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Example of the cost breakdown for an EPC project with potential savings
Cost Element | Cost Breakdown before savings | Team integration | Productivity | Transaction costs | Schedule accel. | Total Savings | Cost Breakdown after savings |
---|---|---|---|---|---|---|---|
Owner | 13 | 50% | 30% | 20% | 72% | 4 | |
Project Management | 6 | 50% | 30% | 20% | 72% | 2 | |
Construction & Start-Up Management | 8 | 50% | 30% | 10% | 20% | 73% | 2 |
Engineering | 14 | 30% | 10% | 20% | 44% | 8 | |
Equipment | 21 | 30% | 37% | 13 | |||
Bulk Materials | 11 | 10% | 10% | 10 | |||
Construction Labor | 12 | 30% | 10% | 20% | 50% | 6 | |
Other Construction Costs (e.g. site logist.) | 2 | 10% | 20% | 28% | 1 | ||
Contingency | 6 | 50% | 50% | 3 | |||
Special Costs (Legal, Travel etc) | 7 | 80% | 80% | 1 | |||
100 | 50 |