Case Study Capillary Concrete Bunker 2016

INTRODUCTION PROJECT IMPACTS FINANCIAL IMPACTS DAN GROGAN COST BENEFIT ANALYSIS

INTRODUCTION

Capillary Concrete is the technology platform with a patentedability to control moisture levels in any material installed on top ofit. Through usage of macro-pores to regulate gravitationaldrainage and micro-pores to replenish moisture through capillaryaction, this material is well suited to sustain any kind of moisturelevels desired in any kind of constructed profiles top layer.

Capillary Concrete

Purpose

Golf Club

The Project

The Purpose of this Case Study is to show clients, investors, golfcourse superintendents and others how Capillary Concrete savesmoney each year on maintenance costs, at the same time as theplaying condition is significantly improved.

The Case Study is performed at Sagamore Golf Club in Noblesville,IN. together Golf Course Superintendent Dan Grogan.

Contact InformationDan Grogandgrogan@thesagamoreclub.com(317) 773-2799

INTRODUCTION PROJECT IMPACTS FINANCIAL IMPACTS DAN GROGAN COST BENEFIT ANALYSIS

Sagamore Golf Club is a high end private golf club which wasawarded with “Top Ten New Private Courses in America, 2004” byGolf Digest. The course has been in an extremely good shapeever since that day, but one big problem grew stronger andstronger for each year, the bunkers.

After rainstorms, the bunkers flooded and wash-outs was a factevery single week. As a result, a large amount of money wasspent each year, both on man hours to repair the damages, butalso to put in new sand because of contamination.

Another issue that grew wasthe compaction of the sand.It became hard to play fromthe bunkers and therefore,members started to complain.

In 2015, the club decided toinstall Capillary Concrete in allthe bunkers, and the resultswill now be quantified.

PROJECT IMPACTS

Cost of renovating a 4 000 square feet bunkerType of cost USD

200 man hours to clear the bunker from old sand and install new drainage.

$2 700

42 man hours to install the new sand. $567

77 tons of bunker sand at a 4 inches depth. €6 160

Cost to renovate a 4 000 𝐟𝐭𝟐without Capillary Concrete $9 427

Type of cost USD

Cost of Capillary Concrete delivered to the course. $6 120

42 man hours to install Capillary Concrete. $567

Total cost of Capillary Concrete $6 687

THE INITIAL INVESTMENT

• The initial investment of installing Capillary Concrete in a 4 000 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.

INTRODUCTION PROJECT IMPACTS FINANCIAL IMPACTS DAN GROGAN COST BENEFIT ANALYSIS

Additional costs of installing Capillary Concrete

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.

Cost Savings on a 4 000 square feet bunker

LONG RUN FINANCIAL IMPACTS

Benefits of Capillary ConcreteType 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

Weekly Maintenance• Before the installation, it took on average 20 man hours per

day to maintain the bunkers. After the installation, themaintenance is down to approximately 6 man hours per day.

• Looking at the 4 000 square feet bunker, the maintenance hasgone 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. Thisequals 2,85 man hours on the 4 000 square feet bunker.

• With Capillary Concrete, there are almost not a single wash-out, and therefore almost not a single man hour required.

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 thebunker is expected to be in good shape for at least 15 years.

• Therefore, after the 5th and the 10th year, there will be a cost of$9 427 to renovate the bunker for them to be in good shape.

INTRODUCTION PROJECT IMPACTS FINANCIAL IMPACTS DAN GROGAN COST BENEFIT ANALYSIS

THE LONG RUN FINANCIAL IMPACTS

• With Capillary Concrete, there are numerous benefits, both cost savings and increasedplaying conditions that leads to indirect positive financial impacts.

• Looking at the 4 000 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 $9 427.

• These numbers will represent the cost savings/benefits in the cost benefit analysis. Thesenumbers will be discounted to a present value since the occur in the future.

GOLF COURSE SUPERINTENDENT DAN GROGAN

Dan Grogan@purdueturfy FOLLOWS YOU

Thoughts are my own. SportsJunky. Love anything &everything outdoors includinga topwater & a round of 18.Golf Course Superintendentat The Sagamore Club

Joined October 2010

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Dan Grogan@purdueturfy

RETWEETS

4LIKES

7

If only all of the bunkers looked like this after all the rain,snow, & wind. Thank you @TedFist1 &

@CapConGolf

6:07 PM - 2 Mar 2016

Following

   Reply to @purdueturfy @TedFist1 

Pro/Angle Sand @ProAngleOhio · Mar 2@purdueturfy @TedFist1 @CapConGolf @ProAngleOhio

Dan Grogan @purdueturfy · Mar 2@ProAngleOhio and thanks to you guys as well. Ran out of characters

Pro/Angle Sand @ProAngleOhio · Mar 2@purdueturfy Its all good! Nice when spring maintenance on those bunkers is only raking the dog prints!

Dan Grogan on Twitter: "If only all of the bunkers looked like this ... https://twitter.com/purdueturfy/status/705077048948170753?refsr...

1 av 1 2016-03-11 11:10

Dan Grogan’s own words

INTRODUCTION PROJECT IMPACTS FINANCIAL IMPACTS DAN GROGAN COST BENEFIT ANALYSIS

“After heavy rains, there has never been a flood ormajor wash-out which has damaged the estheticalview of the course. My crew can now focus on theturf instead of repairing bunkers, improving thecondition of the entire course”

”The feedback from our membershipin regards to the newly renovatedbunkers has been nothing butpositive feedback. It’s mainly due tothe consistency of the new bunkersand how each bunker plays thesame.”

COST BENEFIT ANALYSIS – 4 000 SQUARE FEET BUNKER

• In our cost benefit Analysis, the initial investment is theextra cost of installing Capillary Concrete during abunker renovation.

• This includes Capillary Concrete delivered to thecourse and all the extra man hours required to do theinstallation.

The Initial Investment Present Value of Cost Savings Net Present Value

CONCLUSION

For a 4 000 square feet bunker at Sagamore Golf Club, the yearly cost saving equals $1 995, and since the bunker isexpected to last for at least 15 years, the net present value of the investment in Capillary Concrete equals $27 193.

Looking at the entire course, the club will have to spend an extra $254 875 in year 0 to install Capillary Concrete. Thepresent value of the cost savings will equal $1 291 336.

INTRODUCTION PROJECT IMPACTS FINANCIAL IMPACTS DAN GROGAN COST BENEFIT ANALYSIS

Present  Value -­‐$6  687

• The present value of saving $1 995 every year for 15years equals a present value of $20 700.

• The present value of saving $9 427 in 5 years equals apresent value of $7 385.

• The present value of saving $9 427in 10 years equals apresent value of $5 785.

Present  Value $33  880

• The net present value is the present value of thebenefits minus the present value of the initialinvestment.

• Clearly, the net present is positive.

Net  Present  Value $27  193

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Cost

Benefit $1 995

$9 427

$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

$9 427

-$6 687

Timeline of the cost and benefits at Sagamore Golf Club