Optimizing Total Installed Cost (TIC) Factors in Estimating

When it comes to cost estimating, understanding Total Installed Cost (TIC) factors is essential. A TIC factor is a multiplier used in cost estimating to calculate the total installed cost of a project based on limited initial data. It helps estimate costs during the early stages of a project, such as design and procurement, by incorporating various project-specific elements like materials, labor, and equipment.

Hand and Lang provide foundational examples that showcase the significance of TIC factors in achieving cost estimations in the early stages of a project. These factors allow you to create cost estimates, which are based on limited project (engineering) information and will support you in for example a go/no go decision.

Applying Total Installed Cost (TIC) Factors

Lang method

A method that is slightly more detailed and therefore needs some more project information, is the so-called Lang method. Its basis is the equipment prices free at site, of which it’s best to have quotations. The method differentiates for solids, liquids and mixed solids/liquids.

Hand method

The Hand method is an extension of the Lang method and proposes to use different factors for each type of equipment (columns, vessels, heat exchangers, and other units) rather than per process type.

With modern advancements, solutions like Cleopatra Enterprise make it incredibly easy to incorporate TIC factors into cost estimates. Cleopatra Enterprise offers a user-friendly platform that seamlessly integrates these factors, streamlining the cost estimating process and enhancing accuracy.

Tailoring Total Installed Cost Factors for different domains

While the TIC factor approach is highly effective for a wide range of projects, it can be further optimized by creating TIC factors tailored to specific domains such as chemical, oil and gas, power and energy conventional, and renewables. Customizing TIC factors for these domains allows for more precise estimations that account for the unique characteristics and requirements of each sector. By adopting this approach, project managers and cost estimators can achieve a deeper level of accuracy, leading to better-informed decision-making and more reliable cost estimates.

Leveraging Cleopatra Enterprise for domain-specific TIC Factors

Cleopatra Enterprise, including the Cost Engineering Standard Knowledgebase for industry specific TIC Factors, offers the capability to develop and implement TIC factors specific to various project domains. Imagine having TIC factors that are fine-tuned for chemical plants, oil and gas facilities, power generation stations, and renewable energy projects. Wouldn’t that be a game-changer?

By leveraging Cleopatra Enterprise, cost estimators can dive into the intricacies of creating domain-specific TIC factors, enhancing the accuracy of estimates during the conceptual phase. This collaborative effort empowers us to aim for more precise and reliable cost estimations, ultimately leading to more successful project outcomes. Together, we stand strong and can push the boundaries of cost estimating to new heights. Are you interested in exploring this approach further?