1 Piping Costing

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SEMINAR ON SEMINAR ON

PIPING COSTING PIPING COSTING

Presented By 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 BUSINESS PERFORMANCE PARAMETERS

1) Minimum Cost

2) Quality

3) On time Delivery4) 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 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 P

RE-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 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 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%)



TURNKEY ASPECT TURNKEY ASPECT

( LSTK / EPC / EPIC CONTRACTS )( LSTK / EPC / EPIC CONTRACTS )

Concept to Commissioning : Single Point Responsibility

1) Project Management 2) Engineering

3) Procurement

4) Quality Assurance

5) Construction

6) Commissioning



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



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.

(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

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..)



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 isSpecified as Thk (mm) x Width (Mtr)



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

• Chemical Cleaning etc..



Various NDT Requirements

• Visual Inspection

• Radiography (X Ray, Gamma Ray)

• DP / MP Testing

• Vacuum Box Testing

• Ultrasonic testing (UT) etc..



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



PIPING ERECTION TYPES PIPING ERECTION TYPES

a) Unit Piping –

Involved within the plant mostly coming on Equipments & has morenumber of welding joints is referred as Unit Piping.

b) Offsite / Rack / Yard Piping – Involved within the plant mostly on Racks & across the plant, but hasless 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.)

• Unit Piping – 1.5 to 2.0

• Offsite / Rack / Yard Piping – 3.5 to 4.0

• Cross-Country Piping – 10.0 to 12.0

• Under-Ground Piping – 4.0 to 6.0



IM & ID Calculations from Isometrics

• Piping Material wise Grouping

• Sizewize Grouping

• Number of Fittings

• Valves (Welded / Bolted)



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 –

Qualified Welder, Rigger, Helper



Weighted Inch-Dia

Piping involves various types of Schedules. To estimateMan-hours, Consumables etc.. for each Schedule, it isreally a tough task. Hence, all welding Inch-Dia are

converted to a 40 Schedule as a base. On this basis costingis 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

6” Dia 120 18 mm 100”D 300”D



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



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

AccommodationTools / 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) 6 Inch Size pipe having 15 Mtr length laid on a rack willhave 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)



Section B ( State True or False ) ( 5 Marks )

1) 6 Inch Sch 40 CS piping of 2000 Mtr is to be erected asOffsite Piping & the same quantity is to be erected as UnitPiping 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 convertedto 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 averageof 25-30 ID Productivity in a working shift of 8 hours.

5) The Piping, which is involved across cities & has lessnumber of welding joints, is referred Cross-country Piping



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 208Manhours, find total ManMonths spent on piping job.

3) One piping project has got total workers strength of 100during its peak period. Find out the total DirectSupervision strength (Engineers & Supervisors) as per thenormal 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 )

Shriniwas Constructions Limited, Lucknow (UP)

In one of the Fertilizer Plant near Shahajanpur (UP) somePiping 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 aFinal Contractor to Award the Contract being the Lowest

Tender.



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.



Tender for Ammonia Fertilizer, Shahajanpur (UP)

20010LtrsEnamel Paint Supply10

20005Days25 T Crane Supply9

50100MhrsCommissioning Labor 8

50?---Radiography (10%)7

75200MhrsExtra Labor Work 6

50100M2Painting5

10050M2Insulation4

2,50010MTPipe Support3

1002,000IDPiping Welding2

503,000IMPiping Laying1

Amount RateQtyUnit Item Sr