Shash, A A (2005) Financial analysis for replacement of construction equipment in Saudi Arabia. Construction Economics and Building, 5(1), pp. 16-22. ISSN 2204-9029
Abstract
This study report results of a survey conducted in the EasternProvince of Saudi Arabia to explore the procedures and financialtechniques that large-size contractors utilise in replacingequipment. The results indicated that contractors set severalreplacement alternatives that they evaluate by using a set ofvarious qualitative and quantitative factors. The contractors’business objectives, employee safety and morale, and, contractors’image in the industry were found to be the most influentialqualitative factors affecting the decision of equipment replacement.Inflation, downtime, obsolescence, salvage value, and depreciationare among the top quantitative factors that contractors considerwhile making a decision to replace equipment. Because of theirsimplicity and practicality, the net present value, payback period,and the economic life are the most popular techniques that areutilised for analysing the financial issues of proposed replacementalternatives.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Saudi Arabia; construction equipment; depreciation; financial analysis; replacement |
| Index terms: | net present value, financial analysis, morale, inflation, construction equipment, salvage, payback, survey, obsolescence, replacement, Saudi Arabia |
| Subjects: | leadership, Geography, construction equipment, data collection methods, design economy, economic analysis, waste management, asset management, materials science |
| Topics: | Plant and Equipment, Engineering Principles, Design Practice, Business Strategy, Organizational Design, Geographical Context, Research Practice, Sustainability |
| Descriptive scope: | 4 PCEA |
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