Detailed budget estimate

A detailed budget estimate is a precise cost breakdown of the chosen solution, tailored to a specific plant.

A detailed budget estimate is prepared once the investor has chosen a concept and it needs to be adapted to the conditions at the plant: available space, existing infrastructure, utilities, regulatory requirements and time constraints, such as maintenance windows. It is based on a defined scope of work and specific technical solutions.

This type of estimate breaks costs down into line items: equipment, piping, support structures, automation, installation, design, transport, acceptance tests, commissioning, indirect costs and contingency. This shows exactly what is included in the scope for a given price. A detailed budget estimate forms the basis of the commercial offer, because it responds to the client’s specific enquiry, and it serves as a reference point for design and execution.

Example: For option B, the engineers assess the conditions at the plant. It turns out that the larger tank requires the floor to be reinforced, the boiler house has sufficient spare steam capacity, and the replacement has to be carried out during the two-week summer shutdown. The detailed budget estimate therefore includes: the new tank with agitator, rerouting of piping, floor reinforcement, new sensors and changes to the automation, removal of the old tank, installation in shifts during the shutdown, acceptance tests, commissioning and a contingency for unforeseen costs.