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What does an automation project cost, and why?

Automation engineer at screens

In short: The price depends mostly on how well the need is described, how much of the existing system can be reused, and how many parties must be coordinated. With a good mapping up front, both price and risk become far more predictable.

"What does it cost?" is almost always the first question, and the honest answer is that it depends. But you can understand what the price consists of, and why two projects that look alike can end up with very different bills. That makes it easier to budget, compare quotes and make good choices.

What the price consists of

  • Mapping and functional description. What should the plant do, and how? This is the foundation for everything that follows.
  • Hardware. Control system (PLC), operator panel, sensors, network equipment and the cabinets and panels themselves.
  • Software and licences. For example SCADA, where the licence model varies a lot between platforms – some are paid per module, others by the size of the plant.
  • Design and programming. Electrical drawings, programming of the control system and screens.
  • Testing and commissioning. Testing before delivery, connection on site and training of the operators.
  • Documentation and follow-up. Drawings, functional description, and service once the plant is in operation.

In many projects the hardware is not the biggest item, but the hours spent on design, programming, testing and commissioning. That is also where the difference between a well-planned and a poorly planned project is greatest.

What drives cost up

  • Unclear requirements. When the need is not described well enough, changes follow along the way – and changes late in a project cost the most.
  • Old plants without documentation. If the drawings are outdated or missing, a lot has to be mapped again before the work can start.
  • Many interfaces. When electrical, automation, IT and machine suppliers are different companies, a lot of time goes into coordination and clarifications.
  • Short shutdown windows. If the work has to be done in the evening, at night or during a short maintenance stop, it requires more planning and often more people at the same time.
  • Special requirements. Requirements for safety, traceability or documentation from customers and authorities mean more work – but are often necessary.

How to keep the cost down

  • Start with a mapping. A good functional description before you decide saves far more than it costs.
  • Reuse what works. Existing control systems, sensors and cabling can often be kept. It is about replacing what has to be replaced – not everything.
  • Take it in steps. Begin where the benefit is greatest, and build on it when you see the results.
  • Choose the platform to fit the size. A solution that suits a large plant can be unnecessarily expensive for a small one – and the other way around.
  • Test before delivery. Errors found in the workshop are much cheaper to fix than errors discovered when the plant is standing still.
  • One supplier for the whole. Fewer interfaces mean less coordination, fewer misunderstandings and one place to turn to.

Cost versus benefit

The price is only half the equation. The other half is what the project gives back: fewer stops, less waste, more operating hours and less manual work. Our automation benefit calculator gives a quick estimate of what it could mean for your plant.

How we work

We gladly start with a no-obligation conversation and a mapping of the plant. You then get an estimate based on your actual needs, and we agree on the scope before the work starts – so there are no surprises along the way.

Want to know what a project could cost for you? Read more about our solutions or get in touch.

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Sverre A. Blindheim

Get in touch

Want to know how we can help you? Call or e-mail me and we will talk about your needs.

Sverre A. Blindheim

Sr. Automation engineer / CEO

+47 97 05 80 66

sverre.blindheim@elio.no