This work focuses on the application of fundamental cost engineering principles to the capital and operating costs estimation of major projects. It provides detailed coverage of profitability, risk, and sensitivity analysis. This third edition: discusses novel strategies for calculating preliminary estimates using MasterFormat; presents new information on estimating the retrofitting and extension of existing plants; contains current international cost data; and more.;A solutions manual is available to instructors only.

Part 1 Capital cost estimates: capital cost estimating - an overview; classification of capital cost estimates; organizing the capital estimate; conceptual estimating using master-format; retrofitting and expansion of existing plants; labour estimates; importance of the capital estimate; sources of international cost data. Part 2 Operating and manufacturing cost estimates: operating and manufacturing cost estimating - an overview; estimating operating and manufacturing costs; transition - construction to operation. Part 3 Financial analysis and reporting: profitability analysis - an overview; life cycle costing and sensitivity analysis; the finished report (and final problem); appendix a - cost engineering terminology; appendix b - design and costing specifications for equipment; appendix c - discrete compound interest tables; appendix d - bibliography; appendix e - answers to selected problems.