Difficulty: Easy
Correct Answer: 35 to 45
Explanation:
Introduction / Context:
Purchased equipment cost is only a portion of the total installed cost. Installation includes setting, foundations, alignment, leveling, grouting, field labor, small tools, and associated expenses. Estimating this portion accurately is essential in early CAPEX work.
Given Data / Assumptions:
Concept / Approach:
Industry references often cite equipment installation at roughly 35–45% of purchased equipment cost for conventional projects. This fraction scales with labor rates, site conditions, and equipment size/weight, but 35–45% is a well-known heuristic for scoping estimates.
Step-by-Step Solution:
Verification / Alternative check:
Cross-check past projects and cost manuals; installation fractions in this band are common except for modularized or stick-built extremes.
Why Other Options Are Wrong:
Common Pitfalls:
Forgetting to separate installation from piping and electrical, which are additional direct costs beyond installation.
Final Answer:
35 to 45
Discussion & Comments