Construction Equipment Executive Institute

Learn the fundamentals of fleet management from our collection of articles and videos. The best in asset management for the construction equipment professional.

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I got into a lot of trouble as a young field engineer by telling my boss that cost overruns were not a problem. I told him that the real problem lay in the way we built our work and that cost overruns were a symptom of the fact that something was not going well. My job was to find and fix the cause…
How do you reconcile actual costs with what is actually charged to the construction project? Relationships between construction operations and the equipment-management team are often strained. Operations see the equipment they use as a means to an end—as a way to build the job safely, on budget,…
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Ron is the CEO of a large and busy construction company. Life has been a blur, but the business is a success. It is growing and making money. Ron is a busy guy.

He is also your boss. You manage his fleet and are responsible for making sure that the jobs have the right iron in the right…

The difference between annual cost and full life cycle or life to date (LTD) cost is one of the most difficult things to grasp when it comes to understanding equipment costs. This is due to the fact that we have been trained to focus on next year’s cost and next year’s budget, which causes us to…

Most construction companies have an equipment department or division within the overall organization. This responsibility center builds a specialized equipment team, gives it clearly defined and measurable objectives, and focuses management attention on a critical part of the business.

In my February 2011 column, I suggested that the number of equipment-manager positions was declining. That was due to the 2008 recession-related failure of some…

When a machine starts a production shift, it should work without interruption, not break down and not bring everything to a grinding halt.  Our goal should be to have zero on-shift failures - it is possible, desirable and it makes good business sense.

Successful equipment managers know…

We constantly work to balance the cost of owning and operating our fleet with the revenue earned by charging jobs for the equipment they use. It occupies a large portion of every day. We worry about the cost side and struggle to bring it in line with our revenue so that we can “break even.” Yet…

The AEM/AEMP telematics standard is a major step forward. Many people have worked long and hard to reach this point, and we should all be thankful for their efforts. The API that has been developed as part of this…

Equipment-using organizations often use their fleet to promote their brand. The name is on both sides of the equipment; their logo identifies the organization. Senior managers get quite involved and particular when it comes to how the company brand is portrayed.

There are pros and cons to…

Equipment is a capital-intensive business, yet capital is a scarce and expensive resource. That is why so much of what we do is focused on capital expenditure (capex) and the capital-expenditure budget.

Developing the budget and making the business case for the substantial capital…

Setting the internal charge-out rate is probably the most difficult, contentious and important task that an equipment manager needs to perform. Let’s look at each of those words to better understand the situation and then attempt to develop a process that helps.

Difficult

The difficulty…

Every equipment organization I’ve ever known has a problem with theft and security of their small equipment. When I say small equipment, I’m talking about small generator sets, tamps and jumping jacks, cut-off saws, small pumps, and dozens of other such items. It’s the group of tools with…

 

 

What is best: buy, borrow, lease or rent? The question comes up often, and there are no right answers, only intelligent choices. Although cost is certainly important, it is not the overriding consideration. Many other factors and risks must be considered.

Let’s develop…

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