• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2010 Vol.1(2): 207-210 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2010.V1.38

Pricing Policy in EPC Oil & Gas Projects

Fakhrnaz Lotfian, Ali Mohammad Kimiagari, Shahram Pejmannia, and Mohsen Keivanloo
Abstract—The essential parameters in pricing policy in each and every project are the detailed scope definition and the duration of the project. These parameters are officially stated by the client at the bidding stage.These information are the basis for pricing in the engineering, procurement and construction portions with respect to the services requested by the Client.The engineering estimation is extracted from the detailed scope of work in terms of required engineering man-hour, purchasing, cost and construction bill of quantity. The summation of EPC cost along with the contingency factors, escalation and organization overhead will end up to project pricing.The project pricing is a delicate issue and if it is accurately and precisely carried out, the cash-flow and organizational productivity will be improved and if something is disregarded in pricing, the organizational performance will adversely affected and end up to bankruptcy.At the bidding stage, the project charter is deeply reviewed by marketing/ estimation department and the detailed project scope in engineering, procurement and construction is extracted.

Index Terms—Pricing Policy, EPC projects, Vendor.

Ali Mohammad Kimiagari is with the University of AmirKabir, Institute of Technology, Tehran IRAN (e-mail: Kimiagar@aut.ac.ir).
Shahram Pejmannia was with the Chemical Engineering Department, University of Sharif, Tehran IRAN. He is now with the Sazeh Consultant Co. (e-mail: s.pejmannia@yahoo.com) .
Mohsen Keivanloo, is with the University of AmirKabir, Institute of Technology, Tehran IRAN (e-mail: m_keivanloo@aut.ac.ir).

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Cite:Fakhrnaz Lotfian, Ali Mohammad Kimiagari, Shahram Pejmannia, and Mohsen Keivanloo, "Pricing Policy in EPC Oil & Gas Projects," International Journal of Trade, Economics and Finance vol.1, no.2, pp. 207-210, 2010.

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