Page 193 - Plant design and economics for chemical engineers

COST ESTIMATION 167
j
TABLE 4
of fixed-capital investment values for direct and indirect
ltipurpose plants or large additions to existing facilities

Component Range, %
J Direct costs
Purchased equipmen 15-40
Purchasedequipmen installation 6-14
Instrumentation an controls (installed) 2-8
d
Piping (installed) 3-20
Electrical (installed 2-10
Buildings (includin $ services) , !j., 1 3-18
2-5
8-20
1-2
Indirect costs
Engineering and su rvision 4-21
Construction expense 4-16
Contractor’s fee 2-6
Contingency 5-15
Total fixed-capital investment

Table 4 summarizes this typical variation in component costs as percent-
ages of fixed-capital investment for multiprocess grass-roots plants or large
battery-limit additions. A grass-roots plant is defined as a complete plant erected
on a new site. Investment includes all costs of land, site development, battery-
limit facilities, and auxiliary facilities. A geographical boundary defining the
coverage of a specific project is a battery limit. Usually this encompasses the
manufacturing area of a proposed plant or addition, including all process
equipment but excluding provision of storage, utilities, administrative buildings,
or auxiliary facilities unless so specified. Normally this excludes site preparation
and therefore, may be applied to the extension of an existing plant.

Example 1 Estimation of fixed-capital investment using ranges of process-plant
component costs. Make a study estimate of the fixed-capital investment for a
process plant if the purchased-equipment cost is $100,000. Use the ranges of
process-plant component cost outlined in Table 4 for a process plant handling both
solids and fluids with a high degree of automatic controls and essentially outdoor
operation.