Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.
Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.
The chapter provides a detailed overview of estimating total equipment costs using the Caterpillar and Peurifoy methods. It emphasizes the importance of understanding both ownership and operating costs, including depreciation, fuel costs, and maintenance. Step-by-step procedures for applying these methods are illustrated, offering practical guidance for effective cost estimation in construction equipment management.
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
References
5 a.pdfClass Notes
Memorization
What we have learnt
Final Test
Revision Tests
Term: Ownership Cost
Definition: The total costs associated with owning and maintaining equipment, including depreciation, insurance, taxes, and investment recovery.
Term: Operating Cost
Definition: Costs incurred through the operation of equipment, such as fuel, oil, maintenance, and labor.
Term: Depreciation
Definition: A method for allocating the cost of tangible assets over their useful life, often calculated using straight-line or declining balance methods.
Term: Caterpillar Method
Definition: A widely adopted approach for estimating equipment costs based on standard parameters defined by the Caterpillar manufacturing company.
Term: Peurifoy Method
Definition: A sophisticated approach to equipment cost estimation that incorporates the time value of money to provide accurate forecasts.