There are broadly two organizational method by which a contractor controls the purchase,maintenance, and use of mechanical equipment for construction work.
A) Central pool of plant
Advantage:
1. central maintenance facilities can be established. Experts can be employed and sophisticated machine tool for repair work can be purchased because of high utilization of their service can be foreseen.
2. It can be made self-accounting and its operation, carefully controlled from all financial aspects.
3. Specialized plant can be bought and its low utilization offset against the more profitable type of plant in popular demand.
4. Contract of all sizes can readily be served.
5. Reserves of plant are available for use at short notice.
6. Research and development of new equipment is possible.
Disadvantage
1. High cost involved in transport the plant from depot to various contract site.
2. Conflict occur where the profitability of the plant pool is first consider before the optimum operation and profitability of the contract.
3. There is no incentives for site to use the machines strictly accordance with their design. Plant may be inadequately serviced because it is not directly under the eyes of the central plant depot.
B) Individual large contract
Advantage
1. No need for central plant depot. Money can spend on other operation of the company.
2. Plant can be selected for each contract on the basis of the individual requirements of those contracts.
3. Maintenance will be rigorously carried out due to probably to sell the equipment and recoup some of its initial investment. As each contract is responsible for the maintenance of its own mechanical equipment.
4. Reduction in plants transport and haulage costs between a site and the central depot.
Disadvantage
1. Certain economics of large purchasing are lost as it is not readily possible to look at the purchasing of plant on a company-wide basis.
2. Lack of reserve plant to call on in an emergency.
3. Maintenance and repair work may be hampered due to lack of facilities. It is seldom economically viable to set up a comprehensive maintenance and repair depot at each and every site.
About Me
- Civil Engineering
- Civil engineers work with structures. They design and supervise the construction of bridges, highways, dams, building, airports, harbors, flood control systems and vast array of projects that affect the quality of life for millions of people worldwide. Civil engineers today are designing methods and facilities to cope with many of our planet's most serious problems. In the face of foul air; decaying cities; roadways, and bridges; clogged airports and highways; polluted streams, rivers and lakes, the civil engineer is being called on to design solutions that are workable and cost-effective. It is a good,creative and profitable proffesion.
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