This document discusses equipment management and cost control methods for construction projects. It covers topics such as equipment selection, planning, maintenance, safety management, and cost control. The key aspects of equipment management include selecting the right equipment for the job, utilizing equipment economically through scheduling, implementing preventative maintenance programs, and controlling costs through factors such as depreciation, fuel consumption, repairs, and downtime. Automation technologies are also discussed as an emerging trend to increase efficiency in construction equipment.

1. Equipment
management and cost
controlling methods

2. Overview
Introduction on Construction
Equipment
Equipment Management in
Construction Projects
Management Programme
Maintenance and Safety management
Equipment requirement for
construction project
Planning of Equipment
Selection of Equipment
Cost Control of Equipment
Depreciation on Equipment
Conventional construction
methods
Mechanized methods
Advanced Mechanized
methods
Types of construction
project
Types of construction
equipment
Safety Management
Safety measures

4. INTRODUCTION
Construction equipment means the equipment, machinery,
structures, scaffolding, materials, tools, supplies and systems
owned, rented or leased by contractor or its Sub-contractors for
use in Accomplishing the work.
Basic operations involved in the construction of any project are
Excavation, Digging of large quantities of earth, Moving them to
fairly long distances, Placement, Compacting, Leveling, Dozing,
Grading, Hauling etc

5. In General
Based on
Automation
Based on
Standardization
INTERMITTENT
TYPE
CONTINUOUS TYPE
MIXED TYPE
MANUALLY
OPERATED
SEMI-
AUTOMATIC
FULLY
AUTOMATIC
STANDARD
SPECIAL
Classification of Construction Equipment

6. Automation and Robotics is the hot new trend in many different industries.
In Construction it is broad, encompassing all the stages of construction life
from initial planning and design, through construction of the facility, its
operation and maintenance, to the eventual dismantling and recycling of
buildings and engineering structures.

7. Automation is an excellent solution for builders to increase Operational Efficiency and to Cut
Down On Costs.
EXAMPLES :
AUTONOMOUS MACHINES on the Construction Site.
Self driving Machine that can be used to transport heavy items
Robotic Technology solutions and Sensors that enable equipment to operate without a driver in
the cabin.
DRONES to survey working Areas and Employees
ROBOTICS in Concrete works:
Control Systems and robotics are being used to Mix Concrete, Lay the cement, Polish Floors, &
Remove Surface water.
VIRTUAL REALITY during project planning and Training:
Virtual reality is an important form of automation because it uses programmed 3D scans
AUTOMATION IMPORTANCE & UNIQUE FEATURES

8. EQUIPMENT MANAGEMENT
 Knowledge of factors governing selection of
equipment, estimation of cost of equipment,
Productivity.
 Planning and scheduling for economic
equipment utilization
 Optimum equipment replacement time

9. PLANNING MUST INCLUDE -
Equipment selection ,Utilization and
replacement
• To be economically
competitive, contractors
equipment must be
competitive both mechanically
and technologically
• Plan and schedule activities
for economic utilization of
equipment
• Old machines requiring costly
repairs cannot compete
successfully with new
equipment’s lower repair cost
Points to be kept in mind
Purchase cost
Depreciation
Cost of investment
Taxes, insurance, storage
Fuel, lubrication, filter
Operative wages
Maintenance and repair
Mobilization cost

10. General points
• In some cases,value of equipment may be greater than the
contractor value – used over a series of jobs.
• Not possible to own all types and sizes of equipment
Questions to be asked?
Project size justify purchasing?
Disposability of equipment?
Status of current equipment
capability?

11. • Commonly used in all
type of project
• Used only in special
cases
• Manufactured
commonly and easily
available from all
dealers
• Special order has to be
placed and manufactured
according to
requirement`
• Initial investment is
low
• Initial investment is high
• Resale price is high • Resale price is low
• Delivery is easy & fast,
Repairs & spare parts
available
• Delivery is difficult and
delayed sometimes
• Rent is low & • Rent is high, cant be
STANDARD Vs SPECIAL EQUIPMENT

12. unit cost of production (cost per m3 ) =
𝑐𝑜𝑠𝑡 𝑜𝑓 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝑖𝑛 𝑅𝑠/ℎ𝑟
𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 𝑜𝑓 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝑖𝑛 𝑚3
/ℎ𝑟
REQUIRED JOB PRODUCTIVILTY
• Best choice will be one which completes according to
specifications, within time allotted at lowest possible
cost
• Equipment should also meet constraints at the jobsite
Equipment selection factors
• Specific construction operation
• Job specifications (contract documents)
• Project time schedule
• Job site conditions(underfoot conditions, steep grade, working space
limitations, site access)
• Job site location (altitude, temperature, wind, rain )
• Balancing interdependent equipment
• Mobility required
• versatility

13. MAINTENANCE PROGRAM
 Unscheduled maintenance program
 Planned or preventive maintenance program
The fundamental objectives of a good planned maintenance program are as follows
1. Eliminate unnecessary maintenance
2. Reduce work cost
3. Reduce overall maintenance cost
4. Reduce repair parts inventory
5. Reduce lost production caused by failure during normal shift
6. Increase productivity
7. Extend the operating life of construction equipment
8. Increase overall profit generated by equipment
Successful equipment management is found on aggressive preventive maintenance.

14. Availability
The equipment manager can use some simple statistical tools to calculate the availability
of different types of equipment in the fleet for purpose of scheduling maintenance and
evaluating cost.
Downtime : The period of time during which equipment cannot be operated
Active downtime : The period of time spent in performing inspection ,testing, repair ,
replacement and related support activities
Delay downtime : The period of equipment inoperability attributed to the administration of
maintenance, which include periods due to unavailability of tools, test equipment and
spare parts as well as delays not directly attributable to active corrective or preventive
maintenance action
Uptime : the period of time during which equipment can be operated

15. HEAVY CONSTRUCTION EQUIPMENT SITE SAFETY CONSIDERATIONS
All employees who operate construction equipment should be trained in
the proper procedures of the equipment and should be given a physical
examination to ensure that they can physically operate the equipment.
At a minimum the examination should require passing the following
1. Proper vision with or without eyeglasses
2. ability to distinguish colors
3. Adequate hearing
4. No physical defects to impair performance
5. No proneness seizures
6. Sufficient strength ,endurance ,agility ,coordination and reaction to meet

17. BASIC CONCEPTS RELATED TO EQUIPMENT COST
DEPRECIATIION Gradual loss in the value of the
property due to its use ,life ,wear ,tear and decay.
Value of the building decreases gradually up to utility
period due to depreciation.
A certain % of total cost may be allowed as D to
determine present value.
Present value of property Initial cost- Total amount of
D
Annual Depreciation is the annual decrease in value
of property.
Two types of Depreciation: Physical (wear & tear )
Functional (Obsolescence)
Methods to calculate :
1. Straight line method
2. Constant percentage method
3. Sinking fund method
4. Sum of years Digit method
5. Service output method
SCRAP VALUE/SALVAGE VALUE
Salvage value or scrap value (S) is the value of
equipment at end of its useful life
It is usually taken as 10% of initial cost (book value)
INVESTMENT COST
Money spent on the purchase of equipment is
investment cost.
It includes taxes, insurance,storage etc.and has to be
recovered as interest on money from which equipment
is purchased.
Usually taken as 10% to 15% of average investment.
If S=0
Average Investment =
(1+𝑛)
2𝑛
* P
If S 0
Average Investment =
𝑆 𝑛−1 +𝑃(𝑛+1)
2𝑛

18. MAINTENANCE AND REPAIR COST
Depends upon quality and quantity of the work done.
Taken as 10% of the Annual Depreciation
OPERATING COST
Includes the following
a. Repair charges: Taken as % of the total cost of machine
b. Depreciation on tyre & tube : Hourly repair cost is taken as 15% of
Hourly Depreciation costs
c. Labour charges : wages and allowances paid to workers along with
effective cost of camp facilities ,hazard allowance & non-working period
in flood season
d. Fuel charge : Adopted for engines petrol or Diesel type.
Quantity of Diesel : = (0.27 * ) liters /HP/hr
Quantity of petrol = (0.30 * ) liters/HP/hr
Quantity of Lubricating oil
=
𝐻𝑃 ∗ ∗0.0027
0.74
+
𝐶
5𝑡
Where
HP = HORSE POWER RATE

19. Optimum fuel consumption =
0.5∗𝐵𝐻𝑃∗𝐶𝑛
∗
4
.
5
8.26
𝑙𝑖𝑡𝑟𝑒𝑠/ℎ𝑟
e. Repair charges:
These are handling charges for the particular
machineand analysed based on hourly rate.
Hourly cost, WORKER =
𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑠𝑎𝑙𝑎𝑟𝑦 ∗12
𝐴𝑛𝑛𝑢𝑎𝑙 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 𝑐𝑜𝑛𝑠𝑡𝑟𝑢𝑐𝑡𝑖𝑜𝑛 ℎ𝑜𝑢𝑟𝑠 𝑜𝑓 𝑚𝑎𝑐ℎ𝑖𝑛𝑒
DOWNTIME COST
It is the time when machine is
not working because of repairs or
adjustments.
• Defined as loss in value
of an equipment due to
improvement in Designs
of equipment.
• If a new equipment
reduce production cost
by 10 % when
compared with old
existing equipment, there
will be less value of
existing equipment by
10% This loss is
OBSOLESCENCE

20. BOOK VALUE
The value of asset recorded
on the accounting books of
the firm at a given time
period. It is calculated at the
end of each year equals the
initial cost less the total
depreciation amount till that
year.
USEFUL LIFE
Represents the
expected number of
years the asset is
useful in terms of
generating revenue. It
is also known as
depreciable life.

21. Tot equip
cost
Ownership
cost
Initial cost
Depreciation
Straight line method
Sum of year digit method
Sinking fund method
Declining balance method
Investment cost
Insurance tax and storage cost
Operating
cost
Maintenance & Repair cost
Tire cost
Consumable cost
Mobilization & demobilization cost
Equip operator cost
Special items cost

22. Mechanised methods : The process of changing from working largely or
exclusively by hand or with animal to doing that work with machinery.
NEED FOR MECHANIZATION IN CONSTRUCTION INDUSTRY
a. The work can be done speedily
b. The work can be done in time
c. Large quantity of materials can be handled so the size of the project
can be increased
d. The complex projects involving high grade material.
e. High quality standard can be maintained.
f. Time schedule can be kept.
g. Optimum use of material ,man power and finance
h. Due to shortage of skilled and efficient man power.

24. Residential Building
TYPES OF CONSTRUCTION PROJECTS

25. Institutional and
commercial building

26. Specialized
industrial
construction

27. Infrastructure and
heavy construction

28. Types of construction equipment
Earthwork Equipment
Backhole
Front shovel
Dragline
Clamshell
Dozers
Roller compactor
Scraper
Dumper
Grader
Concreting Equipment
concrete batching and mixing plant
concrete mixers
concrete transit mixers
concrete pumps

30. Hoisting Equipment
Boom Hoist crane
chain hoist crane
Electric hoists
crane
Derrick crane
Mobile crane
Tower crane

31. Safety plan
• Conduct daily safety audits using checklists to help craft safety
representatives carry out this process.
• On-site where there is a lot of heavy equipment traffic ,dust and noise
require personnel on the ground to wear orange or colored vests for
greater visibility.
• Use the schedule to insure that all the required safety materials ,such
as shoring, trench boxes ,barricades or fall protection equipment are
on-site prior to work commencement.
• Investigate any accident ,incident ,or near miss to determine causes
and develop, document, and implement corrective action to eliminate
reoccurrence. This can be time consuming and it is advisable to
assign a specific person .
• Use weekly toolbox meeting.
• Make project safety goals an integral part of your company’s safety
strategy