1. CAPITAL COST ESTIMATES INSTALLED EQUIPMENT COSTS

2. INSTALLED COST ESTIMATE METHODS  FOR TYPE 1 OR 2 FEASIBILITY ESTIMATE  USE PURCHASED EQUIPMENT COSTS AND FACTORS  SIMPLEST IS SIMPLY 4.0 FACTOR  FOR PLANT TYPE ADJUSTMENT SEE TABLE 6- 10. RANGES ARE FROM 4.7 -6.0.7  USE M&S INDICES FOR INFLATION COST SCALE- UP  FOR INDIVIDUAL EQUIPMENT, USE FACTORS FROM CHEMICAL ENGINEERING PLANT COST INDEX (ALSO IN CHEMICAL ENGINEERING MAGAZINE)

3. SPECIFIC PLANTS  THE TEXT HAS SOME PLANT DATA IN TABLE 6-11  DATA IS SCALED UP FROM 1970 DATA SO IS IN QUESTION  MOST ESTIMATES ARE BASED ON EQUIPMENT COSTS  THAT EQUIPMENT COSTS CARRY AN ACCURACY LIMIT AS WELL  - +25% IS TYPICAL FOR PEP PROJECTS AT SRI

4. ESTIMATE EXAMPLE  EQUIPMENT FOR PROCESS MODIFICATION

5. ESTIMATE EXAMPLE  RELATIVE MATERIALS COSTS

6. FOR TYPE 3 FUNDING ESTIMATE  USE PROJECT DATA - DESIGN CRITERIA, DESIGN BASES, INITIAL SITE DATA  NEED STRUCTURAL DATA  NEED SHOP VS. FIELD FABRICATION DATA  NEED LABOR VALUES  USE VENDOR QUOTES FOR EQUIPMENT PLUS SHIPPING TO GET DELIVERED COSTS

7. FOR CONTROL BUDGET  NEED FINAL DRAWINGS  NEED QUOTATIONS FROM CONSTRUCTION SUBCONTRACTORS WHERE AVAILABLE  NEED SPECIFIC COSTS FOR EQUIPMENT, MATERIALS, LABOR AND ERECTION EQUIPMENT  NEED DEFINITION OF SHOP VS. FIELD RESOURCES

8. CAPITAL ESTIMATE COMPONENTS  DIRECT FIXED CAPITAL  INCLUDES COMPONENTS AS PER TABLE 6-3  DEFINITION SUMMARY (TABLE 6-9) TOTAL PLANT CAPITAL (TPC) = TOTAL PLANT DIRECT CAPITAL (TPDC) + TOTAL PLANT INDIRECT COSTS (TPIC) + WORKING CAPITAL (WC) TPC = TPDC + TPIC+ WC

9. FEASIBILITY ESTIMATE  DEVELOP PEC AND USE PEC FACTORS METHOD  TYPICAL FACTORS FOR ESTIMATE COMPONENTS ARE IN TABLE 6-3 & 6-17

10. INSTALLATION COSTS  DEPENDS ON AMOUNT OF PIPING VS. SOLIDS HANDLING (NON-SLURRY)  INCLUDES FOUNDATION AND STRUCTURAL BUT NO INTERCONNECTING SYSTEMS  IF ESTIMATED ON AN EQUIPMENT ITEM BASIS, SEE TABLE 6-5 FOR TYPICAL VALUES  PROCESS PIPING FACTOR  RANGES OVER PLANT TYPE FROM SOLIDS ONLY TO FLUIDS ONLY  SEE TABLE 6-6 FOR FACTORS

11. INSTRUMENTATION FACTORS  RANGE FROM MANUAL TO TOTAL COMPUTER CONTROL, 10% - 50% OF PEC  MOST PLANTS USE THE 35% LEVEL WITH DISTRIBUTED CONTROL SYSTEMS  BATCH OR INTERMITTENT OPERATION THROUGH PROGRAMMABLE CONTROLLERS  FOR A DISCUSSION OF THE USE OF WIRELESS INSTRUMENTATION : http://www.automationworld.com/view-1936

12. OTHER FACTORS  INSULATION FACTORS  USED FOR CONTROL OF HEAT LOSS, HEAT GAIN AND PERSONNEL PROTECTION  TOTALS RUN AROUND 8% OF PEC  ELECTRICAL FACILITIES FACTOR  DOES NOT INCLUDE CONTROL, BUT DOES INCLUDE POWER SUPPLIES.  ASSUMES POWER FROM SOURCE OUTSIDE OF BATTERY LIMITS  AMOUNTS TO ABOUT 15% OF PEC  SEE COMPONENTS IN TABLE 6-8

13. OTHER FACTORS  BUILDINGS FACTOR  DEPENDS ON CRITERIA FOR JOB FOR JOB  FOR EXISTING PLANTS,  TYPICAL VALUES ARE SHOWN IN TABLE 6-9  YARD IMPROVEMENT  INCLUDES ALL THE CIVIL ASPECTS OF THE PROJECT  INITIAL GRADING  UNDERGROUND UTILITY SYSTEMS  TRANSPORTATION COMPONENTS  AND FINISH OUTSIDE OF PROCESS AREAS

14. OTHER DIRECT COSTS  AUXILIARY SYSTEMS  THE UTILITY COMPONENTS FROM OUTSIDE THE BATTERY LIMITS REQUIRED FOR OPERATION  MAY INCLUDE UPGRADE OF EXISTING UNITS.

15. INDIRECT COMPONENT FACTORS  ENGINEERING COSTS  INCLUDE COSTS FOR DESIGN THROUGHOUT THE PROJECT. TEND TO INCLUDE ASPECTS OF CONSTRUCTION.  VALUES ARE SHOWN AS TOTAL IN TABLE 6-9  CONSTRUCTION  INCLUDES ADMINISTRATION OF ALL ASPECTS OF PROJECT  DEPENDS ON MANY FACTORS AS INDICATED IN TABLE 6-9

16. INDIRECT COMPONENT FACTORS  CONTRACTORS FEE  PROFIT AND OVERHEAD COMPONENT FOR ENGINEERING AND CONSTRUCTION FIRMS  RANGES AROUND 4-6% OF TOTAL FIXED CAPITAL INVESTMENT  CONTINGENCY - ANTICIPATED COSTS FOR CHANGES THAT WILL OCCUR DURING THE PROJECT  FOR THIS PROJECT USE THE VALUES IN TABLE 6.17 AND EXPLAIN BASIS OF CHOICE

17. METHOD D - LANG FACTORS  BASED ON PEC (4.7x TO 6.0x PEC)  BASED ON CORRELATION FOR A LARGE NUMBER OF PROJECTS  OFTEN AS ACCURATE AS DETAILED FACTOR METHOD  TYPICAL LANG FACTORS ARE SHOWN IN TABLE 6-10