Equipment Planning for Projects

Types of Construction Equipments

 Equipment Procurement

•Equipment resources play a major role

in any construction activity
•Provide the right equipment at the right
time and place so the work can be
accomplished at the lowest cost that
yields maximum production
•Understanding of the costs associated
with a particular piece of equipment
 Procurement Essentials
1. The Equipment should be Standard Equipment if
possible.
2. It should give the best service at low cost.
3. Its unit cost of production should be moderate.
4. It should be easily repairable with low shutdown
period
5. It should be easily disposed off.
6. It should suit the majority of the requirements of the
job.
7. It should be capable of doing more than one function.
8. It should be of moderate size, as they have fewer
moving parts and have low working cost.
 Contd….
• Considering the above, one can either Purchase
or Hire the Equipment.
• If the Equipment is to be used frequently and for
a long duration of time on the Project, it proves
to be economical to Purchase the Equipment.
• On the contrary, if the Equipment is to be used
occasionally and for a short duration of time on
the Project, it proves to be economical to get it
Hired.
 Specific Objectives of Procurement

• Minimize ownership and operating cost

• Increase availability
• Increase utilization
 Equipment Selection

• One of the most important tasks in the pre-

construction planing process is equipment
selection. There are many variables to
consider when selecting equipment.
• Following factors should be considered at the
time of Selecting Construction Equipment:
 Equipment Cost

• The money a company spends for equipment

is an investment; which must be recovered as
the machine is utilized on projects.
 Ownership Cost

• Depreciation (Purchase expense)

• Insurance
• Taxes
• Salvage value
 Operating Cost

• Consumables - Fuel, Oil, Grease & filters (FOG)

• Repair
• Maintenance
• Tires or tracks
• High wear items - cutting edges, bucket teeth,
truck body lining, ripper tips
 Weight Limit
• Tires are about 35% of a truck’s operating cost
• “Overload a truck and you abuse the tires”
 Summary

• Right equipment, right time to accomplish

work at lowest cost
• Ownership costs decrease with usage
• Operating costs increase with usage