Installed cost fractions—equipment installation cost range In a chemical process plant, equipment installation cost typically ranges between what percent of purchased equipment cost?

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:

  • Standard greenfield chemical plant with typical complexity.
  • No extraordinary site constraints inflating installation labor.
  • Historical norms are used for quick estimating.


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:

Identify the cost bucket: installation (setting, foundations, staging).Recall the typical range relative to purchased equipment: 35–45%.Choose the matching option.


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:

  • 10–20%: too low for most stick-built projects.
  • 55–65% and 70–80%: atypically high unless in remote or severe labor environments.


Common Pitfalls:
Forgetting to separate installation from piping and electrical, which are additional direct costs beyond installation.


Final Answer:
35 to 45

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