Piping Cost

8/11/2019 Piping Cost

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PIPING COSTING

Presented By

Rajendra M. Bharate (CEO & Managing Director)

CONCEPTS CLEARANCE COMPANY PVT. LTD., 18/B3, Bandal Complex, Near PMTDepot, Paud Road, Pune38


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BUSINESS PERFORMANCE PARAMETERS

1) Minimum Cost 2) Quality 3) On time Delivery 4) ProfitsReturn On Investment ( ROI )

5) Meeting Customer Expectation & Satisfaction 6) Competitive Advantage 7) Information (All Right Factors ) 8) BenchmarkingAdherence World Standards


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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..


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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 ofTechnical Bids 7) Submission of Commercial Bids 8) Evaluation of Commercial Bids 9)

Finalization of Contractor & Issue of LOI 10) Contract Agreement


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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 CompletionCertificates 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


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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


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TYPES OF GUARANTEES

1) EMD (Alongwith Tender) (% or Fixed Amount) 2) Advance Payment (10 %) 3) Security

Deposit (10 %) 4) Retention Money (5%) 5) Performance Guarantee (10%)


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TURNKEY ASPECT ( LSTK / EPC / EPIC CONTRACTS )

Concept to Commissioning : Single Point Responsibility 1) Project Management 2)

Engineering 3) Procurement 4) Quality Assurance 5) Construction 6) Commissioning


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FEW BASIC REQUIREMENTS

1) Types of Projects (Fertilizers, ..) 2) Types of Disciplines (Civil, ..) 3) Types of Works

Involved (Piping, ..) 4) Types of Piping (Offsite, ..) 5) Piping Materials (CS, ) 6) PipingSchedules & Weights 7) Pipe Fittings & Valves 8) Fabrication of Pipes from Plates 9)

Painting Works (Primer, ..) 10) Insulation Works (Hot, ..) 11) NDT Works (Radiography ..)

12) Testing & Commissioning


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Inch-Mtr (IM) & Inch-Dia (ID) Inch-MtrWhen 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-DiaWhen 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)


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ManHour, ManDay & ManMonthManHourWhen 1 Worker works for 1 Hour, it is said 1 MH of work. (Ex. 2 Workers

worked 8 Hrs = 2 x 8 = 16 MH) ManDayWhen 1 Worker works for 1 Day, it is said 1 MD

of work (Ex. 3 Workers worked 7 Days = 3 x 7 = 21 MD) ManMonthWhen 1 Workerworks for 1 Mth, it is said 1 MM of work (Ex. 8 Workers worked for 5 Mths = 8 x 5 = 40

MM)


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Piping Rates Quotation Basis

1) Per Mtr 2) Per Inch-Mtr 3) Per Inch-Dia 4) Per MT 5) Lumpsum


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Piping Welding Productivity Normal Figures as per the Average working of any Company,

certain Norms are as belowa) Shop Floor50 - 60 ID / Day / Welder (Marking, Cutting,

Grinding, Tacking etc..) b) Erection at Site25 - 30 ID / Day / Welder (Laying, Fit-up,

Welding, Testing etc..)


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Piping Fabrication from Plates

Normally, above 30 Inch Size Pipes are Prefabricated out of Plates by Rolling & Welding.

Plate Bending Machine is very much important aspect in this Fabrication. It is Specified asThk (mm) x Width (Mtr)


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Related Piping Works

Pipe Supports Fabrication & Erection Mitres Fabrication (Tee, Reducer, Elbow ..) Insulation

(Hot & Cold) Sand Blasting (SA 2 ) Painting (Primer, Intermediate, Final) Hydro Testing

Chemical Cleaning etc..


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Various NDT Requirements

Visual Inspection Radiography (X Ray, Gamma Ray) DP / MP Testing Vacuum Box Testing

Ultrasonic testing (UT) etc..


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Various Piping Materials CS API 5L, A 106 Gr B (IBR, Non IBR) LTCS

A333 Gr 6 ASA335 Gr P1, P11, P22 SS304, 304 L, 316, 316 L, 347 H GIIS 1239

HDPE / Plastic C.I. / Cement Pipes Cement Lined


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PIPING ERECTION TYPES

a) Unit PipingInvolved within the plant mostly coming on Equipments & has more number

of welding joints is referred as Unit Piping. b) Offsite / Rack / Yard Piping Involved withinthe plant mostly on Racks & across the plant, but has less number of welding joints is

referred as Offsite Piping. c) Cross country PipingOut 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 PipingInvolved under the ground / buried may be within or

outside the plant & has less number of welding joints is referred as Underground Piping


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Ratio of Inch-Mtr to Inch-Dia (Appr.) Unit Piping 1.5 to 2.0 Offsite / Rack / Yard Piping

3.5 to 4.0 Cross-Country Piping10.0 to 12.0 Under-Ground Piping4.0 to 6.0


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IM & ID Calculations from Isometrics Piping Material wise Grouping Sizewize Grouping

Number of Fittings Valves (Welded / Bolted)


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Piping Gangs a) Piping PrefabricationPipe Fabricator, Gas Cutter, Tack Welder, Grinder,

Helper b) Piping ErectionPipe Fitter, Tack Welder, Rigger, Helper c) Piping Welding

Qualified Welder, Rigger, Helper


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Weighted Inch-DiaPiping involves various types of Schedules. To estimate Man-hours, Consumables etc.. for

each Schedule, it is really a tough task. Hence, all welding Inch-Dia are converted to a 40

Schedule as a base. On this basis costing is done, which becomes easier. This is calledWeighed Inch-Dia.

Example

Size 6 Dia 6 Dia Sch 40 120 Thk Actual ID 6 mm 100D 18 mm 100D Wighted ID

100D 300D


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Material wise Piping Consumables (Sch 40 as a base) (Rs / Inch-Dia) C.S. 30

CSLT35 AS80 SS125 G.I.10 PVC / HDPE5


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Material wise Piping Rates (Only Factors) (Considering CS as a base) C.S. 1.00

CSLT1.25 AS2.50 SS3.50 G.I.0.60 PVC / HDPE0.40


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Direct Cost Direct Labor Direct Supervision Consumables R & M of Tools / Tackles &

Vehicles Rental Charges of Equipments Power & Water consumption


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Indirect Cost Administrative Staff Indirect Labor Accommodation Tools / Tackles &

Vehicles Depreciation Insurance Preparatory Expenses Travel Bank Guarantees General

Expenses Guarantee Obligation


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Total Price Direct Expenses + Indirect Expenses + Material Supplies + Subcontracting

Charges + Taxes & Duties + Agents Commission + Overheads + Profits


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Section A ( Fill in the Blanks) ( 5 Marks ) 1) 6 Inch Size pipe having 15 Mtr length laid on a

rack will have how many total InchMtr of work -2) 12 Inch size pipe 5 Joints to welded will

be having total -------- Inch dia of work. 3) For Unit piping installed to be in Plant will have

Inh-mtr to Inch-dia ratio approximately -----4) Pipe Fabrication from Plates is done at sitenormally above ------- Inch Size Pipe. 5) Fabrication of Larger diameter Piping Fittings like

Tees, Elbow, Mitre, Reducer etc.. is done on basis of Per -- rate. (Please mention unit)


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Section B ( State True or False ) ( 5 Marks ) 1) 6 Inch Sch 40 CS piping of 2000 Mtr is to be

erected as Offsite Piping & the same quantity is to be erected as Unit Piping in one Refinery

Plant. Then Offsite piping will have Less number of joints than Unit piping. 2) SS rate will be

More than CS of the same schedule. 3) Various Schedules of Piping Inch-dia work isconverted to single unit of inch-dia of work for easy calculation purpose. This concept is

called Weighted Inch-dia. 4) One welder gang in Erection Site will give an average of 25-

30 ID Productivity in a working shift of 8 hours. 5) The Piping, which is involved across

cities & has less number of welding joints, is referred Cross-country Piping


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Section C ( Write Answers in Short ) ( 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 workersstrength 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.


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Section D ( Full Descriptive Question ) ( 10 Marks ) Shriniwas Constructions Limited,

Lucknow (UP) In one of the Fertilizer Plant near Shahajanpur (UP) some Piping Work is to

be done. Quantity is finalized by the Petroleum Company Design department & handed over

to Contracts Section for Estimation to find out the Total Cost involved. They floated theTender & ultimately Shriniwas Construction Limited, Lucknow (UP) was Selected as a

Final Contractor to Award the Contract being the Lowest Tender.


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Question1) Estimate the Total Cost in Rupees, which will be required to carry out the

work, as the Contracts Department has to get Top Management Approval. 2) Shriniwas

Construction Ltd., Lucknow has offered 10 % discount on Total Pricing. Hence, also

calculate the Discount & Final Tender Price in Rupees Separately to inform to the TopManagement.


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Tender for Ammonia Fertilizer, Shahajanpur (UP)Sr 1 2 3 4 5 6 7 8 9 Item Piping Laying Piping Welding Pipe Support Insulation Painting

Extra Labor Work Radiography (10%) Commissioning Labor 25 T Crane Supply Unit IM ID

MT M2 M2 Mhrs --Mhrs Days Ltrs Qty 3,000 2,000 10 50 100 200 ? 100 5 10 Rate 50 1002,500 100 50 75 50 50 2000 200 Amount

10 Enamel Paint Supply

Date post:	03-Jun-2018
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