail cars, vehicles, or vessels (held by or
for consignor or consignee) for delays due to loading or unloading.
Design allowance for engineered equipment A sum of money added to
the estimate to cover additions to the originally specified equipment,
resulting from design development. Examples: Relocating a nozzle on a
vessel or revising the size of the insulation rings. See also Material takeoff
allowance for bulk materials; Miscellaneous estimate allowances; Wastage
allowance.
Direct cost The cost of installed equipment, material, and labor—items
that are intrinsic in the physical construction of the permanent facility.
Dismantling Taking apart all or part of a facility and removing the
pieces from the site. Salvage value of materials (equipment and scrap
metal) can be high.
Distributables The field portion of a construction project that can be
associated with any specific account. Distributables include field nonmanual staff, field office, office supplies, temporary construction, utilities,
small tools, construction equipment, weather protection, snow removal,
lost time, and labor protection. When completion cost reports are prepared, distributable costs may be spread across direct accounts.
Escalation The provision in actual or estimated costs for time-related
price-level increases in the cost of equipment, materials, labor, and so on.
Includes both real changes and general background inflation.
Cost Estimating Manual
April 1995

Page E-3

Appendix E

Glossary

Estimate An evaluation of all the cost elements of a project or effort as
defined by an agreed-upon scope. Specific types of estimates are based on
the degree of definition. See also A/R estimate; Control estimate; Preliminary estimate; Screening estimate.
Exclusions A series of statements in an estimate package that identifies
specific items not included in the contents of the estimate.
Expense Expenditures of short-term value, including depreciation, as
opposed to land and other fixed capital.
Fee A charge for the use of a contractor’s organization for the period and
to the extent specified in the contract.
Field cost Engineering and construction costs associated with the construction site rather than with the home office. Includes material and
construction labor as well as construction-related indirect costs.
Field labor overhead The sum of the cost of payroll burden, temporary
construction facilities, consumables, field supervision, and construction
tools and equipment.
Fringe benefits Employee welfare benefits; expenses of employment
not paid directly to the employee, such as holiday, sick leave, social security, and insurance.
General and administrative (G & A) fees Also called overhead capitalization charges. A percentage of the total project that varies with
different domestic operating companies. These costs must be allocated and
capitalized in addition to traditionally capitalized direct costs (e.g., legal
and other support personnel, insurance, data processing).
General contractor A construction contractor who assigns some or all
work undertaken for the owner to a number of subcontractors.
Home office costs Costs necessary for everyday business that can be
directly assigned to specific projects, processes, or end products, such as
engineering, procurement, expediting, inspection, estimating, reproduction, telephone, and telegraph. In contractor terminology, costs for home
office activities such as engineering, project management, and support
services.
Indirect costs Costs that do not become a part of the final installation
but which are required for the orderly completion of the installation.
These may include, but are not limited to, field administration, direct
supervision, construction equipment and tools, temporary facilities, insurance, and taxes.
Inflation A rise in the general price level, usually expressed as a percentage rate.

Cost Estimating Manual
Page E-4

April 1995

Appendix E

Glossary

Installation factor A factor determined by dividing the total plant cost
(excluding special charges) by major materials (equipment) cost.
Intangibles In economic studies, conditions or economic factors that
cannot be readily evaluated in quantitative terms (as in money). In
accounting, assets that cannot be evaluated reliably (e.g., goodwill).
Investment The sum of original costs or values of items that constitute
the enterprise; used interchangeably with capital. May include expenses
associated with capital outlays such as mine development. See also Working capital.
Investment cost Includes cost and expenditures that have substantial
and enduring value (generally of more than one year) for upgrading,
expanding, or changing the functional use of a facility, product, or process.
Labor costs, manual The salary of construction craftsmen and general
labor on construction projects. May include fringe benefits, payroll taxes,
and payroll burdens.
Labor costs, non-manual The salary of other than craftsmen, including
Construction Management, Field Administration, and Field Engineering.
May include fringe benefits, payroll taxes, and payroll burdens.
Labor factor The ratio between labor hours required to perform a task
under project conditions and labor hours required to perform an identical
task under standard conditions. See also Productivity.
Labor rate Total costs for labor paid by an employer (wages, fringe
benefits, payroll taxes, and insurance) for a specific period of time, at a
specific place, divided by the number of hours worked during that period.
Location factor An estimating factor used to convert the cost of identical plants from one location to another. This factor takes into consideration the impact of climatic conditions, local infrastructure, local soil
conditions, safety and environmental regulations, taxation and insurance
regulations, labor availability, and productivity. See also Area Factor.
Major material Refers to the cost of principal pieces of engineered
process and utility equipment such as columns, vessels, exchangers,
pumps, motors, furnaces, cooling towers, tanks, compressors, turbines,
and special equipment.
Mark-up Percentage applications such as general overhead, profit, and
other indirect costs in construction estimating. When mark-up is applied to
the bottom of a bid sheet for an item, system, or other construction price,
the above items (or others) may be included, depending on local practice.
Material takeoff An estimate of the quantity of material needed based
on technical drawings and specifications. See also Takeoff.

Cost Estimating Manual
April 1995

Page E-5

Appendix E

Glossary

Material takeoff allowance for bulk materials A sum of money
allotted to the estimate to cover the cost of undefined materials. Example:
Quantities of carbon steel pipe. See also Design allowance for engineered
equipment; Miscellaneous estimate allowances; Wastage allowance.
Minor materials Refers to secondary materials such as piping and
valves, conduit and wiring, insulation, instruments, steam tracing, supports, foundations, and walkways. See also Bulk materials.
Miscellaneous estimate allowances A contractor’s standard percentage
added to the estimate for the costs of various materials and activities
where statistical correlations are more reliable than detailed takeoffs.
Examples: Form-work accessories, reinforcing steel accessories, concrete
extras, structural steel connection materials, bulk materials (unloading and
storing), bolts, gaskets, sleeves, guides, hydrotest, and miscellaneous weld
operations. See also Design allowance for engineered equipment; Material
takeoff allowance for bulk materials; Wastage allowance.
Modernization factor An estimate multiplier used to convert the capital
investment of an older plant to the current cost of building a modern plant
of the same throughput. The modernization factor accounts for cost
changes resulting from sources other than inflation (i.e., special equipment providing improved operating efficiency, increased reliability, safety,
energy savings, and environmental requirements) and for inflation that
exceeds increases determined by cost indexing.
Monte Carlo method A simulation technique to obtain approximate
evaluations by solving mathematical expressions to determine the range or
optimum value. The simulation determines some probabilistic property of
a system or population of objects or events by applying random sampling
to the components of the system, objects, or events. Sometimes used in
risk analysis.
Offplot General facilities outside the battery limits of process units, such
as field storage, utilities, and administrative buildings. See also offsites.
Offplot as percentage of onplot ratios Relates offplot costs as a percentage of new onplot facility costs based on CRTC historical project
information. Typical uses: For Class I estimates where offplot facilities
have not yet been defined; as a rough check on detailed offplot estimates.
Offsites General facilities outside the battery limits of process units,
such as field storage, service facilities, utilities, and administrative buildings. See also Offplot.
Onplot See Battery limits.
On-stream factor The ratio of actual operating days to calendar days
per year.
Cost Estimating Manual
Page E-6

April 1995

Appendix E

Glossary

Open shop Also called merit shop. An employment or project condition
where either union or non-union contractors or individuals may be working. Open shop implies that the owner or prime contractor has no union
agreement with workers.
Overhead The general cost of business; a cost or expense, inherent in
performing an operation, that cannot be charged to or identified with a
part of the work and must be allocated on some arbitrary base believed to
be equitable. Overhead can include rent, insurance, and utilities.
Parametric cost estimating Estimates based on gross quantity takeoffs
and unit prices (i.e., $/ton, $/CY). Typical use: For Class 1 or 2 estimates.
Payroll burden Includes federal, state, and local taxes, fringe benefits,
and other union contract obligations related to paying personnel.
Preliminary estimate Also called budget estimate. An estimate based
on well-developed definitions of major processes and related equipment.
Usually prepared from informal quotes of major equipment and ratios for
bulk, labor, and engineering costs. Typical uses: Preliminary project economics; capital budget. See also A/R estimate; Control estimate;
Screening estimate.
Premium pay The premium portion of craft labor wages for overtime
work.
Procurement Matters related to the acquisition of equipment, material,
and non-personal services (including construction) by means such as purchasing, renting, leasing (including real property), contracting, or bartering, but not by seizure, condemnation, or donation. Includes preparation
of inquiry packages, requisitions, and bid evaluations; also includes purchase order award and documentation, expediting, in-plant inspection,
reporting, and evaluating vendor performance.
Productivity The relative measure of labor efficiency when compared to
an established base or norm. Productivity changes may result in either an
increase or decrease in cost. Productivity is also defined as the reciprocal
of the labor factor. See also Labor factor.
Project An endeavor assigned for definition or execution, with a specific
objective to be met within prescribed time and dollar limitations.
Project management The application of skills and knowledge to coordinate the organizing, planning, scheduling, directing, controlling,
monitoring, and evaluating of prescribed activities to ensure that the stated
objectives of a project, manufactured product, or service are achieved.
Qualifications A series of statements in the estimate package that clarifies and more accurately defines the contents of the estimate.

Cost Estimating Manual
April 1995

Page E-7

Appendix E

Glossary

Quality estimate A prediction of future costs based on an agreed-upon
definition of the facility and the project schedule. It combines the most
appropriate quality estimating process with the best available information
about pricing equipment, materials, labor, and services. The results are
consistent with the desired level of accuracy, provided adequate time and
resources are available to prepare the estimate.
Quality management costs The sum of those costs associated with
appraisal, training, and prevention activities.
Quantity survey The use of standard methods for measuring labor and
materials required for a facility and itemizing the details in a book or bill
of quantities.
Ratio cost estimating Also called factored cost estimating. Three types
of ratio estimates are the total plant ratio, the major equipment ratio, and
the ratio by minor materials account.
The total plant ratio is based on historical information for similar plants.
The total cost of a new facility is determined by multiplying the major
equipment cost by the appropriate installation factor or ratio. Typical use:
For screening estimates.
The major equipment ratio is based on estimating the cost of major equipment and applying historic ratios for similar plants to estimate other items
of cost and plant total. Typical use: Preliminary estimates.
The ratio by minor materials (or letter) account is similar to the Equipment Ratio method, but is broken into cost codes based on Accounting
Items List, Specification EG-2757 (Appendix C).
Reconditioning To refurbish equipment for reuse. Can include cleaning,
repairing and replacing parts. Equipment may be reconditioned in place or
moved to a shop. Reconditioning costs depend on equipment condition,
modifications, and access to a refurbishing shop.
Reproduction cost Also called replacement cost. The cost of reproducing substantially the identical item or facility at a price level as of the date
specified.
Risk The potential for loss. Cost risks might be due to inaccurate estimates, poor market demand projections, process failure, obsolete
equipment, and so on.
Royalties Payments a company receives from others for allowing them
to use a design or concept the company has researched and developed for
commercial purposes. Generally, royalties are one of two types. Paid-up
royalties consist of a lump-sum part of the capital cost of the facility. Running royalties involve continuous payments, usually based on production
or revenues, and charged as an operating expense.
Cost Estimating Manual
Page E-8

April 1995

Appendix E

Glossary

Sales factor A factor applied to cost estimates provided by licensors of
proprietary processes to adjust for items typically omitted, such as Company (owner) costs, allowances for operating flexibility (i.e., tight sizing
of equipment), ease of maintenance (i.e., tight equipment spacing, accessibility), reliability (i.e., sparing, corrosion resistance), and additional
utilities and support facilities.
Salvage Reusable material (usually equipment), resulting from dismantling, that might need some reconditioning. Scrap metal is sometimes
considered to be a subset of salvage material. Salvage material has some
market value. The salvage value of a facility refers to the market value of
all useable equipment, scrap metal, or other materials such as catalyst.
See also Scrap
Scope Defines the work to be accomplished. Scoping is the act of defining and obtaining concurrence among management, operations, and
engineering regarding the facilities to be constructed.
Scope change A deviation from the originally contracted scope. A scope
change can be an activity added to or deleted from the original contract,
and it requires a contract change order.
Scrap Typically refers to scrap metal or discarded metal which can be
reprocessed. Scrap metal has market value.
Screening estimate Also called order-of-magnitude estimate. An estimate made without detailed engineering data. Examples: An estimate
from cost capacity curves, an estimate using scale up or down factors, or
an approximate ratio estimate. Typical uses: Weighing alternatives for
potential projects; determining whether to proceed with further development. See also A/R estimate; Control estimate; Preliminary estimate.
Sensitivity The degree to which the economics of an investment are
affected by reasonable changes in variables. A sensitivity analysis judges
whether the effect of change in the assumptions might make a project unprofitable.
Site preparation Grading, landscaping, building roads, and installing
siding in a previously cleared area of ground, free of obstructions, entanglements, or possible collisions with the positioning or placing of
anything new or planned.
Start-up The period after the date of initial operation during which the
unit is brought up to acceptable production capacity and quality within
estimated production costs.
Start-up costs Extra operating costs, incurred between the completion
of construction and beginning of normal operations, required to bring the
plant on-stream. In addition to the differences between actual operating
costs and normal costs during that period, start-up costs also include
Cost Estimating Manual
April 1995

Page E-9

Appendix E

Glossary

employee training, equipment tests, process adjustments, report-writing,
post-start-up monitoring, salaries and travel expense of temporary labor,
staff, consultants, and associated overhead. Additional capital required
to correct plant problems may be included. Start-up costs are usually
capitalized.
Takeoff Measuring and listing from drawings the quantities of materials
required in order to estimate the cost of supply and installation and to proceed with procurement of the materials. See also Material takeoff.
Taxes, Sales or Use A specific amount of money included in each construction activity (in the Total Direct Cost portion of the estimate) for
purchasing materials or services and payable to the local or state government. The percentage varies as laws dictate.
Temporary facilities Support facilities needed for the duration of a
project that will be dismantled at the completion of the work.
Union A group of workers organized for the purpose of negotiating
wage rates, working conditions, and fringe benefits.
Unit cost Dollar per unit of production; usually the total cost divided by
units of production, but can also be a major cost divided by units of production. Example: The total unit cost is frequently subdivided into unit
costs for labor, chemicals, and so on.
Variable costs A function of production; can be raw materials costs,
by-product credits, and processing costs that vary with plant output (such
as utilities, catalysts and chemical, packaging, and labor for batch operations).
Wage rate The hourly, daily, or weekly cost of a person who works for
wages; e.g., mechanic, laborer, steamfitter.
Wastage allowance A sum of money allotted to cover inventory losses.
Material purchased but not used, sold, or transferred as surplus at the end
of the project. Examples: Damage at the job site, cutting loss, or misuse.
See also Design allowance for engineered equipment; Material takeoff
allowance for bulk materials; Miscellaneous estimate allowances.
Waste That material without market value for which we must arrange
disposal. Fees for disposal depend upon the material.
Working capital Funds in addition to fixed capital and land investment
(excluding start-up expenses) that a company must contribute to start a
project and meet subsequent obligations as they come due. Includes inventories, cash, and accounts receivable minus accounts payable. Characteristically, these funds can be converted readily into cash. Working capital is
normally assumed recovered at the end of the project. See also Investment.

Cost Estimating Manual
Page E-10

April 1995

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close