01-12-2022

Recommended practices for cost estimating maintenance turnarounds

In the September 2021 edition of “The Chemical Engineer” magazine, Gordon discusses the current poor state of turnaround cost estimating and highlights five, simple to implement actions that can help improve the accuracy of future turnaround estimates.

Read the full article here: www.thechemicalengineer.com/features/improving-cost-estimating-for-maintenance-turnarounds. This article is the fourth in a planned series of six from Gordon, being published in “The Chemical Engineer” on the topic of maintenance turnaround preparation and planning.

The Recommended Practices issued by AACE International are widely recognised and have been adopted in estimating and control departments across the process industries. Until recently, the focus of these practices was mainly on capital projects. However, they are now also beginning to cover Maintenance Turnarounds.

A first RP on Maintenance Turnarounds, RP112-20 was issued in March 2021. This RP provided a framework for standardisation of cost estimate classes for maintenance turnaround cost estimates across the process industries. The primary contributor to this RP was Gordon Lawrence, Becht’s Regional Manager for Maintenance Turnarounds & Capital Projects.

The AACE has now published a second RP on maintenance turnarounds and the primary author is again Gordon Lawrence. RP116R-21 focuses on the value of writing a “Basis of Estimate” document when preparing a turnaround estimate and provides an outline of what such a document should contain. Gordon was supported in the preparation of this RP by fellow AACE members Arnaldo Angelini, Jeffery Borowicz, Nathan Dykstra, Praveen Kumar and Dave Kyle.

Cost estimating for maintenance turnarounds has historically lagged behind capital projects in terms of estimate methodology rigor and standardisation. This RP helps to move estimating methodologies for maintenance turnarounds a step further forward.

RP116R-21 is the fifth AACE RP that Gordon Lawrence has been involved with. Becht is proud to be actively involved in codes and standards committees throughout our industry. Our subject matter experts use their multidisciplinary knowledge and holistic approach in every project.

Need advice or counsel for estimating costs of your turnarounds?  Contact a Becht expert regarding your future plans.

“The Chemical Engineer” is a monthly chemical engineering technical and news magazine published by the UK Institution of Chemical Engineers. Gordon is a Fellow of the Institution and has published several articles in the magazine in the past, on the topics of maintenance turnaround and capital project preparation & planning.