SEMINAR ON

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 .

) 10) Balance Sheet for Last 3 Years .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.

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. 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 . Planning.

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 ( LSTK / EPC / EPIC CONTRACTS ) Concept to Commissioning : Single Point Responsibility 1) Project Management 2) Engineering 3) Procurement 4) Quality Assurance 5) Construction 6) Commissioning .

…) 6) Piping Schedules & Weights 7) Pipe Fittings & Valves 8) Fabrication of Pipes from Plates 9) Painting Works (Primer.) 11) NDT Works (Radiography . ..) 12) Testing & Commissioning .. .. .) 2) Types of Disciplines (Civil..) 4) Types of Piping (Offsite.) 3) Types of Works Involved (Piping.FEW BASIC REQUIREMENTS 1) Types of Projects (Fertilizers. ...) 10) Insulation Works (Hot.) 5) Piping Materials (CS.. . .

Inch-Mtr (IM) & Inch-Dia (ID) Inch-Mtr – When a Pipe of 1 Inch Dia having a length of 1 Mtr is installed. 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. (Ex. it is termed as 1 Inch-Dia. 10 Inch Pipe. (Ex. 4 Joints = 10 x 4 = 40 ID) . it is termed as 1 Inch-Mtr.

2 Workers worked 8 Hrs = 2 x 8 = 16 MH) ManDay – When 1 Worker works for 1 Day. 8 Workers worked for 5 Mths = 8 x 5 = 40 MM) . it is said 1 MM of work (Ex. ManDay & ManMonth ManHour – When 1 Worker works for 1 Hour. (Ex. 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.ManHour. it is said 1 MH of work.

Piping Rates Quotation Basis 1) Per Mtr 2) Per Inch-Mtr 3) Per Inch-Dia 4) Per MT 5) Lumpsum .

Grinding. certain Norms are as below – a) Shop Floor – 50 .. Welding.30 ID / Day / Welder (Laying.) b) Erection at Site – 25 .) . Tacking etc. Cutting. Fit-up.. Testing etc.60 ID / Day / Welder (Marking.Piping Welding Productivity Normal Figures as per the Average working of any Company.

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) .

. Intermediate.) Insulation (Hot & Cold) Sand Blasting (SA 2 ½) Painting (Primer..Related Piping Works • • • • • • • Pipe Supports Fabrication & Erection Mitres Fabrication (Tee. Final) Hydro Testing Chemical Cleaning etc. Elbow . Reducer..

..Various NDT Requirements • • • • • Visual Inspection Radiography (X Ray. Gamma Ray) DP / MP Testing Vacuum Box Testing Ultrasonic testing (UT) etc.

Non IBR) LTCS – A333 Gr 6 AS – A335 Gr P1. P22 SS – 304. A 106 Gr B (IBR.I. 316.Various Piping Materials • • • • • • • • CS – API 5L. / Cement Pipes Cement Lined . 316 L. 347 H GI – IS 1239 HDPE / Plastic C. 304 L. P11.

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 . 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. Gas. (Oil. but has less number of welding joints is referred as Offsite Piping.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.

0 • Cross-Country Piping – 10.5 to 2.5 to 4.Ratio of Inch-Mtr to Inch-Dia (Appr.) • Unit Piping – 1.0 to 12.0 to 6.0 • Under-Ground Piping – 4.0 • Offsite / Rack / Yard Piping – 3.0 .

IM & ID Calculations from Isometrics • Piping Material wise Grouping • Sizewize Grouping • Number of Fittings • Valves (Welded / Bolted) .

Helper . Tack Welder.Piping Gangs a) Piping Prefabrication – Pipe Fabricator. Tack Welder. Helper c) Piping Welding – Qualified Welder. Helper b) Piping Erection – Pipe Fitter. Gas Cutter. Rigger. Rigger. Grinder.

– 10 PVC / HDPE – 5 . – 30 CSLT – 35 AS – 80 SS – 125 G.I.Material wise Piping Consumables (Sch 40 as a base) (Rs / Inch-Dia) • • • • • • C.S.

50 SS – 3.S.I. – 1.40 .25 AS – 2.60 PVC / HDPE – 0. – 0.00 CSLT – 1.50 G.Material wise Piping Rates (Only Factors) (Considering CS as a base) • • • • • • C.

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 .

rate.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 Size Pipe. 5) Fabrication of Larger diameter Piping Fittings like Tees. Reducer etc.. (Please mention unit) . Mitre.Inch dia of work. Elbow. 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 ------. is done on basis of Per -.

Then Offsite piping will have Less number of joints than Unit piping. is referred Cross-country Piping . which is involved across cities & has less number of welding joints. This concept is called ‘Weighted Inch-dia’. 5) The Piping. 3) Various Schedules of Piping Inch-dia work is converted to single unit of inch-dia of work for easy calculation purpose.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. 2) SS rate will be More than CS of the same schedule. 4) One welder gang in ‘Erection Site’ will give an average of 25-30 ID Productivity in a working shift of 8 hours.

Find out the total Direct Supervision strength (Engineers & Supervisors) as per the normal experience of few standard norms.Section C ( Write Answers in Short ) ( 5 Marks ) 1) 5 Welders work for one daily shift of 8 hours per day for 10 days. 4) Write the Elements of Direct Cost. 3) One piping project has got total workers strength of 100 during its peak period.200 Manhours. find total ManMonths spent on piping job. 5) Write the Elements of Indirect Cost. 2) Total work done on one piping job was of 5. . Calculate total man-hours worked by them. Assuming one ManMonth (MM) of 208 Manhours.

Lucknow (UP)’ was Selected as a Final Contractor to Award the Contract being the Lowest Tender. They floated the Tender & ultimately ‘Shriniwas Construction Limited. Quantity is finalized by the Petroleum Company Design department & handed over to Contracts Section for Estimation to find out the Total Cost involved.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. .

Lucknow’ has offered 10 % discount on Total Pricing.Question – 1) Estimate the Total Cost in Rupees. which will be required to carry out the work.. 2) ‘Shriniwas Construction Ltd. also calculate the Discount & Final Tender Price in Rupees Separately to inform to the Top Management. Hence. as the Contracts Department has to get ‘Top Management Approval’. .

500 100 50 Amount 6 7 8 9 Extra Labor Work Radiography (10%) Commissioning Labor 25 T Crane Supply Mhrs --Mhrs Days Ltrs 200 ? 100 5 10 75 50 50 2000 200 10 Enamel Paint Supply .Tender for Ammonia Fertilizer. Shahajanpur (UP) Sr 1 2 3 4 5 Item Piping Laying Piping Welding Pipe Support Insulation Painting Unit IM ID MT M2 M2 Qty 3.000 10 50 100 Rate 50 100 2.000 2.