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Chapter 4 Capital costs:

Are equipment costs based on firm quotes? Are subcontract costs based on competitive bids? How much engineering has been done at the time of the AFE? (FEL?) How much contingency is in the estimate? Has a detailed CPM type schedule been developed? How many critical paths have been identified? How important is labor productivity to schedule and what is the local history?

Schedule:

- How important is weather predictability? - Is project being constructed inside an operating plant? - Are extensive tie-ins to an existing plant required? - What is performance history of key equipment suppliers? Are their
shops full now?

What is the performance history of key subcontactors? How heavy is the local contractor activity? What is the state of the technical knowledge? Were tests run in a fullscale plant? Pilot plant? Bench scale? Computer simulation only? What version of the equipment is being purchased? Serial number 10,000 or serial number l? Does FEMA data exist? Have we visited other buyers of this equipment? Has the equipment been used in similar service? Our exact service? How good are operating cost data? Energy? Material prices and efficiencies? Labor requirements? Have permits been applied for? Has hazard analysis been done? Are regulatory performance criteria set in stone? Will performance shortfalls result in plant shutdown? Are we on a consent order for schedule andor performance?

Technical performance:

Regulatory performance: