G0. Explanation Estimating engineering cost



In the tables below, the Engineering costs of a project are stated as a percentage of the total costs for the purchase of equipment and material plus the installation (direct and indirect costs of the construction companies). The project costs for the purchase of material and equipment plus installation are set as 100%. The percentages in the table give an indication of a frozen basic design, inclusive follow-up for execution during the construction period including the as built documentation.


Engineering costs are all costs which an engineering office (contractor) makes, and therefore exclude construction management performed by the main contractor and the owner costs.Engineering costs include: manhours (payroll) for project management and control, engineering and design, procurement and expediting ofequipment and materials, the making of construction contracts and all associated costs (non payroll) which the engineering office makes.

For special attention

The ranges are strongly dependent on both the project size and complexity. Generally, as the project value increases the percentage of the total project cost for engineering will reduce. For small projects the engineering percentages can vary widely. The ranges given in the tables are for projects from € 500,000.- to € 100,000,000.-. By oil and gas the ratios are based on carbon steel. By food and pharmaceutical project engineering is performed by the equipment suppliers. The costs of basic design for onshore transport lines can be higher than for the detailed design.

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