Basis for Cost Estimation

Basis for cost estimate i. Plant Capacity = 150 million SCFD (417.8 tons /day) of Hydrogen ... 

The example used as the basis for cost estimates in this Chapter assumes a lead concentrate containing 60 per cent lead, 1000 g/t silver and 3 g/t gold. For recoveries of 96 per cent and 93 per cent for silver and gold respectively, and for prices of US 10 per troy ounce for silver and US 600 per troy ounce for gold, the returns are US 523/t of product lead for silver and US 91/t of product lead for gold. 

The itemized costs for each of these categories on a year-by-year basis for an estimated 3-year operating life is shown in Table 11.3. The total cost to remediate 21,300 yd3 of soil was estimated to be 220,737 or 10.36/yd3. This figure does not include any treatment of the off-gases. If effluent treatment costs are included, it would increase costs to 385,237 or 18.09/yd3. 

Table 3 and is the basis for the estimated fixed-capital cost tabulation given in Table 4. The probable error in this method of estimating the fixed-capital investment is as much as + 30 percent.

A thorough analysis of the capital and operating economics was made for the system described above. The basis for this estimate is shown in Table III, and relatively conservative assumptions have been made for the cost of the various utilities, maintenance, operating supplies, overhead, and capital charge rate. The analysis was based on designing the plant for the equivalent of 7000 hr/yr of full load operation. The capital costs, broken down into the gas interface loop and the regeneration system, are shown in Table IV. The cost for the scrubber loop and its asso-... 

In the OTEC R D programs sponsored by DOE cost estimates were made for many alternative designs of subsystems and components. In the United States, the most detailed OTEC development cost studies were conducted in the JHU/APL and OTC prehminaty design programs, which drew heavily on industrial experience and costs, and work by other DOE contractors. These studies have been used as the primary basis for the estimates listed in the tables presented in later sections of this chapter. Cost studies in less detail have also been reported in other American studies, and by Japanese, French, and Taiwan investigators. Some of these are also listed. Because of unknown differences in estimating procedures the results may not be strictly comparable but are deemed useful to include. 

The use of established and defensible estimating techniques. Specifically identify the basis for cost allowances and contingency. Avoid making firm commitments except on a basis of adequate engineering, firm prices from the market-place, and thorough risk analysis. Be critical in the use of data based on previous projects, especially those set up as self-fulfilling prophesies. 

In the example used for the basis of cost estimates in this chapter, the copper content of concentrates is 0.5 per cent and for a blast furnace slag of 0.15 per cent copper, recovery into matte would be around 80 per cent, which would yield 0.017 tonnes of copper matte containing 40 per cent copper per tonne of lead produced. Taking smelting charges and penalties at US 1000/t of contained copper and the LME copper prices at US 7500/t, the return for copper matte is US 44/t of lead produced. 

This closure report has been organized Into the following sections to provide a comprehensive description of the facility. Its environmental problems, and regulatory and Institutional considerations in a manner that provides a basis for the estimated cost and schedule presented for cleanup actions. 

Thus, if film transfer coefficients vary significantly, then Eq. (7.6) does not predict the true minimum network area. The true minimum area must be predicted using linear programming. However, Eq. (7.6) is still a useful basis to calculate the network area for the purposes of capital cost estimation for the following reasons ... 

Review Scheduling A review scheduhng procedure should be estabhshed that documents who is responsible for initiating the review and when the review(s) should occur during the project. The scheduling needs to balance availability of process information, review technique used, and the impact of potential review action items on project costs (i.e., early enough to minimize the cost of any potential changes to the process). The aclual amount of time needed for the review should also be stated in the procedure. On the basis of the number of project reviews required and the estimated time needed for each review, the project cost estimate should include the cost for project reviews as part of the total cost for the project. 

Seismic zone basis must be specified for structural design. Soil data is important, especially for cases where extensive use of foundation piling is required with major cost impact. Availability of aggregate or natural pond stabilization materials near the site will not be considered for early cost estimates, but can be kept in mind for future planning if the project is given the green light. 

Cooling Water System. A list of cooling duties will be available at this point so the cost estimate for this system can be factored or estimated based on a similar operating system. For a more definitive estimate based on initial or detailed layout, it is probably best to use a contractor or consultant skilled in these designs. If a cooling tower is involved, the groundwork will already have been set. This basis can be passed along on specification sheets provided in the Appendix to a vendor for quotes. 

Take advantage of corporate experience with other Quality Management projects when preparing your cost estimate. This will provide actual costs to use as a basis for estimating the costs for developing management systems and programs. 

Figure 1-41. Account diagram for accumulation of project costs. Cost estimates must be made to conform to same scope basis.

The cost of the purchased equipment is used as the basis of the factorial method of cost estimation and must be determined as accurately as possible. It should preferably be based on recent prices paid for similar equipment. 

After a product has passed the critical tests as an insecticide and a preferred process of manufacture has been decided upon, full information concerning use, potential raw materials, and process is the basis for the preparation of firm cost estimates. These estimates may cover production on a small or pilot plant scale, or on a large scale. If estimates are favorable, the process information is passed along to the manufacturing unit which, as a... 

The purpose of a sampling and analysis plan (SAP) is to ensure that sampling data collection activities will be comparable to and compatible with previous data collection activities performed at the site, while providing a mechanism for planning and approving field activities. The plan also serves as a basis for estimating costs of field efforts for inclusion in the work plan. 

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