Author: K.Thomas
PROCEMIN Conference 2008, Santiago, Chile
Abstract
Since 2003 there have been significant increases in the price of metals, fabrication and construction labour. The price increases have been caused by the demand from emerging nations, especially China. Despite rigorous procedures in capital estimation, following the normal development steps of concept study, pre-feasibility study, feasibility study and basic engineering prior to project execution, whether it is EPC or EPCM, project capital costs have escalated beyond their original estimates on approval to proceed.
