Fuel Consumption Can Hurt Demolition Projects, And Here's Why

Fuel can be a pricey commodity. Excavators, bulldozers, skid steers, loaders and more all require it in order to function properly. When fuel prices spike or there is doubt about whether they will be steady, it can negatively impact more than just what's in the tank. It can shape project budgets, impact scheduling, transportation costs and even what kind of equipment is utilized at the worksite.

Learning how these fuel price changes affect a project can support owners and contractors in their decision-making before an estimate is made and work begins.

Higher Cost Per Hour Of Equipment Use

The average demolition job entails extensive use of heavy equipment. Excavators, bulldozers, and large loaders all use fuel and run for sometimes hours at a time while working through the task and preparing the area for the next steps of construction. With fuel costs on the line, large jobs can be significantly more expensive if prices per barrel rise. An estimate that was made using previously low prices may quickly balloon once higher ones come into play for the chosen machinery in the project.

It's also worth noting that fuel cost impacts can depend on equipment type.

For example, Older machinery typically doesn't perform as efficiently as newer counterparts, resulting in extra consumption. That's another issue to consider ahead of time when determining which heavy equipment rentals or purchases will be the most useful to the project.

Increased Transportation Expenses Are A Concern

While demolition work focuses on wrecking, the materials and debris have to go somewhere after the fact. The haul from the job site is just as much a part of the project as the actual destruction, and requires its own set of considerations. Whether it's a few trips to a recycling center or multiple dumps around the surrounding area, any kind of transportation is likely to see higher costs associated with it if fuel prices change before or during the course of work.

The farther away disposal or recycling centers have to be, the greater of an impact it will have on the overall budget. If a demolition project is taking place in a remote area with nothing in terms of dumping facilities for an extended period of time, the added haul distance will push the price tag higher. On the other hand, areas close to the job center or that are willing to allow recycling or reusing components may save thousands on transport.

Budgets Require Greater Caution And Projection

Of all the problems associated with fuel cost spikes, the most worrying one may be its effect on budgeting.

A contractor will always know the projected fuel cost for the equipment and vehicles involved with the project as it will be at the time when the estimate is issued. What they are less able to do is plan for an unforeseen fluctuation that could damage the operating budget depending on how far ahead the work is scheduled to take place. This affects owners just as much in a negative way since any contractor that gives a reasonable price is likely to add a contingency to their estimate should operating costs rise unexpectedly during work. Any sudden increase can end up raising the price of a demolition far beyond what either party expected. This is also why effective communication is essential, especially for large scale building and property removal jobs.

Carefully scheduling the project to reduce the impact of fluctuating energy prices is the most sensible solution. Instead of using multiple pieces of equipment at once, smaller jobs can be sectioned off in such a way that one particular excavator, bulldozer, loader, or the like, is able to do all of the work during one area before moving onto the next. A similar principle applies when it comes to transport. Recycling and reprocessing debris will also reduce the amount of waste that must be continually removed to nearby landfills as well. While this may incur some cost on the front end, it's a worthy investment in order to reduce overall material transportation.

Recycling And Reuse Help Reduce Transportation Budget

Materials recovery plays a major role in minimizing the impact of rising fuel costs with demolition projects. Concrete, metals, and wood can all be separated and returned for reprocessing if there is enough going at the job site to justify it. Doing so will require extra equipment, but can save greatly in terms of disposal as there will be less that has to be taken away.

Distance to recycling and waste centers is also an important factor in this process.

In many circumstances it's wiser to invest in equipment use and efficiency improvements.

Fuel Costs Dictate The Appropriate Machinery For The Job At Hand

With fuel costs fluctuating, choosing the equipment to be invested in or rented for a long-term commercial project can be a risky endeavor

A smaller excavator will be less expensive to put in the ground, but will waste time and consume more gasoline trying to finish what a larger machine would do in just a couple hours. Alternatively, using an unnecessarily large device runs the risk of raising the overall cost of the project.

This principle also applies when it comes to maintenance and upkeep, as well as machinery operation. Ensuring that machines are kept in the best condition possible will reduce waste and inefficiency, while allowing workers to get the job done faster. No piece of equipment should be taken out of commission early unless it's already broken or otherwise unsuitable for the task at hand to prevent unnecessary delays to the project schedule and budget.

Selecting The Right Demolition Company Helps Prevent Spillover Issues

Fuel cost volatility should be just another reason why contractors would be considered over independent or amateur crews when it comes to any size of demolition job, particularly those that involve extensive equipment usage and transportation. Contractors know what types of machinery and crews to bring in for the duration of the job and will be better at minimizing risk in that regard. This, along with effective planning, will reduce unnecessary time wastage with machinery and transport as far as equipment utilization goes. Independent workers aren't likely to be as invested in an owner's budget as a professional company would, and may refuse to address concerns they have in order to meet expectations.

Owners need to think bigger than the bottom end of an estimated price range. While it's true that some costs can't be known ahead of time, many can, including those connected to fuel consumption for machines. Demolition owners don't get second chances when it comes to budgeting choices, and a single miscalculation could send thousands of dollars down the drain.