Description

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

Definitions

Engineering costs are all costs which an engineering office (contractor) makes, and therefore excludeconstruction management performed by the main contractor and the owner costs. Engineering costsinclude: man-hours (payroll) for project management and control, engineering and design, procurementand expediting ofequipment and materials, the making of construction contracts and all associatedcosts (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.