Alternative Methods for Payment of Construction Equipment Ownership Costs on Federally Funded Projects

by Edward J. Kuipers, Univ of Wisconsin, Madison, WI, USA,



Document Type: Proceeding Paper

Part of: Effects of Deterioration on Safety and Reliability of Structures

Abstract:

Construction equipment investment is a significant portion of the capital investment for contractors specializing in heavy construction. Operating this equipment under the changes clause of Federally funded projects presents the contractor with unique management options. The objective of any payment procedure should be the compensation (or recovery) of the loss in market value of the investment and an appropriate amount for sufficient return on investment so that organizations continue to invest in the construction industry. Comparisons are made between the current Corps of Engineers Expense Schedule and the Associated General Contractor's method (current, 1974, and 1966). Results of cash flow analysis are presented for consideration.

Subject Headings: Construction equipment | Contracts and subcontracts | Investments | Value engineering | Construction methods | Payment | Federal government

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