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FEL-3: FEED (Front-End Engineering Design) or Basic Engineering. The engineering team will now fully design the plant, including the exact specifications for how it will be constructed, commissioned, started up, and operated. The proposed plant will now have a detailed cost estimate and construction schedule. Gate 3: Approval for Construction.
According to the PMBOK (7th edition) by the Project Management Institute (PMI), Fixed Price Economic Price Adjustment Contract (FPEPA) is a "fixed-price contract, but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decrease) for special commodities".
A cost-plus contract, also termed a cost plus contract, is a contract such that a contractor is paid for all of its allowed expenses, plus additional payment to allow for risk and incentive sharing. [1] Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred ...
For 2019 you take the estimated gross profit form the table of $(356,000) subtract the 2018 gross profit total of $609,000 and you get $(956,000) for 2019. 2020 gross profit you take the estimated gross profit from the table of $(211,000) subtract the previous years of $(956,000) and $609,000 and you get $145,000 of gross profit.
A Allocation of costs is the transfer of costs from one cost item to one or more other cost items. Allowance - a value in an estimate to cover the cost of known but not yet fully defined work. As-sold estimate - the estimate which matches the agreed items and price for the project scope. B Basis of estimate (BOE) - a document which describes the scope basis, pricing basis, methods ...
Capital costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. In other words, it is the total cost needed to bring a project to a commercially operable status.
The FEP method was introduced by Robert W. Zwanzig in 1954. [1] According to the free-energy perturbation method, the free-energy difference for going from state A to state B is obtained from the following equation, known as the Zwanzig equation :
The selection of the proper index to use depends on the industry in which it is applied. For example, while CE, M&S or IC Index are typically employed for chemical process industries, the ENR (Engineering News-Record) construction index is used for general industrial construction and takes in account the prices for fixed amounts of structural steel, cement, lumber and labor.