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Chemical plant cost indexes
Chemical plant cost indexes are dimensionless numbers employed to updating capital cost required to erect a chemical plant from a past date to a later time, following changes in the value of money due to inflation and deflation. Since, at any given time, the number of chemical plants is insufficient to use in a preliminary or predesign estimate, cost indexes are handy for a series of management purposes, like long-range planning, budgeting and escalating or de-escalating contract costs.〔Pintelon, L. & Puyvelde, F. V., 1997. Estimating Plant Construction Costs. Chemical Engineering, August, pp. 98-104〕
A cost index is the ratio of the actual price in a time period compared to that in a selected base period (a defined point in time or the average price in a certain year), multiplied by 100. Raw materials, products and energy prices, labor and construction costs change at different rates, and plant construction cost indexes are actually a composite, able to compare generic chemical plants capital costs.
==Calculations methods==
Although the available indexes are compiled in several ways, they are defined to encompass a specific set of conditions and items. Prices for these items can be obtained either through company’s purchasing department data or through published indexes, like those published by the Bureau of Labor Statistics (BLS).〔Humphreys, K. K., 2005. Project and Cost Engineers' Handbook. 4th ed. s.l.:Marcel Dekker〕 Both the CE and the IC indexes, from Chemical Engineering and Intratec, respectively, employs BLS’ data.
The weighting of such factors, which is defined by the realized degree of importance of each component in the specific index (or sub-index), aims to represent the costs variations typically found for chemical plants.
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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