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    5 - Equipment Cost Estimate

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    Jose Yebra Deauna
    1. This document provides steps for estimating equipment costs, including obtaining bids, adjusting costs based on equipment size/capacity, converting costs to installed costs, adjusting for material, and updating costs using a cost index. 2. Typical exponents used to adjust costs based on equipment size are provided, as well as factors for converting costs and adjusting for material. 3. A Chemical Engineering Plant Cost Index is presented to update cost data based on the date.

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    5 - Equipment Cost Estimate

    Uploaded by

    Jose Yebra Deauna
    194 views8 pages
    1. This document provides steps for estimating equipment costs, including obtaining bids, adjusting costs based on equipment size/capacity, converting costs to installed costs, adjusting for material, and updating costs using a cost index. 2. Typical exponents used to adjust costs based on equipment size are provided, as well as factors for converting costs and adjusting for material. 3. A Chemical Engineering Plant Cost Index is presented to update cost data based on the date.

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    1. This document provides steps for estimating equipment costs, including obtaining bids, adjusting costs based on equipment size/capacity, converting costs to installed costs, adjusting for material, and updating costs using a cost index. 2. Typical exponents used to adjust costs based on equipment size are provided, as well as factors for converting costs and adjusting for material. 3. A Chemical Engineering Plant Cost Index is presented to update cost data based on the date.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    194 views8 pages

    5 - Equipment Cost Estimate

    Uploaded by

    Jose Yebra Deauna
    1. This document provides steps for estimating equipment costs, including obtaining bids, adjusting costs based on equipment size/capacity, converting costs to installed costs, adjusting for material, and updating costs using a cost index. 2. Typical exponents used to adjust costs based on equipment size are provided, as well as factors for converting costs and adjusting for material. 3. A Chemical Engineering Plant Cost Index is presented to update cost data based on the date.

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    © All Rights Reserved
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    The document outlines a process for estimating equipment costs including obtaining costs, adjusting for capacity, converting to installed costs, and updating to present value using cost indexes.

    The steps outlined are to obtain firm bids or use past costs, adjust for capacity, convert to installed costs using provided factors, convert FOB to delivered costs, adjust for material, and update using cost indexes.

    The cost of equipment can be adjusted based on capacity using the equation C2 = C1(q1/q2)n where n is typically 0.6 in the absence of other information.

    ESTIMATING EQUIPMENT COSTS

    1 a Obtain firm bids from fabricators or suppliers (most accurate method); or


    b Obtain cost values from the file of past purchase orders; proceed to step 2.
    c Use equipment cost correlations. To estimate the purchase prices of process equipment as of 1st quarter 2003,
    see Chapter 21 of Chemical Process Equipment, 2nd edition (book in PED Library). Then proceed to steps 4 and 6.

    2 Adjust the cost data based on equipment capacity.


    If the cost of a piece of equipment of size or capacity q1 is C1, then the cost of a similar piece of equipment of size or ca
    can be calculated from

    C2 = C1(q1/q2)n

    where the value of the exponent n depends on the type of equipment.

    The following table gives typical values of the exponent n for many types of equipment. In the absence of other informa
    Additional notes: FOB = free on board; DEL = delivered; INST = installed

    3 Convert FOB costs into delivered (DEL) costs by using the "Landed Cost Calculator".

    4 Convert purchased costs into installed (INST) costs using the factors in Table 21.3 (page 728) of Chemical Process Equ
    (book in PED Library).

    5 Adjust the equipment cost if the material of construction is not carbon steel. Use the following factors:
    (See also factors for material of construction in the sheet labeled "Cost Correlations".)

    6 If the cost data is applicable at a past date, update it using the Chemical Engineering Plant Cost Index.
    Use the following equation:

    Present cost = (original cost) × (present cost index) / (cost index at time original cost was obtained)

    The cost indexes are shown below.

    Chemical Engineering Plant Cost Index (CEPCI)

    600

    2008 Projected

    2007 Projected
    500 Mar 2007 Preliminary

    444.2
    400
    394.1 394.3 395.6 402.0
    386.5 389.5 390.6
    381.1 381.7
    368.1
    CEPCI

    300

    200

    100
    CEPCI
    300

    200

    100

    0
    1993 1995 1997 1999 2001 2003

    Year
    s of 1st quarter 2003,
    proceed to steps 4 and 6.

    ce of equipment of size or capacity q2

    the absence of other information, use the exponent 0.6.


    28) of Chemical Process Equipment, 2nd edition
    t Cost Index.

    l cost was obtained)

    ost Index (CEPCI)

    571
    2008 Projected
    538
    2007 Projected
    517.7
    Mar 2007 Preliminary
    499.6
    468.2
    444.2

    395.6 402.0
    2003 2005 2007 2009

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