Due Diligence

A CCTV inspection van is a major investment. Before choosing equipment, weigh all the costs and consider all the variables in light of your program goals.

So, you want to buy a CCTV inspection van. You’ve spent a lot of time looking at manufacturers and studying the differences between the crawlers and the cameras. You have pretty much decided what you want. But do you really know what you are getting into? Have you considered every aspect of the purchase and the long-term ramifications?

For a contractor, the purchase of a van largely comes down to finances. Can it operate profitably? If so, great! But if not, the company may go out of business, and that shiny new van will end up for sale for far less than the original purchase price.

A contractor will usually justify the purchase of an inspection van based on work on hand. If there is enough work to keep the van busy for six months to a year, that can be justification enough.

For a public agency, the process and the consequences differ considerably. Here, the purchase of an inspection vehicle must be justified through a critical analysis of the agency’s needs and an objective view of the inspection program and its long-term cost and effectiveness.

Unfortunately, many agencies minimize this critical analysis, and the inspection van never achieves its intended purpose. As a result, there are hundreds of vans across the nation that are either rarely used or simply abandoned in city yards.

Smart decision-making

How does something like this happen? It usually comes down to the fact that the purchase decision process was not properly carried out. A lack of information combined with misinformation can result in an ill-advised decision. The truth is that not everyone is properly served by owning a CCTV inspection van.

That said, let’s look at some of the more common misconceptions that relate to the purchase of an inspection van. In the end, these are some of the more significant reasons as to why CCTV inspection programs fail.

Many people have the misconception that the retail price of a van is its final cost. They look at the price tag — say, $120,000 — compare that to the $60,000 they spend per year on contractors, and then think that in two years they will be ahead of the game. Nothing could be further from the truth. In fact, a host of other financial considerations drive up the cost of operating that van. What are some of those costs?

Employees. It costs money to have employees operating a CCTV inspection van. There are also expenses for training them to use the equipment and software, repair the equipment, and obtain certifications. If there are two full-time employees, that alone could easily exceed the cost of contracting inspection services.

Maintenance. The cost of repairs is often overlooked. Sales-people may downplay its impact by promoting cost-free maintenance for the first year. But the truth is that inspection equipment breaks down. No matter how rugged it is, it works in harsh conditions and is often handled by less- than-gentle employees. Although repairs may be infrequent when the equipment is new, they escalate dramatically as it ages. Repairs can easily exceed 15 to 25 percent of the original cost of the van per year.

Insurance, permits and licenses. Often, the people deciding to purchase a van are not the ones paying the bills. Therefore, they do not consider all the costs: auto and liability insurance, operating permits, vehicle licenses, and other incidentals.

Tools and equipment. An inspection van needs specialized tools and equipment to work effectively. A well-outfitted van carries manhole hooks, gas monitors, ratchet sets, hand tools, power tools, traffic-control signs and delineators, arrow boards, computer battery backups and more. Over time, some of this equipment wears out or is lost and needs to be replaced. Other costs include software upgrades, and yearly software service agreements, and computer replacements at least every three years. These costs translate into thousands of dollars per year.

Consumables. Pipeline inspections are recorded to the computer. At some point, DVDs and hard drives are needed to export the data from the computer. Inspection reports must be printed and organized into binders. Light bulbs, screws, tires and many other small parts for the CCTV equipment must be counted. These consumables can easily rack up four-digit costs.

Additional inspection equipment. Once the inspection program begins, it may be necessary to add more equipment to inspect different types of pipe. A large crawler costing $20,000 to $60,000 may be needed for large-diameter pipe. Special wheels may be required for difficult areas. A backup camera may be needed because loaners are not available. All this drives up the cost.

Technical considerations

Money issues aside, buying CCTV inspection equipment is not the same as buying a refrigerator. We soon forget the brand of refrigerator because it works well for years and needs virtually no maintenance.

However, when you purchase a CCTV inspection van, you enter into a relationship with the brand. A month will rarely pass without some interaction with the manufacturer or a service provider. Whether it’s troubleshooting, buying parts, or shipping the equipment for repairs, the relationship with the brand is vital. Remember, the question is not if but when the equipment will break down.

When shopping for high-tech equipment, it is also important to consider the type of pipeline inspections. Each manufacturer has strengths and weaknesses. For example, some camera systems are difficult to float, while others require an additional crawler to inspect 6-inch lines. Some have zoom capabilities, others have lighting limitations, and some have cable length restrictions. Know exactly what you need, and make sure the system you are considering fills those needs.

Never buy equipment you don’t need. If the largest pipe in your system is 18 inches, it is a waste to buy a storm drain tractor designed to inspect 24- to 124-inch pipe.

The success of your inspection program may depend on how well the equipment manufacturer supports you. Consider how quickly they can make repairs and how well they can supply you with loaner equipment.

Also consider the location of service centers. Find out the turnaround time on repairs. Can you drive to a service center? Or does everything have to be shipped? If your van is down for more than a week, then the goals you have set may be jeopardized.

Before settling on a manufacturer, get a list of references of current users of the exact same equipment you are price-checking. Find out firsthand how happy they are with the equipment and how responsive the service has been.

Software is a significant consideration. Bill Roseberry, sewer superintendent for the City of Fullerton, Calif., suggests that agencies should not necessarily settle for the inspection software that comes with the van. “It is important to consider the various programs that are out there,” he says. “Make sure that they are PACP compliant, user friendly, and exportable to GIS mapping.”

There is an ongoing relationship with the software manufacturer. Make sure you are comfortable with their upgrade policy, their openness to customization, and their responsiveness to trouble-shooting. Know up front what their annual fees are. Call references to get an accurate picture of the company before entering into a contract.

Achieving footage goals

Many public agencies have highly successful CCTV inspection programs. At the heart of their success is an exceptional inspection operator. Without a motivated, driven and talented person at the helm of the van, your inspection program might well fail.

Unfortunately, it is difficult to find candidates who comfortably straddle the outside world of sewers and the inside world of computers and software. Settling for an under-qualified operator will doom an inspection program faster than anything else.

Marty Holmes, wastewater collections supervisor for Padre Dam Municipal Water District in Santee, Calif., says defined footage goals for their inspection operator are the key to success. “We review what they have done on a monthly basis and then discuss their goals for the coming month,” he says. “Ongoing accountability is what keeps us focused on our target goals.”

In the end, when you perform due diligence in purchasing an inspection van, you will make the right decision and serve the taxpayers well. Take your time, and don’t spend a dime until you know exactly what you are getting yourself and your agency into. In the end, that extra measure of diligence will pay huge dividends, in the short term and over the long haul. F

Jim Aanderud is owner of Innerline Engineering, a video pipeline inspection company based in San Diego, Calif.



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