Pipeline Cost Estimation

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Pipeline Cost Estimation

• Michael Maddox, Spencer Guy Marco Mendez

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Introduction

• Pipes are an important part of the infrastructure
  that makes our lives so civilized, and pleasant.
• Pipes transport materials varying from water and
  waste to oil and gas with efficiency.
• Pipes are able to cover great distances and
  travel through impassible terrain, or beneath
  city streets.

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Information Required

• Cost of steel pipes for each diameter per foot.
• Additional taxes, fees, etc associated with
  installation.
• Labor cost (Seasonal)
• Machinery (Backhoe, ditcher)
• Depth of line Terrain type
• Land purchases, Right of Way
• Corrosion Inhibitor/Insulation

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Methodology

• Take the input of the flow rate through the pipe
  and determine the specific diameter of pipe
  needed.
• Take the input price of steel, the length of the
  pipeline, and other variables to calculate the
  total cost of materials.
• Factor in various taxes, such as Environment
  Protection taxes, etc.
• Calculate the cost of labor including factors
  such as location and weather (seasons).
• Determine the price of renting a backhoe or
  trencher for the job, possible failures or repairs