Practice Value of Equipment Compared to Contract Value - 2.2 | 1. Planning Process of Equipment | Construction Engineering & Management - Vol 1
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Knowledge

2.2 - Value of Equipment Compared to Contract Value

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define contract value in the context of construction.

💡 Hint: Think about what the contractor agrees to be paid.

Question 2

Easy

What is the total cost of ownership?

💡 Hint: Consider all the financial aspects related to owning equipment.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What should a contractor consider before purchasing high-end equipment?

  • Current contract value only
  • Future job potentials
  • Resale value only

💡 Hint: Think about the likelihood of subsequent jobs after this contract.

Question 2

True or False: The total cost of ownership includes only the purchase price of the equipment.

  • True
  • False

💡 Hint: Consider how equipment costs accumulate over its lifecycle.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

You are a project manager contemplating purchasing a tunnel boring machine for $5 million. The project contract is worth $3 million, and you foresee potential projects over the next 5 years that could utilize the machine. What factors should you consider in your analysis?

💡 Hint: Think about how often the machine could be used in future contracts.

Question 2

A contractor bought a specialized piece of equipment for $1 million. After five years, its maintenance costs increase significantly. Discuss the factors that could indicate the need for replacement versus continuing to use the equipment.

💡 Hint: Assess if the equipment's benefits are still outweighing the costs.

Challenge and get performance evaluation