Case Study Capillary Concrete Bunker
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1 Case Study Capillary Concrete Bunker INTRODUCTION PROJECT IMPACTS FINANCIAL IMPACTS 2016 DAN GROGAN COST BENEFIT ANALYSIS
2 INTRODUCTION Capillary Concrete Capillary Concrete is the technology platform with a patented ability to control moisture levels in any material installed on top of it. Through usage of macro-pores to regulate gravitational drainage and micro-pores to replenish moisture through capillary action, this material is well suited to sustain any kind of moisture levels desired in any kind of constructed profiles top layer. Purpose The Purpose of this Case Study is to show clients, investors, golf course superintendents and others how Capillary Concrete saves money each year on maintenance costs, at the same time as the playing condition is significantly improved. Golf Club The Case Study is performed at Sagamore Golf Club in Noblesville, IN. together Golf Course SuperintendentDan Grogan. Contact Information Dan Grogan dgrogan@thesagamoreclub.com (317) The Project Sagamore Golf Club is a high end private golf club which was awarded with Top Ten New Private Courses in America, 2004 by Golf Digest. The course has been in an extremely good shape ever since that day, but one big problem grew stronger and stronger for each year, thebunkers. After rainstorms, the bunkers flooded and wash-outs was a fact every single week. As a result, a large amount of money was spent each year, both on man hours to repair the damages, but also to put in new sand because of contamination. Another issue that grew was the compaction of the sand. It became hard to play from the bunkers and therefore, members started to complain. In 2015, the club decided to install Capillary Concrete in all the bunkers, and the results will now be quantified.
3 PROJECT IMPACTS Cost of renovating a square feet bunker Additional costs of installing Capillary Concrete Type of cost USD Type of cost USD 200 man hours to clear the bunker from old sand and install new drainage. $2 700 Cost of Capillary Concrete delivered to the course. $ man hours to install the new sand. $ man hours to install Capillary Concrete. $ tons of bunker sand at a 4 inches depth Total cost of Capillary Concrete $6 687 Cost to renovate a ft 2 without Capillary Concrete $9 427 Assumptions The cost of Capillary Concrete is estimated to average $1,53 per square feet. The maintenance runs 250 days a year at Sagamore Golf Club. There are 3,5 Acres of bunkers on the course. The cost of sand is $80 per ton. A man hour costs $13,5. A 5 % discount rate is used. THE INITIAL INVESTMENT The initial investment of installing Capillary Concrete in a square feet bunker is estimated to be $6 687, which makes the bunker about 70 % more expensive to renovate, compared to the case where no bunker liner is installed. This number will represent the present value of the costs in the cost benefit analysis, since the negative cash flow comes at year 0.
4 LONG RUN FINANCIAL IMPACTS Benefits of Capillary Concrete Weekly Maintenance Before the installation, it took on average 20 man hours per day to maintain the bunkers. After the installation, the maintenance isdown toapproximately 6 man hoursperday. Looking at the square feet bunker, the maintenance has gone down from 0,5 to 0,15 man hours per day on average, which equals a lowering of 87,5 man hours per year. Wash-out Repairs Before the installation, it took on average 108 man hours, to repair all the wash-outs after a heavy rain, 15 times a year. This equals 2,85 man hours on the square feet bunker. With Capillary Concrete, there are almost not a single washout, and therefore almost not a single man hourrequired. Bunker Sand Before the installation, the bunker was filled with 3 tons of sand every year because of contamination. Life-Span Without Capillary Concrete, Dan estimates that a bunker has a life-span of 5 years on average. With Capillary Concrete the bunkeris expected tobe in good shape for at least 15 years. Therefore, after the 5 th and the 10 th year, there will be a cost of $9 427 torenovate the bunkerfor themto be in good shape. Cost Savings on a square feet bunker Type of cost saving USD Maintenance (85 man hours x $13,5) $1 180 Wash-out repairs (2,85 man hours x 15 times) $575 Bunker Sand (3 tons x $80) $240 Total yearly cost savings $1 995 THE LONG RUN FINANCIAL IMPACTS With Capillary Concrete, there are numerous benefits, both cost savings and increased playing conditions that leads to indirect positive financial impacts. Looking at the square feet bunker, the club saves $1 995 each year. There is also a need to include the cost of a new bunker renovation every five year. This cost is estimated to equal the initial bunker renovation cost of $ These numbers will represent the cost savings/benefits in the cost benefit analysis. These numbers will be discounted to a present value since the occur in the future.
5 GOLF COURSE SUPERINTENDENT DAN GROGAN Dan Grogan s own words After heavy rains, there has never been a flood or major wash-out which has damaged the esthetical view of the course. My crew can now focus on the Grogan on Twitter: "If only all of the bunkers looked like this... turf instead of repairing bunkers, improving the condition of themessages entire course Home Notifications Search Twitter Dan Following If only all of the bunkers looked like this after all the rain,snow, & wind. Thank Dan FOLLOWS YOU Thoughts are my own. Sports Junky. Love anything & everything outdoors including a topwater & a round of 18. RETWEETS LIKES Golf Course Superintendent 4 7 at The Sagamore Club 6:07October PM - 2 Mar Joined 2016 Twitter About Help Terms Privacy The feedback from our membership in regards to the newly renovated bunkers has been nothing but positive feedback. It s mainly due to the consistency of the new bunkers and how each bunker plays the same. Cookies Ads info INTRODUCTION Pro/Angle PROJECT IMPACTS FINANCIAL IMPACTS DAN GROGAN COST BENEFIT ANALYSIS
6 COST BENEFIT ANALYSIS SQUARE FEET BUNKER Timeline of the cost and benefits at Sagamore Golf Club $9 427 $9 427 Benefit $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 $1 995 Year Cost -$6 687 The Initial Investment Present Value of Cost Savings Net Present Value In our cost benefit Analysis, the initial investment is the extra cost of installing Capillary Concrete during a bunker renovation. This includes Capillary Concrete d elivered to the course and all the extra man hours required to do the installation. Present Value - $6 687 The present value of saving $1 995 every year for 15 years equals a present value of $ The present value of saving $9 427 in 5 years equals a present value of $ The present value of saving $9 427in 10 years equals a present value of $ Present Value $ The net present value is the present value of the benefits minus the present value of the initial investment. Clearly, the net present is positive. Net Present Value $ CONCLUSION For a square feet bunker at Sagamore Golf Club, the yearly cost saving equals $1 995, and since the bunker is expected to last for at least 15 years, the net present value of the investment in Capillary Concrete equals $ Looking at the entire course, the club will have to spend an extra $ in year 0 to install Capillary Concrete. The present value of the cost savings will equal $
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