atcomsystems.ca/forum Forums Wiring - Telecom Carriers - Trunks & Services Outside Plant OSP Construction Cost to run fiber

I saw a bid about running fiber to about 40 or so schools thru out a county about 100 total miles to hit each building and get it into the building. I guess you would call it there own local loop. Does this sound right if they can get 4 million over a five year time frame. Trenching a new run down right of ways. How fast could a company do this?
Does this sound right. It comes out to about 40,000
per mile. On a good day how much can you get in the ground?

I come up with something in the area of $6.3M for our area, so that sounds pretty good to me. My question is what the return on investment will be. Of course, an OSP contractor with the proper experience and equipment could probably get a project of this size done in about half the time. Remember that even though there might be existing rights of way, there may be issues (AKA: Delays) caused due to road blockage, weather etc. that have to be considered for a project of this size.

When you said "40,000 per mile", I'm assuming that you meant dollars. I calculated it as 528,000 feet at a rate of $12.00 per foot. Since I'm not sure what size/type of fiber will be needed for this project, I can only generalize.

I can say that even a single inexperienced ground crew with the proper equipment can probably place about two miles per day with minimal obstacles.

They get 800,000 a year for 5 years and then it is back out to bid. All I know is 48 strand to the school and either 12 or more into the actual building. Last contract runs out at end of June.
Supposed to be working by July 1st but school doesn't start til the end of August.

Hmmm.... I don't like the sound of that. I know that city/county/state bids have all kinds of strange loopholes and limitations, but I can't imagine that a prime contractor wouldn't be afforded the opportunity to get it done as quickly as possible. Of course, I am assuming that the entire budget for this project was funded. Therein lies the problem:

Based upon my earlier statement that a good single crew could place two miles per day, I can't see the project lasting more that two years max. Keep in mind, my aforementioned obstacles may stretch this into three years.

Maybe budgets are causing this dilemma? Maybe there is only a certain amount of money allocated from the construction budget on a per-fiscal year basis that effectively brings the project to a halt at a certain dollar point?

This can certainly drive up the mobilization cost for a project of this nature and hence, the overall cost for it. Dragging all of that machinery out to the site, material deliveries, etc. costs a lot of money.

The school system only has so much money to allocate for this project and when it runs out, they have to suspend funding until their next fiscal year is approved. They pray that the needed funds to continue the project will be approved and in many cases, they aren't. (Out of sight, of mind mentality).

That probably explains why they have allowed a five-year time frame and the necessary cost increases to drag it out. They simply don't have the cash to pay for a project of this size at once, as is the case with most government agencies that must prove a balanced budget.

The five-year expiration thing is likely tied to local contracting laws that limit the length of any construction contract. I'm in the process of renewing my contractor's license here in Virginia and I can't believe how many changes have occurred since last time.

I still think that $4M is a bargain if what I suspect is true.

The new network is supoposed to be up and running on July 1st 2011 and the first run to a school is not even in yet. They are still seeing how to enter the buildings. We have a local cable company now that has the contract but it ends on June 30, 2011.

Wait a minute - UP AND RUNNIING in 3 weeks, and hasn't been bid yet???

UP AND RUNNING in 3 weeks with payment spead over next 5 years?

:rofl:

If I read your post correctly your installing the infrastructure and footing all the costs and then leasing it to to the school for 5 years at 800,000 per year? Three weeks? :nono:

They have the contract but the first piece of fiber is not in one building. I am not doing this I am just watching from a distance. The company has the contract for five years at $800,000 a year. The contract starts on July 1st. So every month they are losing money it they do not get the bid July 2016. I am asking if this sounds right. The company website is under construction but has been for about two months only a phone number to get in touch with them.

Hmmmm, am I the only one confused????? This network is supposed to be operational in three weeks but the contractor has to take payments of 800,000 for the next five years? What do you mean they lose money if they don't get the contract in 2016? Wouldn't they have received the 4 million already or am I missing something else???? :confused:

It would seem that the school district is looking for a way to replace the present network, provided by the local cable company, with leased fiber. They are offering a contract for $800,000/year for 5 years. Then the contract is put out for bid again. I'm betting that the next contract will include purchase option, to be exercised whenever the district wishes. So they pay 4 Million, plus another million or so, and own the fiber.