Factors affecting owning cost when pricing mechanical plant in estimation?

1. Equipment type and size: The cost of owning a mechanical plant will vary depending on the type and size of the equipment. Larger and more complex equipment will generally have higher owning costs due to factors such as maintenance, repairs, and operating expenses.

2. Age and condition of the equipment: Older equipment may require more frequent maintenance and repairs, leading to higher owning costs. Additionally, the condition of the equipment will impact its reliability and efficiency, which can affect owning costs.

3. Usage and utilization: The frequency and intensity of use of the equipment will also impact owning costs. Equipment that is used more frequently or in more demanding conditions may require more maintenance and repairs, leading to higher owning costs.

4. Location and environment: The location and environment in which the equipment is used can also affect owning costs. For example, equipment used in harsh or corrosive environments may require more frequent maintenance and repairs, leading to higher owning costs.

5. Availability of spare parts and maintenance services: The availability of spare parts and maintenance services for the equipment can also impact owning costs. Equipment that is difficult to source parts for or that requires specialized maintenance services may have higher owning costs.

6. Financing and insurance costs: The cost of financing and insuring the equipment will also impact owning costs. Higher interest rates or insurance premiums will increase the overall cost of owning the equipment.

7. Resale value: The resale value of the equipment should also be considered when pricing mechanical plant in estimation. Equipment with higher resale value may have lower owning costs over time, as the owner can recoup some of the initial investment when selling the equipment.

Operational Costs:

- Energy consumption: Operating costs for fuel or electricity to power the equipment.
- Maintenance and repairs: Regular maintenance and potential repairs to ensure optimal performance.
- Labor: Staffing costs for operators or maintenance personnel.

Capital Costs:

- Purchase price: Initial acquisition cost of the equipment.
- Installation and commissioning: Costs associated with installing and setting up the equipment.
- Infrastructure: Costs for any necessary infrastructure improvements, such as piping, wiring, or additional space.

Financial Considerations:

- Financing: Interest charges and repayment terms for equipment financing.
- Depreciation: The gradual loss of value of the equipment over time for tax purposes.
- Insurance: Cost of insuring the equipment against risks such as damage or theft.

Other Factors:

- Usage rate: The frequency and duration of equipment operation, which affects energy consumption and maintenance needs.
- Efficiency: The energy efficiency of the equipment, which impacts operating costs.
- Environmental regulations: Compliance with environmental regulations may require additional costs for emission control or waste disposal.
- Location: Geographical location can influence factors such as labor costs, energy prices, and availability of skilled technicians.
- Market conditions: Supply and demand for similar equipment can affect purchase price and maintenance costs.
- Technology: Advanced technologies may offer improved efficiency or reduced maintenance costs, but may also have higher purchase prices.
- Warranty: The duration and coverage of equipment warranties can influence repair costs and peace of mind.