Process alternatives and flowsheeting: 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:'''''Cost of Plant Construction = (Cost of Plant in Gulf Coast) X (Location Factor'')
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>'''''Cost of Plant Construction = (Cost of Plant in Gulf Coast) X (Location Factor'')
'''
'''</math>


==Estimating Offsite Capital Costs==
==Estimating Offsite Capital Costs==

Revision as of 00:26, 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.