August 2015

Columns

HP Project Management: An update on Lang factors

Lang factors are cited frequently and used within the HPI. With the ensuing changes, the question must be asked, “Do Lang factors still present a realistic approximation of capital cost today?”

Wolf, T. E., Project Management Consultant

Seventy years ago, Hans J. Lang, an engineer for Day & Zimmermann Inc. in Philadelphia, Pennsylvania, wrote a series of articles1–3 suggesting a quick method of estimating the final cost of capital projects. This simplified method was not intended to replace more detailed estimates, but instead to provide a quick, rule-of-thumb method that could replace the “guess.” His method was to present factors that, when multiplied by the cost of the plant equipment (including delivery cost), would yield the total installed plant cost. Using the cost data available to him for 14 plant estimates of various sizes and types, ranging from $100 M–$15 MM (in late 1940s $US), Mr. Lang iden

Log in to view this article.

Not Yet A Subscriber? Here are Your Options.

1) Start a FREE TRIAL SUBSCRIPTION and gain access to all articles in the current issue of Hydrocarbon Processing magazine.

2) SUBSCRIBE to Hydrocarbon Processing magazine in print or digital format and gain ACCESS to the current issue as well as to 3 articles from the HP archives per month. $409 for an annual subscription*.

3) Start a FULL ACCESS PLAN SUBSCRIPTION and regain ACCESS to this article, the current issue, all past issues in the HP Archive, the HP Process Handbooks, HP Market Data, and more. $1,995 for an annual subscription.  For information about group rates or multi-year terms, contact J'Nette Davis-Nichols at Jnette.Davis-Nichols@GulfEnergyInfo.com or +1 713.520.4426*.

*Access will be granted the next business day.

Related Articles

From the Archive

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}