Capital Cost Estimation in Process Industries and its Importance

Selection of a cost estimation method is generally dependent upon the level of progress in engineering and design in each project. The main capital cost estimation methods for chemical processes, together with capital cost items, are introduced in this article. The main capital cost estimation methods include capacity factored, equipment factored, parametric model, semi-detailed and detailed cost estimation. This article shows how to use cost estimation methods in different design stages of a project.