Page 194 - Plant design and economics for chemical engineers

168 PLANT DESIGN AND ECONOMICS FOR CHEMICAL ENGINEERS

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Asumed % Ratioed %
Components of total Cost of total
-- - -
Purchased equipment 25 $100,000 23.0
Purchased-equipment installation 9 36,000 8 . 3
Instrumentation (installed) 7 28,000 6 . 4
Piping (installed) 8 32., 000 7 . 3
Electrical (installed) 5 20,000 4 . 6
Buildings (including services) 5 20,000 4 . 6
Yard improvements 2 8,000 1 . 8
Service facilities (installed) 15 60,000 13.8
Land 1 4,000 0 . 9
Engineering and supervision 10 40,000 9 . 2
ConstruCtion expense 12 48,000 11.0
Contractor’s fee 2 8,000 1 . 8
Contingency 8 32,000 7 . 3
$436,000 100.0
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Range will vary from $371,000 to $501,000 for norm .a1 conditions; -7 If! conomy i s
inflationary, it may vary from $436,000-$566,000. “\

Purchased Equipment

The cost of purchased equipment is the basis of several predesign methods for
estimating capital investment. Sources of equipment prices, methods of adjust-
ing equipment prices for capacity, and methods of estimating auxiliary process
equipment are therefore essential to the estimator in making reliable cost
estimates.
The various types of equipment can often be divided conveniently into (1)
processing equipment, (2) raw-materials handling and storage equipment, and
(3) finished-products handling and storage equipment. The cost of auxiliary
equipment and materials, such as insulation and ducts, should also be included.
The most accurate method for determining process equipment costs is to
obtain firm bids from fabricators or suppliers. Often, fabricators can supply
quick estimates which will be very close to the bid price but will not involve too
much time. Second best in reliability are cost values from the file of past
purchase orders. When used for pricing new equipment, purchase-order prices
must be corrected to the current cost index. Limited information on process-
equipment costs has also been published in various engineering journals. Costs,
based on January 1, 1990 prices, for a large number of different types and
capacities of equipment are presented in Chaps. 14 through 16. A convenient
reference to these various cost figures is given in the Table of Contents and in
the subject index.