All estimates, at each stage, are developed with a specific Work Breakdown Structure (WBS) which will be reviewed and expanded as the Development progresses.
Figure 5 gives a typical Onshore Work Breakdown Structure.
Download sample Onshore WBS
The Cost Estimate Model will be developed from the WBS and provide the format and structure for the type of estimate being produced. This approach enables any sensitivities in the estimates’ independent variables to be easily changed as different scenarios are evaluated.
Using OGDE proprietary systems and established cost estimating methodologies as the basis, the estimate will be developed using our database of current rates, norms and productivity factors for all independent variables (cost drivers). For example, engineering and construction manhours, equipment and bulk materials tonnage, metres, kilometers etc.
These unit rates will be derived from the potential regions in which the development will be executed.
An assessment of the degree of accuracy of the class of estimate will be carried out, which will be classified in line with Industry Standards.
To assure the level of potential contingency assessed relects the risks associated with the stage of the development.
Further detailed Cost and Schedule Analysis can be carried out as the development progresses.