Costs project

The cost of off-sites ranges typically from 20 to 40 percent of the total installed cost of the plant. In general terms, the larger the plant, the larger will be the fraction of the total project cost which goes to off-sites. In other words, a small project will require typically 20 percent of the total installed cost as off-sites. For a large project, the figure will be typically up to 40 percent. 

At each phase of a project cost information is required to enable decisions to be taken. In the conceptual phase these estimates may be very approximate (e.g. + 35% accuracy), reflecting the degree of uncertainty regarding both reservoir development and surface options. As the project becomes better defined the accuracy of estimates should improve. 

Produced from Co l. Estimates of the cost of producing methanol from coal have been made by the U.S. Department of Energy (DOE) (12,17) and they are more uncertain than those using natural gas. Experience in coal-to-methanol faciUties of the type and size that would offer the most competitive product is limited. The projected costs of coal-derived methanol are considerably higher than those of methanol produced from natural gas. The cost of the production faciUty accounts for most of the increase (11). Coal-derived methanol is not expected to compete with gasoline unless oil prices exceed 0.31/L ( 50/bbl). Successful development of lower cost entrained gasification technologies could reduce the cost so as to make coal-derived methanol competitive at oil prices as low as 0.25/L ( 40/bbl) (17) (see Coal conversion processes). 

R D and technology plans can also be analyzed with widely used portfoHo analysis (47), which provides visual correlations between variables such as potential value, probabiUty of success, time-to-completion, technology maturity, and project cost as a means of optimizing the plaimed effort. The analyses can be used to redirect effort and reallocate resources as a project progresses. 

Cost—benefit analyses for adult immunizations have also been performed. Influenza immunization during the period from 1971 to 1977 resulted in over 13 million more years of life at a cost of only 63 per year of life gained. Productivity gains were estimated to have a value of 250 x 10 (148). Projected costs of pneumonia have been calculated at 3.6 times the cost of vaccination, or a savings of 141 per person is achieved among those at risk for developing pneumonia or over the age of 50 years (149). 

R. Pilcber (Appraisal and Control of Project Costs, McGraw-Hill, Maidenhead, England, 1973, p. 233) stated the main purposes of a cost control system to be ... 

Estimates which are lower than actual project costs are often the result of sizable omissions of equipment, services, or auxihaiy facilities... 

An inmortant caveat The lines are shown as continuous functions, a considerable oversimplification. Pumps, pipes, valves, and even membrane assemblies come in discrete sizes and capacities, sometimes giving a project cost with a sharper minimum and one displaced from the ideal minimum. Every process has different characteristics, but the general shape of a broad economic minimum is characteristic. 

Review Scheduling A review scheduhng procedure should be estabhshed that documents who is responsible for initiating the review and when the review(s) should occur during the project. The scheduling needs to balance availability of process information, review technique used, and the impact of potential review action items on project costs (i.e., early enough to minimize the cost of any potential changes to the process). The aclual amount of time needed for the review should also be stated in the procedure. On the basis of the number of project reviews required and the estimated time needed for each review, the project cost estimate should include the cost for project reviews as part of the total cost for the project. 

This means the engineer should strive to do the best job he can on each estimate, and apply adequate factors to keep the cost conservative. All project costs seem to grow as the project matures. Few projects reduce in scope or cost as more information is developed. A Rand Corporation study documents these cost increases as plans mature (Reference 1). 

Environmental Cost Accounting Project cost estimating principles Return on investment calculations Project cost estimating principles... 

Although waste minimization is not specifically addressed in the HAZ-WOPER standard, it does represent a management practice that supports worker and equipment decontamination. Waste minimization practices help to protect the environment and decrease project costs... 

The team should also measure the success of the pilot project itself— compared with the plan how long did each activity take, or how many new processes were developed, or how many programs and elements needed to be developed or upgraded compared with your plan This will allow you to reconsider the overall project cost estimate and revise it if necessary. 

Wiser, R., and Kahn, E. (1996). Alternative Windpower Ownership Structures Financing Terms and Project Costs LBNL-38921. Berkeley, CA Lawrence Berkeley Lahoratoiy. 

Figure 1-41. Account diagram for accumulation of project costs. Cost estimates must be made to conform to same scope basis.

Controls are expensive and quickly become outdated by the increase in technology. They are also the items that are omitted or their quality is reduced if the total project cost becomes excessive. The difference in the quality of the controls against cost can be determined and should be included as part of the project budget or application. 

The selection of the discount factor depends on the financial policy of the business, but is usually 2-3 per cent above the current interest rates. Use of discounting methods will determine whether the project cost will produce a better return than by simply investing the capital involved at the highest compound interest rate or, if the capital cost has to be borrowed, whether the rate of return is much higher than the cost of borrowing. 

There are many reasons to do careful planning for project costs. To begin with, if you overestimate costs you may lose the job before you begin because you are not competitive. A good plan includes the identification of sources of supplies and materials, and this careful research assures that the costs are realistic. The main function of a good budget is to monitor the costs of a project while it is in progress, and to avoid cost overruns. 

General and administrative The cost of management and support services such as purchasing, accounting, secretarial, etc., for time dedicated to the project. These costs are usually calculated as a percentage of project cost. 

RDX may be substituted for HMX in the formulation. Ethyl acrylate-acrylic acid copolymer (EA/AA) consists of from 90 to 96 parts acrylate and from 4 to about 10 parts acrylic acid. Those in Table 5 are about 95 parts ethyl acrylate and 5 parts acrylic acid. TVOPA is a difluoramino plasticizer for the EA/AA binders. Projected cost data for BTTN range from 1 /4 to 1 /6 that of TVOPA. 

Hydrazinium diperchlorate (HP2) is one of the higher energetic oxidizers considered for use in composite solid propints with hydrocarbon binders. Its other advantages include high density, high burning rate, and moderate projected cost. Its shortcomings include relatively poor stability to vibrational and thermal shock... 

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