How Cost Estimation is done for Ship’s Dry
Dock?
By Anish | In: Guidelines | Last Updated on May 9, 2016
Preparing a ship for a dry dock is not at all an easy task. A lot of planning is required in order to
ensure smooth repairing work along with optimum ship repair cost.
Every ship undergoes major repairing work during dry-dock period. Though there are several
intermediate docking surveys and repairs scheduled in between, a five yearly dry dock is the one
which involves major revamping of the ship.
Needless to say, dry dock is an expensive process which requires systematic and efficient planning
and cost estimation to minimize overhead costs along with other unnecessary spending.
Cost estimation plays an important role in order to keep a check on a ship’s dry docking budget and
to ensure a sensible quotation for the whole repair work. There are three important aspects of ship
repair cost estimation:
Cost Groups
Cost Parameter
Work Breakdown Structure
Let’s take a look at each of these aspects in detail.
Cost Groups:
Cost grouping in an integral part of cost estimation wherein the whole repairing process is divided into
parts for the ease of cost quotation and work completion within the stipulated time. Cost groups also
help to divide and assign work to different segments of the repair yard and to get individual quotation
for each one of them, making the whole process smoother and manageable.
Cost grouping is mainly done on the basis of ship’s department. For e.g. deck, engine, electrical etc.
Details of things included in each of these department are as follows:
Engine Room
Main engine and propulsion machinery
Boilers
Engine room tanks
Auxiliary Machinery
IG System
Deck
Accommodation area
Navigation equipment
Anchor and deck machinery
Cargo gear
Hull, rudder and tail shaft
Cargo tanks, fuel tanks ,ballast tanks , and slop tanks
Automation
Controls and automated systems
Instrumentation jobs
Electrical
Motors
Panels
PLC’s
Main Bus Bar modification
Electrical jobs in all areas of the ship
Cost grouping is an excellent way to stream line the process of cost estimation and to avoid errors
related to costing while planning a dry dock.
Cost Parameters
Cost parameter is an aspect of cost estimation which defines the total number of elements that are to
be included for the final project cost. Cost parameters specify the limit and scope of activity during the
repair work.
Cost parameters help in analyzing the scope of the work and also helps in considering each and
every aspect taken into consideration for the dry dock.
Examples of cost parameters are:
Dry docking fees and repair yard cost
Agency cost
Classification surveyors’ cost
Cost of the stores
Repair and maintenance cost
Damage repair cost
Cost of necessary spares
Work Breakdown Structure
Work breakdown structure is an extension of cost grouping which further helps in distribution of jobs
and procuring cost estimation for each job.
Work breakdown structure helps estimating the time needed for whole process, including period of
repair, dry docking period and lead time. It helps to figure out additional job quotations that would be
required during the repair work. Based upon these parameters, quotations are asked for repair and
spare from different agencies/yards, and eventually the best suited quotation is selected.
The work breakdown structure also helps the chief engineer to decide what all jobs can be handled
by the ship’s staff within the stipulated time in order to save repair costs. This eventually helps in
making the final quotation that is to be sent to ship yards.
A general breakdown of the structure would include
Engine room
Maine engine and turbine
Jobs on auxiliary machinery including generators, auxiliary condensers, steering system and
engine room pumps and pipes.
Work on auxiliary boiler without re-tubing
Boiler survey, soot blowers, and chemical cleaning
IG System
COP control and valves
Safety equipment
Radio and navigation equipment
Machinery and instrumentation controls
Electrical work including motors and switch boards
Deck Side
General expenses
Anchor and chain
Hull anodes and sea chests
Tail shaft
Painting
Steel / shell
Ballast tanks internal inspection / survey & anodes
Accommodation
Cargo gear, deck machinery
COP and stripper pumps
Tank washing machines and pipes
Hydraulic pipes and valves
Steel damage
By taking all the three parameters mentioned above into consideration, optimum ship repair cost
estimation can be reached using the resources and manpower available on board ship.
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