Capital Cost Estimation For NZ 2004

Process Capital
Cost Estimation for

New Zealand 2004

R.W. Bouman
S.B. Jesen
M.L. Wake

W.B. Earl (Editor)

Society of Chemical Engineers New Zealand

Published by the

Society of Chemical Engineers New Zealand Inc.
PO Box 28 139
Christchurch
New Zealand

Society of Chemical Engineers New Zealand, 2005

Bouman, R W, Jesen, S B, Wake, M L; Earl, W B(Editor)
Process Capital Cost Estimation for New Zealand 2004

ISBN 0-473-10257-9 Paperback
ISBN 0-473-10258-7 CDRom

The information in this book is given in good faith and any views expressed are those of the authors and not
necessarily of their organisations. The authors have attempted to compile accurate capital cost estimation
data and summarise key cost estimating methods. Since they have no control over its use or misuse, neither
the authors, the firms who so generously supplied data nor SCENZ accept any legal liability for the methods or
data presented in this publication.
ii

Acknowledgments
The management committee of the Society of Chemical Engineers New Zealand and the editor are very
grateful to all who provided assistance with the production of this publication. This help is greatly appreciated.
We are particularly indebted to the authors, Reuben Bouman, Scott Jesen and Maria Wake for their efforts
and to David Holmes for his work on many of the graphs and Selwyn Jebson for helpful suggestions at the
outset. Especial thanks go to the equipment suppliers, consultancy companies and end users who
contributed information used in this project.

Preface
This publication is designed for chemical and process engineers and will allow study accuracy cost
estimations to be performed based on New Zealand derived cost data. Cost data plots for common pieces of
process equipment and capital cost estimation methodologies relevant to New Zealand industry are provided
herein. The last capital cost estimation booklet relevant to the New Zealand process industry was produced ten
years ago by Jebson and Fincham (1994) on behalf of The Chemical Engineering Group, a subsidiary of IChemE
and IPENZ. The Chemical Engineering Group has now evolved into the Society of Chemical Engineers New
Zealand (SCENZ).

The capital cost estimation data presented in this publication was collected from New Zealand equipment
suppliers, consultancy firms and end users over the period January 2004 to March 2005. Contrary to earlier
editions of this publication, suppliers of information have not been listed, since many provided data only on the
basis that they were not named. Since the 1994 publication the growth of the global market has seen the
quantity of process equipment imported into New Zealand increase significantly. Overseas cost data therefore
provides a valid representation of the costs associated with many types of process equipment used in New
Zealand and this includes a significant amount of cost data from an American publication, Ulrich (2004). This
data has been used with permission of John Wiley & Sons Inc.

iii
Contents

1 NOMENCLATURE ..................................................................................................................................... 1
2 INTRODUCTION........................................................................................................................................ 2
3 CAPITAL COST ESTIMATING METHODS ............................................................................................... 4
3.1 Methods Used in Capital Cost Estimation............................................................................................ 4
3.2 Limitations ........................................................................................................................................... 5
3.3 Deriving Composite Costs ................................................................................................................... 6
3.4 Scaling Factors.................................................................................................................................... 7
3.5 Factorial Method.................................................................................................................................. 8
3.6 Definitive/Detailed Method................................................................................................................. 14
4 INFLATION............................................................................................................................................... 15
5 UNCERTAINTY........................................................................................................................................ 17
6 TOTAL CAPITAL INVESTMENT ............................................................................................................. 18
6.1 Working Capital ................................................................................................................................. 18
6.2 Commissioning.................................................................................................................................. 18
7 CAPITAL COST ESTIMATING PROCEDURE ........................................................................................ 20
7.1 Total Equipment x One Factor (Lang Factor Method)........................................................................ 20
7.2 Main Plant Item Costs x Several Sub Factors ................................................................................... 21
8 COST DATA............................................................................................................................................. 22
8.1 Information on Cost Data Charts ....................................................................................................... 22
8.2 Index to Cost Data Charts ................................................................................................................. 23
9 REFERENCES......................................................................................................................................... 65
10 APPENDICES....................................................................................................................................... 66

1 ECONOMIC NOMENCLATURE
1

1 Nomenclature
a power factor (size or capacity exponent)
C total equipment erected cost
c total installed cost of MPI in carbon steel
cx total installed cost of MPI in exotic material
Ca cost of the item at time a
Cb cost of the item at time b
CFC fixed capital investment
CFi fixed capital investment for an innovative process
CTC total capital investment
Cr known reference cost of a plant or equipment Sr
CS cost of the plant or equipment at size S
F indirect costs factor
fc installation subfactor for civil work
FC contingency factor for technical uncertainty
fel installation subfactor for electrical work
fer installation subfactor for main plant item erection
fi installation subfactor for instruments
FL Lang Factor appropriate to process being costed
fl installation subfactor for lagging
fm material factor
fp installation subfactor for piping, ducting & chutes including erection
fsb installation subfactor for structures and buildings
Ia relevant index at time a
Ib relevant index at time b
MPIC main plant item cost in carbon steel
MPICx main plant item cost in exotic material
S size of plant or equipment
Sr reference size of plant or equipment

2 INTRODUCTION
2

2 Introduction
The fixed capital investment in any project has a large influence on profitability as this capital must ultimately
be repaid. Since profitability is a key consideration in any project, knowledge of the fixed capital investment
required is an essential part for any process development. The fixed capital is so called because money
invested in this way cannot easily be converted back into cash. This publication focuses on capital cost
estimation, and does not cover operating costs although these can be more important than capital costs in
many cases in determining profitability.

It is also important to remember the uncertainty when talking about a cost estimate. Capital cost estimation
comes in many forms depending on the accuracy required, resources available, and the details known. Five
levels of capital cost estimation were first suggested by the American Association of Cost Engineers in 1958.
These levels have been widely accepted, and are shown in Table 2.1 along with their accuracy and cost.
Table 2.1 Type of Capital Cost Estimation, Accuracy and Cost
Estimation Type

Probable Range
of Accuracy

Cost of Estimation
[% of project expenditure]

Order of Magnitude

30 to 50%

0 to 0.1%

Study

20 to 30%

0.1 to 0.2%

Preliminary

10 to 25%

0.4 to 0.8%

Definitive

5 to 15%

1 to 3%

Detailed

2 to 5%

5 to 10%

Since detailed cost estimation is expensive, cost estimation is usually a stepwise process. This starts with an
order of magnitude or study estimate, and progresses if the numbers continue to look economically attractive.
Ulrich (1984) states: After a flow sheet and a preliminary technical package have been prepared, the next
logical and chronological step is to determine the price of a chemical plant. Thus, the major focus of this
publication is study cost estimates, although methods for order of magnitude and preliminary estimation are
also briefly discussed.

2 INTRODUCTION
3

Information required for a study estimate includes:
Preliminary sizing of equipment
Plant location
Preliminary process flow diagrams (PFD)
Process plant materials of construction
Approximate sizes and types of buildings and structures.
Initial estimates for quantities of utilities required
Preliminary flow sheet for piping requirements
Preliminary motor and pump list

On this list, preliminary sizing of equipment is the most crucial; as the other points are often only included as
factors and only approximations are needed to estimate these. Peters et al (2003, p 237) provide a more
detailed description of the requirements at each of the estimating stages.

Some key recent texts in capital cost estimation are:
Gerrard (2000)
Ulrich (2004)
Peters et al (2003)

3 CAPITAL COST ESTIMATING METHODS
4

3 Capital Cost Estimating Methods
3.1 Methods Used in Capital Cost Estimation
There are many different methods of capital cost estimation. Table 3.1 briefly describes some of the more
common methodologies.
Table 3.1 Methods Used in Capital Cost Estimation

Method Name

Reference

Description

Step Counting

Gerrard (2000)
pg 21-31
Wilson (1971)

This approach to obtaining order-of-magnitude capital cost
estimates is based on establishing a model which relates basic
process parameters, such as capacity or throughput,
temperature, pressure, and MOC, to total erected cost. This also
takes into account the number of main plant items or the
number of functional units involved. Gerrard (2000)

Fuzzy Matching

Petley &
Edwards
(1995)

This method uses the fact that Plants with similar specifications
(capacities, process conditions, etc.) have similar costs,
therefore using the capital cost of the existing plant that is
most like the proposed plant as an estimate of the cost of the
new plant. [They] have developed fuzzy matching, a method
based on fuzzy logic, which finds the most like plant from a
database of existing plants by quantifying the closeness of their
specifications. Petley & Edwards (1995)

Power Law
Estimating or
Scaling

Gerrard (2000)
pg 31-38
Peters et al
(2003) pg
254-5

Power law methods permit cost estimates to be made rapidly
by extrapolating cost data from one scale to another. Thus the
total cost of a proposed plant can be derived from historical data
by using:
The total cost of a similar (reference) plant;
A comparatively simple breakdown of the costs of a similar
plant;
Costs for parts of related plants that can be assembled to
represent the proposed plant. Gerrard (2000)

Factorial Estimating

Gerrard (2000)
pg 38-47
Peters et al
(2003) pg
244-9

Requires determination of the delivered equipment cost; these
are most commonly found using power law estimation or a data
book such as this one. Then a factor is, or several factors are,
applied to account for many extra costs. Factors can either be
applied to individual equipment items or the sum of all of them.
Figure 2 summarises the types of factorial methods, and section
3.3 has several lists of factors that can be used.

Computer
Estimating

Gerrard (2000)
pg 49

Computer cost estimation is a convenient way to combine some
or all of the above cost estimation techniques into a user friendly
package. Such computer packages contain internal databases
of historical plant costs, power law correlations, and factorials.
The program evaluates an entered plant design and returns the
most feasible cost estimation based on the given data.

5

3.2 Limitations
The accuracy of a particular capital cost estimate is limited by the applicability of the cost data to the scenario
being evaluated. Some issues to be aware of which may affect the accuracy of the estimate are listed below.

Date: As all data is to some extent historical, it is important to know how old it is. Indices can be used to
update the value; however, indices are always approximations. Indices are discussed in section 2.

Location: The location of the equipment is likely to affect price. Equipment could be: free on board (FOB)
at a major port, delivered or ex-works.

Ancillaries: The inclusion of items like control systems and pumping will also affect the price. These items
are necessary for the unit to operate and could well be included in the quoted price if packaged together.
It is important to know what is included so as to avoid costing something twice or not at all. For example,
if a control system is included in the equipment price the purchase cost should not be adjusted with an
instrumentation factor.

Duplication and Omission: An item may be costed twice in separate places or omitted altogether.

Extremes: Some equipment may be required to withstand extreme conditions, such as temperature or
pressure. This will often add extra cost to that item not included in a standard price. Figure 3.1 shows
factors that can be applied to increase the cost of a pressure vessel. Pressure factors are often quoted
with the price data, while adjustment for extreme temperature and corrosion are often made in the
material of construction.

1
10
1 10 100 1000
Pressure [barg]
P
r
e
s
s
u
r
e

F
a
c
t
o
r
,

F
p

Figure 3.1 Pressure factor for increasing the cost of a pressure vessel at a range of pressures

6

Materials of Construction (MOC): Various MOC are used in the process industry ranging from aluminium
though steel to zirconium. By far the most common MOC for process plants are carbon steel and
stainless steel (usually 304 & 316). Most equipment is priced using these MOC. If a different MOC is
required, factors can again be used to adjust the price. A MOC factor for a particular material may vary
depending on the type of equipment. Breuer & Brennan (1994) list a number of useful factors from
various sources.

Size Range: Many cost data plots are valid for a specific size range only. If extending above the stated
size range it should be assumed that multiple units would be required. Conversely, below the minimum
size, costs are not likely to decrease markedly and any unit will be similar in cost regardless of size.

Currency: Many of the texts referenced in this publication are American and thus use $US. A graph and
corresponding data for New Zealand exchange rates to major industrial currencies can be found in
Appendix A3. The owner of the publication is encouraged to keep this information up to date. Exchange
rates which are updated daily can be found on the Reserve Bank of New Zealand website. Appendix A4
describes how to access exchange rate data on this website.

3.3 Deriving Composite Costs
If price data for an item cannot be found, one can break the item down into its parts and cost each one
separately. For example, distillation columns are often priced by separately pricing the trays and a pressure
vessel; likewise a reactor can be a combination of a tank and a mixer.

7

3.4 Scaling Factors
Scaling factors are usually related through a power law relationship. The scaling factor rule, sometimes also
known as the power law, six-tenths or two-thirds rule, states that the ratio of the cost of two equivalent pieces
of equipment, equals the ratio of the sizes raised to the power of a, where a is often about
6
/10 or
2
/3 (thus the
name), especially for vessels. For some plant however, this may range from 0.3 to 1.0. This is shown by
equation 1; where CS is the cost of the plant or equipment to be estimated at the size, S. Cr is the known
reference cost of a plant or equipment at the known reference size, Sr.

a
r r
S
S
S
C
C
= (1)
This rule can be used to estimate the cost of a whole plant or individual items of processing equipment. Order-
of-magnitude estimates for various types of processing plants can be made using equation 1 in conjunction
with Table 3.2 Peters et al (2003, p243) and Coulson et al (1999, p258) also give similar tables for individual
items of processing equipment.
Table 3.2 Power Law Estimation for Various Types of Processing Plants

Plant Size,
Sr
Plant Size
Limits, S

Fixed
Capital, Cr
Power
factor, a Product or Process

Process Remarks

[10
3
t.yr
-1
] [10
3
t.yr
-1
] [10
6
NZ$]
Acetic Acid CH3OH and CO catalytic 10 3 - 30 7.3 0.68
Acetone Propylene - copper chloride catalyst 100 30 - 300 36 0.45
Ammonia Steam reforming 100 30 - 300 27 0.53
Ammonium Nitrate Ammonia and nitric acid 100 30 - 300 5.6 0.65
Butanol Propylene, CO and H2O catalytic 50 17 - 150 44.9 0.4
Chlorine Electrolysis of NaCl 50 17 - 150 31.5 0.45
Ethylene Refinery gases 50 17 - 150 14.6 0.83
Ethylene Oxide Ethylene catalytic 50 17 - 150 56.2 0.78
Formaldehyde (37%) Methanol catalytic 10 3 - 30 18 0.55
Glycol Ethylene and chlorine 5 2 - 15 16.9 0.75
Hydrofluoric Acid Hydrogen fluoride and H2O 10 3 - 30 9 0.68
Methanol CO2, natural gas and steam 60 20 - 180 14.6 0.6
Nitric Acid (conc.) Ammonia catalytic 100 30 - 300 7.3 0.6
Phosphoric Acid Calcium phosphate and H2SO4 5 2 - 15 3.7 0.6
Polyethylene (high den.) Ethylene catalytic 5 2 - 15 18 0.65
Propylene Refinery gases 10 3 - 30 3.6 0.7
Sulfuric Acid Sulfur catalytic 100 30 - 300 3.6 0.65
Urea Ammonia and CO2 60 20 - 180 8.8 0.7

Data has been adapted from Peters et al (2003) so that it is applicable to New Zealand in 2004. One
advantage of the power law method is seen when the suitable capacity parameter is plotted versus cost on log-log
graph paper. The line obtained from the relationship expressed in equation 1 is straight with slope a.

8

This is the form of graphical cost-capacity correlations found in many standard sources, and it is the form of data
presentation used later in this publication. These plots have several advantages over an equation, such as:
1. The limits of applicability can easily be defined by the length of the curve.
2. Changes in slope, which may occur over a wide capacity range, can be shown.
3. Costs can be read directly from the chart without computation.

When using the power law to cost individual items, one must be aware that knowing the purchase cost of all the
items, each of a specific capacity, is not the final answer to the capital cost estimate. Equipment must be
transported to the plant site, placed on foundations, and installed with piping, electrical connections,
instrumentation, housing and insulation, as required. Thus, the installed cost of equipment is usually several times
greater than the purchase cost. A preliminary estimate of the total installed cost can be obtained by applying
factors to the total equipment cost which account for the unknown costs associated with installation. This is the
idea behind the factorial method.

3.5 Factorial Method
Factorial methods are used to amplify the total equipment cost (also know as the sum of the Main Plant Item
Costs, MPIC) to what is known as the total fixed capital investment. This amplification factor is typically 2.5 to
5.5 times the sum of the total equipment cost. All factorial methods start with the prices of the Main Plant Items
(MPIs) as a base, either averaged, totalled, or operated on individually and then summed. These can usually
be found by scaling using the scaling factors (section 3.4) with some relevant reference data, or graphical data
such as found is this publication.

Although factorial methods yield more accurate estimates than power law methods, there is a large variation in
accuracy between different factorial methods, ranging from 20% to 50%. The accuracy achieved depends
on whether one factor or many are used, and whether the factors are applied to the sum of the MPIs or each
individual MPI. Figure 3.2 summarises the options and their respective accuracies.

Figure 3.2 Accuracy Relationship of Four Factorial Methods

Increasing Accuracy
I
n
c
r
e
a
s
i
n
g

A
c
c
u
r
a
c
y

Starting Point

Total Equipment Cost

Individual Equipment Costs

Multiply by one factor made
up of many sub-factors for
various categories

Multiply by one factor
depending on type

F
a
c
t
o
r
i
a
l

M
e
t
h
o
d

9

3.5.1 Total Equipment x One Factor
C MPI F C
L
= (2)
Lang (1947 & 1948) was the first to propose the use of a factor that when multiplied by the total equipment
cost gives an estimated value to the fixed capital investment required. Lang factors vary markedly depending
on the nature of the process. For example, in a paper mill, which contains expensive, precise, high-speed
machinery, a larger fraction of the cost is invested in the original equipment. Installation is relatively less
expensive, thus the Lang factor is small. In an oil refinery, process vessels and equipment themselves are
somewhat simpler, but installation of piping, insulation and instruments is more expensive, creating a larger
Lang factor. To account for this variability, Peters et al (2003) suggest the overall Lang multiplication factors
shown in Table 3.3.

Table 3.3 Lang Factors for Various Types of Plant

Lang
Factors

Plant Type

4.0

solids processing plant
(e.g. cement plant)

4.3

solid-fluid processing plant
(e.g. fertilizer plant)

5.0

fluid processing plant
(e.g. oil refinery)

3.5.2 Total Equipment Several Sub Factors
( ) C MPI f f C
b a
+ + + = ... 1 (3)
For a processing plant, fixed capital investment can be broken down into many categories. To achieve an
extra level of accuracy over the Lang factors, these categories can be assigned individual factors, according to
what is known. The direct and indirect costs typically include the categories listed below.

Direct costs
Purchased equipment
Installation
Instrumentation and controls
Piping
Electrical
Buildings
Site preparation
Service facilities
Land (if purchase is required)

10

Indirect costs
Engineering and supervision
Construction expenses
Contractors fees, Overheads
Contingency, Insurance

Direct costs are those for which something tangible is produced, while indirect costs are necessary, but do not
produce any physical results. Peters et al (2003, Table 6-1) describe these categories in greater detail.
Factors for these categories as a percentage of the total fixed capital investment are also given by Peters et al
(2003, Table 6-3). To convert these into the type of factors used in equation (3), divide the percentage to be
used for a category, by the percentage to be used for the purchased equipment. Perry (1997, Table 9-44) also
details these categories. Table 3.4 gives a number of factors for different types of processing plant based on
data presented by Perry (1997, Table 9-51).
Table 3.4 Lang factors for Various Plant Installations and Plant Types

Grass-roots plants

Battery-limit installations

Details
Solids
processing
Solid-fluid
processing
Fluid
processing
Solids
processing
Solid-fluid
processing
Fluid
processing
Equipment (delivered) 1 1 1 1 1 1
Equipment, Installation 0.19-0.23 0.39-0.43 0.76 0.45 0.39 0.27-0.47
Piping 0.07-0.23 0.30-0.39 0.33 0.16 0.31 0.66-1.20
Structural foundations - - 0.28 - - 0-0.13
Electrical 0.13-0.25 0.08-0.17 0.09 0.1 0.1 0.09-0.11
Instruments 0.03-0.12 0.13 0.13 0.09 0.13 -
Battery-limits building and service 0.33-0.50 0.26-0.35 0.45 0.25 0.39 0.18-0.34
Excavation and site preparation 0.03-0.18 0.08-0.22 - 0.13 0.1 0.1
Auxilliaries 0.14-0.30 0.48-0.55 Included 0.4 0.55 0.7
Total physical plant 2.37 2.97 3.04 2.58 2.97 3.5
Field expense 0.10-0.12 0.35-0.43 - 0.39 0.34 0.41
Engineering - 0.35-0.43 0.41 0.33 0.32 0.33
Direct plant costs 2.48 3.73 3.45 3.3 3.63 4.24
Contractor's fees, overhead, profit 0.30-0.33 0.09-0.17 0.17 0.17 0.18 0.21
Contingency 0.26 0.39 0.36 0.34 0.36 0.42
Total fixed-capital investment 3.06 4.27 3.98 3.81 4.17 4.87

11

3.5.3 Main Plant Item Costs One Factor

=
i
i i
MPIC f F C (4)
Another factorial method of approximately equal accuracy to that mentioned previously is to treat each MPI
separately, with one installation factor per MPI. This method is less common. However, it does account for
variations in costs associated with installing different types of MPI. Some factors are shown in Table 3.5.

Table 3.5 Lang Factors for Various Types of Equipment

Lang Factors

Equipment

2.24

Furnace/boiler

3.37

Shell and tube heat exchanger

2.46

Air-cooled heat exchanger

4.20

Vertical vessel

3.24

Horizontal vessel

3.47

Pump and driver

3.24

Compressor and driver

1.41

Tanks

Once these have been applied, factors for the indirect costs are applied to the sum, seen as F in equation 4.

3.5.4 Main Plant Item Costs Several Sub Factors
( )
+ + + =
i
i b a
MPIC f f F C
i i
... 1 (5)
To achieve even greater accuracy in estimation, the engineering activities necessary to install a specific MPI
can be assessed separately. Factors for erection, piping, instruments, electrical, civil, structures and lagging
are applied to each individual MPI. Typical values for these factors are shown in Table 3.6. Indirect costs are
accounted for by applying a factor F, which represents overhead costs and contingency allowance.

12

Table 3.6 Sub-Factors for individual main plant items

Lang Factor

Scenario

Value of Individual Main Plant Item
(Vessels, furnaces, machines, drives and materials handling equipment)
Standardised to carbon steel basis NZ$ (Dec 2003)

>
$960K

$320K to
$960K

$130K to
$320K

$64K to
$130K

$19K to
$64K

$9.6K to
$19K

< $9.6K
Main plant items
(delivered) 1 1 1 1

1

1

1

Much of site erection included in purchase cost of equipment such as large tanks

0.013

0.03

0.04

0.06

0.075

0.09

0.25

Average erection

0.05

0.08

0.1

0.11

0.13

0.15

0.38

Equipment involving some site fabrication such as large pumps requiring lining up
and serpentine coolers

0.08

0.1

0.13

0.15

0.18

0.2

0.48

Main plant items
erection
(fer)

Equipment involving much site fabrication or fitting such as large
distillation columns and furnaces

0.3

0.38

0.4

0.56

0.67

0.77

1.13

Ducting and chutes

0.03

0.05

0.1

0.18

0.28

0.43

0.59

Small bore piping or service piping only

0.06

0.13

0.26

0.43

0.69

1.04

1.4

Average bore piping and service piping such as predominantly liquid piping

0.16

0.26

0.4

0.66

0.98

1.4

1.76

Large bore piping and service piping such as predominantly gas and vapour piping
or
Average bore piping with complex system such as much manifolding and
recirculation

0.2

0.33

0.49

0.78

1.11

1.58

1.94

Piping, ducting
and chutes
including erection
(fp)

Large bore piping with complex system such as much manifolding and recirculation

0.25

0.41

0.61

0.96

1.38

1.96

2.43

Local instruments only

0.03

0.04

0.06

0.13

0.24

0.43

0.75
- one controller and instruments

0.09

0.13

0.22

0.34

0.49

0.65

1
- two controllers and instruments

0.13

0.2

0.33

0.45

0.6

0.79

1.14

Instrument
(fi)
- three or more controllers and instruments

0.18

0.33

0.43

0.6

0.77

0.96

1.38

13

Table 3.6 Continued
Lang Factor Scenario
Value of Individual Main Plant and Item
(Vessels, furnaces, machines and drives and materials handling equipment)
Standardised to carbon steel basis NZ$ (Dec 2003)

> $960K

$320K to
$960K

$130K to
$320K

$64K to
$130K

$19K to
$64K

$9.6K to
$19K

< $9.6K
Lighting only 0.03 0.03 0.03 0.06 0.1 0.13 0.19

Lighting and power for ancillary drives such as conveyors, stirred vessels and air
coolers

0.1

0.14

0.2

0.26

0.34

0.41

0.6

Lighting and power excluding transformers and switchgear e.g. equipment off
site or machine drives such as pumps, compressors and crushers

0.13

0.18

0.25

0.33

0.43

0.51

0.63

Electrical
(fel)
Lighting and power including transformers and switchgear for machine main
drives such as pumps, compressors and crushers

0.19

0.25

0.34

0.46

0.6

0.74

1

Average civil work, including plant and structure foundations, floors and services

0.08

0.1

0.14

0.17

0.22

0.28

0.35

Above average civil work, complicated machine blocks, special floor protection,
elevator pits in floors and considerable services.

0.15

0.21

0.31

0.4

0.5

0.6

0.85

Civil
(fc)

Multiply civil factor by 1.3 to allow for piling plant and structure foundations

Negligible structural work and buildings

0.012

0.025

0.025

0.04

0.05

0.06

0.08

Open air plant at ground level with some pipe bridges and minor buildings

0.06

0.08

0.1

0.14

0.17

0.21

0.26

Open air plant within a structure

0.14

0.24

0.31

0.41

0.5

0.59

0.74

Plant in a simple covered building

0.19

0.29

0.39

0.48

0.56

0.69

0.85

Structures and
buildings
(fsb)

Plant in an elaborate building or a major structure within a building

0.35

0.48

0.63

0.76

0.9

1.06

1.38

Lagging for service pipes only

0.012

0.03

0.04

0.06

0.1

0.15

0.23
Average amount of hot lagging on pipes and vessels

0.03

0.04

0.08

0.14

0.21

0.31

0.38
Above average amount of hot lagging on pipes and vessels

0.04

0.06

0.1

0.17

0.26

0.35

0.4

Lagging
(fl)

Cold lagging on pipes and vessels

0.06

0.1

0.15

0.25

0.31

0.41

0.56

14

3.6 Definitive/Detailed Method
A definitive cost estimate is a detailed cost analysis of all aspects of a plant. Such an estimate is performed as
a final step to show project commitment to a client and is often a final step prior to approval to begin
construction.

A definitive/detailed cost estimate should return a project cost accurate to within 10% for a definitive estimate
and within 5% for a detailed estimate. This is a costly and labour intensive process. To generate a definitive
estimate, up to 3% of the total project cost will have been invested in the design and costing. For a final
detailed estimation, over 5% of the total project cost may have been spent on the design and costing. This
estimate requires substantial detail of the project to be known. By this stage detailed plant and utility drawings
should be completed. Details on the site, including layout, roads, rail lines, and buildings should be finalised.
Full details on piping, instrumentation, electrical requirements, insulation and painting should be established.
Costs of construction and detailed construction planning must also be performed. The cost estimate is based
on all aspects of the project.

All suppliers and service providers are known and the cost estimate is a collaboration of supplier prices for the
required materials and components. The equipment costs are broken down into shopping list form with
individual items and quantities and their quoted costs from the appropriate suppliers shown. All other non-
material costs such as engineering, management and construction are included in this cost list to give a total
project cost.

4 INFLATION
15

4 Inflation
Preliminary capital cost estimates are, by necessity, prepared from historical price data. Thus, corrective indices
are needed to adjust historical prices for inflation (or, in rare instances, deflation) to reflect the pricing at the date at
which the cost estimate will apply. Indices are generally applied used equation 6. Ca is the cost of the item at time
a, and Cb is the cost of the item at time b. Similarly Ia is the relevant index at time a, and Ib is the relevant index at
time b.

b
a
b
a
I
I
C
C
= (6)

Statistics New Zealand keeps a large number of indices monitoring a large number of goods and services.
The index most relevant to users of this publication is the Capital Goods Price Index (CGPI), and in particular
the sub-index called the Plant, Machinery and Equipment Index (PMEI). At the time of publishing the most
recent PMEI was 988 for the December 2004 quarter. The base quarter for the CGPI, in which all indices were
1000, was September 1999. The PMEI is further divided into 32 subcategories, each with their own indices.
960
980
1000
1020
1040
1060
1080
1100
1120
1140
1160
1180
1200
1220
1240
1260
Sep-98 Sep-99 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08
Date
I
n
d
e
x
Plant, machinery and equipment
Metal tanks, reservoirs and containers
Steam generators
Machinery for mining, quarrying and construction
Machinery for food, beverage and tobacco processing
Electric motors, generators and transformers

Figure 4.1 New Zealand Plant, Machinery & Equipment Cost Indices

4 INFLATION
16

If possible, the appropriate subcategory indices should be used, as the values are likely to be more applicable
to the item being inflated. For example, if the PMEI was used to inflate the cost of a metal tank the index being
used takes into account changes in the price of furniture and computer machinery. However, if the
subcategory metal tanks, reservoirs, and containers is used, the only contributors are milking holding tanks
and gas cylinders. Appendix A1 lists actual indices from the CGPI.

If the construction cost of the building to house the plant equipment is significant, when compared with the
equipment, then consideration of construction cost indices should be made. The CGPI sub-index non-
residential building index can help here. The CGPI also includes subcategories monitoring pipeline work and
site improvements.

To maintain currency of the index, the reader is encouraged to add to the plot in Figure 4.1 and table in
Appendix A1 in this publication as the data becomes available. For the purposes of preliminary cost estimates,
escalation by the cost index is considered reliable for time jumps of ten years or less. Care must be taken to
check that in the intervening time the base of the index and subcategory weightings have not been altered.
The easiest way to find this data is to go to the Statistics New Zealand website. Appendix A2 describes how
to find this data. The Statistics New Zealand website includes information on weighting and use of their
indices.

5 UNCERTAINTY
17

5 Uncertainty
Although Lang Factors of 3 to 5 are typically found using the techniques discussed in this booklet, some engineers
use values as large as 8 or 9 for certain projects. Despite the requirement for accuracy, these engineers would
seem to be very aware that management cheerfully accepts economic surprises in only one direction - actual
costs that are less than predicted. Thus, safety or contingency factors (Fc) are introduced to provide a cushion. A
contingency factor of 1.15 is often applied to the estimated fixed capital investment. If several innovative or
technologically new process steps are proposed for a project, then a higher contingency factor is recommended.
Figure 5.1 suggests a range of factors depending on the number of innovative steps, indicated by the grid area.
Unfortunately, one danger of these factors is that a viable project will be squelched because of excessively
conservative predictions.

Number of Innovative Steps

Figure 5.1 Contingency Margins for Prospective Plants Containing Innovative Process Steps
If a project has one or more such unproven process steps, the capital cost estimated by preceding techniques
is multiplied by the appropriate factor or factors from Figure 3.1. Within acceptable limits of a preliminary
estimate, the techniques for estimation detailed in section 7 should be sufficient with no additional contingency
margin if the process steps are commercially established.

An innovative step is defined as a process sequence that has not been employed successfully by those
associated with the prospective project. Inaccessible information held by competitors who will not share their
experience and data does not constitute successful commercial operation in this sense. The soundness and
accuracy of these safety factors can certainly be improved with experience. Meanwhile, these numbers
provide theoretically defensible values as a starting point.

6 TOTAL CAPITAL INVESTMENT
18

6 Total Capital Investment
In addition to the fixed capital invested in a project, additional capital must be invested to get the plant
operating. This additional capital investment (working capital) provides funds for expenses such as raw
materials and wages until income is received from product sales. It also covers the costs of commissioning the
plant.

6.1 Working Capital
Working capital is the additional capital that must be invested into a project to cover the costs of raw materials
required to begin production, wages and salaries for staff, and purchased services such as electricity and
water supplies.
The value of working capital usually incorporates:
1 to 3 months of wages and salaries and purchased services
Half the total storage capacity of raw materials and finished products stored on site
1 to 3 months of fuel requirements for the site

The working capital is around 15% of the fixed capital investment but is often larger for small projects and
smaller for large ones. The value of working capital can vary widely, depending on the type of plant. Plants
keeping large inventories of raw materials and product will generally have a higher working capital than low
inventory processes. The value of working capital must be increased with inflation and other plant changes
such as increases in production capacity. The working capital invested in a project is usually completely
recovered in the final year of operation for the project.

6.2 Commissioning
The commissioning of a plant can be broken down into 4 steps:
Pre-Commissioning. This step involves an overall check to ensure that the system is complete and ready
to operate. This usually involves an overall system inspection, cleaning, and pressure and leak testing.
Mechanical Commissioning. This is a check of the mechanical aspects of a plant such as pumps,
agitators and valves. This ensures that valves work, pumps operate correctly and all associated electrical
equipment operates correctly.
Process Commissioning. This commissioning stage ensures that all process instrumentation and control
systems function correctly. It tests that the plant functions correctly as a whole.
Start-up. The plant is fed the appropriate process materials, production is started and the system is
brought up to full operation.

The costs involved in plant commissioning include both fixed and variable costs. Fixed costs associated with
the commissioning of a plant are maintenance and supervisory staff and general plant overheads. Variable
costs associated with commissioning are raw materials, utilities, and other additional test materials that may
only be used at start-up. The initial start-up stage may be inefficient or not produce a saleable product, which
will also increase variable costs. Commissioning is often supervised by a specialist engineering

6 TOTAL CAPITAL INVESTMENT
19

commissioning team. Such supervision is expensive and adds another variable cost to the commissioning
process. The construction contractor may also supply training for permanent staff and operators, which is
usually included as another variable commissioning cost.

Commissioning times can vary from a couple of days to months depending on the plant type and experience
of commissioning staff. This can make estimation of the commissioning costs very difficult to do accurately.
Commissioning costs generally vary between 1% and 10% of the total fixed capital investment. The actual
commissioning cost varies depending on the plant size, complexity and originality. An accurate estimate of this
cost is best attained by analysis of the commissioning costs for other similar plants.

7 CAPITAL COST ESTIMATING PROCEDURE
20

7 Capital Cost Estimating Procedure
7.1 Total Equipment cost One Factor (Lang Factor Method)
C MPI F C
L
=

1. List each of the main plant items and the associated capacity and determine the main plant item cost
(MPIC) using the Cost Data Plots (Section 8) or the SCENZ Cost Data CD.

Main Plant Item Description

Capacity

Main Plant Item Cost
Eg Dosing pump (Diaphragm) 5 m
3
/hr $10,000

MPIC

2. Sum all of the main plant item costs to obtain the total main plant item cost MPIC.

3. Adjust the MPIC using PMEI inflation indices (refer to Appendix A1) to reflect the pricing at which the
cost estimate will apply.
b
a
b
a
I
I
C
C
=

4. Multiply the adjusted total main plant item cost MPIC by a Lang Factor (Table 3.6) appropriate to the
type of plant being assessed to yield the preliminary fixed capital investment.
C MPI F C
L FC
=

5. If there are any innovative steps in the proposed project, multiply the preliminary fixed capital
investment by the appropriate contingency factor (Figure 5.1) to yield the final estimate of the fixed
capital investment required.
TC C FC
C F C
i
=

Note: Some of the plots in this publication present the installed cost of the equipment items rather than the
purchase cost MPIC. Where the installed cost is presented, the cost of these items should be summed
separately and have an alternative Lang factor applied which is smaller in magnitude than the usual factor.

7 CAPITAL COST ESTIMATING PROCEDURE
21

7.2 Main Plant Item Costs x Several Sub Factors

( )
+ + + =
i
i b a
MPIC f f F C
i i
... 1
The following method is taken from Gerrard (2000).

1. List all of the main plant items (MPI)
For every MPI
2. Estimate its size or rating

3. Estimate its purchase cost (MPIC)

4. Specify its material factor

5. Convert MPICx to carbon steel basis

6. Convert MPI carbon steel basis estimated cost to $(January 2000) (date at which installation
subfactors apply) using PMEI inflation indices (refer to Appendix A1)

b
a
b
a
I
I
C
C
=
7. Select appropriate sub-factors for equipment installation from Table 3.6.

8. Calculate its installed cost using either

( ) ( ) [ ]
l sb c el i er p
f f f f f f f MPIC c + + + + + + + = 1

or

( ) ( ) [ ]
m l sb c el i er p x x
f f f f f f f f MPIC c / 1 + + + + + + + =

9. Calculate total equipment erected cost using

+ =
x
c c C
10. Adjust C from $(January 2000) to current $, using PMEI inflation indices (refer to Appendix A1).

11. To obtain the fixed capital investment (CFC) add 15% for engineering design and supervision and 10%
for management overheads. An amount for contingency can be added here too (eg for innovative
steps).
12. To obtain total capital investment (CTC), add 5% for commissioning costs and 15 % for working capital
provision.

8 COST DATA
22

8 Cost Data
8.1 Information on Cost Data Charts
Purchase costs (and in some cases installed costs) for process equipment commonly used in New Zealand
are illustrated in the following section of this publication. The graphs are organised according to generic
categories of equipment. Table 8.1 serves as an index to the graphs. It contains the figure and page numbers
to aid in locating a particular item.

The data are plotted on logarithmic coordinates with the data tending to fall in straight lines of slopes equal to
the size exponent defined by the scaling factor rule (see section 3.4). In keeping with modern engineering
practice all figures are presented in SI units and all costs are in New Zealand dollars. All prices are based on
a Capital Goods Price Index (Plant, Machinery and Equipment Group Index) = 988 (December 2004).

A full description of the exact nature of the items costed in each plot is provided following the figure number,
located immediately below the plot. Special note must be taken of the messages contained in the description,
as they will be crucial in decisions of applicability of the plot to the item presented for costing.

A regression analysis of each line plotted on the graphs is provided below the appropriate figure. It contains a
regression equation, which can be used as an alternative to reading a value off the plots, with the restriction
that the same units for the capacity parameter as those in the graph are used. It is also important to ensure
that the applicability of the relationship is not jeopardised by attempting to apply a capacity value beyond that
indicated by the range of the line on the plot. The R-squared values and degrees of freedom are presented
for the New Zealand data sets to give an indication of the size of the data set and the quality of the regression
equation.

The cost data plots in this publication provide a valid means of making preliminary design estimates.
Extrapolation of the data beyond the limits of the ranges presented is not recommended. The cost data plots
should not be employed for the purpose of estimates beyond the preliminary design stage.

8 COST DATA
23

8.2 Index to Cost Data Charts
Table 8.1 Index to Cost Data Charts
Equipment Figure Page
Blowers & Compressors Figure 8.1 25
Boilers
Hot Water Figure 8.2 26
Steam Figure 8.3 27
Conveyors
Auger & Apron Figure 8.4 28
Bucket & Belt Figure 8.5 29
Pneumatic Figure 8.6 30
Dryers
Freeze Figure 8.7 31
Spray Figure 8.8 32
Electric Motors & Drives

Electric Motors
Figure 8.9
33
Variable Speed Drives (1-phase)
Figure 8.10
34
Figure 8.11
35
Evaporators

Falling Film Figure 8.12 36
Fans Figure 8.13 37
Heat Exchangers
Plate Brazed (Small) Figure 8.14 38
Plate Brazed (Large) Figure 8.15 39
Plate - Gasketed Figure 8.16 40
Shell and Tube Figure 8.17 41
Industrial Ovens Figure 8.18 42
Ion Exchangers Figure 8.19 43
Membrane Equipment Figure 8.20 44
Mixers
Agitators Figure 8.21 45
Heavy Duty Mixing Figure 8.22 46
Process Vessels
Horizontal process vessels Figure 8.23 47
Vertical process vessels Figure 8.24 48
Pumps
Centrifugal, Reciprocating & Progressive Figure 8.25 49
Dosing Figure 8.26 50
Vacuum Figure 8.27 51

8 COST DATA
24

Equipment Figure Page
Refrigeration Units Figure 8.28 52
Separators
Centrifuges Figure 8.29 53
Clarifiers & Thickeners Figure 8.30 54
Classifiers Figure 8.31 55
Cyclones Figure 8.32 56
Decanters Figure 8.33 57
Liquid Filters Figure 8.34 58
Vibrating Screens Figure 8.35 59
Size Reduction Equipment
Crushers Figure 8.36 60
Mills Figure 8.37 61
Storage Vessels
Liquid Storage Tanks Figure 8.38 62
Tower Packing Figure 8.39 63
Water Cooling Towers Figure 8.40 64

8 COST DATA
25

Blowers & Compressors
PMEI = 988 (December 2004)

Figure 8.1 Purchased equipment costs of blowers and compressors. Cost of drives are excluded. Note
that where , ws = shaft work and ei = efficiency.

Blower / Compressor Type Equation

Reciprocal Diaphragm MPIC = 1.96 x 10
3
wf + 11.5 x 10
3

Reciprocal Piston MPIC = 0.944 wf
2
+ 1.37 x 10
3
wf + 9.75 x 10
3

Centrifugal (turbo) and Axial MPIC = 962 wf + 14.0 x 10
3

Twin Lobe, Rotary Screw, Sliding Vane MPIC = 4.63 x 10
3
wf
0.676

Data Source: US - Ulrich (2004)
10,000
100,000
1,000,000
10,000,000
10 100 1,000 10,000
Fluid Power
w
f
[kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Reciprocal
Piston
Reciprocal
Diaphragm
Centrifugal
(turbo) & Axial
Twin Lobe,
Rotary Screw,
Sliding Vane
s i
p
p
f
w vdp m w & & & = =

2
1

8 COST DATA
26

Boilers
Hot Water

Figure 8.2 Purchased equipment costs for hot water boilers.

The regression equations for coal, diesel, electric, oil/gas and LPG fired hot water boilers are:

Hot Water Boiler Type Equation R
2
df

Electric MPIC = 334 Q
0.813
0.994 1

Oil/Gas MPIC = 52.4 Q + 4.99 x 10
3
1.00 1

Coal MPIC = 42.0 Q + 24.9 x 10
3
0.991 2

Diesel MPIC = 19.9 Q + 5.66 x 10
3
0.988 2

LPG MPIC = 21.1 Q + 7.38 x 10
3
0.982 2

Data Source: NZ
1,000
10,000
100,000
10 100 1,000 10,000
Heating Duty
Q [kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Coal
Oil/Gas
Electric
Diesel
LPG

8 COST DATA
27

Boilers
Steam
Figure 8.3 Purchased equipment costs for field erected water-tube steam boilers. Coal fired boiler data
is for an operating pressure of 4MPa gauge. Oil and gas fired boiler data is for an operating pressure of 2MPa
gauge.
The regression equations for coal and oil or gas fired boilers are:

Boiler Fuel Equation R
2
df

Coal MPIC = 10.0 Q
1.25
0.995 3

Oil / Gas MPIC = 532 Q
0.805

Data Source: NZ (Coal Fired)
US - Ulrich (2004) (Oil & Gas)
1,000,000
10,000,000
100,000,000
1,000,000,000
10,000 100,000 1,000,000
Heating Duty
Q [kW]
P
u
r
c
h
a
s
e

C
o
s
t
M
P
I
C

[
N
Z
$
]
Coal
Oil and Gas

8 COST DATA
28

Conveyors
Auger & Apron

Figure 8.4 Purchase costs for auger and apron conveyors. Motor drives are not included.

The regression equations for auger and apron conveyors are:
Conveyor Type
Auger Diameter /
Apron Width Equation

Auger

D = 0.15

MPIC = 2.99 x 10
3
d
0.658

Auger

D = 0.30

MPIC = 2.33 x 10
3
d
0.522

Auger

D = 0.46

MPIC = 1.93 x 10
3
d
0.418

Apron

W = 0.50

MPIC = 2.56 x 10
3
d
0.674

Apron

W = 1.00

MPIC = 3.78 x 10
3
d
0.650

Apron

W = 1.50

MPIC = 4.67 x 10
3
d
0.663

Apron

W = 2.0

MPIC = 4.80 x 10
3
d
0.654

1,000
10,000
100,000
1 10 100
Conveying Distance
d [m]
P
u
r
c
h
a
s
e

C
o
s
t
M
P
I
C

[
N
Z
$
]
Auger Diameter
Apron Width
2.0
1.5
1.0
0.5
0.46
0.15
0.30
Apron Width [m]
Auger Diameter [m]

8 COST DATA
29

Conveyors
Belt & Bucket

Figure 8.5 Purchased equipment costs for belt and bucket conveyors. Motor drives are not included.

Conveyor Type

Bucket / Belt Width

Equation

Bucket

W = 0.15

MPIC = 4.49 x 10
3
d
0.386

Bucket

W = 0.30

MPIC = 5.22 x 10
3
d
0.440

Bucket

W = 0.50

MPIC = 6.69 x 10
3
d
0.405

Belt

W = 0.50

MPIC = 2.78 x 10
3
d
0.764

Belt

W = 1.00

MPIC = 3.71 x 10
3
d
0.764

Belt

W = 1.50

MPIC = 4.22 x 10
3
d
0.767

Belt

W = 2.0

MPIC = 4.94 x 10
3
d
0.772

$1,000
$10,000
$100,000
$1,000,000
1 10 100
Conveying Distance
d [m]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Belt Width
[m]
Bucket
Width
0.50
0.30
0.15
2.0
1.5
1.0
0.5

8 COST DATA
30

Conveyors
Pneumatic
Figure 8.6 Purchased equipment costs for pneumatic conveyors. Drives are included.

Solid Mass Flow Rate Equation

0.2 kg/s MPIC = 9.41 x 10
3
d
0.259

0.5 kg/s MPIC = 18.6 x 10
3
d
0.218

1 kg/s MPIC = 26.7 x 10
3
d
0.239

2.0 kg/s MPIC = 40.1 x 10
3
d
0.248

5.0 kg/s MPIC = 69.9 x 10
3
d
0.241

10 kg/s MPIC = 104 x 10
3
d
0.245

20 kg/s MPIC = 141 x 10
3
d
0.289

50 kg/s MPIC = 267 x 10
3
d
0.249

1,000
10,000
100,000
1,000,000
1 10 100
Conveying Distance
d [m]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
50
0.5
0.2
1
2
5
10
20
Solid Mass Flow
Rate (kg/s)

8 COST DATA
31

Dryers
Freeze Dryers

Figure 8.7 Purchased equipment cost for freeze dryers.

Equation R
2
df

Freeze Dryer MPIC = 16.2 x 10
3
m
0.564
0.999 1

Data Source: NZ
10,000
100,000
1,000,000
10,000,000
10 100 1,000 10,000
Ice Condenser Capacity
m [kg ice]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]

8 COST DATA
32

Dryers
Spray Dryers

Figure 8.8 Purchased equipment cost and installed cost* for spray driers. Note * signifies installed
cost but this does not include piping, valves or instrumentation.

The regression equations for purchased and installed costs of spray dryers are:

Spray Dryer Status Equation R
2
df

Purchase Cost MPIC = 3.00 x 10
6
mw
0.653
0.977 3

Installed Cost cx = 8.00 x 10
6
mw
0.505
0.968 2

Data Source: NZ
1,000,000
10,000,000
100,000,000
1 10 100
Water Evaporation Rate
m
w
[tonne/hr]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
1,000,000
10,000,000
100,000,000
I
n
s
t
a
l
l
e
d

C
o
s
t
*

c
x

[
N
Z
$
]
Uninstalled
Installed

8 COST DATA
33

Electric Motors

Figure 8.9 Purchased equipment costs for 3 phase, 4 pole (1800 rpm) electric motors with foot
mountings.

The regression equations for electric motors are:

Enclosure Type Equation R
2
df

Totally Enclosed (IP54 / IP55) MPIC = 80.4 P + 166 0.988 38

Explosion Proof MPIC = 185 P + 718 0.999 4

Data Origin: NZ
1
10
100
1,000
10,000
100,000
0 1 10 100 1,000
Motor Rating
P [kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Explosion Proof
Totally Enclosed

8 COST DATA
34


Figure 8.10 Purchased equipment costs for variable speed drives suitable to control single phase motors of
the indicated shaft powers.

The regression equations for single phase variable speed drives are:

Application Equation R
2
df

Simple Machine & Automation MPIC = 239 P + 387 0.995 2

Complex Machines & Coordinated Multi-Drive MPIC = 232 P + 440 0.998 2

Data Source: NZ
100
1,000
0.1 1 10
Typical Motor Rating
P [kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Complex Machines &
Coordinated Multi-Drive
Applications
Simple Machine &
Automation Applications

8 COST DATA
35


Figure 8.11 Purchased equipment costs for variable speed drives suitable to control three phase motors of
the indicated shaft powers.

The regression equations for three phase variable speed drives are:

Application Equation R
2
df

Simple Machine & Automation MPIC = 170 P + 606 0.979 3

Complex Machines & Coordinated Multi-Drive MPIC = 202 P + 712 0.993 6

HVAC / Centrifugal Fan & Pump MPIC = 128 P + 1.05 x 10
3
0.991 9

Data Source: NZ
100
1,000
10,000
100,000
0.1 1 10 100
Typical Motor Rating
P [kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Complex Machines &
Coordinated Multi-Drive
Applications
Simple Machine &
Automation Applications
HVAC / Centrifugal
Fan & Pump
Applications

8 COST DATA
36

Evaporators
Falling Film
Figure 8.12 Purchased equipment cost for falling film evaporator.
The regression equation for falling film evaporators is:

Evaporator Type Equation R
2
df

Falling Film MPIC = 632 x 10
3
mw
0.597
0.989 2

Data Source: NZ
1,000,000
10,000,000
100,000,000
1 10 100 1,000
Water Evaporation
m
w
[tonne/hr]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]

8 COST DATA
37

Fans
Figure 8.13 Purchased equipment costs of axial and centrifugal fans. Costs of electric motor drives are
included. Costs should be multiplied by appropriate pressure factor. (Figure 3.1)

The regression equations for centrifugal and axial fans are:

Fan Type

Equation

Centrifugal

Radial

MPIC = 771 v + 2.40 x 10
3

Axial

Vane

MPIC = 388 v + 981

Axial

Tube

MPIC = 255 v + 667

Table 8.2 Correction Factors for Fan Operating Pressure

Pressure
[kPa gauge]

Fp - Centrifugal

Fp - Axial
1 1.00 1.00
2 1.15 1.15
4 1.30 1.30
8 1.45 -
16 1.60 -

100
1,000
10,000
100,000
1,000,000
0 1 10 100 1,000
Gas Flow
v [m
3
/s]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Axial - Vane
Axial - Tube
Centrifugal - Radial

8 COST DATA
38

Heat Exchangers
Plate Brazed (Small)

Figure 8.14 Purchased equipment costs for small brazed plate heat exchangers. Costs based on copper
brazing and cover plates, connections and plates fabricated from stainless steel AISI 316.

The regression equations for small brazed plate heat exchangers are:

Heat Exchanger Type Flow Capacity Equation R
2
df

Plate - Brazed (Small) Up to 3.6 m
3
/hr MPIC = 578 A + 114 1.00 2

3
/hr MPIC = 412 A + 274 0.997 18

3
/hr MPIC = 272 A + 247 0.997 12

Data Source: NZ
100
1,000
10,000
0.1 1 10
Heat Transfer Area
A [m
2
]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Up to 3.6 m
3
/hr
Up to 8.1 m
3
/hr
Up to 12.7 m
3
/hr

8 COST DATA
39

Heat Exchangers
Plate Brazed (Large)

Figure 8.15 Purchased equipment costs for large brazed plate heat exchangers. Costs based on copper
brazing and cover plates, connections and plates fabricated from stainless steel AISI 316.

The regression equations for large brazed plate heat exchangers are:

Heat Exchanger Type Flow Capacity Equation R
2
df

Plate - Brazed (Large) Up to 39 m
3
/hr MPIC = 301 A + 578 1.00 36

3
/hr MPIC = 162 A + 2.15 x 10
3
1.00 8

3
/hr MPIC = 189 A + 3.17 x 10
3
1.00 9

Data Source: NZ
1,000
10,000
100,000
1 10 100
Heat Transfer Area
A [m
2
]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Up to 39 m
3
/hr
Up to 102 m
3
/hr
Up to 140 m
3
/hr

8 COST DATA
40

Heat Exchangers
Plate - Gasketed

Figure 8.16 Purchased equipment costs for gasketed plate heat exchangers. Costs based on nitrile
gaskets, mild steel cover plates, carbon steel nozzles and stainless steel AISI 316 plates. Apply material
factor of 1.1 to obtain costs for EPDM gaskets.

The regression equations for gasketed plate heat exchangers are:

Heat Exchanger Type Flow & Rating Equation R
2
df

Plate - Gasket Up to 4 kg/sec MPIC = 574 A + 1.15 x 10
3
1.00 7
50-250 kW

3
0.994 10
300-800 kW

3
0.964 38
0.7-3.0 MW

Data Source: NZ
1,000
10,000
100,000
0.1 1 10 100
Heat Transfer Area
A [m
2
]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
D
]

Up to 4 kg/sec
50-250 kW
Up to 16 kg/sec
300-800 kW
Up to 50 kg/sec
0.7-3.0 MW

8 COST DATA
41

Heat Exchangers
Shell & Tube
Figure 8.17 Purchased equipment costs for shell and tube and double-pipe heat exchangers.

Material factors for exotic materials can be found in Ulrich (2004, Figures 5.36, p 443). Pressure factors
specific to shell and tube heat exchangers can be found in Ulrich (2004, Figure 5.37, p 444).

The regression equations for shell and tube heat exchangers are:

Heat Exchanger Type

Shell & Tube Type Equation

Shell & Tube

Double Pipe

MPIC = 2.88 x 10
3
A
0.539

Shell & Tube

Fixed Tube Sheet & U-Tube

MPIC = 1.53 x 10
3
A
0.566

Shell & Tube

Floating Head

MPIC = 1.77 x 10
3
A
0.578

Shell & Tube

Kettle Reboiler

MPIC = 3.47 x 10
3
A
0.508

Shell & Tube

Scraped Wall

MPIC = 7.90 x 10
3
A
0.964

Other Notes: Data from Ulrich (2004) linearised for presentation on log-log plot
1,000
10,000
100,000
1,000,000
0 1 10 100 1,000
Exchanger Surface Area
A [m
2
]
P
u
r
c
h
a
s
e

C
o
s
t
M
P
I
C

[
N
Z
$
]
Double Pipe
Kettle Reboiler
Fixed Tube Sheet
& U-Tube
Floating Head
Scraped Wall

8 COST DATA
42

Industrial Ovens

Figure 8.18 Purchased equipment costs for industrial ovens.

The regression equations for industrial ovens are:

Maximum Internal Temperature Equation

Industrial Ovens

Tmax = 2000 C

MPIC = 31.6 x 10
3
V
0.662

Industrial Ovens

Tmax = 1500 C

MPIC = 21.6 x 10
3
V
0.663

Industrial Ovens

Tmax = 1000 C

MPIC = 10.1 x 10
3
V
0.644

Industrial Ovens

Tmax = 500 C

MPIC = 3.00 x 10
3
V
0.653

1,000
10,000
100,000
1,000,000
10,000,000
1 10 100 1,000 10,000
Oven Internal Volume
V [m
3
]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
2000
Maximum Internal
Temperature (C)
1500
1000
500

8 COST DATA
43

Ion Exchangers

Figure 8.19 Purchase cost of complete unit, including auxiliary brine tank and controls, valves and piping.

The regression equation for ion exchange units is:

Equation R
2
df
Ion Exchange Units

MPIC = 254 V
0.658
0.999 1

Data Source: NZ
1,000
10,000
10 100
Volume of Resin Bed
V [L]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]

8 COST DATA
44

Membrane Equipment
Ultrafiltration Plant
Figure 8.20 Installed equipment cost for ultrafiltration plants. Note * signifies installed cost but this does
not include piping, valves or instrumentation.
The regression equation for installed* ultrafiltration plants is:

Spiral Membrane Plant Type Equation R
2
df

Ultrafiltration MPIC = 15.2 x 10
3
v
0.947
0.998 1

Data Source: NZ
100,000
1,000,000
10,000,000
100,000,000
10 100 1,000
Volmetric Flow
v [m
3
/hr]
I
n
s
t
a
l
l
e
d

C
o
s
t
*

c

[
N
Z
$
]
Ultrafiltration

8 COST DATA
45

Mixers
Agitators & Inline Mixers

Figure 8.21 Purchased equipment costs for agitators and inline mixers. Cost of agitators includes motor,
speed reducer and impeller ready for installation in a vessel. Stuffing box seals are suitable at pressure up to
10 bar (gauge). Mechanical seals are suitable for toxic or critical fluids at pressure up to 80 bar (gauge).

The regression equations for agitators and inline mixers are:

Mixer Type Equation
Agitator Helical or Anchor MPIC = 2.20 x 10
3
P + 21.5 x 10
3

Agitator Mechanical Seal MPIC = 1.70 x 10
3
P + 14.5 x 10
3

Agitator Stuffing Box MPIC = 1.50 x 10
3
P + 6.65 x 10
3

Agitator Open Tank MPIC = 1.13 x 10
3
P + 3.91 x 10
3

Mixer Inline MPIC = 7.03 x 10
3
P
0.467

$1,000
$10,000
$100,000
$1,000,000
1 10 100 1000
Power Consumption
P [kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Inline Mixer
Agitator- Helical or Anchor
Agitator - Mechanical
Seal
Agitator - Stuffing Box
Agitator - Open Tank

8 COST DATA
46

Mixers
Heavy Duty Mixers
Figure 8.22 Purchased equipment costs (including drives) for heavy-duty mixers of doughs, pastes and
powders.

The regression equations for agitators and inline mixers are:

Heavy Duty Mixer Type Equation

Rotor MPIC = 28.9 x 10
3
P
0.406

Extruder MPIC = 295 P + 59.5 x 10
3

Muller MPIC = 7.60 x 10
3
P
0.681

Roll MPIC = 2.97 x 10
3
P
0.630

Kneader MPIC = 208 P + 51.8 x 10
3

Ribbon MPIC = 3.22 x 10
3
P
0.504

1,000
10,000
100,000
1,000,000
1 10 100 1,000 10,000
Power Consumption
P [kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Rotor
Ribbon
Roll
Kneader
Muller
Extruder

8 COST DATA
47

Process Vessels
Horizontal Vessels
Figure 8.23 Purchased equipment costs for horizontally oriented process vessels. Costs are for carbon
steel construction and internal pressure less than 4 bar (gauge).

The regression equations for horizontally oriented process vessels are:

Vessel Orientation Vessel Diameter Equation

Horizontal

D = 0.3 m

MPIC = 1.14 x 10
3
L
0.701

Horizontal

D = 0.5 m

MPIC = 1.76 x 10
3
L
0.701

Horizontal

D = 1.0 m

MPIC = 3.71 x 10
3
L
0.667

Horizontal

D = 1.5 m

MPIC = 5.21 x 10
3
L
0.680

Horizontal

D = 2.0 m

MPIC = 5.92 x 10
3
L
0.767

Horizontal

D = 2.5 m

MPIC = 6.33 x 10
3
L
0.803

Horizontal

D = 3.0 m

MPIC = 6.56 x 10
3
L
0.887

Horizontal

D = 4.0 m

MPIC = 8.87 x 10
3
L
0.855

1,000
10,000
100,000
1,000,000
1 10 100
Length
L [m]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
1.0
0.3
0.5
1.0m
2.0
2.5
3.0
4.0
1.5
Length [m]

8 COST DATA
48

Process Vessels
Vertical Process Vessels
Figure 8.24 Purchased equipment costs for vertically oriented process vessels. Costs are for carbon steel
construction and internal pressure less than 4 bar (gauge).
The regression equations for vertically oriented process vessels are:

Vessel Orientation Vessel Diameter Equation

Vertical Vessel

D = 0.3 m

MPIC = 2.64 x 10
3
h
0.985

Vertical Vessel

D = 0.5 m

MPIC = 3.26 x 10
3
h
0.950

Vertical Vessel

D = 1.0 m

MPIC = 4.72 x 10
3
h
0.895

Vertical Vessel

D = 1.5 m

MPIC = 5.79 x 10
3
h
0.928

Vertical Vessel

D = 2.0 m

MPIC = 8.80 x 10
3
h
0.847

Vertical Vessel

D = 2.5 m

MPIC = 12.5 x 10
3
h
0784

Vertical Vessel

D = 3.0 m

MPIC = 10.9 x 10
3
h
0.870

Vertical Vessel

D = 4.0 m

MPIC = 17.6 x 10
3
h
0.774

Data Origin: US - Ulrich (2004) linearised for presentation on log-log plot
1,000
10,000
100,000
1,000,000
1 10 100
Height
h [m]
P
u
r
c
h
a
s
e

C
o
s
t
M
P
I
C

[
N
Z
$
]
Internal
diameter [m]
4.0
0.3
0.5
1.0
1.5
2.0
2.5
3.0

8 COST DATA
49

Pumps
Centrifugal, Positive Displacement & Progressive Cavity Pumps
Figure 8.25 Purchased equipment costs and installed* costs for centrifugal, positive displacement and
progressive cavity pumps.
* signifies installed cost but this does not include piping, valves and instrumentation.

The regression equations for centrifugal, positive displacement and progressive cavity pumps are:

Pump Type Equation R
2
df

Centrifugal - Installed cx = 111 v + 3.71 x 10
3
0.996 2

Centrifugal - Uninstalled MPICx = 127 v + 1.72 x 10
3
0.994 1

Positive Displacement cx = 548 v + 13.0 x 10
3
0.994 1

Progressive Cavity cx = 4.22 x 10
3
v
0.379
0.894 1

Data Source: NZ
1,000
10,000
100,000
0 1 10 100 1,000
Volumetric Flow
v [m
3
/hr]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C
x

[
N
Z
$
]
1,000
10,000
100,000
I
n
s
t
a
l
l
e
d

C
o
s
t
*

c
x

[
N
Z
$
]
Progressive Cavity
Centrifugal
Centrifugal
(Installed)
Positive Displacement
0.1

8 COST DATA
50

Pumps
Dosing Pumps

Figure 8.26 Purchased equipment cost for stainless steel piston, plastic diaphragm and mono-peristaltic
pumps.

Dosing Pump Type Equation R
2
df

Piston - Stainless Steel MPICx = 458 v + 6.79 x 10
3
0.994 2

Mono / Peristaltic MPICx = 615 v + 3.81 x 10
3
0.997 2

Diaphragm MPICx = 1.24 x 10
3
v
0.603
0.914 6

Data Source: NZ
1,000
10,000
100,000
0.1 1 10 100
Volumetric Flow
v [m
3
/hr]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C
x

[
N
Z
$
]
Piston
Diaphragm
Mono / Perstaltic

8 COST DATA
51

Pumps
Vacuum Pumps

Figure 8.27 Installed cost* for rotary vane and liquid ring vacuum pumps.
signifies installed cost but cost of piping piping, valves and instrumentation is not included.

The regression equations for vacuum pumps are:

Vacuum Pump Type Equation R
2
df

Rotary Vane c = 375 v + 20.4 x 10
3
0.964 1

Liquid Ring c = 1.30 x 10
3
v
0.687
0.995 1

Data Source: NZ
1,000
10,000
100,000
1 10 100 1,000
Volumetric Flow
v [m
3
/hr]
I
n
s
t
a
l
l
e
d

C
o
s
t
*

c

[
N
Z
$
]
Rotory Vane
Liquid Ring

8 COST DATA
52

Refrigeration Units
Figure 8.28 Purchase costs for air-cooled mechanical refrigeration units, complete except for the
absorptive heat exchanger.

The regression equations for air-cooled mechanical refrigeration units are:

Coolant Temperature Equation

Refrigeration Unit

Tcoolant > +5C

MPIC = 1.01 x 10
3
q
0.846

Refrigeration Unit

Tcoolant = -5C

MPIC = 2.61 x 10
3
q
0.806

Refrigeration Unit

Tcoolant = -15C

MPIC = 7.19 x 10
3
q
0.715

Refrigeration Unit

Tcoolant = -25C

MPIC = 19.1 x 10
3
q
0.633

Refrigeration Unit

Tcoolant = -35C

MPIC = 61.7 x 10
3
q
0.524

Refrigeration Unit

Tcoolant = -45C

MPIC = 177 x 10
3
q
0.445

Refrigeration Unit

Tcoolant = -55C

MPIC = 424 x 10
3
q
0.418

1,000
10,000
100,000
1,000,000
10,000,000
1 10 100 1,000 10,000
Rate of Heat Absorbtion
q [kJ/s]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
-5C
-25C
-35C
-45C
-15C
-55C
Coolant Temperature [C]
+5C

8 COST DATA
53

Separators
Centrifuges & Liquid Cyclones

Figure 8.29 Purchased equipment costs for tubular and sedimentation centrifuges and liquid cyclones.

The regression equations for tubular and sedimentation centrifuges and liquid cyclones are:

Separator Type Equation

Tubular Centrifuges MPIC = 15.0 x 10
6
v
0.603

Sedimentation Centrifuges MPIC = 949 x 10
3
v
0.286

Liquid Cyclones MPIC = 30.8 x 10
3
v
0.490

100
1,000
10,000
100,000
1,000,000
0.0001 0.001 0.01 0.1
Volumetric Feed Rate
v [m
3
/s]
P
u
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Tubular
Centrifuge
s
Sedimentation
Centrifuges
Liquid
Cyclones

8 COST DATA
54

Separators
Clarifiers & Thickeners

Figure 8.30 Purchased equipment cost for clarifiers and thickeners.
The regression equation for clarifiers and thickeners is:


Clarifiers & Thickeners MPIC = 13.0 x 10
3
D
1.09

10,000
100,000
1,000,000
10,000,000
1 10 100 1,000
Diameter
D [m]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]

8 COST DATA
55

Separators
Classifiers

Figure 8.31 Purchased equipment costs for air and rake/spiral classifiers.

The regression equations for air and rake/spiral classifiers are:

Classifier Type Equation

Air MPIC = 73.7 x 10
3
m
0.502

Rake & Spiral MPIC = 2.77 x 10
3
m
1.33

1,000
10,000
100,000
1,000,000
10,000,000
1 10 100
Solids Feed Rate
m [kg/s]
P
u
r
c
h
a
s
e

C
o
s
t
M
P
I
C

[
N
Z
$
]
Air
Rake & Spiral

8 COST DATA
56

Separators
Cyclones

Figure 8.32 Purchased equipment costs for cyclones.

The regression equation for cyclones is:

Separator Type Equation R
2
df

Cyclone MPIC = 2.33 x 10
3
v
0.912
0.990 9

Data Source: NZ
1,000
10,000
100,000
0.1 1 10 100
Flow
v [m
3
/s]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]

8 COST DATA
57

Separators
Decanters

Figure 8.33 Purchased equipment costs for decanters (helical-conveyor, scroll & solid bowl).
The regression equation for decanters is:


Decanter (helical conveyor, scroll, solid bowl) MPIC = 260 x 10
3
m
0.363

$10,000
$100,000
$1,000,000
0.01 0.1 1 10 100
Dry Solids Feed Rate
m [kg/s]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]

8 COST DATA
58

Separators
Liquid Filters

Figure 8.34 Purchased equipment costs for liquid filters (complete with auxiliaries such as feed pumps, in-
process storage, precoat tanks, vacuum and compressed air systems).
The regression equations for liquid filters are:

Liquid Filter Type Equation

Simple Cartridge & Liquid/Solid Bag Filters MPIC = 717 A + 958

Automated Cartridge & Liquid/Solid Bag Filters MPIC = 5.18 x 10
3
A
0.323

Filter Press (simple plate & frame) MPIC = 2.91 x 10
3
A
0.720

Filter Press (automated, enclosed, continuous) MPIC = 2.23 x 10
3
A + 7.90 x 10
3

Shell & Leaf MPIC = 1.37 x 10
3
A + 7.71 x 10
3

100
1,000
10,000
100,000
1,000,000
0.1 1 10 100 1000
Nominal Filter Area
A [m
2
]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Simple Cartridge &
Liquid/Solid Bag Filters
Automated Cartridge &
Liquid/Solid Bag Filters
Shell & Leaf
Filter Press
(automated, enclosed,
continuous)
Filter Press
(simple plate & frame)

8 COST DATA
59

Separators
Vibratory Screens

Figure 8.35 Purchased equipment costs for vibratory screens.

The regression equation for vibratory screens is:


Vibratory Screens MPIC = 924 P
0.547

100
1,000
10,000
100,000
1 10 100
Power Consumption
P [kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]

8 COST DATA
60

Crushers

Figure 8.36 Purchased equipment costs for crushers including electric motor drives.

The regression equation for crushers is:

Crusher Type Capacity Range Equation

Jaw 1 - 60 kg/s MPIC = 22.6 x 10
3
m
0.611

Jaw 60 - 1000 kg/s MPIC = 3.41 x 10
3
m
1.07

Roll 1 - 130 kg/s MPIC = 17.0 x 10
3
m
0.630

Impact 10 - 400 kg/s MPIC = 1.06 x 10
3
m
1.18

10,000
100,000
1,000,000
10,000,000
0.1 1 10 100 1000
Capacity
m [kg/s]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Jaw
Roll Impact

8 COST DATA
61

Mills

Figure 8.37 Purchased equipment costs for mills, including electric motor drives.
The regression equations for mills are:

Mill Type Equation

Stirred or Vibrating Ball MPIC = 201 P + 16.3 x 10
3

Roll Press MPIC = -0.257 P
2
+ 356 P + 3.96 x 10
3

Rod & Ball MPIC = -0.00626 P
2
+ 87.7 P + 9.22 x 10
3

Hammer (high speed) MPIC = 109 P + 1.19 x 10
3

100
1,000
10,000
100,000
1,000,000
0 1 10 100 1,000 10,000
Power Consumption
[kW]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
]
Rod & Ball
Mills
Roll Press
High Speed
Hammer Mills
Stirred or Vibrating
Ball Mills

8 COST DATA
62

Storage Vessels
Liquid Storage Tanks

Figure 8.38 Purchased equipment costs for liquid storage tanks.
Further cost data on storage vessels can be found in Ulrich (2004, Figure 5.61 pg 457)

The regression equations for liquid storage tanks are:

Tank Type Equation R
2
df

Stainless Steel MPICx = 2.48 x 10
3
V
0.597
0.995 5

Polyethylene MPICx = 358 V
0.609
0.969 8

Fibre Reinforced Plastic MPICx = 960 V + 7.00 x 10
3
0.985 2

Timber MPICx = 555 V
0.795
0.993 9

Data Source: NZ
100
1,000
10,000
100,000
1,000,000
0.1 1 10 100 1000 10000
Tank Volume
V [m
3
]
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C
x

[
N
Z
$
]
Stainless Steel
Polyethylene
FRP
Timber

8 COST DATA
63

Tower Packing

Figure 8.39 Purchase cost (per cubic metre) for polypropylene, mild steel and stainless steel tower packing.

Packing Material (mm) Equation
Mild Steel (38x31) MPIC = 2.42 x 10
3
/ m
3

Polyproplyene (65x40) MPIC
x
= 680 / m
3

Stainless Steel (38x31) MPIC
x
= 4.65 x 10
3
/ m
3

Data Source: NZ
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Mild Steel Polypropylene Stainless Steel
Packing Material
P
u
r
c
h
a
s
e

C
o
s
t

M
P
I
C

[
N
Z
$
/
m
3
]

8 COST DATA
64

Water Cooling Towers

Figure 8.40 Installed equipment cost for cooling towers. Price includes delivery, erection, foundation, basin,
pumps and drives. Inlet water temperature of 45C, outlet temperature of 30C and 25C wet bulb
temperature.

Equation
Water Cooling Towers

c = 842 x 10
3
q
0.679

10,000
100,000
1,000,000
10,000,000
0.01 0.1 1 10
Cooling Water Capacity
q [m
3
/s]
I
n
s
t
a
l
l
e
d

C
o
s
t

c

[
N
Z
$
]

9 REFERENCES
65

9 References
Jebson, R. S., Fincham, A., 1994, Process Capital Cost Estimation for New Zealand 1994 (The Chemical
Engineering Group, NZ)

Gerrard, A. M., 2000, Guide to Capital Cost Estimating, 4
th
edition (IChemE, UK)

Brennan, D. J., 1998, Process Industry Economics, (IChemE, UK)

Ulrich, G. D., 1984, A Guide to Chemical Engineering Process Design and Economics, (John Wiley & Sons,
Inc, NY)

Peters, M. S., & Timmerhaus, K. D., 2003, Plant Design and Economics for Chemical Engineers, 6
th
Edition,
(McGraw-Hill, Inc., New York) (TP155.5.P482)

Lang, H. J., 1948, Simplified approach to preliminary cost estimates, Chemical Engineering, vol. 55, no. 6, pgs
112-3

Brennan, D. J., & Golonka, K.A., 2002, New factors for capital cost estimation in evolving process designs,
Chemical Engineering Research and Design, vol. 80, no.6, pgs 579-86

Green, D. W., & Maloney, J. O., (2003) Perrys Chemical Engineering Handbook, (McGraw Hill Book
Company, New York)

Breuer, P.L, & Brennan, D.J., (1994) Capital Cost Estimation of Process Equipment, The Institution of
Engineers, Australia

APPENDICES
66

10 Appendices

A1 PLANT, MACHINERY & EQUIPMENT INDICES .................................................................................... I
A2 ACCESSING CURRENT & HISTORICAL INDICES DATA................................................................... II
A3 HISTORICAL EXCHANGE RATES FOR NEW ZEALAND................................................................... III
A4 ACCESSING CURRENT & HISTORICAL EXCHANGE RATES............................................................ V

A1 PLANT, MACHINERY & EQUIPMENT INDICES
I

A1 Plant, Machinery & Equipment Indices
2000 2001 2002 2003 2004
ASSET TYPE
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
Plant, machinery & equipment 1015 1020 1039 1082 1072 1076 1076 1078 1076 1074 1068 1060 1041 1034 1022 1014 1009 1008 1000 998
Glass & glass products 949 953 964 970 970 936 936 961 962 928 928 965 969 970 970 970 970 970 972 952
Furniture 998 993 984 996 997 1006 1013 1016 1025 1033 1038 1048 1060 1060 1058 1026 1031 1040 1044 1051
Other manufactured articles 1005 1017 1024 1060 1070 1077 1080 1084 1090 1106 1109 1120 1112 1111 1110 1107 1107 1107 1111 1115
Structural metal products 1003 1010 992 1011 1023 1034 1042 1043 1043 1059 1059 1057 1063 1035 1035 1061 1064 1100 1174 1174
Metal tanks, reservoirs & containers 1028 1131 1152 1164 1166 1167 1149 1143 1143 1165 1109 1099 1111 1123 1122 1122 1120 1117 1129 1157
Steam generators 970 970 973 999 1023 1023 1023 1023 1023 1030 1026 1026 1045 1048 1048 1058 1041 1076 1119 1180
Other fabricated metal products 1009 1014 1031 1050 1052 1082 1050 1051 1048 1060 1069 1069 1067 1065 1060 1058 1055 1068 1071 1093
Engines & turbines 1001 1004 1029 1056 1053 1060 1069 1074 1077 1070 1061 1062 1041 998 972 975 971 966 971 970
Pumping & compressing equipment 1004 1009 1008 1038 1041 1045 1048 1056 1063 1072 1065 1062 1061 1087 1077 1079 1090 1078 1074 1070
Ovens & furnace burners 1000 1000 1040 1056 1056 1102 1095 1040 1040 1048 1046 1054 1058 1061 1063 1077 1077 1074 1016 1022
Lifting & handling equipment 1051 1085 1109 1169 1131 1128 1120 1126 1100 1075 1098 1053 1016 1004 1008 982 973 1001 986 1002
Other general purpose machinery 1010 1020 1032 1053 1059 1066 1072 1077 1087 1094 1094 1098 1097 1079 1096 1098 1094 1095 1083 1085
Agricultural & forestry equipment 1006 1009 1021 1033 1037 1044 1061 1072 1074 1077 1079 1077 1079 1079 1069 1068 1063 1062 1061 1059
Machine tools 1015 1021 1045 1066 1074 1081 1089 1091 1092 1090 1100 1099 1083 1076 1074 1066 1065 1056 1061 1060
Machinery for mining, quarrying & construction 1031 1043 1094 1176 1144 1145 1149 1150 1137 1137 1124 1098 1057 1044 1015 1007 983 991 987 987
Machinery for food, beverage & tobacco processing 1012 1016 1045 1064 1074 1102 1133 1152 1163 1162 1146 1148 1142 1169 1169 1167 1166 1168 1151 1150
Machinery for textile, apparel & leather production 1039 1046 1081 1173 1155 1146 1144 1144 1136 1117 1117 1096 1084 1019 1020 1002 972 979 967 967
Domestic appliances 1002 1010 1052 1074 1092 1112 1144 1148 1115 1109 1113 1124 1089 1087 1076 1080 1077 1073 1085 1085
Other special purpose machinery 1052 1055 1135 1242 1229 1224 1237 1231 1223 1214 1231 1210 1162 1157 1154 1148 1134 1154 1140 1137
Office & accounting machinery 999 1011 1032 1038 1039 1047 1053 1058 1060 1058 1060 1060 1050 1050 1006 1003 983 972 968 971
Computer machinery 1000 999 1008 1074 1008 1008 980 970 961 934 870 836 785 764 727 709 682 632 609 594
Electric motors, generators & transformers 1011 1020 1020 1030 1036 1055 1056 1057 1051 1064 1062 1062 1061 1060 1042 1041 1041 1054 1040 1044
Electricity distribution & control apparatus 1001 1000 971 982 961 971 972 981 1003 993 1017 1035 1038 1029 1022 1024 1013 1056 1055 1058
Insulated wire & cable; optical fibre cables 1027 1029 1090 1161 1220 1210 1206 1201 1243 1226 1258 1237 1189 1191 1175 1174 1202 1273 1280 1313
Accumulators, primary cells & primary batteries 988 989 980 1010 1003 1015 1019 1019 1042 1052 1052 1048 1049 1049 1049 1042 1024 1031 1031 1051
Other electrical equipment 1016 1014 1001 1042 1027 1037 1006 1031 1028 1070 1075 1072 1065 1077 1051 1051 1081 1092 1086 1084
Television & radio transmitters & apparatus 1007 995 972 994 1004 1011 1006 998 999 994 995 997 977 949 943 935 930 934 912 897
Medical & surgical equipment 1004 1034 1069 1127 1140 1139 1141 1153 1156 1157 1165 1164 1166 1171 1169 1169 1168 1155 1158 1155
Measuring, testing & navigating instruments 1025 1039 1077 1105 1103 1090 1105 1107 1108 1086 1084 1084 1074 1074 1029 1027 1032 1038 1033 1031
Optical instruments & photographic equipment 1026 1033 1044 1126 1137 1138 1128 1126 1098 1093 1091 1080 1065 1056 1064 1032 1023 1029 1029 1026
Bodies for motor vehicles & trailers 1004 1010 1043 1071 1110 1098 1111 1135 1153 1154 1154 1167 1178 1184 1188 1188 1188 1196 1225 1226
Other plant, machinery & equipment 1026 1041 1050 1084 1085 1078 1075 1074 1072 1091 1091 1099 1096 1082 1081 1086 1094 1088 1090 1093

A2 ACCESSING CURRENT & HISTORICAL INDICES DATA
II
A2 Accessing Current & Historical Indices Data
Current and historical indices can be gathered from the New Zealand department of statistics. The easiest
way to do this is via their website at www.stats.govt.nz. From the web site, use the following:
1. Click on the Economy link; then
2. Click on the Inflation (CPI) link; then
3. Click on the Capital Goods Price Index - Information Releases link; then
4. Click on the link to the date you require (probably the most recent) and select Downloadable Excel
table(s).

A3 HISTORICAL EXCHANGE RATES FOR NEW ZEALAND
III
A3 Historical Exchange Rates for the New Zealand Dollar

Figure 10.1 Historical New Zealand Exchange Rates

Figure 10.1 New Zealand Dollar - Historical Exchange Rates

$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
$0.55
$0.60
$0.65
$0.70
Sep
98
Dec
98
Mar
99
Jun
99
Sep
99
Dec
99
Mar
00
Jun
00
Sep
00
Dec
00
Mar
01
Jun
01
Sep
01
Dec
01
Mar
02
Jun
02
Sep
02
Dec
02
Mar
03
Jun
03
Sep
03
Dec
03
Mar
04
May
04
Date
U
S
A
,

U
K

&

E
u
r
o

E
x
c
h
a
n
g
e

R
a
t
e

(
1

N
Z
$
=
)
$0.70
$0.75
$0.80
$0.85
$0.90
$0.95

A
u
s
t
.

E
x
c
h
a
n
g
e

R
a
t
e

(
1

N
Z
$

=
)
USA
UK
Euro
Aust.
c

A3 HISTORICAL EXCHANGE RATES FOR NEW ZEALAND
IV
Table 10.1 Historical Exchange Rates for New Zealand
This table reads: 1.00 NZ$ =
Date US$ UK AUS$ Jap Euro GER
Mar '94 0.5718 0.3852 0.8005 60.00 - 0.9800
Jun '94 0.5919 0.3882 0.8101 60.12 - 0.9533
Sep '94 0.6044 0.3850 0.8170 59.86 - 0.9367
Dec '94 0.6329 0.4023 0.8276 62.81 - 0.9767
Mar '95 0.6495 0.4074 0.8787 58.97 - 0.9267
Jun '95 0.6706 0.4209 0.9254 57.37 - 0.9400
Sep '95 0.6575 0.4192 0.8758 64.79 - 0.9467
Dec '95 0.6546 0.4234 0.8810 67.48 - 0.9400
Mar '96 0.6794 0.4449 0.8814 72.23 - 1.0067
Jun '96 0.6838 0.4451 0.8625 73.96 - 1.0400
Sep '96 0.6951 0.4443 0.8807 76.41 - 1.0467
Dec '96 0.7060 0.4247 0.8925 80.94 - 1.1000
Mar '97 0.6938 0.4281 0.8916 85.77 - 1.1767
Jun '97 0.6806 0.4126 0.8990 79.12 - 1.1833
Sep '97 0.6384 0.3960 0.8757 76.56 - 1.1467
Dec '97 0.5982 0.3600 0.8910 76.55 - 1.0600
Mar '98 0.5695 0.3437 0.8557 73.35 - 1.0367
Jun '98 0.5225 0.3177 0.8465 72.43 - 0.9333
Sep '98 0.5096 0.3052 0.8515 67.98 - 0.8733
Dec '98 0.5319 0.3203 0.8458 62.19 0.4653 0.8850
Mar '99 0.5394 0.3331 0.8465 63.95 0.4932 -
Jun '99 0.5374 0.3369 0.8163 64.94 0.5139 -
Sep '99 0.5214 0.3202 0.8038 56.82 0.4917 -
Dec '99 0.5117 0.3147 0.7924 53.35 0.5012 -
Mar '00 0.4930 0.3102 0.8055 52.81 0.5105 -
Jun '00 0.4673 0.3095 0.7962 50.19 0.5016 -
Sep '00 0.4221 0.2892 0.7600 45.49 0.4807 -
Dec '00 0.4239 0.2911 0.7830 47.78 0.4729 -
Mar '01 0.4205 0.2911 0.8193 50.61 0.4630 -
Jun '01 0.4152 0.2935 0.8040 51.02 0.4809 -
Sep '01 0.4215 0.2905 0.8234 50.80 0.4651 -
Dec '01 0.4189 0.2915 0.8116 53.36 0.4715 -
Mar '02 0.4311 0.3016 0.8222 56.84 0.4913 -
Jun '02 0.4771 0.3183 0.8557 58.50 0.4999 -
Sep '02 0.4714 0.3042 0.8633 57.17 0.4811 -
Dec '02 0.5156 0.3238 0.9055 62.24 0.5017 -
Mar '03 0.5528 0.3480 0.9189 65.96 0.5116 -
Jun '03 0.5810 0.3552 0.8834 68.61 0.5037 -
Sep '03 0.5890 0.3622 0.8815 67.42 0.5186 -
Dec '03 0.6490 0.3702 0.8754 69.96 0.5323 -
Mar '04 0.6650 0.3625 0.8775 71.51 0.5404 -
-
-
-
-
-
-
-
-

A4 ACCESSING CURRENT & HISTORICAL EXCHANGE RATES
V
A4 Accessing Current & Historical Exchange Rates
Current exchange rates can be gathered from the Reserve Bank of New Zealand. The easiest
way to do this is via their website at www.rbnz.govt.nz. The desired web page is:
http://www.rbnz.govt.nz/statistics/exandint/b1/data.html. Alternatively, from www.rbnz.govt.nz, use the
following:
1. Click on the Statistics link; then
2. Click on the B1 Exchange rates link.

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