1. Total Cost of Plant Purchased cost – equipment f.o.b.
Installed cost – Often 3 to 8 times larger than purchased cost
free on board (FOB): A reference to the place where purchased goods will be shipped without transportation charge. Free on board at the place of manufacture shows there is a charge for delivery.

2. Installed Cost of Equipment (Table 7.6)
1. Direct Project Expenses
Equipment
Material for installation
Labor for installation
2. Indirect Project Expenses
Freight, insurance, and taxes
Construction overhead
Contractor engineering expenses

3. Installed Cost of Equipment Table 7.6 (cont’d)
Contingency and Fee
Contingency
Contractor fee
Auxiliary Facilities
Site development
Auxiliary buildings
Off-sites and utilities

6. Example 7.7:
The Capital cots of a 30,000 metric ton/year iso propanol, plant in 1992 was established to $ 23 Million. Estimate the capital cots of a new plant with production rate 50,000 metric ton/year in 2007 (assume CEPCI = 500)?
Cost in 2007 = cost in 1992 * Capacity correction * Inflation Correction
= *(50 000/ )^0.6 * (500/358)
= * * 1.397
= $

8. Purchased Cost of Major Equipment From Preliminary PFD
(Pumps, Compressors, vessels, etc.)
Total Module Cost
Disadvantage: Can’t accurately account the common problems of special material of
Construction and high operating pressures

9. Example 7.8

10. Module Factor Approach
Common for New Chemical Plant –Accepted as preliminary cost estimation.
Table 7.8
Direct, Indirect, Contingency and Fees are expressed as functions (multipliers) of purchased equipment cost at base conditions (1 bar and CS)
Each equipment type has different multipliers.
Deviation from base condition (I bar & CS) are handled using factors that depend on:
The specific equipment type.
The specific system pressure
The specific material of construction
Details given in Appendix A

11. Module Factor Approach
Bare Module Factor
(sum of all multipliers)
Bare Module
Cost
Purchased Equipment Cost for CS
and 1 atm pressure - Appendix A
FBM = B1 + B2FpFM
Fp = pressure factor (= 1 for 1 bar)
FM = material of construction factor (=1 for CS)
Please check
Appendix A (all figures and Tables)

12. Bare Module Factor (at 1bar& CS)

17. Figure A.18

18. Module Factor Approach
Figure A.18

19. Case Study Repeat Example 7.10 considering the following:
Operating pressure 12 bar.
Floating head, shell & tube constructed using stainless steel (SS)

20. Pressure Factors
Equ 7.9

21. Module Factor Approach – Pressure Factors
Equation 7.10

23. Effect of Materials of Construction and Pressure on Bare Module Cost
MOC Cp
CBM
1 bar CS
25 K
82.3 K SS
68.3 K
154 K
100 bar
34.6 K
98.1 K
94.4 K
197.4 K
This slides illustrates the effects of materials of construction and pressure on the bare module costs. This is also illustrated for 2006 numbers in Chapter 7, Examples 7.10 – 7.12

28. Example 7.14

29. Important new information :
Equation A.1 check the capacity parameter (area, diameter, volume)
Pressure factor (Fp) fro vessels or towers can be calculated using both equation
7.10 or figure 7.6
Table A.5 there is different formula of bare module cost (CBM) for different equipment
FBM for date in Figure A.6 (packing, towers, trays) can be directly calculated using identification number in Table A.6
See the difference between Table A.3 is different A.6?

30. Bare-Module and Total-Module Costs
BM – Previously Covered
TM – Includes Contingency and Fees at 15% and 3% of BM

31. GR – grass-roots cost includes costs for auxiliary facilities
Grass-Roots Costs
GR – grass-roots cost includes costs for auxiliary facilities
Use base BM costs in GR cost (1 atm and CS) since auxiliary facilities should not depend on pressure or M.O.C.
The auxiliary facilities such as roads, changing rooms, tank farms, offsites, utilities, etc. should not be a function of the operating pressure or MOC. Therefore the value for them is taken based on the base-case conditions (1 atm and CS).

32. Materials of Construction
Very important
Table 7.9 – rough guide
Perry’s – good source
Based on the cost changes associated with changes in MOCs, it is very important to specify the MOC correctly.

33. Materials of Construction
Table 7.9

34. Materials of Construction
Table 7.9

35. Capcost Calculates costs based on input
CEPCI – use current value of 500 or latest from Chemical Engineering
Program automatically assigns equipment numbers

36. Capcost
There is a video showing how to use the capcost program. It is very straight forward – just follow the screens and fill in the numbers. A sequence for a shell and tube exchanger is shown on the next slide.

37. The input form requires a choice of MOC, operating pressures, required heat transfer area and number of shells. The program will calculate the base purchased cost (Cop) and the bare module cost CBM) for the equipment.

38. Once the information has been entered, the equipment list will be automatically updated with the correct equipment number and cost info. If the Utilities tab is pressed the CTM and CGR are given.

39. Once the information has been entered, the equipment list will be automatically updated with the correct equipment number and cost info. If the Utilities tab is pressed the CTM and CGR are given. Note that under the utilities column the word unspecified is written – this will be covered in the cost of manufacturing lecture.
Additional equipment are added until all the major equipment are accounted for.

40. Summary
In general, information about costs must be scaled for capacity and time using appropriate cost exponents and indices
Total plant costs involve a variety of factors that vary with equipment type, operating pressure, and materials of construction.
For additions to existing facilities, the total module cost should be used but for totally new projects grass roots costs are appropriate.
Once the information has been entered, the equipment list will be automatically updated with the correct equipment number and cost info. If the Utilities tab is pressed the CTM and CGR are given. Note that under the utilities column the word unspecified is written – this will be covered in the cost of manufacturing lecture.
Additional equipment are added until all the major equipment are accounted for.