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Towards cost-effective groundwater development in Sudan and in sub-Saharan Africa
Personal Report of Workshop on Cost-Effective Boreholes, Khartoum, November 2009
Presentation addressed the issue of drilling cost estimation. Drilling companies and their clients need a systematic procedure for quantifying the costs of drilling. The reasons for this are as follows:
- Drilling companies and enterprises need to know the costs which they will incur when they tender for a particular assignment. These costs form the basis of the price which they quote in a tender. It is crucial to understand the difference between cost (the actual expense incurred) and price (which includes a profit element and other additions reflecting perception of risk).
- Those paying for drilling (clients) need an independent means of estimating the likely cost of the operations which they will pay for. This knowledge can give the client an informed means of negotiating and engaging with drilling companies.
- Both parties to a drilling contract need to be realistic about costs, so that businesses can remain viable, and so that clients get good value for money.
- A systematic means of quantifying drilling costs enables the analysis of opportunities for cost reduction, while at the same time addressing the key issues of design and construction quality and functional sustainability.
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