Item of discussion for construction project
Course:- Operation Management
Reference No.:- EM13808202

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Traditionally, the best option for contractors who don't have a large reserve of cash is renting or leasing. The contractor who rents construction equipment only has to calculate the rent he or she is going pay. The contractor is not saddled with equipment, which incurs a loss when left unused. In the construction industry, a general rule of thumb is that if you don't utilize a piece of equipment at least 60 to 70 percent of the time, you should consider renting. Assume you are completing a 20,000 sq. ft. construction project of a brick exterior, three stories in height, with standard interior construction; metal stud walls, steel joists, concrete flooring over metal deck. Provide at least two examples of construction equipment that you would rent and explain why. Next, consider your two examples. Under what conditions might you consider purchasing said equipment?


Cost, the overall construction budget, is an item of discussion for any construction project. In general, with every project the owner will ask, "what do you think it will cost?" An owner, prior to moving forward on a project, will request a ballpark estimate for the project. What estimate for a final dollar amount, would you provide for each of the following projects:

1.A 2,500 sq. ft., two-story, residential house

2.A 1,500 sq. ft., commercial tenant build-out that is currently a vanilla-shell structure

3.A 12,000 sq. ft., new, single-level commercial office complex

In your discussion response, give your estimate for each project, and then answer the following questions:

  • How was your ballpark estimate developed?
  • What disclaimers, if any, would you give to the project owner regarding the estimates for each project?
  • Is this a valid estimate to provide to the owner at this stage of the project?

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