Estimating the Cost of New Construction - Spar …

1 Estimating the cost of New ConstructionUsing PERCEPTIONC omputerized cost Estimating Computer-based tools to quickly formulate a cost estimate Manage cost data from central database Maintain current catalog of actual costs Maintain catalog of prior estimatesEstablish Libraries of Centrally Available cost DataBenefits Fewer cost surprises Faster bid response Lower cost risk Greater profit potential More competitive bidsBasic Tool Set:Application of learning curvesComplexity & productivity factorsCost escalationCostriskanalysisCostriskanalys isCost trade-offGlobal edits and update featuresReturn cost data analysisUser documentation of cost estimateTracking of estimate sources and changesWork Breakdown StructuresThe cost estimates are developed according to a Work Breakdown Structure (WBS).

2 Identify work items Identify work process costsIdentify Work ItemsWork Items maybe cataloged by Ship System WBS (SWBS) Shipyard Product WBS (PWBS) Shipyard Product WBS (PWBS) Ship Owner s WBS Government Contract Line Item (CLIN)Each structure can be customized by shipyard, by Work ProcessWork Process maybe cataloged by Stage of Construction (Rip-Out, Shop Work, On-Unit, On-Block, On-Board, Test)On-Unit, On-Block, On-Board, Test) Shipyard Department (COA)Each structure can be customized by shipyard, by Standard CostsCatalogStandard cost Estimating Relationships (CERs) Relationships (CERs) onto Computer DatabaseWhat is a CER?A cost Estimate Relationship (CER) is a formula relating the cost of an item to the item s physical or functional characteristics or relating the item s cost to the cost of another item or group of items.

3 Another item or group of items. Examples: a) for steel block assembly, 25 man-hours/ton; b) for pipe material, $25/meter; and c) for shipyard support service, 10% production Standard Costs By Work SequenceLOFTPLANPREPFABASS'MP/OHOTERECTP /OCOLDBLASTPAINTPre-Outfitted Hull Block ConstructionEquipment & OutfitSystem ModulesHull CERs by Block ProductionMid-Ship BlocksTank TopsAverage Parallel Inner BottomsAverage Shaped Inner BottomsLower Side TanksUpper Side TanksSpar Deck 'Tween HatchesAverage Weather DecksAverage Longitudinal BhdsAverage Transverse BhdsScreen BulkheadsPrep & FabAssembl yErectOn-Shi p Wel Hours Per MTONMid-Ships Block TypesStage of ConstructionPrep & FabAssemblyErectOn-Ship WeldTotalComplete Equipment PackagesCargo Zone PackagesDevelop Standards of Labor & Material cost PackagesAccommodations Outfit PackagesSafety

4 Equipment PackagesElectronics PackagesShipyard Services Standard Costs By Sequence Rip-Out Replace Repair Engineer Fabricate Assemble Repair Install Test Assemble Install TestEngineeringSpecificat ionsProductionDrawingsShopFabricationCom ponentInst allationSystemTest sRip-OutRepairRe-Inst allTestPossible Levels of Product-Based CERsCargo HoldBlo ck ErectionOu tfit F ittingsMhrs/BBLMhrs/TonMhrs/EAOutfit PipeBlock PaintBlock AssemblySteel FabSteel PrepMhrs/IN-FTMhrs/SQFTMhrs/TonMhrs/TonM hrs/TonProduct &ProcessSequenceOutfit CERs by Stage of ConstructionPipe Work450,000-50,000100,000150,000200,0002 50,000300,000350,000400,000123456 Ship NumberLabor HoursTotalOn-ShipOn-BlockPipe FabCataloging Standard Costs By Ship System (SWBS) Structural Work Machinery Electrical Paint Machinery Piping HVAC Paint Outfit Shipyard ServicesBow Construction ZoneCargo Construction ZoneCataloging Standard Costs By Ship Zone (PWBS)Machinery Construction ZoneDeckhouse Construction ZoneStern Construction ZoneShip-Wide Construction ZoneVariations of CERs: Single V-butt weld size 3/16" - 5/16" (2 pass) MH/FTLine Item CER:Re-Use Package CER:Welding Repairs:Cracks Labor CER Labor UoM Material CERD rill MH/FT-$ W elding $ Gen MH/FT-$ $ Re-Use Package CER.

5 Variations of CERs: CERs Based Upon Ship Design & Performance Characteristics:Labor Hours Material CostUoMCERCERCERCERCERCERC argo Transfer $ $ $ Docking$ Days-GRTH auling$ Days-LOAV ariations of CERs: CERs Based Upon Multiple Parameters:Main Propulsion Installation Labor x [Displacement x Speed^3]/[SQRT(LWL)^3]Ship Characteristics ParametersDisplacement - LTONsSpeed - KnotsLWL - FeetCost AdjustmentsCost = fadjustxStandard CostCost = fadjustxStandard CostAutomating cost Adjustments Work Productivity Work Site WorkAccess WorkAccess Economic cost Escalation Learning Experience Standard Material Savings Material Waste AdjustmentsImpact of Work Productivity Alternate Methods: Expensive staging versus mobile lift Automation: Manual versus automated welding Automation: Manual versus automated welding Alternate Resources: In-House versus Sub-Contract Worker Skill LevelImpact of Work SiteAdded cost Factor500%600%0%100%200%300%400%In ShopOn BlockOn BoardImpact of Work Access:Added cost Factor40%50%60%0%10%20%30%40%On Weather DeckOil TanksEngine RoomSuperstructurePump RoomHoldsDouble BottomsImpact of Work Access.

6 Over-HeadDown-HandMore Difficult = More ExpensiveD-2,500 Ton AuxiliaryE-100,000 Ton CombatantF-8,000 Ton vs Ship Type and Shipyard1234567811 Shipyard0100200300400500 Manhours per LtonA-45,000 Ton Supply/OilerB-40,000 Ton AuxiliaryC-17,000 Ton on Strutural dataImpact of cost Escalation: cost Escalation Index IndexImpact of Learning: cost Reductions From Repeatability120%Percent of First Item Cost0%20%40%60%80%100%1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Number of Similar Items WorkedPercent of First Item CostImpact of Standard Materials: Standard material itemstypically less expensive than non-standard than non-standard items. Standard material deliveriesless expensive than high-priority rush ordersCost Risk Analysis$1,400$1,600$1,800 cost RiskMinim umExpecte dMaxim um$0$200$400$600$800$1,000$1,200$1,400 Range of CostsCost Risk AnalysisCost Probability100%120%0%20%40%60%80%$0$500$ 1,000$1,500$2,000 cost RangeProbabilityHardware OptionsSingle User LaptopSingle User DesktopHardware OptionsMulti-User NetworkMany Report Formats Detail cost Item Reports WBS Summary Reports WBS Summary Reports Major Equipment Lists Detail Bills of MaterialCost Detail Information Labor Hours Labor Costs Material costs Total Direct Costs Taxes & Duties Indirect Costs Profit Total CostOther Capabilities: Import/Export.

7 Spreadsheets & Databases Data Analysis Module: statistical analysis of cost information to develop CERs Return cost Module: link to shipyard Return cost Module: link to shipyard production management systems Link to CAD systems: automated cost Estimating from design process Link to CAD systems: automated down-loading of bills of materialOver 35 Years Serving the Shipbuilding & Repair Industry