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Plant Cost Estimation Analysis

The document contains an assignment question regarding plant estimates for civil engineering works. It provides data on the capital costs, operating costs, usage, wages, and other details for a plant. It then shows the step-by-step calculations to determine: 1) The daily ownership, operating, and running costs for the plant, totaling to GH¢1010.98 per day. It then calculates the rate per m3 of material as GH¢168.50. 2) The material, plant, labor, and total costs to complete a road construction job requiring compaction of gravel, totaling GH¢455.52 per m3.

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Emmanuel Anane
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15 views6 pages

Plant Cost Estimation Analysis

The document contains an assignment question regarding plant estimates for civil engineering works. It provides data on the capital costs, operating costs, usage, wages, and other details for a plant. It then shows the step-by-step calculations to determine: 1) The daily ownership, operating, and running costs for the plant, totaling to GH¢1010.98 per day. It then calculates the rate per m3 of material as GH¢168.50. 2) The material, plant, labor, and total costs to complete a road construction job requiring compaction of gravel, totaling GH¢455.52 per m3.

Uploaded by

Emmanuel Anane
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

NAME: EMMANUEL ANANE DATE: 14TH APRIL, 2020.

ID: 01171556D
COURSE: ESTIMATING OF CIVIL ENGINEERING WORKS.

ASSIGNMENT TWO (2)-PLANT ESTIMATES

QUESTION 1
Data
Capital cost of plant GHȼ 3600. 00
Average working days per annum 80 days per year
Years of plant life 15 years
Insurance per premium cost per annum 10%
License cost per annum 5%
Repairs and renewals 15%
Diesel consumed per day 10 gallons at GHȼ 12.50
Lubricating oil per day 0.5 gallons at GHȼ 29.50
Grease consumed per day 2 kg per day at GHȼ 5.00
Operators wages per day GHȼ 27.73
Transport to and from site GHȼ 500.00
Markup 20%

Solution
A. Ownership cost/day

i. Depreciation
Capital cost = GHȼ 3600.00
Years of life = 15 years
36000
Annual depreciation cost = = GHȼ 2400
15

1
Average working days/year = 80 days
2400
Daily depreciation cost = = GHȼ 30.00
80

ii. License and insurance


Insurance cost/year = 10% of capital
10
= × 3600 = GHȼ 3600
100
License cost/ year = 0.05×3600 = 1800
Total = 5400
Average working days/year = 80 day
5400
Insurance and licenses cost/year = = GHȼ 67. 50
10080

iii. Operators wage = GHȼ 27.73

Total Ownership cost = 27.73 + 67.50 + 39


= GHȼ 125.23

B. Operating cost
Repairs and renewals cost/ day = 0.15 × 36000 = GHȼ 5400
5400
Repairs and renewals cost/day = = GHȼ 67.50
80
Total operating cost per day = GHȼ 67.50

C. Running cost
Diesel used/day = 10 gallons × 12. 5 = GHȼ 125
Lubricating oil/day = 0.5 gallon × 29.50 = GHȼ 14.75
Grease = 2×5 = GHȼ 10
Total running cost = GHȼ 149. 75

2
Total cost
total ownership cost + operating cost + running cost = GHȼ 342.48
Add
transportation = 500
842.48
Add
Profit & overhead = 20% = GHȼ 168. 50
All- in -daily rate = GHȼ 1010.98

Let X denote the rate of 60m3

60 m 3
Hence, X = × 1010.98 = GHȼ 10109.8
6 m 3 / day
Rate/ 60m3 = 10109.5
10109.8
Therefore, Rate/m3 = = GHȼ 168.50
60

Question 2.

Data
Output of grader 0.31hr/m3
Output of smooth drum roller 0.63hr/m3
Output of water bowser 0.4hr/m3
Cost of grader GHȼ 2000/day
Cost of smooth drum roller GHȼ 1,200/day
Cost of water bowser GHȼ 1,000/day
Cost of gravel GHȼ 80/m3
Transportation of gravel GHȼ 18.00

3
Banksman’s output 0.44hr/m3
Banksman’s wage GHȼ 2.27
Material waste 5%
Bulkage 25%
Mark up 30%

Solution

Material
Cost of gravel/m3 = GHC80.00
Add
Transportation/m3 = GHC18.00
Total = GHC 98.00

Add
Bulkage =25%
25
×98 = GH¢ 24.50
100

Add
Material waste = 5%
5
× 98 = GH¢ 4.9
100
Total cost of materials = GH¢ 127.40

Plant
Grader

4
Hiring cost = GH¢2,000/day
Ditto/hr = GH¢250
Output/hr = 0.31hr/m3
Cost of grader = 0.31×250
=GH¢ 77.50

Drum Roller
Hiring cost = GH¢1,200
Ditto cost/hr = GH¢150
Output/hr =0.63hr/m3
Cost of roller = GH¢ 94.50

Water Bowser

Hiring cost/day = GH¢1,000


Ditto/hr = GH¢125
Output/hr = 0.4hr/m3
Cost of bowser = 0.4×125
= GH¢ 50

Total Plant Cost


Grader + Smooth drum roller + Water bowser
GH¢77.50 + GH¢94.5 + GH¢50
=GH¢ 222.00

Labour
Banksman output = 0.44hr/m3
Cost of Banksman/hr = GH¢ 2.27

5
=1×0.44×2.27
=GH¢ 0.9988
≈ GH¢ 1.00

Total Cost = Material cost + Plant cost + Labour cost


=GH¢127.40+ GH¢222.0 + GH¢1
=GH¢350.40

Add
Mark up = 30%
30% × 350.40
= GH¢ 105.12

GH¢105.12 + 350.40 = GH¢455.52

Hence, Rate/m3 = GH¢ 455.52

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