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Kellogg Brown & Root

Solids Processing
Work Hour Estimating Guidelines

Administrative Manual
Section Number: 610
Approved By: Robert McCharen, CTE
Effective Date: 24 September, 2002

Work Hour Estimating

Guidelines
A. PURPOSE, B. WHEN USED, C. REVISION SUMMARY, D. PROCEDURE, E.
REFERENCES

A. PURPOSE
To provide a consistent format and procedure to be followed in preparing and
issuing of workhour estimates for Solids Processing activities.
B. WHEN USED
All projects and estimates that require a workhour estimate.
C. REVISION SUMMARY
None.
D. PROCEDURE
1. Scope
1. Solids Processing work included in this section includes all
engineering work required to requisition, evaluate, and review
Supplier drawings for Solids Processing Equipment and to prepare,
check and issue Solids Processing drawings. Specific activities
may include:
Conduct studies, as required, to define the Solids
Processing work on a Project.
Prepare or participate in the preparation of Process Flow
Diagrams (PFD's) for the Solids Processing portion of the
project, where required.
Prepare/revise index of purchasing specifications.
Provide preliminary design data to other work groups.

Produce estimating data during the course of the project

Prepare data sheets.
Prepare project specifications.
Specify Supplier Data Requirements (SDR).
Prepare inquiry Equipment Requisition Worksheet (ERW).
Prepare technical evaluations and bid tabulations.
Chair Supplier precommitment meetings.
Prepare ERW's for purchase.
Chair Supplier coordination meetings.
Review Supplier data and drawings.
Coordinate Supplier data review by other groups.
Prepare and issue document index, final job data sheets and
"as-built" data sheets when specifically required.
Prepare Engineering Progress Measurement (EPM) and
Project Change Requests (PCR's).
Participate in the preparation and/or review of flowsheets
(P&ID's).
Prepare and issue layout drawings for Solids Processing
equipment.
Prepare general arrangement and detail drawings for Solids
Processing Equipment.
Review model.
Witness Supplier shop tests for critical equipment.
2. All hours are charged using organization code 01AE5800. GAT
Codes are used to divide the work into meaningful groups. The
main GAT codes are designed to follow the format of the Material
SCAN Codes. For example work is charged to GAT code MV20
for activities involving conveyors whose SCAN codes are the
MV200 series. Some GAT codes (MVG01 & MVG91) are not
associated with specific SCAN codes. Sub-GATS (code beyond the
first three digits) are used for identifying milestone activities that
correspond to the deliverables for each specific equipment type
defined by a GAT code (see paragraph 3.5).
2. Basis of Estimate
1. The equipment list is one of the key documents for estimating
Solids Processing hours. SCAN codes should be on the equipment
list. Driver types need to be identified. For other than simple
routine items, the operating conditions and metallurgy may be
needed to assess the degree to which the item differs from a
"routine" item having a similar service description. Service
conditions may also be required when the process design or plant
capacity differ substantially from past KBR experience.
2. For packaged equipment, clarification is needed about the extent to
which we accept the Supplier's standard selections and design
practices. KBR standard practices will be used unless special client

requirements are specifically stated in the Project Plan or

Engineering Plan.
3. The procurement cycle needs to be specified as to the number of
quotes required, whether we will be working with our usual project
approved Suppliers, whether we are working with World Bank or
Ex/Im bank or other special financing which may have special
requirements. Are Suppliers mostly U.S. or foreign?
4. If Solids Processing is to be involved in process definition
activities such as process studies and PFD preparation, the scope
needs to be defined and included in the Work Hour Estimate.
5. If Solids Processing is to be involved in preparation of the P &
ID's, the scope needs to be defined and included in the Work Hour
Estimate.
6. If Solids Processing is to be involved in preparation of plot plans
and equipment layouts, the scope needs to be defined and included
in the Work Hour Estimate. Preliminary plot plans and flow
diagrams are usually required to define layout requirements for the
Work Hour Estimate.
7. The requirement for Sollids Processing equipment general
arrangement and detail drawings must be determined and included
in the Work Hour Estimate.
3. Basic Functions
1. GAT code MVG01 is General and Administrative tasks. These
include all supervision and administrative support by persons not
assigned to the project. Charges are limited to legitimate project
work. Ten percent of the total estimate is allocated to this GAT
code, of which, one-half is allocated to the Solids Processing CTE
and secretary and the other one-half allocated to the Lead and
Principal Engineers for ATS reporting, routine status meetings and
other project administration. If there are project requirements for
additional administrative activities, such as weekly Client status
meetings in addition to the normal project status meetings,
additional administrative hours may be required.
2. GAT codes MVA, MVB and MVC are for Solids Processing
activities involving the preparation and issue of drawings. The
hours required are directly related to two factors, the number of
drawings required and the Solids Processing scope on each
drawing. The preparer of the estimate must make a preliminary
estimate fo the number of drawings required using the Equipment
List, preliminary Plot Plan and preliminary flow sheets. The Solids
Processing scope on each type of drawing should be discussed with
Project Engineering and the decisions documented in the Work
Hour Estimate and in the Solids Processing Work Plan.
3. GAT codes MV20, MV30, MV40, MV50, MV60, MV70 and
MV80 are directly related to the work associated with the
equipment having the corresponding SCAN codes. For example,

GAT code MV20 is used for SCAN code MV200 conveyors.

Entries using these codes should be supplemented with a SUBGAT code to define the applicable milestone activity as defined
below. Hours are based on the number of services. No hours are
estimated for duplicate items. The workhour estimation program
lists the standard workhours assigned to each type of equipment.
Separate entries are provided to differentiate routine from special
items based on type of service, complexity, size, etc.
4. GAT codes MVG91 is for the close out phase. Solids Processing
normally enters the close-out phase when project tasks are 95%
complete (not necessarily 95% of workhour budget used)or when
requested by the project team. Close-out activities typically include
drawing review, witnessing shop tests, a Construction issue of a
document index and final job data sheets (including "as-built" data
sheets when required in Project or Engineering Plan) and
responding to correspondence from the job site or client. Ten
percent of the hours tabulated in workhour estimation program are
allocated to close-out.
5. Sub-GAT codes will be used to further identify the work into one
of five milestones as identified below. Sub-GAT codes will not be
used on common charges for GAT codes MVG01 and MVG91.
6. The workhours estimated in the workhour estimation program
include all work associated with the equipment. For budgeting
purposes these hours are subdivided as follows:
10% MVG01 General supervision and administration plus
project specifications.
80% For Equipment GAT's (MV20, MV30...MV80), from
Data sheets to beginning of close out and for Drawing
GAT's, (MVA, MVB & MVC) from start of preliminary
drawing to beginning of closeout.
10% MVG91 Close out phase (usually during
construction).
Of the above, the portion for the Equipment GAT's is divided into
five project milestones which are identified as sub-GAT's as
follows:

DS 20% Data Sheets and specifications (for inquiry)

IR 10% Inquiry Requisition
TE 20% Technical Evaluation
PR 10% Purchase Order Requisition
VD 40% Supplier Data Coordination and Review

As an example, the GAT code for completing an inquiry

requisition for a dust collector would be "MV50IR".

Of the above, the portion for the Drawing GAT's is divided into
two project milestones which are identified as sub-GAT's as
follows:

PD 65% Preliminary Drawing

CD 35% Checked Drawing

As an example, the GAT code for completing a preliminary plot

plan would be "MVBPD".
4. Extra Functions
1. Extra Functions are work items outside the scope of the preceding
Basic Functions. Hours for extra function are added only to the
extent that the work is defined in the project documents. Many of
the functions are routinely expressed as a percentage added to the
Basic Functions, but this percentage method should be applied
only as an approximation of the work required for the function.
The final estimate should be based on an assessment of the
required work and the necessary workhours to accomplish the
work.
2. Client Requirements include the use of client data sheets and
specifications, client procedures, client Supplier lists, special
approvals for documents, etc. Hours are added for these
requirements to the extent that they affect our normal work
activities. For example use of client specifications for all MV
equipment may add five to fifteen percent to the overall project
depending on the volume of the documents and the extent to which
they change our standard practices. However, the application of a
client's straightforward NEMA frame motor specification may
have negligible impact.
3. Foreign Codes which impact Solids Processing typically involve
pressure equipment, specifically pressure vessels. Hours added will
depend on the specific codes involved, our familiarity with those
codes, the familiarity of the Suppliers that may be affected, and the
extent to which Supplier data is affected. For example, a project in
the U.K. which requires pressure vessels to meet British Standards
may require ten percent more hours for all pressure equipment if
vessels must be sourced in the U.S.A.. However, five percent
additional hours may be sufficient if U.K. sourcing is required.
4. Local Authority Requirements may cover a broad range, but most
commonly involve environmental restrictions, special pressure
vessel documentation (dossiers), or U.L. labels for all electrical
devices (as in several areas near Los Angeles). If local authority
requirements are not included in the Project Plan or Project Design
Data, check with the assigned Environmental Engineer or the
Regulatory Specialist in the Chief Engineer's Office. Hours are

5.

6.

7.

8.

9.

added only to the the extent that normal work procedures are
affected. Typically, this will not exceed five percent of the basic
workhours.
Metric/ISO units of measure were once reason to add five to ten
percent to the overall workhours, but as our computer programs,
data sheets and specifications, and general documentation have
become more metric based, the need for additional hours has
declined. When metric units are required, add up to five percent of
the total basic workhours. If metric forms and specifications are
already available, add only two percent. The Solids Processing
stabdard specifications are written to be usde with either English or
Metric units, so they should be considered to be metric forms for
estimation purposes.
Worldwide purchasing is fraught with delays and difficult
communication, depending on the countries involved. No
additional hours are required for Suppliers located in North
America. For those commodities which may be sourced in Europe
and Japan, add up to twenty-five percent additional hours to the
basic work hours. For sourcing in third world countries, a larger
percentage may be necessary, as much as thirty-five percent. If the
foreign Supplier is set up for online electronic communication,
these percentages may be reduced accordingly.
Packaged Equipment Instrumentation requires extra hours when
instruments for MV equipment must fully meet the requirements of
all other components in the plant. This effort far exceeds the
routine application of the standard specification for packaged
equipment provided by Control Systems Engineering (for which
we add no extra workhours). Hours added for this extra function
depend on the number of equipment items affected, the volume and
complexity of the instrument requirements, and the clarity and
completeness of the documents. For projects requiring full
integration of plant instrumentation requirements into the
specifications for packaged equipment, add ten percent of the basic
workhours.
Client review of Supplier drawings usually increases Solids
Processing work because more time must be spent handling
drawings, incorporating client comments along with our reviewed
drawings, and increased communications with Suppliers to clarify
questions and comments. Depending on the extent of the client's
involvement, five to ten percent additional hours may be required.
Noise abatement requirements result in extra workhours only when
special client or site requirements require Solids Processing to
mandate stringent noise abatement requirements. As standard
practice, we will obtain Supplier expected noise data for evaluation
with the proposal. Additional hours up to fifteen percent of basic
hours may be required when extensive application of acoustic

enclosures and low noise equipment are mandatory. Clients will

frequently provide stringent noise restrictions for equipment,
however, extra hours are required only when these requirements
are rigorously enforced.
10. Travel time for meetings and equipment acceptance tests can have
significant impact on Solids Processing workhours. When travel
will be required for coordination meetings at Supplier shops,
witnessing of acceptance tests, meetings with clients or joint
venture partners, etc., hours for these extra functions must be
included in the estimate.
5. Adjustment Factor
1. The adjustment factor is a final multiplier to correct for changes in
work methods and efficiencies which have not been incorporated
in the preceding Basic Functions and Extra Functions. This factor
will consider items such as our experience with the process design
or equipment, the experience level of the assigned staff, and the
application of work process improvements (ie. use of sole-source
Strategic Supplier Process Suppliers).
2. The factor is controlled by the CTE who will provide the current
value. Unless otherwise advised, an adjustment factor of 1.00 will
be used. Any change of the standard workhour rating must be
approved by the CTE. The factor used may be greater than or less
than 1.00.
6. Limited Scope of Work Services
1. Very often the scope of KBR services does not cover a full
engineering effort; this is the case of studies, K packages, and basic
engineering packages. The workhour estimate shall be based on the
amount of work required to produce the deliverables.
2. K-packages are normally estimated as requiring 25% of the hours
to execute a full EPC project. This assumes that Kellogg Brown &
Root specifications and data sheet forms will be used and that
client participation will be nominal. Note that K-packages can vary
significantly in the scope of work and required deliverables, and
standard estimating methods may require significant adjustment to
reflect the actual scope.
3. Revamps are difficult to estimate using standard workhour
estimating techniques. Workhours for adding new equipment to an
existing facility can usually be estimated using standard methods.
Workhours for existing equipment can be high because frequently
more work is needed to determine if an existing piece of
equipment is adequate for a new service than would be required
simply to prepare a data sheet for the new service. For existing
equipment that must be studied or modified, consult with the
assigned Principal Engineer or CTE.
4. There are projects where KBR receives a front end package
developed by others (ie. licensed process) as a starting point.

Suitable credits may be taken where the package contains data

sheets for Solids Processing equipment. Determine whether KBR
will use the third party data sheets or will have to transfer the
information to Kellogg Brown & Root data sheets. Also find out
whether Kellogg is responsible for the content and accuracy of the
data sheets. If we are responsible, the work needed to check the
licensor's data sheets may be enough to offset the workhour credit.
7. Other Items
1. A validation check of the workhour estimate based on average
workhour per equipment service will be calculated, with the
intention of comparing the particular workhour estimate being
developed with historical data from similar past projects. The CTE
can provide such comparisons based on past proposals and project
estimates. Actual workhour performance for completed projects is
usually available from Estimating Services.
2. Quality assurance checks are required for all workhour estimates
prepared by Solids Processing Technology. All such estimates must
be approved by the CTE or the assigned Principal Engineer before
they are issued.
3. Approved work hour estimates are distributed to the assigned
proposal or project engineer, the Solids Processing Principal
Engineer and CTE, and to the assigned estimator.
E. REFERENCES
1. Solids Processing GAT codes
2. Solids Processing SCAN Codes
3. Solids Processing Work Hour Estimating Spread Sheet.
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