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Provide calculations to support your recommendation to purchase the used TBM.

Civil Engineering
Develop a construction estimate based on the following Items:
1. Tunneling
a. A TBM costs $15,000,000 to purchase and mobilize on site
b. Each Tunneling Contract will require its own TBM
c. A tunneling crew costs $965.50 per hour
d. As the result of the varying geotechnical conditions the production
rates for the TBMs for each contract will be as follows:
Contract 1a – 30 feet per 8-hour shift
Contract 1b – 12 feet per 8-hour shift
Contract 1c – 20 feet per 8-hour shift
Contract 1d – 30 feet per 8-hour shift
e. Tunneling will be performed on a 24-hour basis. This is the only trade
that will be performed on a 24-hour basis.
f. There is a $300 an hour shift differential for working the third shift.
g. The operating cost of a TBM is $825 per hour
h. The cost of soil disposal is $5.25 per cubic yard
2. Tunnel Liner
a. A tunnel liner costs $1,500 per linear feet.
b. The cost of installation is included in the tunneling
3. Tunnel Ventilation
a. Material $515 per linear feet
b. Labor $600 per hour
4. Installation of Railroad Tracks

a. Material $154.5 per linear feet
b. Labor $450 per linear feet
5. Tunnel Electrical
a. Material $550 per linear feet
b. Labor $710 per linear feet
6. Station Construction
a. Each station is 40,000 square feet
b. Cost of construction is $472.00 per square feet
The above listed costs do not include profit and overhead which will be
calculated at 15% overhead and 10% profit.
Financial Analysis
Six (6) months following the NTPDE, you are informed that a TBM that is
being used on another project will become available in five (5) months
including delivery and installation. This TBM is $3,500,000 less expensive
than a brand-new model. However, this used TBM will generate 7-percent
more spoils (excavated material that must be disposed) than the newer
model. It costs $7.25 per cubic yard to dispose and transport spoils.
Additionally, this machine will have a higher operating cost ($10/hr).
You must develop a financial analysis to determine if utilizing this
additional TBM will be cost effective from a scheduling stand point and if
this savings may or not be offset by the additional costs and purchase price
savings.
You should also determine what adjustment in the tasks could be made to
this TBM on site and working and what Tunnel Contract it should be used
on to help the schedule the most.
Scheduling Issues
1. Nine months following NTPDE, you were informed that in order to
begin the construction of Tunnel Reach No. 1, new power lines will
have to be installed by the local utility company. This work will take 12 months to complete by the utility company, but you cannot begin until
the permits
for the tunneling have been obtained. Also, the cost for this work will be
$3,000,000 and has to be added to the project estimate.
2. An environmental group files a Federal Lawsuit that will delay the
permits for Station Pluto by 7-months. Also, the Owner had to spend
$250,000 in legal fees and the settlement agreement for lawsuit required
the owner to spend $1,000,000 in wetland mitigation. These costs have
to be added to the over cost of the project.
Deliverables
1. Develop an overall program schedule utilizing Microsoft Project or another
scheduling software. The schedule should include list each task, duration,
lead, and lag. You should also identify the critical path. Your schedule
should take into account the scheduling issues described above.
2. Prepare and submit a construction cost estimate based upon the information
provided in this summary.
3. Provide a written narrative discussing the project schedule which will
include the overall duration, the critical path, schedule float and two specific
recommendations to speed up the schedule. Your summary should be a
minimum of 1,500 words (double spaced).
4. Provide calculations to support your recommendation to purchase the used
TBM. Also, provide a written recommendation summarizing your analysis
and what adjustment in the schedule and associated in school need to be
made to get the used machine on site and working.
5. Submit a single document in a PDF format with a cover sheet and table of
contents

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