Intermediate Equipment Handbook
Intech Associates
Figure 1.6
EQUIPMENT UTILISATION - COST RELATIONSHIPS
The figure illustrates how finance and depreciation costs increase substantially at annual utilisation of
less than 1,000 hours.
COST VARIATION WITH UTILISATION – 120hp Motor grader
COST VARIATION WITH UTILISATION – 100hp 4WD Tractor + Heavy Towed Grader
The above charts illustrate how the costs of a 120hp motor grader, and a 100hp 4WD tractor and Towed Grader unit
vary with annual utilisation, based on the costing model described in Section 1.4 and in Part 2 of this Handbook. The
data is illustrative only and is based on assumptions of equipment lives of 15,000 hours and finance/opportunity
costs of 15%p.a.. The costs exclude consideration of Overhead and Profit components.
October 2012
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