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CATHODIC PROTECTION FIGURE 3
Other Costs Transportation Cost
Transportation costs include mobiliza-
tion, local traveling, site visits, materials, supplies, and demobilization. These fac- tors are common in all projects but there UIa JM [QOVQÅKIV\ ^IZQI\QWV QV KW[\QVO due to the distance between base loca- tions and work site locations.
Preparation Cost If the work site location is remote or
far from commercial or residential prem- Q[M[ KW[\[ ZMTI\ML \W [Q\M WNÅKM[ [\WZIOM yards, and base camps must be estimated.
Safety Cost Project cost estimations must have
provisions for safety requirements. These include manpower safety, work site [INM\a ÅZ[\ IQL IVL UMLQKIT NIKQTQ\QM[ IVL costs involved with safety inspections and audits.
Security Cost Security cost is dependent on the loca-
tion of the project. Projects in industrial bWVM[ IVL KTI[[QÅML IZMI[ PI^M [MK]ZQ\a requirements, but if security is a contrac- tor responsibility, it can be assessed in the estimation of resources.
Cost Summation Figures 2 and 3 show sample graphical representations of project costing. These represent the cost ratios in percentages with respect to developed scopes and es- timated resources shown in Figure 1. After the complete estimation of a
project's cost, the following factors are IXXTQML \W LM\MZUQVM \PM ÅVIT XZQKM
Company Overhead =[]ITTa ÅVIVKM IVL IKKW]V\QVO LM-
partments are responsible for establishing the company overhead percentages with respect to the volume and duration of the project.
NACE International, Vol. 51, No. 4 Resource-based cost ratio by percentage. Contingencies These factors may cause variations in
costing (both negatively and positively) during the life of the project. It is impor- tant to consider contingencies by proper assessment of past experiences.
8ZWÅ\ 5IZOQV[ The difference between price and cost
Q[ XZWÅ\ =[]ITTa \PM XZWÅ\ UIZOQV Q[ based on company operations, market reputation, competition, and company pricing policies.
Conclusions Every project is unique with respect
to its requirements and objectives; there- fore it is not possible to standardize the cost estimation methods for each project. However, the steps for costing KIV JM ]VQÅML WZ LM[QOVML WV \PM JI[Q[ of company requirements. The in- formation provided in this article will help in developing cost estimates and work breakdown structures for CP projects.
Acknowledgments The author expresses his appreciation
to Mohammad Salman Raheem (NACE Senior Corrosion Technologist), Pankaj Panchal (NACE Cathodic Protection Specialist), and Tariq Mahmood (MBA, 95; +MZ\QÅML )]LQ\WZ NWZ XZW^QLQVO \PMQZ assistance and support for this article.
Bibliography
Cathodic Protection Specialist (CP-4) Course Manual. Houston, TX: NACE International.
Skills & Knowledge of Cost Engineering, 5th Ed. AACE International.
Tebin, H.I. "Pricing Tenders for Construc- tion." Cost Engineering Journal 51.
MUHAMMAD ARSALAN KHAN SHERWANI is a senior CP engineer at Abdulla Fouad-Impalloy Ltd. Co., PO Box 257, Dammam 31411, Saudi Arabia, e-mail: muhammad.arsalan@gmail.com. He is a NACE International-certified Senior Corrosion Technologist and Cathodic Protection Specialist, with 10 years of extensive experience in designing, project manage- ment, resource estimation, costing, and pricing of CP projects. He has a B.S. degree in mechanical engineering from Mehran University of Engineering & Technology in Jamshoro, Pakistan.
April 2012 MATERIALS PERFORMANCE 27