Construction Equipment : 1. Mechanization in Construction: Importance of construction equipments their classification, selection and contribution rate of production (Output), Owning and operating cost. 2. Engineering fundamentals : Related to performance of IC engines, rimpull, drawbar pull, Coefficient of traction, Gradability.

1. INTRODUCTION TO
CONSTRUCTION
MANAGEMENT
1
PREPARED BY : ASST. PROF. VATSAL D. PATEL
MAHATMA GANDHI INSTITUTE OF
TECHNICAL EDUCATION &
RESEARCH CENTRE, NAVSARI.

2. Content
▪ Importance of machineries in construction
▪ Classification ofConstruction Equipment
▪ Plants & Equipment usedin construction
▪ Factors affecting selection of construction equipment
▪ Financial aspectsrelated to construction equipments
▪ Discounted present worthanalysis
▪ Depreciation
▪ Costof owning andoperating construction equipment
▪ Economiclife of construction equipment
▪ Equipment replacementpolicy

3. The importance of machineries for
construction
▪ Work can be completedfast.
▪ Costof project is reduced.
▪ Lessnumber oflaborers required.
▪ Excavation work canbe carried out rapidly by using Power
shovel, Draglineetc.
▪ Output ishigher
▪ Transportation of construction materials canbe done easily by using
Trucks, Wagons, Dumpersetc.
▪ Heavyloads canbe lifted with the help ofTower crane, Elevator etc.

4. The importance of machineries for
construction
▪ Better quality in construction is obtained by using construction
equipments.
▪ E.g.: canal lining, concrete spreading, compaction & finishing are
carried out by lining machine.
▪ Finishing & rolling of bituminous roadsis not possible without
Rollers.

5. PowerShovel

6. Dragline

7. Dumper

8. Tower
Crane

9. Lining
Machine

10. Concrete
Mixer

11. Bulldozer

12. Scrapper

13. Air
compressor

14. Belt
Conveyor

15. Classification of Construction
Equipment(according to work cycle)
1. IntermittentType: a.Bulldozers
b. Scrappers
c. PowerShovels
d. Concrete Mixers
e.Dragline
2. Continuous FlowType: a.Air Compressors
b. BeltConveyors
3. MixedType: a. MotorGraders

16. Classification of Construction
Equipment(according to nature of Automation)
1. Manually OperatedEquipment
2. Semi-Automatic Equipment
3. Fully AutomaticEquipment

17. Classification of Construction
Equipment(according to Standardization of machine)
1. Standard Equipment
2. SpecialEquipment

18. Difference B/w Standard and Special
Equipments
Standard Equipment
▪ Commonlyusedin all projects
▪ Manufacturedcommonly& easily availablefrom
dealer
▪ Initialinvestmentis low
▪ Resalepriceis high
▪ Deliveryis easy & fast
▪ Repairsand spare parts areeasilyfound
▪ Disposal iseasy
▪ Unit costof productionis less
▪ Rentis low and reasonable
▪ E.g.CanalTrimmer
Special Equipment
▪ Usedonly in specialcases
▪ Manufacturedas perrequirements,specialorder
has to beplaced
▪ Initialinvestmentis high
▪ Resalepriceislow
▪ Delivery is difficult & delayed
▪ Repairsand spare parts are difficultto find
▪ Disposal isdifficult
▪ Unit costof productionis high
▪ Rentishigh and unreasonable
▪ E.g. BeltConveyor

19. Plants & Equipments used in Construction
▪ Equipment forExcavation
▪ Earthmoving equipment
▪ Hauling equipment
▪ Hoisting equipment
▪ Conveying equipment
▪ Pile drivingequipment
▪ Drilling equipment
▪ Equipment for productionof
aggregate
▪ Plant for grouting and guniting
▪ Machineries for bituminousroad
▪ Machineries for concreteworks
▪ Dredging equipment

20. Equipment
for
Excavation

21. Earthmoving
Equipment

22. Hauling
Equipment

23. Hoisting
Equipment

24. Conveying
Equipment

25. Pumping
Equipment

26. Compacting
equipment

27. Pile Driving
Equipment

28. Drilling
Equipment

29. Equipmentfor
production of
Aggregate

30. Grouting

31. Guniting

32. Machinery for
Bituminous Road

33. Dredging
Equipment

34. Factors affecting the selection of
Construction Equipment
1. Use of standard equipments
2. Size ofequipment
3. Uniformity oftype
4. Country oforigin
5. Initial cost ofequipment
6. Availability of spareparts
7. Unitcost of production
8. Operating facility
9. Suitability forfuture

35. Financial aspects related to
construction equipments
▪ How to arrange finance
▪ Whether to buy or hire
Sourcesof
equipment
Longterm
Buy
Down
payment
On loans
mobilized
Payment in
installments
Lease
Timelease
Leasing with
option tobuy
later
Shortterm

36. Direct purchase
Advantages
▪ Equipment is always
economically operated
▪ Itreceives better care &
maintenance
▪ It canbe available and usedat
any time
Disadvantages
▪ If equipment becomesobsolete, it is
useless
▪ Large sums involved remainblocked
▪ Tendency to perform work asper
available equipment
▪ Disposal isdifficult
▪ Equipment may be usedbeyond its
economic life
▪ Equipment may remain in idle
condition forsome time

37. Hiring (advantages)
▪ Little care is required for maintenance and storage
▪ Desiredequipment is available in working order at short
notice
▪ Investment costscan be diverted to other better purposes
▪ No fear of obsolescence of equipment, full advantage is
taken by contractor of the improved technical aspects of
equipment
▪ If found useful, equipment canbe bought later

38. Discounted Present Worth Analysis
▪ It involves calculatingthe present valueof all
amounts involved in all the alternatives to
determine the present worth of the proposed
alternatives.
▪ Decisionproblems may beof two types:
a. Revenue dominated cashflowdiagram
b. Cost dominated cash flowdiagram

39. What is Inflow and Outflow:

40. (a) Revenue P r o f i t dominated cash flow
diagram:
▪ In this type of cashflow diagram, the revenue, profit, salvage
value, etc. (inflows) will be assigned a(+ve) sign while costs
(outflows) will beassigned.
▪ Finally, the alternative having the maximum present worth amount
should be selected asthe best alternative.

41. (b) Cost dominated cash flow diagram:
▪ In this type of diagram, the cost(outflows) will be assigned with (+ve)
sign and revenue, profit, salvage value(all inflows) etc. will be
assigned with (-ve)sign.
▪ Finally, the alternative having the minimum present worth amount
should be selected asthe best alternative.

42. Depreciation
▪ It is the gradual loss in the value of the property due to its
use,life, wear, tear and decay.
▪ It is dependent on its original condition, quality of
maintenance & mode of use.
▪ Usually a%of depreciation per annum is allowed, which
gradually increases withtime
▪ Present value ofproperty
= Initial cost -Total amount of depreciation

43. Types of depreciation
a) Physical depreciation
1.wear and tear fromoperation
2. action of time and other elements
b) Functional depreciation
1.inadequacy orsuppression
2. obsolescence

44. Methods of Calculating Depreciation:
1. Straight Linemethod
2. Constant Percentagemethod
3. Sinking Fundmethod
4. Sum of Digitsmethod
5. Service Outputmethod

45. Straight Line method
Assumption: Property loses its value by the same amount every year.
Therefore,Annual Depreciation=Annual Decreasein property value
where, D=AnnualDepreciation
C=OriginalCost
Depreciation of property after m years: S=ScrapValue
n , m=life in years
Therefore,Book value after m years:

46. Constant Percentage method
▪ Assumption: Property will lose its value by aconstant percentage of its
value at the beginning of every year.
Where, p=%rate of annual Depreciation
S=Scrap value
C=Originalcost
n= life inyears
▪ If any ageof property is m years, the value of property after m years:

47. Sinking Fund method
▪ Assumption: depreciation of the property =the annual sinking fund
+ interest on the sinking fund for that year
▪ If I is the rate of interest, the annual sinking fund installment(p) to
accumulate 1Rsin m years:
▪ If I is the rate of interest, and 1Rsis deposited every year, total
sinking fund accumulated at the end of n years:
▪ Rateof depreciation in n years:

48. Factors affecting Cost of Owning
& operating Equipment:
▪ Costof the equipment to the owner
▪ Demand of the equipment at the end of its useful life
▪ Number of hours it is usedper year
▪ Number of years it isused
▪ Severity of conditions under which it is used
▪ State of maintenance and repairs

49. Costs to be considered for owning and
operating equipment:
▪ DepreciationCost
▪ InvestmentCost (Average investment= )
▪ Maintenance and repairCost
▪ OperationCost(Repaircharges, Depreciation on tyres and
tubes, Labour Charges, Fuel Charges, Operators and
maintenance crew charges, MiscellaneousSupplies)
▪ Down timeCost
▪ ObsolescenceCost
▪ ReplacementCosts

50. Economic l i f e of Construction
Equipments:
Equipment should be replacedunder following circumstances:
1. Depreciation
2. Downtime
3. Inadequacy
4. Normal Deterioration

51. Equipment Replacement Policy:
A firm has to face three type of decisions:
1.The replacementof equipment as it wears out
2.The equipment required forexpansion
3.The replacement of old technology by new
Equipment is replaced before its estimated lifeto:
▪ Reduce production cost
▪ Reducefatigue
▪ Raise quality
▪ Increaseoutput
▪ Securegreater convenience, safety and reliability

52. What not to consider while selecting an
equipment:
For Equipment inUse
▪OriginalCost
▪Money already spent on repairs and maintenance
▪Unrealistic bookvalue
For NewEquipment
▪Any savings notclearly assessable
▪Overheadcharges

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