Detailed Capital Cost Estimation | AIChE

Important Notice: Limited Web Access September 17 to 19, 2021

AIChE will undertake a routine upgrade of our digital infrastructure this weekend between 4pm ET Friday afternoon and 4pm ET Sunday afternoon. During this period access to all services that require login or payment will be limited.

You are here

Detailed Capital Cost Estimation

Accurate detailed capital cost estimates are critical for the successful implementation of major commercial investments.

An accurate estimate of a capital expenditure (CAPEX) is foundational to timely and profitable implementation of a new or proven technology. In industries ranging from renewable energy production and petroleum refining to semiconductor and consumer product manufacturing, detailed cost estimating methodologies can be used to quantify the cost of design and construction operations, as well as the overall investment.

This article is Part II of a two-part series on capital cost estimation. Part I (April 2021, pp. 42–47) defines the five phases of capital cost estimates, but focuses on early-stage cost estimating methods (1). Part II addresses detailed capital cost estimation, which aims to maintain value identified in early-stage estimates and then optimize the deployment of financial resources to achieve maximum return on invested capital (ROIC).

Would you like to access the complete CEP Article?

No problem. You just have to complete the following steps.

You have completed 0 of 2 steps.

  1. Log in

    You must be logged in to view this content. Log in now.

  2. AIChE Membership

    You must be an AIChE member to view this article. Join now.

Copyright Permissions 

Would you like to reuse content from CEP Magazine? It’s easy to request permission to reuse content. Simply click here to connect instantly to licensing services, where you can choose from a list of options regarding how you would like to reuse the desired content and complete the transaction.