Cost to Capacity Factor Development for Facility Projects

摘要

Cost to capacity analysis originated as a cost estimating method for equipment and process plants in the chemical industry. The study of historical construction cost experience has generally indicated that facility construction cost and project productive capacity exhibit a nonlinear relationship. Cost to capacity factor development uses construction cost information from completed projects along with the associated productive capacity as a basis for developing a cost estimate for a new project. Application of the cost and capacity relationship as a cost estimating tool has expanded to include the formulation of cost estimates for a variety of industries. This article examines the development of cost to capacity factors for facility projects.