Procurement and Selection of Construction

Machinery
 Sequence
Part – A
Procurement
•Purchasing
• Renting
•Renting with an option to purchase at a later stage

Part - B
•Sel of Machines
•Factors Affecting Sel of Machines
Part - A
 Procurement

•Purchasing
• Renting
•Renting with an option to purchase at a later stage
 Adv of Purchasing

• More eco, if the eqpt is used sufficiently and efficiently

• More likely to be aval for use, when needed

• Because ownership assures better maint and care, the

purchased eqpt will be kept in better mech condition

 Disadv of Purchasing
• May be more expensive than renting
• Purchase of eqpt may req a substantial investment of money that
may be needed for other purposes
• Ownership of eqpt may influence a contractor to cont using an
obsolete eqpt
• Work restriction, Ownership of eqpt designed primarily for a given
type of work may induce a contractor to cont doing that type of work,
whereas other works requiring different types of eqpt might be aval at
a higher profit
• Ownership of eqpt might influence a contractor to cont using the eqpt
beyond its eco life
 Renting

Reasons

• Rising cost of purchasing eqpt

• Unpredictable mkt
 Renting
Benefits
• Avoid the initial purchase cost
• Avoids the upfront cost (Taxs, Freight, Handling charges, Insurance
while in transit)
• Less maintenance and repair costs
• Shielding from market fluctuation (Rising / Sinking cost of eqpt)
• No depreciation costs ( As value cont to depreciate, it make more
difficult to recover the initial investment)
• Solve equipment storage issues (Eqpt not stored properly will
depreciate faster)
• Transportation logistics
Part - B
 Sel of Machines

•Sel of Machines
•Factors Affecting Sel of Machines
 Sel of Machines

•Machines which can finish the proj on time

•Assure high quality

•Provide the lowest cost

•Sel machines suited to the production

 Factors Affecting Sel of Machines

•Scale of proj and proj method

•Nature of op
•Haul dist
•Gradient of haul rd
•Haul machines and loading machines
•Traffic ability
•Type of soil
•Weather condition
•Economic factors
 Scale of Proj
Annual production
Size of machine
(Earth vol)

More than 300,000 cum Large machines

10,000 to 300,000 cum Med machines

Small, multi purpose

Less than 10,000 cum
machines
 Nature of Op
C Ex Lo Exc Exca H S Co Le Dit Br
Type of op
l c a av va a p m v c e
e a d at tin u r p e h a
a v i in g l e a l i k
Type of Const r a n g and i a c i n i
Eqpt i t g and ha n d t n g n
n i L uli g i i g g
g n o ng n n
g a g g
di
n
g
 Nature of Op
Types of op
Exc
Type of Exc
Ex ava
Const Eqpt Cl ava Spr Co Br
ca Loa ting Le Dit
ea ting Hau ea mp ea
va din and vel chi
rin and ling din acti kin
tin g Loa ing ng
g Hau g ng g
g din
ling
g

Wh Loader                  

Motor Scraper                     

Dump Trk                     

Motor Grader                    
 Haul Dist

• It is the dist material is moved by machine

• Among the reasons for sel machines, haul dist is

comparatively imp

• Wh loader is used for ld and carry op over a long haul dist

• Gen the relation b/n haul dist and machines is as shown

 Haul Dist and Machines

BULLDOZER

WH LOADER

TOWED SCRAPER

MOTOR SCRAPER

DUMP TRK

200 600 1000 2000

0 400 800 1500 2500
 Gradient of Haul Dist

• When the haul machine travels up a slope, the travel

resistance inc

• When the haul machine travels down a slope, the op may

become dangerous

• Operating efficiency reduces

 Gradient of Haul Dist
Machine Max Gde

Motor Scraper 5 - 8%

Dump Truck 10 - 15%

Towed Scraper 15 - 25%

Bull Dozer 35 - 40%

 Haul Machines and Loading Machines
Matching Between Dump Trk and Loader

LOADER DUMP TRK GUIDE TO SELECT

Dumping clearance (H1) Dump body ht (H2) H1 > H2+150 mm

Dumping reach(L1) Dump body width (L2) L1 > L2 /2 – 300

Bucket width(B1) Dump body length(B2) B1 < B2 - 300

 Trafficability
•Trafficability is the cap of gr to bear traffic and will permit
cont mov of any or all types of traffic
•Traffic ability is divided into three lvls:
o Machine cannot pass
o Machine can pass once or twice
o Machine can pass 50 or more times
 Trafficability

Const Machine Cone Index (Kg/cm2)

Swamp Bulldozer less than 4

Bulldozer 5-7
Towed Scraper 7 - 10
Motor Scraper 10 - 13
Dump Truck more than 15
Man 3-4
 Type of Soil

• The condition or characteristics of the soil have great

influence on the efficiency and costs of a mechanized proj

• It is also an imp factor in deciding the method of op

 Weather Condition
• One of the uncertainties with projs is weather
• Rain can cause the gr conditions to deteriorate
• Depending on the timing of the proj , it may be nec to consider
the eff of weather on gr conditions
• Whereas it may be possible to use wh type machines with no
problem during the dry season, these cannot be used efficiently
in the rainy season
• If the proj extends into the rainy season, there is no choice but
to use the less efficient crawler type machines for the whole proj
 Economic Factors
• Along with tech factors the sel of machines depends largely
upon the eco factor too. The const eqpt are too costly and
while sel these for any proj, eco factors must be kept in mind
• Unless, it can be estb in adv that a unit of eqpt will earn more
than the cost, it should not be purchased
• A contractor may own a type of eqpt, but considering the
probable hvy depreciation for the proposed eqpt and the
uncertainly that it can be used on future proj
 Eqpt Costs
• Exp incurred on const eqpt occupy large proportion of the
over all const cost

• There are several methods of determining the probable cost

of owning and op const eqpt. These costs cannot be exactly
calc but they can only be est
 Eqpt Costs

Op Costs Owning Costs

Fuel Depreciation

Lubricants Interests

Repairs Insurances

Spec items Taxes

Op’s wages
 Eqpt Costs
Owning Costs
The eqpt owning cost is the expenses req for the purchase and
possession of the eqpt as a property of its owner and consists
of:-
• Interests
• Depreciation
• Insurance
• Taxes
 Eqpt Costs
Op Costs
• Fuel
• Lubricants, grease or filters etc
• Tires in case of wheeled eqpt
• Repairs
• Spec items
• Ripper Pts
• Grader cutting edges
• Any consumable parts
• Op’s wages
 Depreciation

The decline in market value of a piece of eqpt due to age,

wear, deteriorating and obsolescence. Depreciation can result
from physical deterioration occurring from wear and tear of
the machine
 Eqpt Life

Const eqpt life can be defined in three ways

• Physical life
Age at which machine worn out and can no longer
reliably produce
• Profit Life
The life over which the eqpt can earn a profit
• Economic Life
The pd that maximizes the profit over the eqpt life
THANK YOU