Page 192 - Analysis, Synthesis and Design of Chemical Processes, Third Edition

Chemical Engineering Plant Cost Index 358 500

a. Marshal and Swift: Cost = ($25,000)(1302/943) = $34,518
Chemical Engineering:
Cost = ($25,000)(500/358) = $34,916

b. Average Difference: (($34,518 – 34,916)/(($34,518 + 34,916)/2)(100) = –1.1%

7.3 Estimating the Total Capital Cost of a Plant

The capital cost for a chemical plant must take into consideration many costs other than the purchased cost
of the equipment. As an analogy, consider the costs associated with building a new home.

The purchased cost of all the materials that are needed to build a home does not
represent the cost of the home. The final cost reflects the cost of property, the cost for
delivering materials, the cost of construction, the cost of a driveway, the cost for
hooking up utilities, and so on.

Table 7.6 presents a summary of the costs that must be considered in the evaluation of the total capital
cost of a chemical plant.

Talbe 7.6 Factors Affecting the Costs Associated with Evaluation of Capital Cost of Chemical
Plants (from References [2] and [5])