CONSTRUCTION MANAGEMENT &

ENTREPRENEURSHIP
BCV501

Presented By,
Mrs SHRUTHI H G
Assistant Professor
Dept of Civil Engineering
ATMECE, Mysuru
 SYLLABUS
MODULE 2:
Resource Management: Basic concepts of resource management, class of lab our, Wages
& statutory requirement, Labour Production rate or Productivity, Factors affecting labour
output or productivity.

ATMECE 2
RESOURCE MANAGEMENT

➢ INTRODUCTION

➢ CLASS OF LABOUR

➢ WAGES & STATUTORY REQUIREMENT

➢ LABOUR PRODUCTION RATE

➢ FACTORS AFFECTING PRODUCTIVITY

INTRODUCTION

• Completion of construction project at maximum efficiency of time & cost requires judicious scheduling
and allocation of resource.

• Manpower, Materials, Money & Machines require close management attention.

• “Supply & support the field operations so that established time objectives can be met”.
IMPORTANCE OF MANPOWER

• Discover talented and competent workers

• Greater production

• Avoid sudden disruption of an enterprise production

• Prevent under utilization of personnel through overmanning

MANPOWER PLANNING

1
• Schedule the work elements

2
• Describe the work elements

3
• Chart of manpower

4
• Avoid sudden and steep fluctuations
CLASS OF LABOUR
IS 10302:1982 – “Unified nomenclature of

workmen for civil engineering”

Approved by Civil Engineering Division Council

• Skilled/semiskilled

• Unskilled

• Managerial/Technical
WAGES & STATUTORY REQUIREMENTS
• Construction workers have no job security and are least trained.

• Construction labour leads a migratory life working in different sites.

• The economic conditions of construction labour are the worst due to poor bargaining power, illiteracy and
the temporary nature of their employment.
WAGES & STATUTORY REQUIREMENTS
• Trade unions: AITUC(All India Trade Union Congress), INTUC(Indian National Trade Union
Congress), BMS(Bharathiya Mazdoor Sangh)

• Trade union Act – 1926

• Labour Welfare Fund Act – 1965

• Payment of wages Act - 1936

• Workmen’s Compensation Act - 1923

ESTABLISHING WORKERS PRODUCTIVITY STANDARDS
LABOUR PRODUCTION RATE

➢ Rate of transformation of inputs into outputs in a productive operation.

➢ It requires resources in the form of men, machine, materials & money.

➢ Labour productivity may be defined as the ratio of output to labour input (Productivity analysis).

➢ The measurement varies organization to organization.

HUMAN FACTORS & PRODUCTIVITY IMPROVEMENT
• Motivation of workers can be enhanced through job enrichment.

• Workers are motivated by completing quality productive work, social relations at work.

• Goal setting, planning and communications improve the performance.

FACTORS AFFECTING LABOUR OUTPUT

• Overtime • Labour Availability

• Morale & Attitude • Stacking of trades
• Work complexity • Joint occupancy
• Repetition of work • Mobilize/Demobilize
• Errors & omissions
• Quality Control
• Start/stop
• Equipment intensive task
• Logistics
• Supervision • Hazardous work area3
• Dilution of supervision
CONSTRUCTION EQUIPMENTS
• Earthwork Equipment

• Concreting Plant Equipment's

• Material Hoisting Equipment

• Heavy Construction Plant Equipment

• Support & Utility Services Equipment

EARTHWORK EQUIPMENT:
1. Earth cutting and moving equipment: Bulldozers, Scrapers, Front-end loaders, Motor graders.

2. Excavation and lifting equipment: Backhoes, Power Shovels, Draglines, Clamshells.

3. Loading equipment: Loaders, Shovels and Excavators.
4. Transportation equipment: Tippers, Dump Trucks, Scrapers, Conveyors.
5. Compacting equipment: Tamping Foot Rollers, Smooth Wheel Rollers, Pneumatic Rollers, Vibratory
Rollers and Plate Compactors.
CONCRETING PLANT AND EQUIPMENT
1. Production equipment: Batching Plants, Concrete Mixer

2. Transportation equipment: Truck mixers, Concrete dumpers

3. Placing equipment: Concrete pumps, Conveyors, Hoist, Grouting equipment.
4. Concrete vibrating equipment: Needle vibrators, Plate compactors

MATERIAL HOISTING EQUIPMENT

1. Hoists: Fixed, Mobile, Fork-lifts.
2. Mobile Cranes: Crawler-mounted, self-propelled rubber-tired, truck mounted.
3. Tower Cranes: Stationary, Travelling type.
SPECIAL PURPOSE HEAVY CONSTRUCTION PLANT AND EQUIPMENT
1. Aggregate production equipment: Crushing plants, Rock blasting equipment, screening plants.

2. Concrete paving equipment: Concrete paver finishers.

3. Pile driving equipment: Pile driving hammers.
4. Asphalt mix production and Placement equipment: Asphalt plants, asphalt pavers.
5. Tunneling equipment: Drill jumbos, Muck-hauling equipment, Rock bolters, Tunnel boring machines.
ESTIMATION OF PRODUCTIVITY FOR CONSTRUCTION EQUIPMENTS

1. Earthmoving Equipment:

▪ Production = (Volume per cycle * Cycles per hour)

▪ Cost per unit production = (Equipment cost)/(Equipment production per hour)

2. Excavating and Lifting Equipment: Face shovel, Backhoe, Dragline, Clamshell

3. Dozers

4. Compactors: Smooth wheeled Rollers, Sheeps foot Rollers, Pneumatic tyred Rollers, Tandom Compactors

5. Graders

6. Hauling Units
ESTIMATION OF OWNERSHIP
1. Initial capital cost

2. Depreciation

3. Investment cost

4. Insurance cost, taxes and storage cost

1. INITIAL CAPITAL COST

• It is about 25% of the total cost invested during the useful investment life.

• Initial cost consists of:-

1. Price at extra + extra equipment + sales tax

2. Cost of shipping

3. Cost of assembly & erection

2. DEPRECIATION
• It represents the decline in market value of the equipment.

• Depreciation results from physical deterioration and economic decline.

• Methods of Depreciation:-

1. Straight Line

2. Declining balance

3. Sum of the years – digit

4. Sinking fund
STRAIGHT LINE DEPRECIATION

• Equipment will lose the same amount of value in every year.

DECLINING BALANCE METHOD

• Constant percentage of the book value of the previous period of the asset will be
charged as the depreciation amount for the current period.
SUM OF THE YEARS DIGITS METHOD
• It is assumed that the book value of the asset at a decreasing rate.

• Rate is calculated by the following way:-

➢ If the no. of years = 10
➢ Sum of the years =
➢ Rate of depreciation for 1 – 10 years are 10/55, 9/55, 8/55,
………………………1/55
SINKING FUND METHOD
3. INVESTMENT COST
• It represents the annual cost (hourly cost) of capital invested in a machine.
• Average annual cost of interest is based on the average value of the equipment during its useful life.
4. INSURANCE, TAX & STORAGE COSTS

• Insurance cost represents the cost incurred due to fire, theft, accident for the equipment.
• Storage costs represents rent & maintenance of the storage yards.
• Insurance & tax costs are also known as fleet basis.
EQUIPMENTS COST

OWNERSHIP COST– It is the cumulative results of those cash flows an owner experiences whether (or) not the
equipment is productively employed on the project. Significant cash flows affecting the ownership cost are,
❑ Purchase expenses
❑ Salvage value
❑ Tax savings from depreciation
❑ Major repairs
❑ Property taxes
❑ Insurance
❑ Storage
OPERATING COSTS – Typical expenses include,

a) Minor (or) Normal Maintenance cost

b) Repairs
c) Fuel
d) Lubricating oil
e) Replacement cost – wear & tear items
 EQUIPMENT SUITABILITY
The most important factor that determines the suitability of equipment for earthwork is the soil (or) the earth
itself. The type of earth moving equipment required varies with the nature of the soil and task to be performed.

1) Excavating and lifting soft earth

a) Deep pit excavation – Clamshell and dragline

b) Shallow pit excavation – Back hoe
c) Ground level excavation – Power shovels
d) Shallow trenching – Back hoe (excavator)
e) Wet soil excavation – Dragline
2. Cutting over areas
Short hauls – Dozers
a)

b) Long hauls – Scrapers

3. Loading and transporting the excavated soil

a) For loading soil – loaders, power shovels, excavators
b) For transporting soil – tippers, dumpers, scrapers

The main ground characteristics which influence the performance of equipment are,

1) Suitability of an equipment
2) Digging effort
3) Volume conversion
4) Equipment output
Digging Effort – It depends upon the nature of the soil. The typical soil factors which determine
comparative equipment efforts required in various types of soil are as follows:

Nature of soil Digging effort Soil factor

Loam, sand, gravel Easy 1.0

Common earth

Medium 0.85
(ordinary soil)

Stiff clay, soft rock Hard 0.61

Volume Conversion – The volume of the soil in its place in natural state is referred to as bank volume.
When it is in loose state, it is called as loose volume and when it is in compacted state, it is called
compacted volume.

Nature of soil Bank Loose Compacted

Volume Volume Volume

Common earth 1 1.25 0.90

Sand 1 1.12 0.95

Clay 1 1.27 0.90

Rock (blasted) 1 1.50 1.30

PERFORMANCE EFFICIENCY FACTOR

Assessed equipment
efficiency working Performance
(min/hr) efficiency factor

60 1.0
55 0.92
50 0.85
45 0.75
40 0.67
CORRECTION FACTOR
1) Equipment Performance Comparison

Equipment Factor multiplier

Power Shovel 1.0
Back Hoe 0.80
Dragline 0.75
Grab 0.40

2) Soil Digging Factor

Digging effort Factor multiplier

Easy digging 1.0
Medium digging 0.85
Hard digging 0.67
3) Swing Factor

Angle of Swing 45° 60° 75° 90° 120° 150° 180°

Factor value 1.20 1.16 1.05 1.0 0.88 0.79 0.71

4) Load Casting Factor

Method of casting Factor multiplier

Open area Restricted area
Side casting 1.0 0.80
Loading in vehicle 0.80 0.60
DOZER PLANNING OUTPUT
❑ Bulldozers are versatile machines which is used for moving earth up to 100m, moving and grubbing the
sites, used for pushing scrapers, spreading soil to level the surface, maintaining roads, etc.,
❑ The ideal output is measured in bulk volume (loose soil) assuming a forward dozing speed of 3km/hour,
return speed of 6km/hour, maneuvering time of 0.15 minutes, easy going on general level ground and dozing
of materials using straight S-blade.
Dozer output = Dozer ideal output * Correction factor * Performance factor (in LCM)
Correction Factors
1) Blade Factor Multiplier

Type of blade Blade Factor

S-blade 1.0
A-blade 0.75
1.25 (used only for
U-blade
loose soil)
2) Transmission Factor – Take 80% of the ideal output if it is based on power shift system

3) Grade Factor

Nature of slope Effect on output (%)

Downhill working Increase 2.5 * grade (%)
Uphill working Decrease 2 * grade (%)
4) Soil Factor

Digging effort Soil Factor

Easy digging 1.0
Medium digging 0.85
Hard digging 0.67
5) Swell Factor

Type of soil Swell factor

Common earth 1.2
Sand & Gravel 1.1
Dry clay 1.3
Rock 1.5
Scraper Planning Output
Scraper is equipment that is commonly used for scraping, loading, hauling and discharging. It
also includes spreading large quantities of earth over long distances for around 3 km and in
layers of 15 cm to 30 cm depth. There are two main categories of scrapers, namely,
a) Towed scrapers – They are best suited for medium distances up to 400 m. It can operate in
small areas and scrape in heavy soil areas.
b) Motorized scrapers – These include single engine scraper, double engine scraper and
elevating scraper.