Basic Equipment Cost:
Basic equipment cost is the purchase cost of hardware based on data either from previously executed project cost or fresh budgetary quotations with essential adjustments, wherever essential, in sequence to retain the estimate on realistic footings. Budgetary quotes have been found normally padded to the extent of 20%. Sometimes it is probable to prune these costs during negotiations. This constitutes the basic cost of main equipment only with no strings like spares or duties and taxes or freight whatsoever attached to it.
As far as this element of cost is concerned, utilities have huge data and information. The requirement is to organize it and put it in the form of a database to be handy.