Page 94 - Pipeline Rules of Thumb Handbook

Construction 81

These pits typically have a volume of at least 500cu.ft. accepted by the owner. The parties, price and performance
Depending on the nature of the project, the slurry is pumped must be specified. Define the project to be undertaken by
from the return pits to a “settling and containment pit.” These detailing the scope of work and incorporate all plans and spec-
pits vary in size depending on pumping rates and contain the ifications from the bid package.
slurry for recycling or disposal.
Recycling Slurry—Slurry that has been circulated down-
hole and collected in the containment pit is then passed Differing ground conditions and
through machinery that separate the cuttings from the slurry. walkaway provision
This process involves a series of shaking sieves and various
size hydroclones. Owners should accept the responsibility of performing an
Slurry and Cuttings Disposal—Significant amounts of adequate geotechnical investigation. Despite adequate testing
slurry are normally disposed of at the end of a project. Eco- of ground conditions, unknown, unusual, and unexpected
nomics for disposal is extremely site specific. This slurry can ground conditions may be encountered. The contract should
be disposed of by: provide solutions when the project encounters differing
ground conditions. The walkaway provision in the contract
1. Use at another drilling location.
should entitle the contractor to stop work and walk away from
2. Spread onto raw land for water retention improvement.
the job without the owner having the right to take over the
3. Evacuate to a dumpsite.
contractor’s equipment. The contractor should be entitled to
If working in an area of contaminated ground, the slurry receive compensation for demobilization, lost profits and
should be tested for contamination and disposed of in a work performed prior to walkaway. If the project is com-
manner that meets governmental requirements. pleted, the contractor should be paid on a cost-plus basis.
Assumption of risk of unforeseen ground conditions by the
contractor affects the bid price.
Cost mitigation for the owner

With prebid planning and research, the owner can realize Environmental concerns
significant savings in slurry disposal. It is in the owner’s inter-
est to define and specify all disposal issues. In particular: Before the project begins, address environmental concerns
1. Define an approved disposal site as part of the project because owners and contractors are included as potentially
specifications. responsible parties when environmental damages and
2. Because it is difficult to estimate disposal quantities, dis- cleanup costs are assessed. Federal, state and local laws must
posal should be a separate bid item as either “cost plus” be evaluated and licensing, permitting and other regulations
or on “unit rates.” must be followed. Directional crossings that damage soil or
3. Inadvertent returns are not uncommon and difficult to water may cause liability.
predict. The issue should be fairly represented to per-
mitting bodies prior to construction. Contingency plans 1. Turbidity of Water and Inadvertent Returns—As these
for containment and disposal of inadvertent returns events are difficult to predict and work stoppage may
should be priced as a separate bid item and agreed prior occur, the contract should offer a mechanism to mutu-
to construction. ally address and mitigate the problem. Liabilities are
generally shared by both the contractor and owner and
many times can be insured.
Conditions of the contract 2. Slurry Disposal—Comply with the regulations of the
area regarding slurry disposal. Slurry disposal should be
Always utilize a written contract to maximize communica- referred to in the contract and bid as a separate line item
tion and minimize controversy. A contract should be used on a cost plus or unit price basis.
to anticipate what the parties intend to do if a problem
occurs on the job. The contract should be readable and
understandable. Allocation of risk of loss

Evaluate and allocate risks of loss that may occur during
Bid package the project. Owners should share the risk of loss rather than
shifting all the losses through the indemnification to the con-
A proposal presented by a contractor to the owner is an tractor because the bid price is directly affected by contin-
offer by the contractor that becomes a binding contract if gent losses. Insurance may provide coverage by third parties