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proper methodology for implementing weight of the items in EPC projects

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Eslam El-Khoriby
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Joined: 30 Aug 2017
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Hi, hope everything is going well. i am working as a planning engineer in electrical substation in Egypt. For a while, I have been searching for a proper methodology in order to sustain a real weight of the items comparing to all of the project.

Most of the companies use cost basis methodology which shows no impact of the critical path and some use time basis methodology which shows no impact of the cost of the items.

The construction works is estimated by 60% of the project duration and has a cost near by 10% of the project total cost, but on the other hand, the electrical times such as the power transformer is estimated by 30% of the total cost of the project and takes only 10% of the total time.

If we went by the cost methodology, it would be unfair for the construction phase and if we went by the time methodology, it would not be fair for the electrical items.

a way to implement the cost and the time factors for the same item in the percentage of the weight regarding the total project shall be more than needed taking into consideration the critical path activities.

An expert judgment to find a proper, real, fair methodology will be more than welcomed.

Thanks in advance for your time.

Replies

Zoltan Palffy
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Joined: 13 Jul 2009
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how about using manhours per activity (direct labor) as your measuring stick ? you can use a blended rate for cost per manhour and it will multiply the manhours times the rate to give your your direct labor costs.