Economic Decision Analysis for Variours Options of Ready Mix Concrete

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STUDENT SEMESTER PROJECTTP2&TP3

ECNOMIC DECISION ANALYSES FORVARIOUS OPTION OF RAEDY MIX

CONCRETE


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Adviser Engr Zia Ud DinMembers

Engr Saif-Ur-RehmanEngr Mohammad Usman Akram

Engr Abdul Hannan

Engr Naveed Ahmed Khan


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Introduction

Scope of ready mix concrete

Comparisons between various options

Material required for RMC

Equipment required for RMC

Merits and demerits for RMC

Estimate

Conclusion

Project report


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Well lets have a brief view of the abovecontents .


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INTRODUCTION

Ready-mix concrete (RMC) is a ready-to-use material,

with predetermined mixture of cement, sand,

aggregates and water. RMC is a type of concrete

manufactured in a factory according to a set recipe or

as per specifications of the customer, at a centrallylocated batching plant . It is delivered to a worksite,

often in truck mixers capable of mixing the

ingredients of the concrete between routes or justbefore delivery of the batch. This results in a precise

mixture, allowing specialty concrete mixtures to be

developed and implemented on construction sites.


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HISTORY

Ready mix concrete was first patented in Germany in 1903, itscommercial delivery was not possible due to lack of

transportation needs. The first commercial delivery was made inBaltimore USA in 1913.The first revolving drum type transit

mixer was developed in 1926.In 1931, a RMC plant was set upfor the construction of Heathrow airport, London. In the mid

90s there were about 1100 RMC plants in UK consuming about45% of cement produced in that country. In Europe in 1997there were 5850 companies producing a total of 305 million

cusecs of RMC.In USA by 1990, around 72% (more than 2/3rdofcement produced was being used by various RMC plants. In

Japan first RMC plant was set up in 1949. By 1992 Japan was thethen largest producer of RMC, producing 18196 million tons ofconcrete. In many other countries of the world including some

of the developing countries like Taiwan, Malaysia etc., RMC.industry is well developed.


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SCOPE OF READY MIX CONCRETEIn following places ready mix concrete can be used

Major concerting projects like dams, roads, bridges

,tunnels, canals etc.

For concreting in congested areas where storage ofmaterials is not possible.

Sites where intensity of traffic makes problem.

When supervisor and labor staff is less. To reduce the time required for construction etc.

Huge industrial and residential projects.

MATERIALS REQUIRED FOR RMC


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MATERIALS REQUIRED FOR RMC

AdmixtureAggregate

Cement

water


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MERITS OF R. M. C.

Better quality concrete is produced.

Elimination of storage space for basic materials at site.

Elimination of Procurement / Hiring of plant and machinery.

Wastage of basic materials is avoided.

Labor associated with production of concrete is eliminated.

Time required is greatly reduced Noise and dust pollution at site is reduced.

Organization at site is more streamlined.

Durable& Affordable

No storage space required either for raw materials or for themix

Lower labor and supervisory cost

No wastage at site/Environment friendly

Availability of concrete of any grade


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DEMERITS OF R. M. C.

Need huge initial investment.

Not affordable for small projects (small quantity of

concrete)

Needs effective transportation system from R.M.C

to site.

Traffic jam or failure of vehicle creates problem if

proper dose of retarder is not given.

Labors should be ready on site to cast the concrete

in position to vibrate it and compact it.


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THE PROJECT

Only concrete has been selected

Concrete=36,000 m

Time one year


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Alternatives

Two alternatives

To bargain RMC from market.

To invest and purchase own plant and machinery.


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Estimate and comparison

Well rates of rmc in Pakistan very from city to citybecause of difference in the rate of material availably

we select Islamabad city , and for accurate rates we

stat the rate from the (PAKISTAN INSTITUTE OF COST

AND CONTACT) .


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Pakistan institute of cost

&contracts

Rates of November for Islamabad


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COARSE AGGREGATES

PICC Code Description Unit Avg Rates(Rs.)

030501 Coarse Aggregates

030501.01.20 12mm ( 1/2" ) & down in size

(Margallah)

M 971.00

030501.01.21 19mm ( 3/4" ) & down in size

(Margallah)

M 900.00


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FINE AGGREGATES


030510 Fine Aggregates

030510.01 Sand

030510.01.01 Coarse Sand (Local) M 847.00

030510.01.02 Fine Sand (Local) M 777.00

030510.01.10 Coarse Sand (Lawrencepur) M 918.06


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CEMENT


030520 Cement

030520.01 Ordinary Portland Cement (grey) Bag 402.50

030520.02 Ordinary Portland Cement (white) Bag 700.00

030520.03 Sulphate Resisting Cement Bag 414.50


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ADMIXTURES

PICC Code Description UnitAvg

Rates(Rs.)030535 Concrete Admixtures

030535.10 Retarders Admixtures

030535.10.10 Conmix P4R Ltr 42.50

030535.30 Water Reducing Admixtures

030535.30.10 Ultra Plast 300 Ltr. 39.00

030535.30.15 Ultra Super Plast 437 Ltr. 45.00

030535.40 Early Strength Admixtures

030535.40.10 Conmix SP4 Ltr 90.00

030535.70 Curing Compounds

030535.70.10 Concure 90 Ltr 57.50


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LABOUR

PICC Code Description Unit

Avg

Rates(Rs.)

500510.04 Construction Foreman

500510.04.05 General Foreman Hour 128.00

500510.04.15 Foreman (Earth Work,

Concrete, Steel, etc.)

Hour 82.00


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Unskilled Labour


Rates(Rs.)

500530 Un Skilled Labour

500530.01 Labour Hour 50.00

500530.02 Water Man Hour 50.00

500530.10 Electrician Helper Hour 48.00

500530.20 Helper Hour 48.00


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PLANTS RATE PER HOUR


Rates(Rs.)

510501 Plants (Rental)

510501.10 Concrete Batching Plant

(Computerized)

510501.10.10 Concrete Batching Plant

Capacity 30 M/Hour

Hour 1700.00

510501.10.30 Concrete Batching Plant

Capacity 50 M/Hour

Hour 2050.00


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CONSTRUCTION EQUIPMENT


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FRONT END LOADERPICC Code Description Unit

Avg

Rates(Rs.)

510502 Construction Equipment

(Rental)

510502.02 Front End Loader

510502.02.01 Front End Loader 1.5 M Hour 1550.02




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POWER GENERATORS


510502.09 Power Generators

510502.09.01 150 KVA Hour 2276.96

510502.09.02 250 KVA Hour 3490.44

510502.10 Lift Machine Hour 325.00


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TRANSIT MIXERS

PICC Code Description Unit AvgRates(Rs.)

510502.12 Transit Mixers

510502.12.01 Capacity 6 M Hour 1695.41

510502.12.02 Capacity 4 m Hour 1550.02

510502.12.03 Daff (4 m) Hour 1550.02


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DIESEL DELIVERY TRUCK


Rates(Rs.)

510502.13 Diesel Delivery Truck

510502.13.06 Diesel Delivery Truck with 100

mm (4 ) diameter Pump, 6000

Liters

Hour 485.39

510502.13.10 Diesel Delivery Truck with 100

mm (4") Diameter Pump, 10,000

Liters (Capacity)

Hour 713.67


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CONCRETE PUMP

PICC Code Description Unit AvgRates(Rs.)

510502.25 Concrete Pump

510502.25.05 Mobile 80 M / Hour Hour 1595.00

510502.25.10 Static 45 M / Hour Hour 1200.00


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READY MIX CONCRETE RATE

OF

ISLAMABAD


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ON GROUND UP TO 6 M HEIGHTPICC Code Item Description Unit

Material(Rs)

Labour(Rs)

Machinery(Rs)

Overhead& Profit

(Rs)

Composite(Rs)

33005.04

33005.04.01 Nominal Mix Ratio. 1 : 7 :

20

M 2177.80 515.19 194.59 577.52 3465.09


18

M 2260.46 515.19 194.59 594.05 3564.28

33005.04.08 Nominal Mix Ratio. 1 : 6 :12

M 2476.47 515.19 194.59 637.25 3823.49


10

M 2660.43 515.19 194.59 674.04 4044.25

33005.04.16

Nominal Mix Ratio. 1 : 4 : 8M 2927.28 515.19 194.59 727.41 4364.46

O h d


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PICC Code Item Description Unit Material(Rs)Labour

(Rs)Machinery

(Rs)

Overhead& Profit

(Rs)

Composite(Rs)

033005.04

.20

Nominal Mix Ratio. 1 :

3 : 6

M 3360.60 515.19 194.59 814.08 4884.45

033005.04

.24


2 : 6

M 3572.53 515.19 194.59 856.46 5138.77

033005.04

.28


2 : 4

M 4144.11 515.19 194.59 970.78 5824.66

033005.04

.32


3 : 3

M 4115.46 515.19 194.59 965.05 5790.28

033005.04

.36


2 : 3

M 4578.87 515.19 194.59 1057.73 6346.37

033005.04.40

Nominal Mix Ratio. 1 :1.5 : 3

M 4865.94 515.19 194.59 1115.14 6690.86

033005.04

.44


1.5 : 1.5

M 6110.14 515.19 194.59 1363.98 8183.89

033005.04

.48


1 : 2

M 6134.25 515.19 194.59 1368.80 8212.82


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Own plant and machinery cost

Batching plant $46,933 = 4,200,000 PRsCalibration 25,000

Land 1200000PRs/ per year

Transit mixer $44,698 =4000000*2 =8,000,000 PRsPower generator $10,057 =1,073,880 PRs

Front end loader $13,410= 1,200,000 PRs

Annual Maintenance 2%

= (4200000+8000000+1073880+1200000)*.02

= 289478 PRs

Material Cost and operational cost (Concrete, diesel,

Labour etc.) = 4144 PRs/ m


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Economic themeWe assume there is no inflation for the whole year

Life of project one year

Use full life of plant and machines

5 year Gds apply MACRS


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Using Future Worth analysis

Cost= 4200000 (F/P, 12%,1) + 25000 (F/P,12%,1)

+(4144*36000) (F/P, 12%,1) + 289478

(F/A,12%,1) +1200000(F/A, 12%,1)

= 173,307,558 PRs

D i


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Deprecation

Book Value after 1 yearBy using MACRS depreciation (20% for 1st year)

B.V after 1 year for Batching Plant = 4200000-

(4200000*.20) = 3360000 PRsB.V after 1 year for Two Transit mixers =8000000-

(8000000*.20) = 6400000 PRs

B.V after 1 year for Power generator = (1,073,880-(1073880*.20) = 859104 PRs

B.V after 1 year for Front end loader= (1,200,000-

(1,200,000*.20) = 960000 PRs


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Ready mix concrete from market

From table we get its cost per m = 5824.66 PRs

Total Cost ( 5824.66 * 36000) = 209687760

Future worth ( without considering inflation) = P(F/P,

12%, 1) = 209687760(1.120)

=234850291 PRs

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Economic Decision Analysis for Variours Options of Ready Mix Concrete

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