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TitleCost Estimating Manual
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Table of Contents
                            Contents
	Contents
	Preface
		Using This Manual
	100 Introduction to Cost Estimating
	101 Cost Estimating in General
		Objectives of this Manual
		Reasons for Cost Estimating
	102 Cost Estimating and the Phases of a Project
	103 The Classes of Cost Estimates
		The Five Classes
		Contingency
	104 Methods of Cost Estimating
		Process Plants
		Offplot Facilities
	105 Selecting a Method
		Prerequisites
		Resources
	200 Primary Methods„ Process Plants
	201 Estimating Major Material (Equipment) Costs
		Estimating Cost Components for Equipment
	202 Curve Estimates
		The Curve Method
	Data for Curve Estimating
		Cost-Capacity Coefficients and Exponents for Many Refinery Process Units
		Cost-Capacity Coefficients and Exponents for Refinery Offplot Facilities
	203 Factored Estimates
		The Factored Method
	204 Ratio Estimates
		The Ratio Method
	205 Detailed Estimates
		Detailed and Semi-Detailed Methods
	206 Electronic Estimating: Questimate
		Chevron-Specific Users' Guide
	210 Primary Methods—Offplot Facilities
	211 Estimating Offplot Facilities
		Methods for Estimating Offplot Facilities
	212 Offplot Estimating Checklists
		Checklists for Typical Offplot Facilities
		Checking the Estimate
	220 Primary Methods—Other Facilities
	221 Cross-Country Pipelines
		Estimating a Cross-Country Pipeline
	222 Submarine Pipelines
		Electronic Estimating for Offshore Pipelines
	223 Buildings
		Estimating Buildings
		Cost Data and Equations
	224 Wharves
		Estimating Wharves
		Single- and Double-Berth Tanker Wharves
	300 Secondary Methods—Individual Cost Adjustments
	301 Cost Indexes
		Working with Cost Indexes
	302 Modernization Factor
		Applying the Modernization Factor
	303 Allowances
		Allowances vs. Contingencies
		Three Estimating Allowances
	304 Freight
		Developing Freight Costs
	305 Sales & Use Tax
		Estimating Sales & Use Tax
		301 Cost Indexes
			Working with Cost Indexes
	310 Secondary Methods—Bottom-Line Cost Adjustments
	311 Area Factors
		Describing the Area Factor
		Calculation Method
		Area Factors for Foreign Locations
	312 Escalation
		Three Alternatives for Estimating Escalation
		Escalation Examples
	313 Contingency
		Contingency in General
		Accuracy Range with Contingency
		Contingency for Class 1 and 2 Estimates
	400 Direct Cost Data—Equipment (Major Material)
		Sources of Data
		Bibliography
	401 Columns, Vessels, and Reactors (CS and Alloy)
		Introduction
			Calculating the Weight
			Example Weight Calculation
		Cost Data for Pressure Vessels, Columns, and Reactors
			Cost Correlations
		Cost Data for Alloy Steel Pressure Vessels & Columns
			Plate Cost Data
			Labor Cost Data
	402 Tanks
		Introduction
			Estimating Process
		Cost Data for Tanks & Spheres
			Data for Estimating Tanks & Spheres
	403 Heat Exchangers
		Introduction
			Estimating Shell-and-Tube and Hairpin Heat Exchangers
			Heat Exchanger Worksheets
			Estimating Air-Cooled Heat Exchangers
		Cost Data for Shell-and-Tube Heat Exchangers
			Cost Curves for Shell-and-Tube Exchangers
			Tables of Extras for Alloy Construction & Alloy Tubes
		Cost Data for Hairpin Heat Exchangers
			Estimating Procedure for Hairpin Heat Exchangers
		Cost Data for Air-Cooled Heat Exchangers
			Area vs. Cost of Air-Cooled Heat Exchangers
			Cost Factor Multipliers for  Special Design Features
	404 Fired Process Heaters
		Cost Data for Shop-Fabricated Furnaces
			Carbon- and Alloy-Steel Process Furnaces
	405 Pumps
		Introduction
			The Worksheet
			Selecting the Pump
			Pricing the Pump
			Selecting the Driver
			Pricing the Driver
			Estimating the Pump and Driver
			Estimating Steam Consumption
		Selection Curves & Cost Data for Pumps
			Selection Criteria
			Centrifugal Pumps: ANSI
			Centrifugal Pumps: API, Single-Stage Horizontal
			Centrifugal Pumps:  Two-Stage, Center-Line Mounted
			Centrifugal Pumps:  Multi-Stage, Horizontally Split Case
			Centrifugal Pumps: Single-Stage, Double-Suction, Horizontally Split Case
			Centrifugal Pumps: Single-Stage, Double-Suction, Radially Split
			Centrifugal Pumps: Vertical Inline
			Centrifugal Pumps: Moderate Head, Vertical Inline
			Centrifugal Pumps: High-Speed, High-Head Vertical Inline
			Centrifugal Pumps: Vertical Sump
			Centrifugal Pumps: Vertical Turbine
			Reciprocating Pumps: General Service, Horizontal, Valve-Plate Steam
			Reciprocating Pumps: Horizontal Simplex, Side-Pot Steam
			Reciprocating Pumps: Horizontal Duplex, Side-Pot Steam
			Reciprocating Pumps: Horizontal Simplex, Close-Clearance Steam
			Reciprocating Pumps: Plunger Power
			Reciprocating Pumps: Diaphragm Proportioning
			Reciprocating Pumps: Plunger Proportioning (Motors and Pumps)
			Rotary Pumps: Large and Small
	406 Electric Motor Drivers
		Introduction
			Acronyms and Applications
			Cost Data For Electric Motors
		Cost Data for Electric Motor Drivers
	407 Steam Turbines
		Introduction
			Estimating Single-Stage Non-Condensing Steam Turbines
			Estimating Multi-Stage Condensing and Non-Condensing Steam Turbines
			Reduction Gears
		Cost Data for Steam Turbines
			Turbine Prices and Wheel Sizes for  Single-Stage Non-Condensing Steam Turbines
			Estimating Multistage Steam Turbines
	408 Mechanical Equipment: Compressors
		Introduction
			Determining Brake HP for Reciprocating Compressors
			Estimating a Reciprocating or Centrifugal Compressor
			Two Examples of Estimating Reciprocating Compressors
			Pulsation Dampeners
		Cost Data for Compressors
			Pricing from Vendors
			Equations for Calculating Cost Data for Compressors
	Contents
	410 Direct Cost Data—Bulk Materials (Minor Material)
	411 Bulk Materials (Including Subcontracts)
		Estimating Bulk Materials
		Factors and Ratios for Developing Quantities
		Cost Ratios
	Contents
	420 Direct Cost Data—Construction Labor
	421 Installation Labor Hours
		Introduction
			Data for Installation Labor Hours
			Basis of Direct Labor Hours
			Productivity Adjustment
			Adjustment to Current California Basis
			Complexity Adjustment
			Overtime Adjustment
			Indirect Labor
			Caution
		Installation Labor Hours for Major Materials (Equipment)
			Installation Labor Hours for C—Columns and Pressure Vessels
			Installation Labor Hours for D—Tanks
			Installation Labor Hours for E—Exchangers
			Installation Labor Hours for F—Furnaces
			Installation Labor Hours for G—Pumps and Drivers
			Installation Labor Hours for K—Compressors and Drivers
		Installation Labor Hours for Minor Materials (Bulks)
			Installation Labor Hours for J—Instruments
			Installation Labor Hours for L—Piping
			Installation Labor Hours for M—Structural Steel
			Installation Labor Hours for N—Insulation and Fireproofing
			Installation Labor Hours for P—Electrical
			Installation Labor Hours for Q—Foundations
			Installation Labor Hours for R—Buildings
			Installation Labor Hours for S—Miscellaneous
	422 Productivity
		Definitions
		Estimating Labor Hours Using a Productivity Factor
		Considering an Overtime Schedule
		Productivity During Overtime Schedule
		Costs for Overtime Schedule
		Other Factors in Overtime Schedule
	423 Rework
		Causes of Rework
		Managing Rework
		Total Rework as a Percentage of Direct Labor Hours
	424 Labor Rates
		Merit Shop
		Base Labor Rate
		Composite Labor Rate
	Contents
	500 Indirect Costs and Special  Charges—Indirect Field Costs
	501 Contractor Indirect Field Costs
		Introduction
			Defining Contractor Indirect Field Costs
		Data for Contractor Indirect Field Costs
			Labor
			Variances
	Contents
	510 Indirect Costs and Special  Charges Technical Services
	511 Contractor Engineering and Home Office Costs
		Class 1 and 2 Estimates
		Class 3 - 5 Estimates
	512 Chevron Costs
		Design and Project Management Costs
	Contents
	520 Indirect Costs and Special Charges Special Charges
	521 Special Charges
		Definition and Description
	522 Overhead Capitalization Charges
		Procedures
		Estimating
	523 Dismantling
		Estimating Methods for Dismantling
		522 Overhead Capitalization Charges
			he Tax Reform Act of 1986 requires that Chevron allocate and capitalize a portion of indirect (ov...
				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
			Estimating
	Contents
	600 Estimate Presentation  and Review
	601 Estimate Presentation and Documentation
		Presentation
		Documentation
	602 Estimate Reviews
		Factors Influencing the Review
		General Guidelines
		The Review Process
		Assistance with Reviews
	603 Factors and Ratios for Use in Estimate Reviews
		Overall and Higher Level Ratios and Factors
		Detailed Ratios
	Contents
	Appendices
	Appendix A Estimating Checklists
		Checklist Summary
		Estimating Checklist
		Attachment 1:  Utility and Offplot Plant Considerations
		Attachment 2:  Foreign Estimate Considerations
		Attachment 3:  Technical Services Considerations
	Appendix B Process Licensors'  Sales Factors
		Sales Or Business Development Estimates By Licensors Of Proprietary Processes
	Appendix C Code of Accounts (EG-2757-E)
	Appendix D Code of Accounts for Buildings Projects
	Appendix E Glossary
		Abridged Glossary of Cost Estimating Terms
                        
Document Text Contents
Page 240

Selection Criteria

D
A
T
A

RECIPROCATING High-pressure, low-to-
moderate flow; or
when viscosity
excessive for
centrifugal pumps

Gas (steam)6 or motor driven For utility services7; 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, Close-
Clearance

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-to-
moderate flow rate
services

Heavy Duty Service—
Figures 405-43, 405-44

Diaphragm Proportioning9 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 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.

2 Usually built to ANSI standards.
3 Usually built to API Standard 610.
4 Higher flow rates require horizontal two-stage or multistage pumps.
5 For example, for wells, sumps, and seawater lift.
6 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.

7 For example, for low-pressure boiler feed water, sump pump-out, relief drum pump-out, or stock transfer.
8 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.

9 Proportioning pumps, sometimes called metering pumps, deliver accurate quantities of liquids into a process or system.
10 These positive displacement pumps are most commonly used to circulate lubricating oil for mechanical equipment, or to provide

pressure for hydraulic operating systems.

Pump

Selection Criteria

Fluid/Flow Service Applications

Figure 405-8. Pump Selection Criteria (2 of 2)
December 1998 Page 405-17

Cost Estimating Manual

Page 241

405 Selection Curves & Cost Data for Pumps

D
A
T
A

Centrifugal Pumps: ANSI

Material Class A-3: Duct Iron F-2: 316 SS

Max. Temp 212oF 350oF

Max. Case Press 260 psi 190 psi

Pump
Mark Pump Eff.

Cost
$

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

Page 480

Sales factor A factor applied to cost estimates provided by licensors of
proprietary processes to adjust for items typically omitted, such as Com-
pany (owner) costs, allowances for operating flexibility (i.e., tight sizing
of equipment), ease of maintenance (i.e., tight equipment spacing, accessi-
bility), reliability (i.e., sparing, corrosion resistance), and additional
utilities and support facilities.

Salvage Reusable material (usually equipment), resulting from disman-
tling, 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 defin-
ing 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 esti-
mate 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 develop-
ment. 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 un-
profitable.

Site preparation Grading, landscaping, building roads, and installing
siding in a previously cleared area of ground, free of obstructions, entan-
glements, 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

Appendix E Glossary

April 1995 Page E-9

Page 481

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 pro-
ceed with procurement of the materials. See also Material takeoff.

Taxes, Sales or Use A specific amount of money included in each con-
struction activity (in the Total Direct Cost portion of the estimate) for
purchasing materials or services and payable to the local or state govern-
ment. 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 pro-
duction. 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 opera-
tions).

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 inven-
tories, cash, and accounts receivable minus accounts payable. Character-
istically, 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

Appendix E Glossary

Page E-10 April 1995

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