Practice Value Of Equipment Compared To Contract Value (2.2) - Planning Process of Equipment

Practice: Value of Equipment Compared to Contract Value

Lesson 2.2Planning Process of Equipment

Practise this section

9 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
Define contract value in the context of construction.
Show hintHide hint
Think about what the contractor agrees to be paid.
Question 2.
What is the total cost of ownership?
Show hintHide hint
Consider all the financial aspects related to owning equipment.
3Question 3.
What should a contractor consider before purchasing high-end equipment?
- Current contract value only
- Future job potentials
- Resale value only
Show hintHide hint
Think about the likelihood of subsequent jobs after this contract.
4Question 4.
True or False: The total cost of ownership includes only the purchase price of the equipment.
- True
- False
Show hintHide hint
Consider how equipment costs accumulate over its lifecycle.
Question 5.
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?
Show hintHide hint
Think about how often the machine could be used in future contracts.
Question 6.
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.
Show hintHide hint
Assess if the equipment's benefits are still outweighing the costs.

5 more questions in this section. Enroll free to practise them all.