The financial costs associated with dredging activity are highly variable, depending on the plant being employed and the type of dredging being undertaken, Anthony D Bates Partnership (ADBP) reports.
Since 2005, the Construction Industry Research and Information Association (CIRIA), has published the book ‘Cost standards for dredging equipment’.
The guide presents the primary capital values and costs associated with a range of dredging plant, based on their specification. This publication is commonly used throughout the industry for a range of studies including CAPEX estimation, cost allocation between dredging contractors in joint venture and most prominently in disputes, where cost estimation is required to be undertaken.
Due to the high capital cost and subsequent value of dredging plant, the accurate calculation of the respective depreciation and interest is fundamental to the build-up of the estimated daily operating plant rates. Ongoing maintenance and repair of the plant also forms a primary cost.
The CIRIA publication details these items for a variety of dredging plant. It does not provide detail on other operational costs such as labour, insurance, fuel, wear and tear, overheads and profit/risk.
According to the document, these must be derived from further calculations to ascertain the total cost of leasing the dredging plant, commonly known as the daywork rate.
The paper was presented by Leigh Holmes at the CEDA Dredging Days conference in Rotterdam on the 7th of November and was well-received – promoting constructive discussion amongst CIRIA Dredging Cost Standard book users across the dredging industry.