FIXED CAPITAL ESTIMATION I o Direct cost =1. 45 onsite o Indirect Cost =Owner's Cost Contingency E Owner's Cost- engineering, supervision, construction expenses Rule of Thumb: Owner's Cost=0.05(Onsite +offsite 5 Contingency- Allowance for overlooked items and otherun anticipated expenses Rule of Thumb: Contingency=0.20(Onsite +Offsite A So, Fcap=(1. 45) (1.25)Onsite =1.8 Onsite Q And, Tiny=(1.3)(1. 8)Onsite=2.36 Onsite 10/21/99 Engineering economics 310/21/99 Engineering Economics 3 4 FIXED CAPITAL ESTIMATION II t Direct Cost = 1.45 Onsite t Indirect Cost = Owner’s Cost + Contingency ð Owner’s Cost - engineering, supervision, construction expenses Rule of Thumb: Owner’s Cost = 0.05 (Onsite + Offsite) ð Contingency - Allowance for overlooked items and other un￾anticipated expenses Rule of Thumb: Contingency = 0.20(Onsite + Offsite) t So, Fcap = (1.45)(1.25) Onsite = 1.8 Onsite t And, Tinv = (1.3)(1.8) Onsite = 2.36 Onsite