Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
COST CONSIDERATIONS Costs associated with verification systems can only be approximated; for example, it is difficult to determine the added costs industry must absorb with a separate design review conducted by a third party. In some cases, industry might elect to use the results of certain portions of a third-party verification to satisfy parts of their internal review requirements. In most cases, they will probably elect to undertake separate in-house reviews. Another important consideration affecting costs is the number and complexity of platforms to be constructed. It has been estimated that about 25 major platforms will be built in new U.S. waters per year in the coming five years. The costs can range from $30 million to $150 million each, depending on their size, the site of installation, and the objectives of the platform. Also, the additional costs assignable to verification to obtain environmental data, whether incurred by industry or government, would be dif- ficult to establish. A verification system might result in a "saving." For example, a third-party review process may assure that one or more structures survives a storm. On the other hand, the verification system could add to costs by delays that could result in shifting the installation of the structure to the next weather-suitable construction season. Thus, an accurate and totally defensible tabulation of real costs is unattainable. The panel's best estimate of the cost of a verification program is approximately one percent of the total platform cost to the USGS for personnel to administer and monitor the system, and two percent of the total platform cost for industry, to cover its costs for extra documentation, reviews, and inspection. 46
