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Piping Cost Estimate
3

Piping Cost Estimate

Piping Cost Estimate

(OP)
Dear Engineers,

I would like to know, if there is such reference on current market price for various size/material for pipes and its fittings?
Glad if fellow engineers can help me on this.
My day to day work involves cost estimating for projects. Thus i really in need on this kind of info.

RE: Piping Cost Estimate

Call a local piping supply house and you will get the current price.

That is what the contractor's do.

RE: Piping Cost Estimate

gtimind,

It is always a good idea to search this forum for previous postings on the subject.  See this and others:

thread378-40704: Job Estimating - Piping Systems ?

Also, look for the book, "Estimating Piping Man-hours Manual", John S. Page, Gulf Professional Publishing, Fifth Edition, 1999, ISBN 088415-259-6.

Regards, John.

 

RE: Piping Cost Estimate

(OP)
Thanks Guys...

Anyway on current rapid price escalation especially on world oil which somehow indirectly (or maybe directly) affect the pricing of metal, my current cost estimate somehow goes haywire.
Like this morning, after opening commercial proposal from few contractors (oil & gas), the piping material pricing simply goes as double from my previous estimate on last april this year.
Generally the manhours cost also escalate on average of 1.8 factor.
Not to mention, the price for so call exotic material for example NACE pipes/plate goes as high as triple from last August 2007.
This situation in fact affect me on my performance assessment since cost estimating is part of my job scope.
I'm just thinking, if there is/are mastermind among us who can formulate the metal/pipe pricing against oil price or anything that may affect the price...

RE: Piping Cost Estimate



Times with highly increasing prices is no news. In my experience, what you have to do is several things at once. You will probably never hit near the correct answer by mathematics only.

A few suggestions:

Ask supplier for current prices.

Ask for validity time for the price.

Ask for prices if supplied next year, or the suppliers thought on price increase for the next year/periode.

Split your calculation in so many parts/details as practical possible.

Add an extra post for price increase for each sector, like current price for piping category Post A, and separately expected price increase for Post A, one year.

Always present your calculation with a probable accuracy (Less 5 plus 15 percent????

Add an extra post for unexpected expences (10%)

For each post rethink: what is in worst case the highest cost? What is the absolute lowest? (The truth is in avarage
somewhat in the middle)

In this way you will be more able both to argue for a realistic budget, and the single uncertain factors. If you are forced by internal or political reasons to reduce your calculation, you will at least not be blamed if your point later shows to be more correct.

An offer will always reflect not only present material prices but also present activity. High activety -> prices offered will be higher, and it will be harder to bargain reductions.

Also remember your plain statistic: some companies, organizations and single persons always land up with a 'systematic statistical fault',: always calculating too low.

A good cost engineer will on an average present correct calculations, and if a systematic fault is introduced, it is easier to dispose of extras in a budget a bit too high than find mony in a too low budget.



 

RE: Piping Cost Estimate

According to AISC and a couple of ASME Code welding shops, steel price doubled between 1/1/2008 and the end of April.  The really bad news is that they both expected it to double again at least once in 2008 and neither would be surprised if it doubled twice.

The increases in lay cost are probably a result of the chronic labor shortage in Oil & Gas field staff.  I've seen significant increases in starting salary to get and keep good people (and the definition of "good" has devolved to "someone who can pass two drug tests in a row").  Entry-level laborers in my area have increased in cost from about $9/hr last summer to over $14/hr now--nearly your 180%.

If you are evaluated on your estimating prowess, then be prepared to be hammered.  I was in your shoes in 1984 when pipe prices quotes were good for the duration of a phone call (that inflation was due to the horribly quality of pipe from the U.S. mills back then but the result was the same) and every project overrun was blamed on me.  I never did get it sorted out.

David

RE: Piping Cost Estimate

you have to have a list price from different suppliers for  :

- pipes & fittings suppliers (for steel pipes or S/S or PVC ... as you require)
- valves (gate, ball, butterfly, check, strainers, ...)
 

RE: Piping Cost Estimate

(OP)
Appreciate your reply guys....at least now i have better idea on how to present cost estimate deviation to management.  

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