BUILT-UP RATES AND

QUANTIFYING OF
MATERIAL

EXCAVATION WORK

© NURUL ASRA ABD. RAHMAN, FSPU, UiTM

WORK INVOLVE IN EXCAVATION
1. Excavation
2. Removal / disposal
3. Filling

© NURUL ASRA ABD. RAHMAN, FSPU, UiTM

1. Excavation by hand
by machine
2. Removal / disposal by hand
by machine
3. Filling material on site
Hardcore

© NURUL ASRA ABD. RAHMAN, FSPU, UiTM

 Example 1 - Excavation (by hand)
Excavation pit to receive column starting from reduced
level maximum depth not exceeding 2.00m. (m³)
DATA: unskilled labour RM40.00/day
Labour constant hour/m3 4.50hour/m3
Planting and strutting RM3.00/m3
Overhead & profit 15%

TOTAL COST = LABOUR COST + PROFIT &

OVERHEAD
© NURUL ASRA ABD. RAHMAN, FSPU, UiTM
 ANSWER:
Labour rates for excavate:
= 4.50hour/m³ x RM40.00/8hour = RM 22.50/m³

Add: planting & strutting (say RM3.00/m3) = RM 3.00/m³

= RM 25.50/m³

Add: 15% profit & overhead = RM 3.83

= RM 29.33/m³

© NURUL ASRA ABD. RAHMAN, FSPU, UiTM

Example 2 - Excavation (by machine-owned)
Excavation oversite to reduce level maximum depth not exceeding
1.00m. (m³)
DATA: Excavator (1/2m³ bucket)
Initial cost: RM150,000.00
Useful life: 5 years
Interest rate: 10%
Insurance 5%
Repair & maintenance 10%
Transport to the site 5%
Scrap value at end of life: RM8,000.00
Diesel: 6 litres/hour @ RM1.70/litre
Lubrication oil: 14 litres/week @ RM20.00/litre
Operator: RM50.00/day
(Assume; excavation work only done 200 days/year)

TOTAL COST = CAPITAL COST + OPERATING COST +

PROFIT & OVERHEAD
 ANSWER:
A) Capital Cost
Excavator (1/2 m3 bucket) output 12m3/hr
Initial cost = RM150,000.00
Interest 10% p.a @ 5 years = RM 75,000.00
Insurance 5% p.a @ 5 years = RM 37,500.00
Repair & maintenance (10%) = RM 15,000.00
Transport to the site = RM 7,000.00
RM284,500.00
(LESS) scrap value = RM 8,000.00
= RM276,500.00
Capital cost per year
= RM276,500.00 / 5 years = RM 55,300.00/year
Assume excavator works 200days/year (1600hours)
Capital cost of excavator/hour
= RM55,300.00/1600hours = RM 34.56/hour
 ANSWER:
B) Operating Cost
Cost of driver = RM 50.00/day
Cost of diesel (6lit/hr @ 8hr @ RM1.70/lit) = RM 81.60/day
Cost of lubrication
(14lit/week ÷ 7 days x RM20.00/lit) = RM 40.00/day
= RM171.60/day
Operating cost per hour
(RM171.60/8 hours) = RM 21.45/hour

Excavator (1/2m3 bucket) output 12m3/hr

Total cost of 1/2m3 excavator/hour
=(A) RM34.56 + (B) RM21.45 = RM 56.01/hour
Therefore, cost of excavation per m3
RM56.01hour/12m3/hour = RM 4.67/m3
 ANSWER:
C) Profit & Overhead
Add: 15% profit & overhead
15% x RM4.67/m3 = RM 0.70/m3

Total cost of excavation per m3 = RM 5.37/m3

TOTAL COST = CAPITAL COST + OPERATING COST +

PROFIT & OVERHEAD
Example 3 - Excavation (by machine-rental)
Excavate trench to receive foundation starting from reduced
level maximum depth not exceeding 2.00 meters (m³)
DATA: Excavator (3/8m³ bucket) output 9m3/hour
Rental cost (included transport to site): RM300.00/day
Operator: RM50.00/day
Diesel: 5 litres/hour @ RM1.70/litre
Lubrication oil: 12 litres/week @ RM20.00/litre

TOTAL COST = CAPITAL COST + OPERATING COST +

PROFIT & OVERHEAD
 ANSWER:
A) Rental
Rental of excavator per hour
RM300.00/8hour = RM 37.50/hour
B) Operating Cost
i. Operator = RM 50.00/day
ii. Cost of diesel
5lit/hr x 8hrs x RM1.70/lit = RM 68.00/day
iii. Cost of lubrication oil
12lit/week x RM20.00/litre
7 days = RM 34.29/day
Operating cost per day RM 152.29/day

Operating cost per hour RM152.29/8hours = RM 19.04/hour

(A +B) RM 56.54/hour
 ANSWER:
Excavator (3/8m3 bucket) output 9m3/hr
=Total cost of 3/8m3 excavator/hour = RM 56.54/hour

Therefore, cost of excavation per m3

=RM56.54/hour ÷ 9m3 = RM 6.28/m3

C) Profit & Overhead

Add; 15% profit & overhead = RM 0.94/m3
Total cost of excavation per m3 RM 7.22/m3

TOTAL COST = CAPITAL COST + OPERATING COST +

PROFIT & OVERHEAD
Exercise 1 - Excavation (by machine-owned)
Excavation trench for depth not exceeding 2.00m. (m³)
DATA: Excavator (1/2m³ bucket)
Initial cost: RM185,000.00
Useful life: 6 years
Interest rate: 8%
Insurance 5%
Repair & maintenance 8%
Transport to the site 5%
Scrap value at end of life: RM12,000.00
Diesel: 7 litres/hour @ RM2.00/litre
Lubrication oil: 16 litres/week @ RM30.00/litre
Operator: RM70.00/day
(Assume; excavation work only done 200 days/year)
Exercise 2 - Excavation (by machine-rental)
Excavate pit to receive foundation maximum depth not
exceeding 1.50 meters (m³)
DATA: Excavator (3/8m³ bucket) output 9m3/hour
Rental cost (included transport to site): RM500.00
Operator: RM70.00/day
Diesel: 7 litres/hour @ RM2.00/litre
Lubrication oil: 16 litres/week @ RM30.00/litre