14.15. Estimates of overall investment costs (capital cost estimates)
On the basis of estimates for technology, machinery, and equipment and civil engineering works, the feasibility study should provide an overall estimate of the capital costs of the project. Such an estimate should undergo modification in accordance with the bids and offers received from suppliers and contractors but should nevertheless provide a fairly realistic estimate of capital costs.
A physical contingency allowance should commonly be added. A typical degree of accuracy should be considered for ±10%. However, careful consideration should be given to this estimate, and in particular to the contingency allowed.
14.15.1. Cost-estimating methods
• Process equipment cost estimating ...