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E&C Costs Expected to Rise Further

1:37 PM MDT | January 10, 2007 | Esther D’Amico with Robert Westervelt

Engineering and construction (E&C) costs are likely to rise further this year amid continuing increases in E&C material and equipment prices as well as a tight labor market, says Jim Scotti, v.p. and chief procurement officer at Fluor, which plans to release its 2007 materials outlook study soon. Fluor gave CW an exclusive pre-publication look at combined chemical and oil and gas industries data from the study. Scotti: Demand and outstrips supply. Fluor could not provide estimates of how much total installed E&C project costs are expected to rise, but...

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