ABSTRACT
This chapter addresses capital cost estimation of a project in manufacturing and production industries using the five different techniques. They are detailed design estimation, turnover ratio method, single factor method, knowledge and experience method, and American Association of Cost Engineers total capital requirements method. A considerable amount of work has been done on capital cost estimation in the construction industry. The chemical industry uses three sets factors for capital cost estimation. They are as follows: one set of factors used for solid processing plant, one set of factors used for solid fluid processing plant, and one set of factors used for fluid processing plant. The chapter illustrates through the use of examples how capital costs and operation costs are estimated. In general, annual operating costs are classified into four categories as follows: cost of raw materials, cost of utilities and fuel, labor cost, and miscellaneous costs.
