Construction Methods and

Project Management

FACTORS AFFECTING THE

SELECTION OF CONSTRUCTION
EQUIPMENT

REPORTER:
AUXTERO, AISHAH BABES L.
BSCE 3Q-CE17
 Bulldozer Crane

Backhoe
Concrete Mixer Skid steer loader
Contractors are the one who selects the equipment
for the construction.

He should consider the money spent for equipment

as an investment.

The equipment must pay for itself by earning for

the con- tractor more money than it costs.

The contractor should consider the long-term cost-

effectiveness of purchasing new equipment versus
using existing equipment.
Standard type of Equipment
Commonly manufactured and available to
prospective purchasers.
Delivery of standard equipment may be
obtained more quickly.
There is no clear definition of standard equipment.
Equipment that is standard for one contractor may be
special equipment for another contractor. It depends
on the extent to which a contractor will use it in his
construction operations.

Standard equipment can be used

economically on more than one project

Repair parts for standard equipment may

be obtained more quickly economically

If a contractor no longer needs a unit of

standard equipment, he can usually
dispose of it more easily and at a more
favorable price.
 Special Equipment

An equipment that is manufactured for use on a single project or for a special type of
operation.

Equipment may not be suitable or economical for use on another project.

A concrete mixer is standard equipment

while pre-stressing equipment may be
considered as special equipment.

CANAL TRIMMER FIG. 3-1.

Replacement of Parts
A factor which may be overlooked by a prospective purchaser of equipment is the ease and speed
with which replacement parts may be obtained.

All equipment parts are subject to failure, regardless

of the care which they receive.

A truck with a broken axle is useless until the axle is replaced. A

broken part in a power shovel may delay an entire project for
weeks, while waiting for the part to be manu- factured and
shipped.

Prior to purchasing equipment, the buyer should

determine where spare parts are obtainable. If parts
are not obtainable quickly, it may be wise to purchase
other equipment, for which parts are quickly available
The Cost of Owning and Operating
Construction Equipment.
Estimate is the only a close approximation of the cost.
Carefully kept records for equipment previously used
should give information which may be used as a guide
for the particular equipment.
Depreciation
Depreciation is the decrease in value of an asset over
time. In other words, when you buy something like a car,
a piece of machinery or a building, it loses value as it is
used, wears out or becomes outdated. Depreciation is
the process of accounting for this decrease in value over
time.

The cost of the equipment delivered to the owner, the Example: if a company buys a delivery van for $30,000
severity of the conditions under which it is used.
and expects it to last for 5 years, they may depreciate it
at a rate of $6,000 per year. This means that each year,
The costs which should be considered include
depreciation, maintenance, repairs, investment,
they will record $6,000 as an expense on their financial
lubrication, and fuel, if fuel is required to operate it. statements to reflect the fact that the van is becoming
less valuable over time.

NOTE: A contractor who fails to include in his estimate an

appropriate allowance for depreciation of his equipment will find
that he has worn out his equipment and has no funds with which to
replace it. The amount charged for depreciation should not be
considered as a profit.
Maintenance Repair The cost of maintenance and repairs will vary considerably with the
type of equipment, the service to which it is assigned, and the care
which it receives. If a bearing is greased and adjusted at frequent
intervals, its life will be much longer than if it is neglected.

The annual cost of maintenance and repairs may be expressed as a percent of the annual
cost of depreciation, or it may be expressed independently of depreciation. In any event, it
should be sufficient to cover the cost of keeping the equipment operating.

Investment Costs It costs money to own equipment

interest on the money invested, which are assessed against the equipment, insurance, and storage.

Even though the owner pays cash for the equipment, he should charge interest on the
investment, as the money spent for the equipment could be invested in some other asset
which would return interest to the owner.

Original cost of equipment, $25,000

Est. useful life, 5 yr
Average annual cost of depreciation, $25,000+ 5 = $5,000
 Operating Costs
Construction equipment which is driven by internal- combustion engines requires fuel and
lubricating oil, which should be considered as an operating cost.

While the amounts consumed and the unit cost of each will vary
with the type of equipment, the conditions under which it is
used, and location, it is possible to estimate the cost reasonably
accurately for a given project.
The person who is responsible for selecting the equipment
should estimate the conditions under which the equipment will
operate.

There are at least two conditions which will apply to most projects
the extent to which the engine will operate at full power all the time
the actual time that the unit will operate in an hour or a day.
While the power unit in a piece of equipment may be capable of developing a given horsepower when operating at
maximum output, it is well known that maximum output usually will not be required at all times.
Fuel Consumed

As the quantity of fuel consumed in an hour by an internal-combustion engine depends on the

average power supplied, it is necessary to estimate the average power that will be required of
the engine. This may be expressed as a percent of the maximum power.
For most construction equipment the actual average power will vary from 50 to 90 percent of
the maximum power.
Another factor which will affect the amount of fuel consumed in an hour is the length of time
that the equipment will actually operate in an hour. On most projects there will be delays and
interruptions which prevent the equipment from operating continuously. The extent of the
delays will vary with the project. The failure of a wire rope on a power shovel may delay the
shovel and trucks for an hour or more. Operators must stop for relief periodically, to get a drink
of water, or to check the equipment. The actual time that equipment is operated may vary from
45 to 55 min per hr, or in some instances it may be less.