4.3. Maintenance and Repair Cost

So now let us discuss about the operating cost one by one in detail the first one which we are going to discuss is about the maintenance and the repair cost. So this contributes to significant proportion of the operating cost of the machine.

In this part, we are introduced to maintenance and repair costs as a component of operating costs for machines. These costs are crucial because they reflect the financial responsibility associated with keeping equipment operational and effective. They make up a substantial part of the overall expenses related to machinery usage.

Consider a car: just like regular maintenance—like oil changes and tire rotations—are necessary to keep the car running smoothly, machinery used in construction requires maintenance and repairs to function efficiently and avoid breakdowns.

So basically as your machine age increases, as a machine ages obviously your repair cost will increased your repair and the maintenance cost is going to increase. Because the machine; has been subjected to more amount of wear and tear.

As machinery ages, it experiences wear and tear, leading to increased maintenance and repair costs. The more a machine has been used, the more likely it will require parts replacement or servicing to keep it functioning optimally.

Think of an old bicycle; over time, the tires wear out, the chain might rust, and brakes may need adjustments. The older it gets, the more time and money you need to invest in repairs to keep it safe and usable.

So you have to replacement some components, so the cost of those replacement parts. So you have to replacement some components right the cost of the replacement parts. So for repair work you engage some labor, so the labor involve for the repair work so all these will come under the maintenance and repair cost.

Maintenance and repair costs include expenses related to replacing worn-out parts and labor costs for hired workers needed for repairs. Both are essential aspects of keeping machinery operational, and they should be carefully considered when estimating total operating costs.

Similar to how maintaining a home involves costs for repairs like fixing leaky faucets or replacing old appliances, machinery maintenance requires budgeting for parts and skilled workers to ensure it remains functional.

So the maintenance and repair cost will depend upon the care it receives, so the preventive maintenance it is very important for any job. So basically if; you have your own maintenance facility and if you periodically maintain your equipment periodically do the checkup and do the timely service for the machines do daily cleaning of the machines.

Preventive maintenance is about taking proactive measures to care for the machinery, leading to less frequent and less expensive repairs. Consistent upkeep and check-ups can help extend the machine's lifespan and keep costs down.

This is like getting regular doctor check-ups to catch health issues before they become serious. Just as it’s easier and cheaper to deal with minor health concerns, taking care of machinery regularly prevents costly breakdowns.

Generally, for a contractor who has a good equipment fleet so what he does is? He will have a maintenance facility in his site. He has a maintenance facility on his own. In this maintenance facility he will periodically maintain his equipment.

Contractors often establish their own maintenance facilities to manage and control repair costs effectively. This allows for timely maintenance and repairs, which should be planned and budgeted for in order to minimize long-term expenses.

Similar to how a chef might have a well-stocked kitchen to ensure they can quickly prepare any dish, contractors benefit from having an on-site maintenance facility that ensures they can promptly address machinery issues without incurring excess downtime.

Your operating cost is highly variable. Okay now so how to estimate these operating cost how to get information on all these operating cost that is very important.

The costs associated with operating machinery can vary significantly based on factors like usage frequency and job conditions. Information about these costs can be gathered from past experience or from manufacturer guidelines.

Just as the cost of gasoline varies depending on how often a car is driven and the types of roads taken, maintenance costs for machinery can differ based on how often it is used and the complexity of the tasks it performs.

When you estimate it as a percentage of equipment initial cost you are supposed to deduct the tires cost that is very important.

Estimating repair costs can involve calculating a percentage of the machine's initial cost, excluding tire costs because they depreciate at a different rate. This ensures a more accurate assessment of repair expenses over the equipment's lifetime.

Consider how a car depreciates; tires wear out faster than the vehicle itself, so when assessing total car ownership costs, it’s more precise to calculate vehicle costs without including tire expenses.

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