By D.E. Garrett
Least, the writer needs to thank his always valuable spouse Maggie and his secretary Pat Weimer; the previous for her endurance, encouragement, and for performing as a sounding-board, and the latter who toiled perpetually, cheerfully, and such a lot correctly at the book's coaching. CONTENTS Preface / iii 1. advent / 1 usually Used monetary stories / 2 easy monetary matters / three Priorities / three difficulties / 6 Appendixes / 6 References / 6 2. gear price ESTIMATING / eight brands' Quotations / eight Estimating Charts / 10 measurement Factoring Exponents / eleven Inflation price Indexes / thirteen install issue / sixteen Module issue / 18 Estimating Accuracy / 19 Estimating instance / 19 References / 21 three. PLANT fee ESTIMATES / 22 Accuracy and prices of Estimates / 22 expense Overruns / 25 Plant expense Estimating components / 26 apparatus install / 28 Instrumentation / 30 v vi CONTENTS Piping / 30 Insulation / 30 electric / 30 constructions / 32 Environmental keep an eye on / 32 portray, hearth defense, defense Miscellaneous / 32 backyard advancements / 32 Utilities / 32 Land / 33 development and Engineering fee, Contractor's price, Contingency / 33 overall Multiplier / 34 whole Plant Estimating Charts / 34 expense in step with Ton of Product / 35 Capital Ratio (Turnover Ratio) / 35 Factoring Exponents / 37 Plant alterations / 38 different elements of overall Capital funding / 38 Off-Site amenities / 38 Distribution amenities / 39 examine and improvement, Engineering, Licensing / forty operating Capital / forty
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Some direct wastewater treatment costs and air pollution control facilities are listed in Appendix 1. Painting, Fire Protection, Safety, Miscellaneous This is a small factor, but an important one to the appearance and safety of the plant. It might average 2-10% ofthe equipment cost, but with increasing insurance costs and public scrutiny it is increasing. Yard Improvements This item includes grading, drainage, roads, rail facilities, parking, fences, landscaping, concrete slabs and walkways, sumps, lighting, as well as all other required nonprocess components of the site or yard in the plant area.
This has stayed constant at about 10-15 % of the equipment cost. Some direct electrical installation costs are listed in Appendix 1. § o 6 lI. ~ 4 u ~ E 2 2 eo o 5 10 15 20 25 30 35 40 45 50 Total plant cost. m ill ions of dol lars 8u 50 C ~ 40 0. 45 'Fraction change in total cost. Source: Liptak 1970. Excerpted by special permission from Chemical Engineering, Sept. 1970. , New York. Figure 3-2. Instrumentation costs. 31 32 CHEMICAL ENGINEERING ECONOMICS Buildings A certain number of buildings are required for any plant, such as control rooms; offices; shops; laboratory; employee lunch, change rooms, and lavatories; and so on.
Chemical Engineering (Sept. 17):121-124. 1986. Cost estimating methods. American Institute of Chemical Engineers Modular Instruction Series, Plant Design and Cost Estimating, Vol. 1:12-21. 4 MANUFACTURING COST DETAILED ESTIMATES Of equal importance to the capital cost estimate in an economic evaluation is the operating or manufacturing cost. It predicts the expense of producing the desired product, and thus, together with the capital cost and sales realization, allows the profitability and potential attractiveness of an operation to be evaluated.
Chemical Engineering Economics by D.E. Garrett