Lcca On Corrosion Remedial Measures For Concrete Bridges And Marine Structures Accounting Essay

Published: October 28, 2015 Words: 1599

This paper discusses a short study on life cycle cost analysis (LCCA) on corrosion remedial measures for concrete bridges and marine structures, which are subjected to carbonation or ingress of sodium chloride from sea water and other sources. Life cycle costing software, Bridge LCC 2.0, was used to perform life cycle cost analyses on three case studies, based on net present value method. The analysis of the results showed that LCCA is capable of assisting engineers or transportation agencies to evaluate optimum maintenance decisions in corrosion-related problems. It can be used as an engineering economic analysis tool that helps in quantifying the differential costs and choosing the most cost-effective corrosion remedial measures. Life cycle costs for the remedial measures are influenced by many costing variables such as initial costs, periodic maintenance costs, frequency years and analysis period. The best practice of LCCA should not only consider agency expenditures but also user costs and sensitivity analysis throughout the service life of a remedial measure.

The cost elements used in life-cycle costing for corrosion remedial case studies:

Initial cost

made up of a number of cost elements that do not recur after an activity

is initiated such as surface preparation, removal of defective concrete

Disposal cost

the cost of disposing the structure when it is non-repairable.

Discount rate

real discount rates reflect the true time value for money with

no inflation premium. FHWA recommends using a real discount rate in the

range of 3% to 5%.

Maintenance cost

group of costs experienced continually over the useful life of the activity

such as re-applying surface coating, replacement of anodes in CP etc.)

Analysis period

time used to evaluate the total cost required for a remedial measure, typically 75 to 100 years for bridges.

Inflation rate

measures the change in the prices of goods and services from one year to the next

The relationship between various cost elements is diagrammatically shown in a typical expenditure stream diagram for LCCA as in Figure 1. In this project, disposal cost is neglected due to its remoteness from the life cycle and thus tends to be small after discounting. The input data are obtained from three case studies:

Case Study I

Chosen a preventive option in bridges which involves: coating, silane, cathodic protection, waterproofing membranes, painting.

Case Study II

Choose repair and maintenance techniques in a wharf structure which include chloride extraction, cathodic protection and patch repair.

Case Study III

Choose anode systems in impressed-current cathodic protection for concrete bridges.

The input data for the three case studies are summarized in Table 1, 2, and 3.

Table 1 Input data for analysis in Case Study I

Corrosion preventive techniques

Analysis period: 75 years Base year: 2003

Real discount rate: 3.2 % Inflation rate: 2.3%

Alternatives Costs (US Dollars, $)

Painting Initial repair cost = $448,000

On-going cost = $45,000 (repeat at 10 years)

Waterproofing membranes Initial repair cost = $450,000

On-going cost = $43,000 (repeat at 25 years)

Coating Initial repair cost = $443,000

On-going cost = $40,000 (repeat at 25 years)

Silane Initial repair cost = $440,000

On-going cost = $36,000 (repeat at 10 years)

Cathodic protection Initial repair cost = $1,100,000

On-going cost = $240,000 (repeat at 8 years)

Table 2 Input data for analysis in Case Study II

Corrosion repair/stopping techniques

Analysis period : 20 years Base year : 1990

Real discount rate : 14 % Inflation rate : 10 %

Alternatives Costs (US Dollars, $)

Patch repair Initial repair cost = $ 280,000

On-going cost = $ 280,000 (repeat at 5 years)

Cathodic protection Initial repair cost = $ 474,000

On-going cost = $ 17,700 (repeat at 5 years)

Chloride extraction Initial repair cost = $ 306,000

On-going cost = $ 58,000 (repeat at 10 years)

Table 3 Input data for analysis in Case Study III

Anode systems

Analysis period : 75 years Base year : 2002

Real discount rate : 3.2 % Inflation rate : 2.2%

Alternatives Costs (US Dollars, $)

Catalyzed Ti-Mesh Initial repair cost = $ 155,000

On-going cost = $ 7,800 (repeat at 75 years)

Conductive paints Initial repair cost = $ 235,000

On-going cost = $ 11,800 (repeat at 14 years)

Thermal-sprayed Zn-coating Initial repair cost = $ 220,000

On-going cost = $ 10,000 (repeat at 27 years)

Thermal-sprayed Ti-coating Initial repair cost = $ 279,000

On-going cost = $ 13,800 (repeat at 30 years)

Results

Table 4,5,6 is the result of life-cycle costing reflect by the case studies I,II,III.

Life cycle costs by life cycle periods are shown in Figures 3, 5, and 7.

Figures 2, 4, and 6 show the cumulative life cycle costs, in net present value, for the competing alternatives in case I, case II and case III.

Table 4 Life-cycle costs for case study I

Cost category Water-

USD$)

Painting

Water-proofing membranes

Coating

Silane

CAthodic protection

Agency cost initial cost

448,000

450,000

443,000

444,000

1,100,000

Maintenance cost

62,000

18,000

18,000

50,000

420,000

Total cost(net present value)

510,000

468,000

461,000

494,000

1,520,000

Table 5 Life cycle costs for Case Study II

Cost category

Patch repair

Cathodic protection

Chloride extraction

Agency cost

Initial cost

280,000

474,000

306,000

Maintenance cost

440,000

28,000

34,000

Disposal cost

0

0

0

Total cost (Net present value)

720,000

502,000

340,000

Table 6 Life cycle costs for Case Study III

Cost category

Catalyzed TI-Mesh

Conductive paints

Thermal-sprayed Zn-coating

Thermal-sprayed Ti-coating

Agency cost

Initial cost

155,000

235,000

220,000

279,000

Maintenance cost

750

20,000

7,000

7,700

Disposal cost

0

0

0

0

Total agency(Net present value)

155,750

255,000

227,000

286,000

DISCUSSION

Economic Evaluation

From the case study I (Table 4), the most cost-effective preventive technique among the alternatives is the coating that is $461,000. The most expensive used for prevention of corrosion is cathodic protection because of the high initial and maintenance costs.(Figures 3). The cost of coating and waterproofing membranes are lower than cathodic prevention, painting and silane because coating and waterproofing have longer frequency years for periodic maintenance and cathodic prevention, painting and silane only have shorter frequency years for periodic maintenance.(Figure 2).

Figure 2 Cumulative life cycle costs, in present value, for each corrosion preventive techniques in Case Study I

Figure 3 Life cycle costs by life cycle periods for Case Study I

From the case study II, the most effective repairing technique of the chloride extraction is causes by it has the lowest life cycle cost over the analysis period. (Table 5). In figure 5 shows that the longer frequency year is chloride extraction. In contrary, patch repair need much expenses for periodic maintenance and causes it more costly if compare to Cathodic protection and Cathodic extraction.

Figure 4 Cumulative life cycle costs, in present value, for each corrosion maintenance techniques in Case Study II

Figure 5 Life cycle costs by life cycle periods for Case Study II

From the case study III, the most cost effective is catalysed Ti-mesh because of their initial cost are lower if compare to others. The reason of the catalysed has a lower cost is because the service life for the anodes is long and cause the periodic maintenance costs to be far away in the life cycle, therefore it incline to small after discounting the present value (Figure 7). So, we can see the effect on the life cycle costs is small in Figure 6.

Figure 6 Cumulative life cycle costs, in present value, for each anode used in impressed-current cathodic protection in Case Study III

Figure 7 Life cycle costs by life cycle periods for Case Study III

Costing Variable

As a result, costing variables such as frequency years, initial costs analysis period and periodic maintenance costs will affect the life-cycle costing. If the analysis period and the frequency year are long, the impact of the periodic maintenance costs on the life-cycle costing will be small

5.4 Shortcomings in LCCA

The fundamental problem associated with the application of life cycle costing in practice is the requirement to forecast a long time ahead in predicting the related future events. While some of these events can at least be considered, analysed, and evaluated, there are other aspects that cannot even be imagined today. These therefore, remain outside the scope of prediction and probability, and cannot be assessed in the analysis. Besides that, the results of LCCA are highly dependent on the input variables. Many times these inputs are only best estimates. This is due to the difficulty in identifying definite cost information as this varies from job to job, and country to country.

6.0 CONCLUSIONS

The case studies have demonstrated the useful application of Life Cycle Cost Analysis (LCCA) as a decision support tool in analysing investment decision making of repairing corrosion-induced damage and determining optimum maintenance strategies for concrete bridges and wharf structures. LCCA has been shown to be useful in assisting engineers or transportation agencies to evaluate optimum maintenance decisions in corrosion-related problems. It can be used as an engineering economic analysis tool that helps in quantifying the differential costs and choosing the most cost-effective corrosion remedial measures. Life cycle cost is influenced by many costing variables

such as initial costs, periodic maintenance costs, frequency years, and analysis period. The analysis of the results in the case studies showed that initial costs should not be the only criteria in selecting remedial measures. Input variables such as periodic maintenance costs and frequency years should be taken into consideration by discounting to the net present value in LCCA. In order to obtain more reliable analysis, the best practice of LCCA should not only consider agency expenditures but also the user costs and sensitivity analysis throughout the service life of a remedial measure