OGASCO

ESTIMATION MANUAL

REV.0

Page 1 of 15
 ESTIMATION MANUAL

1. ROLES & RESPONSIBILITIES OF ESTIMATION DEPARTMENT

1.1 Study thoroughly the Enquiry SOW

1.2 If required participate in site visit and provide site visit report.
1.3 Provide estimated costs and rates in line with industry norms and norms provided by
technical departments and quotations from vendors.
1.4 Provide estimated Man-hours, Material take-off, services requirements (e.g. NDT
requirements, logistics…. etc.)
1.5 Identify inclusions & exclusions.
1.6 Compile the Technical and Commercial proposal including overheads but excluding profit
margin.
1.7 Discuss the proposal with Estimation Manager (EM) and General Manager (GM).
1.8 Profit margin will be proposed by EM and endorsed by GM.
1.9 Lead Proposal Administrator (LPA) will submit the bid to client.
1.10 Reply to technical clarifications from client.
1.11 Follow up with client after submission of bid.
1.12 Negotiation with client, if required will be conducted by EM & GM.

2. BIDDING PROCESS

2.1 Lead Proposal Administrator (LPA) receives the RFQ / RFP and allocate Bid Number.
2.2 The LPA submits the RFQ / RFP to Estimation Manager to decide whether to bid or
regret and copies to Production Manager, Project Director, GM and MD.
2.3 If EM decides to regret, LPA to prepare a regret letter to client to be signed by GM.
2.4 If the decision is to bid, Estimation will develop the Technical & Commercial proposal.
2.5 If packages require Engineering preliminary designs, the estimation to submit the
preliminary Technical Scope to the Engineering Manager to provide:

Page 2 of 15
 ESTIMATION MANUAL

2.5.1 Preliminary Design / Drawings.

2.5.2 Material Take Off (MTO)
2.5.3 Specifications
2.6 If required, Estimation will seek quotations for the SOW parts outside OGASCO services
(e.g. Civil Works, Electrical, and Instrumentation….etc.)
2.7 Estimation will also arrange prices of raw materials through procurement e.g. plates,
pipes, fittings etc. Procurement Manager will verify material availability in the inventory
surplus, survey the market for material delivery and cost. Once received submit to
Estimation.
2.8 Following a site survey (if required), Site Engineer / Engineering Staff will provide to the
Estimation the site visit report which includes all their observations and measurements.
2.9 Estimation will seek review and feedback from Technical Departments, verify whether in
line with Industry practices and develop the draft Technical proposal including:
2.9.1 Compile clarifications if any, communicate with the client for feedback. Once
the SOW is clear, the Estimation will finalize the draft Technical & commercial
package based on cost estimation.
2.9.2 Allocation of Man-hour rate (labour and direct staff) as per the approved list of
rates.
2.9.3 Calculation of the total material cost.
2.9.4 Sub-contractors quotations.
2.9.5 Inclusions and Exclusions to the SOW
2.10 The Estimation Engineer will discuss the cost estimation including draft technical &
commercial proposal with Estimation Manager (EM)/GM for final review / directives.
2.11 Following the review of EM/GM, the comments, if any will be incorporated. EM/GM will
finalize the profit margin and final technical & commercial package will be submitted by
LPA to the client.

Page 3 of 15
 ESTIMATION MANUAL

2.12 Any request for cost negotiations from the client should be documented and any cost
reductions should be approved by EM/GM following consultation with MD / CFO if
required.
2.13 Following the award of the project, the LPA will receive the draft contract from the client
and submit to Contracts Manager, Estimation Manager, Projects Director, Finance
Manager, GM and CFO for review. Any comments will be communicated and discussed
with the client until final draft is agreed. Any changes that have a cost impact should be
approved by EM/GM / MD / CFO.
2.14 The Final Agreed Contract document will be signed by GM and submitted to client for
signature. Upon receiving the signed original copy of the Contract from the client, LPA will
ensure that the original contract is submitted to Finance and copy to project director and
another copy is placed in the project file. LPA will issue the Job Announcement through
postmaster.
2.15 After receipt of Purchase Order / Call Of Order, the estimation will prepare the final
budget sheet and enter the budget in ERP system.

Page 4 of 15
 ESTIMATION MANUAL

3. GENERAL GUIDELINES

3.1 Upon receipt of inquiry, if some clarification is required or some input is required from
vendors / subcontractors or internal departments, it should be forwarded immediately by
Estimation.
3.2 Profit margin for budgetary bids should not be kept so high that the client does not
consider our bid.

Page 5 of 15
 ESTIMATION MANUAL

4. ESTIMATION RISKS

Sr.
Risk Remedy
No.
Add qualification clause in the bid that any
Sudden escalation of raw materials
cost impact due to escalation of material prices
1 prices in the market after submission
in the market during bid validity or execution
of bids.
stage, will be in Client’s account.
Add qualification clause that the quotation is
Increase in material prices at based on standard materials specifications as
2 execution stage due to unavailability per code. Any cost impact due to compliance
of Client’s specifications at bidding with Client’s specifications at later stage will be
stage. in Client’s account.
For certain clients like ARAMCO,
materials are not available in the local
Procurement department to arrange compliant
market as per client’s specifications.
quotations from vendors at bid stage or
3 They need the material from their
qualifications should be added in the bid about
approved manufacturers as well as
quoted materials specifications.
approved stockists, for which it is
difficult to arrange prices at bid stage.
Vendors / subcontractors do not
Get detailed quotations from vendors /
provide detailed quotations at bidding
subcontractors at bid stage and get
4 stage and increase price later on at
confirmation of compliance with Client’s
execution stage due to change in
specifications / SOW.
specifications.

Page 6 of 15
 ESTIMATION MANUAL

Sr.
Risk Remedy
No.
Vendors / subcontractors give certain
qualifications in their bids and Arrange back to back compliance of Client’s
increase price later on. Whereas, specifications / scope of work from vendors at
5
most of our Clients e.g. ADNOC group bid stage or pass on the vendors qualifications
of companies do not accept any to Client.
qualifications.
Projects department to discuss with senior /
Under estimation of manpower &
6 key persons and get their feedback to avoid
utilities for site work
any miscalculation.

Page 7 of 15
 ESTIMATION MANUAL

5. ESTIMATION NORMS
5.1 PIPING FABRICATION NORMS
Pipe
Thick
Sr. Size Overall Fabrication Welding Logistics
Material
No. (MH/DI) (MH/DI) (MH/DI) (MH/DI)
(mm)
(Inches)
CS &
1 2 – 12 5-9 1.63 0.65 0.73 0.24
LTCS
CS &
2 2 – 12 9 - 15 1.72 0.69 0.78 0.26
LTCS
CS &
3 2 – 12 15 - 21 1.84 0.74 0.83 0.28
LTCS
CS &
4 2 – 12 21 - 29 2.57 1.03 1.15 0.38
LTCS
CS &
5 14 – 24 5-9 1.63 0.65 0.73 0.24
LTCS
CS &
6 14 – 24 9 - 15 1.78 0.71 0.80 0.27
LTCS
CS &
7 14 – 24 15 - 21 1.99 0.80 0.89 0.30
LTCS
CS &
8 14 – 24 21 - 29 2.57 1.03 1.15 0.38
LTCS
CS &
9 26 – 48 5–9 1.84 0.74 0.83 0.28
LTCS
10 CS & 26 – 48 9 – 15
1.84 0.74 0.83 0.28
LTCS

Page 8 of 15
 ESTIMATION MANUAL

Pipe
Thick
Sr. Size Overall Fabrication Welding Logistics
Material
No. (MH/DI) (MH/DI) (MH/DI) (MH/DI)
(mm)
(Inches)
CS &
11 26 – 48 15 - 21 2.43 0.97 1.09 0.36
LTCS

12 SS 2 - 12 1–5 2.81 1.12 1.27 0.42

13 SS 2 - 12 5–9 2.29 0.92 1.03 0.34

14 SS 2 - 12 9 - 15 2.64 1.05 1.19 0.40

15 SS 14 – 24 5-9 2.39 0.96 1.08 0.36

16 SS 14 - 24 9 – 15 2.39 0.96 1.08 0.36

17 SS 14 - 24 15 – 21 2.72 1.09 1.22 0.41

18 SS 14 - 24 21 - 29 3.12 1.25 1.40 0.47

19 Alloy 2 - 12 5-9 3.16 1.27 1.42 0.47

20 Alloy 2 - 12 9 – 15 3.69 1.48 1.66 0.55

21 Alloy 2 - 12 15 – 21 4.62 1.85 2.08 0.69

22 Alloy Mixed Avg. 3.74 1.50 1.68 0.56

Page 9 of 15
 ESTIMATION MANUAL

6. OVERHEAD NORMS

6.1 Overhead rate: AED 10.69 / MH

6.2 Man-hours for overheads will be considered for normal working hours only excluding overtime.

Page 10 of 15
 ESTIMATION MANUAL

7. LIST OF ENGINEERING CONSULTANTS

Sr.
Company Name Contact Person Contact Detail Email
No.
UAE Office:
Mob: +971 52 2946150
1 ASMECH Engineering Tel: +971 4 885 1917 [email protected]
Kumar
Services Pvt. Ltd. India Office: [email protected]
Tel: +91 0674 - 247 0002 /
645 0006
Mobile No: +91
2 Kafeel Khan [email protected]
Code Tech India 8805601989
M A Khan [email protected]
Tel / Fax: +91 20 40621810
Mob: 056-480-5732
3 ALAM TECHNICAL
Muhammad Sajjad Tel: +97125554203 [email protected]
SUPPLIES LLC
Fax: +97125558296
4 Tel: +971 4 269 6028
Strutech Engineering Jothi Ramalingam [email protected]
Mob: + 971 508947333
Mob: +971-505837709 -
Karthik
Topsides Engineering Mob: +971529359315 - [email protected]
5 Karthik D
Consultancy FZE Sanoj [email protected]
Sanoj Jose
(UAE) Direct: +971 6 744 1105 [email protected]
Tel: +971-42386165
Fax: +971-2386164
6 Express Engineering Saleem Mob: +971 50 9984290 [email protected]
7 Innoserve Technical
Sanoob Nazar Tel: 00971 4 320 1237 [email protected]
Services
Mob: +971 50 812 5951
8 Mob: +39 340 4528390 [email protected]
Sime S.r.l. Matteo Baggiani
Tel: +39 0586 728 220 [email protected]
Tel: +39 02 98499 556
Tel.: +1-408-833-6278
Velmurugan
Patchamuthu
9 CAE Cell: +1-408-915-1849 [email protected]

President & CEO

Fax: +1 408- 432-7235

10 Mob.: +971-55-2220592 /
Integrity PMC limited Mahmoud Farag [email protected]
+971-50-8193751

Page 11 of 15
 ESTIMATION MANUAL

Sr.
Company Name Contact Person Contact Detail Email
No.
George Liaw Tel: +65 6741 1848 (Ext
GlobalTech Systems
Business 71)
Engineering Pte Ltd
11 Development DID : +65 6559 4071 [email protected]
Fax : +65 6741 8400
Mobile : +65 8608 8681
12 HeatKal Technologies Nilesh Kalpande Tel: +91-9970631404 [email protected]
Petrocon Engineers & Muneeb Ahmed
13 Consultants, Business Mobile: 00971-56-7070161 [email protected]
Development Head
Petrokon Emirates
14 Abou El-Fadle Tel: +971 02-4957067 / 68
Engineering L.L.C. [email protected]
Salim Fax: +971 02-5552400
Tel :+9122 - 27814721 / 23
15 P-mech GROUP OF Adhik Deshmukh /24
[email protected]
COMPANIES Mobile: 09969285943
Fax: (91-22)27814722
Tel: +971-4-3635200
Manish Pandey
16 Pyramid Engineering Fax: +971-4-4214351 [email protected];
Business
Solutions Direct: +971-4-3635221 [email protected]
Development
Direct: +971-52-6084396
Shivendra Singh
Phone : +91 22 6785
Assistant Manager
17 2415
Sarla Technologies – Business [email protected]
Cell : +91 88790
Development
88754
Sulfikar Mobile: 00971 56 477
Petrocil Engineers & Mohammed 2497, 00971 553514814
18 Consultants Operations Tel: 00971 2 6451 200 / [email protected]
Manager 201
Fax: 00971 2 6451 202
Chandan Dir: +971 2 507 0199
Chandrashekar Tel:+971 2 507 0100
19 Litwin PEL [email protected]
Business Mob:+971 56 5082795
Development Fax: +971 2 551 6254/6898
Mr. Sudeep Reddy
20 Avineon Tel: +971 2 508 9005 [email protected]
Cheruku Mob: +971 56 5615876

Page 12 of 15
 ESTIMATION MANUAL

8. LIST OF SUBCONTRACTORS FOR CIVIL WORKS

Sr.
Company Name Contact Person Contact Detail Email
No.
[email protected]
1 Granite Construction Mr. Anand / [email protected]
Tel: +971 2 677 0080
Company Mr. Sundaram [email protected]
[email protected]

2 Mr. Ameen Tel: +971 2 645 8889;

BinThani [email protected]
Mr. Shyam +971 2 885 1099;
Mob: 050616 9775
OBAID AL QUBAISI
3 TRANPORTING & Tel: +971 2 643 0953;
Mr. Himayat [email protected]
GENERAL +971 2 884 2111
CONTRACTING EST.
AL NASR
4 CONTRACTING Tel: +971 2 642 0002 [email protected]
COMPANY
5 EMCO Tel: +971 2 633 7940 [email protected]
6 Hexa Contracting Tel: +971 2 551 1430 [email protected]
ALI & SONS
7 CONTRACTING Tel: +971 2 554 6611 [email protected]
COMPANY-LLC
8 AL HUSAM GENERAL
Tel: +971 2 645 5227 [email protected]
CONTRACTING EST.
9 OSTBAU Mr. Abdul Samad Mob: 050 686 9777 [email protected]

Page 13 of 15
 ESTIMATION MANUAL

9. LIST OF SUBCONTRACTORS FOR E & I WORKS

Sr.
Company Name Contact Person Contact Detail Email
No.
Tel: +971 4 899 5000
Mr. Tareq
+971 4 899 5004 [email protected]
1 Nassereddin /
Silvertech Fax: +971 4 899 5001 [email protected]
Mr. Dayanidhi /
Mob (Tareq): 050 552 4674 [email protected]
Ms. Marie Castro
Mob (Daya): 050 645 5037
Mr. Matteo
2 Baggiani Tel: +39 340 452 8390
SIME Engineering [email protected]
Commercial Branch Mob: 050 812 5951
Manager
Hexa Oil & Gas Tel: +971 2 551 1430
3 [email protected]
Services L.L.C. Fax: +971 2 551 1531

Page 14 of 15
 ESTIMATION MANUAL

10. DATA BASE FOR MATERIALS

Please follow below link for materials cost data.
..\Data Bank.xlsx

Page 15 of 15