Installation costs direct labor

The factors fp and fj have not been applied to installation costs because installation costs are not a simple function of purchase cost. Although process piping and fittings made for the same unusual conditions are proportionally more expensive, labor, foundations, insulation, etc. are not. Furthermore, only about 70 percent of piping is directly exposed to process fluid. The balance is auxiliary or utility piping made of conventional materials. 

The installation of equipment involves costs for labor, foundations, supports, platforms, construction expenses, and other factors directly related to the erection of purchased equipment. Table 6 presents the general range of installation cost as a percentage of the purchased-equipment cost for various types of equipment. 

Ml = direct labor cost for equipment installation and material handling Mx = specific material quantity in compatible units p = total pump plus driver cost (less incremental cost of alloy)... 

The materials column includes all the equipment and materials usually purchased by the Owner and/or general contractor - to be installed by the subcontractors. The subcontracted labor column includes all costs, direct and indirects, incurred by the subcontractors for the installation of these materials. Construction equipment rentals as well as contractor overhead and profit must also be included. The accounts traditionally treated in this manner are ... 

Tubular heat exchangers appear to have zero exponents, implyinig feftt direct labor cost is independent of size. This reflects the fact that s h equipment is set with cranes and hoists, which, when adequately sized for the task, recognize no appreciable difference in size of weight of the equipment. The higher labor exponent for installing carbon-steel towers indicates the increasing complexity of tower internals (trays, downcomers, etc.) as tower diameter increases. 

Enter the size parameters and then click the Evaluate button, shown in Figure 6.3d. This runs the evaluator program and gives the results screen shown in Figure 6.3e. The purchased equipment cost is 145,900 on a January 2006 USGC basis. The installed cost is 196,225. Note that the installed cost is calculated directly by estimating bulk materials and labor rather than using an installation factor. 

Power requirements and materials are directly related to the size of the treatment area. One of the largest unit cost factors is the depth of the contamination. This variable may be more sensitive to Lasagna-type installations and direct-push installations than borehole or well-based installations. Project costs tend to rise more than linearly with depth. Power and materials rise linearly with depth, but the installation labor costs and, possibly, equipment cost may rise more than linearly as time required to install and horsepower can increase significantly as depth increases, especially beyond 15-25 m. It may take longer to drill the boreholes or drive mandrel systems to depth because of soil changes and the increase in soil densities. 

The installed costs sum to 646,800 that is, 108,700 less than the total direct cost of materials and manpower for installation of the plant, 757,500. This Installed Direct Cost, Cdi, is referred to in Chapter 16 of the textbook as the Total Direct Materials and Labor Cost, Cdml- Finally, the materials and manpower items that are not chargeable to the individual equipment items are displayed in the Area Bulk Report within the Capital Estimate Report ... 

Total Direct Materials and Labor Costs 785,700 Miscellaneous Installation Costs 0 Material and Labot G A Overhead and Contractor Fees 69,700 Contractor Engineering Costs 558,300 Indirect Costs 482,600... 

If this equipment cost were multiplied by the bare module factor for the base case, the cost would become ( 43,880)(3.29) = 144,360. This is 16% greater than the 124,490 calculated in Example 7.11. The difference between these two costs results from assuming, in the latter case, that all costs increase in direct proportion to the increase in material cost. This is far from the truth. Some costs, such as insulation, show small changes with the cost of materials, whereas other costs, such as installation materials, freight, labor, and so on, are inpacted to varying extents. The method of equipment module costing accounts for these variations in the bare module factor. 

The costs of this phase consist of direct costs associated with the purchase and installation of materials equipment, the value of construction assembly works, the value of installed machinery equipment, the value of direct used materials, direct labor costs, fees charges related to required permits and the costs of preparing the construction site. 

Guthrie and Garrett. It uses equipment factors to generate separate costs for each of the "disciplines associated with the installation of equipment, such as installation labor, concrete, structural steel, and piping, to obtain direct field costs for each type of equipment, e.g., heat exchangers, towers, and reactors. 

The total M + L, material and labor cost, is shown in Table 8.12 as a direct cost factor, 231.3. This is a percentage-type cost factor, a percentage of the total base cost. All materials of the fabrication shop and field materials are included. Labor in both the fabrication shop and field are equally included. Thus, this single figure in Table 8.12 is a factor for deriving the total direct cost of a new shell/tube heat exchanger fabricated and field-installed, ready to commission. 

I. Direct costs = material and labor involved in actual installation of complete facility... 

II, Indict costs s expenses which are not directly involved with material and labor of actual installation of complete facility (15-30% of fixed-capital investment)... 

The direct-cost factor for equipment, foe, contained in Table 2.8, does not include buildings and auxiliary facilities. It includes the labor and materials needed to install equipment. The buildings and auxiliary costs will be accoimted for after we-calculate the depreciable capital cost for equipment. 

The very basic cost breakdown is by directs and indirects. The directs include all materials that physically go into the project and the cost of the labor required to install it. The indirects include engineering, field indirects, spare parts, taxes, startup, etc. 

Step 3 Update the cost data to the current cost index. For each piece of equipment, determine the bare-module cost, using bare-module factors, Fbm, from Table 16.11, being careful to determine it properly when the material of construction is not carbon steel and/or the pressure is not near ambient, as given by Eq. (16.12) and illustrated by the following example, before moving to Step 4. As discussed earlier, the bare module cost accounts for delivery, insurance, taxes, and direct materials and labor for installation. 

As shown below, the List of Equipment and Bulk Material by Area portion of the report is displayed when the Equipment List is accessed. This provides the Purchased (Equipment Setting) and Installed Direct Costs (i.e.. Total Material and Manpower Cost or Total Direct Materials and Labor Cost) for each piece of equipment, e.g., the reboiler as shown next. Note that the right-hand window below is displayed using a 7-point font. This is achieved by pressing the Select Font button on the toolbar. Furthermore, portions of the complete printed output are provided in Appendix HI of these notes. 

Table 16.33 Aspen IPE estimates of equipment sizes, purchase costs, and direct materials and labor costs for installation of the depropanizer distillation complex... 

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