محاضرات طرق انشاء2023-2024

Benefit-Cost Ratio Method
The benefit-cost ratio method is not as straightforward and unambiguous

as the net present value method but, if applied correctly, will produce the
same results as the net present value method. While this method is often
used in the evaluation of public projects, the results may be misleading if
proper care is not exercised in its application to mutually exclusive
proposals.
The benefit-cost ratio is defined as the ratio of the discounted benefits to

the discounted cost at the same point in time. It follows that the criterion
for accepting an independent project on the basis of the benefit-cost ratio
is whether or not the benefit-cost ratio is greater than or equal to one:
𝑃𝑃𝑃𝑃(𝐵𝐵)
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐵𝐵 − 𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =
𝐼𝐼 + 𝑃𝑃𝑃𝑃(𝑂𝑂&𝑀𝑀)
or
𝐴𝐴𝐴𝐴(𝐵𝐵)
𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 𝐵𝐵 − 𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =
𝐶𝐶𝐶𝐶 + 𝐴𝐴𝐴𝐴(𝑂𝑂&𝑀𝑀)
𝑃𝑃𝑃𝑃 (𝐵𝐵) − 𝑃𝑃𝑃𝑃(𝑂𝑂&𝑀𝑀)
𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 − 𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =
𝐼𝐼
or
𝐴𝐴𝐴𝐴 (𝐵𝐵) − 𝐴𝐴𝐴𝐴(𝑂𝑂&𝑀𝑀)
𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 − 𝐶𝐶 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅 =
𝐶𝐶𝐶𝐶
Example:
A city engineer is considering installing an irrigation system. He is trying
to decide which one of two alternatives to select. The two alternatives
have the following cash flow:
If interest is 12%, which alternative should the engineer select? Assume

no salvage value. Use incremental benefit/cost analysis.
Solution
Example:
With interest at 10 %, what is the benefit-cost ratio for this government
project?
Initial cost $2 00,000

Additional costs at end of years 1 & 2 $30,000
Benefits at end of years 1 & 2 $0
Annual benefits at end of years 3 – 10 $90,000
Solution
Example:
A van is bought for $15,000 in Year 0. It generates revenues of $25,000
per year and expenses of $20,000 per year in each of the Years 1 thru 5. Its
salvage value is zero after 5 years. Ignoring income taxes, compute the
benefit/cost ratio if i = 10%.
Solution
Example:
A tax-exempt municipality is considering the construction of an
impoundment for city water supplies. Two different sites have been
selected as technically, politically, socially, and financially feasible.
The city council has asked you to do a benefit-cost analysis of the
alternatives and recommend the best site. The city uses a 6% interest
rate in all analysis of this type.
Which should you recommend?
Solution
Example:
A city engineer is deciding which of two bids for a new computer to
accept. Using benefit-cost analysis, which alternative should be selected
if the interest rate is 10% per year?
Solution
Example:
Given four mutually exclusive alternatives, each with a useful life of 20
years and no salvage value have been presented to the city council of any
town in Iraq. Which alternative should be selected?
Solution
Example:
The local city recorder is deciding between two different phone
answering systems for her office.
The information concerning the two machines is presented below.
With an assumed interest rate of 12%, which system would you

recommend?
Solution
Example:
The city council of arson, Michigan is debating whether to buy a new fire
truck to increase protection for the city. The financial analyst has
prepared the following data:
Using the modified B/C ratio method determine whether the city should
buy a new truck, and which one to buy if it will be paid for with money
borrowed at an interest rate 7%.
Solution
Example:
The expansion of the hotel and conference center at Wicker Valley State
Park is under study. The initial investment and annual operating benefits
and cost are very different due to the differing magnitudes of the project
under consideration. These can be summarized as follows:
Using a minimum attractive rate of return (MARR) of 10%, which

alternative should be selected for a ten-year useful life analysis period?
Use benefit/cost ratio analysis.
Solution
Graphical Presentation of Earthwork
There are three basic of views presented

in the contract documents to demonstrate
earthwork construction features:
• Plan view
• Profile view
• Cross section view
Earthwork Analysis
• Take cross-sections (typically 50 feet)
• Plot natural ground level
• Plot proposed grade profile
• Indicate areas of cut and fill
• Calculate volume between cross-sections
Average End Area Method

Assumes volume between two consecutive cross sections is the average of their
areas multiplied by the distance between them
(𝑨𝑨𝟏𝟏 + 𝑨𝑨𝟐𝟐)
𝑽𝑽 = 𝑳𝑳 𝟐𝟐∗𝟐𝟐𝟐𝟐
V = volume (yd3)
A1 and A2 = end areas of cross-sections 1 & 2 (ft2)
L = distance between cross-sections (feet)
Shrinkage
• Material volume increases during excavation
• Decreases during compaction
• Varies with
 soil type
 fill height
 cut depth
Swell
• Excavated rock used in embankment occupies more space
• May amount to 30% or more
Example
Computing Volume ;Shrinkage = 10%, L = 100 ft
Station 1:
Cut Area = 6 ft2
Fill Area = 29 ft2
Cut Ground line
Fill
Shrinkage = 10%
Station 2:
Cut Area = 29 ft2
Fill Area = 5 ft2
(𝑨𝑨𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏 + 𝑨𝑨𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐) (𝟔𝟔 𝒇𝒇𝒇𝒇𝟐𝟐 + 𝟐𝟐𝟐𝟐 𝒇𝒇𝒇𝒇𝟐𝟐)

𝑽𝑽𝒄𝒄𝒄𝒄𝒄𝒄 = 𝑳𝑳 = 𝟏𝟏𝟏𝟏𝟏𝟏 𝒇𝒇𝒇𝒇 = 𝟔𝟔𝟔𝟔. 𝟖𝟖 𝒚𝒚𝒚𝒚𝟑𝟑 ∗
𝟓𝟓𝟓𝟓 𝟓𝟓𝟓𝟓
(𝑨𝑨𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏 + 𝑨𝑨𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐) (𝟐𝟐𝟐𝟐 𝒇𝒇𝒇𝒇𝟐𝟐 + 𝟓𝟓 𝒇𝒇𝒇𝒇𝟐𝟐)

𝑽𝑽𝒇𝒇𝒇𝒇𝒇𝒇𝒇𝒇 = 𝑳𝑳 = 𝟏𝟏𝟏𝟏𝟏𝟏 𝒇𝒇𝒇𝒇 = 𝟔𝟔𝟔𝟔. 𝟎𝟎 𝒚𝒚𝒚𝒚𝟑𝟑
𝟓𝟓𝟓𝟓 𝟓𝟓𝟓𝟓
Fill for shrinkage = 63.0 * 0.1 = 6.3 yd3

Total fill = 63.0 ft3 + 6.3 ft3 = 69.3 yd3
Total cut and fill between stations 1 and 2 = 69.3 yd3 fill – 64.8 yd3 cut = 4.5 yd3
borrow
*note: no allowance made for expansion
Mass Diagram
• Series of lines that shows net accumulation of cut or fill between any 2
stations
• Ordinate is the net accumulation of volume from an arbitrary starting point
• First station is the starting point
Example
Calculate Mass Diagram Assuming Shrinkage = 25%
Solution
2 2 3
Volumecut 1 = 100 ft (40 ft + 140 ft ) = 333.3 yd
cut
54
2 2 3
Volume fill 1 = 100 ft (20 ft + 0 ft ) = 37.0 yd
fill
54
Volume fill 1 = adjusted for shrinkage = 37.0 yd

3
* 1.25 = 46.3 yd
3 3 3
Total cut 1 = 333.3 yd - 46.3 yd = 287.0 yd
2 2
Volume cut 2 = 100 ft (140 ft + 160 ft ) = 555.6
3
yd cut
54
2 2 3
Volume fill 2 = 100 ft (20 ft + 25 ft ) = 83.3 yd
fill
54
Volume fill 2 = adjusted for shrinkage = 83.3 yd

3
* 1.25 = 104.2 yd
3 3
Total cut 1 to 2 = 555.6 yd – 104.2 yd = 451.4
3
yd
3 3
Total cut 2 = 451.4 yd + 287 = 738.4 yd
Cost of Owning and Operating Construction Equipment
2.1 INTRODUCTION
A thorough understanding of both estimated and actual costs of

operating and owning equipment drives profitable equipment
management. This chapter develops that understanding in detail and helps
the reader understand the calculations that go into determining the
fundamental costs for an equipment-intensive project.
Plant, equipment, and tools used in construction operations are priced in
the following three categories in the estimate:
1. Small tools and consumables: Hand tools up to a certain value together
with blades, drill bits, and other consumables used in the project are
priced as a percentage of the total labor price of the estimate.
2. Equipment usually shared by a number of work activities: These kinds
of equipment items are kept at the site over a period of time and used
in the work in progress.
3. Equipment used for specific tasks: These are capital items and used in
projects such as digging trench or hoisting material into specified slots.
This equipment is priced directly against the take-off quantities for the
Project it is to be used on. The equipment is not kept on-site for
extended periods like those in the previous classification, but the
equipment is shipped to the site, used for its particular task, and then
immediately shipped back to its original location. Excavation
equipment, cranes, hoisting equipment, highly specialized, and costly
items such as concrete saws fall into this category.
2.2 OWNERSHIP COST

Ownership costs are fixed costs. Almost all of these costs are annual in
nature and include:
1. Initial capital cost
2. Depreciation
3. Investment (or interest) cost
4. Insurance cost
5. Taxes
6. Storage cost
2.2.1 INITIAL COST

On an average, initial cost makes up about 25% of the total cost
invested during the equipment’s useful life. This cost is incurred for
incurred for getting equipment into the contractor’s yard, or construction
site, and having the equipment ready for operation. Many kinds of
ownership and operating costs are calculated using initial cost as a basis,
and normally this cost can be calculated accurately. Initial cost consists of
the following items:
1. Price at factory + extra equipment + sales tax
2. Cost of shipping
3. Cost of assembly and erection
2.2.2 DEPRECIATION
Depreciation represents the decline in market value of a piece of

equipment due to age, wear, deterioration, and obsolescence.
Depreciation can result from:
. Physical deterioration occurring from wear and tear of the machine
. Economic decline or obsolescence occurring over the passage of time
In the appraisal of depreciation, some factors are explicit while other
factors have to be estimated. Generally, the asset costs are known which
include:
1. Initial cost: The amount needed to acquire the equipment
2. Useful life: The number of years it is expected to be of utility value
3. Salvage value: The expected amount the asset will be sold at the end
of its useful life.
However, there is always some uncertainty about the exact length of the
useful life of the asset and about the precise amount of salvage value,
which will be realized when the asset is disposed. Any assessment of
depreciation, therefore, requires these values to be estimated.
Among many depreciation methods, the straight-line method, double-
declining balance method, and sum-of-years’-digits method are the most
commonly used in the construction equipment industry and will be
discussed below. At this point, it is important to state that the term
depreciation as used in this chapter is meant to represent the change in the
assets value from year to year and as a means of establishing an hourly
‘‘rental’’ rate for that asset.
It is not meant in the same exact sense as is used in the tax code. The term
‘‘rental rate’’ is the rate the equipment owner charges the clients for using
the equipment, i.e., the project users ‘‘rent’’ the equipment from its
owner.
In calculating depreciation, the initial cost should include the costs of
delivery and startup, including transportation, sales tax, and initial
assembly. The equipment life used in calculating depreciation should
correspond to the equipment’s expected economic or useful life.
2.2.2.1 Straight-Line Depreciation
Depreciation = (Cost - Residual value) / Useful life
Example
On April 1, 2011, Company A purchased an equipment at the cost of

$140,000. This equipment is estimated to have 5 year useful life. At the
end of the 5th year, the salvage value (residual value) will be
$20,000. Company A recognizes depreciation to the nearest whole
month. Calculate the depreciation expenses for 2011, 2012 and 2013
using straight line depreciation method.
Depreciation for 2011

= ($140,000 - $20,000) x 1/5 x 9/12 = $18,000

= ($140,000 - $20,000) x 1/5 x 12/12 = $24,000

= ($140,000 - $20,000) x 1/5 x 12/12 = $24,000
2.2.2.2 Sum-of-Years’-Digits Depreciation

Depreciation expense = (Cost - Salvage value) x Fraction
Fraction for the first year = n / (1+2+3+...+ n)
Fraction for the second year = (n-1) / (1+2+3+...+ n)
Fraction for the third year = (n-2) / (1+2+3+...+ n)
...
Fraction for the last year = 1 / (1+2+3+...+ n)
n represents the number of years for useful life.
Example
Company A purchased the following asset on January 1, 2011.
What is the amount of depreciation expense for the year ended
December 31, 2011?
Acquisition cost of the asset --> $100,000
Useful life of the asset --> 5 years
Residual value (or salvage value) at the end of useful life --> $10,000
Depreciation method --> sum-of-the-years'-digits method
Calculation of depreciation expense

Sum of the years' digits = 1+2+3+4+5 = 15
Depreciation for 2011 = ($100,000 - $10,000) x 5/15 = $30,000
Sum of the years' digits for n years

= 1 + 2 + 3 + ...... + (n-1) + n = (n+1) x (n / 2)
Sum of the years' digits for 500 years

= 1 + 2 + 3 + ...... + 499 + 500
= (500 + 1) x (500 / 2) = (501 x 500) / 2 = 125,250
2.2.2.3 Declining Balance Depreciation

Depreciation = Book value x Depreciation rate
Book value = Cost - Accumulated depreciation
Depreciation rate for double declining balance method

= Straight line depreciation rate x 200%
Depreciation rate for 150% declining balance method

= Straight line depreciation rate x 150%
Example
On April 1, 2011, Company A purchased an equipment at the cost
of $140,000. This equipment is estimated to have 5 year useful life. At
the end of the 5th year, the salvage value (residual value) will be
using double declining balance depreciation method.
Useful life = 5 years --> Straight line depreciation rate = 1/5 = 20%
per year
Depreciation rate for double declining balance method

= 20% x 200% = 20% x 2 = 40% per year

= $140,000 x 40% x 9/12 = $42,000

= ($140,000 - $42,000) x 40% x 12/12 = $39,200

= ($140,000 - $42,000 - $39,200) x 40% x 12/12 = $23,520
Double Declining Balance Depreciation Method
Book Value Book Value
Depreciation Depreciation
Year at the at the year-
Rate Expense
beginning end
2011 $140,000 40% $42,000 (*1) $98,000
2012 $98,000 40% $39,200 (*2) $58,800
2013 $58,800 40% $23,520 (*3) $35,280
2014 $35,280 40% $14,112 (*4) $21,168
2015 $21,168 40% $1,168 (*5) $20,000
(*1) $140,000 x 40% x 9/12 = $42,000

(*2) $98,000 x 40% x 12/12 = $39,200
(*3) $58,800 x 40% x 12/12 = $23,520
(*4) $35,280 x 40% x 12/12 = $14,112
(*5) $21,168 x 40% x 12/12 = $8,467
--> Depreciation for 2015 is $1,168 to keep book value same as

salvage value.
--> $21,168 - $20,000 = $1,168 (At this point, depreciation stops
Example
On April 1, 2011, Company A purchased an equipment at the cost of
$140,000. This equipment is estimated to have 5 year useful life. At the
end of the 5th year, the salvage value (residual value) will be
using 150% declining balance depreciation method.
Useful life = 5 years --> Straight line depreciation rate = 1/5 = 20%
per year
Depreciation rate for 150% declining balance method

= 20% x 150% = 20% x 1.5 = 30% per year

= $140,000 x 30% x 9/12 = $31,500

= ($140,000 - $31,500) x 30% x 12/12 = $32,550

= ($140,000 - $31,500 - $32,550) x 30% x 12/12 = $22,785
150% Declining Balance Depreciation Method
Book Value Book Value
Depreciation Depreciation
Year at the at the year-
Rate Expense
beginning end
2011 $140,000 30% $31,500 (*1) $108,500
2012 $108,500 30% $32,550 (*2) $75,950
2013 $75.950 30% $22,785 (*3) $53,165
2014 $53,165 30% $15,950 (*4) $37,216
2015 $37,216 30% $11,165 (*5) $26,051
2016 $26,051 30% $6,051 (*6) $20,000
(*1) $140,000 x 30% x 9/12 = $31,500

(*2) $108,500 x 30% x 12/12 = $32,550
(*3) $75,950 x 30% x 12/12 = $22,785
(*4) $53,165 x 30% x 12/12 = $15,950
(*5) $37,216 x 30% x 12/12 = $11,165
(*6) $26,051 x 30% x 12/12 = $7,815
--> Depreciation for 2016 is $6,051 to keep book value same as

salvage value.
--> $26,051 - $20,000 = $6,051 (At this point, depreciation stops.)
Depreciation Example 1
Cost $ 110,000
Salvage value $ 20,000
Useful life 5
Purchase date January 1, 2011
Straight line depreciation
Year Depreciation
2011 $ 18,000 =($110,000 - $20,000) x 1/5
2012 $ 18,000 =($110,000 - $20,000) x 1/5
2013 $ 18,000 =($110,000 - $20,000) x 1/5
2014 $ 18,000 =($110,000 - $20,000) x 1/5
2015 $ 18,000 =($110,000 - $20,000) x 1/5
Total $ 90,000
Double declining balance depreciation
Depreciation rate = 1/5 x 200% = 40%
Book value at
Depreciation Depreciation Accumulated Book value
Year the beginning
rate expense depreciation at year-end
of year
2011 $ 110,000 40% $ 44,000 $ 44,000 $ 66,000
2012 $ 66,000 40% $ 26,400 $ 70,400 $ 39,600
2013 $ 39,600 40% $ 15,840 $ 86,240 $ 23,760
2014 $ 23,760 40% $ 3,760 (*1) $ 90,000 $ 20,000
2015 $ 20,000 40% $ - $ 90,000 $ 20,000
Total $ 90,000
(*1) Depreciation stops when accumulated depreciation reaches

depreciation base.
Depreciation base = cost - salvage value = $110,000 - $20,000 = $90,000
150% declining balance depreciation

Depreciation rate = 1/5 x 150% = 30%
Book value
at the Depreciation Depreciation Accumulated Book value
Year
beginning rate expense depreciation at year-end
of year
2011 $ 110,000 30% $ 33,000 $ 33,000 $ 77,000
2012 $ 77,000 30% $ 23,100 $ 56,100 $ 53,900
2013 $ 53,900 30% $ 16,170 $ 72,270 $ 37,730
2014 $ 37,730 30% $ 11,319 $ 83,589 $ 26,411
2015 $ 26,411 30% $ 6,411 (*2) $ 90,000 $ 20,000
Total $ 90,000
(*2) Depreciation stops when accumulated depreciation reaches

depreciation base.
Depreciation base = cost - salvage value = $110,000 - $20,000 = $90,000
Sum-of-the-years'-digits depreciation
Sum of the years'
digits 15 =1+2+3+4+5
Years'
Year
digits Depreciation
2011 5 $ 30,000 =($110,000 - $20,000) x 5/15
2012 4 $ 24,000 =($110,000 - $20,000) x 4/15
2013 3 $ 18,000 =($110,000 - $20,000) x 3/15
2014 2 $ 12,000 =($110,000 - $20,000) x 2/15
2015 1 $ 6,000 =($110,000 - $20,000) x 1/15
Total 15 $ 90,000
2.2.3 INVESTMENT (OR INTEREST) COST
Investment (or interest) cost represents the annual cost (converted into
an hourly cost) of capital invested in a machine. If borrowed funds are
utilized for purchasing a piece of equipment, the equipment cost is simply
the interest charged on these funds. However, if the equipment is
purchased with company assets, an interest rate that is equal to the rate of
return on company investment should be charged. Therefore, investment
cost is computed as the product of interest rate multiplied by the value of
the equipment, which is then converted into cost per hour of operation.
The average annual cost of interest should be based on the average value
of the equipment during its useful life. The average value of equipment
may be determined from the following equation:
IC(n+1)
P= 2n
where IC is the total initial cost, P the average value, and n the useful life
(years).
This equation assumes that a unit of equipment will have no salvage
value at the end of its useful life. If a unit of equipment has salvage value
when it is disposed of, the average value during its life can be obtained
from the following equation:
where IC is the total initial cost, P the average value, S the salvage value,
and n the useful life (years).
Example
Consider a unit of equipment costing $50,000 with an estimated salvage
value of $15,000 after 5 years.
the average value is :

2.2.4 INSURANCE TAX AND STORAGE COSTS
Insurance cost represents the cost incurred due to fire, theft, accident,
and liability insurance for the equipment. Tax cost represents the cost of
property tax and licenses for the equipment.
Storage cost includes the cost of rent and maintenance for equipment
storage yards, the wages of guards and employees involved in moving
equipment in and out of storage, direct overhead.
The cost of insurance and tax for each item of equipment may be
known on an annual basis. In this case, this cost is simply divided by the
hours of operation during the year to yield the cost per hour for these
items. Storage costs are usually obtained on an annual basis for the
entire equipment fleet. Insurance and tax costs may also be known on a
fleet basis. It is then necessary to prorate these costs to each item. This is
usually done by converting the total annual cost into a percentage rate,
then dividing these costs by the total value of the equipment fleet. By
doing so, the rate for insurance, tax, and storage may simply be added
to the investment cost rate for calculating the total annual cost of
investment, insurance, tax, and storage .
The average rates for interest, insurance, tax, and storage found in the
literature are listed in Table 2.2 . These rates will vary according to
related factors such as the type of equipment and location of the job site.
OPERATING COST
Operating cost is the sum of those expenses an owner experiences by
working a machine on a project. Typical expenses include
1. Fuel.
2. Lubricants, lube oils, filters, and grease.
3. Repairs.
4. Tires.
5. Replacement of high-wear items.
Operator wages are sometimes included under operating costs, but
because of wage variance between jobs, the general practice is to keep
operator wages as a separate cost category. Such a procedure aids in
estimation of machine cost for bidding purposes as the differing project
wage rates can readily be added to the total machine O&O cost. In
applying operator cost, all benefits paid by the company must be
included—direct wages, fringe benefits, insurance, etc. This is another
reason wages are separated. Some benefits are on an hourly basis, some
on a percentage of income, some on a percentage of income to a
maximum amount, and some are paid as a fixed amount. The assumptions
about project work schedule will therefore affect wage expense.
FUEL
Fuel expense is best determined by measurement on the job. Good
service records tell the owner how many gallons of fuel a machine
consumes over what period of time and under what job conditions.
Hourly fuel consumption can then be calculated directly.
When company records are not available, manufacturer's consumption
data can be used to construct fuel use estimates. The amount of fuel
required to power a piece of equipment for a specific period of time
depends on the brake horsepower of the machine and the work
application. Therefore, most tables of hourly fuel consumption rates are
divided according to the machine type and the working conditions. To
calculate hourly fuel cost, a consumption rate is found in the tables (see
Table 3.2) and then multiplied by the unit price of fuel.
Fuel consumption formulas have been published for both gasoline and
diesel engines. The resulting values from such formulas must be adjusted
by time and load factors that account for working conditions. This is
because the formulas are derived assuming that the engine is operating at
maximum output. Working conditions that must be considered are the
percentage of an hour that the machine is actually working (time factor)
and at what percentage of rated horsepower (load factor). When
operating under standard conditions, a gasoline engine will consume
approximately 0.06 gal of fuel per flywheel horsepower hour (fwhp-
hr). A diesel engine will consume approximately 0.04 gal per fwhp-hr.
TABLE 3.21 Average fuel consumption—wheel loaders.
Type of utilization
Horsepower
Low (gal/hr) Medium (gal/hr) High (gal/hr)
(fwhp)
90 1.5 2.4 3.3
140 2.5 4.0 5.3
220 5.0 6.8 9.4
300 6.5 8.8 11.8
LUBRICANTS-LUBE OILS, FILTERS,

AND GREASE
The cost of lubricants, filters, and grease will depend on the
maintenance practices of the company and the conditions of the work
location. Some companies follow the machine manufacturer's guidance
concerning time periods between lubricant and filter changes. Other
companies have established their own preventive maintenance change
period guidelines. In either case, the hourly cost is arrived at by the
operating hours between changes and a small consumption factor.
Many manufacturers provide quick cost estimating tables or rules for
determining the cost of these items. Whether using manufacturer's data or
past experience, notice should be taken about whether the data matches
expected conditions. If the machine is to be operated under adverse
conditions, such as deep mud, water, or severe dust, the data values will
have to be adjusted.
REPAIRS
Repairs, as referred to here, mean normal maintenance type repairs.
These are the repair expenses incurred on the job site where the machine
is operated and would include the costs of parts and labor. Major repairs
and overhauls are accounted for as ownership cost.
Repair expenses increase with machine age. Instead of applying a
variable rate, an average is usually calculated by dividing the total
expected repair cost, for the planned service life of machine, by the
planned operating hours. Such a policy builds up a repair reserve during a
machine's early life. That reserve will then be used to cover I higher costs
experienced later. As with all costs, company records are the best source
of expense information. When such records are not available,
manufacturers' published guidelines can be used.
TIRES
Tires for wheel type equipment are a major operating cost because they
have a short life in relation to the "iron" of a machine. Tire cost will
include repair and replacement charges. These costs are very difficult to
estimate because of the variability in tire wear with project site conditions
and operator skill. Both tire and equipment manufacturers publish tire life
guidelines based on tire type and job application. Manufacturers'
suggested life periods can be used with local tire prices to obtain an
hourly tire cost. It must be remembered, however, that the guidelines are
based on good operating practices and do not account for abuses such as
overloading haul units.
REPLACEMENT OF HIGH-WEAR ITEMS
The cost of replacing those items that have very short service lives with
respect to machine service life can be a substantial operating cost. These
items will differ depending on the type of machine, but typical items
include cutting edges, ripper tips, bucket teeth, body liners, and cables.
By using either past experience or manufacturer life estimates the cost
can be calculated and converted to an past experience or manufacturer life
estimates the cost can be calculated and converted to an hourly basis.
All machine-operating costs should be calculated per working hour so that it is easy
to sum the applicable costs for a particular class of machines and obtain a total
operating hour cost.
COST FOR BIDDING
The process of selecting a particular type of machine for use in
constructing a project requires knowledge of the cost associated with
operating the machine in the field. In selecting the proper machine, a
contractor seeks to achieve unit production at a least cost. This cost for
bidding is the O&O we have discussed. It is usually expressed in dollars per
equipment operating hour.
OWNERSHIP EXPENSES
Depreciation is simply the prorating of a machine's consumption over its
useful life. Do not confuse the depreciation discussed here with tax
depreciation. Tax depreciation has nothing to do with consumption of the
asset; it is simply an artificial calculation for tax code purposes
Depreciation—Consumption of the Asset

Depreciation, as used in this section, relates to the calculations used to account
for purchase expense and salvage value on an hourly basis over the service life of
a machine. Because tires are a high-wear item that will be replaced many times
over a machine's service life, their cost will be excluded in these calculations.
Time value method. The depreciation portion of ownership cost can be calculated
by either of two methods: time value or average annual investment. The time
value method will recognize the timing of the cash flows, i.e., the purchase at
time zero and the salvage at a future date. The cost of the tires is deducted from
the total purchase price, which includes amounts for all options, shipping, and
taxes (total cash outflow — cost of tires). A judgment about the expected service
life and a corporate cost of capital rate are both necessary input parameters for the
analysis. These input parameters are entered into the uniform series capital
recovery factor formula, to determine the machine's purchase price equivalent
annual cost.
To account for the salvage cash inflow. The input parameters are the estimated
future salvage amount, the expected service life, and the corporate cost of capital
rate.
EXAMPLE 3-4
A company having a cost of capital rate of 8% purchases a $300,000 tractor. This
machine has an expected service life of 4 yr.s and will be utilized 2,500 hr per year.
The tires on this machine cost $45,000. The estimated salvage value at the end of 4
yrth is $50,000. Calculate the depreciation portion of the ownership cost for this
machine using the time value method.
Initial cost $300,000
Cost of tires -45,000
Purchase price less tires $255,000
Now it is necessary to calculate the uniform series required to replace a present value
of $255,000.
A = P X (A/P ,i % ,n)
A = $255,000 X 0.3019208 = $76,990 per year
Next calculate the uniform series sinking fund factor to use with the salvage value.
A = f X (A/f ,i %, n)
A = $50,000 x 0.02219208 = $11,096 per year
Therefore using the time value method the depreciation portion of the
ownership cost is
𝟕𝟕𝟕𝟕,𝟗𝟗𝟗𝟗𝟗𝟗/𝒚𝒚𝒚𝒚− 𝟏𝟏𝟏𝟏,𝟎𝟎𝟎𝟎𝟎𝟎 /𝐲𝐲𝐲𝐲

= $26.358/hr
𝟐𝟐,𝟓𝟓𝟓𝟓𝟓𝟓 𝒉𝒉𝒉𝒉/𝒚𝒚𝒚𝒚
Average annual investment method A second approach to calculating

the depreciation portion of ownership cost is the average annual
investment (AAI) method.
𝑷𝑷(𝒏𝒏+𝟏𝟏)+𝑺𝑺(𝒏𝒏−𝟏𝟏)
AAI=
𝟐𝟐𝟐𝟐
where
P = purchase price less the cost of the tires
S= the estimated salvage value
n =expected service life in years
The AAI is multiplied by the corporate cost of capital rate to determine
the ownership cost of money portion. The straight-line depreciation of the
cost of the machine less the salvage and less the cost of tires, if a wheeled
machine, is then added to the cost of money part to arrive at the
depreciation portion of ownership cost.
EXAMPLE 3-5
Using the same machine and company information as in Example 3.4,
calculate the depreciation portion of the ownership cost using the AAI
method.
$255,000(4+ 1) + $50.000(4 − 1)
AAI=
2𝑋𝑋4
=$178,125
$178,125/yr x8%
Interest cost part =
2,500 hr/yr
= $5.700/hr
Straight-line depreciation part
Initial cost $300,000

Cost of tires - 45,000
Salvage -50,000
‫ــــــــــــــــــــــــــــــــــ‬
$205,000
$205,000
= $20.500/hr
4𝑦𝑦𝑦𝑦 𝑥𝑥 2,500 hr/yr
Total depreciation portion of the ownership cost using the AAI method
$5.700/hr + $20.500 = $26.200/hr
For Examples 3.4 and 3.5, the difference in the calculated depreciation
portion of the ownership cost is $0.l58/hr ($26.358/hr - $26.200/hr). The
choice of which method to use is strictly a company preference.
Basically, either method is satisfactory, especially considering the impact
of the unknowns concerning service life, operating hours per year, and
expected future salvage. There is no single solution to calculating
ownership cost. The best approach is to perform several analyses using
different assumptions and to be guided by the range of solutions.
Taxes, Insurance, and Storage

To calculate the taxes, insurance, and storage costs, common practice
is to simply apply a percentage value to either the machine's book value
or its AAI amount. The expenses incurred for these items are usually
accumulated in a corporate overhead account. That value divided by the
value of the equipment fleet and multiplied by 100 will provide the
percentage rate to be used.
Taxes, insurance, and storage portion of ownership cost
equals rate (%) X BVn (or AAI)
EXAMPLE 3-6
Using the same machine and company information as in Examples 3.4
and 3.5, calculate the hourly owning expense associated with taxes,
insurance, and storage. Annually, the company pays as an average 1% in
property taxes on equipment, 2% for insurance, and allocates 0.75% for
storage expenses.
Total percentage rate for taxes, insurance, and storage = 1% + 2% +

0.75%
= 3.75%
From Example 3.5 the average annual investment for the machine is
$178,125/yr.
$178,125/yr x 3.75%
Taxes, insurance, and storage expense = = $2.672/hr
2,500 hr/yr
OPERATING EXPENSES
Figures based on actual company experience should be used to
develop operating expenses. Many companies, however, do not keep
good equipment operating and maintenance records; therefore, many
operating costs are estimated as a percentage of a machine's book value.
Even companies that keep records often accumulate expenses in an
overhead account and then prorate the total back to individual machines
using book value.
Fuel
The amount expended on fuel is a product of how a machine is used in
the field and the local cost of fuel. In past years, fuel could be purchased
on long-term contracts at a fixed price. Today fuel is usually offered with
a time of delivery price. A supplier will agree to supply the fuel needs of a
project, but the price will not be guaranteed for the duration of the work.
Therefore, when bidding a long-duration project, the contractor must
make an assessment of future fuel prices.
To calculate hourly fuel expense, a consumption rate is multiplied by the
unit price of fuel. Service records are important for estimating fuel
consumption.
EXAMPLE 3-7
A 220-fwhp wheel loader will be used at an asphalt plant to move
aggregate from a stock pile to the cold feed hoppers. This loader is diesel
powered. It is estimated that the work will be steady at an efficiency
equal to a 50-min hour. The engine will work at full throttle while loading
the bucket (30% of the time) and at three-quarter throttle to travel and
dump. Calculate the fuel consumption using the engine consumption
averages and compare the result to a medium rating in Table 3.2. If diesel
costs $1.07/gal, what is the expected fuel expense?
Fuel consumption diesel engine 0.04 gal per flywheel horsepower hour
(fwhp-hr).
Load factor: Loading bucket 1.00 x 0.30 = 0.30
Travel and dump 0.75 x 0.70 = 0.53
0.83
Time factor: 50-min hr = 0.83
Combined factor: 0.83 x 0.83 = 0.69
Fuel consumption = 0.69 x 0.04 gal/fwhp-hr x 220 fwhp = 6.1 gal/hr
Table 3.2: medium rating 200 fwhp loader = 6.8 gal/hr
There is considerable difference in the calculated results and those found
in Table 3.2, which is why it is recommended that a company establish
historical data.
Cost:
Using the formula 6.1 gal/hr x $1.07/gal = $6.527/hr
Table 3.2 6.8 gal/hr x $1.07/gal = $7.276/hr
Lubricants
The quantity of lubricants used by an engine will vary with the size of
the engine, the capacity of the crankcase, the condition of the piston
rings, and the number of hours between oil changes. For extremely dusty
conditions, it may be desirable to change oil every 50 hr, but this is an
unusual condition. It is common practice to change oil every 100 to 200
hr. The quantity of the oil consumed by an engine per change will include
the amount added during the change plus the makeup oil between
changes.
A formula that can be used to estimate the quantity of oil required is
Quantity consumed, gph (gallons per hour) =
ℎ𝑝𝑝∗𝑓𝑓∗ 0.006 𝑙𝑙𝑙𝑙/ℎ𝑝𝑝−ℎ𝑟𝑟 𝑐𝑐

+
7.4 𝑙𝑙𝑙𝑙/𝑔𝑔𝑔𝑔𝑔𝑔 𝑡𝑡
where
hp = rated horsepower of the engine
c = capacity of the crankcase in gallons
f = operating factor
t = number of hours between oil changes
This formula contains the assumption that the quantity of oil consumed
per rated horsepower hour between changes will be 0.006 lb.
EXAMPLE 3-8
Calculate the oil required, on a per hour basis, for the 220-fwhp wheel
loader in Example 3-7. The operating factor will be 0.69 as calculated in
that example. The crankcase capacity is 8 gal and the company has a
policy to change oil every 150 hr.
220 fwhp x 0.69 x 0.006 Ib /hp−150 8 𝑔𝑔𝑔𝑔𝑔𝑔
+ =0.18gal/hr
7.4 𝑙𝑙𝑙𝑙/𝑔𝑔𝑔𝑔𝑔𝑔 150 h𝑟𝑟
The cost of hydraulic oil filters, and grease will be added to the expense
of engine oil. The hourly cost of filters is simply the actual expense to
purchase the filters divided by the hours between changes, if a company
does not keep good machine-servicing data, it is difficult to accurately
estimate the cost of hydraulic oil and grease. The usual solution is to refer
to the manufacturers' published tables of average usage or expense.
Repairs
The cost of repairs is normally the largest single component of machine
cost (see Table 3.3). Some general guidelines published by the Power
Crane and Shovel Association (PCSA) in the past estimated repair and
maintenance expenses at 80 to 95% of depreciation for crawler-mounted
excavators, 80 to 85% for wheel-mounted excavators, 55% for crawler
cranes, and 50% for wheel-mounted cranes. The lower figures for cranes
reflect the work they perform and the intermittent nature of their use. The
data assumed that half of the cost was materials and parts and half was
labor, in the case of mechanical machines. For hydraulic machines, two-
thirds of the cost is for materials and parts, and one-third for labor.
Percentage of total cost (%)

Cost category
Repair 37
Depreciation 25
Operating 23
Overhead 15
Equipment manufacturers' supply tables of average repair costs based

on machine type and work application. Repair expenses will increase
with machine usage (age). The repair cost to establish a machine rate for
bidding should be an average rate.
Tires
Tire expenses include both tire repair and tire replacement. Tire
maintenance is commonly handled as a percentage of straight-line tire
depreciation. Tire hourly cost can be derived simply by dividing the cost
of a set of tires by their expected life, and this is how many companies
prorate this expense. A more sophisticated approach is to use a time-value
calculation, recognizing that tire replacement expenses are single-point-
in-time outlays that take place over the life of a wheel-type machine.
EXAMPLE 3-9
Calculate the hourly tire cost that should be part of machine operating
cost if a set of tires can be expected to last 5,000 hr. Tires cost $38,580
per set of four. Tire repair cost is estimated to average 16% of the
straight-line tire depreciation. The machine has a service life of 4 yr and
operates 2,500 hr per yr. The company's cost of capital rate is 8%.
Not considering the time value of money:
$38,580
Tire repair cost = * 16% = $1.235/hr
5,000 hr
$38,580
Tire use cost = = $7.716/hr
5,000 hr
Therefore, tire operating cost is $8.951/hr ($1.235/hr + $7.716/hr).
Considering the time value of money:
Tire repair cost is the same $1.235/hr.

Will have to purchase a second set at the end of 2 yr.
4 yr x 2.500 hr/yr
= 2 sets
5,000 hr per set of tires
First set: Calculate the uniform series required to replace a present
value of ,$38,580.
0.08(1 + 0.08)4
A = $38,580[ ]
0.08(1 + 0.08)4−1
$38,580 X 0.301921
= $4.659/hr
2,500 hr/yr
Second set: The second set will be purchased 2 yr in the future.
Therefore what amount at time zero is equivalent to $38,580 2 yr in the
future? Using the present worth compound amount factor, the equivalent
time zero amount is calculated.
$38,580
P= = $33,076
(1 + 0.08)2
Calculate the uniform series required to replace a present value of

$33,076.
0.08(1 + 0.08)4
A = $33,076 [ 0.08(1 + 0.08)4−1
]
$33,076 X 0.301921
= $3.995/hr
2,500 hr/yr
Therefore, considering the time value of money, tire operating cost is
$9.889/hr ($1.235/hr + $4.659/hr + $3.995/hr).
High-Wear Items
Because the cost of high-wear items is dependent on job conditions and
machine application, the cost of these items is usually accounted for
separate from general repairs.
EXAMPLE 3-10
A dozer equipped with a three-shank ripper will be used in a loading
and ripping application. Actual ripping will take place only about 20% of
total dozer operating time. A ripper shank consists of the shank itself, a
ripper tip, and a shank protector. The estimated life for the ripper tip is 30
hr. The estimated life of the ripper shank protector is three times tip life.
The local price for a tip is $40 and $60 for shank protectors. What hourly
high-wear item charge should be added to the operating cost of a dozer in
this application?
30 hr
Tips = =150 hr of dozer operating time
0.2
3 X $40
= $0.800/hr for tips
150 hr
Shank protectors: Three times tip life x 150 hr = 450 hours of
dozer operating time
3 X $60
= $0.400/hr shank protectors
450 hr
Therefore, the cost of high-wear items is $1.200/hr ($0.800/hr tips +
$0.400/hr shank protectors).
EX/1
A company purchases an equipment by 67,000$ it is estimated
that equipment useful life = 7 years
Salvage value will be 7000 $
Interest rate =12% , storage rate = 4%
Risk rate = 2% , insurance rate = 2% .
It is required:-
1. Annual owner ship cost
2. Depreciation amount
3. The book value of this equipment
Solution
1-
P=67000$ i=20%
F=7000$ n=7 years
Owne ship cost (A)= A1 - A2

A1=P(A/P,i,n) = 67000 × (A/p,0.2,n) = 18587.4 $/year
A2= F(A/F,i,n)= 7000 × (A/F,0.2,n)= 541.97 $/year
Owne ship cost = 18587.4 - 541.97 =18045.43 $/year
𝑃𝑃−𝐹𝐹 67000−7000
2- Depreciation amount = 𝑛𝑛 = 7
= 8571.4 $/𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦
3- Book value
year Value $
0 67000
1 58428.6
2 49857.1
3 41285.7
4 32714.3
5 24142.9
6 15571.4
7 7000
EX/2
Find equipment cost per hr. if P=127010 $ , no salvage value,
Useful life = 5 years , operating hrs. = 1400 hrs. /year.
Interest rate =9%, taxes & insurance = 6%, storage =5%,
Grease consumption = 0.25 kg/hr, grease cost = 2.5 $/kg,
Fuel consumption =14 liter/hr , fuel cost = 0.5 $/ liter ,
Lubrication consumption=0.5 liter/hr, lubrication cost=10$/liter,
Maintenance and repair =100% of straight line depreciation.
Solution
1- Owner ship cost :
A=A1-A2
A1= P(A/P,i,n)= 127010 ×(A/P,0.2,5)= 42469.57 $/year
42469.57
= = 30.335 $/ℎ𝑟𝑟
1400
A2= F(A/F,i,n)=0 ….. no salvage value

A = 30.335 $/ℎ𝑟𝑟
2- Operating cost :
Maintenance & repair = Dep. Amount using straight line method
𝑃𝑃−𝐹𝐹 127010−0
= = = 25402$/𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦
𝑛𝑛 5
25402
= = 18.144$𝑙𝑙ℎ𝑟𝑟
1400
Grease cost = 0.25 × 2.5 = 0.625 $/ℎ𝑟𝑟
Fuel cost = 14 × 0.5 = 7 $/ℎ𝑟𝑟
Lubrication cost = 0.5 × 10 = 5 $/ℎ𝑟𝑟
Total equipment cost = Owner ship cost+ Operating cost
= 30.335 + 18.144 + 0.625 + 7 + 5 = 61.1$/ℎ𝑟𝑟
EX/3
Contractor bought an equipment , after 2 years of purchasing he
ask about its value , he found that :
• Salvage value if sell now (after 2 years of purchasing)=45000 $
• Salvage value if sell after 1 year(after 3 years of purchasing)=20000 $
• Salvage value if sell after 2years (after 4 years of purchasing)=7000 $
• Salvage value if sell after 3years (after 5 years of purchasing)=2000 $
Useful life =5 years , i = 20%
Operating cost in 1st year = 24.06 $/hr
Operating cost in 2nd year = 32.12 $/hr
Required: Find when will the owner sell the equipment?
Solution
1- If sold in 1st year
• Owner ship cost = P(A/P,i,n) -F(A/F,i,n)
=45000×(A/P,0.2,1)-20000×(A/F,0.2,1)=34006$/year
34006
Owner ship cost =
1400
= 24.29$/ℎ𝑟𝑟
• Operating cost =32.12+(32.12-24.06)=40.18$/hr
Average operating cost =40.18$/hr
Equipment cost = 24.29+40.18= 64.47$/hr
2- If sold in 2nd year
=45000×(A/P,0.2,2)-7000×(A/F,0.2,2)=26278$/year
26278
Owner ship cost =
1400
= 18.77$/ℎ𝑟𝑟
48.24+40.18
Average operating cost = 2
= 44.71$/ℎ𝑟𝑟
Equipment cost = 18.77+44.71= 63.48$/hr
3- If sold in 3rd year
=45000×(A/P,0.2,3)-2000×(A/F,0.2,3)=20818$/year
20818
Owner ship cost =
1400
= 14.87$/ℎ𝑟𝑟
Average operating cost= 56.2+48.24+40.18
3
= 48.57$/ℎ𝑟𝑟
Equipment cost = 14.87 + 48.57= 63.44$/hr
If sold in 1st year Equipment cost = 64.47$/hr

If sold in 2nd year Equipment cost = 63.48$/hr
If sold in 3rd year Equipment cost = 63.44$/hr
The sell must be done after 3 years from now (after 5 years of
purchasing), because the equipment cost at each year are approximately
equals, which mean the efficiency of the equipment will be constant
along the useful life of the equipment, so it is better to sell the equipment
at the end of the equipment useful life
Note
Suppose the results are as below :
1- Case 1
If sold in 1st year Equipment cost = 64$/hr
If sold in 2nd year Equipment cost = 100$/hr
If sold in 3rd year Equipment cost = 90$/hr
The sell must be done after 1 year from now (after 3 years
of purchasing).
2- Case 2
If sold in 1st year Equipment cost = 64/hr
If sold in 2nd year Equipment cost = 64.5$/hr
If sold in 3rd year Equipment cost = 99$/hr
The sell must be done after 2 year from now (after 4 years
of purchasing).
EX/4
a- Determine the cost per hour for equipment using straight
line method
• Initial total cost =450000$
• Useful life=6 years, with 1200hrs. used per year
• Maintenance and repair = 75% of annual depreciation
• Salvage value =90000$
• Fuel consumption =5 liter/hr @ 0.5 $/liter
• oil consumption =0.5 liter/hr @ 10 $/liter
• grease consumption =0.25 kg/hr @ 4 $/kg
• total interest rate =16%
b- During 6 year life time, the owner was keeping records of
maintenance, repair, and operating cost for each year as
shown in table
Maintenance Fuel cons. oil cons. grease cons.
Year
$/hr Liter/hr Liter/hr kg /hr
1 20 4 0.2 0.05
2 30 4.25 0.22 0.07
3 34 4.75 0.35 0.1
4 58 5.25 0.4 0.12
5 45 5.3 0.41 0.18
6 51 5.5 0.43 0.22
Assuming the price of fuel, oil, and grease constant during the 6
years. What would be minimum salvage vale such that total cost
per hour in case (a) will hold true?
Solution
a-
1- Owner ship cost :
A=A1-A2
A= P(A/P,i,n) - F(A/F,i,n)
= 450000 ×(A/P,0.16,6) -90000 ×(A/F,0.16,6)
=112100$/year
112100
= = 93.417 $/ℎ𝑟𝑟
1200
2- Operating cost :
Fuel cost = 5 × 0.5 = 2.5 $/ℎ𝑟𝑟

Oil cost = 0.5 × 10 = 5 $/ℎ𝑟𝑟
Grease cost = 0.25 × 4 = 1 $/ℎ𝑟𝑟
𝑃𝑃−𝐹𝐹
Maintenance & repair Dep. = 0.75
𝑛𝑛
450000 − 90000
= = 45000$/𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦
6
45000
= = 37.5$/ℎ𝑟𝑟
1200
Operating cost= 2.5+5+1+37.5= 46$/hr
Total equipment cost = 93.417 + 46 = 139.417$/ℎ𝑟𝑟
b-
Total operating cost per hr/year =
Maintenance +fuel consumption×0.5+oil consumption ×10
+ grease consumption ×4
Year Operating $/hr

1 24.2
2 34.605
3 40.275
4 65.105
5 52.47
6 58.93
∑ 𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 275.585
Average operating cost = = =
𝑛𝑛 6
= 45.93$/ℎ𝑟𝑟
Total cost per hr. =139.42 $/hr
Owner ship cost = Total cost - Operating cost
= 139.42 − 45.93 = 93.49$/ℎ𝑟𝑟
Owner ship cost = 93.49 × 1200 = 112188$/𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦
A= P(A/P,0.16,6)-F(A/F,0.16,6)
112188 = 450000(A/P, 0.16,6) − F(A/F, 0.16,6)
F = 89213$
EX/5
a- An equipment has the data below
• P = 80000$
• F = 8000 $
• n = 7 years, working 1000 hrs./year
• i = 20 %
• Repair = 100% annual straight line depreciation
• Grease, oil, and fuel cost = 9.75$/hr
Find total cost per hour for this equipment
Solution
Total cost = owner ship cost + operating cost
owner ship cost A= P(A/P,0.2,7)-F(A/F, 0.2,7)
= 80000(A/P,0.2,7)-8000(A/F, 0.2,7) =21574.5$/year
21574.5
= = 21.57$/ℎ𝑟𝑟
1000
operating cost =repair + (oil, grease, fuel) cost
80000−8000
repair = = 10285.7$/𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦
7
10285.7
= = 10.29$/ℎ𝑟𝑟
1000
operating cost =10.29 + 9.75 = 20.04$/ℎ𝑟𝑟
Total cost = 21.57 + 20.04 = 41.61$/ℎ𝑟𝑟
b- After 3 years of operating the owner of equipment

discovered the operating cost of fuel, grease, and oil
1st year = 5 $/hr
2nd year= 8 $/hr
3rd year= 10 $/hr
If he want to sell it now (after 3 years of purchasing), what
is the salvage value such that total cost per hour in case (a)
hold true? Repair as case (a)
Solution
5+8+10
Average (oil, grease, fuel) cost= = 7.67 $/ℎ𝑟𝑟
3
41.61 = owner ship cost + (7.67 + 10.29)
owner ship cost = 23.56 $/ℎ𝑟𝑟 × 1000
owner ship cost = 23650$/𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦
23650= 80000×(A/P,0.2,3)-F(A/F, 0.2,3)
F= 52154$
c- If the owner will sell the equipment after 4 years ,

salvage value after 4 years =15% initial cost, assume
repair in all years as in case (a) .
Find average (oil, grease, fuel) cost at this period if
Total cost = [ 95%Total cost of case (a)+0.15%F]
Solution
F=0 .15×80000=12000$
A= 80000×(A/P,0.2,4)-F(A/F, 0.2,4)
= 28667.7$/year
28667.7
= = 28.67$/ℎ𝑟𝑟
1000
operating cost =repair + (oil, grease, fuel) cost
operating cost =10.29 + (oil, grease, fuel) cost
Total cost =[0.95 × 41.61 + 0.0015 × 12000] = 57.53$/hr
57.53 = 28.67 + 10.29 + (oil, grease, fuel) cost
(oil, grease, fuel) cost = 18.57$/hr
Machine Power
The constructor must select the proper equipment to relocate and/or process materials
economically. The decision process for matching the best possible machine to the project
task requires consideration of the mechanical capabilities of the machine. The power
required is the power needed to propel the machine, and this power requirement is
establish by two factors:
( 1 ) Rolling resistance and
(2) Grade resistance.
Equipment manufacturers publish performance charts for individual machine models.
These charts enable the equipment planner to analyze a machine's ability to perform under
a given set of job and load conditions.
GENERAL INFORMATION
On heavy construction projects, the majority of the work consists of handling and
processing large quantities of hulk materials. The constructor must select the proper
equipment to relocate and/or process these materials economically. The decision process
for matching the best possible machine to the project task requires that the estimator take
into account both the properties of the material to be handled and the mechanical
capabilities of the machine.
When the estimator considers a construction material-handling problem, there are two
primary material considerations:
(1) Total quantity of material and
(2) Size of the individual pieces.
The quantity of material to be handled and the time constraints resulting from the
project contract or weather influence the selection of equipment as to type, size, and
number of machines. Larger units generally have lower unit-production cost, but there is a
trade-off in higher mobilization and fixed costs. The size of the individual material
pieces will affect the choice of machine" size. A loader used in a quarry to move shot rock
must be capable of handling the largest rock sizes produced.
Payload
The payload of hauling equipment may be expressed either volumetrically or
gravimetrically. Volumetric capacity can be stated as struck or heaped, and volume can be
expressed in terms of loose cubic yard (lcy), bank cubic yard (bcy), or compacted cubic yard
(ccy). The pay load capacity of a hauling unit is often stated by the manufacturer in terms of the
volume of loose material that the unit can hold, assuming that the material is heaped in some specified
angle of repose. A gravimetric capacity would represent the safe operational weight that the axles or
structural frame of the machine are designed to handle.
From an economic standpoint, overloading haul trucks to improve production looks attractive and
overloading by 20% might increase the haulage rate 15%, allowing for slight increases in time to
load and haul. The cost per ton hauled should show a corresponding decrease, since direct labor costs
will not change and fuel costs will increase only slightly. This apparently favorable situation is only
temporary, however, for the advantage is being bought at the cost of premature aging of the truck and a
corresponding increased replacement capital expense.
Machine Performance
"Why does the machine travel at only 12 mph when its top speed is 33 mph?" Cycle time and payload
determine a machine's production rate, and machine travel speed directly affects cycle time. To answer
the travel speed question, it is necessary to analyze machine power. There are three power questions that
must be analyzed:
• Required power.
• Available power.
• Usable power.
REQUIRED POWER
Power required is the power needed to propel the machine, and two factors establish this power
requirement:
(1) Roiling resistance and
(2) Grade resistance.
Therefore, power required is the power necessary to overcome the total resistance to machine
movement, which is the sum of rolling and grade resistance.
𝑻𝑻𝑻𝑻𝑻𝑻𝑻𝑻𝑻𝑻 𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓 (𝑻𝑻𝑻𝑻) = 𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹 𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓 (𝑹𝑹𝑹𝑹) + 𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝑮𝑮 𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓 (𝑮𝑮𝑮𝑮)
Rolling Resistance
Rolling resistance is the resistance of a level surface to constant-velocity motion across it. This is
sometimes referred to as wheel resistance or track resistance, which results from friction or the
flexing of the driving mechanism plus the force required to shear through or ride over the supporting
surface.
This resistance varies considerably with the type and condition of the surface over which a machine
moves. Soft earth offers a higher resistance than hard-surfaced roads such as concrete pavement. For
machines that move on rubber tires, the rolling resistance varies with the size of, pressure on, and the
tread design of the tires. For equipment that moves on crawler tracks. Such as tractors, the
resistance varies primarily with the type and condition of the road surface.
A narrow-tread, high-pressure tire gives lower rolling resistance than a broad-tread, low-
pressure tire on a hard-surfaced road. This is the result of the small area of contact between
the tire and the road surface. If the road surface is soft and the tire tends to sink into the
earth, however, a broad-tread, low-pressure tire will offer a lower rolling resistance than a
narrow-tread, high-pressure tire. The reason for this condition is that the narrow tire sinks
into the earth more deeply than the broad tire and thus is always having to climb out of a
deeper hole that is equivalent to climbing a steeper grade.
The rolling resistance of an earth-haul road probably will not remain constant under varying
climatic conditions or for varying types of soil that exist along the road. If the earth is
stable, highly compacted, and well maintained by a grader, and if the moisture content is
kept near optimum, it is possible to provide a surface with a rolling resistance about as low
as that of concrete or asphalt. Moisture can be added, but following an extended period of
rain, it may be difficult to remove the excess moisture and the haul road will become
muddy. With an increase in rolling resistance. Providing good surface drainage will speed
the removal of the water and should enable the road to be reconditioned quickly. For a
major earthwork project, it is good economy to provide graders, water trucks, and even
rollers to keep the haul road in good condition. The maintenance of low-rolling-resistance
haul roads is one of the best financial investments an earthmoving contractor can make.
A tire sinks into the soil until the product of bearing area and bearing capacity is sufficient
to sustain the load; then the tire is always attempting to climb out of the rut. The rolling
resistance will increase about 30 lb per ton for each inch of penetration. Total rolling
resistance is a function of the riding gear characteristics (independent of speed), the total
weight of the vehicle, and torque. It is usually expressed as pounds of resistance per ton of
vehicle weight, or as an equivalent grade resistance. For example, if a loaded truck that has
a gross weight equal to 20 tons is moving over a level road whose rolling resistance is 100
lb per ton, the tractive effort required to keep the truck moving at a uniform speed will be
𝟐𝟐𝟐𝟐 𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕 ∗ 𝟏𝟏𝟏𝟏𝟎𝟎 𝒍𝒍𝒍𝒍/𝒕𝒕𝒕𝒕𝒕𝒕 = 𝟐𝟐, 𝟎𝟎𝟎𝟎𝟎𝟎 𝒍𝒍𝒍𝒍.
The estimation of off-road rolling resistance is based largely on empirical information,

which may include experience with similar soils. Rarely are rolling resistance values based
on test runs on actual terrain. Much of the actual test data available comes from
performance of aircraft tire research at the U.S. Army, Waterways Experiment Station.
Although it is impossible to give completely accurate values for the rolling resistances for
all types of haul roads and wheels, the values given in Table 5.1 are reasonable estimates.
TABLE 5.1 | Representative rolling resistances for various types of wheels and surfaces*
Steel tires, plain bearings r crawler type track and wheel Rubber tires, antifriction bearings
Type of surface High pressure Low pressure
lb/ton kg/m ton lb/ton kg/m ton lb/ton kg/m ton lb/ton kg/m ton
Smooth concrete 40 20 55 27 35 18 45 23
Good asphalt 50-70 25-35 60-70 30-35 40-65 20-33 50-60 25-30
Earth, compacted and maintained 60-100 30-50 60-80 30-40 40-70 20-35 50-70 25-35
Earth, poorly maintained 100-150 50-75 80-110 40-55 100-140 50-70 70-100 35-50
Earth, rutted, muddy, no maintenance 200-250 100-125 140-180 70-90 180-220 90-110 150-200 75-100
Loose sand and gravel 280-320 140-160 160-200 80-100 260-290 130-145 220-260 110-130
Earth, very muddy, rutted,

350-400 175-200 200-240 100-120 300-400 150-200 280-340 140-170
soft
If desired, one can determine the rolling resistance of a haul road by towing a truck or other
vehicle whose gross weight is known along a level section of the haul road at a uniform
speed. The tow cable should be equipped with a dynamometer or some other device that
will enable determination of the average tension in the cable. This tension is the total rolling
resistance of the gross weight of the truck. The rolling resistance in pounds per gross ton
will be
𝑃𝑃
𝑅𝑅 =
𝑊𝑊
Where
R = rolling resistance in pounds per ton
P = total tension in tow cable in pounds
W = gross weight of truck in tons
When tire penetration is known, an approximate rolling resistance value for a wheeled
vehicle can be calculated using the following formula:
RR = [40 + (30 ∗ TP)] ∗ GVW

Where
RR = rolling resistance in pounds
TP = tire penetration in inches
GVW = gross vehicle weight in tons
Grade Resistance
The force-opposing movement of a machine up a frictionless slope is known as grade
resistance. It acts against the total weight of the machine, whether track-type or wheel-type.
When a machine moves up an adverse slope), the power required to keep it moving
increases approximately in proportion to the slope of the road. If a machine moves down a
sloping road, the power required to keep it moving is reduced in proportion to the slope of
the road. This is known as grade assistance.
The most common method of expressing a slope is by gradient in percent. A 1% slope is
one where the surface rises or drops 1 ft vertically in a horizontal distance of 100 ft. If the
slope is 5%, the surface rises or drops 5 ft per 100 ft of horizontal distance. If the surface
rises, the slope is defined as plus, whereas if it drops, the slope is defined as minus. This is a
physical property not affected by the type of equipment, or the condition or type of road.
For slopes of less than 10%, the effect of grade is to increase, for a plus slope, or decrease,
for a minus slope, the required tractive effort by 20 lb per gross ton of machine weight for
each 1% of grade. This can be derived from elementary mechanics by calculating the
required driving force.
FIGURE 5.3 | Frictionless slope force relationships.
From Fig. 5.3 the following relationships can be developed:
𝐹𝐹 𝑉𝑉
=
𝑊𝑊 𝐷𝐷
𝑉𝑉
𝐹𝐹 = 𝑊𝑊
𝐷𝐷
If W = 1000 Kg
V=1m
D = 100 m
1
Then 𝐹𝐹 = 1000 = 10 Kg / ton for 1% grade.
100
𝐹𝐹 = 10 Kg / ton ∗ 𝐺𝐺%
Total Resistance
Total resistance equals rolling resistance plus grade resistance or rolling resistance minus grade
resistance. It can also be expressed as an effective grade.
Using the relationship expressed in Eq. [5.8], a rolling resistance can be equated to an equivalent
gradient.
Rolling resistance expressed in Kg / ton
= G%
10 Kg / ton
Table 5.2 gives values for the effect of slope, expressed in pounds per gross ton or kilograms
per metric ton (m ton) of weight of the vehicle.
TABLE 5.2 The effect of grade on the tractive effort of vehicles
Slope (%) lb/ton kg/m ton Slope {%) lb/ton kg/m ton
1 20.0 10.0 12 238.4 119.2
2 40.0 20.0 13 257.8 128.9
3 60.0 30.0 14 277.4 138.7
4 80.0 40.0 15 296.6 148.3
5 100.0 50.0 20 392.3 196.1
6 119.8 59.9 25 485.2 242.6
7 139.8 69.9 30 574.7 287.3
8 159.2 79.6 35 660.6 330.3
9 179.2 89.6 40 742.8 371.4
10 199.0 995 45 820.8 410.4
11 218.0 109.0 50 894.4 447.2
By combining the rolling resistance, expressed as an equivalent grade, and the grade
resistance, expressed as a gradient in percent, one can express the total resistance as an
effective grade. The three terms, power required, total resistance, and effective grade all
mean the same thing. Power required is expressed in pounds. Total resistance is expressed
in pounds or pounds per ton of machine weight, and effective grade is expressed in percent.
EXAMPLE
The haul road from the borrow pit to the fill has an adverse grade of 4%. Wheel type
hauling units will be used on the job and it is expected that the haul-road rolling resistance
will be 50 Kg per ton. What will be the effective grade for the haul? Will the units
experience the same effective grade for the return trip?
Rolling resistance expressed in Kg / ton

Equivalent grade (RR) =
10 Kg / ton
50 Kg / ton
= =5%
10 Kg / ton
Effective grade (TRhaul) = 5% RR + 4% GR = 9%
Effective grade (TRreturn) = 5% RR - 4% GR = 1%
Where
RR = rolling resistance
GR = grade resistance
AVAILABLE POWER
There are two factors that determine available power:
(1) Horsepower and
(2) Speed.
Horsepower is the time rate of doing work and is a constant value for any given machine.
Since horsepower is a machine specific constant, available pounds pull or push will change
as machine speed is varied. Travel fast and pulling ability will be low; travel slow and the
machine have the ability to exert a high pulling force.
Horsepower
The engine develops a piston force Fp, which acts on a crankshaft having a radius r,
producing a crankshaft torque Tg at a governed speed Ng .
𝑻𝑻𝒈𝒈 = 𝑭𝑭𝒑𝒑 ∗ 𝒓𝒓
Where
𝑇𝑇𝑔𝑔 = crankshaft torque
𝐹𝐹𝑝𝑝 = piston force
𝑟𝑟 = crankshaft radius
The output of the engine at the flywheel at rated revolutions per minute (rpm) and under
environmental conditions of testing (temperature and altitude) is known as flywheel
horsepower (fwhp). This output can be measured either by friction belt or by brake; hence
the names belt horsepower or brake horsepower (bhp).
𝟐𝟐 ∗ 𝝅𝝅 ∗ 𝑵𝑵𝒈𝒈 ∗ 𝑭𝑭𝒑𝒑 ∗ 𝒓𝒓 𝟐𝟐 ∗ 𝝅𝝅 ∗ 𝑵𝑵𝒈𝒈 ∗ 𝑻𝑻𝒈𝒈

𝒇𝒇𝒇𝒇𝒇𝒇𝒇𝒇 = =
𝟑𝟑𝟑𝟑𝟑𝟑𝟑𝟑𝟑𝟑 𝟑𝟑𝟑𝟑𝟑𝟑𝟑𝟑𝟑𝟑
Where
Ng is crankshaft speed in rpm
Fp is piston force in pounds
r is crankshaft radius in feet
Tg is crankshaft torque in lb-ft
Typically, manufacturers rate machine horsepower at a specified rpm based on the Society
of Automotive Engineers (SAE) standardized rating procedure. Under the SAE standard,
horsepower will be listed as either gross or flywheel (also often listed as net horsepower).
Flywheel horsepower can be considered as usable horsepower. It is the power available to
operate a machine after deducting for power losses in the engine. If machine horsepower is
listed without reference to the SAE standard it could be a maximum, which would be
substantially higher than flywheel. When the SAE standard is not cited, always check with
the manufacturer to determine the basis of the rating. For applications requiring continuous
high power output, an engine that develops the required horsepower at a lower rpm will be
under less strain. Such an engine may cost more to purchase, but it should last longer and
require fewer repairs.
The power output from the engine, fwhp, becomes the power input to the transmission
system. This system consists of the drive shaft, a transmission, planetary gears, drive axles,
and drive wheels.
When analyzing a piece of equipment, we are interested in the usable force developed at the
point of contact between the tire and the ground (rimpull) for a wheel machine. In the case
of a track machine, the force in question is that available at the drawbar (drawbar pull). The
difference in the name is a matter of convention; both rimpull and drawbar pull are
measured in the same units, pounds pull.
In the mechanical process of developing rimpull or drawbar pull, there are power losses.
For any specified gear or speed torque position on a torque converter
𝑬𝑬%
𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼𝑼 𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉 = 𝐟𝐟𝐟𝐟𝐟𝐟𝐟𝐟 ∗
𝟏𝟏𝟏𝟏𝟏𝟏
Where
𝑬𝑬% is the efficiency of the power transmission.
There are two methods for arriving at a machine's developed output force,
FH (force at the wheel):
If the whole-body velocity of the machine when operating at governed engine speed Ng is
known for a specific gear, the relationship is
𝟑𝟑𝟑𝟑,𝟎𝟎𝟎𝟎𝟎𝟎∗ 𝐟𝐟𝐟𝐟𝐟𝐟𝐟𝐟∗ (𝐄𝐄%/𝟏𝟏𝟏𝟏𝟏𝟏)
𝑭𝑭𝒘𝒘 =
𝒗𝒗
Where
𝒗𝒗 is the velocity in feet per minute (fpm).
Rim pull ‫ﺟﺮ اﻹطﺎر‬

Rimpull is a term that is used to designate the tractive force between the rubber tires of
driving wheels and the surface on which they travel. If the coefficient of traction is high
enough to eliminate tire slippage, the maximum rim pull is a function of the power of the
engine and the gear ratios between the engine and the driving wheels. If the driving wheels
slip on the haul surface, the maximum effective rim pull will be equal to the total pressure
between the tires and the surface multiplied by the coefficient of traction. Rimpull is
expressed in pounds. If the rimpull of a vehicle is not known, it can be determined from the
equation
𝟑𝟑𝟑𝟑𝟑𝟑 ∗ 𝐡𝐡𝐡𝐡 ∗ 𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞
𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹 = 𝐥𝐥𝐥𝐥
𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬 (𝐦𝐦/𝐡𝐡)
𝟐𝟐𝟐𝟐𝟐𝟐. 𝟐𝟐 ∗ 𝐡𝐡𝐡𝐡 ∗ 𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞𝐞

𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹 = 𝐤𝐤𝐤𝐤
𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬𝐬 (𝐤𝐤𝐤𝐤/𝐡𝐡)
This is the formulation of the available power factors horsepower and speed.
The efficiency of most tractors and trucks will range from 0.80 to 0.85. For a rubber-tired
tractor with a 140-hp engine and a maximum speed of 3.3 m/h in first gear, the rimpull will
be
𝟑𝟑𝟑𝟑𝟑𝟑∗𝟏𝟏𝟏𝟏𝟎𝟎∗𝟎𝟎.𝟖𝟖𝟖𝟖
𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹𝑹 = = 𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏
𝟑𝟑.𝟑𝟑
The maximum rimpull in all gear ranges for this tractor will be as shown in the table.
Gear Speed (mph) Rimpull (lb)
First 3.3 13,523
Second 7.1 6,285
Third 12.9 3,542
Fourth 21.5 2,076
Fifth 33.9 1,316
In computing the pull that a tractor can exert on a towed load, it is necessary to deduct
from the rimpull of the tractor the force required to overcome the rolling and grade
resistance.
Example
Consider a tractor whose maximum rimpull in the first gear is 13,730 lb, weighs 12.4
tons, and is operated up a haul road with a slope of 2% and a rolling resistance of 100 lb
per ton. Given these conditions, the pull available for towing a load will be determined
as follows:
𝑀𝑀𝑀𝑀𝑀𝑀 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 = 13,730 𝑙𝑙𝑙𝑙

𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑡𝑡𝑡𝑡 𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔 = 12.4 𝑡𝑡𝑡𝑡𝑡𝑡 ∗ (20 𝑙𝑙𝑙𝑙/𝑡𝑡𝑡𝑡𝑡𝑡 ∗ 2%) = 496 𝑙𝑙𝑙𝑙
𝑃𝑃𝑢𝑢𝑢𝑢𝑢𝑢 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑡𝑡𝑡𝑡 𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 = 12.4 𝑡𝑡𝑡𝑡𝑡𝑡 ∗ 100 𝑙𝑙𝑙𝑙/𝑡𝑡𝑡𝑡𝑡𝑡
= 1,2401𝑏𝑏
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑡𝑡𝑡𝑡 𝑏𝑏𝑏𝑏 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑 = 496 𝑙𝑙𝑙𝑙 + 1,240 𝑙𝑙𝑙𝑙 = 1,736 𝑙𝑙𝑙𝑙
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎 𝑓𝑓𝑓𝑓𝑓𝑓 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑎𝑎 𝑙𝑙𝑜𝑜𝑎𝑎𝑎𝑎 = (13,730 𝑙𝑙𝑙𝑙 − 1,736 𝑙𝑙𝑙𝑙) = 11,995 𝑙𝑙𝑙𝑙
Drawbar Pull ‫ﻗﻮة اﻟﺠﺮ‬

The available pull that a crawler tractor can exert on a load that is being towed is referred
to as the drawbar pull of the tractor. The pull is expressed in pounds. From the total pulling
effort of an engine, the pull required to move the tractor over a level haul road must be
deducted before the drawbar pull can be determined. If a crawler tractor tows a load up a
slope, its drawbar pull will be reduced by 20 lb for each ton of weight of the tractor for each
1% slope.
The performance of crawler tractors, as reported in the specifications supplied by the
manufacturer, is usually based on the Nebraska tests. In testing a tractor to determine its
maximum drawbar pull at each of the available speeds, the haul road is calculated to have a
rolling resistance of 110 lb per ton. If a tractor is used on a haul road whose rolling
resistance is higher or lower than 110 lb per ton, the drawbar pull will be reduced or
increased, respectively, by an amount equal to the weight of the tractor in tons multiplied by
the variation of the haul road from 110 lb per ton.
EXAMPLE
A tractor whose weight is 15 tons has a drawbar pull of 5,685 lb in the sixth gear when
operated on a level road having a rolling resistance of 110 lb per ton. If the tractor is
operated on a level road having a rolling resistance of 180 lb per ton, the drawbar pull will
be reduced by
𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑 = 𝟏𝟏𝟏𝟏 𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕 ∗ (𝟏𝟏𝟏𝟏𝟏𝟏 𝒍𝒍𝒍𝒍/𝒕𝒕𝒕𝒕𝒕𝒕 − 𝟏𝟏𝟏𝟏𝟏𝟏 𝒍𝒍𝒍𝒍/𝒕𝒕𝒕𝒕𝒕𝒕) = 𝟏𝟏, 𝟎𝟎𝟎𝟎𝟎𝟎 𝑰𝑰𝑰𝑰.
Thus, the effective drawbar pull will be
𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆𝒆 𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑 = 𝟓𝟓, 𝟔𝟔𝟔𝟔𝟔𝟔 − 𝟏𝟏, 𝟎𝟎𝟎𝟎𝟎𝟎 = 𝟒𝟒, 𝟔𝟔𝟔𝟔𝟔𝟔 𝑰𝑰𝑰𝑰.
The drawbar pull of a crawler tractor will vary indirectly with the speed of each gear. It is
highest in the first gear and lowest in the top gear. The specifications supplied by the
manufacturer should give the maximum speed and drawbar pull for each of the gears.
USABLE POWER
Usable power depends on project conditions, primarily haul-road surface condition and
type, and altitude and temperature. Underfoot conditions determine how much of the
available power can be transferred to the surface to propel the machine. As altitude
increases, the air becomes less dense. Above 3,000 ft, the decrease in air density may cause
a reduction in horsepower output of some engines. Manufacturers provide charts detailing
appropriate altitude power reductions . Temperature will also affect engine output.
Coefficient of Traction
The total energy of an engine in any unit of equipment designed primarily for pulling a load
can be converted into tractive effort only if sufficient traction can be developed between the
driving wheels or tracks and the haul surface. If there is insufficient traction, the full
available power of the engine cannot be used, as the wheels of tracks will slip on the
surface.
The coefficient of traction can be defined as the factor by which the total weight on the
drive wheels or tracks should be multiplied to determine the maximum possible tractive
force between the wheels or tracks and the surface just before slipping will occur.
Usable force — coefficient of traction X wt. on powered running gear [5.17]
The power that can be developed at the interface between running gear and the haul-road
surface is often limited by traction. The factors controlling usable horsepower are the
weight on the powered running gear (drive wheels for wheel type, total weight for track
type the characteristics of the running gear, and the characteristics Of the travel surface.
The coefficient of traction between rubber tires and road surfaces will vary with the type of
tread on the tires and with the road surface. For crawler tracts, it will vary with the design of
the grosser and the road surface. These variations are such that exact values cannot be
given. Table 5.3 gives approximate values, for the coefficient of traction between rubber
tires or crawler tracks and road surfaces that are sufficiently accurate for most estimating
purposes.
TABLE 5.3 Coefficients of traction for various road surfaces
Surface Rubber tires Crawler tracks
Dry, rough concrete 0.80-1.00 0.45
Dry, clay loam 0.50-0.70 0.90
Wet, clay loam 0.40-0.50 0.70
Wet sand and gravel 0.30-0.40 0.35
Loose, dry sand 0.20-0.30 0.30
Dry snow 0.20 0.15-0.35
ice 0.10 0.10-0.25
EXAMPLE
Assume that the rubber-tired tractor has a total weight of 18,000 Ib on the two driving
wheels. The maximum rimpull in low gear is 9,000 Ib. If the tractor is operating in wet
sand, with a coefficient of traction of 0.30, the maximum possible rimpull prior to slippage
of the tires will be
𝟎𝟎. 𝟑𝟑𝟑𝟑 ∗ 𝟏𝟏𝟏𝟏, 𝟎𝟎𝟎𝟎𝟎𝟎 𝒍𝒍𝒍𝒍 = 𝟓𝟓, 𝟒𝟒𝟒𝟒𝟒𝟒𝟒𝟒𝟒𝟒
Regardless of the horsepower of the engine, not more than 5,400 Ib of tractive effort can be
used because of the slippage of the wheels.
If the same tractor is operating on dry clay, with a coefficient of traction of 0.60, the
maximum possible rimpull prior to slippage of the wheels will be
𝟎𝟎. 𝟔𝟔𝟔𝟔 ∗ 𝟏𝟏𝟏𝟏, 𝟎𝟎𝟎𝟎𝟎𝟎𝟎𝟎𝟎𝟎 = 𝟏𝟏𝟏𝟏, 𝟖𝟖𝟖𝟖𝟖𝟖 𝒍𝒍𝒍𝒍
For this surface, the engine will not be able to cause the tires to slip. Thus, the full power of
the engine can be used.
EXAMPLE
A wheel tractor scraper is used on a road project. When the project initially begins, the
scraper will experience high rolling and grade resistance at one work area. The rimpull
required to maneuver in this work area is 42,000 lb. In the fully loaded condition, 52% of
the total vehicle weight is on the drive wheels. The fully loaded vehicle weight is 230,880
lb. What minimum value of coefficient of traction between the scraper wheels and the
traveling surface is needed to maintain maximum possible travel speed?
𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾𝑾 𝒐𝒐𝒐𝒐 𝒕𝒕𝒕𝒕𝒕𝒕 𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅𝒅 𝒘𝒘𝒘𝒘𝒘𝒘𝒘𝒘𝒘𝒘𝒘𝒘 = 𝟎𝟎. 𝟓𝟓𝟓𝟓 𝒙𝒙 𝟐𝟐𝟐𝟐𝟐𝟐, 𝟖𝟖𝟖𝟖𝟖𝟖 𝒍𝒍𝒍𝒍 = 𝟏𝟏𝟏𝟏𝟏𝟏, 𝟎𝟎𝟎𝟎𝟎𝟎 𝒍𝒍𝒍𝒍
𝟒𝟒𝟒𝟒, 𝟎𝟎𝟎𝟎𝟎𝟎 𝒍𝒍𝒍𝒍
𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴𝑴 𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓𝒓 𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄𝒄 𝒐𝒐𝒐𝒐 𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕𝒕 = = 𝟎𝟎. 𝟑𝟑 𝒍𝒍𝒍𝒍𝒍𝒍
𝟏𝟏𝟏𝟏𝟏𝟏, 𝟎𝟎𝟎𝟎𝟎𝟎 𝒍𝒍𝒍𝒍
FIGURE 5.7 | Drawbar pul! performance chart.
FIGURE 5.8 | Rimpull performance chart.

Bulldozer Production
Time components used for most tractor-powered equipment production cycles are similar to
those of the working bulldozer described in this section. Typical production cycles for
earthmoving equipment are very similar as well. Exact components will vary based on the
work setup and operation. The typical production cycle is the following:
1. The bulldozer positions to start excavation
2. The bulldozer scoops or digs for the length of a pass to fill the blade
3. The bulldozer hauls the load by rolling, crawling, pushing, or pulling
4. The load is discharged or dumped at the desired location
5. The bulldozer repositions to exit the dumpsite
6. The bulldozer backtracks to the loading location
Most efficient and safe production is achieved when the machine is going forward. The time
component for each part of the cycle is influenced by many factors, primarily by speed and
distance of travel. The production cycles for bulldozers, front-end loaders, motor graders,
scrapers, and trucks are all similar to the cycle described above. There are similarities in the
example problems for each of these types of earthmoving equipments. Bulldozer production
is typically not dependent on other equipment. Bulldozers are usually the first pieces of
equipment on the site. Production is based on the width of the blade, the depth of cut, and
the travel, backtrack, and return times. Dozer production with scrapers will be discussed in
the scraper section of this chapter.
Example
A Case 750K bulldozer with a 8' blade is to be used to excavate and push fairly loose dirt.
According to the soils report, the dirt to be moved has a 23% swell factor. The average H =
4' , the average load width is 6', and the load length is 9'. Actually observing and recording
times for individual cycles and then finding the average observed cycle time is probably the
most accurate way to estimate a typical production cycle time. The load time suggested by
the manufacturer is about 0.08 min. Once the blade goes through the cut, the haul push is
about 200' with an average speed of about 2.6 mph. Backtrack distance is about 240' and the
dozer will travel at a speed of about 3.2 mph. Once back to the hole, the dozer takes about
0.06 min to reposition. The Case dealer suggests an O&O cost of about $55/h. Your
operator costs about $23/h with contractor outlay. What is the unit cost for the work if
there is about 1200 bcy of surface dirt that must be moved by the 750 K?
SOLUTION
1. How much dirt (lcy) can be moved in one production cycle?
2. How much dirt (bcy) can be moved in one production cycle? The quantity takeoff is in
bcy so the lcy load must be converted to bcy.
3. What is the cycle time for one production cycle?
4. What is the work hour productivity if the operator works 50 min per 60-min hour?
5. How long will it take to move the 1200 bcy?
6. How much will it cost?
7. What is the unit cost to perform the work?

SCRAPERS
Scrapers are designed to load, haul, and dump loose material. The
greatest advantage is their versatility. They can be used for a wide variety
of material types and are economical for a range of haul distances and
conditions. They are a compromise between a bulldozer, an excavator,
and a dump truck. Scrapers are articulated, tractor powered, and pull a
bowl that holds the soil. A blade is mounted on the bottom of the bowl
that cuts into the travel surface and the disturbed soil flows into the bowl
as the scraper moves forward. Figure 4.13 shows the tractor, bowl, and
chain in operation. Scrapers can self-load or be assisted by another
scraper or a bulldozer.
FIGURE 4.13 Elevating scraper
Scrapers are classified in the following categories:

1. Single engine: A tractor pulling a bowl that can operate under its own
power or be push-assisted. This is the most common type of scraper on
large earthmoving jobs.
2. Tandem or twin engine: This type has a second engine mounted in the
rear and can develop greater power. This is ideal for steeper hauls at
greater speeds. Typically cost about 30% more than a conventional
scraper.
3. Push–pull scraper: This type is designed with a push block mounted on
the rear and a bail mounted on the front to assist other scrapers or be
pushed by other scrapers. They are ideal for dense soil-excavating
projects when a dozer is not utilized for pushing.
4. Elevating: These are self-contained loading and hauling units. The
chain elevator serves as a loading mechanism. The extra weight of the
loading mechanism is a disadvantage during the haul cycle, but this type
is ideal for short-haul situations where the ratio of haul time to load time
is low. These are used generally for utility work, dressing up behind high-
production spreads, or shifting material during fine grading operations.
The chain breaks the soil as it enters the bowl and is easier to discharge.
These units can be push-assisted.
Wheel-type scrapers have potential for high-travel speeds on favorable
haul roads and can go up to 30 mph. When digging in hard clay, once the
bowl of the scraper starts filling and getting weighted down, the demand
on the scraper’s power is the greatest. The operator wants to set the blade
just deep enough so that when the pass through the hole is complete, the
bowl is full. Typically, these scrapers need bulldozer support to provide
the extra tractive effort needed for economical and efficient loading. To
reduce the effort that the scraper must exert to load and get out of the
hole, a bulldozer is an economical and efficient pusher.
Figure 4.14 shows three techniques typically used for push assisting a
scraper through the hole, backtrack loading, chain loading, and shuttle
loading. The technique used should be determined based on the quantity
of work and specific site considerations. Avoiding repositioning and
FIGURE 4.14 Scraper loading techniques.
keeping the scraper traveling forward will optimize production time.

Backtrack loading is the most common type of technique for multiple
scrapers and a single pusher.
Heaped scraper capacities range from about 15 to 44 cy. Load ratings
range from about 18 to 52 tons. Maximum depth of cut ranges from over
13'' to 17''. Maximum depths of spread range from about 14'' to over 22''.
Scraper Production
To load the scraper, the front end of the bowl (nearest the cab) is lowered
until the attached cutting edge penetrates the travel surface. As the
scraper moves forward, the front apron of the bowl is raised so that a strip
of excavated earth can flow into the bowl. The amount of excavated soil
depends on the depth of penetration of the cutting edge. The scraper
moves forward until the bowl is full. The blade is lifted and the apron
closes. Ripping (bulldozer with ripper shanks) or tilling (tractor pulling a
plow) the soil lift to be excavated prior to the scraper making a pass can
increase scraper production. Sometimes applying water will loosen soil
also.
To dump the scraper load, the cutting edge is set above the discharged
material, raising the apron. The material is forced out by means of a
movable ejector mounted at the rear of the bowl. The size of the apron
opening regulates the amount of material discharged and the material lift
depth.
The capacity of the scraper bowl can be measured by volume or weight.
When the capacity or the weight is exceeded, operating efficiency
decreases. Scraper volume is measured in two ways in loose cubic yards.
Struck volume is the loose cubic yards that a scraper would hold if the top
of the material were struck off even at the top of the bowl. Heaped
volume is the loose cubic yards that a scraper would hold with the
material heaped and sloping above the sides of the bowl. The heaped
volume takes into account the fill factor.
The cycle time for a scraper is estimated by adding the fixed times to
load, dump, turn around, and spot for the next cut, and the variable or
travel times to haul full and return empty. Scraper rimpull, speed, and
gradability performance can be verified by referring to the rimpull, speed,
and gradability curves for the model. The expected performance of the
scraper can be compared to these operating requirements of the work.
Load times vary based on power, bowl capacity, and site conditions and
range from 0.4 to 1.0 min typically.
Maneuver and spread or maneuver and dump times range from 0.6 to
0.7min. Additional maneuvering (spotting) when approaching the cut
might be required and should be added if necessary.
Dozer-assisted means that the dozer makes contact with the back bale of
the scraper as it starts into the hole. The dozer is actually providing most
of the pushing power to not only make the cut, but also to transport the
full bowl through and out (boost) of the cut. This greatly optimizes what a
bulldozer is designed to do and greatly reduces the power needed by the
scraper to excavate and start hauling when fully loaded. It is an ideal
pairing of equipment to optimize the capabilities of both.
To determine the number of scrapers that can be matched to one pusher
or dozer, the pusher cycle time must be determined. This cycle time
includes match up and to contact with the rear of the scraper, push
through the hole, boost out of the hole, and maneuver to match up to the
next scraper coming through the hole.
Example
A Cat D631E Series II wheel tractor scraper assisted with a D9R
bulldozer is to be used to move dirt about 4200' to build a detention pond
at the entry of subdivision. The D9 has ripped the soil in the area to be
excavated about 18" deep. The D9 is to push the scraper until it is out of
the hole. Once full, the scraper’s average haul speed will be around
10 mph. The return route is about 4400' and the average return speed will
be around 14 mph. The rated heaped capacity of the D631 is 31 lcy. The
estimated load time according to the performance manual is 0.6 min. The
estimated dump time is about 0.7min. The Cat estimated hourly O&O for
moderate conditions for the D9 is $86/h and for the D631 is $87/h. The
projected O&O cost includes the operator for this calculation.
1. What is the work hour productivity if the operator works 50 min
per 60-min hour?
2. How many scrapers will the D9 support?
3. How many hours will it take to excavate and haul 20,600 bcy of
soil with swell factor of 15% using the D9 and 8 D631 scrapers?
4. How much will it cost to excavate and move this dirt?
5. What is the unit cost for the work?
Solution
Example
Estimate the production of a single engine tow-axle tractor scraper
whose travel-time curve in Figures 4-4 and 4-5 based on the
following information:-
Maximum heaped volume = (24 LCM)
Maximum payload = (34020 kg)
Material: sandy clay, (1898 kg/BCM), (1571 kg/LCM)
Rolling resistance (50 Kg/t)
Job efficiency = (50 min/h)
Operating conditions = average
Single pusher
Fixed time = 1.6 min
Haul route:-
Section 1: Level loading area
Section 2: Down a (4%) grade, (610 m)
Section 3: Level dumping area
Section 4: Up a (4%) grade, (610 m)
Section 5: Level turnaround, (183 m)
FRONT-END LOADERS
Front-end loaders typically are tractor powered and operate on tires.
They are typically articulated and very maneuverable, making them ideal
for constricted areas. They are used primarily for material moving and re-
handling. They are ideal for scooping and hauling materials in storage
piles, where it is to be permanently placed, or loading it into dump trucks.
Loaders are ideal for dumping soil back into the hole after the necessary
below grade work is done. Tracked loaders may be required for extreme
surface conditions demanding greater traction or stability. Every concrete
or asphalt batch plant has a tire equipped frontend loader to stock the feed
to the batch hopper with aggregate and sand. Fixed cycle times for
loaders (raise, dump, and lower the bucket) range from about 9 s to about
20 s depending on the size of the loader. General-purpose bucket
capacities range from about 0.75 to 18 lcy. Figure 4.10 shows a small
loader that is ideal for confined spaces and smaller loads.
These small loaders are very maneuverable and are ideal for use in
constricted limited working areas. They are used often for moving sand
within slab forms or with fork attachments to carry brick, mortar, or sand.
They are excellent for surface movement of small amounts of material.
FIGURE 4.10 Skid-steer loader.
Loader Production
Loaders are used many times with feed hoppers and dump trucks. The
loader is sized by the demand of the feed hopper or the size and number
of dump trucks that can be filled. Production cycle components are
similar whether running on tracks or tires. The work surface stability will
influence the cycle time.
Example
A Cat 950G wheel loader with a 4.25 lcy heaped bucket is to be used to
move fairly loose stockpiled dirt onto a conveyor running under the road.
The conveyor is carrying the dirt to another part of the site. The dirt will
be used to fill that side of the project site. The Cat Performance Manual
suggests a cycle time (load, dump, maneuver) of about 55 s for the way
you have the work setup and an O&O cost of about $31/h. Your operator
costs about $23/h. The conveyor will haul about 280 lcy/h. Will the
production of the loader keep up with the conveyor?
1. How much dirt (lcy) can be moved in one production cycle?
2. What is the cycle time for one production cycle?
3. What is the work hour productivity if the operator works 50 min

per 60-min hour?
4. What is the daily cost for using this loader if the conveyor runs
11 h/day?
5. What is the unit cost per day to use the 950G loader?
MOTOR GRADERS
This type of equipment has been around since the start of road building,
though originally powered by a team of oxen, mules, or horses. The need
for a smooth stable travel surface has always been an important part of a
road system. Another name for a motor grade is ‘‘maintainer.’’ This
name is appropriate because this equipment is typically used to maintain
grade and a smooth surface for rural non paved travel roads or haul routes
on construction sites. The grader is a long tractor-driven piece of
equipment with a blade mounted underneath as shown in Figure 4.11.
The blade is used to push dirt straight ahead or to the side at a desired
level. The grader can be used for light surface excavation, but is mainly
used to move soil to create a level surface. Note the ring to which the
blade is attached underneath the frame. This ring can be swiveled
vertically and the casting angle of the blade adjusted on it. The blade can
be angled to shape road banks. Standard blade widths range from 12' to
14' and speed in midrange gear is approximately 6 mph. Front tires are
usually leaning to resist the force created when the blade is cutting and
side casting the material.
As the dirt is pushed ahead of the blade it fills voids in the surface over
which it is moving. Excess dirt is pushed into other surface voids or to the
side. When the dirt is cast to the side of the grader, this is called a
windrow (row of piled dirt). Usually a front-end loader will follow behind
the grader to scoop up excess dirt in the windrow if necessary. Laser level
readers can be attached to the motor grader blade so that the operator can
establish a desired elevation using the level signal, not having to rely on
feel and experience as much. The grader depth of cut is adjusted based on
the signal setting.
FIGURE 4.11 Motor grader.
Motor Grader Production

On large dirt-moving jobs, the motor grader operator is responsible for
the movement, spotting, and leveling of the delivered fill. This operator is
like an equipment group foreman. The delivered fill might be from the
other side of the project site or brought from a pit miles away. Since soil
is leveled and compacted by lift, where and how much soil should be
dumped must be managed for efficient spreading as it is delivered. In
road base construction, the grader is typically the last major earthmoving
equipment used during compaction.
Graders are usually set up to run in linear or rectangular patterns.
Production is measured in area covered in a certain amount of time
(square feet per hour, cubic feet per hour). When grading linearly, the
operator usually has the blade dropped (cutting) until the end of the pass,
turns, drops the blade, and grades the opposite direction. When grading
an area for a parking lot, two methods of the rectangular patterns can be
used. Using the ‘‘back and forth’’ method, the operator travels with the
blade down to the end of the pass, picks up the blade, backtracks, drops
the blade, and starts over. Using the ‘‘looping’’ method, the operator
drops the blade for the pass, lifts the blade at the end of the pass, turns the
grader in an arc to the other direction, and drops the blade for this pass.
The process is repeated until the area is covered with the grader traveling
in a forward loop or oval as many times as necessary to cover the surface.
To set the ‘‘looping’’ coverage pattern, the turning radius of the motor
grader must be considered. The turning radius is typically listed in the
performance spec for the model.
Grader production for road maintenance is pretty much linear. For
mass earthmoving projects, grader production must be matched to
production of other equipment (usually scrapers or dump trucks) in the
equipment package dumping material to be spread in lifts.
Linear grading productivity is estimated using:
1. V, the average grading speed
2. W, the grading width (width of blade if pushing straight ahead
perpendicular to travel direction)
3. OF, the operating factor
4. N, the number of passes required to cover the area to be graded (width
of the road base)
Example
A Volvo G740B motor grader with a 14' blade is to be used to knock
down dirt on a 66' wide × 980' long road base area. The effective grading
width is 12'. The average speed will be around 3 mph. The number of
passes required is two to reach the desired smoothness. In the following
passes, sf denotes square feet and sy denotes square yards.
1. What is the work hour productivity if the operator works 50 min per
60-min hour?
2. How long will it take to grade the road base?

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Benefit-Cost Ratio Method

The benefit-cost ratio method is not as straightforward and unambiguous

The benefit-cost ratio is defined as the ratio of the discounted benefits to

If interest is 12%, which alternative should the engineer select? Assume

Initial cost $2 00,000

With an assumed interest rate of 12%, which system would you

Using a minimum attractive rate of return (MARR) of 10%, which

There are three basic of views presented

Average End Area Method

(𝑨𝑨𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏 + 𝑨𝑨𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐) (𝟔𝟔 𝒇𝒇𝒇𝒇𝟐𝟐 + 𝟐𝟐𝟐𝟐 𝒇𝒇𝒇𝒇𝟐𝟐)

(𝑨𝑨𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏 + 𝑨𝑨𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐𝟐) (𝟐𝟐𝟐𝟐 𝒇𝒇𝒇𝒇𝟐𝟐 + 𝟓𝟓 𝒇𝒇𝒇𝒇𝟐𝟐)

Fill for shrinkage = 63.0 * 0.1 = 6.3 yd3

Volume fill 1 = adjusted for shrinkage = 37.0 yd

Volume fill 2 = adjusted for shrinkage = 83.3 yd

A thorough understanding of both estimated and actual costs of

2.2 OWNERSHIP COST

2.2.1 INITIAL COST

Depreciation represents the decline in market value of a piece of

On April 1, 2011, Company A purchased an equipment at the cost of

Depreciation for 2011

Depreciation for 2012

Depreciation for 2013

2.2.2.2 Sum-of-Years’-Digits Depreciation

Calculation of depreciation expense

Sum of the years' digits for n years

Sum of the years' digits for 500 years

2.2.2.3 Declining Balance Depreciation

Depreciation rate for double declining balance method

Depreciation rate for 150% declining balance method

Depreciation rate for double declining balance method

Depreciation for 2011

Depreciation for 2012

Depreciation for 2013

(*1) $140,000 x 40% x 9/12 = $42,000

--> Depreciation for 2015 is $1,168 to keep book value same as

Depreciation rate for 150% declining balance method

Depreciation for 2011

Depreciation for 2012

Depreciation for 2013

(*1) $140,000 x 30% x 9/12 = $31,500

--> Depreciation for 2016 is $6,051 to keep book value same as

Straight line depreciation

(*1) Depreciation stops when accumulated depreciation reaches

150% declining balance depreciation

(*2) Depreciation stops when accumulated depreciation reaches

the average value is :

140 2.5 4.0 5.3

220 5.0 6.8 9.4

300 6.5 8.8 11.8

LUBRICANTS-LUBE OILS, FILTERS,

REPLACEMENT OF HIGH-WEAR ITEMS

Depreciation—Consumption of the Asset

𝟕𝟕𝟕𝟕,𝟗𝟗𝟗𝟗𝟗𝟗/𝒚𝒚𝒚𝒚− 𝟏𝟏𝟏𝟏,𝟎𝟎𝟎𝟎𝟎𝟎 /𝐲𝐲𝐲𝐲

Average annual investment method A second approach to calculating

Straight-line depreciation part

Initial cost $300,000

Taxes, Insurance, and Storage

Total percentage rate for taxes, insurance, and storage = 1% + 2% +

Quantity consumed, gph (gallons per hour) =

ℎ𝑝𝑝∗𝑓𝑓∗ 0.006 𝑙𝑙𝑙𝑙/ℎ𝑝𝑝−ℎ𝑟𝑟 𝑐𝑐

Percentage of total cost (%)

Equipment manufacturers' supply tables of average repair costs based

Considering the time value of money:

Tire repair cost is the same $1.235/hr.