CPM

For the building contractor, time and costs are decisive factors in the economic success or failure of a construction
project. To carry out various jobs most efficiently, contractors make use of specially selected construction machines which operate both quickly and economically. Manufacturers brochures and special handbooks are available to assist the contractor in selecting equipment and calculating costs. Construction machinery at the site represents a considerable capital investment. The costs of loss or damage due to unforeseen events cannot be calculated in advance by the contractor, since neither brochures nor cost calculation handbooks can provide the required information. The contractor can, however, insure his machinery against the consequences of such occurrences, either under contractors or erection all risk policy for the duration of a project or under an annual policy covering his entire plant fleet.
Perils of Construction Machinery

In general, the causes of damages to construction machinery can be divided into three categories : Acts of God ( natural hazards ) Operating Errors Material Failure Acts of God are unforeseeable. Typical Acts of God are flood, inundation, storm, earthquake, rockslide, landslide, lightning. An expanded definition could also include other events over which the policyholder has little influence, such as fire or explosion, if they do not result from within the machinery itself.
Perils of Construction Machinery..

Damage resulting from operator error and human negligence can in principle be reduced by adequate training of personnel. For the Contractor, however, employee error is unforeseeable, so that property damage resulting from such causes is covered by construction machinery insurance. Typical examples here are collision of vehicles on the construction site and tipping of cranes. Theft or vandalism can also be included in this category. The age and condition of a machine, as well as the regular maintenance, all effect the probability of loss occurrence. Material failure, above all machinery breakdown can therefore be influenced by the contractor. The costs which the contractor must bear in order to reduce the probability of a loss can be calculated and included in the bid price. For this reason this type of loss is not covered .
Insurance of Construction Machinery
General
Construction machinery insurance protects contractors against losses which he cannot calculate in advance. The intent is to reimburse him for losses resulting from a direct, sudden and unforeseen external event.. Construction machines are not as a rule utilized at a single construction site for the entire duration of their service life. Once work is completed, or as otherwise required, the machinery is transported to other sited for further use. In order to deal with this situation and the special needs of the policyholder, two policy concepts are found in international use, the coverage of which are, however, virtually identical.
Types of Insurance
Insurance for a Project
Under this type of scheme the machinery is insured within the scope of a CAR / EAR policy for a specific project. During its utilization at this particular site, the equipment is insured. This type of insurance is suitable primarily for long-term projects and for construction sites where several contractors contribute machinery for the project. This policy has the advantage of uniform insurance coverage for all machinery used on the site, and the insurance premium can be shared by all participating contractors. Insurance of this type is for a specific location and a predetermined policy duration
Annual Policy
A contractors entire fleet of machines can be insured with an annual policy. This type of insurance covers all machinery, regardless of the location of the construction sites. An annual policy is the most suitable type of insurance if the contractor is working at several smaller sites simultaneously, or if machinery is used only for short periods of time to handle special tasks.
Insured Property
In both forms of insurance stationary and mobile machinery of all types may be insured. Floating equipment and equipment registered for general road use, should not be insured as construction machinery.
As a rule, all the machinery utilized at a construction site or the whole machinery fleet of a contractor should be insured. All the machines insured must be included in a machinery schedule, listing manufacturer, type and model, along with the year built, the serial number and the sum insured.
Insured Perils
Comprehensive coverage is provided for in construction machinery insurance ie all damages are covered resulting from hazards which are not specifically excluded The most important exclusion is machinery breakdown, which regardless of the cause (operational influences, wear, deficiency of water, oil or lubricant), should not be covered. Damage as a consequence of such machinery breakdown is, however, covered. Further exclusions are the consequences of war, strike, riot, nuclear reaction, willful negligence on the part of the insured, design defects for which the manufacturer is contractually liable and consequential losses. As an exception to this general rule it is, in some countries, possible to insure against machinery breakdown. This inclusion is not recommended, since this risk depends almost exclusively on the age and conditions of the machines and on the extent of maintenance carried out. This can hardly be evaluated by the insurer.
Sum Insured
The sum insured must be based on the new replacement value including freight, customs duties and assembly costs. Changes in the agreed value during the course of the policy period ie changes due to inflation, must be compensated for by continuous adjustment of the sum insured. The current value ie the price which would be realized if the machine were sold on the open market, may not be taken as the sum insured.
Scope of Compensation
The purpose of construction machinery insurance is to reimburse the policyholder the losses resulting from unforeseeable events. In the case of total loss (repair costs higher than the current value), the insurer reimburses at current market value. In the case of a partial loss (repair costs lower than the current value) the insurer reimburses the cost of the required replacement parts and the lobour costs for repairing the machine, without deducting for wear and age ( the exception being the parts which must be replaced regularly several times during the service of a machine ) Since construction machinery insurance is a property insurance, the insurer provides no compensation for consequential losses, such as penalties, loss of use or costs for temporary substitute equipment
Deductibles
The claims history in construction machinery insurance is influenced by a number of factors, amongst which are training of the personnel, the age, condition and utilization of the machines as well as the organisation of construction site operations. Since all these factors are within the policyholders control, he has certain influence on the loss frequency. In order to encourage the policyholder to prevent losses, he is requested to participate with a percentage of each claim. Minor losses which occur at intervals due to the nature of operations often involve administrative costs, both for insurer and insured, which are out of proportion to the amount of the loss itself. In order to minimize administrative costs, a minimum amount at retention is stipulated in addition to the percentage deductible.
Characteristic Data
Maximum New Values are applicable to large standard units and are based on prices of 1979. Actual values may be calculated by applying indices. Rates of Depreciation and Interest may assist determining the approximate book value for equipment, when dealing with used machinery or in the case of a loss. 10% was taken as the interest rate for purposes of calculation. The book value does not necessarily correspond to the current market value for used machinery, since the price which could not be realized through sale on the open market is highly dependent upon demand and the condition of the machinery.
Characteristic Data
The Repair Cost Rates represent the monthly amount which a contractor must on average spend for regular maintenance and repair (replacement parts and labour costs ). The Hazard Class is intended to give the insurer a feeling for the degree of risk to which a certain unit is exposed in normal operations. The degree of hazard is divided into four risk categories : A = Low B = Low Medium C = Medium Heavy D = Heavy
Material Preparation Solid aggregate for concrete must be available in grains of graduated size. Coarsely broken rock is crushed further in several steps. Coarse crushing is with brute force in crushers (jaw-type crushers, gyratory crushers, hammer crushers) with subsequent size reduction in mills, down to the size of sand grains. Between the individual reduction steps the material is washed and stored according to grain size: Coarse grain are classified with stationary or vibrating sieves; water is added to fine grains, which are then separated by size in classification tanks, cyclones or slurry separators. The size reduction and grading machines are often located in a single building, either one above the other or linear sequence; complete, mobile units are, however, also used. Material is transported with conveyor belts, vibration troughs or pipes. The classified material is stored either in silos or in the open unit it is used to make the concrete.
Material Preparation PARAMETER : Engine Power Weight Carrying Capacity Load Moment Throughput Nominal Fill Max. New Value Service Life Depreciation and Interest Repair Cost Hazard Class : : : : : : : : : : :
Crushers up to 850 t/h US$ 500,000 10 Years 1.3% per month 0.7% per month B
Material Preparation
Processing systems such as these are subject to extremely hard operating conditions and high wear rates, resulting in correspondingly high repair costs. Bearings and suspension elements are subject to extreme mechanical forces; the moist atmosphere results in corrosion. Varying size and harness of the rock can lead to interruption in operations; deposits and clogging can cause damage with very fine grain sand. The systems are exposed to acts of God such as earthquake, flooding and rockslide. The location of the processing facility must be inspected. Machinery breakdown should be excluded. High concentration of capital.
Manufacturing Concrete
Cement, aggregate and water must be mixed to manufacture concrete. Systems for concrete mixing range from a bucket and shovel to large-scale plants in which the aggregates and cement are stored in silos and conveyed to the metering station by conveyor belts, vibration troughs or pneumatic pumps. In smaller systems feed is from open storage (star stockpiles) using a cable-drawn bucket. At the metering station the aggregates and cement are weighed, water added and fed to the mixer. Various types of mixers are used, depending on the required throughput capacity. Automatic concrete mixer plants usually exhibit a tower-like configuration and are not standardized, but assembled from the individual components mixer, scales, conveyor equipment and automatic control devices. In addition to stationary systems, self-propelled and mobile mixing units may be used.
PARAMETER : Engine Power Weight Carrying Capacity Load Moment Throughput Nominal Fill Max. New Value Service Life Depreciation and Interest Repair Cost Hazard Class
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6 Years 1.8% per month 1.1% per month A
Being a part of site equipment, concrete mixing plants are exposed primarily to external perils. The location of the plant must be inspected in respect of flooding, rockslides etc. Due to the high level of wear and tear and the extreme dependency on maintenance and care, machinery breakdown should be included in the insurance.
Tower Cranes
Rotary Tower Cranes are used in highrise construction for vertical transportation of all types of loads. Stationary cranes, mounted on foundations, can cover only a limited radius and are therefore often used in groups on large construction sites. Cranes mounted on undercarriage, travelling on rails, are more mobile and more economical for sites which have one long axis, while smaller cranes often operate on tyres or crawler-type chassis. The height of mobile cranes can be regulated by adding inserts; stationary cranes may be equipped with climbing features, usually hydraulic, with which the crane can grow with the structure. A special type of stationary rotary tower crane is the derrick crane, in which the boom pivot is located at the foot of the crane, and where power is transmitted by means of a second lattice mast
Tower Cranes
PARAMETER : Engine Power Weight Carrying Capacity Load Moment Throughput Nominal Fill Max. New Value Service Life Depreciation and Interest Repair Cost Hazard Class : : : : : : : : : : :
1250 tm
US$ 1.2 M 8 Years 1.5% per month 0.7% per month D
Tower Cranes
Due to their geometry, the hazard of tipping is high for rotary tower cranes. The factors which may trigger a fall are overloading, yielding of the foundation, negligent laying of the tracks or wind load. Carelessness and negligence result in operational hazard : overload kickouts and limit switches are disconnected, the cranes collide with the track bumpers and tip, track clamps are used incorrectly. With increasing age hoist and holding ropes wear, connecting components encounter fatigue and corrosion can lead to failure under load. Overload kickouts and limit switches must not be disconnected during operation and regular inspections must be undertaken.
Special Cranes
Due to their limited range of movement rotary tower cranes are unsuitable to certain construction projects and tasks. For this reason special type of cranes have been developed which are adapted to the particular job to be handled. Sites with one long axis, such as in dam construction, are served by cable cranes. A crab, carrying the load hook, moves along a steel cable which spans the site. In order to allow for lateral movement as well, the support points for the carrying cable can be shifted correspondingly. In other cases the cable is attached to guyed lattice masts which can be tilted to the side. Facilities with larger surface areas, such as storage lots for prefabricated components at construction sites, can be served with a trestle crane. Here the crab runs along a lattice beam, and the entire crane can be shifted laterally on tracks.
Special Cranes..
Typical characteristics of special design cranes are exceptional carrying capacity, span width, mobility or other parameters. Hereby new values and service lives vary. Therefore it is not possible to make general statements.
Special Cranes..
Main hazards are acts of God, such as earthquake, storm and flooding, as well as rock and landslide. Loose guy wires and frayed cables can be detected during regular inspections and subsequently corrected. Consequential losses usually result from serious crane damage. Individual design and application make for widely varying risk characteristics, which must be examined and evaluated from case to case. In addition to the influence of external dangers, the experience of the crane manufacturer ( Contractors own home-made design ? ) should be taken into consideration.
Telescopic Truck Cranes

Telescopic truck cranes are mobile lifting units which are not usually assigned continuously to one construction site, but which are moved from site to site as required. The undercarriage is, or corresponds to, a heavy duty lorry chassis, on which the telescopic boom is mounted in a slewable configuration. Upon arrival at the construction site a location suitable for the lifting assignment is selected. Stabilization is created with hydraulic outriggers extending at sides. The lift height is achieved by extending the telescopic boom hydraulically. Telescopic truck cranes are standardized units which are seldom modified or varied with accessories.

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225 t 900 tm

Changing locations, difficult lifting assignments and high rental charges can lead toChanging locations, difficult lifting assignments and high rental charges can lead to hectic operations in which insufficient attention is paid to stability and safety. Overload kickouts can be neutralized, which can lead tots can be neutralized, which can lead to tipping Telescopic truck cranes represent a difficult rint a difficult risk from the insurers point of view. Losses caused by neutralizing the overload kickout shoud be excluded by endorsement. Extremely high risk in cases of simultaneous use of several truck cranes for a lift; therefore control equipment must be prescribed for joint lifts. The evaluation of the crane operato of several truck cranes for a lift; therefore control equipment must be prescribed for joint lifts. The evaluation of the crane operators capabilities plays an essential role in estimating the rirs capabilities plays an essential role in estimating the risk.
Lattice Mast Truck Crane

Truck cranes with lattice mast booms are the typical lifting equipment found on erection sites since they are highly mobile and can handle even extremely heavy loads. A slewable crane is mounted on a heavy lorry chassis; the load is suspended on a steel cable. The boom can be extended with inserts. The method of slewing and of vertical boom movement is mechanical or hydraulic. In addition to continuous use on a large construction site, lattice mast truck cranes are used intermittently for special jobs at smaller sites. Large and bulky objects, such as components for offshore drd intermittently for special jobs at smaller sites. Large and bulky objects, such as components for offshore drilling platforms or prefabricated beams, are lifted by several cranes operating in unison.

PARAMETER : Engine Power Weight Carrying Capacity Load Moment Throughput Nominal Fill Max. New Value Service Life Depreciation and Interest Repair Cost Hazard Class : : : : : : : : : : : 80 Mp 360 t 2200 tm

In addition to the ground stability, which differs according to location, the major problem encountered with truck cranes is the object to be lifted, the weight of which is often not known exactly. Switching off the overload kickout can result in overloading, and in turn to be lifted, the weight of which is often not known exactly. Switching off the overload kickout can result in overloading, and in turn to the cranes tipping over. Several cranes lifting in unison is particularly difficult, since unequal lifting speeds can lead to uncontrolled shifts in the load. Joint use for heavy lifts should be regulated by a coordination controller.
Forklift Truck
Forklift trucks are used primarily in storage facilities for lifting and transport requirements. Their specialty is loading and unloading vehicles and stacking goods. They have forks at the front, which can be raised and lowered with a chain drive. Rear axle steering makes for extreme maneuverability. The forklift may be powered by internal combustion engines, by a diesel-electril-electric configuration, or battery. Rough terrain forklift trucks are used for site work and may have four-wheel drive. Instead of the usual lifting forks other tools such as block clamps, stone grabs, loading shovels or small crane booms may be used.
Forklift Truck
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5t
US$ 50,000 8 Years 1.5% per month 0.9% per month B
Forklift Truck
In case of overloading or when travelling over uneven surfaces forklift trucks have a tendency to uneven surfaces forklift trucks have a tendency to tip to the front. The danger of damage to the unit by a falling load must be taken into consideration. In general a relatively low-risk item, since the truck can be evacuated in case of danger (flooding, fire ). Human error is the main risk factor.
Transportation Equipment
Lorries
Material transportation at construction sites is generally effected by lorries, which will differ according to their dumping mechanism. The smallest units are the dumpers, which are built for payloads of up to 5 tons and are generally equipped with fourwheel drive and center-pivot steering. Rear or side dump trucks up to 20 tons payloads are used for transporting sand, gravel etc. Coarse material is transported in off-highway haulers, the capacity of which can be up to 200 tons. The type of drive used for the wheels will differ according to the various models. In addition to the self-propelled trucks, semi-tractors are used together with trailers with rear or bottom discharge.
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200 t
US$ 1.6 m 4 Years 2.5% per month 2.0% per month C
Large off-highway haulers are highly exposed to perils at earth-moving sites, since they are often driven fast and close together (collision danger). Particularly during unfavourable weather conditions the danger of skidding off the road is high. Road ways must therefore be constantly maintained by graders. The insurance risk depends on the nature of the transportation route and on the training and experience of the drivers. Tyres must be excluded from liability.
Low-bed Trailers
Crawler-type equipment is moved from one jobsite to the next with low-bed trailers, which can also be used to transport heavy, pre-fabricated components, transformers, etc. The larger models are usually constructed as semitrailers and may run on as many as 36 wheels. Considerably larger models are fabricated for individual cases.
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40 t
A ramp can be used for loading and unloading self-propelled vehicles (bulldozers, excavators, etc) on and off the low-bed trailer; otherwise a crane may be used. Relatively low risk. Major risks are AOG and leaving the roadway.
Mixer Lorries
When pouring small volumes of concrete or on construction sites where space does not allow the installation of a concrete mixing unit, concrete can be brought to the site from an outside source. A mixer is mounted on a lorry chassis and rotates during the drive to the site, mixing the concrete. Normally, the ready-mix concrete is discharged trough a chute into a bucket, which is then moved by a crane. Instead of a bucket and crane, concrete pumps may be used, either an independent type or one mounted on the lorry.
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10 M3 US$ 50,000 6Years 1.8% per month 1.1% per month A
If there are delays, for example due to heavy traffic, the concrete may set in the mixer. Low insurance risk, with the normal hazards on public roads and construction sites.
Transportation on Rails
Due to the great amount of time involved in laying the rails, transportation equipment running on rails is used only on construction projects of several years duration. The gauges are as a rule 600 mm, 900 mm or standard gauge (1,435 mm) and drive is either by diesel engine or battery power ( for tunnel construction) Single-sided selfdumping cars or bottom dump wagons are used for transportation.
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120 kW 22 Mp
US$ 220,000 10 Years 1.3% per month 0.8% per month A, tunnel construction C
With the danger of cave-ins and flooding, the rail systems in tunnel construction or exposed to considerably greater perils than those installed in the open. The position and condition of the rails must be inspected regularly in order to reduce the risk of derailing
Conveyor Belts
Conveyor belts allow continuous material transportation in quarrying gravel and mining raw materials as well as when constructing dams. The endless belts are driven and supported by rollers, the overall length is often divided into segments to reduce starting inertia. Conveyor belts are assembled from individual segments, including the drive and tensioning stations, the roll way, the rubber belt and a stripper. The efficiency and economy of transportation is determined by the width and running speed of the belt. In addition to land-based conveyor belts there are also belt systems which float on pontoons, designed for use with dredgers. Small conveyor belts can also be mounted on singleaxle vehicle chassis.
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Width upto 3m US$ 1,000 per M 7 Years 1.6% per month 0.7% per month A
While belts themselves are subjected to greatest wear where the material is loaded onto the belt, the rollers are subjected to extreme wear when handling coarse material (rock). Operational interruptions will be frequent when handling sticky material (clay, loam). Flooding should be mentioned as a particular hazard. The belt itself is a component highly subject to wear and therefore excluded from coverage.
Transport by Pipeline
Liquids or slurries of solids and water are commonly transported by pipeline. Typical application areas for pipeline transport are in lowering the water table, whereby the ground water which is extracted must often be pumped over great distances to a disposal point; or suction dredging operations in which a mixture of water and soil is trasported; or transporting concrete through pipelines. There is a distinction between suction and pressure pumps on the basis of their location. The pumping capacity required is dependent on the height differential, the composition of the slurry and coefficients of friction. Either rotating pumps (centrifugal or axial-flow pumps) or positive displacement pumps (piston pumps, rotary piston pumps ) may be used.
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Pumps US$ 60,000 7 Years 1.6% per month 1.1% per month A
Pumps for slurries of solids and water are subject to extreme wear due to abrasion. Underwater pumps are by nature difficult to inspect and correspondingly high breakdown rates. If machinery breakdown is excluded, pumps represents low insurance risks, since they are usually in stationary installations and are robust in design.
Digging
and
Loading
Bulldozers
The bulldozers blade which is mounted at the front can be raised and lowered hydraulically. Bulldozers remove soil material, push it to the dumping area and spread it out. The unit is powered by an air- or water-cooled engine. For heavy material, dozers on crawler tracks are used; in lighter material rubbertyred models may be used, which have greater mobility. Crawler dozers are also used on large earthworks as pushers for scrapers, as towing vehicles for rollers and fitted with a rear-mounted ripper, for ripping rock. A grader is a rubber-tyred machine with a blade in the middle and one at the front, used for fine grading of road surfaces or embankments.
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550 kW 80 Mp
US$ 700,000 4 Years 2.5% per month 2.1% per month C
Bulldozers are used primarily for heavy earthmoving work. There is a high degree of abrasion at the tracks and the shanks of the rear-mounted ripper. Heavy loading of gearing and hydraulic systems are common. Machinery breakdown should not be covered and all parts subject to wear should be excluded. The danger of slides and falls in mountainous terrain and of bogging down in swampy ground should be taken into consideration. Just as with other machinery it is important to locate the storage area away from flood areas. (High concentration of capital where there are several machines.)
Scrapers
Scrapers are rubber-tyred combined loading and transport units. The scarper is filled by lowering the bowl into the ground while the unit travels forwards, thus cutting the material and collecting it. Since great power is required for this operation, a crawler dozer is often used as an aid to push the scarper. A towed scraper is pulled by a bulldozer, the motor-scraper is self-propelled and may be equipped with one or two engines. To facilitate the loading procedure the elevator scraper is equipped with a conveyor covering the entire width of the bowl. The bowl is also emptied while in motion, with an ejector or by opening the lower section of the bowl. There are special crawler type models for soft soils where the bowl is located at the center between the tracks.
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700kW
30 m3 US$ 700,000 4 Years 2.5% per month 1.9% per month C
The economics of the scraper depend upon the speed during loading and transport.. When operating on roadways which are inadequately maintained, the risks of collision and tipping play a major role. Risk during operation depends mainly on the training and experience of the operator and the nature of the haul road, which must be continuously maintained by grades, particularly during bad weather. Storage points should be located in areas not subject to flooding; tyres are excluded from coverage.
Loaders
Wheeled and crawler loaders are equipped with hydraulically controlled front loading buckets and are particularly well suited for loading vehicles with material. The wheeled loaders, if provided with center-pivot steering, are fast highly maneuverable, and are used primarily for shovel-like pickup of loosely piled material. Crawler loaders are typical units for digging building excavations, since they can use the loading bucket to dig. Listing the accessories is hardly possible, since wheeled loaders in particular are universal machines which can be adapted with specially designed grabs, forks, buckets, cranes etc. and can thus be used in a wide variety of configurations. Crawler loaders, for example, can be fitted at the rear with a backacter for digging trenches; overhead loaders can in confined spaces (such as in tunnels ) empty to the rear; and with a suitable blade the units can be used as a dozer.
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520kW
The external hazard resulting from operations is dependent on the type of use and the conditions in the immediate surroundings. In the case of crawler loaders a survey should be made to determine to what extent these will be used as dozers. For wheeled loaders there is the hazard of collision with other vehicles and, depending on soil conditions, the danger of sinking into boggy ground. The main risk factors are acts of God, human error and fire.
Hydraulic Excavators
Hydraulic excavators are used for digging and loading. Mounted on a crawler or wheeled chassis, the superstructure is attached to a slewing ring. The usual equipment consists of the boom, the dipper stick and a bucket or a face shovel; in both cases the dipper stick is attached to the boom. A diesel engine provides power and drives one or several hydraulic pumps. All operations are carried out hydraulically. Electric drive is also used for large units in quarry operations. A multitude of interchangeable accessories makes the hydraulic excavator a universal piece of equipment. It serves, for instance, as the basic unit for setting or removing sheet piles, or for holding and driving pipe casing machines; it can be equipped with hydraulic chisels, drills, saugers, magnets, etc.
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350kW 9 Mp
Operating conditions and the surroundings determine the perils for the equipment. In general the risk is dependent on the skill and care of the operator.
Cable Operated Excavators

In contrast to hydraulic excavators, lattice booms may be used in cable-operated excavators where the tools are suspended on cables. Cable-operated excavators can be used for excavating vertically, with a dragline bucket for stripping away earth layer by layer, as lattice mast crane for lifting tasks, or as a carrier unit for driving and drilling. They are constructed with a mobile undercarriage on crawlers or wheels. The smaller, mobile models may also be approved for operation on public highways. If necessary, the undercarriage may be stabilized by pivoted outriggers.
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700kW 250 Mp
US$ 1.3 m 6 - 10 Years 1.8% - 1.3% per month 1.3% - 0.7% per month C
While cable operated excavators represent relatively low risks in excavation work, there is a high risk of tipping during crane operations, due to overloading or on unstable ground. Particularly endangered are lattice mast cranes where several units are lifting a load simultaneously. In addition to regular maintenance, the training of the operator is of prime significance. Since earth removal with the dragline bucket is often near water, flooding danger must in these cases be examined with particular care.
Bucket Excavators
The typical method of operation for chain bucket wheel excavators is continuous digging and conveyance of the material: buckets which are attached to a chain or wheel dig into the earth, load it, and empty the material onto a conveyor belt. From this belt the earth is transferred to a second conveyor belt or moved to a stockpile. The excavation components are usually mounted on tracks, occasionally on rails, and have electrical or diesel-electric drives. Large stackers, themselves mobile and mounted on a tracked chassis, serve as the connecting link between the mobile excavator unit and the stationary conveyor belt, or between the belt and the stockpile. Since the large size of these units makes transport difficult ( assembly time on site approx. 1 year ), these excavators are used primarily in mining minerals and in open cast coal mining, although smaller models may also be found on large construction sites.
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10,000 Mp
US$ 25 m 20 Years
These heavy units exert high ground pressures, which not all soils will withstand. Tilting and possible tipping may result. In terraced extraction of the material there is the additional danger of a bench collapsing, with the resulting fall of the excavator. Low risk, since the equipment is very slow moving. Due to the high prices for new equipment, however, a high PML.
Drilling and Driving
Pile Driving
Pile drivers are used to drive piles into the ground. The impact is generated by the hammer, which is dropped on the top of the pile. The hammer may be raised with a cable winch, but steam or compressed air may be used. A leader is used to guide the hammer and the upright pile; the leader is either part of the pile driver frame or may be held by a lattice mast crane. Occasionally the hammer falls free on the head of the pile. In addition to impact hammers there are also vibratory pile hammers, which do not strike the pile, but which by means of unbalanced weights generate vibrations in the pile and the earth, whereby the pile sinks into the ground under its own weight. Hydraulic units press sheet piles into the earth.
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63 t
Hazards in operation depend in most cases on the location; pile-driving in water, from a scaffolding, etc. The angular pull when setting up the pile can cause tipping.
Drilling Equipment
Holes of considerable diameter are drilled for positioning steel beams, for laying pile foundations and for positioning concrete piles. Here self-propelled, universal driving units are used or suitable attachments are utilized in conjunction with cable-operated or hydraulic excavators. The drilling process selected depends on the nature of the ground, the diameter and depth of the hole. For smaller diameters and in soft ground auger may be sufficient; for larger holes, the sides of which must be protected against cave-ins with steel casings, loose material is drawn inside the casing by a bailer with valve, while harder material must be loosened with a drop chisel. Rotary drills loosen and move materials with or without the assistance or flushing equipment . The casing pipe is installed with a hydraulic or pneumatic casing driver.
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150kW
The degree of risk is dependent on the location. The main risk factors are acts of God. Parts subject to wear should not be covered. Relatively low risk. Drill bits, drill rods and casings are normally excluded from coverage.
Rock Drills
Blasting will be required when, in the course of quarrying or excavation operations, rock is encountered which cannot be ripped with dozers. The explosive is placed in narrow, shallow holes, closely spaced. Holes will also have to be drilled for back anchors for retaining walls, to obtain soil samples, or for injection work. The rock drills used here are usually mounted on crawler track chassis, driven hydraulically, powered by a diesel engine, and operate on the rotating drill or rotary impact principle. In exceptional cases drilling units are also supplied as accessories for mobile hydraulic excavators. The drilling equipment commonly used in tunnel construction is dealt with in the section covering tunnel heading equipment.
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200kW 30Mp
The degree of risk determined by local conditions : drilling on a slope involves the danger of tipping when shifting position; there is also the danger of rockfalls in the mountains and in quarries. Drill bits and rods must be excluded from coverage.
Road Construction
Compacting Equipment
To consolidate material so that it will carry a load, it must be compacted by weight or vibration. This is normally done with a heavy roller. To improve compaction performance, rotating, unbalanced weights are often located in the roller drums; these generate vibrations which are transferred to the earth. Backfill material in small excavations is normally consolidated with surface vibrators; to compact earth and rock, simple towed rollers are drawn by dozers or crawler-loaders. In road construction, diesel-powered, self-propelled rollers are primarily used. The type of roller is selected according to the material to be compacted: smooth-surface rollers are used for granular material ( rock, sand, gravel ), while sheepsfoot rollers are used on clay or loamy soils. Rubber-tyred rollers are used to compat the base course or top course in road construction. Refuse compactors are worthy of mention as special-design models, exerting a cutting action on the material.
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32 Mp
US$ 120,000 static 10, vibro 4 Years static 1.3%, vibro 2.5% static 0.8%, vibro 1.5% A
Small surface vibrators can easily be stolen; otherwise all types of rollers are very robust in design and are subject to only minimal hazards.
Preparation Plants (bituminous)

For major road building projects the site equipment includes portable or stationary plants for preparation of the bituminous mixture for the base, binder and surface courses. Such a system, usually in a tower-like configuration, consists of metering devices, drying drums, dedusting system, mixer, mixed material storage hopper, binder storage tanks, filler silo and control center. The finished mixture is conveyed from the mixing trough into the mixed material storage silos. The design of a system is generally standardized; the equipment sizes depend upon the out put volume required.
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350 t / h US$ 1.0 m 8 Years 1.5% per month 0.7% per month B
The erection site for the system should be checked for the influences of natural hazards such as earthquakes, flooding and storm. The insurance risk is dependent solely upon the location and can generally be regarded as low. Machinery breakdown should, however, be excluded.
Fineshers
Road finishers are combination units for fabricating the bituminous base, binder and surface courses as well as for the laying of concrete pavements. In the case of asphalt pavements the mixture is delivered by lorry, transported and distributed in the finisher, perhaps heated and agitated, and then placed and at the same time pre-compacted by a screeding beam, which is hydraulically controlled and often heated. The height of the beam is controlled electronically with a levelling unit installed in the finisher or by means of laser beam. The machines advance on tracked or tyred chassis in phase with the progress of the construction work; concrete pavements finishers may also run on rails. The effective width can be adjusted in steps by adding extensions. Special equipment has been developed for the sealing of dam surfaces; these travel along the crown of the dam and cover the face down to the foot. For further finishing and to protect the pavement once it is in place, supplementary units may follow the finisher proper, such as surface vibrating machines, chip spreader, texturing roller, sprayer, protective tent.
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28 Mp
US$ 350,000 6 Years 1.8% per month 1.5% per month A
Since this is very slow moving equipment which travels on a prepared base, pavement finishers are endangered primarily by external influences. The fire hazard is considerably higher for asphalt finishers than for concrete finishers. All types, however, are endangered by construction traffic, and in particular by the vehicles which deliver material.
Driving Shields
Using driving shields it is possible to head sewage conduits and tunnel tubes economically, particularly in built-up areas, without influencing existing buildings or interrupting the traffic flow. The heading shield is made of steel and protects the forward area of the tunnel tube against material as it breaks out. The shield is advanced hydraulically as construction progresses, the hydraulic presses are supported on sections of tunnel already finished. In order to reduce the high driving forces the shield is often divided into segments which are then advanced individually (blade shield). To facilitate removal of the rock and to protect the working place, the shields are often subdivided by intermediate platforms A special situation is present when not only the shield but also the entire casing is moved forward. To reduce friction with the walls, intermediate press stations are installed, so that the casing can be advanced a section at a time.
Values are high and depend on the equipment used.
When rock is encountered the cutters on the shield may be damaged or the entire shield may be thrown off course. Damage resulting from the operations themselves should be excluded, as well as loss of shield when it is later determined that heading cannot be carried out to completion. Recovery of a shield after damage may be very difficult and costly. Major risks are those normal in tunnel contstruction.
Partial-cut Machines
The material at the face can be loosened during tunnel construction with partial cut machines, which are especially suited for rock which is not too hard and for asymmetrical cross-sections. A slewing arm is attached to a mobile undercarriage (usually tracked); this arm carries a milling head which loosens material at various points on the face. The slewing arm can be fitted with various types of cutting heads matching the type of rock. To stabilize the cutting face and the tunnel tube until the lining is completed, this work is normally carried out under the protection of a shield, which is advanced hydraulically, following the progress of the work. Partial-cut machines can be combined with conveyor belts to haul away the rubble or in extreme cases are connected to the laying unit for the tunnel lining (tubbing). Hydraulic excavators or muckers scrape the material onto the conveyor belt. Wet or dry dust removal systems can be combined with partial-cut machines.
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6 Years 1.8% per month 1.2% per month D
Cave-in of the tunnel tube, ingress of water, fire and explosion are the potential dangers to which partial-cut machines are exposed and which often result in a total loss.
Full-cut Machines
The pre-requisite for the utilization of full-cut machines for heading the complete tunnel cross section at one time is, apart from rock which is not too hard, a symmetrical tunnel cross-section. Full-cut machines are generally designed as comprehensive units for tunnel heading and lining, and may reach a length of 50 m. underneath a protective shield at the face, which is advanced hydraulically and which may be divided into individual blades to reduce wall friction, a cutting head rotates, which is equipped with cone bits or constructed as a cutting disk. Behind the cutting head are holding and follower shields to support the tunnel walls and roof, as well as the laying equipment for the tunnel lining elements, the so-called tubbings. The conveyor belts for hauling away the rubble and wet or dry dust collection units are usually also integrated into the heading machine. All movements, ie advancing, changes of direction and the operation of the tubbings installation arms, are effected hydraulically or pneumatically.
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6 Years 1.8% per month 1.2% per month D
As factors in underground operation, tunnel tube cave-ins, ingress of water, fire and explosion are typical hazards, which may result in a total loss. In case of partial losses there are usually problems in effecting repairs, since the machines fill the entire cross-section of the tunnel and are accessible with difficulty. High risk with high concentration of capital.
Drilling Jumbos
Hard, stable rock must be blasted, since it cannot be removed economically with machinery. Shot holes are drilled in the working face in preparation for the blasting. Specially drilling cradles, so-called drilling jumbos, have been developed for this purpose; these operate several rock drills simultaneously. These drilling jumbos must be removed to a rear tunnel area prior to blasting. The rubble is cleared with wheel-mounted loading shovels, loaded in skip cars or trains and hauled away.
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In addition to the dangers of tunnel tube cave-ins, ingress of water, fire and explosion, the primary peril is the collision with transport vehicles, which move quickly in restricted space. An effective ventilation system must be provided to improve visibility within the tunnel.
Chain-Bucket Dredgers
Floating dredgers are used for underwater excavation work, such as deepening channels or harbour basins. The most familiar is the chainbucket dredger, in which a ladder chain carrying the buckets is mounted in a rotating configuration at the center of a ship which is cut through longitudinally. The buckets dig into the material, convey it upwards and empty it into a chute, from which the material slides into an adjacent bottomdump barge (scow) or onto a floating convneyor belt system. In addition to the chain-bucket dredger, hydraulic excavators or grab excavators, mounted on pontoons, are also used for dredging.
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Bucket 1000 lt US$ 7.4 mi 20 Years 0.8% per month 0.5% per month C
The main peril to all floating dredgers is sinking. In particular for work at sea attention must be paid to setting up satisfactory emergency plans for imminent storms. Like all floating equipment, the floating dredger should not be insured as construction machinery, but under marine insurance.
Suction Dredgers
Suction dredgers are used for underwater excavations when the bed is composed of gravel or soft material. They consist essentially of a centrifugal pump, a power supply unit, a suction tube, and a transportation pipeline. Everything is located on a floating operations platform. The pump draws a mixture of water and material through the suction port and moves this through a floating pipeline or a pipeline on the channel bed to the deposit area. In the case of a suction dredger with cutting head, which is used where the ground is difficult to loosen, the material is dug by a cutting head equipped with rotating blades in a helical configuration, positioned in front of the suction port. With a hopper dredger the material lifted is pumped into the ships holds and dumped elsewhere.
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Pump 3800 kW
US$ 14 mi 20 Years 0.8% per month 0.5% per month D
Storms and subsequent sinking are the major perils to all floating equipment, ie the dredging equipment and the floating dredging pipeline. A suitable plan must be worked out to deal with storms. The slurry causes extreme abrasion at the suction port, pipelines and pumps. This equipment, too, should be covered by marine insurance.
Ocean-going Rigs
A floating ocean going rig consists of a pontoon and usually four caissons which pass through the pontoon at its conrners. With the caissons raised, the platform to towed to the intended site, where caissons are lowered to contact the seabed; the platform then lifts itself out of the water, climbing up the caissons by hydraulics. The advantage of using the ocean going rigs for construction is that it is exposed to wave action only during the relatively short transfer period to the next location. It is for this reason that it is normally used as the base for large equipment such as pile drivers and cranes, but can itself be utilised as a transportation and lifting unit. All the necessary supply equipment which the crew requires for working and housing is installed on the platform. It is usually not equipped with its own drive, so when changing location during operation it must be towed along anchor lines.
The design and equipment of ocean-going rigs are adapted to suit the particular construction site and can in no way be standardized . It is for this reason that new values fluctuate widely. Service life : 20 years Hazard Class ; D
Ocean-going rigs are normally used for special construction assignments at sea. They usually cannot be towed to a safe port in case of a storm. In addition to taking storms and wave action into consideration, the organisation of the work must be examined for hazardous features, such as dropping large, pre-fabricated elements. Whether the units are considered as construction machinery, watercraft or offshore equipment will have to be determined on the basis of local conditions.
Compressed Air and Injections

Large volumes of compressed air may be required and produced at construction site powering pneumatic tools (such as pneumatic rock hammers), for ventilation of tunnel tubes, to hold back water with over pressure in underwater operations, and for tunnel and casing advancing. Diesel or electric power compressors are used to compress the air into air reservoirs. Differentiation must be made between tool-operating air and ventilation for personnel. The air for personnel must be cleaned in oil and air separators prior to use. Auxiliary equipment required during compressed air tunneling (overpressure) includes air locks for personnel and materials (for transition between different air pressures), along with safety equipment such as medical locks and emergency power generators.
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US$ 110,000 Compressors 8 Years compressors 1.5% per month compressors 0.8% per month B
As part of the general site facilities, compressors are exposed only to minimal operational hazards. The main dangers are posed by external perils such as flooding, fire and rock fall. A special assessment must be made in cases where systems are mounted on pontoons, which are sometimes used for underwater work.

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For the building contractor, time and costs are decisive factors in the economic success or failure of a construction

Perils of Construction Machinery

Perils of Construction Machinery..

Insurance of Construction Machinery

6 Years 1.8% per month 1.1% per month A

US$ 1.2 M 8 Years 1.5% per month 0.7% per month D

Telescopic Truck Cranes

Telescopic Truck Cranes

US$ 1.0 M 6 Years 1.8% per month 1.0% per month D

Telescopic Truck Cranes

Lattice Mast Truck Crane

Lattice Mast Truck Crane

US$ 1.1 M 8 Years 1.5% per month 0.9% per month D

Lattice Mast Truck Crane

US$ 50,000 8 Years 1.5% per month 0.9% per month B

US$ 1.6 m 4 Years 2.5% per month 2.0% per month C

US$ 70,000 8 Years 1.5% per month 1.3% per month B

10 M3 US$ 50,000 6Years 1.8% per month 1.1% per month A

US$ 700,000 4 Years 2.5% per month 2.1% per month C

30 m3 US$ 700,000 4 Years 2.5% per month 1.9% per month C

US$ 750,000 4 Years 2.5% per month 1.9% per month C

US$ 600,000 8 Years 1.5% per month 1.0% per month B

Cable Operated Excavators

Drilling and Driving

US$ 800,000 12 Years 1.1% per month 0.6% per month B

US$ 700,000 8 Years 1.5% per month 1.0% per month B

US$ 280,000 6 Years 1.8% per month 1.0% per month B

Preparation Plants (bituminous)

US$ 350,000 6 Years 1.8% per month 1.5% per month A

Values are high and depend on the equipment used.

6 Years 1.8% per month 1.2% per month D

6 Years 1.8% per month 1.2% per month D

US$ 500,000 6 Years 1.8% per month 1.0% per month C

US$ 14 mi 20 Years 0.8% per month 0.5% per month D

Compressed Air and Injections

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