Edwards, D J; Holt, G D and Harris, F C (1998) Financial management of construction plant: Conceptualising cost prediction. Journal of Financial Management of Property and Construction, 3(2), pp. 59-74. ISSN 1366-4387
Abstract
In an attempt to augment productivity, post war UK industry has witnessed a major shift in its utilisation of labour resources, to increased use of mechanisation (Manser, 1994). Consequently, plant productivity and equipment selection studies have been conducted (Haidar, 1995) but research into its financial management has been scarce. This paper counters this deficiency by conceptualising prediction of the total costs of construction plant maintenance for tracked hydraulic excavators. In this context total costs equal the sum of direct maintenance costs such as replacement parts, and indirect costs such as lost production. Essentially, the proposed model combines bivariate regression (to predict indirect costs) and multivariate regression analysis (to predict direct costs). Such a financial decision model will enable construction plant managers to make optimum equipment selection based upon the premise of both forecast production rates and predicted total maintenance costs.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | financial plant management, total maintenance costs, tracked hydraulic excavators, regression analysis |
| Index terms: | maintenance cost, regression analysis, labour resource, hydraulic, war, productivity, indirect cost, construction plant, cost prediction, direct cost, equipment selection, financial management, replacement, manager |
| Subjects: | conflict and crisis studies, business economics, practitioner, materials science, economic analysis, construction equipment, procurement capability, economics, financial management, management, statistical analysis, cost management, fluid mechanics, financial and cost management |
| Topics: | Roles and Professions, Plant and Equipment, Business Strategy, Cost Management, Research Practice, Legal Issues, Supply Chain Management, Procurement, Engineering Principles |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here