What is Construction Equipment Management

The use of equipment for accomplishing construction tasks is increasing rapidly. Plant and equipment now constitute a substantial portion of the construction costs in a project. The cost component depends upon the nature of the project and the extent to which equipment is employed. In a mechanized building project, the equipment related costs can vary from 5% to 10% of the direct costs. In highway construction projects, the plant and equipment costs may touch as much as 20% of the direct project costs.



Equipment purchase involves initial heavy investments. In the long run, equipment adds to the profitability by reducing the overall costs, provided the equipment is properly planned, technically scrutinized, economically procured and effectively managed. Poor selection and bad management of equipment are generally attributed to task mismatch, unplanned requirement forecasts, hasty purchase decisions, inadequate repairs and spares supply and lack of preventive maintenance.



1. What are the factors that affect the selection of construction equipment?

The selection of an equipment or plant system to perform an assigned task depends upon many inter-related factors. These factors are:

1.1. Task Considerations

· Nature of task and specifications.

· Daily forecast of planned production.

· Quantity of work and time allowed for completion.

· Distribution of work at site.

· Interference expected and inter-dependence with other operations.

1.2. Site Constraints

· Accessibility to location.

· Manoeuvrability at site.

· Working space restrictions.

· Altitude and weather conditions.

· Working season and working hours.

· Availability of local resources of manpower, materials and equipment.

· Availability of land, power supply and water supply for workshop and camp.

· Availability of local equipment hiring, repair and maintenance facilities locally.

· Availability of fuel, oil and lubricants.

1.3. Equipment Suitability

· Type of equipment considered suitable for the task.

· Model and sizes of special purpose and general purpose equipment available, which can handle the task.

· Production capability, service conditions and delivery time of each equipment available.

· Equipment already owned by the contractor.

· Usefulness of the equipment available for other and future tasks.




1.4. Operating Reliability

· Manufacturer's reputation.

· Equipment components, engine transmission, brakes, steering operator's cabin.

· Use of standard components.

· Warranties and guarantees.

· Vendor's after sales service.

· Operator's acceptability, adaptability and training requirements.

· Structural design.

· Preventive maintenance program.

· Safety features.

· Availability of fuel, oil and lubricants.

1.5. Maintenance

· Ease of repair and maintenance.

· Vendor's after sales service, repairs, spares and maintenance.

· Availability of spare parts.

· Standardization consideration.

1.6. Economic Considerations

· Owning costs.

· Operating costs.

· Resale or residual value after use.

· Replacement costs of existing equipment.

1.7. Commercial Considerations

· Buy second-hand or new equipment.

· Rent equipment.

· Hire-purchase equipment.

· Purchase on lease.

Equipment selection analysis is not necessarily limited to the above. It leads to alternative choices for acquiring the required equipment. It is followed up with the management deciding on the required equipment. It may be noted that, in most cases, the final equipment selection decision is likely to be a compromise between what is ideally required and what can actually be obtained economically.