Installation factors

To a first approximation, the cost of a single MPI is assumed to vary with scale (vessel volume or process throughput) on an exponent of 0.7. The value of this exponent does vary from one plant item type to another and while it typically lies in the range 0.5-0.9 [40, 42] for some equipment types (e.g., centrifuges) it may be at or above unity. This indicates that the purchased cost of equipment per unit production rate, say /(tons per year), generally increases as manufacturing scale decreases well known as economies of scale, related to large bulk chemical plants. 

Average main plant item cost x 10 (GBP2000 basis) 

Similar observations can be made on other installation factors - for example, stractures and building. While traditionally (large) continuous plants are built outdoors and (small) batch plants indoors, it may not necessarily imply that small and intermediate-scale continuous plants should follow this mle. Product containment and contamination requirements may dictate the need for an enclosed manufacturing environment, meaning that little saving in capital may be realized. 

The critical observation from the above is that installation factors are complex for small plants, and particularly when trying to relate B2C plant costs. Attempts to scale and interrelate costs using simple exponential methods of single installation factors for the plant are unlikely to be sufficiently accurate, even for preliminary assessment. 

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The battery limits investment may be estimated by applying installation factors to the cost of individual items of equipment ... 

It should be emphasized that capital cost estimates using installation factors are at best crude and at worst highly misleading. When preparing such an estimate, the designer spends most of the time on the equipment costs, which represent typically 20 to 40 percent of the total installed cost. The bulk costs (civil engineering, labor, etc.) are factored costs which lack definition. At best, this type of estimate can be expected to be accurate to 30 percent. 

Most baghouse systems are provided as complete assemblies by the vendor. While the unit may require some field assembly, the vendor generally provides the structural supports, which in most cases are adequate. The only controllable installation factors that may affect performance are the foundation and connections to pneumatic conveyors and other supply systems. 

Carryover may cause serious problems where turbines are installed. Factors that can lead to BW carryover include ... 

Figure 14.2 Instrumentation and control installation factors as a function of scale and complexity.

Total capital cost The total capital cost of the process, services and working capital can be obtained by applying multiplying factors or installation factors to the purchase cost of individual items of equipment11,12 ... 

If an average installation factor for all types of equipment is to be used11,... 

The shortcomings of capital cost estimates using installation factors are less serious in preliminary process design if used to compare options on a common basis. If used to compare options, the errors will tend to be less serious as the errors will tend to be consistent across the options. 

Capital costs can be estimated by applying installation factors to the purchase costs of individual items of equipment. However, there is considerable uncertainty associated with cost estimates obtained in this way, as equipment costs are typically only 20 to 40% of the total installed costs, with the remainder based on factors. Utility investment, off-site investment and working capital are also needed to complete the capital investment. The capital cost can be annualized by considering it as a loan over a fixed period at a fixed rate of interest. 

What additional review of installation factors by vendor is required Review and comment on purchaser s piping and foundation drawings Observe a check of the piping, performed by parting the flanges Yes No... 

From Table 20.1, the installation factor is 2.1 so that the installed price is... 

The installation factors do not cover costs such as steam and power-generation facilities needed to support the process unit s operation or feed and product tankage. 

The installation and scaling factors were taken from the NREL modeling report (3). For the reactor, the installation factor was taken as 1.7, which is appropriate when SS316 is used as the material of construction (3). Table 2 lists equipment costs for this scenario at 2000 psi, 220°C, and 4-min residence time. Equipment costs were obtained from vendor quotations when possible however, the majority of the equipment costs were derived from NREL s economic model (3). 

The total capital investments costs was estimated on the basis of the equipment costs plus a specific installation factor and is shown in Table 3. An additional of 20% of the total installed equipment costs was included for engineering and contingency costs. The main part of these costs are due to the extraction column, EC, (this includes the price of steel to be used to make the column and the packing expenses) and the main gas compressor, C. 

Selection of linear or radial (rotary cutter) sampling is made according to mechanical installation factors often on a basis of flow quantity. Smaller flows can be sampled in a cost-effective manner by rotary cutter samplers (frequently termed "vezin design samplers, see Fig. 19-4). 

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