Water Well Journal
Issue link: http://read.dmtmag.com/i/451364
times," says Kevin Christensen of Palmer Bit Co. in Williston, North Dakota. Christensen recalls a job where a company took four days to drill three holes through shale with a drag big on a compact sonic rig. When the crew switched to a four-wing polycrys- talline diamond compact (PDC) bit, they were able to drill two holes per day for a total of 18,000 feet on the one bit. You may also be able to reduce your cost per foot by switching to a more durable bit. Even if a bit costs more up- front, the cost per foot may actually be less. If you're using a $175 bit but only able to drill one 300-foot hole, the bit costs nearly 60 cents per foot. If you switched to a $1500 bit that lasts for 50 holes, it reduces your costs to 10 cents per foot. "If you're not getting the penetration rate or the bit life you expect, it's definitely worth the 10-minute call to your bit guy," Christensen advises. "By changing up the bit you may be able to go from a job that's losing money to one that's making money." Mistake #3: Ignoring the "hidden" costs The true cost of doing business is more than materials and labor, so your price must reflect that. "It's not just the tally of your costs divided by the footage," says Cary Smith of Sound Geothermal Corp. in Sandy, Utah. "It's the wear and tear on your rig, health and safety concerns, insurance, etc. All of those things have got to come together." When it comes to finding "hidden" costs, the devil is in the details. Take grout, for example. The true cost of the grout is more than the cost per bag. You'll need a way to transport it, store it, and move it around the site. If it's a product that needs to be mixed on site, you may need extra workers or more time to do that. Depending on the type of grout you're working with, you may also need personal protective equipment. "If we're using a cementitious grout, we have to do the whole job in one purchase order," McPike says. "Then we're going to have to use the SkyTrac to move it around two or three times before we get it used up. If those bags break or bust, or if there's humidity or whatever, then you have to replace the grout because it's up to you to get those holes cemented up." The National Ground Water Association's Geothermal and Drilling Cost Calculators, which are free for NGWA members, can help determine the cost of doing business. McPike uses them because they consider all parts of a job—from the diesel fuel to the insurance. Bergerson-Caswell's bid sheet accounts for everything on a job site—even duct tape, Henrich says. "Accounting for everything is the key to not missing any- thing," he says. "It sounds simple, but it's actually more com- plex than that because there are a lot of different pieces you put in the field." Even details on the job plan, like scheduled work hours, can affect your costs. Specified work hours can make it diffi- cult to get everything done in time, which can mean it takes longer to get the job completed. "If you're 40 feet from the bottom of a 500-foot hole and they want you to stop, then you have to come back in the morning and start over," McPike says. "You're taking up 90% of that day just trying to get back to where you were at last night when you quit." Some engineered jobs also require specific products to be used, which could be costlier or more difficult for you to pur- chase. Often, jobs allow for an "approved equal" so you can submit a request for information asking if you can use the products you're familiar with, but that's not always possible. "Sometimes they're not going to let you use something different," Henrich says. "If you get stuck, it cuts into your profit margin. We read everything, and we are very careful to key in on all of those particular details." Mistake #4: Missing out on the best deal Spending less on the products you use means more money in the bank. To cut costs without cutting corners on quality, try buying in bulk. Estimate how many projects you'll do in a year and purchase products for the entire year. DACUM Codes To help meet your professional needs, this article covers skills and competencies found in DACUM charts for drillers and pump installers. DO refers to the drilling chart. The letter and number immediately following is the skill on the chart covered by the article. This article covers: DOA-2, DOA-4, DOA-5, DOA-6, DOB-1, DOB-3, DOB-4, DOB-5, DOB-6, DOB-7, DOB-8, DOB-9, DOB-10, DOC-3, DOC-4, DOJ-6, DOJ-7, DOK-1, DOK-2, DOK-7, DOK-10, DOL-11 More information on DACUM and the charts are available at www.NGWA.org. 20 February 2015 WWJ waterwelljournal.com MISTAKES from page 19 A 33-ton geothermal system was completed for a township three years ago. This job was in a parking lot, so not only were the utilities an issue but keeping the site clean was a priority. Photo courtesy F.E. Buehler & Son Inc. in Warrington, Pennsylvania.