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

Item

Unit

Qty

Rate

Piping Laying

IM

3,000

50

Piping Welding

ID

2,000

100

Pipe Support

MT

10

2,500

Insulation

M2

50

100

Painting

M2

100

50

Extra Labor Work

Mhrs

200

75

Radiography (10%)

50

Commissioning Labor

Mhrs

100

50

25 T Crane Supply

Days

2000

Ltrs

10

200

10 Enamel Paint Supply

---

Amount