When Should Procurement Managers Procure Pipes? 

Procurement managers in industries like oil & gas, irrigation, and energy frequently encounter a pivotal choice: replacing existing pipes or procuring new ones. This decision requires careful analysis of performance metrics, industry needs, and cost implications.  

This decision hinges on understanding performance metrics, industry requirements, and cost-effectiveness. The first step is identifying the right time to act. Pipes need replacement or procurement in the following scenarios: 

• Existing infrastructure shows signs of reduced performance. 

• Task requirements evolve due to industry advancements or regulatory changes. 

• The technology used in current pipes becomes obsolete. 

Purchasing New Pipes 

When procuring new pipes, procurement managers should collaborate closely with planning engineers and reference the Bill of Quantities (BoQ) to align with project requirements. Key considerations include: 

1. Brand and Specifications: Choose pipes that adhere to specific ASTM codes or international standards. 

1. Material Types: 

1. Metallic Pipes: Ferrous (e.g., steel) or non-ferrous (e.g., copper, aluminum). 

1. Non-Metallic Pipes: PVC, HDPE, or composite materials. 

Matching these specifications ensures the pipes meet the demands of EPC infrastructure projects and industrial applications. 

Deciding to Replace Existing Pipes 

Replacing pipes is necessary when performance and efficiency no longer meet operational requirements. Factors to evaluate include: 

1. Reduced Performance: Diminished flow rate, leaks, or corrosion. 

1. Altered Task Requirements: Changes in pressure handling, temperature resistance, or flow capacity. 

1. Obsolescence of Technology: Older pipes may not support modern operational needs or compliance requirements. 

Procurement managers must rely on metrics like the Equivalent Uniform Annual Worth (EUAW) to decide whether to replace or retain a pipe. 

Understanding the EUAW Curve Over Time 

The Equivalent Uniform Annual Worth (EUAW) metric evaluates a pipeline’s economic value throughout its lifecycle, assisting managers in balancing operational reliability and cost efficiency. 

1. Initial Ownership Costs: Decrease over time as initial investments depreciate. 

1. Annual Operations and Maintenance (O&M) Costs: Increase with aging infrastructure due to repairs and inefficiencies. 

1. Salvage Value: Declines as the pipe reaches the end of its usable life. 

Analyzing the EUAW curve empowers managers to make data-driven decisions, optimizing cost efficiency while maintaining operational dependability. 

Case Study: Evaluating Pipe Replacement 

Problem Statement: 
A pipeline in an energy project has been in service for three years, with an EUAW of Rs. 5,210 per year and a remaining life of five years. A replacement option has the following parameters: 

• First Cost: Rs. 25,000 

• Salvage Value: Rs. 3,800 

• Life Span: 12 years 

• Annual Operating Cost: Rs. 720 

Analysis: 
Using a 10% Minimum Attractive Rate of Return (MARR), calculate the EUAW for the existing and replacement pipes: 

1. EUAW of Existing Pipe (EUAWD): Rs. 5,210 

1. EUAW of New Pipe (EUAWC): 

1. Rs. 25,000(A/P, 10%, 12) + Rs. 720 – Rs. 3,800(A/F, 10%, 12) 

1. Result: EUAWC = Rs. 4,211 

Decision: 
Since the EUAW of the replacement (Rs. 4,211) is lower than the current pipe’s EUAW (Rs. 5,210), the new pipe should be purchased. 

Procure New Pipes for your Next Pipe Replacement Project 

Strategic pipe procurement is a vital responsibility for procurement managers in industries like oil & gas, manufacturing, and water management. Informed decisions drive efficiency and sustainability.  

Decisions should be driven by technical specifications, cost analyses like EUAW, and long-term performance needs. 

Moglix provides a comprehensive selection of metallic (ferrous and non-ferrous) and non-metallic pipes to cater to varied industrial needs.  

With competitive pricing, pan-India delivery, expert project management, and supply chain financing, we serve sectors like oil & gas, energy, automotive, irrigation, and construction.  
 
Partner with Moglix to ensure optimal procurement solutions for your next project. 

Pipe procurement is a cornerstone of urban construction, demanding precision, efficiency, and sustainability.  

From drainage systems to essential infrastructures like EPC projects, oil & gas facilities, drinking water pipelines, and manufacturing plants, selecting the right pipes can profoundly impact cost-efficiency, durability, and operational success. 

For procurement managers, making informed decisions about pipes is essential to ensure the foundation of robust and sustainable infrastructure.  

This blog outlines seven practical and effective tips that procurement managers must consider for streamlining their pipe procurement process and delivering long-lasting results for urban construction projects. Let’s get started. 

Use Drainage Systems With 3 Layer Technology 

Drainage systems featuring 3-layer technology offer versatility and can be installed both above and below ground.  

These systems feature a smooth inner surface for optimal water flow and are easy to install, making them ideal for locations such as restaurants, hospitals, office buildings, and laboratories. 

Made from durable materials and reinforced with external ribs for extra strength, these pipes offer the toughness of metal.  

Their ability to resist hot water and chemicals makes them a dependable choice for long-term use in various urban construction projects. 
 
Avoid Low-Density, High Noise PP Drainage Systems 

Low-density polypropylene (PP) pipes might seem cost-effective initially, but they often compromise performance. These systems tend to produce high noise levels, which can be disruptive in residential and commercial areas. 

Urban areas demand silent and efficient drainage systems, especially in EPC infrastructure projects where noise disruptions can affect nearby communities.  

Opt for high-density and low-noise PP drainage systems that provide both durability and noise reduction. 

Use Lightweight uPVC Drainpipe System 

Unplasticized Polyvinyl Chloride (uPVC) pipes are a top choice for urban drainage projects. These pipes are lightweight which makes them easy to transport and install, thereby reducing labor and logistics costs. 

uPVC pipes are also resistant to chemicals, corrosion, and weather elements, making them suitable for applications in oil & gas facilities, drinking water systems, and irrigation networks. Their lightweight nature does not compromise their durability, ensuring long-term performance. 

Create Drainage Systems for Rainwater Management 

Urban construction projects often face challenges with rainwater management.  

Rainwater management is especially crucial for EPC infrastructure and energy projects, where water management can directly impact operational safety and efficiency. 

Integrating drainage systems specifically designed to collect rainwater can mitigate flooding and waterlogging issues.  

Corrosion-resistant, UV-stabilized pipes with high flow capacity and sturdy construction ensure durability and reliable performance, even in extreme weather. 

Utilize Advanced Sub-Surface Dewatering System 

Advanced sub-surface dewatering pipes are designed to prevent clogging and provide excellent waterproofing, making them a reliable choice for extending the life of buildings.  

Their ease of installation adds to their appeal, saving time and effort during projects. 

Procurement managers should opt for pipes with superior permeability and clog resistance to maximize system efficiency.  

These pipes are commonly used for creating drainage foundations, fixing leaking basements, and supporting agriculture and gardening needs.  

Their versatility makes them an essential solution for managing groundwater efficiently. 

This tip is especially vital for projects involving manufacturing plants and large-scale EPC infrastructure. 

Use Double Walled Corrugated Underground Drainage Systems 

Double-walled corrugated pipes are a robust solution for underground drainage. These pipes offer superior strength, flexibility, and load-bearing capacity, making them ideal for urban settings with heavy vehicular traffic.  

These systems stand out as they require minimal maintenance compared to traditional drainage solutions. Their inner smooth layer ensures high flow efficiency, while the corrugated outer layer provides structural integrity.  

These features make them a preferred choice for procurement managers involved in oil & gas, irrigation, and energy projects. 

Integrate PVC Underground Drainage Systems 

PVC pipes are a lightweight, versatile, and cost-effective solution, they are an affordable option for underground drainage systems in urban construction.  

They are highly durable, resistant to chemical erosion, and offer high water flow capacity. 

PVC pipes are commonly used in a variety of applications, including hospitals, townships, resorts, commercial complexes, and industries.  

Easy to install and requiring minimal maintenance, PVC pipes are an excellent choice for procurement managers aiming to balance performance and cost in urban construction. 

Procure Pipes for Your Next Urban Construction Project 

Choosing the right pipes is both a technical and strategic decision. Procurement managers must balance cost-efficiency, durability, and environmental sustainability while meeting the specific demands of urban construction projects. 

The tips outlined in this blog offer procurement managers actionable strategies to optimize their decision-making process. With the right pipe systems in place, urban construction projects can achieve both operational excellence and long-lasting results. By implementing these considerations, procurement managers can significantly contribute to resilient, sustainable, and cost-effective urban infrastructure.