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wire are high in demand in the oil & gas market as well as the power market. When both industries are busy, costs increase dramatically due to not only material and manufacturing costs, but also due to greater demand than supply. Market coiiditions sometimes make it nearly impossible to assess with any certainty the proper amount of escalation to apply to some materials and equipment. This is compounded by the extended time from estimate development to project implementation. CH2M HILL‘s constant activity in bidding and procuring material and equipment provides more accurate costs that reflect current market conditions than available by other means. CHILM HILL’S Indicative Estimating Software Model CH2M HILL has taken over 20 years of data from our involvement in the Power industry and developed an indicative database to aid in estimating future projects. The ’Tower Indicative Estimating Program” derives project costs based on information that is input on various worksheets within the program from a series of inputs, multiple logic functions and iterations, and a preliminary Indicative Estimate is produced which can be reviewed and modified as necessary. Power Indicative Estimating Program Output Once a project configuration, location, schedule aid execution model is defined, tlie indicative estimator works with a Power Project Engineer to reflect other project properties unique to the project. The estimator inputs tlie specific project data into the model and then reviews with experienced construction managers and engineers to confirm alignment. The program produces an estimating basis and a series of outputs. Some of these outputs include: 0 Quantities of concrete, structural steel, pipe, conduit, cable and insulation Equipment required by system * Work-hours for labor by discipline 0 Engineering hours 0 Construction supervision hours 0 Startup and testing hours 0 Indirect labor and equipment The program allows the estimator to input the latest labor rates, productivity, which is then tabulated in the program to develop the final cost of tlie plant. The results of these analyses are contained in Section 6.0 of this report. 2.2 Owner Cost Estimates Pricing for the t h e e major components, the Combustion Turbine Generators (CTGs), the Heat Recovery Steam Generators (HRSGs)and the Steam Turbine Generator (STG),is based on GE Power Island information obtained from similar plants CHIZM HILL has constructed and proposed. Note &at GE‘s scope includes the Continuous Emissions Monitoring Systems(CEMS),Packaged Electrical and Electronic Control Cabs (PEEK),the Plant Distributed Control System (DCS) and the CTGs and STG auxiliary equipment. Page 5 of 27 The Bra!tle Croup 2011 PJM CONE Birdy Appendis Page B-8PDF Image | THE APPLICATION OF KENTUCKY POWER
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