CE$5170$ Term Project

Problem Statement

A contractor started a business in $2005.$ The business is McAvoy Excavating and primarily performs

contract earth stripping operations. The company started with new equipment and has grown the

business steadily every year since. A complete listing of the equipment spread is given below. Given are

attached sheets for employment purposes. The task is to calculate a summary of monthly costs for the

business to use as a base to bid his equipment spread. The summary of costs table is included for use in

the final packet submission for grading.

Use the knowledge you have learned this semester to build spreadsheets in Excel for submission. All

information should be submitted for review as if a future prospective owner wanted to hire you on a

force account manner billed per month with your equipment spread as a whole and working at $48$ hours

per week average for $7$ months.

The company employs $1$ supervisor, $1$ helper, $1$ union mechanic, $4$ union operators, and $4$ union laborers

The equipment spread consists of

$3$ Kobelco SK$350(2015,2010,2005)$ crawler hoes with a $10-$year life span

$2$ Case $1650(2005,2010)$ dozers with a $15-$year life span

$2$ Case $440CTL(2005,2010)$ track skid steers with a $10-$year life span

All equipment shall have $2000$ hours per year expected utilization with standard utilization operating

time of $1200$ hours per year

Please use

Machinervtrader.com for equipment cost and salvage values.

Select home.

Pick the correct category.

Select size machine.

Scroll to bottom of page and select max$-$min year search $($do a $2-4$ year span$).$

Select search.

At top of screen select view high$/$low$.$

Select average retail for search.

If you get no results, widen the search year, view individual machines, and see if a high

number is skewing results.

Calculate employment figures assuming a $48-$hour work week for $50$ weeks a year. The union

operators and laborers work $7$ months per year at $48$ hours per week.

Note: Nonunion workers receive insurance and retirement only. Union workers receive this benefit in

the fringes.

The company wishes as a goal to have $5\mathrm{.}4\%$ profit margin on all work to cover office overhead.

What hourly rate should you suggest for bidding purposes to cover all costs for a year to be built into

the bidding costs for working the spread for the $7$ months?

Submission

Provide any and all spreadsheets, using the format below for the final summary of costs. Include any and all assumptions used and references for this research.

Summary of Costs

$\backslash$table$[[$Cost$,\backslash$table$[[$Projected$],[$average$],[$cost unit$],[$per hour$]],$Qty$,\backslash$table$[[$Projected$],[$cost per$],[$spread per$],[$hour$]],\backslash$table$[[$Projected$],[$weeks per$],[$year$],[$worked$]],\backslash$table$[[$Projected$],[$billable$],[$hours$],[$week$]],\backslash$table$[[$Projected$],[$gross cost$],[$per year$]]],[$Supervisor$,,,,,,],[$Helper$,,,,,,],[$Union mechanic,,,,,,$],[$Union operator,,,,,,$],[$Union labor,,,,,,$],[$Excavator average cost,,,,,,$],[1650$ dozer,,,,,,$],[\backslash$table$[[$Compact track loader$],[($track skid steer$)]],,,,,,],[$Cost per hour,,,,,,$],[$Margin$,,,,,,],[$Hourly rate,,,,,,$],[,,,,,,],[$Billable Hourly Cost,,,,,,$],[$Billable Monthly Cost,,,,,,$]]$