The recommended practice (RP) described herein is for executing techno-economic evaluations of process oriented engineering projects. Most, if not all, cost engineers are involved in process-oriented techno-economic studies in the course of their work. Some concentrate in estimating only plant investment; others are involved in specific areas of cost estimating or only in financial analysis; still others, in overall economics. Adherence to a consistent set of process evaluation guidelines would improve the quality of these studies and would lower the cost to prepare them (improve productivity).

There are several ways of conducting technical and economic evaluations in the process industries and within these ways there are many variations. This recommended practice was developed to reduce the variations to a manageable level.