Construction Project Cost Overruns (Part One)

Why do so many construction projects overrun their budgets by as much as 10% to more than 100% and how can this be rectified? This continuing situation costs the industry millions of dollars each year and wastes valuable engineering / construction labor resources. This article is focused on Industrial – Process CAPEX / EPC related  … Read more

Global Construction Newsletter: January to March 2019

Click on a country / region to view the local construction news   Encouraging, daunting, buoyant, depressed, upbeat and challenging are some of the words tossed around to describe the construction outlook in many countries around the world as we move into 2019; the positive words for the most part, apply to India, Vietnam, China  … Read more

Global Construction Newsletter: October to December 2018

Click on a country / region to view the local construction news   The escalation of trade clashes between China and the US doesn’t benefit either country’s’ interests, according to Government spokesmen from both countries. However, the world’s #1 and #2 economies have both been in a war of words over trade in the last  … Read more

“Project Risk Quantification” – A book by John K. Hollmann

It has come to my attention that John K. Hollmann has received the Lifetime Achievement Award from AACE International and I want to offer him my congratulations. This news prompted me to take another look at his recent book “Project Risk Quantification” from What I did not appreciate in my first review is that  … Read more

Saudi Arabia – Industrial & Commercial Current Construction Costs

The following square foot (SF) & square meter (M2) value costs include all construction materials, labor, plant hire / construction equipment, general conditions / preliminaries, overhead & profit. Excluded from the costs are Owners’ costs such as front end studies, Owners’ internal engineering / CM / inspection services, material handling equipment, fixtures & furniture, manufacturing  … Read more

Order of Magnitude Road / Highway Costs

Costs include Clearing, Excavation, Stone, Tarmacadam / Paving, Concrete, PC Concrete, Reinforcement, Form work, Structural Steel, Safety Barriers, Labor, Construction Equipment, Detailed Design & Construction Management / Inspection. (Accuracy +/-20%). Major road, 2 lanes, 12’ wide each lane & 2 # 3’ wide shoulder, no bridges, N.E. USA $5.34 million per mile. $3.34 million per  … Read more

Oil & Gas Industry Benchmark # 1

Petro-Chemical & Gas Facilities – Engineering, Procurement and Construction (EPC) Benchmarking Data: (Data collected from 12 completed EPC projects in USA & Canada) Typical Benchmark Percentages & Cost Ranges related to North American Petro-Chemical, Industrial & Gas Facilities. Applicable to New & Revamp CAPEX / Facility Projects with a Total Installed Cost (TIC) value between  … Read more