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CONSTRUCTION EQUIPMENT MANAGEMENT

This revised and updated edition of Construction Equipment Management fills a gap on this subject by
integrating both conceptual and hands-on quantitative knowledge on construction equipment into a
process that facilitates student learning.
The first six chapters summarize interdisciplinary concepts that are necessary to ground students’
learning on construction equipment management, including both engineering and economics. Each of
the next 16 chapters covers a different type of construction equipment and associated methods of use.
The final chapter introduces the more advanced concept of operational analysis. This allows the book
to be used on numerous courses at different levels to prepare graduates to apply skills on construction
equipment when planning for a new project, estimating its costs, and monitoring field operations.
Organized around the major categories of construction equipment, including both commercial and
heavy civil examples, case studies, and exercises, this textbook will help students develop independence
in applying concepts to hands-on scenarios. A companion website provides an instructor manual, solu-
tions, additional examples, lecture slides, figures, and diagrams.

John E. Schaufelberger is the Dean of the College of Built Environments at the University of
Washington, USA. He is the co-author of Management of Construction Projects, published by Routledge.

Giovanni C. Migliaccio is an Associate Professor in Construction Management at the University


of Washington, USA. He is also the Executive Director for the University of Washington Center for
Education and Research in Construction, holds a P.D. Koon Endowed Professorship and an affiliate fel-
lowship with the University of Washington Runstad Center for Real Estate Studies. He is the co-author
of Introduction to Construction Project Engineering, also published by Routledge.
CONSTRUCTION EQUIPMENT
MANAGEMENT
Second Edition

John E. Schaufelberger and Giovanni C. Migliaccio


Second edition published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
and by Routledge
52 Vanderbilt Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
 2019 John E. Schaufelberger and Giovanni C. Migliaccio
The right of John E. Schaufelberger and Giovanni C. Migliaccio to
be identified as authors of this work has been asserted by them in
accordance with sections 77 and 78 of the Copyright, Designs and
Patents Act 1988.
All rights reserved. No part of this book may be reprinted or
reproduced or utilised in any form or by any electronic, mechanical,
or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or
retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks
or registered trademarks, and are used only for identification and
explanation without intent to infringe.
First edition published by Prentice Hall 1998
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Schaufelberger, John, 1942- author. | Migliaccio, Giovanni C.
(Giovanni Ciro), 1968- author.
Title: Construction equipment management / John Schaufelberger
and Giovanni C. Migliaccio.
Description: Second edition. | Abingdon, Oxon : Routledge, 2019.
| Includes bibliographical references and index.
Identifiers: LCCN 2018051854| ISBN 9780815360827 (hardback)
| ISBN 9780815360834 (pbk.) | ISBN 9781351117463
(ebook)
Subjects: LCSH: Construction equipment—Management. |
Engineering—Equipment and supplies—Management. |
Construction industry--Management.
Classification: LCC TA213 .S34 2019 | DDC 690.028/4—dc23
LC record available at https://lccn.loc.gov/2018051854

ISBN: 978-0-8153-6082-7 (hbk)


ISBN: 978-0-8153-6083-4 (pbk)
ISBN: 978-1-351-11746-3 (ebk)

Typeset in Bembo
by Swales & Willis Ltd, Exeter, Devon, UK

Visit the companion website: www.routledge.com/cw/schaufelberger


CONTENTS

List of Illustrations xi
Preface xviii

1 Introduction 1
Importance of Construction Equipment 1
Construction Equipment Management 1
Equipment Selection Factors 2
Construction Equipment Utilization 3
Organization of This Book 4

2 Time Value of Money 5


Introduction 5
Equivalence Concept 5
Single Payments 6
Uniform Series of Payments 8
Cash Flow Diagrams 10
Alternative Analysis 12
Rate of Return Analysis 15
Problems 19

3 Depreciation Accounting Techniques 21


Introduction 21
Straight-Line Method 21
Sum-of-the-Years Method 22
Declining-Balance Method 24
Comparison and Uses 26
Problems 26

4 Ownership and Operating Costs 29


Introduction 29
Ownership Costs 29
vi Contents

Operating Costs 32
Use of Manufacturers’ Data 38
Cost Accounting 38
Unit Cost Determination 43
Problems 47
References 50

5 Fundamentals of Soils 51
Introduction 51
Soil Properties 51
Swell and Shrinkage 57
Optimum Moisture Content and Compaction 61
Soil Stabilization 64
Problems 66

6 Fundamentals of Earthmoving 69
Introduction 69
Rolling Resistance 69
Grade Resistance 71
Total Resistance 72
Drawbar Pull 74
Rimpull 74
Effects of Altitude 77
Traction 78
Equipment Performance 79
Problems 83
References 85

7 Dozers 86
Introduction 86
Types and Uses of Dozers 87
Dozer Attachments 88
Production Estimation 89
Technology Innovation 94
Cost and Time Analysis 96
Problems 97

8 Loaders 99
Introduction 99
Types and Uses of Loaders 101
Loader Buckets 102
Contents vii

Other Loader Attachments 102


Production Estimation 103
Cost and Time Analysis 109
Problems 110
References 111

9 Scrapers 112
Introduction 112
Types and Uses of Scrapers 113
Push-Loading Scrapers 118
Production Estimation 120
Cost and Time Analysis 132
Problems 134
References 136

10 Excavators, Draglines, and Clamshells 137


Introduction 137
Hydraulic Front Shovel Excavators 137
Hydraulic Backhoe Excavators 141
Other Excavator Attachments 146
Draglines 146
Clamshells 152
Cost and Time Analysis 156
Problems 158
References 160

11 Trenchers 161
Introduction 161
Open-Cut Trench Excavation 161
Types and Uses of Trenchers 163
Production Estimation 165
Cost and Time Analysis 166
Problems 169
References 170

12 Trucks and Haulers 171


Introduction 171
Types and Uses of Trucks and Haulers 171
Production Estimation 172
Balancing Loading and Hauling Productivity 187
viii Contents

Cost and Time Analysis 188


Problems 190
References 193

13 Graders 194
Introduction 194
Operation and Uses of Graders 194
Production Estimation 196
Technology Innovation 200
Cost and Time Analysis 200
Problems 202

14 Soil Stabilizers 204


Introduction 204
Types and Uses of Soil Stabilizing Equipment 204
Production Estimation 206
Cost and Time Analysis 208
Problems 209

15 Soil Compactors 211


Introduction 211
Types and Uses of Compactors 212
Production Estimation 218
Cost and Time Analysis 219
Problems 221

16 Lifting and Loading Equipment 223


Introduction 223
Forklifts 223
Telescopic Material Handlers 225
Boom Trucks 226
Mobile Elevating Work Platforms 228
Problems 228

17 Cranes 231
Introduction 231
Crane Safety 231
Hydraulic Cranes 233
Lattice-Boom Cranes 235
Tower Cranes 241
Gantry Cranes 244
Contents ix

Launching Gantry Cranes 246


Problems 246
Reference 249

18 Shaft Drilling and Pile Driving 250


Introduction 250
Drilled Shaft Construction 250
Drilling Equipment 252
Pile Construction 252
Pile-Driving Equipment 254
Production Estimation 257
Cost and Time Analysis 259
Problems 262

19 Trenchless Equipment 264


Introduction 264
Horizontal Directional Drilling 264
Microtunneling 268
Pipe Bursting and Sliplining 271
Problems 271
Reference 272

20 Concrete Equipment 273


Introduction 273
Concrete Production 273
Structural Concrete 274
Concrete Handling Equipment 276
Concrete Pavements 280
Concrete Paving Equipment 281
Production Estimation 284
Cost and Time Analysis 286
Problems 288

21 Pumping Equipment 291


Introduction 291
Types of Pumps 291
Pump Selection 294
Effect of Altitude 306
Well-Point Systems 308
Cost Analysis 308
Problems 310
Reference 312
x Contents

22 Asphalt Equipment 313


Introduction 313
Asphalt Pavements 313
Asphalt Construction Techniques 314
Types of Asphalt Equipment 315
Production Estimation 320
Cost and Time Analysis 324
Problems 326

23 Operation Analysis 329


Introduction 329
Task Identification 329
Equipment Identification 330
Equipment Selection 331
Cost Analysis 337
Problems 339

Glossary 342
Appendices:
A – Dimensional Analysis 346
B – Conversion Factors 350
C – Interest Tables 351
Index 367
ILLUSTRATIONS

Figures
1.1 Economic Haul Distance for Mobile Construction Equipment 4
2.1 Cash Flow Diagram 11
2.2 Cash Flow Diagram 13
2.3 Cash Flow Diagram 14
2.4 Cash Flow Diagram 14
2.5 Cash Flow Diagram 16
2.6 Cash Flow Diagram 18
3.1 Depreciation Curves for Three Methods of Depreciation Accounting 27
4.1 Change in Ownership and Operating Costs with Time 30
4.2 Cash Flow Diagram 32
4.3 Cash Flow Diagram 36
4.4 Ownership and Operating Cost Estimating Form 39
4.5 Steps in Developing a Direct Cost Estimate for a Work Package 44
4.6 Equipment Project Cost Components 46
5.1 Primary Soil Components 52
5.2 Soil Gradation Curves 53
5.3 Sieve Analysis 54
5.4 Determination of Soil Plasticity 54
5.5 Unified Soil Classification System Plasticity Chart 55
5.6 Soil Volume Change During Excavation and Compaction 59
5.7 Proctor Test 61
5.8 Nuclear Testing of Soil Density 62
5.9 Variation of Dry Density with Moisture Content 63
6.1 Rolling Resistance 70
6.2 Grade Resistance and Rimpull 72
6.3 Performance Chart for Tracked Dozer 75
6.4 Performance Chart for Wheeled Scraper 76
7.1 Tracked Dozer 86
7.2 Wheeled Dozer 87
7.3 Performance Chart for Tracked Dozer 88
7.4 Performance Chart for Wheeled Dozer 89
xii Illustrations

7.5 Various Blades for Tracked Dozers 90


7.6 Dozer-Mounted Hydraulically Operated Ripper 91
7.7 Configuration of Dozer Blade Load for Different Soil Types 91
7.8 Dozer Blade Load Measurements 92
7.9 Tracked Dozer with GPS Grade Control Equipment 95
8.1 Tracked Loader 99
8.2 Articulated Wheeled Loader Loading Dump Truck 100
8.3 Rubber Tracked Loader 100
8.4 Struck and Heaped Bucket Capacity 101
8.5 General Purpose Loader Bucket 102
8.6 Multipurpose Loader Bucket 103
8.7 Loader with Auger Attachment 104
8.8 Loader with Fork Attachment 105
9.1 Single-Engine Scraper 112
9.2 Twin-Engine Scraper 113
9.3 Push-Loading Scrapers 114
9.4 Push-Pull Connection 115
9.5 Push-Pull Scrapers Loading 115
9.6 Elevating Scraper 116
9.7 Scraper Elevator 117
9.8 Auger Scraper 118
9.9 Methods of Push-Loading Scrapers 119
9.10 Performance Chart for Elevating Scraper 124
9.11 Performance Chart for Single-Engine Scraper 129
10.1 Front Shovel Excavating an Embankment 138
10.2 Hydraulic Backhoe Excavator 141
10.3 Utility Construction with a Backhoe 142
10.4 Wheeled Loader with Backhoe Attachment 143
10.5 Excavator with Plate Compactor 146
10.6 Excavator with Hydraulic Hammer 147
10.7 Dragline Mounted on Track-Mounted Crane 148
10.8 Clamshell Dredging Granular Material 153
10.9 Marine Crane Being Pulled by Tugboat 154
11.1 Trench Protection Systems 162
11.2 Trench Excavation in Urban Area 163
11.3 Wheel Trencher 164
11.4 Chain Trencher 165
12.1 On-Highway Dump Truck with Trailer 172
12.2 Off-Highway Rigid-Frame Dump Truck 173
12.3 Off-Highway Articulated Dump Truck 174
12.4 End-Dump Hauler 174
12.5 Bottom-Dump Hauler 175
12.6 Side-Dump Hauler 175
Illustrations xiii

12.7 Performance Chart for Off-Highway Articulated Dump Truck 177


12.8 Retarder Performance Chart for Off-Highway Articulated Dump Truck 178
13.1 Grader with Ripper Shaping a Bank 194
13.2 Grader with Tilted Front Wheels 195
13.3 Area Grading Using the (a) Back-and-Forth and (b) Looping Methods 196
13.4 Grader with GPS Control 200
14.1 Rotary Mixer 205
14.2 Operation of Rotary Mixer 205
14.3 Soil Stabilization with Asphalt 206
15.1 Water Truck 212
15.2 Pneumatic-Tire Compactor 213
15.3 Smooth Steel-Drum Compactor 214
15.4 Tamping-Foot Compactor 215
15.5 Vibratory Smooth-Drum Compactor 215
15.6 Vibratory Tamping-Foot Compactor 216
15.7 Walk-Behind Tamping-Foot Compactor 216
15.8 Vibratory Ram Compactor 217
15.9 Vibratory Plate Compactor 218
16.1 Forklift Transporting Construction Material 224
16.2 Telescopic Material Handler 225
16.3 Rated Lift Capacity for Caterpillar TH103 Telescopic Material Handler 226
16.4 Boom Truck 227
16.5 Scissor Lift Supporting a Worker 229
16.6 Multiple Telescopic Booms Supporting Workers 230
17.1 Chain Sling for Lifting Load 232
17.2 Crane Lift Plan 234
17.3 Single-Engine Hydraulic Crane 235
17.4 Two-Engine Hydraulic Cranes Setting Bridge Girders 236
17.5 Fully Extended Outriggers on Truck-Mounted Hydraulic Crane 237
17.6 Two Crawler-Mounted Lattice Boom Cranes Working in Tandem 238
17.7 Truck-Mounted Lattice Boom Crane 239
17.8 Horizontal Jib Tower Crane 241
17.9 Self-Erecting Tower Crane 242
17.10 Luffing Jib Tower Crane 243
17.11 Articulated Jib Tower Crane 244
17.12 Gantry Crane 246
17.13 Launching Gantry Crane 247
17.14 Setting Precast Bridge Segments with a Launching Gantry Crane 247
18.1 Secant Pile Construction 251
18.2 Completed Secant Pile Wall 251
18.3 Shaft Drilling for Drilled Pier 253
18.4 Typical Setup for Pile Testing 254
18.5 Driving Concrete Pile with Diesel Hammer 255
xiv Illustrations

18.6 Driving Circular Steel Piling 256


18.7 Close-Up of Diesel Hammer 258
18.8 Driving Steel Piling with Vibratory Hammer 259
19.1 HDD Main Components 265
19.2 HDD System Assisted by Guidance System 266
19.3 MTBM Main Components 270
20.1 Concrete Slump Test 275
20.2 Rear-Discharge Concrete Mixer Truck 276
20.3 Placing Concrete with Concrete Bucket 277
20.4 Concrete Pump Placing Large Slab 278
20.5 Placing Concrete with Powered Concrete Buggy 279
20.6 Vibrating Concrete 280
20.7 Walk-Behind Power Trowel 281
20.8 Riding Power Trowel 282
20.9 Concrete Laser Screed 283
20.10 Typical Concrete Pavement Structure 283
20.11 Concrete Highway Construction with Slip-Form Paver 284
20.12 Concrete Curb Construction with Slip-Form Paver 285
21.1 Typical Centrifugal Pump Impeller 292
21.2 Typical Centrifugal Pump 293
21.3 Typical Diaphragm Pump 293
21.4 Typical Submersible Pump 295
21.5 Submersible Pump Performance Curve 306
21.6 Typical Well-Point System 308
22.1 Typical Asphalt Pavement Structure 313
22.2 Typical Batch-Type Asphalt Plant 315
22.3 Typical Drum-Mix Asphalt Plant 316
22.4 Asphalt Paver 316
22.5 Material Flow in an Asphalt Paver 317
22.6 Asphalt Distributor 317
22.7 Spreading Aggregate with a Self-Propelled Aggregate Spreader 318
22.8 Pneumatic-Tire Compactor Compacting Asphalt 319
22.9 Finish Rolling with Steel-Drum Compactor 319
22.10 Removing Asphalt Pavement with Milling Machine 320
A.1 Soil-Specific State Conversions 349

Tables
3.1 Book Values for Example 3.1 23
3.2 Book Values for Example 3.2 24
3.3 Book Values for Example 3.3(a) 25
3.4 Book Values for Example 3.3(b) 26
4.1 Types of Ownership and Operating Costs 29
Illustrations xv

4.2 Estimated Useful Life of Construction Equipment in Total Operating Hours 30


4.3 Equipment Repair Factors Based on a 10,000-Hour Useful Life 33
4.4 Estimated Average Tire Life in Hours of Use 34
4.5 Equipment Fuel Factors in Gallons per Horsepower-Hour 34
4.6 Equipment Service Cost Factors 35
4.7 Summary Results for Example 4.3 42
4.8 Operating Factors for Earthmoving Operations 45
4.9 Unit Price Estimation for Embankment in Place Work Package 48
4.10 Contractor Historical Cost Records for Problem 4.4 49
4.11 Contractor Historical Cost Records for Problem 4.5 50
5.1 Visual Methods for Identifying Silts and Clays 53
5.2 Unified Soil Classification and Symbol Chart 56
5.3 Representative Material Properties 58
6.1 Representative Rolling Resistances for Various Types of Operating Surfaces 71
6.2 Typical Coefficients of Traction 79
6.3 Data for Example 6.3 80
6.4 Weight Distribution for Problem 6.2 83
6.5 Manufacturer’s Data for Problem 6.3 84
6.6 Manufacturer’s Data for Problem 6.7 84
6.7 Weight Distribution for Problem 6.8 84
8.1 Representative Bucket Volumes and Weights 103
8.2 Loader Bucket Fill Factors 106
9.1 Fixed Times for Scrapers 122
9.2 Speed Factors for Scrapers 122
9.3 Scraper Information for Example 9.2 123
9.4 Variable Time Computation for Example 9.2 126
9.5 Scraper Information for Example 9.3 128
9.6 Variable Time Computation for Example 9.3 131
9.7 Cost Data for Example 9.4 132
10.1 Front Shovel Bucket Fill Factors 139
10.2 Shovel Productivity Correction Factor for Depth of Cut and Angle of Swing 140
10.3 Operating Factors for Excavating Operations 140
10.4 Rated Lifting Capacity for a Hydraulic Backhoe Excavator (in pounds) 143
10.5 Backhoe Bucket Fill Factors 144
10.6 Average Cycle Times for Hydraulic Backhoes 144
10.7 Rated Dragline Lifting Capacity 148
10.8 Representative Dragline Bucket Sizes and Weights 149
10.9 Ideal Dragline Cycle Time in Seconds 150
10.10 Optimal Depth of Cut for Various Size Dragline Buckets 150
10.11 Dragline Productivity Correction Factor for Depth of Cut and Angle of Swing 151
10.12 Representative Clamshell Bucket Sizes and Weights 154
10.13 Rated Clamshell Lifting Capacity 155
10.14 Clamshell Productivity Correction Factor for Angle of Swing 155
xvi Illustrations

11.1 Hydraulic Backhoe Excavators vs. Trenchers 162


11.2 Approximate Trencher Production Rates 165
12.1 Fixed Times for Trucks and Haulers 176
12.2 Speed Factors for Trucks and Haulers 179
12.3 Weight Distribution 180
12.4 Variable Time Computation 183
12.5 Weight Distribution 184
12.6 Hourly Cost Data 188
12.7 Weight Distribution 190
15.1 Most Efficient Compactor for Different Types of Material 214
16.1 Rated Lift Capacity for Typical Forklift 224
16.2 Rated Lift Capacity for a Typical Boom Truck 228
17.1 Rated Lift Capacity for Hydraulic Crane 237
17.2 Rated Lifting Capacity for Crawler Crane with Lattice Boom 240
17.3 Rated Lifting Capacity for Horizontal Jib Tower Crane 245
17.4 Rated Lifting Capacity for Luffing Jib Tower Crane 245
17.5 Crane Lifting Capacity for 36-foot Boom 248
17.6 Crane Lifting Capacity for 48-foot Boom 248
18.1 Comparison of Pile Hammers 257
18.2 Typical Number of Piles Driven per Hour 259
18.3 Hourly Rental or Ownership and Operating Costs for Powered Pile Driving
Hammers 260
18.4 Estimated Hourly Costs 261
18.5 Estimated Hourly Costs 262
18.6 Estimated Hourly Costs 263
19.1 Comparison of Horizontal Drilling (HDD) Systems 265
20.1 Typical Concrete Admixtures 274
21.1 Pump Selection Table 294
21.2 Equivalent Length of Straight Pipe for Various Fittings and Valves 296
21.3 Equivalent Friction Head in Feet per 100 Feet of Pipe 296
21.4 Equivalent Friction Head in Feet per 100 Feet of Smooth Bore Hose 297
21.5 Determining Equivalent Length of Pipe 298
21.6 Performance Standards for M-Rated Centrifugal Pumps 299
21.7 Performance Standards for MT-Rated Centrifugal Pumps 302
21.8 Performance Standards for MTC-Rated Centrifugal Pumps 304
21.9 Equivalent Suction Lifts for Various Elevations 307
21.10 Correction Factors for Estimating Pump Performance at Various Elevations 307
21.11 Dewatering Cost Data 309
21.12 Labor and Material Costs 311
22.1 Equipment Cost Data 325
22.2 Equipment Cost Data 328
23.1 Equipment Selection 331
23.2 Weight Distribution for Example 23.1 332
Illustrations xvii

23.3 Variable Time Computation for Example 23.1 335


23.4 Hourly Cost Data for Example 23.2 337
23.5 Weight Distribution for Problem 1 339
23.6 Weight Distribution and Other Equipment Data for Problem 2 340
23.7 Hourly Cost Data for Problem 2 341
PREFACE

Knowledge of construction equipment, its use, productivity and cost estimation, and operation analysis
are critical skills for construction professionals. When the scope of the first edition of this book was
developed 20 years ago, the intent was to provide readers with this knowledge in an easy-to-read format
using numerous examples to illustrate major concepts. It was written to be used as a text in undergradu-
ate civil engineering, construction, or construction management courses. It also is suitable as a reference
for professional construction managers. This second edition contains updated cost information as well as
new and revised content to reflect current developments in the use of construction equipment. Major
additions include new chapters on trenchers and trenchless equipment.
The book starts with a description of techniques for estimating equipment ownership and operating
costs as well as fundamentals of soils and earthmoving. Next, specific types of equipment are discussed
and applications for their use are described. Then techniques for estimating equipment productivity
and unit costs are presented. The book concludes with a discussion of operation analysis in which the
type and number of pieces of equipment are selected to complete specific construction project tasks.
Also included are a glossary and appendices with dimensional analysis examples, common conversion
factors, and tables of interest factors.
The book was developed on the premise that readers have a basic understanding of the construction
process, but limited knowledge of construction equipment. Coverage includes all major types of equip-
ment typically used on commercial and highway construction projects. The operational capabilities of
each equipment type are described and illustrated with numerous figures. Equipment selection consid-
erations are presented, and techniques for estimating equipment productivity and costs are discussed.
Concise explanations of concepts are followed with detailed example problems to illustrate major teach-
ing points. Sample manufacturers’ technical data are provided to illustrate its use. Realistic problems
are included at the end of each chapter to reinforce the concepts discussed. A companion website is
available to instructors, which includes slide decks and an instructor’s manual containing solutions to
all problems.
This book could not have been written without the help of many people. We wish to express our
deep appreciation to the many equipment manufacturers who graciously permitted publication of the
photographs and technical data contained in the book.

John E. Schaufelberger
Giovanni C. Migliaccio
1
INTRODUCTION

Importance of Construction Equipment


Construction equipment plays an important role in most construction projects. Whether it be to
prepare the site, erect a building or bridge, or construct an airport runway, use of construction
equipment is essential in completing construction projects. Commercial or residential contractors
typically rely on renting or leasing equipment as needed, or they may choose to subcontract the work.
However, because of repeated use of many major pieces of equipment, heavy civil construction con-
tractors often find it more cost-effective to own their own equipment and treat their equipment fleet
as a profit center for their companies. A contractor’s approach toward equipment is easily identifiable
by reviewing their balance sheet, where equipment usually represents a large portion of the assets for
heavy civil contractors and earthmoving specialty contractors. On the other hand, equipment owner-
ship is modest among building contractors and homebuilders.
Decisions regarding the types and quantity of equipment to use on a project will greatly impact
the project cost and duration. Consequently, the construction manager needs to select the equipment
combination that yields the lowest production cost while achieving the desired productivity to enable
meeting the contractual completion date. Thus, it is important for construction managers to understand
the types of equipment used in construction, how they are used, safety considerations with their use,
and how to estimate production costs.

Construction Equipment Management


Equipment is a critical resource in the execution of most construction projects. As the equipment fleet
may represent the largest long-term capital investment in many construction companies, equipment
management decisions have significant impacts on the economic viability of these construction firms.
Equipment must pay for itself by earning more for the contractor than it costs to purchase, own, and use
it. Idle equipment is a drain on income – operating costs are incurred only when the equipment is used,
but ownership costs are incurred irrespective of frequency of use. Contractors must continually evaluate
their equipment fleets to determine when to acquire additional items, when to replace items, and when
to dispose of items that are underutilized.
One of the key decisions in planning and executing a construction project is the selection of equip-
ment to use on the project. The type of equipment chosen will determine how the work will be done,
the time required to complete the work, and the cost of construction. Therefore, it is important that
construction managers understand what type of construction equipment is most appropriate for each
2 Introduction

construction task and how to estimate equipment productivity and costs. Success in construction is
greatly influenced by the selection of equipment for the tasks to be performed.
The capabilities of construction equipment are described in manufacturers’ literature and can be
used to estimate equipment productivity. The costs to be considered are the cost of owning, leasing,
or renting the equipment and the costs of operating, maintaining, and repairing it. The effectiveness
of a contractor’s preventive maintenance program will significantly influence equipment operating and
repair costs.

Equipment Selection Factors


Most construction operations can be performed by more than one type of equipment. The equip-
ment selected should complete the work in accordance with the project plans and specifications, in the
required time frame, and at the least overall cost. The following factors should be considered in selecting
equipment for a project:

• Cost-effectiveness. This means not only selecting the appropriate type of equipment for the task, but
also selecting an appropriately sized machine.This involves comparison of the increased produc-
tion rates of larger machines with their increased ownership and operating costs. Where possible,
contractors should select the size of equipment that minimizes the unit cost (e.g., dollars per cubic
yard) of performing the construction task.The soil conditions of the job site may dictate the type
of equipment that should be selected. Tracked equipment usually is selected when the job site is
soft or wet, because they exert less ground pressure and generally have better traction than wheeled
equipment under such conditions. Construction site access or working area restrictions may limit
the types and sizes of equipment that can be used on a construction site. The necessity to traverse
highways will limit the use of off-highway equipment.
• Versatility. To control total project costs and minimize equipment transportation costs, equipment
should be selected that can perform multiple tasks on a given project site. Using a dozer to excavate
for a foundation, backfill the completed foundation, and carry out rough grading around the newly
constructed building is usually more efficient than using a different type of equipment for each task.
The project must be analyzed in its entirety to select the most cost-effective set of construction
equipment to be used on the project.

The basic criteria that should be used in selecting equipment for specific tasks are:

• The capability of the equipment to perform the work


• The capability of the equipment to perform effectively under the working conditions of the job site
• The availability of the equipment, either from the contractor’s equipment fleet or from a rental or
leasing agency
• The reliability of the equipment and predicted maintenance requirements
• The availability of parts and service support for the equipment
• The capability of the equipment to perform multiple tasks on the project
• Safety features available with the equipment

Selection involves the type and size of equipment, and its manufacturer. If the contractor owns a
fleet of equipment, the choice might be limited to equipment that is available at the time needed. If the
Introduction 3

equipment is to be rented or leased, there may be a wider selection from which to choose. Generally,
contractors select the set of equipment for a project that minimizes the unit cost (e.g., dollars per cubic
yard) of performing the required work. Mobilization and demobilization costs also must be considered,
and a set of multifunctional equipment might represent the best choice to minimize mobilization and
demobilization costs.

Construction Equipment Utilization


Each piece of construction equipment is specifically designed by the manufacturer to perform specific
mechanical operations. The job of the construction manager is to match the right piece of equipment
or combination of equipment to the individual tasks to be performed in completing the project. One
of the critical steps to determine the cost effectiveness of an equipment item is productivity estimation.
Leading to equipment selection, this step is necessary to ensure that both cost and schedule implications
are considered. Equipment production is work performed and is typically measured in volume, area, or
linear length of work performed in a unit of time, such as an hour.
Although each major type of equipment has different operational characteristics, it is not always
obvious which type of equipment is best suited to a particular project task. After studying the contract
plans and specification, a soils report, and the project site, the construction manager must visualize how
to employ specific pieces of equipment to accomplish the work. A quantity take-off is needed to deter-
mine the quantity of work to be performed, and an initial plan should be developed to prepare a list of
equipment that will be needed for the project. Sometimes, multiple options need to be considered, and
unit cost data developed for more than one option. Site conditions may limit the number of options
that can be considered. For example, if excavated materials are to be transported off site over a highway,
trucks will be needed because scrapers are not allowed to operate on highways.
Earthmoving tasks typically involve some combination of excavating, loading, hauling, spreading,
compacting, and grading. Excavating can be performed with a dozer, a loader, an excavator, a front
shovel, a clamshell, a dragline, or a scraper. The best choice depends on the work requirements of
the project. The dozer can dig and push the excavated material out of the way. The scraper can load
itself and haul the material away. Trucks can be loaded and used to haul the excavated material to
a dump site. Loading is done with a loader, a shovel front, a clamshell, a dragline, or an excavator.
Hauling is done either with trucks, haulers, or scrapers. Spreading usually is done by a scraper, dozer,
or grader. Compacting is done with one of the many types of compactors manufactured. Grading is
done with a grader.
The conditions of the project site and the haul distances often dictate the type of equipment to use.
Because of its greater traction, tracked equipment is used where the site is wet. Equipment selection is
based on an analysis of the haul distance, underfoot conditions, grades, material type, production rate,
and operator skill. Distance is used as the basis for initial equipment selection. The economic haul dis-
tances (one way) for different types of mobile construction equipment are shown in Figure 1.1. The
cross-hatched portions of the bars represent the most economical haul distances for the indicated sys-
tems. This figure can be used for initial selection of the appropriate type of hauling equipment.
Once the type of equipment has been selected, the contractor must select the size to use. The alter-
natives may be limited by the contractor’s equipment fleet or what is available from a rental or leasing
agency. Larger equipment generally has higher productivity than smaller models, but it also costs more
to own or rent and operate. The labor costs generally are similar irrespective of the size of equipment
selected, but the rental and other operating costs will increase with larger models. The contractor should
4 Introduction

FIGURE 1.1 Economic Haul Distance for Mobile Construction Equipment


(Courtesy of Caterpillar Inc.)

attempt to select the size of equipment that will perform the required tasks at the least cost. This involves
determining a unit cost for each activity, considering the equipment productivity and the hourly
ownership or rental, operating, and labor costs.

Organization of This Book


The purpose of this book is to provide the student with (1) an understanding of the basic issues involved
in construction equipment management and (2) an ability to estimate equipment productivity and cost.
Concepts are discussed at the beginning of each chapter, followed by example problems illustrating
the concepts introduced. A set of problems is provided at the end of most chapters to give students an
opportunity to apply the concepts discussed.
Chapters 1 to 6 provide introductory concepts. Chapters 2, 3, and 4 are devoted to learning tech-
niques for estimating equipment ownership and operating costs. Chapter 5 discusses relevant soil
properties, and Chapter 6 introduces students to the fundamentals of earthmoving. Chapters 7 to 22
are devoted to learning the capabilities of specific types of equipment and methods for estimating pro-
ductivity and cost data. Chapter 23 concludes by addressing operation analysis. Dimensional analysis
is discussed in Appendix A, common conversion factors are in Appendix B, and interest tables are in
Appendix C. A glossary of terms and an index are also included.
2
TIME VALUE OF MONEY

Introduction
The value of a sum of money will change over time. Its value will increase because of interest earned
if invested or deposited in a bank, while its value will decrease because of interest that must be paid to a
lending institution, such as a bank, for borrowing the money. For example, $1,000 invested in a savings
account at an interest rate of 5% will have a value of $1,050 after one year. However, if you borrow
$1,000 from a bank for one year at a 5% interest rate, you must repay the loan at the end of the year at
a cost of $1,050. The other factor that influences the value of money is the rate of inflation, which is a
result of national monetary policy. We will ignore the rate of inflation in our discussion in this book,
but it can be considered when selecting an interest rate to use for economic analysis. In our analysis, we
will assume a zero rate of inflation and a constant interest rate over the period of analysis.
Because of the cost of money, interest must be considered by contractors when making decisions
regarding their equipment. This requires a cash flow analysis which recognizes that money has a dif-
ferent economic value depending on when it is received or paid. Contractors continually analyze their
equipment fleets to ensure that none of their equipment is losing money for them. Major company
decisions include purchasing, leasing, depreciating, repairing, and replacing equipment. These manage-
ment decisions are based on economic analysis of each alternative course of action. The time value of
money must be considered in order to make the best decisions.

Equivalence Concept
The concept of equivalence means that payments differing in magnitude but made at different time
periods may be equivalent to one another. The interest factors described in the following two sec-
tions can be used to determine the equivalent value of money at a time period different from the one
in which the money is paid or received. This involves consideration of time and the interest rate. For
example, a contractor might be interested in purchasing a truck in five years and wants to determine
how much he or she should invest today to have sufficient funds at the end of the five-year period.
Another example might be a contractor who is considering whether to purchase or to lease a crane.
Each alternative has differing costs that are incurred at different times. To compare both alternatives,
the contractor decides to determine an equivalent cost for each alternative based on its present worth,
which means determining an equivalent cost at today’s value.
To be meaningful, any economic comparison must be based on equivalent costs at the same point in time. In
other words, comparing a future cost of one alternative with the present worth cost of a second alterna-
tive is not valid and therefore not meaningful.
6 Time Value of Money

Single Payments
Single payments may occur either today or at some time in the future. P is used to indicate a sum paid
or received today, that is, a present sum of money; and F is used to indicate a future sum. To determine
the future value of $10 invested at 6% for one year, we would need to apply the following formula:

$10 × (1 + 0.06 ) = $10.60

which can be written symbolically as:

F = P × (1 + i )

where:
i is the interest rate
F is the future worth value
P is the present sum of money

For n periods, the formula would be:

n
F = P × (1 + i ) (2.1)

The term (1 + i)n is called the single payment compound amount factor (F/P) which is used to determine
the future (F) worth value of a present (P) sum of money.
The reciprocal or 1/(1 + i)n is called the single payment present worth factor (P/F) which is used to
determine the present (P) worth of a future (F) sum of money:

1
P =F× (2.2)
(1 + i )n
In solving economic analysis problems, you can use either a calculator and the formulas for each
factor or a shorthand notation and the interest tables in Appendix C. In this text, we will set up the
example problems both ways, but use the shorthand notation for problem solution.
The shorthand notation for the single payment compound amount factor is written as (F/P, i, n)
which means find a future sum, given a present value, at i interest, for n time periods. The interest rate
identifies which page in Appendix C to look at for the value, for instance 2% interest rate; F/P identi-
fies which column on that page, and n indicates which row in the column to find the numerical value
for the factor.

Example 2.1: How to Use Appendix C


To determine the single payment compound amount factor (F/P) for ten years at an interest rate of 5%,
we would need to:
Time Value of Money 7

•• Look on the 5% interest rate page in Appendix C


•• Read down the column under the heading n until you come to 10
•• Read across to the column under the heading F/P
•• Read the factor value as 1.629

This means that $1,000 invested today at an effective interest rate of 5% will be worth ($1,000)
(1.629) or $1,629 at the end of ten years.
A similar shorthand notation for the single payment present worth factor would be (P/F, i, n). This
is used to find the present worth of a given future sum, received or paid at the end of n periods, at an
effective interest rate of i. Using the same 5% example discussed above, to find the present worth com-
pound amount factor (P/F) for a sum to be paid at the end of 15 years, we would need to:

•• Look on the 5% interest page in Appendix C


•• Read down the column under the heading n until you come to 15
•• Read across to the column under the heading P/F
•• Read the factor value as 0.481.

This means that the present worth value of $1,000 to be paid at the end of 15 years at an interest rate
of 5% is ($1,000)(0.481) or $481.

Example 2.2: Contractor Investment Plan


A contractor plans to purchase a pickup truck in five years. How much should the contractor invest at
6% interest today to have the $60,000 needed to purchase the truck at the end of the five years?

Solution
In this problem, the purchase price is a known future value, and the unknown is the present worth
amount. Mathematically, this can be written as:

F $60, 000
P= =
(i + i ) (1 + 0.06 )
n 5

Using our shorthand notation, it is written as:

P =F P ( F ) (
, i,n = ( $60,000 ) P ,6%,5
F )
Note that the unknown is always the numerator in the shorthand notation (P/F), and the known is the denomi-
nator. Looking on the page in Appendix C that contains the factors for an interest rate of 6%, the factor
value is determined to be 0.747. Solving the equation yields the following answer:

P = ( $60,000 )( 0.747 ) = $44,820


8 Time Value of Money

Example 2.3: Contractor Ownership Budget


A contractor is considering the purchase of a new pump that will be used to remove storm runoff from
open excavations. The pump will cost $15,000 and have an expected life of ten years. After ten years of
use, the contractor estimates the pump salvage value will be $4,000. What is the contractor’s total cost
(on a present worth basis) of owning the pump, if the effective interest rate is 8%?

Solution
In this problem, the purchase price is a known present worth cost and the salvage value is a future
receipt. To determine the present worth of the total cost, we subtract the present worth of the salvage
value from the initial cost. Mathematically, this is written as:

$4,000
P = $15,000 −
(i + 0.08 )
10

Using our shorthand notation, it is written as:

(
P = $15,000 − ( $4,000 ) P ,8%,10
F )
Inserting the factor value from the page in Appendix C that contains the factors for an interest rate
of 8% yields the following:

P = $15,000 − ( $4,000 )( 0.463 ) = $15,000 − $1,852 = $13,148

Uniform Series of Payments


In some situations, it is desirable to determine the single payment – present or future worth – of a
uniform series of payments or receipts. In other situations, it is necessary to determine a series of equal
payments or receipts. To accomplish these analyses, we will introduce A, which is defined as a series of
equal payments or receipts that occur at the end of each period for n periods. It is important that you learn
this definition and understand that A is not used for payments or receipts made or received at the beginning of each
time period. This is known as the year-end convention.
The uniform series compound amount factor (F/A) is used to determine the future worth of a series of
equal payments or receipts. Mathematically, this can be written as:

(1+ i )n − 1
(2.3)
F =  
A i

whereas its shorthand notation is:

( F A , i, n )
Time Value of Money 9

The uniform series present worth factor (P/A) is used to determine the present worth of a series of equal
payments or receipts. Mathematically, this can be written as:

(1 + i )n − 1
P =  
(2.4)
A i (1 + i ) 
n

 

whereas its shorthand notation is:

( P A , i, n )
The uniform series sinking fund factor (A/F) is used to determine a series of equal payments or receipts
that is equivalent to a stated or required future sum. Mathematically, this can be written as:

A i
=
F (1 + i )n − 1 (2.5)
 
whereas its shorthand notation is:

( A F , i, n )
The uniform series capital recovery factor (A/P) is used to determine a series of equal payments or receipts
that is equivalent to a given present worth sum. Mathematically, this can be written as:

i (1 + i )n 
A =  
(2.6)
P 
(1 + i ) − 1
n

whereas its shorthand notation is:

( A P , i, n )
Example 2.4: Contractor Saving Plan
A contractor is investing $20,000 per year in savings certificates at an interest rate of 6% and plans to
continue the investment program for six years. He is doing this so he will have a down payment for
some new construction equipment. What will the value of the contractor’s investment be at the end
of six years?

Solution
In this problem, the annual investment is an annual uniform series, and the unknown is the future
worth. Mathematically, we can use Equation 2.3 as follows:
10 Time Value of Money

 6 
A × (1+ i ) − 1 ( $20,000 ) × (1+ 0.06 ) − 1
n

F=   =  
i 0.06

Using our shorthand notation, it is written as:

(
F = ( $20,000 ) F
A
,6%,6 )
Inserting the factor value from the page in Appendix C that contains factors for an interest rate of
6% yields the following:

F = ( $20,000 )( 6.975 ) = $139,500

Example 2.5: Contractor’s Annual Cost of Ownership


A contractor purchased a new truck for $125,000 and plans to use the truck for six years. After six years
of use, the estimated salvage value for the truck will be $30,000. What is the contractor’s annual cost
(annual uniform series) for the truck at an interest rate of 10%?

Solution
In this problem, the purchase price is given as a present value and the salvage value as a future value. The
unknown is a series of equal annual payments. Mathematically, we can use Equations 2.5 and 2.6 as follows:

0.1(1 + 0.1)6 
0.1
A = ( $125,000 )   − $30,000
( )
(1 + 0.1) − 1
6
(1 + 0.1)6 − 1
   

Using our shorthand notation, this is written as:

( ) (
A = ( $125,000 ) A ,10%,6 − ( $30,000 ) A ,10%,6
P F )
Inserting the factor values from the page in Appendix C that contains factors for an interest rate of
10% yields the following:

A = ( $125,000 )( 0.230 ) − ( $30,000 )( 0.130 ) = $28,750 − $3,900 = $24,8500

Cash Flow Diagrams


Cash flow diagrams are used to analyze economic alternatives. Although they are not always necessary in
simple problems, these diagrams allow you to better visualize each of the individual sums and uniform
series involved in the alternative.
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690

Sulphuric acid and magnesium sulphate, use,

690

691

Lead tremors,

429

683

Leptomeningitis, cerebral,

716

spinal,

749
Lesions in the nervous system, localization of,

65

Lethargy,

344

384

in cerebral anæmia,

782

783

lucid,

385
Levinstein's method of treating the opium habit,

672

Ligation of the sac of spina bifida,

762

Lipomatous tumors of the brain,

1049

Lithæmic insomnia,

379

Liver, changes in, and disorders of, in chronic alcoholism,

603

607
Local convulsive disorders,

461

Localization of functions of spinal cord, table showing,

77

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ERVOUS

YSTEM

65
Cranio-cerebral topography,

93-98

in base of brain,

91

in cerebellum,

90

in encephalic mass,

81-93

in medulla oblongata,

79

80

in peripheral nervous system,

65-69
in spinal cord,

69-79

Localization of abscess of the brain,

795

800

of cerebral hemorrhage and embolism,

969

of thrombosis of cerebral veins and sinuses,

988

of tumors of the brain,

1056

of the spine,
1100

Lock-spasm of writers' cramp,

517

Locomotion, influence of special paralyses of, in infantile spinal


paralysis,

1150

Locomotor ataxia,

826

hysterical,

240

Lordosis in atrophic infantile paralysis,

1131
Lumbo-abdominal neuralgia,

1235

Lungs, disorders of, in chronic alcoholism,

608

in the opium habit,

658

Lupulin, use of, in the opium habit,

676

M.
Magnesium sulphate, use of, in chronic lead-poisoning,

691

Main en griffe in chronic spinal pachymeningitis,

749

Malaria as a cause of cerebral anæmia,

790

influence of, on the causation of chorea,

444

Malarial epilepsy,

472

neuralgias,

1212
Male sex, prevalence of hysteria in,

215

Malnutrition of brain in infants,

778

Malt liquors, characters of intoxication from,

591

Mammillary neuralgia,

1235

Mania,

161
chronic,

163

following epilepsy,

482

in alcoholism,

631

Maniacal excitement in general paralysis of the insane,

192

form of acute alcoholism,

592

of general paralysis of the insane,

188
Marriage, influence on recovery from epilepsy,

498

question of, in the insane temperament,

115

141

Massage, use of, in hemiplegia,

978

in hysteria,

280

in infantile spinal paralysis,

1157

in lead palsy,
691

in melancholia,

160

in neuralgia,

1223

in neurasthenia,

360

361

in progressive unilateral facial atrophy,

702

in symmetrical gangrene,

1261

in vaso-motor neuroses,
1255

in writers' cramp,

536

Mastoid cells, inflammation of, as a cause of thrombosis of cerebral


veins and sinuses,

983

Masturbation, influence on causation of cerebral anæmia,

778

of epilepsy,

474

of insanity,

119

in the insane, treatment of,


137

of hysteria, treatment of,

276

Mechanical appliances, use of, in infantile spinal paralysis,

1159

in writers' cramp,

540

restraint in treatment of the insane,

135

136

Medulla oblongata, degeneration of, in labio-glosso-laryngeal


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1172
localization of lesions in,

79

Medullary centres of the vaso-motor system,

1250

Megalopsia in nervous diseases,

40

Melancholia,

155

agitata,

158

cerebral nutrition in,


775

in alcoholism,

631

in children,

158

in general paralysis of the insane,

188

Membranes, spinal, congestion of,

746

Memory, loss of, significance of, in nervous diseases,

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Ménière's disease,

422

Meningeal cerebral hemorrhage,

710

Diagnosis,

714

Etiology,

711

Pathological anatomy,

713

Prognosis,

715

Symptoms,
712

Synonyms,

710

Treatment,

715

Meningeal spinal hemorrhage,

754

Meningitis, acute,

716

and chronic, following thermic fever,

399

spinal,
749

chronic spinal,

752

ENINGITIS

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723

Definition, synonyms, and history,

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