Cost estimation classification

Table 7.1 Suimnaiy of Capital Cost Estimating Classifications (References [1], [2], and 131)...

Christensen, P., Dysert, L.R., 2005. Cost estimate classification system— as applied in engineering, procurement and construction for the process industries. AACE International Recommended Practice No. 18R-97. Retrieved on October 22, 2012 from http //www. costengineering.eu/Downloads/articles/AACE CLASSIFICATION SYSTEM.pdf. 

There are many different types of systems used for reporting costs, but all the systems employ some method for classifying the various expenses. One common type of classification corresponds to that presented in Chap. 6 (Cost Estimation). The total cost is divided into the basic groups of manufacturing costs and general expenses. These are further subdivided, with administrative,... 

There are five generally accepted classifications of capital cost estimates that are most likely to be encountered in the process industries [1,2,3] ... 

NIST (1999) National institute of standards and technology, UNIFORMAT II elemental classification for building specifications, cost estimating, and cost analysis, NISTIR 6389, Washington, DC, p 93. http // www.bfrl.nist.gov/oae/publications/nistirs/6389.pdf... 

Classification of Estimates There are two broad classes of estimates grass roots and battery limits. Grass-roots estimates include the entire facility, starting with site preparation, buildings and structures, processing equipment, utilities, services, storage facilities, raihoad yards, docks, and plant roads. A battery-limits estimate is one in which an imaginary boundary is drawn around the proposed facihty to be estimated. It is assumed that all materials, utilities, and services are available in the quality and quantity required to manufacture a product. Only costs within the boundary are estimated. 

Estimate of Installed Facility Cost Prescreening and classification equipment 3.6 3.6 3.6... 

The results from lengthy exposure periods are of course more relevant for practical purposes e.g. for classification of the corrosivity of atmosphere on a given location or for cost-benefit analysis. In this case the corrosion rate may be assessed from yearly mean values of the concentration of pollutants and from the time-of-wetness class estimated from meteorological measurements. 

The five classifications given in Table 7.1 roughly correspond to the five classes of estimate defined in the AACE Recommended Practice No. 17R-97 [4]. The accuracy range and the approximate cost for performing each class of estimate are given in Table 7.2. 

In Europe, treatment is reimbursed through a diagnosis-related group (DRG)-based system including beds for chronically ill patients, if they are located in rehabilitation wards of acute care hospitals. If they are independently structured in rehabilitation hospitals, reimbursement is on a per diem basis, with adjustments based on the DRG classification. Most studies estimate care costs in a WF as less than in an ICU (17,40,41) mainly due to staff salaries, NIV, and fewer diagnostic tests. Seneff et al. evaluated mortality and costs over six months... 

Table 4 presents estimations of probabilities of proper and improper classifications. The use of prediction models forces an operator to make unnecessary laboratory analyzes if the estimated state is greater than the real one, which generate additional costs. The most undesirable situation is one where... 

The engineer enters major design details (kVA rating, voltage ratio, product classification and quantity) into a computerised estimating program. From a list of 700 possible options, the selected ones to suit the tender requirements are added. From a library of material, labour and overhead costs, a tender price is calculated. 

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