Chapter 8
Economics and Contractual Issues related to Directional Drilling Project
Introduction
In recent years, urban development has proceeded at unprecedented rates. Increasing levels of investment in construction and numbers of work permits issued reflect this rapid pace of activity in the built environment. These activities have negative impacts on the environment and on the community when infrastructures for outside plants are building. These impacts can be represented as costs since certain expenses have to be undertaken to overcome them. In this section initially we shall be dealing this economics and the evaluation methodology of these costs. Subsequently we shall be dealing with the contractual issues related to Directional Drilling Project.
Social Cost the Basic Concept
To understand fully the benefits of trenchless technology one must have a
consideration of how indirect costs are incurred. Indirect costs, or
social costs, have been defined as: "All real and virtual costs being made
for the execution of a project which cannot be included in the project
costs, but which are passed on to society." Project costs have been
defined as: The total of all costs which is the basis of the investment of
a given project." ....................for
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