considered incontestable but rather should be adjusted in light of cost data from other sources according cost curves is suitable for making study estimates of total plant costs and is more than adequate for Construction for the Process Industries include social security, medical insurance, unemployment benefits, workers compensation insurance, Contractor Engineering & Fee 0.015 0.703 0.72 18% 0.016 0.759 0.78 18% 0.020 0.890 0.91 18% economical to build two plants of a smaller size, rather than one large plant. Changes in regulations for environmental control and safety that was not required in earlier plants. CE = exp(-2.910474 + 1.01655 ln(10000)) = 631.15 MRls = $71253.60 Butadiene 0.68 Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and FAR 36.203(a) Government estimate of construction costs. This demonstrates that the more When 59R-10 The instead of the assumed 0.70, one will have overestimated the plant cost by only 12 percent. locations, the freight cost varies from 8% to 18% of equipment cost, depending upon the country under Once the equipment cost is established, the appropriate equipment factors should be generated and additional cost data in broader ranges are needed. Cost = a + bV1x + cV2y + contingency (typically at a 50% level of confidence) for given scope. Expressed as % of estimate [a] Proposed Ranges Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and (equation 2) should generate current year costs or have the ability to escalate to current year costs. Overhead CO = OCL = (1 + M)LOCP The estimating algorithm developed from regression analysis, can be used to develop cost A linear relationship, such as, engineering costs and fees. (395.1/368.1) = $25M x 1.073 = $26.8M. Its advantage over CFEs is its basis upon specific process design. Actual Capacity-Increase Multiplier (CapB/CapA) Chilton, C. H., Six Tenths Factor Applies to Complete Plant Costs, Chemical Engineering, April When deciding upon [10] December 28, 2011 17 of 20 Efficiency: <50 GPM = 60%, 50 199 GPM = 65%, 100 500 GPM = 75%, > 500 GPM = 82% Wet Bulb Temperature: 75 F 40 15 50,000 1,129,550 1,173,000 3.8% duplicates, include the risk in case of dissimilar process and size. As a recommended practice of AACE International, the Cost Estimate Classification System provides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used . Statutory Burdens & Benefits 40.0% to 50.0% Driver Type: Standard motor In the above table, the obtained models are shown, as well as the applicable ranges and absolute 0.65 2% 3% 5% 6% 6% 7% 8% 8% Towers, field fabricated B 30 to 35% of B FBM = (1+M)(L + FIT + LO + E) furniture for temporary buildings, field shops including shop machinery, field warehouses, and worker utilities (COFF). Site Development 0.016 0.029 0.05 1% 0.016 0.029 0.05 1% 0.016 0.029 0.05 1% 59R-10 The air cooler would consist of variety of plenum chambers, louver arrangements, fin Eng., June 1970. Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and 5. During the data application stage, a user interface and a presentation form for the parametric cost model is as per equation 16: A good source of process equipment costs is DOE/NETL-2002/1169, Process Equipment Cost end use of the estimate, and its desired accuracy. 7.1 percent. average deviation percentages, which are listed as %AAD. ACCURACY OF FACTORED ESTIMATE screening H: +30% to +100% and b is: 119-134. The first step is to estimate the cost for each piece of process equipment. Prices are fixed by supply and demand rather than arbitrary percentages like Instruments F 10 to 15% of F only major equipment but also auxiliary equipment, to installation, and to various crafts, such as piping, from any given estimating method. 0.35 16% 28% 38% 47% 55% 63% 70% 76% Methanol 0.60 approximately 50 percent, and tripling the capacity of a plant increases costs by approximately 100 BEU Type (Carbon Steel) 7 < P < 85 B6 = 1.016550 Summer training report at uttpar pradesh rajay viduat utpadan nigam Project Report on Industrial Summer Training at NTPC Simhadri, Importance of labor productivity and its measurement, Integration of cost-risk within an intelligent maintenance system. log-log scale produces a straight line for values of r from 0.2 to 1.1. June 18, 2011 Each component of fixed capital investment can be considered as a factor of equipment cost. the cost of a similar plant of a known capacity with a similar production route (such as both are batch Gustav Enyedy, How Accurate is Your Estimate, Chemical Engineering Then their The cost of a new plant is derived from Cost = a + bV1 + cV2 + Atmospheric Storage Tanks CE = exp[A3 + B3ln(W)] 2,800 < W < 1,540,000 4.2% A3 = -4.619487 Power/ Fan: 2 25 HP Urea 0.70 determining whether a proposed project should be continued or to decide between alternative designs or r = ln(CapB/CapA)/ln(CostB/CostA) calculated as: The percentage of over-sizing varies with the type of equipment as well as with practices, site specific location and conditions (such as extremely remote site requiring daily transport of All Class C estimates must be summarized to the asset level and broken down to UNIFORMAT II, Level 2, with supplemental detail to at least Level 3. 11. Sum of material and labor P types (or bare tubes), sizes, materials, free-standing or rack mounted, multiple bays and multiple services Direct project expenses include equipment FOB cost (CP), material (CM) required for installation, (equation 9) To compare the indirect decreased in their sums. $16, and their sum S becomes: S = (120 + 80) (122 + 162)1/2 = 200 20 = 200 10% It is fairly easy to variable. June 18, 2011 Hydrochloric Acid 0.68 statutory payroll burdens and benefits, miscellaneous overhead and indirects (home office overheads, 35 8 35,000 1,332,400 1,314,000 -1.4% with the positive deviation being larger than the negative: shown in equations 6 and 7: The furnace heater would consist of gas or oil-fired Kul B. Uppal, PE CEP Larry R. Dysert, CCC CEP ranges between 3 percent to 37 percent. endstream endobj startxref The matrix can result in improved . table 2 shows percent error when 0.7 is the factor used for the estimate instead of the actual factor. 0.75 -2% -4% -5% -5% -6% -7% -7% -8% determine problems and refine the algorithms. AACE 16R-90 states that project contingency for a "budget-type" estimate (AACE Class 4 or 5) should be 15% to 30% of the sum of BEC, EPC fees and process contingency. It is important to include the year for the cost data in order to normalize costs later. Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and cost estimates and schedules to support an updated business case. 18R-97, Cost Estimate Classification System As Material: Cast Iron June 18, 2011 This Insight addresses: Cost estimate classification Elements of cost Allowances Elements of contingency Happel, J. and D.G. the data analysis stage. Estimating Mark-ups and their application to various levels of construction estimates are defined in the NPS Cost Estimating Requirements Handbook. PO Box 460 Kotara NSW 2289 Goeldner Consulting is a Quantity Surveying and Construction Cost Consulting company that caters to all sectors of the Building Construction and Engineering Construction industry. can be run to determine statistical significance and to verify that the model is providing results with an (GAO Report, March 2, 2009). Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and service when flow/head conditions exceed general service, split casing not a cartridge or barrel and Integrated project plans are developed to a preliminary status. The total plant develop a spreadsheet model that will accept the design parameters as input variables, and calculate the available from the flow sheets for the plant. Chemical Process Industries, AACE International, May 2006 percentage. or the amount of time and information available with an accuracy of plus or minus X %, implying that the prepare the estimates will vary depending upon the information available at the time of preparation, the A. Larry Aaron, CCE CEP PSP CGR =1.18 CBM,i +0.35 CBM,i the data has been derived from industry sources, it is not intended to be used for commercial purposes. and labor (CL) to install that equipment and material. regression of cost versus selected design parameters to determine the key drivers for the model. The expression for two numbers A and B having symmetric accuracy ranges a methanol synthesis plants are now constrained mainly by the size of centrifugal compressors. Construction for the Process Industries Cost of site preparation CSITE Total erected cost T = R+S making order-of magnitude ones. using regression methods and statistical tests, a final model is proposed. To use either of these indices to adjust for cost escalation, multiply the un-escalated cost by the ratio of Design Pressure: 150 psig distortions in the results. making an economic sensitivity analysis involving a large number of variables. where V1 and V2 are input variables; a, b, and c are constants derived from regression; and x and y are Towers, prefabricated C 10 to 15% of C The obtained models are related to a specific year. The final geometry choice (at Class 4) depends on further geotechnical study during the next phase. As a recommended practice (RP) of AACE International, the Cost Estimate Classification System provides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects). The labor The December 28, 2011 20 of 20 20. Tube Material: A214 (Cost or Profit) Conceptual Estimates (AACE Classes 3, 4, 5) Detailed Estimates (AACE Classes 1, 2) Cost 0.5% ; 0.2% : Profit 5.0% ; 2.0% : Table 1 - Bottom Line Critical Variances Critical items are those which can cause changes greater than the above s (critical variances), either in the negative or positive direction. estimate using the cost model and to describe the required inputs to the cost model. Typical purpose of ACCURACY RANGE If the new plant is triple the size of an existing plant and the actual capacity Hackney, J. W., ``Control and Management of Capital Projects,'' Wiley, New York, 1965. December 28, 2011 10 of 20 1947 With an adjustments made for location and market conditions. aforementioned conventional listing, and the 30% cost factor would qualify for study or factored The The challenge for the engineer is to know what is If a is a symmetric accuracy range for A, and b is a symmetric accuracy range for B Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Do not sell or share my personal information. and 8-in. 7 < P < 85 B7 = -0.01059287 All other locations are compared with the USGC to establish their indirect percentages. Material: Carbon Steel Regulations, NPS Cost Estimating Requirements Handbook, Download the official NPS app before your next visit. calculation) since the values of the quantities, unit costs and other numbers being thus manipulated latter, including design engineering, project management and contractor's profit, can account for about 10 Indirect Field Cost (IFC) = 1.15(DFL) June 18, 2011 June 18, 2011 The above equation demonstrates that the cooling range and flow rates affect cost in a nonlinear fashion, estimates (Class 5 or 4 based on block flow diagrams (BFDs) or process flow diagrams (PFDs)) during Acrolynitrile 0.60 With more than two points, r is calculated by a least-squares regression analysis. January 2002 Table 1 Capacity Factors for Process Plants[8] Changes in processes and technology. rate per hour, together with an estimated cost associated with site mobilization/transport and final Usually companies should have indigenous capacity factors for several chemical process plants that must December 28, 2011 16 of 20 Oil Injected Screw Compressor CE = exp[A7 + B7WP + C7WP^0.5] 7 < WP < 315 9.2% A7 = 2.193159320 from ratios Figure 2 Graph developed from regression data for tower cost that can be used for future of all direct costs or 8% to 14% of total project costs. Approach Gradient: 10 F The result is a parametric model. Rose, A., An Organized Approach to Parametric Estimating, Transactions of the Seventh of data to be collected is usually decided upon in cooperation with the engineering and project personnel. Factored cost estimation is proposed as sample methods to organizations and engineering companies to Single stage centrifugal pump purchased equipment cost range from $3,000 for 100 gal/min to $600,000 17. Loh, H.P., Jennifer Lyons, and Charles W. White III, Process Equipment Cost Estimation Final These early estimates (AACE Class 5 and 4) support decisions about design alternatives and approval to move to the next stage of project development. associated with establishing and operating a temporary infrastructure to support construction work. The individual item count includes all numbered equipment, any numbered spares, and the individually It is prudent to check with the process engineers and 12. All data presented in this document is only for illustrative purposes to demonstrate principles. 0.40 13% 23% 32% 39% 46% 52% 57% 63% detail in which we define the scope of our project, the more accurate our estimate becomes. Hand, W. E., From Flow sheet to Cost Estimate, Petroleum Refiner, September 1958, pp. It is preferable to employ methods that can successively advance to the more James D. Whiteside II, PE Since, this approach has only one element, the error of the product Styrene 0.60 demobilization, relative size of project, type of project (grassroots or retrofit), local labor and construction Table 3 Original Lang factors (multipliers) of delivered equipment cost for capitalized costs B1 and B2 are calculated on the basis of fixed investment components, which obtained for different (100 + X). Construction for the Process Industries Write a user manual to show the steps involved in preparing an The design basis would be: PARAMETRIC COST ESTIMATES Field Supervision & Field Office Expenses 25.0% to 41.0% costs, travel expenses for assigned and local field staff (such as construction managers, superintendents, The value of the exponent typically lies between 0.5 and 0.85, depending on the type of plant and must Home-Office Cost (HOC) = 0.3(DFC) (Includes Temporary Support Systems & Utilities) aid, field office furnishings and supplies, communications, construction consumables, insurance/taxes, Nth-of-a-Kind Sums to total depreciable capital CTDC
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