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

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

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

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

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 is Specified 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 ) 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

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 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

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 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

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)

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. 5) The Piping, which is involved across cities & has less number 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 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.

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.

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)

Sr
1 2 3 4 5

Item
Piping Laying Piping Welding Pipe Support Insulation Painting

Unit
IM ID MT M2 M2

Qty
3,000 2,000 10 50 100

Rate
50 100 2,500 100 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