Estimating & preparing a quotation for an EPC project

[tirtho7]

Dear All,

I am new to this forum. By way of introduction I am a consultant working on a business process reengineering (BPR) project for an engineering company.

I need some insights on the processes/ techniques normally adopted for estimating and preparing a quotation for an EPC contract. Following are the assumptions on the basis of which I need to proceed:

1) The organization has a separate department for "Estimation Planning and Cost Control" within which there are three broad segments namely electrical, mechanical & instrumentation;

2) The other departments are Design & Engineering, Procurement & Subcontracts and Installation & Comissioning

3) The scope of work for which a quotation needs to be prepared involves detailed engineering, procurement and construction and the FEED and BE are already completed by an external firm;

Is it necessary for Planning to be involved in the quotation building exercise? If yes, what should the role of Planning at this stage?

Is it necessary to involve procurement at this stage for obtain quotation for equipment and material from tentative vendors?

Is it necessary at this stage to identify activities to be subcontracted during construction and obtain quotations from subcontractors? If yes, whos is best suited to do the same?

Is there any benchmark with respect to the cost estimate provided in the FEED deliverable for deciding on the amount of time and effort that should ideally go into the quotation building process

It 'll be extremely helpful if I can have some insights on the above mentioned areas. Thanks a ton in advance.

Regards,

Tirtho