Page 216 - Analysis, Synthesis and Design of Chemical Processes, Third Edition

should give the same results as hand calculations using these charts.

When the data for equipment are entered, a list of the costs on the first worksheet is updated. The use of
the spreadsheet is explained in the CAPCOST.avi help files contained on the CD, and the reader is
encouraged to view the file prior to using the software. You are strongly advised to verify the results of
Example E7.14 for yourself prior to using the program to solve problems in the back of this chapter.

7.4 Summary

In this chapter, the different types of capital cost estimating techniques that are available were reviewed.
The accuracy of the different estimates was shown to increase significantly with the time involved in
completion and the amount of data required. The information required to make an equipment module
estimate based on data from the major process equipment was also covered. The effects of operating
pressure and materials of construction on the bare module cost of equipment were reviewed. Several
examples were given to show how the installed cost of equipment is significantly greater than the
purchased cost and how the installed cost increases with increased pressure and materials of
construction. The use of cost indices to adjust for the effects of inflation on equipment costs was

considered, and the Chemical Engineering Plant Cost Index (CEPCI) was adopted for all inflation
adjustments. The concepts of grass roots and total module costs were introduced in order to make
estimates of the total capital required to build a brand new plant or make an expansion to an existing
facility. To ease the calculation of the various costs, a computer program for cost estimation was
introduced. This chapter contains the basic approach to estimating capital costs for new chemical plants
and expansions to existing plants, and mastery of this material is assumed in the remaining chapters.

References

1. Pikulik, A., and H. E. Diaz, “Cost Estimating for Major Process Equipment,” Chem. Eng.
84, no. 21 (1977): 106.

2. Peters, M. S., and K. D. Timmerhaus, Plant Design and Economics for Chemical
Engineers, 4th ed. (New York: McGraw-Hill, 1991).

3. Perry, R. H., D. W. Green, and J. O. Maloney, eds., Chemical Engineers Handbook, 7th
ed. (New York: McGraw-Hill, 1997).

4. Cost Estimate Classification System, AACE International Recommended Practice No.
17R-97, 1997.

5. Ulrich, G. D., A Guide to Chemical Engineering Process Design and Economics (New
York: John Wiley and Sons, 1984).

6. Lang, H. J., “Engineering Approach to Preliminary Cost Estimates,” Chem. Eng. 54, no. 9
(1947): 130.