Contents of Materials Performance - APR 2012

Materials Performance is the world's most widely circulated magazine dedicated to corrosion prevention and control. MP provides information about the latest corrosion control technologies and practical applications for every industry and environment.

Page 28 of 76

CATHODIC PROTECTION FIGURE 2
Estimating Costs for Cathodic Protection Projects
of their estimated working hours/days for the project.
7^MZPMIL 4IJWZ This labor involves operations like
engineering, procurement, production, TWOQ[\QK[ ÅVIVKM IVL IKKW]V\QVO M\K Tool and Equipment Cost Estimation Some projects involve specialized and
Scope-based cost ratio by percentage.
Manpower Cost Estimation The cost related to manpower can
^IZa _Q\P ZM[XMK\ \W \PM MNÅKQMVKa WN \PM workforce at the time of project execu- tion. Generally, three basic factors are
considered for manpower cost estimates: z z The number of working hours/days with respect to the planned schedule
z Labor rates with respect to their KTI[[QÅKI\QWV IVL \aXM
+TI[[QÅKI\QWV[ WN 5IVXW_MZ
,QZMK\ 4IJWZ Labor that is directly involved in work
activities, either to produce a product or construct and install something, is classi- ÅML I[ LQZMK\ TIJWZ M O _WZSMZ[ MTMK\ZQ- cians, carpenters, fabricators, etc.). This KTI[[QÅKI\QWV LWM[ VW\ QVKT]LM \PM [\INN \PI\ supervises the direct laborers, since their
26 MATERIALS PERFORMANCE April 2012
involvement in each task is partial or in- volves supervising many tasks at once. Direct labor also includes personnel
who are completely dedicated to a proj- ect, work full-time, and their assigned WJRMK\Q^M Q[ \W IKKWUXTQ[P I [XMKQÅK \I[S They may be electricians, supervisors, technicians, or engineers. Their full cost for the duration of the project is included in manpower estimations. In either case, the direct labor cost
estimate includes salaries, allowances, and expenses of assigned manpower for the duration of the project.
1VLQZMK\ 4IJWZ Indirect labor involves support activi-
ties that are related to the main project M O []XMZ^Q[WZ[ MVOQVMMZ[ UIVIOMZ[ planners, schedulers, etc.). Sometimes X]ZKPI[MZ[ QV[XMK\WZ[ LWK]UMV\ WNÅKMZ[ CAD operators, commissioning engi- neers, managers, and local representative WNÅKMZ[ IZM IT[W KTI[[QÅML QV\W \PQ[ KI\M- gory. Their cost is calculated on the basis
expensive equipment and operators. The local availability of equipment is also important, as are maintenance and cali- bration costs. There is no specific categorization
LMÅVML NWZ +8 \WWT[ IVL MY]QXUMV\ J]\ for costing purposes they can be catego- rized as purchased, rented, or already owned assets.
8]ZKPI[ML This category includes those tools and
MY]QXUMV\ \PI\ IZM [XMKQÅKITTa X]ZKPI[ML for the project and scrapped after they have been used.
:MV\ML equipment that are rented, such as power generators and excavation and lifting MY]QXUMV\ 1V +8 QV[\ITTI\QWV XZWRMK\[ the days for the items to be used must be estimated.
)[[M\ equipment that are retained as company assets for future requirements. Generally, QV +8 KWUXIVQM[ []Z^Ma \M[\QVO IVL inspection instruments are considered assets. The salvage value of such assets is included in the costing.
NACE International, Vol. 51, No. 4