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A Guide to Capital Cost Estimating

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A Guide to Capital Cost Estimating
3rd edition. — Institution of Chemical Engineers, 1988. — 132 p.
This book seeks to be a guide for the student or young practising engineer to those principles and practices, with particular reference to capital cost estimating for process industry projects and, as for the previous edition, results from the collaboration of the Institution of Chemical Engineers and the Association of Cost Engineers.
Whilst the cost information has been updated, the data are still indicative only, showing primarily how costs change with size for particular types of equipment. As specifications, and therefore costs, can vary greatly within any equipment type, the graphs do not necessarily correlate closely with each other. This guide is not intended to be a presentation of real cost data for direct use in estimating - for this the young engineer should always refer to a larger data base with more specific information and seek the assistance of specialists in this field. An even more vital 'health warning' must be heeded: the data in this book refers to 'cost estimating' not to 'pricing'. As a result of today's very competitive climate for the supply of capital goods and services it is not an infrequent occurrence that contracts are let significantly below even tightly estimated costs.
Contents
Introduction
Project Development
Introduction
Time and Cost - The Balance
Feasibility Studies and Reports
Project Types
Project Evaluation
Project Implementation
Cost Estimation In Relation To Project Development
Introduction
Types and Classification of Estimates
The Cost of Cost Estimates
Estimating Methods
Introduction
Common Principles
Step Count Estimating Procedures
Exponential Methods for Estimating Capital Cost
Factorial Methods of Capital Cost Estimation
Detailed Estimating
Computerised Capital Cost Estimating
Composition of Estimates
Introduction
Contingency
Forward Escalation
Exchange Rate Variation
Working Capital
Scrap Value
Commissioning Costs
Changes of Scope and Cost Control
Selection of Components and Materials
Economic Design
Standardization
Alternative Designs
Process Considerations
Specification Standards
Duty Specification
Operational Standards
Cost Optimisation
Process Economics
A Guide To Approximate Process Plant Component Costs
Introduction
Material Factors
Process Equipment and Installation Costs
Bulk Material and Associated Installation Costs
Sub-Contract Costs
Up-Dating of Estimates
Introduction
Time Bases for Cost Indices
Make-up of Cost Indices
UK Plant Cost Indices
USA Cost Indices
Cost Indices for Other Countries
Currency Translation
Location Factors
Precautionary Notes
Sources of Cost Information
Survey of Sources
Suppliers' Detailed Quotation
Suppliers' Budget Quotations
Company Records
Trade Literature
Unit Pricing Literature
Technical Literature and Textbooks
Personal Cost Books
Government Departments
Computer Data
Literature
Some Key References
Appendix I - Glossary
Appendix II -Typical Estimating Check List
Appendix III - Application of Step Count Capital Cost Estimating Procedures to an Acetic Anhydride Process
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