PIPING ENGINEERING

INTRODUCTION TO
PROPOSAL ENGINEERING
 PIPING ENGINEERING

WHAT IS A PROPOSAL?

IT IS A BID FOR A JOB.

IT CONSISTS OF:
 TECHNICAL PROPOSAL &
 COMMERCIAL PROPOSAL
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 TECHNICAL PROPOSAL

- REVIEW OF TENDER DOCUMENTS AND SPECIFICATIONS

- DEFINE AND IDENTIFY SCOPE OF WORK
- GENERATE TENDER QUERIES TO OBTAIN
CLARIFICATIONS FROM CLIENT
- OPTIMISE LAYOUTS AND SPECIFICATIONS WHEREVER
POSSIBLE
- LIST ASSUMPTIONS, DEVIATIONS & EXCEPTIONS
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 COMMERCIAL PROPOSAL

DETERMINE THE COST OF THE PROJECT

- MATERIAL COST
- CONSTRUCTION COST
- ENGINEERING COST
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 MATERIAL COST

INFORMATION/DATA REQUIRED FOR WORKING OUT THE

MATERIAL COST:
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 MATERIAL COST

INFORMATION/DATA REQUIRED FOR WORKING OUT THE

MATERIAL COST:
- BILL OF MATERIALS
- UNIT PRICES OF MATERIALS
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 BILL OF MATERIALS (BOM)

- IT IS THE SINGLE MOST IMPORTANT ACTIVITY IN A
PROPOSAL
- ACCURACY OF THE MATERIAL COST DEPENDS UPON THE
ACCURACY OF THE BOM
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 ACCURACY OF THE BOM DEPENDS UPON

- THE ACCURACY OF THE INPUT DOCUMENTS

- SKILL OF THE ESTIMATOR
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 INPUT DOCUMENTS

- PIPING SPECIFICATIONS
- PLOT PLANS
- P & IDs
- PIPING LAYOUTS (IF AVAILABLE)
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 ACCURACY OF INPUT DOCUMENTS

- VARIES FROM ONE PROPOSAL TO ANOTHER

- CAN BE VERY DETAILED AND COMPREHENSIVE OR
- CAN BE VERY SKETCHY AND WITH MUCH MISSING
DATA
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 WORKING WITH THE INPUT DOCUMENTS

- ENGINEERING SKILLS ARE REQUIRED TO IDENTIFY THE
MISSING OR INACCURATE DATA

 AFTER IDENTIFICATION
- RAISE TECHNICAL QUERIES TO THE CLIENT
- REQUEST RELEVANT DETAILS FROM OTHER
DISCIPLINES
- MAKE LOGICAL ASSUMPTIONS BASED ON SOUND
ENGINEERING PRACTICE
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 PLOT PLANS

THE TENDER DOCUMENT MAY CONTAIN

- FAIRLY DETAILED PLOT PLANS OR
- VERY ROUGH PLOT PLANS OR
- NO PLOT PLANS AT ALL
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 PLOT PLANS

- DEVELOPMENT OF PLOT PLANS IS AN IMPORTANT

ACTIVITY
- IT IS AN INPUT TO OTHER DISCIPLINES
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 PLOT PLANS SHOULD CONTAIN THE FOLLOWING MINIMUM BASIC

INFORMATION:

- LOCATION OF ALL EQUIPMENTS

- LAYOUT OF MAJOR PIPE RACKS & SLEEPERS
- GRADE ELEVATIONS AS DETERMINED BY CIVIL
- PAVED AREAS AND BUNDED AREAS
- MAJOR PLATFORMS AND STRUCTURES
- LAYOUT OF ROADS
- COMPLY WITH SAFETY REQUIREMENTS
- LAYOUT SHOULD BE OPTIMISED
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 EXAMPLE OF AN OVERALL PLOT PLAN

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 EXAMPLE OF A UNIT PLOT PLAN

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 WORKING OUT THE MTO WITH P&IDs

THE MTO OF FOLLOWING ITEMS IS DONE DIRECTLY FROM

THE P&IDs
- VALVES
- FLANGES
- FITTINGS (EXCEPT ELBOWS)
- SPECIAL ITEMS
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WORKING OUT THE MTO WITH THE P&IDs

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 WORKING OUT THE MTO WITH PLOT PLANS

THE MTO OF FOLLOWING ITEMS IS DONE FROM THE PLOT

PLANS
- PIPES
- ELBOWS
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 WORKING OUT THE MTO

WITH PLOT PLANS
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MATERIAL COST

 OBTAIN PRICES FROM VENDORS

 USE IN-HOUSE DATA i.e. PRICES FROM PREVIOUS
PROJECTS
 ESTIMATE BASE ON TONNAGE, PERCENTAGES, ETC.
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MATERIAL COST

OBTAINING PRICES FROM VENDORS

PROCEDURE IS SIMILAR TO THAT IN PROJECTS:

 ISSUE INQUIRY REQUISTIONS

 ISSUE TECHNICAL QUERIES (TQs), IF NECESSARY
 DO TECHNICAL EVALUATION
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MATERIAL COST

 BID TABULATIONS BY PROCUREMENT DEPARTMENT

(COMPARISION OF PRICES OF DIFFERENT BIDDERS)
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MATERIAL COST

 USE THE LOWEST PRICES OF TECHNICALLY ACCEPTABLE

BIDS
 USE PRICES OF CLIENT APPROVED VENDORS
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MATERIAL COST

USING IN-HOUSE DATA

CAUTION IS REQUIRED IS USING SUCH DATA SINCE

 THE SPECIFICATIONS OF THE AVAILABLE DATA MAY NOT

EXACTLY MATCH THAT OF THE REQUIRED DATA
 PRICES MAY BE OUTDATED DUE TO ESCALATION
 AN ADJUSTMENT FACTOR (BASED ON JUDGEMENT) MAY
HAVE TO BE APPLIED TO TAKE CARE OF THE ABOVE
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MATERIAL COST

THE PRICING OF SOME ITEMS IS ESTIMATED AS PERCENTAGES:

 BOLTS AND GASKETS (40% OF FLANGES)

 COMMISSIONING SPARES FOR VALVES (2~5% OF VALVES)
 CUTTING, WASTAGE AND EXPECTED GROWTH DURING
PROJECT EXECUTION (5~10 % OF PIPES, FITTINGS,
FLANGES AND VALVES)
 PIPE SUPPORTS (2.5% OF PIPES)
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MATERIAL COST

ROUGH/PRELIMINARY COST ESTIMATION

 THIS CAN BE DONE BASED ON TONNAGE
 E.g. IF THE TOTAL WEIGTH OF CS PIPES IS 100 TONS AND IS
THE COST IS 1500 USD/TON, THEN THE CS PIPE COST CAN
BE ESTIMATED TO BE 150,000 USD.
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MATERIAL COST
A TYPICAL PIPING MATERIAL COST SUMMARY SHEET
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CONSTRUCTION COST

 THE CONSTRUCTION BILL OF QUANTITIES (BOQs) IS

PREPARED AND ISSUED TO THE CONSTRUCTION SUB-
CONTRACTOR

 THE COST IS WORKED OUT BY THE SUB-CONTRACTOR

BASED ON THE BOQs
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CONSTRUCTION BOQs

THE BOQs CONTAIN THE FOLLOWING DETAILS:

 NUMBER OF WELD JOINTS FOR EACH PIPE SIZE AND THICKNESS

 WELDING INCH-DIAMETERS (INCH-DIA)
 PIPE LENGTHS OF EACH SIZE TO BE ERECTED
 NUMBER OF WELD JOINTS TO BE RADIOGRAPHED
 NUMBER OF WELD JOINTS REQUIRING POST-WELD HEAT
TREATMENT (PWHT)
 PIPE LENGTHS OF EACH SIZE REQUIRING COATING & WRAPPING
FOR UNDERGROUND PROTECTION
 SURFACE AREA OF PIPING FOR PAINTING
 PIPE QUANTITIES OF EACH SIZE REQUIRING INSULATION OF
DIFFERENT THICKNESSES
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CONSTRUCTION BOQs

QUANTIFICATION OF FABRICATION WORK

 NUMBER OF WELDING JOINTS

 INCH-DIAMETERS (INCH-DIA)
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CONSTRUCTION BOQs

WHAT IS “INCH-DIA”?
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CONSTRUCTION BOQs

CALCULATION OF INCH-DIA

 INCH-DIA = (NUMBER OF JOINTS) * (PIPE SIZE IN INCHES)

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CONSTRUCTION BOQs

FIND OUT THE WELDING JOINTS

AND “INCH-DIA”
OF THESE ISOMETRICS
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CONSTRUCTION BOQs
 BILL NO. 4
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CONSTRUCTION BOQs
 BILL NO. 8
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CONSTRUCTION BOQs
 BILL NO. 9
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ENGINEERING COST

THIS IS BASED ON THE TOTAL MANHOURS THAT WILL BE

SPENT IN EXECUTING THE ENGINEERING OF THE PROJECT.

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ESTIMATION OF ENGINEERING MANHOURS

THIS IS GENERALLY BASED ON

 NUMBER OF LINES IN THE P&IDs
 NUMBER OF TIE-INS
 NUMBER OF PIPING SPECIFICATIONS
 NUMBER OF DRAWINGS (PLOT PLANS, PIPING LAYOUTS,
ISOMETRICS) TO BE GENERATED
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ESTIMATION OF ENGINEERING MANHOURS

 THE NUMBER OF DRAWINGS IS ESTIMATED BASED ON THE

PLOT AREA AND THE DRAWING SCALES TO BE FOLLOWED

 CERTAIN NORMS FOR UNIT MANHOURS HAVE BEEN

DEVELOPED BASED ON PAST EXPERIENCE
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 ESTIMATION OF THE NUMBER OF PIPING LAYOUTS

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ESTIMATION OF ENGINEERING MANHOURS

SAMPLE
ENGINEERING
MANHOURS
ESTIMATION
SHEET
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INPUT TO OTHER DISCIPLINES

 PIPING IS RESPONSIBLE TO GIVE CORRECT AND RELIABLE

INPUT TO OTHER DISCIPLINES
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INPUT TO OTHER DISCIPLINES

MAJOR INPUT TO CIVIL:
 PIPERACK/SLEEPER SIZES AND LOADING
 SPECIAL PIPE SUPPORTS
 OPERATING PLATFORMS AND CROSSOVERS
 PAVING REQUIEMENTS
 TANK BUND DETAILS
 PITS FOR UG VESSELS/VALVES/DRAINS, ETC.
 CULVERTS
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INPUT TO OTHER DISCIPLINES

TYPICAL INPUT TO CIVIL:
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INPUT FROM OTHER DISCIPLINES

MAJOR INPUT FROM PROCESS

 P & IDs
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RISKS IN A PROPOSAL

 WHAT ARE THE RISKS?

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RISKS IN A PROPOSAL

 SCOPE OF WORK IS NOT WELL DEFINED

 SPECIFICATIONS ARE SKETCHY OR NOT THERE
 P&IDs ARE PRELIMINARY AND DO NOT COVER THE
COMPLETE SCOPE OF WORK
 SUFFICIENT DATA ON THE PLOT REGARDING SIZE AND
GRADE ELEVATIONS IS NOT AVAILABLE
 SUFFICIENT AND ACCURATE DATA OF EXISTING FACILITIES
IS NOT AVAILABLE
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RISKS IN A PROPOSAL

WORK TOWARDS MITIGATING RISKS

 REQUEST AND GET AS MUCH INFORMATION AS POSSIBLE
FROM OTHER DISCIPLINES
 RAISE TENDER QUERIES FOR CLARIFICATION FROM THE
CLIENT
 INCLUDE ITEMS AS REQUIRED BY GOOD ENGINEERING
PRACTICE AND BASED ON PAST PROJECTS EVEN THOUGH
THEY ARE NOT SPECIFICALLY MENTIONED IN THE ITB (e.g.
DRAIN SYSTEM, UTILITY STATIONS, etc.)
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RISKS IN A PROPOSAL

AFTER TAKING ALL STEPS TOWARDS MITIGATING RISKS

PREPARE A LIST OF
 ASSUMPTIONS
 DEVIATIONS

IT WILL BE THE DECISION OF THE MANAGEMENT TO

 ABSORB THE RISK OR
 PRESENT IT TO THE CLIENT IN THE FORM OF
QUALIFICATIONS TO THE BID
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THANK YOU