Construction Plant and Equipment Exam Notes

Module One Introduction

The Acquisition of Plant
- Depends on ground conditions, soil type, site location, weather etc.
Purchase or hire plant?
- Dictated by economic factors, finance, the utilization rate and whether the plant
is likely to be used on a repetitive basis for future projects.
- Selection of plant according to data sheets from plant manufacturers and
discussing specific site details with plant operators.
Main Types of Plant
Fixed
- Fixed while operating: Backacter, Power Shovel, Dragline.
Moving Machines
- Moves to operate: Bulldozers, Bucket loaders, Graders, Trenchers, Earthmoving
trucks, Compacting plants, Lifting machinery.
Factors Affecting the Selection of Plant
- Size of the job
- Activity Time constraints
- Access
considerations
- Workloads for each discrete item of handling
- Obstructions
above/below
- Size and weight of the loads being handled
- Availability
of equipment
- Cost transportation of equipment
- Type of excavation
- Geometric characteristics of elements to be excavated
- Soil
Characteristics
- Space Constraints
- Characteristics of haul units - Location of dumping
areas
- Weather and temperature.
Main Points for Selection of Plant
1) Function of Machine
- Combination of horizontal, vertical and mobile movements.
E.g. Cranes good at handling loads in horizontal and vertical movements but
not so good at
maneuverings over distances.
2) Capacity of Machines
Factors affecting the capacity required providing maximum efficiency
- Volume of material to be moved
- Type of material involved
- Time available in construction program
- Working space available
3) Method of Operation
Parameters influencing the proposed methods of operation on site:
- Distance to be covered
- Speed and frequency of movement
- Ground conditions
- Weather conditions
NOTE:
- Choice may be limitd by the cost of temporary work facilities

- Haul roads may not be permitted in certain areas

- The establishment and demobilization costs of large equipment may not be
economic for the task time.
4) Cost
The best piece of equipment from the point of view of capacity may prove
uneconomical in terms of speed of work, efficiency or:
- Preferred method may involve expensive or uneconomic units.
- Preferred equipment may not be available when required.
- May have to pay a premium to persuade operator to attend the site
- All possible alternatives should be compared in relation to the program and cost
Plant Economics
To make the most economic choice an accurate cost comparison of all viable
options should be carried out.

Evaluating Plant Investments

1) Payback Period Method
The time taken for an item of plant to generate sufficient net cash flow to pay for
the original capital investment in its entirety
Example:
A company considers purchasing an excavator for an investment of $200 000
which is expected to provide annual cash flow of $50 000, the payback period
would be 4 years.
2) Average Rate of Return (ARR)
Average annual profit you expect over the lift of an investment project, compared
with th average amount of capital invested.
Example:
Excavator requires an average investment of $250 000 and is expected to
produce an average annual profit of $37 500. The ARR would be 15%.
(37500/250000)
- Higher the ARR, more attractive the investment.
- ARR = Average annual profit/Average investment cost

- If ARR > the required rate of return Investment accepted

- If ARR < the required rate of return Investment rejected.

3) Net Present Value (NPV)

Takes into account the size of the cash inflow over the life of the plant, but also
makes adjustment for the timing of the money.
Example:

4) Internal Rate of Return (IRR)

The internal rate of return for an investment is the rate of return (interest rate)
that make the present value of returns (benefits) equal to the present value of
costs.

Module Two Cost Issues

Plant Financing Options
Owning Equipment
Operating costs
Maintenance
Repairs

Renting Equipment
Reduces the amount of capital tied up
In fleet
Reduces the amount of start-up capital
Reduces maintenance costs, repairs,
Inspections, transportation and storage

Inspections
Transportation
Storage
Long retain period
Escalate over the life of the equipment

Plant Ownership costs:

Factors influencing ownership costs:
Purchase Price:
- Cost of standard and optional attachments sales taxes and delivery costs.
Economic Life (ownership period)
- Period over which the equipment can operate at required levels of cot and
output.
- Measured in terms of operating hours (trucks/trailers = kilometers)
- Influenced by several factors
- Physical condition and performance of plant
- Shifts in economics for the company
- Physical deterioration concerns issues such as corrosion, chemical
decomposition and general wear and tear
- Changing economic conditions such as fuel prices, tax investment incentives,
rate of interest.
Plant Utilization
- An uncertainty even if a company has secure, fixed-term contracts.

- Expected rate of utilization past operational history of the companys

equipment

Calculating Ownership Costs

Salvage or Residual Value
- The price that equipment can be sold for at the time of its disposal
- Often estimated at 10-20% of initial purchase price
Insurance
- A rough estimate of plant insurance cost: $10 for every $1000 of average value.
- If the actual insurance cost of the plant is known: Insurace cost/year = Average
value/100.
Depreciation
- Straight-line depreciation = New price Salvage Price / No. of years used.
Interest Costs

Module Three Productivity

Module Four Soil and Rock

Water Content of Soil
Water content (%) = Most weight dry weight / Dry Weight (100)
Example
Soil weighing 90kg after drying weights 70kg, meaning 20kg of water originally
Water content = 20/70 (100) = 28.6%

Module Five Site Preparation

Unit Six Scraping and Grading

Unit Seven Excavation

Module Eight Hauling

Module Nine Cranes: Gentle Giants in Construction

Unit Ten Scaffolding and Elevating Work Platforms

Introduction:
- Temporary structures
elevate a platform

- Support workforce, equipment, materials to

Standards:
- AS/NZ 1576: Scaffolding
- AS/NZ 4576: 1995: Guidelines for Scaffolding
Licensing:
All scaffolds higher than 4 meter must be installed by a licensed scaffolder.
- Basic Scaffolding
- Intermediate Scaffolding
- Advanced Scaffolding