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Industrial Construction Estimating Manual 1st Edition
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This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein).
Notices
Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.
Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.
To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein.
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Preface
This edition of “Industrial Piping and Equipment Estimating Manual” provides the principles and techniques for estimating process piping and equipment. It is not a manual about estimating only. Estimating cannot precede without labor productivity and analysis. The manual begins with the introduction devoted to labor, productivity measurement, collection of historical data, estimating methods, and factors affecting construction labor productivity and impacts of overtime. The direct craft man hours in this manual were determined from time and methods for the measurement of construction labor for field erection of process piping and equipment for industrial projects located throughout the country.
Then eight sections provide the estimate tables for process piping and equipment scopes of work, estimate man-hour tables and estimate sheets, and sample estimates and statistical applications. The purpose of this manual is to provide a comprehensive and accurate method for compiling piping and equipment direct craft man-hour estimates for the following industrial facilities:
Combined Cycle Power Plant
Simple Cycle Power Plant
Refinery and Hydrogen Plant
Compressor Station
Biomass Plant
Ethanol Plant
This manual is intended for project managers, estimators, engineers and project field staff to prepare direct craft man-hour estimates for budgets, RFP’s, bid proposals, and field change orders. The principles and techniques for estimating process piping and equipment will allow the estimator to accurately determine the actual direct craft man hours, based on historical and quantitative data, for the complete field installation of mechanical equipment and piping for a given industrial facility.
The estimating methods in this manual will allow the experienced estimator to use the comparison method to estimate similarities and differences between proposed and previously installed equipment and the unit quantity method will be a final check on actual man hours compared to estimate man hours. The manual does not include cost and man hours for material, equipment usage, indirect craft and supervision, project staff, warehousing and storage, shop fabrication, overheads, and fee. The direct craft man-hour estimate is the basis for the estimator to obtain the project schedule and the man hours and cost for indirect craft and supervision, project staff, construction equipment, material, subcontractors, mobilize and demobilize, site general conditions, overhead and fee. In addition, the estimator must determine all factors that will affect direct craft labor productivity and overtime impacts. Review of the Preface and Introduction will enable the estimator to understand labor productivity, productivity measurement, collection of historical data, estimating methods, and labor factors and loss due to labor productivity and overtime impacts. The sample estimates, in Section 8, will illustrate how to apply the estimate tables and sheets to prepare detailed direct craft estimates and the statistical applications to construction will provide the statistical methods to forecast man-hour analysis by graphical and analytical techniques.
To apply the principles and techniques, estimate man-hour tables and sheets, the estimator must be familiar with the introduction on the following pages and “Section 8: Sample Estimates and Statistical Applications to Construction.”
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Introduction
Introduction
The estimate data in this manual has been verified by measurement, project cost reports from field erection of process piping and equipment, one-cycle time studies, and the data are revised continuously due to construction design, engineering, labor skill, material, equipment, and procedures.
Information for man hour analysis is obtained from the foreman’s report. The foreman’s report is used to find the number of man hours for a task. The report is used for cost and time control. The cost engineers and welding quality control in the field monitor and verify the work.
These reports are collected for the field installed piping and equipment. From the reports and review of the specifications, codes, and drawings the cost engineer and estimator will examine the data for consistency, completeness, and accuracy. Reports are collected for similar work and the data are entered into a spreadsheet. The spreadsheet prepares the data for mathematical analysis. The engineer and estimator determine the productivity rate. The rate is used for future cost analysis and estimating similar scopes of work.
The estimate data are based on “standard,” which is defined as “forming a basis for comparison.” The standard unit man hour involves these considerations: the work is being performed by a contractor who is familiar with all conditions at the job site; the project has the proper supervision; the workers are familiar with and skilled in performance of the work task; and there is an adequate supply of labor. There are clarifications and exceptions stated for the application of the data.
Labor Productivity and Analysis
Labor
Labor productivity is concerned with direct craft labor. Direct craft labor time means the craft is working on the field erection of process piping and equipment. The “man hour” is dependent on the historical value of time spent erecting pipe and equipment on industrial projects.
This basic unit is defined as one worker working for 1 h.
Examples of man hour units:
HRSG—Seal Weld Side, Roof and Floor Casing Field Seams 0.35 MH/LF
Historical records provided the direct craft man hour data for field installation of piping and equipment. Two methods for the measurement of construction time were used to collect, analyze, and compile the actual man hour data in this manual.
Nonrepetitive one-cycle time t study
Foreman report—job cost-by-cost code and type
Nonrepetitive One-Cycle Time Study and Man Hour Analysis
Nonrepetitive time study was used for construction of direct craft long-cycle scopes of work. The time study provides man hour information for cost analysis and estimating. The study requires continuous timing with an electric timer or video camera. A camcorder with video playback is used, and video tape can be returned to determine acceptable methods and the time required for the work.
Once the time study is complete, the craft foreman determines the operation or task and calculates a time for it. The calculation is the net time less any reductions for task unrelated to the timed task. Normal time is found by multiplying a selected time for the task or cycle by the rating factor:
Tn = To × RF
where Tn = normal time, hours; To = observed time, hours; RF = rating factor, arbitrarily set, number.
Example: If the craft worker is fast, then the RF > 1.0, say example as 110%.
Task time is 1.8 h, then normal time is (1.8 × 1.10) = 1.98 h.
If the worker is rated 90% then RF < 1 and normal time is (0.90 × 1.8) = 1.62 h.
The rating factor allows the “sample” observation to be adjusted for normal workers to arrive at a true value.
Normal time does not include factors that affect labor productivity. Allowances for these factors are divided into three components: personal, fatigue, and delay (PF&D).
Process of timing the cycle:
Idle time is excluded; craft takes breaks for coffee and rest room; allowance for personal is 5%.
Fatigue is physiological reduction in ability to do work; allowance for fatigue is 5%.
Delays beyond the worker’s ability to prevent; allowance for delays is 5%.
Productivity time in the work day is inversely proportional to the amount of PF&D allowance; the allowance is expressed as a percent of the total work day.
PF&D allowance is generally in the range of 10%–20%. Allowance Multiplier is expressed as follows:
F = 100 e % / ( 100 % PF & D % )
where Fₔ = allowance multiplier for PF&D, number; PF&D = personal, fatigue, and delay allowance, percentage; standard productivity—time required by a trained and motivated worker or workers to perform construction task while working at normal tempo.
Hs = Tn × Fe
where Hs = standard time for a construction task per unit of effort, hour.
The allowance for PF&D is 15%, which becomes an allowance multiplier of 1.176.
The estimate data in this manual is based on “standard,” which is defined as “forming a basis for comparison.” The standard unit man hour involves these considerations: the work is being performed by a contractor who is familiar with all conditions at the job site; the project has the proper supervision; the workers are familiar with and skilled in performance of the work task; and there is an adequate supply of labor. There are clarifications and exceptions stated for the application of the data.
Code of Accounts and Foreman’s Report—Job Cost-byCost Code and Type
The estimator provides the cost engineer the estimated budget direct craft man hours and cost for the project to be erected in the field. The cost engineer uses the code of accounts to set up the tracking system for the project erection (Table 1).
Table 1 Illustration of Portion of the Code of Accounts for Erection of an HRSG
Cost Phase Code Description
xxxxxx HRSG—Casing columns
xxxxxx HRSG—Duct work SCR and Inlet
xxxxxx Erect—Gas baffles
xxxxxx HRSG—Modules
xxxxxx HRSG—Pressure vessels
xxxxxx HRSG—Steel (ladders, platforms, and grating)
xxxxxx HRSG—Stack and breeching
xxxxxx HRSG—Skids
xxxxxx HRSG—SCR and CO2 internals
BM 4838
BM 2183
BM 1620
BM 880
BM 420
BM 2211
BM 2582
BM 80
BM 708
xxxxxx HRSG—Receive, off load, and Haul to Hook BM 978
Foreman’s Report
Information for man hour analysis is obtained from the foreman’s report. The foreman’s report is used to find the number of man hours for a task. The report is used for cost and time control. The cost engineers and welding quality control in the field monitor and verify the work.
These reports are collected for the field-installed piping and equipment. From the reports and review of the specifications, codes, and drawings the cost engineer and estimator will examine the data for consistency, completeness, and accuracy. Reports are collected for similar work and the data are entered into a spreadsheet. The spreadsheet prepares the data for mathematical analysis. The engineer and estimator determine the productivity rate. The rate is used for future cost analysis and estimating similar scopes of work (Tables 2–4).
Table 2 Illustration of Portion of Foreman’s Report for Erection of an HRSG
HRSG—Steel (ladders, platforms and grating)
xxxxxx HRSG—Stack and breeching
xxxxxx HRSG—Skids
xxxxxx HRSG—SCR and CO2 Internals
xxxxxx HRSG—Receive, off Load and haul to hook
Table 3 Illustration of Portion of Job Cost-by-Cost Code and Type for Erection of an HRSG
xxxxxx HRSG—Duct work SCR and inlet
xxxxxx Erect—Gas baffles
xxxxxx HRSG—Modules
xxxxxx HRSG—Pressure vessels
xxxxxx HRSG—Steel (ladders, platforms and grating)
xxxxxx HRSG—Stack and breeching
and CO2 internals
Table 4 Illustration of Portion of Tracking Report for Erection of an HRSG
Estimating Methods
Comparison Method
The comparison logic is based on estimating similarities and differences for proposed equipment installation and previously installed equipment for which historical man hour data are available.
Designate MHc = historical man hour (know man hour estimate); MHₔ = Equipment quantity is increased; MHβ = Equipment quantities are decreased.
MHc <= MHₔ; MHₔ is directly proportional to MHc; MHβ is a lower bound and logic is expanded to MHᵦ <= MHc <= MHₔ.
The estimate that is either above or below the known estimate must satisfy the work scope and quantity take off. The less difference between the equipment estimate and the original comparison estimate the better the comparison.
The comparison method provides the opportunity to compare the proposed estimate to the previous estimate. The estimate data must be current and need to be verified by measurement, project cost reports, one-cycle repetitive time study, and historical experience, and the data need to be revised continuously with the many combinations of construction design and engineering, labor skill, material, equipment, and procedures. The comparison method in this manual will be more effective if maintained and revised by the contractor, engineer, and owner.
Estimating Equipment by Comparison
Determine scope of work for the proposed equipment installation and make a detailed quantity takeoff.
The quantity takeoff is either above or below the known quantity and satisfies the scope. The lower or upper bound is the reference to increased or decreased quantities. The known quantity is historical data from previous field installations.
The Main Advantages of Comparison Method
1. Estimate is based on comparison with actual unit man hours and quantities.
2. The scope and quantity differences can be identified and the impacts estimated.
3. Comparison method applies to any complexity of design, bid, and contract for a project.
A Simple Example:
Estimator is using comparison to estimate an air filter house to be erected in a combined cycle power plant.
Example—Comparison Method. F Class CTG Installation Estimate; Air Filter House
MHβ < = MHc < = MHe
where MHc = historical man hour; MH ₔ = equipment quantity is increased; MHᵦ = equipment quantities are decreased (Tables 5–7).
Comparison of Estimated Direct Craft Man Hours Man Hours
MHβ = Equipment quantities are decreased; estimated man hours are decreased 1557
MHc = known unit man hour based on historical data 1730
MHₔ = Equipment quantity is increased; estimated man hours are increased 1826
Table 5 MHc = Historical Man Hour Estimate for Inlet Filter House
Table
6 MH
ₔ
= Estimate for Increased Inlet Filter House Quantities
Air Filter System
Table 7 MHβ = Estimate for Decreased Inlet Filter House Quantities
MHc is based on historical data from field erection of an F Class CTG in a combined cycle power plant and the scope and quantity differences can be identified and the impacts estimated therefore:
MHβ < = MHc < = MHe
The proposed unit is based on the estimators quantity take off and erection man hours are either (+or−) 10%.
Direct proportion (straight line graph); comparison method quantities are directly proportional to estimate MHs.
MHc is directly proportional to MHβ and MHₔ. Whenever one variable increases or decreases, the other increases or decreases and vice versa.
Equation of straight line: y is directly proportional to quantity x if y = kx for some k > 0. Therefore, quantities are directly proportional to estimate MHs.
Unit Quantity Method
The method starts with the quantity take-off arranged in the erection sequence required to assemble and install the equipment. The estimator selects the task description by defining the work scope for the item to be installed. Each task is related to and performed by direct craft and divided into one or more subsystems that are further divided into assemblies made up of construction line items.
The unit-quantity model is given by the following:
MHt = ∑ ni (MHi )
where MHt = man hours for equipment and piping field installation; ni = task take-off quantity i; in dimensional units; MHi = unit equipment/piping man hour associated with ni; i = task 1,2,…, m from quantity takeoff associated w/field equipment/piping.
The ni quantity is the takeoff for the field scope of work.
MHi unit man hours are determined from piping and major equipment man hour tables.
The unit man hours were determined from historical data and they correspond to the labor productivity necessary to install the piping and equipment in an industrial construction facility.
The unit-quantity method allows a final cross-check of actual man hours to estimated man hours.
Factor:
MHt = ni (MHi )(fu )
where fu = factor percent for productivity loss and alloy weld factor; u = 1,2,…, p. (Table 8).
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XVI.
Heinäkuun 22 p.
Tänään haudattiin rouva Nurhonen. Olimme Raivan kanssa osanottajina surusaatossa, ja ajoimme samalla hevosella.
Kaikki sukulaiset olivat haudalla. Me seisoimme loitompana, mutta ei huomaamattomina. Kun hauta oli umpeen luotu, laskin minäkin kummulle pienen seppeleen "kahdelta entiseltä palvelijalta". Aijoin heti tämän jälkeen poistua läheisyydestä, mutta Asplund saapui luokseni ja puserti kauvan kättäni. Kaikki muutkin, John ja Selim Nurhosen minulle tuntemattomat rouvatkin, tulivat tervehtimään ja kiittämään. Kohtaus oli liikuttava, enkä minä voinut kieltääntyä Asplundin kutsusta saapua illalla suruhuoneelle teelle. Me menimme sinne molemmat.
Paitsi meitä, olivat ainoastaan omaiset koolla. Vastaanottomme oli ystävällinen, Asplundin kohdalta suorastaan sydämellinen.
— Meistä kaikista oli kovin hauskaa nähdä teidän vainajalle osoittavan viimeisen kunnioituksenne, sanoi hän. Anteeksi antaminen on kaunis teko.
Selitin ettei suinkaan meillä ollut vainajalle mitään anteeksi annettavaa.
— Niin, vastasi Asplund, me toisethan sitä aikanamme välit sotkimme, hän oli vaan asiain keskustana. Mutta mekin toivomme samalla kertaa entisten suhteitten unohdusta.
Tunsin itseni hellämieliseksi, enkä voinut mitään vastata. Aivan pakostakin muistui mieleeni viimeinen yhdessäoloni Asplundin kanssa, päivänä jälkeen osakeyhtiön kokouksen. Hän oli silloinkin samalla lailla sovinnollinen, melkein kuin tunnonvaivoissa oleva.
Minä olin mennyt hänen luoksensa ja loukatun uhkamielisesti ilmoittanut en enää päivääkään olevani toimessani. Hän koetteli minua tyynnyttää, ja selitti uuden kokouksen pitämisen olevan välttämättömän. Mutta minä olin päätöksessäni horjumaton ja toimin kuin unissani. Tarjosin kaikki osakkeeni heille samallaisilla maksuehdoilla kuin Helanderin osakkeet olimme ostaneet. Hän kieltääntyi ja sanoi ettei tarkoituksensa ole ollut tällä tavalla työtäni liikkeessä palkita. Minä uhkasin, jos he eivät tarjoukseeni suostu, myödä ne vaikka Koskiselle. Ja perääntymätön kun tällä kertaa olin, annoinkin ne Helanderin jälkeen kaupunkiin tulleelle asianajajalle myötäväksi, jolta Nurhoset ne esittämilläni ehdoilla sitten ostivat. Itse en tämän päivän jälkeen ottanut osaa liikkeen hoitoon. Kaupungissa viivyin vaan pari viikkoa asiaini järjestelyä varten, pysytellen erilläni kaikista tuttavistani. Ja minä lähdinkin kuin pakoon pujahtava pahantekijä, ensin kuitenkin pistäännyttyäni Löfbergilässä ja Raivassa hyvästillä, mutta heillekään lähtöpäivääni sanomatta. Se olikin viimeinen kerta kuin täti Löfbergiä tapasin.
Täti ei silloin ollenkaan ollut entinen leikillinen talon emäntä, vaan valittava ja nuhteleva.
— Täällä väsytään kaikkeen kohottavampaan ja takerrutaan pikkuasioihin ja tehdään niistä suuria, vieläpä ihmisten elinkysymyksiä, sanoi hän. Mokomistakin. Niinkuin ei nyt täällä olisi alaa vaikka kenelle. Mutta pikkukaupunki on pikkukaupunki itsekkäine luonteineen, ja se turmelee kaikki, jotka sen helmaan antautuvat.
Hyvästellessä sanoi hän:
— Pysykää te luonteeltanne nuorena, niin kaikki muu käy hyvin. Minä ainakaan en aijo vanheta, väsyä enkä kyllästyä.
Ja aivan sama tunne, jonka usein olin tässä talossa saanut, valtasi minut nytkin. Tunsin itsessäni syyllisyyttä asiain menoon. Mutta minä kiirehdin lähtöäni.
Raivassa sen sijaan oli käyntini vain hätäinen pistäytyminen. Pelkäsin joutuvani avomieliseksi, ja jätin hyvästini hämmästyneinä lähtöpäivääni kysyvälle talonväelle. En sanonut sitä tietäväni, sillä tahdoin luopua entisyydestäni kuin ei sitä olisi ollutkaan.
Mutta jo seuraavana päivänä minä lähdin. Ja kun kaupunki lakkasi näkymästä, purskahdin äänekkääseen itkuun kuin pikku lapsi. Itkin kauvan, kyynelten aivan virtanaan vuotaessa.
* * * * *
— Olemme ihmetelleet, sanoi Asplund tänään, ettet ole käynyt entistä taloasi katsomassa kun paikkakunnalla kerran olet oleksinut. Jos minä olisin kaupungissa ollut, olisin käynyt sinua tapaamassa.
Selitin monasti käyntiä ajatelleeni, mutta on se juuri hänen poissaolonsa takia jäänyt tekemättä.
Asplund kertoili kaikista asioista peittelemättömästi ja avonaisesti.
Monta vaikeutta oli heillä ollut voitettavana, vallankin ensi aikoina, mutta sitten kun lasten kengät kuluivat, on kaikki taas mennyt säännöllistä menoaan. Hänkin on luovuttanut osan osakkeistaan Nurhosille, joten veljekset nyt suurimmaksi osaksi omistavat liikkeen kokonaan.
— Rouva vainajan toiveet ovat siis toteutuneet, sanoin.
— Ovat kyllä. Ei hänellä paljoa ajettavia asioita maailmassa ollutkaan, siksi kai hänen pyyteensä toteutuivatkin. Kun siinä ei vaan olisi tapahtunut vääryyttä muita kohtaan.
— Hm, vastasin. Eiköhän kaikki ihmiset maailmassa lopullisesti toimi enemmän tai vähemmän itsekkäästi, niin ettei jonkun pienempi onnistuminen ollenkaan tarvitse tuottaa omantunnon vaivoja toisille.
Hän ei vastannut siitä asiasta, vaan jatkoi hetken perästä.
— Kovin minua kuitenkin ovat vaivanneet ne vanhat asiat, vallankin se Nurhosen poikamainen äänestys silloin kokouksessamme. Vaikka erimielisyyttä olikin, olisin sentään eronkin toivonut tapahtuvan sovinnossa ja ilman katkeruutta. Ilman sinua ja Helanderia emme aikanaan kuitenkaan olisi minnekään päässeet.
Olen monasti ajatellut teidän kenties olleen niinä erimielisyyksien aikana oikeassakin.
Pyysin ettemme niistä enää puhuisi ja niin siirtyi keskustelumme kaupungin muihin asioihin. Asplund on luopunut myöskin sanomalehden toimittajan tehtävistä. Kolmatta lehteä ei ole perustettu, eikä entinen persoonallinen puoluejako enää sellaisenaan olemassa.
— Uudet yleisemmät puoluesuunnat ovat täälläkin muodostuneet, sanoi hän. Se vanha juomakauppakysymys on jo monta vuotta ollut ratkaistuna. Paria vuotta myöhemmin olivat kaikki yksimielisiä siirtämään oikeudet yhtiölle.
Kysyin eikö ollut ikävää jättää vaikutustaan sanomalehtimiehenä?
— Ei ollenkaan, vastasi hän. Minulle on tullut uusi vaikutuspiiri, kiitollisempi ja vastaanottavampi. Tarkoitan näitä, sanoi hän, sivellen vieressään seisovan poikansa hiuksia. Pienet voimani uhraan minä nyt etupäässä näitten kasvatukseen. Uudessa polvessa ovat suurimmat toiveet ihanteittansa onnistumiselle.
Illalla kävimme kauppaakin katsomassa. Kaikki ulkonainen oli pääasiassa entisellään. Pulpetti, jonka ääressä monena vuotena olin istunut, oli entisellä paikallaan konttorissa. Siinä istui nyt vaan toinen mies, John Nurhonen.
Kaikkia näitä vanhoja tuttuja esineitä katsellessani, en pysynyt tyynenä, vaan muutuin alakuloiseksi. Tunsin taas uudestaan saman raskaan tunteen, joka aina valtaa minut kun huomaan kuinka toimeton ja tarpeeton ihminen minä maailmassa olen.
Aivan kuin aatokseni aavistaen, sanoi Asplund:
— Muuta sinäkin takaisin vanhaan asuinkaupunkiisi. Koskisen liike olisi luullakseni ostettavissa.
Minä aivan kuin heräsin mietteistäni.
— Toivoisitko sinä sitä? kysyin.
— Toivoisin, ainakin minä tekisin sen, vastasi hän.
Ja nyt täällä kotona istuissani ja pikku Ainon pöydälleni jättämiä metsän kukkia katsellessani, huomaan todellakin mieliväni näin tehdä.
XVII.
Heinäkuun 30 p.
Kun selailen näitä päiväkirjamuistelmiani, joita aikani kuluksi olen paperille kirjoitellut, huomaan tulleeni siihen aikaan, josta elämäni viimeinen kymmenvuotinen, yksitoikkoisen tasanen taival alkaa. Minun on siis aika lopettaa muistelmat.
Ja minä teenkin niin. Minä alan taas elää.
Olen ostanut Koskisen kaupan ja mennyt kihloihin Hilma Raivan kanssa.
Minulle alkaa uusi elämä. Tunnen sen verissäni ja jäsenissäni. Mieleni on kevyt ja toivehikas kuin nuorukaisella. Jäseniäni ei kolota, eikä tauteja tunnu ruumiissani. Olen kuin uusi ihminen.
Elämäni siirtyi keväästä suoraan syksyyn. Nyt alkaa minun kesäni.
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