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The chapter delves into the estimation of equipment costs, primarily focusing on ownership and operating costs. It outlines two prominent methods, the Caterpillar method and the Peurifoy method, for accurately assessing these costs. Key components such as depreciation, annual usage, interest rates, and labor costs are elaborated upon to provide a comprehensive understanding of equipment management in construction.
Chapter 1318 sections
The chapter delves into the estimation of equipment costs, primarily focusing on ownership and operating costs. It outlines two prominent methods, the Caterpillar method and the Peurifoy method, for accurately assessing these costs. Key components such as depreciation, annual usage, interest rates, and labor costs are elaborated upon to provide a comprehensive understanding of equipment management in construction.
Estimating equipment costs involves both ownership and operating costs.
The Caterpillar method provides a straightforward approach for cost estimation.
The Peurifoy method emphasizes the time value of money for more accurate estimations.
The total cost associated with owning equipment, including depreciation, interest, insurance, and taxes.
The ongoing costs for operating equipment, such as fuel, labor wages, and maintenance.
The reduction in value of an asset over time, used in calculating ownership cost.
A method of estimating equipment costs based on ownership and operating costs calculated separately.
A method that incorporates the time value of money in the estimation of equipment costs.
Total Questions
2
Estimated Time
4 min
Passing Score
70%
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