Die kostefaktore met betrekking tot swaar konstruksietoerusting in plaaslike bestuur : 'n gevallestudie

Abstract

THE COST-FACTORS WITH REFERENCE TO HEAVY CONSTRUCTION EQUIPMENT IN LOCAL AUTHORITY A CASE-STUDY Local authorities as contrasted with the private sector, are generally not operating with a profit motive as basic premise when their wide spectrum of activities are taken into account. However, their obligations in terms of local authority ordinances, financial regulations and responsibility toward the public require that maximum efficiency and minimum cost should always be pursued. Against this background several aspects of the use of heavy construction equipment by local authorities are investigated by way of analysing thoroughly the different appropriate cost factors confronting a specific local authority. In chapter 1 the nature and extent of using heavy construction equipment by local authority in respect of costs and cost systems are revealed. The results of a questionnaire concerning seven local authorities, in the category of an annual income ranging from RS million to R9,5 million, are utilised with a view to illustrating specific trends and problems. As regards local authority, the importance of hire trade in construction equipment is stressed, as well as the possibility that the current tariffs of the trade can be applied successfully as criteria for the operating cost of heavy construction equipment owned by local authorities. In chapter 2 the cost-system of the local authority involved is investigated in depth, and current problems and deficiencies are brought in the foreground. Covering a specificfinancial year, the analytic investigation is based on the actual cost information of 16 heavy construction equipment units and 24 vehicles. The appropriate cost-factors are entered into separately as well as the utilisation and availability of the relevant heavy construction equipment units and vehicles.

Chapter 3 reviews the management of vehicle fleets and construction equipment by means of computer systems. Two different systems are discussed and compared with the conventional system of the local authority concerned. By mutually comparing the two computer systems, it transpires that the use of a computer system does not necessarily warrant efficient handling of all t he cost-factors relevant to construction equipment and vehicles. A computer-based replacement policy for a.fleet of more than 2 800 units is analysed, and the important advantages of the policy are highlighted. The possibility to apply a similar policy to a fleet that is relatively small, is discussed, whilst appropriate requirements to operate such a system are not over-looked. Conclusions and recommendations are summarised in chapter 4. Since reliable cost-data and correct allocation of cost together form the basis of every cost-system, it is, inter alia, recommended that urgent steps be taken to eliminate the deficiencies in the present system. The system must also be adapted to improve the frequency of availability of management information gene r ally, and to provide information concerning the most important factors of availability and utilisation of heavy construction equipment and vehicles, as well as an effective replacement policy.