Operating costs for equipment include repair and maintenance costs, fuel costs, lubricating oil costs, tire costs, operator wages, and costs associated with wear and tear. Repair and maintenance costs vary each year and increase with the age of the equipment, but performing timely maintenance can increase the life of the equipment and decrease repair costs. Both minor repairs are done on-site while major repairs are done at an authorized workshop. Approximate estimates of costs are prepared early in projects to determine preliminary budgets and understand if projects can be undertaken within budget constraints, and allow for consideration of economic alternatives.

1. Maintenance
 Operating cost:
Incurred when equipment is operated
Influenced by: no. of working hours, job site location, operating cost, category of
equipment etc.
Operating cost consist of:
1. Repair and maintenance cost
2. Fuel cost
3. lubricating oil cost
4. tire cost
5. Operator wages (equipment)
6. Cost of replacing ware and tear
7. Cost of mobilization,demolozation and assembly

2. Repair and maintenance cost
 equipment's wear and tear due to operations it perform
 It includes cost of replacement parts, labour charges and cost of setting up
 R&M varies year to year, increases with age
 Timely maintenance increase life and derease repair of equipment
 Minor repair at job site,major repair workshop(authorized dealers)
 Annual R&M calculated by percentage of annual depreciation cost of
equipment

3. Approximate estimate
 Prepared during initial stages
 Known as preliminary budget order of magnitude
 Prepared to determine preliminary cost of project
 To know project can undertake within budget
 Altenates can be used
 Estimated With help of design from designer
 Ecnomic alternatives can be obtained

4. Unit rate method
 Cost of the structure is prepared by multiplying total no. of units with unit
rate of each item
 In school and college unit is student,Hospital - one bed
 Total cost of project at neighbouring by no of units