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Piping Costing Management 1648772220
Piping Costing Management 1648772220
Piping Costing Management 1648772220
PIPING COSTING
Presented By
Rajendra M. Bharate
(CEO & Managing Director)
CONCEPTS CLEARANCE COMPANY PVT. LTD.,
18/B3, Bandal Complex, Near PMT Depot, Paud Road, Pune – 38
BUSINESS PERFORMANCE PARAMETERS
1) Minimum Cost
2) Quality
3) On time Delivery
4) Profits – Return On Investment ( ROI )
5) Meeting Customer Expectation & Satisfaction
6) Competitive Advantage
7) Information ( All Right Factors )
8) Benchmarking – Adherence World Standards
PARTIES INVOLVED IN PROJECT
1) Owner (Client)
2) Shareholders
3) Financer
4) Licensor
5) Government (Statutory)
6) EPC Contractor (Equipment Vendor)
7) Various Contractors
8) Consultants
9) Detailed Design & Engineering etc..
PROCEDURE FOR TENDERING
1) Advertisement @ Intention
2) Submission of PQs
3) Evaluation of PQs
4) Issue of Tender to Pre-qualified Bidders (Techno-Com)
5) Submission of Technical Bids
6) Evaluation of Technical Bids
7) Submission of Commercial Bids
8) Evaluation of Commercial Bids
9) Finalization of Contractor & Issue of LOI
10) Contract Agreement
PRE-QUALIFICATION
1) Company Information
2) List of Directors, Management & Organization Chart
3) List of Clientele
4) Types of Work Done & Same Type of Experience
5) Work Completion Certificates
6) Details of Staff & Workforce
7) Details of Construction Equipments
8) Financial Capabilities from the Bankers
9) Memorandum & Articles of Association (Limited Co.)
10) Balance Sheet for Last 3 Years
TENDER / BID / PROPOSAL / QUOTATION
Technical Part
1) Technical Terms & Conditions with Deviations
2) Work Methods & Detail Technical Specifications
3) Equipment & Organizational Deployment
4) QA Plans, Planning, Control & Reporting Systems
5) Overall Schedule (Bar Chart)
6) Original Bidding Documents Stamped & Signed
Commercial Part
1) Price Schedule (Schedule of Rates)
2) Commercial Terms & Conditions
3) Rates for Extra Work
TYPES OF GUARANTEES
1) Project Management
2) Engineering
3) Procurement
4) Quality Assurance
5) Construction
6) Commissioning
FEW BASIC REQUIREMENTS
Inch-Mtr –
When a Pipe of 1 Inch Dia having a length of 1
Mtr is installed, it is termed as 1 Inch-Mtr.
(Ex. 6 Inch Pipe, Length 5 Mtr = 6 x 5 = 30 IM)
Inch-Dia –
When a Pipe of 1 Inch Dia Size is welded having 1
joint, it is termed as 1 Inch-Dia.
(Ex. 10 Inch Pipe, 4 Joints = 10 x 4 = 40 ID)
ManHour, ManDay & ManMonth
ManHour –
When 1 Worker works for 1 Hour, it is said 1 MH of work.
(Ex. 2 Workers worked 8 Hrs = 2 x 8 = 16 MH)
ManDay –
When 1 Worker works for 1 Day, it is said 1 MD of work
(Ex. 3 Workers worked 7 Days = 3 x 7 = 21 MD)
ManMonth –
When 1 Worker works for 1 Mth, it is said 1 MM of work
(Ex. 8 Workers worked for 5 Mths = 8 x 5 = 40 MM)
Piping Rates Quotation Basis
1) Per Mtr
2) Per Inch-Mtr
3) Per Inch-Dia
4) Per MT
5) Lumpsum
Piping Welding Productivity
• Visual Inspection
• Radiography (X Ray, Gamma Ray)
• DP / MP Testing
• Vacuum Box Testing
• Ultrasonic testing (UT) etc..
Various Piping Materials
a) Unit Piping –
Involved within the plant mostly coming on Equipments & has more
number of welding joints is referred as Unit Piping.
b) Offsite / Rack / Yard Piping –
Involved within the plant mostly on Racks & across the plant, but has
less number of welding joints is referred as Offsite Piping.
c) Cross country Piping –
Out of plant mostly coming across the cities & has naturally less
number of welding joints is referred as Cross-country Piping. (Oil,
Gas, Water)
d) Under Ground Piping –
Involved under the ground / buried may be within or outside the plant
& has less number of welding joints is referred as Underground Piping
Ratio of Inch-Mtr to Inch-Dia (Appr.)
• Sizewize Grouping
• Number of Fittings
a) Piping Prefabrication –
Pipe Fabricator, Gas Cutter, Tack Welder,
Grinder, Helper
b) Piping Erection –
Pipe Fitter, Tack Welder, Rigger, Helper
c) Piping Welding –
Qualified Welder, Rigger, Helper
Weighted Inch-Dia
Example –
Size Sch Thk Actual ID Wighted ID
6” Dia 40 6 mm 100”D 100”D
6” Dia 120 18 mm 100”D 300”D
Material wise Piping Consumables
• C.S. – 30
• CSLT – 35
• AS – 80
• SS – 125
• G.I. – 10
• PVC / HDPE – 5
Material wise Piping Rates (Only Factors)
(Considering CS as a base)
• C.S. – 1.00
• CSLT – 1.25
• AS – 2.50
• SS – 3.50
• G.I. – 0.60
• PVC / HDPE – 0.40
Direct Cost
Direct Labor
Direct Supervision
Consumables
R & M of Tools / Tackles & Vehicles
Rental Charges of Equipments
Power & Water consumption
Indirect Cost
Administrative Staff
Indirect Labor
Accommodation
Tools / Tackles & Vehicles Depreciation
Insurance
Preparatory Expenses
Travel
Bank Guarantees
General Expenses
Guarantee Obligation
Total Price
Direct Expenses +
Indirect Expenses +
Material Supplies +
Subcontracting Charges +
Taxes & Duties +
Agents Commission +
Overheads +
Profits
Section A ( Fill in the Blanks) ( 5 Marks )
1) 5 Welders work for one daily shift of 8 hours per day for
10 days. Calculate total man-hours worked by them.
2) Total work done on one piping job was of 5,200
Manhours. Assuming one ManMonth (MM) of 208
Manhours, find total ManMonths spent on piping job.
3) One piping project has got total workers strength of 100
during its peak period. Find out the total Direct
Supervision strength (Engineers & Supervisors) as per the
normal experience of few standard norms.
4) Write the Elements of Direct Cost.
5) Write the Elements of Indirect Cost.
Section D ( Full Descriptive Question ) ( 10 Marks )