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L7 BQS652 Plants & Equipment MAY 2023
L7 BQS652 Plants & Equipment MAY 2023
PLANT MANAGEMENT
DEPARTMENT OF QUANTITY SURVEYING
UNIVERSITI TEKNOLOGI MARA
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POSSIBLE QUESTIONS
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Earthmoving
◼a process of digging, loading, hauling &
dumping any material that is needed for
construction or is in the way of construction.
◼ The primary process operations are soil or
rock excavation, backfill & embankment
construction.
◼ Itmay also include the transportation of
materials, stabilization of embankments &
control of groundwater.
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There are many different types of excavation, each representing its own
challenges such as;
i. Highway / roadway excavations
ii. Several types of bulk excavations
iii. Limited-area vertical excavation
iv. trenching
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A self-propelled machine capable of
digging, loading, hauling, dumping, &
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Scraper
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Scrapers
Consist of a scraper bowl which
is lowered to cut & collect soil
where site stripping &
levelling operations are
required involving large
volume of earth.
When the scraper bowl is full the
apron at the cutting edge is
closed to retain the earth & the
bowl is raised for travelling to
the disposal area.
On arrival the bowl is lowered,
the apron opened & the spoil
pushed out by the tailgate as
the machine moves forwards.
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1. Roadway excavation
◼ a leveling process used in highway construction &
airfield grading.
◼ Ideally, it involves the movement of material from
high ground to low areas.
◼ This is called a balanced job because the soil needed
for fill areas is obtained from cut areas and there is no
need to haul material in from outside the project.
◼ Material moved from borrow area to fill low spot for
embankment construction may also be included.
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Roadway excavation
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4. Channel excavation
excavation of loose,
unconsolidated
materials, of material
lying under water (such
as drainage channel), or
of saturated soils that
prevent the equipment
from travelling over the
excavated area.
usually performed by
equipment standing on
solid ground at the
same level or higher
than the material being
worked.
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Concreting Plant
The production of concrete structure involves 3 main stages, namely
mixing, distribution and placing of the concrete.
Method of selection
i. Topography of the site – boundaries, restrictions, noise, contours of
land, soil conditions
ii. The total volume of concrete required
iii. The maximum amount of concrete required at any point one time
iv. Availability of plant
v. Time of year in which concreting is to be carried out
vi. Amount of space available for setting up plant
vii. Quality of concrete required, i.e. specification, varying mixes
viii. Cost of producing concrete by various methods
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ii. Partially-mixed; during transit the drum revolves very slowly and
the materials are completely remixed on arrival at site
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i. Hydraulic dredgers
a. Suction dredger
b. Cutter suction dredger
c. Trailing suction hopper
dredger
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Bucket dredging
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= say, 5 days
Haulage vehicle required;
= 1 + round trip time of vehicle / loading time of vehicle
If round trip time = 30 minutes and loading time =10min
Therefore, the number of haulage vehicles required
= 1 + 30/10 = 4
This gives a vehicle waiting overlap ensuring excavator is fully utilised which is
economically desirable.
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◼ Most firms will purchase small plants but this reflect its lower-valued
items.
Technical reasons
• The contractor needs to decide what types of plant to
be required, its size (bigger or similar plant), output
capacity, etc.
Economic reasons
HIRE
OWN
• Hire purchase
• Straight purchase OWN & HIRE
• Leasing
PLANT
ACQUISITION
OPTIONS
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Plant Costing
Items of plant can be bought or hired or where there are a number of
similar items a combination of buying and hiring could be
considered. The choice will be governed by economic factors
and the possibility of using the plant on future sites thus
enabling the costs to be apportioned over several contracts.
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If the company decided to own and operate the plant, it has 2 types of services to offer.
Either:
ADVANTAGES
✓ The contractor has full control over the plant. The plant will be available at all
time and he can use it whenever he requires the plant. On the other hand, plant
may not be available for hire in good time.
✓ Prestige involve to demonstrating the use of own plant. This is considered
important for firm’s reputation in business
DISADVANTAGES
✓ Unless the firm can see sufficient usage for the plant and unless the future net
revenue estimates are adequate, it is not advisable to make a commitment to
purchase. Plant may be under utilization in recession time and it may not be easy
to sell.
✓ The contractor will have to meet the costs of servicing and maintenance, but such
costs remain small in comparison to on-going hiring charges.
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ADVANTAGES DISADVANTAGES
2. Hire Purchase
➢ The acquiring company pays a regular hire charge to the financier, finance company or bank,
and the ownership of the plant will be transferred to him after the settlement of the purchase
amount.
➢ The hire charge normally made in monthly and the agreement normally requires the deposit
payment.
➢ The cash flow consideration is less demanding than the whole purchase. However, the
interest rate is normally high, around 10% p.a. and this makes the outright purchase cheaper
alternative.
3. Lease
➢ The lessee enjoys exclusive use of the plant item for the whole period of the lease and in
return, makes a commitment to pay the agreed lease charges for this period
➢ The ownership of the plant, however, remains the property of the lessor (leasing company).
➢ The lessee normally does not have to pay for the deposit but have to pay for 2 and 3 months
payment in advance, but that depends on the terms and agreements between the two parties.
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ADVANTAGES DISADVANTAGES
1.Finance lease
➢ The leasing is arranged through leasing company who has no particular interest in plant.
➢ The leasing company offers no technical support and merely arrange the lease i.e. providing
finance for the lease
➢ The plant will be provided by the third party, i.e. supplier, manufacturer etc.
➢ The contract will specify the leasing charge to be paid as well as the lease period.
➢ The responsibility for insurance, maintenance, service, repair, etc, to protect the lessor’s plant during
primary period, is normally borne by the lessee.
2.Operating lease
➢ The leasing of plant is arranged direct with the manufacturer or the supplier.
➢ This can be a way of marketing their products i.e. a promotion technique.
➢ The leasing charge may be quite different from that of finance lease. The charge may be cheaper
because the lessor may have a different interest in the plant. For examples, the lessor may have use
for the plant itself or that he may have a well-developed second hand leasing market where lots of
plant are readily available or as a method of introducing new plant, etc.
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1. Primary Period
➢ The duration of the primary period is dependent on the useful life of the plant which may
range between 2 to 5 years depending on the type of the plant.
➢ The lessor will try to recoup all the cost within the primary period.
➢ Therefore, the payment to be charged by the lessor will include:
❖ Capital cost and interest charges – cost of purchasing the plant
❖ Overhead of lessor – cost of managing the plant
❖ Profit margin – the amount should be reasonable to reflect the market condition
2. Secondary Period
➢ During this period, the leasing charge is relatively small and normally subject to negotiation
since the lessor has already recovered all his costs including profit during the primary
period.
➢ The lessor may even sell the plant to the lessee at nominal price.
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ADVANTAGES DISADVANTAGES
❖ CONCLUSION
◼ No simple guidelines exist with regard to the best methods of acquiring
plant. The optimum decision depends upon:
✓ the financial position of the individual company
✓ general levels of interest rates
✓ the specific levels of plant rental
✓ Leasing charges
✓ External factors such as → changes in corporate taxation and level of
inflation
Construction plant can be expected to breakdown during its working life due to:
➢ Normal wear and tear
➢ Sudden failure of a component
Objectives of maintenance
◼ To reduce the incidence of failure by replacement, repair and servicing in order
to achieve an economical level of utilization during the working life of the
machine
◼ A reduction of plant down-time minimizes:-
i. Costly stoppages on site
ii. Disruptive effect on labour and program of works
Maintenance options
MAINTENANCE
Planned Unplanned
Replacement
Maintenance Maintenance
On site
Preventive Corrective Maintenance
breakdown
Maintenance Maintenance in workshop
maintenance
On site On site
Maintenance Maintenance
running breakdown
in workshop in workshop
maintenance maintenance
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❖ Planned Maintenance
➢ This is a controlled, regular and disciplined maintenance procedure where maintenance
works are organized and carried out with forethought, control and record
ADVANTAGES DISADVANTAGES
Improve utilization level of plant i.e. the This is an expensive option. There,
plant could be operated efficiently maximum advantage is where the effects
of breakdown would be extremely
damaging
Maintenance periods can be coordinated
with site production requirements and
therefore, no disruption to work
programmes.
❖ Unplanned Maintenance
➢ Maintenance work in only necessitated by unforeseen breakdown or damage. This method is
normally adopted:
✓ When the costs of regular maintenance become too expensive and are likely to exceed
the cost of complete replacement of the plant item, or
✓ Not economically justifiable to carry out maintenance until the machine either breaks
down or the operating efficiency becomes unacceptable.
➢ This maintenance option is appropriate only for plant which are not essential to the
production process and whose failure:
✓ Do not cause considerable disruption to the work program
✓ Do not constitute a safety hazard to the workers
➢ This option is rarely appropriate for construction plant with the exception for small tools, etc.
➢ In practice however, many firms adopt this policy for major plant items and with disastrous
consequences for production efficiency.
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❖ Replacement
✓ Most plant items have a life exceeding a point when a major overhaul is required i.e. exceeding
its economic life.
✓ The strategy required to keep the plant in working order demands the implementation technical
and administrative procedures, which inevitably incur cost.
✓ For any organization, depending upon its maintenance efficiency, there is an optimum level of
maintenance provision i.e. at some level the cost of providing the maintenance service will
exceed the cost of plant down-time.
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COST OF MAINTENANCE
COST
OPTIMUM LEVEL OF
MAINTENACE
LEVEL OF MAINTENANCE
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DIRECT COST
✓ The maintenance budget is prepared based on the needs of the plant holding and any items to be
added during the life of the budget. Reference should be made to historical records of:
i. Breakdown maintenance labour costs
ii. Planned maintenance labour costs
iii. Material costs and fuel consumption
iv. Spares cost
v. Administrative, technical, equipment and other overhead costs
✓ The budget provides the basis for monitoring the trend in overall maintenance effectiveness.
INDIRECT COST
✓ When plant breaks down there is a loss of production while waiting for repair and during the repair
itself.
✓ For a plant hire firm, it may cause a reduction of the budgeted utilization period and a loss in
revenue, but for owner-contractor the idle time of the construction work force must also be
considered.
✓ It is also important to consider these costs when preparing an overall for owning and operating the
plant, including the cost of maintenance.
✓ Clearly, it is essential to decide upon realistic levels of utilization time over, say, a yearly budget.
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❖ Fa c t o r s a f f e c t i n g p l a n t m a i n t e n a n c e p o l i c y
✓ it involves large investment in the setting up of workshops, offices and stores, coupled with a
significant investment in tools and trained staff.
✓ The operational problems imposed by the nature of the construction work, for examples,
remoteness of sites, adverse conditions, etc., severely restrict the quality and amount of
maintenance provision which may be achieved.
✓ In a large national construction company, a centralized maintenance facility is often too
expensive to operate for servicing plant items spread over a wide location.
✓ The alternatives of establishing workshop facilities on individual sites may be justified on the
larger and/more expensive remote contracts, but is generally prohibitively expensive on the
typical small sites.
✓ Rationalization offers a suitable compromise, whereby individual maintenance facilities may
be set up on the large plant intensive sites with a mobile workshop operating from the
regional facility to serve the smaller sites.
❖ CONCLUSION
✓ Planned maintenance should be the backbone of the system in order to achieve basic
maintenance objective i.e. to reduce the incidence of failure.
✓ Practical difficulties arising from the dispersed nature of the work generally required a
combination of planned, unplanned and replacement maintenance policies.
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