Factors Affecting the

Selection of
Construction Equipment

BAGABOYBOY | ENRIQUEZ |
LAMAY | MANLIGUEZ
Content

• Standard Types of Equipment

• Special Equipment
• Replacement Parts
• The Cost of Owning and Operating Construction Equipment
• Economical Life of Construction Equipment
• Sources of Construction Equipment
Standard Types of Equipment
• commonly manufactured and available to
purchasers
• used economically on more than one project
• repair parts may be obtained more quickly
• easily disposed of at more favorable price
Standard Construction
Equipment
Standard Construction
Machineries
Special Equipment
• manufactured for a specific project
• Does not have readily accessible spare parts
• not be suitable or economical for use on other
project
Special Construction
Equipment
Special Construction
Equipment
Types of Construction Equipments
and their Selection Criteria
• Earthwork Equipments
• Concreting Equipments
• Hoisting Equipments
Types of Earthwork Equipments
• Excavator • Roller compactor
• Front shovel • Scraper
• Dragline • Dumper
• Clamshell • Grader
• Bull Dozer • Trencher
 Excavator

• has a long bucket arm

attached to a pivoting
cab
• can rotate a full 360
degrees
• highly versatile and can
be fitted with special
attachments
 Front shovel

• used for excavation

purposes above its own
track or wheel level
• suitable for heavy
positive cutting in all
types of dry soils
 Dragline

• used for bulk excavation

below its track level in
loose soils, marshy land
and areas containing
water
 Clamshell

• hydraulically controlled
bucket suspended from
a lifting arm
• mainly used for deep
confined cutting in pits
and trenches
 Bulldozer

• used ​to move dirt along

large open tracts of land
• used to push piles of
earth and for rough or
fine grading, depending
on the size of the
bulldozer
 Roller compactor

• mainly used to for

compaction of earth and
other materials in large
works
 Scraper

• move dirt and

aggregates quickly
• used for digging and
leveling large areas of
land
 Dump Trucks

• used for horizontal

transportation of
materials on and off sites
• Large capacity dumpers
are used in mines and
quarries
 Grader

• used for fine grading and

for moving small
amounts of dirt
• prepare the road base
course before placing
asphalt
• used to create sloped
surfaces or drainage
ditches
 Trencher

• used to dig trenches,

usually narrow trenches
for piping and cabling
Selection Criteria for Earthwork
Equipments
• Quantities of material to be moved
• The available time to complete the work
• The prevailing soil types, the swell and
compaction factors, etc.
• The availability of loading and dumping area,
accessibility of site, traffic flows and weather
conditions at site
Types of Concrete Equipments
• Concrete batching and mixing plant
• Concrete mixers
• Concrete transit mixers
• Concrete pumps
 Concrete batching and
mixing plant
• used for weighing and
mixing large quantity of
concrete constituents
• capacity:- 20cum/hr-
250cum/hr
 Concrete mixers

• used for mixing small

quantities of concrete
constituents.
• capacity:- 200lt/batch
(small mixers)
• 200-750l/batch (large
mixers)
 Concrete transit mixers

• used for transporting

concrete from batching
point
• capacity:- 3cum-9cum
 Concrete pumps

• used for horizontal and

vertical transportation of
large volumes of
concrete in short
duration.
• capacity:- 30cum/hr
(ordinary construction)
• 120cum/hr(specialized
construction)
Selection Criteria for Concreting
Equipments
• Site characteristics such as boundary conditions,
noise limitations and other restrictions.
• Equipment availability-local availability of
equipments
• Continuity of operation
• Effect of permanent work
• Weather conditions
• Temporary works
• Time restrictions
• Concrete specifications
Selection Criteria for Concreting
Equipments
Concrete-mixing equipment selection will
depend on factors such as the
• maximum and the total output required in a
given time frame
• the method of transporting the mixed
concrete
• the requirement of discharge height of the
mixer.
Selection Criteria for Concreting
Equipments
Concrete-placement equipment selection
depends on factors such as the
• capacity of the vehicle
• the output of the vehicle
• the site characteristics
• the weather conditions
• the rental costs, and the temporary haul
roads.
Types of Hoisting Equipments
• Derrick Crane
• Mobile Crane
• Tower Crane
 Derrick Cranes

• Preferable for high-rise

and apartment buildings.
• Can be used for both
long term and short term
projects.
• Cheaper than mobile
and tower cranes.
• Used when clearance is
inadequate
 Mobile Cranes

• Adequate for all types of

structures (up to 107 m)
• Used for shorter projects
duration (less than 4
months).
• Can operate in muddy
terrain but requires good
ground conditions.
• Needs adequate operating
clearance.
 Tower Cranes

• Preferable for high-rise

(over 107 m).
• Used for longer project
duration.
• Can operate where
ground conditions are
poor.
• Does not need adequate
operating clearance
Selection Criteria for Hoisting
Equipments
• Building Design
• Capability
• Safety
• Economy
• Site Conditions
 When It’s Best to Buy

• Current financial situation

• Cost of ownership vs. cost of renting
• Length of project or job frequency
• Equipment availability & usage
• Fleet management and inventory control
 When It’s Best to Rent

• Avoid the Initial Purchase Cost

• Service and Maintenance Costs Are Eliminated
• Shielding From Market Fluctuation
• No Depreciation Costs
• Project-Specific Rentals
• Solve Equipment Storage Issues
• Transportation Logistics
• Rental Equipment Features the Latest Technology
 Replacement of Parts

• Prior to purchasing equipment, the buyer should determine

where spare parts are obtainable;
• If parts are not obtainable quickly, it may be wise to purchase
other equipment, for which parts are quickly available
The Cost of Owning and Operating
Construction Equipment
• No known method will give exact costs under
all operating conditions.
• estimate is only a close approximation of the
cost.
• Kept records for equipment previously used
Factors that affect the cost of
owning and operating construction
equipment
• The cost of the equipment delivered to the
owner.
• The severity of the conditions under which
the equipment is used.
• The number of hours the equipment is used
per year.
Factors that affect the cost of
owning and operating construction
equipment
• The number of years the equipment is used.
• The care with which the owner maintains
and repairs the equipment.
• The demand for used equipment when it is
sold, which will affect the salvage value
The Cost of Owning and Operating
Construction Equipment
• Ownership cost
• Operating cost
Ownership Costs

• Depreciation Cost
– The decline in market value of a piece of
equipment due to age, wear, deterioration and
obsolescence
• Investment Cost
– The interest on the money invested.
– Insurance.
– Storage.
Depreciation Cost
• Depreciation can result from:
– Physical deterioration occurring from wear and
tear of the machine
– Economic decline or obsolescence occurring over
the passage of time
Methods of Calculating
Depreciation
• Straight-line (SL) method
• Sum-of-the-years (SOY) method
• Declining-balance method.
Straight-line (SL) method

• This method is the easiest one to calculate

and probably the most widely used method
in construction. The annual amount of
depreciation (𝐷𝑚 ), for any year (m), is a
constant value, and thus the book value
decreases at a uniform rate over the useful
life of the equipment.
Straight-line (SL) method
The equations used are:
1
Depreciation rate, 𝑅𝑚 = 𝑁
Annual depreciation amount,
𝑃−𝑆
𝐷𝑚 = 𝑅𝑚 𝑃 − 𝑆 = 𝑁
Book value at year m, 𝐵𝑉𝑚 = 𝑃 − 𝑚𝐷𝑚 or
Book value at year m, 𝐵𝑉𝑚 = 𝐵𝑉𝑚−1 − 𝐷𝑚
Where,
Purchase price, P
economic life of the equipment, N
salvage value, S
 Straight-line (SL) method
Example:
A piece of equipment is available for purchase for ($12000),
has an estimated useful life of (5 years), and an estimated
salvage value of ($2000). Determine the depreciation and
the book value for each of the 5 years using the SL method.
Solution:
1
𝑅𝑚 = = 0.2
5
𝐷𝑚 = 0.2 12000 − 2000 = $2000 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
Straight-line (SL) method

Year (m) 𝐵𝑉𝑚−1 𝐷𝑚 𝐵𝑉𝑚

($) ($) ($)
0 0 0 12000
1 12000 2000 10000
2 10000 2000 8000
3 8000 2000 6000
4 6000 2000 4000
5 4000 2000 2000
 Straight-line (SL) method
Example:
A piece of equipment costing ($10000) new, with a (5 years)
useful life, and an expected salvage value of ($1000) is being
considered for purchase. Calculate the yearly ownership
costs using the SL methods of depreciation.
Solution:
1
𝑅𝑚 = = 0.2
5
𝐷𝑚 = 0.2 10000 − 1000 = $1800 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟
Straight-line (SL) method

Year (m) 𝐵𝑉𝑚−1 𝐷𝑚 𝐵𝑉𝑚

($) ($) ($)
0 0 0 10000
1 10000 1800 8200
2 8200 1800 6400
3 6400 1800 4600
4 4600 1800 2800
5 2800 1800 1000
Sum-of-the-years (SOY) method

• This is an accelerated method, which is a

term applied to accounting methods which
permit rates of depreciation faster than
straight line. The rate of depreciation is a
factor times the depreciable value (P-S).
Sum-of-the-years (SOY) method
This factor is calculated as follows:
𝑁−𝑚+1
𝑅𝑚 = 𝑆𝑂𝑌
𝑁(𝑁+1)
𝑆𝑂𝑌 = 2
𝑁−𝑚+1
𝐷𝑚 = 𝑅𝑚 𝑃 − 𝑆 = 𝑃−𝑆
𝑆𝑂𝑌
𝐵𝑉𝑚 = 𝐵𝑉𝑚−1 − 𝐷𝑚
Where,
Purchase price, P
economic life of the equipment, N
salvage value, S
 Sum-of-the-years (SOY)
method
Example:
A piece of equipment is available for purchase for ($12000),
has an estimated useful life of (5 years), and an estimated
salvage value of ($2000). Determine the depreciation and
the book value for each of the 5 years using the SOY method.
Solution:
𝑁(𝑁+1) 5(5+1)
𝑆𝑂𝑌 = = = 15 or 𝑆𝑂𝑌 = 1 + 2 + 3 + 4 + 5 = 15
2 2

𝑁−𝑚+1 5−𝑚+1
𝑅𝑚 = =
𝑆𝑂𝑌 15
 Sum-of-the-years (SOY)
method
Solution:
5−𝑚+1
𝐷𝑚 = 𝑅𝑚 𝑃 − 𝑆 = 12000 − 2000
15
5−𝑚+1
𝐷𝑚 = 10000
15
𝐷𝑚 = 𝑅𝑚 10000

Then tabulate the results as follows:

Sum-of-the-years (SOY)
method

Year (m) 𝑅𝑚 𝐷𝑚 𝐵𝑉𝑚

($) ($)
0 0 12000

1 5−1+1 5 𝑅𝑚 10000 = 3333 12000 − 3333 = 8667

=
15 15
2 5−2+1 4 𝑅𝑚 10000 = 2667 8667 − 2667 = 6000
=
15 15
3 5−3+1 3 𝑅𝑚 10000 = 2000 6000 − 2000 = 4000
=
15 15
4 5−4+1 2 𝑅𝑚 10000 = 1333 4000 − 1333 = 2667
=
15 15
5 5−5+1 1 𝑅𝑚 10000 = 667 2667 − 667 = 2000
=
15 15
 Sum-of-the-years (SOY)
method
Example:
A piece of equipment costing ($10000) new, with a (5 years)
useful life, and an expected salvage value of ($1000) is being
considered for purchase. Calculate the yearly ownership
costs using the SOY methods of depreciation.
Solution:
𝑁(𝑁+1) 5(5+1)
𝑆𝑂𝑌 = = = 15 or 𝑆𝑂𝑌 = 1 + 2 + 3 + 4 + 5 = 15
2 2

𝑁−𝑚+1 5−𝑚+1
𝑅𝑚 = =
𝑆𝑂𝑌 15
 Sum-of-the-years (SOY)
method
Solution:
5−𝑚+1
𝐷𝑚 = 𝑅𝑚 𝑃 − 𝑆 = 10000 − 1000
15
5−𝑚+1
𝐷𝑚 = 9000
15
𝐷𝑚 = 𝑅𝑚 9000

Then tabulate the results as follows:

Sum-of-the-years (SOY)
method

Year (m) 𝑅𝑚 𝐷𝑚 𝐵𝑉𝑚

($) ($)
0 0 10000

1 5−1+1 5 𝑅𝑚 9000 = 3000 10000 − 3000 = 7000

=
15 15
2 5−2+1 4 𝑅𝑚 9000 = 2400 7000 − 2400 = 4600
=
15 15
3 5−3+1 3 𝑅𝑚 9000 = 1800 4600 − 1800 = 2800
=
15 15
4 5−4+1 2 𝑅𝑚 9000 = 1200 2800 − 1200 = 1600
=
15 15
5 5−5+1 1 𝑅𝑚 9000 = 600 1600 − 600 = 1000
=
15 15
Declining-balance method

• This method is also an accelerated

depreciation method that provides for larger
portions of cost to be written off in the early
years;
• this method nearly approximates the actual
loss in market value with time.
Declining-balance method
Equations for the use of the declining balance methods:
• Depreciation rate, R
1.25
For 1.25 declining balance (1.25DB)method, 𝑅 =
𝑁
1.5
For 1.50 declining balance (1.50DB)method, 𝑅 = 𝑁
1.75
For 1.75 declining balance (1.75DB)method, 𝑅 = 𝑁
2
For double declining balance (DDB)method, 𝑅 =𝑁
Declining-balance method
Equations for the use of the declining balance methods:
• The allowable depreciation, 𝐷𝑚 for any year m and any
rate R would be:
𝐷𝑚 = 𝐵𝑉𝑚−1 𝑅
• The book value for any year m would be:
𝐵𝑉𝑚 = 𝐵𝑉𝑚−1 − 𝐷𝑚 , ⇒ 𝐵𝑉𝑚 ≥ 𝑆
 Declining-balance
method
Example:
A piece of equipment is available for purchase for ($12000), has an
estimated useful life of (5 years), and an estimated salvage value
of ($2000). Determine the depreciation and the book value for
each of the 5 years using the DDM method.

Solution:
2 2
𝑅 = = = 0.4
𝑁 5
𝐷𝑚 = 𝐵𝑉𝑚−1 𝑅 = 𝐵𝑉𝑚−1 0.4
𝐵𝑉𝑚 = 𝐵𝑉𝑚−1 − 𝐷𝑚
Declining-balance
method

Year (m) 𝐷𝑚 𝐵𝑉𝑚

($) ($)
0 0 12000

1 0.4 12000 = 4800 12000 − 4800 = 7200

2 0.4 7200 = 2880 7200 − 2880 = 4320

3 0.4 4320 = 1728 4320 − 1728 = 2592

4 0.4 2592 = 1037 2592 − 1037 = 1555

4 592 2592 − 592 = 2000

5 0 2000
 Declining-balance
method
Example:
A piece of equipment costing ($10000) new, with a (5 years)
useful life, and an expected salvage value of ($1000) is being
considered for purchase. Calculate the yearly ownership
costs using the 1.75DB methods of depreciation.
Solution:
1.75 1.75
𝑅 = 𝑁 = 5 = 0.35
𝐷𝑚 = 𝐵𝑉𝑚−1 𝑅 = 𝐵𝑉𝑚−1 0.35
𝐵𝑉𝑚 = 𝐵𝑉𝑚−1 − 𝐷𝑚
Declining-balance
method

Year (m) 𝐷𝑚 𝐵𝑉𝑚

($) ($)
0 0 10000

1 0.35 10000 = 3500 10000 − 3500 = 6500

2 0.35 6500 = 2275 6500 − 2275 = 4225

3 0.35 4225 = 1479 4225 − 1479 = 2746

4 0.35 2746 = 961 2746 − 961 = 1785

5 0.35 1785 = 625 1785 − 625 = 1160