Profit ability versus construction equipment maintenance
Clutts, Craig A.
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Construction equipment is a high cost of capital investment necessary for the successful existence of a private construction company and essential to the mission success of the Naval Construction Force (NCF). The highest impact cost factor other than the initial purchase investment is the expenses related to maintenance and repair. As the equipment ages, the ownership costs decrease and the operating expenses increase as the maintenance and repairs requirements grow. Both private and public entities desire to manage this high dollar investment for optimization of a perceived profit. This project recommends a decision support model that can be used by private and public entities alike to determine the best fit acquisition method between rent-lease-buy and guidance for profitability optimization. Methods of life cycle cost estimating and decision methods were researched and compared. Data was acquired from equipment rental companies, private construction companies and the NCF. This data was analyzed to select the appropriate decision factors and develop the Construction Equipment Profitability Optimization Model (CEPOM). This model can be implemented by small private construction companies with minimal overhead and a small charging base, and a public entity such as the NCF.
CIVINS (Civilian Institutions) Thesis documentApproved for public release ; distribution is unlimited
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