Nelson-Farrar Quarterly Costimating: Indexes for selected equipment items
Gary Farrar
Contributing Editor
Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose quickly to 2,569.8 in September 2014 from 2,535.6 in January of the same year before weakening to 2,544.0 in December of 2015.
The labor index rose to 3,346.8 from 3,167.4 during the 2-year period, while the materials index decreased to 1,339.8 from 1,587.8.
The miscellaneous equipment index varied a modest 18 points in the 2-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 rose and then fell during the 2-year period. It settled with a very mild decrease. The process unit index fell during the 2-year period, ending with a 137-point loss at 726.3 in December 2015.
While these two indexes varied during 2014, they ended slightly lower during 2015. 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.
