Equipment, costs fabrication

Other Equipment Cost ModiEers. Temperature, pressure, or corrosive conditions can act as modifiers of the base cost by requiring thicker vessel walls, more expensive alloys, special seals, more expensive fabrication, and special testing procedures. Separate materials and process severity factors for temperature, pressure,and material,, multiply the base (mild steel) cost as ... 

Quotations for equipment costs from fabricators or suppliers are the most accurate. Therefore most companies base their costs on (1) quotations from fabricators, (2) past purchase records updated with... 

Piping Estimation The cost of fabrication and installation of process-plant piping appears to range from 18 to 61 percent of the FOB equipment cost as indicated in Table 9-56. This would normally represent about 7 to 15 percent of the installed plant cost and is obviously a significant item. The various available piping-estimation methods are as follows ... 

First, equipment costs do not increase linearly with size, since the amount of metal used is more closely related to the area than the volume of the vessel, and also the fabrication of a larger piece of equipment usually involves the same operations as a smaller piece, but each operation does not take twice as long. Second, actual construction costs are not twice as much. The piping of a 2 in. line does not take... 

The suggested bulk material factors are applied to direct equipment costs, whereas the bulk labor factors apply to the corresponding bulk material item. Because the distributive factors are based on larger scale field built plants, FETC applies an additional factory fabrication adjustment to reflect a more modular construction approach requiring less field fabrication as would likely be the case with smaller plant configurations. This approach is illustrated in reference (18). 

Is a simple and inexpensive stabihzation process, low-cost fabrication using equipment similar to that in the conventional cement industry. 

The base cost of a major equipment module is herein defined as the specific equipment item fabrication cost, such as that of a fractionation column, a field-erected furnace, a shell/tube heat exchanger, or process pump. Each of these items will be given a fabrication cost. A figure cost curve will be presented for each major equipment item, and will have cost of the item vs. a key process variable. These key process variables could be the furnace absorbed-heat duty, the shell/tube exchanger tube surface area, and the pump discharge pressure/gpm product number. 

The most accurate method for determining process equipment costs is to obtain firm bids from fabricators or suppliers. Often, fabricators can supply quick estimates which will be very close to the bid price but will not involve too much time. Second best in reliability are cost values from the file of past purchase orders. When used for pricing new equipment, purchase-order prices must be corrected to the current cost index. Limited information on process-equipment costs has also been published in various engineering journals. Costs, based on January 1, 1990 prices, for a large number of different types and capacities of equipment are presented in Chaps. 14 through 16. A convenient reference to these various cost figures is given in the Table of Contents and in the subject index. 

Based on FRP fabrication, the column equipment cost (Cc) in 1991 dollars is... 

Sample calculations in reports, 462 Saran, 437, 440-442 Sawing for equipment fabrication, 447 Scale formation in evaporators, 355-360 Scaling for equipment cost estimation, 169-171 Scaling factors for heat transfer, 586-587 Scale-up for equipment specifications, 36-39 Schedule number for pipe, 493 Screen, cost of 567 Self insurance, 264-265 Sensitivity of results for pipe sizing, 367-368 Separators, cost of 559-561 Sequential analysis, 771-772 Series compound-amount factor, 227... 

From the above discussion, it is clear that a given rate of production can be achieved by different combinations of reactor size and power consumption. The selection of the optimum reactor size is based on the annualized cost of the reactor. The annualized cost consists of the cost of capital (depreciation and interest on fixed cost) and the operating cost. The fixed cost consists mainly of equipment cost (that is, the material cost plus fabrication cost), and the operating cost consists mainly of electricity (power) cost. For the purpose of this illustration, five different materials of construction were selected having costs 0.3,1.0, 3.0,10.0, and 30.0 /kg. This range of costs covers practically all of the materials commonly used in industry, such as mild steel, stainless steel, glass-lined vessels, Hastelloy, titanium-lined vessels, and so forth. Two levels of (depreciation + interest) were examined 20% and 50% per annum. Three costs of electricity were used 0.035, 0.10, and... 

The administration/management of a lump sum general contract is also limited due to the completion of the design prior to the start of the construction activities. This project approach will take the most overall schedule time, but the final cost is easily predictable and known with great accuracy prior to the start of construction. The delivery of long lead equipment and fabricated materials such as structural steel will often not support the overall project schedule. There will be times in the construction schedule when the project is waiting for materials and equipment to be delivered. In the construction of most API facilities, schedule is an important driver of a project. The lump sum general contract approach will not normally satisfy the schedule requirements of the project. 

This document shall again be studied by senior experienced persons very carefully in a critical manner from following points of view (before the equipments are fabricated, erected, and commissioned. It thus saves costly changes which may... 

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