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Can the pipeline pressure be adjusted according to the wall thickness when settling pipeline project costs?

2009-03-03View Original

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In project settlement, there is a situation where people discuss whether such an approach is reasonable: for example, if a pipe is designed for low pressure, but when selecting materials the design calls for a wall thickness appropriate for high pressure, then in the settlement based on installation cost rates, the pressure of the pipe is calculated according to its design pressure. The difference in installation costs between calculating it as low-pressure or high-pressure is quite significant; if it is calculated as low-pressure, the construction company will surely suffer losses, since the pipe is actually designed for high pressure. On the other hand, the regulations state that the calculation should be based on the design pressure. This issue is often encountered in construction settlement; I would appreciate some guidance from experienced seniors. This post was last edited by laiqi on 2009-3-4 15:44]
Reply #22009-03-03
Personal opinion: It shouldn’t be billed based on high-pressure pipeline construction methods! Reasons: 1. The actual construction is unlikely to be carried out in accordance with the requirements for high-pressure pipelines, which include inspections of the pipeline materials, non-destructive testing, inspection of the outer surface, as well as inspections of the valves. 2. There are clear regulations set forth in the quota guidelines, and these should be followed. 3. When the owner’s relevant personnel conduct the cost settlement, they will definitely notice this issue – it’s clearly an overapplication of the quota standards! 4. If I were the person in charge of the property, I would definitely ask you whether the work was carried out using high-pressure pipes For reference!
Reply #32009-03-03
From the owner’s perspective, the quotas will definitely be applied based on low-pressure pipelines. In fact, such matters can be clarified by the construction company when submitting bids, so as to avoid disputes between the two parties during settlement
Reply #42009-03-04
But the pipe wall thickness is for high-pressure grades
Reply #52009-03-04
No, during settlement, the pipes are evaluated based on their design pressure, as clearly specified in the relevant regulations.
Reply #62009-03-05
The specifications also set limits for wall thickness; if this range is exceeded, a correction factor should be considered
Reply #72009-03-05
If low pressure is used, the contractor suffers losses; if high pressure is used, the builder suffers losses. The builder’s budget also faces certain risks and pressures. What was said on the second floor is very clear – the work doesn’t consist only of assembly and welding; I’m not sure whether you carry out the other auxiliary tasks in accordance with high-pressure requirements. Adjustment coefficients are a commonly used practice in external construction work; they are mostly applied in lump-sum pricing methods, while the budgeters on the other side generally will not agree to their use in fixed-price pricing methods. If the contract does not specify otherwise, it is recommended to use the low-voltage rate as a standard, and then obtain a work order from the client to compensate for the additional labor costs.
Reply #82009-03-05
I think adjustments should be made, but in our actual settlements they are often not made.
Reply #92009-03-05
I think that, in accordance with the pricing rules outlined in the bill of quantities, it is possible to negotiate adjustments to the individual items related to the workload; that is, the costs associated with labor, machinery, and materials for welding can be adjusted based on actual conditions. However, items such as those related to high-pressure testing should not be adjusted if they haven’t been carried out
Reply #102009-03-05
I’ve encountered this situation as well; it involved some of the coal slurry pipelines in Texaco’s coal gasification plant. At that time, the pricing was not based on a bill of quantities, and the contract was of the type with adjustable prices. During the settlement process, it was agreed through negotiation to apply a higher quota rate. If you use the method of determining prices based on a preliminary bill of quantities, then it depends on whether the scope of work specified in the tender document matches the actual work to be carried out, and whether the contract is a contract with adjustable unit prices. In short, it depends on human decision-making; whether it’s possible or not depends on the rules in place, and whether you can do it or not depends on you.
Reply #112009-03-05
It can be adjusted; it is explained in the old quota manual. However, the wall thickness must meet the requirements of the corresponding grade; when establishing the quota, the wall thickness ranges to be considered for low, medium, and high pressure grades should be specified.

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