Cost Engineering Introduction

Cost Engineering

www.costengineering.eu

Topics

> Who is Cost Engineering?

> What can Cost Engineering do for you?

> The Cost Engineering Tool: Cleopatra Enterprise


> Expertise

> Education

> Professional Services

> Software solutions

Added value in Cost Engineering


> Preparing and validating estimates during the complete project life cycle

> Developing and supervising contract strategies

> Benchmarking

> Asset Validation / Verification

> Location factors surveys

> Developing multi-disciplinary cost libraries

> Planning, cost control, quantity surveying

> Risk Assessment

> Value management

Expertise


> Based on knowledge and experience

> Individual attention in small groups

> Courses to suit managers as well as estimators

> From introducing terminology to estimating and cost management

> Company specific cost engineering programs

> Cost engineering software tools

Academy

http://www.costengineering.nl/pdf/academy/00_Cost_Engineering_Academy.pdf


Data

> Standard cost data for your estimates for onshore and offshore

> Multi-disciplinairy

> Various industries and geographical areas

> Based on DACE labour norms (Western Europe)

> Based on Vendor information, historical project data

> Well documented data qualifications

> Yearly maintenance updates possible

> 3rd Party sources:

> Richardson data

> DACE Price Booklet

> Reed business (Dutch civil)

> Van Leeuwen Buizen Pipe & Tube

http://www.costengineering.nl/pdf/knb/00_CostEngineering_Knowledgebases.pdf


> All-round cost engineers at your location

> Estimators, planners, cost controllers, quantity surveyors, etc.

> Workload balancing

> Full support from the Cost Engineering home-base

> Support to increase your cost engineering know-how

Professional Services


> The cost engineering tool for fast and accurate estimates for the complete project life cycle

> Thorough needs analysis

> Optimized implementation

> Customized training

> Global support

Cleopatra Enterprise


> Fast and accurate estimating> Estimate your whole project life cycle (design, build,

maintain) in one system;

> Class 4 (40%), Class 3 (20%), Class 2 (10%) in one package

> Gradual increase of accuracy (Class 3½, Class 2½)

> Closing the loop: analyze benchmarks in class 2 estimates as input for class 4 estimates.

> Use standard cost data based on DACE Labour Norms or other 3rd party sources

> Interface with other software tools (3D, planning) to increase efficiency

Cleopatra Enterprise’s Added Value


Cost estimates as a business toolAll investment information at your fingertipsEnhance your business intelligence through transparency:

Knowing your exact cost (direct, allowances, indirect, escalation, contingency)Knowing the effects on cost of scope changesKeep an overview in complex projects

Use Cleopatra Enterprise for:ProcurementTendering / bidsContractingEstimatingInvestimatesMaintenance

Cleopatra Enterprise’s Added Value


> Bulk storage

> Construction industry

> EPC(M)

> Food and Nutrition

> Government

> Gas industry

> Heavy industry

> Pharmaceutical industry

> Petro-/chemical industry

> Power industry

> Mining & Minerals

References


> Petrom: +/- 25 % , value 1,2 billion Euro ( Brown Field )> OMV : +/- 25% , value 50 million Euro ( Brown Field )> Huntsman: +/- 15% , value 11 million Euro (Brown Field )> Lyondell: +/- 10% , value 10 million ( maintenance contract )> BP: +/- 10% , value 42 million Euro ( Turn Around )> Statoil: +/- 15% , value 250 million Euro ( Greenfield )> Nuon: +/- 25% , value 800 million Euro ( Green Field)> Dupont: +/- 10% , value 6 till 20 million Euro (several Brown Field)> Vopak: +/- 10% , value 42 million Euro ( Brown Field )> DSM: +/- 25% , value 125 million Euro ( Green Field )> NAM: +/- All kinds of estimates from 1 million up to 500 million> And many others!

Estimated projects


> Accurate cost estimates from initiation to abandonment ranging from small to large projects

> For greenfield, brownfield and maintenance projects

> Informed and transparent decision making

> Increase efficiency through standardization and re-use

> Secure and share your company knowledge

> Flexible to accommodate company specific work processes and breakdown structures



WorkflowCost

Estimation

Websharing

Interfacing

Project

Analysis

Risk

Analyses

Modules


Characteristics


> Creating solid cost estimates for various elements of a project from feasibility up to construction

> Allocate all types of costs: direct, allowances, indirect, escalation and contingencies

> Creating cost objects e.g. Assemblies

> Monitor and control estimate revisions

> Perform “What-if” analysis

Cost Estimation Module


Cost types


Direct costs


Breakdown structures


Project Grand Total


“What if” analysis


> Learn from your past projects

> Compare multiple projects and historical data

> Analyze scope development

> Assess your currency spread and risk

> Scheduling and cash flow trending

> Benchmark your organization

> Business intelligence through regression analysis, pivot tables, or other methods of data mining

Project Analysis


> Control your document routing

> Monitor progress on your projects

> Quickly draw your workflow

> Personalized dashboard

Workflow Module


> Import and export all Cleopatra documents

> Update your estimates with market quotes or contract tenders

> Direct import of bills of quantities

> Interfacing with engineering systems eg. Comos, PDMS, PDS, CostManager

> Interfacing with ERP systems eg. SAP, Microsoft Dynamics

Excel Interfacing


Cleopatra Enterprise Excel

Data storage centralized database local files

Methodology proven methodology user dependent

Security strong security open

Multi-user yes no

Maintainability provided complex

Support Cost Engineering single employee

Product off the shelve in-house development

Quality quality framework user dependent

Knowledge reuse always seldom

Workflow yes no

Cleopatra vs. Excel


Show case:

Example Plant


> Scope> Distillate process: raw product to middle distillate> By products: top and bottom> 28 pieces of equipment (columns, heat exchangers,

tanks, pumps, vessels)> Executed in Western-Europe> Price level date 2009> Finish date: November 2010> Project life cycle: from feed to execution

> Plant design> 3D model> Process flow diagram> Equipment list

Show case: Example Plant

Typical_Plant_(Animation).avi

Typical_Plant_(PFD).jpg

Typical_Plant_(Equipment_list).xls


> Class 4 estimate (40% accuracy):> Based on factors> Applying Hand methodology> Distribution of disciplines> Equipment calculation

(DACE, R. Turton [Analysis chem. Proc. 3rd 1998], Elsevier [Chem. Proc. Equip. 2nd edition])

> Class 3 estimate (20% accuracy):> Object re-use (assemblies)> Tuning for more accuracy> Include allowance, indirect, escalation and contingency> Disciplines: piping, mechanical, E&I, civil, etc.> Parts to be estimated

> Class 2 estimate (10% accuracy)> Detailed Unit-Cost> Bill of Quantity / Material take off input

Show case: Example Plant

Typical_Plant_(PFD)-Estimate.jpg

Typical_Plant_(PFD)-Estimate.jpg

Typical_Plant_(BOQ-Estimate).xls

Cost Engineering Introduction

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