The total cost of plastic pipework

pipes
Not only is plastics pipework quicker and cheaper to install than steel or copper, but increases in the price of metals put plastics very much on a par.
As long as the price of raw materials dictates how a project is executed, the benefits of many cost-saving techniques will not be fully exploited on site. MARTYN ROWLANDS discusses factors that contractors should be considered when specifying pipework.The building-services industry is becoming an increasingly competitive market place, which has seen contractors being put under more and more pressure in terms of margins and completion schedules. Pipework requirements are no exception to this. With cost being so important at all stages of a project, from the initial quote, through to the life-cycle costings of the complete project, are contractors thinking enough about long term considerations when specifying pipe and fitting products? Important consideration Research conducted with visitors to H&V 05 this year saw 65% of those polled stating that installation costs have become an extremely important consideration. This figure is encouraging but crucially and more worryingly, 78% still considered the cost of material to be a priority. This is, perhaps, not surprising because the fiercely competitive industry that contractors operate in has often meant that jobs are won as a result of putting in the lowest bid. However, could contractors benefit more if they considered overall installation costs and incorporated it into their proposals? Issue When competing for a contract where long-term cost savings are an issue for the client, presenting a proposal which majors on the overall installation costs can have significant benefits for contractors. Factors such as the possible time and cost savings available on the installation process are invaluable, and incorporating these figures into a tender could see contractors winning bigger, more premium projects at better margins. One issue which has had a bearing on the debate is the recent price hikes of conventional materials. Traditionally, one of the main reasons steel and copper were specified for pipework was because of favourable material cost, but 2004 saw steel-tube prices rise by more than 90% and copper-tube prices increase by a third. Although the rate of increase has now slowed, prices are still increasing, albeit at a slower rate, with the first quarter of 2005 seeing both steel and copper prices rise 10%. Minimal cost difference The steel and copper price increases means that the difference in material costs of traditional materials compared with plastic alternatives is now minimal. However, there is still a significant difference in the labour costs between the two options, with plastic pipework proven to offer superior labour-cost savings. An independent cost comparison, BSRIA’s ‘Innovative M&E Installations ACT5/2000 Datasheet 5.3’, compares using thermoplastic pipework with traditional screwed steel pipe and clearly demonstrates the significant savings plastic pipework can offer over traditional methods. The study shows that the overall installation cost can be reduced by as much as 43% over traditional methods, coupled with a 60% reduction in labour time. The potential savings on labour time and cost should be a major consideration to contractors, particularly in relation to the strict deadlines that they are required to meet. Construction programmes can be very tight, so there is no room for error and in many cases contracts build in penalty clauses if projects are not finished on time so over-running is not an option. Plastic pipework Engineered to offer the industry speed of installation and immediate total cost savings, plastic pipework can offer a range of benefits over metal systems. The level of operator skill is greatly reduced. Plastics do not corrode, so no anti-corrosion coating is needed. The smooth bore surfaces resist lime-scale build-up, hot-works permits can be avoided, and the lightweight construction of plastics means they are easier to handle on site. Short-term cost savings should not be the only consideration. Over recent years, the publication of Egan’s ‘Re-thinking construction’ report looked to recommend methods for reducing construction time and costs, and the growth of projects such as PFI, has led to a greater awareness of life-cycle costs. As a result, the industry is seeing a significant number of contractors become involved with facilities management once projects are operational, meaning the responsibility for maintenance and repair work is falling to them.
Although plastic is a slightly more expensive material than welded/threaded steel for pipework, its labour costs are vastly less
As a result of this extra responsibility, contractors should be looking at the life-span of a product at the specification stage, because replacing pipework can become very time consuming and costly. Long life The design life of plastic pipework is typically 50 years. Because thermoplastic products do not corrode, the pipework will generally outlive the building, resulting in minimum maintenance and repair costs. In contrast, both copper and steel systems will corrode over time, making it an expensive job when pipework needs to be replaced. Traditionally, much plastic pipework installed for building-services applications has been for refurbishment, when it was considered to be the simplest means of replacing existing steel or copper pipework. Plastic pipework has always been present in new-build projects. However, perhaps as a result of increased consideration for overall installation costs, plastic pipework manufacturers are now seeing their products being increasingly specified for new-build developments. It is not only specifiers and end clients that need to be thinking about life-cycle costings. As an integral factor for the success of all new developments, contractors need to consider detailing the potential life-cycle cost savings in their proposal, because it is this long-term vision that is going to be winning contracts in the future.
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