ABSTRACT
Modern construction is characterized by the increasing utilization of equipment to accomplish numerous construction activities. According to Means’ Illustrated Construction Dictionary, equipment refers to all the equipment, tools, and apparatus necessary for the proper construction and acceptable completion of a project. In a construction project, equipment costs are typically divided into portions. The first and bigger portion covers the cost of equipment and is often referred to as equipment cost. The cost of equipment is one of the major cost categories in a construction project. It represents the cost of acquiring the equipment and the cost of operating that equipment during the construction processes. The second and smaller portion covers the cost of hand tools. This represents a smaller portion of the project cost and is often calculated as a percentage of payroll costs. It is added to the indirect cost under the jobsite overhead.
