# Lawrence Berkeley Laboratory 1 Cyclotron Road Berkeley, California 94720

(510) 486-4000 ® FTS 451.4000


### ENERGY AND ENVIRONMENT DIVISION ENERGY ANALYSIS PROGRAM BUILDING 90 MAIL STOP 4000 FAX (510) 486-6996 [FTS 451-69961

DATE: - June 5. 1996 FAX Number: 202-586-4617

Michael Raymond TO: 

### 2{32-586-9611

,., 

### Office or Location Phone Number

FROM: - Gre osenquis 510-486-6851 

### Office or Location Phone Number

ADDITIONAL INSTRUCTIONS Michael, Attached is a write up on how I came up with the installed costs for the central a/c and heat pump analysis

. The installed costs were based on data from two sources: 1) Chas Roberts Air Conditioning, Inc. and 2) the National Association of Plumbing, Heating, Cooling Contractors (NAPHCC). I didn't use all the installed cost data from my previous fax because it was received after I had completed the analysis

. Hopefully the attached write up dearly explains how the installed costs were arrived at. Please let me know if there is any confusion.



### Pages including this cover: 3 

# Lawrence Berkeley Laboratory 1 Cyclotron Road 

### Berkeley, Califomia

### 94720 (510) 486-4000 • FrS 451-4000 

## ENERGY AND ENVIRONMENT DIVISION ENERGY ANALYSIS PROGRAM

BUILDING 90 FAX (510) 

### 486-6996 MAIL STOP 4000 

### [FrS 451-6996]



### DATE:

_ June 5. 1996



### TO: Michael 

### Raymond

FROM: 

### Greg Rosenquist FAX Number:



### Office 

### or Location

Office 

### or Location 202-586-4617

2Q2-586-9611 Phone Number

S10-486-6851 Phone Number



### ADDITIONAL INSTRUCTIONS Michael, Attached is a write up on 

### how I came 

### up with the installed costs for the 

### central 

### ale aIld heat pump 

### analysis. The installed costs were based on 

### data from two sources: 1) Chas Roberts Air Conditioning, Inc. and 2) the National Association of Plumbing, Heating, 

### Cooling Contradors (NAPHCC). 1 

### didn't use all the installed 

### cost data from 

### my previous fax because it 

### was received after 1

### had cOll1pleted 

### the analysis. 

### Hopefully the 

### attached write up clearly 

### explains how the installed costs were arrived at. Please let me know if 

### there is 

### any confusion.

Pages including this cover: 

## ---::3::..-_ 

# JInstalla.tioa costs were derived from both installed cost and equipment cost data. The

installed cost data that were supplied included not only the cost to the consumer of installing the equipment but also the consumer cost of the equipment. Chas Roberts Air Conditioning, Inc. [endnote] and the National Association of Plumbing , Heating, Cooling Contractors (NAPHCC) (endnote) provided installed cost data based on replacing existing systems. Since the installed cost required by the engineering analysis must also account for the installation of equipment which is not being installed to replace an existing system (termed here as a "new" rather than a replacement system), a calculation method was developed to derive the installation cost of "new" systems. The following equation. was used to derive the installed cost of "new" systems.

IC„ew = (.IG,en; ^cY - (timeruntrne ® ^or,a, ) - Cost '+ Cost,,, j ® Markup.,,..,,,. (5.4)


### where IC„e,,, = Cost of Installing New System (1992$) 

### IC-,, e = Installed Cost ofReplacing Existing System ( 1992$) time,,,,,, = time assumed to remove existing system (hour) =1 hr Labor, , = national labor rate (S/hr) _ $25 .35/hr [endnote ; Means] Cost,,,, = assumed cost of materials and labor to hook replacement unit

up to existing ducts (1992$) = $100 Cost ,.,,. = assumed cost of installing new thermostat (1992$) = $50 Markupco,,,,0,o, = markup of contractor-to-consumer = 1.1 [endnote; Means] Table 5.14 summarizes the installed costs for each of the four representative baseline systems. The installed cost data from Chas Roberts and NAPHCC includes all contractor-to. consumer markups as well as any taxes. In Table 5 .14, the aggregate installed cost is determined with the following equation.
ICaggregate = (ICreptace ° 70%) + (IC,, • 30%) 

### (5.5)
where JCu,,,.19Oft = Aggregate installed cost (1992$) 7U°: = Percentage of systems installed as replacements [endnote) 10°ir = Percentage of systems installed as "new" [endnote] 

### lnstallHti.o(l costs 

### were derived from both installed 

### COst and equipment cost data. The installed cost data that were supplied included not only the cost to 

### the consumer ofinstalling the 

### eqUipment but 

### also the 

### consumer cost of the 

### equipment. Chas Roberts 

### Air 

### ConditiOning. Inc. [endnote] and the National Association of Plumbing, Heating. Cooling Contractors (NAPHCC) (endnote] provided 

### installed cost databased onreplacing existing systems. Since the 

### installed. cost required bythe engineering analysis must also account for the installation ofequipment whichis not being installed to replace an existing system (termed here as a "new" rather than a 

### replacement system), a 

### calcuimion method 

### was developed to 

### derive the installation 

### cost of 

### "new" 

### systems. The following equation. was used [0 derive 

### the installed cost of 

### "new" systems.**IC,~** = [IC'CPitl(Y!

-**(time~,htnIe** 

### • Labor

# raJ

- Cost dsta +**Cost,/~** 

### • MarkUPCOl'lrrQClor 

### (5.4)
where 

### TC new 

### IC,epiact: limeremcrvc 

### Laborr= CostdJlc1 ;;: Cost 

### ofInstalling New System (1992$) 

### =Installed Cost ofReplacing ExistingSystem (1992$) 

# =

time assumed to remove existing system (hour) =1 br


### == national laborrate ($Jhr) :; $25.351hr [endnote; Means]


### = 

### assumed cost ofmaterials 

### and labor to hook replacem.ent unit

up to eXisting 

### ducts (1992$)::: $100 Costr,suu 

## =assumed costofinstalling new thermostat (1992$) ;:; $50 

### Markupco,,"fJClO';; markup 

### ofcontractor-to-consumer

### = 1.1 [endnote; Means] Table 

### 5,14 summarizes the installed costs for each of the four representative 

### baseline systems. The installed cost data from Chas Robens and NAPHCC includes all contractor-toconsumer murkups as 

### well as 

### any taxes. 

### InTable 5.14. the aggregate installed cost is detennined with the 

### followmg equation.

ICaggrcgate = (lCrep/Qce • 70%) + 

### (ICfILW • 30%)
where**fC(J!:wtgQl~** 70% 309;'· :::: Aggregate installed 

### cost (1992$) 

### :::: Percentage ofsystems installed as replacements [endnote) 

## =Percentage of systems installed as "new" [endnote] (5.5)Table 5.14 Installed Costs of Baseline Systems Installed Cost of Replacing Existing System Installed Cost Aggregate S

### ystem Type Chas Roberts 1992$ NAPHCC

1992$ Average

1992$ of New System

1992$ InstaIM Cost

1992$ A/C, Split System, 3 --(on $1,707.20 $2,494.00 $2,100.60 $2,227.78 $2,138.75 A/C, Split System. 5 ton $2,560.80 $4,023.00 $3,291.90 $3,538.21 $3,365.79 Heat Pump, Split. System, 3-ton $2,219.36 $3,065.00 $2,642.18 $2,853.51 $2,696.58 Heat Pump, Split Sy.te m 5-ton $3,147.65 $4,488 .00 $3,817.83 $4,116.73 $3,907.50
With the aggregate installed cost established for each of the representative baseline systems, the installation cost can be derived by knowing the consumer cost of the equipment. The installation cost is simply the installed cost minus the equipment cost. Consumer costs of equipment were determined from data provided by Sid Harvey's [endnote], a national contractor of residentialheating and cooling. systems. The consumer costs provided by Sid Harvey's included a contractor-toconsumer markup of 35% as well as a tax rate of 6%. From the consumer cost of the equipment, manufacturer-to-consumer markups can also be derived if the manufacturing costs of the baseline systems are known. The manufacturer-to-consumer markup for the equipment is simply the consumer cost divided by the manufacturing cost. Manufacturing costs were developed from manufacturer data provided by ARL Table 5.15 summarizes the consumer equipment costs, the installed costs. the installation costs, the manufacturing costs, and the manufacturer-to-consumer markup for each of the four representative baseline systems. It should be noted that the manufacturer-to-consumer markups provided in Table 5.15 are those used to derive the equipment costs for each of the design options in Tables 5.2 through 5.5.


### Table 5.15 Consumer Costs, Installed Costs, Installation Costs, Manufacturing Costs, and Markups of Baseline Systems

System Type Consumer Equipment Cost Aggregate

Installed Cost Installation

cost Manufacturing

Cost Manufacturerto-Consumer Markup 1992$ 1992$ 1992$ 1992$ A/C, Split System. 3-con $1,166.04 $2,138.75 $972.71 $474.00 2.46 A/C, Split Syswnt, $. utit $1,871..46 $3,365.79 $1,494.33 $666.00 2.81 Heat Pump. Split Sy?rtetn, 3-ton $1,794.05 $2,696.58 $902.53 $677.00 2.65 Heat Pump, Split Systc'rn, 5-ton $2,745.96 $3,907.50 $1,16154 $934.00 2.94 

### a e 

# . e tso 

### ase e 

### iystems T bl 514 Install 

### d 

### Cos fB 

### lin 

### S InstaUed Cost otRephac:iDg Existing System Installed Cost Aaregate SymmType Chas Roberts NAPH.CC Average 

### otNew Systeln Installed Cost /992$ 1992$ 1992$ 1992$ J992$ Ale, Split System, 3'(on $1.707.20 $2,494.00 $2.100.60 $2,227.78 $2.138.15 AlC, SplitSystelll. 5wn $2.560.80 14,023.00
. $3.291.90 $3,538.21 $3,365.79 Heat Pump, Splil**Sy~(em,** 3-ton $2,219.36 $3,065.00 $2,642.18 $2,853.51 $2,696.58 Heat

### PumF, Split**Sy~tem,** 5-ton $3,147.65 $4,488.00 $3.817.83 $4,116.73 53.907.50



### With the aggregate 

### installed cost established for each ofthe

### representative baseline systems, 

### lhe installation**'~OSI** canbe 

### derived by knowing

### the consumer

### cost of

### the equipment. The

### installation cost 

### is simply 

### the installed cost 

### minus the 

### equipment cost. Consumer 

### costs of

### equipment were determined from data provided by Sid Haxvey's [endnote}, a national contractor of residential heating and cooling systems. 

### The consumercosts provided by Sid

### Harvey's included a 

### contractor-toconsumer 

### markup of 35% as wen as a [ax rate of 6%. From the consumer cost ofthe equipment, znanufacturer-to-consumer markups can also be derived ifthe manufacturing costs 

### ofthe 

### baseline systems are 

### known. The manufacturer-to-consumer markup for 

### the equipment is simply the 

### consumer cose di

### vided by the manufacturing cost. Manufacnuing costs were developed from manufacturer data provided by ARI. Table 

### S.15 summarizes the consumer equipment costs, the installed costs. the installation costs, the manufacturing costs, and the manufacturer-Io-consumer 

### markup for eacll of the four representative baseline systems. 

### It should be noted that the manufacturer-to-consumer 

### markups provided in 

### Table 5.15 are those used to derive the 

### equipment costs for 

### each ofthe deSign options in 

### Tables 5.2 through 5.5.



### Table S.15 Consumer Costs, 

### Installed Costs, Installation Costs, Manufacturing 

### Costs, and 

### MarkupsofBaseline Systems Consumer Aggregate ManufacturerEquipment Installed Installation Manufacturing to-CoDSllmer System Type Cost Cost Cost Cost Markup 1992$ 1992$ 1992$ 

### 1992$ NC. Split System. 3--lOn $1.166.04 $2,138.75 $972.71 $474.00 2.46 NC, Split System;**~.!.HlIl** $1,871..46 $3.365.79 $1,494.33 $666.00 2.81 Heat Pump. Split**Sy~tetn,** 3-ton $1,794.05 $2,696.58 $902.53 $677.00 2.65 Heat Pump, Split Syskm, S-[on $2,745.96 $3.907.50 $1.161.54 $934.00 2.94