I continue this blog series to break a decades-long silence in the construction industry -the nine true secrets of successful estimates.
FIFTH SECRET
The fifth secret is equipment costs. Equipment rates are dependent upon the project conditions to determine the correct size or capacity of equipment required to perform the work. They are also dependent upon using the right size or capability of equipment when interfacing with other types of equipment. With some exceptions, equipment acquisition and operating costs are going to be similar for the same conditions of the work, no matter what contractor is performing the work.
In selecting the right equipment capacity for a project, consider an extreme example for the use of a three cubic yard hydraulic excavator versus a .75 cubic yard backhoe/front end loader for excavating a swimming pool. If the project is to excavate a back yard, shallow residential swimming pool with tight access restrictions, the backhoe/front end loader could be a better choice. However, if it is a regulation Olympic sized pool with a deep end for diving without any severe access restrictions, the hydraulic excavator could be the better choice.
When interfacing with other equipment, cycle times and equipment capacity control the costs on the project. An illustration of this is mass excavating and hauling of the spoils. Two basic choices could be the answer. The first is the use of scrapers to excavate and haul the spoils to an on-site location. In a case like this, selecting the correct equipment size would be a considerable factor since one piece of equipment can do both tasks. However, if the project conditions are such that they require the use of hydraulic excavators with trucks for hauling the spoils, the sizing or quantity of the excavators and trucks become the primary factor. If trucking capacity is limited, this will restrict the size/capacity of the excavator. If the size/capacity of the excavators is limited, this will restrict the trucking capacity. In these cases, and others, undersized/oversized capacity means higher hourly costs and inefficiencies.
Will the equipment costs in the estimate be perfect? Guess what: another “No!” However, they will be more reliable by taking these factors into consideration. No one company has a lock on this secret; all of the successful firms know one of the secrets to a successful project is having a reliable determination made of the equipment costs required to perform the work.
Don’t miss out on the remaining secrets! Check back soon!
