Costs of projects

Life-cycle co.sting (LCC). This type of analysis requires that all the traditional costs of project or product system, from raw-material acquisition to end-result product di osal, be considered. 

BUS areas are established by some divisions in order to provide timely access to needed chemicals within the division. The primary mission of the BUS area is to conserve the resources of the research division by reducing the number of partially used chemicals that are declared as waste within a division. BUS areas may also reduce the cost of projects by providing free chemicals to laboratory persormel. Chemical inventories must be updated in HMIS when ownership of chemicals is transferred. 

Simulation techniques are more acceptable as tools for engineers developing costs of projects and systems. As computer simulation packages become more user friendly and computers memory grow larger and computation speeds become faster, simulation as a tool for estimating is becoming more popular. 

Advance amounts required by vendors are generally 15-25 % of cost of machinery (in case the cost of machinery is in the range of about 50-70 % of total cost of project depending on the complexity of technology). Vendors may ask for greater advance amount if costly materials of construction (stainless steel, titanium, or special alloys) are required for fabrication, pressure vessels are to be supplied or equipment designs are complicated such as special reactors or boilers. 

In this chapter, we will further address and quantify some of the project environment issues raised in preceding chapters. They essentially relate to two aspects of project work, firstly plant capital and operating costs, and secondly the costs of project engineering and management work. 

Care needs to be exercised when making historical comparisons of the engineering costs of projects on what was the engineering workscope on the job in question. As we have previously seen, the engineering and management scope can be shifted between the project engineering team, the equipment suppliers, the fabrication and construction contractors. 

Plant capital and operating costs, and the cost of project engineering and management, are to be strictly optimized on the basis of 12 per cent per annum discount on future income and 5 per cent per annum inflation of product revenue and operating costs, for a plant life of 30 years. 

Costs of Projects for Orphans and Other Vulnerable Children Case Studies in Eritrea and Benin Prywes, Coury, Fesseha, Hounsounou Kielland 0414 Bah, Rus, Sp... 

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