Demolition activity is increasingly dependent on heavy equipment as the primary means of dismantlement. This mechanized wrecking process qualifies as a severe working condition for the heavy equipment employed. Demolition practitioners note that the severe conditions encountered increase the operating cost of the equipment employed. There are occasions when unexpected project conditions or disaster response necessitate negotiated compensation for demolition services. In these negotiations, hourly cost references are utilized by contracting agencies to benchmark hourly billings. Supervising engineers recommend using the hourly values quoted in national cost references for standard construction services because no specific guidance for cost adjustment is provided by the cost reference guides. Because this cost differential is not recognized by supervising engineers, it is important that the magnitude of severe duty demolition equipment costs be brought to the attention of the engineering community. This manuscript introduces the problem, describes survey research, compares the research outcomes with known data, and presents possible variables to consider in application of the results. Results provide support for an incremental increase in reimbursement rates of from 10% to over 200%. This wide reimbursement range results from the complexity and variety of heavy equipment utilized and the specific hydraulic demolition tools employed.
Construction equipment, Costs, Demolition, Accounting, Payment
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