Estimation of capital: Difference between revisions
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* Exchange Rates | * Exchange Rates | ||
It is common to convert cost of construction to locations other than the U.S. Gulf Coast by applying a location factor in which: <math>\mbox{Cost of Plant Construction} = (\mbox{Cost of Plant in Gulf Coast}) X (\mbox{Location Factor})</math> | It is common to convert cost of construction to locations other than the U.S. Gulf Coast by applying a location factor in which: <math>\mbox{Cost of Plant Construction} = (\mbox{Cost of Plant in Gulf Coast}) \mbox{X} (\mbox{Location Factor})</math> | ||
==Estimating Offsite Capital Costs== | ==Estimating Offsite Capital Costs== | ||
Revision as of 05:29, 10 February 2014
Authors: Alex Chandel, Eric Jiang, Minwook Kim, Todor Kukushliev, William Lassman (ChE 352 in Winter 2014)
Steward: David Chen, Fengqi You
Date Presented: 2/9/2014
Introduction
Components of Capital Cost
Accuracy and purpose of Capital Cost Estimates
Order of Magnitude Estimates
Estimating Purchased Equipment Costs
Estimating Installed Costs: The Factorial Method
Cost Escalation
Location Factors
Because of the abundance of chemical engineering plants in the U.S Gulf Coast, it is often the standard for plant and equipment cost. Cost of plant construction will differ based on:
- Construction Infrastructure
- Labor costs
- Transportation costs
- Tax Rates
- Exchange Rates
It is common to convert cost of construction to locations other than the U.S. Gulf Coast by applying a location factor in which:
Estimating Offsite Capital Costs
Computer Tools for Cost Estimating
Validity of Cost Estimates
References
1. Gavin Towler and Ray Sinnott, Chapter 7 – Capital Cost Estimating, Chemical Engineering Design, 2nd Ed., edited by Gavin Towler and Ray Sinnott, Butterworth-Heinemann, Boston, 2013, Pages 307–354, ISBN 9780080966595, http://www.sciencedirect.com/science/article/pii/B9780080966595000079.