Cost fractions—typical electrical installation cost in process plants In an ordinary chemical plant, electrical installation cost is approximately:
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A10–15% of purchased equipment cost
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B3–10% of fixed capital investment
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Ceither (a) or (b)
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Dneither (a) nor (b)
Answer
Correct Answer: either (a) or (b)
Explanation
Introduction / Context:Heuristics for cost fractions help during early estimates (order-of-magnitude and study estimates) before detailed take-offs are available. Electrical installation cost is commonly expressed relative to purchased equipment or to total fixed capital investment (FCI).
Given Data / Assumptions:
- Conventional onshore chemical plant with typical power distribution needs.
- No unusual high-power electrochemical or arc-furnace duties.
- Historical percentages are being used for scoping accuracy.
Concept / Approach:Industry references present electrical installation as about 10–15% of purchased equipment cost in equipment-based estimating, or roughly 3–10% of FCI in capital-based estimating. Both expressions are valid for preliminary budgeting and are reconciled by the typical ratio of purchased equipment to total installed cost.
Step-by-Step Solution:
Recognize two common normalizations: to purchased equipment and to FCI.Recall typical ranges: 10–15% of purchased equipment or 3–10% of FCI.Select the option acknowledging both as acceptable heuristics.Verification / Alternative check:Check past project closeouts; the electrical package (cables, trays, MCCs, lighting, grounding) commonly falls within the cited ranges unless the plant is power-intensive.
Why Other Options Are Wrong:
- (a) alone or (b) alone do not capture that both are used in practice.
- “Neither” is incorrect because these are standard rules of thumb.
Common Pitfalls:Applying these fractions to atypical plants (e.g., smelters, data centers) where electrical shares are much higher.
Final Answer:either (a) or (b)