Equipment Costs by Current Methods

A knowledge of equipment costs is vital to the profitable and efficient use of construction equipment. Four current methods of costing equipment are examined for purpose and procedure. They are the methods developed by the Associated General Contractors of America, the Caterpillar Tractor Company, the U.S. Army Corps of Engineers, and the Equipment Guide-Book Company. Each method is described briefly by outlining what ownership and operating costs are considered and how they are determined in the particular method. The differences between the methods in the treatment of the costs are examined and the reasons therefor. The conclusions are that good historical costs records are necessary to make an intelligent estimate of future costs, and that the method selected will depend on the purpose of the cost estimate.