1.You have been assigned to estimate the cost of installing fiber optic cable in
ID: 2774587 • Letter: 1
Question
1.You have been assigned to estimate the cost of installing fiber optic cable in a country in the Middle East. Fortunately, you have done a n;umber of similar projects in this area in the past and you have accumulated the following parametric cost estimates based on this experience:
Mobilization/demobilization Cost [1]= $10,000
Buried cable construction:
Cost per kilometer = $10,000 Sand
Cost per kilometer = $17,500 Sand & Clay
Cost per 100 meters = $ 5,500 Rock
Overhead cable installation:
Cost per kilometer = $ 7,500
Cost per Road Crossing = $12,500
Cost per pipeline Crossing = $ 5,000
The scope of the new project is as follows:
Predominately sand 150 km
Predominately sand & clay 100 km
Rock 500 meters
overhead 2 km
road crossings 3
pipeline crossings 5
Estimate the cost of construction for this project. Assume the estimates are fully loaded, ie they include labor, materials, applicable indirect costs such as overhead, etc. Show your work.
[1] Note that this cost covers both mobilization and demobilization. It is not $10,000 for each.
Explanation / Answer
Cost of Construction for the project is $3365000. Calculations are shown below:
All figures in $
Cost of Construction for the project is $3365000. Calculations are shown below:
All figures in $
Area Type Length (km) (1) Cost per unit (km/ nos) (2) Cost of Construction = (1)X(2) Predominantly Sand 150 10000 1500000 Predominantly Sand & Clay 100 17500 1750000 Rock 0.5 55000 27500 Overhead 2 7500 15000 Road crossing (nos) 3 12500 37500 Pipeline Crossings(nos) 5 5000 25000 Total 3355000 Add: Mobilisation/Demobilisation cost - 10000 Cost of Construction of the project 3365000Related Questions
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