Page 69 - Chemical process engineering design and economics

54 Chapter 2

Table 2.7 Direct-Cost Factors for Process Equipment Installation - Aver-
age Factor Method _______

Cost Factor, Fraction of Delivered Equipment Cost
Solids Process Solids-Fluid Process Fluid Process
Primarily Primarily Primarily Primarily Primarily Primarily
Carbon Alloy Carbon Alloy Carbon Alloy
Steel Equipment Steel Equipment Steel Equipment
Equipment Equipment Equipment
Equipment
Installation
Equipment 0.15 0.10 0.20 0.12 0.25 0.15
Placing
Painting 0.06 0.03 0.07 0.03 0.06 0.03
Foundations 0.20 0.12 0.18 0.12 0.15 0.10
Insulation 0.05 0.03 0.10 0.06 0.20 0.15
Structural Steel 0.12 0.07 0.15 0.10 0.20 0.10
Instrumentation 0.12 0.10 0.20 0.15 0.25 0.20
Piping 0.25 0.15 0.45 0.40 0.60 0.55
Electrical 0.20 0.15 0.15 0.12 0.15 0.12
Total = foe 1.15 0.75 1.50 1.10 1.86 1.40

Source: Ref. 32.

Individual Factor Method

If we need the installation cost of a piece-of-equipment or a few pieces-of-
equipment, then we have to use the individual factor method that Hand [28] first
proposed. We can also use this method for large plants containing many pieces of
equipment as well. Also, this method is more accurate than the average factor
method. In this case, the capital cost for installed equipment,

CD = S; fi i C P (2.4)
where the subscript i refers to a piece-of-equipment. The installation factor for a
piece-of-equipment, f\;, contains the same cost items for installing equipment as
those listed for the average factor method in Tables 2.6 and 2.7. For the individual
factor method, the basis for the installation factor is the Free-On-Board (FOB) cost
of the equipment, i.e., the cost at the manufacturer's doorstep instead of the deliv-
ered equipment cost.

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