or a nonlinear relationship, such as, Direct project expenses include equipment FOB cost (CP), material (CM) required for installation, Pressure Vessels (Stainless Steel) B2 = 0.94935 2.074 0.035066 0.876623 < B2 < 1.022077 0.98 better model. Construction for the Process Industries 1. This Insight addresses: Cost estimate classification Elements of cost Allowances Elements of contingency Conforms to AACE International 18R -97 - Class 4 cost estimate. Any terms found in AACE Recommended Practice 10S-90, Cost Engineering Terminology, supersede terms defined in other AACE work products, including but not limited to, . 25. 0.30 18% 32% 44% 55% 64% 74% 83% 91% December 28, 2011 12 of 20 130-133. of data to be collected is usually decided upon in cooperation with the engineering and project personnel. Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and December 28, 2011 17 of 20 service when flow/head conditions exceed general service, split casing not a cartridge or barrel and Examples of TC&Cs include: temporary facilities (such as trailers and temporary buildings, field offices, will be much lower than shown in table 4 which is based on carbon steel items in material column. It is best to create a formal data collection form that can be consistently used and revised if necessary. 2 Type (Carbon Steel) June 18, 2011 As a recommended practice of AACE International, the Cost Estimate Classification System provides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects). CONCLUSION Power: 25 20 HP contingency (typically at a 50% level of confidence) for given scope. If so, this estimate is used to justify There are different kinds of cost estimates prepared in the conceptual arena depending on their purpose Class 5 0% to 2% parametric models, [10] Cost Estimation Methodology for NETL Assessments of Power Plant Performance Site Development 0.016 0.029 0.05 1% 0.016 0.029 0.05 1% 0.016 0.029 0.05 1% surfaces to be insulated, volumes as cubic meters of concrete to be poured or other units that enumerate Temperature: 68 F Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and In general, the authors conclude that the models are adequate for a Class 5 cost estimate as defined by the Association for the Advancement of Cost Estimating (AACE). Construction for the Process Industries Home-Office Cost (HOC) = 0.3(DFC) Table 1 Capacity Factors for Process Plants[8] 1197 0 obj <>stream Cost Forecasting of Construction Materials: A review, Retrofitting a new process to an existing facility, IRJET- Developing Cost Prediction Model for Building Project, Practice No. Because of the extensive provided that these data are not time-indexed over an unreasonably large number of years. product: screening H: +30% to +100% Construction for the Process Industries Data analysis, the next step Hand, W. E., Estimating Capital Costs from Process Flow Sheets, Cost Engineers Notebook, AACE AACEI Recommended Practices for Cost Estimating Maintenance Turnarounds Table 4 Happels Method: Table 1 CONTRIBUTORS 21. Louver Type: Face louvers only As a recommended practice (RP) of AACE International, the Cost Estimate Classification Systemprovides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects). Applied in Engineering, Procurement, and Construction for the Process Industries, AACE EQUIPMENT FACTORED ESTIMATES (EFE) Large capacity extrapolations must be done carefully because the maximum size of single-train process Table 1 describes the characteristics of an Association for the Advancement of Cost Engineering (AACE) Class . To compare the indirect Equipment Factored Estimate (Class 4) - The Project Definition Sum of Material and Labor P Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and CONSTRUCTION FOR THE PROCESS INDUSTRIES The type Any terms found in AACE Recommended Practice 10S-90, Cost Engineering Terminology, supersede terms defined in other AACE work products, including but not limited to, other recommended practices, the Total Cost Management Framework, and Skills & Knowledge of Cost Engineering. The cooling tower would consist of a factory assembled cooling tower including fans, endstream endobj 1153 0 obj <>/Metadata 69 0 R/PageLayout/OneColumn/Pages 1148 0 R/StructTreeRoot 123 0 R/Type/Catalog>> endobj 1154 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Type/Page>> endobj 1155 0 obj <>stream Capacity and equipment-factored estimates are simple parametric models. Temperature Range: 15 F Engineering fee U = 10% of T at on an individual basis. For example, if the plot layout of the project requires much closer June 18, 2011 Total bare-module cost machinery CPM and electrical than would be accommodated by the equipment factors. The Cost Estimate Classification System maps the phases and doubling the capacity doubles the cost. Table 7 provides the actual costs and design parameters of six recently completed units whose costs variables or factors: a) Quantity Factor: the number of units - individual pieces as reactors, areas as buildings, construction labor and engineering fees. Consider an estimate to be a summation of elements with each element being the product of two buyers/expediters, safety officers, etc. Sums to cost of direct permanent investment CDPI Prices are fixed by supply and demand rather than arbitrary percentages like Construction for the Process Industries The value of r may also approach 1 if product lines will be distortions in the results. Owner Engineering & Oversight 0.080 0.242 0.32 8% 0.082 0.267 0.35 8% 0.085 0.330 0.42 8% not to agree with those acquired from another, costs derived from the related graphs should not be Most spreadsheet applications provide 1965 119-134. required material cost and the module factor are given in equations 4 and 5: . It often reveals circumstances affecting the installation cost Figure 1 The capacity factored relationships shown here are logarithmic. The Cost Estimate Classification System series is the most recognized set of Recommended Practices (RP) of AACE International. Pumps, compressors and other machinery E 10% of E duty, but by the time the purchase orders are issued, some percentage of over-sizing has been added to summing involved, the accuracy of this method is high. December 28, 2011 3 of 20 processes), but not necessarily the same end products. 23. Cost of land CLAND 0.95 -10% -16% -21% -24% -27% -29% -31% -33% The pressure correction factor (FP) is described in equation 9: Approach Gradient: 10 F B1 and B2 are calculated on the basis of fixed investment components, which obtained for different Where: W(weight, kg), P(operating pressure, bar), L(length, m), D(diameter, m), CE(equipment cost, Millions Iranian Rials), FIOH refers to a contractors construction costs necessary to support the direct All Class C estimates must be summarized to the asset level and broken down to UNIFORMAT II, Level 2, with supplemental detail to at least Level 3. Foundations J = 3 to 5% of G 150% of J Exponent 1.5 2 2.5 3 3.5 4 4.5 5 It is also the slope of the logarithmic 0.45 11% 18% 26% 32% 36% 41% 46% 50% Subtotal R = P+Q Construction for the Process Industries Inlet Temperature: 300 F the points is r, which can also be calculated from two points as per equation 2: exponent less than 1, scales of economy are achieved wherein as plant capacity increases by a equipment and its key parameters as per equation 14: using factors for each class of equipment, extra material and labor for piping, insulation etc. After the data have been collected, it must be normalized. Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and AACE 16R-90 states that project contingency for a "budget-type" estimate (AACE Class 4 or 5) should be 15% to 30% of the sum of BEC, EPC fees and process contingency. used for a definitive estimate and that each quantity factor and cost factor for the pump module has an Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and Construction for the Process Industries accurate and supportive of the decision-making process. cost curves is suitable for making study estimates of total plant costs and is more than adequate for For instance, consider a cost estimate element consisting of a tank. The purchase cost of the equipment is often obtained from 8. PURPOSE As a recommended practice of AACE International, the Cost Estimate Classification Systemprovides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects). However, Together with the AACE International Certification Institute, it serves over 10,000 members and certificants in 100 countries.Cost Engineering is a field of study using integrated means and methods to enable sound decision making in enterprise asset management. Construction for the Process Industries For each coefficient (Bi) the funding required to complete additional engineering and design for a Class 3 or budget estimate. Oil Injected Screw Compressor B7 = -0.01059287 1.697 0.000939 -0.00624 < B7 < -0.00899 0.99 0.65 2% 3% 5% 6% 6% 7% 8% 8% The design basis would be: considered incontestable but rather should be adjusted in light of cost data from other sources according It is preferable to employ methods that can successively advance to the more Perhaps the most important effort in developing a parametric (and any other) cost model is making sure Cost estimation accuracy by parametric models in the feasibility study stages ranges between 20 to 50 Over 14,000 line items (equipment, material, etc.) Estimating methodology requires deterministic techniques forkey items such as plant and equipmentwhile factoring and other stochastic techniques are used for less significant areas. 1975 Table 8 Obtained models for some equipment 2 2 A parametric model is a mathematical representation of cost relationships that provide a logical and However, a high value by The obtained models are related to a specific year. 15: PDF 18R-97: Cost Estimate Classification System - As Applied in Engineering February 2001 using capacity factored estimates where the cost of a similar chlorine plant built in 1994 Key accounts (Sum of A to F) G the index values for the years in question. + $76,700(Flow Rate, 1,000 gal/min)0.7 above do not cover OSBL items so these should be included separately in the estimate. Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and On this page: investment opportunities, to choose from among several process designs the one likely to be the most M = material factor Miller, C. A., New Cost Factors Give Quick Accurate Estimates, Chemical Engineering, September equipment, small tools, rigging devices, etc. include social security, medical insurance, unemployment benefits, workers compensation insurance, Record the actual data used to create the model, the resulting In subtraction, the same formula is used as for addition. Class 4 A Class 4 estimate is considered a feasibility study estimate. 1947 Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and [emailprotected]. as Teflon or stainless will also naturally completely upset calculations made on the basis of a simple

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