Page 66 - Chemical process engineering design and economics

Production and Capital Cost Estimation 51

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Gas Air Refrigeration Electricity

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Storage, Receiving >nd Shipping ProtMj Are* (Butter; Unit)

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Figure 2.5 The process area and auxiliary facilities of a chemical plant.

plant design involves all the common branches of engineering - mechanical, civil
and electrical engineering. Engineering and construction costs are indirect costs
and are part of the depreciable capital cost.
Next, two methods for calculating the costs listed in Figure 2.4 are dis-
cussed. One method is the average factor method, and the other method is the in-
dividual factor method. The accuracy of a cost estimate should be considered. Ta-
ble 2.5 contains the accuracy of various methods and their cost. Although the costs
are out-of-date, they do show that as a process becomes well-defined the estimates
become more costly. In the early stages, when a project is ill-defined, an accurate
cost estimate is not warranted. The factor methods are study estimates and are less
accurate than the detailed estimate.

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