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STUDENT SEMESTER PROJECT TP2&TP3

ECNOMIC DECISION ANALYSES FOR VARIOUS OPTION OF RAEDY MIX CONCRETE

Adviser Engr Zia Ud Din


Members Engr Saif-Ur-Rehman Engr Mohammad Usman Akram Engr Abdul Hannan Engr Naveed Ahmed Khan

Introduction Scope of ready mix concrete Comparisons between various options Material required for RMC Equipment required for RMC Merits and demerits for RMC

Estimate
Conclusion

Project report

Well lets have a brief view of the above contents .

INTRODUCTION
Ready-mix concrete (RMC) is a ready-to-use material, with predetermined mixture of cement, sand, aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or as per specifications of the customer, at a centrally located batching plant . It is delivered to a worksite, often in truck mixers capable of mixing the ingredients of the concrete between routes or just before delivery of the batch. This results in a precise mixture, allowing specialty concrete mixtures to be developed and implemented on construction sites.

HISTORY
Ready mix concrete was first patented in Germany in 1903, its commercial delivery was not possible due to lack of transportation needs. The first commercial delivery was made in Baltimore USA in 1913.The first revolving drum type transit In 1931, a RMC plant was set up .mixer was developed in 1926 for the construction of Heathrow airport, London. In the mid 90s there were about 1100 RMC plants in UK consuming about 45% of cement produced in that country. In Europe in 1997 there were 5850 companies producing a total of 305 million In USA by 1990, around 72% (more than 2/3rdof .cusecs of RMC cement produced was being used by various RMC plants. In Japan first RMC plant was set up in 1949. By 1992 Japan was the then largest producer of RMC, producing 18196 million tons of concrete. In many other countries of the world including some of the developing countries like Taiwan, Malaysia etc., RMC .industry is well developed.

SCOPE OF READY MIX CONCRETE


In following places ready mix concrete can be used Major concerting projects like dams, roads, bridges ,tunnels, canals etc. For concreting in congested areas where storage of materials is not possible. Sites where intensity of traffic makes problem. When supervisor and labor staff is less. To reduce the time required for construction etc. Huge industrial and residential projects.

MATERIALS REQUIRED FOR RMC


Admixture Aggregate Cement water

MERITS OF R. M. C.
Better quality concrete is produced. Elimination of storage space for basic materials at site. Elimination of Procurement / Hiring of plant and machinery. Wastage of basic materials is avoided. Labor associated with production of concrete is eliminated. Time required is greatly reduced Noise and dust pollution at site is reduced. Organization at site is more streamlined. Durable& Affordable No storage space required either for raw materials or for the mix Lower labor and supervisory cost No wastage at site/Environment friendly Availability of concrete of any grade

DEMERITS OF R. M. C.
Need huge initial investment. Not affordable for small projects (small quantity of concrete) Needs effective transportation system from R.M.C to site. Traffic jam or failure of vehicle creates problem if proper dose of retarder is not given. Labors should be ready on site to cast the concrete in position to vibrate it and compact it.

CONCLUSION
Ready Mix Concrete plant is a modern technique of production of concrete in large quantities away from the actual site of placing. It is very useful in cities where demand of concrete is very high and construction sites are in congested areas where mixing on site is not possible. It is suitable for projects like Dam, Roads, Bridges, commercial complex, Malls and all types of mass construction where time limit plays a vital role and where demand is huge.

THE PROJECT
Only concrete has been selected Concrete=36,000 m
Time one year

Alternatives
Two alternatives
To bargain RMC from market. To invest and purchase own plant and machinery.

Estimate and comparison


Well rates of rmc in Pakistan very from city to city because of difference in the rate of material availably we select Islamabad city , and for accurate rates we stat the rate from the (PAKISTAN INSTITUTE OF COST AND CONTACT) .

Pakistan institute of cost & contracts

Rates of November for Islamabad

COARSE AGGREGATES

PICC Code

Description

Unit Avg Rates(Rs.)


M M 971.00 900.00

030501 Coarse Aggregates 030501.01.20 12mm ( 1/2" ) & down in size (Margallah) 030501.01.21 19mm ( 3/4" ) & down in size (Margallah)

FINE AGGREGATES
PICC Code
030510 030510.01

Description
Fine Aggregates Sand

Unit Avg Rates(Rs.)

030510.01.01 Coarse Sand (Local) 030510.01.02 Fine Sand (Local) 030510.01.10 Coarse Sand (Lawrencepur)

M M M

847.00 777.00 918.06

CEMENT
PICC Code
030520 Cement

Description

Unit Avg Rates(Rs.)

030520.01

Ordinary Portland Cement (grey)

Bag

402.50

030520.02

Ordinary Portland Cement (white)

Bag

700.00

030520.03

Sulphate Resisting Cement

Bag

414.50

ADMIXTURES
PICC Code
030535 030535.10

Description
Concrete Admixtures Retarders Admixtures

Unit

Avg Rates(Rs.)

030535.10.10 Conmix P4R 030535.30 Water Reducing Admixtures

Ltr

42.50

030535.30.10 Ultra Plast 300


030535.30.15 Ultra Super Plast 437 030535.40 Early Strength Admixtures

Ltr.
Ltr.

39.00
45.00

030535.40.10 Conmix SP4 030535.70 Curing Compounds

Ltr

90.00

030535.70.10 Concure 90

Ltr

57.50

LABOUR
PICC Code
500510.04

Description
Construction Foreman

Unit

Avg Rates(Rs.)

500510.04.05

General Foreman

Hour

128.00

500510.04.15

Foreman (Earth Work, Concrete, Steel, etc.)

Hour

82.00

Unskilled Labour
PICC Code
500530

Description
Un Skilled Labour

Unit

Avg Rates(Rs.)

500530.01
500530.02 500530.10 500530.20

Labour
Water Man Electrician Helper Helper

Hour
Hour Hour Hour

50.00
50.00 48.00 48.00

PLANTS RATE PER HOUR


PICC Code
510501

Description
Plants (Rental)

Unit

Avg Rates(Rs.)

510501.10

Concrete Batching Plant (Computerized)


Concrete Batching Plant Capacity 30 M/Hour Concrete Batching Plant Capacity 50 M/Hour Hour 1700.00

510501.10.10

510501.10.30

Hour

2050.00

CONSTRUCTION EQUIPMENT

FRONT END LOADER


PICC Code
510502 510502.02

Description
Construction Equipment (Rental) Front End Loader

Unit

Avg Rates(Rs.)

510502.02.01 510502.02.03 510502.02.05

Front End Loader 1.5 M Front End Loader 2.5 M Front End Loader 3.00 M

Hour Hour Hour

1550.02 1792.72 2132.73

POWER GENERATORS
PICC Code 510502.09 510502.09.01 510502.09.02 Description Power Generators 150 KVA 250 KVA Hour Hour 2276.96 3490.44 Unit Avg Rates(Rs.)

510502.10

Lift Machine

Hour

325.00

TRANSIT MIXERS
PICC Code
510502.12 510502.12.01

Description
Transit Mixers Capacity 6 M

Unit

Avg Rates(Rs.)

Hour

1695.41

510502.12.02

Capacity 4 m

Hour

1550.02

510502.12.03

Daff (4 m)

Hour

1550.02

DIESEL DELIVERY TRUCK


PICC Code Description Unit Avg Rates(Rs.)

510502.13

Diesel Delivery Truck

510502.13.06

Diesel Delivery Truck with 100 mm (4 ) diameter Pump, 6000 Liters

Hour

485.39

510502.13.10

Diesel Delivery Truck with 100 Hour mm (4") Diameter Pump, 10,000 Liters (Capacity)

713.67

CONCRETE PUMP
PICC Code
510502.25

Description
Concrete Pump

Unit

Avg Rates(Rs.)

510502.25.05

Mobile 80 M / Hour

Hour

1595.00

510502.25.10

Static 45 M / Hour

Hour

1200.00

READY MIX CONCRETE RATE OF


ISLAMABAD

ON GROUND UP TO 6 M HEIGHT
PICC Code Item Description
Un Material Labour Machinery Overhead Composite & Profit it (Rs) (Rs) (Rs) (Rs) (Rs)

033005.04 M 2177.80 515.19 194.59 577.52 3465.09

033005.04.01 Nominal Mix Ratio. 1 : 7 : 20

033005.04.04 Nominal Mix Ratio. 1 : 6 : 18

M 2260.46 515.19
M 2476.47 515.19 M 2660.43 515.19

194.59
194.59 194.59

594.05
637.25 674.04

3564.28
3823.49 4044.25

033005.04.08 Nominal Mix Ratio. 1 : 6 : 12

033005.04.12 Nominal Mix Ratio. 1 : 5 : 10 Nominal Mix Ratio. 1 : 4 : 8

033005.04.16

M 2927.28 515.19

194.59

727.41

4364.46

PICC Code

Item Description

Overhead Composite Material Labour Machinery & Profit Unit (Rs) (Rs) (Rs) (Rs) (Rs)

033005.04 Nominal Mix Ratio. 1 : .20 3:6 033005.04 Nominal Mix Ratio. 1 : .24 2:6 033005.04 Nominal Mix Ratio. 1 : .28 2:4 033005.04 Nominal Mix Ratio. 1 : .32 3:3 033005.04 Nominal Mix Ratio. 1 : .36 2:3 033005.04 Nominal Mix Ratio. 1 : .40 1.5 : 3 033005.04 Nominal Mix Ratio. 1 : .44 1.5 : 1.5 033005.04 Nominal Mix Ratio. 1 : .48 1:2

M 3360.60 515.19

194.59

814.08

4884.45

M 3572.53 515.19
M 4144.11 515.19

194.59
194.59

856.46
970.78

5138.77
5824.66

M 4115.46 515.19
M 4578.87 515.19 M 4865.94 515.19 M 6110.14 515.19 M 6134.25 515.19

194.59

965.05

5790.28
6346.37 6690.86 8183.89 8212.82

194.59 1057.73 194.59 1115.14 194.59 1363.98 194.59 1368.80

Own plant and machinery cost


Batching plant $46,933 = 4,200,000 PRs Calibration 25,000 Land 1200000PRs/ per year Transit mixer $44,698 =4000000*2 =8,000,000 PRs Power generator $10,057 =1,073,880 PRs Front end loader $13,410= 1,200,000 PRs Annual Maintenance 2% = (4200000+8000000+1073880+1200000)*.02 = 289478 PRs Material Cost and operational cost (Concrete, diesel, Labour etc.) = 4144 PRs/ m

Economic theme
We assume there is no inflation for the whole year Life of project one year Use full life of plant and machines 5 year Gds apply MACRS

Using Future Worth analysis


Cost= 4200000 (F/P, 12%,1) + 25000 (F/P,12%,1) +(4144*36000) (F/P, 12%,1) + 289478 (F/A,12%,1) +1200000(F/A, 12%,1)
= 173,307,558 PRs

Deprecation
Book Value after 1 year By using MACRS depreciation (20% for 1st year) B.V after 1 year for Batching Plant = 4200000(4200000*.20) = 3360000 PRs B.V after 1 year for Two Transit mixers =8000000(8000000*.20) = 6400000 PRs B.V after 1 year for Power generator = (1,073,880(1073880*.20) = 859104 PRs B.V after 1 year for Front end loader= (1,200,000(1,200,000*.20) = 960000 PRs

Ready mix concrete from market


From table we get its cost per m = 5824.66 PRs Total Cost ( 5824.66 * 36000) = 209687760 Future worth ( without considering inflation) = P(F/P, 12%, 1) = 209687760(1.120) =234850291 PRs