Nelson-Farrar Quarterly Costimating: Indexes for selected equipment items
July 3, 2017
Gary Farrar
Contributing Editor
The Nelson-Farrar refinery construction index rose from 2,535.6 in January 2014, to 2,567.9 in December of the same year. Then turned downward ending with 2649.9 in December two years later
The labor index rose from 3,167.4 to 3,455.8 over the 3-year period, while the materials index started with 1,587.8 decreased to 1,339.8 and then finished at 1,441.2.
The miscellaneous equipment index varied a modest 5 points in the 3-year comparison. The category includes pumps and compressors, electrical equipment, heat exchangers, instrument, and engines. They are thus manufactured items, and their costs are a measure of manufac-turing efficiency.
The Nelson-Farrar refinery operations index varied during the 3 year period. It settled with a very mild decrease The process unit index varied during 2014 and then ended with a near 70 point loss during the 2015-16 years period, increasing from starting at 863.5 and then finishing with 796.4.
These two indexes varied during 2014 and then rose slightly during the last two years. Changes in the cost of refinery fuels accounted for much of the oscillation. Continuing increases in refinery operating efficiency helped stabilize values of both indexes.
