CHEMICAL ENGINEERING 252 instrumentation costs for each piece of equipment are costed separately. Detailed costing is only justified if the cost data available are reliable and the design has been taken to the point where all the cost items can be identified and included. Typical factors for the components of the capital cost are given in Table 6.1. These can be used to make an approximate estimate of capital cost using equipment cost data published in the literature. In addition to the direct cost of the purchase and installation of equipment, the capital cost of a project will include the indirect costs listed below. These can be estimated as a function of the direct costs. Indirect costs 1. Design and engineering costs, which cover the cost of design and the cost of "engineering" the plant: purchasing, procurement and construction supervision. Typically 20 per cent to 30 per cent of the direct capital costs. 2. Contractor's fees, if a contractor is employed his fees (profit) would be added to the total capital cost and would range from 5 per cent to 10 per cent of the direct costs. 3. Contingency allowance, this is an allowance built into the capital cost estimate to cover for unforeseen circumstances (labour disputes, design errors, adverse weather). Typically 5 per cent to 10 per cent of the direct costs. battery 1 within the ancillary said to be The indirect cost factors are included in Table 6.1. The capital cost required for the provision of utilities and other plant services will depend on whether a new (green field) site is being developed, or if the plant is to be built on an existing site and will make use of some of the existing facilities. The term Table 6.1. Typical factors for estimation of project fixed capital cost Item 1. Major equipment, total purchase cost f1 Equipment erection 0.4 0.45 0.50 f 2 Piping 0.70 0.45 0.20 f3 Instrumentation 0.20 0.15 0.10 f 4 Electrical 0.10 0.10 0.10 f5 Buildings, process 0.15 0.10 0.05 *f 6 Utilities 0.50 0.45 0.25 *f 7 Storages 0.15 0.20 0.25 *fg Site development 0.05 0.05 0.05 *f9 Ancillary buildings 2. Total physical plant cost (PPC) PPC = PCE (1 + f1 + ··· + f9) = PCE × f 10 Design and Engineering 0.30 0.25 0.20 fui Contractor's fee f 12 Contingency Fixed capital = PPC (1+f10+f11 + f 12) = PPC x 1.45 Fluids PCE PCE 0.15 3.40 3.15 2.80 0.05 0.05 0.05 0.10 0.10 0.10 *Omitted for minor extensions or additions to existing sites. Process type Fluids- solids 0.20 0.30 1.40 Solids PCE 1.35 6.7 The cost estimation on recent The re. equipmen wide. A v Hall et al Articles § Chemical on variou The co: be estima® reactor de into stand which car Pikulik data on t? gives a de Almost journals a the journa they ceas given in t Up to converting were quot in the UK If it ca the UK p a suitable and addin If