Heng Huang reports that the major estimating methods, takeoff of quantities from progress plans, representative pricing by database, manuals, quotes, bid results, or experience adjusted for the conditions of the specific package. Crewed approach to labor and equipment, % approach to general conditions, overhead and profit, contingency, and escalation. Some allowances carried for immeasurable items. Estimating methodologies are not static and must be flexible enough to adjust to the needs of the project stage in the development process. The development process is described by the overall level of engineering design associated with the major development stages defined for the CHPP... Coal Washing Plant/Coal Washery/Coal Preparation Plant.
The capital cost estimating methodology used for the certain CHPP feasibility study provides capital costs within the battery limits of the facility. A summary of the approach to the capital cost development and resulting estimates is provided in FS stage. The approach to capital cost development is a combination of factored equipment, project-specific vendor budgetary quotes, and scaled approaches using HOT Mining in-house database, cost estimation software and cost model. The format includes separate evaluation of major systems and sub-systems for the entire plant.
The resulting capital cost is provided on an estimate form that recognizes each cost account for the plant. Each account in the estimate contains separate costs for equipment, materials, and installation labor, civil job, etc. These costs make up the total field cost, also referred to as the bare erected cost. The total capital cost estimate includes the cost of equipment, freight, and materials and labor for equipment installation and erection, materials and labor for construction of buildings, supporting structures, and site improvements, engineering, construction management, and start-up services (professional services), and project contingency.
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