Estimating Costs for Treatment Plant Construction Syed R. Qasim, Siang W. (Daniel) Lim, Edward M. Motley, and Kim G, Heung Preliminary cost estimates can be used to compare the economics of various treatment processes or the costs of major project components. Such estimates do not, however, represent the actual construction and operatjon and main- tenance costs of the project. Actual project costs are site-specific, cannot be generalized, and must be developed for Estimating costs for any project is @ broad and complex task. It requires ex- perience, engineering judgment, hard ‘work, and to some extent, guesses based on familiarity with the project and the area \dividual circumstances. Reliable construction and operation and maintenance (O&M) cost data on any water treatment project are essential for planning, design, and construction, Estimating costs is required during pro ect planning as well as during design and construction. Different degrees of accu- racy are needed for each phase. During the planning phase, prelimi- nary cost estimates are developed for major project components and often for alternative process trains. These cost estimates are used to compare and eval- uate process alternatives. Therefore, they must be accurate enough so that sound decisions concerning alternative selections can be made. These esti mates are also used for arranging project ro TABLE 1 | ment tat nt TS tend tot an ae a ale os See IT [aaa oe a | 2 oar om Rem ® ts : eet iaee 5 : w fala ‘Liquid alurn feed cf Bs BS Fit | 6b 2 2 7] OB aa ranking | Polymer feed OC = 11,76071 es 8.200 | 7 4 1 6 19 nae epee | ‘Ferric sulfate feed 13 | at 3 4 5 aT inrton mies |oE an = | sfafw fe Aer | “appate anges of bth comracton aod O8M cots {Arexesaon an se work Bemnamucturel equipment, C~ cover, D = dec E=abor = pig at ales, letra upnent and Instrumentation, hodaing 1 ~cneray = mantenace materi Klabor £5¢“Geadrcon nd lating 1 pera sownee for ott) od ela o)—dtlore SO8NC™ eperatin mdmainensacecot-85e0r “Appeble emg of cot cos ony tpt ge f RM ene nareton cost steed an weight compas nit cont of 485/n? of tl ung een Th caret bung rst nay be cbtsned by myn ett ‘area with the ratio of unit building costs (current unit cost—$/m')/($485/m°). 7 7 oo 56 MANAGEMENT AND OPERATIONS JOURNAT. AWWA,funding and for securing engineering de- sign services. Secondary cost estimates, developed during the design phase of the project, are detailed construction costs. These cost estimates are used to compare and ‘evaluate bids received for construction of the project, Many factors influence the construction costs—plant capacity, de- sign criteria, treatment processes, site conditions and land cost, climate, permit ‘eosts, competition among bidders and sup] ier, and general local and nation- le economic conditions. Thus, such construction and operation costs cannot be generalized and must be developed for specitic projects. In this article, the generalized con- struction as well as O&M cost equations for water treatment units are presented, ‘These equations provide a convenient way to develop the preliminary cost esti- ‘mates of water treatment processes for ‘economic comparisons of project alterna- tives during the planning pliase of the project. Preliminary cost estimates develope! from data Preliminary cost estimates for a water treatment plant are developed from his- torical data from similar water treatment plants, The engineer separates the over- all existing project costs into appropriate categories and components that may be applicabie to the plant being considered. Generalized construction and O&M cost equations and cost components TABLE 1, Continued Operation aad Maiatetance Cost Eee ‘Component Coat percent Applicable Range of * Process Bequation ot i K Mindmin | Maxim Gilojine torageand ed ‘yliner storage anes £7629 5000 8 w o 4 4500 Omg ong tank anc. 13.3586 3 6 e 00 4500 Dieteed fom aM ~ 1079 <8 0 3 2 s soo 4300 zone generation GaN 92.4.2 6,600 " a 2 4 1.800 sone const chamber (ORNC are included wth O&M of ozone guid sham fed SMES Sen O78 5 700 % 4 2 2 2,500 Day shin feed OaMC = 1205,258080°9sgam0r0 | tT 3 © 4 230 Polymer feed wae 300080" m 66 0s 10 Lime feed ORME 1.290 «305.2 056522 ° 1 a “ 44500 Potassium peemangenate feed | O&MG 2.12595" 5600 5 2 w 05 20 ‘Sulfur feo anc =-asar. O74. 4.670 ° ‘ 1 oot » Sodium hydroxide feed O&MC~ 1,500 + 06284 + 61s") 3% 5 oo ‘ 4300 Persie aulite feed owMc= 1260905 "0s 267n0 | 17 2 8 6 3.000 Axiydeoasammoniafeed | OC =-28068 «5 25,160 6 wo Ey 10 2300 “Apical rages of both construclon and O& cots {A= excavation ad site work, B~ manuloctred equlpment, C~ concrete, D nergy, J= maintenance material, Kite Hs boing, 3CC- construction cost Gachuling 15 peccent allowance for contingency and miseeleneoue)—dellas {ORME operation and maintenance cesta) SAltabe sage ftonaiconcostan {YAboteabie rane of 08M os aly ‘Hiconstrction costs based on weighted composite wat cost of 85/n of ot bling area. Te caret building cast my be obtained by maltpsng the tla rea with the rato of nit ullding costs (Cureent wit eoot—S/a)/(G485/m steel E«lbor, P= ying ad vale, G electrical equipment a instrumentation, AUgUST 1952 SK QASIM KT AL 57TABLE 1, Continued Goneralized construction and Oth cost equations and cost components Construction Cost | ‘Componcat Cost—percore \ Procces Equation a} s pe | of e |r [ «fe | ‘Hepa ammainfond—(OC~ 21918 = POM 7 5 some pet / Powdered activated | CC 25009 68,40 afm jos 5 6 | 2 fw | 2 freon fed hgh co= 2507 2 + 13.610 3s |» | 7 | 2 | 4 Cena 23 | AN 2 | 6 | 6 | % | 38 2 Cox era8 13920 tj we | 4 e [ou 7 ‘tol basin yume c= 5,610.0 st acea s| av fw | a | x 8 Cc tg 0g tomes ita |e | i ) x rd Cen aaig ee em 3) os | o | ou | 8 Stoll basin whem? Cite Cie c= on 720+ 35318-02286 2} a |7 |e] e)s a Rectangular {CC = 30,200 537.28 a) om | wm | a | m | wo | 2 asin sara, onitytersiicture EC 358340 ij | 6 s | a | a | 6 |e froin ae? Firaton media Steed sand cc +928 28% 54100, 100 Dis media CC 3460 2 in, 400 ‘zed media Serie an’ gos 490 ‘ro fiter bed area Siterbeckwash punsing | CE Sin ekals agate " a | mw |e fier surace area Surface wath sytem ‘vara ec 9.704 28 mi, «0 w | wo | 2 sairwater Gc 2410.0." tee x 5 | @ | i ‘tot filter ae 7 was water sure basin | CC = 19460 +784, 0r— 0.28899" 1 a | ow | o | s 2 basin cape 7 Wash water storagetank |cc~2or.4s0s® emmy 1 1 |o6 | s Toatorage vole? Clearwater storage san22. 900 2 wo |= | oa 2 helow ground apa Fhished water pamping Set 390 2 oe | mw | a "POH so8 m (00H) | += pumping capaci awwater pumping | Co~2006 2 18700 8 w fos | ow “pumping gperic/a Gens hicenwe | C22 So Be Qt aja [a2 | ow | 1 fs thicker dameter—m ‘Suge dewatering lagoons | C= 285° + 2280 8 ‘ 1 | ow | 6 i efectve slorage volume? Sand deine beds obo iBia i opt? 5 Pn toa bed arg ter press 659,480.85. 00 o w | ot " Sto iter press vokie—m? el iter ress = 10 5u0s 15,9621 8 wm | 2 1 ° + toa instated machin capaiy—? 7 Adnan, laboratory, : ‘sn maintenance c= 259.56.0 + 1270 ing Sr pan capacity wd Appleable anges ofboth constracton and OM cote rence aero ork Bs manulactred equipment, C= coneret, = tel, E~ ber, F~ ping aud vas, G~ ecrcleqipment nd | ranertation H housing: ~ energy] ~atenance material, abr Foe eonsaracion cost ing 19 percent allowance for contingecy and miscelaneous)—dailrs fOSMC = operntvy and maintenance cot 8/40" ekpptede ange of eonsrucion est nly fhonteable rmnze of O&M cost oy FER ene Oe eed compose ui cost of 85/0 of tl bung area The curen blng cst may bo obaned by matinving the ot ‘es he rao ou dng cst (cxrrent eaitcost8/}/ 5/0. 58 MANAGEMENT AND OPBRATIONS JOURNAL AWWA“TABLE 1, Continued Generalized construction and O&M cost equations ond cost components Operation and Maintenance Cost — ‘Component Cost—percent ‘Applicable Ringe of x* Process Eaquation 1 |] os K Miniensm | Maximam ‘Baus ammonia feed ORME = 2619.6, 2 509 1 7 2 10 2,300 Powdered actvatedcarben | ORMC= 1153.44. 9,850 30 % “4 15 3,00 Ropid mix Ceaae! OkNC = 38.4.2 «4750 8 1 6 3 550 Grom! OuNE- Bors £700 @ 1 2” 3 530 e290 st OuNG = 3373 240 760 8 ° @ 3 530 OaNC = 15.2875 1.150 2 @ 8 50 2,000 ORME? 258613 a 38 is 50 2500 OaMe™ 52" 5 (ED % i ® 20 28,000 hse im Creal ONC - 2494 2" +1550 4 3% © 50 8.000 Rectangle ame = aa! B00 4 18 0 2 50 Gravity fer steve anc 3595." 8100 6 2 2 8 2,600 Fitation media ‘Stratifed sand BNC ate included with O8N offer 13 2.600 ual media strsctre costs 8 2.600 Mixed media cy 2.600 iterbackvash pumping — | OME 733.2" 5 2200 @ Py a 6 apse 13h 2,0tt Sarface wash eystemn Hydrate amc 723.8. 380 st 5 “a 1 2.500 Alewater O@MC= 7352) 2,180 s a B 8 23500 ‘Wash water suge basin OfCare included with O&M costs Fo 1800 ot bela pring and surface ‘wan syst Wash water storage tank ONC ar included with O&M costs % 3,500 Df backwash pumping and surface ash system Clearwater sorege (O8NC are ncnded with Gnished ater 0 30,000 ‘below ground Dumping costs, Finished-water pumping: O&MC - 0.502 295 + 5,200 8 4 a 5,500 1,485,500 ‘TDA 3048 m (00% aw water pring O&M 5530+ 0.08870 *L 6 18 3.500 758,000 Gawiy shudge thickener owe 21345 1200 8 2 s 6 ® Studge dewatering agoors | O&MC = 6.4738" 45, 6 1 % 300 1,000 Sand desing bods onic =21753 45,810 6 6 a 480 37200 Filer press ORC» U7 15.7 705,720 8 8 oy one 8 Bat fer press nc 584,735.8°"*. 568,080 ® B 2 3 20 ‘Adminstration, boratory nd | OBMC ~ 4508.65 ™5.-99,000, re) ° 8 3.500 750,000 ‘aintenance baildingt “Appleable ranges ofboth consirucion snd OGM cast {Aveacavation and site work, B= manulacured eqlprent, © =coneet, D = sed, E-=labor H hooting, energy, J~ maintenance materi K~ aber $6 = construction cos! (aching TS percent llowance for contingency and miseslaneoys)— della GOSIC™ operation and maintenance cst—S4ear Appllable range ol conaruction cost enly {fApplisbl ange of 8M eos only 7 4#Consrucion costs based on weighted composite unit cost of 485 of fot bulding ares. "The curent bling cost may be oad by mel the eat te wih the rato of wait uldig cots (rent ua eoat-8/u) /(485/) piping and valves, G~ electrics equipment and instrumentation, ‘AuGUST 1982 SR. QASDM ET AL 59TABLE 2 LS and ENR indexes used as bass for the construction cost curves | moans Updated October 1978 October 1978 Apri 1992 Val of Vatse of ale of Cost Component | Index Tader | ‘index. | Index ‘Bcavation wd "ENR Shed Tabor Wage Index aro 20, “50 slicwork | 0967 100) 96700) (aoe? 100 Mansfociced BLS Genera Purpose Machinery ‘wit "0 1500, alpment ‘snd Ryulpment-Commodiy Code 114 «as? 10) 0982 100 (0982 = 100 concrete BLS Goncrete ingredients it Ti nin ‘Commodity Code 132 0987 = 100 0982.19 (0982. 100 Stet BIS Steel Mil Produc 2624 750 "74 Commodity Cole 1017 (a987= 100) (1s 100) 0982 = 109 Labor ‘BNR Skilled Labor Wage Indox | 270, “50 cos67= 100) | a9? = 100) ‘0987-100 Pies and valves BLS Valves and Fittings 4 "2. 3356, Conmority Cade 11490. 987 = 100) (19H = 100) 0982-100 Bretricalequpment | BLS etre Machinery and 1675, ay 213 ‘i iosumenation | Equlpment-Commodiy Code 117 ser 100) 1882 = 100) 14982 = 100 Housg ENR Building Cost dex 3548, 2548 159) | (0987 = 100) (0957 = 100) (6967~ 10 TABLE 3 | Construction and operation and maintenance cost components and ubdated salves in current dollars October 1978 Updated April 1992 Cost Component | Cost | Index Cost Components ‘percent $ Value ‘onsreeion cost ‘A:Bxcavation and st work 4 sau ar9 550 B Mrnuiactured eqipment 2 66.185 m9 1300 Concrete 0 st ne tie DSteel 2” 8.196 50 i074 B Labor 20 sa4 aia 350 Ping and valves 0 ast 702 1398 6 Hlectcleipment ed instrumentation 2 300 as ims Hi Housing Baa 39 25,170 410,00 Operation and maintenance costs ih Enengy requirements 4 26 snus/awn sn.s/tts 410 4. Maintenance materia requirements 6 38) 718 eae 1970 K Labor requirements % anor | §1000/hour $18.00/b0ur 2320 1 Chencluse and related cost ° ° a) 11400 Cost data for different years are normal- ized toa common base using appropriate cost indexes. Thus, cost information for specific projects may be developed from the completed projects. In many cases, developing specific project costs from historical data may not be possible be- cause of the unreliability of the data and the possibility of gross errors occurring when overall project costs are separated into individual components. In such cases, cost information published by fed- ‘eral agencies, professional journals, and private organizations is used. Familiarity and special care are needed in using these cost curves so that large project ‘components ate not overlooked or in- cluded more than once. In August 1979, the US Environmental Protection Agency 60 MANAGEMENT AND OPERATIONS (USEPA) published a four-volume report presenting construction and O&M cost curves for 99 unit processes useful for removing contaminants included in the National Interim Primary Drinking Water Regulations.” The USEPA,reportis the basis for developing the generalized cost equations presented here for esti- mating construction and O&M costs of a ‘conventional water treatment plant. Generalized construction costs determined from aggregate data ‘The generalized construction costs presented in the USEPA report used equipment cost data supplied by manu- facturers, conceptual designs, and pub- hed data. The construction cost of each process was developed by determining and then aggregating the cost of eight principal components: exeavation and sitework (A), manufactured equipment ®), concreté (©, steel (), labor ©), piping and valves’ (F), elecirical equip: ‘meat and instrumentation (G), and hous- ing (2). The subtotal of the costs ofthese ceight categories includes the cost of ma- terials and equipment purchase and in- stallation as well as subcontractors’ over- hhead and profit. A 15 percent allowance hhas been added to this subtotal to cover miscellaneous and contingeney items. Construction costs, however, do not in- clude costs for special sitework, general contractors’ overhead and profit, engi neering, land or legal costs, fiscal, or ad: ministrative and interest costs during construction, These cost items are all JOURNAL AWWA,nore directly related to the total cost of ‘project than to the cost ofthe individual nit processes. Therefore, these cost ftems are most appropriately added fol- lowing summation of the cost of the indi- ‘vidual unit processes. (Cost equations developed via computers. Generalized equations for construction costs were generated by using a com- puter program called PLOTIT®, an inter. active graphics and statistics program’ Data used to generate these equations ‘vere obtained from the USEPA report? ‘The procedure is relatively simple. First, ‘a two-dimensional input file is created in the format the program needs. Then, the type of equation for fitting the data point is selected. For example, the equation selected could be linear, quadratic, or ‘exponential, The program then com- putes the coefficients for the equation based on best line or curve generated, ‘This processis repeated for several types ‘of equations, and the one that best repre- sents the data is chosen. Forty-two generalized construction cost equations are given in’Table 1. Bach ‘equation represents a unit process and a chemical feed system most commonly used in a conventional water treatment plant. The applicable range of each curve (minimum and maximum limit) and the percent cost components are also pro- vided. For example, construction and O&M cost equations for chlorine storage and a feed system using a chlorine eylin- der (tem 1a, Table 1) have an applicable range of 4 kg/d (10 Ib/d) to 4,500 kg/d (10,000 1b/¢). The major construction cost componentsare 47 percent manufac tured equipment (B), 6 percent labor (B), 4 percent piping and valves (F), 5percent electrical equipment and instrumenta- tion G), and 38 percent housing GH. ‘The equation representing the October 1978 construction cost is 0 6809527 611,010 in which CC = construction cost (dollars) and = chlorine feed capacity (ke/4). Cost index used to adjust estimates. The ‘most common method used to adjust cost estimates from one geographic location and time period to another is the cost index. An index is simply a calculated ‘numerical value that is a function of an established quantity of material and labor. The key advantage of a single index is the simplicity with which it can be applied. Although use ofa singleindex is an uncomplicated approach, there much evidence to indicate that these time-honored indexes are often inade- uate for application to water utility con- struction. Thus, a procedure to update several cost components is desirable. ‘The most frequently utilized single in- dexes in the construction industry are the Engineering News Record (ENR) con- struction cost index (CCD, and the ENR AUGUST 1992 building cost index (BCD. The key ad- vantages of ENR indexes are their avail ability, simplicity, and geographic speci ficity. Unfortunately, these indexes do aot include mechanical equipment, i strumentation, or piping and valves; also, a proportionate mix of labor and material isnotspecitic to the construction of water treatment plants. To overcome these shortcomings of ENR indexes, the total Although use of a single index is an uncomplicated approach, there is much evidence to indicate that these time-honored indexes are often inadequate for application to water utility construction. construction costs are divided into eight major cost components, The Bureau of Labor Statistics (BLS) and ENR in- dexes for these cost components for 1967 and 1978 dollars are given in Table 2. Thus, total cost is updated based on eight principal cost compo- nents by using appropriate indexes rather than a single index, Updating costs for ENR CCIs is straightforward. The carrent ENR value for each desired category is obtained from the most recent issue of ENR, This value is divided by the index value for October 1978 and multiplied by 1978 con- struction cost to obtain the current con- struction cost.°* Cument construction cot = October 1978 construction cact (utrent ENR CC Index/Octaber 178 CCl ides) Updating costs using the BLS pro- ducer price index (PPD is more compl cated than using ENR indexes. In 1978, BLS indexed costs using 1967 as a basis (1967 ~ 100).” In 1992, BLS indexes costs using 1982 as a basis (1982 = 100).* So that costs may be updated for categories in which the basis for indexing has deen changed, BLS provides docu- ments called historicals. A historical ta- Dulates the entire history of index fig- ures for a single category in the PPI, using the current basis (1982 = 100). The BLS provides historicals free of charge. They may be obtained by con- tacting the most convenient BLS re- ional office and requesting a historical for each category under study. Using these historicals, BLS PPI fig- ures for 1978 are replaced in the calcula tion of current construction cost by ahis- torical index figure that uses the same basis as current PPIs, These modified indexes also appear in Table 2, For the BLS category, “valves and fit: tings,” for which figures are no longer being indexed, an alternate category has been selected to replace it, “miscella- neous general purpose equipment” (PPI commodity code 1149). This category was chosen over several others, such a8 “metal valves except fluid power,” “plumbing and heating valves,” and “metal pipe flanges, fittings and unions.” ‘The “miscellaneous general purpose equipment” category yields a median fig. ure, compared with fig ided by other categories. In addition, index fig- ures for it are available from BLS and need no extrapolation or averaging. ‘The current construction cost compo- nents are then calculated in the same way as when the ENR indexes are used. The updated April 1992 BLS and ENR indexes are also provided in Table 2.° The proce- dure for using BLS indexes for cost up- dating is given here. ‘Suppose the total construct a rectangular clarifier is $3-mi the percent cost of manufactured equip- ment is 27 percent or $810,000. The Oc- tober 1978 modified value of BLS “gen- eral purpose machinery and equipment” (Commodity code 114) is 72.9. The April 1992 value of index is 130.0. This cost componentcan be updated using current and modified cost indexes, The updated cost for the “manufactured equipment” component is 1.44 million dollars, Other cost components can also be updated to provide total updated construction cost. are based on energy requirements, main- tenance material requirements, and labor requirements. The energy’ cate- gory includes process energy and build ing energy. All energy components (such as diesel fuel, electricity, and natural gas) are expressed in terms of kilowatt-hours (kWh) per year. The annual energy cost is based on unit costs of $0.08/kW-h of electricity, O&M cost equations also developed via computer. The generalized O&M cost equations were also generated using the computer program PLOTIT The USEPA report served as the data source for these equations Thirty-five general- ized O&M cost equations for many unit, processes are given, along with the con- struction cost equations in Table 1. The applicable range of these equations and the percentages for three cost compo- nents (energy, maintenance, and labor) are also provided in this table. Costs updated through three compo- nents. Updating of O&M costs may be SR QASIM ET AL, 6Laccomplished by updating the three indi- ‘vidual components: energy, labor, and maintenance material. The energy and labor costs are updated in proportion to the current unit costs of electrical power G/RWh) and labor rate ($/bour). Main- tenance material costs are updated using the PPL for finished goods. The mainte Actual costs depend heavily on the site conditions, climate, competition among bidders and suppliers, and general local and nationwide economic conditions. nance material costs used in cost devel- ‘opment are based on October 1978 BLS PPI for finished goods of 199.7." Be- ‘cause this number comes from reports that used 1968 = 100 asa basis, itmust be modified. Using BLS PPI historicals, 199.7 is re placed with a modified index value (1982 = 100) of 71.6." The current April 1992 PPL for finished goods is 122.2.° The cost of chemicals required for process opera- tion must also be added to obtain total O&M costs. Expected chemical costs can be readily obtained from prospective suppliers. Equivalent cost and present worth ‘must be determined to compare alternatives ‘The procedure for cost comparison of alternatives includes determination of the present worth and equivalent annual costs for each project alternative. The present worth may be thought of as the sum that, ifinvested now at a given rate, ‘would provide exactly the funds required to make all necessary expenditures dur- ing the planning period. Equivalent an- rua cost is the expression of @ nonuni form series of expenditures used as a ‘uniform annual amount to simplify calcu lations of present worth. Detailed proce- dures for making these calculations are explained in many textbooks." ‘The present worth of annual O&M cost, capital recovery factor, and equiva- lent annual costs is obtained from Eqs 1, 2,and 3, Preset woth of annual O&M ons, 8= (ial annal 8M on} B=") Capital recovery factor = ia" @ (asia Baaivalet annual costs, $/y= project preset (3) worth (capital recovery facto) 62 MANAGEMENT AND OPERATIONS inhi randy ~years. The procedure for developing the costs for unit comparison s shown inthe following example. Calculate the con- struction, O&M costs, total present ‘worth, tolal capital recovery factor, and equivalent annual cost for a rectangular Clarifier that has a total surface area of 400 ny. The interest rate is 6 Mi percent, and the design period is 15 years. * Calculate total construction cost, in- cluding 15 percent miscellaneous and contingency items (October 1978 dol- lars). The construction cost equation (taken from Table 1) is: CC = 30,290 + 537.2, in which x ~ basin surface area, im’, Thus, CC = 30,290 + 537.2 (400) = $245,170, + Calculate the O&M cost.The O&M cost equation is O&MC = &4 x0 + 1,900 = $6,134/s, * To uplate costs, the components of capital and O&M costs in various categories are calculated using the per- cent component daia given in Table 1. These cost components, updated to current dollars, are provided in Table ‘The updated April 1992 construction cost of the example clarifier is $410,000. Add to this value the special costs of general contractor's overhead and profit, engineering, land, legal, fs: cal, administrative, and interest costs during construction. These costs may vaty considerably for different pro- jects, Assume these costs represent 28 percent of the construction costs. ‘Thus, total construction cost of the basin, including these special costs, is $525,000. ‘The present worth of annual O&M cost, capital recovery factor, total project present worth and equivalent annual cost dre calculated from Eqs 1, 2 and 3. These values are: rest rate;m= design period, Present worth ofl O&M cost = $108,000, Capital reewery factor = 4046s, otal project prevent worth = *§109000 + 55,000- 5634000 Baviralintanaual cost = $66,407 year Generalized construction as well as O&M cost equations for waler treatment processes provide a convenient way to develop preliminary cost estimates of such processes during the planning phase, The capital cost updating proce- dure uses ENRand BLSindexes for eight cost component categories. ‘The total present worth and the equiv- alent annual costs calculated from these equations are used to compare the eco- nomics of the alternative treatment pro- cesses and major project components in order to arrange for project funding and to secure engineering design services. ‘The cost estimates developed from these generalized equations do not rep- resent the actual construction and O&M costs of a project, Actual costs depend heavily on the site conditions, climate, competition among bidders and suppl. ers, and general local and nationwide economic conditions. Therefore, actual construction and operation costs cannot be generalized and must be developed for each specific project. References L. Water Treatment Principles and Design, John Wiley & Sens, New York (1985), 2, Gusteman, RC: Cur, RL; é Haxse, SP. Estimating Water Treatment Costs, Vol. 1-4, BPA600/2-79-162, Cincinnati, Ohio (Aug. 1979) PLOTI Interactive Graphics and Stats. ties Program. Scott P. Eisensmith, (0980. 4. Engineering News Record, McGraw-Hill The, New York 5, Engineering News-Record, 201:14:117 ‘McGraw Hil In,, New York (Oct. 5, 1979) 6. Enginecring News-Record, 28:14:78 MeGraw Hill inc,, New York (Apr 6, 1982). 17, Producer Prices and Price Indexes: Data for 1978, US Dept. of Labor, Bureau of Labor Statistics, Library of Congress Cats. Jog No, 159-140, USGPO, Washington, D.C. 8, Producer Price Index Historical. US Dept. ‘of Labor, Burcau of Labor Statistics (Apr. 1992). 9, Producer Price and Price Indexes: Data for ‘April 1492, US Dept of Tabor, Bureau of Labor Statistics, ISSN 08825270, USGPO, ‘Washington, D.C. 10, Grave, Ea, an Jeese, W.G, Principles of Engincering Economy. Ronald Press, New York (th ed, 1970). LL, StavEns, OT. The Analysis of Capital Ex peniiture for Managers and Engineers Ginn Press, Needham Heights, Mass 980). 12, Qusim, SR Wastewater Treatment Plant: Planing Design and Operation. Holt, Rine- ‘hart and Winston, Now York (1985). » About the authors: ‘Syed Qasim isprofes- - sor of Civil Engineering at the University of Texas at Arlington, 416 Yates, Arlington, RS 1X 76019, He received Na PhD in Sanitary En- a gineering from West Virginia University in 1965 avd has more than 25 years of teaching, research, and consulting experience inthe theory and de- Sign of walerand wastewater treatment pro- cesses. He wrote the textbook Wastewater ‘Treatment Plants: Planning, Design and Operation, published by Holt, Rinehart and Winston in 1985, Siang W.’ Daniel) Lim is graduate-angincer with Albert H. Halff ‘and Associates, Ine, Consulting Engineers af Dallas, Texas. Edward M. Motteyis vice- president, Chiang, Patel and Associates, ‘Consulting Enginoors of Daas, Texas. Kim G, Heung is profesor and chairman, De- partment of Cil Engineering, Inka’ Uni- versity, Inci’on, South Korea JOURNAL, AWWA