CEC Construction Equipment Costs & Ownership 3

Question 1

Repair and maintenance costs for construction equipment are often estimated as a percentage of:

Accepted Answer

Delivered purchase price of the equipment

Answer

Industry standard practice estimates repair and maintenance costs as a percentage of the equipment's delivered purchase price over its useful life, with rates varying by equipment type and working conditions.

Question 2

Which type of equipment cost is directly affected by job site conditions such as soft soil, steep grades, and high altitudes?

Accepted Answer

Operating cost (fuel and wear parts)

Answer

Difficult job site conditions increase fuel consumption, accelerate wear on tires and undercarriage, and raise repair costs — all operating cost components — while ownership costs remain largely fixed.

Question 3

A contractor owns an excavator with a total O&O cost of $120 per hour. If the machine works 1,800 hours in a year, what is the annual equipment cost?

Accepted Answer

$216,000

Answer

Annual equipment cost = Hourly O&O Cost × Annual Hours = $120 × 1,800 = $216,000.

Question 4

In construction estimating, which term refers to the cost of moving a piece of equipment within a job site from one work area to another?

Accepted Answer

Repositioning

Answer

Repositioning refers to moving equipment within a job site, as distinct from mobilization (bringing equipment to the site) and demobilization (removing it after work is complete).

Question 5

The 'Blue Book' (Rental Rate Blue Book) is commonly used by estimators to:

Accepted Answer

Establish fair market rental rates and ownership costs for equipment

Answer

The Rental Rate Blue Book (published by EquipmentWatch) provides fair market rental rates and ownership cost data for a wide range of construction equipment, serving as an industry-standard estimating reference.

(CEC) Construction Estimator Certification Practice Test

(CEC) Construction Estimator Certification Practice Test

CEC Construction Equipment Costs & Ownership 3