Intermediate Equipment Handbook
Intech Associates
Figure 1.8
QUOTATION:
‘It is not usually economical for Contractors to own plant unless
they can ensure at least 75 - 80% utilisation factor based on the
Contractor’s normal working hours’
Note:
1. Source: Spon’s Civil Engineering & Highway Works Price Book.
2. UK experience based on 2,100 hours working year.
1.3.7 Market Considerations
In developing countries, the local market for road making and maintenance
equipment can be relatively small. This will tend to support the use of simpler,
flexible equipment which can be deployed to a range of profitable activities both
in and outside the road sector.
It is essential that at all times the private sector is aware of the market prices for
equipment. However they should also be aware of their own real costs, and the
extent and consequences of any under-pricing.
Short term situations should not overly influence strategy on owning or hiring.
Investment in any equipment should normally be seen as a 10 - 20 year
commitment.
The equipment owner should regularly review the equipment investments, to
assess whether it is the best use of assets. Options of disposal, replacement, or
hiring-in should be considered. Retaining the item and putting it to work should
only be considered if it is assessed to be the best option for the
business/operation.
Contractors and their associations should engage in regular dialogue with the
road authorities and clients to ensure that pre-selection and contract
documentation permit the use of intermediate equipment as an acceptable
option for cost-effective road works and fair market access for all categories of
contractors.
October 2012
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