Professional Documents
Culture Documents
Estimating Organization
Total Employees: 55
MWKL
Graham Jefford
Disciplines
C/S/A Paul Porter
E/I
Robert Hodge
MECH John Shipman
PIPE
Richard Morrow
Specialists
Constr. Dennis Thompson
HOS
Rick Barrett
Icarus
Art Byram
Systems Leo Ney
Product Lines
Ammonia
Don Vichi
LNG
Bob Pike
Power
Jim Isenberger
Spec. Chem/P&P Wayne Fultz
Oil & Gas
Ed Wirt
Olefins
Tommy Newlin
Refinery Roy Mewis
Class of Estimates
Classification
Name
Order of Magnitude
FEL Phase: Conceptual
Factored
FEL Phase: Feasibility
Conceptually Defined
FEL Phase: Definition
Definitive
Cost Curves
(* HP&P)
Capacity Ratios
(* HP&P)
Equipment Factored
(* HP&P ie Lang, Gutherie)
Parametric
(*HP&P- unit costs and ratios)
Volumetric Model
(ICARUS)
Detailed Conceptual
(conceptual bulk MTO)
Historical/Ref. Design Model
(bulk adjusted)
Expected Accuracy
+/- 30-50 %
Usage
Studies, viability evaluation of alternate
schemes, project screening, long range
planning
+/- 15- 25 %
0-3 %
FEL : 1 %
+/- 10-15 %
Project Definition
3-10 %
FEL : 5 %
10-50 %
FEL : 20-30 %
Defined
(definitive bulk MTO)
Historical/Ref. Design Model
(line item adjusted)
+/- 5- 10 %
FCE : 10-30 %
50-100 %
PCE : 60-90 %
Note:
Construction
0 to 50%
complete
* HP&P:
Classification:
Name:
Expected Accuracy:
Typical low and high ranges after the application of contingency (if contingency is required to arrive at the most probable cost). Ranges are based on
the actual cost being between the bounds of these ranges (on 85% of the estimates).
Usage:
Typically (but not limited to) the end use of the estimate.
Project Definition:
This is expressed as a percentage and correlates to the percent of design that is typically complete based on deliverables produced.
Cost-Influence Curve
Contract
Award
Construction
Start
Construction
100%
Mechanical
Completion
Craft Labor
90%
80%
70%
100%
90%
80%
70%
60%
60%
Bulk Materials
50%
50%
40%
40%
30%
30%
20%
20%
Major Equipment
10%
10%
0%
0%
5%
10%
Detail Design
FCE
OM Factor
0%
75% 80% 85% 90% 95% 100%
PCE
Definitive Estimates
Variance
Order of
Magnitude
(115)
23%
Factored
(210)
42%
Estimating Programs
ESP
Discipline Programs
CMCS Download
Program Steel/Concrete
CAPS (Computer Aided Piping System)
Estelec (E & I)
Estequip
Home Office (H-12 including other masks)
ESP
(Estimating Summarizing Program)
ESP contd.
(Estimating Summarizing Program)
Estimating Databases
Estimate Process
Request for Estimate
Manager assigns
Project Estimator
Review Info/Package
Kick off
Meeting
with
Engineers
Assemble Estimate;
Perform Risk
Analysis with input
from all parties
Load Database
Conduct Lessons
Learned
Unsuccessful
Bid
Bid or
Check
Estimate
Project Team
KBR OPS
Pricing/Executive Management
Client
Successful
Bid
Check Estimate
Load Project
Controls Systems
Conduct Turnover
meeting
Load Project
Controls Systems
Client and
Other Input
Project
Estimator
Engineering
Project Controls
Procurement
Management
Lead C/S/A
Estimator
Lead Piping
Estimator
Lead E/I
Estimator
Lead Mechanical
Estimator
Home Office
Support
Discipline Chief
Estimators
KBR Systems
Electrical/Instrument
-Conduit Fittings
-Stands & Mounts
-Process Hookups/Tubing
-Terminations
-Loops
-Wire/Cable Lengths
Steel
-Connections
-Misc. Platforms
Grout
Paint
Project
Director
VP PM
$250 K
All
All
Other
Sr. VP EPC
VP's/Directors/Managers Operations
(Formal Operations
review required)
$ 1 MM
All
$10 MM
$ 1 MM
Area Sales
VP/Director
(Review Only)
$20 MM
$5 MM
All
All
$100 MM
All
$500 K
$1 MM
$10 MM
$20 MM
---
$250 K
$250 K
$ 1 MM
$5 MM
---
Estimate Definitions
Funded Liability - (Only recommended by
Operations) Includes: Liquidated Damages
for schedule risk, Cost of Money and
Financial Risks, Warrantees, Contract Risk,
etc.
Cost vs. Price - The OPS review and the
OPS team establish what the Cost of the
project can be executed for. The Pricing
Committee will decide the Selling Price.