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    Mechanical Equipment have wide range of applications, in relation to

    the nature & volume of the work & the continual technological advancement

    through innovation which makes the number of equipment & models

    numerous. But for our purpose of evaluation we will base on classification

    related to the shared common feature among equipment & likeness of the

    type of work they perform.

    Considering makers' (Manufacturer's) manual, service year reliable

    sales invoice, custom duty & physical assessment, comparing these with the

    specification provided, if one or two of the above documents are not

    available due to different reasons then comparison will be made with

    similar model of replacement & repair cost, which leads to the original cost.

    Deprecation cost analysis is vital which governs the existing situation of the

    equipment in question.

    At large the start up manual is based on the above frameworks. To

    organize the estimation manual we have communicated with equipment

    importer & salers like(VOLVO, CAT,HAGBES) & from governmentaloffices and associations ERA (Ethiopian Road Authority) BMEI (Basic

    Metals Engineering Industries) & society of Mechanical Engineers.

    Commercial Bank of Ethiopian Estimation manual for Mechanical Equipment

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    For estimating equipment the methodology lies on the break down of

    parts & considering the major unit from the integrated system & allocating

    values worth to the unit which actually taken from the original price in

    proportion.

    Giving back grade factor to the individual parts with in the unit &

    summing up to 100% & multiplying percentage factor by the allotted unit

    price, we will get the estimated value of the unit, which intern will be added

    to make up the whole equipment estimated price.

    Major classification of equipment is divided into three groups

    1. Machineries

    2. Auto mobiles

    3. Earth moving equipment

    The sub group & their cost summary analysis methodology is

    generally sub divided into four parts

    1. General data collection

    2. Physical Assessment

    3. Technical Specification

    4. Estimation

    The detail will be expressed on the chapters that will follow.N.B. The more important aspect of the estimation manual is, it could

    be modified to the situation where updating is necessary and it

    would also be revised timely, broadened: to meet the required

    specification.

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    General Description & Basic Parameters

    Mechanical Equipment have wide range of applications; but,

    depending upon their particular & specific use we further classified them inthe following manner, in order to meet our purpose.

    1. Machineries

    2. Auto Mobiles

    3. Earth moving equipment.

    1.1 Machineries further be classified as

    - Production

    - Workshop- for repairing & fabrication

    - Power plant

    2.1 Auto mobiles - Transporting

    Loading

    - Trucks

    - Cranes

    - Forklifts.

    3.1 Earth moving Equipment

    - Loaders

    - Excavators

    - Graderes

    More or less the equipment/macheneries listed above can represent

    most of the mechanical parts. To evaluate those equipment we have set a

    certain parameter relevant to the working capacity & nature of the work.Based on the classification to meet our evaluation purpose basic parameters

    are indicated on each category bellow.

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    1. Production Machineries

    1. Machine Speed/ Second.

    2. Rate of Product /hour - per day.

    3. Rated power - In KW

    4. Other Utilities - Water

    - Gas -High & low pressure.

    The following datas that be directly taken from the name plate or machinery

    documents:

    1. Year of manufacturing

    2. Maker's Name & address.

    3. Type / Model

    4. Detail Parts & Systems.

    The following physical condition be seen & taken into account for

    evaluation:-

    1. Frames / Supports.

    2. Covers

    3. Drive System

    4. Automatic /full, semi, or manual

    5. Size - L x W x H

    6. Weight

    7. Surface finish

    The following internal Conditions be taken into consideration during

    evaluation

    - Drive System

    - Pneumatic System

    - Hydraulic System

    - Lubrication System

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    For further analyses the factor stated above will be adapted in the form of

    charts.

    Before going to the detail inspection of parts for evaluation the under listedfactors will mainly be taken into account.

    - Industry background & current condition

    - Market share.

    Cost Summary

    Based on the manufacturer's (Supplier's) document & reliable sales invoices.

    - Depreciation Cost

    - External Market Condition

    - Technological Obsolesce

    Cost summary shall be done by identifying the major machine elements(parts) & given to them more percentage share so as to draw the aggregate

    value by analogy.

    For example in costing an automobile the engine may have the largest sharein comparison to the other parts and is given the lion share. Hence, a cost

    summary as depicted below is allocated for the different parts of an

    automobile.

    - Engine 30 - 40 %

    - Transmission 15 - 20 %

    - Chassis 20 - 25 %

    - Others 10 - 15 %

    In a similar manner machineries could also be evaluated depending on thetype of work they perform & the product they handle.

    - Drive systems & type

    - Working surface & parts

    - Frames & supports

    - Others.

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    The listed major units stated above are arranged in the form of table in

    detail.

    Description of Machinery

    Physical Condition

    Technical data Cost summary in relation to parts

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    Guide Line For Mechanical Equipment To Be Held As A Collateral

    Documents that should be brought to the creditor branch by the

    customer should fulfill the following precondition.

    1. Ownership booklet/certificate for the equipment, machinery,

    vehicle as registered and also referring the specifications for

    the supplier company or manufacturer.

    2. Work permit on the particular equipment, machinery and other

    from an- authorized Trade & Industry or Investment Bureau.

    3. Custom declaration document signed & sealed by the

    respective office authority & it should be identical with

    equipment specification.

    4. CIF document should be attached (invoice of insurance &

    freight). (As applicable)

    5. Maker (Manufacturer) Name , Address, Year of Manufacturing,

    local agent be specified.

    6. Insurance agreement should be attached to the document.

    7. Supportive documents assembly drawings showing the internal

    & external features of the equipment are necessary for

    evaluation and should be presented. (as applicable).

    8. If the firm is a factory & new project or expansion theninstallation or layout drawing, project approval from the

    concerned or investment office is mandatory.

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    Information to be attached for Estimation of Mechanical

    Equipment

    1. Ownership Certificate

    2. Seller Company Address

    Invoice

    Year of Manufacturing

    3. Work permit on the particular Machine/ Industry.

    4. Land holding Certificate ( Where the Machinery is installed)

    5. If Rented

    Private Government

    6. Other related Factors

    ________________________________________________________

    ________________________________________________________

    ________________________________________________________

    ________________________________________________________

    ________________________________________________________

    ________________________________________________________

    ________________________________________________________

    N

    O

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    FACTORS CONSIDERED DURING EVALUATION

    P Due to a number of reasons Equipment, machinery and vehicles

    affected their working condition, capacity & lifetime. Amongthese are:

    - Road condition

    - Climate or weathering

    - Lack of personal skill

    - Working condition

    The above points cause failure to the equipment, machinery & vehicle

    before the designed lifetime in operation.

    Therefore, to be safe during valuation for collateral theequipment machinery or vehicle service year should be

    considered starting from the date of manufacturing/starting

    operation as applicable as follows:

    - For house hold purpose & office use vehicles 7 years.- Station Wagon, pickup (Single & Double Cabin) Minibuses

    8 - 10 Years- Trucks & Forklifts -12 - 15 Years

    - Machineries -15 Years for factories having small market share

    & capacity

    - 20 Years for factories having large market share

    & capacity- Earth moving equipment - 15 years

    The following rates are applied during valuation. Market condition of manufacturer (Mm) Table -1

    Equipment /Vehicle or machinery condition (Ec) Table -2

    Depreciation rate for machinery (Dr) Table -3

    Depreciation rate of Vehicle(Dr) Table -4

    Model preference rate for vehicle Table -5

    General Formula

    Tc= RC X DR X Mm X EcTC= Total Equipment /Machinery or Vehicle cost (Estimated)

    RC= Replacement CostDR= Depreciation RateMm= Maker Market Share

    EC= Equipment, Machinery or vehicle Condition

    Reference: - For age base depreciation value it is adapted from thedisposal manual dated March 17, 1997 prepared by

    Federal Democratic Republic Of Ethiopia Office Of The

    Prime Minister.

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    Table 1

    Market Condition of Manufacturer (Maker)(Mm)

    Maker Country/Factory Rate

    1. West Europe 1.0

    2. America 1.0

    3. Japan 1.0

    4. Russia 0.8

    5. Eastern Europe 0.8

    6. Others 0.8

    Table 2

    Equipment Machinery or Vehicle Condition (EC)

    No Prevailing

    Condition

    Allocated Points

    Range

    Remark

    1 The equipment is functional(operational) but needs servicing

    0.7 - 0.9 Servicing Cleaning

    lubricating & setting

    2 Equipment is not operational duringsurvey but, major components &systems are available it requires

    medium repair

    0.5 - 0.7

    Medium repairs servicing

    + parts replacing (fastwearing & spaces)

    3 Units & minor replaceable parts are notavailable in the equipment body dating

    survey.

    0.3 - 0.49

    Units are machine parts

    less valuable than the

    major components likedrive system (engine)

    4 Major Components & parts are notavailable on the equipment & it needstotal replacement or overhaul

    maintenance. (for the missing part(s)

    inquisition)

    0.1 - 0.29

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    Table 3

    Depreciation Rate for Machinery (Dr)No Service Year Rate Remark

    1 1 year 1 If preventive maintenance is applied

    properly.

    2 2 years 0.98 ''

    3 3 years 0.96 Ditto

    4 4 years 0.94 ''

    5 5 years 0.90

    6 6 years 0.86

    7 7 years 0.82

    8 8 years 0.77

    9 9 years 0.72

    10 10 years 0.67

    11 11 years 0.62

    12 12 years 0.57

    13 13 years 0.51

    14 14 years 0.45

    15 15 years 0.39

    16 16 years 0.33

    17 17 years 0.33

    18 18 years 0.27

    19 19 years 0.21

    20 20 years 0.13

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    Table 4

    Vehicle

    Depreciation Value for any vehicle

    No Age in terms of years Depreciation rate Remark

    1 1 year .9

    2 2 years .8

    3 3 years .7

    4 4 years .633

    5 5 years .567

    6 6 years .500

    7 7 years .475

    8 8 years .45

    9 9 years .425

    10 10 years .400

    11 11 years .380

    12 12 years .360

    13 13 years .340

    14 14 years .320

    15 15 years .300

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    Table 5

    Model preference rate for Vehicle

    Automobiles, Station Wagon, Miniguses, Pick-ups

    1.1 Mercedes 1.25

    1.2 Toyota 1.15

    1.3 Nissan 1.05 for Automobile 0.95

    1.4 Isuzu 0.95

    1.5 Mitsubishi 0.95

    1.6 Mazda 0.95

    1.7 Honda 0.95

    1.8 Suzuki 0.95

    1.9 Peugeot 0.95

    1.10 Renault 0.951.11 Volkswagen 0.95

    1.12 Audi 0.95

    1.13 BMW 0.95

    1.14 Opel 0.95

    1.15 Fiat 0.95

    1.16 Land Rover 0.95

    1.17 Ford 0.8

    1.18 Lada 0.8

    1.19 Niva 0.8

    Loading Truck (Auto Bus)

    2.1 Mercedes 1.20

    2.2 Fiat Iveco 1.20

    2.3 Volvo 1.10

    2.4 Scaniya 1.10

    2.5 DAF 1.10

    2.6 Nissan 1.10

    2.7 Isuzu 1.00

    2.8 Mitsubishi 0.95

    2.9` Kamaz 0.8

    2.10 Hino 0.95

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    A Model Which illustrate the method of Equipment Estimation

    A production machine of which is manufactured in Italy in 1995 supplied to

    Mr. X's factory for an amount of 1,500,000 Birr the customer duty was 8% of the

    equipment price CIF 35,000 Birr and Mr. X has spend 30,000 Birr for making

    ready the machinery ( for Commissioning and testing). This machine is claimed to

    be held as a collateral so what would be the estimated cost.

    Data

    - Year of Manufacturing 1995

    - Cost of Machinery - 1,500,000

    Birr

    - Custom Duty - 120,000

    Birr

    - CIF - 35,000

    Birr

    - Make Ready Cost - 30,000

    Birr

    Estimated Date - 23/10/2002

    Tc = Total Estimated Cost

    Rc = Replacement Cost

    Dr = Depreciation Rate

    Mm = Market Share of Maker Taken from the tableCountry/factory prepared for disposal

    manual by Prime

    Minster Office.

    EC = Equipment condition after physical

    assessment is carried out.

    * Inflation during estimation will be considered.

    Rc = 1,685,000 Birr (Consists of all expenditures)

    Dr = 0.82Mm = 1

    Ec = 0.8

    Tc = Rc X Dr c Mm X Ec

    1,685,000 X 0.82 X 1 X 0.8 =1,105,360 Birr

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    Mechanical Equipment Estimation Form (General)

    1. Applicant's Name_____________________________________

    2. Address Town________________ Woreda____________Kebele_______________ House No___________

    P.O.Box______________ Tel No. ____________

    3. Property of__________________________________________

    4. Ownership certificate & Number_________________________5. Name of the Equipment________________________________

    6. Year of Manufacturing_________________________________

    a) Serial No.________________________b) Model ___________________________

    c) Plate No._________________________

    d) Chassis No._______________________e) Engine No.________________________

    7. Manufacturer Name & Address_________________________________________________________________________________

    8. Location of the equipment_________________________________

    ______________________________________________________9. Work permit on the particular equipment _____________________

    _______________________________________________________10. Insurance certificate on the equipment________________________

    _______________________________________________________

    11. Current tax Invoice of the equipment________________________________________________________________________________

    12. Proven performance/Guaranteed service time/__________________

    13. Technological obsolesceDue to part unavailability

    Productivity Rate

    Others14. Remark on obsolescence___________________________________

    _______________________________________________________

    15. Surveyor Remark________________________________________________________________________________________________

    _______________________________________________________

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    _______________________________________________________N.B. Detail cost summary will be attached with this General format.

    Physical Assessment____________________________________________

    __________________________________________________________________________________________________________________________

    _____________________________________________________________

    _____________________________________________________________

    Installment Condition____________________________________________

    _____________________________________________________________

    _____________________________________________________________

    _____________________________________________________________

    _____________________________________________________________

    Technical Assessment ___________________________________________

    _____________________________________________________________

    _____________________________________________________________

    _____________________________________________________________

    _____________________________________________________________

    Machine Availability /Workability ________________________________

    _____________________________________________________________

    __________________________________________________________________________________________________________________________

    _____________________________________________________________

    Inspected by Date Signature

    _________________ ______________ _________________

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    COST SUMMARY ANALYSISNo Description Of

    MachinerySpecification Qty Service Year Invoice

    ValueDeprecationRate Value

    NetEstimated

    Value

    Remark

    Designed Service For

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    Data Collocation Format for Production Machineries

    Description of Machinery

    Name________________________________________________________

    Model________________________________________________________

    Serial No _____________________________________________________

    Year of manufacturing __________________________________________

    Maker Address ________________________________________________

    Book Value ___________________________________________________

    Size (Floor Space) _____________________________________________

    Material Handling System________________________________________

    Product type __________________________________________________

    By Product Condition __________________________________________

    Size of the Product

    Ranging from ______to ____________________________________

    Location of the industry__________________________________________

    Wear housing Condition_________________________________________

    Other Related datas _____________________________________________

    Remark on Survey_____________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

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    _______________________________________________________________________

    _

    No PartsTo be Inspected

    Indented/deformed

    Loose Teared Total %defects

    Remark

    1 Body & Cover

    2 Frame /Support

    3 Paint

    4 Other

    5 Installment

    Condition

    6 Working Area

    Condition

    General

    Status

    of

    Physical Condition

    Technical DataNo Data Designed Actual Deviation Percentage of Loss

    1 Product

    Rate/hr

    2 Rated power

    3 Vibration

    4 Working

    Temperature

    5 Utility used

    Grand Total of Loss

    General Remark on technical survey.

    _____________________________________________________________

    _____________________________________________________________

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    Drive System Analysis

    No Drive

    System

    Remark on Condition

    of the System

    % Defect of the

    unit

    1 Gear

    with shafts

    2 Belt

    3 Chain

    4 Friction

    drives

    (rolling &

    contacting surfaces)

    5 Other

    Analysis of the total condition

    Total %

    * In each case the shaft & other machine element attached to it, will be

    considered as one unit.

    Total % of the defect ____________________

    Original Value of the System ____________________Estimated Value ____________________

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    After going through detail parts evaluation with respect to relevant

    specification & technique, for final cost analysis the brake down will besummarized in the form of units which actually leads to the total estimated

    value. To facilitate the cost summary, a certain factor (Percentage share)

    will be allotted for the units. The shared value is dependent on the partscontribution in relation to the size & nature of the work it could accomplish,

    comparing with the whole machine.

    Even if the machineries vary one from the other due to the system or

    auxiliary units they incorporate & innovation through technological

    advancement, the work they accomplish & the aim for which they have beendesigned is basically the same. So for certain variation which they

    inclusively hold they will be treated separately & inturn the access theyhave will enhance the price appreciably.

    Following the above points the breakdown will be listed below.

    No Description

    of unit

    Proportion/Share

    from the total

    Value

    Part

    Estimated

    Value

    Remark

    1 Drive Unit .3 - 30%

    2 Body Supports Frames .25 - 25%

    3 Working Surface & Size .20 - 20%

    4 Cover .1 - 10%

    5 Others .15 - 15%

    Total Estimated Value

    Estimated by ____________________ Signature__________________

    Date ____________________

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    Summary of Cost Estimation of

    Work shop Machineries & their Data Collection Format

    In relation to the need of the organization, workshop Machineries are applicable for

    repairing, Manufacturing & Modification works.

    Basically the type of work they perform within the same category has got closeresemblance, even if they largely differ with the part, accessories & systems they held.

    (Lathe, Milling sharper, Jigboring, Gear Cutting Grinding, Sharpening etc.)

    For evaluating workshop macheneries, a better approach would be making certain break

    down among units & allocating values in proportion to the total value of the machine,

    with respect to the percentage share.

    This cost summary will be a threshold for estimation manual & it is subdivided into fourmajor parts.

    1- Over all data collection format

    2- Physical condition assessment

    3- Technical data4- Estimation

    1.1 Data collection format: this part contains all the machinery history from the dateof manufacturing to the current condition and it is illustrated as follows.

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    Data Collection Format

    Name_______________________________________________________________.

    Model______________________________________________________________.

    Serial No____________________________________________________________.

    Year of Manufacturing_________________________________________________

    Maker Address ________________________________________________________

    Installment Date/Year __________________________________________________

    Book Value __________________________________________________________

    Service Year _________________________________________________________

    Size (Floor Space) _____________________________________________________

    Product type & Size it can hold_____________________________________________

    Location of the industry __________________________________________________

    Owner Ship certificate ___________________________________________________

    N.B.* On the part of the technical data the specification of each type of machine will

    be attached here with the general format.

    Remark on Survey________________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

    ________________________________________________________________________

    _______________________________________________________________________

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    Data Collected by Date Signature

    _________________ ________________ _________________

    Physical Condition Assessment

    No Description Indented/

    Scratched

    Cracked Teared Deformed % Defect

    1 Body Cover

    2 Frame

    3 Bed

    4 Paint

    5 Other Parts

    GrandTotal %

    Remark On physical Condition Assessment________________________________________________________________________

    ________________________________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

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    DRIVE SYSTEM

    No Description Noise Vibration Slippage

    Degree at

    damage in %

    Remark

    1 Gear

    2 Belt

    3 Chain

    4 Other

    Grand Total%

    Remark on derive System__________________________________________________

    _______________________________________________________________________

    _______________________________________________________________________

    _______________________________________________________________________

    Lubrication & Cooling System

    No Description Leaky Blocked Inadequate

    Flow

    %

    Defect

    Remark

    1 Lubrication System

    Pump

    Valve

    Lines

    Reservoirs

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    2 Cooling System Pump

    Line

    * Lubricant & Coolant Condition

    Remark on Lubrication & Cooling System

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

    ________________________________________________________________________

    ________________________________________________________________________

    Total % of defect ___________________________

    Value in Proportion__________________________

    Estimated Value for the systems._______________

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    Lather Machine Technical Data

    No Description of part Unit ofMeasurement ActualMeasurement Remark

    1 Center Distance cm /meter

    2 Spindle bore mm

    3 Width of Bed cm

    4 Diameter of Face plate mm/cm

    5 Chuck diameter mm

    6 Max-Section of tool mm2/in2

    7 Feed rate From_____mm/revTo _______mm/rev

    8 Chuck RPM Rev/min

    9 Thread Cutting Capacity TPI Inchmm - mm

    D.P.(in Inch

    10 Tail Stock

    Travel /Stroke mm11 Tapper Morse

    12 Main motor power Coolant pump motor

    Kw/HpKw/Hp

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    NoUnit Percentage

    Share Of

    The Unit

    Value OfThe Unit In

    Birr

    Loss InPercentage

    EstimatedValue After

    EvaluationIn Birr

    Remark

    1 Drive Unit 0.35

    2 Frames & Bed 0.25

    3 Saddle 0.05

    4 Appron 0.1

    5 Systems

    Lubrication &Cooling

    0.05

    6 Physical Condition 0.15

    7 Others 0.05

    Grand Total

    Remark on Estimation _____________________________________________________

    _______________________________________________________________________

    _______________________________________________________________________

    _______________________________________________________________________

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    _______________________________________________________________________

    ___

    Estimated by Date Signature

    __________________ _______________ _________________

    Vehicle & their data Collection Format

    The continual technological advancement & innovation of different type & aestheticmakes the number of model of a vehicle numerous. Despite the fact that the number of

    vehicle will be big, they share common feature for the purpose they have been designed.

    When making a cost summary analysis, it would be better to start with that commonly

    shared feature. They all are internal combustion reciprocating engine & designed for

    transporting of people or materials from place to place.

    So the classification will be based on

    1. Transportation - Private- Public

    2. Loading - Dry

    - Liquid

    3. Type of Engine - Fuel

    - Diesel

    Further classification will be based on four major groups.

    1- General data collection

    2- Physical assessment3- Technical data & systems

    4- Estimation1.1 General data collection:- Contains all the information of a vehicle from the

    date of manufacturing up to the current status.

    Name______________________________

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    Plate no ____________________________

    Engine no __________________________

    Chassis no __________________________

    Model _____________________________

    Manufacturer Address _________________

    Year of Manufacturing________________

    Service Year _______________________

    Type of Engine Fuel Diesel

    Technological Obsolesce _________________________

    Ownership Certificate & Its Numbers________________

    Current tax invoice_______________________________

    Insurance Certificate/ Agreement no_________________

    Used for ______________________________________

    If Loading Dry ton Capacity

    Liquid m3 Capacity

    Transportation Number of Seats ___________________

    Market Condition___________________________________________________

    Other related data___________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

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    Surveyor Remark_________________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

    Data Collected by ___________________________ Date_________________________

    Signature______________________

    Vehicle

    Physical Condition Assessment

    Body___________________________________________________________________

    Paint___________________________________________________________________

    Wind screen_____________________________________________________________

    Window glass____________________________________________________________

    Side______________________________________________________________

    Rear______________________________________________________________

    Lighting System __________________________________________________________

    Front _____________________________________________________________

    Side______________________________________________________________

    Rear______________________________________________________________

    Cover_____________________________________________________________

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    Tyres___________________________________________________________________

    Axels___________________________________________________________________

    Front_____________________________________________________________

    Rear _____________________________________________________________

    Suspension System________________________________________________________

    Coil Spring________________________________________________________

    Leaf Spring________________________________________________________

    Shock Absorber____________________________________________________

    Air bag __________________________________________________________

    Internal Condition-________________________________________________________

    Ceiling____________________________________________________________

    Floor _____________________________________________________________

    Seats _____________________________________________________________

    Bumper _________________________________________________________________

    Remark on Survey_________________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

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    Technical Data

    Engine ______________________________________

    Type _______________________________________

    No of Cylinders _________________________________

    Cylinder Bore ___________________________________mm

    Stock Length ____________________________________mm

    Horse Power ____________________________________hp

    Fuel Consumption _______________________km/lit

    Lubrication System Splash Force Feed Both

    Fuel tank & Its Capacity ________________________________

    Lubrication System Oil Grease

    _______________________________________________________________________

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    _______________________________________________________________________

    _

    Ignition System - Spark Plug Fuel Injection

    _______________________________________________________________________

    ________________________________________________________________________

    Cooling System___________________________________________________________

    _______________________________________________________________________

    _

    Radiator Condition ________________________________________________________

    Cooling Fan Condition_____________________________________________________

    _______________________________________________________________________

    Transmission ____________________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

    Brake System Hydraulic Air Both

    _______________________________________________________________________

    _

    ________________________________________________________________________

    _______________________________________________________________________

    _

    Proven Performance/ Guaranteed Service time __________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

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    _______________________________________________________________________

    _

    Other Related Factors______________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

    Remark on Survey ________________________________________________________

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

    _______________________________________________________________________

    _

    Estimation

    This section shows cumulative value of the over all check list (Physical &

    Technical Assessment) which comes to be evaluated in terms of money.

    For estimating a vehicle in terms of money the methodology lies on the break

    down of parts & taking into consideration of the major unit from the integrated system &allocating values worth to the unit, which actually taken from the original price in

    proportion.

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    Giving back grade factors to the individual parts within the unit summing up to

    100% & multiplying percentage factor by the allocated unit price, we will get theestimated value of the unit, which in turn will be added to make up the whole vehicle

    estimated price.

    By so doing we have formulated a chart describing the evaluation method &

    showing the break down value & its summation that makes a total estimated value of a

    vehicle.

    No

    Description of

    Unit

    Allotted %

    Share

    Proportional

    Value to

    Original

    Price

    Estimated

    ValueRemark

    1 Engine .35 - 35 %

    2 Chassis .25 - 25 %

    3 Transmission .2 - 20 %

    4 Physical condition .15 - 15 %

    5 Others 0.05 - 5 %

    Original Price

    Total

    Estimated Value

    Remark on Estimation _____________________________________________________

    _______________________________________________________________________

    _______________________________________________________________________

    _

    Estimated by ___________________________ Date____________________

    Signature____________________________EARTH MOVING EQUIPMENT & THEIR DATA

    COLLECTION

    An equipment performance information is a basic tool for estimationpurposes. This performance is measured with many variables peculiar to

    individual jobs, Including

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    - Material Characteristic

    - Operator efficiency

    - Underfoot condition

    - Altitude etc...

    Factors bearing directly on productivity include such things as weight to

    horse power ratio, capacity, type of transmission, speeds and operatingcosts. There are other less direct machine performance factors such as:

    - Serviceability

    - Parts availability

    - Operator Convenience.....etc...

    In comparing machine performance all factors should be considered. A

    good knowledge of local condition , when coupled with experience wouldmake the best valuer of machine performance.

    The approach most often used to measure machine performance is thissimple equation.

    Lowest possible Hourly costs = Top machineHighest possible hourly productivity performance

    Depending on the hourly owning & operating cost as a basis for calculating

    the equipment value, which could be compatible to local conditions (price offuel & lubricant, shipping cost from the factory, interest rate, etc) & data on

    earthmoving equipment will assist in accurate estimation.

    The method suggested follows several basic principles

    - No price are provided for any item which must always be obtained

    locally.

    - The multiplier factor provided will work equally well in any

    currency expressed in decimal.

    - Because of different standards of comparison, what seems a

    severe application to one machine owner may appear onlyaverage to the other. Therefore, to better describe machine

    use; operating condition & applications are defined in

    zones.

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    - Unless otherwise specified, the word 'hour' when used in thissection means clock or operating hours not service meter

    units.

    GENERAL DATA - COLLECTION

    1. Name_____________________________Plate No___________

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    2. Model_________________________________

    3. Years of Manufacturing____________________

    4. Maker Name & Address____________________

    5. Engine Number___________________________

    6. Chasis Number____________________________

    7. Type_____________________________________

    8. Total Service year__________________________

    9. Ownership certificate & its no__________________________

    10. Current tax Invoice___________________________________

    11. Custom duty_________________________________________

    12. Custom declaration number_____________________________

    13. CIF________________________________________________

    14. Gross Weight________________________________________

    15. Operating weight_____________________________________

    16. Technological obsolesce_______________________________

    Due to - un productiveness

    - Parts unavailability

    - Others

    17 . Work permit on the particular equipment ___________________

    18. Insurance agreement on the equipment______________________

    19. Surveyor Remark________________________________________

    ______________________________________________________

    ______________________________________________________

    ______________________________________________________

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    Physical Condition Assessment

    1. Body & its Cover_____________________________________

    ___________________________________________________

    2. Frame /Support ______________________________________

    ___________________________________________________

    3. Dimension ___________________________

    ___________________________

    ___________________________

    4. Cabin with ROP (Rollover Protection)____________________

    ___________________________________________________

    5. Tire Condition______________________________________

    ___________________________________________________

    6. Bucket Size & attachment______________________________

    ___________________________________________________

    ___________________________________________________

    7. Hydraulic Line (Houses)_______________________________

    ___________________________________________________

    8. Axel Front & Rear___________________________________

    ___________________________________________________

    9. Blade Size & Type____________________________________

    ___________________________________________________

    10. Welded Part Condition________________________________

    ___________________________________________________

    11. Surveyor Remark_____________________________________

    ___________________________________________________

    ___________________________________________________

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    TECHNICAL DATA

    1. Engine___________________________________________

    Type_____________________________________________

    Horse power_______________________________________

    Fuel Consumption on light earth Work________________

    on heavy earth work________________

    Lubrication system____________________________________

    Starting system_______________________________________

    2. Fuel system_______________________________________

    Injection system____________________________________

    3. Cooling system_____________________________________

    Radiator__________________________________________

    4. Electrical system__________________________________

    Alternator_________________________________________

    Batteries_________________________________________

    5. Transmission______________________________________

    6. Axles & Drives_____________________________________

    7. Steering___________________________________________

    8. Brakes____________________________________________

    Surveyor Remark_____________________________________

    _____________________________________________________

    _____________________________________________________

    _____________________________________________________

    _____________________________________________________

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    COST SUMMARY FOR EARTH MOVING EQUIMPENT

    The summary consists of two major part

    1. Owing Costs Investment cost to own the equipment

    2. Operational cost Expenditures to put the equipment into use.

    Owning Cost.

    1. Delivered price ( including attachments) ____________________

    2. Less residual value at replacement__________________________

    - Gross selling price_______________________

    - Make ready cost_________________________

    -Inflation during ownership period___________

    Net Residual Value_______________________

    3. Value to be recovered through work

    Cost/Hour = ValueHours

    When used equipment auction prices are used to estimate residualvalue, the effect of inflation during the ownership period should be

    removed to show in constant value what part of the asset must be

    recovered through work.

    4. Insurance = N+1 X Del. price X Insurance rate %2N_____________________________

    Hours/Year

    $ _______ Per year/hours/year

    5. Interest cost = N+1 X Del. price X Interest rate %

    2N_____________________________Hours/Year

    $ _______ Per year/hours/year

    6. Property tax = = N+1 X Del. price X tax rate %2N_____________________________

    Hours/Year

    $ _______ Per year/hours per year = ________________

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    Total Hourly owning cost = 3+4+5+6

    Operating Cost

    7. Fuel Unit price X Consumption

    ________ X ___________ = __________

    8. Lub. oils, Filters, Grease Unit price Consumption Cost/hour

    a) Engine _________ X ___________ = _________

    b) Transmission _________ X ___________ = _________

    c) Final drive _________ X ___________ = _________

    d) Hydraulic _________ X ___________ = _________e) Grease _________ X ___________ = _________

    f) Filters _________ X ___________ = _________

    Total _____________

    9. Tire replacement cost = Cost/life in hours.

    10. Special wear items = cost/life

    - Cutting edges ground engaging tools, bucket teeth ,

    excavator stick, repairing etc.

    Cost life cost/hr1 _______ X _________ = _________

    11. Total operating cost = 7+8+9+10

    12. Total owning & operating cost__________________

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