Project Controls and Estimation Curriculum
Cost Methods
Module from the Project Controls and Estimation Curriculum curriculum.
Module 4 - Cost Estimating Methods · Learning Objectives · 1. Apply Lang factor method (factored from equipment cost) · 2. Use Hand method (module factors per equipment type) · 3. Apply Guthrie method (detailed factored per Module) · 4. Use Chilton/Page methods for onshore refinery · 5. Build detailed unit-rate estimate from MTO and crew productivity · Lang Factor Method (Solid-Fluid Refinery Typical)
| Cost Category | Factor of Equipment | Notes | Example (100M Eq) | Running Total | Ref |
|---|---|---|---|---|---|
| Delivered equipment | 1.00 (base) | Major equipment on site | $100M | $100M | Guthrie |
| Equipment installation | 0.25-0.40 | Erection labor | $30M | $130M | Guthrie |
| Piping | 0.60-0.90 | Pipe and supports | $75M | $205M | Guthrie |
| Instrumentation | 0.15-0.30 | DCS + field | $22M | $227M | Guthrie |
| Electrical | 0.15-0.30 | Power + control | $22M | $249M | Guthrie |
| Civil / foundations | 0.12-0.30 | Concrete + steel | $20M | $269M | Guthrie |
| Insulation and fireproofing | 0.08-0.15 | After piping | $12M | $281M | Guthrie |
| Painting | 0.03-0.08 | Shop + field | $5M | $286M | Guthrie |
| Subtotal direct | 3.3x | Inside battery limits | $330M | $430M | Lang |
| Engineering + supervision | 0.30-0.40 of direct | Home office | $100M | $430M | Lang |
| Construction expenses | 0.10-0.15 of direct | Scaffold + temp | $40M | $470M | Guthrie |
| Contractor fee | 0.05-0.10 of direct | Profit + overhead | $30M | $500M | Lang |
| Contingency | 0.15-0.30 of subtotal | Class 3 est | $75M | $575M | AACE 40R |
Source: Project_Controls_Estimation_Curriculum_v1.xlsx · Sheet: Cost Methods
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