Cost Estimates Piping R.A Dickson

 

Costing of Pipelines - 1 htp://www.pipingguide.ne/2009/04/cos htp://www .pipingguide.ne/2009/04/cosng-of-pipelin ng-of-pipelines-1.hml es-1.hml

1. Introduction • The selection of the optimal pipeline route, diameter, material, wall thickness, pump station location, pump units and operational equipment or facilities is typically the result of economic analysis and investment capital evaluation of the most reasonable scenarios developed through the design phase. • Typically, even before the detailed design of a pipeline system has begun, an order-ofmagnitude cost study will be performed, with the goal of determining the feasibility of continuing to invest time and capital in the design phase of the project. • For a typical cross country pipeline project, the cost of pipe and its associated construction and installation costs can be as much as !" of the capital investment , therefore , the selection of the pipe, with regard to the type of material, si#e etc. is very important. • $ piping works engineer requires not only wide engineering knowledge % not necessarily in depth , but certainly an understanding but he must also have an understanding of engineering economics, costs of metallurgical, methods of pipe fabrication, erection and sufficient knowledge of mechanical, civil, electrical and instrumentation engineering to discuss the requirements.

2. Direct and Indirect Costs Associated with Piping • The direct cost of piping is related to the purchase and installation of piping along with accessories. i.e. it deals with raw materials, labour, energy etc. • &ndirect cost includes' • (esign and engineering cost, which cover the cost of design and cost of )engineering* of the piping system, purchasing, procurement and construction supervision.

 

• +ontractors fees Technology Fee • +ontingency allowance, this is an allowance to cover for unforeseen circumstances  labour disputes, design errors etc..

3. Economic Evaluation of the Piping Sstem • $s the purpose of investing money in modern piping system is to earn money, some means of comparing the economic performance of piping is needed. • For a small piping system , and for simple choices between alternative processing schemes , the decisions can usually be made by comparing the capital and operating costs. /ore sophisticated evaluation techniques and economic criteria are needed when decisions have to be made between large, comple0 piping systems, particularly when the piping systems differ widely in scope, time scale, etc. • /aking major investment decisions in the face of uncertainties that  will undoubtedly e0ist about about plant performance, performance, costs, the market market 1overnment policy and the world economic situation, is a difficult and comple0 task if not an impossible task and in a large design organisation, the evaluation would be done by a specialist group.

!. Economics of Pipe Diameter " Concept • The si#ing of process lines can be divided into two categories 

2ines which do not contain pumping equipment



2ines which contain pumps or compressors

2ines in the first group are si#ed on the basis of available pressure drop,  while those in the the second must be based based on an economical economical pipe si#e  the smaller the pipe , the less the pipe costs but the higher the pumping costs, and thus an optimum si#e must e0ist.

 

3arado0ically, however, it is uneconomical to make economic studies on each process line for a proposed plant. The designer, therefore, must have some means of determining which lines justify careful cost analysis. The designer can select a conservative line si#e which will definitely fulfill the requirements. 4ut will the ne0t smaller si#e be more economical5 The only manner in  which this can can be determined definitely definitely is by careful careful economic analysis. &f the possible saving , however, is not far from the cost in the man-hours required to make the study, it is better to select the conservative si#e without further use of  valuable time. &f, on the other hand, the possible savings are substantial, then further detailed study is indicated.

#. Inch $eter and Inch Diameter Concept 3urpose' The purpose of inch meter and inch diameter is ' a. To find out piping erection load  b. /anpower planning planning c. 3iping work progress monitoring d. +osting

The following e0ample will illustrate the concept of the inch-meter and the inch-dia' 6.7 8lbow 9: si#e, 9! nos., are to be fitted in a pipeline. Find out the inch dia5  $ns' &nch dia ' si#e 0 no. of weld joints 0 no. of of elbows ; 9 0 9 0 9! ; ! inch dia. 6. 9 Find out the inch meter for 9! m pipeline of 9: si#e  $ns' &nch meter ; 3ipe si#e in inches inches 0 length in m ; 9: 0 9! ; . Transformer /T 77 mtr. 2ift J. Eopes ? pulleys . FF9 grinder . Iacksaw?Files etc. and other tools and tackles. 7!. 3ipe voice 77. 1 6 < 1rinder 79. $brasive cutting machine 7>. 1as cutting

14. Contractor $anpower ist of Piping *a+rication and Erection For piping, fabrication and erection' 7. 80perienced /echanical 8ngineer as in-charge 9. Cupervisor >. Iighly skilled fitter for CC >!< 

21. 7ow to use the 6 Sstem Ctep & ' +alculate the cost of the reference si#es of the strings of pipe in question. Ctep&& ' Then use the = factors to get the t he cost of the same string in the required si#e.

Continued to Costing of Pipelines - 2

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Costing of Pipelines - 2 htp://www.pipingguide.ne/2009/04/cos htp://www .pipingguide.ne/2009/04/cosng-of-pipelin ng-of-pipelines-2.hml es-2.hml

,eference8 I6D9S-,IA PIPI60 PIPI60 C7A,ES -. I--E-6 1S- ED. Industrial Piping, Piping, Charles T. T. Littleton Littleton,, formerly engineer in charge of Piping Piping,, American Cyanamid Co. First Ed. McGraw-Hill Book Co. ... The chater on Estimating Piping Piping Costs  Costs !y R. A. Dickson, Dickson, "tandard #il Co. of $ew %ersey is a &al'a!le addition

Continued from : Costing of Pipelines : 1 22. Piping Cost Estimation 3iping always represents a si#able part of the total installed cost of any process plant. &t may run to 9! percent or even more of the entire cost of the plant, including land and  buildings, and may total total from around 7! 7! percent to as high high as two-thirds of the cost of the equipment. 4ut piping is usually complicated and often consists of a myriad of small, rather ine0pensive parts. &ts estimation can therefore be a headache to the estimator. &t makes his problem no easier that he is often asked for a reasonable estimate long  before the final plans plans e0ist and before before the project engineers have any idea how how much piping will actually be needed. &n this case, he must not only be an estimator, but he must be able quickly to convert the preliminary flow sheet into a fair appro0imation of an actual design to know what his estimate will involve. For this purpose the ability to make quick and rather accurate free-hand isometric sketches is of inestimable value. Iowever, thesystem estimation of theby piping need not be arduous the estimator will make use of the = developed the another during the lastif several years. This system, first disclosed in +hemical 8ngineering E.$. (ickson, +hem. 8ng., =ovember, 7 has now been carried much further and includes most kinds of pipes  with which the the chemical engineer is is likely to be concerned. concerned. The = Cystem of +alculating 3iping +osts. This new system of estimating piping cost is quicker than the piece-by-piec piece-by-piece, e, and more accurate than the )finaglingfactor,* system, the two methods ordinarily used by estimators. The first requires picking of each length of pipe with its fittings and valves and pricing the material and labour costs in detail, then adding them all up for the total cost. The second consists in taking a percentage of the total cost of a project as the cost of the piping. This percentage the )finagling factor,* is supposed to be around > of the =fittings Thevalves costs of 3ipe,  butt-welded, schedule black, with ffactors. ittings and as different specified,si#es specified, will of besteel to each other appro0imately as the = factors. $s the table shows, a string of 9-in nominal diameter pipe will cost 7.< times as much as the same string in 7 in. Take, for e0ample, a string of such pipe of 9-in nominal diameter' &tem A!!D pipe J fittings 9 valves  

Onit +ost P !.9> J.!! 99.!!

Total +ost P 77A.!!