ESTIMATING EQUIPMENT COSTS

1 a Obtain firm bids from fabricators or suppliers (most accurate method); or

b Obtain cost values from the file of past purchase orders; proceed to step 2.
c Use equipment cost correlations. To estimate the purchase prices of process equipment as of 1st quarter 2003,
see Chapter 21 of Chemical Process Equipment, 2nd edition (book in PED Library). Then proceed to steps 4 and 6.

2 Adjust the cost data based on equipment capacity.

If the cost of a piece of equipment of size or capacity q1 is C1, then the cost of a similar piece of equipment of size or ca
can be calculated from

C2 = C1(q1/q2)n

where the value of the exponent n depends on the type of equipment.

The following table gives typical values of the exponent n for many types of equipment. In the absence of other informa
 Additional notes: FOB = free on board; DEL = delivered; INST = installed

3 Convert FOB costs into delivered (DEL) costs by using the "Landed Cost Calculator".

4 Convert purchased costs into installed (INST) costs using the factors in Table 21.3 (page 728) of Chemical Process Equ
(book in PED Library).

5 Adjust the equipment cost if the material of construction is not carbon steel. Use the following factors:
 (See also factors for material of construction in the sheet labeled "Cost Correlations".)

6 If the cost data is applicable at a past date, update it using the Chemical Engineering Plant Cost Index.
Use the following equation:

Present cost = (original cost) × (present cost index) / (cost index at time original cost was obtained)

The cost indexes are shown below.

Chemical Engineering Plant Cost Index (CEPCI)

600

2008 Projected

2007 Projected
500 Mar 2007 Preliminary

444.2
400
394.1 394.3 395.6 402.0
386.5 389.5 390.6
381.1 381.7
368.1
CEPCI

300

200

100
CEPCI
300

200

100

0
1993 1995 1997 1999 2001 2003

Year
s of 1st quarter 2003,
proceed to steps 4 and 6.

ce of equipment of size or capacity q2

the absence of other information, use the exponent 0.6.

28) of Chemical Process Equipment, 2nd edition
 t Cost Index.

l cost was obtained)

ost Index (CEPCI)

571
2008 Projected
538
2007 Projected
517.7
Mar 2007 Preliminary
499.6
468.2
444.2

395.6 402.0
2003 2005 2007 2009