5 replies to this topic

[Lowflo]

What is the typical hourly charge rate for process engineering work done by an EPC in India?

[chemsac2]

It is about 800-1200 INR per hour (15-30 USD per hour) for working engineer.

Few companies have different charges for working and lead engineer / supervisors.

If basic engineering / FEED work is involved, companies may charge at premium rates.

Regards,

Sachin

[ankur2061]

Lowflo,

The man-hour rates keep fluctuating depending on the global economy. During the boom period of oil and gas in 2005-2007 Indian companies have charged up to $40-45 per man hour also.

During the recession period of 2008-2010, many companies were willing to take up work at even $10-12 per man hour also.

This is a global pattern and engineering man hour rates in the chemical process industry are directly governed on how the global economy reacts to changes in the oil & gas, refining and petrochemicals sector.

However, in an overall perspective the engineering man hour rates in India are at least 30-40% lower than North America and the European Union. This is one of the primary reasons that all major engineering consulting companies such as Bechtel, Foster-Wheeler, Fluor-Daniel, Technip, Jacobs Engineering and Worley Parsons have set up shop in India. The abundance of skilled engineers / technicians and low costs are a major attraction for a lot of western companies to open up offices in India. The other advantage is that English is the language of all commerce, industry, research and engineering in India which is not the case with some other countries having a large pool of skilled engineers / technicians such as China.

Regards,
Ankur.

[Lowflo]

Ankur & chemsac - thanks for your feedback.

A colleague stated that 55-60 USD is a reasonable cost for process engineering work done at the Indian office of a global engineering company like Jacobs, flour, technip, etc. That figure seems far too high to me. BTW, I'm talking about core engineers and not leads or project managers.

Is 55-60 USD a competitive charge rate from an Indian EPC for work starting in August 2011?

Thanks.

[abhi_agrawa]

Lowflo,

Depending on the extent of work you are looking for, the rates would actually go from USD 15 to 35. this would include the cost for leads and project managers. Other that Flour, jacobs, Technip there are several other companies that would do your work. You can probably get in touch with L&T, Punj Lyod etc. who would charge you less that Flour etc. It could also be possible for you to get people on contract to your offices from India. This option is also sometimes less expensive than hiring.

abhishek

[vishtech03]

Lowflo,

Depending on the extent of work you are looking for, the rates would actually go from USD 15 to 35. this would include the cost for leads and project managers. Other that Flour, jacobs, Technip there are several other companies that would do your work. You can probably get in touch with L&T, Punj Lyod etc. who would charge you less that Flour etc. It could also be possible for you to get people on contract to your offices from India. This option is also sometimes less expensive than hiring.

abhishek

The average cost for process engineering could be Rs.1200 per hour.While it could be Rs.500 per hour for a graduate engineer with some experience,it could be as high as Rs.1500 for Lead Engineer/Manager.