icarus technology

ICARUSTechnologyIntroduction to Areas ......................................................................... 36-3

ICARUS Systems are Based on Craft Labor..................................36-8

How Questimate Develops Material Costs....................................36-9

Project Schedule................................................................................36-10

Process Control.................................................................................36-14

Overview of System Input Specifications for PowerDistribution ........................................................................................36-27

Power Distribution ...........................................................................36-29

Project Definition ..............................................................................36-37

Workforce ...........................................................................................36-40

Engineering ........................................................................................36-50

Construction Overhead - Prime Contractor Basis......................36-58

36Chapter

G3 © ICARUS Corporation, 1998.

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© ICARUS Corporation, 1998. G3

ICARUS Reference

36-3Chapter 36: ICARUS Technology


Introduction to Areas

In ICARUS 2000 and ICARUS Process Evaluator, areas can be defined as a way to describe theconstruction methodology that prevails for that section of the project. Specifications are defined foreach area. These specifications include mechanical design specifications for each of the majoraccounts along with dimensions and indexing.

Reasons for Areas

Areas are defined for the following reasons:

• Cost accounting: Project components arranged into areas are easier to review. Many of thecost reports are arranged by area.

• Site conditions: Different sections of the plant site may contain different site conditions. Theuser can define these site conditions, such as soil type, instrumentation type, electrical class anddivision, or area type (on-grade, in-steel, etc.), in the area specifications. As a result, the siteconditions will impact the area bulk quantities, costs, and man-hours developed for an area.

• Contractor assignments: As contractors and contractors’ scope of work (CONSETs) aredefined, areas are then assigned to the defined scope of work. Areas can affect the flexibility ofassigning work to contractors. For example, if different contractors are responsible for abovegrade and below grade piping, each of these can be defined in separate areas and assigned to theappropriate contractors. Without these being defined in separate areas, it would be impossible toassign above grade and below grade pipe to different contractors.

• Process control and power distribution: Once the user defines the major process controland power distribution elements in the estimate, the user must assign areas to defined controlcenters and unit substations. For example, the total instrumentation developed for an area wouldbe used to size that area’s Control Center. Details of process control and power distribution aredeveloped and reported in the last area sections of the Detailed Bulk report and Area Bulksection of the Equipment List report for the last area. It is suggested that users define one lastarea as an OFFSITES/PROCESS & POWER area to separate the numerous details developed forProcessControl and Power Distribution from all other detail.

• Importing: When defining areas, keep in mind that whole areas and their components can beimported into other projects with matching country base, currency and units of measure.“Checklist” areas can be created as a way to prevent from forgetting typical project componentsin a new project estimate. An example of this would be a Sitework Checklist Area that wouldinclude all typical sitework items. Once imported into a project, sitework items that are notneeded in a project would be deleted and design specifications for the different siteworkcomponents would be revised.

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ICARUS Reference

Area Types

There are several different area types to select from. Each area type has its own set of default area bulks thatwill be developed. The different area types that may be defined are:

• On-Grade (with or without concrete pad)This is the default area type. By default the system develops the following bulks for an on-grade area:

• Perimeter lights every 50 feet.

• Lights are supplied from 1 or more area panelboards, supplied from a disconnect switch inthe MCC for this area.

• A ground grid the length of the perimeter.

• A concrete pad will be developed based on the dimensions of the area if the PAD option isselected.

• Open-Steel (OPEN)The following area bulks will be developed for an OPEN-STEEL type area:

• A multi-level, open-steel structure developed based on the dimensions of the area.

• One in-steel level for every 15 feet [6 M] of height.

• 75% of each level is floor grating with perimeter toe-plate and handrail.

• Pendant lights supplied from a local panelboard developed just to supply the lights in the structure.

• Structural members are sized for both dead and live loads based on the weight of equipment “hung” inthe structure. See figure A.1 for information on “hanging” equipment. Note: Equipment items thatare “hung” lose their foundations and support steel is provided to tie the item into the structure.

• Bracing is provided according to wind and seismic requirements.

• A ground grid the length of the perimeter.

• Existing Open-Steel (EX-OPEN)The following area bulks are developed for an EX-OPEN type area:

• All bulks that were developed for the OPEN type area will be developed except for the OPEN STEELSTRUCTURE as it is assumed to exist.

• Support steel is provided.

• ModuleThese area bulks are developed for a MODULE type area:

• A SKID (flat base structural model) module is developed by default or the user can select from thefollowing module types:

- Cylindrical 1-bay cold box- Rectangular, 1-bay cold box fully enclosed- Rectangular, 1-bay cold box 3 sides enclosed- Module lighting.

• Ground grid



Figure A.1: How ICARUS 2000 Hangs Equipment in an OPEN or EX-OPEN Area

Equipment Automatic Set Skirt/Leg = 0

Shell & Tube Exchanger Yes

Horizontal Tank Yes

Thermosiphon Reboiler Yes

Other reboilers No

Agitated Tank Yes

Double-Diameter Tower Yes

Packed Tower Yes

Trayed Tower Yes

Vertical Tank Yes

All others (pumps, etc.) No or N/A No or N/A

There are area bulks that are automatically generated for an area. These area bulks are developed to meet therequirements of the area and can be suppressed in the Area Specifications for that area. If you execute aproject level estimate, you can review these area bulks in the Area Bulks section of the Equipment List report.

Figure A.2 Summary of Area Bulks Automatically Developed for Each Area

Area Area Types

Bulks On-grade Pad Open Ex-open Module

Area Lighting & Grounding X X X X X

Equipment Grounding X X X X X

Concrete Pad X

Open Steel Structure X

Module Structure X

Default Area Bulks

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ICARUS Reference

Area Specifications

For each defined area, the user may enter specifications that will affect designs and quantities of bulks in anarea. While most of the area specifications are design specifications that will override design specificationsentered at the project level, the most significant area specifications are those that will affect lengths of pipe,electrical cable, and instrument signal wiring or tubing. These length specifications include:

• Area DimensionsDefined in Area Type Definition, Area Dimensions are used as a default to develop lengths for all of thefollowing system developed items:

- Piping.

- Electrical cable/wiring.

- Instrument signal wiring /tubing.

Note: Area dimensions do not have any affect on user-added bulks, such as yard pipe, cable runs,signal wire runs, etc.

The user can enter area length(L), width(W), and height(H). Only area types OPEN or EX-OPEN willrecognize and use the height dimension.

One example of how the system uses Area Dimension is the determination of pipe lengths. If an areadimension of 30 X 30 is entered, the system will take ½ (L+W) of the area to determine the default finalcut-off lengths of pipe, so in the above example, ½(L+W)= ½ (30+30) = ½ (60) = 30. The default finalcut-off length of pipe in this area would be 30’. Any line of pipe that had an original length of less than30’ would be unaffected by this 30’ x 30’ area dimension.

Area Dimensions are used in a similar way to determine cable and signal wiring lengths in an area unlessthe user overrides this calculation with specific entries.

The area dimensions are also used to size and/or quantify area pads, modules, open steel structures,grounding, area lighting, concrete pads, etc.

• Pipe EnvelopeDefined in Area Pipe Specifications, Pipe Envelope takes precedence over Area Dimensions incalculating pipe lengths in an area. Just as Area Dimensions did in the above example, Pipe Envelopedefines the final cut-off length of pipe for all system developed piping in an area. The user can makeentries for Pipe Envelope length, width, and height as well as % Adjustment and Maximum Pipe Length.

The following is an example of how the system will use this information to calculate pipe length:

1.) The “standard length” is calculated using the line length equation.

2.) The “standard length” is multiplied by area pipe spec for % adjustment.

3.) The final cutoff length is calculated:

a) EQPIPELEN + 0.5 * HT

- EQPIPELEN=0.5*(Area Pipe Envelope L+W+H)- if not set, then EQPIPELEN=0.5*(Area L+W+H)

b) Then area spec for Maximum Pipe Length is applied.



• Electrical cable run lengthsDefined in Area Electrical Specifications, there are distance specifications available that will be used to calculatelengths for all system developed electrical cable in an area. These specifications include Distance to MCC andDistance to Panel.

• Instrument signal wiring or tubing lengthsDefined in Area Instrumentation Specifications, there are distance specifications available that will be used tocalculate lengths for all system developed signal wiring or tubing lengths in an area. These include Distance fromJunction Box (JB) to Control Center(CC).

Report Groups

All defined areas are assigned to defined Report Groups in the Area Tree diagram. Report groups are a way to groupareas together for reporting in various Report Group summary reports. For example, if you had a process area wheresome components were on-grade and some were in-steel, you could define two separate areas: an ON-GRADE areaand an OPEN-STEEL area. These two areas are separate to ensure that the appropriate bulks are developed, but can beassigned to the same REPORT GROUP so costs and man-hours can be summarized together in REPORT GROUPsummary reports.

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ICARUS Reference

All country base locations are based on a division of labor along craft lines. Each craft performs only thosework items assigned to it — pipefitters only perform pipefitting operations; welders only perform weldingoperations; etc. In ICARUS systems, work items can be reassigned to a craft to reflect site conditions.

This strict default division of labor is a necessary starting point if you are to be able to change the work rules. Itis only because hours are initially “booked” to the correct crafts that you can subsequently book them todifferent crafts and thereby change the division of labor appropriate for any contractor. This is done by creatinga new workforce and then reassigning the labor hours away from the default crafts to the new workforce crafts.

For example, a skid fabrication shop might be represented as follows:

1. Create a new workforce to be used by the skid fabricator. This workforce is initially an exact copy of thesystem’s default workforce. Change (or add) the craft names in the new workforce to reflect thosepresent in the skid fabrication workforce. For example, change “laborer” to “day-laborer,” add a newcraft called “mechanical,” etc.

2. Change the division of labor. Reassign labor hours booked to the default crafts in the workforce to thenewly-defined crafts. For example, reassign 100% of the labor hours booked to riggers andpipefitters to the new “mechanical” craft.

3. Enter the wage rate and productivity for each craft in the new workforce.

4. Link (assign) the new workforce to the skid contractor. Any work assigned to this contractor isperformed using the new workforce.

Using this method, up to nine distinct construction workforces for each project can be created. This permits thesimulation of an extremely complicated mix of contractors having diverse work rules.

ICARUS Systems are Based on Craft Labor



How Questimate Develops Material Costs

Mechanical DesignProcedure

Material Type

Rating

Quantity

Weight

Country Base Location,Currency and Exchange Rate

Code of Accounts (COA):Allocation

Code of Accounts Indexing:Indexing of Material Costs

Quality Adjustment forInstallation Materials for

a Project Component- By Account -

Lump Sum Material Cost

Design and Cost Basis

General Data DefinedDuring Start of a NewProject - New Basis

Design and Cost Basis

Project Component Specs

Project Component &Installation specs

Final reported value

In User's Currency& Revised COA

Reported Values

Base Code ofAccount

Base MaterialCost

Mechanical CostProcedure

Project Component &Installation Specs

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ICARUS Reference

Project Schedule

A project schedule is developed based on the estimate scope of work for a project estimate. This scheduleincludes dates and durations for design engineering, procurement, delivery of material and equipment, sitedevelopment and construction. The construction schedule is integrated with the cost estimate to provide thebasis for estimation of schedule-dependent costs such as equipment rental requirements, field supervision andconstruction management.

The schedule information may be reported in three different ways:

1. The total construction duration will be shown on the Project Data Sheet, and, if applicable, the constructiondurations for each contract will also be shown on the Contract Data Sheet.

2. If the Schedule report option is specified, the system generates two histogram reports, the Project CashFlow Summary and Project Manpower Schedule (which displays the manpower resources required for eachweek of the construction schedule). Manpower should also be provided for any contracts defined.

3. The Project Schedule Data may be used to develop barchart reports in addition to the histograms for greaterschedule detail.

The Project Schedule Data, with an entry for the date to start engineering, is required to generate the barchartreports. These standard barcharts are produced:

• General Schedule - Provides a balanced view of all phases of the project schedule.

• Engineering Schedule - Focuses on details of the design phase, such as the production of pipingisometrics, and on specific procurement items, showing only a single bar for allconstruction.

• Construction Schedule - Shows only a single bar for the design and procurement phases but focuses onmajor construction elements such as piperack erection and piping installation.

Each barchart may also show additional bars created by the user. Also, if contracts are used, another barchart isprovided for the Contracts Schedule. The barcharts appear within the body of the project estimate report and aduplicate is appended to the report.

The project schedule is affected by adjustments to engineering man-hours, field man-hours and productivity andconstruction workweek specified elsewhere and any schedule modifications requested in the Project ScheduleData. The techniques of the scheduling system are utilized in the logical sequencing of the adjusted design andconstruction tasks to produce a summary schedule. Simulation of delayed or accelerated schedules is possiblethrough the various adjustments available. However, the user interested in developing a detailed schedule forrush projects, or projects using offsite prefabrication, is advised to use the scheduling system, where control ofactivity logic is possible.

Regardless of whether the barchart reports are to be produced, the Project Schedule Data may be used to adjustthe schedule and therefore adjust the cost estimate. The data provides percentage adjustment fields for design/procurement duration, for delivery times and for construction duration. Changes to the system defaultequipment fabricate/ship times, which may increase or decrease the total construction duration, can be made invarious ways. A specific value for total construction weeks may be specified.



Equipment Fabricate/Ship Items

In the absence of user input, the system will use the fabricate/ship times shown in Table PS-2. If a percentageadjustment is specified for deliveries, these defaults will all be adjusted accordingly. An entry for a particularclass will be used exactly as entered. A fabricate/ship time entry for a particular piece of equipment will also beused as entered; all other equipment of the same class will be assigned the system default value as adjusted, orthe value of the class if specified.

Table PS-1: Equipment Procurement Lead Times

1 2 3Equip. Equipment Receive Receive FabricateClass No. Class Quotes Vendor Data and Ship

01 Process Vessels 3 4 1402 Towers 4 4 2603 Storage Vessels 3 4 3304 Pumps 3 0 1805 Compressors 6 8 24

06 Turbines 4 8 3207 Heat Exchangers 3 4 2008 Boilers 6 8 3209 Furnaces 4 6 2610 Air Coolers 4 4 18

11 Package Refrigeration 4 6 3012 Electric Generators 4 6 2213 Air Dryers 3 3 1614 Conveyors 3 4 2015 Mills, Crushers 6 6 30

16 Fans, Blowers 3 2 1217 Elevators 4 4 1618 Motors 3 4 1019 Dust Collectors 3 4 1420 Filters 2 3 12

21 Centrifuges 4 6 2822 Agitators, Mixers 3 4 1223 Cooling Towers 4 3 2624 Miscellaneous Equipment 4 4 1625 Pre-Engineered Package 4 4 24

26 Packings, Linings 3 4 12

Note: For field erected equipment, the schedule will be sequenced with the field erectionperiod included in the fabricate and ship delivery time.

1. No user adjustments available.2. User may specify a % adjustment with Project Schedule Data.3. A % adjustment or weeks may be specified with Project Schedule Data.

The user intending to substantially reduce the default fabricate/ship times is cautioned to specify a value for allclasses or use a percentage adjustment to deliveries, to avoid overlooking a longer delivery time for a minorpiece of equipment.

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ICARUS Reference

Barchart Report Format

For the user interested in restricting each barchart report to a single page to improve the appearance of thereport, the following table shows the maximum number of summary bars on each barchart (i.e., report length)developed by the system:

System Summary BarsWith Basic WithoutEngineering Basic

General Schedule 24 20Engineering Schedule 16 14Construction Schedule 19 18

The user may highlight up to five classes of equipment and up to five specific items of equipment which appearson all reports except the Contracts Schedule. Up to five user-defined bars may be added, which appear on theEngineering and Construction Schedules.

User Additions

Bars Equipment

General Schedule NA 10Engineering Schedule 5 10Construction Schedule 5 10

Since a single page report can contain only 24 summary bars, a combination of system summary bars and useradditions that exceeds 24 is printed on a second page.

The horizontal time scale is adjusted automatically by the system to show either six years, three years or one anda half years on one page-width as required.

Fabricate and Ship Weeks

When defining the equipment fabricate and ship time per class, you are specifying the number of weeks forequipment fabrication and shipping of vendor data. These times should be entered for any equipment classeswhose anticipated fabricate and ship time differs from the system default. Refer to “Equipment ProcurementSchematic” for the procurement/delivery sequence.

Impacting the Project Schedule

To produce a project schedule when using ICARUS 2000TM or COST® , an engineering start date must bespecified. (Specifying a construction start date is optional.) The system then develops a critical path method(CPM) planning schedule based on the estimate scope of work. The estimate scope of work is tied to theengineering and construction work items in the project. Included in this schedule are:

• Dates and durations for design engineering• Procurement• Delivery of materials and equipment• Site development• Construction.



Equipment Procurement Schematic

(mm) - The duration of these activities is a function of the task man-hours and the engineering staff allocated

(1) - Receive quotations. A delay of 2 - 6 weeks, which varies by equipment class.

(2) - These durations vary by equipment

The following items have an impact on the project schedule:

• Percentage adjustments for design/procurement duration, delivery times and construction duration• Project scope• Field labor shifts, productivities, etc.• Index man-hours• Percentage adjustments to man-hours through material/man-hours adjustments• Supplemental man-hours added through material/man-hour additions• Overrides to the system’s fabrication and ship times to increase or decrease the total construction duration

by equipment class (e.g., HE - 20 weeks) or by equipment item (e.g., DDT 101 - 10 weeks).

Remember that the project schedule is based on project scope. The project schedule is more realistic ifcomponents are specified correctly and accurately. Most importantly, keep in mind that the schedule is apreliminary conceptual schedule. The schedule is not for execution.

SpecsDesign

PrepareRequisition

Tab andRecommend

Vendor

ReissueRequisition

ObtainQuotations

IssuePurchase

Order

ReceiveVendor

Data

ReviewDesign

EquipmentSetting

Fabricateand Ship

(MH) (MH) (MH) (MH)

(MH) (MH)

1Day

(1)

1Day

0-8 WKS (2) 10-32 WKS (2)

End of Eng’gRelease for Purchase

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ICARUS Reference

Process Control

The Process Control Data may be used to specify the desired configuration and type of control scheme:

• Analog• Digital• Combinations of analog and digital control.

Overview

Two types of process control systems are discussed here:

• Analog• Distributed digital control.

The user may select either type, or combinations of each type, to represent the desired control scheme.

The process control scheme may be defined by two types of data. Control Center data defines a group of analogor digital devices of similar types, assigned by the user via a Control Center Reference Number, to providecontrol system functions to one or more Areas for Sub-units.

Operator Center data defines a distributed digital control Operator Center; i.e., a staffed center consisting ofvideo display and computer-controlled indicating, recording, controlling, processing, and transmitting devices.Operator Centers are used in conjunction with Control Centers only for digital control schemes.

Groups of analog devices are defined only by analog types of Control Centers.

If Process Control Data is not defined by the user, the system develops one digital Control Center and oneOperator Center for the project to be estimated.

Note: The costs of Operator and Control Centers will be reported in project estimates only, against theInstrumentation account for the last Area in the project. Accordingly, control room specifications and otherinstrumentation-related items to be reported with project process control items should be included as part of thelast Area.

Introduction

The system is designed to develop a list of quantities of materials, material costs, and field manpower needed toinstall items relating to the instrumentation and control of process equipment.

The user’s equipment list, as organized into Areas, is used to develop individual items of instrumentation in thefollowing major categories.

• Sensors and transmitters• Panels and panel mounted devices - analog; front/back of panel, ESD (emergency shut-down), annunciators,

switches, etc.• Supply and signal tubing, wiring, bundles• Supports, racks, enclosures, junction boxes• High voltage instrumentation (switches, switch wire, solenoids)• Computer-controlled instruments: controllers, process interface units (high and low entry level signals),

operator stations, co-axial data cable, redundancy, transducers, barriers, etc.• Final control elements.



The user guides the system in developing instrumentation by defining the desired control scheme at four discretelevels which are listed here and discussed below:

• Equipment: Instrumentation Volumetric Model

• Area considerations (Area, Sub-unit)

• Control Center: one or more, each serving a group of areas, containing panels, mounted instruments(if analog) or computer-controlled instruments (if digital)

• Operator Center: one or more, if required, each serving one or more Control Centers, containing computerconsole operator stations for purposes of processing:

- process information- alarm conditions- control signals- records for display and printing.

Equipment-Instrumentation Volumetric Model

Each item of equipment selected by the user is assigned a model for instrumentation. Specific VolumetricModel drawings in the Piping and Instrumentation Drawings illustrate piping (by line number) andinstrumentation (by loop number).

Volumetric Models for instrumentation of process equipment are assigned based upon equipment item and type,function to be performed, and special user requirement identified by applicable type or installation bulks.

For example, a tower would be instrumented as a distillation tower (default application type) unless it wasredefined to function as an absorber, thereby receiving piping and instrumentation for use as an absorber.

A tank, horizontal or vertical, will be instrumented for normal process conditions. However, the user maydesignate knock-out or storage application requirements thereby revising the nature of piping andinstrumentation to be provided to the vessel.

An installation bulk feature permits the user to create an entire instrumentation scheme for any item ofequipment, or for the user to modify the system’s instrumentation Volumetric Model on a loop by loop basis -adding a new loop, deleting a system defined loop, or appending loops to a loop thereby providing for extremelyflexible instrumentation schemes.

In each case, instrumentation materials, quantities, material costs, and field man-hours to install equipmentinstrumentation would be reported against the item of equipment. Material items include:

• All local instrumentation, sensors, transmitters, air supplies, tubing, wiring, control, and relief valves

• Equipment panel and instrument costs for those items of equipment designated by the system (turbine, gascompressor) or by the user to bear local panel mounted instruments.

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ICARUS Reference

Area Considerations

The concept of an Area and Sub-unit are discussed in the Area section. The Area or Sub-unit may be viewed,for present purposes, as an area or section of the project, and includes all equipment and bulk items socontained.

For instrumentation, an Area or Sub-unit grouping of equipment items would be characterized by a unique set ofthe following:

• Designated Control Center• Design level - standard or full. (See Piping and Instrumentation Drawings.)• Type of instrumentation - pneumatic or electronic• Type of transmission, thermocouple extension cabling, and nature of support• Average length of transmission line from equipment item to Control Center• Cable tray dimensions• Electrical classification to establish cabling and barrier requirements.

It is important that these area criteria affect the installed cost of each equipment item requiring instrumentation;the design level and type of instrumentation are most important influences on instrument selection, quantitiesand costs. The remaining area criteria heavily influence the lengths and type of signal wire cable and tubing andare not insignificant.

Instrument materials, quantities, costs and field man-hours to install and test will be developed by the system andassigned and reported against the area. These include field junction boxes and wire, cable and tubing runs,conduit, cable trays serving the area and communicating with the designated Control Center.

Control Centers

The system surveys the various items of equipment within an Area for Control Center instrumentationrequirements. More than one Area may be delegated to a Control Center; several Control Centers may bedesignated by the user. If of the digital type, such Control Centers would normally be unstaffed electroniccenters that may be grouped together for operator control using the Operator Center concept described in thenext section.

Two classes of Control Centers are defined by the following characteristics:

1. Analog Control Centers -

• Electrical, panel mounted instruments based upon pneumatic, electronic, high voltage switching.

• Instruments to record or indicate the value of a variable, or develop and transmit a control signal(pneumatic, electronic, high voltage switch signal) to field mounted control elements.

• Four types, depending upon desired extent of graphic panels:

- NONE totally devoid of instruments, panels, etc.- CONV conventional panel board (4.75 instruments per linear foot [15.6 per meter])- SEMI semi-graphics panel (3.75 instruments per linear foot [12.3 per meter])- FULL full graphic display (2.5 instruments per linear foot [8.2 per meter]).

• Staffed by Control Center operators.



2. Digital Control Centers -

• Devices, i.e., process interface units, for conversion of analog signals (pneumatic, electronic, high voltageswitching) into digital computer signals to be utilized at the designated Operator Center.

• Reconversion of computer developed digital control signals into analog signals (pneumatic, electronic,high voltage switch signals) for transmission to field mounted control elements.

• Limited pretreatment of digital signals (arithmetic, logical, combinatorial).

• Display devices appropriate to testing, maintenance functions.

• Not generally staffed by operator personnel except for maintenance and testing.

Designation of Control Center Requirements

The user may designate the desired control scheme, first at the Unit Area level for purposes of designating arearequirements and then at the Control Center level to establish the nature of the Control Center. Areas andControl Centers are linked together by a user assigned Control Center Reference Number; the reference numberis defined for each Control Center and referenced for each Unit Area assigned to transmit/receive signals to/fromthe defined Control Center.

Absence of User Control Center Designation

Should the user not define or refer to a Control Center for one or more Areas, the system develops a digitalControl Center for those units. This system-developed Control Center is referred to as Control Center ReferenceNumber “0” in SCAN and PROJect Estimate reports. Quantities, costs, and man-hours for instrumentation itemsrequired to support those Unit Areas unreferenced by the user will be developed and listed by the system forControl Center “0”.

Operator Centers

The system is designed to evaluate, size, and develop installed costs of digital control and data processingequipment, cabling and furnishings for Operator Centers.

The major cost items considered are:

• CRT’s - though termed CRT’s (cathode ray tubes) these are microprocessors that provide supervisory,control, and data processing functions in addition to multi-color display and keyboard entry functions.

• History module - hardware and software devices for displaying or recording the history of a variable(important for large or complex process, less so for small process facilities).

• Printers - to permit printed output of selected current or historical values of variables; to log the operationsof the center.

• Engineers keyboard - for building and changing configurations or displays.

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ICARUS Reference

• Local Control Network (LCN) - principally fiber-optic cable (redundant) and associated microelectronics todirect data “moving” along the data path to and from:

- devices in one Operator Center- one Operator Center and another- the Operator Center and each of its subordinate Control Centers.

• Other data processing peripherals and furniture.

The user may designate the type (local or universal) and size of an Operator Center, or alternatively permit thesystem to determine Operator Center requirements.

Sizing an Operator Center is accomplished by the system by matching the list of items with process equipmentrequirements. The principal sizing parameters are the number of digital control loops and control points to beserviced by the Operator Center. These parameters are obtained at the Operator Center level according to thefollowing hierarchy:

• Operator Center• Control Center• Area• Equipment and piping control instrumentation.

Thus, control instrumentation requirements at the equipment level are used first to size individual ControlCenters and then to size each Operator Center upon grouping relevant Control Center requirements.

Example

In the sketch below, a proposed project is to be provided with a combined analog/digital control system for fiveareas, i.e., Area 100, 200, 300, 400, 500. One section of Area 100 and all of Area 500 is to be provided with aconventional analog control system. Further, suppose that Area 100 and 400 require individual process interfaceunit locations, i.e., different Control Centers.

Operator Center (90)

Digital Control Center (10) (20) (40)

Analog Control Center (11)

Area Area Area Area Area AreaArea Name 100 100 500 200 300 400

Area Reference Number 01 01 05 02 03 04



Because Area 100 requires both digital and analog control, it is convenient to split it into two Areas, one a Sub-unit of the other, and thereby enable the description of one portion as digitally controlled and the other as analogcontrolled.

Reference numbers need be assigned to the Unit Areas and centers. Suppose:

MAIN-100: Area No. = 01SUB-UNIT 100: Area No. = 01AREA-200: Area No. = 02AREA-300: Area No. = 03AREA-400: Area No. = 04AREA-500: Area No. = 05

and for the Control Centers:

Digital, for MAIN 100: Center No. 10Analog, for SUB-UNIT-100: Center No. 11Digital for AREA-200: Center No. 20Digital for AREA-300: Center No. 20Digital for AREA-400: Center No. 40Analog for AREA-500: Center No. 11

and for the Area, a reference number of 90.

The Project Control Data

The Project Control Data would be prepared as follows:

Project ControlCenter No. Type

90 Operator Center10 Digital Control Center20 Digital Control Center40 Digital Control Center11 Analog Control Center

Note that additional Project Control Data may be appended to this list to expand the control system for other yetundefined process areas. Up to five independent Operator centers may be defined along with their subordinateControl Centers to a combined maximum total of 20.

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ICARUS Reference

The Area Data for this Example

In the text below, the Unit Area Data is illustrated; the term “etc.” denotes all remaining area information, i.e.,the complete set of area data and the component descriptions. Area 100 is split into two sub-units, namedMAIN-100 and SUB-UNIT-100:

Area Title MAIN-100Area Number 01Control Center Number 10

etc.

Area Title SUB-UNIT-100Area Number 01Control Center Number 11

etc.

Note: The Control Center Number is 10 for the Main Section and 11 for the Sub-unit.

Then for the remaining units:


etc.


etc.


etc.


etc.

Note: AREA-200 and AREA-300 share Control Center Number 20; SUB-UNIT-100 and AREA-500 shareanalog Control Center Number 11.



Reporting of Results for this Example

PROJect estimate reports would be prepared for this example as follows:

• Equipment: instrumentation local to the item would be reported in the detailed listing of field materials andmanpower for the item of equipment.

• Area: junction boxes, bundle runs (and associated tray and conduit) would be developed as an Unit Areacost for each Sub-unit; instrument testing would be developed for each area.

• Project costs: all instrumentation costs for the project would be developed and reported against the lastUnit Area in the project. Analog Control Centers would be sized and reported independently ofdigital centers. Digital Control Center Number 10 would be sized based upon the requirements ofequipment in MAIN-100. Center Number 20 would be sized from requirements of both AREA-200 and300; and Center Number 40 from AREA-400 requirements. The Operator Center would be developed fromgroup requirements, i.e., those of Control Centers 10, 20, and 40.

Notes for Defining the Operator Center

The following entry field notes are helpful when defining the type of Operator Center to serve theinstrumentation requirements of subordinate digital Control Centers. A maximum of five sets of PC OPS Datamay be used.

An Operator Center is not provided in support of analog Control Centers.

Entry field Note

Operator center no. The Operator Center Reference Number is a unique number assigned by the user toidentify each digital Operator Center. The reference number, from 01 to 99, is usedto identify the Operator Center in detailed system reports.

Conset The contract set number (CONSET) identifies which group of contractors isperforming work in this Operator Center. The CONSET number must have beenpreviously defined with Contract Scope Data.

CONSET must be specified for multiple contractor type estimates. CONSET is notapplicable to prime contractor type estimates.

Configuration The configuration consists of items affecting the design of a Universal OperatorCenter.

No. of operator CRT Specifies the total number of Operator CRT’s (cathode ray tube terminals) requiredfor the Operator Center; includes touch screen console and operator keyboard.Micro-electronics associated with the CRT’s provide supervisory and controlfunctions.

No. of indicating CRT Specifies the total number of Indicating CRT’s required for the Operator Center.Upper tier units for indicating only. The number specified must be less than or equalto the number of Operator CRT’s and the sum of the Operator CRT’s and IndicatingCRT’s must be 10 or less.

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History module Indicates inclusion or exclusion of the history module for trend analysis.

Engineer’s keyboard: Indicates inclusion or exclusion of an engineering keyboard for configuration anddisplay building.

LCN Cable Indicates inclusion or exclusion of the Local Control Network Cable. The Cable is apair of fiber-optic cables connecting up to 10 Universal Operator Centers with theirassociated Control Centers.

Power supply data The Power Supply to Operator Center specifies the feeder type and source of powerfor this Digital Operator Center.

Unit Substation ID A value must be specified if Power Distribution Data is present in the project or anERROR condition will prevail. If Power Distribution Data is not provided, thesystem will generate a MAIN and UNIT substation to serve power at the voltage(s)required by loads in this Operator Center. The system generated UNIT substation(s)will be assigned ID=0.

The Reference Number consists of two parts:

ID - The ID portion of the Reference Number of the stand-alone UNIT orprinciple UNIT substations in the family of UNIT substations serving powerto this Operator Center.

No. - The “NO.” portion of the Reference Number of the subordinate Unitsubstation in the family of UNIT substations serving power to this OperatorCenter.

Please see Power Distribution Data for further information.

Cable type Denotes the type of power cable to be used for this Operator Center.

Cable placement Indicates the desired method of cable placement for this Operator Center.

Valid entries include:

• ABOVE - Cable run above ground.

• BELOW - Cable run below grade (not available for wire-/cable in trays);includes trenching, sandbed and backfill; one trench allocated for four equipmentitem cable runs; cable protection type is defined by the user by General ProjectData - Electrical.

Distance to MCC Specifies the distance to the motor control center serving power to this OperatorCenter.



Notes for Defining the Standard Control Center

The following entry field notes are helpful when defining the standard control center.

Entry field Note

Control center no. The Control Center Reference Number is a unique number, from 01 to 99, assignedby the user to identify each Control Center to serve the instrumentation requirementsof the various Area or Sub-units. This is the same reference number used in theArea Description to identify the relationship between the Area and Control Center.

Conset The contract set number (CONSET) identifies which group of contractors isperforming work in this Control Center. The CONSET number must have beenpreviously defined in Contract Scope Data.

A Control Center Reference Number must be specified for multiple contractorestimates. This field is not applicable for prime contractor type estimates.

Control center type Specifies a symbol representing the types of Control Center, devices, and generalconfiguration.

Valid entries are:

Analog Control Center• CONV - Conventional display.• SEMI - Semi-graphics display.• FULL - Full graphics display.• NONE - Existing Control Center; costs and manpower pertaining to all

instruments, panels, and peripheral equipment will be excluded fromthe estimate.

Digital Control Center• DDCTL - Distributed digital Control Center.

Distance to OPS ctr For distributed digital Control Centers only. Specifies the distance between thisControl Center and the supervisory Operator Center. The range is 0 to 5000 FEET[0 to 1525 M]. A redundant data digital path or “highway” will be developed usingthis distance.

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Design data Design allowance, as a percentage (0 to 100%) of the number of instrumentationpoints, loops, devices, etc., that are developed by the system from VolumetricModels or from user-defined loops of instrumentation.

Note: 1. If this PC CTL Data is for an analog Control Center (type symbol = CONV,SEMI, FULL, NONE), the only functional design allowance is that forSpares.

If for a digital Control Center, allowances apply to each of the fivecategories.

Note: 2. The design allowance will be applied on a percentage basis, i.e., 100%indicates a one for one basis (exception, 100% for recorders is a one per tenbasis).

Spares(%)If an analog Control Center, allowance for spares will be delegated the sizing andselection of field junction boxes, and pneumatic and cable bundle runs from the fieldjunction box to the Control Center.

If a digital Control Center, the spares allowance will be delegated to junction boxand tube and cable bundle sizing and selection, as above, and additionally to spareboards in either multifunction controllers or process interface units for (a) controllers,(b) recorders, and indicators, and (c) thermocouples.

Analog indicators(%)For digital Control Centers only. The design allowance for analog indicator typeinstrumentation to be installed in the Operator Center for this Control Center. Theallowance will be applied to develop additional analog indicators (TI, FI, etc.) inOperator Center cabinetry based upon the number of indicating loops serviced by theControl Center.

Analog recorders(%)For digital Control Centers only. The design allowance for analog recorder typeinstrumentation to be installed in the Operator Center for this Control Center. Theallowance will be applied to develop additional analog recorders in Operator Centercabinetry based upon the number or recording instruments serviced by the ControlCenter.

Redundant control(%)For digital Control Centers only. Indicate the percent of the controllers determinedby process specifications that require redundancy. Redundancy is applied at a levelof one additional controller for up to 8 controller requiring redundancy.

Battery back-up(%)For digital Control Centers only. The design allowance for battery operated back-uppower supply. The design allowance provides battery backup for multifunctioncontroller cabinets only.



Power supply data Specifies the feeder type and source of power for this Control Center.

Unit substationSpecifies the Reference Number of the UNIT substation serving power to thisControl Center. The Reference Number consists of two parts, as defined bythe user with Power Distribution Data.

ID - The ID portion of the Reference Number of the stand-alone UNIT orprinciple UNIT substations in the family of UNIT substations servingpower to this Control Center.

No. - The “No.” portion of the Reference Number of the subordinate UNITsubstation in the family of UNIT substations serving power to thisControl Center.

Cable typeDenotes the type of power cable to be used for this Control Center.

Cable placementIndicates the desired method of cable placement for this Control Center.

ABOVE - Cable run above ground.BELOW- Cable run below grade (not available for wire/cable in trays);

including trenching, sandbed and backfill, one trench allocatedfor four equipment item cable runs; cable protection type isdefined by the user in the General Project Data - Electrical.

Distance to MCCSpecifies the distance to the motor control center serving power to this ControlCenter.

Notes for Defining the PLC Control Center

The following entry field notes are helpful when defining the PLC control center.

Entry field Note

Control center no. The Control Center Reference Number is a unique number, from 01 to 99, assignedby the user to identify each Control Center to serve the instrumentation requirementsof the various Unit Areas. This is the same reference number used in the Unit AreaDescription to identify the relationship between the Unit Area and Control Center.

Conset The contract set number (CONSET) identifies which group of contractors isperforming work in this Control Center. The CONSET number must have beenpreviously defined in Contract Scope Data.

A Control Center Reference Number must be specified for multiple contractorestimates. This field is not applicable for prime contractor type estimates.

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Power supply data Specifies the feeder type and source of power for this Control Center.

Unit substationSpecifies the Reference Number of the UNIT substation serving power to thisControl Center. The Reference Number consists of two parts, as defined bythe user with Power Distribution Data.

ID - The ID portion of the Reference Number of the stand-alone UNIT orprinciple UNIT substations in the family of UNIT substations serving powerto this Control Center.

No. - The “No.” portion of the Reference Number of the subordinate UNITsubstation in the family of UNIT substations serving power to thisControl Center.

Cable typeDenotes the type of power cable to be used for this Control Center.

Cable placementIndicates the desired method of cable placement for this Control Center.

ABOVE - Cable run above ground.BELOW- Cable run below grade (not available for wire/cable in trays);

including trenching, sandbed and backfill, one trench allocated for fourequipment item cable runs; cable protection type is defined by the userin the General Project Data - Electrical.

Distance to MCCSpecifies the distance to the motor control center serving power to this ControlCenter.



Overview of System Input Specifications for Power Distribution

The following figure graphically displays the four levels of input specifications for defining electricalinstallation bulks:

1. Project level2. Area level3. Component Level4. Component Installation Level.

The electrical input specifications, which include default values that may be overridden, take a few minutes todefine for even the most detailed power distribution network.

At the component level, process equipment, plant bulks and buildings give rise to electrical bulks. Installationprocedures are available for quoted items as well as items from the user library of components.

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Overview of System Input Specifications for Power Distribution

System orUser- Defined

InstallationProcedures from

the Library

Special Adjustmentsto

Material Costand/or

Man-hours

User Libraryof

Components

QuotedEquipment or

Bulks

System Bankof

Components

MechanicalDesignBasis

Area TypeAreaCost

Reporting

Cost Basis- Country Base

(Required)- Currency

Code of AccountReporting

- Indexing LocalMaterial Costs

- Indexing LocalMan-hours

Units of Measure

Contactor'sConstructionWorkforce

Contractor'sScope of Work

Power Distribution Electrical- Power Supply

(Principal/Ancillary)

- Mid Voltage- Low Voltage- Max Driver

Power atLow Voltage

Area Cabling Type, Placement

One-Line Network- Pole Lines- Main Substations- Unit Substations- Areas to be Served- Process Control

Centers to beServed

Sets of Contractors

Design Criteria- Principal/Ancillary Supply- Feeder/Primery Voltage- Single/Dual Tap- Radial/Spot Distribution- Feeder Cable Type,

Placement- Feeder Cable Length- Required Capacity- Power Factor,

Demand-Diversity- Factor, Excess Capacity- Exclude/Delete/Install

Only: Transformer,Switchgear, MCC

Indexing Materials,Man-hours

Ambient Temperature(Low, High)

Electrical- Server Substation- Class/Division- Cable Distances

- Equipment to MCC- Equipment to Panel

- Cable Type Placement- Cable Tray Length, Width- Lighting Transformer

Requirement- Area Lights,

Grounding (yes/no)

Process Equipment

Plant Bulks

Buildings

Process Equipment

Bulk Items

Equipment Models

Unit Costs

Additions

Percentage Adjustment

Special Instructions

Electrical- Modify System Model- User's Model

ProjectExecution

Plan

Power andControl

Systems

MechanicalDesignBasis

ProjectCost

Reporting

Project Level Specifications Elect r ical

Area Level Specifications Elect r ical

Component Level Specifications Elect r ical

Component Installation Specifications Elect r ical



Power Distribution

The Power Distribution Data specifies the configuration and size of a project’s electrical power distributionsystem. The user may specify the location and size of each transmission line, main and unit substation, thedegree of redundancy, and the type and method of placement of distribution cable.

The Power Distribution Data works in conjunction with the voltage levels defined by the user for GeneralProject Data and Area specifications and component requirements within the unit.

Most users define the distribution configuration (e.g., which main substation is to feed which “downstream” unitsubstation) and cable placement. The system will then size the components based upon power requirements tobe fulfilled in each area by drivers, lighting, tracing, etc. and then size unit and main substation components,always heading “upstream,” to size the transmission line.

Mode of Supply and Distribution

The system offers the user a choice of either a US-based or UK-based mode of electrical power supply,distribution, and associated components. The mode is currently determined by the user’s selection of thecountry base location. The following table identifies the default values and principal differences between thetwo bases.

Principal Differences of Electrical Power Supply Between Country Base Location

Electrical Power Supply Items US Base UK Base

Line or feeder voltage 69 KV at 60 HZ 66 KV at 50 HZ

Main Substation 13.8 KV 11.0 KVSecondary voltage

(distribution and equipment voltage)

Unit Substation 4160 V 3300 VSecondary voltages 480 V 415 V

(distribution and equipment voltages)

Cable Types Wire (individual Multi-core cable onconductors) on tray or in conduit,tray or in conduit, or armored cableor armored cable

Cable Gauge AWG MM2 gauge

Power Distribution Components

Power distribution components are sized and cost estimated based on information provided with General ProjectData, (project cabling and intermediate voltage levels), the Power Distribution Data (distribution scheme), theUnit Area Data and the list of equipment and bulk items requiring electrical power.

Figure PD-1 serves two purposes. The left side of the figure lists the major power distribution components thatare designed and reported by the system. The right side is a schematic of a sample power distribution network.

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Figure PD-1: Illustration of Power Distribution Components

The individual components constituting a typical power distribution system (detailed data instructions follow).



Primary Feeders - Transmission Lines

Electrical power for a processing facility is either generated directly by the consumer or transmitted to theprocessing facility at high voltage (generally less than 250 KV) on overhead transmission lines. Primary feederlines run on poles from the grid tie-in to a dead-end structure in the main substation switchyard.

Main Substation

The main substation consists of one or more main transformers that distribute power through switchgear to unitsubstations.

The main transformer reduces the voltage of the incoming power (at the transmission line voltage) to a level atwhich it may be safely and economically distributed through switchgear to:

1. Unit substation for further transformation and distribution at a lower voltage2. Drivers in the 11-14 KV class within the process plant.

A disconnect switch isolates each main transformer from its power supply when necessary, while the oil circuitbreaker protects against abnormal conditions. Oil circuit breakers (O.C.B.) are generally used in high voltage(over 10 KV) applications.

The main substation switchgear protects each unit substation from damage due to abnormal operatingconditions. The main substation switchgear includes circuit breakers and metering devices that can detect anabnormal condition and automatically open the current-carrying circuit in which the fault occurs.

Cable from the main substation terminates at either unit substations or at motors requiring power at the highvoltage supplied by the main substation.

Unit Substations

Electrical equipment is normally not evenly dispersed throughout a process facility. Heavy power users (pumps,compressors, etc.) usually are located within well-defined boundaries. The substations serving these areas ofhigh load-density are called unit substations or load centers because they are located near the center or theelectrical load.

The transformer in the unit substation reduces the voltage of power supplied by the main substation to thevoltage required for the equipment served by this substation. The power path consists of motor starters, powercable, and control wire.

The on/off switch for the motor is connected by control wire to a set of contacts in the motor starter, which,when closed, allows power to be sent to the motor.

The motor starter provides a means of starting and stopping the motor and also protects the motor fromabnormal operating conditions.

When several motor starters are installed together in a common cabinet, they become a motor control center(MCC). Each MCC is protected from abnormal operating conditions by unit substation switchgear.

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Redundancy

When designing an electrical distribution system, a decision must be made as to the degree and type ofredundancy to be built into the power distribution system. The greater the degree of redundancy, the morereliable the system. The additional equipment required for increased reliability will make the power distributionsystem more expensive.

The system offers the user two options:

1. The simple radial system2. The spot network system.

Both radial and spot systems are illustrated in Figure PD-2.

The following table lists the characteristics of each option.

Characteristics Simple Radial Spot Network

Redundancy 0% 100%

Cost Less expensive More expensive

Reliability Less reliable More reliable

Typical usage:Spare parts On-hand ScarceSkilled maintenance On-hand Scarce

Severity of shutdown Not critical Critical

Referring to Figure PD-2A for an illustration of a simple radial system, a single main substation transformer isshown to distribute power to two unit substation transformers and a 5,000 HP motor. The unit substationtransformers in turn are shown to distribute power via switchgear and MCC’s to the equipment in theappropriate Areas.

Should a unit substation or main substation transformer fail, the equipment served by these would beinoperative.

The spot network system has 100% redundancy. It is the most expensive and the most reliable powerdistribution system. Each set of switchgear is fed by two transformers. Either transformer is capable ofhandling the entire electrical load by itself. This system is commonly used in remote locations wherereplacement parts and skilled power system maintenance personnel are scarce.

Figure PD-2B is an illustration of a spot network system. Two transformers in a single main substation areshown delivering power to two unit substations. Each unit substation contains two transformers which in turndistribute power via switchgear and MCC’s to the process equipment classified in the appropriate Area.

Should one transformer fail in either the main or unit substation, the companion transformer would carry theentire load.



Figure PD-2A: Schematic - Simple Radial System

Figure PD-2B: Schematic - Spot Network System

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Some sections of a process plant are more critical to the continuous operation of the plant than other sections.For example, a section of the plant which operates in the batch mode may have sufficient surge capacity so thatthe rest of the facility would continue operating until repairs were made if this section lost power. The user maytherefore want to specify some substations to be spot network systems and others to be simple radial systems.Further, one user might require several main substations. A general example showing combinations of multiplesystems of simple radial and spot networks is shown in Figure PD-3.

Usage Instructions

Power Distribution Information

The Power Distribution Data provides the means of designating each transmission LINE, MAIN, and UNITsubstation and the cable between them.

The transmission line provides power to a “family” of MAIN and UNIT substations.

If the MAIN substation provides service to one or more UNIT substations, each may be described in detail usingthe input parameters in the Power Distribution Data.

A unit substation may be designated to supply power to one or more areas, and/or to supply power at reducedvoltage to another UNIT substation. In the latter case, the higher voltage UNIT substation is termed a principleUNIT substation, providing power to one or more subordinate unit substations. The relationship betweenprinciple and subordinates is indicated by defining a group “ID” and individual member “No.”, thus forming theunit substation reference number.

The Substation Reference Number is important for accumulating power usage. This reference number points tothose Unit Areas to be served by the referenced unit substation.

All equipment in an Area, except motors driven at the distribution voltage, must be served by the referencedUNIT substation. Should a motor require power at the distribution voltage, than a separate power line wouldautomatically be “drawn” from the MAIN substation serving that unit. Should a motor require power at somevoltage not supplied by the referenced UNIT substation, then the system will make that voltage available by:

1. Creating a new UNIT substation that draws power from the MAIN substation serving the referenced substation, if it is of single tap type, or

2. Drawing power form another tap from the referenced substation, if it is of the multi-tap type.

Substation Buildings

Substation buildings are not automatically generated and must be specified separately using the Building Data.

Non-Standard Power Networks

The user may wish to incorporate a power distribution network of special design. Practiced users use a strategybased upon one or more system power estimates, using the system design methods in combination with user-selected power equipment bulk items.



Figure PD-3: Illustrative Example of Multiple Main and Unit Substationswith Radial and Spot Network Systems

Unreferenced Area Requiring Power

One UNIT substation is generated to serve those Areas for which a substation reference number was notspecified.

Absence of Power Distribution Data

If no Power Distribution Data is specified, the system generates one UNIT substation and one MAIN substationto serve the entire facility. The characteristics of the substations and components are determined from thedefault values for the Power Distribution Data.

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Reporting of Results

Project estimate reports will be prepared as follows:

1. Component: Electrical materials local to a component would be reported in the detailed listing of field materials and manpower for the component; e.g., power and signal cable, local and remote start/stop switches, indicator lights, electrical heat tracing, lights, masts, and grounding.

2. Area: MCC (Motor Control Centers cabinetry and starters), MCC equipped space (empty cabinetry), area lighting, lighting and heat tracing transformers and associated panels, switchgear and cabling, ground grid, cable trays testing.

3. Project: UNIT and MAIN substation costs of transformers, switchgear, cabling, transformer concrete pads, grounding, transmission LINE, structures, testing, etc; costs are reported against the last Unit Area in the project data.

Power Description Data

A series of data is used to identify a unique segment of the power distribution network. Individual types of oneor more Power Distribution Data includes the following:

• Transmission LINE• MAIN substation• Stand-alone UNIT or family of UNIT substations.

The sequence of Power Distribution Data designates the top-down hierarchy of the user’s power distributionnetwork.

If no Power Distribution Data is specified, the system sizes and costs a MAIN substation and UNIT substation toprovide power to the various load centers contained in the Unit Area descriptions. The characteristics of thesubstations and electrical components are defined by the General Project - Electrical Data, Unit Area - ElectricalData, and power requirements (power and supply voltage). The entire power network is conditioned by thecountry base location defined for the project.



Project Title Data is used to convey user descriptions and specifications for the following major items:

• Project title and document data.• Country base location - establishes basis for design procedures, currency, and evaluation of costs and

man-hours.• Currency data - used to enter the display costs in all reports in a currency other than the system currency

base for the country base location of the estimate.• Units of Measure - used to select either of two system-defined base sets of units of measure: I-P

(Inch-Pound) or METRIC. See “Units of Measure” for a complete definition of these and otheruser-defined sets of units of measure.

• Rates to be applied for evaluating costs of freight, taxes, contingencies, fee, and special charges.

The specification of the Project Title Data should be prepared and reviewed carefully. Special considerationshould be given to this data since it controls the content and numeric values of the entire project.

Country Base

Table T-1 illustrates the differences in style upon selection of the “country base.” The differences aresummarized in this table according to the hierarchy of the system; the tabulation does not imply relativeimportance of each item.

Designation of the country base location is mandatory, as the country base defines the style of engineering,materials selection and costs, and construction manpower and costs. Specifically, the country base locationdefines:

• Base monetary unit (which may be redefined)• Base set of units of measure (which may be redefined)• Base indices for system costs of material, construction, design engineering, and construction management,

important for purposes of escalating an estimate• Base construction manpower pool: crafts, productivity, wage rates, crew mix, work week, and shift work

(which may be adjusted to suit the actual manpower pool)• Base of engineering: disciplines, wage rates, and expenses (which may be adjusted to reflect the rates,

productivities, etc. for the proposed scope of engineering)• Base of design codes and installation standards and practices, e.g., vessel design, electrical power

distribution (which may be selected or adjusted).

Currency Base

The user-designated country base location implies a base monetary unit, e.g., Dollars for US, Pounds Sterlingfor UK, Thousand Yen for JP. The user may define a currency unit for the estimate and provide a conversionfor the estimate currency relative to the base monetary unit. Once the currency base is defined by the user, alluser-entered costs, such as freight rates, ready-mix cost, wage rates, lump sum costs, and equipment or bulkcosts, are expected to be in the user-defined currency units. The system uses the user-defined currency andconversion value to convert system-developed costs from the system monetary base to the user-defined currency.

Project Definition

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Table T-1: System Default Values Affected by Selection of Country Base

Primary Effect of Selected Country Base

Item Description US Base UK Base JP Base

Base Monetary Unit U.S. Dollars Pounds Sterling Thousand Yen

Base Units of Measure I-P METRIC METRIC

Units of Measure revise I-P variable revise METRIC variable revise METRIC variable

System Base Indices US indices UK indices JP indices

Electrical Feeder Line Voltage 69 KV (60 HZ) 66 KV (50 HZ) 66 KV (50 HZ)(and entire mode of distribution)

Pressure Vessel Design Code ASME BS5500 JIS(materials and temperature (Section VIII,/stress relationships Division 1)

Depth of Concrete Footings 48 INCHES [1200 MM] 36 INCHES [1000 MM] 36 INCHES [1000 MM]

Manpower pool; base of crafts, • Houston/Gulf Coast • Northwest UK • Tokyo, Japancrew mix, productivity, • 1972-73 • 1979 • 1994wage rates • 100,000 MHR • 100,000 MHR • 100,000 MHR

• Union • Site or Nat’l Agreement • Union• 1 shift • 1 shift • 1 shift• 40 hr. week • 40 hr. week • 40 hr. week

• Bonus

Project Schedule: duration adjusted US MHRS adjusted UK MHRS adjusted JP MHRS

Equipment Rental/Plant: US rates and selection UK rates and selection JP rates and selectionrental rates

Engineering Department: US base UK base JP base base of disciplines, wage rates,productivity, expenses

Prime Contractors: from adjusted US MHRS from adjusted UK MHRS from adjusted JP MHRSconstruction overheads or user entry US indirect or user entry UK indirect or user entry UK indirect

rates rates rates

Contract fee Structure: costs reduced to $, costs reduced to £, costs reduced to Thou ¥,based on costs reduced to base time US indirect rates UK indirect rates JP indirect rates

Power Distribution 60 HZ 50 HZ 50 HZMAIN distribution voltage 13.8 KV 11 KV 11 KVUNIT voltage 4160 v 3300 v 3300 v Wire types wire (trayed, or in multi-core cable (trayed multi-core cable (trayed

conduit) or armored or in conduit) or or in conduit) orWire size US wire gauge armored gauge in MM2 armored gauge in MM2

Process Equipment US cost models, UK cost models, JP cost models,US base costs UK base costs JP base costs

Bulks: US cost models, US UK cost models, UK JP cost models, JPpiping, civil, steel, type descriptions, US type descriptions, UK type descriptions, JPinstrumentation, electrical, base costs base costs base costsinsulation, paint

User-specified supplemental cost none none none

Cross-Country Pipeline US cost models UK cost models JP cost modelsUS base costs UK base costs JP base costs



Cost Reporting: Currency and System Base Indices

Costs developed by the system without assistance of user-entered rates, costs, etc., are evaluated at the reportedvalues of the System Base Indices for the designated country base. See Indexing/Escalation Data.

Cost Reporting: Currency and Escalation

Costs provided by the user in the form of a cost, cost per unit, etc., are presumed to be in the user-definedcurrency and valued at a point in time reflected by the user-specified values for the User Base Indices.System-developed costs will be elevated from the system base to the user base condition by index ratio andfurther escalated by escalation indices.

Units of Measure

The country base location, once designated by the user, implies a base set of units of measure, e.g., I-P for US,METRIC for UK and JP. The user may reverse this choice or create a hybrid unit of measure, by defining thevariable to be revised, the label for the new unit of measure, and the conversion from old to new unit of measure.The user is cautioned that such redefinition could have unpredictable downstream effects; for example, inselection of plates, wire, tubing, pipe, etc.

Again, all user input is expected to be in the defined set of units of measure and all reporting by the systemconforms to the established set of units of measure.

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Workforce

Two of the most significant variables that account for construction cost differences from one location to anotherare the productivity of field manpower and the wage rates that prevail for each geographic area.

The system recognizes three country base locations — US, UK and JP. Upon selecting a country base location,the user obtains a base set of crafts, wage rates, crew mixes, production rates, etc., for field manpower consistentwith the selected country base location.

The Workforce Data may be used to change the system base wage rates, workweek, and productivities. Thisinput can, therefore, be an effective tool in helping the user examine the effects of local field manpower onprospective plant sites. In addition, modifications may be made to the system craft and crew mixes.

Multiple Workforces

In a prime contractor estimate, the system is limited to one set of wage rates, workweek and productivities (i.e.,one workforce) per estimate. In a contracts case, however, the user may define up to nine different constructionworkforces (CWF) in one project. This is accomplished by developing multiple sets of wage rates andproductivities with each set identified by a workforce reference number. This reference number is used in theContract Definition Data to indicate which workforce is assigned to each contractor.

Wage Rates/Productivity

There are two types of wage rate and productivity data:

• General data applicable to all crafts in the workforce• Specific data by craft.

The general data may be used to globally set the wage rates and productivities of all crafts, either as a percentageof some reference base or as a fixed rate. The reference base may be either the system base rates or the rates ofa previously defined workforce. These globally assigned rates may then be modified for individual crafts byentering specific rate data for those crafts.

Example 1: Suppose workforce “1” is to be assigned wage rates that are 110% of the system base rates and aproductivity of 80% of the system base (the symbol “B” signifies the system base). Then thegeneral data would be coded as follows:

CWF =1(ALL CRAFTS - % OF BASE)BASE = BWAGE RATE % = 110PROD. % = 80

Example 2: Suppose workforce “2” is to be assigned wage rates that are 105% of the rates of workforce “1”and a productivity equal to the system base (100%). Then a second set of general data would beadded as follows:

CWF = 2(ALL CRAFTS - % OF BASE)BASE = 1WAGE RATE % = 105PROD. % = 125



This would result in wage rates that are 110 x 105/100 = 115.5% of the system base and aproductivity that is 80 x 125/100 = 100% of the system base. Obviously, the same result couldhave been obtained for workforce “2” by using the system base “B” as the referenced base, a“WAGE RATE %” equal to 115.5 and a PROD. %” equal to 100.

Example 3: Suppose in workforce “2” Craft X (where X is the craft code) is to have a rate of $17.70 perhour and a productivity of 75%. Then specific craft data would be added for workforce “2” withthe follow data:

CWF = 2(CRAFT WAGE RATES/PRODUCTIVITIES)CRAFT CODE = XWAGE RATE COST/MH = 17.50PROD. % = 75

Example 4: Suppose workforce “3” is to be assigned a fixed wage rate and productivity for all crafts of$12.00 per hour and 90%, respectively. Then a third set of general data would be coded asfollows:

CWF = 3(ALL CRAFTS - FIXED RATES)WAGE RATE COST/MH = 12.00PROD. % = 90

Again, exceptions could be made to the fixed rates for workforce “3” by entering specific datafor individual crafts.

Unless the user had adjusted indirects, the wage rate used in the estimate should be the actual unloaded cost (inthe user-defined currency) per man-hour for the craft, and should not include any fringe or burdens. Fringebenefits, burdens, and other related construction overhead accounts are itemized and determined separately bythe system.

Data is available for deleting indirect costs from the estimate. This may be used if the wage rates are to beconsidered all-inclusive rates, and separate calculation of indirect costs is unnecessary.

The wage rates for two general crafts are itemized separately. These are craft code 98 (Helper) and craft code99 (Foreman). These two crafts are accorded special treatment because they appear in most crews, and theirwage rates and productivities are typically related to the crew in which they appear. Their wage rates may bespecified as either fixed rates or crew dependent rates. Their productivities, however, are determined by thesystem and are a function of the crew productivity.

The user may enter one or more craft wage rates. Omitted rates are calculated by the system based upon a set ofsystem default values as tabulated elsewhere in the ICARUS Reference. The ultimate value used by the system isdetermined by:

• The degree to which the user has provided craft rates• The user-specified value of the Escalation and User Base Indices for Construction in the

Indexing/Escalation Data.

For instance, if a user has not submitted any Workforce Data, then the values for wage rates for all crafts arebased upon the system Base Wage Rates, subject to:

• Elevation to the user base of construction (UBI/SBI)• Escalation (EI/UBI).

If, however, the user has specified one or more craft wage rates, those rates are taken by the system as valued atthe User Base Index and subject to escalation.

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Example 5: To illustrate escalation, suppose the user entered a craft rate of 12.00 per hour and constructionindices of 1248 for escalation and 1200 for the base (see Indexing/Escalation Data). The systemconsiders the user rate at the user’s base index for “ACCUM” reporting and for “SPREAD”reporting will figure an escalated rate of 12.00 x (1248/1200) = 12.48.

It should be noted that productivity is expressed as a percentage value; that is, 100 implies a base productivity.A value of 50 implies a less effective workforce, thereby doubling the system-calculated base man-hours. Avalue of 150 implies a more effective work force, thereby obtaining man-hours at two thirds (100/150) of thesystem-calculated base man-hours. For a more detailed description of the base or norm productivity for eachcraft, refer to the discussion of productivity provided later in this section.

Crew Mix Modifications

The system crew mixes may be modified using Crew Mix Data. This data enables the transfer of man-hoursfrom one craft to another. By manipulating crafts in this manner, a project may be modelled as an open or aclosed shop or some variation of the two. All or a portion of the man-hours in one craft may be transferred toone or more other crafts. Man-hours may be deleted from the estimate by transferring them out of a craft andby not indicating a second craft to which they are assigned. A useful example of this procedure is the removal ofcrane operators from the estimate if the rental rates for cranes include operators.

Man-hours are transferred between crafts by indicating “FROM” which craft the man-hours are removed and“TO” which craft they are added. The man-hours that will be transferred are only those initially assigned to thecraft by the system and not those previously assigned to the craft by the user through other Crew Mix Data.

Crafts 98 and 99 (Helper and Foreman) may be assigned man-hours from any other craft, but their man-hoursmay not be assigned to any other single craft. If their man-hours are reassigned, they will be allotted to theprincipal crafts in each crew. The principal crafts are indicated elsewhere in the ICARUS Reference. Thereason for this special condition is that these two crafts are composite crafts that appear in most crews, and toallow their assignment to any single other craft would distort the consistency of many crews. For example, ifman-hours were transferred from Foreman to Pipefitter, then Pipefitter would appear incorrectly in every crewwhich had contained a Foreman.

If multiple workforces are used, each workforce may be structured differently by providing the appropriateman-hour transfers. If a workforce is defined as having wage rates and productivities at some percentage of apreviously defined workforce, it will also use the same crew mix modifications as that workforce. This may bechanged, however, by coding new crew mix modifications for the second workforce.

Craft Names

The name of any system base craft may be replaced by entering the craft code and the desired name. The systembase craft codes and craft names are listed elsewhere in the ICARUS Reference. In addition, a new craft may becreated by specifying a name for one of the blank craft codes. If, however, a new craft is created, it must beassigned a wage rate and productivity and it must be assigned some man-hours from another craft. Only one setof craft names may be defined per estimate (i.e., craft names may not be changed from one workforce toanother). It is not, however, necessary for all crafts to be used by all workforces.

Reports

Wage rates and productivity values, as adjusted, develop man-hours and manpower costs, craft by craft. Craftman-hours and costs are reported against tasks performed in various system reports and summarized for theproject in the Field Manpower Summary.



Productivity Concepts

This section is devoted to a discussion of:

• How the system utilizes a user-specified productivity value• The variables affecting productivity and their numeric evaluation.

The user may enter an all-crafts productivity figure and specific craft productivity. The all-crafts productivityvalue, set at 100% by the system in the absence of a user entry, will be used to establish the productivity for anyand all user-omitted craft productivities. The all-crafts productivity will not be applied in any manner to user-specified craft productivity

User-entered craft productivities should be considered as efficiencies, and man-hours developed by the systemto perform a specific task by that craft will be adjusted accordingly.

Example 6: Suppose at the system’s base, six hours of Craft A are required to set a vessel. If theproductivity of Craft A were entered as 50%, then the adjusted system value would be(100/50) x 6 = 12 hours. Thus Craft A is 50% efficient compared to the system’s base.Similarly, a craft productivity of 200% relative to the system’s base will indicate doublyeffective craftsmen and thus half the base man-hours.

A time-proven and extremely useful method of quantifying a complex subject such as field productivity is asfollows

• Establish a standard set of key variables and base conditions for each variable• Evaluate, for each variable, the deviations expected for the actual conditions from the base conditions• Combine the identified individual deviations, thereby forming an overall productivity relative to the base

conditions.

The five key productivity variables (PV) and their associated system-base definitions are:

PV1: Source of Manpower Pool, sometimes identical to location of construction site.US Base - Houston/Gulf Coast, time period 1972-1973.UK Base - Northwest UK, 1979.JP Base - Japan.Evaluation of deviation for other sources - area data sources.

PV2: Size of Project, as measured by total direct and subcontract field man-hours.Base - Medium-size, 100,000 man-hours of field manpower.Evaluation of deviation for other project sizes - change in productivity vs man-hours shown inFigure W-1.

Figure W-1: Job Size Adjustment (PV2)

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PV3: Mode of Manpower; closed or open shop.US Base - Closed shop.UK Base - Site or national agreement.JP Base - Closed shop.Evaluation of deviation - determined by construction site location and local conditions, effect ofsite/national manpower agreements for the particular project.

PV4: Length of Work Week:Base - 40-hour work week.Evaluation of deviation - automatically evaluated by system based upon user work week input ongeneral Workforce Data, specifically through relationships shown in Figure W-2. The system valuemay be offset by creating a value of PV4 sufficient to adjust the system value to the user’s desiredvalue.

Figure W-2: Productivity Versus Work Week (PV4) - First Shift

PV5: All Other Effects, such as general economy, work to be performed, kind of manpower, quality ofsupervision, job conditions, weather, etc. Base - Reasonably average conditions, all other productivityvariables at their base value. Evaluations of deviations - Table W-1 and the following associateddiscussion for this productivity variable.



Table W-1: Productivity Element Table (PV5)

Productivity Element Productivity (%)Low Average High

50 85 100 115 140

1. General Economy Prosperous Normal Hard timesLocal business trend Stimulated Normal DepressedConstruction volume High Normal LowUnemployment Low Normal High

2. Amount of Work Extensive Average LimitedSite complexity Dense Average SparseManual operations Extensive Average LimitedMechanized operations Limited Average Extensive

3. Field Manpower Pool Poor Average GoodTraining Poor Average GoodWages Low Average HighSupply Scarce Normal Surplus

4. Field Manpower Supervision Poor Average GoodTraining Poor Average GoodWages Low Average HighSupply Scarce Normal Surplus

5. Job Conditions Poor Average GoodManagement Poor Average GoodMaterials and site Unfavorable Average FavorableRequired workmanship First rate Regular PassableLength of operation Short Average Long

6. Weather Bad Fair GoodPrecipitation Much Some OccasionalCold Bitter Moderate OccasionalHeat Oppressive Moderate Occasional

7. Construction Equipment Poor Normal GoodApplicability Poor Normal GoodCondition Poor Fair GoodMaintenance and repairs Slow Average Quick

8. Delays Numerous Some MinimumJob flexibility Poor Average GoodEquipment delivery Slow Normal PromptExpediting Poor Average Good

The overall productivity per craft or for all crafts is developed from the product of the individual deviations andfinal conversion to a percentage figure:

Overall Productivity = PV1 x PV2 x PV3 x PV4 x PV5

In the reference charts and tables mentioned, productivity variables are each identified as a percentage deviationfrom the system base of 100% for that variable.

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In developing the overall productivity, each deviation should be reduced to a fraction by divisionby 100, and the final resulting figure appropriately rounded to a significant value and thenconverted to a percentage for entry in the data.

Productivity Variable: Other Effects - PV3

The Productivity Element Table (Table W-1) enables you to determine productivity forproposed plant facilities over a wide range of working conditions and local restrictions.Productivity deviation is classified into three basic ranges: low, average and high. The “low”end of the range indicates an efficiency of 50% to 85%; “average” is indicated by an efficiencyof 85% to 115%; and the “high” end of the range is indicated by an efficiency of 115% to 140%.These percentages are based on the amount of work a typical construction worker can beexpected to perform under a given set of conditions. Given ideal circumstances, a field crewmay achieve an approximation of 140% efficiency. In actual estimating, you should not counton this high degree of productivity unless the operations in the project are highly mechanized. Inmanual-operations such as bricklaying, pipe fitting, and insulating, for example, the schedulingof high-range productivity may mean that the contractor will have to push field crews formaximum production during the entire course of the projects.

In general, the productivity represented by this class of variables is a function of two majorfactors: the present national economy and the specific local conditions under which the work isto be accomplished for the project. The first major factor (present economy) directly affects theproductivity of the individual construction worker. In good times, when construction jobs areplentiful and manpower is scarce, productivity usually decreases, resulting in increasing fieldcosts. In normal times, average productivity and costs are the rules. During depressions,recessions or slumps in the economy, manpower becomes plentiful and more productive;consequently, field costs decline. The Productivity Element Table (Table W-1) has beenassembled to reflect variables of major impact.

The second major factor (local conditions) affecting productivity relates more directly to theproject. It consists of the many variables that influence construction activity, such as thecharacter of the job site, volume of work to be performed, quantity of available manpower, andother such unusual conditions as dense or sparse plot plans, etc. Each of these variables is listedin the Productivity Element Table. You should review these variables, keeping in mind both theexisting and foreseeable conditions that will affect the proposed construction project. At thesame time, you must make an evaluation of the contractor as a productive unit to determinepotential performance under a given set of circumstances. A reasonable approach to obtain acomposite value of Productivity Variable 5 (PV5) is the averaging of the eight major categoriesof individual elements in Table W-1.



Example 7: After studying a proposed project, a user arrived at the following values for individual categoriesof productivity:

ProductivityItem Element Category Deviation, %

1 General economy 92 Amount of work 1003 Manpower 754 Manpower supervision 1005 Job conditions 1106 Weather 907 Construction equipment 1108 Delays 100

Total 765

The average value for productivity is the total divided by eight:

Productivity Variable (PV5) = 765/8 = 99.6%.

Example 8: Consider Example 7 to be extended to a revamp. Suppose the revamp requires twice theman-hours of a normal grassroots project. Then, a large revamp project (assume a 90% Job SizeProductivity, Figure W-1) would be figured at a compounded effect: Productivity perProductivity Element Table x Job Size Productivity x Revamp Productivity = .956 x .9 x .5 =0.43 (43% productivity).

Example 9: Should but a small portion of the project be subject to revamp, that portion may be described asone or more Areas or Sub-areas. In this example, the man-hours would be adjusted by 200%values for the appropriate accounts using code of account indexing within the area. Theworkforce productivities would, of course, be entered free of the revamp effect.

Work Item Concept

The work item concept, Figure W-3 relates manpower to materials installation requirements. The user mayrecall the role of the Volumetric Model to generate a bill of material types and quantities. The role of the WorkItem Model is to develop crew requirements to accomplish the task of installing each item in the bill ofmaterials. Thus the Work Item Model, when applied to a particular task such as placing rebar (Figure W-4),must develop a crew mix and man-hours for each craft.

Figure W-3: Typical Civil Tasks and Work Items

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Figure W-4: Civil Work Items - Placing Reinforcing Steel and Wire Mesh

Adjustment for Craft Productivity

The system contains several hundred Work Item Models with base manpower requirements established for theparticular country base location. A user-entered craft productivity would be used to adjust the base man-hoursdeveloped by the Work Item Models.

Adjustment for the Effective Hour

In the Work Item Models, when man-hours are assigned to crafts, consideration is made as to the reality of workspread over a day rather than over a short time-measured duration. Thus system-base man-hours are actualhours, based on a 42-minute hour, reflecting the time required to initiate the complete task. Should the projectbe managed under a different working time, the productivity should be adjusted as in Figure W-5.



Figure W-5: Productivity Versus Working Minutes Per Hour

Adjustments for Work Week

The duration of the actual work week and number of shifts to be employed during construction may be definedin the Workforce Data. Should the user’s schedule deviate from the 40-hour, 1-shift basis for Work ItemModels, the system makes an automatic adjustment to the Work Item-developed man-hours for each craft by therelationship illustrated in Figure W-6.

Figure W-6: Job Duration Versus Work Week

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Engineering

The project scope is analyzed by the system’s engineering model to determine man-hours and costs for designengineering, procurement and construction supervision. The system-calculated values for engineering may beadjusted by using the Engineering Data. This data allows input modifications/adjustments at two levels:

• An entire phase of engineering• A particular discipline within a phase.

The system’s engineering model may be modified by specifying total man-hours and cost or by specifying aproportional adjustment to system-calculated man-hours.

The Engineering Drawings Data may be used to modify the Basic and Detail Engineering phases by specifyingadjustments to the number and type of drawings produced. This data may also be used to add a lump sum ofengineering hours for special drawings or specific tasks, such as small scale models, which are not provided bythe system.

Definitions of the task and work products considered for each engineering phase are presented in Table EN-1.

Prime Contractor Engineering

The system’s Prime Contractors engineering account includes four major categories or phases:

• Basic engineering• Detail engineering• Procurement• Home office construction services.

Field supervision and project start-up are affiliated with engineering activities and are discussed later; these are,however, considered to be construction overhead items and are reported as contributions to the system’sconstruction overhead account.

Because of the turnkey nature of the Prime Contractor mode, the Engineering Management and ConstructionManagement phases are inappropriate, and these phases are excluded from Prime Contractor estimates.

Contracts - Assignment of Engineering

By use of the Contracts Description and Scope Data, each phase of engineering may be assigned to a differentcontract or to the owner. Moreover, each phase may be split between multiple engineering contracts accordingto unit area. In addition, the Contracts feature allows two optional phases of supervision to be assigned:

• Engineering Management• Construction Management.



Engineering Workforce (EWF)

When contracts have been specified, the user may create multiple engineering workforces (EWF). The systemuses the concept of an Engineering Work Force (EWF) in order to allow the user the flexibility of specifyingdifferent adjustments (e.g., hourly rates), for different engineering contractors. Each contract can becross-referenced to a particular EWF (see Contract Description). An EWF is, in effect, a description of a workforce resulting from a combination of user-specified and system default values for hourly rates, productivity, andindirect costs. Up to 9 EWF sets may be created. An EWF set will not be used by the system unless it isreferenced by a contract that has been assigned an engineering scope of work.

It is not necessary to define multiple engineering workforces for the contracts mode; however, if used, the EWFnumbers must be referenced by all engineering contracts.

The EWF serves no purpose for estimates in the Prime Contractor mode (since only one work force is possible).

Phase Adjustments

The user may specify both the total man-hours and cost for an entire phase, however, if one is specified, theother is also required. When these totals have been specified for a phase, any subsidiary data for that phase willnot be used by the system.

A percentage adjustment to an entire phase should be considered as an adjustment to the scope of the estimate,rather than a productivity adjustment. The change will be reflected in the quantity of work performed, e.g., thedrawing count and other tasks listed in Table EN-1, with a corresponding change in man-hours.

An adjustment by phase is convenient way to allow for project complexity, (see Table EN-2), but an adjustmentby discipline, which does not affect the drawing count, may be preferable.

The user may set the appropriate profile for payroll burdens, indirects, and expenses. If contracts are specified,this information could also be provided as part of the Contract Description.

Only one Engineering by Phase set of data is used per phase and EWF combination. If global (i.e., phase = *)Engineering by Phase Data are used, however, additional Engineering by Phase data may be subsequently addedto adjust individual phases separately.

Discipline Adjustments

Adjustments by discipline will not affect the number of drawings in the estimate and should appropriately beconsidered as productivity or complexity adjustments.

The user may combine phase and discipline percentage adjustments, thereby changing both the number ofdrawings and the man-hours. In this case, the overall effect is a compounding of the adjustments, since newproductivity is calculated based on the new scope of work.

Engineering Reports

If the Engineering report option is selected in the Project Title Data, detailed reports will be provided for eachphase calculated. If a total cost is specified for any phase, that total will appear on a summary report, and thedetailed report normally prepared for that phase will not be provided.

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Table EN-1: Engineering Accounts - Tasks and Work Products

BASIC ENGINEERING: Includes engineering and drafting for the following items:

• Project and Process Scope Definition • Electrical One-Line Diagram• Process Flow Diagram • Electrical System Distribution• Heat and Material Balances • Equipment Specifications• Equipment Process Data Sheets and Requisitions • Job Specifications• Long-Lead Equipment Purchase/Commitment • Overall Facilities Plot Plans

• Equipment Lists • Site Location Plot Plans• Piping and Instrumentation Diagrams • Area Equipment Arrangements• Control System Vendor Selection • Fire Protection and Safety Systems• Interconnecting Piping Diagrams • Environmental Data• Utility Process Flow Diagrams • Building and Enclosure Requirements

• Utility Balance • Comparative Economic Evaluations• Utility Piping and Instrumentation Diagrams • Documentation

• Early Scheduling

DETAIL ENGINEERING - Includes engineering and drafting for the following items

• Equipment • Civil

Review Vendor Design Equipment Foundation DrawingsSteelwork Foundation Drawings

• Piping Area Paving DrawingsMisc. Concrete, Supports, Etc.

Piping Arrangements Underground Piping DrawingsPiping Isometrics Structural Steel Plans and ElevationsPipe Support Ladder and Platform DetailsSteam Tracing Drawings Grating DrawingsPiping Text Schedules

• Buildings and Enclosures• Instrumentation

Building Arrangement Plans and ElevationsInstrument Location Drawings Architectural DetailsCable SchedulesInstrumentation Schematics & Connection Diagrams • General Facility RequirementsInstrument Loop DiagramsControl Room/Console Design Facility Plot Plans

Area Equipment Layouts• Electrical Site Preparation Plans, Details

One-Line Diagrams • Other Job RequirementsElectrical SchematicsSubstation Layout Drawings Cost EstimationPower Distribution Planning and SchedulingLighting Material TakeoffsTracing Equipment, Line Lists

Project Operations and Start-Up Manual

(continued)



Prime Contractor Engineering

If the Engineering report option is not selected, only an Engineering Summary report is provided, illustratingtotal hours and costs for Basic, Detail, Procurement, and Home Office Construction Services. Field OfficeSupervision and Start-up are summarized on the Construction Overhead Cost report.

Contracts Engineering

Detailed reports are included with the reports for each contract, where applicable, when the Engineering reportoption is selected.

The Engineering Summary for each contract is part of the Contract Data Sheet.

Construction Management will not be developed by the system unless assigned to a specific contractor (seeContract Scope - Engineering Data). The system-calculated man-hours would then be based on the scope ofwork for all construction contracts to be managed.

Table EN-1: Engineering Accounts - Tasks and Work Products (continued)

PROCUREMENT - Includes all in-country purchasing, inspection, and expediting. International purchasing andshipping administration costs are not included. Requisitioning and technical review are included in Basic or DetailEngineering.

ENGINEERING MANAGEMENT - Client liaison and design coordination for projects with multiple designcontractors.

HOME OFFICE CONSTRUCTION SERVICES - Includes costs for construction department, cost control,construction planning and scheduling, industrial relations and administration, subcontract administration,construction cost engineering, and drafting.

FIELD OFFICE CONSTRUCTION SUPERVISION - Includes costs for project superintendent, site engineers,subcontract coordination, planning and scheduling, safety and medical, field engineering, field drafting, andconstruction accounting.

CONSTRUCTION MANAGEMENT - An independent, client- appointed, organization responsible for overallconstruction budget and schedule monitoring, inspection for contract and specifications compliance, subcontractcoordination.

SUPPORT PERSONNEL - Includes costs for secretarial, clerical, administrative, and accounting support in eachengineering category.

INDIRECTS - Includes rent, heat, electricity, and other operating expenses not specifically covered in otheraccounts in each engineering category.

PAYROLL BURDENS - Includes the following:

For US country base - mandatory contributions to vacations, holidays, workmen’s compensation, social security,and unemployment insurance in each engineering category.

For UK country base - mandatory contributions for National Insurance, pensions in each engineering category.

ENGINEERING AND MISCELLANEOUS EXPENSES - Includes cost of reproduction, communication (telephone,telex, and postage), travel, and computer services in each engineering category.

PROJECT START-UP - Includes costs for instrument calibration, plant commissioning, start-up, as well asguarantees and performance tests.

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Table EN-2: Plant Complexity - Guidelines for Adjusting Basic and Detail Engineering Man-Hours

PLANT COMPLEXITY - Guidelines for Adjusting Basic and Detail Man-Hours

Suggested PercentAdjustment toEngineering Man-hours

Basic Detail Typical Facility Type

48 60 Storage FacilitiesGas/Oil Separation FacilitiesPipelines

60 70 Mining FacilitiesOre Processing Facilities

84 90 Basic Chemical ManufacturingAmbient Temperature and Pressure Processes

100 100 Typical Petrochemical/Refinery FacilitiesMunicipal Sewage Treatment FacilitiesIndustrial Wastewater Treatment Facilities

120 125 Organic Chemical ManufacturingVacuum ProcessesCryogenic ProcessesHigh Pressure/High Temperature Processes

140 150 Coal Gasification/Liquification FacilitiesSpecialized Polymer Production Facilities

160 175 Pharmaceutical FacilitiesSpecialty Food Processing Facilities

200 200 Coal Gasification/Liquification Pilot FacilitiesHigh Temperature/High Pressure Pilot Facilities

Engineering Management will not be developed by the system unless assigned to a specific contractor (seeContract Scope - Engineering Data) and all man-hours are specified in the Engineering Data. The system willnot develop man-hours for Engineering Management.

The Engineering Organization

Engineering costs may be affected not only by the scope of the project and its complexity, but also by the sizeand nature of the engineering organization assigned to execute the design and procurement phases of the project.

As engineering man-hours, costs, and calendar time comprise a large proportion of the total project effort, it isimportant that the user consider the nature of the organization(s) assigned to perform the various phases ofengineering. The system evaluates engineering man-hours and costs based upon the user’s project scopedefinitions, as if performed in-country by a large national or international engineering organization for a large-scale project. An expanded discussion of project types and guidelines for adjusting from a large-scale project/large contractor basis to the user’s project requirements is follows.



Adjustments to Engineering Costs

Engineering costs may be affected not only by project size and complexity (see Table EN-2), but also by the sizeof the engineering organization executing the design and procurement phases of the project. In order to illustratethe effect of organization size, three guideline categories are defined:

Small - 100 to 400 employees, performing smaller, local projects to less than US $50 [PS25] million totalinstalled cost (TIC).

Medium - 300 to 750 employees, performing fairly large national projects of $50-500 [PS25-250] millionTIC.

Large - over 600 employees, performing large and very large national or international projects of greaterthan $50 [PS 25] million TIC. (The system basis is in-country design and procurement by a largeengineering contractor.)

For the purpose of estimating, the three categories generally are defined with the following characteristics:

Small organizations, under normal marketing conditions, pay slightly less in salaries, offer slightly less in fringebenefits, and yet have higher productivity for a number of reasons. Work volume is typically steadier, staffturn-over lower, and time management more effective than in larger design groups because problems are lesslikely to be obscured by the volume of work and the number of people involved. Staff are productive since theirwork is highly visible, projects are rarely very complex and the effects of changes are minimized because of easeof communication within the group. However, working conditions and limited equipment/systems may be adrawback. Such organizations tend to use less specialists in scheduling and estimating; instead the projectmanager may develop his own barcharts, while project engineers may handle all estimating except for take-offs.Overhead costs are reduced by lower real estate and office equipment expenses. While ideally structured for acertain project size and complexity, small organizations will usually be unable to quickly staff larger, fast-tracked projects or meet the technical needs of complex projects. It should be noted, however, that many largerorganizations currently maintain a specialized small projects group, with the benefits of economy and flexibility.

Medium-sized, national engineering companies are generally very close to the large organizations in terms ofadjustments to engineering cost estimation, except in the areas of overhead costs for maintaining under-utilizedoffice space and key staff, and productivity advantages derived from low staff turn-over and centralizedengineering offices. Productivities may further improve if the company tends to specialize in certain kinds ofwork. Salaries will be the same or slightly less than paid by the largest companies.

Large organizations are accustomed to maintaining excess capacity in terms of offices and staff in order to beresponsive to the client’s needs on large projects, and this naturally carries a price reflected in overhead costs.Productivity will generally be dependent upon project size, time constraints and project definition. The largestprojects also often cause unusually high project management and procurement costs due to complex contractingprocedures and exacting approval cycles. Note that the system does not currently allow for worldwideprocurement of equipment or materials, nor for overseas expediting and ocean freight.

Evaluation of these effects for each project is a matter of estimating judgement. Different engineeringorganizations can be characterized, phase-by-phase, as illustrated in the following table. The use of engineeringadjustments is strongly recommended, since few other elements of a project comprise as large a proportion ofthe total project costs as does engineering.

The following table demonstrates how the appropriate adjustments for different sizes of engineeringorganizations may be represented to the system.

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Adjustment to:

Size of Organization Phase Discipline Adjustment Item Adjustment Range

** Operating Costs **

Small (on local projects) All na % rates 85-95na % indirects 55-65na % expenses 0 (incl.)

Medium (on national All na % rates 90-100 projects) na % indirects 65-75

Basic na % expenses 6-8Detail na % expenses 6-8

Large (for worldwide Procurement na % expenses 50-100 procurement)

** Man-Hours **

Small (on local projects) Basic All % man-hours 85-9001 % man-hours 95-10014 % man-hours 015 % man-hours 50

Detail All % man-hours 80-8501 % man-hours 95-10514 % man-hours 015 % man-hours 50

Procurement 01 % man-hours 90-95Home Office All % man-hours 50-70

03 % man-hours 004 % man-hours 007 % man-hours 0

Field Office All % man-hours 60-8013 % man-hours 015 % man-hours 016 % man-hours 0

Medium (on national Basic All % man-hours 90-100 projects) Detail All % man-hours 85-95

Procurement 01 % man-hours 95-100Home Office All % man-hours 85-95Field Office All % man-hours 85-100

Large (for worldwide Procurement All % man-hours 150-200 procurement)



General Instructions : SPAN* Users Only

Since only four activity groups have been reserved for each account in the SPAN* network, no more than fouruser-specified drawing types should be added to any one major account (piping, civil, etc.). User drawings inexcess of four per account will not be passed from the estimate into the network.

*SPAN is a Proprietary Mark of ICARUS Corporation.

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Construction Overhead - Prime Contractor Basis

The information in this section applies only to estimates prepared on a prime contractor reporting basis. If theproject estimate require contracts based on reporting, the procedures of this section are bypassed.

Construction overhead includes field manpower fringe benefits, associated burdens, small tools, temporaryfacilities, field services, construction equipment rental and miscellaneous overhead expenses. The constructionoverhead data can be used to adjust any of the values within the construction overhead accounts. The user mayadjust each account by specifying the cost in the user-defined currency units or as a percentage of the direct fieldmanpower cost. Note that the user-defined costs are presumed to be referenced to a time frame denoted by theUser Base Construction Index. Costs are subject to escalation.

The following table includes a description of the overhead accounts.



Description of Overhead Accounts

Project Costs:

Engineering General and Administrative overhead costs for engineering (basic, detail, procurement,engineering management, home office construction services and construction management)performed under this contract, as a percent or lump sum of engineering discipline costs, payrollburdens and other indirects and expenses. The fee for engineering performed under thiscontract, as a percentage of engineering and G&A costs.

Construction General and Administrative overhead costs for construction performed under this contact, as aOverhead & Fees percentage or lump sum of construction costs (direct field manpower, construction equipment

rental, field supervision and other indirects). The fee for construction performed under thiscontract, as a percentage or lump sum of construction and G&A costs.

Contingency The contingency for materials purchased under this contract, as a percentage of cost ofmaterials, G&A and fee.

Indirects:

Fringe Benefits Prime contractor’s contribution to vacations, holidays, sick leave, retirement, health insurance,etc.

BurdensUS Country Base Prime contractor’s mandatory contributions for Federal Social Security (FICA), Federal

Unemployment Insurance (FUI), Workmen’s Compensation and State UnemploymentInsurance (SUI).

UK Country Base Prime contractor’s mandatory contributions for National Insurance.

Consumables/Small Tools Includes small tools and consumable materials.

Miscellaneous(Insurance, Safety, etc.) Includes job cleanup costs, watchmen, construction equipment servicing and handling, public

liability, public damage, automobile and all-risk insurance, warehousing and nonproductive fieldmanpower.

Scaffolding Includes all scaffolding, except as required for assembly and/or field erection by vendor.

VendorRepresentatives Includes travel and subsistence as well as average rates for vendor field representatives.

Field Services Includes medical, first aid, transportation, weld tests and welding supplies.

Construction RentalEquipment Construction rental equipment costs.

Temporary Constructionand Utilities Cost of temporary sanitary and shelter facilities, roadways, rigging, utilities and fencing.

Mobilization/Demobilization Cost of construction equipment handling and transport to and from jobsite.

Catering/Accommodations Includes all catering and accommodations for all field personnel at site.

Travel Includes all travel and subsistence when required.

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Contracts: Description/Scope

The contracts feature provides the user with the means of:

• Describing the desired owner-contractor relationships and scopes of effort to prevail during the course ofthe proposed project.

• Obtaining detailed estimates of the cost-to-construct for the project, the owner and each contractor in turn,with each estimate reflecting the tiered nature of contracts, scope of effort, and individual contractors’ costsof “doing business”.

In this section, the term “owner” is used to identify the “one” or “Number 01” contract at the top of the tier ofcontracts. The “owner”, whether operating company or contractor, is the focal point for payment of all contractcosts relative to the project. An operating company preparing an estimate of the cost-to-construct mightdesignate itself as the owner for purposes of evaluating bid package proposals and the total cost of the project.Or, a contractor might designate itself the owner when preparing a client bid.

Organizations providing services directly to another organization are termed contractors, or, if indirectly throughanother contractor, are termed subcontractors.

Prime Contractor Basis: Default Condition (Contracts Not Defined)

In the absence of contract descriptions the system will revert to its standard reporting method. That is, all costsand cost structures will be on a Prime Contractor basis. Engineering, materials, and construction will be chargedto the Prime Contractor and reported in a single summary report.

Within the Prime Contractor basis of reporting, subcontracting is limited to individual bulk accounts fordesignated Unit Areas and site development, all under nonadjustable cost structures. The contracts feature ofthis section relieves these constraints.

Contract Definition - Description and Scope

Two sets of contract information must be assembled. The Contract Description Data and the Contract ScopeData provide the means of assembling this information.

Contract Description

The contract description must be provided for each contract and is assembled in the Contract Description Data.The contract description includes:

• Characteristic name or title, for reporting purposes

• Reference number of contract, to identify the contract and chain of responsibility

• To whom responsible, via contract reference number

• Contract overheads to be applied (G&A, fee, contingency) for -- engineering- materials- construction

• Charge for handling subcontracts



• Field indirects, in lieu of the Indirect Data, see Construction Overhead - Prime Contractor Basis Data

• Equipment rental

• Definition of the engineering workforce (EWF) to be used for each engineering contract. Adjustments towages, man-hours and overheads for the desired EWF are made using Engineering Data.

• Definition of the construction workforce (CWF) to be used for each contract. Adjustments to wages,productivity and crafts for the desired CWF are made in the Workforce Data.

The second set of contract information is entered in the Contract Scope Data. Contract Scope Data describes thescope of each contract for:

• Phase of engineering, which may be allocated to areas (Unit Areas):- basic engineering- detail engineering and procurement- engineering management (optional)- construction management (optional)- start up.

• Materials and/or construction (installation) within defined areas (Unit Areas) and covering or excludingitems or tasks in the following categories as defined by the code of accounts:

- equipment- piping- civil- steel- instrumentation- electrical- insulation- paint.

Contracts - Concepts

By the very nature of contracts and this contracts feature, costs of engineering, materials, and construction areassigned to that contact bearing the scope responsibility. Contract Scope Data forms a contract set (CONSET)and is used to assign scope responsibilities. The function of the CONSET is to define a framework of contractresponsibilities for engineering, materials, and construction. This framework may be detailed down to the phaselevel for engineering, and to the code of account (COA) level for materials and construction. The CONSETnumber which identifies this framework may then be indicated in the following project areas to designateresponsibility:

• Unit areas• Power Distribution items• Process Control Centers or Operator Centers• Site Development items (project-level only).

Multiple CONSETS would be required only where different frameworks of responsibility exist; for instance,varying by area or groups of areas.

The responsibilities of a contract for materials purchasing and construction are defined first for each majoraccount, i.e., equipment, piping, etc., then by COA exception. Materials contract responsibilities are forpayment for materials, but not procurement. The responsible purchasing contractor is defined for each majoraccount. Construction contract responsibilities include field manpower, equipment rental, field supervision, andhome office construction services. The responsible construction contractor is identified for each major account.

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Contract exceptions are defined for materials and construction by identifying the contract (contract number)responsibility by the code of account (COA).

Owner-contract-subcontract responsibilities are identified by the system based upon the user’s assignment ofcontract numbers. The owner is always assigned contract reference number “01”. Contractors directlyresponsible to the owner would be assigned contract numbers such as “02”, “03”, etc. To identify the chain ofresponsibility, a “contracted-by” reference number is required. Thus “02” is responsible to “01”. Should asubcontractor to “02” be desired and identified as contractor number “13”, the chain would be: “13” isresponsible to “02”. These reference numbers are assigned as part of the contract description.

Contracts - Cost Elements

Table CDS-1 illustrates the principal cost elements of a contract; each will be discussed in turn relative to themanner of evaluation and adjustment.

Table CDS-1: Cost Components of Contract Elements

Class of Expenditures

Construction

Design Eng’g AllData Type & Procurement Materials Manpower Indirects Subcontracts

Engineering Basic, Detail, Start-upProcurement Mgt.,ConstructionMgt. na na na

- - - - - - - - - - - - - - -

G&A, Fee, G&A, Fee,Contingency Contingency

Purchasing Equipment Freight,and Bulks Taxes

na - - - - - - na - - - - - - na

G&A, Fee, G&A, Fee, (1)Contingency Contingency

Installation Home Office Manpower Field Indirects,Construction na to Instal Field naServices Supervision- - - - - - - - - - - - - - - - - - - - - (1)

G&A, Fee, G&A, Fee, G&A, Fee,Contingency Contingency Contingency

na = not applicable (1) = Subcontract costs are allocated to each contractor based on the contract hierarchy established.



Overheads, fee, and contingency are added to the direct costs to develop the contract total for each category.

Contract costs are then charged to the responsible contract higher in the chain as a subcontract with attendanthandlingcharge.

Contract Engineering and Procurement

Each phase of contract engineering:

• Basic• Detail (with procurement)• Engineering management• Construction Management• Start-up

is considered assignable to an individual contract. Work efforts within a phase may be split among severalcontracts. A contract may cover one or more phases for the entire project. Contracts must be assigned for basic,detail, and start-up. If construction management is not assigned, construction management will not be includedin the estimate. If engineering management is not assigned and the required man-hours and cost have not beenspecified by the user, engineering management will not be included in the estimate.

Note that the procurement effort for materials and equipment is not assigned by the user, but follows the detailengineering assignment automatically. The procurement effort for subcontracts is automatically assigned to theresponsible contract.

Similarly, home office construction services and field office supervision are not assigned by the user, but followthe construction assignment. However, these costs are adjustable by the user via Engineering Data.

Discipline man-hours are evaluated by the system using engineering models for equipment, unit bulk items, areaand project bulks, and site development for the above categories in the same manner as for Prime Contractorreporting (construction management excluded). For contract engineering, the system uses the Engineering Datato define the engineering workforce (EWF). An engineering contract is cross-referenced to an EWF, anddiscipline and phase adjustments are made in the Engineering Data.

Engineering discipline costs (product of man-hours x wage rate for each discipline) are combined with user-specified or system default values for payroll burdens, office indirects, and miscellaneous expenses. Thecontract total is evaluated upon considering G&A, fee, and contingency as described later in this section asContract Overheads.

Materials

A materials contract consists of payment for materials, subcontracts, freight, and taxes. General andadministrative costs (G&A), fee and contingency specific to each contract are combined with these materialcosts to form the contract total.

The system generates material types, quantities, and costs based upon Equipment Models and VolumetricModels. Material costs are established by the system through the appropriate country base of costs, adjusted forescalation and indexing and any other material adjustments, and converted to the user’s country base.

Each contract assigned the responsibility for materials is charged with payment for those materials.

The total material cost is reported in the contract summary as the cost of materials, including freight and taxes,for construction. Detail reports identify the contract responsibility for materials.

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Construction Contracts

A construction contract consists of the following classes of expenditure:

• Construction:- direct field manpower- field supervision- G&A, fee, contingency.

• Construction Supervision:- home office construction services- field supervision- G&A, fee, contingency.

Each of these classes is described in detail below. G&A, fee and contingency are covered below under ContractOverheads.

Construction - Direct Field Manpower

The system develops crew mix, man-hours and construction equipment requirements from Work Item Modelsfor equipment, unit and area bulks, and site development. These values and user-entered man-hours arecombined with the appropriate craft wage rates to obtain manpower costs.

Construction - Field-erected Vessels

A special contracts feature may be used to change the way the system reports manpower for field-erected storagevessels.

The system will normally include the cost of field-erection (materials and manpower) as part of the purchasedequipment cost of a field-erected storage tank. The user may then only adjust the overall equipment cost, butwill not have the opportunity to adjust manpower (such as wages, productivity, burdens). In fact, the manpowerwould be considered to be the equipment vendor’s manpower and not subject to adjustments pertinent to thematerials contractor.

However, if the user includes an installation assignment to designate a specific contract for code of account 121(or the equivalent new COA, the system will then consider all field-erected storage vessels (within the areaspecified), as being installed by direct manpower and consequently the particular designated contractadjustments for manpower will be observed. Note that this must be done specifically for the indicated COAonly, not as part of a range.

In the absence of an installation assignment designating a contract for this specific code of account, the costs forfield-erection vessels would be charged as a material cost to the contract responsible for equipment purchase.

Construction - Field Indirects

An equipment rental estimate is developed for each construction contract based upon rental items developedfrom Work Item Models. In determining equipment rental rates and rental durations, the system uses a contractduration based upon the user’s defined schedule or a system-developed schedule. The value for contractequipment rental is adjustable in terms of rental rates. Should the user wish to enter a lump sum cost or takeequipment rental as a fraction of manpower costs, the user-specified value will prevail over the system-calculated figures.



Other field indirect costs such as fringe benefits, burdens, travel, consumables, scaffolding, field services,temporary construction and utilities, and miscellaneous items may be specified relative to direct field manpower.

Costs of vendor representatives, mobilization/demobilization, catering and accommodation, and any specialitems may be specified as lump sum costs. Should a single value for field indirect costs be entered, this valuewill prevail for field indirects over any other user-specified or system-developed field indirect category value.

Construction - Field Supervision

Field supervision is estimated for each construction contract based upon the direct field manpower requirementsand contract duration in the same manner as for Prime Contractor reporting. Payroll burdens, indirects, andmiscellaneous expenses are evaluated and added to the supervision cost, thus arriving at the total cost for fieldsupervision - classed as a construction field indirect cost.

Construction - Home Office Construction Services

Home office construction services cost is estimated in the same manner as field supervision. Man-hourrequirements (tied to contract duration and field requirements) are combined with appropriate discipline rates todevelop direct discipline costs. The payroll burdens, indirects, and miscellaneous expenses are added todevelop the total cost. Associated costs for G&A, fee, and contingency are applied as described below.

Contract Overheads

The overheads:

• General and administrative costs (G&A)• Fee• Contingency

are part of the user’s contract description or are evaluated through system default procedures. These overheadsare applied and reported against costs in the following categories:

• Design (engineering and procurement, including home office construction services)• Materials• Construction.

General and administrative costs are evaluated as a percentage of direct and indirect costs.

Contract fee percentages are calculated by the system as a function of the total cost of the scope of effort:directs, indirects, and G&A. Figure CDS-1 and the example below illustrate the method used by the system todevelop a fee. The fee is determined by the phase (engineering, materials, construction) and extent (total cost)of each phase. The total cost of directs, indirects, and G&A is reduced by the Escalation Index to a graph base.The fee percentage obtained from Figure CDS-1 using this reduced cost is applied to the phase total cost.

For example, suppose (1) a US country base is chosen and all costs are in US Dollars, (2) the System Base Indexfor all costs is set and tabulated (see Indexing/Escalation Data) at “1200,” (3) the user has indicated arequirement for 21% escalation from the base by entering 1.21 x 1200 = 1452, and (4) the system has arrived atan escalated total cost for construction directs, indirects, and G&A of $290,400. The system would develop areduced total cost of $290,400/(1452)=200. Applying this value to Figure CDS-1, the curve for constructionwould be used to obtain the fee percentage (11.1% for construction) applied to the $290,400 figure. The user ofanother country base location and currency would use the appropriate country base scale and currencyconversion to use Figure CDS-1; the system would perform these conversions automatically.

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Contingency may be adjusted by the user on a contract basis or on a project basis.

A fee for handling other contracts is determined by the percentage of the value of contracts handled.

The above individual fee categories are disregarded should the user enter a single lump sum fee for the contract.

Contracts - Impact Upon Other User Input

The use of the contracts feature has a significant impact on other user input. The interrelationships betweencontract definitions and other system data are described in each section of this document so affected.

Figure CDS-1: System Calculated Fee Percentage to be Applied to Total Cost of Directs, Indirects, andOverheads for Engineering (Curve E), Materials (Curve M), and Construction (Curve C).

Note: The user should use the appropriate country base location scale and Escalation Index and should applythe appropriate currency conversion to enter this chart. The system will perform this calculation innormal fashion.

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