provisions for the required accuracy of a cost estimate according to DIN . die DIN , Forum der Forschung: Kerzner, H. () Project Management: A Systems Jena, Dresden und Chemnitz an der TU Bergakademie Freiberg, Dezember /2 Journal of Business Economics and Management 9(1): 47 Kosten im Bauwesen DIN _pdf. Lectures. Uploaded by Anonymous User at RWTH Aachen · Vorbereitung und Durchführung -; -. 0. Dec 16, GMT din 1 pdf – D â€“. 2 MaÃŸe / Dimensions in . Neuausgabe der DIN vom Dezember wurden die Ã„nderung A1.
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Michael Nippa All rights reserved. Due to 2276-1 from Asian entrants, main contractors in the plant engineering industry are starting to face a similar situation. HOAI for comparable phases of performance. Dezembee is shown that MIPP industry cost estimation guidelines are much more tolerant in terms of accuracy than for Building Construction in Germany, especially in the early phases.
With the help of examples Hot-Briquetted-Iron plant projects versus residential housing projectsa set of possible reasons is identified and categorized by 1 competition intensity incl. Finally, the study marks starting points for further research: First, comparing MIPP cost estimation guidelines to non-german Building Construction standards, and second empirically validating and possibly extending the set of explanations.
Price volatility comparison for Nickel versus Rebar. The study is motivated by two reasons.
First, continuing pressure on prices for construction projects leads to an increasing importance of cost estimation accuracy in building construction. Main contractors in the plant engineering industry have recently found themselves in a similar situation, facing increasing competition from 20088 and South Korean entrants c.
Second, cost deviations, and in particular cost overruns, happen for MIPP, i. However, due to the inherent risks in the realization of process facilities, including completion and performance of process design risks, the probability for the occurrence of cost overruns of MIPP is considerably higher than for building construction c.
It is coherent to assume that these inherent risks and the comparably high probability of cost deviations for MIPP are reflected in the respective cost estimation standards, which are investigated as compared to BC standards.
Therefore, the research method used includes a literature and standards review, comparing MIPP cost estimation guidelines 1 In this respect, the author noted that opinions of MIPP vs BC industry experts vary as of which budget deviation a project might be considered a success or failure. It involves planning and realizing 2 but not operating an industrial process plant.
Typically, a minimum of suppliers are involved in a MIPP, and the phase of Project Execution lasts for at least 12 months years on average. The duration of Project Development amounts to a minimum of 6 months months on average.
Budgeting is a subprocess within estimating used for allocating the estimated cost of resources into cost accounts the budget against which cost performance will be measured and assessed Hollmann With the complexities involved, it is not surprising that many business practitioners consider pricing an art c. Because of the considerable risks involved, this is particularly true for cost estimation for MIPP, which, apart from costing various engineering trades process, mechanical, electrical engineering, etc.
According to AACE International, the term process industries is assumed to include firms involved with the manufacturing and production of chemicals, petrochemicals, and hydrocarbon processing.
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Peurifoy and Oberlender, These documents are key deliverables in determining the level of project definition, and thus the extent and maturity of estimate input information AACE Estimates for process facilities center on mechanical and chemical process equipment, and they have significant amounts of piping, instrumentation, and process controls involved.
They do not cover estimates for the products manufactured by the process facilities, or for research and development work in support of the process industries.
The guideline also does not cover the significant building construction that may be a part of process plants ibid: The five AACE estimate classes are presented in the table below: The level of project definition determines the estimate class. The other four characteristics are secondary characteristics that are generally correlated with the level of project definition. The characteristics are typical for the process industries but may vary from application to application.
This matrix and guideline provide an estimate classification system that is specific to the process industries. Unlike MIPPs, which typically represent multi-national. Competition in building construction is comparably intense 6 versus process plant EPC construction: While GCs for MIPP usually act in an oligopolistic market, GCs in building construction, at least for standard building projects, such as residential housing, may find themselves confronted with hundreds of competitors 7.
Actually, inthe total number of building construction firms in Germany amounted to 73, with an average number of ten employees per firm BWI-Bau et al. The eminent atomic market structure ibid: Jacob, Stuhr et al. There are no clear legal or normative provisions for the required accuracy of a cost estimate according to DIN From case law and literature, common practice values for permissible cost deviations can be derived c.
din 276-1 dezember 2008 pdf
Kalusche and Dusatko These are presented by performance phase in the figure below, which is also known as the Cone of Cost German: 726-1 of building construction cost estimate accuracy. As noted by the ACCE The same is true for the End Usage: BC Germany Accuracy Range max. Due to the above mentioned limitations concerning the variance of LPHs from project to project, the present comparison may serve as an indication only.
The author takes on, but does not empirically validate the following, mutually interdependent, possible reasons: In frequency of occurrence: In Germany, the average number of employees in building construction Bauhauptgewerbe is ten c. Barriers of entry are rather low in standard residential housing construction c. A customary residential house ddin its extreme form: Therefore, a BC contractor will have to use target costing to be able to compete in the market.
Demands on the cost estimation professional: In contrast, cost estimators for chemical and other process. Becoming a MIPP cost estimation professional requires a process engineering degree plus long-term MIPP commercial experience, especially concerning contingency and risk planning, to be able to estimate the cost of a MIPP which includes various types of engineering mechanical, electrical, process and others plus Civil building construction c.
In BC, standard materials and supplies e. In contrast, piping and instruments, made of specialty steels and alloys like nickel-based alloys are a major part of MIPP process plants. Dezembeg prices for standard materials e. Nickel as presented in Figure Local vs. A standard residential building can be erected within a short term some months ; a MIPP is built in several years, typically two to five c. Un certainty of projected Cash Flows CF.
Mietspiegel with often only minor deviations. Thus, the projected CFs from a BC residential housing project are relatively certain.
This is resulting in a comparably high uncertainty of projected CFs. Price volatility comparison for Nickel vs Rebar It should be re-emphasized that the above list of possible reasons for differences dezemebr cost estimation accuracy of building construction versus MIPP is not exhaustive and just partly validated in its intend to serve as a starting point for further research in the area.
For example, rather than using the extreme examples of standard residential housing vs. The results of the study, however, are to be seen as indicative and are intended to serve as a starting point for further research.
Potential topics yet to be explored include but are not limited to: Second, an empirical investigation using examples other than HBI plants and residential housing resulting in a possible extension, restriction, confinement of or deviance from the above-mentioned set of explanations for the higher accuracy tolerance dezekber MIPP versus BC standards would be useful. Third, it could be further investigated whether or not, facing the situation of increasing cost competition, cost estimation guidelines for the MIPP industry may become subject to adaptation in terms of accuracy.
Projektmanagement und Fachplanungsfunktionen; mit 87 Tabellen. Economics for the modern built environment, pp London; New York: Zwischen Leistungsversprecher und Produktanbieter. Major Industrial Plant Projects. Winter Kalkulieren im Ingenieurbau: Strategie – Kalkulation – Controlling; mit Tabellen. Grundlagen der wirtschaftlichen Bauplanung.
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