Analysis of parameters affecting costs of horizontal directional drilling projects in the United States for municipal infrastructure

Horizontal Directional Drilling (HDD) is a growing and expanding trenchless method utilized to install pipelines from 2 to 60 inch diameters for lengths over 10,000 foot. To date, there are not many public documents where direct costs and bid prices incurred by HDD installations are available and analyzed. The objective is to provide a better understanding of the factors affecting the bid prices of these projects. The first section of the thesis analyzes how project parameters such as product diameter, bore length and soil conditions affect the bid price of water and wastewater pipeline installations using HDD. Through multiple linear regressions, the effect of project parameters on bid prices of small, medium and large rigs projects is extracted. The results were further investigated to gain a better understanding of bid factors that influence the relationship between total cost and the project parameters. The second section uses unit cost, based on bid prices, to compare the costs incurred by defined categories. Parameters such as community type, product type, soil conditions, and geographical region were used in the analysis. Furthermore, using average unit cost from 2001 to 2009, HDD project cost trends are briefly analyzed against the main variations of the US economy from the same time horizon by using economic indicators. It was determined that project geometric factors influence more the bid price of small rig projects than large rig projects because external factors including market rates and economic situation have an increasing impact on bid prices when rig size increases. It was observed that bid price variation of HDD projects over years followed the same trend as the US economic variation described by economic indicators.