A6_Spring2024

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University of Illinois, Urbana Champaign *

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Civil Engineering

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Apr 3, 2024

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U N I V E R S I T Y O F I L L I N O I S A T U R B A N A -C H A M P A I G N D E P A R T M E N T O F C I V I L A N D E N V I R O N M E N T A L E N G I N E E R I N G CEE320 CONSTRUCTION MANAGEMENT S PRING 2024 T HE R OCKFORD P ROJECT C HAPTER 6: E QUIPMENT COST & PRODUCTION DUE DATE: T UESDAY M ARCH 26 TH , 3:30 PM Instructor: Prof. Mani Golparvar E-mail: mgolpar@illinois.edu Office Hours: Tue and Thu 2:00 – 3:00 pm or by appointment Zoom: https://illinois.zoom.us/j/83371298730?pwd=UUNid0Y0VmxkUkpHM2g4RDZmd0xWUT09 Contact Teaching Assistants: Junryu Fu , Amir Ghodrati Amiri, Samin Mirshekari E-mails: junryuf2@illinois.edu ; ag104@illinois.edu; saminm2@illinois.edu Office Hours : Mon 12:30pm – 2:00pm, Wed 12:30 pm – 02:00 pm, or by appointment Zoom : https://illinois.zoom.us/j/84767817480?pwd=dzQwbTBBTFAzdi9BYXVYQVYyZVEvdz09 (Password: 025686) Lectures: Tue & Thu, 3:30 PM – 4:50 PM * Please see the Schedule of Sessions for details on location. Notes: 1. This is a TEAM assignment. You can only discuss concepts with other groups. No other discussions are allowed. DO NOT COPY answers from any sources such as Internet or Past Assignments. 2. If you have a problem or question after reading the assignment, please post your question on “Canvas discussion tab”. In case of confidentiality issues, email our instructors team (e.g., Prof. Golparvar, Junryu, Amir, and Samin)

CEE320: Construction Management Assignment 6 Spring 2024 Page 2 of 6 C HAPTER 6: E QUIPMENT COST & PRODUCTION Setting: After determining the Engineer’s Cost Estimate, Management Matters and Claire Clever now have an idea of what the site-work will cost. The estimate provided a dollar amount within the budget, which is good. However, to ensure that the design for the site-work will be realized within budget, it is the aim of Angie Neer and Management Matters to receive a low bid price. To accomplish this, the Notice to Bidders was advertised in newspapers, trade journals, and on the web. Claire's CM firm also maintained mailing lists that contain qualified bidders. As you discussed with Claire earlier this semester, due to her lack of experience in the construction field, it could be a disadvantage for her to obtain a bid price on a negotiated basis. A set of plans and specifications were made available for consultation at the plan room of Management Matters in Charleston, WV. Dirk Dirkson, senior estimator for a well-known earthwork contracting company in WV called "Dirt Diggers,” went to check out th e plans at Management Matters. The job looked promising to Dirk. As soon as he returned to Montgomery, WV, the location of his main office, he sat down at desk and started crunching numbers. After a day or two of rough estimating, Dirt Diggers decided to bid on the earthwork job for the Rockford Shopping Mall. Since the estimate is the basis for determining the bid price, it must be prepared carefully and with the assistance of senior estimators, who have the experience and ability to sense potential trouble spots that will affect the cost. While some of his colleagues prepare the quantity takeoff, Dirk analyzed the company resources in terms of equipment and manpower available for this specific job in order to determine if some of the items would need to be subcontracted. His analysis revealed that for the anticipated time of construction the entire in-house pipe crews specializing in laying large diameter pipes would be working on other job sites. Therefore, Dirt Diggers will have to subcontract the storm-water drainage part of the site preparation. Dirkson contacted some companies that previously worked with Dirt Diggers in the construction of storm-water drainage systems. He asked these companies to provide a cost estimate for the mall's storm- water system. Three potential subcontractors responded to Dirk's invitation. One of these subcontractors, "Pipe Pro Ltd.," was owned by brothers Peter and Paul Piper. The brothers just decided to purchase a new PW55X excavator for $333,000 . The new excavator would allow them to bid for more jobs due to its excellent ability to excavate trenches. Peter and Paul started preparing the cost estimate for Dirt Diggers. Paul realized that he needed to know the resource cost in an hourly rate as well as the production rate for the new excavator to properly estimate the bid price to be submitted to the earthwork contractor. Assignment 6 Imagine Peter and Paul are your uncles. Both are busy and need your help and knowledge to determine the rates for the excavator. You have gathered the following information from historical records and used some of the data to develop equations to forecast residual value and repair costs. The coefficients for these equations are listed below as well. 1. Hours worked per year = 2,600 2. A (Direct Repair Cost Coefficient for H) = 0.024 3. B (Direct Repair Cost Coefficient for H 2 ) = 0.006 4. K (Residual Value Coefficient) = 0.85 5. Residual Value Component (x) = 0.55

CEE320: Construction Management Assignment 6 Spring 2024 Page 3 of 6 6. Interest Rate = 9.5% of AAV 7. Insurance Rate = 3.2% of AAV 8. Tax Rate = 8.2% of AAV 9. Operator Cost = $68 per hour 10. Fuel Consumption = 6.6 gallons per hour 11. Fuel Cost = $3.5 per gallon 12. Oil and Grease Costs = 18.5% of Fuel Cost 13. Track Consumption = 5,200 hours per set 14. Track Cost = $24,800 per set 15. Ground Engaging Tool Consumption = 980 hours per set 16. Ground Engaging Tool Cost = $3,960 per set 17. Maintenance Frequency = 200 hours between service 18. Maintenance Cost = $730 per service Part A: Hourly Cost 1. Carefully calculate the hourly rate of the new excavator that Peter and Paul Piper should use for their bid estimate, which they will later submit to Dirt Diggers. 2. The rate should cover everything that is needed to own and operate the excavator including operator, fuel, oil and grease, repair, etc. Consider overhead of 11.8% and profit of 13.5% . 3. Prepare a memo for "Pipe Pro" setting out your recommended rate and calculations. Part B: Hourly Production 1. Use the Caterpillar Performance Handbook and determine the hourly production rate for the new excavator. Copies of the pages you need are provided here in the assignment (for a link to the latest performance handbook, you can refer to course slides: NOT needed for this assignment, as information provided here is sufficient). The Piper's new PW 55X performs very similar to a CAT 320. In page 5-155, cycle time estimating chart is provided which can be used to estimate the cycle time given the model of the equipment. In page 5-159, production estimating tables are given which can help calculate the number of cycles per unit of time. Since you have visited your uncles on several sites before and observed the construction on these sites, you anticipate that there are 50 minutes of productive effort in every work hour. 2. Add your findings to the memo.

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CEE320: Construction Management Assignment 6 Spring 2024 Page 4 of 6

CEE320: Construction Management Assignment 6 Spring 2024 Page 5 of 6

CEE320: Construction Management Assignment 6 Spring 2024 Page 6 of 6 Assignment 6 Rubric Timeliness and Professionalism (50 points) 40 On-Time Submission 10 Professional presentation Calculations (50 points) 5 Correct Cum. Repair Cost Calcs 5 Correct Res. Value Calcs 10 Correct economic life value (n & $/Hr) 5 Correct AAV 5 Correct IIT 8 2 pts each: Correct Other Ops 2 Inclusion of O&P 5 Correct 60 min production rate (within reason) 5 Correct production rates Note: Give “follows” credit, i.e. a student could get the cumulative repair cost calcs wrong but all else could be right so only 5 points are lost.

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