A Framework and Practices for Cost-Effective Engineering in Capital Projects in the A/E/C Industry

This research concludes:

• Yes, 2% engineering costs can be achieved for standard equipment-intensive projects; and
• No, 2% engineering costs cannot be achieved for custom design process-intensive capital projects, but some reduction of costs may be possible.

The research also highlights that typical engineering cost as a percentage of Total Installed Costs (TIC) has been 5-10% for standard equipment intensive projects and 15-20% for custom design process intensive projects. (RR112-11, p. 121)

The research includes an integrated framework for cost effective engineering developed by the National Science Foundation and others. This framework contains detailed schematic representations of the different dimensions, components, and elements, and special processes and tool to achieve effective engineering. (RR112-11, Appendix E)

RR112-11, An Overview of Practices for Cost Effective Engineering in the A/E/C Industry  

The strategies and practices described are embedded within approaches to the context of capital projects, contracting and team building, engineering design and technologies, productivity improvement and lessons learned. (RR112-11, p. 75)