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Estimating Tool-AMGINC
Estimating Tool-AMGINC
The "Factored" method of cost estimation is often attributed to Lang (1948). The fixed capital cost of a project is e
as a function of the total purchase cost of the project's process & utility equipment by the Formula:
Where....
Equipment Cost = the total delivered cost of all the major equipment such as pumps, heat exchangers, process and
vessels/tanks, reactors, columns, centrifuges, etc.
Factor = "Lang" factor, a process or "complexity" based value that can range from as low as 1.5 for a carbon steel b
process with limited piping, instrumentation, and structures, to as high as 4.5 for process involving exotic alloys, ex
complex piping, sterile conditions, heavy, large structures, an complicated instrumentation.
This estimating tool can be used to make a quick budgetary estimate of capital cost in the early stages of project
development, when the preliminary flow-sheets have been developed and the main items of equipment have bee
sized and priced.
This tool is based on a Lang factor of approximately 2.6, which essentially means that the equipment cost is 38% o
project cost. However, the tool incorporates a "Relative Magnitude" adjustment feature where the user can select
"Relative Magnitude" value for each trade or discipline depending on the type and complexity of the project that i
estimated.
The default value for the relative magnitude for each trade/discipline/craft is 3.0. If the value of 3.0 is input for ea
trade/discipline/craft, the estimate will be based on the historically "typical" cost profile indicated in the Estimator
If however, on a particular project there is no process sheetmetal for example, the value would be input at 0, whic
removes sheetmetal cost from the estimate. On the other hand, if the sheetmetal is significant, or more complex t
what might be considered typical, the value could be input at 6.0, which would approximately double estimated sh
cost.
Each of these individual relative magnitude adjustments change of the "weighting" of each trade/discipline/craft's
contribution to the total project cost, and consequently adjust the effective Lang factor.
Each of these individual relative magnitude adjustments change of the "weighting" of each trade/discipline/craft's
contribution to the total project cost, and consequently adjust the effective Lang factor.
The following are the explanations for the column heading utilized in the Estimate Tool
The items in this column represent the Trade/Discipline/Cost Items for which the tool
TRADE/ DISCIPLINE/ values
COST ITEM
The percentages in this column are representative of typical values from AMG's indust
cost database. These values are typical of processes such as Dry Corn to Ethanol, Soyb
TYPICAL % OF TOTAL Processing, Petroleum Oil Blending & Storage, etc.
These are the estimated costs that result from the profile of a typical project as mentio
ESTIMATED COST above
BASED ON TYPICAL
PROFILE
This is the column that contains the Relative Magnitude values discussed above. Thes
can be any value 0 or greater.
RELATIVE MAGNITUDE
3=AVERAGE
0=NONE
6=DOUBLE
These are the costs resulting from the Relative Magnitude value inputs
ESTIMATED COST
This column shows the difference in cost (New Estimated Cost - Typical Estimated Cost
INCREASE ABOVE from the Relative Magnitude value inputs
TYPICAL
DIFFERENCE
This column shows the Ratio of cost (New Estimated Cost ÷ Typical Estimated Cost) res
INCREASE ABOVE from the Relative Magnitude value inputs
TYPICAL
MULTIPLE
mating Tool
st estimate based on known or estimated
ade, craft, or discipline.
line estimated costs are based on 35+
hnology, and mineral processing facility
RELATIVE
ESTIMATED COST MAGNITUDE
TYPICAL % OF
TRADE/DISCIPLINE/COST ITEM BASED ON 3=AVERAGE
TOTAL
TYPICAL PROFILE 0=NONE
6=DOUBLE
DIFFERENCE MULTIPLE
$ 78,947 3.0% $ - 1.0
$ 394,737 15.0% $ - 1.0
$ 1,000,000 38.0% $ - 1.0
$ 105,263 4.0% $ - 1.0
$ 210,526 8.0% $ - 1.0
$ 184,211 7.0% $ - 1.0
$ 184,211 7.0% $ - 1.0
$ 39,474 1.5% $ - 1.0
$ 26,316 1.0% $ - 1.0
$ 39,474 1.5% $ - 1.0
$ 26,316 1.0% $ - 1.0
$ 210,526 8.0% $ - 1.0
$ 78,947 3.0% $ - 1.0
$ 52,632 2.0% $ - 1.0
$ 2,631,579 100.0% $ - 1.0
$ 263,158 10.0% $ - 1.0
$ 2,894,737 110.0% $ - 1.000
2.63