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12. Equipment cost – Caterpillar and Peurifoy method

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.

Sections

Construction Methods and Equipment Management

This section covers the estimation of total equipment costs using Caterpillar and Peurifoy methods, focusing on their ownership and operating cost components.

1 Section Overview

Start current section content and materials

1.1 Equipment cost – Caterpillar and Peurifoy method

This section focuses on estimating total equipment costs using the Caterpillar and Peurifoy methods, detailing both ownership and operating cost components.

1.2 Outline of presentation

This section outlines the procedures for estimating total equipment costs using the Caterpillar and Peurifoy methods.

Caterpillar Method

The Caterpillar Method and Peurifoy Method are used for estimating equipment costs in construction, focusing on ownership and operating components.

2 Section Overview

Start current section content and materials

2.1 Ownership Cost

This section focuses on estimating ownership costs using Caterpillar and Peurifoy methods.

2.2 Operating Cost

This section explores the methods used to estimate the total operating cost of equipment in construction, primarily focusing on the Caterpillar and Peurifoy methods.

2.2.1 Fuel Cost

This section examines how to estimate fuel costs associated with construction equipment using the Caterpillar and Peurifoy methods.

2.2.2 FOG Cost

This section outlines the methodologies for estimating equipment costs in construction, focusing on the FOG (Filter, Oil, Grease) costs as part of operating expenditures.

2.2.3 Tire Cost

This section focuses on estimating tire costs within the total equipment cost framework, utilizing the Caterpillar and Peurifoy methods.

2.2.4 Repair Cost

The repair cost section focuses on estimating the total equipment cost using the Caterpillar and Peurifoy methods, including ownership and operating costs.

2.2.5 Total Cost Calculation

This section covers how to estimate total equipment costs in construction using the Caterpillar and Peurifoy methods.

Peurifoy Method

The Peurifoy method focuses on accurately estimating equipment costs in construction by considering both ownership and operating expenses.

3 Section Overview

Start current section content and materials

3.1 Ownership Cost

The Ownership Cost involves estimating both ownership and operating costs for construction equipment, focusing on methods like Caterpillar and Peurifoy.

3.1.1 Depreciation Calculation

This section discusses the estimation of depreciation as part of the ownership cost in equipment management, focusing on the Caterpillar and Peurifoy methods.

3.2 Operating Cost

This section discusses the estimation of operating costs associated with equipment in construction management, focusing on methods such as Caterpillar and Peurifoy.

3.2.1 Fuel Cost Estimation

This section discusses methods for estimating the total equipment cost, focusing on the Caterpillar and Peurifoy methods.

3.2.2 FOG Cost Calculation

This section focuses on calculating FOG (Filter, Oil, Grease) costs in the context of equipment cost estimation using the Caterpillar and Peurifoy methods.

3.2.3 Repair and Maintenance

This section discusses methods for estimating total equipment costs using the Caterpillar and Peurifoy methods, focusing on ownership and operating costs.

3.2.4 Tire Cost

This section explores the estimation of tire costs associated with heavy equipment, highlighting its role within overall equipment cost calculations.

Learning Objectives

  • Understanding the difference between ownership and operating costs in equipment management.

  • The Caterpillar and Peurifoy methods are widely used for estimating equipment costs.

  • Key elements in cost estimation include depreciation, fuel consumption, and maintenance costs.

Key Concepts

Ownership Cost

The total costs associated with owning and maintaining equipment, including depreciation, insurance, taxes, and investment recovery.

Operating Cost

Costs incurred through the operation of equipment, such as fuel, oil, maintenance, and labor.

Depreciation

A method for allocating the cost of tangible assets over their useful life, often calculated using straight-line or declining balance methods.

Caterpillar Method

A widely adopted approach for estimating equipment costs based on standard parameters defined by the Caterpillar manufacturing company.

Peurifoy Method

A sophisticated approach to equipment cost estimation that incorporates the time value of money to provide accurate forecasts.

Practice Exercises

Total Questions

2

Estimated Time

4 min

Passing Score

70%

Instructions

  • Read each question carefully
  • You can use hints if you need help
  • Complete all questions before submitting
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