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Assignment #12: Detailed Estimate

Based on a purchased equipment cost of $100,000 for a process plant handling solids and fluids with automatic controls and outdoor operation: 1) The total fixed capital investment is estimated to be between $329,566.86 and $612,052.73. 2) Direct and indirect cost components were calculated based on their typical percentage ranges of the total fixed capital investment. 3) The estimated fixed capital investment was used to calculate the range while accounting for a 30% accuracy variance.

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98 views1 page

Assignment #12: Detailed Estimate

Based on a purchased equipment cost of $100,000 for a process plant handling solids and fluids with automatic controls and outdoor operation: 1) The total fixed capital investment is estimated to be between $329,566.86 and $612,052.73. 2) Direct and indirect cost components were calculated based on their typical percentage ranges of the total fixed capital investment. 3) The estimated fixed capital investment was used to calculate the range while accounting for a 30% accuracy variance.

Uploaded by

Anna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Conde, Allaida G.

3765 CHE 522

Assignment #12: Detailed Estimate

Make a project control estimate of the fixed capital investment for a process plant if the purchased
equipment cost is $100,000. Use the ranges of process-plant cost components in capital investment for
a process plant handling both solids and fluids with a high degree of automatic controls and essentially
outdoor operation. Do not include land.

Component Range of FCI Selected % of Normalized %


(%) FCI of FCI
Direct Costs
Purchased Equipment 15-40 27.5 21.24
Purchased Equipment Installation 6-14 10.5 8.11
Instrumentation and controls 2-12 12 9.27
(installed)
Piping 4-17 10.5 8.11
Electrical (Installed) 2-10 6 4.63
Buildings 2-18 2 1.54
Yard Improvement 2-5 3.5 2.70
Services Facilities 8-30 19 14.67
Indirect Costs
Engineering and Supervision 4-20 12 9.27
Construction Expenses 4-17 10.5 8.11
Legal Expenses 1-3 2 1.54
Contractor’s Fee 2-6 4 3.09
Contingency 5-15 10 7.72
129.5

FCI = (100000) (100) / 21.24 = 470809.7928


Accounting ±30 % Accuracy:
(470809.7928) (0.7) = 329566.86
(470809.7928) (1.3) = 612052.7306
FCI Range : $ 329566.86 - $ 612052.7306

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