1 Piping Costing

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SEMINAR ON SEMINAR ON

PIPING COSTING

Presented By Presented By Rajendra M. Bharate

(CEO & Managing Director)

CONCEPTS CLEARANCE COMPANY PVT. LTD.,

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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 )

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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

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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 of Technical 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 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

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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

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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) Piping Schedules & 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-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.

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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)

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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 below –

a) Shop Floor – 50 - 60 ID / Day / Welder

(Marking, Cutting, Grinding, Tacking etc..)

b) Erection at Site – 25 - 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 as Thk (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 ½)

• Painting (Primer, Intermediate, Final)

• Hydro Testing

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Various NDT Requirements

• Visual Inspection

• Radiography (X Ray, Gamma Ray)

• DP / MP Testing

• Vacuum Box Testing

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Various Piping Materials

• CS – API 5L, A 106 Gr B (IBR, Non IBR)

• LTCS – A333 Gr 6

• AS – A335 Gr P1, P11, P22

• SS – 304, 304 L, 316, 316 L, 347 H

• GI – IS 1239

• HDPE / Plastic

• C.I. / Cement Pipes

• Cement Lined

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PIPING ERECTION TYPES

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 –

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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 Piping – 10.0 to 12.0

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IM & ID Calculations from Isometrics

• Piping Material wise Grouping

• Sizewize Grouping

• Number of Fittings

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Piping Gangs

a) Piping Prefabrication –

Pipe Fabricator, Gas Cutter, Tack Welder,

Grinder, Helper

b) Piping Erection –

Pipe Fitter, Tack Welder, Rigger, Helper

c) Piping Welding –

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Weighted Inch-Dia

Piping 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 called Weighed Inch-Dia.

Example –

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

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Material wise Piping Consumables

(Sch 40 as a base) (Rs / Inch-Dia)

• C.S. – 30

• CSLT – 35

• AS – 80

• SS – 125

• G.I. – 10

• PVC / HDPE – 5

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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

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Direct Cost

Direct Labor

Direct Supervision

Consumables

R & M of Tools / Tackles & Vehicles

Rental Charges of Equipments

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Indirect Cost

Administrative Staff

Indirect Labor

Accommodation

Tools / Tackles & Vehicles Depreciation

Insurance

Preparatory Expenses

Travel

Bank Guarantees

General Expenses

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Total Price

Direct Expenses +

Indirect Expenses +

Material Supplies +

Subcontracting Charges +

Taxes & Duties +

Agents Commission +

Overheads +

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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 site normally 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 is converted 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.

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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 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.

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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 the Tender & ultimately ‘Shriniwas Construction Limited, Lucknow (UP)’ was Selected as a Final Contractor to Award the Contract being the Lowest Tender.

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Question –

1) 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 Top Management.

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Tender for Ammonia Fertilizer, Shahajanpur (UP) 2000 5 Days 25 T Crane Supply 9 50 100 Mhrs Commissioning Labor 8 50 ? ---Radiography (10%) 7 75 200 Mhrs Extra Labor Work

6 50 100 M2 Painting 5 100 50 M2 Insulation 4 2,500 10 MT Pipe Support 3 100 2,000 ID Piping Welding 2 50 3,000 IM Piping Laying 1 Amount Rate Qty Unit Item Sr