Neural network method for control valve cost estimation on the EPC project bidding

• Main Authors: Putra Gilang Almaghribi Sarkara, Triyono Rendra Agus
• Format: Article
• Language: English
• Published: EDP Sciences 2018-01-01
• Series: SHS Web of Conferences
• Online Access: https://doi.org/10.1051/shsconf/20184902004

Cost estimation on the bidding phase is a crucial stage that determines the success of the Engineering, Procurement and Construction (EPC) project. If the cost offered to the client is too high then it could not compete with the other bidder, but if the cost offered are too low it can reduce profit margins and result in losses for the EPC companies. This paper describe the use of Back Propagation Neural Network method to help determine cost estimation. This method is applied specifically to determine control valve cost estimation on the bidding phase so that the retrieved costs will be accurate. When there is no technical and price quotation from vendors as well as the narrowness of the bidding processing time, this method can be an alternative choice to determine the price based on previous vendor quotation. In the future, this method could be developed and applied for other instrumentation equipment such as transmitter, switch, analyzer, control system and others to achieve total cost estimation of instrumentation equipment in EPC bidding proposal.