Contractor’s fee

Cost of contractor s fees plus contingency allowance... 

Contractor s fees, if a contractor is employed his fees (profit) would be added to the total capital cost and would range from 5 per cent to 10 per cent of the direct costs. 

To the basic purchased equipment cost (including delivery to the site) of 100 are added each of the subsequent factors to make up the final total. The contractor s fee is necessary if the plant design and construction work is given to a contractor to undertake (which is very often the case, because the company needing the plant is unlikely to have the necessary engineers on its payroll). 

The contractor s fee varies for different situations, but it can be estimated to be about 2 to 8 percent of the direct plant cost or 1.5 to 6 percent of the fixed-capital investment. 

A factor for construction expense, contractor s fee, and contingency is estimated from previously completed projects and is used to complete this type of estimate. A cost equation summarizing this method can be given asf... 

The purchased cost of equipment for a solid-processing plant is 500,000. The plant is to be constructed as an addition to an existing plant. Estimate the total capital investment and the tied-capital investment for the plant. What percentage and amount of the fixed-capital investment is due to wst for land and contractor s fee ... 

The purchased-equipment cost for a plant which produces pentaerythritol (solid-fuel-processing plant) is 300,000. The plant is to be an addition to an existing formaldehyde plant. The major part of the building cost will be for indoor construction, and the contractor s fee will be 7 percent of the direct plant cost. All other costs are close to the average values found for typical chemical plants. On the basis of this information, estimate the following ... 

The installation factor consists of direct costs, indirect costs, contingency cost, and a contractor s fee. The installation factor for a piece-of-equipment is given by... 

From Table 2.8, the direct-cost factor for a furnace is 1.3, and from Equation 2.15.4 in Table 2.15, the indirect-cost factor is 1.34 for a fluid process, and the factor for contingency and the contractor s fee is 1.18. Then, from Equation 2.15.4, the installation factor for the furnace,... 

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