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 INTRODUCTION

Here we offer cost estimating
and technological services for machinery industry


Qualifications, skills:

  • Technical college: Machines and buildings construction
  • Engineering school: Mechanic for machinery and equipment
  • International Welding Technologist,certified according to ISO 14731:2006
  • Certified Sales Representative, course with diploma
  • 25 years of experience
  • Language spoken: Czech, English, Russian, Polish
  • advisory.centre@seznam.cz

 


Budgeting by branch of industry and products:

  • Common locksmith products.
  • Steel structures of halls, bridges, metalwork for constructions (Fe, FeCr, Al).
    Machining, machined parts of machines and equipment.
  • Complex weldments, frames for machines and engineering equipment.
  • Mining industry and technology, mining towers, cages, crushers, screeners, hoppers, conveyors.
  • Heavy machinery for metallurgy, blast furnaces, ladle furnaces, converters, mixers, casting pans, trays, heaters, main pipes, EAF lids.
  • Chemical and water industry, media distribution, storage tanks - cylindrical and ball, WCP stations, columns, reactors, water turbines and accessories.
  • Energy industry, heat boilers, steam drums, exchangers, ECO, LUVO, MeW, chambers, pipes, desulphurisation, CNG filling stations, etc.
  • Nuclear power plants, reactors, steam generators, volume compensators, recuperators and other components.
  • Rolling equipment, continuous casting, production tracks, winders, unwinders, rolling cartridges, scissors, conveyors, stackers.
  • Light machinery, budgeting for CNC laser production from thin sheet metals (Trumatic, Trumabend), wire program, tinmen products of robotic workplace.
  • Budgeting for metal parts of buildings, distribution and building network utilities.
  • Budgeting for an automotive sector, serial and mass production.

 

Budgeting labour costs:

  • Valuation of design works, project costs, drawings, calculations.
  • Valuation of technological works, preparation of spreadsheets, statements of materials, procedures.
  • Valuation and standardization ( Man-hour norms ) of basic production operations by centres - cutting and edge preparing, assembly, welding, painting etc.
  • Valuation of pure machining.
  • Valuation of erection on site.

 

Additional services I offer:

  • Creation or control of normatives.
  • Creating price-lists and price databases.
  • Creation of supplier databases – where to buy.
  • Creation of subscriber databases.
  • Inspection and design of welds in the documentation.
  • Technological, guideline and assembly procedures.
  • Design and advisory on materials for products.
  • Design and implementation of calculation formulas for companies.
  • Design and implementation of calculation formulas for companies with data extraction for controlling, output for SAP, ORACLE.
  • Design and implementation of pricing and sales strategy.
  • Consultations, auditing assistance.

Final price for each service will be stated according to the true scope of work and the complexity of the assignment.

 

Why to hire an external costing estimator? Because you will have:

  • Time saved
  • Risk reduced
  • Money earned
  • Business developed
  • Brand value increased
  • Competitiveness improved
  • Independent view obtained
  • Dealing position in tenders strengthened

 

How to hire - labour agreement.

There are several ways to enter into a collaboration.

For one-time work, small projects, a single entrepreneur, I recommend labour arrangement as a subcontractor. This contract consists of a simple purchase contract, which states the scope of the work, price and the term. Income taxation is on my side.

For longer cooperation, larger projects, for companies of all sizes, I recommend labour arrangement as a distant employee. Preferably perform work paid per hour. The best way to make a contract - commonly used - is an agreement on work activity, or work performance agreement to avoid unnecessary invoicing. Taxation is on your side, so the mine rates below are stated after taxation. This contract consists of your company documents where the conditions are defined according to your procedures and standards, scope of activities, net wage paid per hour we agree on.

The number of true work hours will be stated in a note of each calculation.

Trial calculation or a test estimating, or exemplary technological work - all must be paid.

 

How long does it take me to create the price?

I must point out here that it is not in my interest to report more hours than necessary. And I work as fast as possible depending on the quality of handed over documentations, type, range and the rate of complexity of the work.

Common steel structures, tanks, silos, piping, will be processed within 6 - 12 hours.

Is possible to opt for only quick chain calculation ( without spreadsheet ), where is only raw estimation done, in one hour. ( Not for all type of parts ).

How much does it cost?

Basic rate is 40€/ hour (counting, budgeting, price offer creating).

For special works, material advisory, business development, is 80 €/ hour.

This rates can by changed according to volume of asking work, of task complexity and another special requirements.

Preferably acting as a freelancer, but some contracts can also be made.

Having any questions do not hesitate to contact me.

 

What is the process about?

Ask me for pricing by sending DWGs, BOMs, and other informations.

I tell you what is possible to do and give you a price for my work or we make a contract.

Than we can agree: What will I do for you. In what price. On which term.

 

What will you obtain from me?

An A4 format spreadsheet (one or more pages) with budget calculation derived into sub-sumarization for materials, works-men hrs., subcontracting works, erections costs, indirect or additional costs, planned margins, final recommended price to offer.

Preferable formats *pdf, *dwg, *xls.

Special notes to found out some key project omission or material changes, and drawings misinterpretations, will be disclosed as advisory at the front or end of the budget - that is a free of charge bonus of mine.

Revision of calculations in case the customer wants to reduce the price:

I'm doing this check quickly and I'll tell you right away if it's possible to take a step back or not. I usually do these revisions also for free.

Revision of calculations, in case there has changed design, technology, input range, materials, significantly: This must be paid for as a completely new assignment.

 

What I need to obtain from you?

  • Drawings, BOMs
  • Specifications for definition of standards and applicable codes used.
  • Quality requirements on parent material delivered
  • NDE, DE, pressure, leak and another examination
  • Painting and coating specification inc. blasting
  • Who is responsible for drawings costs
  • Packaging requirements, if necessary
  • Special additional information, if you have.

( That small cheap cottage will be built on top of Everest, does it affect the price? - I think it does...)

 

Transportation costs will not be added, all prices are stated here FCA, EXW
If you do not possess all documents mentioned above, e.g. BOMs etc., I can create it, design and complete them for pricing purposes, and these will be specified in budget calculation to know what has been calculated = those will be offered. As a basic professional suggestion dedicated to next clarification and negotiation.

Please remember, more you have information in your enquiry gained, more quickly and cheaply I process them. Based on my quite experience I can design price for a lot of devices with almost nothing, but sometimes it is impossible to put a price together, e.g. machined parts cannot by counted without machining drawings for production... thanks for understanding.

YOUR COMPANY WORKSMEN LABOUR RATES ( per hour ). These I need to know to tailor budget formulas for your region and local conditions. Hour labour rates vary a lot acc. to regions e.g. for common MAW welders: Far East Europe 5 - 10 €, Middle East Europe 10 - 15 €, Central Europe 14 - 30 €, Middle West Europe 30 - 40 € and so on. This example shows, that I am not able create a serious budget without your INTERNAL HOUR LABOUR RATES. However, if it is your secret, medium rates for the EU region will be calculated.

UNITS - Preferably Metric Units (kg, mm) system is used.
Imperial units can be also processed.

Specification which system shall I use. There are two different approaches to budgeting:

Western system with pricing for work-prep, cutting and edge-preparing, fitt-weld etc. Nowadays is considered as a clunky, not much accurate, but if you use it in your company, there is no problem, I manage.

Eastern system derives works-men hours according to cost accounting department units, pricing them separately for locksmiths, fitters, welders etc. Modern, more accurate and easier to check - I recommend!

Special pricing by structural or invoicing sub-assemblies, e.g. columns, operating units, etc.

Pricing divided by costs, e.g. direct material, labour cost, cooperation, painting, overhead, packaging, delivery, etc.

Here I would like to point out the inappropriateness of mixing these systems together. Because each approach requires different formulas, the resulting numbers may differ slightly for the same product.

If I give a single price for the final product, for example a steel structure, I will impose overhead and margin on this price as a whole.

The next requirement to break this price offer for material, works, coatings..., will lead to the fact that each of these items I have to charge separately, and the price will increase. This is the most common mistake in formulating a requirement that causes many misunderstandings.

 

A few words about the material.

Material prices can fluctuate in today's turbulent market. Some groups of materials less, others more, a typical example are pipes. For materials, their prices are in considerable volatility is recommended to have a risk pillow.

 

Purchased items of great importance - please, read carefully!

If the inquiry consists of purchased parts of great importance, such as huge motors, electrical work, large castings and forgings, special purchased equipment, there are two ways to proceed: Either I use the prices from my database - if they are there, but there cannot be everything of course, or if they are not - it is necessary to ask for a price offer of these items from a subcontractors.

I kindly remind you here that I can't substitute for your purchasing department. Key items require received offers, sub-tenders, so requests for them should be issued as soon as possible. Until the bids are received from the subcontractors, it is not possible to complete the final price.

It often happens that the deadline for the main tender is before the time in which subcontractor offers can be received. In this case, I decide on my own method and will price the key items in advance. Personally, I try to avoid lingering requests sending to subcontractors and waiting for their answer, but it is not always possible. In case of difficulties with short deadline, however, I can suggest the right procedure and make the budget anyway.

Lastly, if you have your own price database, mainly with some suppliers you are listed there as a creditworthy customer, communicating these prices will significantly speed up my processing of your request.
Thank you for understanding!

 

Disclaimer.

The customer for whom I am ( the contractor or the distant employee ) preparing a cost estimations/ price offers is fully aware that all prices received are informative only, that any claims, rights, occupations, obligations, requirements, liabilities, consequences cannot be derived from them.

The customer fully understands that the estimated price in the calculation is seldom a final selling price, such the price is determined by subsequent trade negotiations, which is under his full responsibility.

The calculations offered here therefore serve as control studies and informative cases to facilitate and support these trade negotiations.

The contractor honestly declares that he will not process calculations where a third party would enter to him with the same request and he will also keep the confidentiality of the customer's sensitive internal data.