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Aligned with CII RT-252 and IPA / AACE practice

Benchmarking in Major Capital Projects

Most published benchmarks tell you what happened to other projects after the fact. This chapter focuses on the leading indicators and structural ratios that actually help you calibrate your project.

The problem with benchmarking as practised

Benchmarking is one of the most frequently cited and least effectively applied tools in capital project management. AACE RP 11R-88, IPA outcome data, and CII publications all provide frameworks — but in practice they are either too high-level to be actionable, or too narrowly focused on lagging outcomes.

This chapter focuses on three contexts where benchmarks earn their keep: study-phase cost ratios, execution-phase EPCM-to-TIC ratios, and procurement and contract duration benchmarks.

The First Rule of Benchmarking

Never apply a benchmark without first confirming the project type from which it was derived.

A mining lead applying Oil & Gas piping benchmarks will systematically under-resource civil and over-resource piping.

Filter #1

Project type is the first variable

Structural cost differences by project type
Cost elementOil & Gas / LNGMining / MineralsInfrastructure / Civil
Piping & ProcessHigh (30–45%)Moderate (10–20%)Low (5–10%)
Mechanical EquipmentModerate–HighHigh (25–40%)Low–Moderate
Civil & StructuralModerateHigh (20–35%)Very High (40–60%)
Electrical & InstrumentationHighModerateModerate
Buildings & InfrastructureLow–ModerateModerateHigh
Context #1 — Study phase

Study-phase benchmarking

The most widely-used study benchmark is total FEL study cost as a percentage of the Class 2 capital estimate.

FEL study cost as a % of Class 2 capital estimate (TIC)
FEL StageOil & Gas / LNGMiningInfrastructure
FEL-1 (Concept)0.1–0.3%0.1–0.3%0.1–0.2%
FEL-2 (Pre-Feasibility / Selection)0.5–1.5%0.4–1.2%0.3–1.0%
FEL-3 (Definition / FEED)2.0–5.0%1.5–4.0%1.5–3.5%
Total FEL (all stages)2.5–6.5%2.0–5.5%2.0–4.5%
Context #2 — Execution phase

EPCM services as a % of TIC

EPCM services as a % of TIC
Project type & scaleIndicative EPCM % of TIC
Mining / Processing — Small (< $200M TIC)12–20%
Mining / Processing — Medium ($200M–$1B)8–15%
Mining / Processing — Large (> $1B)6–12%
Oil & Gas / LNG — Medium8–14%
Oil & Gas / LNG — Large / Mega5–10%
Infrastructure — Medium10–18%
Infrastructure — Large7–14%
Context #3 — Procurement

Duration benchmarks matter more than cost benchmarks

The duration from engineering release to PO, and from tender issue to award, sits directly on the project's critical path.

Engineering-to-PO duration benchmarks (weeks)
EquipmentEng → IFTTenderTBE/CBEIssue POTotal
SAG / Ball Mill (large)4–86–104–63–617–30
Large Compressor Train3–66–83–53–515–24
Gas Turbine / Generator4–86–104–63–617–30
HV Transformers (>10 MVA)3–54–63–42–412–19
HV Switchgear3–54–63–42–412–19
Process Vessels / Columns3–64–83–52–412–23
Shell & Tube Heat Exchangers2–43–62–42–39–17
Large Pumps (engineered)2–43–52–32–39–15
Standard Pumps (catalogue)1–22–31–21–25–9
Control System (DCS / SCADA)4–84–84–63–515–27
Structural Steel (fabricated)3–53–52–42–310–17
Piping (bulk issue)2–33–42–31–28–12
Instrumentation (bulk)2–32–31–21–26–10
Scope-definition-to-award benchmarks (weeks)
PackageSoW → TenderTenderTBE/CBEAwardTotal
Major Civil (Earthworks > $50M)8–166–104–84–822–42
Concrete / Structural Steel6–125–83–63–617–32
Mechanical Installation6–104–83–63–516–29
E&I Installation6–104–83–63–516–29
Piping Fabrication & Install6–125–83–63–617–32
Camp / Accommodation4–84–62–42–412–22
Mobile Plant & Equipment Hire3–63–52–31–39–17
EPCM Services (if tendered)8–166–104–84–822–42

Market conditions matter. These ranges assume a normally competitive vendor market.

Context #4 — Engineering deliverables

Core engineering deliverable durations

Engineering deliverable durations are arguably the least benchmarkeddata in the entire capital project value chain.

PFDs
Process Flow Diagrams
P&IDs
Piping & Instrumentation
GAs
General Arrangements
Layouts
Plant / equipment layouts
Detail Dwgs
Mechanical, civil, E&I details
Deliverable History app
Plots each document's revision sequence (Rev A → IFR → IFC) against real timelines.
Open Deliverable History
Red flags

Benchmarking red flags

Study phase

FEL-3 below 1.5% of TIC on a complex project — under-investment in definition.

Execution phase

EPCM below lower bound is suspicious — leading indicator of cost overrun.

Procurement

IFT-to-PO durations below the lower bound — schedule risk that must be registered.

CII perspective

The CII approach to benchmarking

CII Performance Assessment System

CII operates one of the longest-running owner/contractor benchmarking programs in the industry, captured under RT-252.

Leading vs lagging indicators

CII emphasises leading indicators — PDRI score, FEP maturity, Advanced Work Packaging readiness.

Deep dive: how CII actually collects benchmarks
The 10-input / 10-output framework, ~250-question submission, and what's public.
Open CII deep dive
From field guide to toolkit

How our apps support benchmarking

CPDS — duration basis per package

CPDS lets you tailor a forecast SoW→Award duration on every contract package.

Read the CPDS chapter
Risk analysis basis

Benchmark ranges translate directly into minimum / most-likely / maximum inputs for QSRA and QCRA models.