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HOME » GUIDELINES » HOW COST ESTIMATION IS DONE FOR SHIP’S DRY DOCK?

How Cost Estimation is done for Ship’s Dry

Dock?
By Anish | In: Guidelines | Last Updated on April 10, 2020

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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.

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Cost estimation plays an important role in order to keep a check on a ship’s dry docking budget and to World’s First Autonomous & Zero-
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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.

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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.

Image Credit: zebecmarine

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About Anish
An ardent sailor and a techie, Anish Wankhede has voyaged on a number of ships as
a marine engineer officer. He loves multitasking, networking, and troubleshooting. He
is the one behind the unique creativity and aesthetics at Marine Insight.

Comments

Andrew Germain says

OCTOBER 2, 2013 AT 3:11 PM

Is it normal for a 5 year Dry Dock Expenditures amounting to USD 2.3 M for a vessel of 37,500
DWT

POLAKI SURYA NARAYANA says

JANUARY 29, 2018 AT 3:40 PM

An unscheduled job is over-priced by the yard giving numerous reasons like revamping
crew,equipment etc. So when entering dry dock , the repair list should be full and final and with
the attending superintendent.

Anish says
FEBRUARY 6, 2018 AT 4:44 PM

@POLAKI: Great Insights. Thank You

Kaunteya Deshpande says

DECEMBER 4, 2018 AT 4:40 PM

As per your studies, please suggest what is the proportion of costs of Paint material, Surface
Preparation, Labor & Scaffolding in a typical dry dock with Cargo Holds + Hull painting.

A great introductory article. Saving a PDF for my reference.

V.K.MEHTA says
MAY 29, 2020 AT 12:53 PM

What is the estimated cost for painting of scratch marks on hull over an area of 100 sq. meter

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