To budget machinery you need to know how much an effective hour of work costs and what amount of work is produced during it. KOSAN has a hourly equipment cost calculator that brings together investment parameters, economic life, consumption and operation, and allows you to apply the result to the selected resource.
That link between equipment and budget helps explain the amount of the APU. It also allows you to review how the cost of line item changes when productivity rate changes, even though the price of fuel remains the same.
What does the hourly equipment cost include?
The analysis organizes the expenses associated with the equipment. As a technical reference, the federal public works regulations distinguish fixed costs, consumption and operation; It also relates the cost per effective hour to the productivity rate to obtain the cost of machinery per unit of work. RLOPSRM Items 194 to 208.
Among the components that should be reviewed are:
- Depreciation: recovery of depreciable value during economic life.
- Investment and insurance: costs associated with capital and equipment protection.
- Maintenance: necessary work to keep it in conditions of use.
- Consumption: fuel, lubricants, tires or other components depending on the equipment.
- Operation: cost of the personnel that operates it.
The conditions of income, mobilization or permanence on hold require their own analysis according to the scope considered. It is important to define what the quote contains and what expenses you are additionally calculating.
Example of a machine that costs $620 per hour
Let's take a generic tire kit. All figures are hypothetical, in Mexican pesos and before VAT; They do not represent a rental fee or a manufacturer's token.
To illustrate depreciation, assume initial depreciable value of $1,200,000, salvage of $240,000 and economic life of 9,600 hours:
Depreciation = ($1,200,000 − $240,000) ÷ 9,600 = $100 per hour.
The other charges are adopted as assumptions already expressed per hour. Fuel is equivalent to 10 liters per hour at $24 per liter.
| Example Component | Cost per hour |
|---|---|
| Depreciation | $100 |
| Investment | $60 |
| Insurance | $20 |
| Maintenance | $50 |
| Fuel | $240 |
| Lubricants | $20 |
| Tires | $10 |
| Operator | $120 |
| Total | $620 |
This sum allows us to understand the integration. To analyze a real machine you need to support each component with its parameters, tabs and operating conditions. In particular, maintenance and consumption must correspond to the equipment used.
From cost per hour to cost per cubic meter
Suppose the equipment produces 40 m³ per effective hour in a given job. The machinery cost of line item would be:
$620 per hour ÷ 40 m³ per hour = $15.50 per m³.
Now keep the hourly equipment cost and reduce the productivity rate to 25 m³ per hour:
$620 ÷ 25 = $24.80 per m³.
The machinery component increases $9.30 per m³, equivalent to 60% compared to the first scenario. The variation comes from productivity rate; the cost per hour is still $620.
For a volume of 1,000 m³, these scenarios represent $15,500 and $24,800 of machinery, respectively. Other resources and charges are excluded from selling price.
The practical conclusion is to review the procedure: hauling distance, access, materials, team coordination and effective hours can change the productivity rate. A nominal token is a reference point that needs to be contrasted with the work.
How to perform analysis in KOSAN
The module Hourly equipment cost machinery Lists the equipment and machinery resources of the project. By selecting one you can open the calculator and capture its parameters.
The tool has fields for acquisition and salvage value, economic life and annual hours, fuel, lubricants, maintenance, tires, investment and insurance. It also includes the operator's cost and additional consumption. The calculated result can be saved and applied to the resource.
This allows the relationship between the analysis of the equipment and its use in the unit price analyses to be preserved. When reviewing the APU, also check the quantity or productivity rate with which that resource participates: a well-integrated hourly equipment cost needs a coherent participation to become a cost per unit of work.
What to check before finalizing the estimate
- Identifies the equipment and its capacity for the intended work.
- Reviews acquisition, surrender and economic life values on a consistent basis.
- Distinguishes effective hours from availability hours or from a complete workday.
- Support consumption and prices with equipment information and applicable quotes.
- Check if operator and other charges are already included in a rental.
- Check the productivity rate of the line item and its unit of measurement.
Fuel date and equipment availability also matter. It is advisable to keep the reference used to be able to update the analysis when its conditions change.
Frequently asked questions
Are hourly equipment cost and rental price the same?
They are analyzes that can have different scopes. An income may include certain expenses and exclude others; Check the contract or quote before comparing them.
Can I divide the cost by the working hours per day?
You must check what the amount represents and how many effective hours are contemplated. An available workday may include travel, preparation or waiting times.
Does faster equipment always reduce the cost of line item?
Compare your hourly equipment cost and your productivity rate together. It also checks compatibility with the work area, access and support equipment you need.
KOSAN allows you to prepare the equipment analysis and use it within the budget, with parameters that you can review when the execution scenario changes.
You can check how the team participates in a unit price analysis in the unit price analysis guide.