Equipment purchase cost and installation costs
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In the estimated total investment for the feasibility study, the project costs include construction costs, equipment acquisition costs, and installation costs. But should major materials such as instrumentation cables, process pipelines, valves, and flanges be classified under equipment acquisition costs or installation costs?
Materials such as instrument cables, process pipelines, valves, flanges, etc. are classified under installation costs.
Materials such as instrument cables, process pipelines, valves, flanges, etc. are classified under the costs associated with installation work. Generally, valves with a diameter of DN300 or larger are considered equipment by some design institutes; in that case, those valves are included in the costs related to equipment acquisition