1.2. General Guidelines for Equipment Planning

Try these first

1. 1.

   What are ownership costs in relation to equipment?

   Hint

   Consider what costs you would incur apart from the purchase of equipment.

2. 2.

   Why is economic utilization important?

   Hint

   Think about how you want to maximize the machinery's effectiveness.

3. 3.

   What is a key component of effective equipment planning?

   • Only cost
   • Type of job
   • Both cost and productivity
   • Project timeline

   Hint

   Remember the dual focus of financial decisions and operational capabilities.

4. 4.

   True or False: The only consideration when purchasing equipment is the initial buying price.

   • True
   • False

   Hint

   Think about what happens after the equipment is bought.

5. 5.

   Given a project with an estimated budget of $500,000, assess whether investing in a new excavator for$200,000 is a sound decision if current machines can manage the workload.

   Hint

   Consider the overall project demands vs the costs.

6. 6.

   Create a risk assessment matrix for selecting between renting and purchasing specialized construction equipment.

   Hint

   Think of long-term plans against immediate needs.