When construction equipment springs into action, the operating costs kick in. These costs depend on factors like operating hours, site location, site conditions, and equipment type. In this comprehensive guide, we’ll delve into the various components that make up the operating costs of construction equipment.
1. Repair and Maintenance Costs : Repair and maintenance costs play a pivotal role in the overall operating expenses. This category encompasses expenses for replacing equipment parts, labor charges, and facilities dedicated to repair and maintenance. As equipment ages, these costs tend to increase. Timely maintenance can curtail these expenses, with minor repairs often done on-site. Major repairs are typically undertaken at specialized facilities authorized by equipment dealers. The annual repair and maintenance cost is a percentage of the equipment’s annual depreciation cost.
2. Fuel Costs : Construction equipment relies on internal combustion engines, using gasoline, petrol, or diesel as fuel. Fuel consumption is influenced by working conditions and rated flywheel horsepower (fwhp). Past fuel consumption records or manufacturer-provided estimates are used to calculate hourly fuel consumption and, subsequently, fuel costs.
3. Tire Costs : Tire costs involve repair and replacement expenses. Pneumatic tires, in particular, wear out faster than the equipment itself. Tire repair charges are a percentage of tire depreciation cost, obtainable from past records of similar equipment operating in similar conditions.
4. Operator Wages : Wages and additional benefits for equipment operators are integral to the operating cost. This includes regular wages, bonuses, fringe benefits, etc. Operator wages vary across projects and are calculated as a separate cost category, ultimately added to the overall operating cost.
5. Replacement of High Wear Parts : Certain equipment parts have a shorter lifespan than the equipment itself, falling under the high-wear category. Examples include cutting edges, drill bits, bucket teeth, and blades. The expected lifespan can be estimated from past records or manufacturer guidelines.
6. Mobilization, Demobilization, and Assembly Costs : This category covers transportation costs between projects, unloading expenses, assembly costs at project sites, and road permits.
7. Lubricating Oil, Grease, and Filter Costs : The quantity of lubricating oil, grease, and filters needed depends on factors like operating hours, engine characteristics, and working conditions. Past records help determine the time between changes. The equation for oil quantity (q1) is calculated using engine horsepower, operating factor, crankcase capacity, and hours between changes.
Understanding and managing these operating costs are crucial for optimizing equipment efficiency and ensuring cost-effective construction operations. Regular maintenance, fuel efficiency monitoring, and strategic cost planning contribute to sustained equipment performance and longevity.
