Small renovation budget
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Since I’m not familiar with budgeting, I don’t know how to determine the cost of a minor renovation. For example, for a 100-meter section of pipe with DN150 diameter, along with several valves, how are costs such as labor fees calculated in addition to the material costs? Please help me out; thank you very much! !
Reinstallation or demolition and renovation? Working conditions, safety costs
The newly installed ones meet the existing pipelines at both ends
This can be covered by fixed quotas; in addition, there are also tax rates for safety expenses and so on!
The first is whether it is a metal pipe or a non-metallic pipe, and the second is whether it is a buried pipe or a pipeline mounted on a support? What is the connection method? What is a medium? Once these are determined, the fixed quota can be found. It is best to use corporate or industry standards. Then consult the installation company.
Hello! The metal pipes are installed overhead and welded together; the valves are connected using flanges. The medium in question is air. Which set of specifications should be used for costing purposes? Should it be the petrochemical industry’s specifications?
Don’t make it too complicated. Was this done by the maintenance staff inside the factory? It belongs to a renovation project; the main costs listed are raw material costs: pipes, valves, elbows, gaskets, bolts and nuts, labor costs (based on the number of people working for several days and their respective wages), and administrative costs. It is also crucial to list the benefits of the renovation.
You can refer to the petrochemical quotas; **it’s problematic that these quotas haven’t been updated in over a decade, so it’s best to ask a budgeting company to prepare a simple budget for you. Or, it can be calculated based on the material costs mentioned below, plus labor costs (including costs for welding equipment), plus taxes
For your reference, DN150 compressed air pipelines are considered pressure pipelines, and construction is only possible after a company holding a special equipment installation license submits the relevant documentation to the inspection authority.
①Valuation management procedure: Technical drawings or construction plans + cost items for measures → Quantity of work; commercial aspects → Work interfaces + construction conditions; application of pricing standards (enterprise or industry quotas) → Price； ②Steps of the pricing technique ； Quantity of work → Name of sub-item → Code of quota item → Σ quantity × unit price + equipment + main materials → Discounts applied → Commercial price ； ③To ensure that the investment amount is relatively accurate, it is necessary for cost professionals to be involved throughout the process, especially when multiple specialties such as electrical and instrumentation systems as well as civil engineering are involved.
There is another method of estimation: the coefficient method. By calculating (Σ cost of major materials + cost of equipment procurement) * a coefficient ranging from 1.1 to 1.3, it is possible to roughly estimate the construction cost; in other words, the construction cost constitutes 25% of the cost of materials and equipment (the specific value of this coefficient depends on factors such as the scale of the project and the characteristics of the equipment).