Summary Cost Metrics

The main objective of the Summary Cost Metrics report is to provide cost engineers with quick and easy metrics to be used for high-level cost evaluations. The metrics themselves are based on IPA’s Level 1 (e.g., total construction labor cost) Cost Database, and include only completed costs. The metrics are most commonly used for proportional checks (e.g., Engineering Cost to Total Cost or to validate equipment factored estimates). The following is a brief description of the sets of metrics in this report:

• Ratio to Total Project: The ratio of the cost of each summary cost account to the total design and construction cost.
• Ratio to Equipment: The ratio of the cost of each summary cost account to the equipment cost.
• Office Cost Ratios: The ratio of the cost of each office cost summary account (definition, engineering, and PM) to the total office cost.
• Ratio to Total Field Cost: The ratio of the cost of each summary account to the total field cost (field costs include construction management, labor, bulks, equipment, and other construction-related).
• Other Cost Ratios: Various field cost-related ratios such as office costs/field labor, office cost/bulks, field labor/bulks, CM/construction labor, etc.
• Definitions: IPA’s standard summary cost account definitions.

Lists of the individual metrics contained in each of the metric sets above are provided below:

Ratio to Total Project Costs (15 metrics)

Total project costs exclude startup and special.

• Project Definition Cost / Total Project Cost
• Detailed Engineering Cost / Total Project Cost
• (Project Definition + Detailed Engineering) Cost / Total Project
• Project Management Cost / Total Project Cost
• Total Office Cost / Total Project Cost
• Construction Management Cost / Total Project Cost
• Equipment Cost / Total Project Cost
• Bulk Materials Cost / Total Project Cost
• Construction Labor Cost / Total Project Cost
• Other Construction-related Cost / Total Project Cost
• Lump-sum Cost / Total Project Cost
• Total Field Labor Cost / Total Project Cost
• Total Field Materials Cost / Total Project Cost
• Total Field Cost / Total Project Cost
• Startup Cost / Total Project Cost

Ratio to Equipment Costs (14 metrics)

These are the “Lang Factor” ratios and its components by account.

• Total Project / Equipment Cost
• Project Definition / Equipment Cost
• Detailed Engineering / Equipment Cost
• (Project Definition + Detailed Engineering) Cost / Equipment Cost
• Project Management Cost / Equipment Cost
• Total Office Cost / Equipment Cost
• Construction Management Cost / Equipment Cost
• Bulk Materials Cost / Equipment Cost
• Construction Labor Cost / Equipment Cost
• Other Construction-related Cost / Equipment Cost
• Lump-sum Cost / Equipment Cost
• Total Field Labor Cost / Equipment Cost
• Total Field Cost / Equipment Cost
• Startup Cost / Equipment Cost

 Office Cost Ratios (7 metrics)

• Project Definition Cost / Total Office Cost
• Project Definition Cost / Detailed Engineering Cost
• Project Definition Cost / (Project Definition + Detailed Engineering) Cost
• Detailed Engineering Cost / Total Office Cost
• (Project Definition + Detailed Engineering) Cost / Total Office Cost
• Project Management Cost / Total Office Cost
• Project Management Cost / (Project Definition + Detailed Engineering) Cost

 Ratio to Total Field Costs (14 metrics)

• Project Definition Cost / Total Field Cost
• Detailed Engineering Cost / Total Field Cost
• (Project Definition + Detailed Engineering) Cost / Total Field Cost
• Project Management Cost / Total Field Cost
• Total Office Cost / Total Field Cost
• Equipment Cost / Total Field Costs
• Bulk Materials Cost / Total Field Costs
• Construction Management Cost / Total Field Cost
• Construction Labor Cost / Total Field Cost
• Other Construction-related Cost / Total Field Cost
• Lump-sum Cost / Total Field Cost
• Total Field Labor Cost / Total Field Cost
• Total Field Materials Cost / Total Field Cost
• Startup Cost / Total Field Cost

 Other Cost Ratios (10 metrics)

• Other Construction-related Cost / Construction Labor Cost
• Construction Management Cost / Construction Labor Cost
• Total Office Cost /Total Field Labor Cost
• Total Office Cost / Bulk Materials Cost
• Total Office Cost / Total Field Materials Cost
• Construction Labor Cost / Bulk Materials Cost
• Total Field Labor Cost / Bulk Materials Cost
• Total Field Labor Cost / Total Field Materials Cost
• Total Project Cost / Total Field Materials Cost (i.e., total Material Lang)
• Equipment Cost / Piece of Equipment (unit cost in millions 2015$)