Installation costs for equipment

Installation cost for equipment as a percentage of the purchased-equipment costf... 

Analyses of the total installed costs of equipment in a number of typical chemical plants indicate that the cost of the purchased equipment varies from 65 to 80 percent of the installed cost depending upon the complexity of the equipment and the type of plant in which the equipment is installed. Installation costs for equipment, therefore, are estimated to vary from 25 to 55 percent of the purchased-equipment cost. 

IIS estimate the total installed cost for a grass-roots plant producing an organic chemical (S-F process) on a continuous basis. We assume that the total cost of delivered equipment 2, (C )del is 1 million and use suitable factors from Table 9-51. 

In 1964 the installed cost for each extruder and its accessory equipment was given as 90,000.25 The indirect costs increase the cost for solids-handling equipment an average of 29%. This gives a bare module cost of 1,180,000 for all 9 extruders and accessories in 1968. No bare module factors are given for extruders. However, an extruder is really a polymer pump, and for pumps and compressors the bare module factor is around 3.25 and the material factor for stainless steel is 2.0. A back calculation gives a 1968 F.O.B. cost of 540,000. 

The technical literature is rife with detailed methods of cost-estimating process equipment. For the purpose of this chapter, the costs assembled in Table 8.1 will orient the novice designer to the approximate price of common types and sizes of plant equipment. The values shown are the purchased, as opposed to the installed, cost of equipment. A few items worthy of note from Table 8.1 are as follows ... 

The installation costs for used equipment are frequently higher than for custom-built equipment. 

Cooling water systems. An investment cost of 58 per gpm of total water circulation is recommended for preliminary estimates. This represents the total installed costs for a conventional induced-draft cooling tower, water pumps, water-treating equipment, and water piping. Special costs for water supply and blowdown disposal are not included. 

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 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. 

Equation 2.15.5 gives the total installed cost for all major equipment at actual process conditions. As Figure 2.4.1 shows, there are two reactors and two air coolers. Add all installed costs for the equipment at actual conditions. 

As a conclusion, accelerators and 60 Co sources are the most practical and have the lowest installation costs for laboratory research and industrial equipment. 

Alternatives equations for the purchased and installed cost of equipment are given below. These have been adapted from Douglas (1988), which in turn originate from the data of Guthrie (1969). The capacity data are expressed in metric units. The values are more suited for US market. The M S factor for mid 2002 was 1095. 

Estimated installation cost for each item of equipment. 00,000... 

Three problems must be considered in compiling an up-to-date summary of equipment costs (1) bringing published reference costs up to date (2) estimating equipment costs for equipment or plants of various capacities when the cost data are available for only one capacity (3) estimating installation charges when delivered equipment prices are listed. 

Computing Installation Costs. When delivered equipment costs are the only data available, installation costs must be estimated. These costs,include labor, foundations, supports, platforms, site preparation, normal temperature-level insulation, and other factors directly related to the erection of equipment. Table 6-3 (p. 214) gives installation costs as a percentage range of delivered equipment costs for various types of equipment. As a general rule, costs for equipment installation are often estimated as 43 per cent of the delivered equipment costs. ... 

Installed costs for refrigeration on a ton-capacity basis can be obtained from Aries and Newton. The listed costs of equipment per ton of refrigeration ejBfect are based upon the complete plant, with low-side equipment, ready to run, including reciprocating or centrifugal compressors, motor, starter, receiver, water and brine coolers, conditioner, water cooling coils, etc. If an evaporative condenser instead of a water-cooled condenser is used, add 35 per ton for cooling tower, add 60 per ton. 

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