CHEMICAL AND PROCESS ENGINEERING

2009, 30, 319340

UKASZ HADY1*, MICHA DYLG2, GNTER WOZNY1

INVESTMENT COST ESTIMATION

AND CALCULATION OF CHEMICAL PLANTS WITH
CLASSICAL AND MODULAR APPROACHES
1

Berlin Institute of Technology, Faculty of Process Sciences, Institute of Process Engineering,

Department of Process Dynamics and Operation, Berlin, Germany

Cracow University of Technology, Faculty of Mechanical Engineering, Institute of Industrial

Equipment and Power Engineering, Department of Industrial Equipment Design, Cracow, Poland
New plant planning methods, as for example module technology, offer the basis for new attempts of
the estimation and calculation of investment costs in the early stage of process development. These methods allow one to determine investment costs of multipurpose chemical plants. Differences between cost
estimation and cost calculation methods of chemical plants have been discussed.
Nowe metody planowania, projektowania, budowy oraz konstrukcji aparatury i instalacji przemysowych, takie jak np. technika moduowa, umoliwiaj dokadn ocen i podjcie decyzji dotyczcych
zapotrzebowania kapitaowego we wczesnym etapie ich planowania. Modularyzacja obiektw przemysowych oferuje zarwno podstawy do szacowania, jak i kalkulacji kosztw inwestycyjnych. Omwiono
podstawowe rnice midzy szacowaniem a kalkulacj zapotrzebowania kapitaowego, odnoszc je
zarwno do metody klasycznej, jak i moduowej.

1. INTRODUCTION
The determination of the investment costs using modular plant engineering gives
a new possibility for estimation of capital requirements in all project treatment stages,
particularly in the early stage of the plant planning. Such methods as the cost estimation or cost calculation method are based on the modular plant design. Modular planning and modular cost estimation enables one reduction of time required for more
accurate cost estimation, with concurrent reduction of the engineering work. Modular
plant design offers not only a better and quicker engineering, where templates of mod____________

Corresponding author, e-mail: Lukasz.Hady@TU-Berlin.DE

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ules could be reused in new projects but also better and more accurate data basis for
a bid preparation and investment cost estimation. The reusability of the developed
modules may acceleratee and reduce planning work as well as minimize its investment
costs. The paper concentrates on a comparison between classical and modular aapproaches to the estimation and calculation of the investment costs.

2. MODULARIZATION AND ENGINEERING

NGINEERING REUSE AS KEY ASPECTS FOR
A BETTER COST CALCULATION
ATION AND ESTIMATION IN PLANT ENGINEERING
The idea of the module-oriented
oriented plant design is based on combining completed
process engineering units, modules which can function independently. A module
should be understood as a designed part of plant with a defined size and complexity.
They are designed and built in all parts of a plant in th
the same module borders, considering the same functional, constructive, spatial, supply, and automation design chara
characteristics. According to the complexity and applicability
applicability, they cover apparatuses and
machines, pipes, fittings, PMC devices and all other related process equipment [1].
Figure 1 represents the modular concept of the engineering reuse.

Fig. 1. Modular concept of the engineering reuse

A modular plant consists of plant group modules which are designed in a modular
way. The plant group modules are flexible units designed from smaller ones, namely
from structural group modules (Fig. 1). The plant group modules are responsible for
basic operations and the structural group modules are responsible for basic functions
as long as the whole process is covered by the plant. The cconfiguration and layout of
plant group modules depends on the number of required basic operations. Unlike plant

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321

group modules, structural group modules are fixed process engineering units. They
can only be affected with small constructional or layout changes such as near piping,
order of fittings and supports. The adaptability of structural group modules to the conditions of new plant group modules during the engineering reuse will be covered with
a degree of flexibility around 10% to 20% for possible changes.

Fig. 2. Accuracy of the cost estimation according to [2] for a completely new development (upper)
as well as with 80% of available parts and 20% of new development (lower)

How important is the quality in engineering reuse is shown in Fig. 2, where two
different cases of cost estimation are considered. The inaccuracy of the estimation for
a completely new development is shown in the upper figure. The lower figure represents cost estimation of a development, which consists in 80% of known and in 20%
of new parts. In both cases, suitable accuracy requirements in each project treatment
stage are adopted according to [2]. Additionally, known parts have a relative inaccuracy of 5% [3] which makes 4% of the absolute inaccuracy (Fig. 2, upper diagram).
Since a big part of new constructions consists of known components or parts,
whose arrangement and costs are known, the estimate inaccuracy for the whole con-

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Fig. 3. Concept of the reuse atlas for quality, know-how assurance

and for engineering reuse
euse in modular plant engineering

struction is smaller than for new single parts [4]. From this point of view, and in terms
of adopted inaccuracy in feasibility study (50% and 30%) on the 20% limited to the
new elements,, its inaccuracy amounts to 10%
10%6% (Fig. 2, lower diagram). With reference to the inaccuracy of known parts ((4%), the inaccuracy in feasibility study of
developments of such kind makes for the whole plant +10.8%
+10.8%7.2%. In all other project treatment stages shown in Fig. 2 (lower
lower diagram
diagram), a huge reduction concerning the
inaccuracy of cost estimation could be achieved, only when available components or
parts will have high quality of their construction and layouts, thus their maximum
relative inaccuracy of estimated or calculated costs amounts to 5%.
Since the quality of available parts or modules of a various complexity used for
cost estimation is so important, the concept for the assurance of available know
know-how
principles and quality characteristics was developed. This documentation and ma
management system of modules, the so-called
called reuse atlas, is shown in Fig. 3.

The left side of this reuse atlas characterises the level of visualization. The info
information on 2D equipment layouts and 3D modu
modules could also be obtained. The reuse
atlas gives an access to designed modules with a 3D
3D-CAD software. Therefore avail-

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323

able models of modules could be easily reused. The right side of the reuse atlas describes the documentation of the modules. Here the know-how principles and dimensional characteristics of given modules could be found. Both of those aspects: visualization and documentation interact with each other. Thus designing of a new plant may
proceed completely modularly and cost estimation or calculation based on modules
could be more accurate.

3. COST ESTIMATION AND CALCULATION

Calculation is a deliberate process for transforming one or more inputs into one or
more results, with variable change [5]. The calculation characterizes manufacturing
and first costs of a piece, a part or a contract and is an attribution of costs on the
equipment output unit. The equipment output unit can cover a single piece or a part,
but also a number of pieces such as charge, series, sort, contracts etc. [6]. During the
cost estimation, costs are determined based on the preliminary planning. Cost estimation is a method to determine the cost basis instead of their precise calculation [6].
The cost estimation delivers therefore a basis for the evaluation of costs in an early
planning stage. Estimations are based in particular on the planning documents and other
graphical diagrams of equipment costs. Using price indices of similar projects, the investment costs of a new project can be estimated. The results of such estimations deviate from
the true value [6]. It has to be mentioned that many decisions in companies and in projects
are made less on account of exactly calculable values but according to experience, expectations, basic estimates or questioning of experienced persons [6].
Therefore the necessity exists of development of the method for determination the
investment costs with an accuracy of the cost calculation which may be used instead
of classical estimation methods.

Table 1. Investment cost estimation in comparison to cost calculation

Cost estimation
Acceptances and experience factors will be used
(regression exponents, add-on factors,
cost structures of similar projects, specific data)
Classical
Modular
Pre-calculation of
Pre-calculation of a plants,
plants or plant units,
which may be decomposed
consisting of the
into modules of various
technical equipment complexity consisting of the
technical equipment

Cost calculation
Known values will be used
(detailed calculation with isometrics,
item and material lists)
Classical
Modular
May be used
May be used for
for a plant costing a plant costing analysis
analysis
and for pre-calculation
(with modules)

New approaches to the investment cost estimation and calculation in all project
treatment stages can be developed using modular plant design. Some main ideas of the

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modular plant engineering have already been described in Sect. 2 or in many others
papers (cf. [1, 79]. That is why some aspects of the modular cost estimation as well
as calculation will be discussed here. Table 1 gives a comparison between classical
and modular methods to the cost estimation and calculation.

Fig. 4. Modular plant design and the methods for modular cost calculation and estimation

With regard to the differing complexity of modular plants shown in Fig. 4, two
modular approaches for investment cost calculation were defined [1].

Fig. 5. Modular plant complexity and approaches for investment cost calculation [1]

Figure 5 describes the complexity of modular plants and shows the classical and
the modular approaches for investment cost estimation. The modular approaches presented in this figure will be discussed in next sections.

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325

3.1. CLASSICAL APPROACH FOR THE COST ESTIMATION

The classical approach of the cost estimation is based on the level of process
equipment. Using known cost data of the main equipment of finished projects, regression exponents or add-on factors, the investment costs for the whole plant can be determined. The principles of this approach are shown in the following equation:
YPlant C =

nPEC

Y
i =1

PEi

(1)

where nPEC is the number of all process equipments in a considered plant according to
the classical approach.
The choice of a suitable estimate method (between the capacity method, structural
method and the method with specific data) depends on the planning treatment stage
and on the plant complexity for which the investment costs should be determined.
3.2. COST ESTIMATION AT THE LEVEL
OF THE PLANT GROUP MODULES. FIRST APPROACH

The approach is based on the level of plant group modules and can be considered
in all project treatment stages. The investment costs of the whole plant are calculated
as a sum of the investment costs of the plant group modules (Eq. (2)). Those investment costs correspond in each case to the investment costs of the process equipments:
nPG 1

YPlant PG = YPGi
i =1

(2)

nPE 1

YPG = YPEi
i =1

(3)
where nPG1 number of all plant group modules and nPE1 number of all process
equipments in a considered plant group module according to the first approach.
Using the cost estimation methods developed at this level, the investment costs
can be determined with a relatively high accuracy. This approach allows cost engineers a quick and precise determination of the investment costs for standardized plant
group modules, namely, for those which were already developed with known structural group modules. The developed regression exponents, add-on and all other factors
can be applied only at this complexity level.
3.3. COST ESTIMATION AT THE LEVEL OF THE STRUCTURAL
GROUP MODULES. SECOND APPROACH

For a better estimate accuracy of investment costs, an approach for the estimation
at the level of the structural group modules is defined. The idea of this approach is

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shown in Fig. 5. The investment costs of the whole plant are calculated as a sum of the
plant group modules costs:
nPG 2

YPlant CG = YPGi
i =1

(4)
Those investment costs correspond in each case to the sum of investment costs of
the structural group modules:
nCG 2

YPG = YCGi
i =1

(5)
where nPG2 number of all plant group modules in a considered plant and nCG2 number of all structural group modules in a considered plant group module according to
the second approach.
The investment costs of the structural group modules can be determined from the
sum of the basic equipment costs (Eq. 6).
nPE 2

YCG = YPEi
i =1

(6)
where nPE2 number of all process equipments in a considered structural group module according to the second approach.
Using this approach, the estimate failures with regard to the accepted investment
costs of main equipments could be avoided. It is also possible to improve the cost
estimate accuracy for the whole plant [1]. The disadvantage of this approach is a large
time and amount of work involved. However, if a cost library at this level is developed, the cost engineer will be able to estimate investment costs of projects of various
sizes in a very short time. Figure 6 shows the way for developing of the modular cost
functions using modular plant engineering.

Fig. 6. From modular plant design to modular cost estimation

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327

Using modular plant design at the level of P&IDs

P&IDs, some information such us item
and material lists for each module could be used for modular cost estimation as well as
for the design of the 3D-modules.
modules. It should be mentioned that P&IDs give an engineer only some fundamental information about used apparatus and machines, fittings
as well as PMC devices as well as their arrangement and position. At this point an
engineer does not have any information about required space for near piping (length,
width, high), maintenance- as wells as service area and steel structures. For better and
successful modular plant design and cost estimation
estimation/calculation, design characteristics
are needed and rules which lead to the design of the optimal 3D module layouts. Such
optimal developed modules deliver an accurate basis for the modular cost estimation
and calculation.

4. MATRIX FOR THE MODULAR COST EST

ESTIMATION

From the combination of all modular complexity levels of a plant and all project
treatment stages, a matrix to the modular cost estimation is defined [1] (Fig. 7). The
fields marked with crosses show the modular complexity levels where no investment
costs could be determined due to the lack of detailed design information. All other
fields in this figure (areas IIX)
IX) represent the modular cost estimation or calculation
methods which will be discussed in the next sections.

Fig. 7. Matrix to the modular cost estimation and calculation [1]

In the project stage of pre-basic

basic engineering, where an inaccuracy of 30% should
be reached, the planning degree lies in the range of 115% [10]. Due to the lack of detailed information regarded to all parts of the plant, it is not possible to estimate the
investment costs more
re detailed than at the level of the plant group modules. Therefore,

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only two fields I and II were taken into consideration during developing of the cost
functions.
In the project stage of basic engineering, where the planning degree lies in the
range of 520% [10], it is not possible to estimate the investment costs more accurately than at the level of the structural group modules. The modular estimate accuracy
in this case should lie in the range of (1015)%. Even more detailed cost estimation
at the level of equipment would lead to the classical cost estimation method.
Therefore, the areas IIIV, represent the modular cost estimation methods in the project stage of basic engineering.
In case of detailed engineering project stage, cost calculation or estimation base on
known bids of apparatuses and machines or on the cost data of finished projects. The
modular estimate accuracy should lie in the range of ca. 35%. At this stage, all four
complexity levels of a plant will be considered (fields VIIX). In the next sections all
methods listed in Fig. 7 will be discussed in details.

4.1. CAPACITY METHOD AT THE LEVEL OF PLANT GROUP MODULES AREA I

Because in the earlier project treatment stage the prediction of investment cost is
important for the progress in a project, the modular capacity method is developed and
discussed. As the starting point, the classical capacity method for the cost estimate has
been analyzed [1]. To be able to enclose the complexity of the modular plants with the
investment cost estimate, an additional variable needs to be introduced to the extension of the classical capacity method.
As an additional variable used in the design of the modular cost model with the
capacity method, the number of basic operations was chosen. It corresponds to the
structural group modules which are used in the design of plant group modules. The
apparatuses and machines of a plant cover various basic operations. The more basic
operations should be treated in the plant group module, the more equipment is contained in such a module and its investment costs are greater and vice versa.
While the whole process is covered with the plant, the plant group modules cover
basic operations and the structural group modules cover basic functions. The basic
function elements are realized by process equipment. Basic operations are, e.g., solving, mixing, chemical reaction, distillation, extraction, crystallization or filtration.
By developing of the capacity method, the reactor plant group module (as a part of
the whole multipurpose chemical plant) was investigated. The investment costs of
a reactor plant group module were estimated by using of 30 different structural group
modules depending on the reactor volume and number of the basic operations. This
dependence is shown in Fig. 8.
A new method is derived from the extension of the classical capacity method
augmented with the term (G2/G1)nII. Classical and modular capacity methods [1] are
represented by the following equations:

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329

classical method [10]

Y2 Z 2
=
Y1 Z1

nI

(7a)

modular method [1]

nI

Y2 Z 2 G2
=
Y1 Z1 G1

nII

(7b)

where 1 is a reference plant and 2 is a new plant

After linearization of Eq. (7b) it becomes the form of equation with two variables
Z and G and with two unknown variables nI and nII:

log (Y ) = nIlog ( Z ) + n IIlog ( G )

(8)

Figure 8 shows the plot of Eq. (8).

Fig. 8. Theoretical graphic representation of Eq. (8) [1]

Theoretical values of the regression exponents nI and nII can found from Fig. 8 as
the direction coefficients (upward gradients) of every single straight line in Y,Z and
Y,G projections. The real plot of Eq. (8) was formed by the available cost data (list of
equipment parts with unit prices, investment costs of designed modules). The unknown regression exponents nI and nII have been determined with the help of a commercial program, according to the information of all i = 1, , 12 points Ai (Zi, Yi, Gi)
for the whole searched area. They are equal to nI = 0.035 and nII = 0.614. The sum of
the regression exponents nI and nII corresponds to the exponent values of the classical
capacity method the 0.6-exponent method [10].
The maximum divergence of the developed cost model of real investment costs is
30%. In comparison to the classical capacity method, it reaches 10% absolute im-

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330

provement of the estimate accuracy. The cost model shown here with the capacity
method has been developed only for one plant group module (reactor plant group
module). The extension of this model on other plant group modules as well as the
enlargement of the available cost data should essentially improve the estimate accuracy of investment costs.
4.2. CAPACITY METHOD AT THE LEVEL OF A PLANT AREA II

The modular cost estimation at the plant level is based on the classical method of
cost estimation:

YPlant = Z Z

(9)
nPG

In this case, the construction volume of all plant group modules

will be

considered as the capacity (Z), instead of the planned annual capacity:

nPG

YPlant = Z i Zi
(10)

where nPG number of considered plant group modules.

The main aim of this method is to determine the specific costs per 1 m construction volume of the plant group modules. The specific costs are determined with the
conversion of the whole investment costs of a plant to the costs of plant group modules using their construction volume.
The capacity method at the plant level covers investment costs of the buildings
and of the service plant group modules as well. Those investment costs are included to
the planned or designed production plant group modules. The addition of all production plant group modules costs, including the costs of building as well as of service
plant group modules gives the whole investment costs of a plant.
The second possibility for cost estimation at the plant level is given by
nPG

np

nPMC

i =1

i =1

i =1

YPlant = YPGi + Yin. pipesi +

in PMCi

(11)

where nPG number of considered plant group modules, nP number of connection

pipes between considered plant group modules and nPMC number of process, measurement and control devices in a considered plant.
In this case, the determination of the investment costs is based on the addition of
nPG

the investment costs of the plant group modules YPGi with the consideration of
i =1

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331

np

investment costs of the connecting pipes Yin. pipesi between considered plant group
i =1

nPMC

modules and their PMC devices Yin PMCi . While the costs of pipes can be easily
i =1

calculated with isometrics, the investment costs of the PMC devices are often neglected or even not considered. For more accurate cost estimation, the integrated PMC
devices could be classified in two groups:
PMC-technology (process measuring and control, hardware): investment costs
per process control gauge inside of a plant group module such as:
programmable logic controller (PLC) used for control and/or regulation of a machine, apparatus or equipment,
RIOs remote IO (input/output),
terminal (visualization station) allowing on site service and operation of a plant
or a plant group module.
PMC technology (software): investment costs of process control system per
process control gauge inside of a plant group module.
A decision with regard to the method to be applied depends on the planning state,
on the desired estimate accuracy and on the assumed time of calculation.
4.3. STRUCTURAL METHOD AT THE LEVEL OF STRUCTURAL GROUP MODULES AREA III

In this method, the investment costs of the structural group modules can be determined with the help of add-on factors. At this complexity level, two types of the structural group modules are defined with regard to the cost estimation. The first type characterizes all structural group modules which consist of apparatuses and machines
(apparatus- and machine-related structural group modules). The other type represents
all structural group modules which do not have any apparatus and machines (PMCrelated structural group modules).

4.3.1. DETERMINATION OF THE INVESTMENT COSTS FOR APPARATUS

AND MACHINE-RELATED STRUCTURAL GROUP MODULES

The investment cost estimation for such structural group modules bases on investment costs of the main equipment positions (A). Equations 12, 13 and 14 characterize investment cost estimation for apparatus- and machine-related structural group
modules:
A& M
YCG
= (YHardware FG + YSoftware ) FP FWi FU
A& M
YCG
= ( AF1FG ) + (YHardware FE & M ) FP FWi FU

(12)
(13)

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332

A& M
YCG

A( e
AF

A & M FA & M + epipes Fpipes + ePMC FPMC )

1
+

1
1
F
F

G
E
&
M



=
1
FP FWi FU

(14)

The components of Eq. (14) are based on finished projects and are therefore
known or have to be calculated in each company separately.
4.3.2. DETERMINATION OF THE INVESTMENT COSTS
OR PMC-RELATED STRUCTURAL GROUP MODULES

In this type of structural group modules, the estimation of investment costs is

based on investment costs of the process control gauges. These correspond to the costs
of the main position. Equations (12)(14) represent the method which may be used in
this case too. However, instead of the investment costs of apparatuses and machines as
a main position (A) the investment costs of the process control gauges should be used
nCG

according to N PMCi APMCi (Eq. (16)):

i =1

PMC
YCG
= (YHardware FG + YSoftware ) FP FWi FU

PMC
YCG
=

(15)

nCG

N PMCi APMCi ( eA&M FA&M + epipes Fpipes + ePMC FPMC )

i =1

+ YHardware

FE &M 1
FG 1

FP FWi FU

(16)

where nCG the number of considered structural group modules.

Therefore the complexity of the process control gauges is classified in three
groups (Table 2).
Table 2. Complexity of the process control gauges

Device complexity
Simple

Medium complex

Complex

real cost < AD []

AD < real cost < BD []

real cost > BD []

Average costs []
0.72AD

1.75AD

1.75BD

Number of devices

59

15

16

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333

AD and BD cost quantities of Table 2 correspond to real numerical values of the

presented devices and are defined cost boundaries. They could not be published in this
paper due to the secrecy agreement.
The first group of process control gauges represents simple devices. This group
encloses process control gauges with investment costs lower than AD. The average
investment cost in this group was calculated based on 59 devices and is equal 0.72AD.
The other group represents medium complex devices with investment costs in the
range from AD to BD. The average investment cost in this group was calculated based
on 15 devices and is equal 1.75AD. The latter group of process control gauges represents complex devices with investment costs higher than BD. The average investment
cost in this group was calculated based on 16 devices and is equal 1.75BD. The fourth
group, not shown in Table 2, represents process control devices with investment costs
much higher than the investment costs of the complex one. This group of devices
should be considered separately during the cost estimation.
The cost of main position for PMC-related structural group modules could be easily estimated using investment costs and quantity of various process control devices.
Add-on factors should be determined in each case on the basis of finished projects.
4.4. STRUCTURAL METHOD AT THE LEVEL OF PLANT GROUP MODULES AREA IV

The investment cost estimation with the structural method at the level of plant
group modules can be performed with two methods. The first method refers to estimation with add-on factors. The investment costs of the main positions (A) are represented by investment costs of all naked apparatuses and machines within planned plant
group modules. The estimation of investment costs by this method is given by:
A& M
YPG
=

A& M
YPG
=

(YHardware FG + YSoftware )

(17)

(18)

nE
nM
nK
FP FW +
FW + FW FU
n E n M n K

( AF1FG ) + ( AF1FE & M )

nE
FP
n

nM
FWE +

nK
FWM +

FWK FU

The other possibility for the estimation or calculation of investment cost at this
level is:
nCG

np

nPMC

i =1

i =1

i =1

YPG = YCGi + Yin. pipes i +

in. PMC i

(19)

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334

where nCG number of considered structural group modules, nP number of all connection pipes between considered structural group modules and nPMC number of all
process, measurement and control devices in a considered plant group module
The second method of determination of the investment costs at the level of plant
group modules is based on addition of investment costs of the structural group mod np

ules with consideration of investment costs of the connecting pipes Yin. pipes i be i =1

nPMC

tween considered structural group modules and their PMC devices Yin. PMC i . Due
i =1

to the mistake reproduction law, the accuracy of the method shown in Eq. (19) is better than the approach to the cost estimation at the level of plant group module discussed in Sect. 3.2 (see also [1]).
4.5. STRUCTURAL METHOD AT THE PLANT LEVEL AREA V

The evaluation of the investment costs with the structural method at the plant level
can be made in two ways. The former method refers to the classical method of the cost
estimation. The investment costs of a plant are determined here with add-on factors.
The investment costs of the main positions are represented by the investment costs of
all naked apparatuses and machines within a planned plant (A). The following equations describe this approach:

YPlant = (YHardware + YSoftware ) FP FU

(20)

YPlant = ( AF1 ) + ( AF1 FE & M ) FP FU

(21)

By the other method, the investment costs of a plant are estimated as a sum of the
investment costs of the plant group modules and with consideration of the investment
costs of the connecting pipes and integrated PMC devices:
nPG

np

nPMC

i =1

i =1

i =1

YPlant = YPGi + Yin. pipes i +

in. PMC i

(22)

where nPG number of considered plant group modules, nP number of all connection
pipes between considered plant group modules and nPMC number of all process, measurement and control devices in a considered plant.

4.6. METHOD WITH SPECIFIC DATA AT THE LEVEL OF PROCESS EQUIPMENT AREA VI

The method with specific data at the process level is based on the accurate specification of investment costs for all required equipment, devices and parts within a de-

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335

signed plant. The cost data used in this method could be taken from finished projects
(superscript fp), with consideration of the price indices:
C
YPE
= YPEfp FP

(23)

or using investment cost data of a current project (superscript cp):

C
cp
YPE
= YPE

(24)

The investment costs of PMC devices inside a plant or a structural group module
could be calculated with material and item lists:
C
PCS
YPMC
= YPMC
FP

(25)

The investment costs of pipes can be calculated with the current pipe costs for
a given pipe length and in dependence of the pipe material. However, using the cost
data of finished projects, price indices must be taken into consideration
C
Ypipes
= Ypipes FP

(26)

The investment costs of all other devices (pipe fitting parts: elbows, tee; connection via: flanges, welds) can be calculated with material- and item lists.
4.7. METHOD WITH SPECIFIC DATA AT THE LEVEL
OF STRUCTURAL GROUP MODULES AREA VII

The investment costs at this level are estimated with investment costs of the process equipment (Sect. 4.6)
nPE

C
inside CG
Hardware
Software
YCG
= YPEi + Ypipes
+ YBGRi + YPMCi + YPCS
+ YPCS
+ YE & M i
i
i
i

(27)

i =1

and in an extended form:

C
CG

nPE

np

i =1

i =1

nPMC

nBGR

inside CG
= ePEi YPEi + epipesi LY
+ eBGRi YBGRi
i pipesi
i =1

nPCS

+ ePMCi N PMCi YPMCi + Y

i =1

+Y

Software
PCSi

)+ e

(28)

nE & M
i =1

E &Mi

YE & M i

i =1

Hardware
PCSi

Beside the investment costs of the process equipment, the investment costs of
other direct and indirect devices, like steel structures, pipes between equipments and
integrated PMC devices as well as engineering must be taken into consideration.

. HADY et al.

336

4.8. METHOD WITH SPECIFIC DATA AT THE LEVEL OF A PLANT

GROUP MODULES AREA VIII

The investment costs at the level of plant group modules are estimated with investment costs from the previous section (as a sum of investment costs of structural
group modules). The equations have a similar form like in the Sect. 4.7, however, they
are more complex:
nPE

C
inside PG
Hardware
Software
YPG
= YCGi + Ypipes
+ YBGRi + YPMCi + YPCS
+ YPCS
+ YE & M i
i
i
i

(29)

i =1

nPE

np

i =1

i =1

nBGR

C
inside PG
YPG
= eCGi YCGi + epipesi LY
+ eBGRi YBGRi
i pipesi
i =1

nPMC

nPCS

+ ePMCi N PMCi YPMCi + Y

i =1

i =1

Hardware
PCSi

+Y

Software
PCSi

)+ e

(30)

nE & M
i =1

E & Mi

YE & M i

Beside the investment costs of the structural group modules, the investment costs
of other direct and indirect devices like steel structures, pipes between the considered
structural group modules, integrated PMC devices as well as engineering must be
taken into consideration.
4.9. METHOD WITH SPECIFIC DATA AT THE PLANT LEVEL AREA IX

The investment costs at the plant level are calculated as a sum of investment costs
of plant group modules (Sect. 4.8). The investment cost calculation at this level is
given by:
nPG

np

nPMC

nBGR

i =1

i =1

i =1

i =1

C
YPlant
= YPGi + Yin. pipes i +

Yin. PMC i + Yin. BGRi

(31)

where nPG number of all plant group modules, nP number of all connection pipes
between considered plant group modules, nPMC number of all process, measurement
and control devices and nBGR number of all integrated steel structures in a considered
plant.

5. CONCLUSIONS
Modular cost estimation and modular cost calculation methods hve been compared
in Table 3.

Investment cost estimation and calculation of chemical plants

337

Table 3. Modular cost estimation in comparison to modular cost calculation

Modular
cost calculation

Object

Modular cost estimation

nPG

np

Plant

YPlant = YPGi + Yin. pipes i +

i =1

i =1

nPMC

nBGR

Y
i =1

in. PMC i

+ Yin. BGRi
i =1

Eqs. (22) and (31)

1. (Eq. (19)
nCG

np

nPMC

i =1

i =1

i =1

Plant group module

(TA module)

YPG = YCGi + Yin. pipes i +

np

i =1

i =1

in. PMC i

2. Structural method (Eq. (17))

Eq. (19)
nCG

C
YPG
= YCGi + Yin. pipes i +

nPMC

Yin. PMC i
i =1

A& M
YPG
=

(YHardware FG + YSoftware )
nE
FP
n

nM
F +
WE n

nK
F +
WM n

F
WK

FU

3. Capacity method (Eq. (7b))

nI

Structural group module

(BG module)

Y2 Z 2 G2
=
Y1 Z1 G1

To be used if templates of structural

group modules are available (P&ID,
3D-models, item- and material lists);
Cost calculation occurs in relation on
item- and material lists which enclose
all parts of equipment inside modules
C
CG

nPE

= YPEi + Y
i =1

inside CG
pipesi

Hardware
Software
+YPMCi + YPCS
+ YPCS
+ YE &M i
i
i

Process
equipment

Eq. (27))

+ YBGRi

nII

To be used if 3D-templates of structural group

modules are not available. P&ID, item- and material
lists are available; cost estimation occurs with cost
functions (structural method)
Determination of the
investment costs for
apparatus- and machine
-related structural group
modules (4.3.1)
(Eq. (14))

Determination of the
investment costs for
PMC-related
structural group
modules (4.3.2)
(Eq. (16))

Investment costs of the process equipments from finished projects

or bids of current projects (Eqs. (23)(26))

Due to the fact that the modular cost calculation and estimation consist at the level
of the plant as well as at a level of the plant group modules (PG) of the summation of
the subordinated components (plant group modules (PG) at the level of a plant and
structural group modules (CG) at the level of plant group modules), high attention by
the estimation of the investment costs should be given to the level of structural group
modules (CG). Only considering integrated pipes and PMC devices the investment
costs can be estimated or calculated more accurately (mistake reproduction law in [1]).
Finally, in Table 4, advantages and disadvantages of the modular cost calculation and
modular cost estimation methods have been listed.

. HADY et al.

338

Table 4. Advantages and disadvantages of the modular cost calculation

and modular cost estimation methods
Method

Modular cost calculation

It can be used for plant costing analysis
as well as for pre-calculation.
Cost calculation is a sum of all
equipment costs of modules good
transparency of the cost structure.
More accurate than cost estimation.

Advantages

Useable if module templates

are available (P&ID, 3D-models
as well as item- and material lists).
Disadvantages
Only current prices can be used (bids);
otherwise cost estimation by use
of price indices factors

Modular cost estimation

Useable if module templates
are not available.
Influence on investment cost with
add-ons factors.
Quick cost assessment
Basics for cost estimation (basic costs)
are investment costs of a naked apparatus
and machines or costs of PMC devices
(if those of the apparatus and machines are
not available).
Add-ons factors of known structural
or plant group modules can be used.
Less accurate than cost calculation.

ACKNOWLEDGEMENTS

The authors acknowledge the support from the AIF (Arbeitsgemeinschaft industrieller Forschungsvereinigungen Otto von Guericke e. V.); project No. 15344 N/1 and from the Cluster of Excellence
Unifying Concepts in Catalysis coordinated by the Berlin Institute of Technology and funded by the
German Research Foundation (DFG).
SYMBOLS
A
ei
Fi
F1
G
ni
n
N
PMC
U
Y
Z 1, Z 2
Z
Plant, Turnover

costs of the main positions,

existence factor (0 or 1)
factor (in general)
sum of a single add-on factors, over-all factor
number of basic operations
number of structural group modules, i = E, M or K
number of all structural group modules
number of process control gauges,
process measurement and control
annual turnover,
investment costs,
capacity (construction volume) of a reference (1) and a new (2) plant, m3
an annual factorys capacity, kg
turn-over ratio
capital ratio, kg1

SUPERSCRIPTS AND SUBSCRIPTS

A&M
BGR
C
C
CG

with regard to apparatus and machines

with regard to steel structure
with regard to classical cost estimate methods
calculation
structural group module

Investment cost estimation and calculation of chemical plants

E
E&M
G
Hardware
i
i
in.
K
M
P
PCS
PE
PG
Plant
Software
U
W

339

simple
engineering and installation
with regard to size factor
direct costs (apparatus and machines, pipes, PMC devices)
complexity index of structural group modules; i =E, M oder K
number of components
integrated
complex
middle complex
regarding price index
process control system
process equipment
plant-group module
with regard to whole plant
indirect costs (engineering and installation)
unforeseen factor
discount factor
REFERENCES

[1] HADY ., LUENEBURG W., DYLG M., WOZNY G., Chem. Proc. Eng., 2007, 28, 17.
[2] AACE International Recommended Practice No. 18R-97: Cost Estimate Classification System as
Applied in Engineering, Procurement, and Construction for the Process Industries, TCM
Framework: 7.3 Cost Estimating and Budgeting.
[3] BRONNER, A., Angebots- und Projektkalkulation: Leitfaden fr Praktiker, 3. aktualisierte Auflage,
Springer, Berlin, 2008, 149.
[4] EHRLENSPIEL K., KIEWERT A., LINDEMANN U., Kostengnstig Entwickeln und Konstruieren,
Springer, Berlin, 2007, 451.
[5] http://en.wikipedia.org/wiki/Calculation
[6] http://de.wikipedia.org/wiki/Kostensch%C3%A4tzung
[7] HUANG C.C., Overview of Modular Product Development, Proc. Natl. Sci. Counc. ROC(A), 24,
2000, 149165.
[8] LUENEBURG W., Chem. Ing. Techn., 2003, 75, 1022.
[9] MEISINGER F., Modularer Anlagenbau und modulare Anlagenplanung zur Senkung der Investitionskosten und Steigerung der Qualitt, Diplomarbeit, Fachhochschule Mannheim, 2003.
[10] SCHEMBRA M., Daten und Methoden zur Vorkalkulation des Anlagenkapitalbedarfs von
Chemieanlagen. Dissertation, Technische Universitaet Berlin, Berlin 1991.

UKASZ HADY, MICHA DYLG, GNTER WOZNY

KLASYCZNE ORAZ MODUOWE SZACOWANIE I KALKULACJA KOSZTW
INWESTYCYJNYCH APARATURY CHEMICZNEJ I PROCESOWEJ
Szacowanie oraz kalkulacja kosztw inwestycyjnych aparatury i instalacji przemysowej jest, szczeglnie w obliczu obecnego kryzysu gospodarczego w skali caego wiata, bardzo wanym aspektem,
czsto decydujcym o egzystencji i ekonomicznym powodzeniu danej firmy. Klasyczne metody suce
do szacowania zapotrzebowania kapitaowego aparatury i instalacji przemysowej stanowi szybkie, ale

340

. HADY et al.

nieprecyzyjne narzdzie do okrelania kosztw inwestycyjnych podczas planowania aparatury przemysowej we wczesnej fazie jej projektowania. Na podstawie standardu klasyfikacji wedug AACE (Association for the Advancement of Cost Engineering) ich dokadno wynosi od 50% do 100% w fazie
sprawdzania koncepcji (ang. concept screening), od 30% do 50% w fazie studium wykonalnoci (ang.
feasibility study), od 20% do 30% w fazie podstawowych oblicze (ang. basic engineering) oraz 15%
do 20% w fazie rozszerzonej oblicze podstawowych (ang. extended basic engineering) [2]. W porwnaniu z nowymi metodami oraz wspieranymi komputerowo narzdziami zwizanymi z planowaniem, symulacj, projektowaniem, budow oraz przestrzenn wizualizacj aparatury i instalacji przemysowej, problematyka precyzyjnego i dokadnego szacowania/kalkulacji kosztw inwestycyjnych nie zostaa
dotychczas odpowiednio rozwinita i opracowana.
Stworzenie nowych, precyzyjniejszych, a zarazem pewnych metod szacowania/kalkulacji kosztw
inwestycyjnych obiektw przemysowych wymaga zmiany podejcia do sposobu planowania, projektowania i konstrukcji. Uycie techniki moduowej umoliwia efektywniejsze planowanie nowej oraz przebudow ju istniejcej moduowej aparatury i instalacji przemysowej, co odpowiednio przedkada si na
redukcj jej kosztw inwestycyjnych. Moduowe planowanie aparatury przemysowej opiera si na konstrukcji aparatury lub jej poszczeglnych czci i podzespow w formie zdefiniowanych moduw konstrukcyjnych uwzgldniajcych aparaty i maszyny, ich wasne (bliskie) orurowanie i oprzyrzdowanie,
podpory oraz konstrukcje stalowe. W zalenoci od stopnia zoonoci moduw dokonano ich podziau
na dwie klasy, tj. na moduy zespou aparatury przemysowej i zoonych z nich moduy czci aparatury
przemysowej (rys. 1). Porwnano zasadnicze rnice pomidzy szacowaniem i kalkulacj kosztw inwestycyjnych aparatury przemysowej, odnoszc si kadorazowo zarwno do metody klasycznej, jak i
moduowej (tabela 1). W dalszej czci omwiono szczegowo metody moduowego szacowania i kalkulacji zapotrzebowania kapitaowego wielofunkcyjnej, moduowej aparatury przemysowej w zalenoci
od jej kompleksowoci, tj. na poziomie podzespou, moduu zespou oraz moduu czci oraz kompletnej
aparatury przemysowej, jak i od kolejnych etapw opracowywania projektu inwestycyjnego (rys. 4 i 5).
Poszczeglnym sposobom sucym do moduowego okrelania kosztw inwestycyjnych aparatury
przemysowej przyporzdkowano ich cel oraz wymagania, jakie musz by spenione, aby ich zastosowanie byo moliwe. Omwione metody do moduowego szacowania i kalkulacji kosztw inwestycyjnych oraz zalety i wady zwizane z ich zastosowaniem przedstawiono w tabelach 3 i 4. Opisane metody
zmniejszaj nakad pracy i umoliwiaj precyzyjne podejmowanie decyzji zwizanych z wykonaniem
kosztorysw aparatury przemysowej w poszczeglnych etapach jej projektowania.
Konsekwentne uycie techniki moduowej podczas planowania i projektowania aparatury i instalacji
przemysowej moe przyczyni si rwnie do efektywniejszego ich wykorzystania w kolejnych, nowych
projektach. Oznacza to, e raz zaprojektowane i stworzone moduy o rnej kompleksowoci wraz z ich
dokumentacj techniczn mog zosta powtrnie uyte podczas planowania i projektowania nowych
obiektw przemysowych. Przez ich powtrne wykorzystanie czas potrzebny do zaprojektowania nowej
aparatury lub jej czci ulegby skrceniu, jako wykonanych kosztorysw poprawiaby si, a co za tym
idzie jej koszty inwestycyjne oraz ryzyko niepowodzenia danego projektu ulegyby redukcji.

Received 26 March 2009