2.4.
1 Construction Labor
Construction laborers influence every part of a project. There
are many factors that contribute to as follows:
Equipment operation
Installation of materials
Making decisions
And Many people agree that the cost to hire a labor includes:
Base wage
Overtime
Workers compensation
Public liability
Insurance
Social security
Unemployment compensation tax
Property damage
And any fringe benefits
2.4.2 Source of Labor Rates
Wage rates vary considerably with the location of projects and
the various types of crafts. Some countries has regulation
which determine employer to comply with the laws.
The laws stipulate the hourly rate of construction labors.
Table 4.1 represents base wage rates in the US in 2001
Table 4.1: Wage rates in the United States
All though cost of labor is paid by hourly rates, an
employer must pay for other items as mentioned in 2.4.1
Cost of labor per hour is normally paid by using base
rates. Base rates apply normally apply to work done
during the 40-hr/week, 8hr/day and 5 days/week. For
work excess of 8hr/day or 40hr/week, the base rate is
increase to 1.5 times or 2 times the base rate as shown in
the table 4.1
The government requires an employer to pay a tax for
the purpose of providing retirement benefits to persons
who become eligible. (7.5%)
This tax, which is collected by the government, is for the
purpose of providing funds with which to compensate
workers during periods of unemployment. (3%)
Most donors funds require contractor to carry works
compensation and employers liability insurance as a
protection to the workers on a project.
This insurance protects the contractor against injuries to
general public or damage to public property due to
actions of the employee while performing work during
the construction.
As a part of the agreement of employment, the
contractor often agrees to pay benefits for the employee.
Examples are health insurance, pension plan, training
program paid holiday, and vacation.
Example 4-1:
An bricklayer works 10hr/day, 6days/week. A base wage of
$20.97 per hour for all straight-time work, 8hr/day,
5days/week. An overtime rate of time and 1.5 is paid all for all
hours over 8hr/day, Monday through Friday, and double time is
paid for all Saturday work. The social tax is 7.65%, and
unemployment is 3% of actual wages. The rate for workers
compensation insurance is $12.50 per $100 of base wages and
public liability and property damage insurance rate is $3.25 per
$ 100 of base wages. Fringe benefits are 3.15 per hour.
Calculate the average hourly cost to hire the bricklayer.
Pay hours and actual hours:
Actual hours= 10 hr/day X 6 days/week=
60 Hrs
Pay hours = 5 days/hr x 8 hr/day x 1+ 5 days x 2 hr/day x 1.5 + 10 hr x 1 day x 2)
= 40 hr+15 hr+20hr
= 75 hr
Base wage and average hourly pay:
Base wage= $20.97/hr
Average hr pay= (pay hour/actual hour) x 20.97/hr=
26.21
The cost to hire bricklayer would be:
Average huorly pay=
26.21
Social security tax= 7.65% x 26.21
2.01
Unemployer tax= 3% x 26.21
0.79
Works' compensation= 12.50 /100x 20.97
Public liability/property damage=3.25/100x20.87
2.62
0.682
Fringe benefits=
3.15
Average hourly cost
35.45
Daily Cost= 10hr/day x 35.45 =
Weekly cost= 60 hr/day x 35.45=
354.50 per day
2,127.00
per week
Monthly cost= 60hr/week x (52 weeks/12 months) x 35.45=
Yearly cost= Per moth x 12 months
110,604.00
9,217.00
Per Year
Per Month
2.4.7 Production Rates for Labor
A production rate is defined as the number of units of work
produced by in specified time, usually an hour or a day.
The time that a laborer will consume in performing a unit of
work will vary between laborers and projects with climate
conditions, job supervision, complexity of operation and other
factors. For example, it requires more time to cast concrete
stairs than concrete slabs. An estimator must analyze each
operation to determine the probable time required for the
operation.
Information on the rates at which work has been performed on
similar project is very helpful. Such data can be obtained by
keeping records of the production of labor on projects as
construction process.
Example 4.2:
This example presents a method of determining the probable
rate of placing reinforcement concrete steel for a given
project. Steel bars are to be used for to reinforce a concrete
slab 59m by 59 m wide and long. The reinforcing steel will be
round bar, diameter 10mm, no bends, maximum length is 20 m,
and spaced in 10cm, both ways. All laps will 50 times of
diameter. The steel will be stored in orderly stock piles,
according to length, about 100m from the center of the slab.
The concrete slab will be constructed on the ground.
Quantity of work:
The length of the bars parallel to width 59m:
Length of side
= 59m
Length of laps
= 50 * 10 * 2= 1m
Total length per row is
= 59+1=60m
Total number of bars required = 3*20= 60m per row
Number of bars
=60/10=6 rows
Total length of the bars
=60*60m= 3,600m
The weight of reinforcing bars is= 3,600 *0.617=2221.2kg=2.22T
Because the slab is square= 2.22 X 2=4.44T
Number of bars: 3x 6x 2x=36 bars
Time required to place the bars
Cycle time
Assume time to walk to 200m is 100m/minute= 2 minutes
Add time to pick up and put down
=1 minute
Time for round trips =2+1=3 minutes
Assume that 2 persons can
approximately 75kg each trip
carry
bars,
weighting
Number of required trips= 36/6=6 trips
Total time to carry reinforcing: 6 trips x 3min per trip/60=0.3
hour
Assume that 2 person working together can place 2 bars per
minute or 120 bars per hour, so time to place is: 36
bars/120=0.3 hr
Assume that a person ties per minute and total ties required
are 600 ties. So two person can work: 2 x 5 x 60=600 ties/hr
Total time requirement is: 600/600=1 hr
Total time
Carrying reinforcing= 0.3 hr
Placing reinforcing = 0.3 hr
Tying reinforcing = 1.8 hr
Efficiency of a worker is not more than 45 -50 minutes
So, 1.8 x 60/45= 2.4 hours
Production of labor tons per hour=2.22/2.4=0.98tons per hour
For a person a laborer can produce: 0.98/2=0.49 tons per hour
All projects involve the use of construction equipment to some
extend. The purchase of equipment represents a capital
investment by the construction contractors. The contractors
must recovery sufficient money to pay the ownership and
operation costs of the equipment during its service life and in
the same time make a profit on the investment.
2.5.1 Renting or Purchasing
Choice between renting and purchasing depends on the amount
of time the equipment will be used in the contractors
operations.
2.5.2 Equipment costs
2.5.2 Equipment costs
When equipment is purchased, it is important to determine
owning and operating costs of each unit. The following factors
should be taken into consideration:
Ownership costs:
Investment cost
Depreciation
Taxes and insurance
Operating costs:
Maintenance and repair
Fuel and lubricating oil
Investment costs:
The purchase of construction equipment requires a significant
investment of money. The money to purchase either by
borrowing from bank or contractors funds.
Depreciation costs:
Depreciation is the loss in value of equipment resulted
from use and age.
Taxes and insurance:
Construction equipment is taxed as property. The amount of
taxes will be depended on types of equipment and
geographical locations.
Ownership costs
For estimating the ownership costs of equipment, the capital
recovery and sinking fund equations can be used.
Capital Recovery Equation
equation 5.1
Where
P = Purchase price
A = equivalent annual value
i= annual interest rate
n= useful life, in years
Sinking Fund Equation
equation 5.2
Where
A = equivalent annual value
F= future salvage value
i= annual interest rate
n= useful life, in years
Example 5.2
The purchase price of new equipment is $145,000. The estimated
salvage value is $25,000 after the end of its expected useful life of
6 years. Assume interest for borrowing money is 9%, 5% for risk
and 3% as the equivalent interest rate for taxes, insurance and
storage. Thus, the total combined annual interest rate will be
17%.
Capital recovery is:
= 40,399.15
Sinking Fund is:
A= 2,715.37
So, Capital recovery Sinking fund= 40,399.15 - 2,715.37
= 37,683.78
Several methods can be used to calculate the ownership cost.
One method is used to charge per hour based on the expected
use rate per year.
Hourly ownership charge= $ 37,683.78/1,200 hr= 31.40 per hr
Hourly ownership charge= $ 37,683.78/1,500 hr= 25.12 per hr
Daily
day
ownership charge= $ 37,683.78/250 days=$ 251.23 per
Operating costs:
Operating costs only when the unit of equipment is being used,
whereas ownership costs accrue whether or not the equipment
is used. Operating costs include:
Maintenance and repair;
Fuel, oil and lubricants.
Maintenance and repair costs
The cost of maintenance and repairs include the expenditures
for replacement of spare parts and labor required to keep the
equipment in good condition. These costs vary considerably
with the type of equipment and operating conditions.
Assignment 1:
1. Find
the reason bind why projects went wrong.
Choose four projects of any civil works from the
Internet. Provide also the web link. You should
write not more than 9000 words.
2.
Fuel Consumption:
Consider a backhoe with a diesel engine will rated at 160 hp.
Efficiency operating factor is 75%. Also, the machine will not
operate more than 45minute/hour. The diesel engine consume
about 8l of fuel per hour.
Time factor: 45/60=0.75
Efficiency operating factor =0.75
Fuel consume per hour=0.75*0.57*8= 4.5 l/hr
Assignment No-1
1.
Find reason of four civil work project why went. Also,
provide the web link from the Internet and you should not
write more than 9000 words.
2.
Calculate the weighted unit cost per square meter for the
project data shown and determine the cost of a 2000
square meter
Project
Total cost
Size, square
$147,000
2580
$ 153,000
2900
$ 128,000
2000
$ 118,000
1560
$ 135,700
2300
1.3 Early estimates are extremely important to the owner.
From the perspective of the owner, give examples of problems
that may arise if an early estimate is significantly lower than
final actual cost of a project.
1.4 Early estimates are extremely important to the designer.
From the perspective of the designer, give examples of
problems that may arise if an early estimate is significantly
lower than final actual cost of a project.
1.5 A backhoe will be purchased for a cost of $ 100,000. After
a useful life of 5 years, It is assumed that the equipment will
be sold for $35,000.00. Assume interest of 8%, 4% for risk and
2% as equivalent taxes, insurance and storage. Find out the
annual ownership and the cost per hour assuming the
equipment will be used 1,800 hr/year.
