scholarly journals The infrastructure cost planning model : an integrated solution to cost effective design

2009 ◽  
Author(s):  
◽  
Shian Hemraj Saroop

Infrastructure project costs are being scrutinised more closely and with greater skill and accuracy as projects have become larger, more complex and more expensive, and clients have become more exacting in their requirements. These and other factors compel engineers to design with greater care and in more detail. However, public planners spend very little time generating alternative project options, often presenting decision-makers with only a few poorly differentiated alternatives borrowed ad hoc from other projects. Even more disturbing is that they often devote the greatest amount of decision making resources to the development of a single decision rather than a variety of options. A systematic and iterative analysis of the cost consequences of different design solutions is commonly suggested for infrastructure projects, but rarely happens. There is a growing need to integrate design and costs. This study concentrates on the issue of cost optimisation of infrastructure projects (particularly at the design stage of the project) and applies construction economics, cost planning, cost optimisation and value engineering techniques to the design of such projects. The methodology proposed in this study for the optimisation of cost and design planning is the Infrastructure Cost Planning Model. This model divides the planning of a project into four stages and utilises twelve Cost Report Forms across these stages. The Cost Report Forms define in a comprehensive, precise and verifiable manner the essential characteristics of a deliverable component. They are used to measure, quantify, verify and audit the different design options. By means of the Cost Report Forms, the Infrastructure Cost Planning Model enables the client to select a combination of alternatives and evaluate a number of possible design options – with their cost implications – at each stage of the design process. This i promotes transparency and accountability, and enables consultants and clients to have greater control over the planning process and overall costs. Two case studies on infrastructure related projects were conducted and confirm that the Infrastructure Cost Planning Model can reduce costs. This study demonstrates that it is possible to overcome the problem of over expenditure by introducing cost effective design decisions prior to the infrastructure design approval process. The Infrastructure Cost Planning Model can improve infrastructure standards and procure design in a cost effective, equitable, competitive and transparent manner. This study contributes to the underdeveloped area of cost planning and forecasting of infrastructure projects. The findings are relevant to the South African government's infrastructure service delivery programme and the general issue of affordable infrastructure services.

Author(s):  
Roger Hitchin

Policies to reduce carbon emissions are leading to substantial changes in the demand for electricity and to the structure of electricity supply systems, which will alter the cost structure of electricity supply. This can be expected to result in corresponding changes to the price structure faced by customers. This note is an initial exploration of how possible new price structures may impact on HVAC system and building design and use. Changes in the price structure of electricity supply (separately from changes in price levels) can significantly affect the cost-effective design and operation of building services systems; especially of heating and cooling systems. The nature and implications of these changes can have important implications for future system design and operation.


2021 ◽  
Vol 2021 (23) ◽  
pp. 20-30
Author(s):  
Taras Pechonchyk ◽  
◽  
Vitaliy Ivanchenko ◽  

AbstractIntroduction. Effective management of road indstry is particularly important in conditions of limited funding, as it is not possible to provide adequate funding of the economic entity that has the functions of a customer service. The cost of the customer service maintenance depends directly on the compliance with applicable regulations for these works cost determination. One of the aspects that form a considerable part of the costs of customer service is the maintenance of service vehicles.Problem Statement. Road services in the regions (hereinafter RSR) are the recipients and managers of the funds from the State Budget of Ukraine that are directed for the development and maintenance of public roads of state importance, being as well the asset holders of these roads. To perform their functions, the RSR have vehicles on their balance, the use of which involves a number of costs, including fuel and lubricants, repair, maintenance, replacement of tires, etc. The most important of the steps involved in setting the costs of vehicle maintenance is the process of cost planning. Planning has to be based on the structure of the vehicle fleet (own or leased), functional responsibilities and scope of road works.Planning is carried out for vehicles on the balance of the RSR, as well as for leased vehicles. In the case of leasing, the costs mentioned above are added by the vehicles leasing costs. These costs must be forecasted, justified and performed within the approved cost estimates of the customer service expenses.Purpose. The purpose of the article is to highlight the theoretical and methodological approaches to the calculation of planned costs for the maintenance of service vehicles of the road works customer.Materials and methods. Dialectical methods of knowledge, such as analysis and synthesis of fleet composition characteristics and approaches to cost planning methods, as well as induction, were used in writing the article to explore some aspects of the process of calculating the planned cost of maintenance of the road works customer's service vehicles.Results. The study highlights and describes the main approaches to the calculation of planned costs for the maintenance of service vehicles of the road works customer. The methodology of calculation of planned costs for the maintenance of service vehicles is explored.Conclusions. The introduction of a clear methodology and analytical toolkit for calculating all necessary expenditure items for the maintenance of the road works customer's vehicles in the cost planning process will establish the implementation of a clear mechanism for calculating the planned costs of maintenance of the road works customer's vehicles. It will also provide an automated information-analytical complex for planning of cost estimates, with information entry and reporting in standard forms and possibility of prompt response to changes in fleet composition, needs for spare parts, repairs or other expenses for the maintenance of service vehicles and making changes in cost estimates.Keywords: motor vehicles, costs, cost planning, customer service, maintenance of service vehicles


2013 ◽  
Vol 1 (3) ◽  
pp. 193-202
Author(s):  
Dicky Alfian ◽  
Iriyadi Iriyadi ◽  
Udi Pramiudi

One way to define the company's goals is to create a plan, one that cost planning is essential inthe operation of the company activity. Preparation, control, until the realization of the budget is animportant factor in the control of management. Good management control will be reflected from asound budget planning from start budgeting to realization in which the control of the use of thebudget includes the cost of the company. The purpose of this study was to determine the function ofa planning application to the realization anggarabn budget costs play an important role in themanagement control process in order to achieve the goals set previously by the company. Theresearch was conducted by the author. PT. Asuransi Jiwasraya (Persero) Bogor is located atPajajaran Street 45 Bogor. The results of this study show that the variance resulting from budgetplanning to the realization greatly affects the level of management control of the company. In otherwords, the efficiency of which is determined by the value of variance budget planning process aswell as cost control processes that will better demonstrate the value of the level of managementcontrol of the company.


2003 ◽  
Vol 3 (1-2) ◽  
pp. 55-62 ◽  
Author(s):  
S. Burn ◽  
S. Tucker ◽  
M. Rahilly ◽  
P. Davis ◽  
R. Jarrett ◽  
...  

Traditionally water reticulation systems have been operated so that pipeline repair/renewal occurs on a reactive basis, based upon the number of failures, the consequence of failure and the cost. Planning for future replacements and the costs associated with these has been based upon a best guess of pipe lifetimes, which have generally been very conservative, when compared to the actual pipe life obtained. Factors such as the required level of customer service, trade-offs between repair and renewal, or operating practices such as pressure reduction or shut-off block reduction have not been widely considered, except when they are required under the water authorities operating licence. To allow long-term strategies to be implemented for the repair/renewal of water pipelines, a Pipeline Asset and Risk Management System (PARMS) is being developed. This planning model has been designed to allow a range of “what if” scenarios to be analysed to determine their effects on water authorities’ long-term costs. This model is based upon whole of life costing and includes data on externality and customer impact costs. It analyses the failures of individual pipe assets, rather than the traditional practice of predicting failure of pipe cohorts, currently used by many authorities. This paper discusses the application of the PARMS planning model to allow selection of pipeline repair/renewal, and briefly analyses the influences that a range of customer service or operating decisions can have on a water authority’s capital and operational expenditure.


2020 ◽  
Vol 178 ◽  
pp. 01046
Author(s):  
Natalya Shevchenko ◽  
Anatoly Soshinov ◽  
Olga Elfimova ◽  
Julia Lebedeva ◽  
Olga Akhmedova

The use of new generation wires in the design of wide spans of overhead power lines over water barriers and large gorges can increase their transmission capacity and increase reliability. However, when large currents flow, load losses in line also increase. Thus, it is necessary to obtain a methodology for technical and economic comparison of design options for overhead power lines over large crossings, which enables to determine the most cost-effective version of the project with high mechanical reliability. For comparative analysis, five options for wide spans of overhead power lines over the river with new-generation wires of Russian production were compiled: Aluminium Alloy Conductor Steel Reinforced, Z-type (high conductivity), Thermal-Resistant Conductor, Aluminium Compozite Core Conductor, ASk2y. Option with Aluminium Conductor Steel Reinforced wire was taken as the source. For the first option, the crossing scheme E-A-A-E was selected, for the remaining options E-I-I-E scheme was considered. For the modes of maximum loads, minimum temperature and average annual conditions, the mechanical calculation of wires was carried out using the method of permissible stresses. The wire bending deflections were determined in accordance with the theory of the catenary curve. The method of integrated indicators was used to perform a technical and economic comparison of these options. The calculation results showed that among the proposed options, the most optimal is a crossing with the ACCC wire having minimum relative investment per 1 MW of transmitted electricity and minimal power loss. The transmission capacity of the line with this wire is increased by 1.8 times, and the cost of crossing is reduced by 16%. Due to the compact design of wire, the probability of ice formation on wire is reduced, and the reduced bending deflection reduces the probability of wire break due to natural environmental influences.


Author(s):  
Katarzyna Segeth-Boniecka

Modyfikacja zakresu analizy kosztów wydobycia węgla kamiennego z uwzględnieniem cyklu życia wyrobiska wybierkowego The aim of the article is to present the results of research on validity and possibilities of using longwall life cycle in the analysis of hard coal extraction costs. Moreover, it aims to indicate the benefits accruing from its application in management of hard coal mines. The article addresses a topical and important issue of solu- tions in the cost analysis sphere in Polish hard coal mines, which has not been thoroughly researched yet. The cost analysis of the longwall life cycle would support the cost planning process by facilitating the estimation of extraction profitability. It would also aid the monitoring and the control of incurred costs on an ongoing basis and enable adoption of possible corrective measures. Finally, it would become a significant tool in the process of assessment if the goals are attained, as well as identifying variations and their causes. To achieve the aforementioned aims, a review of relevant literature was conducted. All the analyses were based on data collected during research conducted in years 2013–2014 in one of three largest coal compa- nies in Poland.


Author(s):  
Z. Joe Zhou ◽  
Raymond P. Boivin ◽  
Alan G. Glover ◽  
Phil J. Kormann

The NOVA Gas Transmission Ltd. (NGTL) gas pipeline system is expanding northwards as the producers search for and find new gas reserves. This growth has taken the system into the discontinuous permafrost zone, and also into new design problems. One such problem is the structural integrity of a pipeline subjected to the settlement differentials that occur between frozen and unfrozen soils. Adequate integrity design for differential settlement is required by design codes, such as CSA Z662, but the procedures and criteria must be established by the pipeline designers. This paper presents the methodology of pipeline integrity design for differential settlements used on a number of pipeline projects in Northwest Alberta. Outlined in the paper are the procedures, rationales and models used to: (a) locate discontinuous permafrost; (b) quantify the potential differential settlement; (c) predict pipeline stresses and strains; (d) establish strain limits; and (e) determine the pipe wall thickness to withstand those potential differential settlements. Several design options are available and are briefly discussed. For the projects mentioned, the heavy wall pipe option was identified as a cost effective design for medium to large differential settlements.


2003 ◽  
Vol 7 (3) ◽  
pp. 257-267
Author(s):  
J. P. O'Kane

Abstract. An honest declaration of the error in a mass, momentum or energy balance, ε, simply raises the question of its acceptability: "At what value of ε is the attempted balance to be rejected?" Answering this question requires a reference quantity against which to compare ε. This quantity must be a mathematical function of all the data used in making the balance. To deliver this function, a theory grounded in a workable definition of acceptability is essential. A distinction must be drawn between a retrospective balance and a prospective budget in relation to any natural space-filling body. Balances look to the past; budgets look to the future. The theory is built on the application of classical sampling theory to the measurement and closure of a prospective budget. It satisfies R.A. Fisher's "vital requirement that the actual and physical conduct of experiments should govern the statistical procedure of their interpretation". It provides a test, which rejects, or fails to reject, the hypothesis that the closing error on the budget, when realised, was due to sampling error only. By increasing the number of measurements, the discrimination of the test can be improved, controlling both the precision and accuracy of the budget and its components. The cost-effective design of such measurement campaigns is discussed briefly. This analysis may also show when campaigns to close a budget on a particular space-filling body are not worth the effort for either scientific or economic reasons. Other approaches, such as those based on stochastic processes, lack this finality, because they fail to distinguish between different types of error in the mismatch between a set of realisations of the process and the measured data. Keywords: balance, budget, sampling, hypothesis test, closing error, Earth System


2016 ◽  
Vol 16 (2) ◽  
pp. 727-753 ◽  
Author(s):  
Marcelo Caffera ◽  
Carlos Chávez

Abstract Recent theoretical developments show the conditions under which it is cost-effective for the regulator to induce perfect compliance in cap-and-trade programs. These conditions are based on the ability that a regulator with perfect information has to induce the firms to emit any desired level with different combinations of the number of permits supplied to the market and the monitoring probability, assuming that firms are expected profit maximizers. In this paper, we test this hypothesis with a series of laboratory experiments. Our results suggest that firms may behave significantly different from what these models predict precisely when the different combinations of the supply of permits and the monitoring probability induce compliance versus noncompliance. More specifically, by allowing noncompliance in a manner consistent with theory, the regulator could produce a decrease in emissions and an increase in the market price of tradable permits that is not predicted by the theoretical models. The implications for the cost-effective design of environmental policy are discussed.


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