Assignment 3 Quantity Surveying Sumit
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Humber College *
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300
Subject
Industrial Engineering
Date
Dec 6, 2023
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6
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Assignment 3: Pricing in General and Pricing of Materials, Machinery and Equipment
Subject - Qual. Surv Est & Bidding Proc.
Submitted To – Prof. Nizam Khan
Submitted By – Sumit
Student No. - 301351119
(a)Calculate the unit equipment and labor prices per cu. yd. to excavate 4,000 cu. yd. of the trench using a 3/4 cu. yd. backhoe costing $670.00 per day rental (8 hours) plus $3,000 for transportation and setup charges. The expected equipment output is 60 cu. yd. per hour and managed by an operator and 50 % time of a laborer at wages of $45.00 and $35.00 per hour, respectively. (b)Also, what is the total cost to excavate the 4,000 cu yds of material? Assume a fraction of a day rental cost is the whole day rental cost.
Solution- (a) Excavation of 4,000 cu. yd. with a 3/4 cu. yd. backhoe:
Given data:
Backhoe rental cost: $670.00 per day (8 hours)
Transportation and setup charges: $3,000
Expected equipment output: 60 cu. yd. per hour
Operator wages: $45.00 per hour
Laborer wages: $35.00 per hour
Fraction of a day rental cost: 40%
Calculate the unit equipment and labor prices per cu. yd.:
Calculate the total equipment cost for the project:
Daily backhoe rental cost: $670.00 * (1 + 0.4) = $938.00
Total equipment cost = Daily rental cost + Transportation and setup charges
Total equipment cost = $938.00 + $3,000 = $3,938.00
Calculate the total labor cost for the project:
Total hours of work = Total excavation / Expected equipment output
Total hours of work = 4,000 cu. yd. / 60 cu. yd. per hour
Total hours of work = 66.67 hours
Operator cost = Total hours of work * Operator wage
Operator cost = 66.67 hours * $45.00 per hour = $3,000.15
Labourer cost = Total hours of work * Labourer wage * 0.5 (50% time)
Labourer cost = 66.67 hours * $35.00 per hour * 0.5 = $1,167.25
Calculate unit prices:
Unit equipment price = Total equipment cost / Total excavation
Unit equipment price = $3,938.00 / 4,000 cu. yd. = $0.9845 per cu. yd.
Unit labor price = (Operator cost + Labourer cost) / Total excavation
Unit labor price = ($3,000.15 + $1,167.25) / 4,000 cu. yd. = $1.2916 per cu. yd.
(b) Total cost to excavate 4,000 cu. yd.:
Total cost = Total equipment cost + Total labor cost
Total cost = $3,938.00 + ($3,000.15 + $1,167.25) = $8,105.40
(C) Calculate the unit equipment and labor prices per cu. yd. to excavate 400 cu. yd. of trenching with the same equipment and crew as listed in the question above this one. What is the lesson learned from these two exercises?
Solution:
Volume of excavation=400 cu yd
Backhoe efficiency rate=60 cu yd/hr
Backhoe rental =$ 670/day
Capacity of Backhoe=3/4 cu yd Labor
rate 50%=$ 45/hr.
Labor rate 50%=$ 35/hr.
Transportation and setup charge=$ 3,000
Unit equipment and labor cost per cu yd
• Equipment cost
Equipment efficiency rate per day=8hrs/day*productivity rate
=8hrs/day*60 cu yd=480 cu yd/day
Add up to duration=excavation volume/productivity rate per day
=400 cu yd/(480 cu yd/day) =0.83 days= 1days
(unearthing volume/productivity rate per hrs.=400 cu yd/60 cu yd=6.67 hrs.)
Hardware rental cost=1days* $670/day = $ 670
Gear transport and setup charge = $ 3,000
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Add up to gear and transport and setup fetched =670+3,000=3,670
• Labor(operator ) fetched
Add up to hours=excavation volume/productivity rate of excavator per hour
=4,00cu yd/(60 cu yd/ hr.)=6.67 hrs=7 hrs
=Add up to 7 hrs.
Operator cost
50%*7hrs*$45/hr.=157.50
50%*7hrs*$35/hr.=122.50
Total operator cost = $280
Add up to cost=equipment taken a toll + labor(operator fetched)
=3670+280=$3,950
Unit gear and labor costs per cu. Yd:
=Add up to the cost/volume of unearthing
=3,950/400= $ 9.88/cu yd
Unit hardware and labor costs per cu. Yd =$ 9.88
B) The overall cost to unearth the 400 cu yds of material:
• Total equipment rental cost…=670
• Transportation and setup charges… =3,000
• Operator (labor) wage…= 280
Total
=$ 3,950
Lesson Learned:
Compare the unit equipment and labor prices per cu. yd. for excavating 400 cu. yd. with the same equipment and crew as the unit prices calculated for excavating 4,000 cu. yd. in part (a). The lesson learned is that there may be some economies of scale in larger projects. In this case, it's important to analyze whether the unit prices decrease as the volume of
excavation increases. If so, it suggests that larger projects benefit from better equipment and labor utilization, resulting in lower unit costs.
D) The hourly rental cost for an excavator is $172.00/hr., the operator wage rate for this equipment is $40.00 per hour, and the expected productivity of the excavator is 50 cu. yd. per hour. Calculate the unit prices for labor and equipment for these conditions. Use these unit prices to determine the total cost to excavate 4,800 cu yds of soil. Assume the excavator uses 10 gallons of diesel/8 hr.-day and the cost of diesel is $3.00/gal. Solution -
Given data:
Excavator rental cost: $172.00 per hour
Operator wage for the excavator: $40.00 per hour
Expected productivity of the excavator: 50 cu. yd. per hour
Diesel consumption: 10 gallons per 8-hour day
Cost of diesel: $3.00 per gallon
Calculate the unit prices for labor and equipment:
Calculate the total equipment cost for the project:
Total hours of work = Total excavation / Expected equipment output
Total hours of work = 4,800 cu. yd. / 50 cu. yd. per hour
Total hours of work = 96 hours
Total equipment cost = Total hours of work * Excavator rental cost
Total equipment cost = 96 hours * $172.00 per hour = $16,512.00
Calculate the total labor cost for the project:
Operator cost = Total hours of work * Operator wage
Operator cost = 96 hours * $40.00 per hour = $3,840.00
Calculate the diesel cost:
Diesel cost = (Diesel consumption / 8 hours) * Cost of diesel
Diesel cost = (10 gallons / 8 hours) * $3.00 per gallon = $3.75 per hour
Calculate unit prices:
Unit equipment price = Total equipment cost / Total excavation
Unit equipment price = $16,512.00 / 4,800 cu. yd. = $3.448 per cu.yd.
Unit labor price = (Operator cost + Diesel cost) / Total excavation
Unit labor price = ($3,840.00 + $3.75 per hour * 96 hours) / 4,800 cu. yd.
Unit labor price = ($3,840.00 + $360.00) / 4,800 cu. yd. = $0.840 per cu.yd.
Calculate the total cost:
Total cost = Total equipment cost + Total labor cost
Total cost = $16,512.00 + ($3,840.00 + $360.00) = $20,712.00
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