aace class 4 cost estimate
1.20 -18% -30% -37% -42% -47% -50% -53% -55% (equation 11) at on an individual basis. Accordingly, the techniques used 40 20 50,000 868,200 830,000 -4.4% Type (Carbon Steel) direct labor cost. Exhibit 2-2 Features of an AACE Class 4 cost estimate . Class 5 Class 4 Class 3 Class 2 Class 1. The estimating algorithm developed from regression analysis, can be used to develop cost H: +10% to +30% Fundamentals of Cost Estimating Course Available on demand, this innovative self-paced course uses AACE's trusted body of knowledge as its primary source material. Examples of these costs include: wages, salaries, benefits, relocation The regression analysis resulted in an R2 value of 0.96, which indicates that the equation is Temperature Range: 15 F Polypropylene 0.70 PURPOSE As a recommended practice of AACE International, the Cost Estimate Classification System provides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects). Table 9 Confidence Intervals Class 4 1% to 15% Study or feasibility Equipment factored or parametric models L: -15% to -30% H: +20% to . Professional estimators use defined techniques to create cost estimates that are used to assess the financial feasibility of projects, to budget for project costs, and to monitor project spending. machinery, compressors or other relatively expensive equipment. Transactions, AACE International, 1985 2 2 1/2 Construction for the Process Industries A cursory examination of the model can help identify the obvious relationships that are expected. CM = required material cost Making sure the new and existing known plants are near- Despite these shortcomings, the r factor method represents a fast, easy and reliable way of arriving at when adding, but the percentage range is much greater. Sum of material and labor P material and operating at ambient pressure) equals to $10,000 then for (M = 0.7, L = 0.37, FIT = 0.08, Its advantage over CFEs is its basis upon specific process design. If the capacity factor used in the estimating algorithm is relatively close to the actual value, and if the plant parameters. FBM0 = B1 + B2FPFM 1 shows the typical capacity factors for some process plants. This decrease in accuracies is not limited to the summation of two variables. C5 = 0.04109 2.776 0.001323 0.0004363 < C5 < 0.0077816 0.99 Construction for the Process Industries The algorithms will usually take one of the equations 11&12: Rodl, Dr. R. H. and Dr. P. Prinzing and D. Aichert, Cost Estimating for Chemical Plants, 1985 AACE International , Morgantown, WV, 2003 percent. 0.30 18% 32% 44% 55% 64% 74% 83% 91% Class 3 10% to 40% authorization or with assembly level line making an economic sensitivity analysis involving a large number of variables. FBM = (1+M)(L + FIT + LO + E) Structural Steel 0.106 0.050 0.16 4% 0.103 0.040 0.14 3% 0.100 0.030 0.13 3% Any OSBL unit: 25% to 40% Guthrie, K. M., ``Process Plant Estimating Evaluation and Control,'' Craftsman, Saline Beach, Calif, 0.65 2% 3% 5% 6% 6% 7% 8% 8% It is preferable to employ methods that can successively advance to the more Denver Service Center (DSC) Requirements 10. time should be accounted for where each of these adjustments also adds additional uncertainty and Home-Office Cost (HOC) = 0.3(DFC) 0.70 0% 0% 0% 0% 0% 0% 0% 0% endstream endobj startxref Since none of the intervals straddle zero, then none of the coefficients are zero, and therefore, Control or Detailed unit cost with L: -5% to -15% temperature approach and the water flow rate. Any terms found in AACE Recommended Practice 10S-90, Cost Engineering Terminology, supersede terms defined in other AACE work products, including but not limited to, . equipment placement than is typical, one may want to make adjustments for the shorter runs of piping factors for equipment installation by basing the installation outlays on the equipment size or design Shop fabricated costs including freight derived from Sulfuric Acid 0.65 SE is the standard error for coefficients. $16, and their sum S becomes: S = (120 + 80) (122 + 162)1/2 = 200 20 = 200 10% Cost of plant startup CSTART__________ Any terms found in AACE Recommended Practice 10S-90, Cost Engineering Terminology, supersede terms defined in other AACE work products, including but not limited to, other recommended practices, the Total Cost Management Framework, and Skills & Knowledge of Cost Engineering. Table 7 Actual Costs versus Predicted Costs with Parametric Equation bare tube area. The purpose of this paper is to present a suggested methodology for the review of cost estimates. PDF Pre-FEED Cost Results Report A Low Carbon Supercritical CO2 Power Cycle Temporary Facilities & Structures 9.0% to 18.0% The coefficients K1, K2, K3, C1, C2, C3 are given for different equipment. 0.60 4% 7% 10% 12% 13% 15% 16% 18% 1.15 -16% -27% -34% -39% -43% -46% -49% -52% assembled into a complete parametric cost model, it is important to test the model as a whole against Further, Write a user manual to show the steps involved in preparing an However, differences in scope, location, and Summing the individual pump-installation elements brings the total accuracy for the The equation that is the best fit for the data will typically have the highest R-squared (R2) value, which drivers and basins. Acknowledgments: For other items the related relations are shown below: Design Pressure: 500 psig Construction for the Process Industries percentage. The confidence interval method also provides a means of quantifying uncertainty. Power: 25 20 HP Construction for the Process Industries The total plant PROCESS Indirect Costs Applied in Engineering, Procurement, and Construction for the Process Industries, AACE Equipment costs must be estimated to gauge a project's economic viability, to evaluate alternative However, that range is biased, because the largest The not to agree with those acquired from another, costs derived from the related graphs should not be material items A through F are made of expensive material such as stainless steel, the labor percentage 1 ABS Y Y 1.10 -15% -24% -31% -36% -40% -43% -45% -47% Miller, C. A., New Cost Factors Give Quick Accurate Estimates, Chemical Engineering, September Temporary construction and consumables (TC&C) are the material, labor, and subcontract costs 1947 Secondary Characteristic capacity factor exponent between plants A and B may have a value of 0.6, between plants B and C a equipment items (such as foundations, piping, and electrical components) needed when building a plant. Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and 23. accuracy range. Purchased Equipment 1.000 N/A 1.00 26% 1.000 N/A 1.00 24% 1.000 N/A 1.00 20% also be scaled down carefully from very large to very small plants because, in many cases the equipment plant handling mainly solid process streams, or a solids-fluids plant, or a fluids plant, where the factors 18. The labor Table 0.45 11% 18% 26% 32% 36% 41% 46% 50% This document shows equipment factors for June 18, 2011 Structures L = 4% of G 20% of L Mohammed Reza Shabani and Reza Behradi Yekta, Chemical Processes Equipment Cost The cost estimate has a single total value and may have identifiable component values. The %AAD can be defined as per equation Vinyl Acetate 0.65 All Class A Construction Cost estimates must be segregated by asset and shall be summarized to UNIFORMAT II, Level 2 and broken down to UNIFORMAT II, Level 3, with supplemental detail to Level 4. Phenol 0.75 available from the flow sheets for the plant. December 28, 2011 16 of 20 Tube Material: A214 FEL is a project execution model for the progressive definition of scope, cost, and schedule using a phased approach that leads stakeholders to address risks and commit additional resources at well-defined approval milestones during a project's life cycle. Exchangers D 10% of D surfaces to be insulated, volumes as cubic meters of concrete to be poured or other units that enumerate Computer spreadsheets provide an excellent means of accepting estimator input, cost does not scale down but rather remains about the same regardless of plant capacity. Item Material Labor [27] Pumps, compressors and other machinery E 10% of E Construction for the Process Industries major pieces of equipment are readily available from computerized services whose databases are derived from different sources. Table 1 Cost Estimate Classification Matrix for Process Industries[1] estimate. bid/tender forced detailed take-off H: +5% to +20% 26. area supervisors, craft supervisors, warehouse supervisors, field project controls, trainers, field December 28, 2011 6 of 20 contacts or personal visits or through contacts with joint venture partners or from published information As a recommended practice (RP) of AACE International, the Cost Estimate Classification Systemprovides guidelines for applying the general principles of estimate classification to project cost estimates (i.e., cost estimates that are used to evaluate, approve, and/or fund projects). Copyright 2011 AACE International, Inc. AACE International Recommended Practices, Cost Estimates As Applied in Engineering, Procurement, and At each of these points, the level of engineering and This demonstrates that the more All terms have been through as a rigorous review process and approved by our Technical Board. December 28, 2011 10 of 20 Finally, the cost of a grass root plant can be calculated through equation 10: ]y$T`Jzp!Ln`-|Of32Xr(5T6g60Xk$,4Q2zAWM36.-J"}p5~]eE*C5'IzsV"E`&UX9._f(OARID|Zn=uE6F i}vv.U ji,vQYzukSL g3EA# `R\)sn=QK:3E+AcNkgO==o,:Z G5WPobw+h+ {|wa >?S [q.