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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 3365000