Section 18

RATIO ESTIMATING FACTORS

Ratio estimating factors are simply the relationship, in percentage

ranges, between two or more things and are the transformation of statistical data into combinations of variables that are usually not correlated.
The minimum basic information required to assemble an estimate of
this type is:
1. Information regarding plant capacity, product form, basic process
and raw material.
2. A complete process equipment list with individual shipping dates
and total material dollar cost.
3. The general plant location.
The accuracy of this type estimate should fall in the range of + 30% to
- 30%.

Accuracy Definition
+ % = Add to total cost excluding contingency for highest cost.
- % = Deduct from total cost excluding contingency for lowest cost.
The direct cost percent ranges in the following tables are to be applied
against the total material dollar value of the process equipment. The construction equipment and overhead and indirects percent ranges are a percent of the direct field labor dollar value. The home office percent range is
applied against the total direct and indirect cost of the project.
The percentages for the various disciplines of work are averages of
many projects located in the Gulf Coast Area. When determining a percentage to be applied for a specific project from the percentage range tables consideration should be given to this fact.
The percentages for labor are for open or merit shop type operations. If
closed shop methods are to be employed additional consideration should
be given and applied against the labor dollar value.

Manhours for the various disciplines of work can be obtained by dividing the labor percentage dollars by the established hourly activity rate.
A construction schedule can be executed utilizing the discipline manhours coupled with equipment shipping dates.
For a description of items included under the various disciplines of work
see Section 1, "Disciplines of Work."

Ratio Estimating Factors

The Refinery Process Systems table is based on any one or all of the
following process systems and includes all discipline requirements.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Atmosphere and vacuum crude distillation

Saturates gas plant
Naphtha hydrodesulphurization
Distillate hydrotreater
Flexicoker
Heavy oil hydrodesulphurization
Fluid catalytic cracker
Unsaturates gas plant
Cycle oils hydrodesulphurization
C5, C6 isomerization
Catalytic reformer
Aromatics extractions
Steam reforming hydrogen plant
Butane alkylation
Olifin poly plant
H2S recovery and sulphur manufacturing

Tables on Chemical Plants are self-explanatory.

I caution the engineer/estimator to be thoroughly familiar with the introduction to this manual before applying this information.

REFINERY PROCESS SYSTEMS

Ratio Percentages
Direct Cost

Discipline
1. Process Equipment
2. Site Preparation
3. Site Improvements
4. Concrete
5. Structural Steel
6. Buildings
7. Underground Piping
8. Above-ground Piping
9. Underground Electric
10. Above-ground Electric
11. Instrumentation
12. Insulation
13. Painting
14. Paving
15. Proratables
** lbtal Direct Cost

Percentage Ratio Ranges

I
II
HI
IV
100.00
44.30-44.60 7.70-7.80
55.83
0.02-0.05
0.25-0.30
2.75-2.85
0.01
0.95-1.10
*
1.10-1.12
0.55
4.25-4.75
0.10-0.12
12.70-12.90
2.41
8.00-8.30
*
3.70-3.75
4.53
1.10-1.25
2.20-2.40
1.70-1.75
0.66
1.10-1.20
*
1.40-1.48
0.62
32.00-35.00
0.75-0.80 21.30-22.40 18.59
0.30-0.50
*
0.65-0.70
0.16
11.50-12.00
*
6.10-6.25
6.47
10.30-10.70
*
3.20-3.50
5.82
4.50-5.00
*
7.40-7.50
2.55
1.50-1.70
*
3.90-4.00
0.93
0.40-0.60
*
0.60-0.70
0.27
1.00-1.10
*
2.80-2.95
0.60
176.9-183.3
47.6-48.2
77.0-79.7 100.0

* Not applicable or no significant trend data available.

Roman Numeral Codes:
I.

Discipline, Other Materials as a percent of Process Equipment costs. (1,1)

II. Discipline, Subcontracts as a percent of Process Equipment costs. (1,1)

III. Discipline, Direct Labor as a percent of Process Equipment costs. (1,1)
IV. Discipline, Material cost as a percent of Total Material costs. (IV**)
V. Discipline, Subcontract cost as a percent of Total Subcontract costs. (V**)
VI. Discipline, Labor cost as a percent of Total Labor cost. (VI**)
VII. Discipline, Total cost as a percent of Total Direct cost. (VII**)

Average
Percent
of Totals
V
VI
92.82 10.03
0.55 3.59
*
1.43
0.22 16.42
*
4.82
4.81 2.21
*
1.84
1.60 27.51
*
0.87
*
7.90
*
4.16
*
9.57
*
5.06
*
0.81
*
3.79
100.0 100.0

VII
49.97
1.01
0.69
5.63
3.90
1.71
0.83
18.19
0.32
5.81
4.48
3.94
1.84
0.36
1.32
100.0

LIQUID TYPE CHEMICAL PLANT

Ratio Percentages
Direct Cost

Discipline
1. Process Equipment
2. Site Preparation
3. Site Improvements
4. Concrete
5. Structural Steel
6. Buildings
7. Underground Piping
8. Above-ground Piping
9. Underground Electric
10. Above-ground Electric
11. Instrumentation
12. Insulation
13. Painting
14. Paving
15. Proratables
** Total Direct Cost

Percentage Ratio Ranges

I
II
HI
IV
100.00
24.00-25.50 3.75-5.50
43.50
1.75-2.50
0.01-0.01
0.50-1.00
1.00
2.75-3.50
0.60-0.75
1.50-2.25
1.30
7.50-8.75
2.00-3.00
9.00-12.00
3.58
11.50-12.50
*
4.00-6.00
5.20
4.00-5.00
3.00-3.50
3.50-4.50
1.90
4.00-5.00
0.01-0.02
2.75-3.25
2.00
37.00-43.00
2.75-3.25 24.00-27.00 18.30
0.40-0.60
*
0.20-0.40
0.20
15.00-17.00
*
6.50-7.75
7.20
22.00-25.00
*
3.25-4.50
10.90
7.50-8.50
*
4.50-5.25
3.60
2.50-3.25
*
2.75-2.90
6.30
1.00-1.50
0.30-0.40
0.50-1.00
0.50
1.00-1.50
*
2.00-2.40
0.60
217.9-237.5 32.57-36.43 68.7-85.7 100.0

* Not applicable or no significant trend data available.

Roman Numeral Codes:
I.

Discipline, Other Materials as a percent of Process Equipment costs. (1,1)

II. Discipline, Subcontracts as a percent of Process Equipment costs. (1,1)

III. Discipline, Direct Labor as a percent of Process Equipment costs. (1,1)
IV. Discipline, Material cost as a percent of Total Material costs. (IV**)
V. Discipline, Subcontract cost as a percent of Total Subcontract costs. (V**)
VI. Discipline, Labor cost as a percent of Total Labor cost. (VI**)
VII. Discipline, Total cost as a percent of Total Direct cost. (VII**)

Average
Percent
of Totals
V
VI
VII
61.30 5.44 37.60
0.01 0.72 0.82
1.74 2.95 1.70
6.30 15.04 6.39
*
6.51 4.89
8.23 6.08 3.55
0.02 4.04 2.17
7.35 34.54 20.40
*
0.39 0.25
*
9.50 6.85
*
4.59 8.24
*
6.44 3.74
*
3.93 1.70
0.85 1.05 0.66
*
3.09 1.04
100.0 100.0 100.0

SOLID TYPE CHEMICAL PLANTS

Ratio Percentages
Direct Cost

Discipline
1. Process Equipment
2. Site Preparation
3. Site Improvements
4. Concrete
5. Structural Steel
6. Buildings
7. Underground Piping
8. Above-ground Piping
9. Underground Electric
10. Above-ground Electric
11. Instrumentation
12. Insulation
13. Painting
14. Paving
15. Proratables
** Tbtal Direct Cost

Percentage Ratio Ranges

I
II
IH
IV
100.00
25.00-26.00 3.75-4.75
44.16
2.50-3.00
0.01-0.01
0.50-1.00
1.19
3.50-3.75
0.80-0.90
2.25-3.00
1.57
8.75-10.25
2.50-3.00
12.00-13.75
4.33
12.50-14.30
*
5.50-6.25
6.30
5.00-5.50
3.75-4.25
4.00-5.25
2.34
4.75-5.50
0.01-0.01
3.00-3.25
2.18
45.50-46.00
3.25-3.50 27.00-28.25 20.27
0.50-0.70
*
0.30-0.50
0.25
15.50-17.00
*
6.75-7.25
7.35
12.25-14.00
*
1.50-2.50
5.51
5.50-6.50
*
3.00-4.00
2.47
2.00-2.75
*
1.75-2.25
0.91
1.10-1.80
0.30-0.40
0.75-1.00
0.52
1.40-1.75
*
2.25-2.50
0.65
220.8-232.8 36.12-38.07 74.30-85.50 100.0

* Not applicable or no significant trend data available.

Roman Numeral Codes:
I. Discipline, Other Materials as a percent of Process Equipment costs. (1,1)
II. Discipline, Subcontracts as a percent of Process Equipment costs. (1,1)
III. Discipline, Direct Labor as a percent of Process Equipment costs. (1,1)
IV. Discipline, Material cost as a percent of Total Material costs. (IV**)
V. Discipline, Subcontract cost as a percent of Total Subcontract costs. (V**)
VI. Discipline, Labor cost as a percent of Total Labor cost. (VI**)
VII. Discipline, Total cost as a percent of Total Direct cost. (VII**)

Average
Percent
of Totals
V
VI
VlT
69.24 4.99 37.80
0.02 0.78 0.97
2.32 3.20 2.02
7.37 17.08 7.59
*
7.06 5.81
10.99 6.51 4.22
0.02 4.05 2.38
9.06 34.59 22.37
*
0.35 0.25
*
8.72 6.89
*
2.11 4.14
*
4.03 2.56
*
2.46 1.17
0.98 0.98 0.68
*
3.09 1.15
100.0 100.0 100.0

LIQUID/SOLID TYPE CHEMICAL PLANTS

Ratio Percentages
Direct Cost

Discipline
1. Process Equipment
2. Site Preparation
3. Site Improvements
4. Concrete
5. Structural Steel
6. Buildings
7. Underground Piping
8. Above-ground Piping
9. Underground Electric
10. Above-ground Electric
11. Instrumentation
12. Insulation
13. Painting
14. Paving
15. Proratables
** Total Direct Cost

Percentage Ratio Ranges

I
II
HI
IV
100.00
25.00-26.50 4.00-6.00
42.00
2.25-3.00
0.01-0.01
0.60-1.25
1.08
3.30-3.80
0.75-0.85
2.25-3.00
1.43
9.25-10.50
2.75-3.50
12.50-14.00
3.94
13.50-14.50
*
5.50-6.50
5.73
5.00-5.50
3.75-4.25
4.75-5.25
2.13
4.50-5.25
0.01-0.01
3.00-3.50
1.94
43.00-45.00
3.00-3.50 25.50-28.00 18.06
0.60-0.90
*
0.30-0.50
0.25
17.00-18.00
*
7.15-8.00
7.30
24.00-27.00
*
3.30-4.60
10.48
8.00-9.00
*
4.50-5.50
3.37
3.00-3.50
*
2.80-3.10
2.14
1.25-1.75
0.30-0.50
0.75-1.25
0.47
1.50-2.00
*
2.25-2.50
0.58
237.2-249.7 35.57-39.12 79.15-92.95 100.0

* Not applicable or no significant trend data available.

Roman Numeral Codes:
I. Discipline, Other Materials as a percent of Process Equipment costs. (1,1)
II. Discipline, Subcontracts as a percent of Process Equipment costs. (1,1)
III. Discipline, Direct Labor as a percent of Process Equipment costs. (1,1)
IV. Discipline, Material cost as a percent of Total Material costs. (IV**)
V. Discipline, Subcontract cost as a percent of Total Subcontract costs. (V**)
VI. Discipline, Labor cost as a percent of Total Labor cost. (VI**)
VII. Discipline, Total cost as a percent of Total Direct cost. (VII**)

Average
Percent
of Totals
V
VI
70.31 4.93
0.02 0.74
2.25 3.02
7.16 16.15
*
6.68
10.67 6.16
0.01 3.75
8.62 32.03
*
0.36
*
9.00
*
4.17
*
5.72
*
3.49
0.96 0.94
*
2.86
100.0 100.0

VII
36.52
0.90
1.87
7.01
5.37
3.90
2.15
20.25
0.25
6.94
8.00
3.55
1.62
0.63
1.04
100.0

CHEMICAL PLANTLIQUID HIGH PRESSURE TYPE

4000 TO 5000 PSI
Ratio Percentages
Direct Cost

Discipline
1. Process Equipment
2. Site Preparation
3. Site Improvements
4. Concrete
5. Structural Steel
6. Buildings
7. Underground Piping
8. Above-ground Piping
9. Underground Electric
10. Above-ground Electric
11. Instrumentation
12. Insulation
13. Painting
14. Paving
15. Proratables
** Total Direct Cost

Average
Percent
Percentage Ratio Ranges
of Totals
I
II
III
IV
V
VI VII
100.00
25.00-26.00 3.75-5.00
43.16 74.86 5.34 38.10
1.70-2.25
0.01-0.01
0.25-0.50
0.75 0.01 0.54 0.63
2.30-3.00
0.50-0.75
1.50-1.75
0.99 1.62 2.21 1.31
6.50-7.25
1.75-2.00
9.25-10.00
2.92 5.30 12.62 5.26
9.00-10.00
*
3.50-4.00
3.98 *
4.88 3.78
3.25-4.00
2.50-3.00
3.25-3.75
1.48 7.67 4.50 2.75
4.75-5.25
0.01-0.01
3.00-3.25
2.12 0.02 4.30 2.38
45.25-47.00
3.25-3.50 27.00-28.00 19.66 9.72 36.75 22.38
0.50-1.00
*
0.25-0.40
0.25 *
0.38 0.25
16.50-17.25
*
6.75-7.25
7.19 *
9.34 6.94
26.50-27.50
*
3.50-4.00
11.66 *
4.88 9.04
8.00-8.50
*
4.50-5.00
3.54 *
6.33 3.79
2.75-3.25
*
2.75-3.00
1.30 *
3.86 1.73
0.75-1.25
0.02-0.04
0.50-0.70
0.37 0.80 0.79 0.51
1.25-1.50
*
2.00-2.50
0.63 *
3.28 1.15
229.0-239.0 33.04-35.31 71.75-79.10 100.0 100.0 100.0 100.0

* Not applicable or no significant trend data available.

Roman Numeral Codes:
I.
II.
III.
IV.
V.
VI.
VII.

Discipline, Other Materials as a percent of Process Equipment costs. (1,1)

Discipline, Subcontracts as a percent of Process Equipment costs. (1,1)
Discipline, Direct Labor as a percent of Process Equipment costs. (1,1)
Discipline, Material cost as a percent of Total Material costs. (IV**)
Discipline, Subcontract cost as a percent of Total Subcontract costs. (V**)
Discipline, Labor cost as a percent of Total Labor cost. (VI**)
Discipline, Total cost as a percent of Total Direct cost. (VII**)

CHEMICAL PLANTLIQUID HIGH ALLOY TYPE

Ratio Percentages
Direct Cost

Discipline
1. Process Equipment
2. Site Preparation
3. Site Improvements
4. Concrete
5. Structural Steel
6. Buildings
7. Underground Piping
8. Above-ground Piping
9. Underground Electric
10. Above-ground Electric
11. Instrumentation
12. Insulation
13. Painting
14. Paving
15. Proratables
** Total Direct Cost

Percentage Ratio Ranges

I
II
HI
IV
100.00
25.00-25.50 3.75-4.25
45.58
1.50-2.00
0.01-0.01
0.25-0.50
0.81
2.25-3.00
0.50-0.75
1.50-1.75
1.07
6.25-7.00
1.50-2.00
8.75-10.00
2.95
9.25-9.75
*
3.50-3.75
4.28
3.25-4.00
2.50-3.00
3.25-3.50
1.59
4.50-5.00
0.01-0.01
3.00-3.50
2.18
44.25-45.00
3.00-3.25 26.00-27.50 20.24
0.25-0.50
*
0.01-0.02
0.17
11.00-12.00
*
4.50-5.25
5.06
23.50-25.00
*
3.00-4.00
10.75
6.75-7.25
*
3.50-4.00
3.11
2.50-3.00
*
2.25-2.50
1.14
0.75-1.00
0.25-0.50
0.50-0.70
0.42
1.25-1.50
*
2.00-2.50
0.65
217.3-226.0 32.77-35.02 65.76-73.72 100.0

Average
Percent
of Totals
V
VI
VlT
75.07 5.74 40.18
0.01 0.59 0.68
1.65 2.42 1.42
5.09 12.97 5.31
*
5.35 4.06
7.84 4.93 2.95
0.02 4.51 2.45
9.51 38.51 23.01
*
0.27 0.18
*
6.69 4.88
*
4.58 8.31
*
5.67 3.33
*
3.46 1.52
0.81 0.87 0.54
*
3.44
1.18
100.0 100.0 100.0

* Not applicable or no significant trend data available.

Roman Numeral Codes:
I. Discipline, Other Materials as a percent of Process Equipment costs. (1,1)
II. Discipline, Subcontracts as a percent of Process Equipment costs. (1,1)
III. Discipline, Direct Labor as a percent of Process Equipment costs. (1,1)
IV. Discipline, Material cost as a percent of Total Material costs. (IV**)
V. Discipline, Subcontract cost as a percent of Total Subcontract costs. (V**)
VI. Discipline, Labor cost as a percent of Total Labor cost. (VI**)
VII. Discipline, Total cost as a percent of Total Direct cost. (VII**)

CONSTRUCTION EQUIPMENT
Ratio Percentages
As A Percent Of Direct Field Labor

Description
16. Rental or Purchase
17. Service Labor
18. Fuel, Oil, Grease, Supplies
Tbtal

Percent of
Direct Field Labor
Range
Average
12.0-18.0
15.0
2.0-6.0
4.0
7.0-15.0
1^0
21.0-39.0
31.0

Note: Fuel percentage based on diesel cost of $1.25 per gallon.

OVERHEAD AND INDIRECTS

Ratio Percentages
As A Percent Of Direct Field Labor

Description
19. Salaried Indirect
Office Hourly Indirects
Field Hourly Indirects
20. Temporary Construction
Facilities*
21. Burdens and Benefits
22. Small Tools and Consumables
23. Other Indirects
Tbtal

Percent of
Direct Field Labor
Range
Average
8.0-12.0
10.0
4.0-8.0
16.0
3.0-7.0
5.0
10.0-20.0
15.0
25.0-28.0
5.0-10.0
10.0-20.0
65.0-105.0

27.0
7.0
1^0
85.0

* Includes Labor for Constructing.

HOME OFFICE SERVICES

Ratio Percentages
As A Percent Of Tbtal Direct And Indirect Cost

Description
24. Engineering/Design Services
25. Construction Services
26. Project General Management
Tbtal

Percent of Total
Direct and Indirect
Range
Average
8.0-16.0
12.0
0.1-0.4
0.2
1.0-1.5
U
9.1-17.9
13.3