CETech -- It strikes me as strange that an engineering firm designing
equipment as important as water treatment or sewage treatment systems would not
be ready to do a professional level cost estimate on the project it
designs. Is this actually your situation or is your situation that of a
student or apprentice working on a theoretical project. Assuming the
former.....
Cost estimating of any engineering project is essentially a matter of
breaking the project down into as many pieces as time allows and finding the
most accurate cost of each piece. You start with the pieces and try to
quickly put them into logical categories and sub categories. One natural
set of categories commonly used within manufacturing companies is labor,
material and one or more overhead categories for a given product. (that's where
my experience lays)
In the construction industry cost estimating is a much bigger piece of the
enterprise and the result is a good amount has been written on the
subject. The first thing I would recommend is that you find a book on the
subject and send a couple of evenings reading it. It will give you some
necessary understanding of the estimating process. Only then go buy the
software if your project has any construction component, even concrete
foundations or electrical systems. If the software is any good it will
have labor hour figures for basic construction elements like building a
reinforced concrete foundation or common electrical equipment installation.
The mechanical stuff like pumps, motors, piping, electrical controls,
fabricated tanks, water treatment equipment, comminuters, sludge handling
equipment etc. are all bought from manufacturers or their dealers for a price
that they will be glad to quote you prices if they can meet your specs.
You will need these quotes to give any credibility to your estimates.
This is a good starting point.
Next, for single pieces of large equipment the manufacturers can often give
you a good idea of the amount of labor an auxiliary hardware needed to make the
installation, especially if they have already you an equipment quote.
Many have their own installation technicians and will quote that as a separate
item. these quotes are usually good enough for an estimate because they
tend to be on the "safe" high side. A general contractor or
even principal mechanical subcontractor will often have a crew who can do those
installations themselves at a lower cost and add the savings to their margins.
For the rest of the mechanical installation you are going to have to work up
the labor elements (assembly times) yourself, a big project for one at your
level of understanding. You could fall back on a common method of rough
estimating construction costs where generic construction materials are
involved. Just total up all the prices of these common materials and
figure the same cost to build the system. If that isn't good enough then
you'll have to develop the costs in the same manner that mechanical assembly
costs are developed in the manufacturing industries. Some research will
eventually turn up labor times such as how long it takes to install and tighten
a nut and bolt or to lift and install a 75 pound pipe fitting. Then you
will have to determine the prevailing labor rate for the skill level involved
in dollars per hour (plus fringe benefits). This is the kind of stuff a
good estimating consultancy brings to the party when you pay them the big bucks
to do that job. The software and the actual arithmetic is the easy
part.
In my experience with cost estimating for machined components and assemblies
for a manufacturing company it was possible to find software companies that
would sell you a site license for 10-20 seats of their estimating software for
somewhere in the low 5 figures a year but if you wanted access to their
database of regional labor and material costs it was quite a few thousand more
per year. Reason is that this information is real a job to collect if you
want it to have any accuracy.
Ed Weldon
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Captain Eddie's Day Old Fish market - Home of the Bonneville Salt Fish. Featuring the miracle of modern mechanical refrigeration.