Construction costs components

Overall, use of learning systems has two main advantages. First, the construction cost may be lower, certainly if the system is not construeted from scratch but uses existing software tools and components. Second, a learning system is able to adapt to changing conditions, though not always on-line. 

Cost Indices The value of money will change because of inflation and deflation. Hence cost data can be accurate only at the time when they are obtained and soon go out of date. Data from cost records of equipment and projects purchased in the past may be converted to present-day values by means of a cost index. The present cost of the item is found by multiplying the historical cost by the ratio of the present cost index divided oy the index applicable at the previous date. Ideally each cost item affected by inflation should be forecast separately. Labor costs, construction costs, raw-materials and energy prices, and product prices all change at different rates. Composite indices are derived by adding weighted fractions of the component indices. Most cost indices represent national averages, and local values may differ considerably. 

Overseas Construction Costs Although Table 9-55 gives location factors for the construction of chemical plants of similar function in various countries at 1993 values, these may vaiy differentially over a period of time owing to local changes in labor costs and productivity. Hence, it is often necessaiy to estimate the various components of overseas construction costs separately. Equipment and material prices will depend on local labor costs and the availability of raw materials. If the basic materials have to be imported, costs in the source area become important and import duties and freight charges must be added. 

The rig selection will dictate the basic layout of the pad. Based on the necessary area needed to support its functions, ancillary equipment may be added in space conservative measures. In addition to the placement of various stationary rig site components, other operations such as logging, trucking and subsequent completion operations must be provided for. The most environmentally sensitive design will impact the least amount of area, and in that it will be the most economic. Potential pad sites and access routes should be laid out on a topographic map prior to the actual survey. At this time, construction costs can be estimated and compared. Figure 4484 shows such a layout. The cost of building a location includes the cost of reclamation such as any remediation. 

While the construction cost for an ET cover is expected to be less than that for a conventional cover, uncertainty exists about the costs for O M after construction. Several factors affecting the O M cost include frequency and level of maintenance (e.g., irrigation and nutrient addition), and activities needed to address erosion and biointrusion. In addition, when comparing the costs for ET and conventional covers, it is important to consider the types of components for each cover and their intended function. For example, it would generally not be appropriate to compare the costs for a conventional cover with a gas collection layer to an ET cover with no such layer. Additional information about the costs for specific ET cover systems is provided in project profiles, discussed in Section 25.9. 

A project estimated at 1.0M and 10,000 construction hours with the following major cost components ... 

Chemical Engineering Index, CE (1957-1959 = 100) cost developed for U.S. conditions primarily as a plant construction index. Separate CE indices are published for process equipment, heat exchangers and tanks, process machinery, and for each of the cost components and for the overall weighted total for a typical process. CE instruments is used in Section d. Published in each issue of Chemical Engineering. 

The methodology for calculating the capital cost component is consistent across technologies. Financing costs assume that capital expenditures are uniformly distributed over the time of construction, and assume a default real interest rate of 5%. Once operational, annual capital costs are determined by multiplying the total capital cost, including finance costs, by a fixed charge rate (FCR) ... 

The cost factor is of particular importance imder the conditions of the economic crisis. On the one hand, price rise makes the Project more costly which can put the main obstacle to its implementation on the other hand, the same rise is a cause of increase in energy tariffs. Under the conditions of inflation and political instability non-fulfilment of obligations to repay foreign currency credits, but in the given Project this risk is reduced to a minimum as the foreign currency component of construction cost is only 10%. 

Life cycle costing (LCC) is a concept for estimating the total cost or total ownership cost (TOC) which includes acquisition costs (total capital cost, i.e., land acquisition costs and construction costs), ownership costs (all future costs, viz., installation costs, operation costs, repair costs, service and maintenance costs, and disposal costs), as well as other cost components. 

Other Cost Components include (a) owners Project Management cost, which includes technical and economic feasibility studies, environmental impact studies, plant site selection, land procurement, financing negotiations, preparation of technical specifications, selection or recommendation of contractors, and contract negotiations,- (b) Preoperation and Startup Expense, which provides for the costs incurred between the end of construction and the production of a quality product at design capacity and (c) Spare Parte. 

We will examine the quantitative relationship between engineering and management work (broadly described as indirect costs) and hardware and construction costs (direct costs) in Chapter 8 the present discussion is restricted to qualitative aspects. The division of project costs into direct and indirect components is widely practised, and has very important implications, but it is often little understood. What seems to escape many is that it is a purely artificial distinction. 

On the design side, efforts will continue to be made to design out corrosion. There will always be a balance between cost and durability. The use of less reinforcing steel increases the size and weight of components. Increased cover increases the risk of surface cracks, which can be counter-productive. Increased site supervision to ensure that proper cover is achieved will increase construction costs. However, it is likely that less reinforcing steel will be used in situations where it is vulnerable to corrosion and improved site practice and quality systems will improve durability. 

The IPWR is amenable to shortened constmction schedules because the RPV and internal components can be shop-fabricated, pre-assembled and tested under optimum conditions. In particular, the IPWR configuration eliminates the need for difficult on-site welding work on the primary system. This feature leads to improved quality assurance and reduced construction costs. 

A substantial reduction in the number of instrumentation and control components, leading to improved reliability and reduced maintenance and construction costs. 

Component of the Cost Cost in Thousands of Fraction (%) of Total Cost Fraction (%) Total, Not Including Interest During Construction Cost in Thousands of Adjusted for Inflation, to 2013... 

The final, and major constraint of the designer is that the cell and battery designs which evolve shall be amenable to mass production techniques at realistic costs. This is too extensive a topic to discuss here suffice it to say that each proposed material of construction and component design must be reviewed critically in the light of this criterion. The size of the operation can be gauged by considering a modest market for 60,000 urban delivery vans with a battery life of 3 years. The annual requirement would then be for 20,000 traction batteries containing, say, 15-20 million cells. If a production line assembled cells at the rate of two per minute and operated three shifts, all the year, it would still require 20 such production lines to manufacture this number of cells. The need for simplicity and automation is evident. 

Tower designers should consider the method of erection that contractors may use in constructing the towers. Often the design can reduce construction costs by incorporating more easily fabricated and assembled steel components or easily assembled reinforcing bar cages and tower shapes that are easily formed. Of comse, the tower design cannot be compromised just to lower erection costs. 

Main primary components. The design of the IHX is compact with enhanced performance to improve economy. Two types of IHX, primary sodium in the tube side or the shell side, were designed and compared, and the former was selected to reduce the construction cost due to the smaller heat transfer area. A gas dam structure is employed to decrease the thermal stress in the IHX vessel wall near the liquid surface. The structural concept of the IHX is shown in Fig. 9.42. 

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