Estimating industrial projects: what makes them different

19AUG
2024

A warehouse and a processing plant can have the same square footage and a wildly different cost. Industrial estimating is not commercial estimating with bigger numbers.

Equipment drives everything

On process work, the equipment list sets the foundations, the structural steel, the electrical service and the piping. Start from the equipment schedule, not the floor plan.

Piping and specification matter more than length

The same run in carbon steel and in stainless with specialty welds are different jobs. Spec class, joining method and weld count drive the labor.

Productivity factors are the real variable

Working at height, in confined spaces, around live production or on a shutdown schedule can cut productivity substantially. Those factors, not unit costs, decide whether the estimate holds.

Phasing and shutdowns

Work that must happen inside a narrow outage window carries premium labor, overtime and standby crews. If the schedule is not priced, the estimate is not finished.

Industrial bids reward estimators who ask about operations before they start measuring.

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